Vestis (US:VSTS)2025-12-01 21:37Financial Performance - Fourth quarter 2025 revenue totaled $712 million, an increase of $27.7 million or 4.1% year over year, primarily due to an additional week of operations[9] - Operating income for the fourth quarter was $17.6 million, down from $29.8 million in the same quarter of 2024, a decrease of $12.2 million[10] - The company reported a net loss of $13 million, or $(0.10) per diluted share, while adjusted net income was $4 million, or $0.03 per diluted share[7] - Revenue for the three months ended October 3, 2025, was $712,011 thousand, an increase from $684,281 thousand for the same period in 2024, representing a growth of approximately 3.3%[31] - Operating income decreased to $17,641 thousand for the three months ended October 3, 2025, compared to $29,776 thousand for the same period in 2024, a decline of about 40.7%[31] - Net loss for the three months ended October 3, 2025, was $12,549 thousand, compared to a net loss of $2,298 thousand for the same period in 2024, indicating a significant increase in losses[31] - Adjusted EBITDA for the fiscal year ended October 3, 2025, was $257,425 thousand, down from $352,900 thousand in the previous year, representing a decrease of approximately 27%[37] - Free Cash Flow for the three months ended October 3, 2025, was $15,569 thousand, significantly lower than $267,470 thousand for the same period in 2024[40] - Adjusted Net Income for the fiscal year ended October 3, 2025, was $32,484 thousand, down from $82,266 thousand in the previous year[39] Cash Flow and Liquidity - Cash flows provided by operating activities for the fourth quarter were $31 million, with free cash flow of $16 million[7] - Total cash and excess availability under the revolving credit facility was $298 million as of October 3, 2025, down from $326 million a year earlier[15] - Cash and cash equivalents at the end of the period were $29,748 thousand, a decrease from $31,010 thousand at the end of the previous fiscal year[35] - The company reported a net cash provided by operating activities of $30,927 thousand for the three months ended October 3, 2025, compared to $295,588 thousand for the same period in 2024, a decrease of approximately 89.6%[35] - Free cash flow for fiscal 2026 is anticipated to be in the range of $50 million to $60 million[16] Strategic Initiatives - The strategic business transformation plan aims to generate annual operating cost savings of at least $75 million by the end of fiscal 2026[5] - The strategic plan focuses on three pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization[6] Debt and Liabilities - Total current assets as of October 3, 2025, were $850,031 thousand, up from $813,269 thousand as of September 27, 2024, reflecting an increase of approximately 4.5%[33] - Total liabilities increased to $2,041,256 thousand as of October 3, 2025, compared to $2,029,336 thousand as of September 27, 2024, showing a rise of about 0.6%[33] - Total principal debt outstanding as of October 3, 2025, was $1,168,500 thousand, slightly up from $1,162,500 thousand as of September 27, 2024[40] - The Net Leverage Ratio as of October 3, 2025, increased to 4.72 from 3.64 in the previous year, indicating a higher level of debt relative to EBITDA[40] Expenses and Charges - Interest expense for the three months ended October 3, 2025, was $24,343 thousand, down from $29,848 thousand for the same period in 2024, a reduction of about 18.5%[31] - The company incurred $6,309 thousand in severance and other related charges for the three months ended October 3, 2025, compared to $3,741 thousand in the same period of 2024[39] - Share-based compensation expenses for the fiscal year ended October 3, 2025, totaled $11,565 thousand, down from $16,336 thousand in the previous year[39] Forward-Looking Statements - Fiscal 2026 revenue is expected to be flat to down 2% compared to normalized fiscal 2025 revenue, with adjusted EBITDA projected between $285 million and $315 million[16] - The company expects to provide forward-looking non-GAAP financial information, including expected Adjusted EBITDA and Free Cash Flow for 2026, but cannot provide a quantitative reconciliation to GAAP measures without unreasonable efforts[28]