UniFirst(UNF) - 2026 Q1 - Quarterly Results

Financial Performance - Consolidated revenues increased by 2.7% to $621.3 million compared to $604.9 million in the first quarter of fiscal 2025[6] - Net income was $34.4 million, down from $43.1 million in the prior year period, with diluted earnings per share at $1.89 compared to $2.31[6] - Operating income decreased to $45.3 million from $55.5 million in the prior year period[17] - Total revenues for the thirteen weeks ended November 29, 2025, were $621.318 million, representing a 2.4% increase from $604.908 million in the same period last year[19] - Net income for the quarter was $34.363 million, a decrease from $43.105 million in the same quarter last year[21] Margins and Ratios - Operating margin decreased to 7.3% from 9.2% in the prior year period, reflecting planned investments in growth and digital transformation initiatives[6] - Adjusted EBITDA margin decreased to 13.3% from 15.5% in the prior year period[6] - Operating income decreased to $41.837 million with an operating margin of 7.4%, compared to $55.531 million and 9.2% in the prior year[19] - Adjusted EBITDA for the quarter was $82.811 million, with an adjusted EBITDA margin of 13.3%, down from $93.960 million and 15.5% year-over-year[19][24] - The quarterly tax rate was 26.9%, up from 25.6% in the prior year period[6] Guidance and Future Outlook - The company reaffirmed its full-year fiscal 2026 guidance of consolidated revenues between $2.475 billion and $2.495 billion and fully diluted earnings per share between $6.58 and $6.98[10] Share Repurchase and Capital Management - The company repurchased $31.7 million of shares in the first quarter of fiscal 2026, with $8.9 million remaining under its existing share repurchase authorization[15] Growth Initiatives - Costs related to the Key Initiative were approximately $2.3 million in the first quarter of fiscal 2026, expected to enhance long-term growth and profitability[3] - Organic growth, excluding acquisitions and currency fluctuations, was 2.4%[7] Cash and Assets - Cash and cash equivalents at the end of the period were $123.977 million, down from $166.246 million at the end of the same period last year[21] - Total current assets decreased to $872.717 million from $924.603 million[18] - Total liabilities decreased to $590.100 million from $609.198 million[18] - The company reported a decrease in net cash provided by operating activities to $14.851 million, compared to $58.124 million in the prior year[21] - Capital expenditures for the quarter were $38.883 million, up from $33.566 million in the same period last year[21] - The company incurred $13.391 million in acquisition costs during the quarter, compared to $2.352 million in the prior year[21]