UniFirst(US:UNF)2026-01-07 22:30Financial Performance - Revenues for the thirteen weeks ended November 29, 2025, increased to $621.318 million, up from $604.908 million for the same period in 2024, representing a growth of approximately 2.7%[11] - Operating income decreased to $45.308 million, down from $55.531 million year-over-year, reflecting a decline of about 18.4%[11] - Net income for the period was $34.363 million, compared to $43.105 million in the prior year, a decrease of approximately 20.3%[11] - Basic income per share for Common Stock was $1.97, down from $2.41, indicating a decline of about 18.2%[11] - Comprehensive income for the thirteen weeks ended November 29, 2025, was $32.256 million, compared to $38.210 million in the prior year, a decrease of about 15.6%[15] - Total operating expenses for the thirteen weeks ended November 29, 2025, were $576.010 million, compared to $549.377 million in the same period of 2024, reflecting an increase of 4.8%[11] - Cash flows from operating activities decreased to $14,851,000, down 74.5% from $58,124,000 in the same period last year[25] - The cost of revenues increased to $393.0 million in Q4 2025 from $381.1 million in Q4 2024, marking an increase of about 3.5%[85] Assets and Liabilities - Total current assets decreased to $872.717 million from $924.603 million, a reduction of approximately 5.6%[17] - Total assets as of November 29, 2025, were $2.753 billion, down from $2.778 billion as of August 30, 2025, reflecting a decrease of about 0.9%[17] - Total liabilities decreased to $590.100 million from $609.198 million, a decline of approximately 3.1%[17] - Cash and cash equivalents at the end of the period were $123,977,000, down from $203,501,000, representing a decrease of 39.1%[25] - Total inventories as of November 29, 2025, were $142.891 million, a slight decrease from $145.197 million as of August 30, 2025[51] Shareholder Returns - The company declared dividends of $0.365 per share for Common Stock and $0.292 per share for Class B Common Stock[20] - The company repurchased 194,100 shares during the thirteen weeks ended November 29, 2025, at an average price of $163.18 per share, compared to 33,605 shares at $189.64 per share in the prior year[89] - The Board of Directors declared increased quarterly cash dividends of $0.365 per share for Common Stock and $0.292 per share for Class B Common Stock, up from $0.350 and $0.280, respectively[87] - The Company has $8.9 million remaining under its share repurchase program as of November 29, 2025[89] Segment Performance - The Uniform & Facility Service Solutions segment generated $565.892 million in revenue, accounting for 91.0% of total revenues, compared to 91.4% in the previous year[35] - The First Aid & Safety Solutions segment reported revenues of $30.2 million for Q4 2025, compared to $26.2 million in Q4 2024, reflecting a growth of approximately 15.3%[85] - The company reorganized its business into three reportable operating segments beginning in Q4 2025, consolidating several previous segments into the Uniform & Facility Service Solutions segment[81] Acquisitions and Investments - The company completed four acquisitions in the First Aid & Safety Solutions segment for a total purchase price of approximately $14.9 million[38] - Capital expenditures for the period were $38,883,000, compared to $33,566,000 in the prior year, reflecting a 15.5% increase[25] - Non-cash capital expenditures amounted to $8,753,000 for the period, down from $12,219,000 in the previous year[25] Tax and Compliance - The effective tax rate for the thirteen weeks ended November 29, 2025, was 26.9%, compared to 25.6% for the same period in the prior year[69] - The Company faced a tax assessment exceeding $84.7 million from the Mexican federal tax authority, which is currently under appeal[66] - The Company recorded an increase of $1.0 million in unrecognized tax positions during the thirteen weeks ended November 29, 2025[70] - The Company is in compliance with all covenants under the Credit Agreement as of November 29, 2025[77] Environmental Liabilities - Environmental liabilities increased to $31.088 million as of November 29, 2025, from $30.652 million as of August 30, 2025[62] - Total estimated costs for environmental remediation liabilities over the next five fiscal years amount to $36.173 million, net of estimated insurance proceeds[63] - The balance in the escrow account for estimated insurance proceeds related to environmental remediation was approximately $5.9 million as of November 29, 2025[63] - The Company's asset retirement obligations increased to $18.744 million as of November 29, 2025, from $18.524 million as of August 30, 2025[54]