UniFirst Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Core Financial Performance - UniFirst Corporation reported adjusted earnings of $2.40 per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of$2.27, but down from $2.46 per share in the same quarter last year [1] - Total revenues for the company were$605 million, aligning with consensus estimates and reflecting a year-over-year increase of 1.9% [1] Segment Performance - Revenues from the Core Laundry Operations segment rose 1.7% year over year to $532.7 million, slightly above the consensus estimate of$532 million, with an operating margin increase of 10 basis points to 8.1% [3] - The Specialty Garments segment saw a 2.9% year-over-year revenue increase to $45.9 million, driven by growth in European and North American nuclear operations, although the operating margin decreased by 60 basis points to 26.5$26.2 million, below the consensus estimate of $28.8 million, but the EBITDA margin improved by 600 basis points to 4.8$381.1 million, while selling and administrative expenses increased by 8.7% to $133.5 million [6] - Operating income rose to$55.5 million, a 4.5% increase year over year, with the operating margin improving to 9.2% from 9% in the previous year [6] Balance Sheet and Cash Flow - At the end of Q1 fiscal 2025, UniFirst had cash and cash equivalents of $166.2 million, up from$161.6 million at the end of fiscal 2024, with no long-term debt outstanding [7] - The company generated net cash of $58.1 million from operating activities in the first three months of fiscal 2025, compared to$27.3 million in the same period last year [7] Shareholder Returns - UniFirst rewarded shareholders with a dividend payment of $5.9 million, reflecting a year-over-year increase of 5.8$6.4 million [8] Major Corporate Development - On January 7, 2025, UniFirst's board rejected Cintas Corporation's acquisition offer of $275 per share, determining it was not in the best interests of the company and its shareholders [9] Fiscal 2025 Outlook - Management projects revenues to be between$2.425 billion and $2.440 billion, with anticipated earnings per share in the range of$6.79 to $7.19 for the fiscal year [10]