Core Financial Highlights - Consolidated revenues for Q2 2025 increased by 1.9% to $602.2 million compared to $590.7 million in Q2 2024 [6] - Operating income rose to $31.2 million, reflecting an increase of 11.7% from the previous year [6] - Net income increased to $24.5 million, up 19.6% from $20.5 million in the prior year [6] - Diluted earnings per share increased to $1.31, a rise of 20.2% from $1.09 in the prior year [6] - Adjusted EBITDA increased to $68.9 million, a 6.3% increase from $64.8 million in the prior year [6] Segment Performance - Core Laundry Operations revenues increased by 1.5% to $530.4 million, with an organic growth of 1.9% [7] - Adjusted EBITDA margin for Core Laundry Operations improved to 11.2% from 10.3% [7] - Specialty Garments segment revenues were $44.4 million, up 2.2%, but operating margin decreased to 16.7% from 22.8% due to increased costs [8] Key Initiatives Impact - Costs related to Key Initiatives (CRM and ERP projects) were approximately $1.9 million in Q2 2025 and $3.2 million in Q2 2024, impacting margins [2][18] - The Key Initiatives decreased Core Laundry Operations' operating margin and Adjusted EBITDA margin by 0.3% and 0.6%, respectively, for both quarters [18] Balance Sheet and Cash Flow - Cash, cash equivalents, and short-term investments totaled $201.0 million as of March 1, 2025 [8] - The company had no long-term debt outstanding as of March 1, 2025 [8] - Cash flow from operating activities was $128.3 million in the first half of fiscal 2025, a 20.2% increase over the prior year [8] Financial Outlook - The company expects revenues for fiscal 2025 to be between $2.422 billion and $2.432 billion, reflecting the anticipated negative impact of the Canadian Dollar exchange rate [9] - Diluted earnings per share are projected to be between $7.30 and $7.70, with Key Initiative costs expected to approximate $12.0 million [9]