Financial Performance - Adjusted EBITDA for the first quarter was $70 million, showing improvement from the low point in fiscal Q4 2025 [4] - Revenue for the first quarter was $663.4 million, a decline of $20.4 million or 3% compared to the first quarter of fiscal 2025 [12] - Adjusted EBITDA margin was 10.6%, compared to 11.9% in the prior year, but improved by 150 basis points from fiscal Q4 2025 [16] Business Line Performance - Rental revenue declined by $17.9 million, and direct sales decreased by $2.7 million, with a slight positive impact from foreign exchange [12] - Processed 2% less in uniforms but increased linen volume by 7%, indicating a shift in product mix towards more costly items [13] - Revenue per pound declined by $0.04 or 3%, equating to a $20 million decrease in total revenue [14] Market Data - Total volume processed was flat year-over-year when measured by pounds, but the product mix has shifted, impacting revenue quality [12][14] - The company continues to focus on key verticals with no significant changes in macro demand observed [33] Company Strategy and Development Direction - The company is focused on operational excellence, commercial excellence, and network and asset optimization as part of its transformation framework [4][9] - Plans to improve revenue quality through better product mix and strategic pricing initiatives [14][21] - Actively marketing non-core properties for sale to optimize asset footprint and repay debt [9][21] Management Comments on Operating Environment and Future Outlook - Management emphasized that the transformation is still in early stages, with ongoing efforts to improve operational consistency and create value [10][37] - The company expects revenue for fiscal 2026 to be flat to down 2% compared to fiscal 2025, with adjusted EBITDA guidance of $285 million to $315 million [21] Other Important Information - First quarter capital investments were $9.4 million, below the target due to longer lead times for equipment [18] - The company generated $38 million in operating cash flow and $28 million in free cash flow, with significant improvements in working capital management [17][19] Q&A Session Summary Question: Revenue per pound decline and its trend for the year - Management confirmed that revenue per pound is expected to remain flat to down 2% for the full year, with a focus on improving mix and pricing [24][25] Question: Sequential EBITDA growth assumptions - Management guided for 5% sequential adjusted EBITDA growth for each remaining quarter, with specific operational and commercial assumptions underpinning this progression [27][28] Question: General macro and customer demand - Management noted no significant changes in macro demand, with consistent volume on a pound basis year-over-year [33] Question: Progress on transformation - Management indicated that they are in the early stages of transformation, with ongoing improvements in cost and service levels [37][39] Question: Cost savings realization and cadence - Management clarified that the $75 million in cost savings is a full-year target, with $40 million expected to be realized in FY 2026 [53][54] Question: Traction in the unvended market - Management reported a consistent split between programmers and non-programmers, with ongoing efforts to penetrate the unvended market [59][60]

Core Viewpoint - The article emphasizes the role of the Yilan County Federation of Industry and Commerce in promoting the healthy growth of private economic entities and advancing high-quality development of the local private economy [1] Group 1: Industry Development - The Federation organized a study tour for private economic representatives to Muling City, focusing on the development of the flax industry through visits to Longmuya Flax Textile Co., Ltd. and Jintai Heng Flax Co., Ltd. [1] - In-depth discussions were held on technical aspects such as the selection of flax planting areas and crop rotation models to enhance the development of the flax industry [1] Group 2: Cross-Regional Cooperation - The Federation facilitated a visit for the head of Heilongjiang Kanglis Pharmaceutical Co., Ltd. to the Jiamusi Chinese Herbal Medicine Association, establishing a platform for cross-regional chamber cooperation [1] - This initiative aims to help enterprises expand their product sales channels [1] Group 3: Financial Support - To address the financing challenges faced by enterprises, the Federation actively built a government-bank-enterprise platform [1] - A government-bank-enterprise matchmaking meeting was organized, involving multiple departments and 10 banking institutions alongside 35 small and medium-sized enterprises to tackle financing bottlenecks [1] - Four banks signed agreements with five enterprises on-site, with a total signing amount of 150 million yuan, covering key areas such as grain and oil reserves, green agriculture, and pharmaceutical technology [1]