In This Article:
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Full Year Revenue: $2.427 billion, an increase of 8.7% from fiscal 2023.
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Fourth Quarter Revenue: $639.9 million, up 11.9% from $571.9 million a year ago.
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Operating Income (Q4): $54 million, an increase of 49.8% from $36.1 million.
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Net Income (Q4): $44.6 million or $2.39 per diluted share, up from $27.6 million or $0.47 per diluted share.
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Adjusted EBITDA (Q4): $95 million, a 32.5% increase from $71.7 million in the prior year.
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Core Laundry Operations Revenue (Q4): $564.1 million, an increase of 11.7% from the fourth quarter of 2023.
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Core Laundry Operating Margin (Q4): 8%, up from 6% in the prior year.
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Specialty Garments Revenue (Q4): $46.5 million, an increase of 12.3% over the prior year.
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First Aid Segment Revenue (Q4): $29.3 million, an increase of 15.1%.
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Cash Flow from Operating Activities (Full Year): Increased 36.8% to $295.3 million.
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Capital Expenditures (Full Year): $160.4 million.
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Fiscal 2025 Revenue Guidance: Between $2.425 billion and $2.445 billion.
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Fiscal 2025 EPS Guidance: Between $6.79 and $7.19.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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UniFirst Corp (NYSE:UNF) reported a strong fourth quarter, exceeding expectations in both top and bottom line performance.
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Full year revenues reached a record $2.427 billion, an increase of 8.7% from fiscal 2023.
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Operating income and adjusted EBITDA increased significantly for the full year, benefiting from lower costs related to key initiatives.
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Cash flows from operating activities improved by 36.8% compared to fiscal 2023.
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The first aid and safety division exceeded $100 million in revenue for the first time and is expected to achieve double-digit growth in fiscal 2025.
Negative Points
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The company is experiencing a more challenging pricing environment, impacting retention rates and sequential revenue trends.
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Net wearer metrics indicate a less robust hiring environment, with a sequential decline observed.
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Organic growth in core laundry operations is expected to slow to between 1.3% and 2.3% in fiscal 2025.
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Specialty garments segment revenues are forecasted to decline by approximately 4% in 2025 due to projected declines in the nuclear business.
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Margins in the core laundry business are expected to be pressured by elevated depreciation, stock-based compensation, and costs related to key initiatives.
Q & A Highlights
Q: Can you provide insights on recent industry activity and the potential entry of [Elis] into the US market? A: Steven Sintros, President and CEO: We don't have much to add beyond public statements. We believe companies are interested in UniFirst due to our quality. The industry remains competitive, and we are focused on positioning ourselves well for the future.