WILMINGTON, Mass., Sept. 21, 2017 (GLOBE NEWSWIRE) -- UniFirst Corporation (NYSE:UNF) today announced that it
expects to recognize an impairment of capitalized costs as part of its ongoing CRM systems project. The Company expects the
non-cash charge related to this impairment will be between $50 million and $60 million and recognized in its results for the fourth
quarter ended August 26, 2017. The after tax impact of this charge is expected to be between $31 million and $37 million.
As the Company has previously disclosed, it has been working on a CRM systems project to modernize and improve
its current capabilities. The Company has worked with a well-regarded third-party contractor to develop the custom-built
applications and interfaces. This project experienced repeated delays due primarily to significant quality issues with the
stability and performance of the underlying code. Based on the Company’s analysis of the project together with input from
outside consultants, including the lead third-party contractor, the Company has now determined that it is no longer probable that
the current version of the CRM system that was being developed will be completed and placed into service.
President and Chief Executive Officer, Steven Sintros said, “We are committed to continuing to invest in
technology in the ongoing effort to bring new capabilities and efficiencies to our customers as well as our employees. For example,
we recently successfully deployed a new sales and marketing prospect management platform including mobile technology to our entire
sales organization. We are also confident in our current ability to continue providing high levels of service to our customers
utilizing our existing proven systems while we continue to migrate to newer technology.”
The Company is finalizing its analysis with respect to the amount of the expected impairment charge, which is
also subject to review by our independent auditors. As a result, the expected amount of the impairment charge is preliminary
and subject to change.
About UniFirst:
Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE:UNF) is a North American leader in the supply and
servicing of uniform and workwear programs, as well as the delivery of facility service programs. Together with its subsidiaries,
the company also provides first aid and safety products, and manages specialized garment programs for the cleanroom and nuclear
industries. UniFirst manufactures its own branded workwear, protective clothing, and floorcare products, and with 250 service
locations, over 300,000 customer locations, and 14,000 employee Team Partners, the company outfits nearly 2 million workers each
business day. For more information, contact UniFirst at 800.455.7654 or visit UniFirst.com.
Forward Looking Statements:
This public announcement contains forward looking statements that reflect the Company’s current views with respect to
future events and financial performance, including projected revenues and earnings per share. Forward looking statements contained
in this public announcement are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and may
be identified by words such as “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,”
“should,” “may,” “will,” or the negative versions thereof, and similar expressions and by the context in which they are used. Such
forward looking statements are based upon our current expectations and speak only as of the date made. Such statements are highly
dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially
from those reflected in such forward looking statements. Such factors include, but are not limited to, the performance and success
of our new Chief Executive Officer, our ability to efficiently design, construct, and implement a new customer relationship
management (“CRM”) computer system, our ability to maintain and grow Arrow’s customer base and enhance its operating margins, our
ability to compete successfully without any significant degradation in our margin rates, uncertainties caused by the continuing
adverse worldwide economic conditions and their impact on our customers’ businesses and workforce levels, uncertainties regarding
any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome
of pending or future contingencies or claims, uncertainties regarding our ability to consummate and successfully integrate acquired
businesses, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization
campaigns that could disrupt our business, the continuing increase in domestic healthcare costs, including the ultimate impact of
the Affordable Care Act, our retention of customers and renewal of customer contracts, uncertainties regarding the price levels of
natural gas, electricity, fuel and labor, the negative effect on our business from sharply depressed oil prices, fluctuation on our
revenue and net income from our specialty garments segment, the effect of currency fluctuations on our results of operations and
financial condition, rampant criminal activity and instability in Mexico where our principal garment manufacturing plants are
located, the impact on our goodwill and intangibles that might result from adverse financial and economic changes, interruptions or
failures of our information technology systems, including as a result of cyber-attacks, failure to comply with other state and
federal regulations that might result in penalties or costs, seasonal and quarterly fluctuations in business levels, any loss of
key management or other personnel, our dependence on third parties to supply us with raw materials, increased costs as a
result of any future changes in federal or state laws, rules and regulations or governmental interpretation of such laws, rules and
regulations, demand and prices for our products and services, economic and other developments associated with the war on terrorism
and its impact on the economy, general economic conditions and other factors described under “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended August 27, 2016 and in our other filings with the Securities and Exchange Commission.
We undertake no obligation to update any forward looking statements to reflect events or circumstances arising after the date on
which such statements are made.
CONTACT: Steven S. Sintros, President & CEO
Phone: 978- 658-8888
Email: ssintros@UniFirst.com
