WILMINGTON, Mass., April 01, 2020 (GLOBE NEWSWIRE) -- UniFirst Corporation (NYSE: UNF) (the “Company”) today reported results for its second quarter ended February 29, 2020 as compared to the corresponding period in the prior fiscal year:
Q2 2020 Financial Highlights
- Consolidated revenues for the second quarter increased 6.2% to $464.6 million.
- Operating income was $44.1 million, a decrease of 29.3%.
- The effective tax rate for the quarter decreased to 24.2% from 24.9%.
- Net income in the quarter decreased to $34.7 million from $47.6 million, or 27.2%.
- Diluted earnings per share decreased to $1.82 from $2.48, or 26.6%.
Operating income in the second quarter of fiscal 2019 benefited from a pre-tax gain of $21.1 million, which was recorded in selling and administrative expenses. This amount reflected a settlement with the lead contractor for the version of the customer relationship management system for which the Company had recorded a $55.8 million impairment charge in fiscal 2017 (the “CRM Settlement”). This settlement included the receipt of a one-time cash payment of $13.0 million, the forgiveness of amounts previously due the contractor as well as the receipt of certain hardware and related maintenance. Excluding the effect of the CRM Settlement:
- Operating income increased 6.8% compared to prior year’s adjusted operating income.
- Net income increased 8.2% from prior year’s adjusted net income of $32.0 million.
- Diluted earnings per share increased 9.0% from prior year’s adjusted amount of $1.67.
See the Reconciliation of GAAP to Non-GAAP Financial Measures below.
Steven Sintros, UniFirst President and Chief Executive Officer, said, “We are pleased with the results of our second quarter which largely met our expectations and showed solid top and bottom-line growth. However, the Company’s attention has now turned toward our pandemic response efforts. Our top priority is working to ensure the safety of our Team Partners while continuing to provide our value-added products and services to the many essential businesses that are keeping our communities safe and operating. I want to thank our Team Partners for their continued efforts as they demonstrate unwavering commitment and dedication.”
Segment Reporting Highlights
Core Laundry Operations
- Revenues for the quarter increased 4.5% to $412.2 million.
- Organic growth, which excludes the effect of acquisitions and fluctuations in the Canadian dollar, was 3.6%.
- Operating margin decreased to 9.3% from 15.0%. Adjusted for the effect of the CRM Settlement in 2019, adjusted operating margin in prior year was 9.6%. The decrease from prior year’s adjusted operating margin was primarily due to higher production and service payroll costs as a percentage of revenues, which were partially offset by lower energy costs.
See the Reconciliation of GAAP to Non-GAAP Financial Measures below.
Specialty Garments
- Revenues for the quarter were $36.0 million, an increase of 21.0%. The increase in Specialty Garments revenue was primarily due to higher direct sale activity in the quarter as well as strong performance in the cleanroom and European nuclear operations.
- Operating margin increased to 12.9% from 7.5%. This increase was primarily due to the higher direct sale activity in the quarter.
- Specialty Garments consists of nuclear decontamination and cleanroom operations and its results can vary significantly due to seasonality and the timing of reactor outages and projects.
Balance Sheet and Capital Allocation
- Cash, cash equivalents and short-term investments totaled $395.3 million as of February 29, 2020.
- The Company had no long-term debt outstanding as of February 29, 2020.
- Under its previously announced stock repurchase program, the Company repurchased 20,500 common shares for a total of $4.2 million during its second fiscal quarter of 2020. As of February 29, 2020, the Company had repurchased a total of 268,250 common shares for a total of $44.7 million under the program.
- Weighted average shares outstanding – Diluted for the second quarter of fiscal 2020 and fiscal 2019 was 19.1 million and 19.2 million shares, respectively.
Financial Outlook
Mr. Sintros continued, “Due to the evolving pandemic, our ability to assess the financial impact on our business remains limited. As a result, we are not providing guidance for the remainder of our fiscal 2020. Although we are not able to quantify, we expect the disruption related to this pandemic will clearly have a negative impact on our revenues and profitability. We also expect that if sustained for an extended period, the sharp decline in oil prices as well as the decline in the Canadian exchange rate will further challenge our performance. Our strong balance sheet positions us well to weather this disruption and maintain focus on the care of our Team Partners, our customers and our communities.”
Conference Call Information
UniFirst will hold a conference call today at 9:00 a.m. (ET) to discuss its quarterly financial results, business highlights and outlook. A simultaneous live webcast of the call will be available over the Internet and can be accessed at www.unifirst.com.
About UniFirst Corporation
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 260 service locations, over 300,000 customer locations, and 14,000-plus 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 Disclosure
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,” “strategy,” “objective,” “positions,” “assume,” 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, uncertainties caused by adverse economic conditions, including, without limitation, as a result of extraordinary events or circumstances such as the COVID-19 pandemic, and their impact on our customers’ businesses and workforce levels, disruptions of our business and operations or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances such as the COVID-19 pandemic, uncertainties regarding our ability to consummate and successfully integrate acquired businesses, 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, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the COVID-19 pandemic, any loss of key management or other personnel, increased costs as a result of any changes in federal or state laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding the price levels of natural gas, electricity, fuel and labor, the negative effect on our business from sharply depressed oil and natural gas prices, including, without limitation, as a result of extraordinary events or circumstances such as the COVID-19 pandemic, the continuing increase in domestic healthcare costs, increased healthcare costs resulting from extraordinary events or circumstances such as the COVID-19 pandemic, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our Specialty Garments business, instability in Mexico and Nicaragua where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate a new customer relationship management (“CRM”) computer system, interruptions or failures of our information technology systems, including as a result of cyber-attacks, additional professional and internal costs necessary for compliance with any changes in Securities and Exchange Commission, New York Stock Exchange and accounting rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, economic and other developments associated with the war on terrorism and its impact on the economy, the impact of foreign trade policies and tariffs or other impositions on imported goods on our business, results of operations and financial condition, general economic conditions, our ability to successfully implement our business strategies and processes, including our capital allocation strategies and other factors described under “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended August 31, 2019 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 they are made.
Consolidated Statements of Income
(Unaudited)
| (In thousands, except per share data) |
|
Thirteen weeks ended February 29, 2020 |
|
|
Thirteen weeks ended February 23, 2019 |
|
|
Twenty-six weeks ended February 29, 2020 |
|
|
Twenty-six weeks ended February 23, 2019 |
|
| Revenues |
|
$ |
464,600 |
|
|
$ |
437,485 |
|
|
$ |
929,998 |
|
|
$ |
876,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenues (1) |
|
|
301,422 |
|
|
|
281,672 |
|
|
|
590,738 |
|
|
|
558,721 |
|
| Selling and administrative expenses (1) |
|
|
93,080 |
|
|
|
68,321 |
|
|
|
183,608 |
|
|
|
154,280 |
|
| Depreciation and amortization |
|
|
25,971 |
|
|
|
25,046 |
|
|
|
51,430 |
|
|
|
50,162 |
|
| Total operating expenses |
|
|
420,473 |
|
|
|
375,039 |
|
|
|
825,776 |
|
|
|
763,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
44,127 |
|
|
|
62,446 |
|
|
|
104,222 |
|
|
|
112,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income, net |
|
|
(2,175 |
) |
|
|
(2,009 |
) |
|
|
(4,536 |
) |
|
|
(3,714 |
) |
| Other expense, net |
|
|
539 |
|
|
|
1,060 |
|
|
|
1,067 |
|
|
|
1,232 |
|
| Total other income, net |
|
|
(1,636 |
) |
|
|
(949 |
) |
|
|
(3,469 |
) |
|
|
(2,482 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
45,763 |
|
|
|
63,395 |
|
|
|
107,691 |
|
|
|
115,354 |
|
| Provision for income taxes |
|
|
11,083 |
|
|
|
15,789 |
|
|
|
24,769 |
|
|
|
29,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
34,680 |
|
|
$ |
47,606 |
|
|
$ |
82,922 |
|
|
$ |
85,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income per share – Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
$ |
1.90 |
|
|
$ |
2.59 |
|
|
$ |
4.55 |
|
|
$ |
4.67 |
|
| Class B Common Stock |
|
$ |
1.52 |
|
|
$ |
2.07 |
|
|
$ |
3.64 |
|
|
$ |
3.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income per share – Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
$ |
1.82 |
|
|
$ |
2.48 |
|
|
$ |
4.34 |
|
|
$ |
4.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income allocated to – Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
$ |
29,129 |
|
|
$ |
39,923 |
|
|
$ |
69,654 |
|
|
$ |
72,061 |
|
| Class B Common Stock |
|
$ |
5,551 |
|
|
$ |
7,683 |
|
|
$ |
13,268 |
|
|
$ |
13,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income allocated to – Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
$ |
34,680 |
|
|
$ |
47,606 |
|
|
$ |
82,922 |
|
|
$ |
85,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding – Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
15,293 |
|
|
|
15,428 |
|
|
|
15,300 |
|
|
|
15,430 |
|
| Class B Common Stock |
|
|
3,643 |
|
|
|
3,710 |
|
|
|
3,643 |
|
|
|
3,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding – Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock |
|
|
19,105 |
|
|
|
19,232 |
|
|
|
19,114 |
|
|
|
19,258 |
|
(1) Exclusive of depreciation on the Company’s property, plant and equipment and amortization on its intangible assets.
Condensed Consolidated Balance Sheets
(Unaudited)
| (In thousands) |
|
February 29, 2020 |
|
|
August 31, 2019 |
|
| Assets |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash, cash equivalents and short-term investments |
|
$ |
395,323 |
|
|
$ |
385,341 |
|
| Receivables, net |
|
|
209,878 |
|
|
|
203,457 |
|
| Inventories |
|
|
94,875 |
|
|
|
100,916 |
|
| Rental merchandise in service |
|
|
179,291 |
|
|
|
184,318 |
|
| Prepaid taxes |
|
|
8,933 |
|
|
|
4,060 |
|
| Prepaid expenses and other current assets |
|
|
35,522 |
|
|
|
35,699 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
923,822 |
|
|
|
913,791 |
|
|
|
|
|
|
|
|
|
|
| Property, plant and equipment, net |
|
|
582,753 |
|
|
|
574,509 |
|
| Goodwill |
|
|
424,711 |
|
|
|
401,178 |
|
| Customer contracts and other intangible assets, net |
|
|
88,355 |
|
|
|
72,720 |
|
| Deferred income taxes |
|
|
475 |
|
|
|
448 |
|
| Operating lease right-of-use assets, net |
|
|
46,426 |
|
|
|
— |
|
| Other assets |
|
|
86,320 |
|
|
|
84,674 |
|
|
|
$ |
2,152,862 |
|
|
$ |
2,047,320 |
|
|
|
|
|
|
|
|
|
|
| Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
71,172 |
|
|
$ |
77,918 |
|
| Accrued liabilities |
|
|
117,968 |
|
|
|
111,721 |
|
| Accrued taxes |
|
|
— |
|
|
|
205 |
|
| Operating lease liabilities, current |
|
|
12,255 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
201,395 |
|
|
|
189,844 |
|
|
|
|
|
|
|
|
|
|
| Long-term liabilities: |
|
|
|
|
|
|
|
|
| Accrued liabilities |
|
|
118,114 |
|
|
|
117,074 |
|
| Accrued and deferred income taxes |
|
|
99,439 |
|
|
|
99,172 |
|
| Operating lease liabilities |
|
|
32,476 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
451,424 |
|
|
|
406,090 |
|
|
|
|
|
|
|
|
|
|
| Shareholders’ equity: |
|
|
|
|
|
|
|
|
| Common Stock |
|
|
1,529 |
|
|
|
1,533 |
|
| Class B Common Stock |
|
|
364 |
|
|
|
364 |
|
| Capital surplus |
|
|
84,577 |
|
|
|
84,946 |
|
| Retained earnings |
|
|
1,648,069 |
|
|
|
1,588,075 |
|
| Accumulated other comprehensive loss |
|
|
(33,101 |
) |
|
|
(33,688 |
) |
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity |
|
|
1,701,438 |
|
|
|
1,641,230 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,152,862 |
|
|
$ |
2,047,320 |
|
Detail of Operating Results
(Unaudited)
Revenues
| (In thousands, except percentages) |
|
Thirteen weeks ended February 29, 2020 |
|
|
Thirteen weeks ended February 23, 2019 |
|
|
Dollar
Change |
|
|
Percent
Change |
|
| Core Laundry Operations |
|
$ |
412,192 |
|
|
$ |
394,408 |
|
|
$ |
17,784 |
|
|
|
4.5 |
% |
| Specialty Garments |
|
|
35,980 |
|
|
|
29,745 |
|
|
|
6,235 |
|
|
|
21.0 |
% |
| First Aid |
|
|
16,428 |
|
|
|
13,332 |
|
|
|
3,096 |
|
|
|
23.2 |
% |
| Consolidated total |
|
$ |
464,600 |
|
|
$ |
437,485 |
|
|
$ |
27,115 |
|
|
|
6.2 |
% |
| (In thousands, except percentages) |
|
Twenty-six weeks ended February 29, 2020 |
|
|
Twenty-six weeks ended February 23, 2019 |
|
|
Dollar
Change |
|
|
Percent
Change |
|
| Core Laundry Operations |
|
$ |
828,490 |
|
|
$ |
784,885 |
|
|
$ |
43,605 |
|
|
|
5.6 |
% |
| Specialty Garments |
|
|
69,382 |
|
|
|
64,193 |
|
|
|
5,189 |
|
|
|
8.1 |
% |
| First Aid |
|
|
32,126 |
|
|
|
26,957 |
|
|
|
5,169 |
|
|
|
19.2 |
% |
| Consolidated total |
|
$ |
929,998 |
|
|
$ |
876,035 |
|
|
$ |
53,963 |
|
|
|
6.2 |
% |
Operating Income
| (In thousands, except percentages) |
|
Thirteen weeks ended February 29, 2020 |
|
|
Thirteen weeks ended February 23, 2019 |
|
|
Dollar
Change |
|
|
Percent
Change |
|
| Core Laundry Operations |
|
$ |
38,357 |
|
|
$ |
59,113 |
|
|
$ |
(20,756 |
) |
|
|
(35.1 |
)% |
| Specialty Garments |
|
|
4,627 |
|
|
|
2,235 |
|
|
|
2,392 |
|
|
|
107.0 |
% |
| First Aid |
|
|
1,143 |
|
|
|
1,098 |
|
|
|
45 |
|
|
|
4.1 |
% |
| Consolidated total |
|
$ |
44,127 |
|
|
$ |
62,446 |
|
|
$ |
(18,319 |
) |
|
|
(29.3 |
)% |
| (In thousands, except percentages) |
|
Twenty-six weeks ended February 29, 2020 |
|
|
Twenty-six weeks ended February 23, 2019 |
|
|
Dollar
Change |
|
|
Percent
Change |
|
| Core Laundry Operations |
|
$ |
92,165 |
|
|
$ |
103,895 |
|
|
$ |
(11,730 |
) |
|
|
(11.3 |
)% |
| Specialty Garments |
|
|
9,506 |
|
|
|
6,705 |
|
|
|
2,801 |
|
|
|
41.8 |
% |
| First Aid |
|
|
2,551 |
|
|
|
2,272 |
|
|
|
279 |
|
|
|
12.3 |
% |
| Consolidated total |
|
$ |
104,222 |
|
|
$ |
112,872 |
|
|
$ |
(8,650 |
) |
|
|
(7.7 |
)% |
Operating Margin
|
|
Thirteen weeks ended February 29, 2020 |
|
|
Thirteen weeks ended February 23, 2019 |
|
| Core Laundry Operations |
|
|
9.3 |
% |
|
|
15.0 |
% |
| Specialty Garments |
|
|
12.9 |
% |
|
|
7.5 |
% |
| First Aid |
|
|
7.0 |
% |
|
|
8.2 |
% |
| Consolidated total |
|
|
9.5 |
% |
|
|
14.3 |
% |
|
|
Twenty-six weeks ended February 29, 2020 |
|
|
Twenty-six weeks ended February 23, 2019 |
|
| Core Laundry Operations |
|
|
11.1 |
% |
|
|
13.2 |
% |
| Specialty Garments |
|
|
13.7 |
% |
|
|
10.4 |
% |
| First Aid |
|
|
7.9 |
% |
|
|
8.4 |
% |
| Consolidated total |
|
|
11.2 |
% |
|
|
12.9 |
% |
Consolidated Statements of Cash Flows
(Unaudited)
| (In thousands) |
|
Twenty-six weeks ended February 29, 2020 |
|
|
Twenty-six weeks ended February 23, 2019 |
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
82,922 |
|
|
$ |
85,926 |
|
| Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
51,430 |
|
|
|
50,162 |
|
| Amortization of deferred financing costs |
|
|
56 |
|
|
|
56 |
|
| Forgiveness of a liability |
|
|
— |
|
|
|
(7,346 |
) |
| Share-based compensation |
|
|
3,227 |
|
|
|
2,796 |
|
| Accretion on environmental contingencies |
|
|
269 |
|
|
|
377 |
|
| Accretion on asset retirement obligations |
|
|
463 |
|
|
|
441 |
|
| Deferred income taxes |
|
|
727 |
|
|
|
364 |
|
| Other |
|
|
16 |
|
|
|
(811 |
) |
| Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
| Receivables, less reserves |
|
|
(4,867 |
) |
|
|
(2,502 |
) |
| Inventories |
|
|
6,125 |
|
|
|
(5,589 |
) |
| Rental merchandise in service |
|
|
6,839 |
|
|
|
(4,862 |
) |
| Prepaid expenses and other current assets and Other assets |
|
|
2,170 |
|
|
|
(3,616 |
) |
| Accounts payable |
|
|
(5,815 |
) |
|
|
(5,268 |
) |
| Accrued liabilities |
|
|
(1,752 |
) |
|
|
(7,711 |
) |
| Prepaid and accrued income taxes |
|
|
(4,941 |
) |
|
|
26,243 |
|
| Net cash provided by operating activities |
|
|
136,869 |
|
|
|
128,660 |
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
| Acquisition of businesses, net of cash acquired |
|
|
(41,021 |
) |
|
|
(67 |
) |
| Capital expenditures, including capitalization of software costs |
|
|
(62,271 |
) |
|
|
(52,152 |
) |
| Proceeds from sale of assets |
|
|
236 |
|
|
|
178 |
|
| Other |
|
|
— |
|
|
|
15 |
|
| Net cash used in investing activities |
|
|
(103,056 |
) |
|
|
(52,026 |
) |
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
| Proceeds from exercise of share-based awards |
|
|
75 |
|
|
|
27 |
|
| Taxes withheld and paid related to net share settlement of equity awards |
|
|
(3,281 |
) |
|
|
(1,095 |
) |
| Repurchase of Common Stock |
|
|
(14,203 |
) |
|
|
(6,280 |
) |
| Payment of cash dividends |
|
|
(6,609 |
) |
|
|
(4,140 |
) |
| Net cash used in financing activities |
|
|
(24,018 |
) |
|
|
(11,488 |
) |
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes |
|
|
187 |
|
|
|
(336 |
) |
|
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash, cash equivalents and short-term investments |
|
|
9,982 |
|
|
|
64,810 |
|
| Cash, cash equivalents and short-term investments at beginning of period |
|
|
385,341 |
|
|
|
270,512 |
|
| Cash, cash equivalents and short-term investments at end of period |
|
$ |
395,323 |
|
|
$ |
335,322 |
|
UniFirst Corporation and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
The Company reports its consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). To supplement these consolidated financial results, management believes that certain non-GAAP operating results provide a more meaningful measure on which to compare the Company’s results of operations for the periods presented. The Company believes these non-GAAP results provide useful supplemental information regarding the Company’s performance to both management and investors by excluding certain non-recurring amounts that impact the comparability of the results. Supplemental reconciliations of consolidated operating income, net income and earnings per diluted share on a GAAP basis to adjusted operating income, net income and earnings per diluted share on a non-GAAP basis are presented in the following tables. In addition, Core Laundry Operations operating income and operating margin on a GAAP basis to adjusted operating income and adjusted operating margin on a non-GAAP basis are presented in the following tables. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided below.
|
|
Thirteen weeks ended February 23, 2019 |
|
|
|
Consolidated |
|
|
Core Laundry Operations |
|
| (In thousands, except percentages) |
|
Revenue |
|
|
Operating
Income |
|
|
Net
Income |
|
|
Diluted
EPS |
|
|
Revenue |
|
|
Operating
Income |
|
|
Operating
Margin |
|
| As reported |
|
$ |
437,485 |
|
|
$ |
62,446 |
|
|
$ |
47,606 |
|
|
$ |
2.48 |
|
|
$ |
394,408 |
|
|
$ |
59,113 |
|
|
|
15.0 |
% |
| CRM Settlement |
|
|
— |
|
|
|
(21,127 |
) |
|
|
(15,566 |
) |
|
|
(0.81 |
) |
|
|
— |
|
|
|
(21,127 |
) |
|
|
(5.4 |
)% |
| As adjusted |
|
$ |
437,485 |
|
|
$ |
41,319 |
|
|
$ |
32,040 |
|
|
$ |
1.67 |
|
|
$ |
394,408 |
|
|
$ |
37,986 |
|
|
|
9.6 |
% |
|
|
Twenty-six weeks ended February 23, 2019 |
|
|
|
Consolidated |
|
|
Core Laundry Operations |
|
| (In thousands, except percentages) |
|
Revenue |
|
|
Operating
Income |
|
|
Net
Income |
|
|
Diluted
EPS |
|
|
Revenue |
|
|
Operating
Income |
|
|
Operating
Margin |
|
| As reported |
|
$ |
876,035 |
|
|
$ |
112,872 |
|
|
$ |
85,926 |
|
|
$ |
4.46 |
|
|
$ |
784,885 |
|
|
$ |
103,895 |
|
|
|
13.2 |
% |
| CRM Settlement |
|
|
— |
|
|
|
(21,127 |
) |
|
|
(15,566 |
) |
|
|
(0.81 |
) |
|
|
— |
|
|
|
(21,127 |
) |
|
|
(2.7 |
)% |
| As adjusted |
|
$ |
876,035 |
|
|
$ |
91,745 |
|
|
$ |
70,360 |
|
|
$ |
3.65 |
|
|
$ |
784,885 |
|
|
$ |
82,768 |
|
|
|
10.5 |
% |
Investor Relations Contact
Shane O’Connor, Senior Vice President & CFO
UniFirst Corporation
978-658-8888
shane_oconnor@unifirst.com
