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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 8, 2025

UNIFIRST CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	001-08504		04-2103460
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification No.)
68 Jonspin Road, Wilmington, Massachusetts		01887
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (978) 658-8888

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 par value per share	UNF	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On January 8, 2025, UniFirst Corporation (the “Company”) issued a press release (“Press Release”) announcing financial results for the first quarter of fiscal 2025, which ended on November 30, 2024. A copy of the Press Release is attached as Exhibit 99 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information in this Item 2.02, including the exhibit attached hereto, shall not be deemed “filed” for any purpose, including for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act") or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number		Description
99		Press release of the Company dated January 8, 2025
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		UNIFIRST CORPORATION
Date: January 8, 2025		By:	/s/ Steven S. Sintros
			Steven S. Sintros
			President and Chief Executive Officer
		By:	/s/ Shane O’Connor
			Shane O’Connor
			Executive Vice President and Chief Financial Officer

 

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Exhibit 99

Investor Relations Contact

Shane O'Connor, Executive Vice President & CFO

UniFirst Corporation

978-658-8888

shane_oconnor@unifirst.com

 

 

 

UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2025

Wilmington, MA – January 8, 2025 – UniFirst Corporation (NYSE: UNF) (the “Company,” “UniFirst” or “we”) today reported results for its first quarter ended November 30, 2024 as compared to the corresponding period in the prior fiscal year:

Q1 2025 Financial Highlights

 

The Company's financial results for the first quarter of fiscal 2025 and 2024 included approximately $2.5 million and $2.9 million, respectively, of costs directly attributable to its customer relationship management (“CRM”) computer system and enterprise resource planning (“ERP”) projects. The Company refers to the CRM and ERP projects together as its “Key Initiatives”. The effect of these items on the first quarter of fiscal 2025 and 2024 combined to decrease:

 

Steven Sintros, UniFirst President and Chief Executive Officer, said, “We are pleased with the results from our first quarter, which represent a solid start to our fiscal year. I want to sincerely thank all our Team Partners who continue to Always Deliver for each other and our customers as we strive towards our vision of being universally recognized as the best service provider in the industry …all while living our mission of Serving the People Who do the Hard Work.”

Segment Reporting Highlights

Core Laundry Operations

 

 

The costs we incurred related to the Key Initiatives were recorded to the Core Laundry Operations’ segment, and decreased both the Core Laundry Operations’ operating and Adjusted EBITDA margins for the first quarters of fiscal 2025 and 2024 by 0.5% and 0.6%, respectively.

 

The segment's operating and Adjusted EBITDA margin increases were primarily due to lower merchandise and other operating input costs as a percentage of revenues. These were partially offset by higher healthcare, legal and environmental, and selling costs in the first quarter of fiscal 2025 as a percentage of revenues.

 

 

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Specialty Garments

 

Balance Sheet and Capital Allocation

 

Financial Outlook

 

Mr. Sintros continued, “At this time, we expect our revenues for fiscal 2025 to be between $2.425 billion and $2.440 billion. We continue to expect diluted earnings per share to be between $6.79 and $7.19. This outlook continues to include an estimated $16.0 million of costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2025."

 

Although there has been a recent decline in the value of the Canadian dollar, this outlook assumes a constant Canadian exchange rate of $0.74, consistent with our original guidance, due to uncertainty in how the foreign currency will fluctuate over the remainder of the year.

 

Conference Call Information

UniFirst Corporation 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, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the Company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its five company-owned ISO-9001-certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For more information, contact UniFirst at 888.296.2740 or visit UniFirst.com.

Forward-Looking Statements Disclosure

This public announcement contains forward-looking statements within the meaning of the federal securities laws that reflect the Company's current views with respect to future events and financial performance, including projected revenues, operating margin 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 “guidance,” “outlook,” “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” “strategy,” “objective,” “assume,” “strive,” “design,” “assumption,” “vision” 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 an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation

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or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflict between Russia and Ukraine and, disruption in the Middle East, and their impact on our customers' businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses, and the performance of such 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 conflict between Russia and Ukraine, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of natural gas, electricity, fuel and labor or increases in such costs, the negative effect on our business from sharply depressed oil and natural gas prices, the continuing increase in domestic healthcare costs, increased workers' compensation claim costs, increased healthcare claim costs, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our Specialty Garments business, political or other instability, supply chain disruption or infection among our employees 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 enterprise resource planning 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 or additional Securities and Exchange Commission (the “SEC”), New York Stock Exchange and accounting or other rules, including, without limitation, recent rules adopted by the SEC regarding climate-related and cybersecurity-related disclosures, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, the impact of foreign trade policies and tariffs or other impositions on imported goods on our business, results of operations and financial condition, our ability to successfully implement our business strategies and processes, including our capital allocation strategies, our ability to successfully remediate the material weaknesses in internal control over financial reporting disclosed in our Annual Report on Form 10-K for the year ended August 31, 2024 and the other factors described under Part I, Item 1A. “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended August 31, 2024, Part II, Item 1A. “Risk Factors” and elsewhere in our subsequent Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made.

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Consolidated Statements of Income

(Unaudited)

 

		Thirteen Weeks Ended
(In thousands, except per share data)		November 30, 2024				November 25, 2023
Revenues		$	604,908			$	593,525
Operating expenses:
Cost of revenues (1)			381,054				383,796
Selling and administrative expenses (1)			133,515				122,859
Depreciation and amortization			34,808				33,733
Total operating expenses			549,377				540,388
Operating income			55,531				53,137
Other (income) expense:
Interest income, net			(2,695	)			(2,834	)
Other expense, net			290				716
Total other income, net			(2,405	)			(2,118	)
Income before income taxes			57,936				55,255
Provision for income taxes			14,831				12,930
Net income		$	43,105			$	42,325
Income per share – Basic:
Common Stock		$	2.41			$	2.35
Class B Common Stock		$	1.93			$	1.88
Income per share – Diluted:
Common Stock		$	2.31			$	2.26
Income allocated to – Basic:
Common Stock		$	36,213			$	35,566
Class B Common Stock		$	6,892			$	6,759
Income allocated to – Diluted:
Common Stock		$	43,105			$	42,325
Weighted average shares outstanding – Basic:
Common Stock			15,012				15,111
Class B Common Stock			3,574				3,590
Weighted average shares outstanding – Diluted:
Common Stock			18,666				18,769

 

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Condensed Consolidated Balance Sheets

(Unaudited)

 

(In thousands)		November 30, 2024				August 31, 2024
Assets
Current assets:
Cash and cash equivalents		$	166,246			$	161,571
Short-term investments			14,734				13,505
Receivables, net			281,542				278,851
Inventories			155,098				156,908
Rental merchandise in service			234,353				237,969
Prepaid taxes			7,608				14,893
Prepaid expenses and other current assets			56,816				51,979
Total current assets			916,397				915,676
Property, plant and equipment, net			802,571				801,612
Goodwill			649,890				648,850
Customer contracts and other intangible assets, net			114,430				119,999
Deferred income taxes			804				833
Operating lease right-of-use assets, net			64,921				66,682
Other assets			152,739				142,761
Total assets		$	2,701,752			$	2,696,413
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable		$	86,468			$	92,509
Accrued liabilities			156,445				170,240
Accrued taxes			—				447
Operating lease liabilities, current			17,985				18,241
Total current liabilities			260,898				281,437
Long-term liabilities:
Accrued liabilities			122,597				123,401
Accrued and deferred income taxes			135,105				132,496
Operating lease liabilities			49,505				50,568
Total liabilities			568,105				587,902
Shareholders’ equity:
Common Stock			1,503				1,500
Class B Common Stock			356				359
Capital surplus			104,108				104,791
Retained earnings			2,056,219				2,025,505
Accumulated other comprehensive loss			(28,539	)			(23,644	)
Total shareholders’ equity			2,133,647				2,108,511
Total liabilities and shareholders’ equity		$	2,701,752			$	2,696,413

 

 

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Detail of Operating Results

(Unaudited)

 

		Thirteen Weeks Ended November 30, 2024													Thirteen Weeks Ended November 25, 2023
		Core Laundry			Specialty			First							Core Laundry			Specialty			First
(In thousands, except percentages)		Operations			Garments			Aid			Total				Operations			Garments			Aid			Total
Revenues		$	532,743		$	45,943		$	26,222		$	604,908			$	523,989		$	44,669		$	24,867		$	593,525
Revenue Growth %			1.7	%		2.9	%		5.4	%		1.9	%
Operating Income (Loss) (1), (2)		$	43,023		$	12,167		$	341		$	55,531			$	42,091		$	12,117		$	(1,071	)	$	53,137
Operating Margin			8.1	%		26.5	%		1.3	%		9.2	%			8.0	%		27.1	%		-4.3	%		9.0	%
Adjusted EBITDA (1), (2)		$	79,061		$	13,646		$	1,253		$	93,960			$	75,656		$	13,324		$	(292	)	$	88,688
Adjusted EBITDA Margin			14.8	%		29.7	%		4.8	%		15.5	%			14.4	%		29.8	%		-1.2	%		14.9	%

 

 

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Consolidated Statements of Cash Flows

(Unaudited)

 

(In thousands)		November 30, 2024				November 25, 2023
Cash flows from operating activities:
Net income		$	43,105			$	42,325
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization (1)			34,808				33,733
Share-based compensation			2,836				2,534
Accretion on environmental contingencies			320				316
Accretion on asset retirement obligations			57				233
Deferred income taxes			1,706				640
Other			106				79
Changes in assets and liabilities, net of acquisitions:
Receivables, less reserves			(3,606	)			(20,413	)
Inventories			1,761				(138	)
Rental merchandise in service			2,762				(1,330	)
Prepaid expenses and other current assets and Other assets			(8,618	)			(9,692	)
Accounts payable			(6,861	)			(6,663	)
Accrued liabilities			(18,196	)			(6,172	)
Prepaid and accrued income taxes			7,944				10,218
Net cash provided by operating activities			58,124				45,670
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired			(2,352	)			—
Capital expenditures, including capitalization of software costs			(33,566	)			(39,050	)
Purchases of investments			(14,734	)			(11,394	)
Maturities of investments			13,039				10,217
Proceeds from sale of assets			153				606
Net cash used in investing activities			(37,460	)			(39,621	)
Cash flows from financing activities:
Proceeds from exercise of share-based awards			3				2
Taxes withheld and paid related to net share settlement of equity awards			(3,284	)			(2,290	)
Repurchase of Common Stock			(6,373	)			(255	)
Payment of cash dividends			(5,897	)			(5,573	)
Net cash used in financing activities			(15,551	)			(8,116	)
Effect of exchange rate changes			(438	)			4
Net increase (decrease) in cash and cash equivalents			4,675				(2,063	)
Cash and cash equivalents at beginning of period			161,571				79,443
Cash and cash equivalents at end of period		$	166,246			$	77,380

 

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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 the Company’s consolidated financial results in this press release, the Company also presents Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. The Company defines Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, further adjusted for share-based compensation expense, acquisition costs, executive transition costs and other items impacting the comparability of the Company’s underlying operating performance between periods. Adjusted EBITDA margin is defined as Adjusted EBITDA for a period divided by revenue for the same period.

The Company believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the Company and its segments to both management and investors. In addition, by excluding certain items, these non-GAAP financial measures enable management and investors to further evaluate the underlying operating performance of the Company.

 

Supplemental reconciliations of the Company’s consolidated net income on a GAAP basis to Adjusted EBITDA and Adjusted EBITDA margin, are presented in the following table. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures, which are provided below. Adjusted EBITDA and Adjusted EBITDA margin should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

 

The Company does not allocate its provision for income taxes to its business segments and as a result, presents it in a separate column in the following tables.

	Thirteen Weeks Ended November 30, 2024
		Core Laundry				Specialty				First
(In thousands, except percentages)		Operations				Garments				Aid				Other				Total
Revenue		$	532,743			$	45,943			$	26,222			$	—			$	604,908
Net income		$	45,428			$	12,167			$	341			$	(14,831	)		$	43,105
Provision for income taxes			—				—				—				14,831				14,831
Interest income, net			(2,695	)			—				—				—				(2,695	)
Depreciation and amortization			32,617				1,306				885				—				34,808
Share-based compensation expense			2,636				173				27				—				2,836
Executive transition costs			1,075				—				—				—				1,075
Adjusted EBITDA		$	79,061			$	13,646			$	1,253			$	—			$	93,960
Adjusted EBITDA Margin			14.8	%			29.7	%			4.8	%							15.5	%

 

	Thirteen Weeks Ended November 25, 2023
		Core Laundry				Specialty				First
(In thousands, except percentages)		Operations				Garments				Aid				Other				Total
Revenue		$	523,989			$	44,669			$	24,867			$	—			$	593,525
Net income		$	44,209			$	12,117			$	(1,071	)		$	(12,930	)		$	42,325
Provision for income taxes			—				—				—				12,930				12,930
Interest income, net			(2,834	)			—				—				—				(2,834	)
Depreciation and amortization			31,945				1,031				757				—				33,733
Share-based compensation expense			2,336				176				22				—				2,534
Adjusted EBITDA		$	75,656			$	13,324			$	(292	)		$	—			$	88,688
Adjusted EBITDA Margin			14.4	%			29.8	%			-1.2	%							14.9	%

 

 

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