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UniFirst Announces Financial Results for the Third Quarter of Fiscal 2022

·17-min read
Unifirst Corporation
Unifirst Corporation

WILMINGTON, Mass., June 29, 2022 (GLOBE NEWSWIRE) -- UniFirst Corporation (NYSE: UNF) (the “Company,” “UniFirst” or “we”) today reported results for its third quarter ended May 28, 2022 as compared to the corresponding period in the prior fiscal year:

Q3 2022 Financial Highlights

  • Consolidated revenues for the third quarter increased 10.2% to $511.5 million.

  • Operating income was $33.7 million, a decrease of 37.8%.

  • The quarterly tax rate increased to 25.4% compared to 22.9% in the prior year.

  • Net income decreased to $25.1 million, or 40.3%.

  • Diluted earnings per share decreased to $1.33 from $2.21 in the prior year, or 39.8%.

The Company’s financial results for the third quarter of fiscal 2022 included $11.4 million of costs directly attributable to its CRM, ERP and branding initiatives (the “Key Initiatives”). Excluding these Key Initiative costs:

  • Adjusted operating income was $45.1 million.

  • Adjusted net income was $33.5 million.

  • Adjusted diluted earnings per share was $1.77.

Steven Sintros, UniFirst President and Chief Executive Officer, said, “Our third quarter results continue to reflect a strong top-line performance as well as margin pressure influenced by an increasingly inflationary environment. We are pleased with the performance of our thousands of Team Partners, who despite a challenging operating environment, continue to Always Deliver for each other and our customers.”

Segment Reporting Highlights

Core Laundry Operations

  • Revenues for the quarter increased 10.0% to $450.0 million.

  • Organic growth, which excludes the effect of acquisitions and fluctuations in the Canadian dollar, was 9.3%.

  • Operating margin decreased to 5.9% from 11.2%.

The costs incurred during the quarter related to the Key Initiatives, discussed above, were recorded to the Core Laundry Operations’ segment. Excluding these Key Initiative costs:

  • Core Laundry adjusted operating margin was 8.4%. The decrease from prior year’s operating margin was primarily due to higher merchandise and energy costs as a percentage of revenues as well as increased costs due to the inflationary environment and the challenging employment landscape.

Specialty Garments

  • Revenues for the quarter were $41.2 million, an increase of 7.7%, which was driven by growth in the segment's cleanroom operations.

  • Operating margin decreased to 17.4% from 21.7% a year ago, primarily due to higher merchandise, labor and energy costs as a percentage of revenues.

  • 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 $410.6 million as of May 28, 2022.

  • The Company had no long-term debt outstanding as of May 28, 2022.

  • Under its previously announced stock repurchase authorization, the Company repurchased 90,394 shares of common stock for $15.7 million in the third quarter of fiscal 2022. As of May 28, 2022, the Company had $71.6 million remaining under its current authorization.

  • Weighted average shares outstanding – Diluted for the third quarters of fiscal 2022 and fiscal 2021 were 18.9 million and 19.1 million, respectively.

Financial Outlook

Mr. Sintros continued, “We now expect revenues for fiscal 2022 to be between $1.993 billion and $2.0 billion. We further expect diluted earnings per share to be between $5.40 and $5.60. This earnings per share guidance assumes an effective tax rate of 24.0% and now includes a revised estimate of $32.0 million of costs directly attributable to our Key Initiatives that will be expensed in fiscal 2022. Please also note the following regarding our guidance:

  • Core Laundry Operations’ adjusted operating margin at the midpoint of the range is now 8.3%.

  • Our adjusted tax rate for fiscal 2022 is projected to be 24.4%.

  • Adjusted diluted earnings per share is now expected to be between $6.65 and $6.85.

  • Guidance does not include the impact of any future share buybacks or unexpected significantly adverse economic developments.”

See “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

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, 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 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,” 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 significant increases in inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflict between Russia and Ukraine or the COVID-19 pandemic, 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 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, or adverse impacts from increases in, 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 workers’ compensation claim costs, increased healthcare claim costs, including as a result of 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, political instability, supply chain disruption or infection among our employees in Mexico and Nicaragua where our principal garment manufacturing plants are located, including, without limitation, as a result of extraordinary events or circumstances such as the COVID-19 pandemic, our ability to properly and efficiently design, construct, implement and operate a new customer relationship management 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, New York Stock Exchange, accounting or other rules, including, without limitation, recent rules proposed by the Securities and Exchange Commission regarding climate-related and cybersecurity-related disclosures, 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 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 28, 2021, Part II, Item 1A. “Risk Factors” and elsewhere in our subsequent Quarterly Reports on Form 10-Q 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.

Investor Relations Contact
Shane O’Connor, Executive Vice President & CFO
UniFirst Corporation
978-658-8888
shane_oconnor@unifirst.com



Consolidated Statements of Income
(Unaudited)

(In thousands, except per share data)

 

Thirteen weeks
ended May 28, 2022

 

 

Thirteen weeks
ended May 29, 2021

 

 

Thirty-nine weeks
ended May 28, 2022

 

 

Thirty-nine weeks
ended May 29, 2021

 

Revenues

 

$

511,548

 

 

$

464,323

 

 

$

1,484,408

 

 

$

1,360,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (1)

 

 

334,633

 

 

 

286,605

 

 

 

969,579

 

 

 

851,860

 

Selling and administrative expenses (1)

 

 

116,191

 

 

 

96,976

 

 

 

332,985

 

 

 

279,008

 

Depreciation and amortization

 

 

27,027

 

 

 

26,583

 

 

 

80,744

 

 

 

79,178

 

Total operating expenses

 

 

477,851

 

 

 

410,164

 

 

 

1,383,308

 

 

 

1,210,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

33,697

 

 

 

54,159

 

 

 

101,100

 

 

 

150,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

(340

)

 

 

(671

)

 

 

(1,739

)

 

 

(2,102

)

Other expense, net

 

 

431

 

 

 

348

 

 

 

1,761

 

 

 

513

 

Total other (income) expense, net

 

 

91

 

 

 

(323

)

 

 

22

 

 

 

(1,589

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

33,606

 

 

 

54,482

 

 

 

101,078

 

 

 

152,483

 

Provision for income taxes

 

 

8,539

 

 

 

12,466

 

 

 

23,855

 

 

 

35,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

25,067

 

 

$

42,016

 

 

$

77,223

 

 

$

116,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share – Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

1.39

 

 

$

2.31

 

 

$

4.26

 

 

$

6.42

 

Class B Common Stock

 

$

1.11

 

 

$

1.85

 

 

$

3.41

 

 

$

5.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share – Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

1.33

 

 

$

2.21

 

 

$

4.07

 

 

$

6.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income allocated to – Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

21,037

 

 

$

35,270

 

 

$

64,835

 

 

$

97,792

 

Class B Common Stock

 

$

4,030

 

 

$

6,746

 

 

$

12,388

 

 

$

18,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income allocated to – Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

25,067

 

 

$

42,016

 

 

$

77,223

 

 

$

116,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

15,170

 

 

 

15,238

 

 

 

15,211

 

 

 

15,238

 

Class B Common Stock

 

 

3,632

 

 

 

3,643

 

 

 

3,632

 

 

 

3,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

18,875

 

 

 

19,051

 

 

 

18,958

 

 

 

19,041

 

(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)

 

May 28, 2022

 

 

August 28, 2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

410,595

 

 

$

512,868

 

Receivables, net

 

 

241,160

 

 

 

208,331

 

Inventories

 

 

151,741

 

 

 

143,591

 

Rental merchandise in service

 

 

209,055

 

 

 

181,531

 

Prepaid taxes

 

 

11,319

 

 

 

16,580

 

Prepaid expenses and other current assets

 

 

45,012

 

 

 

40,891

 

 

 

 

 

 

 

 

Total current assets

 

 

1,068,882

 

 

 

1,103,792

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

640,810

 

 

 

617,719

 

Goodwill

 

 

456,810

 

 

 

429,538

 

Customer contracts and other intangible assets, net

 

 

87,629

 

 

 

84,638

 

Deferred income taxes

 

 

535

 

 

 

580

 

Operating lease right-of-use assets, net

 

 

49,408

 

 

 

42,115

 

Other assets

 

 

106,750

 

 

 

102,683

 

 

 

 

 

 

 

 

Total assets

 

$

2,410,824

 

 

$

2,381,065

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

80,341

 

 

$

81,356

 

Accrued liabilities

 

 

152,381

 

 

 

159,578

 

Accrued taxes

 

 

 

 

 

743

 

Operating lease liabilities, current

 

 

13,999

 

 

 

12,993

 

 

 

 

 

 

 

 

Total current liabilities

 

 

246,721

 

 

 

254,670

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

Accrued liabilities

 

 

133,195

 

 

 

134,085

 

Accrued and deferred income taxes

 

 

89,888

 

 

 

89,177

 

Operating lease liabilities

 

 

37,009

 

 

 

30,181

 

 

 

 

 

 

 

 

Total liabilities

 

 

506,813

 

 

 

508,113

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Common Stock

 

 

1,512

 

 

 

1,524

 

Class B Common Stock

 

 

363

 

 

 

364

 

Capital surplus

 

 

91,571

 

 

 

89,257

 

Retained earnings

 

 

1,838,055

 

 

 

1,806,643

 

Accumulated other comprehensive loss

 

 

(27,490

)

 

 

(24,836

)

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

1,904,011

 

 

 

1,872,952

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

2,410,824

 

 

$

2,381,065

 



Detail of Operating Results
(Unaudited)

Revenues

(In thousands, except percentages)

 

Thirteen weeks ended
May 28, 2022

 

 

Thirteen weeks ended
May 29, 2021

 

 

Dollar
Change

 

 

Percent
Change

 

Core Laundry Operations

 

$

450,039

 

 

$

409,031

 

 

 

41,008

 

 

 

10.0

%

Specialty Garments

 

 

41,198

 

 

 

38,236

 

 

 

2,962

 

 

 

7.7

%

First Aid

 

 

20,311

 

 

 

17,056

 

 

 

3,255

 

 

 

19.1

%

Consolidated total

 

$

511,548

 

 

$

464,323

 

 

$

47,225

 

 

 

10.2

%


(In thousands, except percentages)

 

Thirty-nine weeks ended
May 28, 2022

 

 

Thirty-nine weeks ended
May 29, 2021

 

 

Dollar
Change

 

 

Percent
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Laundry Operations

 

$

1,311,941

 

 

$

1,200,456

 

 

$

111,485

 

 

 

9.3

%

Specialty Garments

 

 

116,220

 

 

 

111,592

 

 

 

4,628

 

 

 

4.1

%

First Aid

 

 

56,247

 

 

 

48,892

 

 

 

7,355

 

 

 

15.0

%

Consolidated total

 

$

1,484,408

 

 

$

1,360,940

 

 

$

123,468

 

 

 

9.1

%

Operating Income (Loss)

(In thousands, except percentages)

 

Thirteen weeks ended
May 28, 2022

 

 

Thirteen weeks ended
May 29, 2021

 

 

Dollar
Change

 

 

Percent
Change

 

Core Laundry Operations

 

$

26,431

 

 

$

45,634

 

 

$

(19,203

)

 

 

(42.1

)%

Specialty Garments

 

 

7,161

 

 

 

8,300

 

 

 

(1,139

)

 

 

(13.7

)%

First Aid

 

 

105

 

 

 

225

 

 

 

(120

)

 

 

(53.3

)%

Consolidated total

 

$

33,697

 

 

$

54,159

 

 

$

(20,462

)

 

 

(37.8

)%


(In thousands, except percentages)

 

Thirty-nine weeks ended
May 28, 2022

 

 

Thirty-nine weeks ended
May 29, 2021

 

 

Dollar
Change

 

 

Percent
Change

 

Core Laundry Operations

 

$

81,683

 

 

$

129,870

 

 

$

(48,187

)

 

 

(37.1

)%

Specialty Garments

 

 

19,640

 

 

 

20,693

 

 

 

(1,053

)

 

 

(5.1

)%

First Aid

 

 

(223

)

 

 

331

 

 

 

(554

)

 

 

(167.4

)%

Consolidated total

 

$

101,100

 

 

$

150,894

 

 

$

(49,794

)

 

 

(33.0

)%

Operating Margin

 

 

Thirteen weeks ended
May 28, 2022

 

 

Thirteen weeks ended
May 29, 2021

 

Core Laundry Operations

 

 

5.9

%

 

 

11.2

%

Specialty Garments

 

 

17.4

%

 

 

21.7

%

First Aid

 

 

0.5

%

 

 

1.3

%

Consolidated total

 

 

6.6

%

 

 

11.7

%


 

 

Thirty-nine weeks ended May 28, 2022

 

 

Thirty-nine weeks ended May 29, 2021

 

Core Laundry Operations

 

 

6.2

%

 

 

10.8

%

Specialty Garments

 

 

16.9

%

 

 

18.5

%

First Aid

 

 

(0.4

)%

 

 

0.7

%

Consolidated total

 

 

6.8

%

 

 

11.1

%



Consolidated Statements of Cash Flows
(Unaudited)

(In thousands)

 

Thirty-nine weeks ended
May 28, 2022

 

 

Thirty-nine weeks ended
May 29, 2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

77,223

 

 

$

116,497

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

80,744

 

 

 

79,178

 

Amortization of deferred financing costs

 

 

123

 

 

 

85

 

Share-based compensation

 

 

7,114

 

 

 

5,193

 

Accretion on environmental contingencies

 

 

447

 

 

 

336

 

Accretion on asset retirement obligations

 

 

732

 

 

 

740

 

Deferred income taxes

 

 

1,823

 

 

 

2,025

 

Other

 

 

(103

)

 

 

(199

)

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Receivables, less reserves

 

 

(31,998

)

 

 

(7,657

)

Inventories

 

 

(8,258

)

 

 

(13,871

)

Rental merchandise in service

 

 

(25,788

)

 

 

(12,169

)

Prepaid expenses and other current assets and Other assets

 

 

3,603

 

 

 

5,433

 

Accounts payable

 

 

850

 

 

 

4,019

 

Accrued liabilities

 

 

(21,172

)

 

 

11,636

 

Prepaid and accrued income taxes

 

 

3,498

 

 

 

(3,723

)

Net cash provided by operating activities

 

 

88,838

 

 

 

187,523

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

(42,680

)

 

 

(7,128

)

Capital expenditures, including capitalization of software costs

 

 

(97,259

)

 

 

(96,645

)

Proceeds from sale of assets

 

 

133

 

 

 

551

 

Net cash used in investing activities

 

 

(139,806

)

 

 

(103,222

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Payment of deferred financing costs

 

 

 

 

 

(822

)

Proceeds from exercise of share-based awards

 

 

3

 

 

 

3

 

Taxes withheld and paid related to net share settlement of equity awards

 

 

(3,898

)

 

 

(4,003

)

Repurchase of Common Stock

 

 

(30,453

)

 

 

(9,534

)

Payment of cash dividends

 

 

(15,407

)

 

 

(13,610

)

Other

 

 

(5

)

 

 

 

Net cash used in financing activities

 

 

(49,760

)

 

 

(27,966

)

 

 

 

 

 

 

 

Effect of exchange rate changes

 

 

(1,545

)

 

 

3,832

 

 

 

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and short-term investments

 

 

(102,273

)

 

 

60,167

 

Cash, cash equivalents and short-term investments at beginning of period

 

 

512,868

 

 

 

474,838

 

Cash, cash equivalents and short-term investments at end of period

 

$

410,595

 

 

$

535,005

 



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 useful measure on which to evaluate and 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. A supplemental reconciliation of the Company’s consolidated operating income, consolidated net income and diluted earnings per share (“EPS”) on a GAAP basis to adjusted operating income, adjusted net income and adjusted diluted EPS on a non-GAAP basis is presented in the following table. 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 is also presented in the following table. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided below.

 

 

Thirteen weeks ended May 28, 2022

 

 

 

Consolidated

 

 

Core Laundry Operations

 

(In thousands, except percentages)

 

Revenue

 

 

Operating
Income

 

 

Net
Income

 

 

Diluted
EPS

 

 

Revenue

 

 

Operating
Income

 

 

Operating
Margin

 

As reported

 

$

511,548

 

 

$

33,697

 

 

$

25,067

 

 

$

1.33

 

 

$

450,039

 

 

$

26,431

 

 

 

5.9

%

Key Initiatives

 

 

 

 

 

11,390

 

 

 

8,405

 

 

 

0.44

 

 

 

 

 

 

11,390

 

 

 

2.5

%

As adjusted

 

$

511,548

 

 

$

45,087

 

 

$

33,472

 

 

$

1.77

 

 

$

450,039

 

 

$

37,821

 

 

 

8.4

%


 

 

Thirty-nine weeks ended May 28, 2022

 

 

 

Consolidated

 

 

Core Laundry Operations

 

(In thousands, except percentages)

 

Revenue

 

 

Operating
Income

 

 

Net
Income

 

 

Diluted
EPS

 

 

Revenue

 

 

Operating
Income

 

 

Operating
Margin

 

As reported

 

$

1,484,408

 

 

$

101,100

 

 

$

77,223

 

 

$

4.07

 

 

$

1,311,941

 

 

$

81,683

 

 

 

6.2

%

Key Initiatives

 

 

 

 

 

24,051

 

 

 

17,948

 

 

 

0.95

 

 

 

 

 

 

24,051

 

 

 

1.9

%

As adjusted

 

$

1,484,408

 

 

$

125,151

 

 

$

95,171

 

 

$

5.02

 

 

$

1,311,941

 

 

$

105,734

 

 

 

8.1

%


Supplemental reconciliations of the Company’s fiscal 2022 financial outlook for consolidated operating income, consolidated net income, diluted earnings per share and operating margin on a GAAP basis to adjusted operating income, adjusted net income, adjusted diluted EPS and adjusted operating margin on a non-GAAP basis are presented in the following tables. In addition, a supplemental reconciliation of the fiscal 2022 financial outlook for 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 is also presented in the following table. Investors are encouraged to review the reconciliation of the outlook for these non-GAAP measures to the outlook for their most directly comparable GAAP financial measures, which are provided below. The Company’s outlook contains forward-looking statements and information. Actual results may differ materially. See “Forward-Looking Statements Disclosure.”

 

 

Fifty-two weeks ended August 27, 2022

 

 

 

Consolidated

 

 

Core Laundry Operations

 

(In thousands, except percentages and per share amounts)

 

Guidance - at
the midpoint

 

 

Key
Initiative
Costs

 

 

Adjusted

 

 

Guidance - at
the midpoint

 

 

Key
Initiative
Costs

 

 

Adjusted

 

Revenues

 

$

1,996,500

 

 

$

 

 

$

1,996,500

 

 

$

1,769,500

 

 

$

 

 

$

1,769,500

 

Operating income

 

 

136,950

 

 

 

32,000

 

 

 

168,950

 

 

$

114,000

 

 

$

32,000

 

 

$

146,000

 

Operating margin

 

 

6.9

%

 

 

1.6

%

 

 

8.5

%

 

 

6.4

%

 

 

1.9

%

 

 

8.3

%

Income before income taxes

 

 

137,100

 

 

 

32,000

 

 

 

169,100

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

32,904

 

 

 

8,320

 

 

 

41,224

 

 

 

 

 

 

 

 

 

 

Net income

 

$

104,196

 

 

$

23,680

 

 

$

127,876

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

24.0

%

 

 

26.0

%

 

 

24.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

Projected

 

 

Key
Initiative
Costs

 

 

Adjusted

 

 

 

 

 

 

 

 

 

 

Low

 

$

5.40

 

 

$

1.25

 

 

$

6.65

 

 

 

 

 

 

 

 

 

 

High

 

$

5.60

 

 

$

1.25

 

 

$

6.85

 

 

 

 

 

 

 

 

 

 


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