Loading...
•
Feb 29, 2020
UniFirst Q2 2020 Earnings Report
UniFirst's financial performance in Q2 2020 showed revenue growth but a decrease in operating income due to higher costs, though adjusted figures showed improvements when excluding a prior-year settlement gain.
Key Takeaways
UniFirst Corporation reported a 6.2% increase in consolidated revenues for the second quarter of fiscal 2020, reaching $464.6 million. However, operating income decreased by 29.3% to $44.1 million, and net income decreased to $34.7 million. Excluding the effect of a prior-year CRM settlement, operating income, net income, and diluted earnings per share increased.
Consolidated revenues increased by 6.2% to $464.6 million.
Operating income decreased by 29.3% to $44.1 million, but increased by 6.8% excluding a prior-year CRM settlement.
Net income decreased to $34.7 million, but increased by 8.2% from prior year’s adjusted net income.
Diluted earnings per share decreased to $1.82, but increased 9.0% from prior year’s adjusted amount.
UniFirst
UniFirst
UniFirst Revenue by Segment
Revenue by Segment
Core Laundry Revenue
CapyFin.comSpecialty Garments Revenue
CapyFin.comFirst Aid Revenue
CapyFin.com Forward Guidance
Due to the evolving pandemic, the company is not providing guidance for the remainder of fiscal 2020, expecting a negative impact on revenues and profitability.
Challenges Ahead
- The company's ability to assess the financial impact on our business remains limited due to the evolving pandemic.
- The company expects the disruption related to this pandemic will clearly have a negative impact on our revenues and profitability.
- The company also expects 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.
- Sharp decline in oil prices will further challenge our performance.
- Decline in the Canadian exchange rate will further challenge our performance.