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Feb 25, 2023
UniFirst Q2 2023 Earnings Report
UniFirst reported financial results for the second quarter of fiscal 2023, showing revenue increase but operating and net income decrease.
Key Takeaways
UniFirst Corporation announced an 11.5% increase in consolidated revenues, reaching $542.7 million. However, operating income decreased by 8.4% to $20.7 million, and net income fell to $17.8 million. Diluted earnings per share also decreased to $0.95. The company's results were impacted by costs related to key initiatives and the acquisition of Clean Uniform.
Consolidated revenues increased by 11.5% to $542.7 million.
Operating income decreased by 8.4% to $20.7 million.
Net income decreased by 3.5% to $17.8 million.
Diluted earnings per share decreased by 2.1% to $0.95.
UniFirst
UniFirst
UniFirst Revenue by Segment
Revenue by Segment
Core Laundry Revenue
CapyFin.comSpecialty Garments Revenue
CapyFin.comFirst Aid Revenue
CapyFin.com Forward Guidance
The Company now expects its revenues for fiscal 2023 to be between $2.210 billion and $2.220 billion. We further expect diluted earnings per share to be between $5.02 and $5.37.
Positive Outlook
- Revenue expected to be between $2.210 billion and $2.220 billion.
- Diluted earnings per share expected to be between $5.02 and $5.37.
- Includes the estimated impact of the Clean acquisition.
- Assumes Core Laundry Operations’ operating margin at the midpoint of the range of 5.2%.
- Assumes an effective tax rate of 25.0%.
Challenges Ahead
- Includes an estimate of $40.0 million of costs directly attributable to our Key Initiatives as well as the $4.0 million of Clean acquisition-related expenses.
- These items combined to decrease the Core Laundry Operations' operating margin assumption by 2.2% and EPS by $1.76.
- Assumes no impact from any future share buybacks.
- Assumes no unexpected significantly adverse economic developments.
- Acquisition-related expenses of $4.0 million, which includes the $2.0 million expensed in the second quarter of fiscal 2023.