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May 27, 2023
UniFirst Q3 2023 Earnings Report
UniFirst reported financial results for the third quarter of fiscal 2023.
Key Takeaways
UniFirst Corporation reported a 12.7% increase in consolidated revenues, reaching $576.7 million. However, operating income saw a slight decrease of 0.9% to $33.4 million, and net income decreased by 3.2% to $24.3 million. Diluted earnings per share also decreased by 3.0% to $1.29.
Consolidated revenues increased 12.7% to $576.7 million.
Operating income decreased 0.9% to $33.4 million.
Net income decreased 3.2% to $24.3 million.
Diluted earnings per share decreased 3.0% to $1.29.
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 $2.220 billion and $2.230 billion, and diluted earnings per share to be between $5.02 and $5.37.
Positive Outlook
- Strong top-line performance in the Specialty Garments’ business.
- Improved expectations for the remainder of the year in Specialty Garments.
- Core Laundry Operations’ operating margin at the midpoint of the range of 4.7%.
- Core Laundry Operations’ EBITDA margin at the midpoint of the range of 10.5%.
- Effective tax rate of 25.75%.
Challenges Ahead
- Approximately $37.0 million of costs directly attributable to Key Initiatives.
- Approximately $3.0 million of Clean acquisition-related expenses.
- Combined decrease to the Core Laundry Operations' operating and EBITDA margin assumptions by 2.1%.
- Combined decrease to EPS by $1.60.
- No impact from any future share buybacks or unexpected significantly adverse economic developments.