UniFirst Q3 2024 Earnings Report
Key Takeaways
UniFirst Corporation announced its financial results for the third quarter of fiscal 2024, showing a 4.6% increase in consolidated revenues to $603.3 million and a 45.1% increase in operating income to $48.5 million. Net income increased to $38.1 million, with diluted earnings per share rising to $2.03.
Consolidated revenues increased by 4.6% to $603.3 million.
Operating income increased by 45.1% to $48.5 million.
Net income increased to $38.1 million from $24.3 million in the prior year, a 56.8% increase.
Diluted earnings per share increased to $2.03 from $1.29 in the prior year, a 57.4% increase.
UniFirst
UniFirst
UniFirst Revenue by Segment
Forward Guidance
The company expects revenues for fiscal year 2024 to be between $2.415 billion and $2.425 billion, with fully diluted earnings per share expected to be between $7.17 and $7.49.
Positive Outlook
- Core Laundry Operations’ organic growth at the midpoint of the range of 4.5%.
- Core Laundry Operations’ operating margins at the midpoint of the range of 6.6%.
- Core Laundry Operations’ EBITDA margins at the midpoint of the range of 12.7%.
- An estimate of $12.0 million of costs directly attributable to our Key Initiatives that will be expensed in fiscal 2024.
- An effective tax rate of 24.5%.
Challenges Ahead
- Costs related to key initiatives will decrease both the Core Laundry Operations’ operating and EBITDA margins by 0.6%.
- No impact from any future share buybacks.
- No unexpected significantly adverse economic developments.
- Uncertainties caused by an economic recession or other adverse economic conditions
- Disruptions of our business and operations
Revenue & Expenses
Visualization of income flow from segment revenue to net income