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May 25, 2024
UniFirst Q3 2024 Earnings Report
UniFirst reported solid growth in revenues, EBITDA and cash flows from operating activities.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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