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Aug 27, 2022
UniFirst Q4 2022 Earnings Report
UniFirst reported an 11.0% increase in consolidated revenues for the fourth quarter, reaching $516.4 million.
Key Takeaways
UniFirst Corporation reported its Q4 and full year results for fiscal year 2022. The company's consolidated revenues for the fourth quarter increased by 11.0% to $516.4 million. Full year consolidated revenues reached $2.001 billion, a 9.6% increase. Diluted earnings per share for the quarter decreased to $1.39 from $1.82 in the prior year.
Consolidated revenues for the fourth quarter increased 11.0% to $516.4 million.
Operating income was $33.3 million, a decrease of 26.0%.
Net income decreased to $26.2 million, or 24.4%.
Diluted earnings per share decreased to $1.39 from $1.82 in the prior year, or 23.6%.
UniFirst
UniFirst
UniFirst Revenue by Segment
Revenue by Segment
Core Laundry Revenue
CapyFin.comSpecialty Garments Revenue
CapyFin.comFirst Aid Revenue
CapyFin.com Forward Guidance
For fiscal 2023, UniFirst expects revenues between $2.145 billion and $2.160 billion and fully diluted earnings per share between $5.50 and $5.90. This guidance includes $40.0 million of transitionary investment costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2023.
Positive Outlook
- Core Laundry Operations’ revenue growth at the midpoint of the range is expected to be 7.7%.
- Organic growth, which excludes the estimated effect of acquisitions and fluctuations in the Canadian dollar, is expected to be 8.3%.
- Core Laundry Operations’ adjusted operating margin, excluding Key Initiative costs, at the midpoint of the range is 8.1%.
- Both our GAAP and adjusted tax rates for fiscal 2023 are projected to be 25.0%.
- Adjusted diluted earnings per share is expected to be between $7.10 and $7.50.
Challenges Ahead
- Guidance does not include the impact of any future share buybacks or unexpected significantly adverse economic developments.
- Our adjusted operating margin reflects continued pressure from the current inflationary environment, including high energy costs as well as higher levels of merchandise amortization.
- The company anticipates $40.0 million of transitionary investment costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2023.
- Projected Key Initiative Costs for diluted earnings per share is $1.60.
- Effective tax rate is projected at 25.0%.