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UniFirst
🇺🇸 NYSE:UNF
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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%.

Total Revenue
$516M
Previous year: $465M
+11.0%
EPS
$1.79
Previous year: $1.82
-1.6%
Core Laundry Organic Growth
9.9%
Cash and Equivalents
$376M
Previous year: $513M
-26.6%
Total Assets
$2.43B
Previous year: $2.38B
+2.0%

UniFirst

UniFirst

UniFirst Revenue by Segment

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%.

Company Overview

Full financial data and analysis

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