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Aug 26, 2023

UniFirst Q4 2023 Earnings Report

UniFirst reported Q4 2023 financial results, with revenue and EPS increases.

Key Takeaways

UniFirst Corporation reported a 10.7% increase in consolidated revenues for the fourth quarter, reaching $571.9 million. Diluted earnings per share increased to $1.47, and net income increased to $27.6 million.

Consolidated revenues for the fourth quarter increased 10.7% to $571.9 million.

Operating income increased by 8.5% to $36.1 million.

Diluted earnings per share increased to $1.47 from $1.39 in the prior year, a 5.8% increase.

Core Laundry Operations revenues increased 10.1% to $505.0 million.

Total Revenue
$572M
Previous year: $516M
+10.7%
EPS
$1.75
Previous year: $1.79
-2.2%
Core Laundry Organic Growth
5.3%
Previous year: 9.9%
-46.5%

UniFirst

UniFirst

UniFirst Revenue by Segment

Forward Guidance

For fiscal 2024, UniFirst expects revenues between $2.415 billion and $2.435 billion, and fully diluted earnings per share between $6.52 and $7.16.

Positive Outlook

  • Revenue is expected to be between $2.415 billion and $2.435 billion.
  • Fully diluted earnings per share are expected to be between $6.52 and $7.16.
  • Net income, at the midpoint of the range, is expected to increase to $128.6 million, or 24.0%.
  • Consolidated EBITDA, at the midpoint of the range, is expected to increase to $307.8 million, or 21.5%.
  • Core Laundry Operations’ revenue growth, at the midpoint of the range, is expected to be 9.4%, and organic growth is expected to be 4.8%.

Challenges Ahead

  • Guidance includes $16.0 million of costs directly attributable to Key Initiatives.
  • The Key Initiatives are expected to decrease operating and EBITDA margins by 0.7%.
  • The Key Initiatives are expected to decrease EPS by $0.64.
  • Guidance does not include the impact of any future share buybacks.
  • Guidance does not include unexpected events affecting the economy generally.