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Dec 29, 2023
Vestis Q1 2024 Earnings Report
Vestis reported Q1 2024 results, demonstrating revenue growth and margin expansion while absorbing public company costs.
Key Takeaways
Vestis reported a 2.5% increase in revenue to $718 million for Q1 2024. Operating income was $48 million, and adjusted EBITDA reached $98 million. The company reaffirmed its fiscal year 2024 outlook, expecting revenue growth of 4.0 to 4.5% and an adjusted EBITDA margin of approximately 14.3%.
Revenue increased by 2.5% year-over-year to $718 million.
Operating income was $48 million, representing 6.6% of revenue.
Adjusted EBITDA reached $98 million, or 13.7% of revenue.
Diluted EPS was $0.09, with adjusted diluted EPS at $0.22.
Vestis
Vestis
Forward Guidance
The Company continues to expect to deliver revenue growth in the range of 4.0 to 4.5% and adjusted EBITDA margin to be approximately 14.3%.
Positive Outlook
- Expects revenue growth in the range of 4.0 to 4.5%.
- Adjusted EBITDA margin expected to be approximately 14.3%.
- Margin expansion offsetting approximately $15 to $18 million in incremental public company costs.
- Disciplined capital allocation with deleveraging as a priority.
- Free cash flow conversion of net income to be at least 100%.
Challenges Ahead
- Approximately $15 to $18 million in incremental public company costs in the period.