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Jun 28, 2024
Vestis Q3 2024 Earnings Report
Reported a decrease in revenue and operating income, with strategic actions taken to improve performance.
Key Takeaways
Vestis reported a slight decrease in revenue and a significant decrease in net income for Q3 2024. The company is focused on deleveraging and has entered into a $250 million accounts receivable securitization facility to repay debt.
Revenue decreased by 1.6% year-over-year to $698 million.
Operating income decreased by 43.4% year-over-year to $38 million.
Net income decreased by 89.9% year-over-year to $5 million.
Entered into a $250 million accounts receivable securitization facility to reduce net debt.
Vestis
Vestis
Forward Guidance
Vestis expects to deliver fiscal year 2024 revenue growth in the range of (1)% to 0% and Adjusted EBITDA Margin to be toward the higher end of the range between 12.0% and 12.4%.
Positive Outlook
- Expects fiscal 2024 revenue growth in the range of (1)% to 0%.
- Expects fiscal 2024 Adjusted EBITDA Margin to be toward the higher end of the range between 12.0% and 12.4%.
- Disciplined capital allocation with deleveraging as a priority.
- Expects strong free cash flow conversion.
- Anticipate a ratio of free cash flow to net income greater than or equal to 100%.
Challenges Ahead
- Revenue growth is expected to be slightly negative.
- Adjusted EBITDA Margin includes approximately $18 million in incremental public company costs.
- Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.
- Estimates of revenue growth and adjusted EBITDA margin do not forecast currency fluctuations.
- The company's performance is subject to various risks and uncertainties.