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Investor Relations Contact

Shane O’Connor, Executive Vice President & CFO

UniFirst Corporation

978-658-8888

shane_oconnor@unifirst.com

 

 

 

UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL FISCAL YEAR OF FISCAL 2025

Wilmington, MA – October 22, 2025 – UniFirst Corporation (NYSE: UNF) (the “Company,” “UniFirst” or “we”) today reported results for its fourth quarter and full year ended August 30, 2025, as compared to the corresponding periods in the prior fiscal year. The fourth quarter and full year in fiscal 2024 included an extra week of operations as compared to fiscal 2025.

Q4 2025 Financial Highlights

Consolidated revenues for the fourth quarter were $614.4 million compared to $639.9 million in the prior year.
Excluding the impact of the extra week of operations in fiscal 2024, consolidated revenues increased 3.4%.
Operating margin was 8.1% of revenues compared to 8.4% of revenues in the prior year.
The quarterly tax rate was 20.2% compared to 21.8% in the prior year.
Net income was $41.0 million compared to $44.6 million in the prior year
Diluted earnings per share decreased to $2.23 from $2.39 in the prior year.
Adjusted EBITDA margin was 14.3% of revenues compared to 14.9% of revenues in the prior year.

The Company’s financial results for the fourth quarters of fiscal 2025 and 2024 included approximately $1.4 million and $1.8 million, respectively, of costs directly attributable to its customer relationship management (“CRM”) computer system and enterprise resource planning (“ERP”) projects. The Company refers to the CRM and ERP projects together as its “Key Initiatives”. The effect of these items on the fourth quarter of fiscal 2025 and 2024 combined to decrease:

Operating income and Adjusted EBITDA by $1.4 million and $1.8 million, respectively.
Net income by $1.1 million and $1.3 million, respectively.
Diluted earnings per share by $0.05 and $0.07, respectively.

Fiscal 2025 Financial Highlights

Full year consolidated revenues were $2.432 billion, an increase of 0.2%.
Excluding the impact of the extra week of operations in fiscal 2024, full year revenues increased 2.1%.
Full year operating income was $184.5 million, an increase of 0.5%.
Net income for the year increased to $148.3 million from $145.5 million in the prior year.
Diluted earnings per share increased to $7.98 from $7.77 in the prior year.
Adjusted EBITDA margin was 13.8% of revenues as compared to 13.7% of revenues in the prior year.

The Company’s financial results for the full years of fiscal 2025 and 2024 included $6.8 million and $11.8 million, respectively, of costs directly attributable to its Key Initiatives. The effect of these items on the full years of fiscal 2025 and 2024 combined to decrease:

Operating income and Adjusted EBITDA by $6.8 million and $11.8 million, respectively.
Net income by $5.1 million and $9.0 million, respectively.
Diluted earnings per share by $0.28 and $0.48, respectively.

 

Steven Sintros, UniFirst President and Chief Executive Officer, said, “We closed the year with a solid fourth quarter. I am proud of the Company’s accomplishments during fiscal 2025 as we execute our strategic plan to drive long-term growth through investments in our people, technology and operational execution. I want to sincerely thank all of our Team Partners who continue to Always Deliver for each other and our customers as we strive towards our vision of being universally recognized as the best service provider in the industry. …all while living our mission of Serving the People Who do the Hard Work.

 

 


 

 

Changes to Operating and Reportable Segments

Beginning with the fourth quarter of 2025, we are reporting results under three operating and reportable segments. This shift in reportable segments reflects how our leadership oversees and manages the business. Our three operating and reportable segments consist of the following:

 

Uniform & Facility Service Solutions

First Aid & Safety Solutions

Other

To assist investors, we have provided certain recast unaudited historical financial and operational data that is on a basis consistent with our revised segment structure. This data can be found both in our Form 8-K filed on October 17, 2025 and on our Investor Relations webpage under "News Releases." These changes only affect segment allocation of results and do not revise or restate our previously reported consolidated financial statements.

Q4 2025 Segment Financial Highlights

 

Uniform & Facility Service Solutions

 

 

Revenues for the quarter were $560.1 million compared to $586.0 million in the prior year.
Organic growth, which excludes the effect of acquisitions, fluctuations in the Canadian dollar and the impact of the extra week of operations in fiscal 2024, was 2.9%. The Uniform & Facility Service Solutions' organic growth rate was primarily the result of solid new account sales and improved customer retention.
Operating margin was 8.3% compared to 8.7% in the prior year.
Adjusted EBITDA margin was 14.8% compared to 15.3% in the prior year.

 

The costs we incurred related to the Key Initiatives were recorded to the Uniform & Facility Service Solutions’ segment, and decreased both the Uniform & Facility Service Solutions’ operating and Adjusted EBITDA margins for the fourth quarters of fiscal 2025 and 2024 by 0.2% and 0.3%, respectively.

The segment’s operating and Adjusted EBITDA margins in the fourth quarter of fiscal 2025 were down slightly from the fourth quarter of fiscal 2024, which benefited from the extra week of operations. In addition, the quarterly results reflect additional investments in accelerating growth, improving customer retention and our digital transformation.

 

First Aid & Safety Solutions

 

 

Revenues for the quarter were $31.1 million compared to $29.3 million in the prior year.
Organic growth was 12.4%, driven by strong growth in our First Aid van business.
Operating income and Adjusted EBITDA were $0.5 million and $1.5 million, respectively.

 

The segment’s results continue to reflect the investments we are making in our First Aid van business.

Balance Sheet and Capital Allocation

 

Cash, cash equivalents and Short-term investments totaled $209.2 million as of August 30, 2025.
Cash flow from operating activities increased to $296.9 million in fiscal 2025, or 0.5%.
The Company had no long-term debt outstanding as of August 30, 2025.
The Company paid dividends to shareholders of $24.6 million in fiscal 2025, an increase of 5.5% from the prior year.
During fiscal 2025, the Company repurchased 402,415 shares of Common Stock for approximately $70.9 million. As of August 30, 2025, the Company had $40.6 million remaining under its existing share repurchase authorization.

 


 

 

 

Financial Outlook

 

Mr. Sintros continued, “For fiscal 2026, we expect our revenues to be between $2.475 billion and $2.495 billion and fully diluted earnings per share to be between $6.58 and $6.98. This guidance includes an estimated $7.0 million of costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2026. Please note the following regarding our guidance:

 

Net income, at the midpoint of the range, is expected to be $124.1 million.
Consolidated Operating Income, at the midpoint of the range, is expected to be $158.8 million.
Consolidated Adjusted EBITDA, at the midpoint of the range, is expected to be $319.7 million.
Net income, Operating Income and Diluted earnings per share are anticipated to be impacted by higher depreciation and amortization assumptions, largely due to the projected deployment of our ongoing Oracle ERP initiative. In addition, fiscal 2026 is expected to have higher stock-based compensation expense. As a reminder, these non-cash items are excluded from Adjusted EBITDA.
Uniform & Facility Service Solutions’ organic revenue growth, at the midpoint of the range, is expected to be 2.6%.
Uniform & Facility Service Solutions’ operating and Adjusted EBITDA margins, at the midpoint of the range, are expected to be 6.6% and 13.3%, respectively.
Overall results are anticipated to be impacted by lower expected revenue and profitability out of our nuclear services business.
The effective tax rate is assumed to be 26.0%.
Guidance does not include the impact of any future share buybacks or unexpected events affecting the economy generally.

 

Conference Call Information

UniFirst Corporation will hold a conference call today at 9:00 a.m. (ET) to discuss its quarterly and full year financial results, business highlights and outlook. A simultaneous live webcast of the call will be available over the Internet and can be accessed at www.unifirst.com.

About UniFirst Corporation

Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the Company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its five company-owned ISO-9001-certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For more information, contact UniFirst at 888.296.2740 or visit UniFirst.com.

Forward-Looking Statements Disclosure

This public announcement contains forward-looking statements within the meaning of the federal securities laws that reflect the Company’s current views with respect to future events and financial performance, including projected revenues, operating margin and earnings per share. Forward-looking statements contained in this public announcement are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and may be identified by words such as “guidance,” “outlook,” “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” “strategy,” “objective,” “assume,” “strive,” “design,” “assumption,” “vision,” “approximate,” or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based upon our current expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements. Such factors include, but are not limited to, uncertainties caused by an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflict between Russia and Ukraine and disruption in the Middle East and their impact on our customers’ businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances, uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses, and the performance of such businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome of

 


 

 

pending or future contingencies or claims, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the conflict between Russia and Ukraine, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of natural gas, electricity, fuel and labor or increases in such costs, the negative effect on our business from sharply depressed oil and natural gas prices, the continuing increase in domestic healthcare costs, increased workers’ compensation claim costs, increased healthcare claim costs, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our nuclear business, political or other instability, supply chain disruption or infection among our employees in Mexico and Nicaragua where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate a enterprise resource planning computer system, interruptions or failures of our information technology systems, including as a result of cyber-attacks, additional professional and internal costs necessary for compliance with any changes in or additional Securities and Exchange Commission (the “SEC”), New York Stock Exchange and accounting or other rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, the impact of foreign trade policies and tariffs or other impositions on imported goods on our business, results of operations and financial condition, our ability to successfully implement our business strategies and processes, including our capital allocation strategies, our ability to successfully remediate the material weaknesses in internal control over financial reporting disclosed in our Annual Report on Form 10-K for the year ended August 31, 2024 and the other factors described under Part I, Item 1A. “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended August 31, 2024, Part II, Item 1A. “Risk Factors” and elsewhere in our subsequent Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made.

 


 

 

Consolidated Statements of Income

(Unaudited)

 

(In thousands, except per share data)

 

Thirteen
weeks ended
August 30, 2025

 

 

Fourteen
weeks ended
August 31, 2024

 

 

Fifty-two
 weeks ended
August 30, 2025

 

 

Fifty-three
 weeks ended
August 31, 2024

 

Revenues

 

$

614,447

 

 

$

639,867

 

 

$

2,432,352

 

 

$

2,427,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (1)

 

 

382,012

 

 

 

408,604

 

 

 

1,542,400

 

 

 

1,579,835

 

Selling and administrative expenses (1)

 

 

146,980

 

 

 

139,236

 

 

 

565,099

 

 

 

522,586

 

Depreciation and amortization

 

 

35,879

 

 

 

37,979

 

 

 

140,355

 

 

 

141,432

 

Total operating expenses

 

 

564,871

 

 

 

585,819

 

 

 

2,247,854

 

 

 

2,243,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

49,576

 

 

 

54,048

 

 

 

184,498

 

 

 

183,578

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

(2,348

)

 

 

(2,652

)

 

 

(9,770

)

 

 

(7,242

)

Other expense (income), net

 

 

513

 

 

 

(372

)

 

 

(1,107

)

 

 

1,441

 

Total other income, net

 

 

(1,835

)

 

 

(3,024

)

 

 

(10,877

)

 

 

(5,801

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

51,411

 

 

 

57,072

 

 

 

195,375

 

 

 

189,379

 

Provision for income taxes

 

 

10,384

 

 

 

12,437

 

 

 

47,104

 

 

 

43,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

41,027

 

 

$

44,635

 

 

$

148,271

 

 

$

145,474

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share – Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

2.32

 

 

$

2.50

 

 

$

8.33

 

 

$

8.11

 

Class B Common Stock

 

$

1.86

 

 

$

2.00

 

 

$

6.66

 

 

$

6.49

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share – Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

2.23

 

 

$

2.39

 

 

$

7.98

 

 

$

7.77

 

 

 

 

 

 

 

 

 

 

 

 

 

Income allocated to – Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

34,420

 

 

$

37,472

 

 

$

124,551

 

 

$

122,188

 

Class B Common Stock

 

$

6,607

 

 

$

7,163

 

 

$

23,720

 

 

$

23,286

 

 

 

 

 

 

 

 

 

 

 

 

 

Income allocated to – Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

41,027

 

 

$

44,635

 

 

$

148,271

 

 

$

145,474

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

14,823

 

 

 

15,018

 

 

 

14,961

 

 

 

15,073

 

Class B Common Stock

 

 

3,552

 

 

 

3,590

 

 

 

3,560

 

 

 

3,590

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

18,438

 

 

 

18,683

 

 

 

18,581

 

 

 

18,724

 

 

(1)
Exclusive of depreciation on the Company’s property, plant and equipment and amortization on its intangible assets.

 


 

 

Condensed Consolidated Balance Sheets

(Unaudited)

 

(In thousands)

 

August 30,
2025

 

 

August 31,
2024

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

203,501

 

 

$

161,571

 

Short-term investments

 

 

5,672

 

 

 

13,505

 

Receivables, net

 

 

285,297

 

 

 

278,851

 

Inventories

 

 

145,197

 

 

 

156,908

 

Rental merchandise in service

 

 

227,720

 

 

 

237,969

 

Prepaid taxes

 

 

7,708

 

 

 

14,893

 

Prepaid expenses and other current assets

 

 

49,508

 

 

 

51,979

 

Total current assets

 

 

924,603

 

 

 

915,676

 

Property, plant and equipment, net

 

 

829,622

 

 

 

801,612

 

Goodwill

 

 

657,748

 

 

 

648,850

 

Customer contracts and other intangible assets, net

 

 

105,829

 

 

 

119,999

 

Deferred income taxes

 

 

977

 

 

 

833

 

Operating lease right-of-use assets, net

 

 

70,110

 

 

 

66,682

 

Other assets

 

 

189,266

 

 

 

142,761

 

Total assets

 

$

2,778,155

 

 

$

2,696,413

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

94,980

 

 

$

92,509

 

Accrued liabilities

 

 

176,903

 

 

 

170,240

 

Accrued taxes

 

 

674

 

 

 

447

 

Operating lease liabilities, current

 

 

17,846

 

 

 

18,241

 

Total current liabilities

 

 

290,403

 

 

 

281,437

 

Long-term liabilities:

 

 

 

 

 

 

Accrued liabilities

 

 

128,554

 

 

 

123,401

 

Accrued and deferred income taxes

 

 

135,648

 

 

 

132,496

 

Operating lease liabilities

 

 

54,593

 

 

 

50,568

 

Total long-term liabilities

 

 

318,795

 

 

 

306,465

 

Shareholders’ equity:

 

 

 

 

 

 

Common Stock

 

 

1,468

 

 

 

1,500

 

Class B Common Stock

 

 

355

 

 

 

359

 

Capital surplus

 

 

109,107

 

 

 

104,791

 

Retained earnings

 

 

2,079,812

 

 

 

2,025,505

 

Accumulated other comprehensive loss

 

 

(21,785

)

 

 

(23,644

)

Total shareholders’ equity

 

 

2,168,957

 

 

 

2,108,511

 

 Total liabilities and shareholders’ equity

 

$

2,778,155

 

 

$

2,696,413

 

 

 

 


 

 

Detail of Operating Results

(Unaudited)

 

 

 

Thirteen
weeks ended
August 30, 2025

 

 

Fourteen
weeks ended
August 31, 2024

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Total

 

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Total

 

Revenues

 

$

560,072

 

 

$

31,123

 

 

$

23,252

 

 

$

614,447

 

 

$

586,022

 

 

$

29,283

 

 

$

24,562

 

 

$

639,867

 

Revenue Growth %

 

 

-4.4

%

 

 

6.3

%

 

 

-5.3

%

 

 

-4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss) (1), (2)

 

$

46,567

 

 

$

473

 

 

$

2,536

 

 

$

49,576

 

 

$

50,834

 

 

$

95

 

 

$

3,119

 

 

$

54,048

 

Operating Margin

 

 

8.3

%

 

 

1.5

%

 

 

10.9

%

 

 

8.1

%

 

 

8.7

%

 

 

0.3

%

 

 

12.7

%

 

 

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1), (2)

 

$

83,098

 

 

$

1,511

 

 

$

3,457

 

 

$

88,066

 

 

$

89,893

 

 

$

1,035

 

 

$

4,099

 

 

$

95,027

 

Adjusted EBITDA Margin

 

 

14.8

%

 

 

4.9

%

 

 

14.9

%

 

 

14.3

%

 

 

15.3

%

 

 

3.5

%

 

 

16.7

%

 

 

14.9

%

 

(1)
The Company’s financial results for the fourth quarters of fiscal 2025 and 2024 included approximately $1.4 million and $1.8 million, respectively, of costs directly attributable to its Key Initiatives.
(2)
The Key Initiatives' costs decreased both Uniform & Facility Service Solutions' operating and Adjusted EBITDA margins for the fourth quarters of fiscal 2025 and 2024 by 0.2% and 0.3%, respectively.

 

 

 

 

Fifty-two
 weeks ended
August 30, 2025

 

 

Fifty-three
 weeks ended
August 31, 2024

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Total

 

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Total

 

Revenues

 

$

2,218,562

 

 

$

114,586

 

 

$

99,204

 

 

$

2,432,352

 

 

$

2,224,030

 

 

$

106,271

 

 

$

97,130

 

 

$

2,427,431

 

Revenue Growth %

 

 

-0.2

%

 

 

7.8

%

 

 

2.1

%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss) (3), (4)

 

$

168,502

 

 

$

853

 

 

$

15,143

 

 

$

184,498

 

 

$

169,027

 

 

$

(1,832

)

 

$

16,383

 

 

$

183,578

 

Operating Margin

 

 

7.6

%

 

 

0.7

%

 

 

15.3

%

 

 

7.6

%

 

 

7.6

%

 

 

-1.7

%

 

 

16.9

%

 

 

7.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (3), (4)

 

$

313,198

 

 

$

4,784

 

 

$

18,788

 

 

$

336,770

 

 

$

311,610

 

 

$

1,710

 

 

$

20,022

 

 

$

333,342

 

Adjusted EBITDA Margin

 

 

14.1

%

 

 

4.2

%

 

 

18.9

%

 

 

13.8

%

 

 

14.0

%

 

 

1.6

%

 

 

20.6

%

 

 

13.7

%

 

(3)
The Company's financial results for the full years of fiscal 2025 and 2024 included approximately $6.8 million and $11.8 million, respectively, of costs directly attributable to its Key Initiatives.
(4)
The Key Initiatives' costs decreased both Uniform & Facility Service Solutions' operating and Adjusted EBITDA margins for the full years of fiscal 2025 and 2024 by 0.3% and 0.5%, respectively.

 


 

 

Consolidated Statements of Cash Flows

(Unaudited)

 

(In thousands)

 

Fifty-two
 weeks ended
August 30, 2025

 

 

Fifty-three
 weeks ended
August 31, 2024

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

148,271

 

 

$

145,474

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization (1)

 

 

140,355

 

 

 

141,432

 

Share-based compensation

 

 

12,173

 

 

 

9,773

 

Accretion on environmental contingencies

 

 

1,280

 

 

 

1,264

 

Accretion on asset retirement obligations

 

 

875

 

 

 

976

 

Deferred income taxes

 

 

3,897

 

 

 

5,231

 

(Gain) loss on sale of property and equipment

 

 

(2,117

)

 

 

561

 

Other

 

 

448

 

 

 

466

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Receivables, less reserves

 

 

(6,478

)

 

 

511

 

Inventories

 

 

12,318

 

 

 

(8,458

)

Rental merchandise in service

 

 

10,039

 

 

 

10,548

 

Prepaid expenses and other current assets and Other assets

 

 

(24,330

)

 

 

(12,582

)

Accounts payable

 

 

2,333

 

 

 

(4,069

)

Accrued liabilities

 

 

(8,774

)

 

 

(3,021

)

Prepaid and accrued income taxes

 

 

6,582

 

 

 

7,163

 

Net cash provided by operating activities

 

 

296,872

 

 

 

295,269

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

(11,911

)

 

 

(203

)

Capital expenditures, including capitalization of software costs

 

 

(154,345

)

 

 

(160,417

)

Purchases of investments

 

 

(20,406

)

 

 

(24,581

)

Maturities of investments

 

 

28,356

 

 

 

21,679

 

Proceeds from sale of assets

 

 

3,259

 

 

 

1,286

 

Net cash used in investing activities

 

 

(155,047

)

 

 

(162,236

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Payment of deferred financing costs

 

 

(1,164

)

 

 

 

Proceeds from exercise of share-based awards

 

 

4

 

 

 

4

 

Taxes withheld and paid related to net share settlement of equity awards

 

 

(4,473

)

 

 

(3,239

)

Repurchase of Common Stock

 

 

(70,895

)

 

 

(23,780

)

Payment of cash dividends

 

 

(24,625

)

 

 

(23,345

)

Net cash used in financing activities

 

 

(101,153

)

 

 

(50,360

)

 

 

 

 

 

 

 

Effect of exchange rate changes

 

 

1,258

 

 

 

(545

)

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

41,930

 

 

 

82,128

 

Cash and cash equivalents at beginning of period

 

 

161,571

 

 

 

79,443

 

Cash and cash equivalents at end of period

 

$

203,501

 

 

$

161,571

 

 

(1)
Depreciation and amortization for the full year of fiscal 2025 and 2024 included approximately $17.0 million and $18.8 million, respectively, of non-cash amortization expense recognized on acquisition-related intangible assets.

 

 

 


 

 

Reconciliation of GAAP to Non-GAAP Financial Measures

The Company reports its consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). To supplement the Company’s consolidated financial results in this press release, the Company also presents Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. The Company defines Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, further adjusted for share-based compensation expense and other items impacting the comparability of the Company’s underlying operating performance between periods. Adjusted EBITDA margin is defined as Adjusted EBITDA for a period divided by revenue for the same period.

The Company believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the Company and its segments to both management and investors. In addition, by excluding certain items, these non-GAAP financial measures enable management and investors to further evaluate the underlying operating performance of the Company.

Supplemental reconciliations of the Company’s consolidated net income on a GAAP basis to Adjusted EBITDA and Adjusted EBITDA margin, are presented in the following table. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures, which are provided below. Adjusted EBITDA and Adjusted EBITDA margin should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

The Company does not allocate its provision for income taxes to its business segments and as a result, presents it in a separate column in the following tables:

 

 

Thirteen
weeks ended
August 30, 2025

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Unallocated Adjustments

 

 

Total

 

Revenue

 

$

560,072

 

 

$

31,123

 

 

$

23,252

 

 

$

 

 

$

614,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

48,402

 

 

$

473

 

 

$

2,536

 

 

$

(10,384

)

 

$

41,027

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

10,384

 

 

 

10,384

 

Interest income, net

 

 

(2,348

)

 

 

 

 

 

 

 

 

 

 

 

(2,348

)

Depreciation and amortization

 

 

34,086

 

 

 

1,008

 

 

 

785

 

 

 

 

 

 

35,879

 

Share-based compensation expense

 

 

2,958

 

 

 

30

 

 

 

136

 

 

 

 

 

 

3,124

 

Adjusted EBITDA

 

$

83,098

 

 

$

1,511

 

 

$

3,457

 

 

$

 

 

$

88,066

 

Adjusted EBITDA Margin

 

 

14.8

%

 

 

4.9

%

 

 

14.9

%

 

 

 

 

 

14.3

%

 

 

 

Fourteen
weeks ended
August 31, 2024

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Unallocated Adjustments

 

 

Total

 

Revenue

 

$

586,022

 

 

$

29,283

 

 

$

24,562

 

 

$

 

 

$

639,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

53,858

 

 

$

95

 

 

$

3,119

 

 

$

(12,437

)

 

$

44,635

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

12,437

 

 

 

12,437

 

Interest income, net

 

 

(2,652

)

 

 

 

 

 

 

 

 

 

 

 

(2,652

)

Depreciation and amortization

 

 

36,214

 

 

 

913

 

 

 

852

 

 

 

 

 

 

37,979

 

Share-based compensation expense

 

 

2,473

 

 

 

27

 

 

 

128

 

 

 

 

 

 

2,628

 

Adjusted EBITDA

 

$

89,893

 

 

$

1,035

 

 

$

4,099

 

 

$

 

 

$

95,027

 

Adjusted EBITDA Margin

 

 

15.3

%

 

 

3.5

%

 

 

16.7

%

 

 

 

 

 

14.9

%

 

 

 


 

 

 

 

Fifty-two
 weeks ended
August 30, 2025

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Unallocated Adjustments

 

 

Total

 

Revenue

 

$

2,218,562

 

 

$

114,586

 

 

$

99,204

 

 

$

 

 

$

2,432,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

179,379

 

 

$

853

 

 

$

15,143

 

 

$

(47,104

)

 

$

148,271

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

47,104

 

 

 

47,104

 

Interest income, net

 

 

(9,770

)

 

 

 

 

 

 

 

 

 

 

 

(9,770

)

Depreciation and amortization

 

 

133,420

 

 

 

3,815

 

 

 

3,120

 

 

 

 

 

 

140,355

 

Share-based compensation expense

 

 

11,532

 

 

 

116

 

 

 

525

 

 

 

 

 

 

12,173

 

Gain on the sale of a non-operating property

 

 

(2,792

)

 

 

 

 

 

 

 

 

 

 

 

(2,792

)

Executive transaction costs

 

 

1,429

 

 

 

 

 

 

 

 

 

 

 

 

1,429

 

Adjusted EBITDA

 

$

313,198

 

 

$

4,784

 

 

$

18,788

 

 

$

 

 

$

336,770

 

Adjusted EBITDA Margin

 

 

14.1

%

 

 

4.2

%

 

 

18.9

%

 

 

 

 

 

13.8

%

 

 

 

Fifty-three
 weeks ended
August 31, 2024

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Unallocated Adjustments

 

 

Total

 

Revenue

 

$

2,224,030

 

 

$

106,271

 

 

$

97,130

 

 

$

 

 

$

2,427,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

174,828

 

 

$

(1,832

)

 

$

16,383

 

 

$

(43,905

)

 

$

145,474

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

43,905

 

 

 

43,905

 

Interest income, net

 

 

(7,242

)

 

 

 

 

 

 

 

 

 

 

 

(7,242

)

Depreciation and amortization

 

 

134,831

 

 

 

3,443

 

 

 

3,158

 

 

 

 

 

 

141,432

 

Share-based compensation expense

 

 

9,193

 

 

 

99

 

 

 

481

 

 

 

 

 

 

9,773

 

Adjusted EBITDA

 

$

311,610

 

 

$

1,710

 

 

$

20,022

 

 

$

 

 

$

333,342

 

Adjusted EBITDA Margin

 

 

14.0

%

 

 

1.6

%

 

 

20.6

%

 

 

 

 

 

13.7

%

Note: Our segment results for the fourth quarter and full fiscal year 2025 presented in this press release reflect our modified segments. Our prior period segment results presented in this press release have been recast to conform with the current presentation of our modified segments.

 


 

 

Supplemental reconciliations of the Company’s fiscal 2026 financial outlook for consolidated net income on a GAAP basis to Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures, are presented in the following table. In addition, supplemental reconciliations of the fiscal 2026 financial outlook for segments’ net income on a GAAP basis to segments’ Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures, are also presented in the following table.

Investors are encouraged to review the reconciliations of the outlook for these non-GAAP measures to the outlook for their most directly comparable GAAP financial measures, which are provided below. The Company’s outlook contains forward-looking statements and information. Actual results may differ materially. See “Forward-Looking Statements Disclosure.”

 

 

 

Fifty-two weeks ended August 29, 2026 (1)

 

(In thousands, except percentages)

 

Uniform & Facility Service Solutions

 

 

First Aid & Safey Solutions

 

 

Other

 

 

Unallocated Adjustments

 

 

Total

 

Revenue

 

$

2,276,000

 

 

$

126,000

 

 

$

83,000

 

 

$

 

 

$

2,485,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

158,100

 

 

$

1,600

 

 

$

8,000

 

 

$

(43,602

)

 

$

124,098

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

43,602

 

 

 

43,602

 

Interest income, net

 

 

(9,900

)

 

 

 

 

 

 

 

 

 

 

 

(9,900

)

Depreciation and amortization

 

 

138,300

 

 

 

3,900

 

 

 

3,400

 

 

 

 

 

 

145,600

 

Share-based compensation expense

 

 

15,400

 

 

 

100

 

 

 

750

 

 

 

 

 

 

16,250

 

Adjusted EBITDA

 

$

301,900

 

 

$

5,600

 

 

$

12,150

 

 

$

 

 

$

319,650

 

Adjusted EBITDA Margin

 

 

13.3

%

 

 

4.4

%

 

 

14.6

%

 

 

 

 

 

12.9

%

 

(1)
Amounts represent the midpoint of the Company’s guidance.