Net income at UniFirst Corp slips 5.5% in FY14
Net income at NYSE-listed UniFirst Corp, a supplier of workplace uniforms and protective clothing slipped 5.5% year-on-year in the fourth fiscal quarter ending August 31, 2014.
Net income for the fourth fiscal quarter of 2014 reached $28.9 million or $1.43 per diluted share, down 5.5% from $30.6 million or $1.52 per diluted share from the fourth fiscal quarter of 2013.
Fourth quarter of 2014 revenues amounted to $352.0 million, marginally down by 0.3% from $352.9 million in the year ago period.
UniFirst said fiscal 2014 was a 52-week year compared to fiscal 2013, which included 53 weeks.
“Excluding the estimated impact of the extra week, fourth quarter revenues and income from operations both increased 7.4%,” it added.
Net income, excluding the estimated impact of the extra week, increased in the fourth quarter of 2014 by 1.7% year-on-year.
Revenues in the Core Laundry Operations for the fourth quarter of 2014 were $321.0 million, up 0.2% from those reported in the prior year’s fourth quarter.
During the reporting quarter, income from operations for this segment, excluding the effect of the extra week, rose 8.9% and profit margin increased slightly to 14.3% from 14.2% a year ago.
The positive impact on margins from the quarter’s strong revenue growth, excluding the extra week, was partially offset by higher legal costs compared to a year ago.
Revenues for the Specialty Garments segment for the fourth quarter of 2014, which consists of nuclear decontamination and cleanroom operations, touched $19.0 million, down 4.4% from $19.9 million.
This segment’s income from operations for the fourth quarter of 2014 totalled $0.1 million compared to $1.0 million in the fourth quarter of 2013.
UniFirst said it continues to maintain a solid balance sheet and ended the fiscal year with no long-term debt and cash and cash equivalents of $191.8 million, down from $197.5 million at the end of fiscal 2013.
“The change in cash levels during the year was affected due to repayment of $100.0 million in private placement notes that came due in September 2013,” UniFirst added.
CEO Ronald Croatti said, “We are very pleased to be reporting another record year of revenues and profits and we will continue producing solid results for our shareholders in fiscal 2015.”
UniFirst forecast fiscal 2015 revenues to be between $1.450 billion and $1.470 billion and full year EPS to be in the range of $5.75 and $6.00.
UniFirst Corp is one of the largest providers of workplace uniforms, protective clothing, and facility services products in North America.
It employs approximately 12,000 employees who serve more than 260,000 customer locations in 45 US states, Canada, and Europe from over 200 points. (AR)
Fibre2fashion News Desk - India