UniFirst's Core Laundry segment revenue soars

03 Apr '08

3 min read

UniFirst Corporation announced its record revenues and earnings for its second quarter and first six months of fiscal 2008 which ended March 1, 2008.

Second quarter net income increased 119.6% to $15.3 million, or $0.79 per diluted common share, from last year's second quarter net income of $7.0 million, or $0.36 per diluted common share. Net income for the first six months of fiscal 2008 increased 53.4% to $31.8 million, or $1.64 per diluted common share, from $20.7 million, or $1.07 per diluted common share for the comparable period in 2007.

Revenues were a record $270.3 million and $517.5 million for the second quarter and first six months of fiscal 2008. These revenues represent increases of 21.6% and 16.4%, respectively, over the comparable fiscal 2007 quarterly and six month periods.

Both the second quarter and six month periods in fiscal 2008 include an extra week compared to fiscal 2007 as fiscal 2008 is a 53 week year for the Company. The extra week in fiscal 2008 accounted for revenue growth of approximately 8.9% and 4.4% compared to the second quarter and first six months of fiscal 2007, respectively.

The Company's second quarter and six month earnings in fiscal 2007 were affected by severance expense as well as by adjustments made to the Company's environmental reserves. These combined to decrease the Company's income from operations and net income by approximately $2.3 million and $1.4 million, respectively.

Without these adjustments, the Company's diluted earnings per share for the second quarter and the first six months of fiscal 2007 would have been $0.43 and $1.14, respectively.

UniFirst Corporation

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