Specialty Garments performs well at UniFirst

02 Apr '09

4 min read

Interest expense for the quarter declined as compared to the prior year due to lower interest rates, as well as lower average borrowings outstanding. This benefit was offset by a higher effective tax rate for the quarter, as a result of increases to the Company's reserves for tax contingencies.

UniFirst continues to generate strong cash flows and maintain a solid balance sheet. Total debt as a percentage of capital was down to 27.5% at the end of the quarter as compared to 29.7% as of the end of fiscal 2008. Cash flows from operations for the first six months of fiscal 2009 were $60.3 million compared to $59.7 million in the first half of fiscal 2008.

“Based on the current economic conditions, our ability to grow will be challenged during the remainder of fiscal 2009 and into fiscal 2010,” Croatti said. “As a result, cost control will continue to be a top priority. However, even in a difficult economy, we're confident in our overall financial strength and ability to generate solid cash flows, allowing us to continue pursuing strategic investments we feel will benefit the Company as conditions improve.”

UniFirst Corporation

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