Home / Knowledge / News / Apparel/Garments / UniFirst Specialty Garments produces record results for Q3
UniFirst Specialty Garments produces record results for Q3
01
Jul '10
UniFirst Corporation announced results for the third quarter and first nine months of fiscal 2010, which ended on May 29, 2010.

Revenues for the third quarter of fiscal 2010 were $261.2 million, up 3.6% compared to $252.1 million for the same period in the prior year. Third quarter net income was $19.3 million ($0.98 per diluted common share), an 11.0% decrease from the third quarter of fiscal 2009 when net income was $21.7 million ($1.12 per diluted common share). For the first nine months of fiscal 2010, revenues were down 0.1% and net income was up 0.5% compared to the first nine months of fiscal 2009.

Ronald D. Croatti, UniFirst President and Chief Executive Officer said, "We are pleased with the Company's overall results for the third quarter. The performance of our core laundry operations met our expectations and our sales force continues to have success expanding our customer base. In addition, our Specialty Garments segment produced record results for the quarter and likely will end the year with record revenues and profits."

The Company's core laundry revenues were $227.8 million in the third quarter of fiscal 2010, up 1.8% from the same period in fiscal 2009. After excluding the impact of acquisitions as well as a stronger Canadian dollar, the Company's core laundry revenues decreased 1.0% comparing the same periods. Core laundry operating income declined to $26.2 million in the third quarter of fiscal 2010 from $33.3 million for the same period in the prior year and the operating margin fell to 11.5% in the third quarter of fiscal 2010 from 14.9% in the third quarter of fiscal 2009. The margin decline primarily relates to a higher cost of revenues, including energy, payroll and merchandise costs. The Company also incurred higher selling and administrative costs, including stock compensation expense during the quarter which was partially offset by lower costs associated with environmental contingencies compared to the third quarter of fiscal 2009.

The Company's Specialty Garments segment, which consists of nuclear decontamination and cleanroom operations, increased its revenues $4.6 million or 22.0% compared to the third quarter of 2009. This increase was primarily the result of higher than expected revenues from certain US and Canadian reactor projects. As a result of this increase in revenues, operating income for this segment increased to $5.2 million in the third quarter of fiscal 2010 from $3.0 million in the third quarter of fiscal 2009.

The Company's decrease in net income was also the result of exchange rate losses of $0.6 million in the third quarter of fiscal 2010 compared to gains of $0.8 million in the third quarter of fiscal 2009.

As expected, the Company's effective income tax rate for the quarter was lower than the prior year as a result of reductions in tax contingency reserves. The effective income tax rate for the quarter was 35.0% compared to 39.3% for the third quarter of fiscal 2009.


Must ReadView All

Israeli minister announces tax cuts on consumer goods

Apparel/Garments | On 14th Dec 2017

Israeli minister announces tax cuts on consumer goods

The Israeli Government will slash taxes by $227 million, finance...

Courtesy: Kelvin Techstyles

Apparel/Garments | On 14th Dec 2017

Kelvin Techstyles fuses style and function in city apparel

Fusing style and function in outdoor clothing, Roseville,...

India’s WPI inflation for textiles up 0.3% in Nov 2017

Textiles | On 14th Dec 2017

India’s WPI inflation for textiles up 0.3% in Nov 2017

India’s annual rate of inflation, based on monthly wholesale price...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Urmil Arya

Sushila International, a well established textile organisation established ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search