Home / Knowledge / News / Apparel/Garments / Q2FY16 net drops 7.7% at Unifirst Corp
Q2FY16 net drops 7.7% at Unifirst Corp
01
Apr '16
For its second fiscal quarter ended February 27, 2016, net income at Unifirst Corp was $23.5 million or $1.16 per diluted share, down 7.7 per cent from $25.4 million or $1.26 per diluted share in the fiscal ago quarter.

In a press release, the company said that the results in the second quarter of fiscal 2015 included a $3.6 million charge to selling and administrative expenses to increase its environmental contingency reserves.

“Excluding the effect of this item, net income for the prior fiscal's second quarter would have been $27.7 million or $1.37 per diluted share,” the company observed.

“In addition, the comparison of net income was negatively impacted by a higher effective tax rate in the reporting quarter compared to the same period a fiscal ago due to a change in the mix of jurisdictional earnings,” it explained.

Revenues for the second quarter of fiscal 2016 were $363.1 million, up 0.5 per cent from $361.5 million in the year previous fiscal's comparable quarter.

Core Laundry revenues in the quarter were $331.4 million, down 0.2 per cent year on year, but adjusting for the effects of acquisitions and a weaker Canadian dollar, revenues grew 0.5 per cent.

Excluding the environmental charge from the second quarter of fiscal 2015, this segment's operating margin decreased to 10.9 per cent from an adjusted operating margin of 13.4 per cent a fiscal ago.

“The largest driver of the margin decline was significantly higher healthcare claims incurred during the quarter compared to a fiscal ago, which impacted the margin comparison by a full 1 per cent,” it added.

Merchandise as well as many other costs were also higher than the prior fiscal which negatively impacted the margin further due to the lack of top line growth in this segment.

“These items were partially offset by lower energy expenses during the quarter compared to a year ago,” the uniform services provider informed.

Revenues for the Specialty Garments segment, which consists of nuclear decontamination and cleanroom operations, were $20.5 million, up 9.6 per cent year on year.

Due, primarily to the improved revenue performance, this segment's income from operations rose to $1.1 million in the quarter under review from a loss of $0.4 million in last fiscal's comparable period.

CEO Ronald Croatti said, “Our growth during the second quarter continued to be negatively impacted by the loss of uniform wearers and customers in energy dependent markets in the US and Canada.”

“In fact, during the quarter, uniform wearer reductions accelerated from our first quarter experience,” Croatti too observed

UniFirst continues to maintain a solid balance sheet with no long-term debt and increasing cash balances.

Net cash provided by operating activities in the first six months of fiscal 2016 was $105.5 million, down only slightly from the same period in fiscal 2015.

While, cash and cash equivalents at the end of the fiscal quarter totaled $335.0 million, up from $276.6 million at the end of fiscal 2015. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X