UniFirst core laundry business up 26.1% for Q1 fiscal

04 Jan '08

3 min read

UniFirst Corporation announced record revenues and earnings for its first quarter of fiscal 2008 which ended November 24, 2007.

Revenues for the first quarter of fiscal 2008 were $247.3 million, an 11.2% increase from the previous year's first quarter of $222.4 million.

First quarter net income for fiscal 2008 was $16.5 million or $0.85 per diluted common share, a 19.9% increase from the first quarter of fiscal 2007, when net income was $13.7 million or $0.71 per diluted common share.

Revenues from the Company's core laundry operations, which exclude the Company's Specialty Garments and First Aid segments, grew 12.5% in the first quarter of fiscal 2008 compared to the first quarter of fiscal 2007.

Revenues from the core laundry operations increased 8.0% due to internal growth and price increases. The growth from acquisitions was primarily the result of the acquisition of Western Uniform & Towel Service which was completed in September 2007.

Primarily as a result of this revenue growth, the income from operations of the Company's core laundry business was up 26.1% compared to the first quarter of fiscal 2007.

The operating margin for the core laundry business increased from 11.1% in the first quarter of fiscal 2007 to 12.5% in the first quarter of fiscal 2008.

In addition to the revenue growth, reductions in merchandise amortization as a percentage of revenues contributed to our improved profitability.

These improvements were partially offset by higher selling and health care related costs as a percentage of revenues.

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