News Flash

Uniform maker UniFirst revenues up on lower operating costs

02 Nov '05

3 min read

Leading largest providers of workplace uniforms, protective clothing and facility services products in North America, UniFirst Corporation announced its revenues and earnings for its fiscal 2005 fourth quarter and full year.

For fiscal 2005, net income was $43.3 million ($2.24 per diluted common share), a 29.1% increase from last year's $33.6 million ($1.74 per diluted common share). Revenues for fiscal 2005 were $763.8 million, a 6.2% increase from $719.4 million for fiscal 2004.

Fourth quarter net income was $8.1 million ($0.42 per diluted common share), an 8.1% percent increase from last year's $7.5 million ($0.39 per diluted common share). Revenues for the fourth quarter of fiscal 2005 were $188.8 million, a 6.0% percent increase from $178.1 million in the same period a year ago.

The primary reason for the significant increase in net income for fiscal 2005 compared to fiscal 2004 was a decrease in operating costs as a percentage of revenues. As a percentage of revenues, operating costs for fiscal 2005 decreased 1.2 percentage points from 64.1% for fiscal 2004 to 62.9% for fiscal 2005.

This decrease was due to lower merchandise amortization for the locations acquired as part of the Textilease acquisition as well as from cost savings realized from the Company's manufacturing operations in Mexico and lower industrial laundry production payroll costs as a percentage of revenues.

These benefits were somewhat offset by higher energy costs associated with operating industrial laundries as well as in utilizing our fleet of delivery vehicles and an increase in selling payroll costs as the Company has increased its sales force in fiscal 2005.

More UniFirst Corporation News... More Apparel/Garments News - Canada...