UniFirst net sales jump 18.7% for nine months of fiscal 2005

30 Jun '05

3 min read

Largest wokerwear & protective clothing producer UniFirst Corporation announced its revenues and earnings for the third quarter and nine months of fiscal 2005, which ended May 28, 2005.

Third quarter net income was $11.8 million ($0.61 per diluted common share), an 18.7% percent increase from last year's $9.9 million ($0.52 per diluted common share). Revenues for the third quarter of fiscal 2005 were $196.0 million, a 7.1% percent increase from $183.0 million in the same period a year ago.

For the first three quarters of fiscal 2005, net income was $35.2 million ($1.82 per diluted common share), a 35.2% increase from last year's $26.1 million ($1.35 per diluted common share). Revenues were $575.1 million, a 6.2% increase from $541.3 million for the first three quarters of fiscal 2004.

The Company benefited in the third quarter of fiscal 2005 from higher revenues and profits from its UniTech business. Another reason for the significant increase in net income in the third quarter and the first three quarters of fiscal 2005 compared to fiscal 2004 continues to be a decrease in operating costs as a percentage of revenues.

As a percentage of revenues, operating costs for the third quarter decreased 1.2 percentage points from 63.5% for fiscal 2004 to 62.3% for fiscal 2005 and decreased for the first nine months of the year by 1.5 percentage points from 64.1% for fiscal 2004 to 62.6% 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.

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