|
SECURITY: UNF (Common)
EXCHANGE: New York Stock Exchange CURRENCY: US Dollar
UniFirst, a leading supplier
of workwear for businesses big and small since 1936, provides a wide range
of apparel from traditional uniforms, industrial wear, specialty and protective
clothing, to "corporate casual" attire. Serving over 150,000 customers
throughout the United States and Canada, UniFirst puts more than 1 million
people in their work apparel each business day and offers Customers rental,
lease, or purchase programs at the very best value.
UniFirst
Announces Financial Results for the Second Quarter and First Six Months
of Fiscal 2007
WILMINGTON, Mass.--(BUSINESS
WIRE)--March 28, 2007--UniFirst Corporation (NYSE: UNF) today announced
its revenues and earnings for its second quarter and first half of fiscal
2007 which ended February 24, 2007.
Revenues were a record $222.4
million and $444.7 million for the second quarter and first half of fiscal
2007, respectively. These revenues represent an increase of 10.0% and 10.8%,
respectively, from the $202.2 million and $401.5 million in the comparable
2006 periods.
Second quarter net income
was $7.0 million, or $0.36 per diluted common share, compared to last year's
second quarter net income of $6.3 million, or $0.33 per diluted common
share. Net income for the first six months of fiscal 2007 was $20.7 million,
or $1.07 per diluted common share, compared to $17.7 million, or $0.92
per diluted common share for the comparable period in 2006. The Company's
second quarter and six month earnings were affected by severance expense
related to the departure of the Company's Senior Vice President of Sales
and Marketing as well as by adjustments made to the Company's environmental
reserves. These combined to decrease the Company's income from operations
and net income by approximately $2.3 million and $1.4 million, respectively.
Without these adjustments, the Company's diluted earnings per share for
the second quarter and the first six months of fiscal 2007 would have been
$0.43 and $1.14, respectively.
Excluding the items discussed
above, income from operations from the Company's core laundry business,
which excludes the Company's Specialty Garments and First Aid segments,
increased 20.9% and 15.8% in the second quarter and six month periods as
compared to fiscal 2006. These increases were the result of revenue growth
of 10.0% and 10.2% in the second quarter and six month periods, respectively,
as well as lower operating costs as a percentage of revenues. The revenue
growth was primarily due to organic growth, which was 7.3% for both the
second quarter and the six month periods. The increase in operating margin
was primarily due to a reduction in energy costs, production costs and
delivery payroll costs as a percentage of revenues. These improvements
continue to be partially offset by higher merchandise costs as a percentage
of revenues.
The Company's results also
continue to be affected by higher interest expense as compared to fiscal
2006, which was the result of higher average borrowings in fiscal 2007
as well as higher interest rates affecting the Company's variable rate
debt.
"I continue to be pleased
with the strong organic revenue growth in our core laundry operations"
said UniFirst President and Chief Executive Officer, Ron Croatti. "Both
our professional sales team and our route sales team contributed to these
strong results."
The Company will hold a conference
call today at 4:00 PM (EDT) to discuss its quarterly financial results,
business highlights and outlook. A simultaneous live webcast of the call
will be available over the Internet and can be accessed at www.unifirst.com.
UniFirst is one of the largest
providers of workplace uniforms, protective clothing and facility services
products in North America. The Company employs approximately 9,800 team
partners who serve nearly 200,000 customer locations in 46 states, Canada
and Europe from 189 manufacturing, distribution and customer service facilities.
UniFirst Corporation is a publicly held company traded on the New York
Stock Exchange under the symbol UNF and is a component of the Standard
& Poor's 600 Small Cap Index.
|