Unifirst Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended November 28, 2015; Revises Earnings Guidance for Full Year of Fiscal 2016
January 06, 2016 at 08:00 am EST
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UniFirst Corporation reported unaudited consolidated earnings results for the first quarter ended November 28, 2015. Revenues for the quarter were $373.4 million, up 0.8% from $370.4 million in the year ago period. Net income was $35.9 million or $1.78 per diluted share, down 4.1% from $37.4 million or $1.85 per diluted share in the first quarter of fiscal 2015. Income from operations was $58.3 million against $60.6 million last year. Income before income taxes was $58.4 million against $60.8 million last year. Net cash provided by operating activities was $57.6 million against $52.8 million last year. Capital expenditures were $21.0 million against $17.5 million last year. The increase in cash from operating activities was driven by changes in certain working capital items primarily the timing of certain accounts payable disbursements in prepaid expenses.
Based on the further weakening of the Canadian dollar to the current level, the company now believes that full year of fiscal 2016 revenues will be between $1.460 billion and $1.475 billion and continues to believe that diluted EPS will be between $5.60 and $5.80. This guidance assumes no significant further deterioration in wearer base as a result of additional layoffs in energy dependent markets that the company services. The company continues to expect capital expenditures for fiscal 2016 to be approximately $100 million and operating margin to be approximately 13%.
UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States. The Company operates through five segments: The U.S. and Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The U.S. and Canadian Rental and Cleaning segment purchases, rents, cleans, delivers, and sells, uniforms and protective clothing and non-garment items in the United States and Canada. The MFG segment designs and manufactures uniforms and non-garment items primarily for the purpose of providing these goods to the United States and Canadian Rental and Cleaning segment. The Specialty Garments segment purchases, rents, cleans, delivers, and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations. The First Aid segment sells first aid cabinet services and other safety supplies.
Unifirst Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended November 28, 2015; Revises Earnings Guidance for Full Year of Fiscal 2016