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UniFirst Announces Financial Results for First Nine Months of Fiscal 2011
http://www.fashionnewspaper.com/articles/7825/1/UniFirst-Announces-Financial-Results-for-First-Nine-Months-of-Fiscal-2011/Page1.html
By Maxamillion Blick
Published on 06/30/2011
 

UniFirst Corporation (NYSE: UNF) this week announced results for its third quarter and first nine months of fiscal 2011, which ended on May 28, 2011.


UniFirst Announces Financial Results for First Nine Months of Fiscal 2011

UniFirst Corporation (NYSE: UNF) this week announced results for its third quarter and first nine months of fiscal 2011, which ended on May 28, 2011.

Revenues for the third quarter were $291.6 million, up 11.6% from $261.2 million for the same period in the prior year. Net income was $18.4 million ($0.93 per diluted common share), compared to the third quarter of fiscal 2010 when net income was $19.3 million ($0.98 per diluted common share).

For the first nine months of fiscal 2011, revenues were $843.3 million, up 9.4% versus $771.0 million for the same period in the prior year. Net income was $58.5 million ($2.94 per diluted common share), compared to the first nine months of fiscal 2010 when net income was $59.1 million ($3.03 per diluted common share).

Ronald D. Croatti, UniFirst President and Chief Executive Officer said, “During the quarter, all of our segments contributed to our strong top line growth. Our core laundry revenues benefited from improved sales representative productivity and customer wearer levels as well as solid customer retention rates.”

Core laundry revenues for the quarter were $252.1 million, up 10.6% from those reported in the same period a year ago. Excluding the positive effect of acquisitions as well as a stronger Canadian dollar, the Company’s core laundry revenues increased 8.7%. Income from operations for this segment fell to 8.9% of revenues in the third quarter from 11.5% a year ago. As anticipated, the operating margin decline primarily related to increased merchandise amortization and energy expense as a percentage of revenues. In addition, the quarter included a $0.4 million charge related to the effect of discount rate fluctuations on the value of our environmental liabilities. These increases were partially offset by lower payroll related costs as a percentage of revenues.

The Specialty Garments segment, which consists of nuclear decontamination and cleanroom operations, posted revenues of $30.6 million, up 19.1% compared to the third quarter of 2010. Income from operations for this segment increased to $5.7 million in the third quarter of fiscal 2011 from $5.2 million in the third quarter of fiscal 2010. The strong performance of this segment was primarily the result of an increase in power reactor outages compared to a year ago as well as improved results from its clean room operations. First Aid segment revenues increased 15.1% to $8.9 million in the third quarter of 2011, compared to $7.8 million in the same quarter a year ago. Income from operations for this segment also increased to $0.9 million from $0.7 in the third quarter of last year.

Due to the expiration of an interest rate swap, net interest expense decreased to $1.0 million during the quarter from $1.7 million in the third quarter of fiscal 2010. In addition, the Company recognized foreign exchange gains of $0.3 million in the quarter versus losses of $0.6 million for the same quarter a year ago.

UniFirst continues to maintain a solid balance sheet and overall financial position. Cash and cash equivalents on hand at the end of the fiscal 2011 third quarter was $109.0 million. In addition, the quarter ended with total debt as a percentage of capital of 18.8%, down from 20.4% at the end of fiscal 2010.

Conference Call Information

UniFirst will hold a conference call today at 10:00 a.m. (ET) 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.

About UniFirst Corporation

UniFirst Corporation is one of the largest providers of workplace uniforms, protective clothing, and facility services products in North America. The Company employs approximately 10,000 Team Partners who serve more than 225,000 customer locations in 45 U.S. states, Canada, and Europe from over 200 customer service, distribution, and manufacturing facilities. UniFirst 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.

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