Vestis Reports Fourth Quarter and Full-Year 2025 Results and Announces Strategic Business Transformation
Fourth Quarter 2025 Results
-
Revenue of
$712 million -
Operating Income of
$18 million -
Net Loss of
$13 million $(0.10) -
Adjusted Net Income* of
$4 million $0.03 -
Adjusted EBITDA* of
$65 million -
Cash Flows Provided by Operating Activities of
$31 million $16 million -
Available liquidity of
$298 million $30 million
Management Commentary
“We ended fiscal 2025 in a good position to advance our strategic priorities as we enter fiscal 2026,” said Jim Barber, President and CEO. “Over the past several months, we have taken a close look at our commercial strategy as well as our operations and identified the actions needed to strengthen performance, unlock operating leverage, and better serve our customers. As a result, we have launched a comprehensive business transformation plan anchored on three strategic pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization. We have already begun executing initiatives under the plan, and we anticipate these improvements will be progressively realized throughout fiscal 2026 as we advance our multi-year transformation,” Mr. Barber concluded.
“As we look ahead, our near-term focus is increasing both profitability and cash flow to lay the foundation for stronger, more durable financial performance going forward,” said Kelly Janzen, Executive Vice President and Chief Financial Officer. “The variety of initiatives we are executing related to our value-creation plan represents a critical step toward improving operating leverage, supporting the balance sheet and unlocking the full potential of our platform to deliver lasting value for all stakeholders. The plan is expected to generate annual operating cost savings of at least
Strategic Business Transformation
Today, the Company announced the launch of a formal multi-year strategic transformational restructuring plan (the “Plan”) designed to make the Company more customer focused, agile and efficient – while positioning it for long-term profitable growth. Developed in collaboration with leading third-party advisors, the Plan is structured around three strategic priorities: Commercial Excellence, Operational Excellence and Asset & Network Optimization.
- Commercial Excellence: Enhancing customer retention, penetration and profitability through improved segmentation, strategic pricing, expanded product offerings and disciplined commercial execution.
- Operational Excellence: Standardizing operations across facilities to boost efficiency, scalability, and cost-effectiveness, streamlining our organizational structure to align resources with strategic goals while modernizing core processes and systems.
- Asset & Network Optimization: Improving logistics and asset utilization through network rationalization, equipment reallocation, and targeted capital investments.
These priorities establish a clear framework for near-term performance improvement and long-term value creation through disciplined execution, continuous improvement, and a relentless focus on serving customers. We expect the Plan to be substantially complete by the end of 2027 and we estimate that costs related to the execution of the Plan will be in the range of approximately
Fourth Quarter 2025 Financial Performance
Revenue for the fiscal fourth quarter totaled
Operating income for the fiscal fourth quarter was
Capital Allocation and Financial Position
During the fiscal fourth quarter of 2025, we invested
Net cash provided by operating activities was
As of October 3, 2025, Vestis had total cash and excess availability under its revolving credit facility of
Fiscal Year 2026 Outlook
The Company expects fiscal 2026 revenue to be between flat to down
Fourth Quarter & Full-Year 2025 Results Conference Call & Webcast
Vestis will host a conference call on Tuesday, December 2, 2025, at 8:30 a.m. Eastern Time to discuss its fiscal fourth quarter and full year 2025 results.
For a live webcast of the conference call and to access the accompanying investor presentation, please visit the investor relations section of the Company’s website at www.vestis.com.
To participate in the live teleconference:
Unites States Live: 800-267-6316
International Live: 203-518-9783
Access Code: VSTSQ425
A replay of the live event will also be available on the Company’s website shortly after the conclusion of the call.
About Vestis™
Vestis is a leader in the B2B uniform and workplace supplies category. Vestis provides uniform services and workplace supplies to a broad range of North American customers from Fortune 500 companies to locally owned small businesses across a broad set of end sectors. The Company’s comprehensive service offering primarily includes a full-service uniform rental program, floor mats, towels, linens, managed restroom services, first aid supplies, and cleanroom and other specialty garment processing.
____________________________________ |
* A non-GAAP measure, see accompanying non-GAAP measure explanations and reconciliations later in this release |
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the securities laws. All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts relating to discussions of future operations and financial performance and statements regarding our strategy for growth, future product development, regulatory approvals, competitive position and expenditures. In some cases, forward-looking statements can be identified by words such as “potential,” “outlook,” “guidance,” “anticipate,” “continue,” “estimate,” “expect,” “will,” and “believe,” and other words and terms of similar meaning or the negative versions of such words. Examples of forward-looking statements in this release include, but are not limited to, statements regarding: the potential effects and timing of our strategic business actions to enhance both our commercial and operational processes, and our expectations regarding our fiscal year 2026 performance outlook, including the information under the heading “Fiscal Year 2026 Outlook”. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict including, but not limited to: unfavorable macroeconomic conditions including inflationary pressures and higher interest rates; the failure to retain current customers, renew existing customer contracts and obtain new customer contracts, which could result in continued stock volatility and potential future goodwill impairment charges; competition in our industry; our ability to comply with certain financial ratios, tests and covenants in our credit agreement, including the Net Leverage Ratio; our significant indebtedness and ability to meet debt obligations and our reliance on an accounts receivable securitization facility; our ability to successfully execute or achieve the expected benefits of our restructuring plan and other measures we may take in the future; use of artificial intelligence in our business, which could result in reputational harm, competitive harm, and legal liability; increases in fuel and energy costs and other supply chain challenges and disruptions, including as a result of ongoing military conflicts in
Non-GAAP Financial Measures
Vestis reports its financial results in accordance with
Adjusted EBITDA
Adjusted EBITDA represents net income (loss) adjusted for provision for income taxes; interest expense, net; and depreciation and amortization (EBITDA), further adjusted for share-based compensation expense; severance; separation related charges; securitization fees; loss (gain) on sale of equity investment; third party debt amendment fees; legal reserves and settlements; gains, losses, and other items impacting comparability. Adjusted EBITDA is presented in order to reflect Vestis’ results in a manner that allows a better understanding of operational activities separate from the financial impact of decisions made for the long-term benefit of Vestis and other items impacting comparability between periods. Similar adjustments have been recorded in Adjusted EBITDA for earlier periods and similar types of adjustments can reasonably be expected to be recorded in Adjusted EBITDA in future periods.
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) represents net income (loss) adjusted to exclude items not considered indicative of our core ongoing operations, such as restructuring and severance charges, separation-related costs, amortization of intangibles, loss (gain) on sale of equity investment, third party debt amendment fees, legal reserves and settlements, share-based compensation, gains, losses, and other items impacting comparability. Management believes this measure provides useful supplemental information by facilitating period-over-period comparisons of performance on a consistent basis. The most directly comparable GAAP measure is Net Income (Loss).
Free Cash Flow
Free Cash Flow represents net cash provided by operating activities adjusted for purchases of property and equipment and other. Free Cash Flow is presented because it relates the operating cash flow of Vestis to the capital that is spent to continue and improve business operations, and indicates the amount of cash generated or used after capital expenditures that can be used for, among other things, investment in the Vestis business, strengthening the balance sheet, and repayment of debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure.
Net Leverage Ratio, Net Debt, Covenant Adjusted EBITDA and Trailing Twelve Months Covenant Adjusted EBITDA
Net Leverage Ratio is defined in Vestis’ credit agreement and is calculated as consolidated total indebtedness in excess of unrestricted cash (referred to herein as “Net Debt”), divided by the Trailing Twelve Months Covenant Adjusted EBITDA. Net Debt represents total principal debt outstanding, letters of credit outstanding, and finance lease obligations, less cash and cash equivalents. Covenant Adjusted EBITDA represents Adjusted EBITDA, as further modified by certain items specifically permitted under the credit agreement to assess compliance with its financial covenants. Trailing Twelve Months Covenant Adjusted EBITDA represents Covenant Adjusted EBITDA for the preceding four fiscal quarters. Vestis believes that Net Leverage Ratio and its components are useful to investors because they are indicators of Vestis’ ability to meet its future financial obligations and are measures that are frequently used by investors and creditors.
Forward Looking Non-GAAP Information
This release also includes certain non-GAAP financial information that is forward-looking in nature, including our expected 2026 Adjusted EBITDA and Free Cash Flow. Vestis believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Vestis to predict the timing and likelihood of among other things future acquisitions and divestitures, restructurings, asset impairments, other charges and other factors not within Vestis’ control. Neither these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP measures are not provided. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
VESTIS CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
October 3,
|
|
September 27,
|
|
October 3,
|
|
September 27,
|
||||||||
Revenue |
$ |
712,011 |
|
|
$ |
684,281 |
|
|
$ |
2,734,839 |
|
|
$ |
2,805,820 |
|
Operating Expenses: |
|
|
|
|
|
|
|
||||||||
Cost of services provided (exclusive of depreciation and amortization) |
|
533,150 |
|
|
|
487,315 |
|
|
|
2,010,082 |
|
|
|
1,989,872 |
|
Depreciation and amortization |
|
35,343 |
|
|
|
35,281 |
|
|
|
143,017 |
|
|
|
140,781 |
|
Selling, general and administrative expenses |
|
125,877 |
|
|
|
131,909 |
|
|
|
517,309 |
|
|
|
517,216 |
|
Total Operating Expenses |
|
694,370 |
|
|
|
654,505 |
|
|
|
2,670,408 |
|
|
|
2,647,869 |
|
Operating Income |
|
17,641 |
|
|
|
29,776 |
|
|
|
64,431 |
|
|
|
157,951 |
|
Loss (Gain) on Sale of Equity Investment, net |
|
634 |
|
|
|
— |
|
|
|
2,784 |
|
|
|
— |
|
Interest Expense, net |
|
24,343 |
|
|
|
29,848 |
|
|
|
92,264 |
|
|
|
126,563 |
|
Other Expense (Income), net |
|
3,569 |
|
|
|
1,199 |
|
|
|
13,689 |
|
|
|
(642 |
) |
(Loss) Income Before Income Taxes |
|
(10,905 |
) |
|
|
(1,271 |
) |
|
|
(44,306 |
) |
|
|
32,030 |
|
(Benefit) Provision for Income Taxes |
|
1,644 |
|
|
|
1,027 |
|
|
|
(4,083 |
) |
|
|
11,060 |
|
Net (Loss) Income |
$ |
(12,549 |
) |
|
$ |
(2,298 |
) |
|
$ |
(40,223 |
) |
|
$ |
20,970 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.10 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.31 |
) |
|
$ |
0.16 |
|
Diluted |
$ |
(0.10 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.31 |
) |
|
$ |
0.16 |
|
Weighted Average Shares Outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
131,840 |
|
|
|
131,566 |
|
|
|
131,751 |
|
|
|
131,506 |
|
Diluted |
|
131,840 |
|
|
|
131,566 |
|
|
|
131,751 |
|
|
|
131,787 |
|
VESTIS CORPORATION |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
(In thousands, except per share amounts) |
|||||||
|
October 3, 2025 |
|
September 27, 2024 |
||||
ASSETS |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
29,748 |
|
|
$ |
31,010 |
|
Receivables (net of allowances: |
|
162,295 |
|
|
|
177,271 |
|
Inventories, net |
|
179,020 |
|
|
|
164,913 |
|
Rental merchandise in service, net |
|
405,625 |
|
|
|
396,094 |
|
Other current assets |
|
73,343 |
|
|
|
43,981 |
|
Total current assets |
|
850,031 |
|
|
|
813,269 |
|
Property and Equipment, at cost: |
|
|
|
||||
Land, buildings and improvements |
|
565,677 |
|
|
|
590,972 |
|
Equipment |
|
1,172,877 |
|
|
|
1,168,142 |
|
|
|
1,738,554 |
|
|
|
1,759,114 |
|
Less - Accumulated depreciation |
|
(1,075,092 |
) |
|
|
(1,088,256 |
) |
Total property and equipment, net |
|
663,462 |
|
|
|
670,858 |
|
Goodwill |
|
961,732 |
|
|
|
963,844 |
|
Other Intangible Assets, net |
|
188,837 |
|
|
|
212,773 |
|
Operating Lease Right-of-use Assets |
|
85,108 |
|
|
|
73,530 |
|
Other Assets |
|
157,730 |
|
|
|
198,113 |
|
Total Assets |
$ |
2,906,900 |
|
|
$ |
2,932,387 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Current maturities of financing lease obligations |
$ |
35,234 |
|
|
$ |
31,347 |
|
Current operating lease liabilities |
|
20,189 |
|
|
|
19,886 |
|
Accounts payable |
|
158,362 |
|
|
|
163,054 |
|
Accrued payroll and related expenses |
|
93,897 |
|
|
|
96,768 |
|
Accrued expenses and other current liabilities |
|
101,282 |
|
|
|
145,047 |
|
Total current liabilities |
|
408,964 |
|
|
|
456,102 |
|
Long-Term Borrowings |
|
1,155,143 |
|
|
|
1,147,733 |
|
Noncurrent Financing Lease Obligations |
|
131,071 |
|
|
|
115,325 |
|
Noncurrent Operating Lease Liabilities |
|
77,032 |
|
|
|
66,111 |
|
Deferred Income Taxes |
|
177,337 |
|
|
|
191,465 |
|
Other Noncurrent Liabilities |
|
91,709 |
|
|
|
52,600 |
|
Total Liabilities |
|
2,041,256 |
|
|
|
2,029,336 |
|
Equity: |
|
|
|
||||
Common stock, par value |
|
1,319 |
|
|
|
1,315 |
|
Additional paid-in capital |
|
937,531 |
|
|
|
928,082 |
|
(Accumulated deficit) retained earnings |
|
(46,879 |
) |
|
|
2,565 |
|
Net parent investment |
|
— |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
(26,327 |
) |
|
|
(28,911 |
) |
Total Equity |
|
865,644 |
|
|
|
903,051 |
|
Total Liabilities and Equity |
$ |
2,906,900 |
|
|
$ |
2,932,387 |
|
VESTIS CORPORATION |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
Three months ended |
|
Fiscal Year Ended |
||||||||||||
|
October 3,
|
|
September 27,
|
|
October 3,
|
|
September 27,
|
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net Income (Loss) |
$ |
(12,549 |
) |
|
$ |
(2,298 |
) |
|
$ |
(40,223 |
) |
|
$ |
20,970 |
|
Adjustments to reconcile Net Income (Loss) to Net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
35,343 |
|
|
|
35,281 |
|
|
|
143,017 |
|
|
|
140,781 |
|
Deferred income taxes |
|
2,604 |
|
|
|
(9,410 |
) |
|
|
(13,398 |
) |
|
|
(19,576 |
) |
Share-based compensation expense |
|
556 |
|
|
|
3,033 |
|
|
|
11,565 |
|
|
|
16,336 |
|
Loss on sale of equity investment, net |
|
634 |
|
|
|
— |
|
|
|
2,784 |
|
|
|
— |
|
Asset write-down |
|
980 |
|
|
|
— |
|
|
|
1,169 |
|
|
|
980 |
|
(Gain) Loss on disposals of property and equipment |
|
236 |
|
|
|
424 |
|
|
|
(490 |
) |
|
|
1,042 |
|
Amortization of debt issuance costs |
|
975 |
|
|
|
3,205 |
|
|
|
3,637 |
|
|
|
4,683 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,883 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Receivables, net |
|
12,939 |
|
|
|
233,044 |
|
|
|
14,002 |
|
|
|
215,814 |
|
Inventories, net |
|
7,762 |
|
|
|
(11,268 |
) |
|
|
(13,725 |
) |
|
|
9,868 |
|
Rental merchandise in service, net |
|
(5,936 |
) |
|
|
2,948 |
|
|
|
(10,644 |
) |
|
|
3,126 |
|
Other current assets |
|
(13,228 |
) |
|
|
3,546 |
|
|
|
(25,116 |
) |
|
|
(2,684 |
) |
Accounts payable |
|
1,227 |
|
|
|
7,194 |
|
|
|
(267 |
) |
|
|
21,665 |
|
Accrued expenses and other current liabilities |
|
(31,574 |
) |
|
|
26,050 |
|
|
|
(12,371 |
) |
|
|
80,561 |
|
Changes in other noncurrent liabilities |
|
31,258 |
|
|
|
688 |
|
|
|
8,540 |
|
|
|
(16,212 |
) |
Changes in other assets |
|
(152 |
) |
|
|
1,450 |
|
|
|
(4,031 |
) |
|
|
(9,482 |
) |
Other operating activities |
|
(148 |
) |
|
|
1,701 |
|
|
|
(220 |
) |
|
|
33 |
|
Net cash provided by operating activities |
|
30,927 |
|
|
|
295,588 |
|
|
|
64,229 |
|
|
|
471,788 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment and other |
|
(15,358 |
) |
|
|
(28,118 |
) |
|
|
(58,460 |
) |
|
|
(78,905 |
) |
Proceeds from disposals of property and equipment |
|
159 |
|
|
|
5,269 |
|
|
|
5,524 |
|
|
|
5,269 |
|
Proceeds from sale of equity investment |
|
867 |
|
|
|
— |
|
|
|
37,659 |
|
|
|
— |
|
Other investing activities |
|
36 |
|
|
|
— |
|
|
|
(4,540 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
(14,296 |
) |
|
|
(22,849 |
) |
|
|
(19,817 |
) |
|
|
(73,636 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from long-term borrowings |
|
74,000 |
|
|
|
— |
|
|
|
167,000 |
|
|
|
798,000 |
|
Payments of long-term borrowings |
|
(76,000 |
) |
|
|
(258,000 |
) |
|
|
(161,000 |
) |
|
|
(1,137,500 |
) |
Payments of financing lease obligations |
|
(8,866 |
) |
|
|
(8,036 |
) |
|
|
(34,496 |
) |
|
|
(30,608 |
) |
Net cash distributions to Parent |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,051 |
) |
Dividend payments |
|
— |
|
|
|
(4,602 |
) |
|
|
(13,822 |
) |
|
|
(13,801 |
) |
Debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(1,628 |
) |
|
|
(11,134 |
) |
Other financing activities |
|
(74 |
) |
|
|
(28 |
) |
|
|
(2,111 |
) |
|
|
(1,881 |
) |
Net cash provided by (used in) financing activities |
|
(10,940 |
) |
|
|
(270,666 |
) |
|
|
(46,057 |
) |
|
|
(402,975 |
) |
Effect of foreign exchange rates on cash and cash equivalents |
|
314 |
|
|
|
(161 |
) |
|
|
383 |
|
|
|
(218 |
) |
Increase (decrease) in cash and cash equivalents |
|
6,005 |
|
|
|
1,912 |
|
|
|
(1,262 |
) |
|
|
(5,041 |
) |
Cash and cash equivalents, beginning of period |
|
23,743 |
|
|
|
29,098 |
|
|
|
31,010 |
|
|
|
36,051 |
|
Cash and cash equivalents, end of period |
$ |
29,748 |
|
|
$ |
31,010 |
|
|
$ |
29,748 |
|
|
$ |
31,010 |
|
VESTIS CORPORATION |
||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||
(In thousands) |
||||||||||||||
|
Consolidated |
|
Consolidated |
|||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||
|
October 3, |
|
September 27, |
|
October 3, |
|
September 27, |
|||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
Net Income (Loss) |
$ |
(12,549 |
) |
|
$ |
(2,298 |
) |
|
$ |
(40,223 |
) |
|
$ |
20,970 |
Adjustments: |
|
|
|
|
|
|
|
|||||||
Depreciation and Amortization |
|
35,343 |
|
|
|
35,281 |
|
|
|
143,017 |
|
|
|
140,781 |
Provision (Benefit) for Income Taxes |
|
1,644 |
|
|
|
1,027 |
|
|
|
(4,083 |
) |
|
|
11,060 |
Interest Expense |
|
24,343 |
|
|
|
29,848 |
|
|
|
92,264 |
|
|
|
126,563 |
Share-Based Compensation |
|
556 |
|
|
|
3,033 |
|
|
|
11,565 |
|
|
|
16,336 |
Severance (1) |
|
6,309 |
|
|
|
3,741 |
|
|
|
18,636 |
|
|
|
4,442 |
Separation Related Charges (2) |
|
3,309 |
|
|
|
3,973 |
|
|
|
13,579 |
|
|
|
22,602 |
Securitization Fees |
|
3,495 |
|
|
|
— |
|
|
|
13,555 |
|
|
|
— |
Loss (Gain) on Sale of Equity Investment |
|
709 |
|
|
|
— |
|
|
|
2,909 |
|
|
|
— |
Third Party Debt Amendment Charges |
|
— |
|
|
|
— |
|
|
|
1,530 |
|
|
|
— |
Legal Reserves and Settlements |
|
(668 |
) |
|
|
962 |
|
|
|
2,532 |
|
|
|
4,518 |
Gains, Losses and Other(3) |
|
2,165 |
|
|
|
4,980 |
|
|
|
2,144 |
|
|
|
5,628 |
Adjusted EBITDA (Non-GAAP) |
$ |
64,656 |
|
|
$ |
80,547 |
|
|
$ |
257,425 |
|
|
$ |
352,900 |
Covenant Related Adjustments(4) |
|
3,600 |
|
|
|
— |
|
|
|
20,400 |
|
|
|
— |
Covenant Adjusted EBITDA (Non-GAAP) |
$ |
68,256 |
|
|
$ |
80,547 |
|
|
$ |
277,825 |
|
|
$ |
352,900 |
(1) Please refer to Note 2. Severance, in the Company’s Form 10-K for the year ended October 3, 2025. |
|
(2) Separation Related Charges include third-party expenses incurred in connection with the Company’s separation from Aramark on September 30, 2023, and the establishment of stand-alone public company operations. These costs primarily consist of rebranding initiatives, development of stand-alone technology infrastructure, and professional services. |
|
(3) Other includes certain costs or income items that are not individually material and do not relate to core business activities. |
|
(4) Includes a |
VESTIS CORPORATION |
|||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
|
Consolidated |
|
Consolidated |
||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
October 3, |
|
September 27, |
|
October 3, |
|
September 27, |
||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net Income (Loss) |
$ |
(12,549 |
) |
|
$ |
(2,298 |
) |
|
$ |
(40,223 |
) |
|
$ |
20,970 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization expense |
|
7,186 |
|
|
|
6,458 |
|
|
|
27,192 |
|
|
|
25,916 |
|
Share-Based Compensation |
|
556 |
|
|
|
3,033 |
|
|
|
11,565 |
|
|
|
16,336 |
|
Severance and Other Related Charges |
|
6,309 |
|
|
|
3,741 |
|
|
|
18,636 |
|
|
|
4,442 |
|
Separation Related Charges |
|
3,309 |
|
|
|
3,973 |
|
|
|
13,579 |
|
|
|
22,602 |
|
Loss on Sale of Equity Investment |
|
709 |
|
|
|
— |
|
|
|
2,909 |
|
|
|
— |
|
Third Party Debt Amendment Fees |
|
— |
|
|
|
— |
|
|
|
1,530 |
|
|
|
— |
|
Legal Reserves and Settlements |
|
(668 |
) |
|
|
962 |
|
|
|
2,532 |
|
|
|
4,518 |
|
Gains, Losses and Other(1) |
|
2,165 |
|
|
|
3,738 |
|
|
|
2,144 |
|
|
|
6,382 |
|
Tax Impact of Reconciling Items Above |
|
(2,950 |
) |
|
|
(5,100 |
) |
|
|
(7,380 |
) |
|
|
(18,900 |
) |
Adjusted Net Income (Loss) (Non-GAAP) |
$ |
4,067 |
|
|
$ |
14,507 |
|
|
$ |
32,484 |
|
|
$ |
82,266 |
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares outstanding |
|
131,840 |
|
|
|
131,566 |
|
|
|
131,751 |
|
|
|
131,506 |
|
Diluted weighted-average shares outstanding |
|
132,198 |
|
|
|
131,566 |
|
|
|
132,253 |
|
|
|
131,787 |
|
Basic (Loss) Earnings Per Share |
$ |
(0.10 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.31 |
) |
|
$ |
0.16 |
|
Diluted (Loss) Earnings Per Share |
$ |
(0.10 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.31 |
) |
|
$ |
0.16 |
|
Adjusted Basic (Loss) Earnings Per Share (Non-GAAP) |
$ |
0.03 |
|
|
$ |
0.11 |
|
|
$ |
0.25 |
|
|
$ |
0.63 |
|
Adjusted Diluted (Loss) Earnings Per Share (Non-GAAP) |
$ |
0.03 |
|
|
$ |
0.11 |
|
|
$ |
0.25 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Other includes certain costs or income items that are not individually material and do not relate to core business activities |
|||||||||||||||
VESTIS CORPORATION |
|||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||||||||
FREE CASH FLOW, FREE CASH FLOW TO ADJUSTED EBITDA RATIO, NET DEBT, AND NET LEVERAGE |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
Three Months Ended |
|
Fiscal year Ended |
||||||||||||
|
October 3, 2025 |
|
September 27, 2024 |
|
October 3, 2025 |
|
September 27, 2024 |
||||||||
Net cash provided by operating activities |
$ |
30,927 |
|
|
$ |
295,588 |
|
|
$ |
64,229 |
|
|
$ |
471,788 |
|
Purchases of property and equipment and other |
|
(15,358 |
) |
|
|
(28,118 |
) |
|
|
(58,460 |
) |
|
|
(78,905 |
) |
Free Cash Flow (Non-GAAP) |
$ |
15,569 |
|
|
$ |
267,470 |
|
|
$ |
5,769 |
|
|
$ |
392,883 |
|
|
As of |
||||||
|
October 3, 2025 |
|
September 27, 2024 |
||||
Total principal debt outstanding |
$ |
1,168,500 |
|
|
$ |
1,162,500 |
|
Letters of credit outstanding |
|
5,818 |
|
|
|
5,298 |
|
Finance lease obligations |
|
166,305 |
|
|
|
146,672 |
|
Less: Cash and cash equivalents |
|
(29,748 |
) |
|
|
(31,010 |
) |
Net Debt (Non-GAAP) |
$ |
1,310,875 |
|
|
$ |
1,283,460 |
|
Trailing Twelve Months Adjusted EBITDA (Non-GAAP) |
$ |
257,425 |
|
|
$ |
352,900 |
|
Covenant Related Adjustments (1) |
|
20,400 |
|
|
|
— |
|
Trailing Twelve Months Covenant Adjusted EBITDA (Non-GAAP) |
$ |
277,825 |
|
|
$ |
352,900 |
|
Net Leverage Ratio (Non-GAAP) (1) |
|
4.72 |
|
|
|
3.64 |
|
(1) Includes a |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251201219852/en/
Investor
Stefan Neely or Bill Seymour
Vallum Advisors
615-844-6248
ir@vestis.com
Media
Danielle Holcomb
470-716-0917
danielle.holcomb@vestis.com
Source: Vestis Corporation
