UniFirst (NYSE: UNF) Q2 2026 results and pending Cintas buyout terms
Rhea-AI Filing Summary
UniFirst Corporation reported fiscal 2026 second-quarter revenue of $622.5 million, up 3.4% from $602.2 million a year earlier, led by organic growth in its Uniform & Facility Service Solutions segment. Operating income declined to $26.0 million, with operating margin slipping to 4.2% from 5.2% as the company increased planned investments in growth and digital transformation.
Net income was $20.5 million versus $24.5 million, and diluted EPS was $1.13 compared to $1.31. Adjusted EBITDA was $66.8 million, down from $68.9 million, and Adjusted EBITDA margin eased to 10.7% from 11.4%. Results included $3.0 million of Key Initiative ERP costs plus additional expenses for shareholder engagement, proxy matters tied to the proposed Cintas merger, and a legal employee matter.
Segment performance was mixed: Uniform & Facility Service Solutions revenue rose 3.2% with improved customer acquisition and retention but lower margins; First Aid & Safety Solutions revenue grew 12.2% yet remained loss-making; the Other (nuclear solutions) segment saw revenue decline 1.9% but maintained solid profitability. UniFirst ended the quarter with $157.5 million in cash, cash equivalents and short-term investments and no long-term debt, and continued paying a quarterly dividend of $0.365 per share.
The release also reiterates the previously announced definitive agreement under which Cintas will acquire UniFirst. Shareholders are expected to receive $155.00 in cash plus 0.7720 shares of Cintas stock for each UniFirst share, with closing targeted for the second half of calendar 2026, subject to shareholder and regulatory approvals and other customary conditions.
Positive
- None.
Negative
- Margins and earnings declined: Operating margin fell from 5.2% to 4.2%, Adjusted EBITDA margin from 11.4% to 10.7%, and diluted EPS decreased from $1.31 to $1.13, reflecting higher investment, deal-related, and legal costs.
Insights
Solid top-line growth but margins and earnings compressed by investment and deal-related costs.
UniFirst delivered modest Q2 revenue growth to $622.5M, up 3.4%, mainly from its core Uniform & Facility Service Solutions segment. However, operating income fell to $26.0M and operating margin declined to 4.2% as spending increased on growth and digital transformation.
Net income decreased to $20.5M and diluted EPS to $1.13. Adjusted EBITDA edged down to $66.8M with a 10.7% margin. Results were weighed by $3.0M of ERP "Key Initiative" costs plus $2.0M of shareholder and proxy expenses and $2.5M of legal costs tied to an employee matter.
The balance sheet remains conservative, with $157.5M in cash, cash equivalents and short-term investments and no long-term debt as of February 28, 2026. In parallel, the company highlights its pending acquisition by Cintas, offering UniFirst holders $155.00 in cash and 0.7720 Cintas shares per UniFirst share, with closing targeted for the second half of 2026 subject to approvals.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Key Initiative technical
enterprise resource planning technical
non-GAAP financial measures financial
definitive agreement regulatory
forward-looking statements regulatory
Earnings Snapshot
Due to the pending transaction with Cintas, UniFirst is no longer providing financial guidance or hosting quarterly conference calls.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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(Address of Principal Executive Offices) |
(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: (
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 1, 2026, UniFirst Corporation (the “Company”) issued a press release (“Press Release”) announcing financial results for the second quarter of fiscal 2026, which ended on February 28, 2026. A copy of the Press Release is attached as Exhibit 99 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02, including the exhibit attached hereto, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for any purpose, including for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number |
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Description |
99 |
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Press release of the Company dated April 1, 2026. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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UNIFIRST CORPORATION |
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Date: April 1, 2026 |
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By: |
/s/ Steven S. Sintros |
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Steven S. Sintros |
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President and Chief Executive Officer |
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By: |
/s/ Shane O’Connor |
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Shane O’Connor |
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Executive Vice President and Chief Financial Officer |
Exhibit 99
Investor Relations Contact
Shane O'Connor, Executive Vice President & CFO
UniFirst Corporation
978-658-8888
shane_oconnor@unifirst.com
UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF FISCAL 2026
Wilmington, MA – April 1, 2026 – UniFirst Corporation (NYSE: UNF) (“UniFirst” or the “Company”) today reported results for its fiscal 2026 second quarter ended February 28, 2026.
Second Quarter 2026 Consolidated Results
Steven Sintros, UniFirst President and Chief Executive Officer, said, “We delivered solid results in the second quarter as we continued to take meaningful actions to invest in growth and deliver operational efficiencies. Our differentiated, service-driven model continues to build loyalty amongst new and existing customers as they recognize our commitment to reliability, accountability and sustained relationships.”
Mr. Sintros continued, “Our accomplishments continue to be made possible by our thousands of Team Partners across the business. I’m thankful for their dedication to UniFirst and each other, which helps us win with customers every day.”
The Company's results for the second quarter of fiscal 2026 and 2025 included approximately $3.0 million and $1.9 million, respectively, of costs related to its enterprise resource planning project (“Key Initiative”), which is expected to enhance long-term growth, scalability, operating efficiency and profitability. In the second quarter of fiscal 2026 and 2025, these costs decreased:
UniFirst's results for the second quarter of fiscal 2026 were further impacted by (1) approximately $2.0 million in costs related to shareholder engagement and proxy-related matters in connection with the Company’s 2026 annual meeting of shareholders and the proposed merger with Cintas Corporation (“Cintas”), and (2) legal expenses related to an employee matter of $2.5 million (referred to collectively as the “Strategic and Employee Matters”).
As previously announced on March 11, 2026, UniFirst and Cintas have entered into a definitive agreement under which Cintas will acquire UniFirst. Under the terms of the agreement, UniFirst shareholders will receive $155.00 in cash and 0.7720 shares of Cintas stock for each UniFirst share they own. The transaction is expected to close in the second half of calendar 2026, subject to customary closing conditions, approval by UniFirst shareholders and the receipt of certain regulatory approvals.
Segment Reporting Results
Uniform & Facility Service Solutions
First Aid & Safety Solutions
Other
Balance Sheet and Capital Allocation
As previously announced, due to the pending transaction with Cintas, UniFirst is no longer providing financial guidance or hosting quarterly conference calls regarding our financial results.
About UniFirst Corporation
Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the Company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its five company-owned ISO-9001-certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For more information, contact UniFirst at 888.296.2740 or visit UniFirst.com.
Forward-Looking Statements Disclosure
This public announcement contains forward-looking statements within the meaning of the federal securities laws that reflect the Company's current views with respect to future events and financial performance, including statements regarding the transaction between UniFirst and Cintas (the “Transaction”). Forward-looking statements contained in this public announcement are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and may be identified by words such as “guidance,” “outlook,” “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” “strategy,” “objective,” “assume,” “strive,” “design,” “assumption,” “vision,” “approximate,” or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based upon our current
expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements.
The following Transaction-related factors, among others, could cause actual results to differ materially from those expressed in or implied by forward-looking statements: the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between Cintas and UniFirst; the outcome of any legal proceedings that may be instituted against Cintas or UniFirst; the possibility that the Transaction does not close when expected or at all because required regulatory, shareholder, or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that seeking or obtaining such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the benefits from the Transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Cintas and UniFirst operate; any failure to promptly and effectively integrate the businesses of Cintas and UniFirst; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Cintas’ or UniFirst’s customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the Transaction; the dilution caused by Cintas’ issuance of additional shares of its capital stock in connection with the Transaction; changes in the trading price of Cintas’ or UniFirst’s capital stock; and the diversion of management’s attention and time to the Transaction from ongoing business operations and opportunities
Additional factors include, but are not limited to, uncertainties caused by an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflicts between Russia and Ukraine and the United States and Iran and other disruption in the Middle East and their impact on our customers' businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances, uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses and the performance of such businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome of pending or future contingencies or claims, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the conflict between Russia and Ukraine and the United States and Iran, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of natural gas, electricity, fuel and labor or increases in such costs, the negative effect on our business from sharply depressed oil and natural gas prices, the continuing increase in domestic healthcare costs, increased workers' compensation claim costs, increased healthcare claim costs, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our nuclear business, political or other instability, supply chain disruption or infection among our employees in Mexico and Nicaragua where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate a new enterprise resource planning computer system, interruptions or failures of our information technology systems, including as a result of cyber-attacks, additional professional and internal costs necessary for compliance with any changes in or additional Securities and Exchange Commission (the “SEC”), New York Stock Exchange and accounting or other rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, the impact of U.S. and foreign trade policies and tariffs or other impositions on imported goods on our business, results of operations and financial condition, our ability to successfully implement our business strategies and processes, including our capital allocation strategies, our ability to successfully remediate the material weakness in internal control over financial reporting disclosed in our Annual Report on Form 10-K for the year ended August 30, 2025 and the other factors described under Part I, Item 1A. “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended August 30, 2025, Part II, Item 1A. “Risk Factors” and elsewhere in our subsequent Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made.
Consolidated Statements of Income
(Unaudited)
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Thirteen Weeks Ended |
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Twenty-Six Weeks Ended |
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(In thousands, except per share data) |
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February 28, 2026 |
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March 1, 2025 |
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February 28, 2026 |
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March 1, 2025 |
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Revenues |
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$ |
622,505 |
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$ |
602,219 |
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$ |
1,243,823 |
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$ |
1,207,127 |
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Operating expenses: |
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Cost of revenues (1) |
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403,686 |
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394,145 |
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796,715 |
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775,199 |
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Selling and administrative expenses (1) |
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157,413 |
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141,914 |
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305,219 |
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275,429 |
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Depreciation and amortization |
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35,392 |
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34,946 |
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70,567 |
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69,754 |
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Total operating expenses |
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596,491 |
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571,005 |
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1,172,501 |
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1,120,382 |
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Operating income |
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26,014 |
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31,214 |
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71,322 |
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86,745 |
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Other (income) expense: |
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Interest income, net |
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(1,576 |
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(2,213 |
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(3,505 |
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(4,908 |
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Other expense, net |
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250 |
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794 |
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509 |
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1,084 |
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Total other income, net |
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(1,326 |
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(1,419 |
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(2,996 |
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(3,824 |
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Income before income taxes |
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27,340 |
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32,633 |
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74,318 |
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90,569 |
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Provision for income taxes |
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6,856 |
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8,174 |
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19,471 |
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23,005 |
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Net income |
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$ |
20,484 |
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$ |
24,459 |
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$ |
54,847 |
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$ |
67,564 |
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Income per share – Basic: |
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Common Stock |
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$ |
1.18 |
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$ |
1.37 |
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$ |
3.15 |
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$ |
3.78 |
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Class B Common Stock |
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$ |
0.94 |
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$ |
1.10 |
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$ |
2.52 |
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$ |
3.02 |
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Income per share – Diluted: |
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Common Stock |
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$ |
1.13 |
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$ |
1.31 |
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$ |
3.02 |
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$ |
3.62 |
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Income allocated to – Basic: |
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Common Stock |
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$ |
17,133 |
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$ |
20,559 |
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$ |
45,887 |
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$ |
56,778 |
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Class B Common Stock |
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$ |
3,351 |
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$ |
3,900 |
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$ |
8,960 |
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$ |
10,786 |
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Income allocated to – Diluted: |
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Common Stock |
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$ |
20,484 |
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$ |
24,459 |
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$ |
54,847 |
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$ |
67,564 |
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Weighted average shares outstanding – Basic: |
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Common Stock |
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14,523 |
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15,009 |
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14,557 |
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15,011 |
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Class B Common Stock |
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3,551 |
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3,558 |
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3,551 |
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3,566 |
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Weighted average shares outstanding – Diluted: |
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Common Stock |
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18,143 |
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18,649 |
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18,159 |
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18,653 |
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Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands) |
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February 28, 2026 |
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August 30, 2025 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
151,794 |
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$ |
203,501 |
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Short-term investments |
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5,664 |
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5,672 |
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Receivables, net |
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291,580 |
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285,297 |
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Inventories |
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147,477 |
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145,197 |
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Rental merchandise in service |
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236,251 |
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227,720 |
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Prepaid taxes |
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7,185 |
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7,708 |
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Prepaid expenses and other current assets |
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63,135 |
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49,508 |
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Total current assets |
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903,086 |
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924,603 |
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Property, plant and equipment, net |
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848,054 |
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829,622 |
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Goodwill |
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669,996 |
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657,748 |
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Customer contracts and other intangible assets, net |
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95,790 |
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105,829 |
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Deferred income taxes |
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|
991 |
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|
977 |
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Operating lease right-of-use assets, net |
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77,804 |
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70,110 |
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Other assets |
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204,677 |
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189,266 |
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Total assets |
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$ |
2,800,398 |
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$ |
2,778,155 |
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Liabilities and shareholders’ equity |
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Current liabilities: |
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Accounts payable |
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$ |
92,089 |
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$ |
94,980 |
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Accrued liabilities |
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178,065 |
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|
176,903 |
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Accrued taxes |
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30 |
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|
674 |
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Operating lease liabilities, current |
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20,225 |
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|
17,846 |
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Total current liabilities |
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290,409 |
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|
290,403 |
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Long-term liabilities: |
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Accrued liabilities |
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|
129,862 |
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|
128,554 |
|
Accrued and deferred income taxes |
|
|
137,166 |
|
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|
135,648 |
|
Operating lease liabilities |
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|
59,669 |
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|
54,593 |
|
Total liabilities |
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617,106 |
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|
609,198 |
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Shareholders’ equity: |
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||
Common Stock |
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1,453 |
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|
|
1,468 |
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Class B Common Stock |
|
|
355 |
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|
355 |
|
Capital surplus |
|
|
109,755 |
|
|
|
109,107 |
|
Retained earnings |
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|
2,091,769 |
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|
2,079,812 |
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Accumulated other comprehensive loss |
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(20,040 |
) |
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(21,785 |
) |
Total shareholders’ equity |
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2,183,292 |
|
|
|
2,168,957 |
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Total liabilities and shareholders’ equity |
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$ |
2,800,398 |
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|
$ |
2,778,155 |
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Detail of Operating Results
(Unaudited)
|
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Thirteen Weeks Ended February 28, 2026 |
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Thirteen Weeks Ended March 1, 2025 |
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(In thousands, except percentages) |
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Uniform & Facility Service Solutions |
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First Aid & Safety Solutions |
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Other |
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Total |
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Uniform & Facility Service Solutions |
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First Aid & Safety Solutions |
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Other |
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Total |
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Revenues |
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$ |
568,808 |
|
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$ |
30,793 |
|
|
$ |
22,904 |
|
|
$ |
622,505 |
|
|
$ |
551,407 |
|
|
$ |
27,454 |
|
|
$ |
23,358 |
|
|
$ |
602,219 |
|
Revenue Growth % |
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|
3.2 |
% |
|
|
12.2 |
% |
|
|
-1.9 |
% |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (1), (2) |
|
$ |
24,875 |
|
|
$ |
(1,106 |
) |
|
$ |
2,245 |
|
|
$ |
26,014 |
|
|
$ |
30,172 |
|
|
$ |
(486 |
) |
|
$ |
1,528 |
|
|
$ |
31,214 |
|
Operating Margin |
|
|
4.4 |
% |
|
|
-3.6 |
% |
|
|
9.8 |
% |
|
|
4.2 |
% |
|
|
5.5 |
% |
|
|
-1.8 |
% |
|
|
6.5 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA (1), (2) |
|
$ |
63,265 |
|
|
$ |
314 |
|
|
$ |
3,235 |
|
|
$ |
66,814 |
|
|
$ |
65,994 |
|
|
$ |
490 |
|
|
$ |
2,434 |
|
|
$ |
68,918 |
|
Adjusted EBITDA Margin |
|
|
11.1 |
% |
|
|
1.0 |
% |
|
|
14.1 |
% |
|
|
10.7 |
% |
|
|
12.0 |
% |
|
|
1.8 |
% |
|
|
10.4 |
% |
|
|
11.4 |
% |
|
|
Twenty-Six Weeks Ended February 28, 2026 |
|
|
Twenty-Six Weeks Ended March 1, 2025 |
|
||||||||||||||||||||||||||
(In thousands, except percentages) |
|
Uniform & Facility Service Solutions |
|
|
First Aid & Safety Solutions |
|
|
Other |
|
|
Total |
|
|
Uniform & Facility Service Solutions |
|
|
First Aid & Safety Solutions |
|
|
Other |
|
|
Total |
|
||||||||
Revenues |
|
$ |
1,134,700 |
|
|
$ |
61,037 |
|
|
$ |
48,086 |
|
|
$ |
1,243,823 |
|
|
$ |
1,104,159 |
|
|
$ |
53,676 |
|
|
$ |
49,292 |
|
|
$ |
1,207,127 |
|
Revenue Growth % |
|
|
2.8 |
% |
|
|
13.7 |
% |
|
|
-2.4 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (3), (4) |
|
$ |
66,712 |
|
|
$ |
(1,508 |
) |
|
$ |
6,118 |
|
|
$ |
71,322 |
|
|
$ |
78,692 |
|
|
$ |
(145 |
) |
|
$ |
8,198 |
|
|
$ |
86,745 |
|
Operating Margin |
|
|
5.9 |
% |
|
|
-2.5 |
% |
|
|
12.7 |
% |
|
|
5.7 |
% |
|
|
7.1 |
% |
|
|
-0.3 |
% |
|
|
16.6 |
% |
|
|
7.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA (3), (4) |
|
$ |
140,461 |
|
|
$ |
1,114 |
|
|
$ |
8,050 |
|
|
$ |
149,625 |
|
|
$ |
151,097 |
|
|
$ |
1,743 |
|
|
$ |
10,038 |
|
|
$ |
162,878 |
|
Adjusted EBITDA Margin |
|
|
12.4 |
% |
|
|
1.8 |
% |
|
|
16.7 |
% |
|
|
12.0 |
% |
|
|
13.7 |
% |
|
|
3.2 |
% |
|
|
20.4 |
% |
|
|
13.5 |
% |
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands) |
|
February 28, 2026 |
|
|
March 1, 2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
54,847 |
|
|
$ |
67,564 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization (1) |
|
|
70,567 |
|
|
|
69,754 |
|
Share-based compensation |
|
|
6,261 |
|
|
|
6,034 |
|
Accretion on environmental contingencies |
|
|
702 |
|
|
|
640 |
|
Accretion on asset retirement obligations |
|
|
536 |
|
|
|
314 |
|
Deferred income taxes |
|
|
433 |
|
|
|
2,159 |
|
Loss on sale of property and equipment |
|
|
163 |
|
|
|
55 |
|
Other |
|
|
83 |
|
|
|
224 |
|
Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
Receivables, less reserves |
|
|
(5,915 |
) |
|
|
(4,878 |
) |
Inventories |
|
|
(1,551 |
) |
|
|
(2,242 |
) |
Rental merchandise in service |
|
|
(8,360 |
) |
|
|
10,233 |
|
Prepaid expenses and other current assets and Other assets |
|
|
(16,347 |
) |
|
|
(13,429 |
) |
Accounts payable |
|
|
(1,074 |
) |
|
|
(3,729 |
) |
Accrued liabilities |
|
|
(12,756 |
) |
|
|
(8,867 |
) |
Prepaid and accrued income taxes |
|
|
886 |
|
|
|
4,472 |
|
Net cash provided by operating activities |
|
|
88,475 |
|
|
|
128,304 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Acquisition of businesses, net of cash acquired |
|
|
(14,627 |
) |
|
|
(5,374 |
) |
Capital expenditures, including capitalization of software costs |
|
|
(77,284 |
) |
|
|
(66,086 |
) |
Purchases of investments |
|
|
(5,664 |
) |
|
|
(14,734 |
) |
Maturities of investments |
|
|
5,664 |
|
|
|
18,747 |
|
Proceeds from sale of assets |
|
|
362 |
|
|
|
222 |
|
Net cash used in investing activities |
|
|
(91,549 |
) |
|
|
(67,225 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from exercise of share-based awards |
|
|
4 |
|
|
|
4 |
|
Taxes withheld and paid related to net share settlement of equity awards |
|
|
(4,170 |
) |
|
|
(4,218 |
) |
Repurchase of Common Stock |
|
|
(32,736 |
) |
|
|
(12,528 |
) |
Payment of cash dividends |
|
|
(12,470 |
) |
|
|
(12,153 |
) |
Net cash used in financing activities |
|
|
(49,372 |
) |
|
|
(28,895 |
) |
|
|
|
|
|
|
|
||
Effect of exchange rate changes |
|
|
739 |
|
|
|
(1,581 |
) |
|
|
|
|
|
|
|
||
Net (decrease) increase in cash and cash equivalents |
|
|
(51,707 |
) |
|
|
30,603 |
|
Cash and cash equivalents at beginning of period |
|
|
203,501 |
|
|
|
161,571 |
|
Cash and cash equivalents at end of period |
|
$ |
151,794 |
|
|
$ |
192,174 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures
The Company reports its consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). To supplement the Company’s consolidated financial results in this press release, the Company also presents Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. The Company defines Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, further adjusted for share-based compensation expense and other items impacting the comparability of the Company’s underlying operating performance between periods. Adjusted EBITDA margin is defined as Adjusted EBITDA for a period divided by revenue for the same period.
The Company believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the Company and its segments to both management and investors. In addition, by excluding certain items, these non-GAAP financial measures enable management and investors to further evaluate the underlying operating performance of the Company.
Supplemental reconciliations of the Company’s consolidated net income on a GAAP basis to Adjusted EBITDA and Adjusted EBITDA margin are presented in the following table. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures, which are provided below. Adjusted EBITDA and Adjusted EBITDA margin should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
The Company does not allocate its provision for income taxes to its business segments and as a result, presents it in a separate column in the following tables.
|
Thirteen Weeks Ended February 28, 2026 |
|
||||||||||||||||||
(In thousands, except percentages) |
|
Uniform & Facility Service Solutions |
|
|
First Aid & Safety Solutions |
|
|
Other |
|
|
Unallocated Adjustments |
|
|
Total |
|
|||||
Revenue |
|
$ |
568,808 |
|
|
$ |
30,793 |
|
|
$ |
22,904 |
|
|
$ |
— |
|
|
$ |
622,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
26,201 |
|
|
$ |
(1,106 |
) |
|
$ |
2,245 |
|
|
$ |
(6,856 |
) |
|
$ |
20,484 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,856 |
|
|
|
6,856 |
|
Interest income, net |
|
|
(1,576 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,576 |
) |
Depreciation and amortization |
|
|
33,187 |
|
|
|
1,387 |
|
|
|
818 |
|
|
|
— |
|
|
|
35,392 |
|
Share-based compensation expense |
|
|
3,469 |
|
|
|
33 |
|
|
|
172 |
|
|
|
— |
|
|
|
3,674 |
|
Non-operating adjustments (1) |
|
|
1,984 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,984 |
|
Adjusted EBITDA |
|
$ |
63,265 |
|
|
$ |
314 |
|
|
$ |
3,235 |
|
|
$ |
— |
|
|
$ |
66,814 |
|
Adjusted EBITDA Margin |
|
|
11.1 |
% |
|
|
1.0 |
% |
|
|
14.1 |
% |
|
|
|
|
|
10.7 |
% |
|
|
Thirteen Weeks Ended March 1, 2025 |
|
||||||||||||||||||
(In thousands, except percentages) |
|
Uniform & Facility Service Solutions |
|
|
First Aid & Safety Solutions |
|
|
Other |
|
|
Unallocated Adjustments |
|
|
Total |
|
|||||
Revenue |
|
$ |
551,407 |
|
|
$ |
27,454 |
|
|
$ |
23,358 |
|
|
$ |
— |
|
|
$ |
602,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
31,591 |
|
|
$ |
(486 |
) |
|
$ |
1,528 |
|
|
$ |
(8,174 |
) |
|
$ |
24,459 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,174 |
|
|
|
8,174 |
|
Interest income, net |
|
|
(2,213 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,213 |
) |
Depreciation and amortization |
|
|
33,234 |
|
|
|
947 |
|
|
|
765 |
|
|
|
— |
|
|
|
34,946 |
|
Share-based compensation expense |
|
|
3,028 |
|
|
|
29 |
|
|
|
141 |
|
|
|
— |
|
|
|
3,198 |
|
Executive transaction costs (2) |
|
|
354 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
354 |
|
Adjusted EBITDA |
|
$ |
65,994 |
|
|
$ |
490 |
|
|
$ |
2,434 |
|
|
$ |
— |
|
|
$ |
68,918 |
|
Adjusted EBITDA Margin |
|
|
12.0 |
% |
|
|
1.8 |
% |
|
|
10.4 |
% |
|
|
|
|
|
11.4 |
% |
|
|
Twenty-Six Weeks Ended February 28, 2026 |
|
||||||||||||||||||
(In thousands, except percentages) |
|
Uniform & Facility Service Solutions |
|
|
First Aid & Safety Solutions |
|
|
Other |
|
|
Unallocated Adjustments |
|
|
Total |
|
|||||
Revenue |
|
$ |
1,134,700 |
|
|
$ |
61,037 |
|
|
$ |
48,086 |
|
|
$ |
— |
|
|
$ |
1,243,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
69,708 |
|
|
$ |
(1,508 |
) |
|
$ |
6,118 |
|
|
$ |
(19,471 |
) |
|
$ |
54,847 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,471 |
|
|
|
19,471 |
|
Interest income, net |
|
|
(3,505 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,505 |
) |
Depreciation and amortization |
|
|
66,397 |
|
|
|
2,558 |
|
|
|
1,612 |
|
|
|
— |
|
|
|
70,567 |
|
Share-based compensation expense |
|
|
5,877 |
|
|
|
64 |
|
|
|
320 |
|
|
|
— |
|
|
|
6,261 |
|
Non-operating adjustments (3) |
|
|
1,984 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,984 |
|
Adjusted EBITDA |
|
$ |
140,461 |
|
|
$ |
1,114 |
|
|
$ |
8,050 |
|
|
$ |
— |
|
|
$ |
149,625 |
|
Adjusted EBITDA Margin |
|
|
12.4 |
% |
|
|
1.8 |
% |
|
|
16.7 |
% |
|
|
|
|
|
12.0 |
% |
|
|
Twenty-Six Weeks Ended March 1, 2025 |
|
||||||||||||||||||
(In thousands, except percentages) |
|
Uniform & Facility Service Solutions |
|
|
First Aid & Safety Solutions |
|
|
Other |
|
|
Unallocated Adjustments |
|
|
Total |
|
|||||
Revenue |
|
$ |
1,104,159 |
|
|
$ |
53,676 |
|
|
$ |
49,292 |
|
|
$ |
— |
|
|
$ |
1,207,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
82,516 |
|
|
$ |
(145 |
) |
|
$ |
8,198 |
|
|
$ |
(23,005 |
) |
|
$ |
67,564 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,005 |
|
|
|
23,005 |
|
Interest income, net |
|
|
(4,908 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,908 |
) |
Depreciation and amortization |
|
|
66,344 |
|
|
|
1,832 |
|
|
|
1,578 |
|
|
|
— |
|
|
|
69,754 |
|
Share-based compensation expense |
|
|
5,716 |
|
|
|
56 |
|
|
|
262 |
|
|
|
— |
|
|
|
6,034 |
|
Executive transaction costs (4) |
|
|
1,429 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,429 |
|
Adjusted EBITDA |
|
$ |
151,097 |
|
|
$ |
1,743 |
|
|
$ |
10,038 |
|
|
$ |
— |
|
|
$ |
162,878 |
|
Adjusted EBITDA Margin |
|
|
13.7 |
% |
|
|
3.2 |
% |
|
|
20.4 |
% |
|
|
|
|
|
13.5 |
% |
|