UniFirst Corporation (Form: 8-K)  

 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     
Date of Report (Date of Earliest Event Reported):   March 30, 2005

UniFirst Corporation
__________________________________________
(Exact name of registrant as specified in its charter)

     
Massachusetts 1-8504 04-2103460
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
68 Jonspin Road, Wilmington, Massachusetts   01887
_________________________________
(Address of principal executive offices)
  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   (978)658-8888

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:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


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Item 2.02. Results of Operations and Financial Condition.

On March 30, 2005, UniFirst Corporation issued a press release ("Press Release") announcing financial results for the second quarter and first half of fiscal 2005, which ended February 26, 2005. A copy of the Press Release is attached as Exhibit 99 to this Current Report and is incorporated herein by reference.

Such information, including the exhibits attached hereto, shall not be deemed filed for any purpose, including for purposes of, Section 18 of the Securities and Exchange Act of 1934 (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 on the Exchange Act, regardless of any general incorporation language in such filing.





Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit 99: Press release dated March 30, 2005






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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.

         
    UniFirst Corporation
          
March 30, 2005   By:   /s/ Ronald D. Croatti
       
        Name: Ronald D. Croatti
        Title: Chairman of the Board, Chief Executive Officer and President
         
    UniFirst Corporation
          
March 30, 2005   By:   /s/ John B. Bartlett
       
        Name: John B. Bartlett
        Title: Senior Vice President and Chief Financial Officer


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Exhibit Index


     
Exhibit No.   Description

 
99
  Press release of the Company dated March 30, 2005
EX-99

Exhibit 99

     
UniFirst Corporation
68 Jonspin Road
Wilmington, MA 01887-1086
Telephone 978-658-8888 Ext 520
Facsimile 978-988-0659
  News Release

contact: John B. Bartlett
Senior Vice President
jbartlett@unifirst.com

UNIFIRST ANNOUNCES RECORD FINANCIAL RESULTS

FOR SECOND QUARTER AND FIRST HALF OF FISCAL 2005

Wilmington, MA (March 30, 2005) — UniFirst Corporation (NYSE: UNF) today announced its revenues and earnings for the second quarter and first half of fiscal 2005, which ended February 26, 2005.

Second quarter net income was $10.1 million ($0.52 per diluted common share), a 52.7% percent increase from last year’s $6.6 million ($0.34 per diluted common share). Revenues for the second quarter of fiscal 2005 were $190.7 million, a 7.5% percent increase from $177.4 million in the same period a year ago.

For the first half of fiscal 2005, net income was $23.4 million ($1.21 per diluted common share), a 45.3% increase from last year’s $16.1 million ($0.84 per diluted common share). Revenues were $379.1 million, a 5.8% increase from $358.3 million for the first half of fiscal 2004.

The primary reason for the significant increase in net income in the second quarter and the first half of fiscal 2005 was a decrease in operating costs as a percentage of revenues. As a percentage of revenues, operating costs for the second quarter decreased 1.3 percentage points from 65.2% for fiscal 2004 to 63.9% for fiscal 2005 and decreased for the first half of the year by 1.6 percentage points from 64.4% for fiscal 2004 to 62.8% for fiscal 2005. This decrease was due to lower merchandise amortization for the locations acquired as part of the Textilease acquisition as well as from cost savings realized from the Company’s manufacturing operations in Mexico and lower industrial laundry production payroll costs as a percentage of revenues. These benefits were somewhat offset by higher energy costs associated with operating industrial laundries as well as in utilizing our fleet of delivery vehicles.

The Company also benefited from lower depreciation and intangible asset amortization expenses due to certain fixed assets and certain intangible assets becoming fully depreciated and amortized in fiscal 2004. In addition, interest expense has decreased during fiscal 2005 due to a reduction in the level of debt outstanding.

The Company will hold a conference call today at 4:00 PM (EST) 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 9,000 team partners who serve more than 175,000 customer locations in 46 states, Canada and Europe from 175 manufacturing, distribution and customer service facilities.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. This public announcement may contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties. The words “anticipate” and “should,” and other expressions that indicate future events and trends identify forward-looking statements. Actual future results may differ materially from those anticipated depending on a variety of factors, including, but not limited to, performance of acquisitions; economic and business changes; fluctuations in the cost of materials, fuel and labor; economic and other developments associated with the on-going war on terrorism; strikes and unemployment levels; demand and price for the Company’s products and services; improvement in under performing rental operations; and the outcome of pending and future litigation and environmental matters.

[Tables follow]

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UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)

                 
    February 26,   August 28,
(In thousands)   2005   2004 (a)
Assets
               
 
               
Current assets:
               
Cash and cash equivalents
  $ 5,598   $ 4,436
Receivables, net
  79,105   69,471
Inventories
  26,595   31,060
Rental merchandise in service
  65,774   60,544
Prepaid taxes and deferred tax assets
  4,184   2,753
Prepaid expenses
  3,588   1,857
 
               
Total current assets
  184,844   170,121
 
               
 
               
Property and equipment:
               
Land, buildings and leasehold improvements
  253,017   240,018
Machinery and equipment
  266,442   258,736
Motor vehicles
  74,478   70,048
 
               
 
  593,937   568,802
Less — accumulated depreciation
  294,141   280,012
 
               
 
  299,796   288,790
Goodwill
  186,462   180,685
Customer contracts and intangible assets, net
  57,600   57,873
Other assets
  3,101   3,353
 
               
 
  $ 731,803   $ 700,822
 
               
Liabilities and Shareholders’ Equity
               
 
               
Current liabilities:
               
Current maturities of long-term obligations
  $ 1,195   $ 986
Accounts payable
  36,770   33,754
Accrued liabilities
  73,639   72,824
Accrued and deferred income taxes
  6,572   5,611
 
               
Total current liabilities
  118,176   113,175
 
               
Long-term obligations, net of current maturities
  179,443   177,855
Deferred income taxes
  42,074   42,043
 
               
 
               
Shareholders’ equity:
               
Common stock
  946   928
Class B common stock
  976   993
Capital surplus
  13,339   13,138
Retained earnings
  375,318   353,196
Accumulated other comprehensive income (loss)
  1,531   (506 )
 
               
Total shareholders’ equity
  392,110   367,749
 
  $ 731,803   $ 700,822
 
               
(a) Condensed from audited financial statements
               

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UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)

                                 
    Twenty-six   Twenty-six   Thirteen   Thirteen
    weeks ended   weeks ended   weeks ended   weeks ended
    February 26,   February 28,   February 26,   February 28,
(In thousands, except per share data)   2005   2004   2005   2004
Revenues
  $ 379,118   $ 358,305   $ 190,684   $ 177,407
 
                               
Costs and expenses:
                               
Operating costs (1)
  237,955   230,801   121,922   115,713
Selling and administrative expenses (1)
  78,601   73,861   40,000   37,034
Depreciation and amortization
  21,730   22,727   11,067   11,699
 
  338,286   327,389   172,989   164,446
 
                               
Income from operations
  40,832   30,916   17,695   12,961
 
                               
Interest expense, net
  3,062   4,713   1,463   2,243
 
                               
Income before income taxes
  37,770   26,203   16,232   10,718
Provision for income taxes
  14,353   10,088   6,169   4,126
 
                               
Net income
  $ 23,417   $ 16,115   $ 10,063   $ 6,592
 
                               
 
                               
Weighted average number of shares outstanding:
                               
Basic-Common Stock
  9,369   9,015   9,456   9,022
Basic-Class B Common Stock
  9,843   10,172   9,759   10,168
Dilutive effect of common stock options
  84   62   100   63
 
                               
Diluted-Common Stock
  19,296   19,249   19,315   19,253
 
                               
 
                               
Net income per share:
                               
Basic-Common Stock
  $ 1.36   $ 0.94   $ 0.58   $ 0.38
Basic-Class B Common Stock
  1.09   0.75   0.47   0.31
Diluted-Common Stock
  1.21   0.84   0.52   0.34
 
                               
 
                               
Dividends per share:
                               
Common Stock
  $ 0.0750   $ 0.0750   $ 0.0375   $ 0.0375
Class B Common Stock
  0.0600   0.0600   0.0300   0.0300
 
                               
(1) Exclusive of depreciation and amortization
                       

3