1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 1-8504 A. Full title of the plan: UNIFIRST CORPORATION PROFIT SHARING PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: UNIFIRST CORPORATION 68 Jonspin Road Wilmington, MA 01887 2 A. Financial Statements: Audited financial statements of UniFirst Corporation Profit Sharing Plan. 1. Report of Independent Public Accountants 2. Statements of Net Assets Available for Benefits 3. Statements of Changes in Net Assets Available for Benefits 4. Notes to Financial Statements 5. Supplementary Information: Schedule I - Schedule of Assets Held for Investment Purposes Schedule II - Schedule of Reportable Transactions B. Exhibits: 1. Exhibit 23: Consent of Arthur Andersen LLP, Independent Public Accountants. 3 ARTHUR ANDERSEN LLP UNIFIRST CORPORATION PROFIT SHARING PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1994 AND 1993 TOGETHER WITH AUDITOR'S REPORT 4 ARTHUR ANDERSEN LLP REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Trustees of The UniFirst Corporation Profit Sharing Plan: We have audited the accompanying statements of net assets available for benefits of the UniFirst Corporation Profit Sharing Plan as of December 31, 1994 and 1993, and the related statement of changes in net assets available for benefits for the year ended December 31, 1994. These financial statements and the schedules referred to below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 1994 and 1993, and the changes in its net assets available for benefits for the year ended December 31, 1994, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. /s/ Arthur Andersen LLP Boston, Massachusetts May 19, 1995 5 UNIFIRST CORPORATION PROFIT SHARING PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS See accompanying notes to financial statements.
DECEMBER 31, DECEMBER 31, 1994 1993 ASSETS: Investments, at fair market value: Bank cash management trust $ - $ 23,162,832 Common stocks - 7,470,165 Mutual funds 23,687,611 6,031,764 Real Estate 1,542,800 2,358,457 Member loans 2,411,637 2,103,438 Short-term investments 13,548,104 2,652,267 - ------------------------------------------------------------------------------------------------------------- 41,190,152 43,778,923 - ------------------------------------------------------------------------------------------------------------- Employer contribution receivable 3,200,000 - Cash and cash equivalents 1,048,334 - Other assets 6,333 23,911 - ------------------------------------------------------------------------------------------------------------- 4,254,667 23,911 - ------------------------------------------------------------------------------------------------------------- 45,444,819 43,802,834 - ------------------------------------------------------------------------------------------------------------- LIABILITIES: Accounts payable and accrued liabilities 401 145,660 - ------------------------------------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS $ 45,444,418 $ 43,657,174 - ------------------------------------------------------------------------------------------------------------- 6 UNIFIRST CORPORATION PROFIT SHARING PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED See accompanying notes to financial statements.
DECEMBER 31, 1994 NET ASSETS AVAILABLE FOR BENEFITS, beginning of year $ 43,657,174 - ------------------------------------------------------------------------------------------------------------- Investments income, net of expenses: Interest and dividends 2,387,846 Net realized and unrealized losses (2,444,127) Other 49,224 - ------------------------------------------------------------------------------------------------------------- (7,057) - ------------------------------------------------------------------------------------------------------------- Contributions: Employer 3,200,000 Members 1,828,581 - ------------------------------------------------------------------------------------------------------------- 5,028,581 - ------------------------------------------------------------------------------------------------------------- TOTAL ADDITIONS 5,021,524 - ------------------------------------------------------------------------------------------------------------- Benefits paid to members 3,208,563 Administrative expenses 25,717 - -------------------------------------------------------------------------------------------------------------- TOTAL DEDUCTIONS 3,234,280 - -------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS, end of year $ 45,444,418 - -------------------------------------------------------------------------------------------------------------- 7 UNIFIRST CORPORATION PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The accompanying financial statements are prepared using the accrual basis of accounting with all assets of the UniFirst Corporation Profit Sharing Plan ("the Plan") stated at fair market value. Fair market value of real estate is based on independent appraisals. (b) Federal Income Taxes On July 28, 1994, the Internal Revenue Service issued a favorable determination letter that the Plan, as restated to qualify under the provisions of the Tax Reform Act of 1986, continues to qualify in form under Section 401 of the Internal Revenue Code ("Code"). The Trust which holds Plan assets accordingly continues to be qualified for exempt status under Code Section 501(a). UniFirst Corporation, the Plan sponsor, believes that operations of the Plan are in compliance with its terms, so that all qualification requirements of the Code, including requirements with respect to the employee deferral feature of Code Section 401(k), are being satisfied. See Note 5. Due to the qualified status of the Plan and its related Trust under Code Sections 401 and 501 respectively, members of the Plan are not taxed currently when amounts, including UniFirst contributions, member salary deferrals, forfeitures from non-vested members, and investment gains, are allocated to their Plan accounts. Similarly, realized investment gains of Plan assets are not taxable to the Trust. Members who receive distributions are subject to special tax treatment on distributions pursuant to Code Sections 72 and 401. (c) Administrative Expenses It is the current policy of UniFirst Corporation to assume certain administrative costs of the Plan. 2. PLAN DESCRIPTION (a) General Provisions The Plan covers all full-time employees not covered under a collective bargaining agreement. Employees become eligible to participate in the Plan on the January 1st which is at least six months after their original date of hire. 8 UNIFIRST CORPORATION PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 2. PLAN DESCRIPTION (CONTINUED) (a) General Provisions (continued) The Plan is administered by two Trustees who are appointed by the Board of Directors of UniFirst Corporation. The Trustees have adopted the policy of using professional investment advisors, whenever possible, to select Plan assets and make investment decisions. (b) Employer Contribution The amount of the annual contribution made by UniFirst Corporation to the Plan is determined annually by the Board of Directors of the Company, but may not exceed the maximum allowable under the Internal Revenue Code. (c) Member Contributions Member contributions through compensation reduction are allowed. The amount of compensation reduction is subject to certain limits in effect under Section 401(k) of the Internal Revenue Code. (d) Members' Accounts and Vesting Members' non-Section 401(k) account balances become 100% vested after the fifth year of service. In the event of death, retirement or permanent disability, any member's account becomes fully vested. Members' Section 401(k) balances vest immediately. Annual employer contributions and forfeitures of unvested amounts from terminating members are allocated to members' account balances based on members' covered compensation. Income from investments, realized gains and losses, and unrealized market appreciation or depreciation of investments are allocated to members' account balances based on the amount of the individual members' balances during the Plan year. (e) Payment of Benefits On retirement, death, disability, or termination of service, a participant may elect to receive a lump sum distribution equal to their vested account balance, a life annuity, or an installment payout subject to certain Plan provisions. 9 UNIFIRST CORPORATION PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 2. PLAN DESCRIPTION (CONTINUED) (f) Loans to Plan Members The Plan allows for loans to members up to the lesser of $50,000 or 50% of the member's vested account balance with a limitation based upon an employee's compensation. (g) Termination of Plan In the event of termination of the Plan, the members and beneficiaries of deceased members shall have a fully vested interest in the amount credited to their respective accounts at the time of such termination. 3. SIGNIFICANT INVESTMENTS The fair market value of additional significant investments that represents 5% or more of the Plan's net assets not already specifically identified in these financial statements at December 31, 1994 and 1993 is as follows:
1994 1993 ---- ---- Bank Cash Management Trust: -------------------------- First Union Funds Fixed-Income Portfolio - $ 5,695,611 First Union Funds Managed Bond Portfolio - 5,762,399 First Union Funds Value Portfolio - 4,304,803 Stable Investment Fund - 5,623,671 Other - 1,776,348 - ------------------------------------------------------------------------------------------------------- Total Bank Cash Management Trust - $ 23,162,832 - ------------------------------------------------------------------------------------------------------- 10 UNIFIRST CORPORATION PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 3. SIGNIFICANT INVESTMENTS (CONTINUED)
1994 1993 ---- ---- Mutual Funds: ------------ Vanguard Fixed Income Securities Fund (Short-Term Federal Portfolio) $ - $ 6,031,764 Merrill Lynch Global Allocation Fund 7,181,598 - Merrill Lynch Capital Fund 7,224,556 - Merrill Lynch Basic Value Fund 7,463,944 - Merrill Lynch Special Value Fund 1,817,513 - - ------------------------------------------------------------------------------------------------------------- Total Mutual Funds $ 23,687,611 $ 6,031,764 - ------------------------------------------------------------------------------------------------------------- Real Estate Located in Texas: ---------------------------- Houston $ 865,000 $ 1,000,000 San Antonio, Vicinity of the University of Texas 67,200 447,057 Beaumont, The Crossing Center 397,600 406,400 New Braunfels - 327,000 San Antonio, Bulverde Road and Smithson Valley Road 213,000 178,000 - ------------------------------------------------------------------------------------------------------------- Total Real Estate Located in Texas $ 1,542,800 $ 2,358,457 - ------------------------------------------------------------------------------------------------------------- Short-Term Investments: ---------------------- Fidelity USA Account $ 7,010 $ 2,328,853 Merrill Lynch Retirement Preservation Trust 13,541,005 - Other 89 323,414 - ------------------------------------------------------------------------------------------------------------- Total Short-Term Investments $ 13,548,104 $ 2,652,267 - ------------------------------------------------------------------------------------------------------------- 11 UNIFIRST CORPORATION PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1994 4. NET REALIZED AND UNREALIZED LOSSES During the year ended December 31, 1994, the Plan's investments, including investments bought, sold and held during the year, decreased in value as follows: 5. SUBSEQUENT EVENT Effective January 1, 1995, the Plan was restated. Among other things, the restated Plan now permits participants to self-direct the investment of all their 401(k) employee contribution account, one-half of their employer contribution account, and all of their rollover accounts (if any). Participants can select among six different Merrill Lynch investment funds and are also permitted to invest in UniFirst common stock.
1994 ---- BANK CASH MANAGEMENT TRUST $ (790,760) COMMON STOCKS (62,839) MUTUAL FUNDS (1,406,512) REAL ESTATE (169,124) OTHER ASSETS (14,892) - ------------------------------------------------------------------------------------------------------------------- $ (2,444,127) - ------------------------------------------------------------------------------------------------------------------- 12 UNIFIRST CORPORATION PROFIT SHARING PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1994 * Represents a party-in-interest
Fair Market Cost Value ---- ----- Mutual Funds: * Merrill Lynch Global Allocation Fund $ 7,631,973 $ 7,181,598 * Merrill Lynch Capital Fund 7,631,973 7,224,556 * Merrill Lynch Basic Value Fund 7,631,973 7,463,944 * Merrill Lynch Special Value Fund 1,907,991 1,817,513 - ------------------------------------------------------------------------------------------------------------ Total Mutual Funds 24,803,910 23,687,611 - ------------------------------------------------------------------------------------------------------------ Real Estate: Houston 3,737,438 865,000 San Antonio, Vicinity of the University of Texas 105,510 67,200 Beaumont, The Crossing Center 396,096 397,600 San Antonio, Bulverde Road and Smithson Valley Road 649,118 213,000 - ------------------------------------------------------------------------------------------------------------ Total Real Estate 4,888,162 1,542,800 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ *Member Loans 2,411,637 2,411,637 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ Short-Term Investments: * Merrill Lynch Retirement Reservation Trust 13,541,005 13,541,005 Fidelity USA Account 7,010 7,010 Short-Term Investments 89 89 - ------------------------------------------------------------------------------------------------------------ Total Short-Term Investments 13,548,104 13,548,104 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ TOTAL INVESTMENTS $ 45,651,813 $ 41,190,152 - ------------------------------------------------------------------------------------------------------------ 13 - ------------------------------------------------------------------------------- UNIFIRST CORPORATION PROFIT SHARING PLAN Item 27(d)-SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1994
Identity of Party Description Number of Units Purchase Involved of Asset Purchases Purchased Price -------- -------- --------- --------- ----- Fidelity Investments USA Account 101 4,005,947 $4,005,947 * First Union Cash Management Temporary Investments Trust Valiant General Fund 1 23,132,008 23,132,008 * First Union Cash Management Common Trust Fund-Money Market Trust Stable Investment Fund 1 9,919 174,200 * First Union Cash Management Mutual Funds-Fixed Taxable Trust First Union Funds Managed Bond 19 33,885 336,052 * First Union Cash Management Mutual Funds-Fixed Taxable Trust First Union Funds Fixed Income Portfolio Trust 20 40,330 406,704 * First Union Cash Management Mutual Funds-Equity Trust First Union Funds Value Portfolio 13 6,375 112,801 ** * First Union Cash Management Mutual Funds-Equity Trust First Union Funds Value Portfolio - - - Vanguard Vanguard Fixed Income Securities Fund 11 24,422 244,919 William Blair William Blair Ready Reserves Fund - - - William Blair William Blair Ready Reserves Fund - - - William Blair William Blair Ready Reserves Fund 82 9,299,754 9,299,754 ** * Represents a Party-in-interest transaction. ** This series of transactions also includes any single reportable transactions. See accompanying notes to financial statements
Value of Asset on Identity of Party Number of Units Selling Cost of Transaction Net Gain Involved Sales Sold Price Asset Date (Loss) -------- ----- ---- ----- ----- ---- ------ Fidelity Investments 873 6,327,791 $6,327,791 $6,327,791 $6,327,791 $ - * First Union Cash Management Trust 1 23,132,097 23,132,097 23,132,097 23,132,097 - * First Union Cash Management Trust 1 331,798 5,980,727 4,217,817 5,797,871 182,856 * First Union Cash Management Trust 1 584,783 5,532,051 5,907,417 6,098,451 (566,400) * First Union Cash Management Trust 1 586,410 5,676,444 5,947,919 6,102,315 (425,871) * First Union Cash Management Trust 2 250,550 4,435,801 4,141,082 4,417,604 18,197 * First Union Cash Management Trust 1 235,294 4,164,701 3,889,386 4,148,638 16,063 Vanguard 1 607,765 5,986,485 6,261,680 6,276,683 (290,198) William Blair 1 3,328,807 3,328,807 3,328,807 3,328,807 - William Blair 1 2,361,843 2,361,843 2,361,843 2,361,843 - William Blair 26 9,528,892 9,528,892 9,528,892 9,528,892 - Schedule 2 Plan #001 EIN-04-2103460 14
Identity of Party Description Number of Units Purchase Involved of Asset Purchases Purchased Price -------- -------- --------- --------- ----- * Merrill Lynch Merrill Lynch Retirement Preservation Trust 1 8,104,110 8,104,110 * Merrill Lynch Merrill Lynch Retirement Preservation Trust ** 7 13,541,005 13,541,005 * Merrill Lynch Merrill Lynch Global Allocation Fund 1 357,600 4,630,920 * Merrill Lynch Merrill Lynch Global Allocation Fund ** 8 587,212 7,631,973 * Merrill Lynch Merrill Lynch Capital Fund 1 171,199 4,630,920 * Merrill Lynch Merrill Lynch Capital Fund ** 8 281,111 7,631,973 * Merrill Lynch Merrill Lynch Basic Value Fund 1 203,826 4,630,920 * Merrill Lynch Merrill Lynch Basic Value Fund ** 8 333,957 7,631,973 See accompanying notes to financial statements.
Value of Asset on Identity of Party Description Number of Units Selling Cost of Transaction Net Gain Involved of Asset Sales Sold Price Asset Date (Loss) -------- -------- ----- ----- ----- ----- ---- ------ * Merrill Lynch Merrill Lynch Retirement Preservation Trust - - - - - - * Merrill Lynch Merrill Lynch Retirement Preservation Trust - - - - - - * Merrill Lynch Merrill Lynch Global Allocation Fund - - - - - - * Merrill Lynch Merrill Lynch Global Allocation Fund - - - - - - * Merrill Lynch Merrill Lynch Capital Fund - - - - - - * Merrill Lynch Merrill Lynch Capital Fund - - - - - - * Merrill Lynch Merrill Lynch Basic Value Fund - - - - - - * Merrill Lynch Merrill Lynch Basic Value Fund - - - - - - 15 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees of the UniFirst Corporation Profit Sharing Plan have duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized. UNIFIRST CORPORATION PROFIT SHARING PLAN Date: June 30, 1995 By: /s/ RONALD D. CROATTI ----------------------------------- Ronald D. Croatti, Trustee By: /s/ JOHN B. BARTLETT ----------------------------------- John B. Bartlett, Trustee
1 EXHIBIT 23 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference in the Registration Statement dated June 30, 1995 filed on Form S-8 of our report dated May 19, 1995 included in UniFirst Corporation Profit Sharing Plan's Form 11-K for the year ended December 31, 1994 and to all references to our Firm included in the Registration Statement dated June 30, 1995. Arthur Andersen LLP Boston, Massachusetts June 30, 1995