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) |
Registrants 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))
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
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
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Name: Ronald D. Croatti | ||||
Title: Chairman of the Board, Chief Executive Officer and President |
UniFirst Corporation | ||||
March 30, 2005 | By: |
/s/ John B. Bartlett
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Name: John B. Bartlett | ||||
Title: Senior Vice President and Chief Financial Officer |
Exhibit Index
Exhibit No. | Description | |
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99
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Press release of the Company dated March 30, 2005 |
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 years $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 years $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 Companys 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 Companys 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 Companys products and services; improvement in under performing rental operations; and the outcome of pending and future litigation and environmental matters.
[Tables follow]
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 |
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: |
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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 |