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) April 2, 2003 UNIFIRST CORPORATION ----------------------------- (Exact Name of Registrant as Specified in Charter) Massachusetts 1-8504 04-2103460 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) 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 --------------
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits EXHIBIT NO. DESCRIPTION ----------- ----------- 99.1 Press release of the Company dated April 2, 2003 Item 9. Regulation FD Disclosure This Form 8-K is being furnished to report information pursuant to Item 12 - - Results of Operations and Financial Conditions in accordance with the interim guidance provided by the SEC pursuant to SEC Release No. 33-8216. On April 2, 2003, UniFirst Corporation (the "Company") issued a press release ("Press Release") announcing second quarter and first half of fiscal 2003 financial results. A copy of the Press Release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNIFIRST CORPORATION Date: April 2, 2003 By: /s/ Ronald D. Croatti -------------------------------------- Name: Ronald D. Croatti Title: Chairman of the Board, Chief Executive Officer and President By: /s/ John B. Bartlett -------------------------------------- Name: John B. Bartlett Title: Senior Vice President and Chief Financial Officer
EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press release of the Company April 2, 2003
EXHIBIT NO. 99.1 UNIFIRST CORPORATION NEWS RELEASE 68 Jonspin Road Wilmington, MA 01887-1086 contact: John B. Bartlett Telephone 978-658-8888 Ext 520 Senior Vice President Facsimile 978-988-0659 jbartlett@unifirst.com [UNIFIRST LOGO] UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER AND FIRST HALF OF FISCAL 2003 Wilmington, MA (April 2, 2003) -- UniFirst Corporation (NYSE: UNF) today announced revenues and earnings for the second quarter and first half of fiscal 2003, which ended March 1, 2003. Revenues for the second quarter of fiscal 2003, which had thirteen weeks, were $146.4 million, a 3.4 percent decrease from $151.5 million in the fourteen week period a year ago. On a comparative thirteen week basis revenues were up 4.1 percent for the second quarter of fiscal 2003. Second quarter net income was $3.8 million, or $0.20 per basic share, a 26.8 percent decrease from last year's $5.2 million, or $0.27 per basic share. For the first half of fiscal 2003, which had twenty-six weeks, revenues were $295.6 million, a 0.5 percent increase from $294.1 million for the first half of fiscal 2002, which had twenty-seven weeks. On a comparative twenty-six week basis revenues were up 4.4 percent for the first half of fiscal 2003. Income before cumulative effect of accounting change was $12.4 million, or $0.65 per basic share, a 2.8 percent decrease from last year's $12.8 million, or $0.67 per basic share. Effective with the beginning of fiscal 2003 the Company adopted Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" ("SFAS No. 143"). This new accounting standard requires that liabilities be recorded for the estimated costs of retiring long lived assets at the end of their service lives. The adoption of SFAS No. 143 resulted in a cumulative charge, net of tax, of $2.2 million, or $(0.12) per share. Therefore net income for the first half of fiscal 2003 was $10.2 million, or $0.53 per basic share, a 20.3 percent decrease from last year's $12.8 million, or $0.67 per basic share. "Even though coming into the year, we knew our business was facing considerable uncertainty resulting from general economic conditions, we're still disappointed with our second quarter", said UniFirst's President and Chief Executive Officer, Ronald D. Croatti. "As we recently announced, the convergence of a number of economic and marketplace negatives worked to impair performance. Continuing job losses in several industry sectors that are traditional users of our service caused account shrinkage. The severe winter in many parts of the country, combined with steady petroleum product price increases, impacted our fuel and energy costs. We also continued to see upward creep in overall healthcare
expenses. The combination of these and other less significant cost increases cut into earnings." Despite better-than-expected success in selling new business, the Company continued to be impacted by current customer losses, with a net result of limited internal growth. Increased sales and marketing costs helped us obtain new business installations, but at the same time, lower cost, higher profit current account volume slipped, resulting in additional profit erosion. "The combined effect of all factors produced the earnings per share shortfall", said Mr. Croatti. Management continues to stress the business's strong fundamentals. But to deal with ongoing economic uncertainty and the prevailing soft market conditions, the Company will be exercising even more stringent cost controls and evaluating areas where possible restructuring can produce the most positive effects. "No staffing reductions are planned at the present time", added Mr. Croatti, "but we have instituted a strict hiring freeze and are undertaking a comprehensive evaluation of present manpower utilization to see if there are areas where cuts might be beneficial." The Company will hold a conference call today at 4:00 PM (EST) to discuss its quarterly and year to date financial results, business highlights and outlook. A simultaneous live webcast of the call will be available over the Internet, and replays of the webcast will be available until April 24, 2003. The webcast can be accessed at www.unifirst.com. UniFirst is one of the largest providers of workplace uniforms and protective clothing in North America. The Company employs over 7,800 team partners who serve more than 150,000 customer locations in 46 states, Canada and Europe from 144 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 war with Iraq and 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]
UNIFIRST CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Twenty-six Twenty-seven Thirteen Fourteen weeks ended weeks ended weeks ended weeks ended (In thousands, except per share data) March 1, March 2, March 1, March 2, 2003 2002 2003 2002 - -------------------------------------------------------------------------------------------------------- Revenues $ 295,604 $ 294,148 $ 146,425 $ 151,523 - -------------------------------------------------------------------------------------------------------- Costs and expenses: Operating costs 182,814 180,904 94,524 94,211 Selling and administrative expenses 71,877 68,813 35,578 36,118 Depreciation and amortization 19,688 18,508 9,804 9,360 - -------------------------------------------------------------------------------------------------------- 274,379 268,225 139,906 139,689 - -------------------------------------------------------------------------------------------------------- Income from operations 21,225 25,923 6,519 11,834 - -------------------------------------------------------------------------------------------------------- Other expense (income): Interest expense 2,192 5,843 1,098 4,227 Interest income (833) (825) (565) (451) Interest rate swap expense (income) (360) 271 (151) (263) - -------------------------------------------------------------------------------------------------------- 999 5,289 382 3,513 - -------------------------------------------------------------------------------------------------------- Income before income taxes 20,226 20,634 6,137 8,321 Provision for income taxes 7,787 7,841 2,363 3,162 - -------------------------------------------------------------------------------------------------------- Income before cumulative effect of accounting change 12,439 12,793 3,774 5,159 - -------------------------------------------------------------------------------------------------------- Cumulative effect of accounting change (net of tax benefit of $1,404 in 2002) 2,242 - - - - -------------------------------------------------------------------------------------------------------- Net income $ 10,197 $ 12,793 $ 3,774 $ 5,159 ======================================================================================================== Weighted average number of shares outstanding: basic 19,193 19,220 19,168 19,221 - -------------------------------------------------------------------------------------------------------- diluted 19,240 19,265 19,208 19,276 - -------------------------------------------------------------------------------------------------------- Income per share -- basic: Before cumulative effect of accounting change $ 0.65 $ 0.67 $ 0.20 $ 0.27 Cumulative effect of accounting change (0.12) - - - - -------------------------------------------------------------------------------------------------------- Net income $ 0.53 $ 0.67 $ 0.20 $ 0.27 ======================================================================================================== Income per share -- diluted: Before cumulative effect of accounting change $ 0.65 $ 0.66 $ 0.20 $ 0.27 Cumulative effect of accounting change (0.12) - - - - -------------------------------------------------------------------------------------------------------- Net income $ 0.53 $ 0.66 $ 0.20 $ 0.27 ========================================================================================================
UNIFIRST CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands) March 1, August 31, March 2, 2003 2002 * 2002 - ------------------------------------------------------------------------------------------- Assets Current assets: Cash $ 5,350 $ 4,333 $ 6,011 Receivables 60,694 54,587 57,476 Inventories 25,208 24,807 25,929 Rental merchandise in service 56,870 56,047 51,445 Prepaid taxes and deferred tax assets 5,641 - - Prepaid expenses 307 315 261 - ------------------------------------------------------------------------------------------- Total current assets 154,070 140,089 141,122 - ------------------------------------------------------------------------------------------- Property and equipment: Land, buildings and leasehold improvements 214,889 208,000 201,839 Machinery and equipment 237,516 229,692 220,365 Motor vehicles 65,076 60,925 59,728 - ------------------------------------------------------------------------------------------- 517,481 498,617 481,932 Less - accumulated depreciation 246,433 229,621 214,445 - ------------------------------------------------------------------------------------------- 271,048 268,996 267,487 - ------------------------------------------------------------------------------------------- Other assets 84,739 85,750 83,823 - ------------------------------------------------------------------------------------------- $ 509,857 $ 494,835 $ 492,432 =========================================================================================== Liabilities and Shareholders' Equity Current liabilities: Current maturities of long-term obligations $ 3,049 $ 1,406 $ 1,361 Notes payable 1,350 1,195 1,359 Accounts payable 34,364 17,012 16,907 Accrued liabilities 56,370 53,331 61,291 Accrued and deferred income taxes - 1,457 8,716 - ------------------------------------------------------------------------------------------- Total current liabilities 95,133 74,401 89,634 - ------------------------------------------------------------------------------------------- Long-term obligations, net of current maturities 73,932 83,690 81,852 Deferred income taxes 23,243 27,004 24,150 - ------------------------------------------------------------------------------------------- Shareholders' equity: Common stock 1,055 1,055 1,053 Class B common stock 1,021 1,021 1,023 Treasury stock (26,005) (24,756) (24,755) Capital surplus 12,546 12,503 12,443 Retained earnings 332,505 323,595 310,818 Accumulated other comprehensive loss (3,573) (3,678) (3,786) - ------------------------------------------------------------------------------------------- Total shareholders' equity 317,549 309,740 296,796 - ------------------------------------------------------------------------------------------- $ 509,857 $ 494,835 $ 492,432 =========================================================================================== * Condensed from audited financial statements