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)
October 18, 2017
UNIFIRST CORPORATION
(Exact Name of Registrant as Specified in Charter)
Massachusetts | 001-08504 | 04-2103460 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer 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
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)) |
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 October 18, 2017, UniFirst Corporation (the “Company”) issued a press release ("Press Release") announcing financial results for the fourth quarter and full year of fiscal 2017, which ended on August 26, 2017. 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, shall not be deemed “filed” for any purpose, including for purposes of Section 18 of the Securities 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 or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits | |
EXHIBIT NO. | DESCRIPTION |
99 | Press release of the Company dated October 18, 2017 |
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: October 18, 2017 | By: | /s/ Steven S. Sintros |
Name: | Steven S. Sintros | |
Title: | Chief Executive Officer, President and Chief Financial Officer | |
EXHIBIT INDEX
EXHIBIT NO. | DESCRIPTION |
99 | |
Exhibit 99
 |  | ||
For Immediate Release UniFirst Corporation 68 Jonspin Road Wilmington, MA 01887 Phone: 978- 658-8888 Fax: 978-988-0659 Email: ssintros@UniFirst.com | |||
October 18, 2017 | |||
CONTACT: Steven S. Sintros, President & CEO | |||
UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF FISCAL 2017
Wilmington, MA (October 18, 2017) -- UniFirst Corporation (NYSE: UNF) today announced results for its fourth quarter and full year ended August 26, 2017. Revenues for the quarter were $403.6 million, up 10.9% from $363.8 million in the same year ago period and full year revenues were $1.591 billion, up 8.4% from $1.468 billion in fiscal 2016.
Net loss in the quarter was $4.9 million ($(0.24) per diluted share), compared to net income of $35.5 million ($1.74 per diluted share) in the fourth quarter of fiscal 2016. Net income for the full year was $70.2 million ($3.44 per diluted share) compared to $125.0 million ($6.17 per diluted share) in the prior year. The results reported today include the negative effect of the previously announced asset impairment charge which is discussed below.
Adjusted net income for the quarter was $29.2 million ($1.44 per diluted share) up 13.4% compared to adjusted net income for the fourth quarter of fiscal 2016 which was $25.8 million ($1.27 per diluted share). Adjusted net income for the full year was $107.7 million ($5.28 per diluted share) down 6.6% from adjusted net income of $115.3 million ($5.69 per diluted share) in fiscal 2016. See table for reconciliation to adjusted results.
Adjusted net income for the fiscal 2017 fourth quarter and annual period exclude a $55.8 million ($34.1 million after-tax) impairment charge related to the Company's ongoing Customer Relationship Management (CRM) systems project. The Company announced in September 2017 that it had determined it was no longer probable that the current version of the CRM system being developed would be completed and placed into service and as a result an impairment of capitalized costs would be required. Adjusted results from the prior year fourth quarter and full year exclude the impact of a gain recognized in that period related to a settlement of environmental litigation.
Steven S. Sintros, UniFirst President and Chief Executive Officer said, “We are pleased with the overall results of our fourth quarter. With our Core Laundry Operations leading the way, all of our operating segments contributed to the positive results.”
The Core Laundry Operations produced fourth quarter revenues of $364.8 million, up 10.0% from those in the prior year. Adjusting for the estimated effect of acquisitions, primarily those from the September 2016 purchase of Arrow Uniform, Core Laundry revenues grew 4.6%. Core Laundry adjusted operating income was $41.9 million during the quarter, a 9.4% increase from the prior year adjusted total (see reconciliation for details). The Core Laundry adjusted operating margin in the fourth quarter of 2017 was 11.5%, down slightly from the adjusted operating margin of 11.6% in the year ago period. The comparison of adjusted operating income and operating margins was positively impacted by lower expense due to a $3.5 million charge taken in the prior year to increase the Company's environmental reserves. In addition, the margins also benefited from lower stock compensation expense as well as lower merchandise costs as a percentage of revenues. These positive comparisons were offset by higher levels of claims for healthcare, workers' compensation and auto liability as well as the impact of the Arrow Uniform acquisition.
Revenues in the fourth quarter of 2017 for our Specialty Garments segment, which consists of nuclear decontamination and cleanroom operations,were $24.0 million, up 20.4% in the quarter compared to the same period a year ago. Operating income was $1.6 million compared to $1.2 million in the prior year fourth quarter. The year to year improvement was due to increased outages and project-based activity in the US and Canada. This segment’s results can vary significantly due to seasonality and the timing of reactor outages and projects.
Revenues in the fourth quarter of 2017 for our First Aid segment were $14.7 million, an increase of 22.2% compared to the same period in fiscal 2016, and operating income was $1.9 million compared to $1.4 million from the fourth quarter of fiscal 2016. The improvement in the results was due to a strong performance from this segment's wholesale distribution business and a small acquisition completed in the third quarter of fiscal 2017.
Our fourth quarter profit comparison to the prior year also benefited from Other Income which was $2.2 million higher than same quarter a year ago, primarily the result of higher interest income and foreign exchange gains.
UniFirst continues to maintain a strong balance sheet with no long-term debt and significant cash balances. Excluding the $118.7 million cash purchase price paid for the Arrow acquisition, cash, cash equivalents and short-term investments increased $104.7 million during fiscal 2017, and our cash, cash equivalents and short-term investments were $349.8 million at the end of fiscal 2017.
Outlook
Mr. Sintros continued, “At this time, we expect that our fiscal 2018 revenues will be between $1.625 billion and $1.645 billion and full year diluted earnings per share will be between $5.00 and $5.30. As we move through fiscal 2018, we expect to continue to make investments in our people, processes and technology which will help us achieve our primary objective of being recognized as the top service provider in our industry."
Conference Call Information
UniFirst will hold a conference call today at 10:00 a.m. (ET) 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.
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, as well as the delivery of facility service programs. Together with its subsidiaries, the company also provides first aid and safety products, and manages specialized garment programs for the cleanroom and nuclear industries. UniFirst manufactures its own branded workwear, protective clothing, and floorcare products, and with 250 service locations, over 300,000 customer locations, and 14,000 employee Team Partners, the company outfits nearly 2 million workers each business day. UniFirst is a publicly held company traded on the New York Stock Exchange under the symbol UNF and is a component of the Standard & Poor's 600 Small Cap Index. For more information, contact UniFirst at 800.455.7654 or visit www.unifirst.com.
Forward Looking Statements
This public announcement contains forward looking statements that reflect the Company’s current views with respect to future events and financial performance, including projected revenues and earnings per share. 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 “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” 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. Such factors include, but are not limited to, the performance and success of our new Chief Executive Officer, our ability to efficiently design, construct, and implement a new customer relationship management (“CRM”) computer system, our ability to maintain and grow Arrow’s customer base and enhance its operating margins, our ability to compete successfully without any significant degradation in our margin rates, uncertainties caused by adverse worldwide economic conditions and their impact on our customers’ businesses and workforce levels, 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, uncertainties regarding our ability to consummate and successfully integrate acquired businesses, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the continuing increase in domestic healthcare costs, including the ultimate impact of the Affordable Care Act, our retention of customers and renewal of customer contracts, uncertainties regarding the price levels of natural gas, electricity, fuel and labor, the negative effect on our business from sharply depressed oil prices, fluctuation on our revenue and net income from our specialty garments segment, the effect of currency fluctuations on our results of operations and financial condition, rampant criminal activity and instability in Mexico where our principal garment manufacturing plants are located, the impact on our goodwill and intangibles that might result from adverse financial and economic changes, interruptions or failures of our information technology systems, including as a result of cyber-attacks, failure to comply with other state and federal regulations that might result in penalties or costs, seasonal and quarterly fluctuations in business levels, any loss of key management or other personnel, our dependence on third parties to supply us with raw materials, increased costs as a result of any future changes in federal or state laws, rules and regulations or governmental interpretation of such laws, rules and regulations, demand and prices for our products and services, economic and other developments associated with the war on terrorism and its impact on the economy, general economic conditions and other factors described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended August 27, 2016 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update any forward looking statements to reflect events or circumstances arising after the date on which such statements are made.
UniFirst Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data) | Thirteen weeks ended August 26, 2017 | Thirteen weeks ended August 27, 2016 | Fifty-two weeks ended August 26, 2017 | Fifty-two weeks ended August 27, 2016 | |||||||||||||
Revenues | $ | 403,589 | $ | 363,766 | $ | 1,590,958 | $ | 1,468,046 | |||||||||
Operating expenses: | |||||||||||||||||
Cost of revenues (1) | 249,720 | 223,220 | 993,589 | 900,427 | |||||||||||||
Selling and administrative expenses (1) | 85,023 | 62,134 | 342,407 | 284,847 | |||||||||||||
Impairment charge | 55,800 | — | 55,800 | — | |||||||||||||
Depreciation and amortization | 23,437 | 21,656 | 88,879 | 81,612 | |||||||||||||
Total operating expenses | 413,980 | 307,010 | 1,480,675 | 1,266,886 | |||||||||||||
(Loss) income from operations | (10,391 | ) | 56,756 | 110,283 | 201,160 | ||||||||||||
Other (income) expense: | |||||||||||||||||
Interest income, net | (1,539 | ) | (635 | ) | (4,269 | ) | (2,543 | ) | |||||||||
Other (income) expense, net | (1,175 | ) | 76 | (571 | ) | 332 | |||||||||||
Total other income, net | (2,714 | ) | (559 | ) | (4,840 | ) | (2,211 | ) | |||||||||
(Loss) income before income taxes | (7,677 | ) | 57,315 | 115,123 | 203,371 | ||||||||||||
(Benefit) provision for income taxes | (2,781 | ) | 21,821 | 44,927 | 78,345 | ||||||||||||
Net (loss) income | $ | (4,896 | ) | $ | 35,494 | $ | 70,196 | $ | 125,026 | ||||||||
(Loss) income per share – Basic: | |||||||||||||||||
Common Stock | $ | (0.25 | ) | $ | 1.84 | $ | 3.63 | $ | 6.51 | ||||||||
Class B Common Stock | $ | (0.20 | ) | $ | 1.47 | $ | 2.91 | $ | 5.21 | ||||||||
(Loss) income per share – Diluted: | |||||||||||||||||
Common Stock | $ | (0.24 | ) | $ | 1.74 | $ | 3.44 | $ | 6.17 | ||||||||
(Loss) income allocated to – Basic: | |||||||||||||||||
Common Stock | $ | (3,908 | ) | $ | 28,097 | $ | 55,903 | $ | 99,282 | ||||||||
Class B Common Stock | $ | (978 | ) | $ | 7,139 | $ | 13,915 | $ | 25,093 | ||||||||
(Loss) income allocated to – Diluted: | |||||||||||||||||
Common Stock | $ | (4,886 | ) | $ | 35,250 | $ | 69,837 | $ | 124,409 | ||||||||
Weighted average number of shares outstanding – Basic: | |||||||||||||||||
Common Stock | 15,402 | 15,268 | 15,382 | 15,245 | |||||||||||||
Class B Common Stock | 4,818 | 4,850 | 4,786 | 4,816 | |||||||||||||
Weighted average number of shares outstanding – Diluted: | |||||||||||||||||
Common Stock | 20,220 | 20,223 | 20,276 | 20,154 | |||||||||||||
(1) Exclusive of depreciation on the Company’s property, plant and equipment and amortization on its intangible assets.
UniFirst Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands) | August 26, 2017 | August 27, 2016 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 349,752 | $ | 363,795 | ||||
Receivables, net | 187,174 | 156,578 | ||||||
Inventories | 79,068 | 78,887 | ||||||
Rental merchandise in service | 151,340 | 138,105 | ||||||
Prepaid taxes | 29,968 | 10,418 | ||||||
Prepaid expenses and other current assets | 16,924 | 29,831 | ||||||
Total current assets | 814,226 | 777,614 | ||||||
Property, plant and equipment, net | 525,115 | 539,818 | ||||||
Goodwill | 376,110 | 320,641 | ||||||
Customer contracts and other intangible assets, net | 71,744 | 38,664 | ||||||
Deferred income taxes | 394 | 97 | ||||||
Other assets | 31,539 | 25,173 | ||||||
$ | 1,819,128 | $ | 1,702,007 | |||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 64,691 | $ | 50,884 | ||||
Accrued liabilities | 112,236 | 100,782 | ||||||
Accrued taxes | 921 | 969 | ||||||
Total current liabilities | 177,848 | 152,635 | ||||||
Long-term liabilities: | ||||||||
Accrued liabilities | 106,736 | 104,921 | ||||||
Accrued and deferred income taxes | 81,352 | 79,670 | ||||||
Total long-term liabilities | 188,088 | 184,591 | ||||||
Shareholders’ equity: | ||||||||
Common Stock | 1,545 | 1,542 | ||||||
Class B Common Stock | 482 | 485 | ||||||
Capital surplus | 86,245 | 72,561 | ||||||
Retained earnings | 1,386,438 | 1,319,142 | ||||||
Accumulated other comprehensive loss | (21,518 | ) | (28,949 | ) | ||||
Total shareholders’ equity | 1,453,192 | 1,364,781 | ||||||
$ | 1,819,128 | $ | 1,702,007 | |||||
UniFirst Corporation and Subsidiaries
Detail of Operating Results
(Unaudited)
Revenues
(In thousands, except percentages) | Thirteen weeks ended August 26, 2017 | Thirteen weeks ended August 27, 2016 | Dollar Change | Percent Change | |||||||||||
Core Laundry Operations | $ | 364,827 | $ | 331,749 | $ | 33,078 | 10.0 | % | |||||||
Specialty Garments | 24,020 | 19,955 | 4,065 | 20.4 | % | ||||||||||
First Aid | 14,742 | 12,062 | 2,680 | 22.2 | % | ||||||||||
Consolidated total | $ | 403,589 | $ | 363,766 | $ | 39,823 | 10.9 | % | |||||||
(In thousands, except percentages) | Fifty-two weeks ended August 26, 2017 | Fifty-two weeks ended August 27, 2016 | Dollar Change | Percent Change | |||||||||||
Core Laundry Operations | $ | 1,442,149 | $ | 1,329,375 | $ | 112,774 | 8.5 | % | |||||||
Specialty Garments | 98,024 | 91,257 | 6,767 | 7.4 | % | ||||||||||
First Aid | 50,785 | 47,414 | 3,371 | 7.1 | % | ||||||||||
Consolidated total | $ | 1,590,958 | $ | 1,468,046 | $ | 122,912 | 8.4 | % | |||||||
(Loss) income from Operations
(In thousands, except percentages) | Thirteen weeks ended August 26, 2017 | Thirteen weeks ended August 27, 2016 | Dollar Change | Percent Change | |||||||||||
Core Laundry Operations | $ | (13,887 | ) | $ | 54,189 | $ | (68,076 | ) | (125.6 | )% | |||||
Specialty Garments | 1,591 | 1,213 | 378 | 31.1 | % | ||||||||||
First Aid | 1,905 | 1,354 | 551 | 40.7 | % | ||||||||||
Consolidated total | $ | (10,391 | ) | $ | 56,756 | $ | (67,147 | ) | (118.3 | )% | |||||
(In thousands, except percentages) | Fifty-two weeks ended August 26, 2017 | Fifty-two weeks ended August 27, 2016 | Dollar Change | Percent Change | |||||||||||
Core Laundry Operations | $ | 96,307 | $ | 186,074 | $ | (89,767 | ) | (48.2 | )% | ||||||
Specialty Garments | 9,018 | 10,204 | (1,186 | ) | (11.6 | )% | |||||||||
First Aid | 4,958 | 4,882 | 76 | 1.6 | % | ||||||||||
Consolidated total | $ | 110,283 | $ | 201,160 | $ | (90,877 | ) | (45.2 | )% | ||||||
UniFirst Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands) | Fifty-two weeks ended August 26, 2017 | Fifty-two weeks ended August 27, 2016 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 70,196 | $ | 125,026 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation | 76,073 | 72,983 | ||||||
Amortization of intangible assets | 12,806 | 8,629 | ||||||
Amortization of deferred financing costs | 112 | 184 | ||||||
Gain on sale of assets | (567 | ) | — | |||||
Share-based compensation | 12,462 | 5,628 | ||||||
Accretion on environmental contingencies | 600 | 669 | ||||||
Accretion on asset retirement obligations | 853 | 826 | ||||||
Impairment charge | 55,800 | — | ||||||
Deferred income taxes | 955 | 9,899 | ||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||
Receivables, less reserves | (22,232 | ) | (3,949 | ) | ||||
Inventories | 1,865 | 1,467 | ||||||
Rental merchandise in service | (5,384 | ) | 3,945 | |||||
Prepaid expenses and other current assets and Other assets | 12,903 | (38,443 | ) | |||||
Accounts payable | 9,594 | 49 | ||||||
Accrued liabilities | 11,728 | 31,954 | ||||||
Prepaid and accrued income taxes | (19,490 | ) | (11,231 | ) | ||||
Net cash provided by operating activities | 218,274 | 207,636 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of businesses, net of cash acquired | (125,457 | ) | (16,583 | ) | ||||
Capital expenditures | (108,554 | ) | (98,235 | ) | ||||
Proceeds from sale of assets | 876 | — | ||||||
Other | 98 | 149 | ||||||
Net cash used in investing activities | (233,037 | ) | (114,669 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments on loans payable and long-term debt | — | (1,301 | ) | |||||
Payment of deferred financing costs | — | (813 | ) | |||||
Proceeds from exercise of share-based awards, including excess tax benefits | 3,102 | 5,313 | ||||||
Taxes withheld and paid related to net share settlement of equity awards | (2,386 | ) | (5,965 | ) | ||||
Payment of cash dividends | (2,898 | ) | (2,878 | ) | ||||
Net cash used in financing activities | (2,182 | ) | (5,644 | ) | ||||
Effect of exchange rate changes | 2,902 | (81 | ) | |||||
Net (decrease) increase in cash, cash equivalents and short-term investments | (14,043 | ) | 87,242 | |||||
Cash, cash equivalents and short-term investments at beginning of period | 363,795 | 276,553 | ||||||
Cash, cash equivalents and short-term investments at end of period | $ | 349,752 | $ | 363,795 | ||||
UniFirst Corporation and Subsidiaries
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 these consolidated financial results, management believes that certain non-GAAP operating results provide a more meaningful measure on which to compare the Company’s results of operations for the periods presented. The Company believes these non-GAAP results provide useful supplemental information regarding the Company’s performance to both management and investors by excluding certain non-recurring amounts that impact the comparability of the results. Supplemental reconciliations of consolidated operating (loss) income, net (loss) income and earnings per diluted share on a GAAP basis to adjusted operating income, net income and earnings per diluted share on a non-GAAP basis are presented in the following tables. In addition, Core Laundry Operations operating (loss) income and operating margin on a GAAP basis to adjusted operating income and adjusted operating margin on a non-GAAP basis are presented in the following tables. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided below.
Thirteen weeks ended August 26, 2017 | |||||||||||||||||||||||||||
Consolidated | Core Laundry Operations | ||||||||||||||||||||||||||
(In thousands, except percentages) | Revenue | Operating (Loss) Income | Net (Loss) Income | Diluted EPS | Revenue | Operating (Loss) Income | Operating Margin | ||||||||||||||||||||
As reported | $ | 403,589 | $ | (10,391 | ) | $ | (4,896 | ) | $ | (0.24 | ) | $ | 364,827 | $ | (13,887 | ) | (3.8 | )% | |||||||||
Impairment charge | — | 55,800 | 34,144 | 1.68 | — | 55,800 | 15.3 | % | |||||||||||||||||||
As adjusted | $ | 403,589 | $ | 45,409 | $ | 29,248 | $ | 1.44 | $ | 364,827 | $ | 41,913 | 11.5 | % | |||||||||||||
Thirteen weeks ended August 27, 2016 | |||||||||||||||||||||||||||
Consolidated | Core Laundry Operations | ||||||||||||||||||||||||||
(In thousands, except percentages) | Revenue | Operating Income | Net Income | Diluted EPS | Revenue | Operating Income | Operating Margin | ||||||||||||||||||||
As reported | $ | 363,766 | $ | 56,756 | $ | 35,494 | $ | 1.74 | $ | 331,749 | $ | 54,189 | 16.3 | % | |||||||||||||
Settlement of environmental litigation | — | (15,861 | ) | (9,691 | ) | (0.48 | ) | — | (15,861 | ) | (4.8 | )% | |||||||||||||||
As adjusted | $ | 363,766 | $ | 40,895 | $ | 25,803 | $ | 1.27 | $ | 331,749 | $ | 38,328 | 11.6 | % | |||||||||||||
Fifty-two weeks ended August 26, 2017 | |||||||||||||||||||||||||||
Consolidated | Core Laundry Operations | ||||||||||||||||||||||||||
(In thousands, except percentages) | Revenue | Operating Income | Net Income | Diluted EPS | Revenue | Operating Income | Operating Margin | ||||||||||||||||||||
As reported | $ | 1,590,958 | $ | 110,283 | $ | 70,196 | $ | 3.44 | $ | 1,442,149 | $ | 96,307 | 6.7 | % | |||||||||||||
Accelerated stock compensation expense | — | 5,398 | 3,341 | 0.16 | — | 5,398 | 0.4 | % | |||||||||||||||||||
Impairment charge | — | 55,800 | 34,144 | 1.68 | — | 55,800 | 3.9 | % | |||||||||||||||||||
As adjusted | $ | 1,590,958 | $ | 171,481 | $ | 107,681 | $ | 5.28 | $ | 1,442,149 | $ | 157,505 | 10.9 | % | |||||||||||||
Fifty-two weeks ended August 27, 2016 | |||||||||||||||||||||||||||
Consolidated | Core Laundry Operations | ||||||||||||||||||||||||||
(In thousands, except percentages) | Revenue | Operating Income | Net Income | Diluted EPS | Revenue | Operating Income | Operating Margin | ||||||||||||||||||||
As reported | $ | 1,468,046 | $ | 201,160 | $ | 125,026 | $ | 6.17 | $ | 1,329,375 | $ | 186,074 | 14.0 | % | |||||||||||||
Settlement of environmental litigation | — | (15,861 | ) | (9,691 | ) | (0.48 | ) | — | (15,861 | ) | (1.2 | )% | |||||||||||||||
As adjusted | $ | 1,468,046 | $ | 185,299 | $ | 115,335 | $ | 5.69 | $ | 1,329,375 | $ | 170,213 | 12.8 | % | |||||||||||||
These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, GAAP and may be different from non-GAAP measures used by other companies. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.