Document


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 17, 2018


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

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. 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 17, 2018, UniFirst Corporation (the “Company”) issued a press release ("Press Release") announcing financial results for the fourth quarter and full year of fiscal 2018, which ended on August 25, 2018. 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







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 17, 2018
By:
/s/ Steven S. Sintros
 
Name:
Steven S. Sintros
 
Title:
President and Chief Executive Officer
 
 
 
 
By:
/s/ Shane O’Connor
 
Name:
Shane O’Connor
 
Title:
Senior Vice President and Chief Financial Officer



Exhibit
Exhibit 99




https://cdn.kscope.io/9a0200ca1e4eea86c93b89151e8893a3-unfheaderlefta09.jpg
 
https://cdn.kscope.io/9a0200ca1e4eea86c93b89151e8893a3-ungheaderrighta04.jpg
 
 
For Immediate Release
UniFirst Corporation
68 Jonspin Road
Wilmington, MA 01887
Phone: 978- 658-8888
Fax: 978-988-0659
Email: Shane_OConnor@UniFirst.com
 
 
 
 
October 17, 2018
 
CONTACT: Shane O’Connor, Senior Vice President & CFO
 
 

UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF FISCAL 2018

Wilmington, MA (October 17, 2018) -- UniFirst Corporation (NYSE: UNF) today announced results for its fourth quarter and full year ended August 25, 2018. Revenues for the quarter were $434.1 million, up 7.6% from $403.6 million in the comparable prior year period and full year revenues were $1.696 billion, up 6.6% from $1.591 billion in fiscal 2017.

Operating income for the quarter was $41.4 million compared to an operating loss of $10.4 million in the fourth quarter of fiscal 2017. The Company’s operating income in the fourth quarter of fiscal 2018 was reduced by a one-time cash bonus to its employees of approximately $7.2 million to share in the benefits received from the recent U.S. tax reform. This bonus was approved in the fourth quarter of fiscal 2018 and was recorded to selling and administrative expenses. In addition, the prior year period operating income included a $55.8 million impairment charge related to the Company's Customer Relationship Management (CRM) systems project. Excluding the effect of the one-time bonus to employees and the impairment charge, adjusted operating income in the fourth quarter of fiscal 2018 was $48.6 million, an increase of 7.0%, when compared to the adjusted operating income in the prior year period of $45.4 million. See the table below for a reconciliation to the adjusted results.

Net income in the quarter was $35.0 million ($1.81 per diluted share), compared to a net loss of $4.9 million ($(0.24) per diluted share) in the fourth quarter of fiscal 2017. Net income for the full year was $163.9 million ($8.21 per diluted share) compared to $70.2 million ($3.44 per diluted share) in the prior year. Excluding the effect of the one-time bonus and impairment charge discussed above, the Company’s adjusted net income for the fourth quarter of fiscal 2018 would have been $39.9 million ($2.06 per diluted share) compared to $29.2 million ($1.44 per diluted share) in the fourth quarter of fiscal 2017. See the table below for a reconciliation to the adjusted results.

The Company's adjusted net income in the quarter benefited from a lower tax rate in 2018 of 20.2% compared to 39.3% in the prior year period primarily due to the positive impact of the recent U.S. tax reform as well as other discrete adjustments mostly related to tax credits the Company recognized in the quarter. In addition, the Company's adjusted diluted earnings per share further benefited from the previously announced $146.0 million repurchase of common shares in March 2018.


Steven Sintros, UniFirst President and Chief Executive Officer, said, “We’re pleased with our fourth quarter and year-end financial results for fiscal 2018. Accordingly, I’d like to take this opportunity to thank our thousands of employee Team Partners across North America, Central America and Europe for their combined efforts that helped us achieve these results. We were also happy to have the opportunity, as a result of the recent U.S. tax reform, to provide a one-time bonus to our valued employees. I, along with our executive team, felt it was important to share this tax benefit with our staff based on the integral roles they play in our ongoing success.”

Core Laundry revenues in the quarter were $391.8 million, up 7.4% from the fourth quarter of the prior year. Organic revenue growth, which excludes the estimated effect of acquisitions as well as fluctuations in the Canadian dollar, was 6.6%. The Core Laundry operating margin improved to 10.0% from (3.8)% in the fourth quarter of the prior year. Excluding the effect of the one-time bonus to employees in the fourth quarter of fiscal 2018 and the impairment charge in the fourth quarter of fiscal 2017, adjusted operating margin in the quarter increased to 11.8% from the prior year quarter's adjusted operating margin of 11.5%. This increase was primarily the result of lower healthcare claims and worker's compensation expense compared to the prior year quarter. These benefits were partially offset by higher payroll and energy costs as well as higher depreciation and merchandise amortization as a percentage of revenues in the fourth quarter of fiscal 2018.

Revenues from our Specialty Garments segment, which consists of nuclear decontamination and cleanroom operations, were $29.0 million in the quarter, an increase of 20.7% compared to the same period a year ago. The segment's top-line continues to benefit from increased outage and project-based activity at the segment’s Canadian and European nuclear customers, as well as solid growth from its cleanroom division. Specialty Garments' operating income in the fourth quarter of fiscal 2018 decreased to $1.2 million from $1.6 million in last year’s fourth quarter primarily due to higher production costs as a percentage of revenues. This segment’s results can vary significantly due to seasonality and the timing of reactor outages and projects.

UniFirst continues to maintain a strong balance sheet with no long-term debt and significant cash balances. At the end of the Company's fourth quarter of fiscal 2018, cash, cash equivalents and short-term investments totaled $270.5 million, a decrease of $79.2 million from the end of fiscal 2017 due primarily to the $146.0 million share repurchase, discussed above, as well as $42.7 million spent on the acquisition of businesses.

Outlook

Mr. Sintros continued, “At this time, we expect our fiscal 2019 revenues to be between $1.765 billion and $1.785 billion and full year diluted earnings per share to be between $6.65 and $7.05. Our guidance for fiscal 2019 includes one extra week of operations compared to fiscal 2018 due to the timing of our fiscal calendar. As we look toward fiscal 2019, our guidance reflects the continued 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."

Net income and earnings per share comparisons in fiscal 2019 will be significantly influenced by the impact of the tax reform transition in fiscal 2018, with next year's effective tax rate assumed to be approximately 26.0% compared to 12.5% in fiscal 2018. In addition, the Company's guidance for fiscal 2019 assumes an operating margin of 9.7% at the midpoint. The assumed decline in operating margin is primarily attributable to anticipated headwinds from payroll and payroll-related costs, merchandise, energy and depreciation expenses as a percentage of revenues.

Conference Call Information

UniFirst will hold a conference call today at 9:00 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 more than 250 service locations, over 300,000 customer locations, and 14,000-plus 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,” “strategy,” “objective,” “assume,” 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 Chief Executive Officer, uncertainties caused by adverse economic conditions and their impact on our customers’ businesses and workforce levels, uncertainties regarding our ability to consummate and successfully integrate acquired businesses, our ability to maintain and grow Arrow Uniform’s customer base and enhance its operating margins, 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, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, any loss of key management or other personnel, increased costs as a result of any changes in federal or state laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding the impact of the recently passed U.S. tax reform on our business, results of operations and financial condition, uncertainties regarding the price levels of natural gas, electricity, fuel and labor, the negative effect on our business from sharply depressed oil and natural gas prices, the continuing increase in domestic healthcare costs, including the impact of the Affordable Care Act, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our Specialty Garments business, instability in Mexico and Nicaragua where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate a new customer relationship management (CRM) computer system, interruptions or failures of our information technology systems, including as a result of cyber-attacks, additional professional and internal costs necessary for compliance with any changes in Securities and Exchange Commission, New York Stock Exchange and accounting rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, economic and other developments associated with the war on terrorism and its impact on the economy, general economic conditions, our ability to successfully implement our business strategies and processes, including our capital allocation strategies, and other factors described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended August 26, 2017 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 they are made.




UniFirst Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)    
(In thousands, except per share data)
 
Thirteen
weeks ended
August 25,
2018
 
Thirteen
weeks ended
August 26,
2017
 
Fifty-two
weeks ended
August 25,
2018
 
Fifty-two
weeks ended
August 26,
2017
 
 
 
 
 
 
 
 
 
Revenues
 
$
434,063

 
$
403,589

 
$
1,696,489

 
$
1,590,958

 
 


 


 
 
 
 
Operating expenses:
 

 

 
 
 
 
Cost of revenues (1)
 
270,528

 
249,720

 
1,056,724

 
993,589

Selling and administrative expenses (1)
 
96,219

 
85,023

 
360,727

 
342,407

Impairment charge
 

 
55,800

 

 
55,800

Depreciation and amortization
 
25,890

 
23,437

 
96,662

 
88,879

Total operating expenses
 
392,637

 
413,980

 
1,514,113

 
1,480,675

 
 


 


 
 
 
 
Operating income (loss)
 
41,426

 
(10,391
)
 
182,376

 
110,283

 
 


 


 
 
 
 
Other (income) expense:
 
 
 
 
 
 
 
 
Interest income, net
 
(1,648
)
 
(1,539
)
 
(5,543
)
 
(4,269
)
Other expense (income), net
 
221

 
(1,175
)
 
673

 
(571
)
Total other income, net
 
(1,427
)
 
(2,714
)
 
(4,870
)
 
(4,840
)
 
 


 


 
 
 
 
Income (loss) before income taxes
 
42,853

 
(7,677
)
 
187,246

 
115,123

Provision (benefit) for income taxes
 
7,901

 
(2,781
)
 
23,351

 
44,927

 
 


 


 
 
 
 
Net income (loss)
 
$
34,952

 
$
(4,896
)
 
$
163,895

 
$
70,196

 
 
 
 
 
 
 
 
 
Income (loss) per share – Basic:
 
 
 
 
 
 
 
 
Common Stock
 
$
1.90

 
$
(0.25
)
 
$
8.66

 
$
3.63

Class B Common Stock
 
$
1.52

 
$
(0.20
)
 
$
6.91

 
$
2.91

 
 
 
 
 
 
 
 
 
Income (loss) per share – Diluted:
 
 
 
 
 
 
 
 
Common Stock
 
$
1.81

 
$
(0.24
)
 
$
8.21

 
$
3.44

 
 
 
 
 
 
 
 
 
Income (loss) allocated to – Basic:
 
 
 
 
 
 
 
 
Common Stock
 
$
29,312

 
$
(3,908
)
 
$
133,802

 
$
55,903

Class B Common Stock
 
$
5,640

 
$
(978
)
 
$
30,093

 
$
13,915

 
 
 
 
 
 
 
 
 
Income (loss) allocated to – Diluted:
 
 
 
 
 
 
 
 
Common Stock
 
$
34,952

 
$
(4,886
)
 
$
163,895

 
$
69,837

 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding – Basic:
 
 
 
 
 
 
 
 
Common Stock
 
15,429

 
15,402

 
15,454

 
15,382

Class B Common Stock
 
3,711

 
4,818

 
4,357

 
4,786

 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding – Diluted:
 
 
 
 
 
 
 
 
Common Stock
 
19,335

 
20,220

 
19,963

 
20,276


(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 25,
2018
 
August 26,
2017
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash, cash equivalents and short-term investments
 
$
270,512

 
$
349,752

Receivables, net
 
200,797

 
187,174

Inventories
 
90,176

 
79,068

Rental merchandise in service
 
174,392

 
151,340

Prepaid taxes
 
27,024

 
29,968

Prepaid expenses and other current assets
 
21,899

 
16,924

 
 


 


Total current assets
 
784,800

 
814,226

 
 
 
 
 
Property, plant and equipment, net
 
559,576

 
525,115

Goodwill
 
397,422

 
376,110

Customer contracts and other intangible assets, net

 
70,904

 
71,744

Deferred income taxes
 
425

 
394

Other assets
 
30,259

 
31,539

 
 
 
 
 
 
 
$
1,843,386

 
$
1,819,128

 
 
 
 
 
Liabilities and shareholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
73,500

 
$
64,691

Accrued liabilities
 
124,225

 
112,236

Accrued taxes
 
736

 
921

 
 
 
 
 
Total current liabilities
 
198,461

 
177,848

 
 
 
 
 
Long-term liabilities:
 
 
 
 
Accrued liabilities
 
105,888

 
106,736

Accrued and deferred income taxes
 
74,070

 
81,352

 
 
 
 
 
Total long-term liabilities
 
179,958

 
188,088

 
 
 
 
 
Shareholders’ equity:
 
 
 
 
Common Stock
 
1,543

 
1,545

Class B Common Stock
 
371

 
482

Capital surplus
 
82,973

 
86,245

Retained earnings
 
1,405,239

 
1,386,438

Accumulated other comprehensive loss
 
(25,159
)
 
(21,518
)
 
 
 
 
 
Total shareholders’ equity
 
1,464,967

 
1,453,192

 
 


 


 
 
$
1,843,386

 
$
1,819,128





UniFirst Corporation and Subsidiaries
Detail of Operating Results
(Unaudited)

Revenues

(In thousands, except percentages)
 
Thirteen
weeks ended
August 25,
2018
 
Thirteen
weeks ended
August 26,
2017
 
Dollar
Change
 
Percent
Change
 
 
 
 
 
 
 
 
 
Core Laundry Operations
 
$
391,826

 
$
364,827

 
$
26,999

 
7.4
 %
Specialty Garments
 
28,981

 
24,020

 
4,961

 
20.7
 %
First Aid
 
13,256

 
14,742

 
(1,486
)
 
(10.1
)%
Consolidated total
 
$
434,063

 
$
403,589

 
$
30,474

 
7.6
 %

(In thousands, except percentages)
 
Fifty-two
weeks ended
August 25,
2018
 
Fifty-two
weeks ended
August 26,
2017
 
Dollar
Change
 
Percent
Change
 
 
 
 
 
 
 
 
 
Core Laundry Operations
 
$
1,523,648

 
$
1,442,149

 
$
81,499

 
5.7
%
Specialty Garments
 
118,477

 
98,024

 
20,453

 
20.9
%
First Aid
 
54,364

 
50,785

 
3,579

 
7.0
%
Consolidated total
 
$
1,696,489

 
$
1,590,958

 
$
105,531

 
6.6
%


Operating Income (Loss)

(In thousands, except percentages)
 
Thirteen
weeks ended
August 25,
2018
 
Thirteen
weeks ended
August 26,
2017
 
Dollar
Change
 
Percent
Change
 
 
 
 
 
 
 
 
 
Core Laundry Operations
 
$
39,173

 
$
(13,887
)
 
$
53,060

 
N/A

Specialty Garments
 
1,204

 
1,591

 
(387
)
 
(24.3
)%
First Aid
 
1,049

 
1,905

 
(856
)
 
(44.9
)%
Consolidated total
 
$
41,426

 
$
(10,391
)
 
$
51,817

 
N/A


(In thousands, except percentages)
 
Fifty-two
weeks ended
August 25,
2018
 
Fifty-two
weeks ended
August 26,
2017
 
Dollar
Change
 
Percent
Change
 
 
 
 
 
 
 
 
 
Core Laundry Operations
 
$
163,588

 
$
96,307

 
$
67,281

 
69.9
 %
Specialty Garments
 
14,070

 
9,018

 
5,052

 
56.0
 %
First Aid
 
4,718

 
4,958

 
(240
)
 
(4.8
)%
Consolidated total
 
$
182,376

 
$
110,283

 
$
72,093

 
65.4
 %




UniFirst Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)

(In thousands)
 
Fifty-two
weeks ended
August 25,
2018
 
Fifty-two
weeks ended
August 26,
2017
Cash flows from operating activities:
 
 
 
 
Net income
 
$
163,895

 
$
70,196

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
Depreciation
 
83,376

 
76,073

Amortization of intangible assets
 
13,286

 
12,806

Amortization of deferred financing costs
 
112

 
112

Gain on sale of assets
 
(232
)
 
(567
)
Share-based compensation
 
4,638

 
12,462

Accretion on environmental contingencies
 
692

 
600

Accretion on asset retirement obligations
 
935

 
853

Impairment charge
 

 
55,800

Deferred income taxes
 
(7,861
)
 
955

Changes in assets and liabilities, net of acquisitions:
 
 
 
 
Receivables, less reserves
 
(12,420
)
 
(22,232
)
Inventories
 
(11,051
)
 
1,865

Rental merchandise in service
 
(21,572
)
 
(5,384
)
Prepaid expenses and other current assets and Other assets
 
(5,643
)
 
12,903

Accounts payable
 
4,573

 
9,594

Accrued liabilities
 
12,233

 
11,728

Prepaid and accrued income taxes
 
5,112

 
(19,490
)
Net cash provided by operating activities
 
230,073

 
218,274

 
 
 
 
 
Cash flows from investing activities:
 

 
 
Acquisition of businesses, net of cash acquired
 
(42,665
)
 
(125,457
)
Capital expenditures
 
(112,747
)
 
(108,554
)
Proceeds from sale of assets
 
1,777

 
876

Other
 
(263
)
 
98

Net cash used in investing activities
 
(153,898
)
 
(233,037
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
Proceeds from exercise of share-based awards, including excess tax benefits in fiscal 2017
 
461

 
3,102

Taxes withheld and paid related to net share settlement of equity awards
 
(3,180
)
 
(2,386
)
Repurchase of Common Stock
 
(146,011
)
 

Payment of cash dividends
 
(4,218
)
 
(2,898
)
Net cash used in financing activities
 
(152,948
)
 
(2,182
)
 
 


 


Effect of exchange rate changes
 
(2,467
)
 
2,902

 
 


 


Net decrease in cash, cash equivalents and short-term investments
 
(79,240
)
 
(14,043
)
Cash, cash equivalents and short-term investments at beginning of period
 
349,752

 
363,795

 
 


 


Cash, cash equivalents and short-term investments at end of period
 
$
270,512

 
$
349,752




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 income, net 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 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 reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided below.

 
 
Thirteen weeks ended August 25, 2018
 
 
Consolidated
 
Core Laundry Operations
(In thousands, except percentages)
 
Revenue
 
Operating Income
 
Net Income
 
Diluted
EPS
 
Revenue
 
Operating Income
 
Operating
Margin
As reported
 
$
434,063

 
$
41,426

 
$
34,952

 
$
1.81

 
$
391,826

 
$
39,173

 
10.0
%
One-time bonus
 

 
7,171

 
4,972

 
0.25

 

 
7,171

 
1.8
%
As adjusted
 
$
434,063

 
$
48,597

 
$
39,924

 
$
2.06

 
$
391,826

 
$
46,344

 
11.8
%

 
 
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
 %


 
 
Fifty-two weeks ended August 25, 2018
 
 
Consolidated
 
Core Laundry Operations
(In thousands, except percentages)
 
Revenue
 
Operating Income
 
Net Income
 
Diluted
EPS
 
Revenue
 
Operating Income
 
Operating
Margin
As reported
 
$
1,696,489

 
$
182,376

 
$
163,895

 
$
8.21

 
$
1,523,648

 
$
163,588

 
10.7
%
Effect of tax reform (a)
 

 

 
(20,138
)
 
(1.01
)
 

 

 
%
One-time bonus
 

 
7,171

 
4,972

 
0.25

 

 
7,171

 
0.5
%
As adjusted
 
$
1,696,489

 
$
189,547

 
$
148,729

 
$
7.45

 
$
1,523,648

 
$
170,759

 
11.2
%

(a) The effect of tax reform, as presented, represents a one-time revaluation of our U.S. net deferred tax liabilities as well as a charge related to a one-time transition tax the Company will be subject to for the deemed repatriation of our foreign earnings. This does not include the benefit associated with the lower U.S. federal corporate income tax rates as of January 1, 2018. Our presentation of the effect of tax reform in our non-GAAP reconciliations of net income and diluted earnings per share for the thirty-nine weeks



ended May 26, 2018 contained in our press release dated June 28, 2018 included all of the net benefits associated with lower U.S. federal corporate income tax rates.  The presentation of the effect of tax reform in our non-GAAP reconciliations of net income and diluted earnings per share for the fifty-two weeks ended August 25, 2018 includes only the impact from the revaluation of deferred tax balances and the one-time transition tax.

 
 
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 (b)
 

 
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
%

(b) The accelerated stock compensation expense represents $5.4 million of expense we incurred as a result of the accelerated vesting of certain restricted shares that had been previously granted to our former Chief Executive Officer, Ronald Croatti, upon his passing in fiscal 2017.