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) June 30, 2004 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 and Exhibits. - ------------------------------------------ (c) Exhibits -------- EXHIBIT NO. DESCRIPTION ---------- ----------- 99.1 Press release dated June 30, 2004 Item 12. Results of Operations and Financial Condition. - ------------------------------------------------------- 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. On June 30, 2004, UniFirst Corporation issued a press release ("Press Release") announcing financial results for the quarter ended May 29, 2004. 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: June 30, 2004 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 dated June 30, 2004
Exhibit 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 CORPORATION LOGO] UNIFIRST ANNOUNCES RECORD FINANCIAL RESULTS FOR THIRD QUARTER AND NINE MONTHS OF FISCAL 2004 Wilmington, MA (June 30, 2004) -- UniFirst Corporation (NYSE: UNF) today announced record revenues and earnings for the third quarter and nine months of fiscal 2004, which ended May 29, 2004. Revenues for the third quarter of fiscal 2004 were $183.0 million, the highest in the Company's 68 year history, a 19.1 percent increase from $153.7 million in the same period a year ago. Acquisitions, primarily Textilease, accounted for 13.8 percent of the revenue growth for the quarter. Third quarter net income was a record $9.9 million, or $0.52 per basic share, a 3.5 percent increase from last year's $9.6 million, or $0.50 per basic share. For the first thirty-nine weeks of fiscal 2004, revenues were a record $541.3 million, a 20.5 percent increase from $449.3 million for the same period of fiscal 2003. Acquisitions, again primarily Textilease, accounted for 14.8 percent of this revenue growth. Income before cumulative effect of accounting change was $26.1 million, or $1.36 per basic share, an 18.2 percent increase from last year's $22.0 million, or $1.15 per basic share. In the first quarter of fiscal 2003 the Company recorded an expense of $2.2 million, net of tax, as a result of implementing SFAS 143 regarding long lived assets. Net income for the first nine months of fiscal 2004 was $26.1 million, or $1.36 per basic share, a 31.6 percent increase from last year's $19.8 million, or $1.03 per basic share. During the third quarter the Company decided to close its Richmond plant and transfer this business to the Textilease plant in Richmond. As a result of this decision the Company recorded a pre-tax charge to earnings of approximately $600 thousand to reduce the value of the machinery and equipment in its Richmond plant to its net realizable value. During the quarter the Company also completed the sale of approximately $5.0 million in annual sales of linen business acquired from Textilease. There was no P&L impact from this sale, but it will have a slight negative impact on revenues in future periods. "We're pleased that despite a prolonged period of market softness that has hurt sales productivity, we've been able to generate the best results in our history", said Ronald D. Croatti, UniFirst's Chief Executive Officer.
"We look forward to reporting solid numbers in the quarters ahead, as the economic recovery progresses." 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 replays of the webcast will be available until July 31, 2004. 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 9,000 team partners who serve more than 175,000 customer locations in 46 states, Canada and Europe from 170 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 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) Thirty-nine Thirty-nine Thirteen Thirteen weeks ended weeks ended weeks ended weeks ended (In thousands, except per share data) May 29, May 31, May 29, May 31, 2004 2003 2004 2003 - ------------------------------------------------------------------------------------------------------------------------------ Revenues $ 541,290 $ 449,294 $ 182,985 $ 153,690 - ------------------------------------------------------------------------------------------------------------------------------ Costs and expenses: Operating costs 347,024 288,182 116,223 97,041 Selling and administrative expenses 110,611 93,638 36,750 30,088 Depreciation and amortization 34,389 29,906 11,662 10,218 - ------------------------------------------------------------------------------------------------------------------------------ 492,024 411,726 164,635 137,347 - ------------------------------------------------------------------------------------------------------------------------------ Income from operations 49,266 37,568 18,350 16,343 - ------------------------------------------------------------------------------------------------------------------------------ Other expense (income): Interest expense 9,135 3,496 2,891 1,304 Interest income (785) (1,112) (154) (279) Interest rate swap income (1,454) (666) (554) (306) - ------------------------------------------------------------------------------------------------------------------------------ 6,896 1,718 2,183 719 - ------------------------------------------------------------------------------------------------------------------------------ Income before income taxes 42,370 35,850 16,167 15,624 Provision for income taxes 16,312 13,802 6,224 6,015 - ------------------------------------------------------------------------------------------------------------------------------ Income before cumulative effect of accounting change 26,058 22,048 9,943 9,609 - ------------------------------------------------------------------------------------------------------------------------------ Cumulative effect of accounting change (net of income tax benefit of $1,404 in fiscal 2003) -- 2,242 -- -- - ------------------------------------------------------------------------------------------------------------------------------ Net income $ 26,058 $ 19,806 $ 9,943 $ 9,609 ============================================================================================================================== Weighted average number of shares outstanding: basic 19,191 19,185 19,200 19,168 - ------------------------------------------------------------------------------------------------------------------------------ diluted 19,253 19,220 19,271 19,175 - ------------------------------------------------------------------------------------------------------------------------------ Income per share -- basic: Before cumulative effect of accounting change $ 1.36 $ 1.15 $ 0.52 $ 0.50 Cumulative effect of accounting change -- (0.12) -- -- - ------------------------------------------------------------------------------------------------------------------------------ Net income $ 1.36 $ 1.03 $ 0.52 $ 0.50 ============================================================================================================================== Income per share -- diluted: Before cumulative effect of accounting change $ 1.35 $ 1.15 $ 0.52 $ 0.50 Cumulative effect of accounting change -- (0.12) -- -- - ------------------------------------------------------------------------------------------------------------------------------ Net income $ 1.35 $ 1.03 $ 0.52 $ 0.50 ==============================================================================================================================
UNIFIRST CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands) May 29, August 30, May 31, 2004 2003 (a) 2003 - ----------------------------------------------------------------------------------------------------------------------- Assets Current assets: Cash $ 5,673 $ 6,053 $ 7,389 Receivables 76,267 57,941 63,984 Inventories 35,063 25,355 27,052 Rental merchandise in service 63,349 60,490 59,939 Prepaid taxes 7,154 5,591 2,156 Prepaid expenses 1,024 407 386 - ----------------------------------------------------------------------------------------------------------------------- Total current assets 188,530 155,837 160,906 - ----------------------------------------------------------------------------------------------------------------------- Property and equipment: Land, buildings and leasehold improvements 238,281 221,487 218,576 Machinery and equipment 258,702 238,820 243,599 Motor vehicles 70,064 66,081 65,593 - ----------------------------------------------------------------------------------------------------------------------- 567,047 526,388 527,768 Less - accumulated depreciation 275,347 251,806 254,668 - ----------------------------------------------------------------------------------------------------------------------- 291,700 274,582 273,100 - ----------------------------------------------------------------------------------------------------------------------- Goodwill 177,363 62,608 62,640 Intangible assets, net 59,687 20,524 20,275 Other assets 2,319 1,036 639 - ----------------------------------------------------------------------------------------------------------------------- $ 719,599 $ 514,587 $ 517,560 ======================================================================================================================= Liabilities and Shareholders' Equity Current liabilities: Current maturities of long-term obligations $ 1,261 $ 2,493 $ 2,525 Notes payable -- 104 -- Accounts payable 40,369 30,678 31,476 Accrued liabilities 71,394 53,670 57,406 Deferred income taxes 2,556 -- 651 - ----------------------------------------------------------------------------------------------------------------------- Total current liabilities 115,580 86,945 92,058 - ----------------------------------------------------------------------------------------------------------------------- Long-term obligations, net of current maturities 202,582 67,319 72,725 Deferred income taxes 41,394 24,943 23,300 - ----------------------------------------------------------------------------------------------------------------------- Shareholders' equity: Common stock 1,082 1,060 1,056 Class B common stock 998 1,018 1,021 Treasury stock (26,005) (26,005) (26,005) Capital surplus 13,019 12,693 12,548 Retained earnings 372,168 348,043 341,472 Accumulated other comprehensive loss (1,219) (1,429) (615) - ----------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 360,043 335,380 329,477 - ----------------------------------------------------------------------------------------------------------------------- $ 719,599 $ 514,587 $ 517,560 ======================================================================================================================= (a) Condensed from audited financial statements