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)
January 5, 2005
UNIFIRST CORPORATION
(Exact
Name of Registrant as Specified in Charter)
| Massachusetts |
1-8504 |
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 |
| |
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act |
| |
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act |
| |
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act |
Item 2.02 Results of Operations and Financial Condition.
On January 5, 2005, UniFirst Corporation issued a press release (“Press Release”) announcing financial results for the fiscal first quarter ended November 27, 2004. A copy of the Press Release is attached as Exhibit 99 to this Current Report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
| EXHIBIT NO. |
DESCRIPTION |
|---|---|
| 99 | Press release dated January 5, 2005 |
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: January 5, 2005 | 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 | Press release dated January 5, 2005 |
Exhibit 99
| UniFirst Corporation | News Release |
|---|---|
| 68 Jonspin Road Wilmington, MA 01887-1086 Telephone 978-658-8888 Ext 520 Facsimile 978-988-0659 |
contact: John B. Bartlett Senior Vice President jbartlett@unifirst.com |
UNIFIRST ANNOUNCES
RECORD FINANCIAL RESULTS
FOR FISCAL 2005 FIRST
QUARTER
Wilmington, MA (January 5, 2005) — UniFirst Corporation (NYSE: UNF) today announced record revenues and earnings for its fiscal 2005 first quarter, the thirteen weeks ended November 27, 2004.
First quarter net income was a record $13.4 million, the first time in the Company’s history that net income exceeded $10.0 million in a quarter. This translated to $0.69 per diluted common share and was a 40.2 percent increase from last year’s first quarter net income of $9.5 million, or $0.49 per diluted common share. Revenues for the first quarter of fiscal 2005 were a record $188.4 million, a 4.2 percent increase from $180.9 million in the same period a year ago.
The primary reason for the significant increase in net income in fiscal 2005 was related to a decrease in operating costs. As a percentage of revenues, operating costs decreased 2.0% from 63.6% for fiscal 2004 to 61.6% for fiscal 2005. Of this decrease, 1.4% was from lower merchandise amortization for the locations acquired as part of the Textilease acquisition. The Company also benefited from cost savings realized from the Company’s manufacturing operations in Mexico and lower production payroll costs as a percent 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.
“As we enter our sixty-ninth year, both revenues and earnings were the highest of any quarter in our history,” said Ronald D. Croatti, UniFirst’s President and Chief Executive Officer. “We are very pleased with our record first quarter results.”
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 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 BALANCE SHEETS
(Unaudited)
| (In thousands) |
November 27, 2004 |
August 28, 2004 (a) | ||||||
|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,217 | $ | 4,436 | ||||
| Receivables, net | 81,395 | 69,471 | ||||||
| Inventories | 27,279 | 31,060 | ||||||
| Rental merchandise in service | 63,304 | 60,544 | ||||||
| Prepaid taxes and deferred tax assets | 4,184 | 2,753 | ||||||
| Prepaid expenses | 4,620 | 1,857 | ||||||
| Total current assets | 186,999 | 170,121 | ||||||
| Property and equipment: | ||||||||
| Land, buildings and leasehold improvements | 243,704 | 240,018 | ||||||
| Machinery and equipment | 263,278 | 258,736 | ||||||
| Motor vehicles | 71,748 | 70,048 | ||||||
| 578,730 | 568,802 | |||||||
| Less - accumulated depreciation | 288,409 | 280,012 | ||||||
| 290,321 | 288,790 | |||||||
| Other assets | 242,924 | 241,911 | ||||||
| $ | 720,244 | $ | 700,822 | |||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current maturities of long-term obligations | $ | 1,374 | $ | 986 | ||||
| Accounts payable | 35,434 | 33,754 | ||||||
| Accrued liabilities | 74,037 | 72,824 | ||||||
| Accrued and deferred income taxes | 12,552 | 5,611 | ||||||
| Total current liabilities | 123,397 | 113,175 | ||||||
| Long-term obligations, net of current maturities | 171,146 | 177,855 | ||||||
| Deferred income taxes | 42,102 | 42,043 | ||||||
| Shareholders' equity: | ||||||||
| Common stock | 945 | 928 | ||||||
| Class B common stock | 976 | 993 | ||||||
| Capital surplus | 13,175 | 13,138 | ||||||
| Retained earnings | 365,904 | 353,196 | ||||||
| Accumulated other comprehensive income (loss) | 2,599 | (506 | ) | |||||
| Total shareholders' equity | 383,599 | 367,749 | ||||||
| $ | 720,244 | $ | 700,822 | |||||
(a) Condensed from audited financial statements.
UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| (In thousands, except per share data) |
Thirteen weeks ended November 27, 2004 |
Thirteen weeks ended November 29, 2003 | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenues | $ | 188,434 | $ | 180,898 | ||||
| Costs and expenses: | ||||||||
| Operating costs | 116,033 | 115,088 | ||||||
| Selling and administrative expenses | 38,601 | 36,827 | ||||||
| Depreciation and amortization | 10,663 | 11,028 | ||||||
| 165,297 | 162,943 | |||||||
| Income from operations | 23,137 | 17,955 | ||||||
| Interest: | ||||||||
| Interest expense | 2,191 | 3,242 | ||||||
| Interest income | (369 | ) | (292 | ) | ||||
| Interest rate swap income | (223 | ) | (480 | ) | ||||
| 1,599 | 2,470 | |||||||
| Income before income taxes | 21,538 | 15,485 | ||||||
| Provision for income taxes | 8,184 | 5,962 | ||||||
| Net income | $ | 13,354 | $ | 9,523 | ||||
| Weighted average number of shares outstanding: | ||||||||
| Basic-Common Stock | 9,281 | 9,009 | ||||||
| Basic-Class B Common Stock | 9,926 | 10,175 | ||||||
| Diluted-Common Stock | 19,277 | 19,249 | ||||||
| Net income per share: | ||||||||
| Basic-Common Stock | $ | 0.78 | $ | 0.56 | ||||
| Basic-Class B Common Stock | 0.62 | 0.44 | ||||||
| Diluted-Common Stock | 0.69 | 0.49 | ||||||
| Dividends per share: | ||||||||
| Common Stock | $ | 0.0375 | $ | 0.0375 | ||||
| Class B Common Stock | 0.0300 | 0.0300 | ||||||