Q4 2024 UniFirst Corp Earnings Call Transcript
Key Points
- UniFirst Corp (UNF) reported a strong fourth quarter, exceeding expectations in both top and bottom line performance.
- Full year revenues reached a record $2.427 billion, an increase of 8.7% from fiscal 2023.
- Operating income and adjusted EBITDA increased significantly for the full year, benefiting from lower costs related to key initiatives.
- Cash flows from operating activities improved by 36.8% compared to fiscal 2023.
- The first aid and safety division exceeded $100 million in revenue for the first time and is expected to achieve double-digit growth in fiscal 2025.
- The company is experiencing a more challenging pricing environment, impacting retention rates and sequential revenue trends.
- Net wearer metrics indicate a less robust hiring environment, with a sequential decline observed.
- Organic growth in core laundry operations is expected to slow to between 1.3% and 2.3% in fiscal 2025.
- Specialty garments segment revenues are forecasted to decline by approximately 4% in 2025 due to projected declines in the nuclear business.
- Margins in the core laundry business are expected to be pressured by elevated depreciation, stock-based compensation, and costs related to key initiatives.
Good day. And thank you for standing by. Welcome to the fourth quarter 2024 UniFirst earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Steven Sintros, President and Chief Executive Officer. Please go ahead.
Thank you and good morning. I'm Steve Sintros, UniFirst's President and Chief Executive Officer. Joining me today is Shane F. OâConnor, Executive Vice President and Chief Financial Officer. Would like to welcome you to UniFirst Corporation conference call to review our fourth quarter results for fiscal year 2024.
This call will be on a listen-only mode until we complete our prepared remarks. But first brief disclaimer, this conference call 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
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