UniFirst Q1 Results Beat Estimates

UniFirst Corp UNF reported first-quarter FY22 sales growth of 8.8% year-on-year, to $486.16 million, beating the consensus of $474.63 million. Adjusted EPS of $2.00 topped the consensus of $1.95.

• Revenues from core laundry operations increased 9.1% Y/Y to $428.8 million, and specialty garments rose 3.5% Y/Y to $39.5 million.
• Operating income declined 20.1% Y/Y to $44.79 million, and margin fell by 333 bps to 9.2%.
• UniFirst generated cash from operating activities of $7.82 million, compared to $52.74 million a year ago. It held cash and equivalents of $478.1 million and had no long-term debt outstanding as of November 27, 2021.
• The company repurchased 22,750 shares for $4.8 million during the quarter and had $97.3 million remaining under its current authorization as of Q1.
• FY22 Outlook: UniFirst expects revenues of $1.94 billion - $1.955 billion (prior expectation $1.92 billion-$1.945 billion) versus the consensus of $1.93 billion. This revised top-line guidance includes the impact of two small acquisitions.
• It sees adjusted EPS of $7.00 - $7.30 versus the consensus of $7.14.
• Price Action: UNF shares traded lower by 2.56% at $206.05 on the last check Wednesday.