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 LOGO]
UNIFIRST ANNOUNCES FINANCIAL RESULTS
FOR FISCAL 2004 FIRST QUARTER
Wilmington, MA (January 12, 2004) -- UniFirst Corporation (NYSE: UNF) today
announced revenues and earnings for its fiscal 2004 first quarter, the thirteen
weeks ended November 29, 2003.
Revenues for the first quarter of fiscal 2004 were a record $180.9 million, a
21.3 percent increase from the $149.2 million in the same period a year ago.
Acquisitions accounted for 16.3 percent of the revenue growth. First quarter
income before the cumulative effect of accounting change was $9.5 million, or
$0.50 per share, a 9.9 percent increase from last year's first quarter of $8.7
million, or $0.45 per share. Net income increased 48.3 percent, from $6.4
million, or $0.33 per share in fiscal 2003 to $9.5 million or $0.50 per share in
fiscal 2004. In the first quarter of fiscal 2003 the company recorded an expense
of $2.2 million as a result of implementing SFAS 143 regarding long lived
assets.
"Overall we are pleased with our first quarter results," said Ronald D. Croatti,
UniFirst's President and Chief Executive Officer. "Acquisitions accounted for
16.3 percent of our revenue growth, which means that the internal growth in our
existing operations was 5.0 percent for the quarter. This growth was all from
our core laundry business as there was a small decline in the record fiscal 2003
revenues from our UniTech segment. Improved earnings were due primarily to
better performance from our laundry operations and additional profits from
manufacturing, offset somewhat by higher interest expense related to the
Textilease acquisition."
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 January 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)
Thirteen Thirteen
weeks ended weeks ended
(In thousands, except per share data) November 29, November 30,
2003 2002
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Revenues $180,898 $149,179
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Costs and expenses:
Operating costs 115,088 92,690
Selling and administrative expenses 36,827 31,899
Depreciation and amortization 11,028 9,884
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162,943 134,473
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Income from operations 17,955 14,706
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Other expense (income):
Interest expense 3,242 1,094
Interest income (292) (268)
Interest rate swap income (480) (209)
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2,470 617
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Income before income taxes 15,485 14,089
Provision for income taxes 5,962 5,424
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Income before cumulative effect of accounting change 9,523 8,665
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Cumulative effect of accounting change
(net of income tax benefit of $1,404 in fiscal 2003) -- 2,242
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Net income $ 9,523 $ 6,423
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Weighted average number of shares outstanding:
basic 19,184 19,218
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diluted 19,249 19,271
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Income per share -- basic:
Before cumulative effect of accounting change $ 0.50 $ 0.45
Cumulative effect of accounting change -- (0.12)
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Net income $ 0.50 $ 0.33
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Income per share -- diluted:
Before cumulative effect of accounting change $ 0.49 $ 0.45
Cumulative effect of accounting change -- (0.12)
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Net income $ 0.49 $ 0.33
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UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands) November 29, August 30, November 30,
2003 2003 * 2002
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Assets
Current assets:
Cash $ 7,988 $ 6,053 $ 484
Receivables 77,627 57,941 63,384
Inventories 31,601 25,355 21,860
Rental merchandise in service 68,744 60,490 59,401
Prepaid and deferred tax assets 5,591 5,591 --
Prepaid expenses 515 407 586
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Total current assets 192,066 155,837 145,715
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Property and equipment:
Land, buildings and leasehold improvements 234,483 221,487 214,182
Machinery and equipment 255,286 238,820 230,952
Motor vehicles 66,991 66,081 64,019
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556,760 526,388 509,153
Less - accumulated depreciation 261,097 251,806 238,759
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295,663 274,582 270,394
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Other assets 242,304 84,168 85,601
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$ 730,033 $ 514,587 $ 501,710
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Liabilities and Shareholders' Equity
Current liabilities:
Current maturities of long-term obligations $ 1,673 $ 2,493 $ 2,710
Notes payable -- 104 1,299
Accounts payable 31,982 30,678 28,703
Accrued liabilities 71,528 53,670 55,389
Accrued and deferred income taxes 7,622 -- 2,015
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Total current liabilities 112,805 86,945 90,116
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Long-term obligations, net of current maturities 237,951 67,319 70,259
Deferred income taxes 33,727 24,943 27,004
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Shareholders' equity:
Common stock 1,061 1,060 1,055
Class B common stock 1,018 1,018 1,021
Treasury stock (26,005) (26,005) (26,005)
Capital surplus 12,789 12,693 12,519
Retained earnings 356,923 348,043 329,373
Accumulated other comprehensive loss (236) (1,429) (3,632)
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Total shareholders' equity 345,550 335,380 314,331
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$ 730,033 $ 514,587 $ 501,710
=======================================================================================================
* Condensed from audited financial statements