UNF - Earnings call 4 2023 | UniFirst Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the UniFirst Corporation Fourth Quarter Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Steven Sintros, President and Chief Executive Officer. Please go ahead.

Steven Sintros

Thank you, and good morning. President Executive UniFirst's Sintros, Steven and Officer. Chief I'm

our O'Connor, President to fiscal and me to you today Financial year Vice Shane is review call conference like Joining XXXX. Chief for Executive Officer. UniFirst Corporation's quarter fourth results to the welcome We'd

and future This forward-looking words be reflect with certain may optimistic, and call contain listen-only events These statements that forward-looking on mode our views we complete conference risks and call future remarks, believe, intend statements. to performance. are subject identify disclaimer. but indicate financial statements to expect, This and that uncertainties. anticipate, company's will similar trends the respect current brief events first, a until The expressions a brief forward-looking estimate,

anticipated may a results differ on risk those from materially depending factors. future of variety Actual

the more filings and of discussion these refer risk the XX-K with please Securities Commission. For in Form XX-Q most Exchange information, recent to our factors and

report fiscal I'm We accomplished year expectations team and performance. line that modestly with XXXX, bottom in lot both we pleased making forward, as transformation our as progress our that quarter that we in strengthen business, of technology our our and will in our on midyear company a strong a exceeded closing to growing fourth top a acquisition move the closed Uniform. help Clean

the our our serving partners universally our All continue people best who being mission living team of provider the to for all vision thank work. do we as the the customers, and service sincerely strive each as of industry. who deliver to other want towards while hard I recognized in of always our

accomplished always our It XXXX have take what of and as record fiscal final of year company's forward. no to continued have that top moving on in results growing we expand minutes comes report that want we our the to a couple long-standing we what company surprise as 'XX, store a as line. I we

year fiscal fiscal increased XXXX, XX.X% billion. revenues to full $X.XXX Our

driven Our Core impact new Laundry with operations account sales environment. showed of strong of year, the well our to customers the in organic as the inflationary effort the work during by solid the share to impact growth as

also more bolstered We with were of able what growth acquisition bring Clean the was Uniform. our couldn't by UniFirst midyear pleased Overall to Clean into be family. we

tremendous continue a fit in culture. within overall on organization of excellence We their terms feel they as well to our service focus as are

assets, on early companies constructive been most Clean's bringing important days and its initial customers. retaining our have together its very focused being with of people primarily The efforts

very also We CRM the of are has excited respect UniFirst with that about leveraging Clean team experience to some knowledge and the technology.

to well built of of applications the and proprietary As some further CRM. that as has enhance the efficiency our usability Clean

X will months be the patient Clean that produced the to in operating brings we in as solid of quarter, full being discussed transformation, due with service said, very and we integration our closing last the of strategic has date, businesses. reputation where as the well X since and That results. it, the As we Clean are leadership strong and the technology complexities

Garments revenues Specialty record the and bottom with profits the fiscal in Our XXXX, year. strongly and contributed on segment line top during very

segment Nuclear Garments reminder, is As operations. Cleanroom of a our Specialty our up both and made

to expect steady forward. to continues show division growth profitability, continue move as Cleanroom we in Our which we

our volatile mentioned can the the results have be projects. based years, of division's certain over Nuclear on As impact we more

customers. large activity As well as very with some in swings

'XX. believe grew its to First of in customers. Safety and our fiscal decreased do which revenue Canadian this we In future division results, We the very a take to Nuclear fiscal its segment record-setting XXXX division, 'XX, expect step the from Aid from strongly of back bright XX.X% in due

in investments can service expand reach make infrastructure of UniFirst existing our that ensure to customers. the we segment continue this footprint sales and and to We

have for market new as the strong a well need in these products prospects As that and services.

As structure we limited certainly expand the ability this are expected, expand of a of meets segment, to building business the larger, but more reach towards customers' the much have longer-term profitability our our and happy investments progress route that to with goal profitable needs. the our

of corporate-wide year, have As X designed we Oracle technology -- the of company initiatives large rollout to in we capabilities have transform progressed competitive system. are progress the and positioning. ERP discussed our CRM These and throughout terms we on our the our have overall to initiatives continued new

respect project core U.S. today, the deployed a new as our XXX% With of CRM laundry operations onto our effectively we've to systems of system.

optimize is Going CRM, the to to Clean's our system, to new new our footprint. technology, work aligning there enhancements further still conversion with done full barcode be technology to including forward,

as well our As with integrating ERP.

these understand X we costs X our expenditures Over estimates to or cost will continue operating and his to key think the shortly years, commentary our additional will Shane is of results. as impact initiatives the that initiatives. these on capital it next provide having related to comments results and these important in expand through we are

to allowed the continues in solid the progress make Overall, we to of how our given natural footprint, ESG. a our continue excited environmental, be model that our role and as industry enhancing these us economy's proud rental continue to of governance, position the part company company has always fact environmental for will recycler. The success. contributions of company as and future nature a the about I'm to investments area of the do social

operation like of utilization as well As better ours enables. in the resources

fleet continue textile with delivery detergent, of of solar, like water of in make energy our reduction areas of LED in upgrading vehicles, growing consumption, electric We efficient environmentally more. facilities sources recycling the laundry renewable and to lighting, progress investments creative

impact ourselves meaningfully the these on to are been our reporting of environment, of focused the the have our support right ensure and increase positive business. While to we a ongoing, and preparing efforts level making impact measurement customers many are to investments we on have

throughout operational by impacted our discussed profits our in the continued pressured to inflationary compared the environment. prior being we've have year, years costs, Core Laundry by to be As higher

we look margin our key our service levels. in control on beyond, As be affect initiatives focus can be to transformational model, will our all Executing managing are ability improvement to areas of fiscal we a critical, while certainly we costs execute impact will 'XX growth the also our or adversely and on organization. don't customer assuring forward

on In addition in focused margin areas. many we execution, to opportunities day-to-day are

done, our account manufacturing profitability new and Areas sourcing UniFirst. strategic across mentioned, pricing of As work is of all proprietary as strategic significant I and represent and Clean's of the there technology optimizing being some including leveraging opportunities. use CRM, such

these discuss the the Although some continue more benefits about ERP, of midterm. our to needle Shane on be move will significantly going focus to the enabled these of we can and in shortly, which more areas others, near forward feel through will we implementation

Overall, solid to be we expect fiscal year 'XX UniFirst. for another

As at EBITDA our improve $X.X midpoint, billion. XX%. to by top consolidated surpass And outlook includes, we line expect approximately the our to

this that initiative to attributable growth. Although double-digit of some EBITDA excluding growth key show is benefit, to costs, projected is lower even

overall I'd transform to our who customers the while expect these for and capabilities. to continuing continue to more turn as dedicated company on always a like thousands again of provide the I'd deliver like technology of to Overall, to journey our Shane, over our we possible. once and company our partners all results. we With everything quarter will in thank fourth call terms team to goals, accomplish accomplish who that, details make

'XX. our for As fiscal well outlook as

Shane O’Connor

operating $XXX.X XXXX, revenues an Steve. X.X%. million And were consolidated fourth million, our in million a of or XX.X% of $XX.X Consolidated quarter Thanks, from increased million income to from $XXX.X year ago. $XX.X increase

from the per diluted million or diluted share. $XX.X to increased or Net income $X.XX for $X.XX per quarter million $XX.X share

we become last of As be metric us valuable believe forward. as noncash in we increase we include quarter, going due our mentioned intangibles Clean that amortization, the that EBITDA will in for commentary acquisition-related result the a incurring to a to will acquisition,

million year Consolidated million prior or the $XX.X compared in to $XX.X EBITDA XX%. to increased

$X.X fiscal directly respectively, $X.X in quarters fiscal attributable million, results financial initiatives. our costs and of to fourth Our XXXX included million key the XXXX and of

we $X.X quarter of the to addition, related during Clean XXXX fourth Uniform, fiscal approximately of costs In the incurred million. acquisition of

items these both operating and $X.X $X.X and $X.X and million combined income EBITDA million million, decrease by income diluted by XXXX of $X.X fiscal to fourth and of and XXXX $X.XX, respectively, the effect The respectively. EPS quarter by and million, on respectively. Net $X.XX

in XXXX. Core Our $XXX fourth as increase of operations growth, well quarter which organic the million, estimated fluctuations were Laundry of Laundry with cost our last our Core was from effect revenues sales dollar, was an impacted adjusts in by the performance. increases pricing XX.X% we of have for as quarter that acquisitions, as for the the X.X%. incurred to growth organic as efforts year well rate the customers share solid This business over the Canadian

X% in quarter the Laundry Core from decreased to operating for X.X% prior margin year.

segment's the X.X% XXXX initiatives of operating margin operation XXXX the Laundry by Core EBITDA incurred and The acquisition to our from and the increased to EBITDA margins decrease both XX.X%. key costs the quarter and Core X%, XX.X% to recorded we and the were segment, and related to fourth fiscal However, Clean for combined Laundry respectively.

for purchase as margins partially revenues. costs. the related Clean recent and further the noncash the impacted a lower of energy Uniform in higher form offset additionally purchase EBITDA were most impacted payroll merchandise, The by for segment's accounting amortization. operating of were the notably -- costs Which most legal margin, payroll-related The and intangibles operating by acquisition and elevated segment's percentage

XXXX. ago. fiscal our million, $XX.X and operations. Specialty and growth the increase X.X% by XXXX. cleanroom were of The services, quarter of was of year operating top which quarter products the for fourth an the an million American and revenues, Segment's primarily line Nuclear X.X% $X.X for XXXX, costs specialized driven from North down its over were Nuclear Garments Revenues cleanroom XX.X% quarter over increase a from Energy segment, of XX% income decontamination segment's was delivers during

increased operations $XX.X million million, quarter the Our segment's in to from contributing this van to First wholesale XXXX with both the growth. Aid $XX.X fourth revenues of and

operating segment during we the be reflect for These First the of loss our in business $X.X and building to foundation to a eventually quarter. larger expanding what an investment expect the Aid business. million much results continue our had However, van

financial repurchase cash, continue position At debt no common the investments repurchase current the balance stock additional and with under equivalents long-term sheet solid and reflect quarter. any We end our cash and did fiscal million. during totaling we $XX.X XXXX, stock program short-term not of a to

X Cash compared $XXX.X $XXX in invest we to operating business. businesses our for million primarily to $XXX.X to in million. In expenditures of year of the $XXX.X needs which with of we lower working future for increased activities prior continue in due the by capital the year, XXXX, million to provided fiscal acquisition million capital paid

will being outlook fiscal of to The most fiscal Uniform the like I'd the this to $XXX our provide one compared week million. for purchase acquisition for calendar. Clean operations, XXXX, our which significant fiscal include approximately a to price opportunity to of extra of due XXXX, timing take

$X.XX at time, million will This attributable projects. this $XX between full fully we costs, and diluted of for and key $X.XXX $X.XXX which We point, includes our initiatives, that ERP we this CRM and between our only will be At relate to to expect our to expect that the expect earnings $X.XX. guidance billion incur XXXX be revenues year further fiscal billion. share per

an expected costs assumes margins the X.X% X.X%. Laundry growth be And assumed These million, Laundry the This the decreased be X.X%. excludes our to also were are cost week to at $X.XX. key EBITDA is operating the decreased midpoint effect and our which X.X%. assumption EBITDA be operations of and outlook $XXX.X of key Core range XX.X%, Core initiative initiative assumptions by Which Consolidated by respectively. revenue to organic of increase growth, of EPS its extra XX.X%. by

ERP conclusion initiative initiatives, costs operations of lower Our domestic capitalizable. system largely due to Core of operating implementation CRM the we rollout to and are phases our to reflects margin that entering Laundry to XXXX and primarily related key the our expect improvement, compared EBITDA our direct incur

Energy costs And moderating XX%. year's as expected costs ease. well in of other to be merchandise and are to fiscal have environment tax is X.X% effective costs rate as have been impacting revenues inflationary XXXX. be assumed our As the headwinds next input to operating that and continued

the revenues Canadian Garments be from to partially down forecast offset in Specialty the in projected due XXXX by cleanroom X%, approximately business, business. Our growth continued declines are to Nuclear by

will will XX%. operating The income impact in a on be change segment, we expect of and mix business the have larger approximately down profitability this

past, the timing nuclear due as period, the profitability from as projects. and in outages reactor segment's we seasonality can to As commented this have and of period results vary well significantly to

are be marginally XXXX, and up Aid segment's expected profitability expected to is compared to be First the revenues approximately Our to XX% segment's positive.

capital We investments expect higher million, the lower few last will that application approximate that run Partially strategically expenditures which have investments, our XXXX $XXX years. reflects related development new our implementation. most over significantly by ERP offset in high to facility

have initiative, capitalizable. our phase phases Starting ERP the now the entering we our will of global where we was of XXXX, costs design of XXXX, capitalized. focused be Throughout first not on efforts majority in initiative, implementation which the quarter will of our the be

supply subsequent by will the with phases initiative ERP with master focus. focused expect We data be procurement will multiyear early the implementation finance on management a chain and our followed XXXX, and that through phases capabilities, continue

this total the in strategy approximately world's expect services amount of to with assist professional and $XX one We through of largest effort. firms million us our be partnered implementation project the to execution, have

initiative We organization. will this the to capabilities expect benefits it the and our following will provide enable,

and daily needs us improve effectively, more inventory time new and our existing planning our the inventory the forecasting levels install of will to accounts customers. fulfill Improved manage to allow

As well sourcing as costs. improved direct

oversight organizational inventory. improved visibility stock around enable negotiation into Improved and more used effectively to our capabilities room analytics spend. management will sourcing strategies Enhanced as inventory us management with well us garment centralized centralize enhanced of to vendor will utilize local and as visibility, procurement and enable

will the to our back-end XXX IT of our our of in data enhance and our quality functions will complexity deliver. efficiency these operational We believe basis will office processes benefits improvement manual of reduce points provide simplification EBITDA to margins. of and Automation cost architecture XXX improvement and that to

time from realize. project we the the the and larger to phases of be caution take will derived that However, value later will

our level assumes we that happy affecting questions the guidance economy. Our would any and current concludes our changes have. common generally be shares might and now This answer outstanding of no unexpected remarks, prepared you to

Operator

from with Our [Operator first Patnaik Instructions] the question comes of line Barclays. Manav

Ronan Kennedy

versus 'XX? to Ronan cross-sell of is contemplated for I those Can from Manav. the the and the just Kennedy components overall compare This And those on pricing guidance new disclose and extent them to penetration confirm the you please is each in for what business? historic contribution levels how outlook then the for

Steven Sintros

talked but seeing historically decrease. 'XX we've forward. back we of what with not have we that So large components, Particularly the over that pricing item and of I guess, give to, can you that broken to well. we the the that given we're a inflationary directionally as 'XX, impact out expect XXXX some half in what expect seen respect those condition, I broader and going about, we being expect We've

be We new from to expect contribution and XXXX. sales account retention similar in

As well cross-sell. as

our of the I growth, trajectory. components reasonably other think we, stable

I half have this assumed continued wearer and would 'XX. year, be the through talk And levels. back stable of terms of the wearer at through one that's this is we've to say other In point we what components often of going about levels

Ronan Kennedy

broader the impact for pricing That's I materials, follow-up, helpful. then and regards merchandise the you a pricing specifically of where to and commodity And may, as confirm macro if those? labor for be assumptions will capturing inflation. just -- how the And with more amortization the

Steven Sintros

Yes.

things different of a terms you In couple of mentioned there.

merchandise in infused of when in some of In the the to years, talked we raw last exacerbated less labor escalate, quantity coming a escalating cost in our and merchandise coming higher obviously has costs, merchandise given lot of on. we've a The terms caused the growth merchandise freight, perspective different of environment. merchandise from the have overall of costs, including seen of pandemic, in out number by our areas, pandemic couple both the heads, lows of was labor how a off strong so materials

costs, to trajectory And flatten. to A the We're number exists lows happening the that bit to getting a areas. pandemic. point smaller are like cases, really year we extent, things of also are all a a mats also, for rubber on, start imagine, can costs, lower cotton if experiencing follow little things in costs in moderated you causing have ago. so things and and and raw product, as like merchandise of some you our coming population freight a this off mature at bringing And material in from more on it are

to is merchandise those to our are way cost and the chain our fact contribute things supply the So starting overall to a starting flatten bit. that work through

Operator

Our of next Blair. William Tim Mulrooney from question comes with the line

Timothy Mulrooney

know up mentioned the darn in I know last of you historically I attrition quarter, months, over business? tick just the to rates a few retention on the customer that seen retention been high. last up I your follow aspect pretty the wanted you've slight but

your curious how relative current standards? quarter. were to rate And just about you've change historical if we're compares last in So to attrition talking any seen this when you customer

Steven Sintros

Yes. months. a since been last quarter. I much change a not few just It's would say of

think we the were overall year, higher. a for stands I the comment that bit

costs, have and of to sales were energy more anecdotally year retention this maybe bid. control of more just put It's out delayed and historical, a to that decisions When step a of of bit lot feedback on, had that this couple the years. of would took whether year. we improved say our so maybe retention the that from people could looking back and for of maybe own some A you pandemic it. little as on the things both customers, during impacted And vendors, lot around kind things a I little of a side, then sort changing a it's their say maybe

technology is to model process a a on of transformation high our So transformation and we're lot rates to continue company. as things improve the that certainly, focused and our retention. continued ongoing that retention With assumes growth

So much say I from change of few would ago. a a not months

Timothy Mulrooney

other I Okay. X Steve. actually, have One -- quick ones. more

comments, at that multiyear through be made to continue towards I've points going that's the XXX end. make I just but got initiative to right. should this end most margins, that's to of on the up project. So be XXX Benefits going sure following a the you realized It's of XXXX. the Shane, ERP basis EBITDA want to

it after -- maybe time will take some So that. and

won't So we correct? thinking is see this sure of or I'm benefits later. from lot that that XXXX this want to Is correctly. make likely a Like -- the just about until fiscal this,

Shane O’Connor

Yes. Yes.

what was there. communicating sort that, I think I that's of

Now in that earlier will will in there go of earlier we through those realized -- the the activities. some some as be of benefits right, phases, or FICO finance-centric centric be

sort capabilities But being the some capabilities, that procurement the is communicated well more phases. of the here value as meaningful around is later supply the really chain of that as are

more I expected to yes, I is in those when realized meaningful phases that we had the to, So the be guess, value mentioned. capabilities get later

Steven Sintros

companies In add big chain. supply One product certainly I in thing many about how and And more cases, getting pandemic, product. optimize, you want area of it to alluded being a got maybe of my to their got and was it I experience opportunity. think comments, chain to able disruption where sort during many you've supply is in is that, as we to than the product is

ERP years. and are we into improve the and we few benefit ultimately efforts profitability next enable. accelerate so the help areas chain that initiatives think And the Even our leading supply cost in will can benefits those and making to over that

the is I eventually fully. areas, these the end the of waiting will wanted to to the but enable So ERP make in context not make that comment just to improvements in those ERP we're

Timothy Mulrooney

the I impact wanted in in what their is appreciate do try longer-term much that wanted week Uniform to the to I quick, in which to Understood, be And apologies you make housekeeping the that just had fiscal acquisition right from and stuff, to to XXXX? there. really a project the quarter -- how revenue quarter? work I just on more understood question, timing to on I'm a sneak to that sure wanted analysts. Clean contributed expect but see extra color extra going My it's just to one understand

Shane O’Connor

Yes.

acquired when of quarter sorry, -- again, is million. So Their I'm rate I was we the Clean, missed about second run that. with And the part $XX the actually question. for line largely it in

Timothy Mulrooney

is when fourth the in curious, No worries. of Just that should extra just out always in I organic sit work be curious it was adjusting growth? quarter? that quarters? different just -- week we for Does sometimes

Shane O’Connor

in that's where good And Yes, fourth had week the quarter. extra number we a question. the the time quarter, usually we've year. be a Yes, of our historically last XX-week is over fourth have to in instances, it going

Operator

comes question next with line Kartik from Our the Mehta of Research. Dorscoast

Kartik Mehta

you're thoughts economy, And anticipating pullback your just Steve, your on your it pretty the not on economy. on about positive that about giving are customers on much feedback how as feeling the business. customers the where assuming I'm based -- maybe guidance, feeling and are obviously, seems their of a though you they're how

Steven Sintros

Yes. stable environment. a pretty I say would

always it out whether I another you see We're think rates, recently. environment given cautious numbers of the creation to shoe drop. obviously there's interest job with with some the the coming

But bring a still I out still bit bit employees, easier labor our companies a investments, there. own be see competitive to side. it's on in environment making but little it say now, hiring It would We may a right hiring. are little

Which, and customers from right now. we're pulling really back, to that's us, people tells aren't seeing what us our that

we we it's indicators not into but to pretty right now. assumptions. environment that to that built we Obviously, any healthy have So of think any turning, for continue of a out our look

Kartik Mehta

to to -- just they or lower you're X all customers like environment, wondering, extra you willing Shane, had where that And maybe, any where inflation. think aren't of you competition? from that just pullback is this the is pricing ago? a what's seeing that year last little then, because a And to in you're Or asking Steve, bit a or a are happened I'm of extra of inflation related did change expecting on were pay pullback I year with related said or

Steven Sintros

Yes.

be can cautious think cost. as I as to is with trying they everyone

our customers and included. included Ourselves

remains, It say It's I but change environment competitive, far it I goes, near-term from years. prior the quarters, any it's as think as been stable think that. remains aggressive, there's prior competitive in right? I wouldn't

we work our continue And customers. to with

I necessary year as environment, impression want we I a say. ago, that would to but given back don't So bit a price give little it's can't pulled the the from obtain

Kartik Mehta

just Right. one last And question.

Shane, you on think, that talked to segment? I breakout part expecting about that should Garment continue business the grow. Clean Specialty that the business you're down, to be within the of but What's of energy That side Nuclear.

Shane O’Connor

At this point in time, that segment is about XX-XX Nuclear versus cleanroom.

Operator

Our with next line Andy question the comes from of Wittman Brad.

Andrew J. Wittmann

I better. guess 'XX bit sure I the make I to just a understood guidance wanted little

So like by is coming basis, if a your maybe my XX% Shane, I implied factors excluding costs, looked margins to our calculation. 'XX EBITDA about key I guess looks one adjust this out about initiatives compares you on at way. the XX% If it the it in Clean

a correctly, thinking just factors. merchandise modest on out you're labor, picking the that and 'XX just So to But the because the penalizing first a there, being the confirm not some way margin down also, with? pretty I little on cleanroom, margin like guidance it's you're things Core to Nuclear that. increase segments the bit of about, start but wanted thinking the the it called about those you the with about cleanroom -- Am business of feels up of I the because

Shane O’Connor

about XX right. points of XX, I at margin my basis look No, of that's improvement. Core, exactly a I'm take little improvement, a If expecting bit

costs. Really the that just of key that we merchandise down Sort probably break the that last of fact the to It's what significantly merchandise Still there bit lower XX over trend. for initiative seeing of is, a the obviously, a is of what couple moderating. the to is we're had a seeing from headwind little side. the positive the impact mentioned experienced -- headwind. excluding reduced XX that basis is points which But we've years, on you,

as and not is continuing have amortization, impacting in side, trended nontangible sort lower XX operating trends to well. we're are XX comments, there's and about ease, headwind my other which is XX But a Energy percentage of that's And about offsetting my revenues there Steve actually income, as pressures of articulated points sort points I as of favorable of basis that my acquisition or EBITDA. those Clean The number a -- are that some income but of articulated input basis inflationary the costs on as probably the of other benefit. points seeing then items. the operating

Andrew J. Wittmann

I effectively sense. guess fully makes are here, is think, not, being the question the with of CRM. maybe items about talked CRM I my by That Okay. implementation don't the implemented the you really that affected

this bit of it's think tool -- But customer little I a that and as more. question, can about the know the in retention of about maybe XXXX, I not you've the talked a guess, to arise as may CRM some there isn't efficiencies all efficiencies. So be kind maybe benefits I where is would from or there'd that contribution positive be more why there

Steve, could you address So maybe, that?

Steven Sintros

Sure.

it critical to kind right? some mentioned our getting have I of drivers perspective. Overall, talked modernization in was we think the about talked one perspective in us are do, think And of the of And I of you about being it, I've the route from some the work we to see a of some service that that of some customer -- of areas place as control, CRM merchandise and employee enhance. that. an which starting retention helps

And collect that and of think are merchandise our I in improvements if the merchandise. talk merchandise, we ability loss overall tracking on to our seeing So of area. when the we moderation there's charges, about

the some been has deployed of the by CRM, as muddied we've think that inflationary condition. I

hopefully, of we lower as of in and forward, some the And to continue through merchandise a that benefit. really start we'll seeing area so percent as that move of see more of come revenue that

I prepared about this. remarks and will my in I say, made comments

the that of We enhance enhance in profitability, some had some CRM, applications of CRM the the of they maintenance. the built experience continue and Clean and some account good that usability to with area to had CRM. the tracking

And and price so we improve areas well. edges that the benefit think think we in can some of We so management the as of that around getting on.

and management merchandise and areas. pricing, I'd really management customer say, it's are there retention, the of revenue So

And the pull as it's we'll and results, CRM implicit efficiency our drive to of out of possible. to so to continue in it try much it's as

Operator

from next of Steinerman JPMorgan. Our Andrew with the question line comes

Andrew Steinerman

Shane, in of the intangible us could mention just 'XX? did you And you amortization a also what will the amortization Clean be from fourth in sense give that quarter?

Shane O’Connor

Yes.

Let front that me. me get in of

so one that that. intangibles that noncash so that the -- the component in do our of that our things is, provide cash in we flow, we've a release, did of to footnote see press included amortization underneath So you visibility what can

out, fourth call well. to of that $X.X comparable is would the quarter. year year's quarter million, difference Clean run sort $XX.X in That the for being to majority was amount the acquisition. Uniform of million And difference project what next about Right? equates that quarter the $XX.X in million rate that as last Just the in versus

Operator

Our Chan Josh [Operator Instructions] next comes with line of question from UBS. the

Joshua Chan

with kind Just some could the guess the you the could improvement us in be through of a in your how it the year? to then expecting would recover year, for you core the kind give through sense first XX margins flow of of year of and Are part down I next of basis that points to you margin you shape? back XX us help half? of

Shane O’Connor

as there's perspective of that There's aside as Yes. impact some down in quarter first second that timing really, I we year. slight we margin And the as oftentimes, Right? slightly have go quarter. of seasonality holidays. of costs the quarters see obviously, from the we I the well mean, a the because our where a margin or incur higher is profitability our mean that we our from realization improvement, throughout slight margin -- some of in

impact of the But will it's as it's had. mainly our Again, we a the year to percentage experience relatively moderate, seasonal by go merchandise profitability revenues. as towards throughout of driven the primarily the historically -- it nominal. relatively Again, continuing trend

Joshua Chan

the And tapered on follow-up, you side bit Perfect. at Okay. that things. guess CapEx from, little mention off I a facility my for be would least did of

about just rationale Do good heading you in are like could facilities that? shape so feel And you next the into your talk year? behind

Steven Sintros

these new from elevated the that That's runs processing elevated In new or a when CapEx you $XX plant facility, plant plant comes so million Yes. builds. at general, the days. CapEx, biggest really look

X or get if that so elevated that's on, And CapEx. where going you of X of sort those have you

projects invest you and make our to to look at we're year, around we project into The around of less lowering increasing builds next where we this can. existing year replacing of Overall, on. we going last centralizing more equipment, facilities, large outlook for had the is And continue automation sort in when years. around, sure couple CapEx the really the commentary

that facilities on And ones acquisitions. obtained the a we had older facilities, of replacing couple had we through going with

to builds. So we're plant that the map, a invest new along little of rate on will further lower road we in a just a but continue the in bit at little facilities,

Operator

you. questions are the Instructions] at [Operator no to time. back call There will turn over further this I

Steven Sintros

have performance. a Great. everyone to us Thank everyone you, when our today I'd joining January, report and day. expect to speaking in our We like thank results. for to to great fourth quarter again look first quarter review forward to we

Operator

for today. We that That does call participation please ask conference your and your for thank line. conclude you you disconnect the

UniFirst (UNF) 18 Oct 232023 Q4 Earnings call transcript