NYSE$UNF

UniFirst Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

UniFirst reported an 11.0% increase in consolidated revenues for the fourth quarter, reaching $516.4 million.

UniFirst Corporation reported its Q4 and full year results for fiscal year 2022. The company's consolidated revenues for the fourth quarter increased by 11.0% to $516.4 million. Full year consolidated revenues reached $2.001 billion, a 9.6% increase. Diluted earnings per share for the quarter decreased to $1.39 from $1.82 in the prior year.

  • Consolidated revenues for the fourth quarter increased 11.0% to $516.4 million.
  • Operating income was $33.3 million, a decrease of 26.0%.
  • Net income decreased to $26.2 million, or 24.4%.
  • Diluted earnings per share decreased to $1.39 from $1.82 in the prior year, or 23.6%.

Headline financials

Total Revenue

$516M

Previous: $465M+11.0%
EPS (adj)

$1.79

Previous: $1.82-1.6%
Net Income

$26.2M

Previous: $34.6M-24.3%
Operating Income

$33.3M

Previous: $44.9M-25.9%
Cash & Equivalents

$376M

Previous: $513M-26.6%
Total Assets

$2.43B

Previous: $2.38B+2.0%

Revenue & EPS history

UniFirst · Revenue · Quarterly

$516M

Q4 2022+11%vs Q4 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

UniFirst · $634M total across 3 segments · Q3 2026

  • Uniform & Facility Service Solutions
    $576M
  • First Aid & Safety Solutions
    $30.8M
  • Other
    $27.8M

Forward guidance

For fiscal 2023, UniFirst expects revenues between $2.145 billion and $2.160 billion and fully diluted earnings per share between $5.50 and $5.90. This guidance includes $40.0 million of transitionary investment costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2023.

Tailwinds

  • Core Laundry Operations’ revenue growth at the midpoint of the range is expected to be 7.7%.
  • Organic growth, which excludes the estimated effect of acquisitions and fluctuations in the Canadian dollar, is expected to be 8.3%.
  • Core Laundry Operations’ adjusted operating margin, excluding Key Initiative costs, at the midpoint of the range is 8.1%.
  • Both our GAAP and adjusted tax rates for fiscal 2023 are projected to be 25.0%.
  • Adjusted diluted earnings per share is expected to be between $7.10 and $7.50.

Headwinds

  • Guidance does not include the impact of any future share buybacks or unexpected significantly adverse economic developments.
  • Our adjusted operating margin reflects continued pressure from the current inflationary environment, including high energy costs as well as higher levels of merchandise amortization.
  • The company anticipates $40.0 million of transitionary investment costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2023.
  • Projected Key Initiative Costs for diluted earnings per share is $1.60.
  • Effective tax rate is projected at 25.0%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-0.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+11.6%

Q2 2018

Best reaction

-11.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+0.9%-1.3%
Q1 2026-3.3%-0.8%-0.9%
Q4 2025-6.0%-0.2%-2.4%
Q3 2025-2.4%-1.5%-1.9%
Q2 2025+1.0%-6.3%+2.6%
Q1 2025+7.8%+10.7%+7.2%
Q4 2024-0.4%-2.1%+5.4%
Q3 2024+11.0%+11.1%+23.8%
Q2 2024+3.8%+1.4%-1.7%
Q1 2024-9.5%-8.2%-3.5%
Q4 2023-0.8%-0.4%+4.4%
Q3 2023-6.3%-7.0%-6.1%
Q2 2023-10.2%-10.8%-15.3%
Q1 2023+5.3%+5.9%+7.9%
Q4 2022-3.4%-1.5%+11.4%
Q3 2022+6.7%+6.9%+21.4%
Q2 2022-3.2%-7.7%-9.5%
Q1 2022-5.8%-7.9%-14.5%
Q4 2021-6.3%-5.7%-8.8%
Q3 2021-6.4%-6.3%-9.9%
Q2 2021+1.2%-0.1%+0.9%
Q1 2021+4.9%+3.0%+7.9%
Q4 2020-11.8%-15.1%-1.2%
Q3 2020-2.0%-2.7%+4.2%
Q2 2020-7.7%-0.6%+9.8%
Q1 2020+2.0%+4.9%-0.9%
Q4 2019+4.5%+5.2%+5.9%
Q3 2019+11.3%+12.7%+17.0%
Q2 2019+10.8%+12.1%+12.7%
Q1 2019-6.6%-4.7%-4.6%
Q4 2018-8.1%-7.4%-8.4%
Q3 2018-2.5%-0.2%+1.8%
Q2 2018+11.6%+6.9%+10.4%
Q1 2018+4.3%+2.3%-2.8%
Q4 2017+0.2%+0.5%-1.0%
Q3 2017+0.9%+3.0%+2.7%
Q2 2017+3.7%+1.0%+2.3%
Q1 2017-6.9%-8.5%-11.6%
Q4 2016-9.1%-9.0%+7.3%
Q3 2016+9.7%+8.8%+10.8%
Q2 2016-3.3%
Q1 2016+0.3%
Q4 2015-5.1%
Q3 2015+4.7%
Q2 2015+3.8%
Q1 2015-0.7%
Q4 2014-1.3%
Q3 2014-2.1%
Q2 2014-5.2%
Q1 2014-1.4%
Q4 2013-0.8%
Q3 2013+2.8%
Q2 2013-1.3%
Q1 2013+8.4%
Q4 2012+0.2%
Q3 2012+0.3%
Q2 2012-2.6%
Q1 2012+1.8%
Q4 2011-0.3%
Q4 2009-0.3%
Q4 2010-0.3%
Q3 2011+1.3%
Q2 2011-0.1%
Q1 2011-5.5%
Q3 2010+3.0%
Q2 2010+0.1%

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