NYSE$VSTS

Vestis Corp · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Vestis reported Q1 2024 results, demonstrating revenue growth and margin expansion while absorbing public company costs.

Vestis reported a 2.5% increase in revenue to $718 million for Q1 2024. Operating income was $48 million, and adjusted EBITDA reached $98 million. The company reaffirmed its fiscal year 2024 outlook, expecting revenue growth of 4.0 to 4.5% and an adjusted EBITDA margin of approximately 14.3%.

  • Revenue increased by 2.5% year-over-year to $718 million.
  • Operating income was $48 million, representing 6.6% of revenue.
  • Adjusted EBITDA reached $98 million, or 13.7% of revenue.
  • Diluted EPS was $0.09, with adjusted diluted EPS at $0.22.

Headline financials

Total Revenue

$718M

Previous: $205M+250.9%
EPS

$0.09

Previous: $0.26-65.4%
Adjusted EBITDA Margin

13.7%

Previous: 13.1%+4.6%
Capital Expenditures

-$16.9M

No prior period
Free Cash Flow

$12.3M

No prior period
Net Income

$12.3M

Previous: $33.5M-63.4%
Operating Income

$47.6M

Previous: $44.4M+7.3%
Gross Profit

$47.6M

Previous: $701M-93.2%
Cash & Equivalents

$48.9M

Previous: $16.8M+190.4%
Total Assets

$3.16B

No prior period
Stock-Based Comp

$4.72M

Previous: $4.5M+4.9%

Revenue & EPS history

Vestis · Revenue · Quarterly

$718M

Q1 2024+250.9%vs Q1 2023
Beat estimate in 3 of 11 quarters(27%)
ActualEstimate

Forward guidance

The Company continues to expect to deliver revenue growth in the range of 4.0 to 4.5% and adjusted EBITDA margin to be approximately 14.3%.

Tailwinds

  • Expects revenue growth in the range of 4.0 to 4.5%.
  • Adjusted EBITDA margin expected to be approximately 14.3%.
  • Margin expansion offsetting approximately $15 to $18 million in incremental public company costs.
  • Disciplined capital allocation with deleveraging as a priority.
  • Free cash flow conversion of net income to be at least 100%.

Headwinds

  • Approximately $15 to $18 million in incremental public company costs in the period.

Historical earnings impact

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

Avg. return before/after earnings

Based on 13 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-4.2%

Avg return

Earnings day

-4.1%

Avg return

5 days after

-2.3%

Avg return

30 days after

43%

6 / 14 earnings

Positive

+20.4%

Q4 2024

Best reaction

-49.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.3%+1.7%+10.2%
Q1 2026+16.1%+5.2%+2.9%
Q4 2025-7.3%+4.2%-0.7%
Q3 2025-5.8%-25.9%-23.9%
Q2 2025-37.5%-24.8%-27.8%
Q1 2025-11.7%-14.3%-25.2%
Q4 2022+4.4%+3.6%+4.9%
Q4 2024+20.4%+22.7%+23.1%
Q3 2024+2.2%+0.7%+15.4%
Q2 2023+13.2%+20.0%+19.7%
Q2 2024-49.1%-44.6%-33.3%
Q1 2023-3.5%-5.5%-7.3%
Q1 2024-9.8%-13.0%-16.4%
Q4 2023+9.4%+12.2%+26.3%
Q3 2022
Q2 2022
Q1 2022

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