NYSE$VSTS

Vestis Corp · Q3 2023 earnings

Q3 2023 earnings · · After market close · Investor relations

Briefing

Vestis reported Q3 2024 revenue of $698 million, down 1.6% year-over-year, with adjusted EBITDA of $87 million.

Vestis Corporation announced results for the third quarter ended June 28, 2024. Revenue declined modestly while adjusted EBITDA margin contracted due to higher public company costs and lost business. The company entered into a $250 million accounts receivable securitization facility post-quarter to reduce net debt and reiterated its fiscal 2024 outlook.

  • Revenue of $698 million decreased 1.6% year-over-year (1.4% excluding FX).
  • Adjusted EBITDA was $87 million (12.4% margin), down 260 bps from prior year.
  • Net leverage stood at 3.98x; pro forma net leverage would be 3.33x after A/R facility proceeds.
  • Fiscal 2024 revenue growth guidance maintained at (1)% to 0%, with adjusted EBITDA margin toward the higher end of 12.0%-12.4%.

Headline financials

Total Revenue

$698M

Previous: $2.69B-74.0%
EPS (adj)

$0.16

Previous: $0.27-41.3%
Adjusted EBITDA

$86.8M

No prior period
Adjusted EBITDA Margin

12.4%

No prior period
Net Leverage Ratio

3.98

No prior period
Operating Cash Flow (YTD)

$176M

No prior period
Net Income

$5.04M

Previous: $42.6M-88.2%
Operating Income

$37.5M

Previous: $56.9M-34.0%
Stock-Based Comp

$3.63M

No prior period

Revenue & EPS history

Vestis · Revenue · Quarterly

$698M

Q3 2023-74%vs Q3 2022
Beat estimate in 4 of 12 quarters(33%)
ActualEstimate

Revenue by segment

Vestis · $698M total across 2 segments · Q3 2023

  • United States
    $637M
  • Canada
    $61.4M

Forward guidance

Fiscal 2024 revenue growth expected in the range of (1)% to 0%; adjusted EBITDA margin toward the higher end of 12.0% to 12.4%.

Tailwinds

  • Strong free cash flow conversion expected (>=100% of net income).
  • Deleveraging remains a priority via A/R facility.

Historical earnings impact

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

Avg. return before/after earnings

Based on 13 quarterly earnings reports

Historical avg

-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
Q3 2023
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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