NYSE$VSTS

Vestis Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a decrease in revenue and operating income, with strategic actions taken to improve performance.

Vestis reported a slight decrease in revenue and a significant decrease in net income for Q3 2024. The company is focused on deleveraging and has entered into a $250 million accounts receivable securitization facility to repay debt.

  • Revenue decreased by 1.6% year-over-year to $698 million.
  • Operating income decreased by 43.4% year-over-year to $38 million.
  • Net income decreased by 89.9% year-over-year to $5 million.
  • Entered into a $250 million accounts receivable securitization facility to reduce net debt.

Headline financials

Total Revenue

$698M

No prior period
EPS

$0.04

No prior period
Adjusted EBITDA

$86.8M

No prior period
Adjusted EBITDA Margin

12.4%

No prior period
Capital Expenditures

-$21M

No prior period
Free Cash Flow

$5.04M

No prior period
Net Income

$5.04M

No prior period
Operating Income

$37.5M

No prior period
Gross Profit

$37.5M

No prior period
Cash & Equivalents

$29.1M

No prior period
Total Assets

$3.15B

No prior period
Stock-Based Comp

$3.86M

Previous: $3.63M+6.2%

Revenue & EPS history

Vestis · Revenue · Quarterly

$698M

Q3 2024
Beat estimate in 3 of 11 quarters(27%)
ActualEstimate

Forward guidance

Vestis expects to deliver fiscal year 2024 revenue growth in the range of (1)% to 0% and Adjusted EBITDA Margin to be toward the higher end of the range between 12.0% and 12.4%.

Tailwinds

  • Expects fiscal 2024 revenue growth in the range of (1)% to 0%.
  • Expects fiscal 2024 Adjusted EBITDA Margin to be toward the higher end of the range between 12.0% and 12.4%.
  • Disciplined capital allocation with deleveraging as a priority.
  • Expects strong free cash flow conversion.
  • Anticipate a ratio of free cash flow to net income greater than or equal to 100%.

Headwinds

  • Revenue growth is expected to be slightly negative.
  • Adjusted EBITDA Margin includes approximately $18 million in incremental public company costs.
  • Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.
  • Estimates of revenue growth and adjusted EBITDA margin do not forecast currency fluctuations.
  • The company's performance is subject to various risks and uncertainties.

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 Q3 2024

Historical avgQ3 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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