NYSE$VSTS

Vestis Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Vestis reported strong Q4 2023 results driven by revenue growth and efficient operations.

Vestis reported Q4 2023 revenue of $715.9 million, a 4.8% increase year-over-year. Operating income increased by 89.5% to $57.8 million, and net income increased by 305.2% to $94.0 million. Adjusted EBITDA grew by 13.5% to $112.8 million. The company expects to deliver revenue growth in the range of 4.0 to 4.5% in fiscal year 2024.

  • Revenue increased by 4.8% year-over-year to $715.9 million.
  • Operating income increased by 89.5% year-over-year to $57.8 million.
  • Net income increased significantly by 305.2% year-over-year to $94.0 million.
  • Adjusted EBITDA increased by 13.5% year-over-year to $112.8 million.

Headline financials

Total Revenue

$226M

Previous: $777M-70.9%
EPS (adj)

$0.72

Previous: $1.08-33.3%
Adjusted EBITDA

$113M

Previous: $99.4M+13.5%
Adjusted EBITDA Margin

15.8%

Previous: 14.5%+9.0%
Net Income

$94M

Previous: -$65.6M+243.2%
Operating Income

$57.8M

Previous: $26.6M+117.4%
Gross Profit

$226M

Previous: $172M+31.5%
Cash & Equivalents

$36.1M

Previous: $23.7M+51.9%
Total Assets

$3.16B

No prior period
Stock-Based Comp

$2.89M

Previous: $17.4M-83.4%

Revenue & EPS history

Vestis · Revenue · Quarterly

$226M

Q4 2023-70.9%vs Q4 2022
Beat estimate in 3 of 11 quarters(27%)
ActualEstimate

Forward guidance

The Company expects to deliver revenue growth in the range of 4.0 to 4.5% and adjusted EBITDA margin to be maintained at not less than the fiscal 2023 level (14.3%).

Tailwinds

  • Continued focus on providing service excellence to our customers.
  • Delivering high-quality growth.
  • Strategic imperatives include disciplined capital allocation with de-levering as a priority.
  • Expect not less than 100% free cash flow conversion of net income.

Headwinds

  • Approximately 50 to 60 basis points of margin expansion offsetting 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 Q4 2023

Historical avgQ4 2023

-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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