Unifirst Corporation (UNF) has reported 19.18 percent fall in profit for the quarter ended May 27, 2017. The company has earned $24.36 million, or $1.19 a share in the quarter, compared with $30.14 million, or $1.49 a share for the same period last year. On an adjusted basis, the company has earned $27.70 million, or $1.36 a share for the quarter. Revenue during the quarter grew 11.43 percent to $409.83 million from $367.80 million in the previous year period. Gross margin for the quarter contracted 127 basis points over the previous year period to 37.58 percent. Total expenses were 90.54 percent of quarterly revenues, up from 86.97 percent for the same period last year. That has resulted in a contraction of 357 basis points in operating margin to 9.46 percent.
Operating income for the quarter was $38.77 million, compared with $47.92 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $44.17 million.
The Company third quarter results include $6.5 million of stock compensation expense related to the April 2016 restricted stock grant to its former chief executive officer, Ronald Croatti. Of this expense, $5.4 million was a result of the accelerated vesting of certain shares upon his death. Excluding the effect of the accelerated vesting, adjusted net income was $27.7 million ($1.36 per diluted share) down 8.1% from a year ago.
Unifirst Corporation forecasts revenue to be in the range of $1,573 million to $1,580 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $4.85 to $5.
Operating cash flow falls marginallyUnifirst Corporation has generated cash of $155.82 million from operating activities during the nine month period, down 3.27 percent or $5.26 million, when compared with the last year period. The company has spent $204.53 million cash to meet investing activities during the nine month period as against cash outgo of $82.99 million in the last year period.
The company has spent $1.35 million cash to carry out financing activities during the nine month period as against cash outgo of $7.32 million in the last year period.
Cash and cash equivalents stood at $312.68 million as on May 27, 2017, down 10.04 percent or $34.90 million from $347.58 million on May 28, 2016.
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