UniFirst Corporation reported its financial results for the thirteen weeks ended November 30, 2024, revealing a revenue increase of 1.9% to $604.9 million, compared to $593.5 million in the same period last year. The company's net income rose to $43.1 million, or $2.31 per diluted share, up from $42.3 million, or $2.26 per diluted share, in the prior year. This growth in profitability was attributed to improved pricing strategies and solid new account sales within its Core Laundry Operations, which generated $532.7 million in revenue, reflecting a 1.7% increase from the previous year.
Operating expenses for the quarter totaled $549.4 million, a 1.7% increase from $540.4 million in the prior year. The cost of revenues decreased slightly to $381.1 million, representing 63.0% of total revenues, down from 64.7% in the previous year. However, selling and administrative expenses rose by 8.7% to $133.5 million, driven by increased healthcare costs, environmental-related expenses, and executive transition costs. The overall operating income improved to $55.5 million, yielding an operating margin of 9.2%, up from 9.0% in the prior year.
During the quarter, UniFirst completed three business acquisitions for a total purchase price of approximately $2.8 million, primarily allocated to goodwill and intangible assets. The company also continued to invest in its operations, with capital expenditures amounting to $33.6 million. As of November 30, 2024, UniFirst had cash and cash equivalents totaling $166.2 million, an increase from $161.6 million at the end of the previous fiscal year.
The company declared increased quarterly cash dividends of $0.350 per share for Common Stock and $0.280 per share for Class B Common Stock, up from $0.33 and $0.264, respectively. Additionally, UniFirst repurchased 33,605 shares of its Common Stock during the quarter, with $69.8 million remaining under its share repurchase program. Looking ahead, the company remains optimistic about its growth prospects, supported by its ongoing investments in technology and operational efficiency, despite potential challenges from inflation and market conditions.
About UNIFIRST CORP
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