Uniform maker UniFirst revenues up on lower operating costs
02 Nov '05
3 min read
During fiscal 2005, the Company also benefited from lower depreciation and intangible asset amortization expense due to certain fixed assets and certain intangible assets becoming fully depreciated and amortized in fiscal 2004.
This decrease in depreciation is also due to a $600 thousand pre-tax charge to depreciation taken in fiscal 2004 related to the Company's decision to close its Richmond facility. In addition, decreased interest expense, on a net basis, was a benefit for the quarter and full year in fiscal 2005 as compared to fiscal 2004 primarily due to a reduction in the average level of debt outstanding.
In the full year and fourth quarter of fiscal 2005, the Company benefited from a $500 thousand credit to income taxes recorded in the fourth quarter of fiscal 2005 related to the reduction of tax-related reserves no longer required.
Excluding the favorable impact of this benefit, the Company's fourth quarter net income was $7.6 million compared to $7.5 million for the fourth quarter of fiscal 2004.
The primarily reason that the profit growth in the fourth quarter of fiscal 2005 was not comparable with the full year was the higher losses incurred by the Company's nuclear business in the fourth quarter of 2005 as compared to the loss incurred in the fourth quarter of 2004.
In addition, the Company experienced higher merchandise amortization as well as increased depreciation and intangible asset amortization as a percentage of revenue in the fourth quarter of fiscal 2005 compared to the first nine months of fiscal 2005.
The Company will hold a conference call today at 4:00 PM (EST) to discuss its quarterly financial results, business highlights and outlook. A simultaneous live webcast of the call will be available over the Internet and can be accessed at www.unifirst.com.
UniFirst employs 9,200 team partners who serve more than 195,000 customer locations in 46 states, Canada and Europe from 179 manufacturing, distribution and customer service facilities.
marketing@alchempro.com
