Outlook The company anticipates fiscal 2006 first quarter revenue to be in the range of $204.0 million to $207.0 million and earnings per diluted share to be between $0.45 and $0.48. The revenue guidance represents a modest improvement in the company's rental organic growth rate and reduced benefit from the Canadian dollar exchange rate. The earnings guidance reflects the company's ongoing efforts to improve operational efficiency offset by investments geared to drive increased revenue growth and continued record energy costs. First quarter earnings guidance also incorporates the anticipated impact associated with expensing stock options of $0.02 per diluted share.
"During fiscal 2005, they achieved record revenues and earnings even while continuing the investments we're making to stimulate top-line growth and despite significantly higher energy costs," Marcantonio said. "In fiscal 2006, they will continue to balance the need to generate increased earnings with on-going investments in the sales team, marketing programs and operational initiatives. They will also continue to pursue strategic acquisitions that enhance the market position and further leverage existing infrastructure. In the end, they expect to improve the financial performance, enhance customer relationships and continue to differentiate services through innovation."
Conference Call Information The company will conduct a conference call today beginning at 10:00 a.m. Central Time. The call will be web cast and can be accessed through the web site www.gkservices.com (on the Investor Relations page, click on the webcast icon and follow the instructions). A replay of the call will be available through September 16, 2005.
Minnesota based G&K Services Inc is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. G&K operates over 140 processing facilities and branch offices, serving more than 160,000 customers.
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