Specialty Garments segment income goes up at UniFirst
25 Oct '07
3 min read
The increase in the Company's earnings is the result of strong performance in the Company's core laundry operations, which excludes the Specialty Garments and First Aid segments, as well as the improved profitability of the Company's Specialty Garments segment.
Excluding the items discussed above, income from operations from the Company's core laundry operations increased 15.1% in the fourth quarter and full fiscal year compared to fiscal 2006. These increases were the result of strong revenue growth of 8.6% and 9.2% in the fourth quarter and full fiscal year, respectively, as well as lower operating costs as a percentage of revenues.
The Company's revenue growth was primarily due to organic growth, which was 6.3% and 6.6% for the fourth quarter and full fiscal year, respectively. The Company's operating margin for the full fiscal year benefited from modest reductions in energy and production payroll costs as a percentage of revenues. In addition, merchandise costs as a percentage of revenues were lower in the fourth quarter of fiscal 2007 compared to fiscal 2006.
The Company's Specialty Garments segment had income from operations in fiscal 2007 of $4.8 million compared to $0.4 million in fiscal 2006. This increase is the result of a 21.9% increase in revenues for the full year compared to fiscal 2006 which was primarily due to strong growth in the segment's Canadian and European business.
"We are pleased with the results of anotherrecord year for UniFirst", said UniFirst CEO, Ronald Croatti. "Despite the challenge posed by a slow growth economy, our core laundry operations delivered solid results. Professional rep sales held up well throughout the year, with overall performance benefiting from increased headcount, better productivity and reduced turnover."
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