Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)
Three Months Ended
August 31, | August 31, | % | |
2026 | 2025 | Change | |
Revenue: | |||
Uniform rental and facility services | $ 2,294,736 | $ 2,091,066 | 9.7% |
Other | 719,245 | 627,056 | 14.7% |
Total revenue | 3,013,981 | 2,718,122 | 10.9% |
Costs and expenses: | |||
Cost of uniform rental and facility services | 1,128,884 | 1,052,553 | 7.3% |
Cost of other | 331,554 | 299,008 | 10.9% |
Selling and administrative expenses | 827,244 | 748,702 | 10.5% |
UniFirst Corporation transaction expenses | 14,412 | - | 100.0% |
Operating income | 711,887 | 617,859 | 15.2% |
Interest income | (2,649) | (2,209) | 19.9% |
Interest expense | 24,706 | 24,161 | 2.3% |
Income before income taxes | 689,830 | 595,907 | 15.8% |
Income taxes | 138,119 | 104,767 | 31.8% |
Net income | $ 551,711 | $ 491,140 | 12.3% |
Basic earnings per share | $ 1.37 | $ 1.21 | 13.2% |
Diluted earnings per share | $ 1.36 | $ 1.20 | 13.3% |
Basic weighted average common shares outstanding | 400,137 | 403,292 | |
Diluted weighted average common shares outstanding | 404,290 | 409,294 | |
Gross Margin and Net Income Margin Results
Three Months Ended
August 31, 2026 | August 31, 2025 | |
Uniform rental and facility services gross margin | 50.8% | 49.7% |
Other gross margin | 53.9% | 52.3% |
Total gross margin | 51.5% | 50.3% |
Net income margin | 18.3% | 18.1% |
The press release contains non-GAAP financial measures within the meaning of the rules promulgated by the U.S. Securities and Exchange Commission. To supplement its consolidated condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides these additional non-GAAP financial measures of free cash flow and organic revenue growth. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. A reconciliation of the difference between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are shown in the tables below.
Computation of Free Cash FlowThree Months Ended
(In thousands) | August 31, 2026 | August 31, 2025 |
Net cash provided by operations | $ 572,331 | $ 414,481 |
Capital expenditures | (107,532) | (101,957) |
Free cash flow | $ 464,799 | $ 312,524 |
Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.
Computation of Organic Revenue GrowthThree Months Ended
August 31, | August 31, | Growth | |
2026 | 2025 | % | |
A | B | G | |
Revenue | $ 3,013,981 | $ 2,718,122 | 10.9% |
G=(A-B)/B | |||
C | D | ||
Workdays in the period | 66 | 65 | |
E | F | H | |
Workday adjusted revenue | $ 2,968,315 | $ 2,718,122 | 9.2% |
E=(A/C)*D | F=(B/D)*D | H=(E-F)/F | |
Acquisition and foreign currency exchange impact, net | (0.3)% | ||
Organic revenue growth | 8.9% |
Management believes that organic revenue growth is valuable to investors because it reflects the revenue performance compared to a prior period with the same number of revenue generating days and excludes the impact from acquisitions and foreign currency exchange rate fluctuations.
SUPPLEMENTAL SEGMENT DATA(In thousands)
Uniform Rental and Facility Services
First Aid and Safety Services
All
Other Corporate Total
For the three months ended August 31, 2026 | ||||||||||
Revenue | $ 2,294,736 | $ 388,517 | $ 330,728 | $ - $ 3,013,981 | ||||||
Cost of sales | 1,128,884 | 164,700 | 166,854 | - 1,460,438 | ||||||
Gross margin | 1,165,852 | 223,817 | 163,874 | - 1,553,543 | ||||||
Selling and administrative expenses | 590,764 | 124,275 | 112,205 | - 827,244 | ||||||
UniFirst Corporation transaction expenses | - | - | - | 14,412 | 14,412 | |||||
Operating income (loss) | $ | 575,088 | $ | 99,542 | $ | 51,669 | $ | (14,412) | $ | 711,887 |
For the three months ended August 31, 2025 | ||||
Revenue | $ 2,091,066 | $ 334,657 | $ 292,399 | $ - $ 2,718,122 |
Cost of sales | 1,052,553 | 144,489 | 154,519 | - 1,351,561 |
Gross margin | 1,038,513 | 190,168 | 137,880 | - 1,366,561 |
Selling and administrative expenses | 538,576 | 109,841 | 100,285 | - 748,702 |
Operating income | $ 499,937 | $ 80,327 | $ 37,595 | $ - $ 617,859 |