Uniforms and workwear supplier UniFirst Corp.(UNF) reported Wednesday an increase in fourth-quarter profit that surpassed analysts' estimate, helped by much lower operating costs resulting from lower energy, payroll, and merchandise costs. Revenues for the quarter dropped nearly 4%, and the company noted that the overall employment condition remains weak and will continue to challenge its top line performance.
For the fourth quarter, net income rose to $17.02 million or $0.88 per share from $12.28 million or $0.63 per share in the previous year. On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter declined 3.8% to $241.47 million from $251.01 million. Three analysts were expecting revenue of $239.25 million for the fourth quarter.
Revenues from core laundry operations dipped 4.0% to $217.67 million from $226.64 million, while revenues from Specialty Garments decreased 1.4% to $16.62 million from $16.85 million and First Aid revenues came down 4.4% to $7.18 million from $7.51 million in the fourth quarter of the past year.
Operating costs reduced year-over-year to $144.99 million from $163.08 million, helped mainly by headcount reductions and lower gasoline and natural gas costs.
For the full year, net income advanced to $75.85 million or $3.92 per share from $60.98 million or $3.15 per share in fiscal 2008. Revenues came down to $1.01 billion from $1.02 billion in the same period last year. However, on a comparable work week basis, revenues rose 1.0% from the previous year, which included an extra week compared to fiscal 2009.
Analysts were looking for earnings of $3.72 per share on revenue of $1.01 billion for fiscal 2009.
UNF is currently trading at $45.26, down $0.01 or 0.02%, on the NYSE.
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