DISCUSSION AND ANALYSIS BY THE MANAGEMENT OF UNIFIRST CORP OF THE FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

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PORT SR FOR FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and any documents incorporated by reference
may contain forward-looking statements within the meaning of the federal
securities laws. Forward-looking statements contained in this Quarterly Report
on Form 10-Q and any documents incorporated by reference are subject to the safe
harbor created by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as "estimates,"
"anticipates," "projects," "plans," "expects," "intends," "believes," "seeks,"
"could," "should," "may," "will," "strategy," "objective," "assume," "strive,"
or the negative versions thereof, and similar expressions and by the context in
which they are used. Such forward-looking statements are based upon our current
expectations and speak only as of the date made. Such statements are highly
dependent upon a variety of risks, uncertainties and other important factors
that could cause actual results to differ materially from those reflected in
such forward-looking statements. Such factors include, but are not limited to,
uncertainties caused by adverse economic conditions, including, without
limitation, as a result of extraordinary events or circumstances such as the
COVID-19 pandemic, and their impact on our customers' businesses and workforce
levels, disruptions of our business and operations, including limitations on, or
closures of, our facilities, or the business and operations of our customers or
suppliers in connection with extraordinary events or circumstances such as the
COVID-19 pandemic, uncertainties regarding our ability to consummate and
successfully integrate acquired businesses, uncertainties regarding any existing
or newly-discovered expenses and liabilities related to environmental compliance
and remediation, any adverse outcome of pending or future contingencies or
claims, our ability to compete successfully without any significant degradation
in our margin rates, seasonal and quarterly fluctuations in business levels, our
ability to preserve positive labor relationships and avoid becoming the target
of corporate labor unionization campaigns that could disrupt our business, the
effect of currency fluctuations on our results of operations and financial
condition, our dependence on third parties to supply us with raw materials,
which such supply could be severely disrupted as a result of extraordinary
events or circumstances such as the COVID-19 pandemic, any loss of key
management or other personnel, increased costs as a result of any changes in
federal or state laws, rules and regulations or governmental interpretation of
such laws, rules and regulations, uncertainties regarding the price levels of
natural gas, electricity, fuel and labor, the negative effect on our business
from sharply depressed oil and natural gas prices, including, without
limitation, as a result of extraordinary events or circumstances such as the
COVID-19 pandemic, the continuing increase in domestic healthcare costs,
increased workers' compensation claim costs, increased healthcare claim costs,
including as a result of extraordinary events or circumstances such as the
COVID-19 pandemic, our ability to retain and grow our customer base, demand and
prices for our products and services, fluctuations in our Specialty Garments
business, political instability, supply chain disruption or infection among our
employees in Mexico and Nicaragua where our principal garment manufacturing
plants are located, including, without limitation, as a result of extraordinary
events or circumstances such as the COVID-19 pandemic, our ability to properly
and efficiently design, construct, implement and operate a new customer
relationship management ("CRM") computer system, interruptions or failures of
our information technology systems, including as a result of cyber-attacks,
additional professional and internal costs necessary for compliance with any
changes in Securities and Exchange Commission, New York Stock Exchange and
accounting rules, strikes and unemployment levels, our efforts to evaluate and
potentially reduce internal costs, economic and other developments associated
with the war on terrorism and its impact on the economy, the impact of foreign
trade policies and tariffs or other impositions on imported goods on our
business, results of operations and financial condition, general economic
conditions, our ability to successfully implement our business strategies and
processes, including our capital allocation strategies and the other factors
described under "Part I, Item 1A. Risk Factors" and elsewhere in our Annual
Report on Form 10-K for the year ended August 28, 2021 and in our other filings
with the Securities and Exchange Commission, including, without limitation,
under "Part II, Item 1A. Risk Factors" and elsewhere in this Quarterly Report on
Form 10-Q. We undertake no obligation to update any forward-looking statements
to reflect events or circumstances arising after the date on which they are
made.

Company presentation

UniFirst Corporation, together with its subsidiaries, hereunder referred to as
"we", "our", the "Company", or "UniFirst", is one of the largest providers of
workplace uniforms and protective work wear clothing in the United States. We
design, manufacture, personalize, rent, clean, deliver, and sell a wide range of
uniforms and protective clothing, including shirts, pants, jackets, coveralls,
lab coats, smocks, aprons and specialized protective wear, such as flame
resistant and high visibility garments. We also rent and sell industrial wiping
products, floor mats, facility service products and other non-garment items, and
provide restroom and cleaning supplies and first aid cabinet services and other
safety supplies as well as provide certain safety training to a variety of
manufacturers, retailers and service companies.

We serve businesses of all sizes in numerous industry categories. Typical
customers include automobile service centers and dealers, delivery services,
food and general merchandise retailers, food processors and service operations,
light manufacturers, maintenance facilities, restaurants, service companies,
soft and durable goods wholesalers, transportation companies, healthcare
providers and others who require employee clothing for image, identification,
protection or utility purposes. We also provide our customers with restroom and
cleaning supplies, including air fresheners, paper products and hand soaps.

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At certain specialized facilities, we also decontaminate and clean work clothes
and other items that may have been exposed to radioactive materials and service
special cleanroom protective wear and facilities. Typical customers for these
specialized services include government agencies, research and development
laboratories, high technology companies and utilities operating nuclear
reactors.

We continue to expand into additional geographic markets through acquisitions
and organic growth. We currently service over 300,000 customer locations in the
United States, Canada and Europe from over 260 customer service, distribution
and manufacturing facilities.

As mentioned and described in Note 16 to our Consolidated Financial Statements,
we have five reporting segments: U.S. and Canadian Rental and Cleaning, MFG,
Corporate, Specialty Garments and First Aid. We refer to the laundry locations
of the U.S. and Canadian Rental and Cleaning reporting segment as "industrial
laundries" or "industrial laundry locations", and to the U.S. and Canadian
Rental and Cleaning, MFG, and Corporate reporting segments combined as our "Core
Laundry Operations."

Critical accounting conventions and estimates

The discussion of our financial condition and results of operations is based
upon the Consolidated Financial Statements, which have been prepared in
conformity with United States generally accepted accounting principles ("U.S.
GAAP"). As such, management is required to make certain estimates, judgments and
assumptions that are believed to be reasonable based on the information
available. These estimates and assumptions affect the reported amount of assets
and liabilities, revenues and expenses, and disclosure of contingent assets and
liabilities at the date of the financial statements. Actual results may differ
from these estimates under different assumptions or conditions.

Critical accounting policies are defined as those that are reflective of
significant judgments and uncertainties, the most important and pervasive
accounting policies used and areas most sensitive to material changes from
external factors. The critical accounting estimates that we believe affect our
more significant judgments and estimates used in the preparation of our
Consolidated Financial Statements presented in this report are described in
Management's Discussion and Analysis of Financial Condition and Results of
Operations and in the Notes to the Consolidated Financial Statements included in
our Annual Report on Form 10-K for the fiscal year ended August 28, 2021.

COVID-19 Assessment

The global COVID-19 pandemic continues to impact the countries in which we
operate. Developments continue to occur rapidly, including the recent emergence
and spread of new COVID-19 variants. Our revenues in the first half of fiscal
2021 were significantly adversely impacted as a result of many customers closing
their businesses or operating at limited capacities. If customers were to again
be forced to close or limit operations as new COVID-19 outbreaks occur, any such
closures or reductions in operating levels could have a significant adverse
impact on our business. At times during the pandemic, we have also experienced
supply chain disruptions with respect to certain products, including hand
sanitizer and masks. Such disruptions continue to occur but have moderated to
some extent more recently.

We remain focused on the safety and well-being of our team partners and on the
service of our customers. We will continue to review and assess the
rapidly-changing COVID-19 pandemic and its impacts on our team partners, our
customers, our suppliers and our business so that we can seek to address the
impacts on our business and service our customers.

We have assessed the current impact of COVID-19 on our consolidated financial
condition, results of operations, and cash flows, as well as our estimates and
accounting policies. We have made additional disclosures of these assessments,
as necessary. Given the unprecedented nature of this situation, including the
emergence of new COVID-19 variants, we cannot reasonably estimate the full
extent or duration of the impact COVID-19 will have on our consolidated
financial condition, results of operations, and cash flows in the foreseeable
future. The ultimate impact of COVID-19 on the Company is highly uncertain and
will depend on future developments, and such impacts could exist for an extended
period of time, even after the COVID-19 pandemic subsides.

As of November 27, 2021, our cash, cash equivalents, and short-term investments
were $478.1 million. We also have access to significant borrowing capacity under
our unsecured revolving credit facility, which we believe, together with our
cash balances, will continue to help us manage the impacts of the COVID-19
pandemic on our business and address related liquidity needs.

Please see "Part I, Item 1A. Risk Factors" in our Annual Report on Form 10-K for
the year ended August 28, 2021 for an additional discussion of risks and
potential risks of the COVID-19 pandemic on our business, financial condition
and results of operations.

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Results of operations

The following table shows some selected financial data, including the percentage of revenue represented by each item, for the thirteen weeks ended.
November 27, 2021 and November 28, 2020.



                                                                Thirteen weeks ended
(In thousands, except                                     % of                                   % of           %
percentages)                    November 27, 2021       Revenues       November 28, 2020       Revenues       Change
Revenues                       $           486,164          100.0 %   $           446,853          100.0 %        8.8 %
Operating expenses:
Cost of revenues (1)                       310,130           63.8                 275,800           61.7         12.4
Selling and administrative
expenses (1)                               104,388           21.5                  88,703           19.9         17.7
Depreciation and
amortization                                26,856            5.5                  26,308            5.9          2.1
Total operating expenses                   441,374           90.8                 390,811           87.5         12.9
Operating income                            44,790            9.2                  56,042           12.5        (20.1 )
Other expense, net                              88            0.0                     181            0.0        (51.4 )
Income before income taxes                  44,702            9.2                  55,861           12.5        (20.0 )
Provision for income taxes                  10,997            2.3                  13,965            3.1        (21.3 )
Net income                     $            33,705            6.9 %   $            41,896            9.4 %      (19.6 )%



(1) Excluding depreciation of our property, plant and equipment and

amortization of our intangible assets.

General

We derive our revenues through the design, manufacture, personalization, rental,
cleaning, delivering, and selling of a wide range of uniforms and protective
clothing, including shirts, pants, jackets, coveralls, lab coats, smocks and
aprons and specialized protective wear, such as flame resistant and high
visibility garments. We also rent industrial wiping products, floor mats,
facility service products, other non-garment items, and provide restroom and
cleaning supplies and first aid cabinet services and other safety supplies, to a
variety of manufacturers, retailers and service companies. We have five
reporting segments, U.S. and Canadian Rental and Cleaning, MFG, Specialty
Garments, First Aid and Corporate. We refer to the U.S. and Canadian Rental and
Cleaning, MFG, and Corporate reporting segments combined as our "Core Laundry
Operations."

Cost of revenues include the amortization of rental merchandise in service and
merchandise costs related to direct sales as well as labor and other production,
service and delivery costs and distribution costs associated with operating our
Core Laundry Operations, Specialty Garments facilities and First Aid locations.
Selling and administrative costs include costs related to our sales and
marketing functions as well as general and administrative costs associated with
our corporate offices, non-operating environmental sites and operating locations
including information systems, engineering, materials management, manufacturing
planning, finance, budgeting and human resources.

Our operating results could also be adversely affected by a decline in the Canadian exchange rate.

Our business is subject to various state and federal regulations, including
employment laws and regulations, minimum wage requirements, overtime
requirements, working condition requirements, citizenship requirements,
healthcare insurance mandates and other laws and regulations that impact our
labor costs. Labor costs have increased recently as a result of increases in
state and local minimum wage levels as well as the overall impact of wage
pressure as the result of a low unemployment environment.



In fiscal 2018, we initiated a multiyear CRM project to further develop,
implement and deploy a third-party application we licensed. This new solution
improves functionality, capability and information flow as well as increases
automation in servicing our customers. As of November 27, 2021, we have
capitalized $35.9 million related to this CRM project. We began deployment of
our new CRM project during the second half of fiscal 2021 and anticipate this
will continue through fiscal 2022 and 2023. We are depreciating this system over
a 10-year life and recognized $0.7 million of amortization expense during the
thirteen weeks ended November 27, 2021.

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Thirteen Weeks Completed November 27, 2021 against thirteen completed weeks
November 28, 2020

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