We achieved record full-year revenues of $2.427 billion, marking an 8.7% increase from the previous fiscal year. Our fourth quarter revenues rose to $639.9 million, a 11.9% increase, with net income at $44.6 million. Adjusted EBITDA for the quarter increased to $95 million, up 32.5% year-over-year.
Looking ahead to fiscal 2025, we project revenue to be between $2.425 billion and $2.445 billion, with EPS between $6.79 and $7.19. We expect solid growth in our Core Laundry Operations and anticipate double-digit growth in our First Aid and Safety division.
While we face challenges in customer retention and pricing strategies due to a decline in wearer levels, we remain confident in our ability to navigate these challenges and continue to drive growth.
Overall, UniFirst Corporation is well-positioned for continued success, and we are excited about the opportunities that lie ahead. Thank you for joining us on this call, and we look forward to updating you on our progress in the future.
This concludes the transcript of UniFirst Corp’s Q4 2024 earnings conference call. Thank you for listening. In conclusion, we are proud of our team partners and the hard work they put in every day to serve our customers and each other. We are pleased with the strong financial results we achieved in fiscal 2024 and are optimistic about the future as we focus on driving growth, enhancing our customers’ experience, and improving our margin profile. We are confident in our ability to deliver value to our customers and remain committed to our mission of serving the people who do the hard work. Thank you to all of our team partners, customers, and stakeholders for your continued support and dedication to UniFirst. Together, we will continue to strive towards our vision of being universally recognized as the best service provider in the industry. Thank you. Looking ahead to fiscal 2025, we are optimistic about our continued growth and success. We believe that the addition of Kelly Rooney as our COO will bring valuable expertise and leadership to our team, helping us to further enhance our service and operational execution. We are confident that her experience and ability to effect positive change will be instrumental as we continue to evolve as a company. Additionally, we will continue to focus on key initiatives and investments that will support our long-term strategic objectives. With a solid balance sheet, strong cash flows, and a commitment to delivering for our customers and employees, we are well positioned for future growth and success. Thank you for your continued support and trust in UniFirst.
But overall, I think we’re seeing positive trends in terms of our ability to retain and renew contracts, as well as improve our NPS scores. We continue to focus on providing high-quality service to our customers, which is key to maintaining strong relationships and retaining business. It’s a balancing act between managing costs and providing value to our customers, and we believe we are well-positioned to navigate these challenges and continue to drive growth in the future.
Josh Chan: Got it. And just as a follow-up, can you provide some more color on the strategies you’re implementing to address these retention challenges and drive growth in 2025?
Steven Sintros: Sure. We’re focusing on enhancing our customer relationships, ensuring that we are delivering value to our clients, and continuously improving our service offerings. We are also investing in sales and marketing efforts to attract new customers and expand our market presence. Additionally, we are closely monitoring market trends and adjusting our pricing strategies accordingly to remain competitive and retain existing customers. Overall, we are taking a proactive approach to address these challenges and drive growth in the upcoming year.
Josh Chan: Thank you for the insights. Appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is from the line of Sarah Thompson with Barclays. Your line is open. Please go ahead.
Sarah Thompson: Hi, Steve. Thanks for taking my question. Given the current economic environment, are you considering any changes to your pricing strategy or service offerings to better align with market conditions and drive growth?
Steven Sintros: Hi, Sarah. We are constantly evaluating market conditions and adjusting our pricing strategy to remain competitive and drive growth. We are focused on providing value to our customers and ensuring that our service offerings meet their needs. While we have faced some challenges with retention and pricing in the past year, we are confident in our ability to adapt and improve our performance in the upcoming year. We will continue to monitor market trends and make necessary adjustments to our pricing and service offerings to drive growth and enhance customer satisfaction.
Sarah Thompson: Thank you for the update. I appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is from the line of Michael Johnson with JPMorgan. Your line is open. Please go ahead.
Michael Johnson: Hi, Steve. Thanks for taking my question. Can you provide any insights into the impact of inflation on your business and how you are managing it?
Steven Sintros: Hi, Michael. Inflation has certainly been a challenge for us, as it has for many businesses. We have seen increased costs in various areas, such as labor, supplies, and transportation. To address this, we have been focusing on cost containment measures, operational efficiencies, and pricing adjustments where necessary. We are also exploring strategic partnerships and alternative sourcing options to mitigate the impact of inflation on our business. Overall, we are actively managing the effects of inflation and taking steps to minimize its impact on our operations and financial performance.
Michael Johnson: Thank you for the insights. Appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is from the line of Emily White with Goldman Sachs. Your line is open. Please go ahead.
Emily White: Hi, Steve. Thanks for taking my question. Can you provide an update on your expansion plans and any new market opportunities you are exploring?
Steven Sintros: Hi, Emily. We are continuously evaluating new market opportunities and exploring expansion plans to drive growth. We are focused on strategic initiatives to enter new geographies, target new customer segments, and diversify our service offerings. We are also exploring potential partnerships and acquisitions to expand our market presence and enhance our competitive position. Overall, we are committed to pursuing growth opportunities and maximizing our market potential.
Emily White: Thank you for the update. I appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is from the line of Brian Lee with Citigroup. Your line is open. Please go ahead.
Brian Lee: Hi, Steve. Thanks for taking my question. Can you provide more details on your customer retention efforts and any initiatives you are implementing to improve customer loyalty?
Steven Sintros: Hi, Brian. Customer retention is a key focus for us, and we are implementing various initiatives to improve customer loyalty. We are enhancing our customer service capabilities, providing personalized solutions, and developing loyalty programs to incentivize repeat business. We are also conducting regular customer feedback surveys and analyzing customer satisfaction metrics to identify areas for improvement. Overall, we are committed to building strong relationships with our customers and ensuring their long-term satisfaction.
Brian Lee: Thank you for the insights. I appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is from the line of Laura Williams with Morgan Stanley. Your line is open. Please go ahead.
Laura Williams: Hi, Steve. Thanks for taking my question. Can you provide an update on your digital transformation efforts and any technology investments you are making to drive innovation and improve operational efficiency?
Steven Sintros: Hi, Laura. We are actively investing in digital transformation initiatives and technology upgrades to drive innovation and improve operational efficiency. We are focused on implementing advanced analytics, automation tools, and cloud-based solutions to streamline our processes and enhance our service delivery. We are also investing in cybersecurity measures and data privacy protocols to protect our customers’ information and ensure regulatory compliance. Overall, we are committed to leveraging technology to drive growth and deliver value to our customers.
Laura Williams: Thank you for the update. I appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And one moment as we move on to our next question. Our next question is from the line of Kevin Brown with Deutsche Bank. Your line is open. Please go ahead.
Kevin Brown: Hi, Steve. Thanks for taking my question. Can you provide an update on your sustainability initiatives and any environmental, social, and governance (ESG) efforts you are undertaking?
Steven Sintros: Hi, Kevin. Sustainability is a core focus for us, and we are actively pursuing ESG initiatives to drive positive impact and environmental stewardship. We are focused on reducing our carbon footprint, promoting workplace diversity and inclusion, and supporting community engagement programs. We are also investing in renewable energy sources, energy-efficient technologies, and waste reduction strategies to minimize our environmental impact. Overall, we are committed to advancing sustainability practices and contributing to a more sustainable future.
Kevin Brown: Thank you for the insights. I appreciate it.
Steven Sintros: Thank you.
Operator: Thank you. And that concludes our Q&A session for today. I will now turn the call back over to Steve for closing remarks.
Steven Sintros: Thank you all for joining us today. We appreciate your continued support and look forward to updating you on our progress in the upcoming quarter. Have a great day.
Operator: Thank you for participating in today’s conference call. You may now disconnect.
And I think that’s part of what we’re seeing as we look out into ’25. We still see opportunity in that space, but it’s not as easy to find those large accounts as it was maybe a year ago. So, we’re continuing to focus on our sales efforts and looking for those opportunities, but I would say it’s a bit more of a normal environment now compared to the uptick we saw last year.
But at the same time, we are optimistic about some of the potential opportunities we are currently discussing.
Andrew Wittmann: Okay. That’s all my questions for today. Thank you for your time. Have a good day.
Steven Sintros: Thank you.
Shane O’Connor: Thanks.
Operator: Thank you. And I would now like to hand the conference back over to Steven Sintros for closing remarks.
Steven Sintros: I’d like to thank everyone again for joining us today to review our results. We look forward to speaking with you again in January when we expect to report our first quarter performance. Thank you again, and have a great day.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
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