Positioning Vestis for long-term success as we
advance our strategic plan while navigating in-year short-term
challenges
Second Quarter 2024 Results
- Revenue of $705 million increased 0.9% year-over-year;
excluding the impact of FX and the prior year temporary energy fee,
revenue growth was 2.8%
- Operating Income of $43 million or 6.1% of revenue
- Adjusted EBITDA of $87 million or 12.4% of revenue
- Operating Cash Flow of $127.5 million fiscal year-to-date, up
85% year-over-year
- Free Cash Flow of $97.7 million fiscal year-to-date, up 107%
year-over-year
- Reduced debt by $54M in Q2, including $45M of voluntary debt
prepayment; net debt leverage was 3.82x at the end of Q2, down from
3.95x at the end of fiscal 2023
Vestis Corporation (NYSE: VSTS), a leading provider of uniforms
and workplace supplies, today announced its results for the second
quarter ended March 29, 2024 and updated its outlook for fiscal
year 2024.
Management Commentary
“I am grateful to our team for the work they do each day and the
tremendous effort that has been put into executing the spin. With
this transition now behind us, we are keenly focused on advancing
our plan for long-term value creation”, said Kim Scott, Vestis
President and CEO.
“Our results in the quarter and outlook for the year are not in
line with expectations but demonstrate the power of our model and
the underlying health of the business, as evidenced by the strong
and improving cash flow generation despite the revenue shortfall.
Our ability to generate strong cash flows will serve us well as we
continue to ramp our sales productivity and improve customer
retention.
While we are lowering fiscal 2024 guidance as we navigate
short-term challenges, operating trends are improving across our
business. We are advancing our strategic plan, particularly in the
areas of logistics optimization and customer penetration through
cross-selling on routes. We remain confident in the value creation
opportunity for Vestis and are mobilized to capitalize on it over
the long-term.”
Second Quarter 2024 Financial Summary
This press release contains non-GAAP
financial measures. Reconciliations of non-GAAP financial measures
to the comparable GAAP measures are presented in the tables
accompanying this release.
($ in millions)
Consolidated
Three Months Ended
March 29, 2024
March 31, 2023
Change
Revenue
$
705.4
$
699.3
0.9
%
Operating Income
43.1
49.4
(12.8
)%
Adjusted Operating Income
58.5
65.7
(11.0
)%
Net Income
6.0
36.9
(83.8
)%
Adjusted EBITDA
87.2
92.8
(6.0
)%
Adjusted EBITDA Margin
12.4
%
13.3
%
(90 bps)
Vestis’ second quarter 2024 revenue increased 0.9% versus the
second quarter of 2023, which included a $13 million impact from
the temporary energy fee. Excluding the impact of foreign currency
and the prior year temporary energy fee, Vestis’ revenue growth
rate was 2.8%.
Second quarter fiscal 2024 adjusted EBITDA margin declined by 90
basis points, which included an approximately 60 basis point impact
from higher public company costs as compared to the prior year. The
impact of lower volume and the elimination of the temporary energy
fee more than offset the favorable impact of pricing and
productivity in the quarter.
Balance Sheet and Cash Flow
Vestis’ net cash provided by operating activities increased 85%
year-over-year in the first half of fiscal 2024 to $127.5 million.
Free cash flow in the first half of fiscal 2024 increased 107%
year-over-year to $97.7 million.
As of March 29, 2024, total principal debt outstanding was $1.44
billion, which includes the impact of a $54 million principal
repayment on the company’s Term Loan A-2 during the quarter; net
leverage declined from 3.95x at the end of fiscal 2023 to 3.82x at
the end of the second quarter of fiscal 2024.
During the second quarter, Vestis successfully refinanced its
$800 million 2-year Term Loan A-1 with an $800 million 7-year Term
Loan B-1, extending Vestis’ debt maturity profile by more than five
years to 2031.
Revised Fiscal Year 2024 Outlook
We now expect to deliver fiscal 2024 revenue growth in the range
of (1)% to 0%. Adjusted EBITDA margin is now expected to be between
12.0% and 12.4%. We continue to expect $15 to $18 million in
incremental public company costs in the period.
We are actively pursuing a portfolio of cost efficiency
programs, accelerating logistics and merchandise optimization, and
identifying and implementing the optimal organization structure to
accelerate growth.
Our strategic imperatives include disciplined capital allocation
with deleveraging as a priority. We continue to expect strong free
cash flow conversion and anticipate a ratio of free cash flow to
net income greater than or equal to 100%.
Forward Looking Non-GAAP Information
This release includes certain non-GAAP financial information
that is forward-looking in nature, including without limitation
adjusted EBITDA margin. Vestis believes that a quantitative
reconciliation of such forward-looking information to the most
comparable financial measure calculated and presented in accordance
with GAAP cannot be made available without unreasonable efforts. A
reconciliation of these non-GAAP financial measures would require
Vestis to predict the timing and likelihood of among other things
future acquisitions and divestitures, restructurings, asset
impairments, other charges and other factors not within Vestis’
control. Neither these forward-looking measures, nor their probable
significance, can be quantified with a reasonable degree of
accuracy. Accordingly, the most directly comparable forward-looking
GAAP measures are not provided. Forward-looking non-GAAP financial
measures provided without the most directly comparable GAAP
financial measures may vary materially from the corresponding GAAP
financial measures. The estimates of revenue growth for fiscal year
2024 and adjusted EBITDA margin for fiscal year 2024 do not attempt
to forecast currency fluctuations and, accordingly, reflect an
assumption of constant currency.
Conference Call Information
Vestis will host a webcast to discuss its fiscal second quarter
2024 results and outlook on Thursday, May 2, 2024 at 10:00 AM ET.
The webcast can be accessed live through the investor relations
section of the Company’s website at www.vestis.com. Additionally, a
slide presentation will accompany the call and will also be
available on the Company’s website. A replay of the live event will
be available on the Company’s website shortly after the call for 90
days.
About Vestis™
Vestis is a leader in the B2B uniform and workplace supplies
category. Vestis provides uniform services and workplace supplies
to a broad range of North American customers from Fortune 500
companies to locally owned small businesses across a broad set of
end sectors. The Company’s comprehensive service offering primarily
includes a full-service uniform rental program, floor mats, towels,
linens, managed restroom services, first aid supplies, and
cleanroom and other specialty garment processing.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the securities laws. All statements that reflect our
expectations, assumptions or projections about the future, other
than statements of historical fact, are forward-looking statements,
including, without limitation, forecasts relating to discussions of
future operations and financial performance and statements
regarding our strategy for growth, future product development,
regulatory approvals, competitive position and expenditures. In
some cases, forward-looking statements can be identified by words
such as “outlook,” “aim,” “anticipate,” “are or remain or continue
to be confident,” “have confidence,” “estimate,” “expect,” “will
be,” “will continue,” “will likely result,” “project,” “intend,”
“plan,” “believe,” “see,” “look to” and other words and terms of
similar meaning or the negative versions of such words. These
forward-looking statements are subject to risks and uncertainties
that may change at any time, and actual results or outcomes may
differ materially from those that we expected. Forward-looking
statements are not guarantees of future performance and are subject
to risks, uncertainties, and changes in circumstances that are
difficult to predict including, but not limited to: unfavorable
economic conditions; increases in fuel and energy costs; the
failure to retain current customers, renew existing customer
contracts and obtain new customer contracts; natural disasters,
global calamities, climate change, pandemics, strikes and other
adverse incidents; increased operating costs and obstacles to cost
recovery due to the pricing and cancellation terms of our support
services contracts; a determination by our customers to reduce
their outsourcing or use of preferred vendors; risks associated
with suppliers from whom our products are sourced; challenge of
contracts by our customers; our expansion strategy and our ability
to successfully integrate the businesses we acquire and costs and
timing related thereto; currency risks and other risks associated
with international operations; our inability to hire and retain key
or sufficient qualified personnel or increases in labor costs;
continued or further unionization of our workforce; liability
resulting from our participation in multiemployer-defined benefit
pension plans; liability associated with noncompliance with
applicable law or other governmental regulations; laws and
governmental regulations including those relating to the
environment, wage and hour and government contracting; increases or
changes in income tax rates or tax-related laws; new
interpretations of or changes in the enforcement of the government
regulatory framework; a cybersecurity incident or other disruptions
in the availability of our computer systems or privacy breaches;
stakeholder expectations relating to environmental, social and
governance considerations; the expected benefits of the separation
from Aramark and the risk that conditions to the separation will
not be satisfied; the risk of increased costs from lost synergies;
retention of existing management team members as a result of the
separation from Aramark; reaction of customers, employees and other
parties to the separation from Aramark, and the impact of the
separation on our business; our leverage and ability to meet debt
obligations; any failure by Aramark to perform its obligations
under the various separation agreements entered into in connection
with the separation and distribution; a determination by the IRS
that the distribution or certain related transactions are taxable;
and the and the timing and occurrence (or non-occurrence) of other
transactions, events and circumstances which may be beyond our
control. The above list of factors is not exhaustive or necessarily
in order of importance. For additional information on identifying
factors that may cause actual results to vary materially from those
stated in forward-looking statements, see Vestis’ filings with the
Securities and Exchange Commission. Any forward-looking statement
speaks only as of the date on which it is made, and we assume no
obligation to update or revise such statement, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
VESTIS CORPORATION
CONSOLIDATED AND COMBINED
STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share
amounts)
Three Months Ended
Six Months Ended
March 29, 2024
March 31, 2023
March 29, 2024
March 31, 2023
Revenue
$
705,368
$
699,305
$
1,423,291
$
1,400,002
Operating Expenses:
Cost of services provided (exclusive of
depreciation and amortization)
504,417
499,462
1,006,797
995,576
Depreciation and amortization
35,213
33,621
70,575
67,507
Selling, general and administrative
expenses
122,684
116,828
255,264
243,151
Total Operating Expenses
662,314
649,911
1,332,636
1,306,234
Operating Income
43,054
49,394
90,655
93,768
Interest Expense and Other, net
(34,713
)
161
(65,488
)
351
Income Before Income Taxes
8,341
49,555
25,167
94,119
Provision for Income Taxes
2,376
12,700
6,934
23,796
Net Income
$
5,965
$
36,855
$
18,233
$
70,323
Earnings per share:
Basic
$
0.05
$
0.28
$
0.14
$
0.54
Diluted
$
0.05
$
0.28
$
0.14
$
0.54
Weighted Average Shares
Outstanding(1):
Basic
131,524
130,725
131,457
130,725
Diluted
131,893
130,725
131,788
130,725
__________________
(1) During the three and six months ended
March 31, 2023, Vestis was not a publicly traded company, and
therefore, did not have available or issued shares of common stock
outstanding. In accordance with United States Generally Accepted
Accounting Principles, the Company elected to use the number of
shares of common stock distributed to shareholders of Aramark upon
the separation of Vestis from Aramark as the weighted average
shares outstanding to calculate earnings per share on the combined
results for three and six months ended March 31, 2023.
VESTIS CORPORATION
CONSOLIDATED AND COMBINED
BALANCE SHEETS
(Unaudited)
(In thousands, except per share
amounts)
March 29, 2024
September 29,
2023
ASSETS
Current Assets:
Cash and cash equivalents
$
30,659
$
36,051
Receivables (net of allowances: $19,966
and $25,066)
405,954
392,916
Inventories, net
140,931
174,719
Rental merchandise in service, net
400,661
399,035
Other current assets
26,543
17,244
Total current assets
1,004,748
1,019,965
Property and Equipment, at cost:
Land, buildings and improvements
575,696
585,797
Equipment
1,142,891
1,110,812
1,718,587
1,696,609
Less - Accumulated depreciation
(1,063,276
)
(1,032,078
)
Total property and equipment, net
655,311
664,531
Goodwill
963,734
963,543
Other Intangible Assets, net
225,657
238,608
Operating Lease Right-of-use Assets
55,584
57,890
Other Assets
216,627
212,587
Total Assets
$
3,121,661
$
3,157,124
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term
borrowings
$
8,000
$
26,250
Current maturities of financing lease
obligations
27,775
27,659
Current operating lease liabilities
19,272
19,935
Accounts payable
146,528
134,498
Accrued payroll and related expenses
95,104
113,771
Accrued expenses and other current
liabilities
103,475
73,412
Total current liabilities
400,154
395,525
Long-Term Borrowings
1,410,849
1,462,693
Noncurrent Financing Lease Obligations
110,702
105,217
Noncurrent Operating Lease Liabilities
43,475
46,084
Deferred Income Taxes
205,160
217,647
Other Noncurrent Liabilities
50,610
52,598
Total Liabilities
2,220,950
2,279,764
Commitments and Contingencies
Equity:
Common stock, par value $0.01 per share,
350,000,000 shares authorized, 131,450,628 shares issued and
outstanding as of March 29, 2024
1,315
—
Additional paid-in capital
921,346
—
Retained earnings
9,032
—
Net parent investment
—
908,533
Accumulated other comprehensive loss
(30,982
)
(31,173
)
Total Equity
900,711
877,360
Total Liabilities and Equity
$
3,121,661
$
3,157,124
VESTIS CORPORATION
CONDENSED CONSOLIDATED AND
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Six months ended
March 29, 2024
March 31, 2023
Net cash provided by operating
activities
$
127,542
$
68,765
Cash flows from investing activities:
Purchases of property and equipment and
other
(29,825
)
(32,345
)
Disposals of property and equipment
—
10,652
Net cash used in investing activities
(29,825
)
(21,693
)
Cash flows from financing activities:
Proceeds from long-term borrowings
798,000
—
Payments of long-term borrowings
(862,500
)
—
Payments of financing lease
obligations
(15,148
)
(13,852
)
Net cash distributions (to) from
Parent
(6,051
)
(46,941
)
Dividend payments
(4,600
)
—
Debt issuance costs
(11,134
)
—
Other financing activities
(1,728
)
—
Net cash used in financing activities
(103,161
)
(60,793
)
Effect of foreign exchange rates on cash
and cash equivalents
52
478
Increase (decrease) in cash and cash
equivalents
(5,392
)
(13,243
)
Cash and cash equivalents, beginning of
period
36,051
23,736
Cash and cash equivalents, end of
period
$
30,659
$
10,493
Non-GAAP Definitions
This release could include certain non-GAAP financial measures,
such as Adjusted Revenue Growth (Organic), Adjusted Revenue
(Organic), Adjusted Revenue Growth excluding Temporary Energy Fee,
Adjusted Revenue excluding Temporary Energy Fee, Adjusted Operating
Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted
EBITDA Margin, Free Cash Flow, Net Debt, Net Leverage, and Trailing
Twelve Months Adjusted EBITDA. Vestis utilizes these measures when
monitoring and evaluating operating performance. The non-GAAP
financial measures presented herein are supplemental measures of
Vestis’ performance that Vestis believes help investors because
they enable better comparisons of Vestis’ historical results and
allow Vestis’ investors to evaluate its performance based on the
same metrics that Vestis uses to evaluate its performance and
trends in its results. Vestis’ presentation of these metrics has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for analysis of Vestis’ results as
reported under U.S. GAAP. Because of their limitations, these
non-GAAP financial measures should not be considered as measures of
cash available to Vestis to invest in the growth of Vestis’
business or that will be available to Vestis to meet its
obligations. Vestis compensates for these limitations by using
these non-GAAP financial measures along with other comparative
tools, together with U.S. GAAP financial measures, to assist in the
evaluation of operating performance. You should not consider these
measures as alternatives to revenue, operating income, operating
income margin, net income, net income margin or net cash provided
by operating activities determined in accordance with U.S. GAAP.
Vestis believes that these non-GAAP financial measures, in addition
to the corresponding U.S. GAAP financial measures, are important
supplemental measures which exclude non-cash or other items that
may not be indicative of or are unrelated to Vestis’ core operating
results and the overall health of Vestis. Non-GAAP financial
measures as presented by Vestis may not be comparable to other
similarly titled measures of other companies because not all
companies use identical calculations.
Adjusted Revenue Growth (Organic)
Adjusted Revenue Growth (Organic) measures our revenue growth
trends excluding the impact of acquisitions and foreign currency,
and we believe it is useful for investors to understand growth
through internal efforts. We define “organic revenue growth” as the
growth in revenues, excluding (i) acquisitions, (ii) the impact of
foreign currency exchange rate changes, and (iii) the impact of the
53rd week, when applicable.
Adjusted Revenue (Organic)
Adjusted Revenue (Organic) represents revenue as determined in
accordance with U.S. GAAP, adjusted to exclude (i) acquisitions,
(ii) the impact of foreign currency exchange rate changes, and
(iii) the impact of the 53rd week, when applicable.
Adjusted Revenue Growth excluding Temporary Energy
Fee
We define “adjusted revenue growth excluding temporary energy
fee” as the growth in revenues, excluding (i) acquisitions, (ii)
the impact of foreign currency exchange rate changes, (iii) the
impact of the 53rd week, when applicable and (iv) the impact of the
temporary energy fee, when applicable. We believe it is useful for
investors to understand growth through internal efforts.
Adjusted Revenue excluding Temporary Energy Fee
Adjusted Revenue excluding Temporary Energy Fee represents
revenue as determined in accordance with U.S. GAAP, adjusted to
exclude (i) acquisitions, (ii) the impact of foreign currency
exchange rate changes, (iii) the impact of the 53rd week, when
applicable, and (iv) the impact of the temporary energy fee, when
applicable.
Adjusted Operating Income
Adjusted Operating Income represents Operating Income adjusted
for Amortization Expense of Acquired Intangibles; Share-based
Compensation Expense; Severance and Other Charges; Merger and
Integration Related Charges; Management Fee; Separation Related
Charges; Estimated Impact of 53rd Week, when applicable; and Gain,
Losses, Settlements and Other Items impacting comparability.
Adjusted results are presented in order to reflect the results in a
manner that allows a better understanding of operational activities
separate from the financial impact of decisions made for the
long-term benefit of the company and other items impacting
comparability between periods. Similar adjustments have been
recorded in earlier periods and similar types of adjustments can
reasonably be expected to be recorded in future periods.
Adjusted Operating Income Margin
Adjusted Operating Income Margin represents Adjusted Operating
Income as a percentage of Revenue.
Adjusted EBITDA
Adjusted EBITDA represents Net Income adjusted for Provision for
Income Taxes; Interest Expense and Other, net; and Depreciation and
Amortization (EBTIDA), further adjusted for Share-based
Compensation Expense; Severance and Other Charges; Merger and
Integration Charges; Management Fee; Separation Related Charges;
Estimated Impact of 53rd Week (when applicable); Gains, Losses,
Settlements; and other items impacting comparability. Adjusted
results are presented in order to reflect the results in a manner
that allows a better understanding of operational activities
separate from the financial impact of decisions made for the
long-term benefit of the company and other items impacting
comparability between periods. Similar adjustments have been
recorded in earlier periods and similar types of adjustments can
reasonably be expected to be recorded in future periods.
Adjusted EBITDA Margin
Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of
Revenue.
Free Cash Flow
Free Cash Flow represents Net cash provided by operating
activities adjusted for Purchases of Property and Equipment and
Other and Disposals of property and equipment.
Net Debt
Net Debt represents total principal debt outstanding and finance
lease obligations, less cash and cash equivalents.
Net Leverage
Net Leverage represents Net Debt divided by the Trailing Twelve
Months Adjusted EBITDA.
Trailing Twelve Months Adjusted EBITDA
Trailing Twelve Months Adjusted EBITDA represents Adjusted
EBITDA for the preceding four fiscal quarters.
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
(In millions)
United States
Canada
Corporate
Consolidated
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
March 29,
March 31,
March 29,
March 31,
March 29,
March 31,
March 29,
March 31,
2024
2023
2024
2023
2024
2023
2024
2023
Revenue (as reported)
$
642.1
$
636.9
$
63.3
$
62.4
$
705.4
$
699.3
Effect of Currency Translation on Current
Year Revenue
—
—
(0.2
)
—
(0.2
)
—
Adjusted Revenue (Organic)
$
642.1
$
636.9
$
63.1
$
62.4
$
705.2
$
699.3
Temporary Energy Fee
—
13.4
—
—
—
13.4
Adjusted Revenue excluding Temporary
Energy Fee
$
642.1
$
623.5
$
63.1
$
62.4
$
705.2
$
685.9
Revenue Growth (as reported)
0.8
%
5.4
%
1.4
%
6.5
%
0.9
%
5.5
%
Adjusted Revenue Growth (Organic)
0.8
%
5.4
%
1.1
%
14.0
%
0.8
%
6.1
%
Adjusted Revenue Growth excluding
Temporary Energy Fee
3.0
%
3.2
%
1.1
%
14.0
%
2.8
%
4.1
%
Operating Income (as reported)
$
71.2
$
68.2
$
1.0
$
1.5
$
(29.1
)
$
(20.3
)
$
43.1
$
49.4
Amortization Expense
6.4
6.4
0.1
0.1
—
—
6.5
6.5
Share-Based Compensation
—
—
—
—
4.7
3.5
4.7
3.5
Severance and Other Charges
(0.6
)
5.7
—
(0.2
)
—
—
(0.6
)
5.5
Separation Related Charges
—
—
—
—
4.1
3.4
4.1
3.4
Management Fee
(1.9
)
(1.9
)
1.9
1.9
—
—
—
—
Gain, Losses, and Settlements
0.7
(5.2
)
—
—
—
2.6
0.7
(2.6
)
Total Operating Income Adjustments
$
4.6
$
5.0
$
2.0
$
1.8
$
8.8
$
9.5
$
15.4
$
16.3
Adjusted Operating Income (Non-GAAP)
$
75.8
$
73.2
$
3.0
$
3.3
$
(20.3
)
$
(10.8
)
$
58.5
$
65.7
Depreciation Expense
25.9
24.5
2.8
2.5
—
0.1
28.7
27.1
Adjusted EBITDA (Non-GAAP)
$
101.7
$
97.7
$
5.8
$
5.8
$
(20.3
)
$
(10.7
)
$
87.2
$
92.8
Operating Income Margin (as reported)
11.1
%
10.7
%
1.6
%
2.4
%
6.1
%
7.1
%
Adjusted Operating Income Margin
(Non-GAAP)
11.8
%
11.5
%
4.7
%
5.3
%
8.3
%
9.4
%
Adjusted EBITDA Margin (Non-GAAP)
15.8
%
15.3
%
9.2
%
9.3
%
12.4
%
13.3
%
Net Income (as reported)
$
6.0
$
36.9
Operating Income Adjustments (Above)
15.4
16.3
Tax Impact of Operating Income
Adjustments
(4.0
)
(4.2
)
Adjusted Net Income (Non-GAAP)
$
17.4
$
49.0
Basic weighted-average shares outstanding
(millions)
131.5
130.7
Diluted weighted-average shares
outstanding (millions)
131.9
130.7
Basic Earnings Per Share
$
0.05
$
0.28
Diluted Earnings Per Share
$
0.05
$
0.28
Adjusted Basic Earnings Per Share
$
0.13
$
0.37
Adjusted Diluted Earnings Per Share
$
0.13
$
0.37
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
(In millions)
United States
Canada
Corporate
Consolidated
Six Months Ended
Six Months Ended
Six Months Ended
Six Months Ended
March 29,
March 31,
March 29,
March 31,
March 29,
March 31,
March 29,
March 31,
2024
2023
2024
2023
2024
2023
2024
2023
Revenue (as reported)
$
1,295.3
$
1,274.6
$
128.0
$
125.4
$
1,423.3
$
1,400.0
Effect of Currency Translation on Current
Year Revenue
—
—
—
—
—
—
Adjusted Revenue (Organic)
$
1,295.3
$
1,274.6
$
128.0
$
125.4
$
1,423.3
$
1,400.0
Temporary Energy Fee
—
26.7
—
—
—
26.7
Adjusted Revenue excluding Temporary
Energy Fee
$
1,295.3
$
1,247.9
$
128.0
$
125.4
$
1,423.3
$
1,373.3
Revenue Growth (as reported)
1.6
%
5.7
%
2.1
%
5.9
%
1.7
%
5.7
%
Adjusted Revenue Growth (Organic)
1.6
%
5.7
%
2.1
%
13.9
%
1.7
%
6.4
%
Adjusted Revenue Growth excluding
Temporary Energy Fee
3.8
%
3.5
%
2.1
%
13.9
%
3.6
%
4.4
%
Operating Income (as reported)
$
145.3
$
132.0
$
5.6
$
6.9
$
(60.2
)
$
(45.1
)
$
90.7
$
93.8
Amortization Expense
12.9
12.8
0.1
0.2
—
—
13.0
13.0
Share-Based Compensation
—
—
—
—
9.4
8.0
9.4
8.0
Severance and Other Charges
(0.2
)
5.7
—
(0.2
)
—
—
(0.2
)
5.5
Separation Related Charges
—
—
—
—
13.1
6.9
13.1
6.9
Management Fee
(3.8
)
(3.8
)
3.8
3.8
—
—
—
—
Gain, Losses, and Settlements
2.0
(4.5
)
—
—
—
7.7
2.0
3.2
Total Operating Income Adjustments
$
10.9
$
10.2
$
3.9
$
3.8
$
22.5
$
22.6
$
37.3
$
36.6
Adjusted Operating Income (Non-GAAP)
$
156.2
$
142.2
$
9.5
$
10.7
$
(37.7
)
$
(22.5
)
$
128.0
$
130.4
Depreciation Expense
51.9
49.2
5.6
5.0
0.1
0.2
57.6
54.4
Adjusted EBITDA (Non-GAAP)
$
208.1
$
191.4
$
15.1
$
15.7
$
(37.6
)
$
(22.3
)
$
185.6
$
184.8
Operating Income Margin (as reported)
11.2
%
10.4
%
4.4
%
5.5
%
6.4
%
6.7
%
Adjusted Operating Income Margin
(Non-GAAP)
12.1
%
11.2
%
7.4
%
8.5
%
9.0
%
9.3
%
Adjusted EBITDA Margin (Non-GAAP)
16.1
%
15.0
%
11.8
%
12.5
%
13.0
%
13.2
%
Net Income (as reported)
$
18.2
$
70.3
Operating Income Adjustments (Above)
37.3
36.6
Tax Impact of Operating Income
Adjustments
(9.6
)
(9.4
)
Adjusted Net Income (Non-GAAP)
$
45.9
$
97.5
Basic weighted-average shares outstanding
(millions)
131.5
130.7
Diluted weighted-average shares
outstanding (millions)
131.8
130.7
Basic Earnings Per Share
$
0.14
$
0.54
Diluted Earnings Per Share
$
0.14
$
0.54
Adjusted Basic Earnings Per Share
$
0.35
$
0.75
Adjusted Diluted Earnings Per Share
$
0.35
$
0.75
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
(In millions)
Operating Income for the fiscal year ended
September 29, 2023 (as reported in the Company's Form 10-K)
$
217.9
Amortization Expense
26.0
Share-Based Compensation
14.5
Severance and Other Charges
4.9
Separation Related Charges
31.1
Gain, Losses, and Settlements
(0.8
)
Depreciation Expense
110.3
Trailing Twelve Months Adjusted EBITDA for
the period ended September 29, 2023 (Non-GAAP)
$
403.9
Less Adjusted EBITDA (Non-GAAP) for the
six months ended March 31, 2023
(184.8
)
Plus Adjusted EBITDA (Non-GAAP) for the
six months ended March 29, 2024
185.6
Trailing Twelve Months Adjusted EBITDA for
the period ended March 29, 2024 (Non-GAAP)
$
404.7
Operating Income for the fiscal year ended
September 29, 2023 (as reported in the Company's Form 10-K)
$
217.9
Amortization Expense
26.0
Share-Based Compensation
14.5
Severance and Other Charges
4.9
Separation Related Charges
31.1
Gain, Losses, and Settlements
(0.8
)
Depreciation Expense
110.3
Trailing Twelve Months Adjusted EBITDA for
the period ended September 29, 2023 (Non-GAAP)
$
403.9
Less Adjusted EBITDA (Non-GAAP) for the
quarter ended December 30, 2022
(92.0
)
Plus Adjusted EBITDA (Non-GAAP) for the
quarter ended December 29, 2023
98.4
Trailing Twelve Months Adjusted EBITDA for
the period ended December 29, 2023 (Non-GAAP)
$
410.3
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
FREE CASH FLOW, NET DEBT, AND
NET LEVERAGE
(In millions)
Six Months Ended
March 29, 2024
March 31, 2023
Net cash provided by operating
activities
$
127.5
$
68.8
Purchases of property and equipment and
other
(29.8
)
(32.3
)
Disposals of property and equipment
—
10.7
Free Cash Flow (Non-GAAP)
$
97.7
$
47.1
As of
March 29, 2024
December 29, 2023
September 29, 2023
Total principal debt outstanding
$
1,437.5
$
1,491.3
$
1,500.0
Finance lease obligations
138.5
135.8
132.9
Less: Cash and cash equivalents
(30.7
)
(48.9
)
(36.1
)
Net Debt (Non-GAAP)
$
1,545.3
$
1,578.2
$
1,596.8
Net Leverage (Non-GAAP)
3.82
3.85
3.95
Twelve months ended
March 29, 2024
December 29, 2023
September 29, 2023
Trailing Twelve Months Adjusted EBITDA
(Non-GAAP)
$
404.7
$
410.3
$
403.9
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502316057/en/
Investors Michael Aurelio, CFA 470-653-5015
michael.aurelio@vestis.com
Media Danielle Holcomb 470-716-0917
danielle.holcomb@vestis.com
Grafico Azioni Vestis (NYSE:VSTS)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Vestis (NYSE:VSTS)
Storico
Da Nov 2023 a Nov 2024
