UniFirst Vaults Wednesday on Q1 Results

UniFirst Corporation (NYSE: UNF) saw its shares reach for the sky Wednesday, a few hours after reporting results for its first quarter ended November 28, 2020 as compared to the corresponding period in the prior fiscal year:

Consolidated revenues for the first quarter decreased 4.0% to $446.9 million. Operating income was $56.0 million, a decrease of 6.7%.

The company’s quarterly tax rate increased to 25.0% compared to 22.1% in prior year. Net income decreased to $41.9 million, or 13.2%.

Diluted earnings per share decreased to $2.20 from $2.52, or 12.7%.

Said CEO Steven Sintros, "Overall, we are pleased with our first quarter results which were achieved despite the impact that the COVID-19 pandemic continues to have on our business and the economy as a whole.

"As a Company, our top priorities continue to be the safety of our employee Team Partners as well as servicing our customers, many of whom are critical to keeping our communities up and running. I want to again sincerely thank our Team Partners for the tremendous effort they continue to put forth ensuring that they are taking care of each other and our customers during these challenging times. They truly continue to deliver in every way."

Moreover, cash, cash equivalents and short-term investments totaled $473.0 million as of November 28, 2020. The Company had no long-term debt outstanding as of November 28, 2020.

Under its previously announced stock repurchase program, the Company repurchased 41,000 shares of common stock for a total of $7.2 million during its first fiscal quarter of 2021.

UNF shares jumped $6.05, or 2.9%, to $216.90