EX-99 4 ex99-1_form8k.htm PRESS RELEASE

Exhibit 99

UniFirst Corporation News Release
68 Jonspin Road
Wilmington, MA 01887-1086
Telephone 978-658-8888 Ext 520
Facsimile 978-988-0659
contact:       John B. Bartlett
                     Senior Vice President
                     jbartlett@unifirst.com

UNIFIRST ANNOUNCES RECORD FINANCIAL RESULTS
FOR FISCAL 2005 FIRST QUARTER

Wilmington, MA (January 5, 2005) — UniFirst Corporation (NYSE: UNF) today announced record revenues and earnings for its fiscal 2005 first quarter, the thirteen weeks ended November 27, 2004.

First quarter net income was a record $13.4 million, the first time in the Company’s history that net income exceeded $10.0 million in a quarter. This translated to $0.69 per diluted common share and was a 40.2 percent increase from last year’s first quarter net income of $9.5 million, or $0.49 per diluted common share. Revenues for the first quarter of fiscal 2005 were a record $188.4 million, a 4.2 percent increase from $180.9 million in the same period a year ago.

The primary reason for the significant increase in net income in fiscal 2005 was related to a decrease in operating costs. As a percentage of revenues, operating costs decreased 2.0% from 63.6% for fiscal 2004 to 61.6% for fiscal 2005. Of this decrease, 1.4% was from lower merchandise amortization for the locations acquired as part of the Textilease acquisition. The Company also benefited from cost savings realized from the Company’s manufacturing operations in Mexico and lower production payroll costs as a percent of revenues. These benefits were somewhat offset by higher energy costs associated with operating industrial laundries as well as in utilizing our fleet of delivery vehicles. The Company also benefited from lower depreciation and intangible asset amortization expenses.

“As we enter our sixty-ninth year, both revenues and earnings were the highest of any quarter in our history,” said Ronald D. Croatti, UniFirst’s President and Chief Executive Officer. “We are very pleased with our record first quarter results.”

The Company will hold a conference call today at 4:00 PM (EST) to discuss its quarterly financial results, business highlights and outlook. A simultaneous live webcast of the call will be available over the Internet and can be accessed at www.unifirst.com.

UniFirst is one of the largest providers of workplace uniforms, protective clothing and facility services products in North America. The Company employs 9,000 team partners who serve more than 175,000 customer locations in 46 states, Canada and Europe from 175 manufacturing, distribution and customer service facilities.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. This public announcement may contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties. The words “anticipate” and “should,” and other expressions that indicate future events and trends identify forward-looking statements. Actual future results may differ materially from those anticipated depending on a variety of factors, including, but not limited to, performance of acquisitions; economic and business changes; fluctuations in the cost of materials, fuel and labor; economic and other developments associated with the on-going war on terrorism; strikes and unemployment levels; demand and price for the Company’s products and services; improvement in under performing rental operations; and the outcome of pending and future litigation and environmental matters.

[Tables follow]

UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)
November 27,
2004

August 28,
2004 (a)

Assets            
Current assets:  
   Cash and cash equivalents   $ 6,217   $ 4,436  
   Receivables, net    81,395    69,471  
   Inventories    27,279    31,060  
   Rental merchandise in service    63,304    60,544  
   Prepaid taxes and deferred tax assets    4,184    2,753  
   Prepaid expenses    4,620    1,857  

      Total current assets    186,999    170,121  

Property and equipment:  
   Land, buildings and leasehold improvements    243,704    240,018  
   Machinery and equipment    263,278    258,736  
   Motor vehicles    71,748    70,048  

     578,730    568,802  
   Less - accumulated depreciation    288,409    280,012  

     290,321    288,790  

Other assets    242,924    241,911  

    $ 720,244   $ 700,822  

Liabilities and Shareholders' Equity            
Current liabilities:  
   Current maturities of long-term obligations   $ 1,374   $ 986  
   Accounts payable    35,434    33,754  
   Accrued liabilities    74,037    72,824  
   Accrued and deferred income taxes    12,552    5,611  

      Total current liabilities    123,397    113,175  

Long-term obligations, net of current maturities    171,146    177,855  
Deferred income taxes    42,102    42,043  

Shareholders' equity:  
   Common stock    945    928  
   Class B common stock    976    993  
   Capital surplus    13,175    13,138  
   Retained earnings    365,904    353,196  
   Accumulated other comprehensive income (loss)    2,599    (506 )

      Total shareholders' equity    383,599    367,749  

    $ 720,244   $ 700,822  

(a)    Condensed from audited financial statements.

UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)
Thirteen
weeks ended
November 27,
2004

Thirteen
weeks ended
November 29,
2003

Revenues     $ 188,434   $ 180,898  

Costs and expenses:  
   Operating costs    116,033    115,088  
   Selling and administrative expenses    38,601    36,827  
   Depreciation and amortization    10,663    11,028  

     165,297    162,943  

Income from operations    23,137    17,955  

Interest:  
   Interest expense    2,191    3,242  
   Interest income    (369 )  (292 )
   Interest rate swap income    (223 )  (480 )

     1,599    2,470  

Income before income taxes    21,538    15,485  
Provision for income taxes    8,184    5,962  

Net income   $ 13,354   $ 9,523  

Weighted average number of shares outstanding:  
  Basic-Common Stock    9,281    9,009  
  Basic-Class B Common Stock    9,926    10,175  
  Diluted-Common Stock    19,277    19,249  

Net income per share:  
  Basic-Common Stock   $ 0.78   $ 0.56  
  Basic-Class B Common Stock    0.62    0.44  
  Diluted-Common Stock    0.69    0.49  

Dividends per share:  
  Common Stock   $ 0.0375   $ 0.0375  
  Class B Common Stock    0.0300    0.0300