EX-99 4 ex-99_form8k.htm

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 FINANCIAL RESULTS
FOR THE SECOND QUARTER AND FIRST HALF OF FISCAL 2006

Wilmington, MA (March 30, 2006) — UniFirst Corporation (NYSE: UNF) today announced its revenues and earnings for its fiscal 2006 second quarter and first half of fiscal 2006 which ended February 25, 2006.

Revenues were a record $202.2 million and $401.5 million for the second quarter and first half of fiscal 2006, respectively. These revenues represent an increase of 6.0% and 5.9%, respectively, from the $190.7 million and $379.1 million in the comparable 2005 periods. This revenue growth was achieved despite a decrease in revenues for the Company’s Specialty Garments (nuclear and clean room) segment of 24.0% and 22.4% for the quarter and six month periods, respectively. Revenue from the Company’s core laundry business grew 8.5% in both the quarter and six month periods as compared to fiscal 2005.

Second quarter net income was $6.3 million or $0.33 per diluted common share compared to last year’s second quarter net income of $10.1 million, or $0.52 per diluted common share. Net income for the first six months of fiscal 2006 was $17.7 million or $0.92 per diluted common share compared to $23.4 million, or $1.21 per diluted common share for the comparable period in 2005.

The primary reason for this decrease in net income was the Company’s Specialty Garments segment. This segment’s income from operations decreased approximately $2.8 million and $5.9 million in the comparable quarterly and six month periods. This decrease in profitability of Specialty Garments is directly attributable to a decrease in revenues between comparable periods.

Excluding the Company’s Specialty Garments and First Aid segments, income from operations from the Company’s core laundry business decreased 15.9% and 4.2% in the comparable quarterly and six month periods. The primary reasons for the decline in the core laundry business’ profitability were increased natural gas, fuel and merchandise costs. Selling costs also continue to be high as a percentage of revenues compared to fiscal 2005 due to a conscious effort to increase the size of the Company’s sales force. In addition, the core laundry operations profitability was impacted in the quarter by higher than expected employee related costs, including healthcare claims.

“We are encouraged by the growth within our core laundry operations and remain optimistic that our results for the remainder of the fiscal year will compare favorably to 2005”, said Ronald D. Croatti, UniFirst’s President and Chief Executive Officer. “We also continue to be positive about the longer term prospects of the Specialty Garments segment.”

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 9,200 team partners who serve approximately 190,000 customer locations in 46 states, Canada and Europe from 179 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; the speed of business recovery from recent hurricanes in the southeast; 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 STATEMENTS OF INCOME

(In thousands, except per share data)
Twenty-six
weeks ended
February 25,
2006

Twenty-six
weeks ended
February 26,
2005

Thirteen
weeks ended
February 25,
2006

Thirteen
weeks ended
February 26,
2005

Revenues     $ 401,493   $ 379,118   $ 202,168   $ 190,684  
Costs and expenses:  
   Operating costs (1)    258,498    238,195    132,767    122,730  
   Selling and administrative expenses (1)    87,225    78,361    45,159    39,192  
   Depreciation and amortization    22,210    21,730    11,278    11,067  




     367,933    338,286    189,204    172,989  




Income from operations    33,560    40,832    12,964    17,695  




Other expense (income):  
   Interest expense    4,995    4,255    2,664    2,064  
   Interest income    (731 )  (970 )  (475 )  (601 )
   Interest rate swap income    --    (223 )  --    --  




     4,264    3,062    2,189    1,463  




Income before income taxes    29,296    37,770    10,775    16,232  
Provision for income taxes    11,579    14,353    4,448    6,169  




Net income   $ 17,717   $ 23,417   $ 6,327   $ 10,063  




Income per share - Basic:   
   Common Stock   $ 1.02   $ 1.36   $ 0.36   $ 0.58  
   Class B Common Stock   $ 0.82   $ 1.09   $ 0.29   $ 0.47  

Income per share - Diluted:
  
   Common Stock   $ 0.92   $ 1.21   $ 0.33   $ 0.52  

Weighted average number of shares outstanding - Basic:
  
   Common Stock    9,683    9,369    9,747    9,456  
   Class B Common Stock    9,557    9,843    9,494    9,759  




     19,240    19,212    19,241    19,215  

Weighted average number of shares outstanding - Diluted:
  
   Common Stock    19,321    19,296    19,316    19,315  

Dividends per share:
  
  Common Stock   $ 0.0750   $ 0.0750   $ 0.0375   $ 0.0375  
  Class B Common Stock   $ 0.0600   $ 0.0600   $ 0.0300   $ 0.0300  

    (1)        Exclusive of depreciation and amortization.

UNIFIRST CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
February 25,
2006

August 27,
2005

Assets            
Current assets:  
   Cash and cash equivalents   $ 4,358   $ 4,704  
   Receivables, net    86,415    78,497  
   Inventories    30,731    31,021  
   Rental merchandise in service    76,796    69,808  
   Prepaid and deferred income taxes    10,652    8,983  
   Prepaid expenses    2,732    1,492  


      Total current assets    211,684    194,505  


Property and equipment:  
   Land, buildings and leasehold improvements    265,182    260,515  
   Machinery and equipment    277,500    268,272  
   Motor vehicles    81,639    76,147  


     624,321    604,934  
   Less - accumulated depreciation    314,678    299,983  


     309,643    304,951  


Goodwill    195,969    187,793  
Customer contracts and other intangible assets, net    57,733    56,481  
Other assets    4,732    4,575  


    $ 779,761   $ 748,305  


Liabilities and Shareholders' Equity  
Current liabilities:  
   Current maturities of long-term obligations   $ 612   $ 1,084  
   Accounts payable    36,673    36,720  
   Accrued liabilities    76,103    76,141  
   Accrued income taxes    --    3,992  


      Total current liabilities    113,388    117,937  


Long-term obligations, net of current maturities    192,690    175,587  
Deferred income taxes    42,610    42,439  
Shareholders' equity:  
   Common stock    978    960  
   Class B common stock    946    964  
   Capital surplus    14,161    13,462  
   Retained earnings    411,326    394,910  
   Accumulated other comprehensive income    3,662    2,046  


      Total shareholders' equity    431,073    412,342  


    $ 779,761   $ 748,305