UniFirst Q2 Profit Down - Quick Facts

(RTTNews) - UniFirst Corp. (UNF) reported that its net income for its second quarter ended February 29, 2020 decreased to $34.7 million or $1.82 per share from $47.6 million or $2.48 per share in the prior year quarter.

Operating income was $44.1 million, a decrease of 29.3% from last year.

The prior year operating income benefited from a pre-tax gain of $21.1 million, which was recorded in selling and administrative expenses. This amount reflected a settlement with the lead contractor for the version of the customer relationship management system for which the Company had recorded a $55.8 million impairment charge in fiscal 2017.

Excluding the effect of the CRM Settlement, earnings per share increased 9.0% from prior year's adjusted amount of $1.67.

Consolidated revenues for the second quarter increased 6.2% to $464.6 million from last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.65 per share and revenues of $457.48 million for the quarter. Analysts' estimates typically exclude special items.

Due to the evolving pandemic, ability to assess the financial impact on business remains limited.

The company noted that it is not providing guidance for the remainder of our fiscal 2020, due to the evolving coronavirus pandemic, ability to assess the financial impact on business remains limited.