First Quarter 2025 Results
- Delivered Q1 results in-line with expectations and reaffirms
fiscal 2025 outlook
- Revenue of $684 million, as expected
- Operating Income of $30 million increased 2% sequentially
versus Q4 2024 and Operating Margin of 4.4% was flat
sequentially
- Adjusted EBITDA of $81 million, as expected, increased 0.9%
sequentially versus Q4 2024 and Adjusted EBITDA margin of 11.9%
increased 10 basis points sequentially
- Voluntarily prepaid $20 million of term loan debt during the
quarter
Vestis Corporation (NYSE: VSTS), a leading provider of uniforms
and workplace supplies, today announced its results for the first
quarter ended December 27, 2024 and reiterated its outlook for
fiscal year 2025.
Management Commentary
“We are pleased with our first quarter results, which were
in-line with our expectations,” said Kim Scott, President and CEO.
“Our business continues to build momentum. In the second quarter,
we expect to hit a significant milestone, with new volume outpacing
customer losses driven by field sales productivity, national
account wins, and lower customer churn. Further, select pricing
actions and cost savings should benefit our bottom line. We remain
on track to deliver full year results in-line with our outlook,
with sequential improvement in our results throughout the year
supporting a double-digit EBITDA growth rate heading into fiscal
2026.”
First Quarter 2025 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.
Vestis’ first quarter fiscal 2025 revenue totaled $683.8
million, as compared to $717.9 million in the first quarter of
fiscal 2024. Sequentially, Vestis’ first quarter fiscal 2025
revenue was approximately flat versus the fourth quarter of fiscal
2024, in-line with expectations.
First quarter fiscal 2025 adjusted EBITDA totaled $81.2 million,
as compared to $98.4 million in the first quarter of fiscal 2024.
Sequentially, Vestis’ first quarter fiscal 2025 adjusted EBITDA
increased 0.9% versus the fourth quarter of fiscal 2024, in-line
with expectations. First quarter fiscal 2025 adjusted EBITDA margin
increased 10 basis points sequentially.
Balance Sheet and Cash Flow
Vestis’ net cash provided by operating activities for the three
months ended December 27, 2024 was $3.8 million, as compared to
$51.5 million for the comparable period of fiscal 2024. The
decrease was driven by lower operating income and a significant
impact from a timing shift of accounts receivable cash collections,
which shifted into January due to timing of holidays and the
quarter end date in fiscal 2025. This timing dynamic was temporary,
has already been resolved, and does not impact cash flow generation
on an underlying basis for the full year.
As of December 27, 2024, total principal debt outstanding was
$1.14 billion, which reflects the voluntary prepayment of $20
million in the quarter, resulting in net leverage of 3.80x at the
end of the first quarter of fiscal 2025, as compared to 3.62x at
the end of fiscal 2024.
Declaration of Quarterly Dividend
The company’s Board of Directors declared a quarterly cash
dividend of $0.035 per common share payable on March 18, 2025 to
shareholders of record at the close of business on February 21,
2025.
Fiscal Year 2025 Outlook
The Company continues to expect fiscal 2025 revenue to be in the
range of $2.8 billion to $2.83 billion and fiscal 2025 Adjusted
EBITDA to be in the range of $345 million to $360 million.
The Company’s fiscal 2025 guidance is provided on a normalized
52-week fiscal year basis. Fiscal 2025 reported financials will
include the impact of a 53rd week, with the extra week impacting
the fourth quarter.
The Company’s strategic imperatives include disciplined capital
allocation with deleveraging as a priority. The Company continues
to expect strong free cash flow conversion and to anticipate a
ratio of free cash flow to Adjusted EBITDA of approximately
50%.
Vestis Announces Chief Financial Officer and Chief Legal
Officer Transitions
The Company announced that Rick Dillon, Executive Vice President
and Chief Financial Officer, will be leaving the Company as part of
a transition of the Chief Financial Officer role. Mr. Dillon will
remain with the Company until February 14, 2025 to assist with
transitioning his role.
“We are grateful to Rick for the outstanding contributions he
has made to Vestis since joining us in 2022,” said Kim Scott. “He
has been an invaluable partner to me, and his leadership in
preparing for Vestis’ separation as a standalone company and
building out our public company finance capabilities will have a
lasting positive impact on our company. We remain grateful for his
service to the company and wish him continued success.”
“I am leaving Vestis in a strong position and remain confident
in the company’s future and ability to capitalize on the attractive
value creation opportunity yet ahead,” said Rick Dillon, CFO. “We
are seeing exciting green shoots and underlying momentum in our
business, and I am pleased that my departure follows several
quarters of delivering against our new financial commitments.”
The Company also announced that Kelly Janzen will join Vestis as
its Executive Vice President and Chief Financial Officer, effective
February 14, 2025. Ms. Janzen brings over 25 years of experience in
various financial leadership roles and has been working with Vestis
as a finance consultant since October 2024. Prior to joining
Vestis, Ms. Janzen was finance executive in residence at Fernweh
Group and working as Chief Financial Officer for Dabico Airport
Solutions from January 2024 to May 2024. Previously, she served as
Senior Vice President and Chief Financial Officer of BlueLinx
Corporation (NYSE: BCX) from April 2020 to August 2023. In addition
to her experience at BlueLinx, Ms. Janzen has served as Senior Vice
President and Chief Accounting Officer of WestRock (NYSE: WRK) from
August 2017 to March 2020, Vice President and Chief Accounting
Officer of Baker Hughes (NYSE: BKR) from September 2016 to July
2017, Vice President Finance and Chief Accounting Officer of
McDermott International (formerly NASDAQ: MDR) from December 2014
to August 2016, and held progressive leadership roles in finance
and accounting at General Electric for more than 10 years. Ms.
Janzen will be based out of the Company’s headquarters in Roswell,
Georgia.
“We are delighted to welcome Kelly to Vestis as we transition
our finance team to the next phase of value creation,” said Kim
Scott. “Her proven leadership and strong business process
optimization experience will serve us well as we continue to
advance the finance organization in support of delivering our
objectives as a company.”
In addition, the Company announced that Tim Donovan, Executive
Vice President, Chief Legal Officer and General Counsel, will be
retiring effective February 14, 2025, and Andre “Butch” Bouchard
will be appointed Executive Vice President, Chief Legal Officer,
General Counsel & Corporate Secretary effective February 14,
2025. Mr. Bouchard has over 30 years of public company legal
experience in the industrial and energy industries. Prior to
joining Vestis, Mr. Bouchard was Executive Vice President,
Administration, Chief Legal Officer & Secretary at TEAM, Inc.
(NYSE: TISI), where he held progressive legal leadership roles for
more than 17 years. In addition to his experience at TEAM, Mr.
Bouchard held progressive legal leadership roles at Southern Union
Company (NYSE: SUG) and its subsidiaries for 14 years. Mr. Bouchard
will be based out of the Company’s headquarters in Roswell,
Georgia.
Forward Looking Non-GAAP Information
This release includes certain non-GAAP financial information
that is forward-looking in nature, including without limitation
adjusted EBITDA. 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 forward-looking 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
2025 and adjusted EBITDA for fiscal year 2025 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 first quarter
2025 results on Friday, January 31, 2025 at 8:30 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,” “anticipate,” “continue,” “estimate,” “expect,”
“will,” and “believe,” 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; risks related to
recent U.S. tariff announcements; 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;
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 STATEMENTS OF
INCOME
(Unaudited)
(In thousands, except per share
amounts)
Three Months Ended
December 27,
2024
December 29,
2023
Revenue
$
683,780
$
717,923
Operating Expenses:
Cost of services provided (exclusive of
depreciation and amortization)
495,260
502,381
Depreciation and amortization
36,936
35,362
Selling, general and administrative
expenses
121,185
132,582
Total Operating Expenses
653,381
670,325
Operating Income
30,399
47,598
Interest Expense, net
23,097
31,531
Other Expense (Income), net
5,762
(756
)
Income Before Income Taxes
1,540
16,823
Provision for Income Taxes
708
4,557
Net Income
$
832
$
12,266
Earnings per share:
Basic
$
0.01
$
0.09
Diluted
$
0.01
$
0.09
Weighted Average Shares Outstanding:
Basic
131,590
131,390
Diluted
132,115
131,735
VESTIS CORPORATION
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In thousands, except per share
amounts)
December 27,
2024
September 27,
2024
ASSETS
Current Assets:
Cash and cash equivalents
$
18,564
$
31,010
Receivables (net of allowances: $19,888
and $19,804)
187,242
177,271
Inventories, net
170,028
164,913
Rental merchandise in service, net
395,200
396,094
Other current assets
38,555
18,101
Total current assets
809,589
787,389
Property and Equipment, at cost:
Land, buildings and improvements
580,173
590,972
Equipment
1,151,814
1,168,142
1,731,987
1,759,114
Less - Accumulated depreciation
(1,073,922
)
(1,088,256
)
Total property and equipment, net
658,064
670,858
Goodwill
959,620
963,844
Other Intangible Assets, net
208,690
212,773
Operating Lease Right-of-use Assets
71,078
73,530
Other Assets
190,112
223,993
Total Assets
$
2,897,153
$
2,932,387
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term
borrowings
$
—
$
—
Current maturities of financing lease
obligations
32,383
31,347
Current operating lease liabilities
19,535
19,886
Accounts payable
164,924
163,054
Accrued payroll and related expenses
86,636
96,768
Accrued expenses and other current
liabilities
145,218
145,047
Total current liabilities
448,696
456,102
Long-Term Borrowings
1,128,444
1,147,733
Noncurrent Financing Lease Obligations
117,827
115,325
Noncurrent Operating Lease Liabilities
63,770
66,111
Deferred Income Taxes
186,689
191,465
Other Noncurrent Liabilities
52,137
52,600
Total Liabilities
1,997,563
2,029,336
Commitments and Contingencies
Equity:
Common stock, par value $0.01 per share,
350,000,000 authorized, 131,700,887 and 131,481,967 issued and
outstanding as of December 27, 2024 and September 27, 2024
,respectively.
1,317
1,315
Additional paid-in capital
931,554
928,082
(Accumulated deficit) retained
earnings
(1,213
)
2,565
Accumulated other comprehensive loss
(32,068
)
(28,911
)
Total Equity
899,590
903,051
Total Liabilities and Equity
$
2,897,153
$
2,932,387
VESTIS CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Three months ended
December 27,
2024
December 29,
2023
Net cash provided by operating
activities
$
3,780
$
51,505
Cash flows from investing activities:
Purchases of property and equipment and
other
(14,732
)
(16,949
)
Proceeds from disposals of property and
equipment
344
—
Proceeds from sale of equity
investment
36,792
—
Other investing activities
(4,550
)
—
Net cash provided by (used in) investing
activities
17,854
(16,949
)
Cash flows from financing activities:
Payments of long-term borrowings
(20,000
)
(8,750
)
Payments of financing lease
obligations
(8,303
)
(7,612
)
Net cash distributions to Parent
—
(3,573
)
Dividend payments
(4,601
)
—
Other financing activities
(1,706
)
(1,710
)
Net cash used in financing activities
(34,610
)
(21,645
)
Effect of foreign exchange rates on cash
and cash equivalents
530
(105
)
(Decrease) increase in cash and cash
equivalents
(12,446
)
12,806
Cash and cash equivalents, beginning of
period
31,010
36,051
Cash and cash equivalents, end of
period
$
18,564
$
48,857
Non-GAAP Definitions
This release could include certain non-GAAP financial measures,
such as Adjusted Revenue Growth (Organic), Adjusted Revenue
(Organic), 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 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
December 27,
December 29,
December 27,
December 29,
December 27,
December 29,
December 27,
December 29,
2024
2023
2024
2023
2024
2023
2024
2023
Revenue (as reported)
$
621.7
$
653.2
$
62.1
$
64.7
$
683.8
$
717.9
Effect of Currency Translation on Current
Year Revenue
—
—
1.6
—
1.6
—
Adjusted Revenue (Organic)
$
621.7
$
653.2
$
63.7
$
64.7
$
685.4
$
717.9
Revenue Growth (as reported)
(4.8
)%
2.4
%
(4.0
)%
2.7
%
(4.7
)%
2.5
%
Adjusted Revenue Growth (Organic)
(4.8
)%
2.4
%
(1.6
)%
3.0
%
(4.5
)%
2.5
%
Operating Income (as reported)
$
58.0
$
74.1
$
1.9
$
4.6
$
(29.5
)
$
(31.1
)
$
30.4
$
47.6
Amortization Expense
6.7
6.4
0.1
0.1
—
—
6.8
6.5
Share-Based Compensation
—
—
—
—
5.2
4.7
5.2
4.7
Severance and Other Charges
4.0
0.4
0.4
—
—
—
4.4
0.4
Separation Related Charges
—
—
—
—
4.6
9.0
4.6
9.0
Management Fee(1)
(4.9
)
(1.9
)
4.9
1.9
—
—
—
—
Gain, Losses, and Settlements
(0.4
)
1.3
—
—
—
—
(0.4
)
1.3
Total Operating Income Adjustments
$
5.4
$
6.2
$
5.4
$
2.0
$
9.8
$
13.7
$
20.6
$
21.9
Adjusted Operating Income (Non-GAAP)
$
63.4
$
80.3
$
7.3
$
6.6
$
(19.7
)
$
(17.4
)
$
51.0
$
69.5
Depreciation Expense
27.2
26.0
2.6
2.8
0.4
0.1
30.2
28.9
Adjusted EBITDA (Non-GAAP)
$
90.6
$
106.3
$
9.9
$
9.4
$
(19.3
)
$
(17.3
)
$
81.2
$
98.4
Operating Income Margin (as reported)
9.3
%
11.3
%
3.1
%
7.1
%
4.4
%
6.6
%
Adjusted Operating Income Margin
(Non-GAAP)
10.2
%
12.3
%
11.8
%
10.2
%
7.5
%
9.7
%
Adjusted EBITDA Margin (Non-GAAP)
14.6
%
16.3
%
15.9
%
14.5
%
11.9
%
13.7
%
Net Income (as reported)
$
0.8
$
12.3
Operating Income Adjustments (Above)
20.6
21.9
Loss on Sale of Equity Investment
2.2
—
Tax Impact of Operating Income Adjustments
and Loss on Sale
(5.5
)
(5.6
)
Adjusted Net Income (Non-GAAP)
$
18.1
$
28.6
Basic weighted-average shares outstanding
(millions)
131.6
131.4
Diluted weighted-average shares
outstanding (millions)
132.1
131.7
Basic Earnings Per Share
$
0.01
$
0.09
Diluted Earnings Per Share
$
0.01
$
0.09
Adjusted Basic Earnings Per Share
$
0.14
$
0.22
Adjusted Diluted Earnings Per Share
$
0.14
$
0.22
(1) For the three months ended December
27, 2024, the intercompany management fee also includes sourcing
support and an allocation of Corporate costs for functional support
of the Canadian operations of $3.5 million.
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
December 27,
September 27,
December 27,
September 27,
December 27,
September 27
December 27,
September 27,
2024
2024
2024
2024
2024
2024
2024
2024
Revenue (as reported)
$
621.7
$
623.8
$
62.1
$
60.5
$
683.8
$
684.3
Effect of Currency Translation on Current
Year Revenue
—
—
1.5
—
1.5
—
Adjusted Revenue (Organic)
$
621.7
$
623.8
$
63.6
$
60.5
$
685.3
$
684.3
Revenue Growth (as reported)
(0.3
)%
2.6
%
(0.1
)%
Adjusted Revenue Growth (Organic)
(0.3
)%
5.1
%
0.1
%
Operating Income (as reported)
$
58.0
$
54.9
$
1.9
$
1.4
$
(29.5
)
$
(26.5
)
$
30.4
$
29.8
Amortization Expense
6.7
6.4
0.1
—
—
—
6.8
6.4
Share-Based Compensation
—
—
—
—
5.2
3.0
5.2
3.0
Severance and Other Charges
4.0
3.6
0.4
0.1
—
—
4.4
3.7
Separation Related Charges
—
—
—
—
4.6
4.2
4.6
4.2
Management Fee(1)
(4.9
)
1.2
4.9
(1.2
)
—
—
—
—
Gain, Losses, and Settlements
(0.4
)
3.5
—
—
—
1.1
(0.4
)
4.6
Total Operating Income Adjustments
$
5.4
$
14.7
$
5.4
$
(1.1
)
$
9.8
$
8.3
$
20.6
$
21.9
Adjusted Operating Income (Non-GAAP)
$
63.4
$
69.6
$
7.3
$
0.3
$
(19.7
)
$
(18.2
)
$
51.0
$
51.7
Depreciation Expense
27.2
26.0
2.6
2.7
0.4
0.1
30.2
28.8
Adjusted EBITDA (Non-GAAP)
$
90.6
$
95.6
$
9.9
$
3.0
$
(19.3
)
$
(18.1
)
$
81.2
$
80.5
Operating Income Growth (as reported)
5.6
%
35.7
%
2.0
%
Operating Income Margin (as reported)
9.3
%
8.8
%
3.1
%
2.3
%
4.4
%
4.4
%
Adjusted Operating Income Margin
(Non-GAAP)
10.2
%
11.2
%
11.8
%
0.5
%
7.5
%
7.6
%
Adjusted EBITDA Growth (Non-GAAP)
(5.2
)%
230.0
%
0.9
%
Adjusted EBITDA Margin (Non-GAAP)
14.6
%
15.3
%
15.9
%
5.0
%
11.9
%
11.8
%
Net Income (as reported)
$
0.8
$
(2.3
)
Operating Income Adjustments (Above)
20.6
21.9
Loss on Sale of Equity Investment
2.2
—
Tax Impact of Operating Income Adjustments
and Loss on Sale
(5.5
)
(5.1
)
Adjusted Net Income (Non-GAAP)
$
18.1
$
14.5
Basic weighted-average shares outstanding
(millions)
131.6
131.6
Diluted weighted-average shares
outstanding (millions)
132.1
131.6
Basic Earnings Per Share
$
0.01
$
(0.02
)
Diluted Earnings Per Share
$
0.01
$
(0.02
)
Adjusted Basic Earnings Per Share
$
0.14
$
0.11
Adjusted Diluted Earnings Per Share
$
0.14
$
0.11
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
(In millions)
Operating Income for the fiscal year ended
September 27, 2024 (as reported in the Company's Form 10-K)
$
158.0
Amortization Expense
25.9
Share-Based Compensation
16.3
Severance and Other Charges
4.4
Separation Related Charges
22.7
Gain, Losses, and Settlements
10.8
Depreciation Expense
114.8
Trailing Twelve Months Adjusted EBITDA for
the period ended September 27, 2024 (Non-GAAP)
$
352.9
Less Adjusted EBITDA (Non-GAAP) for the
quarter ended December 29, 2023
(98.4
)
Plus Adjusted EBITDA (Non-GAAP) for the
quarter ended December 27, 2024
81.2
Trailing Twelve Months Adjusted EBITDA for
the period ended December 27, 2024 (Non-GAAP)
$
335.7
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
FREE CASH FLOW, NET DEBT, AND
NET LEVERAGE
(In millions)
Three Months Ended
December 27, 2024
December 29, 2023
Net cash provided by operating
activities
$
3.8
$
51.5
Purchases of property and equipment and
other
(14.7
)
(16.9
)
Disposals of property and equipment
0.3
—
Free Cash Flow (Non-GAAP)
$
(10.6
)
$
34.6
As of
December 27, 2024
September 27, 2024
Total principal debt outstanding
$
1,142.5
$
1,162.5
Finance lease obligations
150.2
146.7
Less: Cash and cash equivalents
(18.6
)
(31.0
)
Net Debt (Non-GAAP)
$
1,274.1
$
1,278.2
Net Leverage (Non-GAAP)
3.80
3.62
Twelve months ended
December 27, 2024
September 27, 2024
Trailing Twelve Months Adjusted EBITDA
(Non-GAAP)
$
335.7
$
352.9
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250131336209/en/
Investors Michael Aurelio, CFA 470-571-3154
michael.aurelio@vestis.com
Media Danielle Holcomb 470-716-0917
danielle.holcomb@vestis.com
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