Vestis Corporation (NYSE:VSTS) Q3 2024 Earnings Conference Call August 7, 2024 10:00 AM ET Company Participants Michael Aurelio - IR Kimberly T. Scott – President and CEO Ricky T. Dillon – EVP and CFO Conference Call Participants Andrew Wittmann - Robert W. Baird Andrew Steinerman - J.P. Morgan Shlomo Rosenbaum - Stifel, Nicolaus & Company Stephanie Moore - Jefferies Ronan Kennedy - Barclays Bank Timothy Mulrooney - William Blair George Tong - Goldman Sachs Oliver Davies - Redburn Limited Operator Welcome t ...

Uniforms and Workplace Supplies ... Third Quarter 2024 Results August 7, 2024 Forward Looking Statements This presentation 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, statements relating to future operations and financial performance and statements regarding our strategy for gro ...

Financial Performance - Revenue for the three months ended June 28, 2024, was $698,248, a decrease of 1.6% from $709,384 for the same period in 2023[12]. - Operating income for the nine months ended June 28, 2024, was $128,175, down 20% from $160,134 for the same period in 2023[12]. - Net income for the nine months ended June 28, 2024, was $23,268, a decline of 80.5% compared to $119,186 for the same period in 2023[15]. - Net income for the quarter ending June 28, 2024, was $5.037 million, reflecting a decrease from the previous quarter[19]. - Net income for the three months ended June 28, 2024, was $5.0 million, representing a decrease of $43.8 million or 89.7% compared to $48.9 million for the same period in 2023[117]. - For the nine months ended June 28, 2024, revenue increased by $12.2 million or 0.6% to $2.12 billion, compared to $2.11 billion for the same period in 2023[119]. - The total revenue for the Company for the nine months ended June 28, 2024, was $2.12 billion, slightly up from $2.11 billion for the same period in 2023, an increase of 0.1%[79]. Assets and Liabilities - Total current assets remained stable at $1,019,957 as of June 28, 2024, compared to $1,019,965 on September 29, 2023[11]. - Total liabilities decreased to $2,244,453 as of June 28, 2024, from $2,279,764 on September 29, 2023[11]. - Cash and cash equivalents decreased to $29,098 as of June 28, 2024, from $36,051 at the beginning of the period[18]. - The Company’s total equity increased to $901,177 as of June 28, 2024, from $877,360 on September 29, 2023[11]. - The total principal debt issued by the Company as of June 28, 2024, was $1.42 billion, a decrease from $1.5 billion as of September 29, 2023[45]. - As of June 28, 2024, the company had approximately $29.1 million in cash and cash equivalents and $294.7 million available for borrowing under its Revolving Credit Facility[142]. Operating Expenses - Operating expenses for the three months ended June 28, 2024, totaled $660,725, an increase of 2.8% from $643,017 for the same period in 2023[12]. - The company incurred interest expenses of $29,386 for the three months ended June 28, 2024, compared to $83 for the same period in 2023[12]. - The Company recorded severance charges of $1.0 million and $1.4 million for the three and nine months ended June 28, 2024, respectively[42]. - Selling, general and administrative expenses rose by $17.9 million or 4.9% for the nine months ended June 28, 2024, largely due to incremental public company costs[121]. Segment Performance - Total revenue for the United States segment was $636.8 million for the three months ended June 28, 2024, compared to $646.4 million for the same period in 2023, reflecting a decrease of 1.8%[79]. - Total revenue for the Canada segment was $61.4 million for the three months ended June 28, 2024, down from $63.0 million in the same period of 2023, a decrease of 2.5%[79]. - United States segment operating income for the three months ended June 28, 2024, was $64.5 million, down $19.6 million or 23.3% compared to the same period in 2023[126]. - Canada segment operating income for the three months ended June 28, 2024, was $1.3 million, down $2.0 million or 60.6% compared to the same period in 2023[134]. Cash Flow - Net cash provided by operating activities increased to $176.2 million for the nine months ended June 28, 2024, compared to $143.9 million for the same period in 2023, driven by a change in cash from operating assets and liabilities of $135.1 million[145]. - Cash used in financing activities included payments of long-term borrowings totaling $879.5 million and proceeds from long-term borrowings of $798.0 million during the nine months ended June 28, 2024[147]. Dividends and Shareholder Returns - The company declared dividends of $0.035 per common share, totaling $4.603 million for the quarter ending June 28, 2024[19]. - The company declared a quarterly cash dividend of $0.035 per common share, amounting to $4.6 million, payable on July 2, 2024[97]. Legal and Compliance - The Company has provided for a settlement of $3.1 million related to a class action lawsuit, which has been fully accounted for in the financial statements[72]. - A putative class action lawsuit was filed against the company alleging false or misleading statements related to its business and operations, seeking unspecified damages[167]. Accounting and Standards - The Company adopted new accounting standards effective in the first quarter of fiscal 2024, which did not impact the Consolidated Financial Statements[30][31]. - The Company is currently evaluating the impact of new accounting standards issued in December 2023 and November 2023 on its disclosures[32][33]. Miscellaneous - The company completed a spin-off from Aramark on September 30, 2023, issuing approximately 131.2 million shares of common stock[24]. - The company began trading as an independent, publicly traded company under the stock symbol "VSTS" on October 2, 2023, following its separation from Aramark[89]. - The company received three federal trademark registrations for its "Vestis" trademarks and associated logos on April 30, 2024[165].

EXECUTION VERSION RECEIVABLES PURCHASE AGREEMENT Dated as of August 2, 2024 by and among VS FINANCING, LLC, as Seller, THE PERSONS FROM TIME TO TIME PARTY HERETO, as Purchasers, PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent, VESTIS SERVICES, LLC, as Servicer, and PNC CAPITAL MARKETS LLC, as Structuring Agent 127256974\V-8 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS 1 SECTION 1.01 Certain Defined Terms 1 SECTION 1.02 Construction 36 SECTION 1.03 Accounting Principles; Changes in GAAP 37 SECTION 1. ...

Based in Roswell, Georgia, Vestis is a provider of uniforms and workplace supplies in the United States and Canada. The Company was created as the result of its September 30, 2023 spinoff from food services and facilities management provider Aramark. Vestis began trading on the New York Stock Exchange on October 2, 2023, the first day of the Class Period, under the ticker symbol "VSTS." If you are a long-term stockholder of Vestis, have information, would like to learn more about these claims, or have any q ...

Shareholders who purchased shares of VSTS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/vestis-loss-submission-form/?id=90497&from=3 CLASS PERIOD: October 2, 2023 to May 1, 2024 NEW YORK, July 15, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Vestis Corporation (NYSE ...

Shareholders who purchased shares of VSTS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. NEW YORK, July 12, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Vestis Corporation (NYSE: VSTS). CONTACT US HERE: https://securitiesclasslaw.com/securities/vestis-loss-submission-form/?id=90349&from=4 CLASS PERIOD: October 2, 2023 to May 1, ...

WHY LEVI & KORSINSKY: Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United ...

NEW YORK, July 09, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Vestis Corporation (NYSE: VSTS). CLASS PERIOD: October 2, 2023 to May 1, 2024 NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of VSTS during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is July 16, 2024. There ...

Investors can contact the law firm at no cost to learn more about recovering their losses. Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors' options for pursuing claims to recover their losses. Please visit our website to review more information and submit your transac ...