Vestis (VSTS) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended June 28, 2024, was $698,248, a decrease of 1.6$709,384 for the same period in 2023[12]. - Operating income for the nine months ended June 28, 2024, was $128,175, down 20$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$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$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$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$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].