Financial Performance - Vestis generated revenue of approximately 158.0 million (5.6% of revenue) and net income of 12 million, with $1,163 million aggregate principal amount outstanding as of September 27, 2024[342] Customer Base and Market Presence - Vestis serves over 300,000 customer locations across the United States and Canada, with its top 10 customers accounting for less than 15% of total revenue[41] - The company serves over 95% of the largest metropolitan statistical areas in the United States and every province in Canada, enabling it to serve large, national customers[59] - The company delivers to over 300,000 customer locations and maintains long-term relationships with customers due to the quality of its services and products[60] - The company's customer base includes small family-owned operations and large corporations, with most customers served under multi-year contracts[44] Operations and Facilities - The company operates over 350 sites, including laundry plants, distribution centers, and manufacturing plants, supported by approximately 19,600 employees[31] - The company operates a network of over 350 facilities, including laundry plants, satellite plants, distribution centers, and manufacturing plants, supported by a fleet of service vehicles covering over 3,300 pick-up and delivery routes[53] - Approximately 60% of the company's uniforms and linens are manufactured in its two manufacturing plants in Mexico, which include 189,000 square feet of manufacturing capacity and a 107,000 square foot distribution facility[53] Leadership and Governance - The company's leadership team includes experienced executives recruited to lead Vestis as an independent, publicly traded company[32] - The company's Board of Directors is 60% from underrepresented groups, including 50% females, as of September 27, 2024[82] - The company's Board of Directors oversees ESG goals and objectives, supporting the implementation of ESG priorities and commitments[97] Products and Services - Vestis provides uniforms, workplace supplies, and contamination control products for industries such as manufacturing, healthcare, and food processing[30][42] Competition - Vestis faces competition from national, regional, and local providers, including Cintas Corporation and UniFirst Corporation[39] Growth Strategy - The company's strategy focuses on increasing revenue per stop through cross-selling, with current customers utilizing 30% to 40% of its full line of services and products[71] - The company is implementing targeted sales strategies to drive growth across high-value sectors, services, and products using enhanced data analytics[72] Cost Management - The company is focused on reducing operating costs through network optimization, workforce management, and merchandise inventory management[76][77][78] Sustainability and Environmental Initiatives - The company is committed to sustainability, minimizing fuel usage on routes, and reducing energy and water usage in laundry plant facilities[54] - The company has enhanced wash chemistry to conserve electricity, natural gas, and water, reducing washing machine run times, water temperatures, and rinse cycles[95] - The company uses telematics technology to reduce fuel usage by limiting idling through real-time, in-cab driver alerts[96] - The company does not anticipate any material expenditures for environmental remediation as of September 27, 2024[92] - The company actively manages sites requiring environmental remediation and monitoring in conjunction with regulators and partners[90] - The company invests in equipment, technology, and operating expenses for water treatment and waste removal to comply with environmental laws and regulations[92] Risk Management - The company is exposed to commodity price risks, primarily related to gasoline, diesel, and natural gas, but had no outstanding derivative arrangements as of September 27, 2024[344] Compliance and Ethics - The company's international private label garment manufacturers undergo annual third-party social compliance audits to ensure compliance with the Vendor Code of Conduct[94] Spin-off and Public Listing - The company completed its spin-off from Aramark on September 30, 2023, and began trading on the NYSE under the ticker symbol "VSTS" on October 2, 2023[33] Workforce - The company has approximately 19,600 employees, with 10,800 represented by labor unions as of September 27, 2024[81]
Vestis (VSTS) - 2024 Q4 - Annual Report