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ATLANTA - Vestis Corporation (NYSE: VSTS), a prominent supplier of uniforms and workplace essentials, disclosed its financial results for the first quarter ending December 27, 2024. The company reported a revenue of $684 million and an operating income of $30 million, marking a 2% sequential increase compared to the fourth quarter of 2024. The operating margin remained consistent at 4.4%. According to InvestingPro data, the company maintains a GOOD financial health score of 2.67, suggesting stable operational performance despite challenging market conditions.
Adjusted EBITDA for the quarter reached $81 million, a slight increase of 0.9% from the previous quarter, with the adjusted EBITDA margin seeing a marginal improvement. In a strategic move to strengthen its balance sheet, Vestis voluntarily prepaid $20 million of its term loan debt.
The company’s net cash from operating activities was reported at $3.8 million, a notable decrease from the $51.5 million observed in the corresponding period of the previous fiscal year. This decline was attributed to a temporary shift in accounts receivable collections, which has since been resolved.
The Board of Directors announced a dividend of $0.035 per common share, scheduled for payment on March 18, 2025, to shareholders recorded by February 21, 2025. InvestingPro analysis reveals that Vestis has maintained dividend payments for 15 consecutive years and has raised its dividend for 3 consecutive years. Subscribers can access 3 additional dividend-related insights on the platform.
With a current market capitalization of $723.38 million and a P/E ratio of 5.85, Vestis confirmed its revenue forecast for fiscal 2025 to be within $2.8 billion to $2.83 billion and adjusted EBITDA to range from $345 million to $360 million. For comprehensive valuation metrics and growth potential analysis, investors can access detailed reports on InvestingPro. The company emphasized its commitment to disciplined capital allocation and debt reduction, projecting strong free cash flow conversion and an anticipated free cash flow to adjusted EBITDA ratio of approximately 50%.
In executive news, Vestis announced the departure of CFO Rick Dillon, who played a key role in the company’s financial structuring since 2022. Kelly Janzen will assume the CFO position on February 14, 2025, bringing over two decades of financial leadership experience. Concurrently, the company will welcome Andre "Butch" Bouchard as the new Chief Legal Officer on the same date, succeeding the retiring Tim Donovan.
These announcements are based on a press release statement and do not include speculative information or subjective assessments. The reported financial figures are in accordance with generally accepted accounting principles (GAAP), except where noted as adjusted EBITDA, a non-GAAP financial measure. The company’s forward-looking statements are based on current expectations and may differ materially from actual results.
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