Provides Fiscal 2025 Guidance
Fiscal 2024 Results
- Revenue of $2.8 billion
- Operating Income of $158 million or 5.6% of revenue
- Adjusted EBITDA of $353 million or 12.6% of revenue
- Operating Cash Flow of $472 million, up 83.6%
year-over-year
- Free Cash Flow of $165 million, up 13.2% year-over-year
- Net leverage was 3.62x at the end of fiscal 2024 versus 3.95x
at the end of fiscal 2023
- Net debt was $1.3 billion at the end of fiscal 2024, a decline
of $319 million versus the end of fiscal 2023
Vestis Corporation (NYSE: VSTS), a leading
provider of uniforms and workplace supplies, today announced its
results for the fourth quarter and fiscal year ended September 27,
2024. The company also provided its outlook for fiscal year
2025.
Management Commentary
“We ended the year with solid fourth quarter results that were
in-line with our expectations for revenue and ahead of our
expectations for Adjusted EBITDA,” said Kim Scott, President and
CEO.
“As we move into 2025, I am excited about the commercial
momentum that is building across Vestis, the progress we are making
executing against our efficient operations initiatives, and the way
our organization has embraced our mission to deliver a
best-in-class customer experience. As a result, we expect both
revenue and Adjusted EBITDA to grow on an underlying basis in
Fiscal 2025 as we continue to deliver against our strategic
priorities.”
Fiscal Year 2024 Financial Summary
This press release contains non-GAAP financial measures.
Reconciliations of non-GAAP financial measures to the comparable
GAAP measures are presented in the tables accompanying this
release.
($ in millions)
Consolidated
Fiscal Year Ended
September 27, 2024
September 29, 2023
Change
Revenue
$
2,805.8
$
2,825.3
(0.7
)%
Operating Income
158.0
217.9
(27.5
)%
Adjusted Operating Income
238.1
293.7
(18.9
)%
Net Income
21.0
213.2
(90.2
)%
Adjusted EBITDA
352.9
404.0
(12.6
)%
Adjusted EBITDA Margin
12.6
%
14.3
%
(170 bps)
Vestis’ fiscal 2024 revenue decreased 0.7% versus fiscal 2023.
Excluding the impact of foreign currency, Vestis’ revenue decreased
0.6%.
Fiscal 2024 adjusted EBITDA margin declined by 170 basis points,
which included an approximately 65 basis point impact from higher
public company costs as compared to the prior year. The net effect
of lower volumes, higher net energy costs (net of the elimination
of the prior year temporary energy fee), and higher public company
costs outweighed the favorable impact of pricing compared to the
prior year.
Fourth Quarter 2024 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.
($ in millions)
Consolidated
Three Months Ended
September 27, 2024
September 29, 2023
Change
Revenue
$
684.3
$
715.9
(4.4
)%
Operating Income
29.8
57.8
(48.4
)%
Adjusted Operating Income
51.7
84.5
(38.8
)%
Net (Loss) Income
(2.3
)
94.0
(102.5
)%
Adjusted EBITDA
80.5
112.8
(28.6
)%
Adjusted EBITDA Margin
11.8
%
15.8
%
(400 bps)
Vestis’ fourth quarter fiscal 2024 revenue decreased 4.4% versus
the fourth quarter of fiscal 2023. Excluding the impact of foreign
currency, Vestis’ revenue decreased 4.3%.
Fourth quarter fiscal 2024 adjusted EBITDA margin declined by
400 basis points, which included an approximately 75 basis point
impact from higher public company costs as compared to the prior
year. The margin decline was primarily attributable to lower net
volumes and lower pricing from the erosion of price increases that
favorably impacted the fourth quarter of fiscal 2023.
Balance Sheet and Cash Flow
Vestis’ net cash provided by operating activities of $471.8
million for fiscal year 2024 increased 83.6% relative to fiscal
year 2023. Free cash flow of $165.2 million for fiscal year 2024
decreased (13.2)% relative to fiscal year 2023.
As of September 27, 2024, total principal debt outstanding was
$1.16 billion, which represents a $337.5 million reduction in
fiscal 2024 of which $298.0 million was voluntarily prepaid at the
time of payment. Net leverage was 3.62x at the end of fiscal 2024
compared to 3.95x at the end of fiscal 2023.
Vestis Enters into $250 Million Accounts Receivable
Securitization Facility
On August 2, 2024, certain wholly-owned subsidiaries of Vestis
entered into a three-year $250 million accounts receivable
securitization facility (the “A/R Facility”). Under the A/R
Facility, these subsidiaries transfer accounts receivable and
certain related assets to VS Financing, LLC, a bankruptcy remote
special purpose entity formed as a wholly-owned subsidiary, who in
turn, may sell the receivables to a financial institution. The net
proceeds from the initial trade receivables sold under the A/R
Facility were used to repay a portion of the outstanding borrowings
under the existing term loans.
Declaration of Quarterly Dividend
The company’s Board of Directors declared a quarterly cash
dividend of $0.035 per common share payable on January 6, 2025 to
shareholders of record at the close of business on December 13,
2024.
Fiscal Year 2025 Outlook
The Company expects 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 anticipate a ratio
of free cash flow to Adjusted EBITDA of approximately 50%.
Forward Looking Non-GAAP Information
This release includes certain non-GAAP financial information
that is forward-looking in nature, including without limitation
adjusted EBITDA margin. 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 these 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 margin 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 fourth quarter
2024 results and outlook on Thursday, November 21, 2024 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 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
be,” “believe,” “opportunity,” 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; competition in our industry; increased operating
costs and obstacles to cost recovery due to the pricing and
cancellation terms of our support services contracts; our leverage;
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; 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 AND COMBINED
STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share
amounts)
Three Months Ended
Fiscal Year Ended
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
Revenue
$
684,281
$
715,901
$
2,805,820
$
2,825,286
Operating Expenses:
Cost of services provided (exclusive of
depreciation and amortization)
487,315
490,072
1,989,872
1,970,215
Depreciation and amortization
35,281
34,792
140,781
136,504
Selling, general and administrative
expenses
131,909
133,262
517,216
500,658
Total Operating Expenses
654,505
658,126
2,647,869
2,607,377
Operating Income
29,776
57,775
157,951
217,909
Gain on Sale of Equity Investment, net
—
(51,831
)
—
(51,831
)
Interest Expense, net
29,848
786
126,563
2,109
Other Expense (Income), net
1,199
(508
)
(642
)
(2,099
)
(Loss) Income Before Income Taxes
(1,271
)
109,328
32,030
269,730
Provision for Income Taxes
1,027
15,356
11,060
56,572
Net (Loss) Income
$
(2,298
)
$
93,972
$
20,970
$
213,158
Earnings per share:
Basic
$
(0.02
)
$
0.72
$
0.16
$
1.63
Diluted
$
(0.02
)
$
0.72
$
0.16
$
1.63
Weighted Average Shares
Outstanding(1):
Basic
131,566
130,725
131,506
130,725
Diluted
131,566
130,725
131,787
130,725
__________________
(1) During the fourth quarter and fiscal
year ended September 29, 2023, Vestis was not a publicly traded
company, and therefore, did not have available or issued shares of
common stock outstanding. In accordance with United States
Generally Accepted Accounting Principles, the Company elected to
use the number of shares of common stock distributed to
shareholders of Aramark upon the separation of Vestis from Aramark
as the weighted average shares outstanding to calculate earnings
per share on the combined results during the fourth quarter and
fiscal year ended September 29, 2023.
VESTIS CORPORATION
CONSOLIDATED AND COMBINED
BALANCE SHEETS
(Unaudited)
(In thousands, except per share
amounts)
September 27, 2024
September 29, 2023
ASSETS
Current Assets:
Cash and cash equivalents
$
31,010
$
36,051
Receivables (net of allowances: $19,804
and $25,066)
177,271
392,916
Inventories, net
164,913
174,719
Rental merchandise in service, net
396,094
399,035
Other current assets
18,101
17,244
Total current assets
787,389
1,019,965
Property and Equipment, at cost:
Land, buildings and improvements
590,972
585,797
Equipment
1,168,142
1,110,812
1,759,114
1,696,609
Less - Accumulated depreciation
(1,088,256
)
(1,032,078
)
Total property and equipment, net
670,858
664,531
Goodwill
963,844
963,543
Other Intangible Assets, net
212,773
238,608
Operating Lease Right-of-use Assets
73,530
57,890
Other Assets
223,993
212,587
Total Assets
$
2,932,387
$
3,157,124
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term
borrowings
$
—
$
26,250
Current maturities of financing lease
obligations
31,347
27,659
Current operating lease liabilities
19,886
19,935
Accounts payable
163,054
134,498
Accrued payroll and related expenses
96,768
113,771
Accrued expenses and other current
liabilities
145,047
73,412
Total current liabilities
456,102
395,525
Long-Term Borrowings
1,147,733
1,462,693
Noncurrent Financing Lease Obligations
115,325
105,217
Noncurrent Operating Lease Liabilities
66,111
46,084
Deferred Income Taxes
191,465
217,647
Other Noncurrent Liabilities
52,600
52,598
Total Liabilities
2,029,336
2,279,764
Equity:
Common stock, par value $0.01 per share,
350,000,000 shares authorized, 131,481,967 shares issued and
outstanding as of September 27, 2024
1,315
—
Additional paid-in capital
928,082
—
Retained earnings
2,565
—
Net parent investment
—
908,533
Accumulated other comprehensive loss
(28,911
)
(31,173
)
Total Equity
903,051
877,360
Total Liabilities and Equity
$
2,932,387
$
3,157,124
VESTIS CORPORATION
CONDENSED CONSOLIDATED AND
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Fiscal Year Ended
September 27,
2024
September 29,
2023
Net cash provided by operating
activities
$
471,788
$
256,977
Cash flows from investing activities:
Purchases of property and equipment and
other
(78,905
)
(77,870
)
Proceeds from disposals of property and
equipment
5,269
11,180
Proceeds from sale of equity
investment
—
51,869
Other investing activities
—
75
Net cash used in investing activities
(73,636
)
(14,746
)
Cash flows from financing activities:
Proceeds from long-term borrowings
798,000
1,500,000
Payments of long-term borrowings
(1,137,500
)
—
Payments of financing lease
obligations
(30,608
)
(27,601
)
Dividend payments
(13,801
)
—
Debt issuance costs
(11,134
)
(13,749
)
Other financing activities
(1,881
)
—
Net cash distributions to Parent
(6,051
)
(1,688,919
)
Net cash used in financing activities
(402,975
)
(230,269
)
Effect of foreign exchange rates on cash
and cash equivalents
(218
)
353
Increase (Decrease) in cash and cash
equivalents
(5,041
)
12,315
Cash and cash equivalents, beginning of
period
36,051
23,736
Cash and cash equivalents, end of
period
$
31,010
$
36,051
Non-GAAP Definitions
This release could include certain non-GAAP financial measures,
such as Adjusted Revenue Growth (Organic), Adjusted Revenue
(Organic), Adjusted Revenue Growth excluding Temporary Energy Fee,
Adjusted Revenue excluding Temporary Energy Fee, Adjusted Operating
Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted
EBITDA Margin, Free Cash Flow, Net Debt, Net Leverage and Free Cash
Flow to Adjusted EBITDA Ratio. 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 Revenue Growth excluding Temporary Energy
Fee
We define “adjusted revenue growth excluding temporary energy
fee” as the growth in revenues, excluding (i) acquisitions, (ii)
the impact of foreign currency exchange rate changes, (iii) the
impact of the 53rd week, when applicable and (iv) the impact of the
temporary energy fee, when applicable. We believe it is useful for
investors to understand growth through internal efforts.
Adjusted Revenue excluding Temporary Energy Fee
Adjusted Revenue excluding Temporary Energy Fee represents
revenue as determined in accordance with U.S. GAAP, adjusted to
exclude (i) acquisitions, (ii) the impact of foreign currency
exchange rate changes, (iii) the impact of the 53rd week, when
applicable, and (iv) the impact of the temporary energy fee, 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, and A/R Facility
Adjustment.
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 Adjusted EBITDA.
Free Cash Flow to Adjusted EBITDA Ratio
Free Cash flow to Adjusted EBITDA Ratio represents Free Cash
Flow as a percentage of Adjusted EBITDA.
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
September 27,
September 29,
September 27,
September 29,
September 27,
September 29,
September 27,
September 29,
2024
2023
2024
2023
2024
2023
2024
2023
Revenue (as reported)
$
623.8
$
654.3
$
60.5
$
61.6
$
684.3
$
715.9
Effect of Currency Translation on Current
Year Revenue
—
—
1.1
—
1.1
—
Adjusted Revenue (Organic)
$
623.8
$
654.3
$
61.6
$
61.6
$
685.4
$
715.9
Revenue Growth (as reported)
(4.7
)%
5.0
%
(1.8
)%
2.7
%
(4.4
)%
4.8
%
Adjusted Revenue Growth (Organic)
(4.7
)%
5.0
%
—
%
5.5
%
(4.3
)%
5.0
%
Operating Income (as reported)
$
54.9
$
87.7
$
1.4
$
3.5
$
(26.5
)
$
(33.4
)
$
29.8
$
57.8
Amortization Expense
6.4
6.4
—
0.1
—
—
6.4
6.5
Share-Based Compensation
—
—
—
—
3.0
2.9
3.0
2.9
Severance and Other Charges
3.6
0.2
0.1
—
—
—
3.7
0.2
Separation Related Charges
—
—
—
—
4.2
18.2
4.2
18.2
Management Fee
1.2
(1.8
)
(1.2
)
1.8
—
—
—
—
Gain, Losses, and Settlements
3.5
(1.1
)
—
—
1.1
—
4.6
(1.1
)
Total Operating Income Adjustments
$
14.7
$
3.7
$
(1.1
)
$
1.9
$
8.3
$
21.1
$
21.9
$
26.7
Adjusted Operating Income (Non-GAAP)
$
69.6
$
91.4
$
0.3
$
5.4
$
(18.2
)
$
(12.3
)
$
51.7
$
84.5
Depreciation Expense
26.0
25.3
2.7
2.9
0.1
0.1
28.8
28.3
Adjusted EBITDA (Non-GAAP)
$
95.6
$
116.7
$
3.0
$
8.3
$
(18.1
)
$
(12.2
)
$
80.5
$
112.8
Operating Income Margin (as reported)
8.8
%
13.4
%
2.3
%
5.7
%
4.4
%
8.1
%
Adjusted Operating Income Margin
(Non-GAAP)
11.2
%
14.0
%
0.5
%
8.8
%
7.6
%
11.8
%
Adjusted EBITDA Margin (Non-GAAP)
15.3
%
17.8
%
5.0
%
13.5
%
11.8
%
15.8
%
Net Income (as reported)
$
(2.3
)
$
94.0
Operating Income Adjustments (Above)
21.9
26.7
Tax Impact of Operating Income
Adjustments
(5.1
)
(6.9
)
Adjusted Net Income (Non-GAAP)
$
14.5
$
113.8
Basic weighted-average shares outstanding
(millions)
131.6
130.7
Diluted weighted-average shares
outstanding (millions)
131.6
130.7
Basic Earnings Per Share
$
(0.02
)
$
0.72
Diluted Earnings Per Share
$
(0.02
)
$
0.72
Adjusted Basic Earnings Per Share
$
0.11
$
0.87
Adjusted Diluted Earnings Per Share
$
0.11
$
0.87
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
(In millions)
United States
Canada
Corporate
Consolidated
Fiscal Year Ended
Fiscal Year Ended
Fiscal Year Ended
Fiscal Year Ended
September 27,
September 29,
September 27,
September 29,
September 27,
September 29,
September 27,
September 29,
2024
2023
2024
2023
2024
2023
2024
2023
Revenue (as reported)
$
2,555.9
$
2,575.4
$
249.9
$
249.9
$
2,805.8
$
2,825.3
Effect of Currency Translation on Current
Year Revenue
—
—
2.4
—
2.4
—
Adjusted Revenue (Organic)
$
2,555.9
$
2,575.4
$
252.3
$
249.9
$
2,808.2
$
2,825.3
Temporary Energy Fee
—
26.7
—
—
—
26.7
Adjusted Revenue excluding Temporary
Energy Fee
$
2,555.9
$
2,548.7
$
252.3
$
249.9
$
2,808.2
$
2,798.6
Revenue Growth (as reported)
(0.8
)%
5.2
%
—
%
4.1
%
(0.7
)%
5.1
%
Adjusted Revenue Growth (Organic)
(0.8
)%
5.2
%
1.0
%
10.1
%
(0.6
)%
5.7
%
Adjusted Revenue Growth excluding
Temporary Energy Fee
0.3
%
4.2
%
1.0
%
10.1
%
0.3
%
4.7
%
Operating Income (as reported)
$
264.7
$
303.8
$
8.2
$
13.7
$
(114.9
)
$
(99.6
)
$
158.0
$
217.9
Amortization Expense
25.6
25.7
0.3
0.4
—
—
25.9
26.1
Share-Based Compensation
—
—
—
—
16.3
14.5
16.3
14.5
Severance and Other Charges
4.1
5.1
0.3
(0.2
)
—
—
4.4
4.9
Separation Related Charges
—
—
—
—
22.7
31.1
22.7
31.1
Management Fee
(4.6
)
(7.5
)
4.6
7.5
—
—
—
—
Gain, Losses, and Settlements
9.7
(8.5
)
—
—
1.1
7.7
10.8
(0.8
)
Total Operating Income Adjustments
$
34.8
$
14.8
$
5.2
$
7.7
$
40.1
$
53.3
$
80.1
$
75.8
Adjusted Operating Income (Non-GAAP)
$
299.5
$
318.6
$
13.4
$
21.4
$
(74.8
)
$
(46.3
)
$
238.1
$
293.7
Depreciation Expense
103.6
99.5
11.0
10.4
0.2
0.4
114.8
110.3
Adjusted EBITDA (Non-GAAP)
$
403.1
$
418.1
$
24.4
$
31.8
$
(74.6
)
$
(45.9
)
$
352.9
$
404.0
Operating Income Margin (as reported)
10.4
%
11.8
%
3.3
%
5.5
%
5.6
%
7.7
%
Adjusted Operating Income Margin
(Non-GAAP)
11.7
%
12.4
%
5.4
%
8.6
%
8.5
%
10.4
%
Adjusted EBITDA Margin (Non-GAAP)
15.8
%
16.2
%
9.8
%
12.7
%
12.6
%
14.3
%
Net Income (as reported)
$
21.0
$
213.2
Operating Income Adjustments (Above)
80.1
75.8
Tax Impact of Operating Income
Adjustments
(18.9
)
(19.4
)
Adjusted Net Income (Non-GAAP)
$
82.2
$
269.6
Basic weighted-average shares outstanding
(millions)
131.5
130.7
Diluted weighted-average shares
outstanding (millions)
131.8
130.7
Basic Earnings Per Share
$
0.16
$
1.63
Diluted Earnings Per Share
$
0.16
$
1.63
Adjusted Basic Earnings Per Share
$
0.63
$
2.06
Adjusted Diluted Earnings Per Share
$
0.62
$
2.06
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP
MEASURES
FREE CASH FLOW, FREE CASH FLOW
TO ADJUSTED EBITDA RATIO, NET DEBT, AND NET LEVERAGE
(In millions)
Fiscal Year Ended
September 27, 2024
September 29, 2023
Net cash provided by operating
activities
$
471.8
$
257.0
Purchases of property and equipment and
other
(78.9
)
(77.9
)
Disposals of property and equipment
5.3
11.2
Less: A/R Facility Adjustment(1)
(233.0
)
—
Free Cash Flow (Non-GAAP)
$
165.2
$
190.3
Adjusted EBITDA (Non-GAAP)
$
352.9
$
404.0
Free Cash Flow to Adjusted EBITDA Ratio
(Non-GAAP)
46.8
%
47.1
%
__________________
(1) The A/R Facility Adjustment represents
the value of the proceeds from the initial trade receivables sold
under the A/R Facility.
As of
September 27, 2024
September 29, 2023
Total principal debt outstanding
$
1,162.5
$
1,500.0
Finance lease obligations
146.7
132.9
Less: Cash and cash equivalents
(31.0
)
(36.1
)
Net Debt (Non-GAAP)
$
1,278.2
$
1,596.8
Net Leverage (Non-GAAP)
3.62
3.95
Fiscal Year Ended
September 27, 2024
September 29, 2023
Adjusted EBITDA (Non-GAAP)
$
352.9
$
404.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241121890254/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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