UNIFIRST CORP
For the period ended May 31, 2025. Filed Jul 9, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 31, 2025 · Filed Jul 9, 2025
UNF$235.40-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-01; filed 2025-04-10.
0000950170-25-052817
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-05-31; filed 2025-07-09.
0000950170-25-094853
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 90 current paragraphs.
56 unchanged; 25 reworded; 7 added; 20 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 18 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
We are also monitoring and evaluating the potential impact of recently announced new or increased tariffs on imported goods. If any such tariffs were to increase our cost of obtaining raw materials or products from suppliers and we were unable to mitigate the impacts of any such increased costs, it could have a material adverse impact on our business and our results of operations.
Current report
The increase in selling and administrative costs during the thirteen weeks ended May 31, 2025 compared to the prior year comparable period was due primarily to higher healthcare claims expense and approximately $5.7 million of expense related to advisory costs for a strategic matter and legal costs related to an employee matter.
Current report
Thirty-nine weeks ended May 31, 2025 compared with thirty-nine weeks ended May 25, 2024
Current report
The increase in selling and administrative costs of 9.1% during the thirty-nine weeks ended May 31, 2025 compared to the prior year comparable period was due primarily to higher healthcare claims expense and approximately $5.7 million of expense related to advisory costs for a strategic matter and legal costs related to an employee matter.
Current report
Other income, net
Current report
Other income, net during the thirty-nine weeks ended May 31, 2025 increased as compared to the prior year comparable period primarily due to $2.8 million in proceeds from the sale of a property. In addition, improved operating cash flows over the past few years have led to increased cash reserves, which in turn have also generated higher interest income.
Current report
These increases were partially offset by an $11.6 million decrease in accounts payable and a $9.0 million decrease in accrued liabilities, both due primarily to the timing of cash payments. Operating activities were also negatively impacted by a $5.2 million increase in prepaid expenses and other current assets, driven by higher information technology prepayments, sponsorship agreements and deferred commission costs.
Removed paragraphs (20)
Previous report
The increase in selling and administrative costs during the thirteen weeks ended March 1, 2025 compared to the prior year comparable period due primarily to investments we continue to make in building our capabilities and to execute through the initiatives that are advancing.
Previous report
Other (income) expense, net
Previous report
Other (income) expense, net during the thirteen weeks ended March 1, 2025 increased as compared to the prior year comparable period primarily due to higher interest income. With improved cash flows from operating activities over the last couple of years, we have generated additional cash reserves.
Previous report
Twenty-six weeks ended March 1, 2025 compared with twenty-six weeks ended February 24, 2024
Previous report
The increase in selling and administrative costs of 8.3% during the twenty-six weeks ended March 1, 2025 compared to the prior year comparable period was due primarily to investments we continue to make in building our capabilities and to execute through the initiatives that are advancing.
Previous report
We are subject to various federal, state and local laws and regulations governing, among other things, air emissions, wastewater discharges, and the generation, handling, storage, transportation, treatment and disposal of hazardous wastes and other substances. In particular, industrial laundries currently use and must properly dispose of detergent wastewater and other residues, and, in the past, used perchloroethylene and other dry-cleaning solvents. We are attentive to the environmental concerns surrounding the disposal of these materials and have, through the years, taken measures to avoid their improper disposal. We have settled, or contributed to the settlement of, past actions or claims brought against us relating to the disposal of hazardous materials at several sites and there can be no assurance that we will not have to expend material amounts to remediate the consequences of any such disposal in the future.
Previous report
Generally accepted accounting principles in the United States (“U.S. GAAP”), requires that a liability for contingencies be recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. We regularly consult with attorneys and outside consultants in our consideration of the relevant facts and circumstances before recording a contingent liability. Changes in enacted laws, regulatory orders or decrees, our estimates of costs, risk-free interest rates, insurance proceeds, participation by other parties, the timing of payments, the input of our attorneys and outside consultants or other factual circumstances could have a material impact on the amounts recorded for our environmental and other contingent liabilities.
Previous report
Under environmental laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on, or in, or emanating from, such property, as well as related costs of investigation and property damage. Such laws often impose liability without regard to whether the owner or lessee knew of, or was responsible for the presence of such hazardous or toxic substances. There can be no assurances that acquired or leased locations have been operated in compliance with environmental laws and regulations or that future uses or conditions will not result in the imposition of liability upon our Company under such laws or expose our Company to third-party actions such as tort suits. We continue to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to certain sites.
Previous report
We have accrued certain costs related to certain sites, including but not limited to, sites in Woburn and Somerville, Massachusetts, as it has been determined that the costs are probable and can be reasonably estimated. We, together with multiple other companies, are party to a consent decree related to our property and other parcels of land (the “Central Area”) at a site in Woburn, Massachusetts. The United States Environmental Protection Agency (the “EPA”) has provided us and other signatories to the consent decree with comments on the design and implementation of groundwater and soil remedies at the Woburn site and investigation of environmental conditions in the Central Area. The consent decree does not address any remediation work that may be required in the Central Area. We, and other signatories, have implemented and proposed to do additional work at the Woburn site but many of the EPA’s comments remain to be resolved. We have accrued costs to perform certain work responsive to the EPA’s comments. Additionally, we have implemented mitigation measures and continue to monitor environmental conditions at a site in Somerville, Massachusetts. We have agreed to undertake additional actions responsive to a notice of audit findings from the Massachusetts Department of Environmental
Previous report
Protection concerning a regulatory submittal that we made in 2009 for a portion of the site. We received in December 2024 an additional notice related to the scope of its ongoing environmental work at the Somerville site, and additional actions responsive to this notice may follow. We have received demands from the local transit authority for reimbursement of certain costs associated with its construction of a new municipal transit station in the area of the Somerville site. This station was part of an extension of the transit system. We have reserved for costs in connection with this matter; however, in light of the uncertainties associated with this matter, these costs and the related reserve may change.
Previous report
We routinely review and evaluate sites that may require remediation and monitoring and determine our estimated costs based on various estimates and assumptions. These estimates are developed using our internal sources or by third party environmental engineers or other service providers. Internally developed estimates are based on:
Previous report
Management’s judgment and experience in remediating and monitoring our sites;
Previous report
Information available from regulatory agencies as to costs of remediation and monitoring;
Previous report
The number, financial resources and relative degree of responsibility of other potentially responsible parties (“PRPs”) who may be liable for remediation and monitoring of a specific site; and
Previous report
The typical allocation of costs among PRPs.
Previous report
There is usually a range of reasonable estimates of the costs associated with each site. In accordance with U.S. GAAP, our accruals represent the amount within the range that we believe is the best estimate or the low end of a range of estimates if no point within the range is a better estimate. When we believe that both the amount of a particular liability and the timing of the payments are reliably determinable, we adjust the cost in current dollars using a rate of 3% for inflation until the time of expected payment and discount the cost to present value using current risk-free interest rates. As of March 1, 2025, the risk-free interest rates we utilized ranged from 4.51% to 4.55%.
Previous report
For environmental liabilities that have been discounted, we include interest accretion, based on the effective interest method, in selling and administrative expenses on the Consolidated Statements of Income. The changes to the amounts of our environmental liabilities for the twenty-six weeks ended March 1, 2025 were as follows (in thousands):
Previous report
Anticipated payments and insurance proceeds relating to currently identified environmental remediation liabilities as of March 1, 2025, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below (in thousands):
Previous report
Estimated insurance proceeds are primarily obtained from an annuity received as part of our legal settlement with an insurance company. Annual proceeds of approximately $0.3 million are deposited into an escrow account which funds remediation and monitoring costs for two sites related to our former operations. Annual proceeds received but not expended in the current year accumulate in this account and may be used in future years for costs related to this site through the year 2027. As of March 1, 2025, the balance in this escrow account, which is held in a trust and is not recorded in our Consolidated Balance Sheets, was approximately $5.6 million. Also included in estimated insurance proceeds are amounts we are entitled to receive pursuant to legal settlements as reimbursements from three insurance companies for estimated costs at one of our sites.
Previous report
Our nuclear garment decontamination facilities are licensed by respective state agencies, as delegated authority by the Nuclear Regulatory Commission (the “NRC”) pursuant to the NRC’s Agreement State program and are subject to applicable federal and state radioactive material regulations. In addition, our international locations (Canada, the United Kingdom and the European Union) are regulated by equivalent respective jurisdictional authorities. There can be no assurance that such regulation will not lead to material disruptions in our garment decontamination business.
Reworded paragraphs (25)
Previous wording
This Quarterly Report on Form 10-Q and any documents incorporated by reference may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements contained in this Quarterly Report on Form 10-Q and any documents incorporated by reference are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” “strategy,” “objective,” “assume,” “strive,” “design,” “assumption,” “vision” or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based upon our current expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements. Such factors include, but are not limited to, uncertainties caused by an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflict between Russia and Ukraine and disruption in the Middle East, and their impact on our customers’ businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances, uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses, and the performance of such businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome of pending or future contingencies or claims, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the conflict between Russia and Ukraine, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of nat…
Excerpt shortened here; the source contains the full paragraph.
Current wording
This Quarterly Report on Form 10-Q and any documents incorporated by reference may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements contained in this Quarterly Report on Form 10-Q and any documents incorporated by reference are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” “strategy,” “objective,” “assume,” “strive,” “design,” “assumption,” “vision” or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based upon our current expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements. Such factors include, but are not limited to, uncertainties caused by an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflict between Russia and Ukraine and disruption in the Middle East, and their impact on our customers’ businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances, uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses, and the performance of such businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome of pending or future contingencies or claims, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the conflict between Russia and Ukraine, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of nat…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The following table presents certain selected financial data, including the percentage of revenues represented by each item, for the thirteen and twenty-six weeks ended March 1, 2025 and February 24, 2024.
Current wording
The following table presents certain selected financial data, including the percentage of revenues represented by each item, for the thirteen and thirty-nine weeks ended May 31, 2025 and May 25, 2024.
Previous wording
In fiscal 2018, we initiated a multiyear customer relationship management (“CRM”) project to further develop, implement and deploy a third-party software application we licensed. This new solution improves functionality, capability and information flow as well as increases automation for our operations in servicing our customers. We began deployment of our CRM project during the second half of fiscal 2021 and concluded the deployment to our U.S. locations in the first quarter of fiscal 2024. We are depreciating this system over a 10-year life and recognized $1.0 million and $2.0 million of amortization expense during the thirteen and twenty-six weeks ended March 1, 2025, respectively.
Current wording
In fiscal 2018, we initiated a multiyear customer relationship management (“CRM”) project to further develop, implement and deploy a third-party software application we licensed. This new solution improves functionality, capability and information flow as well as increases automation for our operations in servicing our customers. We began deployment of our CRM project during the second half of fiscal 2021 and concluded the deployment to our U.S. locations in the first quarter of fiscal 2024. We are depreciating this system over a 10-year life and recognized $1.0 million and $3.0 million of amortization expense during the thirteen and thirty-nine weeks ended May 31, 2025, respectively.
Previous wording
In fiscal 2022, we initiated a multiyear ERP project that we plan to continue through 2027, with early phases focused on master data management and finance capabilities followed by subsequent phases with a strong focus on supply chain and procurement automation and technology. We believe that this initiative will become the core of our systems technology footprint and will integrate and complement the capabilities of the CRM system. We expect the ERP system, and the new supply chain and procurement capabilities that it will provide to enable lower operating costs and reduce customer churn. Such benefits are expected to be delivered through enhanced inventory utilization and vendor management, improved response times to customer orders and more efficient back-end processes. As of March 1, 2025, we capitalized $31.0 million related to our ERP project.
Current wording
In fiscal 2022, we initiated a multiyear ERP project that we plan to continue through 2027, with early phases focused on master data management and finance capabilities followed by subsequent phases with a strong focus on supply chain and procurement automation and technology. We believe that this initiative will become the core of our systems technology footprint and will integrate and complement the capabilities of the CRM system. We expect the ERP system, and the new supply chain and procurement capabilities that it will provide to enable lower operating costs and reduce customer churn. Such benefits are expected to be delivered through enhanced inventory utilization and vendor management, improved response times to customer orders and more efficient back-end processes. As of May 31, 2025, we capitalized $38.6 million related to our ERP project.
Previous wording
We refer to our CRM and ERP projects together as our “Key Initiatives”. For the thirteen weeks ended March 1, 2025, we expensed $1.9 million of non-recurring costs related to our Key Initiatives, primarily relating to our ERP project. For the twenty-six weeks ended March 1, 2025, we expensed $4.4 million of non-recurring costs related to our Key Initiatives, primarily relating to our ERP project.
Current wording
We refer to our CRM and ERP projects together as our “Key Initiatives”. For the thirteen weeks ended May 31, 2025, we expensed $1.0 million of non-recurring costs related to our Key Initiatives, primarily relating to our ERP project. For the thirty-nine weeks ended May 31, 2025, we expensed $5.4 million of non-recurring costs related to our Key Initiatives, primarily relating to our ERP project.
Previous wording
The increase in consolidated revenues of 1.9% during the thirteen weeks ended March 1, 2025 compared to the prior year comparable period was due primarily to growth in our Core Laundry Operations of 1.5%. The increase in our Core Laundry Operations was due to organic growth of 1.9%. The effect of the Canadian dollar exchange rate resulted in changes in our revenues of (0.4)%. The Core Laundry Operations organic growth rate was primarily the result of solid new account sales in fiscal 2024 and the first half of fiscal 2025.
Current wording
The increase in consolidated revenues of 1.2% during the thirteen weeks ended May 31, 2025 compared to the prior year comparable period was due primarily to growth in our Core Laundry Operations of 0.9%. The increase in our Core Laundry Operations was due to organic growth of 1.1%. The effect of the Canadian dollar exchange rate resulted in changes in our revenues of (0.2)%. The Core Laundry Operations organic growth rate was primarily the result of solid new account sales in fiscal 2024 and the first half of fiscal 2025.
Previous wording
In the twenty-six weeks ended March 1, 2025, Specialty Garments revenues increased compared to the prior year comparable period due primarily to the growth in the European and North American nuclear operations partially offset by a decrease in our cleanroom operations. Specialty Garments’ results are often affected by seasonality and the timing and length of its customers’ power reactor outages as well as its project-based activities. First Aid revenues in the same period increased 8.0% compared to the prior year comparable period due to strong growth in our van business partially offset by a decrease in our wholesale business.
Current wording
In the thirteen weeks ended May 31, 2025, Specialty Garments revenues increased compared to the prior year comparable period due primarily to the growth in our European nuclear operations and cleanroom operations partially offset by a decrease in revenues in our North American nuclear operations. Specialty Garments’ results are often affected by seasonality and the timing and length of its customers’ power reactor outages as well as its project-based activities.
Previous wording
First Aid revenues in the same period increased 10.6% compared to the prior year comparable period due to double-digit growth in our van business.
Current wording
First Aid revenues in the thirteen weeks ended May 31, 2025 increased 9.1% compared to the prior year comparable period due to strong growth in our van business.
Previous wording
Consolidated cost of revenues and cost of revenues as a percentage of revenue both decreased in the thirteen weeks ended thirteen weeks ended March 1, 2025 compared to the prior year comparable period due primarily to lower merchandise and production costs as a percentage of revenues. These decreases were partially offset by higher healthcare claims expense in the prior year comparable period.
Current wording
Consolidated cost of revenues and cost of revenues as a percentage of revenue both decreased in the thirteen weeks ended May 31, 2025 compared to the prior year comparable period due primarily to lower merchandise and production payroll costs as a percentage of revenues. These decreases were partially offset by higher healthcare claims expense compared to the prior year comparable period.
Previous wording
Other income, net during the twenty-six weeks ended March 1, 2025 increased as compared to the prior year comparable period primarily due to higher interest income. With improved cash flows from operating activities over the last couple of years, we have generated additional cash reserves.
Current wording
Other income, net during the thirteen weeks ended May 31, 2025 increased as compared to the prior year comparable period primarily due to $2.8 million in proceeds from the sale of a property. In addition, improved operating cash flows over the past few years have led to increased cash reserves, which in turn have also generated higher interest income.
Previous wording
The increase in the effective tax rate for the twenty-six weeks ended March 1, 2025 as compared to the corresponding period in the prior year was due primarily to favorable adjustments to our tax reserves during the corresponding prior period.
Current wording
The increase in the effective tax rate for the thirteen weeks ended May 31, 2025 as compared to the corresponding period in the prior year was due primarily to favorable adjustments to our tax reserves during the corresponding prior period.
Previous wording
The increase in consolidated revenues of 1.9% during the twenty-six weeks ended March 1, 2025 compared to the prior year comparable period was due primarily to growth in our Core Laundry Operations of 1.6%. The increase in our Core Laundry Operations was due to organic growth of 1.8%. The effect of the Canadian dollar exchange rate resulted in changes in our revenues of (0.2)%. The Core Laundry Operations strong organic growth rate was primarily the result of solid new account sales and improved pricing with our customers.
Current wording
The increase in consolidated revenues of 1.7% during the thirty-nine weeks ended May 31, 2025 compared to the prior year comparable period was due primarily to growth in our Core Laundry Operations of 1.4%. The increase in our Core Laundry Operations was due to organic growth of 1.6%. The effect of the Canadian dollar exchange rate resulted in changes in our revenues of (0.2)%. The Core Laundry Operations strong organic growth rate was primarily the result of solid new account sales and improved pricing with our customers.
Previous wording
In the thirteen weeks ended March 1, 2025, Specialty Garments revenues increased compared to the prior year comparable period due primarily to the growth in the European nuclear operations partially offset by a decrease in our cleanroom operations. Specialty Garments’ results are often affected by seasonality and the timing and length of its customers’ power reactor outages as well as its project-based activities.
Current wording
In the thirty-nine weeks ended May 31, 2025, Specialty Garments revenues increased compared to the prior year comparable period due primarily to the growth in our European nuclear operations partially offset by a decrease in revenues in our cleanroom operations. Specialty Garments’ results are often affected by seasonality and the timing and length of its customers’ power reactor outages as well as its project-based activities.
Previous wording
The decrease in consolidated cost of revenues of 0.6% during the twenty-six weeks ended March 1, 2025 compared to the prior year comparable period was due primarily to lower merchandise and production costs as a percentage of revenues. Partially offsetting these decreases were higher healthcare claims expense compared to the prior year comparable period.
Current wording
The decrease in consolidated cost of revenues of 0.9% during the thirty-nine weeks ended May 31, 2025 compared to the prior year comparable period was due primarily to lower merchandise and production payroll costs as a percentage of revenues. Partially offsetting these decreases were higher healthcare claims expense compared to the prior year comparable period.
Previous wording
Depreciation and amortization expense remained relatively consistent during the twenty-six weeks ended March 1, 2025 compared to the prior year comparable period.
Current wording
Depreciation and amortization expense remained relatively consistent during the thirty-nine weeks ended May 31, 2025 compared to the prior year comparable period.
Previous wording
The decrease in the effective tax rate for the thirteen weeks ended March 1, 2025 as compared to the corresponding period in the prior year was primarily due to excess tax benefits related to stock-based compensation during the current period.
Current wording
The increase in the effective tax rate for the thirty-nine weeks ended May 31, 2025 as compared to the corresponding period in the prior year was due primarily to favorable adjustments to our tax reserves during the corresponding prior period.
Previous wording
Cash and cash equivalents, and short-term investments totaled $201.0 million as of March 1, 2025, an increase of $25.9 million from $175.1 million as of August 31, 2024. The increase in cash and cash equivalents and short-term investments was largely driven by our cash flows from operating activities. We generated $128.3 million and $106.7 million in cash from operating activities in the twenty-six weeks ended March 1, 2025 and February 24, 2024, respectively. The increase was due primarily to increased profitability and lower working capital needs of the business. During the twenty-six weeks ended March 1, 2025, we continued to invest in our business with capital expenditures totaling $66.1 million.
Current wording
Cash and cash equivalents, and short-term investments totaled $211.9 million as of May 31, 2025, an increase of $36.8 million from $175.1 million as of August 31, 2024. The increase in cash and cash equivalents and short-term investments was largely driven by our cash flows from operating activities. We generated $196.5 million and $193.0 million in cash from operating activities in the thirty-nine weeks ended May 31, 2025 and May 25, 2024, respectively. The increase was due primarily to increased profitability and lower working capital needs of the business. During the thirty-nine weeks ended May 31, 2025, we continued to invest in our business with capital expenditures totaling $109.8 million.
Previous wording
Pursuant to the share repurchase program approved by our Board of Directors on October 24, 2023, we repurchased 66,605 shares of our Common Stock for an aggregate of approximately $12.5 million during the twenty-six weeks ended March 1, 2025. As of March 1, 2025, we had $63.7 million remaining to repurchase shares under the share repurchase program. On April 8, 2025, our Board of Directors authorized a new share repurchase program to repurchase from time to time up to $100.0 million of our outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved in 2023.
Current wording
On April 8, 2025, our Board of Directors authorized a new share repurchase program to repurchase up to $100.0 million of our outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved in 2023.
Previous wording
Sources and uses of cash flows for the twenty-six weeks ended March 1, 2025 and February 24, 2024, respectively, are summarized as follows:
Current wording
Sources and uses of cash flows for the thirty-nine weeks ended May 31, 2025 and May 25, 2024, respectively, are summarized as follows:
Previous wording
The net cash provided by operating activities during the twenty-six weeks ended March 1, 2025 increased as compared to the prior year comparable period due to our improved profitability as well as positive impacts from receivables of $7.7 million, inventories of $7.7 million, accounts payable of $4.3 million and rental merchandise in service of $3.1 million.
Current wording
The net cash provided by operating activities during the thirty-nine weeks ended May 31, 2025 increased as compared to the prior year comparable period due to our improved profitability as well as positive impacts from inventories of $21.4 million, rental merchandise in service of $4.7 million and receivables of $2.1 million.
Previous wording
The positive impact from receivables was due primarily to a focused effort on collections and timing of cash receipts. The positive impact from inventories was due primarily to a focused effort on managing our inventory balances in the current year. The positive impact from accounts payable was due primarily to timing of cash payments. The positive impact from merchandise in service was due primarily to fewer garments being placed in service to support our rental customers.
Current wording
The positive impact from inventories was due primarily to a focused effort on managing our inventory balances in the current year. The improvement in merchandise in service was due primarily to fewer garments being placed in service to support our rental customers. The increase in receivables was due primarily to the result of enhanced collection efforts and the timing of cash receipts.
Previous wording
These increases were partially offset by a $6.4 million decrease in prepaid and accrued income taxes, which was due primarily to the normalization of prepayments during twenty-six weeks ended March 1, 2025 following our large prepaid tax position at the end of fiscal 2023 resulting in lower tax deposits during through twenty-six weeks ended February 24, 2024. The negative impact on accrued liabilities of $2.7 million was due primarily to timing.
Current wording
Additionally, the $4.3 million decrease in prepaid and accrued income taxes reflected the normalization of tax prepayments in the current year, following a large prepaid tax position at the end of fiscal 2023 that resulted in lower tax deposits during the prior-year period.
Previous wording
The net cash used in investing activities during the twenty-six weeks ended March 1, 2025 decreased as compared to the prior year comparable period due primarily to reduced capital expenditures of $6.8 million. Offsetting this decrease was an increase in cash paid for acquisitions of $5.4 million during the twenty-six weeks ended March 1, 2025 as compared to the prior year comparable period.
Current wording
The net cash used in investing activities during the thirty-nine weeks ended May 31, 2025 decreased as compared to the prior year comparable period due primarily to reduced net investment in certificates of deposit of $16.5 million and reduced capital expenditures of $12.1 million. Offsetting these decreases was an increase in cash paid for acquisitions of $5.2 million during the thirty-nine weeks ended May 31, 2025 as compared to the prior year comparable period.
Previous wording
The net cash used in financing activities during the twenty-six weeks ended March 1, 2025 increased as compared to the prior year comparable period due primarily to a $4.4 million increase in the repurchase of Common Stock during the period and increases in taxes withheld and paid related to net-share settlement of equity awards of $1.6 million.
Current wording
The net cash used in financing activities during the thirty-nine weeks ended May 31, 2025 increased as compared to the prior year comparable period due primarily to a $9.6 million increase in the repurchase of Common Stock during the period, increases in taxes withheld and paid related to net-share settlement of equity awards of $1.6 million and increases in cash dividends of $1.0 million.
Previous wording
From time to time, we are also subject to legal and regulatory proceedings and claims arising from the conduct of our business operations, including but not limited to, personal injury claims, customer contract matters, employment claims and environmental matters as described above.
Current wording
We are involved with environmental investigation, monitoring and remediation activities at certain sites. In addition, from time to time, we are also subject to legal and regulatory proceedings and claims arising from the conduct of our business operations, including but not limited to, personal injury, customer contract, employment claims and environmental and tax matters as described. We maintain insurance coverage providing indemnification against many of such claims, and we do not expect, although there can be no assurance, that we will sustain any material loss as a result thereof. Refer to Note 12, “Commitments and Contingencies,” to the Consolidated Financial Statements, as well as Part II, Item 1A. “Risk Factors” below and in our Annual Report on Form 10-K, for further discussion.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
First Aid revenues in the thirty-nine weeks ended May 31, 2025 increased 8.4% compared to the prior year comparable period due to strong growth in our van business partially offset by a slight decrease in revenues in our wholesale business.
Current report — wording carried from elsewhere
Pursuant to the share repurchase program, we repurchased 142,578 shares of our Common Stock for an aggregate of approximately $25.6 million during the thirty-nine weeks ended May 31, 2025. As of May 31, 2025, we had $86.4 million remaining to repurchase shares under the share repurchase program.