ATLANTA--(BUSINESS WIRE)--December 01, 2025--
Vestis Corporation (NYSE: VSTS), a leading provider of uniforms and workplace supplies, today announced its results for the fiscal fourth quarter and full-year periods ended October 3, 2025, both of which reflect an additional week of operations when compared to the same prior year period.
Fourth Quarter 2025 Results
-- Revenue of $712 million
-- Operating Income of $18 million
-- Net Loss of $13 million, or $(0.10) per diluted share
-- Adjusted Net Income* of $4 million, or $0.03 per diluted share
-- Adjusted EBITDA* of $65 million
-- Cash Flows Provided by Operating Activities of $31 million and Free Cash
Flow* of $16 million
-- Available liquidity of $298 million including $30 million cash and cash
equivalents on hand
Management Commentary
"We ended fiscal 2025 in a good position to advance our strategic priorities as we enter fiscal 2026," said Jim Barber, President and CEO. "Over the past several months, we have taken a close look at our commercial strategy as well as our operations and identified the actions needed to strengthen performance, unlock operating leverage, and better serve our customers. As a result, we have launched a comprehensive business transformation plan anchored on three strategic pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization. We have already begun executing initiatives under the plan, and we anticipate these improvements will be progressively realized throughout fiscal 2026 as we advance our multi-year transformation," Mr. Barber concluded.
"As we look ahead, our near-term focus is increasing both profitability and cash flow to lay the foundation for stronger, more durable financial performance going forward," said Kelly Janzen, Executive Vice President and Chief Financial Officer. "The variety of initiatives we are executing related to our value-creation plan represents a critical step toward improving operating leverage, supporting the balance sheet and unlocking the full potential of our platform to deliver lasting value for all stakeholders. The plan is expected to generate annual operating cost savings of at least $75 million by the end of fiscal 2026 and to also enhance revenue."
Strategic Business Transformation
Today, the Company announced the launch of a formal multi-year strategic transformational restructuring plan (the "Plan") designed to make the Company more customer focused, agile and efficient -- while positioning it for long-term profitable growth. Developed in collaboration with leading third-party advisors, the Plan is structured around three strategic priorities: Commercial Excellence, Operational Excellence and Asset & Network Optimization.
-- Commercial Excellence: Enhancing customer retention, penetration and
profitability through improved segmentation, strategic pricing, expanded
product offerings and disciplined commercial execution.
-- Operational Excellence: Standardizing operations across facilities to
boost efficiency, scalability, and cost-effectiveness, streamlining our
organizational structure to align resources with strategic goals while
modernizing core processes and systems.
-- Asset & Network Optimization: Improving logistics and asset utilization
through network rationalization, equipment reallocation, and targeted
capital investments.
These priorities establish a clear framework for near-term performance improvement and long-term value creation through disciplined execution, continuous improvement, and a relentless focus on serving customers. We expect the Plan to be substantially complete by the end of 2027 and we estimate that costs related to the execution of the Plan will be in the range of approximately $25 million to $30 million.
Fourth Quarter 2025 Financial Performance
Revenue for the fiscal fourth quarter totaled $712.0 million, an increase of $27.7 million year over year or 4.1%. The increase in revenue compared to the prior year primarily reflects the impact of an additional week, which increased revenue by $51.6 million. Excluding the impact of the additional week, revenue declined 3.5% year over year, reflecting an $18.1 million decrease in rental revenue, due primarily to the net impact of lost business, a $5.0 million decline in direct sales revenue and a $0.8 million negative impact of foreign exchange on currency related to our Canadian business.
Operating income for the fiscal fourth quarter was $17.6 million, compared to $29.8 million in the fourth quarter of 2024, a decrease of $12.2 million. The decrease year over year is primarily attributable to margin related to the net impact of lost business offset by selling, general and administrative cost improvements, and a small benefit from an additional week of operations.
Capital Allocation and Financial Position
During the fiscal fourth quarter of 2025, we invested $15.4 million in property and equipment, the majority of which was related to market center facility improvements.
Net cash provided by operating activities was $30.9 million and Free Cash Flow* was $15.6 million for the fourth quarter of 2025. Excluding a $233 million favorable impact to operating cash flow associated with the initial trade receivables sold under the Accounts Receivable Securitization facility in the fourth quarter of 2024, operating cash flow decreased $31.7 million and Free Cash Flow* decreased $18.9 million, respectively, from the comparative prior year period. The decrease in Free Cash Flow* primarily reflects the decrease in earnings year over year, partially offset by a $12.8 million reduction in investments in property and equipment.
As of October 3, 2025, Vestis had total cash and excess availability under its revolving credit facility of $298 million as compared to $326 million at the end of the fourth quarter of 2024. Total debt outstanding at the end of the fourth quarter was $1.34 billion including principal bank debt outstanding of $1.17 billion.
Fiscal Year 2026 Outlook
The Company expects fiscal 2026 revenue to be between flat to down 2% as compared to normalized fiscal 2025 revenue and Adjusted EBITDA* to be in the range of $285 million and $315 million. Additionally, the Company expects fiscal 2026 Free Cash Flow* to be in the range of $50 million to $60 million.
Fourth Quarter & Full-Year 2025 Results Conference Call & Webcast
Vestis will host a conference call on Tuesday, December 2, 2025, at 8:30 a.m. Eastern Time to discuss its fiscal fourth quarter and full year 2025 results.
For a live webcast of the conference call and to access the accompanying investor presentation, please visit the investor relations section of the Company's website at www.vestis.com.
To participate in the live teleconference:
Unites States Live: 800-267-6316
International Live: 203-518-9783
Access Code: VSTSQ425
A replay of the live event will also be available on the Company's website shortly after the conclusion of the call.
About Vestis$(TM)$
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.
____________________________________ * A non-GAAP measure, see accompanying non-GAAP measure explanations and reconciliations later in this release
Forward-Looking Statements
This 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 relating to discussions 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 "potential," "outlook," "guidance," "anticipate," "continue," "estimate," "expect," "will," and "believe," and other words and terms of similar meaning or the negative versions of such words. Examples of forward-looking statements in this release include, but are not limited to, statements regarding: the potential effects and timing of our strategic business actions to enhance both our commercial and operational processes, and our expectations regarding our fiscal year 2026 performance outlook, including the information under the heading "Fiscal Year 2026 Outlook". 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 macroeconomic conditions including inflationary pressures and higher interest rates; the failure to retain current customers, renew existing customer contracts and obtain new customer contracts, which could result in continued stock volatility and potential future goodwill impairment charges; competition in our industry; our ability to comply with certain financial ratios, tests and covenants in our credit agreement, including the Net Leverage Ratio; our significant indebtedness and ability to meet debt obligations and our reliance on an accounts receivable securitization facility; our ability to successfully execute or achieve the expected benefits of our restructuring plan and other measures
we may take in the future; use of artificial intelligence in our business, which could result in reputational harm, competitive harm, and legal liability; increases in fuel and energy costs and other supply chain challenges and disruptions, including as a result of ongoing military conflicts in Ukraine and the Middle East; implementation of new or increased tariffs and ongoing changes in U.S. and foreign government trade policies, including potential modifications to existing trade agreements and retaliatory measures by foreign governments; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our support services contracts; a determination by our customers to reduce their outsourcing or use of preferred vendors; the outcome of legal proceedings to which we are or may become subject; risks associated with suppliers from whom our products are sourced; challenge of contracts by our customers; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; increases in labor costs or inability to hire and retain key or sufficient qualified personnel; continued or further unionization of our workforce; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; natural disasters, global calamities, climate change, pandemics, and other adverse incidents; 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; unanticipated changes in tax law; 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 ("ESG") considerations which may expose us to liabilities and other adverse effects on our business; any failure by $Aramark(ARMK-W)$ to perform its obligations under the various separation agreements entered into in connection with the separation; and a determination by the IRS that the distribution or certain related transactions are taxable. 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 the Company's filings with the Securities and Exchange Commission ("SEC"), including "Item 1A-Risk Factors" in the Company's most recent Annual Report on Form 10-K and in "Item 1A-Risk Factors" of Part II in subsequently-filed Quarterly Reports on Form 10-Q, which are available on the SEC's website at www.sec.gov. 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.
Non-GAAP Financial Measures
Vestis reports its financial results in accordance with U.S. GAAP, but in this release and the non-GAAP reconciliations that follow, Vestis also uses the following non-GAAP measures: Adjusted EBITDA, Adjusted Net Income (Loss), Free Cash Flow, Net Debt, Net Leverage Ratio, and Trailing Twelve Months Covenant Adjusted EBITDA. Vestis believes that non-GAAP financial measures, both together with and in addition to the corresponding U.S. GAAP financial measure, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to Vestis' core operating results. Vestis uses these non-GAAP financial measures with U.S. GAAP financial measures and other comparable tools to assist in the evaluation of its operating performance. Vestis believes that presentation of these measures also helps investors because the measures enable better comparisons of Vestis' historical results and allow investors to evaluate Vestis' performance based on the same metrics that Vestis uses to evaluate its performance and trends in its results. However, these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Vestis' results as reported under U.S. GAAP. Specifically, 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. These non-GAAP financial measures also should not be considered as measures of cash available to Vestis to invest in the growth of Vestis' business or cash that will be available to Vestis to meet its obligations. 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. These non-GAAP measures are reconciled in the tables at the end of this release.
Adjusted EBITDA
Adjusted EBITDA represents net income (loss) adjusted for provision for income taxes; interest expense, net; and depreciation and amortization (EBITDA), further adjusted for share-based compensation expense; severance; separation related charges; securitization fees; loss (gain) on sale of equity investment; third party debt amendment fees; legal reserves and settlements; gains, losses, and other items impacting comparability. Adjusted EBITDA is presented in order to reflect Vestis' 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 Vestis and other items impacting comparability between periods. Similar adjustments have been recorded in Adjusted EBITDA for earlier periods and similar types of adjustments can reasonably be expected to be recorded in Adjusted EBITDA in future periods.
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) represents net income (loss) adjusted to exclude items not considered indicative of our core ongoing operations, such as restructuring and severance charges, separation-related costs, amortization of intangibles, loss (gain) on sale of equity investment, third party debt amendment fees, legal reserves and settlements, share-based compensation, gains, losses, and other items impacting comparability. Management believes this measure provides useful supplemental information by facilitating period-over-period comparisons of performance on a consistent basis. The most directly comparable GAAP measure is Net Income (Loss).
Free Cash Flow
Free Cash Flow represents net cash provided by operating activities adjusted for purchases of property and equipment and other. Free Cash Flow is presented because it relates the operating cash flow of Vestis to the capital that is spent to continue and improve business operations, and indicates the amount of cash generated or used after capital expenditures that can be used for, among other things, investment in the Vestis business, strengthening the balance sheet, and repayment of debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure.
Net Leverage Ratio, Net Debt, Covenant Adjusted EBITDA and Trailing Twelve Months Covenant Adjusted EBITDA
Net Leverage Ratio is defined in Vestis' credit agreement and is calculated as consolidated total indebtedness in excess of unrestricted cash (referred to herein as "Net Debt"), divided by the Trailing Twelve Months Covenant Adjusted EBITDA. Net Debt represents total principal debt outstanding, letters of credit outstanding, and finance lease obligations, less cash and cash equivalents. Covenant Adjusted EBITDA represents Adjusted EBITDA, as further modified by certain items specifically permitted under the credit agreement to assess compliance with its financial covenants. Trailing Twelve Months Covenant Adjusted EBITDA represents Covenant Adjusted EBITDA for the preceding four fiscal quarters. Vestis believes that Net Leverage Ratio and its components are useful to investors because they are indicators of Vestis' ability to meet its future financial obligations and are measures that are frequently used by investors and creditors.
Forward Looking Non-GAAP Information
This release also includes certain non-GAAP financial information that is forward-looking in nature, including our expected 2026 Adjusted EBITDA and Free Cash Flow. 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.
VESTIS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Fiscal Year Ended
-------------------- --------------------------
October September October 3, September 27,
3, 2025 27, 2024 2025 2024
--------- --------- ----------- -------------
Revenue $712,011 $684,281 $2,734,839 $2,805,820
Operating Expenses:
Cost of services
provided
(exclusive of
depreciation and
amortization) 533,150 487,315 2,010,082 1,989,872
Depreciation and
amortization 35,343 35,281 143,017 140,781
Selling, general
and administrative
expenses 125,877 131,909 517,309 517,216
------- ------- --------- ---------
Total Operating
Expenses 694,370 654,505 2,670,408 2,647,869
------- ------- --------- ---------
Operating Income 17,641 29,776 64,431 157,951
Loss (Gain) on Sale
of Equity
Investment, net 634 -- 2,784 --
Interest Expense, net 24,343 29,848 92,264 126,563
Other Expense
(Income), net 3,569 1,199 13,689 (642)
------- ------- --------- ---------
(Loss) Income Before
Income Taxes (10,905) (1,271) (44,306) 32,030
(Benefit) Provision
for Income Taxes 1,644 1,027 (4,083) 11,060
------- ------- --------- ---------
Net
(Loss)
Income $(12,549) $ (2,298) $ (40,223) $ 20,970
======= ======= ========= =========
Earnings per share:
Basic $ (0.10) $ (0.02) $ (0.31) $ 0.16
Diluted $ (0.10) $ (0.02) $ (0.31) $ 0.16
Weighted Average
Shares Outstanding
Basic 131,840 131,566 131,751 131,506
Diluted 131,840 131,566 131,751 131,787
VESTIS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share amounts)
October 3, 2025 September 27, 2024
----------------- ----------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 29,748 $ 31,010
Receivables (net of
allowances: $32,677 and
$19,804) 162,295 177,271
Inventories, net 179,020 164,913
Rental merchandise in
service, net 405,625 396,094
Other current assets 73,343 43,981
------------ ---------------
Total current
assets 850,031 813,269
------------ ---------------
Property and Equipment, at
cost:
Land, buildings and
improvements 565,677 590,972
Equipment 1,172,877 1,168,142
------------ ---------------
1,738,554 1,759,114
Less - Accumulated
depreciation (1,075,092) (1,088,256)
------------ ---------------
Total
property and
equipment,
net 663,462 670,858
------------ ---------------
Goodwill 961,732 963,844
Other Intangible Assets, net 188,837 212,773
Operating Lease Right-of-use
Assets 85,108 73,530
Other Assets 157,730 198,113
------------ ---------------
Total Assets $ 2,906,900 $ 2,932,387
============ ===============
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of
financing lease
obligations $ 35,234 $ 31,347
Current operating lease
liabilities 20,189 19,886
Accounts payable 158,362 163,054
Accrued payroll and
related expenses 93,897 96,768
Accrued expenses and
other current
liabilities 101,282 145,047
------------ ---------------
Total current
liabilities 408,964 456,102
------------ ---------------
Long-Term Borrowings 1,155,143 1,147,733
Noncurrent Financing Lease
Obligations 131,071 115,325
Noncurrent Operating Lease
Liabilities 77,032 66,111
Deferred Income Taxes 177,337 191,465
Other Noncurrent Liabilities 91,709 52,600
------------ ---------------
Total Liabilities 2,041,256 2,029,336
------------ ---------------
Equity:
Common stock, par value
$0.01 per share,
350,000,000 shares
authorized, 131,859,470
and 131,481,967 shares
issued and outstanding
as of October 3, 2025
and September 27, 2024,
respectively 1,319 1,315
Additional paid-in
capital 937,531 928,082
(Accumulated deficit)
retained earnings (46,879) 2,565
Net parent investment -- --
Accumulated other
comprehensive loss (26,327) (28,911)
------------ ---------------
Total Equity 865,644 903,051
------------ ---------------
Total Liabilities and Equity $ 2,906,900 $ 2,932,387
============ ===============
VESTIS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Three months ended Fiscal Year Ended
--------------------- --------------------------
October September October 3, September 27,
3, 2025 27, 2024 2025 2024
--------- ---------- ---------- --------------
Cash flows from
operating
activities:
Net Income (Loss) $(12,549) $ (2,298) $ (40,223) $ 20,970
Adjustments to
reconcile Net
Income (Loss) to
Net cash provided
by operating
activities:
Depreciation
and
amortization 35,343 35,281 143,017 140,781
Deferred income
taxes 2,604 (9,410) (13,398) (19,576)
Share-based
compensation
expense 556 3,033 11,565 16,336
Loss on sale of
equity
investment,
net 634 -- 2,784 --
Asset
write-down 980 -- 1,169 980
(Gain) Loss on
disposals of
property and
equipment 236 424 (490) 1,042
Amortization of
debt issuance
costs 975 3,205 3,637 4,683
Loss on
extinguishment
of debt -- -- -- 3,883
Changes in
operating assets
and liabilities:
Receivables,
net 12,939 233,044 14,002 215,814
Inventories,
net 7,762 (11,268) (13,725) 9,868
Rental
merchandise in
service, net (5,936) 2,948 (10,644) 3,126
Other current
assets (13,228) 3,546 (25,116) (2,684)
Accounts
payable 1,227 7,194 (267) 21,665
Accrued
expenses and
other current
liabilities (31,574) 26,050 (12,371) 80,561
Changes in other
noncurrent
liabilities 31,258 688 8,540 (16,212)
Changes in other
assets (152) 1,450 (4,031) (9,482)
Other operating
activities (148) 1,701 (220) 33
------- -------- -------- ----------
Net cash provided
by operating
activities 30,927 295,588 64,229 471,788
------- -------- -------- ----------
Cash flows from
investing
activities:
Purchases of
property and
equipment and
other (15,358) (28,118) (58,460) (78,905)
Proceeds from
disposals of
property and
equipment 159 5,269 5,524 5,269
Proceeds from
sale of equity
investment 867 -- 37,659 --
Other investing
activities 36 -- (4,540) --
------- -------- -------- ----------
Net cash provided
by (used in)
investing
activities (14,296) (22,849) (19,817) (73,636)
------- -------- -------- ----------
Cash flows from
financing
activities:
Proceeds from
long-term
borrowings 74,000 -- 167,000 798,000
Payments of
long-term
borrowings (76,000) (258,000) (161,000) (1,137,500)
Payments of
financing lease
obligations (8,866) (8,036) (34,496) (30,608)
Net cash
distributions to
Parent -- -- -- (6,051)
Dividend payments -- (4,602) (13,822) (13,801)
Debt issuance
costs -- -- (1,628) (11,134)
Other financing
activities (74) (28) (2,111) (1,881)
------- -------- -------- ----------
Net cash provided
by (used in)
financing
activities (10,940) (270,666) (46,057) (402,975)
------- -------- -------- ----------
Effect of foreign
exchange rates on
cash and cash
equivalents 314 (161) 383 (218)
------- -------- -------- ----------
Increase (decrease)
in cash and cash
equivalents 6,005 1,912 (1,262) (5,041)
Cash and cash
equivalents,
beginning of
period 23,743 29,098 31,010 36,051
------- -------- -------- ----------
Cash and cash
equivalents, end
of period $ 29,748 $ 31,010 $ 29,748 $ 31,010
======= ======== ======== ==========
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
(In thousands)
Consolidated Consolidated
---------------------- -----------------------
Three Months Ended Fiscal Year Ended
---------------------- -----------------------
October September October September
3, 27, 3, 27,
--------- ----------- --------- ------------
2025 2024 2025 2024
------- ------ ------- -----------
Net Income (Loss) $(12,549) $ (2,298) $(40,223) $ 20,970
Adjustments:
Depreciation
and
Amortization 35,343 35,281 143,017 140,781
Provision
(Benefit) for
Income Taxes 1,644 1,027 (4,083) 11,060
Interest
Expense 24,343 29,848 92,264 126,563
Share-Based
Compensation 556 3,033 11,565 16,336
Severance (1) 6,309 3,741 18,636 4,442
Separation
Related
Charges (2) 3,309 3,973 13,579 22,602
Securitization
Fees 3,495 -- 13,555 --
Loss (Gain) on
Sale of Equity
Investment 709 -- 2,909 --
Third Party
Debt Amendment
Charges -- -- 1,530 --
Legal Reserves
and
Settlements (668) 962 2,532 4,518
Gains, Losses
and Other(3) 2,165 4,980 2,144 5,628
------- ------ ------- -----------
Adjusted EBITDA
(Non-GAAP) $ 64,656 $ 80,547 $257,425 $ 352,900
======= ====== ======= ===========
Covenant
Related
Adjustments(4) 3,600 -- 20,400 --
------- ------ ------- -----------
Covenant Adjusted
EBITDA (Non-GAAP) $ 68,256 $ 80,547 $277,825 $ 352,900
======= ====== ======= ===========
(1) Please refer to Note 2. Severance, in the Company's Form 10-K for the year
ended October 3, 2025.
(2) Separation Related Charges include third-party expenses incurred in
connection with the Company's separation from Aramark on September 30, 2023,
and the establishment of stand-alone public company operations. These costs
primarily consist of rebranding initiatives, development of stand-alone
technology infrastructure, and professional services.
(3) Other includes certain costs or income items that are not individually
material and do not relate to core business activities.
(4) Includes a $15 million bad debt expense adjustment to EBITDA in the fiscal
quarter ended March 28, 2025, an adjustment of $1.8 million for the quarter
ended June 27, 2025 related to a write-off of merchandise-in-service and a
$3.6 million environmental reserve adjustment for the quarter ended October 3,
2025. These adjustments are solely for the purpose of determining compliance
with the financial covenants in the Company's credit agreement.
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
(In thousands, except per share amounts)
Consolidated Consolidated
-------------------- ----------------------
Three Months Ended Year Ended
-------------------- ----------------------
October September October September
3, 27, 3, 27,
--------- --------- --------- -----------
2025 2024 2025 2024
------- ------- ------- -------
Net Income (Loss) $(12,549) $ (2,298) $(40,223) $ 20,970
Adjustments:
Amortization
expense 7,186 6,458 27,192 25,916
Share-Based
Compensation 556 3,033 11,565 16,336
Severance and
Other
Related
Charges 6,309 3,741 18,636 4,442
Separation
Related
Charges 3,309 3,973 13,579 22,602
Loss on Sale
of Equity
Investment 709 -- 2,909 --
Third Party
Debt
Amendment
Fees -- -- 1,530 --
Legal
Reserves and
Settlements (668) 962 2,532 4,518
Gains, Losses
and
Other(1) 2,165 3,738 2,144 6,382
Tax Impact of
Reconciling
Items Above (2,950) (5,100) (7,380) (18,900)
------- ------- ------- -------
Adjusted Net
Income (Loss)
(Non-GAAP) $ 4,067 $ 14,507 $ 32,484 $ 82,266
======= ======= ======= =======
Basic
weighted-average
shares
outstanding 131,840 131,566 131,751 131,506
Diluted
weighted-average
shares
outstanding 132,198 131,566 132,253 131,787
Basic (Loss)
Earnings Per
Share $ (0.10) $ (0.02) $ (0.31) $ 0.16
Diluted (Loss)
Earnings Per
Share $ (0.10) $ (0.02) $ (0.31) $ 0.16
Adjusted Basic
(Loss) Earnings
Per Share
(Non-GAAP) $ 0.03 $ 0.11 $ 0.25 $ 0.63
Adjusted Diluted
(Loss) Earnings
Per Share
(Non-GAAP) $ 0.03 $ 0.11 $ 0.25 $ 0.62
(1) Other includes certain costs or income items that are
not individually material and do not relate to core
business activities
VESTIS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
FREE CASH FLOW, FREE CASH FLOW TO ADJUSTED EBITDA RATIO, NET
DEBT, AND NET LEVERAGE
(In thousands)
Three Months Ended Fiscal year Ended
----------------------- -----------------------
October September October September
3, 2025 27, 2024 3, 2025 27, 2024
--------- ------------ --------- ------------
Net cash
provided
by
operating
activities $ 30,927 $295,588 $ 64,229 $471,788
Purchases
of
property
and
equipment
and other (15,358) (28,118) (58,460) (78,905)
------- ------- ------- -------
Free Cash
Flow
(Non-GAAP) $ 15,569 $267,470 $ 5,769 $392,883
======= ======= ======= =======
As of
-----------------------------------------
October 3, 2025 September 27, 2024
----------------- ----------------------
Total principal debt
outstanding $ 1,168,500 $ 1,162,500
Letters of credit outstanding 5,818 5,298
Finance lease obligations 166,305 146,672
Less: Cash and cash equivalents (29,748) (31,010)
------------ ---------------
Net Debt (Non-GAAP) $ 1,310,875 $ 1,283,460
============ ===============
Trailing Twelve Months Adjusted
EBITDA (Non-GAAP) $ 257,425 $ 352,900
Covenant Related Adjustments
(1) 20,400 --
------------ ---------------
Trailing Twelve Months Covenant
Adjusted EBITDA (Non-GAAP) $ 277,825 $ 352,900
============ ===============
Net Leverage Ratio (Non-GAAP)
(1) 4.72 3.64
============ ===============
(1) Includes a $15 million bad debt expense adjustment to EBITDA in the fiscal
quarter ended March 28, 2025, an adjustment of $1.8 million for the quarter
ended June 27, 2025 related to a write-off of merchandise-in-service and a
$3.6 million environmental reserve adjustment for the quarter ended October 3,
2025. These adjustments are solely for the purpose of determining compliance
with the financial covenants in the Company's credit agreement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251201219852/en/
CONTACT: Investor
Stefan Neely or Bill Seymour
Vallum Advisors
615-844-6248
ir@vestis.com
Media
Danielle Holcomb
470-716-0917
danielle.holcomb@vestis.com
(END) Dow Jones Newswires
December 01, 2025 16:10 ET (21:10 GMT)