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Vestis Corporation (VSTS-1.46%) has submitted its 10-K filing for the fiscal year ended September 27, 2024.
The filing details the company's financial performance, reporting a revenue of $2.8 billion, a slight decrease from the previous year's $2.825 billion. Operating income for the year was $157.9 million, down from $217.9 million in the prior year.
Net income for the fiscal year was $21.0 million, a significant decrease from $213.2 million in the previous year. The decrease is attributed to increased interest expenses and the absence of a gain on the sale of an equity investment recorded in the prior year.
Vestis Corporation's business operations are divided into two segments: United States and Canada. The United States segment reported revenue of $2.56 billion, while the Canada segment reported $249.9 million.
Operating expenses increased slightly to $2.65 billion, with cost of services provided rising to $1.99 billion. Selling, general, and administrative expenses also increased to $517.2 million.
The company reported a total of $1.16 billion in long-term borrowings, with a weighted average interest rate of 7.65% for the fiscal year. Cash provided by operating activities was $471.8 million.
Vestis Corporation completed its spin-off from Aramark (ARMK-0.38%) on September 30, 2023, and began trading on the New York Stock Exchange under the ticker symbol 'VSTS'.
The filing also discusses various risks, including economic conditions, competition, and the company's reliance on a few large customers. It highlights the company's strategic focus on customer retention, cross-selling, and operational efficiency.
The company has identified key areas for operational improvements, including network optimization and workforce management, to reduce costs and expand margins.
Vestis Corporation's board of directors declared a quarterly dividend of $0.035 per share, with future dividends subject to board approval based on financial conditions and other factors.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Vestis Corporation annual 10-K report dated November 22, 2024. To report an error, please email earnings@qz.com.