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Vestis Corporation (VSTS-2.53%) has submitted its 10-Q filing for the quarterly period ended December 27, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $683.8 million from $717.9 million in the same quarter the previous year. This decrease is attributed to reductions in revenue due to lost business, lower net pricing, and decreased revenue from direct sales.
Cost of services provided decreased to $495.3 million from $502.4 million, primarily due to reductions in merchandise cost, energy costs, and wages.
Operating income for the quarter was $30.4 million, down from $47.6 million in the previous year, with the decline attributed to decreased revenue and changes in operating expenses.
Interest expense decreased to $23.1 million from $31.5 million, primarily due to lower average outstanding debt.
Net income for the quarter was $0.8 million, down from $12.3 million in the previous year. The decrease is attributed to lower operating income and other expenses.
Cash provided by operating activities was $3.8 million, while cash provided by investing activities was $17.9 million, primarily due to proceeds from the sale of an equity investment.
Cash used in financing activities was $34.6 million, primarily due to payments of long-term borrowings and dividends.
Vestis had a working capital of $809.6 million as of December 27, 2024. The company continues to focus on optimizing its operations and managing costs.
The filing also details various financial agreements, including an accounts receivable securitization facility and amendments to the company's credit agreement.
Vestis does not anticipate changes to its dividend policy in the near future, with a quarterly dividend of $0.035 per common share declared.
The company identified various legal proceedings and risks that may impact future performance, including class action lawsuits and shareholder derivative actions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Vestis Corporation quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.