Vestis Corporation Reports Third Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Vestis Corporation Reports Third Quarter 2024 Financial Results
Overview
Vestis Corporation (NYSE: VSTS), a leading provider of uniforms and workplace supplies, announced its financial results for the third quarter ended June 28, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Wall Street Estimates |
|---|---|---|---|---|
| Total Revenue | $698 million | $709 million | -1.6% | N/A |
| Operating Income | $38 million | N/A | N/A | N/A |
| Adjusted EBITDA | $87 million | N/A | N/A | N/A |
| Adjusted EBITDA Margin | 12.4% | N/A | -260 basis points | N/A |
| Operating Cash Flow (YTD) | $176 million | $144 million | +22.4% | N/A |
| Free Cash Flow (YTD) | $125 million | $102 million | +22.6% | N/A |
| Net Leverage | 3.98x | 3.95x | N/A | N/A |
| Net Debt | $1.53 billion | N/A | N/A | N/A |
Interpretation
Vestis' financial performance in Q3 2024 indicates a slight year-over-year decline in revenue by 1.6%, slightly less detrimental when accounting for foreign currency impacts at a decrease of 1.4%. Despite the decrease in revenue, the company demonstrates strong operational cash flows and free cash flow growth year-to-date. Adjusted EBITDA margin experienced a decline, largely attributed to increased public company costs.
Management Commentary
CEO Kim Scott expressed satisfaction with the company's trajectory, emphasizing strong cash flow management, debt reduction efforts, and readiness to accelerate performance. "We continue to demonstrate the health of our business as we leverage our strong cash flows and effectively manage our balance sheet to reduce our net debt," said Scott.
Forward Guidance
Vestis reiterated its fiscal year 2024 outlook, projecting revenue growth of between -1% and 0% and adjusted EBITDA margin toward the higher end of the 12.0% to 12.4% range. The company remains confident in its strategic initiatives focused on disciplined capital allocation and strong free cash flow conversion.
Stock Price Movement
After the earnings release, Vestis Corporation's stock price witnessed an increase of approximately 11.8%.
Conclusion
Overall, Vestis Corporation's Q3 2024 results reflect diligent operational management and strategic financial planning, despite minor declines in revenue. The company's focused efforts on cash flow strength and debt management position it positively for future growth.
For the full press release and financial tables, visit Vestis Corporation's official website .
