Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
COMMON STOCK INFORMATION
Our Common Stock trades on the New York Stock Exchange under the symbol “UNF”, while our Class B Common Stock is not publicly traded.
The approximate number of shareholders of record of our Common Stock and Class B Common Stock as of October 22, 2020 was 52 and 33, respectively. We believe that the number of beneficial owners of our Common Stock is substantially greater than the number of record holders because a large portion of our Common Stock is held of record in broker “street names”.
The following table sets forth information concerning our equity compensation plans as of August 29, 2020:
Equity Compensation Plan Information
Plan category
Number of securities
to be issued upon
exercise of
outstanding
options, warrants
and rights (1)
Weighted average
exercise price
of outstanding
options, warrants
and rights (2)
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
referenced in
column (a))
(a)
(b)
(c)
Equity compensation plans approved by
security holders
552,853
$
132.14
311,055
Equity compensation plans not approved by
security holders
—
N/A
—
Total
552,853
$
132.14
311,055
(1)
Includes shares of Common Stock issuable upon vesting of restricted stock units.
(2)
Restricted stock units are not included in the weighted-average exercise price calculation because there is no exercise price associated with restricted stock units.
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Stock Performance Graph
The graph below compares the cumulative five-year total return on UniFirst Corporation's Common Stock with the Russell 2000 Index and a customized peer group of three companies that includes: Aramark, Cintas Corporation and Rollins, Inc. The graph assumes an investment of $100 in each of UniFirst Corporation’s Common Stock, the Russell 2000 Index, and the performance through August 31, 2020, assuming the reinvestment of dividends.
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ITEM 6. SELECTED FINANCIAL DATA
The following selected consolidated financial data should be read in conjunction with our Consolidated Financial Statements and Notes to Consolidated Financial Statements included in Item 8.
The selected consolidated balance sheet data set forth below as of August 29, 2020 and August 31, 2019 and the selected consolidated income statement data for each of the three years in the period ended August 29, 2020 are derived from our audited Consolidated Financial Statements included in this Annual Report on Form 10-K. All other selected consolidated financial data set forth below are derived from our audited financial statements not included in this Annual Report on Form 10-K. Current accounting guidance requires the income per share for each class of common stock to be calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on their respective dividend rights. Our Common Stock has a 25% dividend preference to our Class B Common Stock. The Class B Common Stock, which has ten votes per share as opposed to one vote per share for the Common Stock, is not freely transferable but may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class B Common Stock.
Five Year Financial Summary
UniFirst Corporation and Subsidiaries
Fiscal Year Ended August
(In thousands, except per share data)
2020 (1)
2019 (2)
2018 (3)
2017 (4)
2016 (5)
Selected Balance Sheet Data:
Total assets
$
2,199,027
$
2,047,320
$
1,843,386
$
1,819,128
$
1,702,007
Notes payable and long-term debt
$
—
$
—
$
—
$
—
$
—
Shareholders’ equity
$
1,741,129
$
1,641,230
$
1,464,967
$
1,453,192
$
1,364,781
Selected Income Statement Data:
Revenues
$
1,804,159
$
1,809,376
$
1,696,489
$
1,590,958
$
1,468,046
Depreciation and amortization
$
104,697
$
103,333
$
96,662
$
88,879
$
81,612
Operating income
$
172,729
$
232,008
$
182,376
$
110,283
$
201,160
Other income, net
$
(5,159
)
$
(5,916
)
$
(4,870
)
$
(4,840
)
$
(2,211
)
Provision for income taxes
$
42,118
$
58,790
$
23,351
$
44,927
$
78,345
Net income
$
135,770
$
179,134
$
163,895
$
70,196
$
125,026
Income per share:
Basic—Common stock
$
7.46
$
9.77
$
8.66
$
3.63
$
6.51
Basic—Class B Common Stock
$
5.97
$
7.81
$
6.91
$
2.91
$
5.21
Diluted—Common stock
$
7.13
$
9.33
$
8.21
$
3.44
$
6.17
Dividends per share:
Common stock
$
1.00
$
0.45
$
0.30
$
0.15
$
0.15
Class B Common Stock
$
0.80
$
0.36
$
0.24
$
0.12
$
0.12
(1)
During fiscal 2020, we purchased 0.1 million shares pursuant to a share repurchase program authorized by our Board of Directors. This did not benefit our earnings per share during fiscal 2020.
(2)
During fiscal 2019, we purchased 0.2 million shares pursuant to a share repurchase program authorized by our Board of Directors. This benefitted the Company’s diluted income per share by $0.05 in fiscal 2019.
During fiscal 2017, we recorded a pre-tax non-cash impairment charge of $55.8 million once it was determined that it was not probable that a CRM system that was being developed would be completed and placed into service. During fiscal 2020, we entered into a settlement agreement with our lead contractor for the version of the CRM system with respect to which we recorded the impairment charge. As part of the settlement agreement, we recorded a total gain of $21.1 million as a reduction of selling and administrative expenses, which includes our receipt of a one-time cash payment in the amount of $13.0 million as well as the forgiveness of amounts previously due the contractor. We also received hardware and related maintenance service with a fair value of $0.8 million as part of the settlement. This gain, net of tax, benefitted our diluted income per share by $0.81 in fiscal 2020.
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( 3 )
Our fiscal 2018 results include the impact of the Tax Cuts and Jobs Act enacted on December 22, 2017, which resulted in a benefit to our provision for income taxes of $20.1 million ($1.01 per diluted share) from the remeasurement of deferred tax balances and the one-time transition tax. Our fiscal 2018 results also included a $7.2 million pre-tax one-time cash bonus to our employees to share with them the benefits received from recent U.S. tax reform. Such bonus expense, net of tax, reduced our diluted earnings per share by $0.25 in fiscal 2018 .
On March 27, 2018, we repurchased 1.105 million shares of Class B Common Stock and 0.073 million shares of Common Stock for a combined $146.0 million in a private transaction with the Croatti family at a per share price of $124.00, which benefited our diluted income per share by $0.20 in fiscal 2018.
( 4 )
Our fiscal 2017 results included an impairment charge of capitalized costs as part of our ongoing CRM systems project totaling $55.8 million before tax. This loss, net of tax reduced our diluted earnings per share by $1.68 in fiscal 2017. Our fiscal 2017 results also include a $5.4 million pre-tax compensation expense as a result of the accelerated vesting of certain shares of restricted stock upon the death of our former Chief Executive Officer, Ronald Croatti, during the third quarter of fiscal 2017. This expense, net of tax, reduced our diluted earnings per share by $0.16.
( 5 )
In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain, net of tax, increased our diluted earnings per share by $0.48.
Our fiscal year ends on the last Saturday in August. For financial reporting purposes, fiscal 2019 consisted of 53 weeks and fiscal 2020, 2018, 2017 and 2016 consisted of 52 weeks each.
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