UniFirst Corp. (NYSE:UNF) Q1 2018 Earnings Conference Call - Preliminary Transcript
Jan 03, 2018 • 10:00 am ET
Welcome to the UniFirst Corporations First Quarter Earnings Call. During the presentation all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. (Operator Instructions). As a reminder this conference is being recorded today Wednesday, January 3, 2018.I would now like to turn the conference over to Steven Sintros, President and Chief Executive Officer. Please go ahead, sir.
Steven S. Sintros
Thank you and good morning. I'm Steven Sintros, UniFirst's President and Chief Executive Officer. I'd like to welcome you all to UniFirst Corporation's conference call to review our first quarter results for fiscal 2018 and to discuss our expectations going forward. This call will be on a listen-only mode until I complete my prepared remarks.
Joining me today is Shane O'Connor our newly hired Chief Financial Officer. Shane has rejoined UniFirst after leaving to take a Chief Financial Officer role at another company a little over a year ago. As this is just his second day back at UniFirst he will be in more of an observer role today rather than a participant, but I wanted to introduce him and let everyone know we were thrilled to have him back at UniFirst.
Before I go any further I would like to give a brief disclaimer. This conference call may contain forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties. The words anticipate, optimistic, believe, estimate, expect, intend and similar expressions that indicate future events and trends identify forward-looking statements.Actual future results may differ materially from those anticipated depending on a variety of risk factors. I refer you to our discussion of these risk factors in our most recent 10-Q and 10-K filings with the Securities and Exchange Commission.
And now will provide an overview of our quarterly results. I'm pleased to report that our first quarter revenues set a new record for UniFirst at 415.8 million up 7.7% from the same quarter in the prior year. All of our operating segments contributed to the strong growth. Net income for the quarter was 34.2 million or $1.67 per diluted share up from 28.2 million of net income or $1.38 per diluted share reported for last year's first quarter.
During our first quarter, we adopted Accounting Standards Update 2016-9, improvements to employee share based payment accounting. Under this ASU, excess tax benefits and deficiencies associated with employee share based payments are no longer recognized as additional paid-in capital on the balance sheet, but instead recognize directly to income tax expense or benefit in the income statement in the reporting period in which they occur.
Other financial statement items impacted include share based compensation expense and the computation of fully diluted shares outstanding. The net benefit in our first quarter to EPS from the adoption of this ASU was $0.07 a share consisting of a reduction of income tax expense of $0.08 partially offset by $0.01 negative impact from an increase in the number of