UniFirst Corp. (NYSE:UNF) Q2 2020 Earnings Conference Call - Final Transcript

Apr 01, 2020 • 09:00 am ET

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UniFirst Corp. (NYSE:UNF) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Second Quarter Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Steven Sintros, President and CEO. Please go ahead.

Executive
Steven S. Sintros

Thank you and good morning. I'm Steven Sintros, UniFirst's President and Chief Executive Officer. Joining me today is Shane O'Connor, Senior Vice President and Chief Financial Officer. We'd like to welcome you to UniFirst Corporation's conference call to review our second quarter results for fiscal year 2020. This call will be on a listen-only mode until we complete our prepared remarks, but first a brief disclaimer.

This conference call may contain forward-looking statements that reflect the company's 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. For more information, please refer to the discussion of these risk factors in our most recent 10-K filing with the Securities and Exchange Commission, as well as the Form 10-Q that we will be filing next week.

I want to start the call by saying that our thoughts go out to all those impacted by the coronavirus pandemic. This is an unprecedented time for our company, the country and the world and first and foremost, our thoughts are for the safety of all those dealing with the impact of this virus. As a company that services so many essential businesses that are critical to keeping our communities safe and operating, I also want to sincerely thank UniFirst's thousands of employee Team Partners, who are doing everything they can to continue servicing those customers during these uncertain times. We continue to be up and running as a business and are focused on working through the practical challenges of operating in this environment. Our top priority is working to keep our employee Team Partners safe, while they work to continue servicing our essential customers who remain open.

Customer closures have begun to accelerate over the last two weeks, but it is still too early to determine where we are in the cycle of customer closures, not to mention how long they will persist and at what level they will return. Due to the uncertainty regarding the overall severity and duration of the pandemic and it's ultimate impact on our business, we are not providing guidance for the remainder of fiscal 2020 at this time. Although we are not able to provide guidance or quantify the future impact, we clearly expect the disruption related to this pandemic will have a negative impact on our revenues and profitability. We also expect that, if sustained for an extended period, the sharp decline in oil prices as well as the decline in the Canadian exchange rate will