UniFirst Corporation (NYSE:UNF) Q3 2023 Earnings Conference Call June 28, 2023 9:00 AM ET
Company Participants
Steven Sintros - President and Chief Executive Officer
Shane O'Connor - Executive Vice President and Chief Financial Officer
Conference Call Participants
Andrew Wittmann - Robert W. Baird
Sam Karlov - William Blair
Andrew Steinerman - JPMorgan
Kartik Mehta - Northcoast Research
Joshua Chan - UBS
Operator
Greetings and welcome to the UniFirst Corp Third 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]
I would now like to turn the conference over to Steven Sintros, President and CEO. Please go ahead.
Steven Sintros
Thank you and good morning. I'm Steven Sintros, UniFirst's President and Chief Executive Officer. Joining me today is Shane O'Connor, Executive Vice President and Chief Financial Officer. We'd like to welcome you to the UniFirst Corporation conference call to review our third quarter results for fiscal year 2023. 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 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. For more information, please refer to the discussion of these risk factors in our most recent Form 10-K and 10-Q filings with the Securities and Exchange Commission.
We are pleased with our strong top line performance in the quarter and continue to be excited about a number of key areas of investment in our company. As always, I want to thank our over 14,000 team partners, who continue to always deliver for each other and our customers as we strive towards our vision of being universally recognized as the best service provider in our industry.
Profits in the quarter compared to our expectations in our Core Laundry operations were negatively impacted by significantly higher healthcare claims than we had forecasted, driven primarily by one very large claim as well as expenses in the quarter related to a legal matter.
In addition to the impact of these discrete items in the quarter, the margins of the Core Laundry operation continue to be pressured by higher operational cost, which are being impacted by the inflationary environment.