G&K SERVICES INC

CIK:0000039648|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 26, 2015	Dec. 31, 2016	Dec. 26, 2015
Income Statement [Abstract]
Rental and direct sale revenue	$ 244,145	$ 243,060	$ 485,165	$ 480,231
Cost of rental and direct sale revenue	159,236	160,030	316,599	316,118
Gross Margin	84,909	83,030	168,566	164,113
Pension settlement charge	0	0	6,010	0
Merger-related expenses	10,067	0	16,123	0
Selling and administrative	54,029	51,546	107,019	104,751
Income from Operations	20,813	31,484	39,414	59,362
Interest expense	2,065	1,656	4,026	3,283
Income before Income Taxes	18,748	29,828	35,388	56,079
Provision for income taxes	9,486	11,335	16,076	21,323
Net Income	$ 9,262	$ 18,493	$ 19,312	$ 34,756
Basic Earnings per Common Share (in dollars per share)	$ 0.47	$ 0.93	$ 0.98	$ 1.74
Diluted Earnings per Common Share (in dollars per share)	$ 0.46	$ 0.92	$ 0.96	$ 1.72
Weighted average shares outstanding, basic (in shares)	19,465	19,665	19,459	19,696
Weighted average shares outstanding, diluted (in shares)	19,826	19,870	19,810	19,936
Dividends Declared per Share (in dollars per share)	$ 0.39	$ 0.37	$ 0.78	$ 0.74

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2016	Dec. 26, 2015
Operating Activities:
Net income	$ 19,312	$ 34,756
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization	18,241	17,242
Non-cash pension settlement charge	6,010	0
Deferred income taxes	3,740	6,183
Share-based compensation	3,604	3,399
Changes in operating items, exclusive of acquisitions and divestitures -
Accounts receivable	(6,607)	(3,758)
Inventory and merchandise in service	(1,699)	(4,168)
Accounts payable	9,530	(2,254)
Other current assets and liabilities	(1,451)	10,357
Other	1,367	(6,109)
Net cash provided by operating activities	52,047	55,648
Investing Activities:
Capital expenditures	(14,980)	(22,933)
Acquisition of business	0	(2,146)
Net cash used for investing activities	(14,980)	(25,079)
Financing Activities:
Repayments of long-term debt	0	(75,168)
(Repayments of) proceeds from revolving credit facilities, net	(14,600)	86,177
Cash dividends paid	(15,385)	(14,797)
Proceeds from issuance of common stock under stock option plans	1,028	731
Repurchase of common stock	0	(15,020)
Shares withheld for taxes under equity compensation plans	(1,860)	(2,992)
Excess tax benefit from share-based compensation	0	1,911
Net cash used for financing activities	(30,817)	(19,158)
Effect of Foreign Exchange Rate Changes on Cash	(665)	(1,197)
Increase in Cash and Cash Equivalents	5,585	10,214
Cash and Cash Equivalents:
Beginning of period	24,279	16,235
End of period	29,864	26,449
Cash paid for -
Interest	3,734	3,274
Income taxes	7,371	1,842
Supplemental Non-cash Investing Information:
Capital expenditures not yet paid and included in accounts payable	$ 763	$ 3,031

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Jul. 02, 2016
Current Assets
Cash and cash equivalents	$ 29,864	$ 24,279
Accounts receivable, less allowance for doubtful accounts of $4,260 and $3,578	108,700	102,657
Inventory	36,525	34,077
Merchandise in service, net	130,915	131,801
Other current assets	15,757	20,539
Total current assets	321,761	313,353
Property, plant and equipment, less accumulated depreciation of $406,430 and $397,209	223,777	228,642
Goodwill	322,371	324,520
Other noncurrent assets	56,539	55,022
Total assets	924,448	921,537
Current Liabilities
Accounts payable	53,149	44,792
Accrued expenses and other current liabilities	65,849	72,736
Current maturities of long-term debt	22,000	0
Total current liabilities	140,998	117,528
Long-term debt, net of current maturities	194,548	231,148
Deferred income taxes	79,209	68,895
Other noncurrent liabilities	104,384	114,426
Total liabilities	519,139	531,997
Stockholders' Equity
Common stock, $0.50 par value	9,865	9,828
Additional paid-in capital	87,524	84,804
Retained earnings	328,306	323,775
Accumulated other comprehensive loss	(20,386)	(28,867)
Total stockholders' equity	405,309	389,540
Total liabilities and stockholders' equity	$ 924,448	$ 921,537