<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934. For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 For the transition period from ___________ to ___________
Commission file number: 1-8504
A. Full title of the plan:
UNIFIRST CORPORATION PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
UNIFIRST CORPORATION
68 Jonspin Road
Wilmington, MA 01887
<PAGE> 2
A. Financial Statements: Audited financial statements of UniFirst
Corporation Profit Sharing Plan.
1. Report of Independent Public Accountants
2. Statements of Net Assets Available for Benefits
3. Statements of Changes in Net Assets Available for Benefits
4. Notes to Financial Statements
5. Supplementary Information:
Schedule I - Schedule of Assets Held for Investment Purposes
Schedule II - Schedule of Reportable Transactions
B. Exhibits:
1. Exhibit 23: Consent of Arthur Andersen LLP, Independent
Public Accountants.
<PAGE> 3
ARTHUR ANDERSEN LLP
UNIFIRST CORPORATION
PROFIT SHARING PLAN
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1994 AND 1993
TOGETHER WITH AUDITOR'S REPORT
<PAGE> 4
ARTHUR ANDERSEN LLP
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Trustees of
The UniFirst Corporation Profit Sharing Plan:
We have audited the accompanying statements of net assets available for
benefits of the UniFirst Corporation Profit Sharing Plan as of December 31,
1994 and 1993, and the related statement of changes in net assets available for
benefits for the year ended December 31, 1994. These financial statements and
the schedules referred to below are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements and schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1994 and 1993, and the changes in its net assets available for
benefits for the year ended December 31, 1994, in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated, in
all material respects, in relation to the basic financial statements taken as a
whole.
/s/ Arthur Andersen LLP
Boston, Massachusetts
May 19, 1995
<PAGE> 5
UNIFIRST CORPORATION
PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS
AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
1994 1993
<S> <C> <C>
ASSETS:
Investments, at fair market value:
Bank cash management trust $ - $ 23,162,832
Common stocks - 7,470,165
Mutual funds 23,687,611 6,031,764
Real Estate 1,542,800 2,358,457
Member loans 2,411,637 2,103,438
Short-term investments 13,548,104 2,652,267
- -------------------------------------------------------------------------------------------------------------
41,190,152 43,778,923
- -------------------------------------------------------------------------------------------------------------
Employer contribution receivable 3,200,000 -
Cash and cash equivalents 1,048,334 -
Other assets 6,333 23,911
- -------------------------------------------------------------------------------------------------------------
4,254,667 23,911
- -------------------------------------------------------------------------------------------------------------
45,444,819 43,802,834
- -------------------------------------------------------------------------------------------------------------
LIABILITIES:
Accounts payable and accrued liabilities 401 145,660
- -------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 45,444,418 $ 43,657,174
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 6
UNIFIRST CORPORATION
PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED
<TABLE>
<CAPTION>
DECEMBER 31,
1994
<S> <C>
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year $ 43,657,174
- -------------------------------------------------------------------------------------------------------------
Investments income, net of expenses:
Interest and dividends 2,387,846
Net realized and unrealized losses (2,444,127)
Other 49,224
- -------------------------------------------------------------------------------------------------------------
(7,057)
- -------------------------------------------------------------------------------------------------------------
Contributions:
Employer 3,200,000
Members 1,828,581
- -------------------------------------------------------------------------------------------------------------
5,028,581
- -------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS 5,021,524
- -------------------------------------------------------------------------------------------------------------
Benefits paid to members 3,208,563
Administrative expenses 25,717
- --------------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS 3,234,280
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 45,444,418
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 7
UNIFIRST CORPORATION PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Accounting
The accompanying financial statements are prepared using the accrual
basis of accounting with all assets of the UniFirst Corporation Profit
Sharing Plan ("the Plan") stated at fair market value. Fair market
value of real estate is based on independent appraisals.
(b) Federal Income Taxes
On July 28, 1994, the Internal Revenue Service issued a favorable
determination letter that the Plan, as restated to qualify under the
provisions of the Tax Reform Act of 1986, continues to qualify in form
under Section 401 of the Internal Revenue Code ("Code"). The Trust
which holds Plan assets accordingly continues to be qualified for
exempt status under Code Section 501(a).
UniFirst Corporation, the Plan sponsor, believes that operations of
the Plan are in compliance with its terms, so that all qualification
requirements of the Code, including requirements with respect to the
employee deferral feature of Code Section 401(k), are being satisfied.
See Note 5.
Due to the qualified status of the Plan and its related Trust under
Code Sections 401 and 501 respectively, members of the Plan are not
taxed currently when amounts, including UniFirst contributions, member
salary deferrals, forfeitures from non-vested members, and investment
gains, are allocated to their Plan accounts. Similarly, realized
investment gains of Plan assets are not taxable to the Trust. Members
who receive distributions are subject to special tax treatment on
distributions pursuant to Code Sections 72 and 401.
(c) Administrative Expenses
It is the current policy of UniFirst Corporation to assume certain
administrative costs of the Plan.
2. PLAN DESCRIPTION
(a) General Provisions
The Plan covers all full-time employees not covered under a collective
bargaining agreement. Employees become eligible to participate in the
Plan on the January 1st which is at least six months after their
original date of hire.
<PAGE> 8
UNIFIRST CORPORATION PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
2. PLAN DESCRIPTION (CONTINUED)
(a) General Provisions (continued)
The Plan is administered by two Trustees who are appointed by the
Board of Directors of UniFirst Corporation. The Trustees have adopted
the policy of using professional investment advisors, whenever
possible, to select Plan assets and make investment decisions.
(b) Employer Contribution
The amount of the annual contribution made by UniFirst Corporation to
the Plan is determined annually by the Board of Directors of the
Company, but may not exceed the maximum allowable under the Internal
Revenue Code.
(c) Member Contributions
Member contributions through compensation reduction are allowed. The
amount of compensation reduction is subject to certain limits in
effect under Section 401(k) of the Internal Revenue Code.
(d) Members' Accounts and Vesting
Members' non-Section 401(k) account balances become 100% vested after
the fifth year of service. In the event of death, retirement or
permanent disability, any member's account becomes fully vested.
Members' Section 401(k) balances vest immediately.
Annual employer contributions and forfeitures of unvested amounts from
terminating members are allocated to members' account balances based
on members' covered compensation. Income from investments, realized
gains and losses, and unrealized market appreciation or depreciation
of investments are allocated to members' account balances based on the
amount of the individual members' balances during the Plan year.
(e) Payment of Benefits
On retirement, death, disability, or termination of service, a
participant may elect to receive a lump sum distribution equal to
their vested account balance, a life annuity, or an installment payout
subject to certain Plan provisions.
<PAGE> 9
UNIFIRST CORPORATION PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
2. PLAN DESCRIPTION (CONTINUED)
(f) Loans to Plan Members
The Plan allows for loans to members up to the lesser of $50,000 or
50% of the member's vested account balance with a limitation based
upon an employee's compensation.
(g) Termination of Plan
In the event of termination of the Plan, the members and beneficiaries
of deceased members shall have a fully vested interest in the amount
credited to their respective accounts at the time of such termination.
3. SIGNIFICANT INVESTMENTS
The fair market value of additional significant investments that
represents 5% or more of the Plan's net assets not already
specifically identified in these financial statements at December 31,
1994 and 1993 is as follows:
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Bank Cash Management Trust:
--------------------------
First Union Funds Fixed-Income Portfolio - $ 5,695,611
First Union Funds Managed Bond Portfolio - 5,762,399
First Union Funds Value Portfolio - 4,304,803
Stable Investment Fund - 5,623,671
Other - 1,776,348
- -------------------------------------------------------------------------------------------------------
Total Bank Cash Management Trust - $ 23,162,832
- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
UNIFIRST CORPORATION PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
3. SIGNIFICANT INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Mutual Funds:
------------
Vanguard Fixed Income Securities Fund
(Short-Term Federal Portfolio) $ - $ 6,031,764
Merrill Lynch Global Allocation Fund 7,181,598 -
Merrill Lynch Capital Fund 7,224,556 -
Merrill Lynch Basic Value Fund 7,463,944 -
Merrill Lynch Special Value Fund 1,817,513 -
- -------------------------------------------------------------------------------------------------------------
Total Mutual Funds $ 23,687,611 $ 6,031,764
- -------------------------------------------------------------------------------------------------------------
Real Estate Located in Texas:
----------------------------
Houston $ 865,000 $ 1,000,000
San Antonio, Vicinity of the University of Texas 67,200 447,057
Beaumont, The Crossing Center 397,600 406,400
New Braunfels - 327,000
San Antonio, Bulverde Road and Smithson
Valley Road 213,000 178,000
- -------------------------------------------------------------------------------------------------------------
Total Real Estate Located in Texas $ 1,542,800 $ 2,358,457
- -------------------------------------------------------------------------------------------------------------
Short-Term Investments:
----------------------
Fidelity USA Account $ 7,010 $ 2,328,853
Merrill Lynch Retirement Preservation Trust 13,541,005 -
Other 89 323,414
- -------------------------------------------------------------------------------------------------------------
Total Short-Term Investments $ 13,548,104 $ 2,652,267
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 11
UNIFIRST CORPORATION PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
4. NET REALIZED AND UNREALIZED LOSSES
During the year ended December 31, 1994, the Plan's investments,
including investments bought, sold and held during the year, decreased
in value as follows:
<TABLE>
<CAPTION>
1994
----
<S> <C>
BANK CASH MANAGEMENT TRUST $ (790,760)
COMMON STOCKS (62,839)
MUTUAL FUNDS (1,406,512)
REAL ESTATE (169,124)
OTHER ASSETS (14,892)
- -------------------------------------------------------------------------------------------------------------------
$ (2,444,127)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
5. SUBSEQUENT EVENT
Effective January 1, 1995, the Plan was restated. Among other things,
the restated Plan now permits participants to self-direct the
investment of all their 401(k) employee contribution account, one-half
of their employer contribution account, and all of their rollover
accounts (if any). Participants can select among six different
Merrill Lynch investment funds and are also permitted to invest in
UniFirst common stock.
<PAGE> 12
UNIFIRST CORPORATION
PROFIT SHARING PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
Fair
Market
Cost Value
---- -----
<S> <C> <C>
Mutual Funds:
* Merrill Lynch Global Allocation Fund $ 7,631,973 $ 7,181,598
* Merrill Lynch Capital Fund 7,631,973 7,224,556
* Merrill Lynch Basic Value Fund 7,631,973 7,463,944
* Merrill Lynch Special Value Fund 1,907,991 1,817,513
- ------------------------------------------------------------------------------------------------------------
Total Mutual Funds 24,803,910 23,687,611
- ------------------------------------------------------------------------------------------------------------
Real Estate:
Houston 3,737,438 865,000
San Antonio, Vicinity of the University of Texas 105,510 67,200
Beaumont, The Crossing Center 396,096 397,600
San Antonio, Bulverde Road and Smithson
Valley Road 649,118 213,000
- ------------------------------------------------------------------------------------------------------------
Total Real Estate 4,888,162 1,542,800
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
*Member Loans 2,411,637 2,411,637
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Short-Term Investments:
* Merrill Lynch Retirement Reservation Trust 13,541,005 13,541,005
Fidelity USA Account 7,010 7,010
Short-Term Investments 89 89
- ------------------------------------------------------------------------------------------------------------
Total Short-Term Investments 13,548,104 13,548,104
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $ 45,651,813 $ 41,190,152
- ------------------------------------------------------------------------------------------------------------
</TABLE>
* Represents a party-in-interest
<PAGE> 13
- -------------------------------------------------------------------------------
UNIFIRST CORPORATION PROFIT SHARING PLAN
Item 27(d)-SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Identity of Party Description Number of Units Purchase
Involved of Asset Purchases Purchased Price
-------- -------- --------- --------- -----
<S> <C> <C> <C> <C>
Fidelity Investments USA Account 101 4,005,947 $4,005,947
* First Union Cash Management Temporary Investments
Trust Valiant General Fund 1 23,132,008 23,132,008
* First Union Cash Management Common Trust Fund-Money Market
Trust Stable Investment Fund 1 9,919 174,200
* First Union Cash Management Mutual Funds-Fixed Taxable
Trust First Union Funds Managed Bond 19 33,885 336,052
* First Union Cash Management Mutual Funds-Fixed Taxable
Trust First Union Funds Fixed Income
Portfolio Trust 20 40,330 406,704
* First Union Cash Management Mutual Funds-Equity
Trust First Union Funds Value Portfolio 13 6,375 112,801 **
* First Union Cash Management Mutual Funds-Equity
Trust First Union Funds Value Portfolio - - -
Vanguard Vanguard Fixed Income Securities Fund 11 24,422 244,919
William Blair William Blair Ready Reserves Fund - - -
William Blair William Blair Ready Reserves Fund - - -
William Blair William Blair Ready Reserves Fund 82 9,299,754 9,299,754 **
</TABLE>
<TABLE>
<CAPTION>
Value of Asset on
Identity of Party Number of Units Selling Cost of Transaction Net Gain
Involved Sales Sold Price Asset Date (Loss)
-------- ----- ---- ----- ----- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Fidelity Investments 873 6,327,791 $6,327,791 $6,327,791 $6,327,791 $ -
* First Union Cash Management
Trust 1 23,132,097 23,132,097 23,132,097 23,132,097 -
* First Union Cash Management
Trust 1 331,798 5,980,727 4,217,817 5,797,871 182,856
* First Union Cash Management
Trust 1 584,783 5,532,051 5,907,417 6,098,451 (566,400)
* First Union Cash Management
Trust
1 586,410 5,676,444 5,947,919 6,102,315 (425,871)
* First Union Cash Management
Trust 2 250,550 4,435,801 4,141,082 4,417,604 18,197
* First Union Cash Management
Trust 1 235,294 4,164,701 3,889,386 4,148,638 16,063
Vanguard 1 607,765 5,986,485 6,261,680 6,276,683 (290,198)
William Blair 1 3,328,807 3,328,807 3,328,807 3,328,807 -
William Blair 1 2,361,843 2,361,843 2,361,843 2,361,843 -
William Blair 26 9,528,892 9,528,892 9,528,892 9,528,892 -
Schedule 2
Plan #001
EIN-04-2103460
</TABLE>
* Represents a Party-in-interest transaction.
** This series of transactions also includes any single reportable
transactions.
See accompanying notes to financial statements
<PAGE> 14
<TABLE>
<CAPTION>
Identity of Party Description Number of Units Purchase
Involved of Asset Purchases Purchased Price
-------- -------- --------- --------- -----
<S> <C> <C> <C> <C>
* Merrill Lynch Merrill Lynch Retirement
Preservation Trust 1 8,104,110 8,104,110
* Merrill Lynch Merrill Lynch Retirement
Preservation Trust ** 7 13,541,005 13,541,005
* Merrill Lynch Merrill Lynch Global
Allocation Fund 1 357,600 4,630,920
* Merrill Lynch Merrill Lynch Global
Allocation Fund ** 8 587,212 7,631,973
* Merrill Lynch Merrill Lynch Capital Fund 1 171,199 4,630,920
* Merrill Lynch Merrill Lynch Capital Fund ** 8 281,111 7,631,973
* Merrill Lynch Merrill Lynch Basic Value Fund 1 203,826 4,630,920
* Merrill Lynch Merrill Lynch Basic Value Fund ** 8 333,957 7,631,973
</TABLE>
<TABLE>
<CAPTION>
Value of Asset on
Identity of Party Description Number of Units Selling Cost of Transaction Net Gain
Involved of Asset Sales Sold Price Asset Date (Loss)
-------- -------- ----- ----- ----- ----- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C>
* Merrill Lynch Merrill Lynch Retirement
Preservation Trust - - - - - -
* Merrill Lynch Merrill Lynch Retirement
Preservation Trust - - - - - -
* Merrill Lynch Merrill Lynch Global
Allocation Fund - - - - - -
* Merrill Lynch Merrill Lynch Global
Allocation Fund - - - - - -
* Merrill Lynch Merrill Lynch Capital Fund - - - - - -
* Merrill Lynch Merrill Lynch Capital Fund - - - - - -
* Merrill Lynch Merrill Lynch Basic Value Fund - - - - - -
* Merrill Lynch Merrill Lynch Basic Value Fund - - - - - -
</TABLE>
See accompanying notes to financial statements.
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Trustees of the UniFirst Corporation Profit Sharing Plan have duly caused
this annual report to be signed on its behalf by the undersigned, thereunto
duly authorized.
UNIFIRST CORPORATION PROFIT
SHARING PLAN
Date: June 30, 1995 By: /s/ RONALD D. CROATTI
-----------------------------------
Ronald D. Croatti,
Trustee
By: /s/ JOHN B. BARTLETT
-----------------------------------
John B. Bartlett,
Trustee
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in the Registration Statement dated June 30, 1995 filed on Form S-8
of our report dated May 19, 1995 included in UniFirst Corporation Profit
Sharing Plan's Form 11-K for the year ended December 31, 1994 and to all
references to our Firm included in the Registration Statement dated June 30,
1995.
Arthur Andersen LLP
Boston, Massachusetts
June 30, 1995
