Aramark Reports First Quarter Earnings
YEAR-OVER-YEAR SUMMARY
-
Revenue +
3% ; Organic Revenue +5% - Highest revenue for any quarter in Global FSS history
-
Foodservice revenue +
5% ; Foodservice Organic revenue +6%
-
Operating Income +
30% 1; Adjusted Operating Income (AOI) +13% 2- Record AOI for a first quarter in Global FSS history
- Operating Income margin +100 bps1; AOI margin +40 bps2
-
GAAP EPS +
264% 1 to$0.39 25% 2 to$0.51 - Results reflected execution of profitable growth strategies across organization
-
Expanded Global Supply Chain Footprint; Increased Purchasing Scale
-
Completed GPO acquisition in
Europe , increasing supply chain spend by$500 million -
Total Global Supply Chain spend exceeds
$20.5 billion
-
Completed GPO acquisition in
-
Commenced Share Repurchases; Returned Capital to Shareholders
-
Repurchased shares as part of the Company’s
$500 million - Testament to the strong confidence in the business and the value-creating opportunities ahead
-
Repurchased shares as part of the Company’s
SUBSEQUENT TO FIRST QUARTER
-
Extended Debt Maturities; Further Enhanced Financial Flexibility
-
Issued notice to fully repay
$552 million - New term loans will be utilized to repay Senior Notes and refinance certain term loan maturities to 2030
-
Issued notice to fully repay
"We are off to a great start in fiscal ‘25 as we remain committed to our strategic priorities: driving strong profitable top-line growth from base business and net new business; accelerating AOI growth from increased volume, supply chain efficiencies, and cost discipline; and leveraging our capital structure capabilities—most recently with our oversubscribed debt refinancing and repurchasing Aramark shares," said John Zillmer, Aramark’s Chief Executive Officer.
"Across the organization, we are focused and motivated to achieve the financial performance targets we have set for ourselves. I want to thank our employees for their tireless dedication to these goals, which I am confident we’ll achieve together.”
| 1 | Prior year Operating Income, Operating Income Margin, and GAAP EPS included expenses associated with the completion of the spin-off. |
| 2 | On a constant currency basis |
FIRST QUARTER RESULTS
Consolidated revenue was
|
Revenue |
|||||
|
Q1 '25 |
Q1 '24 |
Change (%) |
Organic Revenue Change (%) |
||
FSS United States |
|
|
3 % |
* |
3 % |
* |
FSS International |
1,251 |
1,195 |
5 % |
|
10 % |
|
Total Company |
|
|
3 % |
|
5 % |
|
*The Change (%) and Organic Revenue Change (%) reflected the prior year exit of some lower margin Facilities accounts Difference between Change (%) and Organic Revenue Change (%) reflected the impact of currency translation May not total due to rounding |
||||||
-
FSS United States revenue growth was driven by 1) Business & Industry from higher participation rates, new client wins, and additional micro-market and vending services; 2) Education, primarily from Collegiate Hospitality, as a result of meal plan optimization; and 3) Corrections from strong new business wins—which more than offset the exit of Facilities accounts referenced above. The Facilities business would have experienced growth in the quarter without these account exits.
Foodservice revenue and Foodservice Organic revenue both increased5% compared to the prior year period. -
FSS International revenue growth was broad-based across all geographic regions, largely from ongoing base business growth and net new business performance—with the
U.K. ,Canada ,Chile , andIreland driving the increase. Revenue on a GAAP basis included the impact of currency translation.
Operating Income increased
|
Operating Income |
|
Adjusted Operating Income (AOI) |
|||||
|
Q1 '25 |
Q1 '24 |
Change (%) |
|
Q1 '25 |
Q1 '24 |
Change (%) |
Constant Currency Change (%) |
FSS United States |
|
|
|
|
|
|
|
|
FSS International |
54 |
46 |
|
|
59 |
54 |
|
|
Corporate |
(30) |
(54) |
|
|
(30) |
(25) |
(21)% |
(21)% |
Total Company |
|
|
|
|
|
|
|
|
May not total due to rounding |
||||||||
Year-over-year profitability growth resulted from the following segment performance:
- FSS United States experienced higher base business volume combined with the maturity of new business, supply chain productivity, and efficiencies in operational performance.
-
FSS International achieved higher base business volume and net new business, along with stronger supply chain economics, which more than offset reduced profit in
Spain from severe flooding in theValencia region that temporarily affected client operations. - Corporate primarily reflected expenses associated with the GPO acquisition and higher share-based compensation. Prior year GAAP results included spin-off related expenses.
CASH FLOW AND CAPITAL STRUCTURE
As expected, the first quarter experienced a cash outflow associated with the Company's seasonal business cadence, specifically related to Collegiate Hospitality. Aramark reported stronger cash flow compared to the prior year period with Net Cash used in operating activities improving approximately
At quarter-end, the Company had over
Aramark commenced repurchasing shares toward the end of the first quarter as part of its
Aramark initiated steps subsequent to quarter-end to extend debt maturities and further enhance financial flexibility, including:
-
Issued notice to fully repay
$552 million -
Completed a syndication process for
$1.4 billion $552 million
These actions are leverage neutral and at comparable interest rates.
DIVIDEND DECLARATION
The Company's Board of Directors approved a quarterly dividend of
BUSINESS UPDATE
Given the Company's success in both new account wins and client retention, Aramark continues to expect revenue growth to accelerate, particularly in the second half of the year, resuming double-digit top-line growth. The Company's new business pipeline across the organization remains significant, including in first-time outsourcing. Aramark is confident in its ability to achieve Net New of
In December 2024, Aramark completed the acquisition of the European-based GPO, Quantum Cost Consultancy Group, further strengthening the Company’s position as a leading global professional procurement and supply chain services provider. Quantum has managed spend of
OUTLOOK
The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth (constant currency), Adjusted Earnings per Share growth (constant currency), and Net Debt to Covenant Adjusted EBITDA ("Leverage Ratio") on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the effect of currency translation. The fiscal 2025 outlook reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission.
Aramark continues to anticipate its full-year performance for fiscal 2025 as follows:
($ in millions, except EPS) |
|
FY24 |
|
FY25* Outlook |
||
|
|
Reference Point |
|
Year-over-year Growth1 |
||
|
|
|
|
|
|
|
Organic Revenue |
|
|
|
+ |
— |
+ |
|
|
|
|
|
|
|
Adjusted Operating Income |
|
|
|
+ |
— |
+ |
|
|
|
|
|
|
|
Adjusted EPS |
|
|
|
+ |
— |
+ |
|
|
|
|
|
|
|
Leverage Ratio |
|
3.4x |
|
~3.0x |
||
Adjusted EPS Outlook does not include benefit from potential share repurchases |
||||||
* 53 week year |
||||||
1Constant Currency, except Leverage Ratio |
||||||
“We feel incredible momentum throughout the Company. Our new business pipeline is significant, and we are already having success this fiscal year in both new account wins and client retention,” Zillmer added. "We have the strategy, sales pipeline, and talent in place around the globe to capitalize on the many value-creating opportunities ahead. I firmly believe the best is yet to come.”
CONFERENCE CALL SCHEDULED
The Company has scheduled a conference call at 8:30 a.m. ET today to discuss its earnings and outlook. This call and related materials can be heard and reviewed, either live or on a delayed basis, on the Company's website, www.aramark.com, on the investor relations page.
About Aramark
Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 16 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.
Selected Operational and Financial Metrics
Adjusted Revenue (Organic)
Adjusted Revenue (Organic) represents revenue adjusted to eliminate the impact of currency translation.
Adjusted Operating Income
Adjusted Operating Income represents operating income adjusted to eliminate the impact of amortization of acquisition-related intangible assets; severance and other charges; spin-off related charges and other items impacting comparability.
Adjusted Operating Income (Constant Currency)
Adjusted Operating Income (Constant Currency) represents Adjusted Operating Income adjusted to eliminate the impact of currency translation.
Adjusted Net Income
Adjusted Net Income represents net income attributable to Aramark stockholders adjusted to eliminate the impact of amortization of acquisition-related intangible assets; severance and other charges; spin-off related charges; the effect of debt repayments on interest expense, net, and other items impacting comparability, less the tax impact of these adjustments. The tax effect for Adjusted Net Income for our
Adjusted Net Income (Constant Currency)
Adjusted Net Income (Constant Currency) represents Adjusted Net Income adjusted to eliminate the impact of currency translation.
Adjusted EPS
Adjusted EPS represents Adjusted Net Income divided by diluted weighted average shares outstanding.
Adjusted EPS (Constant Currency)
Adjusted EPS (Constant Currency) represents Adjusted EPS adjusted to eliminate the impact of currency translation.
Covenant Adjusted EBITDA
Covenant Adjusted EBITDA represents net income from continuing operations attributable to Aramark stockholders adjusted for interest expense, net; provision for income taxes; depreciation and amortization and certain other items as defined in our debt agreements required in calculating covenant ratios and debt compliance. We also use Net Debt for our ratio to Covenant Adjusted EBITDA, which is calculated as total long-term borrowings less cash and cash equivalents and short-term marketable securities.
Free Cash Flow
Free Cash Flow represents net cash (used in) provided by operating activities less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides useful information to investors because it represents a measure of cash flow available for distribution among all the security holders of the Company.
Foodservice Adjusted Revenue (Organic)
Foodservice Adjusted Revenue (Organic) represents foodservice revenue adjusted to eliminate the impact of currency translation.
We use Adjusted Revenue (Organic), Foodservice Adjusted Revenue (Organic), Adjusted Operating Income (including on a constant currency basis), Adjusted Net Income (including on a constant currency basis), Adjusted EPS (including on a constant currency basis), Covenant Adjusted EBITDA and Free Cash Flow as supplemental measures of our operating profitability and to control our cash operating costs. We believe these financial measures are useful to investors because they enable better comparisons of our historical results and allow our investors to evaluate our performance based on the same metrics that we use to evaluate our performance and trends in our results. These financial metrics are not measurements of financial performance under generally accepted accounting principles, or GAAP. Our presentation of these metrics has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. You should not consider these measures as alternatives to revenue, operating income, net income, earnings per share or net cash (used in) provided by operating activities, determined in accordance with GAAP. Adjusted Revenue (Organic), Foodservice Adjusted Revenue (Organic), Adjusted Operating Income, Adjusted Net Income, Adjusted EPS, Covenant Adjusted EBITDA and Free Cash Flow as presented by us may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations.
Explanatory Notes to the Non-GAAP Schedules
Amortization of Acquisition-Related Intangible Assets - adjustments to eliminate amortization expense recognized on acquisition-related intangible assets.
Severance and Other Charges - adjustments to eliminate severance expenses in the applicable period (
Spin-off Related Charges - adjustments to eliminate charges related to the Company's prior year spin-off of the Uniform segment, including accounting and legal related expenses, third party advisory costs and other costs. Adjustment also eliminates charitable contribution expense for the contribution of Vestis shares to a donor advised fund in order to fund charitable contributions (
Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of the Company's ongoing operational performance, primarily for expense for contingent consideration liabilities related to acquisition earn outs (
Effect of Debt Repayments on Interest Expense, net - adjustments to eliminate expenses associated with the repayment of borrowings, including the
Tax Impact of Adjustments to Adjusted Net Income - adjustments to eliminate the net tax impact of the adjustments to Adjusted Net Income calculated based on a blended
Effect of Currency Translation - adjustments to eliminate the impact that fluctuations in currency translation rates had on the comparative results by presenting the periods on a constant currency basis. Assumes constant foreign currency exchange rates based on the rates in effect for the prior year period being used in translation for the comparable current year period.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the heading "Outlook" and those related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, forward-looking statements can be identified by words such as "outlook," "aim," "anticipate," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time and actual results or outcomes may differ materially from those that we expected.
Some of the factors that we believe could affect or continue to affect our results include without limitation: unfavorable economic conditions; natural disasters, global calamities, climate change, pandemics, energy shortages, sports strikes and other adverse incidents; geopolitical events including, but not limited to, the ongoing conflict between
ARAMARK AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
(Unaudited) |
|||||||
(In Thousands, Except Per Share Amounts) |
|||||||
|
|
Three Months Ended |
|||||
|
|
December 27, 2024 |
|
December 29, 2023 |
|||
Revenue |
|
$ |
4,552,086 |
|
$ |
4,407,765 |
|
Costs and Expenses: |
|
|
|
|
|||
Cost of services provided (exclusive of depreciation and amortization) |
|
|
4,151,232 |
|
|
4,045,078 |
|
Depreciation and amortization |
|
|
113,204 |
|
|
105,544 |
|
Selling and general corporate expenses |
|
|
70,386 |
|
|
90,193 |
|
Total costs and expenses |
|
|
4,334,822 |
|
|
4,240,815 |
|
Operating income |
|
|
217,264 |
|
|
166,950 |
|
Interest Expense, net |
|
|
75,804 |
|
|
114,562 |
|
Income Before Income Taxes |
|
|
141,460 |
|
|
52,388 |
|
Provision for Income Taxes |
|
|
35,757 |
|
|
23,871 |
|
Net income |
|
|
105,703 |
|
|
28,517 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
84 |
|
|
(19 |
) |
Net income attributable to Aramark stockholders |
|
$ |
105,619 |
|
$ |
28,536 |
|
|
|
|
|
|
|||
Earnings per share attributable to Aramark stockholders: |
|
|
|
|
|||
Basic |
|
$ |
0.40 |
|
$ |
0.11 |
|
Diluted |
|
$ |
0.39 |
|
$ |
0.11 |
|
Weighted Average Shares Outstanding: |
|
|
|
|
|||
Basic |
|
|
264,882 |
|
|
262,053 |
|
Diluted |
|
|
268,690 |
|
|
264,287 |
|
|
|
|
|
|
|||
ARAMARK AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(In Thousands) |
||||||
|
|
|
|
|
||
|
|
December 27, 2024 |
|
September 27, 2024 |
||
Assets |
|
|
|
|
||
|
|
|
|
|
||
Current Assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
484,149 |
|
$ |
672,483 |
Receivables |
|
|
2,201,099 |
|
|
2,096,928 |
Inventories |
|
|
366,690 |
|
|
387,601 |
Prepayments and other current assets |
|
|
242,875 |
|
|
249,550 |
Total current assets |
|
|
3,294,813 |
|
|
3,406,562 |
Property and Equipment, net |
|
|
1,602,582 |
|
|
1,573,193 |
Goodwill |
|
|
4,713,625 |
|
|
4,677,201 |
Other Intangible Assets |
|
|
1,826,131 |
|
|
1,804,602 |
Operating Lease Right-of-use Assets |
|
|
677,095 |
|
|
638,659 |
Other Assets |
|
|
592,420 |
|
|
574,154 |
|
|
$ |
12,706,666 |
|
$ |
12,674,371 |
|
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
|
||
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
||
Current maturities of long-term borrowings |
|
$ |
942,833 |
|
$ |
964,286 |
Current operating lease liabilities |
|
|
53,886 |
|
|
54,163 |
Accounts payable |
|
|
1,104,769 |
|
|
1,394,007 |
Accrued expenses and other current liabilities |
|
|
1,395,367 |
|
|
1,801,754 |
Total current liabilities |
|
|
3,496,855 |
|
|
4,214,210 |
Long-Term Borrowings |
|
|
4,976,953 |
|
|
4,307,171 |
Noncurrent Operating Lease Liabilities |
|
|
247,244 |
|
|
241,012 |
Deferred Income Taxes and Other Noncurrent Liabilities |
|
|
893,991 |
|
|
865,510 |
Commitments and Contingencies |
|
|
|
|
||
Redeemable Noncontrolling Interests |
|
|
9,739 |
|
|
7,494 |
Total Stockholders' Equity |
|
|
3,081,884 |
|
|
3,038,974 |
|
|
$ |
12,706,666 |
|
$ |
12,674,371 |
|
|
|
|
|
||
ARAMARK AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In Thousands) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
December 27, 2024 |
|
December 29, 2023 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
105,703 |
|
|
$ |
28,517 |
|
Adjustments to reconcile Net income to Net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
113,204 |
|
|
|
105,544 |
|
Increase in contingent consideration liability |
|
|
11,127 |
|
|
|
— |
|
Deferred income taxes |
|
|
9,456 |
|
|
|
1,175 |
|
Share-based compensation expense |
|
|
14,848 |
|
|
|
13,654 |
|
Changes in operating assets and liabilities |
|
|
(801,426 |
) |
|
|
(825,112 |
) |
Payments made to clients on contracts |
|
|
(61,032 |
) |
|
|
(45,075 |
) |
Other operating activities |
|
|
20,968 |
|
|
|
64,220 |
|
Net cash used in operating activities |
|
|
(587,152 |
) |
|
|
(657,077 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Net purchases of property and equipment and other |
|
|
(117,788 |
) |
|
|
(111,201 |
) |
Acquisitions, divestitures and other investing activities |
|
|
(113,051 |
) |
|
|
(86,767 |
) |
Net cash used in investing activities |
|
|
(230,839 |
) |
|
|
(197,968 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Net proceeds/payments of long-term borrowings |
|
|
170,012 |
|
|
|
(1,310,776 |
) |
Net change in funding under the Receivables Facility |
|
|
525,000 |
|
|
|
600,000 |
|
Payments of dividends |
|
|
(27,860 |
) |
|
|
(24,915 |
) |
Proceeds from issuance of common stock |
|
|
11,977 |
|
|
|
4,496 |
|
Other financing activities |
|
|
(36,431 |
) |
|
|
(47,808 |
) |
Net cash provided by (used in) financing activities |
|
|
642,698 |
|
|
|
(779,003 |
) |
Effect of foreign exchange rates on cash and cash equivalents and restricted cash |
|
|
(18,960 |
) |
|
|
5,334 |
|
Decrease in cash and cash equivalents and restricted cash |
|
|
(194,253 |
) |
|
|
(1,628,714 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
|
732,613 |
|
|
|
1,972,367 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
538,360 |
|
|
$ |
343,653 |
|
Balance Sheet classification |
|
|
|
||
(in thousands) |
December 27, 2024 |
|
December 29, 2023 |
||
Cash and cash equivalents |
$ |
484,149 |
|
$ |
295,597 |
Restricted cash in Prepayments and other current assets |
|
54,211 |
|
|
48,056 |
Total cash and cash equivalents and restricted cash |
$ |
538,360 |
|
$ |
343,653 |
ARAMARK AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
December 27, 2024 |
||||||||||||||
|
|
FSS United States |
|
FSS International |
|
Corporate |
|
Aramark and Subsidiaries |
||||||||
Revenue (as reported) |
|
$ |
3,301,016 |
|
|
$ |
1,251,070 |
|
|
|
|
$ |
4,552,086 |
|
||
Operating Income (as reported) |
|
$ |
193,719 |
|
|
$ |
53,685 |
|
|
$ |
(30,140 |
) |
|
$ |
217,264 |
|
Operating Income Margin (as reported) |
|
|
5.9 |
% |
|
|
4.3 |
% |
|
|
|
|
4.8 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
Revenue (as reported) |
|
$ |
3,301,016 |
|
|
$ |
1,251,070 |
|
|
|
|
$ |
4,552,086 |
|
||
Effect of Currency Translation |
|
|
1,014 |
|
|
|
60,615 |
|
|
|
|
|
61,629 |
|
||
Adjusted Revenue (Organic) |
|
$ |
3,302,030 |
|
|
$ |
1,311,685 |
|
|
|
|
$ |
4,613,715 |
|
||
Revenue Growth (as reported) |
|
|
2.7 |
% |
|
|
4.7 |
% |
|
|
|
|
3.3 |
% |
||
Adjusted Revenue Growth (Organic) |
|
|
2.8 |
% |
|
|
9.8 |
% |
|
|
|
|
4.7 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (as reported) |
|
$ |
193,719 |
|
|
$ |
53,685 |
|
|
$ |
(30,140 |
) |
|
$ |
217,264 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
23,859 |
|
|
|
4,625 |
|
|
|
— |
|
|
|
28,484 |
|
Gains, Losses and Settlements impacting comparability |
|
|
11,127 |
|
|
|
693 |
|
|
|
— |
|
|
|
11,820 |
|
Adjusted Operating Income |
|
$ |
228,705 |
|
|
$ |
59,003 |
|
|
$ |
(30,140 |
) |
|
$ |
257,568 |
|
Effect of Currency Translation |
|
|
278 |
|
|
|
2,743 |
|
|
|
— |
|
|
|
3,021 |
|
Adjusted Operating Income (Constant Currency) |
|
$ |
228,983 |
|
|
$ |
61,746 |
|
|
$ |
(30,140 |
) |
|
$ |
260,589 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income Growth (as reported) |
|
|
10.8 |
% |
|
|
16.1 |
% |
|
|
44.2 |
% |
|
|
30.1 |
% |
Adjusted Operating Income Growth |
|
|
13.3 |
% |
|
|
10.1 |
% |
|
|
(20.9 |
)% |
|
|
11.7 |
% |
Adjusted Operating Income Growth (Constant Currency) |
|
|
13.4 |
% |
|
|
15.2 |
% |
|
|
(20.9 |
)% |
|
|
13.0 |
% |
Adjusted Operating Income Margin |
|
|
6.9 |
% |
|
|
4.7 |
% |
|
|
|
|
5.7 |
% |
||
Adjusted Operating Income Margin (Constant Currency) |
|
|
6.9 |
% |
|
|
4.7 |
% |
|
|
|
|
5.6 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
December 29, 2023 |
||||||||||||||
|
|
FSS United States |
|
FSS International |
|
Corporate |
|
Aramark and Subsidiaries |
||||||||
Revenue (as reported) |
|
$ |
3,212,732 |
|
|
$ |
1,195,033 |
|
|
|
|
$ |
4,407,765 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (as reported) |
|
$ |
174,765 |
|
|
$ |
46,243 |
|
|
$ |
(54,058 |
) |
|
$ |
166,950 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
20,417 |
|
|
|
3,487 |
|
|
|
— |
|
|
|
23,904 |
|
Severance and Other Charges |
|
|
6,149 |
|
|
|
— |
|
|
|
92 |
|
|
|
6,241 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
29,037 |
|
|
|
29,037 |
|
Gains, Losses and Settlements impacting comparability |
|
|
568 |
|
|
|
3,879 |
|
|
|
— |
|
|
|
4,447 |
|
Adjusted Operating Income |
|
$ |
201,899 |
|
|
$ |
53,609 |
|
|
$ |
(24,929 |
) |
|
$ |
230,579 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income Margin (as reported) |
|
|
5.4 |
% |
|
|
3.9 |
% |
|
|
|
|
3.8 |
% |
||
Adjusted Operating Income Margin |
|
|
6.3 |
% |
|
|
4.5 |
% |
|
|
|
|
5.2 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
ARAMARK AND SUBSIDIARIES |
|||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||
ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE |
|||||||||
(Unaudited) |
|||||||||
(In thousands, except per share amounts) |
|||||||||
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
||||||
|
|
|
December 27, 2024 |
|
December 29, 2023 |
||||
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
105,619 |
|
|
$ |
28,536 |
|
|
|
Adjustment: |
|
|
|
|
||||
|
Amortization of Acquisition-Related Intangible Assets |
|
|
28,484 |
|
|
|
23,904 |
|
|
Severance and Other Charges |
|
|
— |
|
|
|
6,241 |
|
|
Spin-off Related Charges |
|
|
— |
|
|
|
29,037 |
|
|
Gains, Losses and Settlements impacting comparability |
|
|
11,820 |
|
|
|
4,447 |
|
|
Effect of Debt Repayments on Interest Expense, net |
|
|
— |
|
|
|
31,757 |
|
|
Tax Impact of Adjustments to Adjusted Net Income |
|
|
(8,989 |
) |
|
|
(15,120 |
) |
Adjusted Net Income |
|
$ |
136,934 |
|
|
$ |
108,802 |
|
|
|
Effect of Currency Translation, net of Tax |
|
|
1,602 |
|
|
|
— |
|
Adjusted Net Income (Constant Currency) |
|
$ |
138,536 |
|
|
$ |
108,802 |
|
|
|
|
|
|
|
|
||||
Earnings Per Share (as reported) |
|
|
|
|
|||||
|
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
105,619 |
|
|
$ |
28,536 |
|
|
Diluted Weighted Average Shares Outstanding |
|
|
268,690 |
|
|
|
264,287 |
|
|
|
|
$ |
0.39 |
|
|
$ |
0.11 |
|
|
Earnings Per Share Growth (as reported) % |
|
|
264.1 |
% |
|
|
||
|
|
|
|
|
|
||||
Adjusted Earnings Per Share |
|
|
|
|
|||||
|
Adjusted Net Income |
|
$ |
136,934 |
|
|
$ |
108,802 |
|
|
Diluted Weighted Average Shares Outstanding |
|
|
268,690 |
|
|
|
264,287 |
|
|
|
|
$ |
0.51 |
|
|
$ |
0.41 |
|
|
Adjusted Earnings Per Share Growth % |
|
|
23.8 |
% |
|
|
||
|
|
|
|
|
|
||||
Adjusted Earnings Per Share (Constant Currency) |
|
|
|
|
|||||
|
Adjusted Net Income (Constant Currency) |
|
$ |
138,536 |
|
|
$ |
108,802 |
|
|
Diluted Weighted Average Shares Outstanding |
|
|
268,690 |
|
|
|
264,287 |
|
|
|
|
$ |
0.52 |
|
|
$ |
0.41 |
|
|
Adjusted Earnings Per Share Growth (Constant Currency) % |
|
|
25.2 |
% |
|
|
||
ARAMARK AND SUBSIDIARIES |
|||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||
NET DEBT TO COVENANT ADJUSTED EBITDA |
|||||||||
(Unaudited) |
|||||||||
(In thousands) |
|||||||||
|
|
|
|
|
|
||||
|
|
|
Twelve Months Ended |
||||||
|
|
|
December 27, 2024 |
|
December 29, 2023 |
||||
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
339,605 |
|
|
$ |
628,493 |
|
|
|
Less: Income from Discontinued Operations, net of tax |
|
|
— |
|
|
|
(190,779 |
) |
Net Income from Continuing Operations Attributable to Aramark Stockholders |
|
$ |
339,605 |
|
|
$ |
437,714 |
|
|
|
Interest Expense, net |
|
|
327,958 |
|
|
|
451,087 |
|
|
Provision for Income Taxes |
|
|
114,858 |
|
|
|
127,561 |
|
|
Depreciation and Amortization |
|
|
443,207 |
|
|
|
412,803 |
|
|
Share-based compensation expense(1) |
|
|
63,746 |
|
|
|
69,417 |
|
|
Unusual or non-recurring (gains) and losses(2) |
|
|
(22,752 |
) |
|
|
(375,972 |
) |
|
Pro forma EBITDA for certain transactions(3) |
|
|
5,151 |
|
|
|
6,406 |
|
|
Other(4)(5) |
|
|
92,870 |
|
|
|
113,763 |
|
Covenant Adjusted EBITDA |
|
$ |
1,364,643 |
|
|
$ |
1,242,779 |
|
|
|
|
|
|
|
|||||
Net Debt to Covenant Adjusted EBITDA |
|
|
|
|
|||||
|
Total Long-Term Borrowings |
|
$ |
5,919,786 |
|
|
$ |
5,971,733 |
|
|
Less: Cash and cash equivalents and short-term marketable securities(6) |
|
|
526,953 |
|
|
|
407,300 |
|
|
Net Debt |
|
$ |
5,392,833 |
|
|
$ |
5,564,433 |
|
|
Covenant Adjusted EBITDA |
|
$ |
1,364,643 |
|
|
$ |
1,242,779 |
|
|
Net Debt/Covenant Adjusted EBITDA(7) |
|
|
4.0 |
|
|
|
4.5 |
|
|
|
|
|
|
|||||
(1) Represents share-based compensation expense resulting from the application of accounting for stock options, stock appreciation rights, restricted stock units, performance stock units and deferred stock unit awards. |
|||||||||
(2) The twelve months ended December 27, 2024 represents the fiscal 2024 gain from the sale of the Company's remaining equity investment in the San Antonio Spurs NBA franchise ( |
|||||||||
(3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period. |
|||||||||
(4) "Other" for the twelve months ended December 27, 2024 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ( |
|||||||||
(5) "Other" for the twelve months ended December 29, 2023 includes the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ( |
|||||||||
(6) Short-term marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one year and will convert back to cash. Short-term marketable securities are included in "Prepayments and other current assets" on the Condensed Consolidated Balance Sheets. |
|||||||||
(7) The twelve months ended December 29, 2023 has been restated to exclude the results of the Uniform segment for the entire period, including quarters prior to the spin-off. |
|||||||||
ARAMARK AND SUBSIDIARIES |
|||
RECONCILIATION OF NON-GAAP MEASURES |
|||
FREE CASH FLOW |
|||
(Unaudited) |
|||
(In thousands) |
|||
|
|
||
|
Three Months Ended |
||
|
December 27, 2024 |
||
Net cash used in operating activities |
$ |
(587,152 |
) |
|
|
||
Net purchases of property and equipment and other |
|
(117,788 |
) |
|
|
||
Free Cash Flow |
$ |
(704,940 |
) |
|
|
||
|
Three Months Ended |
||
|
December 29, 2023 |
||
Net cash used in operating activities |
$ |
(657,077 |
) |
|
|
||
Net purchases of property and equipment and other |
|
(111,201 |
) |
|
|
||
Free Cash Flow |
$ |
(768,278 |
) |
|
|
||
|
Three Months Ended |
||
|
Change |
||
Net cash provided by operating activities |
$ |
69,925 |
|
|
|
||
Net purchases of property and equipment and other |
|
(6,587 |
) |
|
|
||
Free Cash Flow |
$ |
63,338 |
|
ARAMARK AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||
FOODSERVICE ADJUSTED REVENUE (ORGANIC) |
||||||||||||
(Unaudited) |
||||||||||||
(In thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
December 27, 2024 |
||||||||||
|
|
FSS United States |
|
FSS International |
|
Aramark and Subsidiaries |
||||||
Revenue (as reported) |
|
|
|
|
|
|
||||||
Food |
|
$ |
2,894,829 |
|
|
$ |
1,031,933 |
|
|
$ |
3,926,762 |
|
Facilities |
|
|
406,187 |
|
|
|
219,137 |
|
|
|
625,324 |
|
Total |
|
$ |
3,301,016 |
|
|
$ |
1,251,070 |
|
|
$ |
4,552,086 |
|
|
|
|
|
|
|
|
||||||
Effect of Currency Translation |
|
|
|
|
|
|
||||||
Food |
|
$ |
1,014 |
|
|
$ |
53,907 |
|
|
$ |
54,921 |
|
Facilities |
|
|
— |
|
|
|
6,708 |
|
|
|
6,708 |
|
Total |
|
$ |
1,014 |
|
|
$ |
60,615 |
|
|
$ |
61,629 |
|
|
|
|
|
|
|
|
||||||
Adjusted Revenue (Organic) |
|
|
|
|
|
|
||||||
Food |
|
$ |
2,895,843 |
|
|
$ |
1,085,840 |
|
|
$ |
3,981,683 |
|
Facilities |
|
|
406,187 |
|
|
|
225,845 |
|
|
|
632,032 |
|
Total |
|
$ |
3,302,030 |
|
|
$ |
1,311,685 |
|
|
$ |
4,613,715 |
|
|
|
|
|
|
|
|
||||||
Revenue Growth (as reported) |
|
|
|
|
|
|
||||||
Food |
|
|
4.8 |
% |
|
|
4.6 |
% |
|
|
4.7 |
% |
Total |
|
|
2.7 |
% |
|
|
4.7 |
% |
|
|
3.3 |
% |
|
|
|
|
|
|
|
||||||
Adjusted Revenue Growth (Organic) |
|
|
|
|
|
|
||||||
Food |
|
|
4.8 |
% |
|
|
10.0 |
% |
|
|
6.2 |
% |
Total |
|
|
2.8 |
% |
|
|
9.8 |
% |
|
|
4.7 |
% |
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||
|
|
December 29, 2023 |
||||||||||
|
|
FSS United States |
|
FSS International |
|
Aramark and Subsidiaries |
||||||
Revenue (as reported) |
|
|
|
|
|
|
||||||
Food |
|
$ |
2,763,396 |
|
|
$ |
986,847 |
|
|
$ |
3,750,243 |
|
Facilities |
|
|
449,336 |
|
|
|
208,186 |
|
|
|
657,522 |
|
Total |
|
$ |
3,212,732 |
|
|
$ |
1,195,033 |
|
|
$ |
4,407,765 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250203948351/en/
Inquiries:
Felise Glantz Kissell
(215) 409-7287
Kissell-Felise@aramark.com
Gene Cleary
(215) 409-7945
Cleary-Gene@aramark.com
Source: Aramark
