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; Adjusted EPS +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 with
enhanced capabilities in key geographies
- Commenced Share Repurchases; Returned Capital to
Shareholders
- Repurchased shares as part of the Company’s $500 million share
repurchase program
- Testament to the strong confidence in the business and the
value-creating opportunities ahead
SUBSEQUENT TO FIRST
QUARTER
- Extended Debt Maturities; Further Enhanced Financial
Flexibility
- Issued notice to fully repay $552 million of Senior Notes due
April 2025
- New term loans will be utilized to repay Senior Notes and
refinance certain term loan maturities to 2030
Aramark (NYSE: ARMK) today reported first quarter fiscal 2025
results.
"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 $4.6 billion in the first quarter, a 3%
increase year-over-year, with Organic revenue growth of 5% compared
to the prior year period. The growth in revenue more than offset
the prior year exit of some lower margin Facilities accounts in the
FSS United States segment. Foodservice revenue grew 5% and
Foodservice Organic revenue increased 6% as a result of strong base
business and net new business. The impact of currency translation
reduced revenue by $62 million.
Revenue
Q1 '25
Q1 '24
Change (%)
Organic Revenue
Change (%)
FSS United States
$3,301M
$3,213M
3 %
*
3 %
*
FSS International
1,251
1,195
5 %
10 %
Total Company
$4,552M
$4,408M
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 increased 5% 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, and
Ireland driving the increase. Revenue on a GAAP basis included the
impact of currency translation.
Operating Income increased 30% year-over-year to $217 million,
and AOI grew 13%2 to $258 million, representing an operating income
margin increase of 100 basis points and an AOI margin increase of
40 basis points2 year-over-year. Profitability growth was due to
the Company’s ability to leverage higher revenue levels, supply
chain efficiencies, and effective management of in-unit costs. The
impact of currency translation reduced operating income by $3
million.
Operating Income
Adjusted Operating Income
(AOI)
Q1 '25
Q1 '24
Change (%)
Q1 '25
Q1 '24
Change (%)
Constant Currency Change
(%)
FSS United States
$194M
$175M
11%
$229M
$202M
13%
13%
FSS International
54
46
16%
59
54
10%
15%
Corporate
(30)
(54)
44%
(30)
(25)
(21)%
(21)%
Total Company
$217M
$167M
30%
$258M
$231M
12%
13%
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
the Valencia 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 $70
million and Free Cash Flow improving approximately $63 million.
This performance was led by higher net income and favorable working
capital.
At quarter-end, the Company had over $1.7 billion in cash
availability.
Aramark commenced repurchasing shares toward the end of the
first quarter as part of its $500 million share repurchase program
announced in November 2024. To date, the Company has repurchased
over 645,000 shares for an aggregate purchase price of
approximately $25 million.
Aramark initiated steps subsequent to quarter-end to extend debt
maturities and further enhance financial flexibility,
including:
- Issued notice to fully repay $552 million of Senior Notes due
April 2025, effective on February 18, 2025; and
- Completed a syndication process for $1.4 billion of new term
loans due June 2030 with the proceeds to be used to repay $552
million of Senior Notes due April 2025 as well as to refinance
certain term loans.
These actions are leverage neutral and at comparable interest
rates.
DIVIDEND DECLARATION The
Company's Board of Directors approved a quarterly dividend of 10.5
cents per share of common stock, as announced on January 27, 2025.
The dividend will be payable on February 24, 2025, to stockholders
of record at the close of business on February 10, 2025.
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 4% to 5% of prior year revenue—with retention levels above
95%—in fiscal 2025 and beyond. As a result of the favorable trends
in the business, the Company reaffirms its performance expectations
for fiscal 2025.
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 $500 million with operations in
countries such as Spain, Portugal, Germany, and the Netherlands,
serving hotels, restaurants, gaming destinations, and senior and
youth residencies. Aramark’s Global Supply Chain spend now exceeds
$20.5 billion with enhanced capabilities in key geographies.
OUTLOOK The Company provides
its expectations for organic revenue growth, Adjusted Operating
Income growth (constant currency), Adjusted Earnings per Share
growth (constant currency), and Net Debt to Covenant Adjusted
EBITDA ("Leverage Ratio") on a non-GAAP basis, and does not provide
a reconciliation of such forward-looking non-GAAP measures to GAAP
due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliations,
including adjustments that could be made for the effect of currency
translation. The fiscal 2025 outlook reflects management's current
assumptions regarding numerous evolving factors that are difficult
to accurately predict, including those discussed in the Risk
Factors set forth in the Company's filings with the United States
Securities and Exchange Commission.
Aramark continues to anticipate its full-year performance for
fiscal 2025 as follows:
($ in millions, except EPS)
FY24
FY25* Outlook
Reference Point
Year-over-year Growth1
Organic Revenue
$17,401
+7.5%
—
+9.5%
Adjusted Operating Income
$882
+15%
—
+18%
Adjusted EPS
$1.55
+23%
—
+28%
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 United States earnings is calculated using a blended United
States federal and state tax rate. The tax effect for Adjusted Net
Income in jurisdictions outside the United States is calculated at
the local country tax rate.
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 ($6.2 million for the first quarter of 2024).
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 ($8.8 million for the first quarter
of 2024).
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 ($11.1
million for the first quarter of 2025 and $0.5 million for the
first quarter of 2024) and charges related to hyperinflation in
Argentina ($0.7 million for the first quarter of 2025 and $3.9
million for the first quarter of 2024).
Effect of Debt Repayments on Interest
Expense, net - adjustments to eliminate expenses
associated with the repayment of borrowings, including the 6.375%
Senior Notes due 2025, by the Company in the applicable period such
as charges related to the payment of a call premium ($23.9 million
for the first quarter of 2024) and non-cash charges for the
write-off of unamortized debt issuance costs ($7.9 million for the
first quarter of 2024).
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 United States federal and state tax rate for United States
adjustments and the local country tax rate for adjustments in
jurisdictions outside the United States. Adjustment also eliminates
the tax related impact of the Company's prior year spin-off of the
Uniform segment, including a valuation allowance recorded based on
the Company's ability to utilize foreign tax credits ($7.1 million
charge for the first quarter of 2024), disallowed transaction costs
($2.6 million charge for the first quarter of 2024) and the
restatement of the Company's deferred tax position ($1.9 million
benefit for the first quarter of 2024).
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 Russia and Ukraine and the ongoing
conflict in the Middle East, global supply chain disruptions,
inflation, volatility and disruption of global financial markets;
the failure to retain current clients, renew existing client
contracts and obtain new client contracts; a determination by
clients to reduce their outsourcing or use of preferred vendors;
competition in our industries; increased operating costs and
obstacles to cost recovery due to the pricing and cancellation
terms of our food and support services contracts; currency risks
and other risks associated with international operations, including
compliance with a broad range of laws and regulations, including
the United States Foreign Corrupt Practices Act; risks associated
with suppliers from whom our products are sourced; disruptions to
our relationship with our distribution partners; the contract
intensive nature of our business, which may lead to client
disputes; the inability to hire and retain key or sufficient
qualified personnel or increases in labor costs; our expansion
strategy and our ability to successfully integrate the businesses
we acquire and costs and timing related thereto; risks associated
with the completed spin-off of Aramark Uniform and Career Apparel
("Uniform") as an independent publicly traded company to our
stockholders; continued or further unionization of our workforce;
liability resulting from our participation in multiemployer defined
benefit pension plans; laws and governmental regulations including
those relating to food and beverages, the environment, wage and
hour and government contracting; liability associated with
noncompliance with applicable law or other governmental
regulations; new interpretations of or changes in the enforcement
of the government regulatory framework; increases or changes in
income tax rates or tax-related laws; potential liabilities,
increased costs, reputational harm, and other adverse effects based
on our commitments and stakeholder expectations relating to
environmental, social and governance considerations; the failure to
maintain food safety throughout our supply chain, food-borne
illness concerns and claims of illness or injury; a cybersecurity
incident or other disruptions in the availability of our computer
systems or privacy breaches; our leverage; variable rate
indebtedness that subjects us to interest rate risk; the inability
to generate sufficient cash to service all of our indebtedness;
debt agreements that limit our flexibility in operating our
business; and other factors set forth under the headings "Part I,
Item 1A Risk Factors," "Part I, Item 3 Legal Proceedings" and "Part
II, Item 7 Management's Discussion and Analysis of Financial
Condition and Results of Operations" and other sections of our
Annual Report on Form 10-K, filed with the Securities and Exchange
Commission (the "SEC") on November 19, 2024 as such factors may be
updated from time to time in our other periodic filings with the
SEC, which are accessible on the SEC's website at www.sec.gov and
which may be obtained by contacting Aramark's investor relations
department via its website at www.aramark.com. These factors should
not be construed as exhaustive and should be read in conjunction
with the other cautionary statements that are included herein and
in our other filings with the SEC. As a result of these risks and
uncertainties, readers are cautioned not to place undue reliance on
any forward-looking statements included herein or that may be made
elsewhere from time to time by, or on behalf of, us.
Forward-looking statements speak only as of the date made. We
undertake no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments, changes in our expectations, or otherwise,
except as required by law.
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
($25.1 million) and the fiscal 2024 non-cash charge for the
impairment of certain assets related to a business that was sold
($2.3 million). The twelve months ended December 29, 2023
represents the fiscal 2023 gain from the sale of the Company's
equity method investment in AIM Services, Co., Ltd. ($377.1
million) and the fiscal 2023 loss from the sale of a portion of the
Company's equity investment in the San Antonio Spurs NBA franchise
($1.1 million).
(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 ($52.3 million), non-cash adjustments to inventory
based on expected usage ($18.2 million), charges related to a
ruling on a foreign tax matter ($6.8 million), severance charges
($6.7 million), non-cash charges related to the impairment of a
trade name ($3.3 million), contingent consideration expense related
to acquisition earn outs, net of reversals ($2.4 million), the
impact of hyperinflation in Argentina ($2.2 million), income
related to non-United States governmental wage subsidies ($1.1
million) and other miscellaneous expenses.
(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 ($59.4
million), 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
($50.3 million), charges related to the Company's spin-off of the
Uniform segment ($47.5 million), net severance charges ($39.1
million), the impact of hyperinflation in Argentina ($13.2
million), income related to non-United States governmental wage
subsidies ($12.5 million), non-cash charges related to information
technology assets ($8.2 million), net multiemployer pension plan
withdrawal charges ($6.7 million), non-cash charges for inventory
write-downs ($6.1 million), labor charges and other expenses
associated with closed or partially closed locations from adverse
weather ($5.4 million), non-cash charges for the impairment of
operating lease right-of-use assets and property and equipment
related to certain real estate properties ($3.3 million) and other
miscellaneous expenses.
(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
Aramark (NYSE:ARMK)
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