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Q4 YEAR-OVER-YEAR SUMMARY
-
Revenue +12%; Organic Revenue +11%
- Global FSS +12%1; Uniform Services +5%1
-
Operating Income +40%; Adjusted Operating Income (AOI) +28%1
- Global FSS AOI +33%1; Uniform Services AOI +15%1
-
EPS +169% to
$0.78 ; Adjusted EPS +34%1 to$0.64 - GAAP EPS included a gain on sale from non-controlling equity investment
FISCAL 2023 YEAR-OVER-YEAR SUMMARY
-
Net New Business momentum continued in Global FSS
-
Annualized gross new business totaled
$1.2 billion , representing 8.8% of prior year revenue - Retention at 95.5%, maintained significant improvement vs. historical levels
-
Annualized gross new business totaled
-
Revenue +15%; Organic Revenue +16%
- Global FSS +18%1; Uniform Services +5.5%1
- Performance driven by net new business, pricing actions, and base business growth
-
Operating Income +37%; Adjusted Operating Income (AOI) +34%1
- Global FSS AOI +46%1; Uniform Services AOI +10%1
- Well-positioned to drive expected AOI growth and margin expansion into fiscal '24
-
EPS +243% to
$2.57 ; Adjusted EPS +50%1 to$1.70 - GAAP EPS included a net gain on sales from non-controlling equity investments
-
Strong Cash Flow and higher earnings drove 1.4x improvement in leverage ratio
-
Net Cash provided by operating activities of$766 million ; Free Cash Flow of$334 million
-
-
Subsequent to year-end, completed spin-off of Uniform Services business; now "Vestis"
-
Vestis began trading as an independent public company on
October 2, 2023 , under "VSTS"
-
Vestis began trading as an independent public company on
"This year represented a significant step forward in achieving our strategic and financial goals," said
Notes: |
– 1Revenue adjusted for the effect of certain acquisitions and currency translation; AOI and Adjusted EPS on a constant-currency basis. |
– Supplemental business review slides available on |
– Global FSS defined as the sum of FSS United States, |
– Retention and Net New Business calculations exclude Next Level business due to portfolio optimization. |
FOURTH QUARTER RESULTS
Consolidated revenue was
Organic revenue, which adjusts for the effect of currency translation, grew 11% year-over-year. Organic revenue growth for Global FSS exceeded 12% versus the fourth quarter last year and Uniform Services increased 5%.
|
Revenue |
|||
|
Q4 '23 |
Q4 '22 |
Change (%) |
Organic Revenue Change (%) |
FSS United States |
|
|
10% |
10% |
|
|
|
21% |
19% |
Global FSS |
|
|
13% |
12% |
Uniform & Career Apparel |
|
|
5% |
5% |
|
|
|
12% |
11% |
Difference between Change (%) and Organic Revenue Change (%) reflects the impact of currency translation.
|
- FSS United States revenue growth benefited from net new business and pricing actions, as well as strong base business performance led by higher attendance and per capita spending in the Sports & Entertainment business, and favorable volume trends in the Business & Industry ("B&I") sector.
-
FSS International grew revenue across all geographies resulting from net new business, pricing actions, and ongoing base business growth—primarily from a robust events calendar and greater B&I participation rates inEurope , mining activity inSouth America , and a strong start to the academic year for higher education inCanada .
- Uniform & Career Apparel increased revenue largely through pricing actions, and growth in adjacency sales, partially offset by the rollback of an energy surcharge that was in effect during the fourth quarter last year.
Operating Income gained 40% year-over-year to
Global FSS increased AOI 33%1 compared to the prior year period, resulting in an AOI margin improvement of 94 basis points1 to 6.1%. Performance was driven by operating leverage from increased revenue, continued contract maturity of accounts won in prior years, improved supply chain economics, and disciplined above-unit cost management. Uniform Services increased AOI 15%1 in the quarter resulting in nearly 70 basis points of improvement in AOI margin from the third quarter and 106 basis points1 higher AOI margin than the fourth quarter last year.
|
Operating Income |
|
Adjusted Operating Income (AOI) |
|||||
|
Q4 '23 |
Q4 '22 |
Change (%) |
|
Q4 '23 |
Q4 '22 |
Change (%) |
Constant Currency Change (%) |
FSS United States |
|
|
24% |
|
|
|
24% |
24% |
|
|
|
129% |
|
|
|
57% |
52% |
Corporate |
( |
( |
(5)% |
|
( |
( |
2% |
2% |
Global FSS |
|
|
41% |
|
|
|
34% |
33% |
Uniform & Career Apparel |
|
|
36% |
|
|
|
15% |
15% |
|
|
|
40% |
|
|
|
29% |
28% |
May not total due to rounding.
|
Year-over-year profitability improvement was a result of the following segment performance:
- FSS United States increased driven by the ongoing maturity of previous new business, improved supply chain economics and purchasing initiatives, and disciplined above-unit cost management across the segment, as well as actions taken to close the price-inflation lag within the Education sector and Corrections business.
-
FSS International benefited from scaling new business, pricing, higher base business volumes, improved supply chain economics, and reduced above-unit costs from personnel actions taken earlier in the fiscal year.
- Uniform & Career Apparel improved through the execution on the strategic initiatives outlined at the Vestis Analyst Day in September.
- Corporate expenses improved primarily from above-unit cost containment while appropriately supporting the business, as well as lower share-based compensation expense.
FISCAL 2023 SUMMARY
Consolidated revenue was
|
Revenue |
|||
|
FY23 |
FY22 |
Change (%) |
Organic Revenue Change (%) |
FSS United States |
|
|
17% |
15% |
|
|
|
19% |
24% |
Global FSS |
|
|
18% |
18% |
Uniform & Career Apparel |
|
|
5% |
6% |
|
|
|
15% |
16% |
Difference between Change (%) and Organic Revenue Change (%) reflects the effect of certain acquisitions and currency translation.
|
|
Operating Income |
|
Adjusted Operating Income (AOI) |
|||||
|
FY23 |
FY22 |
Change (%) |
|
FY23 |
FY22 |
Change (%) |
Constant Currency Change (%) |
FSS United States |
|
|
49% |
|
|
|
35% |
35% |
|
|
|
2% |
|
|
|
28% |
33% |
Corporate |
( |
( |
2% |
|
( |
( |
10% |
10% |
Global FSS |
|
|
55% |
|
|
|
45% |
46% |
Uniform & Career Apparel |
|
|
4% |
|
|
|
10% |
10% |
|
|
|
37% |
|
|
|
33% |
34% |
May not total due to rounding.
|
The Company's earnings per share of
CASH FLOW AND CAPITAL STRUCTURE
Consistent with the typical quarterly cadence of the business, the fourth quarter generated a significant cash inflow. Net cash provided by operating activities was
In fiscal 2023, Net cash provided by operating activities was
As a result of the cash flow performance, higher year-over-year earnings, and over
Immediately prior to year-end,
DIVIDEND DECLARATION
Given the Company's strengthening financial profile,
UNIFORM SERVICES SPIN-OFF
ARAMARK BUSINESS UPDATE
With a growth mindset now firmly in place across the organization,
The Company anticipates increased profitability in the near- and longer-term through:
- Profitability ramp of new business booked in prior years as a result of operational maturity and efficiencies, following three consecutive strong years of adding new clients;
- Benefits from early trends related to the slow moderation of inflation, paired with progress in pricing, most notably in the Education sector and Corrections business;
- Run-rate of improved supply chain economics, as well as incremental optimization opportunities through purchasing, efficiencies from new deals, and benefits from greater scale;
- Continued rebound of front-line margins as food and labor costs normalize, combined with leveraging a flexible operating model;
- And, disciplined control and containment of above-unit overhead costs, including leveraging existing resources to support the lines of business in additional ways post-spin.
OUTLOOK
The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth, Adjusted Earnings per Share growth, 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 2024 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
($ in millions, except EPS) |
|
FY23 |
|
FY24 Outlook |
||
|
|
Global FSS Post-Spin
|
|
Year-over-year Growth1 |
||
|
|
|
|
|
|
|
Organic Revenue |
|
|
|
+7% |
— |
+9% |
|
|
|
|
|
|
|
Adjusted Operating Income |
|
|
|
+15% |
— |
+20% |
|
|
|
|
|
|
|
Adjusted EPS |
|
|
|
+25% |
— |
+35% |
|
|
|
|
|
|
|
Leverage Ratio |
|
3.9x* |
|
~3.5x |
||
|
|
|
|
|
|
|
1constant currency, except Leverage Ratio |
|
|
|
|
|
|
*Leverage ratio represents total Company including Uniform Services at year-end. |
"With the spin-off now complete, fiscal '24 represents a new chapter in
CONFERENCE CALL SCHEDULED
The Company has scheduled a conference call at
About
Selected Operational and Financial Metrics
Adjusted Revenue (Organic)
Adjusted Revenue (Organic) represents revenue growth, adjusted to eliminate the effect of certain material acquisitions and the impact of currency translation.
Adjusted Operating Income
Adjusted Operating Income represents operating income adjusted to eliminate the change in amortization of acquisition-related intangible assets; the impact of the change in fair value related to certain gasoline and diesel agreements; severance and other charges; the effect of certain material acquisitions; 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
Adjusted Net Income (Constant Currency)
Adjusted Net Income (Constant Currency) represents Adjusted Net Income adjusted to eliminate the impact of currency translation.
Adjusted Net Income Net of Interest Adjustment
Adjusted Net Income Net of Interest Adjustment represents Adjusted Net Income adjusted to eliminate the effect of the repayment of the 6.375% Senior Notes due 2025 on interest expense, net of tax.
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.
Adjusted EPS Net of Interest Adjustment
Adjusted EPS Net of Interest Adjustment represents Adjusted EPS adjusted to eliminate the effect of the repayment of the 6.375% Senior Notes due 2025 on interest expense, net of tax.
Covenant Adjusted EBITDA
Covenant Adjusted EBITDA represents net income attributable to
Free Cash Flow
Free Cash Flow represents net cash provided by (used in) 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.
Free Cash Flow Before Items
Free Cash Flow Before Items represents free cash flow adjusted to add back deferred payroll taxes associated with the CARES Act and spin-off and restructuring related costs.
Items to Rebase
Items to Rebase represents the elimination of balances related to the Company's Uniform segment, along with other adjustments related to the spin-off of the Uniform segment, and the elimination of adjustments related to the effect of certain acquisitions.
Net New Business
Net New Business is an internal statistical metric used to evaluate our new sales and retention performance. The calculation is defined as the annualized value of gross new business less the annualized value of lost business, excluding portfolio optimization in the Next Level business.
We use Adjusted Revenue (Organic), Adjusted Operating Income (including on a constant currency basis), Adjusted Net Income (including on a constant currency and net of interest adjustment basis), Adjusted EPS (including on a constant currency and net of interest adjustment basis), Covenant Adjusted EBITDA and Free Cash Flow (including on a before items basis) 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 provided by (used in) operating activities, determined in accordance with GAAP. 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 the change in amortization expense resulting from the purchase accounting applied to the
Severance and Other Charges - adjustments to eliminate severance expenses in the applicable period (
Effect of Certain Acquisitions - adjustments to eliminate the operating results of certain material acquisitions that are not comparable to the prior year periods.
Spin-off Related Charges - adjustments to eliminate charges related to the Company's spin-off of the Uniform segment, including salaries and benefits, recruiting and relocation costs, accounting and legal related expenses, branding and other costs.
Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of the Company's ongoing operational performance, primarily for the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense (
Gain on Sale of Equity Investments, net - adjustments to eliminate the impact of the gain from the sale of the Company's equity method investment in
Loss on Defined Benefit Pension Plan Termination - adjustment to eliminate the impact of a non-cash loss in the prior year from the termination of certain single-employer defined benefit pension plans.
Effect of Debt Repayments and Refinancings on Interest and Other Financing Costs, net - adjustments to eliminate expenses associated with refinancing activities undertaken by the Company in the applicable period such as non-cash charges for the write-off of unamortized debt issuance costs related to debt activity, including the repayment of borrowings (
Effect of Tax Legislation on Provision for Income Taxes - adjustments to eliminate the impact of tax legislation that is not indicative of the Company's ongoing tax position based on new tax policies, including the benefit from a tax legislative change in the state of
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
|
||||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
Revenue |
|
$ |
4,901,565 |
|
|
$ |
4,390,457 |
|
Costs and Expenses: |
|
|
|
|
||||
Cost of services provided (exclusive of depreciation and amortization) |
|
|
4,381,592 |
|
|
|
3,957,459 |
|
Depreciation and amortization |
|
|
137,567 |
|
|
|
131,549 |
|
Selling and general corporate expenses |
|
|
104,491 |
|
|
|
103,208 |
|
|
|
|
4,623,650 |
|
|
|
4,192,216 |
|
Operating income |
|
|
277,915 |
|
|
|
198,241 |
|
Gain on Sale of Equity Investments, net |
|
|
(51,831 |
) |
|
|
— |
|
Interest and Other Financing Costs, net |
|
|
111,472 |
|
|
|
98,559 |
|
Income Before Income Taxes |
|
|
218,274 |
|
|
|
99,682 |
|
Provision for Income Taxes |
|
|
12,832 |
|
|
|
24,238 |
|
Net income |
|
|
205,442 |
|
|
|
75,444 |
|
Less: Net income (loss) attributable to noncontrolling interest |
|
|
10 |
|
|
|
(352 |
) |
Net income attributable to |
|
$ |
205,432 |
|
|
$ |
75,796 |
|
|
|
|
|
|
||||
Earnings per share attributable to |
|
|
|
|
||||
Basic |
|
$ |
0.79 |
|
|
$ |
0.29 |
|
Diluted |
|
$ |
0.78 |
|
|
$ |
0.29 |
|
Weighted Average Shares Outstanding: |
|
|
|
|
||||
Basic |
|
|
261,319 |
|
|
|
258,122 |
|
Diluted |
|
|
263,454 |
|
|
|
260,117 |
|
|
|
|
|
|
||||
|
|
Fiscal Year Ended |
||||||
|
|
|
|
|
||||
Revenue |
|
$ |
18,853,857 |
|
|
$ |
16,326,624 |
|
Costs and Expenses: |
|
|
|
|
||||
Cost of services provided (exclusive of depreciation and amortization) |
|
|
17,037,797 |
|
|
|
14,767,570 |
|
Depreciation and amortization |
|
|
546,362 |
|
|
|
532,327 |
|
Selling and general corporate expenses |
|
|
406,772 |
|
|
|
398,362 |
|
|
|
|
17,990,931 |
|
|
|
15,698,259 |
|
Operating income |
|
|
862,926 |
|
|
|
628,365 |
|
Gain on Sale of Equity Investments, net |
|
|
(427,803 |
) |
|
|
— |
|
Interest and Other Financing Costs, net |
|
|
439,585 |
|
|
|
372,727 |
|
Income Before Income Taxes |
|
|
851,144 |
|
|
|
255,638 |
|
Provision for Income Taxes |
|
|
177,614 |
|
|
|
61,461 |
|
Net income |
|
|
673,530 |
|
|
|
194,177 |
|
Less: Net loss attributable to noncontrolling interest |
|
|
(578 |
) |
|
|
(307 |
) |
Net income attributable to |
|
$ |
674,108 |
|
|
$ |
194,484 |
|
|
|
|
|
|
||||
Earnings per share attributable to |
|
|
|
|
||||
Basic |
|
$ |
2.59 |
|
|
$ |
0.76 |
|
Diluted |
|
$ |
2.57 |
|
|
$ |
0.75 |
|
Weighted Average Shares Outstanding: |
|
|
|
|
||||
Basic |
|
|
260,592 |
|
|
|
257,314 |
|
Diluted |
|
|
262,594 |
|
|
|
259,074 |
|
ARAMARK AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(In Thousands) |
||||||
|
|
|
|
|
||
|
|
|
|
|
||
Assets |
|
|
|
|
||
|
|
|
|
|
||
Current Assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,963,139 |
|
$ |
329,452 |
Receivables |
|
|
2,363,698 |
|
|
2,147,957 |
Inventories |
|
|
578,427 |
|
|
552,386 |
Prepayments and other current assets |
|
|
314,763 |
|
|
262,195 |
Total current assets |
|
|
5,220,027 |
|
|
3,291,990 |
Property and Equipment, net |
|
|
2,090,503 |
|
|
2,032,045 |
|
|
|
5,579,529 |
|
|
5,515,124 |
Other Intangible Assets |
|
|
2,043,082 |
|
|
2,113,726 |
Operating Lease Right-of-use Assets |
|
|
630,158 |
|
|
592,145 |
Other Assets |
|
|
1,307,942 |
|
|
1,537,406 |
|
|
$ |
16,871,241 |
|
$ |
15,082,436 |
|
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
|
||
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
||
Current maturities of long-term borrowings |
|
$ |
1,596,942 |
|
$ |
65,047 |
Current operating lease liabilities |
|
|
71,206 |
|
|
68,858 |
Accounts payable |
|
|
1,406,356 |
|
|
1,322,936 |
Accrued expenses and other current liabilities |
|
|
1,955,463 |
|
|
1,829,045 |
Total current liabilities |
|
|
5,029,967 |
|
|
3,285,886 |
Long-Term Borrowings |
|
|
6,666,572 |
|
|
7,345,860 |
Noncurrent Operating Lease Liabilities |
|
|
291,955 |
|
|
305,623 |
Deferred Income Taxes and Other Noncurrent Liabilities |
|
|
1,161,805 |
|
|
1,106,587 |
Commitments and Contingencies |
|
|
|
|
||
Redeemable Noncontrolling Interest |
|
|
8,224 |
|
|
8,840 |
Total Stockholders' Equity |
|
|
3,712,718 |
|
|
3,029,640 |
|
|
$ |
16,871,241 |
|
$ |
15,082,436 |
ARAMARK AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In Thousands) |
||||||||
|
|
|
|
|
||||
|
|
Fiscal Year Ended |
||||||
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
673,530 |
|
|
$ |
194,177 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation and amortization |
|
|
546,362 |
|
|
|
532,327 |
|
Asset write-downs |
|
|
37,563 |
|
|
|
— |
|
Reduction of contingent consideration liability |
|
|
(97,336 |
) |
|
|
(20,749 |
) |
Gain on sale of equity investments, net |
|
|
(427,803 |
) |
|
|
— |
|
Deferred income taxes |
|
|
114,545 |
|
|
|
35,422 |
|
Share-based compensation expense |
|
|
86,938 |
|
|
|
95,487 |
|
Changes in operating assets and liabilities |
|
|
(72,614 |
) |
|
|
(108,669 |
) |
Payments made to clients on contracts |
|
|
(119,217 |
) |
|
|
(56,865 |
) |
Other operating activities |
|
|
24,461 |
|
|
|
23,369 |
|
Net cash provided by operating activities |
|
|
766,429 |
|
|
|
694,499 |
|
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Net purchases of property and equipment and other |
|
|
(432,166 |
) |
|
|
(364,755 |
) |
Proceeds from sale of equity investments |
|
|
685,048 |
|
|
|
— |
|
Acquisitions, divestitures and other investing activities |
|
|
(43,970 |
) |
|
|
(466,532 |
) |
Net cash provided by (used in) investing activities |
|
|
208,912 |
|
|
|
(831,287 |
) |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Net proceeds/payments of long-term borrowings |
|
|
856,680 |
|
|
|
(52,287 |
) |
Net change in funding under the Receivables Facility |
|
|
(104,935 |
) |
|
|
104,935 |
|
Payments of dividends |
|
|
(114,614 |
) |
|
|
(113,120 |
) |
Proceeds from issuance of common stock |
|
|
46,974 |
|
|
|
49,322 |
|
Other financing activities |
|
|
(30,456 |
) |
|
|
(26,544 |
) |
Net cash provided by (used in) financing activities |
|
|
653,649 |
|
|
|
(37,694 |
) |
Effect of foreign exchange rates on cash and cash equivalents |
|
|
4,697 |
|
|
|
(28,657 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
1,633,687 |
|
|
|
(203,139 |
) |
Cash and cash equivalents, beginning of period |
|
|
329,452 |
|
|
|
532,591 |
|
Cash and cash equivalents, end of period |
|
$ |
1,963,139 |
|
|
$ |
329,452 |
|
ARAMARK AND SUBSIDIARIES |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(In thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Uniform |
|
Corporate |
|
|
||||||||||
Revenue (as reported) |
|
$ |
3,066,543 |
|
|
$ |
1,133,743 |
|
|
$ |
701,279 |
|
|
|
|
$ |
4,901,565 |
|
||
Operating Income (as reported) |
|
$ |
221,838 |
|
|
$ |
41,227 |
|
|
$ |
58,097 |
|
|
$ |
(43,247 |
) |
|
$ |
277,915 |
|
Operating Income Margin (as reported) |
|
|
7.23 |
% |
|
|
3.64 |
% |
|
|
8.28 |
% |
|
|
|
|
5.67 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue (as reported) |
|
$ |
3,066,543 |
|
|
$ |
1,133,743 |
|
|
$ |
701,279 |
|
|
|
|
$ |
4,901,565 |
|
||
Effect of Currency Translation |
|
|
1,670 |
|
|
|
(22,270 |
) |
|
|
1,702 |
|
|
|
|
|
(18,898 |
) |
||
Adjusted Revenue (Organic) |
|
$ |
3,068,213 |
|
|
$ |
1,111,473 |
|
|
$ |
702,981 |
|
|
|
|
$ |
4,882,667 |
|
||
Revenue Growth (as reported) |
|
|
10.08 |
% |
|
|
21.31 |
% |
|
|
4.64 |
% |
|
|
|
|
11.64 |
% |
||
Adjusted Revenue Growth (Organic) |
|
|
10.14 |
% |
|
|
18.92 |
% |
|
|
4.90 |
% |
|
|
|
|
11.21 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (as reported) |
|
$ |
221,838 |
|
|
$ |
41,227 |
|
|
$ |
58,097 |
|
|
$ |
(43,247 |
) |
|
$ |
277,915 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
19,268 |
|
|
|
3,540 |
|
|
|
6,502 |
|
|
|
— |
|
|
|
29,310 |
|
Severance and Other Charges |
|
|
— |
|
|
|
3,861 |
|
|
|
— |
|
|
|
— |
|
|
|
3,861 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
18,221 |
|
|
|
12,962 |
|
|
|
31,183 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(6,990 |
) |
|
|
3,758 |
|
|
|
— |
|
|
|
109 |
|
|
|
(3,123 |
) |
Adjusted Operating Income |
|
$ |
234,116 |
|
|
$ |
52,386 |
|
|
$ |
82,820 |
|
|
$ |
(30,176 |
) |
|
$ |
339,146 |
|
Effect of Currency Translation |
|
|
297 |
|
|
|
(1,885 |
) |
|
|
65 |
|
|
|
— |
|
|
|
(1,523 |
) |
Adjusted Operating Income (Constant Currency) |
|
$ |
234,413 |
|
|
$ |
50,501 |
|
|
$ |
82,885 |
|
|
$ |
(30,176 |
) |
|
$ |
337,623 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income Growth (as reported) |
|
|
24.09 |
% |
|
|
129.49 |
% |
|
|
36.19 |
% |
|
|
(5.08 |
)% |
|
|
40.19 |
% |
Adjusted Operating Income Growth |
|
|
23.96 |
% |
|
|
57.19 |
% |
|
|
15.22 |
% |
|
|
1.82 |
% |
|
|
28.78 |
% |
Adjusted Operating Income Growth (Constant Currency) |
|
|
24.11 |
% |
|
|
51.53 |
% |
|
|
15.31 |
% |
|
|
1.82 |
% |
|
|
28.21 |
% |
Adjusted Operating Income Margin |
|
|
7.63 |
% |
|
|
4.62 |
% |
|
|
11.81 |
% |
|
|
|
|
6.92 |
% |
||
Adjusted Operating Income Margin (Constant Currency) |
|
|
7.64 |
% |
|
|
4.54 |
% |
|
|
11.79 |
% |
|
|
|
|
6.91 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Uniform |
|
Corporate |
|
|
||||||||||
Revenue (as reported) |
|
$ |
2,785,681 |
|
|
$ |
934,602 |
|
|
$ |
670,174 |
|
|
|
|
$ |
4,390,457 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (as reported) |
|
$ |
178,773 |
|
|
$ |
17,965 |
|
|
$ |
42,658 |
|
|
$ |
(41,155 |
) |
|
$ |
198,241 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
18,920 |
|
|
|
2,178 |
|
|
|
6,508 |
|
|
|
— |
|
|
|
27,606 |
|
Severance and Other Charges |
|
|
7,698 |
|
|
|
11,908 |
|
|
|
— |
|
|
|
— |
|
|
|
19,606 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
2,235 |
|
|
|
3,636 |
|
|
|
5,871 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(16,521 |
) |
|
|
1,276 |
|
|
|
20,480 |
|
|
|
6,784 |
|
|
|
12,019 |
|
Adjusted Operating Income |
|
$ |
188,870 |
|
|
$ |
33,327 |
|
|
$ |
71,881 |
|
|
$ |
(30,735 |
) |
|
$ |
263,343 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income Margin (as reported) |
|
|
6.42 |
% |
|
|
1.92 |
% |
|
|
6.37 |
% |
|
|
|
|
4.52 |
% |
||
Adjusted Operating Income Margin |
|
|
6.78 |
% |
|
|
3.57 |
% |
|
|
10.73 |
% |
|
|
|
6.00 |
% |
ARAMARK AND SUBSIDIARIES |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(In thousands) |
||||||||||||||||||||
|
|
Fiscal Year Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Uniform |
|
Corporate |
|
|
||||||||||
Revenue (as reported) |
|
$ |
11,721,368 |
|
|
$ |
4,361,844 |
|
|
$ |
2,770,645 |
|
|
|
|
$ |
18,853,857 |
|
||
Operating Income (as reported) |
|
$ |
669,570 |
|
|
$ |
114,480 |
|
|
$ |
227,272 |
|
|
$ |
(148,396 |
) |
|
$ |
862,926 |
|
Operating Income Margin (as reported) |
|
|
5.71 |
% |
|
|
2.62 |
% |
|
|
8.20 |
% |
|
|
|
|
4.58 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue (as reported) |
|
$ |
11,721,368 |
|
|
$ |
4,361,844 |
|
|
$ |
2,770,645 |
|
|
|
|
$ |
18,853,857 |
|
||
Effect of Certain Acquisitions |
|
|
(186,463 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
(186,463 |
) |
||
Effect of Currency Translation |
|
|
9,516 |
|
|
|
183,410 |
|
|
|
14,364 |
|
|
|
|
|
207,290 |
|
||
Adjusted Revenue (Organic) |
|
$ |
11,544,421 |
|
|
$ |
4,545,254 |
|
|
$ |
2,785,009 |
|
|
|
|
$ |
18,874,684 |
|
||
Revenue Growth (as reported) |
|
|
16.85 |
% |
|
|
19.29 |
% |
|
|
4.97 |
% |
|
|
|
|
15.48 |
% |
||
Adjusted Revenue Growth (Organic) |
|
|
15.09 |
% |
|
|
24.31 |
% |
|
|
5.52 |
% |
|
|
|
|
15.61 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (as reported) |
|
$ |
669,570 |
|
|
$ |
114,480 |
|
|
$ |
227,272 |
|
|
$ |
(148,396 |
) |
|
$ |
862,926 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
76,798 |
|
|
|
12,664 |
|
|
|
26,007 |
|
|
|
— |
|
|
|
115,469 |
|
Severance and Other Charges |
|
|
2,310 |
|
|
|
29,951 |
|
|
|
4,672 |
|
|
|
552 |
|
|
|
37,485 |
|
Effect of Certain Acquisitions |
|
|
(8,631 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,631 |
) |
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
31,182 |
|
|
|
19,922 |
|
|
|
51,104 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(46,869 |
) |
|
|
18,915 |
|
|
|
2,410 |
|
|
|
1,994 |
|
|
|
(23,550 |
) |
Adjusted Operating Income |
|
$ |
693,178 |
|
|
$ |
176,010 |
|
|
$ |
291,543 |
|
|
$ |
(125,928 |
) |
|
$ |
1,034,803 |
|
Effect of Currency Translation |
|
|
1,809 |
|
|
|
6,422 |
|
|
|
603 |
|
|
|
— |
|
|
|
8,834 |
|
Adjusted Operating Income (Constant Currency) |
|
$ |
694,987 |
|
|
$ |
182,432 |
|
|
$ |
292,146 |
|
|
$ |
(125,928 |
) |
|
$ |
1,043,637 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income Growth (as reported) |
|
|
49.12 |
% |
|
|
1.75 |
% |
|
|
4.24 |
% |
|
|
1.86 |
% |
|
|
37.33 |
% |
Adjusted Operating Income Growth |
|
|
34.66 |
% |
|
|
28.00 |
% |
|
|
9.83 |
% |
|
|
9.56 |
% |
|
|
32.92 |
% |
Adjusted Operating Income Growth (Constant Currency) |
|
|
35.01 |
% |
|
|
32.67 |
% |
|
|
10.06 |
% |
|
|
9.56 |
% |
|
|
34.06 |
% |
Adjusted Operating Income Margin |
|
|
6.01 |
% |
|
|
4.04 |
% |
|
|
10.52 |
% |
|
|
|
|
5.54 |
% |
||
Adjusted Operating Income Margin (Constant Currency) |
|
|
6.02 |
% |
|
|
4.01 |
% |
|
|
10.49 |
% |
|
|
|
|
5.53 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fiscal Year Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Uniform |
|
Corporate |
|
|
||||||||||
Revenue (as reported) |
|
$ |
10,030,829 |
|
|
$ |
3,656,440 |
|
|
$ |
2,639,355 |
|
|
|
|
$ |
16,326,624 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (as reported) |
|
$ |
449,021 |
|
|
$ |
112,516 |
|
|
$ |
218,036 |
|
|
$ |
(151,208 |
) |
|
$ |
628,365 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
73,165 |
|
|
|
9,609 |
|
|
|
25,902 |
|
|
|
— |
|
|
|
108,676 |
|
Severance and Other Charges |
|
|
7,698 |
|
|
|
11,908 |
|
|
|
— |
|
|
|
— |
|
|
|
19,606 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
4,143 |
|
|
|
5,166 |
|
|
|
9,309 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(15,112 |
) |
|
|
3,473 |
|
|
|
17,367 |
|
|
|
6,807 |
|
|
|
12,535 |
|
Adjusted Operating Income |
|
$ |
514,772 |
|
|
$ |
137,506 |
|
|
$ |
265,448 |
|
|
$ |
(139,235 |
) |
|
$ |
778,491 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income Margin (as reported) |
|
|
4.48 |
% |
|
|
3.08 |
% |
|
|
8.26 |
% |
|
|
|
|
3.85 |
% |
||
Adjusted Operating Income Margin |
|
|
5.13 |
% |
|
|
3.76 |
% |
|
|
10.06 |
% |
|
|
|
|
4.77 |
% |
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 |
|
Fiscal Year Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
205,432 |
|
|
$ |
75,796 |
|
|
$ |
674,108 |
|
|
$ |
194,484 |
|
Adjustment: |
|
|
|
|
|
|
|
|
||||||||
Amortization of Acquisition-Related Intangible Assets |
|
|
29,310 |
|
|
|
27,606 |
|
|
|
115,469 |
|
|
|
108,676 |
|
Severance and Other Charges |
|
|
3,861 |
|
|
|
19,606 |
|
|
|
37,485 |
|
|
|
19,606 |
|
Effect of Certain Acquisitions |
|
|
— |
|
|
|
— |
|
|
|
(8,631 |
) |
|
|
— |
|
Spin-off Related Charges |
|
|
31,183 |
|
|
|
5,871 |
|
|
|
51,104 |
|
|
|
9,309 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(3,123 |
) |
|
|
12,019 |
|
|
|
(23,550 |
) |
|
|
12,535 |
|
Gain on Sale of Equity Investments, net |
|
|
(51,831 |
) |
|
|
— |
|
|
|
(427,803 |
) |
|
|
— |
|
Loss on Defined Benefit Pension Plan Termination |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,644 |
|
Effect of Debt Repayments and Refinancings on Interest and Other Financing Costs, net |
|
|
— |
|
|
|
— |
|
|
|
2,522 |
|
|
|
— |
|
Effect of Tax Legislation on Provision for Income Taxes |
|
|
— |
|
|
|
(4,233 |
) |
|
|
— |
|
|
|
(4,233 |
) |
Tax Impact of Adjustments to Adjusted Net Income |
|
|
(46,435 |
) |
|
|
(15,400 |
) |
|
|
25,390 |
|
|
|
(44,968 |
) |
Adjusted Net Income |
|
$ |
168,397 |
|
|
$ |
121,265 |
|
|
$ |
446,094 |
|
|
$ |
299,053 |
|
Effect of Currency Translation, net of Tax |
|
|
(2,872 |
) |
|
|
— |
|
|
|
7,984 |
|
|
|
— |
|
Adjusted Net Income (Constant Currency) |
|
$ |
165,525 |
|
|
$ |
121,265 |
|
|
$ |
454,078 |
|
|
$ |
299,053 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Share (as reported) |
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
205,432 |
|
|
$ |
75,796 |
|
|
$ |
674,108 |
|
|
$ |
194,484 |
|
Diluted Weighted Average Shares Outstanding |
|
|
263,454 |
|
|
|
260,117 |
|
|
|
262,594 |
|
|
|
259,074 |
|
|
|
$ |
0.78 |
|
|
$ |
0.29 |
|
|
$ |
2.57 |
|
|
$ |
0.75 |
|
Earnings Per Share Growth (as reported) $ |
|
$ |
0.49 |
|
|
|
|
$ |
1.82 |
|
|
|
||||
Earnings Per Share Growth (as reported) % |
|
|
169 |
% |
|
|
|
|
243 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income |
|
$ |
168,397 |
|
|
$ |
121,265 |
|
|
$ |
446,094 |
|
|
$ |
299,053 |
|
Diluted Weighted Average Shares Outstanding |
|
|
263,454 |
|
|
|
260,117 |
|
|
|
262,594 |
|
|
|
259,074 |
|
|
|
$ |
0.64 |
|
|
$ |
0.47 |
|
|
$ |
1.70 |
|
|
$ |
1.15 |
|
Adjusted Earnings Per Share Growth $ |
|
$ |
0.17 |
|
|
|
|
$ |
0.55 |
|
|
|
||||
Adjusted Earnings Per Share Growth % |
|
|
36 |
% |
|
|
|
|
48 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Earnings Per Share (Constant Currency) |
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income (Constant Currency) |
|
$ |
165,525 |
|
|
$ |
121,265 |
|
|
$ |
454,078 |
|
|
$ |
299,053 |
|
Diluted Weighted Average Shares Outstanding |
|
|
263,454 |
|
|
|
260,117 |
|
|
|
262,594 |
|
|
|
259,074 |
|
|
|
$ |
0.63 |
|
|
$ |
0.47 |
|
|
$ |
1.73 |
|
|
$ |
1.15 |
|
Adjusted Earnings Per Share Growth (Constant Currency) $ |
|
$ |
0.16 |
|
|
|
|
$ |
0.58 |
|
|
|
||||
Adjusted Earnings Per Share Growth (Constant Currency) % |
|
|
34 |
% |
|
|
|
|
50 |
% |
|
|
ARAMARK AND SUBSIDIARIES |
|||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||
NET DEBT TO COVENANT ADJUSTED EBITDA |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
|
|
|
|
|
|||
|
|
Twelve Months Ended |
|||||
|
|
|
|
|
|||
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
674,108 |
|
|
$ |
194,484 |
Interest and Other Financing Costs, net |
|
|
439,585 |
|
|
|
372,727 |
Provision for Income Taxes |
|
|
177,614 |
|
|
|
61,461 |
Depreciation and Amortization |
|
|
546,362 |
|
|
|
532,327 |
Share-based compensation expense(1) |
|
|
86,938 |
|
|
|
95,487 |
Unusual or non-recurring (gains) and losses(2) |
|
|
(422,596 |
) |
|
|
— |
Pro forma EBITDA for certain transactions(3) |
|
|
4,033 |
|
|
|
11,750 |
Other(4)(5) |
|
|
100,681 |
|
|
|
53,466 |
Covenant Adjusted EBITDA |
|
$ |
1,606,725 |
|
|
$ |
1,321,702 |
|
|
|
|
|
|||
Net Debt to Covenant Adjusted EBITDA |
|
|
|
|
|||
Total Long-Term Borrowings(6) |
|
$ |
6,763,514 |
|
|
$ |
7,410,907 |
Less: Cash and cash equivalents and short-term marketable securities(6)(7) |
|
|
573,853 |
|
|
|
407,656 |
Net Debt |
|
$ |
6,189,661 |
|
|
$ |
7,003,251 |
Covenant Adjusted EBITDA |
|
$ |
1,606,725 |
|
|
$ |
1,321,702 |
Net Debt/Covenant Adjusted EBITDA |
|
|
3.9 |
|
|
|
5.3 |
|
|
|
|
|
|||
(1) Represents share-based compensation expense resulting from the application of accounting for stock options, restricted stock units, performance stock units, deferred stock unit awards and employee stock purchases. |
|||||||
(2) The twelve months ended |
|||||||
(3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period. |
|||||||
(4) "Other" for the twelve months ended |
|||||||
(5) "Other" for the twelve months ended |
|||||||
(6) "Total Long-Term Borrowings" and "Cash and cash equivalents and short term marketable securities" excludes both the outstanding liability and the related cash proceeds resulting from the |
|||||||
(7) 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 Consolidated Balance Sheets. |
ARAMARK AND SUBSIDIARIES |
|||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||||
FREE CASH FLOW |
|||||||||||
(Unaudited) |
|||||||||||
(In thousands) |
|||||||||||
|
|
|
|
|
|
||||||
|
Fiscal Year Ended |
|
Nine Months Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
||||||
|
$ |
766,429 |
|
|
$ |
(270,093 |
) |
|
$ |
1,036,522 |
|
|
|
|
|
|
|
||||||
Net purchases of property and equipment and other |
|
(432,166 |
) |
|
|
(287,302 |
) |
|
|
(144,864 |
) |
|
|
|
|
|
|
||||||
Free Cash Flow |
$ |
334,263 |
|
|
$ |
(557,395 |
) |
|
$ |
891,658 |
|
|
|
|
|
|
|
||||||
|
Fiscal Year Ended |
|
Nine Months Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
||||||
|
$ |
694,499 |
|
|
$ |
(141,993 |
) |
|
$ |
836,492 |
|
|
|
|
|
|
|
||||||
Net purchases of property and equipment and other |
|
(364,755 |
) |
|
|
(245,647 |
) |
|
|
(119,108 |
) |
|
|
|
|
|
|
||||||
Free Cash Flow |
$ |
329,744 |
|
|
$ |
(387,640 |
) |
|
$ |
717,384 |
|
|
|
|
|
|
|
||||||
|
Fiscal Year Ended |
|
Nine Months Ended |
|
Three Months Ended |
||||||
|
Change |
|
Change |
|
Change |
||||||
|
$ |
71,930 |
|
|
$ |
(128,100 |
) |
|
$ |
200,030 |
|
|
|
|
|
|
|
||||||
Net purchases of property and equipment and other |
|
(67,411 |
) |
|
|
(41,655 |
) |
|
|
(25,756 |
) |
|
|
|
|
|
|
||||||
Free Cash Flow |
$ |
4,519 |
|
|
$ |
(169,755 |
) |
|
$ |
174,274 |
|
|
|
|
|
|
|
||||||
|
Fiscal Year Ended |
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Free Cash Flow |
$ |
334,263 |
|
|
|
|
|
||||
Items: |
|
|
|
|
|
||||||
CARES Act Deferred Payroll Taxes |
|
64,247 |
|
|
|
|
|
||||
Spin-off and Restructuring Costs |
|
72,114 |
|
|
|
|
|
||||
Free Cash Flow Before Items |
$ |
470,624 |
|
|
|
|
|
ARAMARK AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
|
||||||||||||||
|
|
FSS United States |
|
|
|
Corporate |
|
Global FSS |
||||||||
Revenue (as reported) |
|
$ |
3,066,543 |
|
|
$ |
1,133,743 |
|
|
|
|
$ |
4,200,286 |
|
||
Operating Income (as reported) |
|
$ |
221,838 |
|
|
$ |
41,227 |
|
|
$ |
(43,247 |
) |
|
$ |
219,818 |
|
Operating Income Margin (as reported) |
|
|
7.23 |
% |
|
|
3.64 |
% |
|
|
|
|
5.23 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
Revenue (as reported) |
|
$ |
3,066,543 |
|
|
$ |
1,133,743 |
|
|
|
|
$ |
4,200,286 |
|
||
Effect of Currency Translation |
|
|
1,670 |
|
|
|
(22,270 |
) |
|
|
|
|
(20,600 |
) |
||
Adjusted Revenue (Organic) |
|
$ |
3,068,213 |
|
|
$ |
1,111,473 |
|
|
|
|
$ |
4,179,686 |
|
||
Revenue Growth (as reported) |
|
|
10.08 |
% |
|
|
21.31 |
% |
|
|
|
|
12.90 |
% |
||
Adjusted Revenue Growth (Organic) |
|
|
10.14 |
% |
|
|
18.92 |
% |
|
|
|
|
12.35 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (as reported) |
|
$ |
221,838 |
|
|
$ |
41,227 |
|
|
$ |
(43,247 |
) |
|
$ |
219,818 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
19,268 |
|
|
|
3,540 |
|
|
|
— |
|
|
|
22,808 |
|
Severance and Other Charges |
|
|
— |
|
|
|
3,861 |
|
|
|
— |
|
|
|
3,861 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
12,962 |
|
|
|
12,962 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(6,990 |
) |
|
|
3,758 |
|
|
|
109 |
|
|
|
(3,123 |
) |
Adjusted Operating Income |
|
$ |
234,116 |
|
|
$ |
52,386 |
|
|
$ |
(30,176 |
) |
|
$ |
256,326 |
|
Effect of Currency Translation |
|
|
297 |
|
|
|
(1,885 |
) |
|
|
— |
|
|
|
(1,588 |
) |
Adjusted Operating Income (Constant Currency) |
|
$ |
234,413 |
|
|
$ |
50,501 |
|
|
$ |
(30,176 |
) |
|
$ |
254,738 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income Growth (as reported) |
|
|
24.09 |
% |
|
|
129.49 |
% |
|
|
(5.08 |
)% |
|
|
41.29 |
% |
Adjusted Operating Income Growth |
|
|
23.96 |
% |
|
|
57.19 |
% |
|
|
1.82 |
% |
|
|
33.88 |
% |
Adjusted Operating Income Growth (Constant Currency) |
|
|
24.11 |
% |
|
|
51.53 |
% |
|
|
1.82 |
% |
|
|
33.05 |
% |
Adjusted Operating Income Margin |
|
|
7.63 |
% |
|
|
4.62 |
% |
|
|
|
|
6.10 |
% |
||
Adjusted Operating Income Margin (Constant Currency) |
|
|
7.64 |
% |
|
|
4.54 |
% |
|
|
|
|
6.09 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
|
||||||||||||||
|
|
FSS United States |
|
|
|
Corporate |
|
Global FSS |
||||||||
Revenue (as reported) |
|
$ |
2,785,681 |
|
|
$ |
934,602 |
|
|
|
|
$ |
3,720,283 |
|
||
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (as reported) |
|
$ |
178,773 |
|
|
$ |
17,965 |
|
|
$ |
(41,155 |
) |
|
$ |
155,583 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
18,920 |
|
|
|
2,178 |
|
|
|
— |
|
|
|
21,098 |
|
Severance and Other Charges |
|
|
7,698 |
|
|
|
11,908 |
|
|
|
— |
|
|
|
19,606 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
3,636 |
|
|
|
3,636 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(16,521 |
) |
|
|
1,276 |
|
|
|
6,784 |
|
|
|
(8,461 |
) |
Adjusted Operating Income |
|
$ |
188,870 |
|
|
$ |
33,327 |
|
|
$ |
(30,735 |
) |
|
$ |
191,462 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income Margin (as reported) |
|
|
6.42 |
% |
|
|
1.92 |
% |
|
|
|
|
4.18 |
% |
||
Adjusted Operating Income Margin |
|
|
6.78 |
% |
|
|
3.57 |
% |
|
|
|
|
5.15 |
% |
ARAMARK AND SUBSIDIARIES |
||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||||||
GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Fiscal Year Ended |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
|
FSS United States |
|
|
|
Corporate |
|
Global FSS |
|
Items to Rebase |
|
Rebased Global FSS |
||||||||||||
Revenue (as reported) |
|
$ |
11,721,368 |
|
|
$ |
4,361,844 |
|
|
|
|
$ |
16,083,212 |
|
|
|
|
$ |
16,083,212 |
|
||||
Operating Income (as reported) |
|
$ |
669,570 |
|
|
$ |
114,480 |
|
|
$ |
(148,396 |
) |
|
$ |
635,654 |
|
|
|
|
$ |
635,654 |
|
||
Operating Income Margin (as reported) |
|
|
5.71 |
% |
|
|
2.62 |
% |
|
|
|
|
3.95 |
% |
|
|
|
|
3.95 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue (as reported) |
|
$ |
11,721,368 |
|
|
$ |
4,361,844 |
|
|
|
|
$ |
16,083,212 |
|
|
$ |
— |
|
|
$ |
16,083,212 |
|
||
Effect of Certain Acquisitions |
|
|
(186,463 |
) |
|
|
— |
|
|
|
|
|
(186,463 |
) |
|
|
186,463 |
|
|
|
— |
|
||
Effect of Currency Translation |
|
|
9,516 |
|
|
|
183,410 |
|
|
|
|
|
192,926 |
|
|
|
(192,926 |
) |
|
|
— |
|
||
Adjusted Revenue (Organic) |
|
$ |
11,544,421 |
|
|
$ |
4,545,254 |
|
|
|
|
$ |
16,089,675 |
|
|
$ |
(6,463 |
) |
|
$ |
16,083,212 |
|
||
Revenue Growth (as reported) |
|
|
16.85 |
% |
|
|
19.29 |
% |
|
|
|
|
17.50 |
% |
|
|
|
|
||||||
Adjusted Revenue Growth (Organic) |
|
|
15.09 |
% |
|
|
24.31 |
% |
|
|
|
|
17.55 |
% |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Income (as reported) |
|
$ |
669,570 |
|
|
$ |
114,480 |
|
|
$ |
(148,396 |
) |
|
$ |
635,654 |
|
|
$ |
(10,626 |
) |
|
$ |
625,028 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
76,798 |
|
|
|
12,664 |
|
|
|
— |
|
|
|
89,462 |
|
|
|
— |
|
|
|
89,462 |
|
Severance and Other Charges |
|
|
2,310 |
|
|
|
29,951 |
|
|
|
552 |
|
|
|
32,813 |
|
|
|
— |
|
|
|
32,813 |
|
Effect of Certain Acquisitions |
|
|
(8,631 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,631 |
) |
|
|
8,631 |
|
|
|
— |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
19,922 |
|
|
|
19,922 |
|
|
|
|
|
19,922 |
|
||
Gains, Losses and Settlements impacting comparability |
|
|
(46,869 |
) |
|
|
18,915 |
|
|
|
1,994 |
|
|
|
(25,960 |
) |
|
|
1,639 |
|
|
|
(24,321 |
) |
Adjusted Operating Income |
|
$ |
693,178 |
|
|
$ |
176,010 |
|
|
$ |
(125,928 |
) |
|
$ |
743,260 |
|
|
$ |
(356 |
) |
|
$ |
742,904 |
|
Effect of Currency Translation |
|
|
1,809 |
|
|
|
6,422 |
|
|
|
— |
|
|
|
8,231 |
|
|
|
(8,231 |
) |
|
|
— |
|
Adjusted Operating Income (Constant Currency) |
|
$ |
694,987 |
|
|
$ |
182,432 |
|
|
$ |
(125,928 |
) |
|
$ |
751,491 |
|
|
$ |
(8,587 |
) |
|
$ |
742,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Income Growth (as reported) |
|
|
49.12 |
% |
|
|
1.75 |
% |
|
|
1.86 |
% |
|
|
54.91 |
% |
|
|
|
|
||||
Adjusted Operating Income Growth |
|
|
34.66 |
% |
|
|
28.00 |
% |
|
|
9.56 |
% |
|
|
44.87 |
% |
|
|
|
|
||||
Adjusted Operating Income Growth (Constant Currency) |
|
|
35.01 |
% |
|
|
32.67 |
% |
|
|
9.56 |
% |
|
|
46.48 |
% |
|
|
|
|
||||
Adjusted Operating Income Margin |
|
|
6.01 |
% |
|
|
4.04 |
% |
|
|
|
|
4.68 |
% |
|
|
|
|
||||||
Adjusted Operating Income Margin (Constant Currency) |
|
|
6.02 |
% |
|
|
4.01 |
% |
|
|
|
|
4.67 |
% |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Fiscal Year Ended |
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Corporate |
|
Global FSS |
|
|
|
|
||||||||||||
Revenue (as reported) |
|
$ |
10,030,829 |
|
|
$ |
3,656,440 |
|
|
|
|
$ |
13,687,269 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Income (as reported) |
|
$ |
449,021 |
|
|
$ |
112,516 |
|
|
$ |
(151,208 |
) |
|
$ |
410,329 |
|
|
|
|
|
||||
Amortization of Acquisition-Related Intangible Assets |
|
|
73,165 |
|
|
|
9,609 |
|
|
|
— |
|
|
|
82,774 |
|
|
|
|
|
||||
Severance and Other Charges |
|
|
7,698 |
|
|
|
11,908 |
|
|
|
— |
|
|
|
19,606 |
|
|
|
|
|
||||
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
5,166 |
|
|
|
5,166 |
|
|
|
|
|
||||
Gains, Losses and Settlements impacting comparability |
|
|
(15,112 |
) |
|
|
3,473 |
|
|
|
6,807 |
|
|
|
(4,832 |
) |
|
|
|
|
||||
Adjusted Operating Income |
|
$ |
514,772 |
|
|
$ |
137,506 |
|
|
$ |
(139,235 |
) |
|
$ |
513,043 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Income Margin (as reported) |
|
|
4.48 |
% |
|
|
3.08 |
% |
|
|
|
|
3.00 |
% |
|
|
|
|
||||||
Adjusted Operating Income Margin |
|
|
5.13 |
% |
|
|
3.76 |
% |
|
|
|
|
3.75 |
% |
|
|
|
|
ARAMARK AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||
REBASED GLOBAL FSS ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE |
||||||||||||
(Unaudited) |
||||||||||||
(In thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Fiscal Year Ended |
||||||||||
|
|
|
||||||||||
|
|
|
|
Items to Rebase |
|
Rebased Global FSS |
||||||
Net Income Attributable to Aramark Stockholders |
|
$ |
674,108 |
|
|
$ |
(226,432 |
) |
|
$ |
447,676 |
|
Adjustment: |
|
|
|
|
|
|
||||||
Amortization of Acquisition-Related Intangible Assets |
|
|
115,469 |
|
|
|
(26,007 |
) |
|
|
89,462 |
|
Severance and Other Charges |
|
|
37,485 |
|
|
|
(4,672 |
) |
|
|
32,813 |
|
Effect of Certain Acquisitions |
|
|
(8,631 |
) |
|
|
8,631 |
|
|
|
— |
|
Spin-off Related Charges |
|
|
51,104 |
|
|
|
(31,182 |
) |
|
|
19,922 |
|
Gains, Losses and Settlements impacting comparability |
|
|
(23,550 |
) |
|
|
(771 |
) |
|
|
(24,321 |
) |
Gain on Sale of Equity Investments, net |
|
|
(427,803 |
) |
|
|
51,831 |
|
|
|
(375,972 |
) |
Effect of Debt Repayments and Refinancings on Interest and Other Financing Costs, net |
|
|
2,522 |
|
|
|
— |
|
|
|
2,522 |
|
Tax Impact of Adjustments to Adjusted Net Income |
|
|
25,390 |
|
|
|
12,419 |
|
|
|
37,809 |
|
Adjusted Net Income |
|
$ |
446,094 |
|
|
$ |
(216,183 |
) |
|
$ |
229,911 |
|
Effect of Repayment of the 6.375% Senior Notes due 2025, net |
|
|
|
|
|
|
74,137 |
|
||||
Adjusted Net Income, Net of Interest Adjustment |
|
|
|
|
|
$ |
304,048 |
|
||||
|
|
|
|
|
|
|
||||||
Earnings Per Share |
|
|
|
|
|
|
||||||
Net Income Attributable to Aramark Stockholders |
|
|
|
|
|
$ |
447,676 |
|
||||
Diluted Weighted Average Shares Outstanding |
|
|
|
|
|
|
262,594 |
|
||||
|
|
|
|
|
|
$ |
1.70 |
|
||||
|
|
|
|
|
|
|
||||||
Adjusted Earnings Per Share |
|
|
|
|
|
|
||||||
Adjusted Net Income |
|
|
|
|
|
$ |
229,911 |
|
||||
Diluted Weighted Average Shares Outstanding |
|
|
|
|
|
|
262,594 |
|
||||
|
|
|
|
|
|
$ |
0.88 |
|
||||
|
|
|
|
|
|
|
||||||
Adjusted Earnings Per Share Net of Interest Adjustment |
|
|
|
|
|
|
||||||
Adjusted Net Income Net of Interest Adjustment |
|
|
|
|
|
$ |
304,048 |
|
||||
Diluted Weighted Average Shares Outstanding |
|
|
|
|
|
|
262,594 |
|
||||
|
|
|
|
|
|
$ |
1.16 |
|
ARAMARK AND SUBSIDIARIES |
||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(In thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Uniform |
|
Corporate |
|
|
||||||||||
Revenue (as reported) |
|
$ |
2,890,639 |
|
|
$ |
1,162,411 |
|
|
$ |
696,159 |
|
|
|
|
$ |
4,749,209 |
|
||
Operating Income (as reported) |
|
$ |
128,564 |
|
|
$ |
39,607 |
|
|
$ |
66,822 |
|
|
$ |
(31,611 |
) |
|
$ |
203,382 |
|
Operating Income Margin (as reported) |
|
|
4.45 |
% |
|
|
3.41 |
% |
|
|
9.60 |
% |
|
|
|
|
4.28 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue (as reported) |
|
$ |
2,890,639 |
|
|
$ |
1,162,411 |
|
|
$ |
696,159 |
|
|
|
|
$ |
4,749,209 |
|
||
Effect of Certain Acquisitions |
|
|
(47,165 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
(47,165 |
) |
||
Effect of Currency Translation |
|
|
2,778 |
|
|
|
14,626 |
|
|
|
3,342 |
|
|
|
|
|
20,746 |
|
||
Adjusted Revenue (Organic) |
|
$ |
2,846,252 |
|
|
$ |
1,177,037 |
|
|
$ |
699,501 |
|
|
|
|
$ |
4,722,790 |
|
||
Revenue Growth (as reported) |
|
|
16.49 |
% |
|
|
18.89 |
% |
|
|
4.19 |
% |
|
|
|
|
15.07 |
% |
||
Adjusted Revenue Growth (Organic) |
|
|
14.70 |
% |
|
|
20.38 |
% |
|
|
4.69 |
% |
|
|
|
|
14.43 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (as reported) |
|
$ |
128,564 |
|
|
$ |
39,607 |
|
|
$ |
66,822 |
|
|
$ |
(31,611 |
) |
|
$ |
203,382 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
19,196 |
|
|
|
3,362 |
|
|
|
6,502 |
|
|
|
— |
|
|
|
29,060 |
|
Severance and Other Charges |
|
|
— |
|
|
|
— |
|
|
|
(778 |
) |
|
|
— |
|
|
|
(778 |
) |
Effect of Certain Acquisitions |
|
|
(2,514 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,514 |
) |
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
6,005 |
|
|
|
3,529 |
|
|
|
9,534 |
|
Gains, Losses and Settlements impacting comparability |
|
|
1,579 |
|
|
|
3,090 |
|
|
|
(1,150 |
) |
|
|
(1,865 |
) |
|
|
1,654 |
|
Adjusted Operating Income |
|
$ |
146,825 |
|
|
$ |
46,059 |
|
|
$ |
77,401 |
|
|
$ |
(29,947 |
) |
|
$ |
240,338 |
|
Effect of Currency Translation |
|
|
287 |
|
|
|
368 |
|
|
|
174 |
|
|
|
— |
|
|
|
829 |
|
Adjusted Operating Income (Constant Currency) |
|
$ |
147,112 |
|
|
$ |
46,427 |
|
|
$ |
77,575 |
|
|
$ |
(29,947 |
) |
|
$ |
241,167 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income Growth (as reported) |
|
|
44.36 |
% |
|
|
13.97 |
% |
|
|
10.40 |
% |
|
|
13.28 |
% |
|
|
37.53 |
% |
Adjusted Operating Income Growth |
|
|
35.54 |
% |
|
|
20.40 |
% |
|
|
12.25 |
% |
|
|
15.97 |
% |
|
|
33.60 |
% |
Adjusted Operating Income Growth (Constant Currency) |
|
|
35.81 |
% |
|
|
21.36 |
% |
|
|
12.50 |
% |
|
|
15.97 |
% |
|
|
34.06 |
% |
Adjusted Operating Income Margin |
|
|
5.16 |
% |
|
|
3.96 |
% |
|
|
11.12 |
% |
|
|
|
|
5.11 |
% |
||
Adjusted Operating Income Margin (Constant Currency) |
|
|
5.17 |
% |
|
|
3.94 |
% |
|
|
11.09 |
% |
|
|
|
|
5.11 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
|
FSS United States |
|
|
|
Uniform |
|
Corporate |
|
|
||||||||||
Revenue (as reported) |
|
$ |
2,481,433 |
|
|
$ |
977,759 |
|
|
$ |
668,186 |
|
|
|
|
$ |
4,127,378 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income (as reported) |
|
$ |
89,059 |
|
|
$ |
34,752 |
|
|
$ |
60,528 |
|
|
$ |
(36,453 |
) |
|
$ |
147,886 |
|
Amortization of Acquisition-Related Intangible Assets |
|
|
17,856 |
|
|
|
2,312 |
|
|
|
6,519 |
|
|
|
— |
|
|
|
26,687 |
|
Spin-off Related Charges |
|
|
— |
|
|
|
— |
|
|
|
1,908 |
|
|
|
1,530 |
|
|
|
3,438 |
|
Gains, Losses and Settlements impacting comparability |
|
|
1,409 |
|
|
|
1,192 |
|
|
|
— |
|
|
|
(714 |
) |
|
|
1,887 |
|
Adjusted Operating Income |
|
$ |
108,324 |
|
|
$ |
38,256 |
|
|
$ |
68,955 |
|
|
$ |
(35,637 |
) |
|
$ |
179,898 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Income Margin (as reported) |
|
|
3.59 |
% |
|
|
3.55 |
% |
|
|
9.06 |
% |
|
|
|
|
3.58 |
% |
||
Adjusted Operating Income Margin |
|
|
4.37 |
% |
|
|
3.91 |
% |
|
|
10.32 |
% |
|
|
|
|
4.36 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231113428795/en/
Inquiries:
(215) 409-7287
Kissell-Felise@aramark.com
(215) 238-3953
Sullivan-Scott@aramark.com
Source: