 View printer-friendly version |
| << Back |
YEAR-OVER-YEAR SUMMARY
Note: As previously disclosed, the calendar shift resulting from the 53rd week in fiscal 2025 affects quarterly comparisons in fiscal 2026
-
Revenue +15%; Organic Revenue +12%
- Performance led by broad-based net new business and base business growth in both FSS United States and International; Approximately 3% benefit to Revenue and Organic Revenue growth from the calendar shift
-
New business wins have already reached a record
$1 billion this fiscal year to date; High client retention rate exceeding 98% across the Company
-
Operating Income +26%; Adjusted Operating Income (AOI) +24%1
- Enhanced technology capabilities resulted in additional productivity gains; Approximately 14% and 12% benefit to Operating Income and AOI growth, respectively, from the calendar shift
-
Profitability growth reflected strong revenue levels, supply chain efficiencies, and effective above-unit cost management
-
GAAP EPS +65% to
$0.38 ; Adjusted EPS +40%1 to$0.49 - Continued momentum in top and bottom line financial performance; Approximately 30% and 20% benefit to GAAP EPS and Adjusted EPS growth, respectively, from the calendar shift
-
Favorable business trends occurring throughout the organization
-
Disciplined Capital Allocation Priorities Contributed to Strong Cash Flow
-
Net cash provided by operating activities of
$400 million , +56%; Free Cash Flow of$305 million , +116%, with more than$1.4 billion in cash availability -
Proactively repaid
$55 million of 2030 Term Loans; Repurchased approximately$25 million of stock
-
Net cash provided by operating activities of
-
Recently Entered Hyperscale AI Data Center Market Offering Integrated Suite of Capabilities
- Launched Aramark Nexus™, a new platform delivering hospitality and workforce support services for hyperscale AI data centers and other large-scale, complex, and often remote operating environments
- New multi-year agreement with a top global hyperscaler underway; Significant pipeline of growth opportunities for Aramark Nexus™
|
1 |
On a constant currency basis |
“Our financial results underscore the continued momentum at the Company driven by our unwavering focus on delivering hospitality excellence,” said
“We’re excited about our entry into the hyperscale AI data center market with the launch of Aramark Nexus™ where we bring proven expertise in highly complex operations and an established competitive advantage. As we execute on our new multi-year engagement with a top global hyperscaler, this client is expected to become the largest in our portfolio. We believe there is substantial growth potential with this client and other hyperscalers, combined with the existing sales momentum occurring throughout our broader portfolio."
SECOND QUARTER RESULTS
Consolidated revenue was
|
|
Revenue |
|
||||
|
|
Q2 '26 |
Q2 '25 |
Change (%) |
|
Organic Revenue Change (%) |
|
|
FSS United States |
|
|
12 % |
|
12 % |
|
|
|
1,477 |
1,223 |
21 % |
|
13 % |
|
|
|
|
|
15 % |
|
12 % |
|
|
May not total due to rounding |
||||||
|
Difference between Change (%) and Organic Revenue Change (%) is the effect of currency translation |
||||||
-
FSS United States revenue growth was led by 1) Sports, Leisure & Corrections primarily from higher per cap spending and attendance levels in Sports & Entertainment, which included Opening Day of Major
League Baseball and the World Baseball Classic, as well as theNCAA Basketball Tournament; 2) Business & Industry from sustained double-digit growth with significant new business contribution, exceptionally high client retention rates, elevated catering demand, and an expanded Refreshments client base; and 3) Healthcare from onboarding new business. Revenue and Organic Revenue growth also benefited by approximately 4% from the calendar shift. -
FSS International revenue growth was across all geographies, driven by ongoing base business expansion and net new business performance—which included double-digit growth in bothEurope andCanada , and Emerging Markets experiencing high-single digit growth on an organic basis. The calendar shift positively affected Revenue and Organic Revenue growth by an estimated 1%. Revenue on a GAAP basis included the favorable effect of currency translation.
Operating Income was
|
|
Operating Income |
|
Adjusted Operating Income (AOI) |
|||||
|
|
Q2 '26 |
Q2 '25 |
Change (%) |
|
Q2 '26 |
Q2 '25 |
Change (%) |
Constant Currency Change (%) |
|
FSS United States |
|
|
27% |
|
|
|
27% |
27% |
|
|
61 |
52 |
19% |
|
69 |
58 |
19% |
12% |
|
Corporate |
(34) |
(29) |
(18)% |
|
(34) |
(29) |
(18)% |
(18)% |
|
|
|
|
26% |
|
|
|
26% |
24% |
|
May not total due to rounding |
||||||||
- FSS United States increased from accelerated revenue levels, enhanced technology driving additional productivity gains, supply chain efficiencies, and effective above-unit cost management. The calendar shift favorably affected Operating Income and AOI growth by an estimated 16% and 13%, respectively.
-
FSS International grew due to higher base business and net new business along with strengthened supply chain economics, which more than offset some in-country investments during the quarter to support significant growth. Operating Income on a GAAP basis included the favorable effect of currency translation. - Corporate expenses experienced higher share-based compensation.
CASH FLOW AND CAPITAL STRUCTURE
In the second quarter, the Company proactively repaid approximately
Aramark’s capital allocation priorities remain unchanged: invest in the business to drive and propel growth; repay debt on an ongoing basis, with leverage expected to be under 3.0x by the end of fiscal 2026; increase the dividend annually; and utilize excess cash generation to opportunistically repurchase
At quarter-end, the Company had more than
DIVIDEND DECLARATION
BUSINESS UPDATE
In the second quarter,
The Company recently launched Aramark Nexus™, a new platform delivering integrated hospitality and workforce support services for the hyperscale AI data center market and other large-scale, complex, and often remote operating environments.
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 2026 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
Based on
|
|
| Note: All percentages above are on a constant currency basis |
|
For easier comparison purposes, Fiscal 2025 Organic Revenue is on a 52-week basis |
“We enter the second half of the fiscal year with confidence in our growth trajectory and our ability to capitalize on the significant opportunities immediately ahead,” Zillmer added. “Our teams continue to deliver outstanding performance, and we remain focused on building upon this momentum and driving the business to even greater levels of success.”
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 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 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 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 attributable to
Free Cash Flow
Free Cash Flow represents net cash 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.
We use 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 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 impact of amortization expense recognized on acquisition-related intangible assets.
Severance and Other Charges - adjustments to eliminate severance expenses in the applicable period (
Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of the Company's ongoing operational performance, primarily for non-cash charges for the impairment of certain assets related to a business held-for-sale (
Effect of Debt Repayments and Refinancings on Interest Expense, net - adjustments to eliminate expenses associated with the refinancings by the Company in the applicable period such as payment of third party costs (
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 "Business Update," "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 the conflict in the
|
ARAMARK AND SUBSIDIARIES |
||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
|
(Unaudited) |
||||||
|
(In Thousands, Except Per Share Amounts) |
||||||
|
|
|
Three Months Ended |
||||
|
|
|
|
|
|
||
|
Revenue |
|
$ |
4,907,342 |
|
$ |
4,279,298 |
|
Costs and Expenses: |
|
|
|
|
||
|
Cost of services provided (exclusive of depreciation and amortization) |
|
|
4,480,948 |
|
|
3,919,653 |
|
Depreciation and amortization |
|
|
132,160 |
|
|
117,059 |
|
Selling and general corporate expenses |
|
|
74,485 |
|
|
68,411 |
|
Total costs and expenses |
|
|
4,687,593 |
|
|
4,105,123 |
|
Operating income |
|
|
219,749 |
|
|
174,175 |
|
Interest Expense, net |
|
|
82,241 |
|
|
89,704 |
|
Income Before Income Taxes |
|
|
137,508 |
|
|
84,471 |
|
Provision for Income Taxes |
|
|
35,368 |
|
|
22,498 |
|
Net income |
|
|
102,140 |
|
|
61,973 |
|
Less: Net income attributable to noncontrolling interests |
|
|
190 |
|
|
119 |
|
Net income attributable to |
|
$ |
101,950 |
|
$ |
61,854 |
|
|
|
|
|
|
||
|
Earnings per share attributable to |
|
|
|
|
||
|
Basic |
|
$ |
0.39 |
|
$ |
0.23 |
|
Diluted |
|
$ |
0.38 |
|
$ |
0.23 |
|
Weighted Average Shares Outstanding: |
|
|
|
|
||
|
Basic |
|
|
263,160 |
|
|
264,811 |
|
Diluted |
|
|
266,390 |
|
|
267,420 |
|
|
|
|
|
|
||
|
ARAMARK AND SUBSIDIARIES |
||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||
|
(Unaudited) |
||||||
|
(In Thousands, Except Per Share Amounts) |
||||||
|
|
|
Six Months Ended |
||||
|
|
|
|
|
|
||
|
Revenue |
|
$ |
9,738,891 |
|
$ |
8,831,384 |
|
Costs and Expenses: |
|
|
|
|
||
|
Cost of services provided (exclusive of depreciation and amortization) |
|
|
8,896,321 |
|
|
8,070,885 |
|
Depreciation and amortization |
|
|
258,114 |
|
|
230,263 |
|
Selling and general corporate expenses |
|
|
147,158 |
|
|
138,797 |
|
Total costs and expenses |
|
|
9,301,593 |
|
|
8,439,945 |
|
Operating income |
|
|
437,298 |
|
|
391,439 |
|
Interest Expense, net |
|
|
164,160 |
|
|
165,508 |
|
Income Before Income Taxes |
|
|
273,138 |
|
|
225,931 |
|
Provision for Income Taxes |
|
|
74,497 |
|
|
58,255 |
|
Net income |
|
|
198,641 |
|
|
167,676 |
|
Less: Net income attributable to noncontrolling interests |
|
|
530 |
|
|
203 |
|
Net income attributable to |
|
$ |
198,111 |
|
$ |
167,473 |
|
|
|
|
|
|
||
|
Earnings per share attributable to |
|
|
|
|
||
|
Basic |
|
$ |
0.75 |
|
$ |
0.63 |
|
Diluted |
|
$ |
0.74 |
|
$ |
0.62 |
|
Weighted Average Shares Outstanding: |
|
|
|
|
||
|
Basic |
|
|
263,144 |
|
|
264,846 |
|
Diluted |
|
|
266,382 |
|
|
268,076 |
|
|
|
|
|
|
||
|
ARAMARK AND SUBSIDIARIES |
||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
(Unaudited) |
||||||
|
(In Thousands) |
||||||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
Assets |
|
|
|
|
||
|
|
|
|
|
|
||
|
Current Assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
475,722 |
|
$ |
639,095 |
|
Receivables |
|
|
2,475,099 |
|
|
2,210,388 |
|
Inventories |
|
|
453,325 |
|
|
418,766 |
|
Prepayments and other current assets |
|
|
341,915 |
|
|
254,642 |
|
Total current assets |
|
|
3,746,061 |
|
|
3,522,891 |
|
Property and Equipment, net |
|
|
1,786,495 |
|
|
1,734,489 |
|
|
|
|
4,980,956 |
|
|
4,874,670 |
|
Other Intangible Assets |
|
|
1,907,892 |
|
|
1,874,067 |
|
Operating Lease Right-of-use Assets |
|
|
825,305 |
|
|
701,839 |
|
Other Assets |
|
|
593,941 |
|
|
596,673 |
|
|
|
$ |
13,840,650 |
|
$ |
13,304,629 |
|
|
|
|
|
|
||
|
Liabilities and Stockholders' Equity |
|
|
|
|
||
|
|
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
||
|
Current maturities of long-term borrowings |
|
$ |
33,853 |
|
$ |
31,543 |
|
Current operating lease liabilities |
|
|
65,314 |
|
|
60,744 |
|
Accounts payable |
|
|
1,246,368 |
|
|
1,522,747 |
|
Accrued expenses and other current liabilities |
|
|
1,744,183 |
|
|
1,931,688 |
|
Total current liabilities |
|
|
3,089,718 |
|
|
3,546,722 |
|
Long-Term Borrowings |
|
|
6,056,336 |
|
|
5,374,394 |
|
Noncurrent Operating Lease Liabilities |
|
|
266,806 |
|
|
255,305 |
|
Deferred Income Taxes and Other Noncurrent Liabilities |
|
|
1,085,590 |
|
|
966,019 |
|
Redeemable Noncontrolling Interests |
|
|
61,871 |
|
|
14,130 |
|
Total Stockholders' Equity |
|
|
3,280,329 |
|
|
3,148,059 |
|
|
|
$ |
13,840,650 |
|
$ |
13,304,629 |
|
|
|
|
|
|
||
|
ARAMARK AND SUBSIDIARIES |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(Unaudited) |
|||||||
|
(In Thousands) |
|||||||
|
|
|||||||
|
|
|||||||
|
|
Six Months Ended |
||||||
|
|
|
|
|||||
|
Cash flows from operating activities: |
|
|
|||||
|
Net income |
$ |
198,641 |
|
$ |
167,676 |
|
|
|
Adjustments to reconcile Net income to Net cash used in operating activities: |
|
|
|||||
|
Depreciation and amortization |
|
258,114 |
|
|
230,263 |
|
|
|
Asset write-downs |
|
6,058 |
|
|
— |
|
|
|
Increase in contingent consideration liability |
|
— |
|
|
11,127 |
|
|
|
Deferred income taxes |
|
37,430 |
|
|
2,931 |
|
|
|
Share-based compensation expense |
|
34,793 |
|
|
30,296 |
|
|
|
Changes in operating assets and liabilities |
|
(839,069 |
) |
|
(724,340 |
) |
|
|
Payments made to clients on contracts |
|
(151,368 |
) |
|
(86,850 |
) |
|
|
Other operating activities |
|
73,453 |
|
|
37,693 |
|
|
|
Net cash used in operating activities |
|
(381,948 |
) |
|
(331,204 |
) |
|
|
Cash flows from investing activities: |
|
|
|||||
|
Net purchases of property and equipment and other |
|
(214,878 |
) |
|
(232,486 |
) |
|
|
Acquisitions, divestitures and other investing activities |
|
(101,637 |
) |
|
(249,984 |
) |
|
|
Net cash used in investing activities |
|
(316,515 |
) |
|
(482,470 |
) |
|
|
Cash flows from financing activities: |
|
|
|||||
|
Net proceeds/payments of long-term borrowings |
|
(83,443 |
) |
|
414,590 |
|
|
|
Net change in Revolving Credit Facility |
|
140,366 |
|
|
275,882 |
|
|
|
Net change in funding under the Receivables Facility |
|
625,000 |
|
|
586,000 |
|
|
|
Payments of dividends |
|
(63,068 |
) |
|
(55,683 |
) |
|
|
Proceeds from issuance of common stock |
|
19,288 |
|
|
16,379 |
|
|
|
Repurchase of common stock |
|
(66,322 |
) |
|
(109,283 |
) |
|
|
Payments for contingent considerations |
|
(33,697 |
) |
|
(10,505 |
) |
|
|
Other financing activities |
|
(5,677 |
) |
|
(50,816 |
) |
|
|
Net cash provided by financing activities |
|
532,447 |
|
|
1,066,564 |
|
|
|
Effect of foreign exchange rates on cash and cash equivalents and restricted cash |
|
(335 |
) |
|
(11,497 |
) |
|
|
(Decrease) Increase in cash and cash equivalents and restricted cash |
|
(166,351 |
) |
|
241,393 |
|
|
|
Cash and cash equivalents and restricted cash, beginning of period |
|
707,144 |
|
|
732,613 |
|
|
|
Cash and cash equivalents and restricted cash, end of period |
$ |
540,793 |
|
$ |
974,006 |
|
|
|
Balance Sheet classification |
|
|
|||||
|
Cash and cash equivalents |
$ |
475,722 |
$ |
920,455 |
|||
|
Restricted cash in Prepayments and other current assets |
65,071 |
53,551 |
|||||
|
Total cash and cash equivalents and restricted cash |
$ |
540,793 |
$ |
974,006 |
|||
|
ARAMARK AND SUBSIDIARIES |
||||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
|
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
(In thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
|
|
FSS United States |
|
|
|
Corporate |
|
|
||||||||
|
Revenue (as reported) |
|
$ |
3,430,268 |
|
|
$ |
1,477,074 |
|
|
|
|
$ |
4,907,342 |
|
||
|
Operating Income (as reported) |
|
$ |
192,620 |
|
|
$ |
61,408 |
|
|
$ |
(34,279 |
) |
|
$ |
219,749 |
|
|
Operating Income Margin (as reported) |
|
|
5.6 |
% |
|
|
4.2 |
% |
|
|
|
|
4.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenue (as reported) |
|
$ |
3,430,268 |
|
|
$ |
1,477,074 |
|
|
|
|
$ |
4,907,342 |
|
||
|
Effect of Currency Translation |
|
|
(1,963 |
) |
|
|
(99,098 |
) |
|
|
|
|
(101,061 |
) |
||
|
Adjusted Revenue (Organic) |
|
$ |
3,428,305 |
|
|
$ |
1,377,976 |
|
|
|
|
$ |
4,806,281 |
|
||
|
Revenue Growth (as reported) |
|
|
12.2 |
% |
|
|
20.8 |
% |
|
|
|
|
14.7 |
% |
||
|
Adjusted Revenue Growth (Organic) |
|
|
12.2 |
% |
|
|
12.7 |
% |
|
|
|
|
12.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income (as reported) |
|
$ |
192,620 |
|
|
$ |
61,408 |
|
|
$ |
(34,279 |
) |
|
$ |
219,749 |
|
|
Amortization of Acquisition-Related Intangible Assets |
|
|
25,114 |
|
|
|
8,244 |
|
|
|
— |
|
|
|
33,358 |
|
|
Severance and Other Charges |
|
|
5,512 |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
|
Gains, Losses and Settlements impacting comparability |
|
|
— |
|
|
|
(916 |
) |
|
|
— |
|
|
|
(916 |
) |
|
Adjusted Operating Income |
|
$ |
223,246 |
|
|
$ |
68,736 |
|
|
$ |
(34,279 |
) |
|
$ |
257,703 |
|
|
Effect of Currency Translation |
|
|
(536 |
) |
|
|
(3,978 |
) |
|
|
— |
|
|
|
(4,514 |
) |
|
Adjusted Operating Income (Constant Currency) |
|
$ |
222,710 |
|
|
$ |
64,758 |
|
|
$ |
(34,279 |
) |
|
$ |
253,189 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income Growth (as reported) |
|
|
27.0 |
% |
|
|
19.1 |
% |
|
|
(17.9 |
)% |
|
|
26.2 |
% |
|
Adjusted Operating Income Growth |
|
|
26.9 |
% |
|
|
18.5 |
% |
|
|
(17.9 |
)% |
|
|
25.8 |
% |
|
Adjusted Operating Income Growth (Constant Currency) |
|
|
26.6 |
% |
|
|
11.6 |
% |
|
|
(17.9 |
)% |
|
|
23.6 |
% |
|
Adjusted Operating Income Margin |
|
|
6.5 |
% |
|
|
4.7 |
% |
|
|
|
|
5.3 |
% |
||
|
Adjusted Operating Income Margin (Constant Currency) |
|
|
6.5 |
% |
|
|
4.7 |
% |
|
|
|
|
5.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
|
|
FSS United States |
|
|
|
Corporate |
|
|
||||||||
|
Revenue (as reported) |
|
$ |
3,056,338 |
|
|
$ |
1,222,960 |
|
|
|
|
$ |
4,279,298 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income (as reported) |
|
$ |
151,686 |
|
|
$ |
51,553 |
|
|
$ |
(29,063 |
) |
|
$ |
174,176 |
|
|
Amortization of Acquisition-Related Intangible Assets |
|
|
24,195 |
|
|
|
5,827 |
|
|
|
— |
|
|
|
30,022 |
|
|
Gains, Losses and Settlements impacting comparability |
|
|
— |
|
|
|
622 |
|
|
|
— |
|
|
|
622 |
|
|
Adjusted Operating Income |
|
$ |
175,881 |
|
|
$ |
58,002 |
|
|
$ |
(29,063 |
) |
|
$ |
204,820 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income Margin (as reported) |
|
|
5.0 |
% |
|
|
4.2 |
% |
|
|
|
|
4.1 |
% |
||
|
Adjusted Operating Income Margin |
|
|
5.8 |
% |
|
|
4.7 |
% |
|
|
|
|
4.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
ARAMARK AND SUBSIDIARIES |
||||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
|
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
(In thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Six Months Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
|
|
FSS United States |
|
|
|
Corporate |
|
|
||||||||
|
Revenue (as reported) |
|
$ |
6,792,374 |
|
|
$ |
2,946,517 |
|
|
$ |
— |
|
|
$ |
9,738,891 |
|
|
Operating Income (as reported) |
|
$ |
381,368 |
|
|
$ |
121,198 |
|
|
$ |
(65,268 |
) |
|
$ |
437,298 |
|
|
Operating Income Margin (as reported) |
|
|
5.6 |
% |
|
|
4.1 |
% |
|
|
|
|
4.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenue (as reported) |
|
$ |
6,792,374 |
|
|
$ |
2,946,517 |
|
|
|
|
$ |
9,738,891 |
|
||
|
Effect of Currency Translation |
|
|
(2,035 |
) |
|
|
(150,401 |
) |
|
|
|
|
(152,436 |
) |
||
|
Adjusted Revenue (Organic) |
|
$ |
6,790,339 |
|
|
$ |
2,796,116 |
|
|
|
|
$ |
9,586,455 |
|
||
|
Revenue Growth (as reported) |
|
|
6.8 |
% |
|
|
19.1 |
% |
|
|
|
|
10.3 |
% |
||
|
Adjusted Revenue Growth (Organic) |
|
|
6.8 |
% |
|
|
13.0 |
% |
|
|
|
|
8.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income (as reported) |
|
$ |
381,368 |
|
|
$ |
121,198 |
|
|
$ |
(65,268 |
) |
|
$ |
437,298 |
|
|
Amortization of Acquisition-Related Intangible Assets |
|
|
50,276 |
|
|
|
15,083 |
|
|
|
— |
|
|
|
65,359 |
|
|
Severance and Other Charges |
|
|
5,512 |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
|
Gains, Losses and Settlements impacting comparability |
|
|
11,608 |
|
|
|
915 |
|
|
|
— |
|
|
|
12,523 |
|
|
Adjusted Operating Income |
|
$ |
448,764 |
|
|
$ |
137,196 |
|
|
$ |
(65,268 |
) |
|
$ |
520,692 |
|
|
Effect of Currency Translation |
|
|
(533 |
) |
|
|
(6,106 |
) |
|
|
— |
|
|
|
(6,639 |
) |
|
Adjusted Operating Income (Constant Currency) |
|
$ |
448,231 |
|
|
$ |
131,090 |
|
|
$ |
(65,268 |
) |
|
$ |
514,053 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income Growth (as reported) |
|
|
10.4 |
% |
|
|
15.2 |
% |
|
|
(10.2 |
)% |
|
|
11.7 |
% |
|
Adjusted Operating Income Growth |
|
|
10.9 |
% |
|
|
17.3 |
% |
|
|
(10.2 |
)% |
|
|
12.6 |
% |
|
Adjusted Operating Income Growth (Constant Currency) |
|
|
10.8 |
% |
|
|
12.0 |
% |
|
|
(10.2 |
)% |
|
|
11.2 |
% |
|
Adjusted Operating Income Margin |
|
|
6.6 |
% |
|
|
4.7 |
% |
|
|
|
|
5.3 |
% |
||
|
Adjusted Operating Income Margin (Constant Currency) |
|
|
6.6 |
% |
|
|
4.7 |
% |
|
|
|
|
5.4 |
% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Six Months Ended |
||||||||||||||
|
|
|
|
||||||||||||||
|
|
|
FSS United States |
|
|
|
Corporate |
|
|
||||||||
|
Revenue (as reported) |
|
$ |
6,357,354 |
|
|
$ |
2,474,030 |
|
|
|
|
$ |
8,831,384 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income (as reported) |
|
$ |
345,404 |
|
|
$ |
105,238 |
|
|
$ |
(59,203 |
) |
|
$ |
391,439 |
|
|
Amortization of Acquisition-Related Intangible Assets |
|
|
48,054 |
|
|
|
10,452 |
|
|
|
— |
|
|
|
58,506 |
|
|
Gains, Losses and Settlements impacting comparability |
|
|
11,127 |
|
|
|
1,315 |
|
|
|
— |
|
|
|
12,442 |
|
|
Adjusted Operating Income |
|
$ |
404,585 |
|
|
$ |
117,005 |
|
|
$ |
(59,203 |
) |
|
$ |
462,387 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income Margin (as reported) |
|
|
5.4 |
% |
|
|
4.3 |
% |
|
|
|
|
4.4 |
% |
||
|
Adjusted Operating Income Margin |
|
|
6.4 |
% |
|
|
4.7 |
% |
|
|
|
|
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 |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
101,950 |
|
|
$ |
61,854 |
|
|
$ |
198,111 |
|
|
$ |
167,473 |
|
|
|
|
Adjustment: |
|
|
|
|
|
|
|
|
||||||||
|
|
Amortization of Acquisition-Related Intangible Assets |
|
|
33,358 |
|
|
|
30,022 |
|
|
|
65,359 |
|
|
|
58,506 |
|
|
|
Severance and Other Charges |
|
|
5,512 |
|
|
|
— |
|
|
|
5,512 |
|
|
|
— |
|
|
|
Gains, Losses and Settlements impacting comparability |
|
|
(916 |
) |
|
|
622 |
|
|
|
12,523 |
|
|
|
12,442 |
|
|
|
Effect of Debt Repricing and Repayments on Interest Expense, net |
|
|
— |
|
|
|
8,326 |
|
|
|
1,121 |
|
|
|
8,326 |
|
|
|
Tax Impact of Adjustments to Adjusted Net Income |
|
|
(9,058 |
) |
|
|
(9,030 |
) |
|
|
(16,226 |
) |
|
|
(18,019 |
) |
|
Adjusted Net Income |
|
$ |
130,846 |
|
|
$ |
91,794 |
|
|
$ |
266,400 |
|
|
$ |
228,728 |
|
|
|
|
Effect of Currency Translation, net of Tax |
|
|
(2,980 |
) |
|
|
— |
|
|
|
(3,851 |
) |
|
|
— |
|
|
Adjusted Net Income (Constant Currency) |
|
$ |
127,866 |
|
|
$ |
91,794 |
|
|
$ |
262,549 |
|
|
$ |
228,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings Per Share (as reported) |
|
|
|
|
|
|
|
|
|||||||||
|
|
Net Income Attributable to Aramark Stockholders (as reported) |
|
$ |
101,950 |
|
|
$ |
61,854 |
|
|
$ |
198,111 |
|
|
$ |
167,473 |
|
|
|
Diluted Weighted Average Shares Outstanding |
|
|
266,390 |
|
|
|
267,420 |
|
|
|
266,382 |
|
|
|
268,076 |
|
|
|
|
|
$ |
0.38 |
|
|
$ |
0.23 |
|
|
$ |
0.74 |
|
|
$ |
0.62 |
|
|
|
Earnings Per Share Growth (as reported) % |
|
|
65.5 |
% |
|
|
|
|
19.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
|||||||||
|
|
Adjusted Net Income |
|
$ |
130,846 |
|
|
$ |
91,794 |
|
|
$ |
266,400 |
|
|
$ |
228,728 |
|
|
|
Diluted Weighted Average Shares Outstanding |
|
|
266,390 |
|
|
|
267,420 |
|
|
|
266,382 |
|
|
|
268,076 |
|
|
|
|
|
$ |
0.49 |
|
|
$ |
0.34 |
|
|
$ |
1.00 |
|
|
$ |
0.85 |
|
|
|
Adjusted Earnings Per Share Growth % |
|
|
43.1 |
% |
|
|
|
|
17.2 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted Earnings Per Share (Constant Currency) |
|
|
|
|
|
|
|
|
|||||||||
|
|
Adjusted Net Income (Constant Currency) |
|
$ |
127,866 |
|
|
$ |
91,794 |
|
|
$ |
262,549 |
|
|
$ |
228,728 |
|
|
|
Diluted Weighted Average Shares Outstanding |
|
|
266,390 |
|
|
|
267,420 |
|
|
|
266,382 |
|
|
|
268,076 |
|
|
|
|
|
$ |
0.48 |
|
|
$ |
0.34 |
|
|
$ |
0.99 |
|
|
$ |
0.85 |
|
|
|
Adjusted Earnings Per Share Growth (Constant Currency) % |
|
|
39.8 |
% |
|
|
|
|
15.5 |
% |
|
|
||||
|
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) |
|
$ |
357,032 |
|
$ |
348,010 |
|
|
|
|
Interest Expense, net |
|
|
340,577 |
|
|
331,285 |
|
|
|
Provision for Income Taxes |
|
|
119,828 |
|
|
117,649 |
|
|
|
Depreciation and Amortization |
|
|
504,196 |
|
|
451,148 |
|
|
|
Share-based compensation expense(1) |
|
|
62,695 |
|
|
63,062 |
|
|
|
Unusual or non-recurring losses and (gains)(2) |
|
|
25,523 |
|
|
(25,071 |
) |
|
|
Pro forma EBITDA for certain transactions(3) |
|
|
36,604 |
|
|
28,502 |
|
|
|
Other(4)(5) |
|
|
127,504 |
|
|
95,335 |
|
|
Covenant Adjusted EBITDA |
|
$ |
1,573,959 |
|
$ |
1,409,920 |
|
|
|
|
|
|
|
|
||||
|
Net Debt to Covenant Adjusted EBITDA |
|
|
|
|
||||
|
|
Total Long-Term Borrowings |
|
$ |
6,090,189 |
|
$ |
6,532,881 |
|
|
|
Less: Cash and cash equivalents and short-term marketable securities(6) |
|
|
475,722 |
|
|
963,721 |
|
|
|
Net Debt |
|
$ |
5,614,467 |
|
$ |
5,569,160 |
|
|
|
Covenant Adjusted EBITDA |
|
$ |
1,573,959 |
|
$ |
1,409,920 |
|
|
|
Net Debt/Covenant Adjusted EBITDA |
|
|
3.6 |
|
|
3.9 |
|
|
|
|
|
|
|
||||
|
(1) Represents share-based compensation expense of equity awards resulting from the application of accounting for stock options, restricted stock units, performance stock units and deferred stock unit awards. |
||||||||
|
(2) The twelve months ended |
||||||||
|
(3) Represents the annualizing of net EBITDA from certain acquisitions made during the period and, for purposes of the Credit Agreement, the net benefit from cost savings initiatives ( |
||||||||
|
(4) "Other" for the twelve months ended |
||||||||
|
(5) "Other" for the twelve months ended |
||||||||
|
(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. |
||||||||
|
ARAMARK AND SUBSIDIARIES |
|||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||||
|
FREE CASH FLOW |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(In thousands) |
|||||||||||
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
|
||||||
|
Net cash (used in) provided by operating activities |
$ |
(381,948 |
) |
|
$ |
(782,200 |
) |
|
$ |
400,252 |
|
|
|
|
|
|
|
|
||||||
|
Net purchases of property and equipment and other |
|
(214,878 |
) |
|
|
(120,033 |
) |
|
|
(94,845 |
) |
|
|
|
|
|
|
|
||||||
|
Free Cash Flow |
$ |
(596,826 |
) |
|
$ |
(902,233 |
) |
|
$ |
305,407 |
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||
|
|
|
|
|
|
|
||||||
|
Net cash (used in) provided by operating activities |
$ |
(331,204 |
) |
|
$ |
(587,152 |
) |
|
$ |
255,948 |
|
|
|
|
|
|
|
|
||||||
|
Net purchases of property and equipment and other |
|
(232,486 |
) |
|
|
(117,788 |
) |
|
|
(114,698 |
) |
|
|
|
|
|
|
|
||||||
|
Free Cash Flow |
$ |
(563,690 |
) |
|
$ |
(704,940 |
) |
|
$ |
141,250 |
|
|
|
|
|
|
|
|
||||||
|
|
Six Months Ended |
|
Three Months Ended |
|
Three Months Ended |
||||||
|
|
Change |
|
Change |
|
Change |
||||||
|
Net cash (used in) provided by operating activities |
$ |
(50,744 |
) |
|
$ |
(195,048 |
) |
|
$ |
144,304 |
|
|
|
|
|
|
|
|
||||||
|
Net purchases of property and equipment and other |
|
17,608 |
|
|
|
(2,245 |
) |
|
|
19,853 |
|
|
|
|
|
|
|
|
||||||
|
Free Cash Flow |
$ |
(33,136 |
) |
|
$ |
(197,293 |
) |
|
$ |
164,157 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260511137947/en/
Inquiries:
(215) 409-7287
Kissell-Felise@aramark.com
(215) 409-7945
Cleary-Gene@aramark.com
Source: