May 7, 2024 | |||||||||||
Date of Report (Date of earliest event reported)
____________________________
| |||||||||||
Aramark | |||||||||||
(Exact name of Registrant as Specified in its Charter)
____________________________
| |||||||||||
Delaware | 001-36223 | 20-8236097 | |||||||||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
2400 Market Street | 19103 | ||||||||||
Philadelphia, | Pennsylvania | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
(215) |
238-3000 |
||||||||||
(Registrant's Telephone Number, Including Area Code) | |||||||||||
N/A
(Former name or former address, if changed since last report.)
|
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | |||||||||
Common Stock, | par value $0.01 per share | ARMK | New York Stock Exchange |
(d) | Exhibits |
Exhibit No. | Description | |||||||
Aramark | ||||||||||||||
Date: | May 7, 2024 | By: | /s/ JAMES J. TARANGELO | |||||||||||
Name: | JAMES J. TARANGELO | |||||||||||||
Title: | Senior Vice President and | |||||||||||||
Chief Financial Officer |
Exhibit No. | Description | |||||||
For Immediate Release |
Inquiries:
Felise Glantz Kissell
(215) 409-7287
Kissell-Felise@aramark.com
|
||||
Gene Cleary
(215) 409-7945
Cleary-Gene@aramark.com
|
Revenue | ||||||||||||||
Q2 '24 | Q2 '23 | Change (%) | Organic Revenue Change (%) |
|||||||||||
FSS United States | $3,044M | $2,843M | 7% | 7% | ||||||||||
FSS International | 1,156 | 1,073 | 8% | 16% | ||||||||||
Total Company | $4,200M | $3,916M | 7% | 9% |
Operating Income | Adjusted Operating Income (AOI) | |||||||||||||||||||||||||
Q2 '24 | Q2 '23 | Change (%) | Q2 '24 | Q2 '23 | Change (%) | Constant Currency Change (%) | ||||||||||||||||||||
FSS United States | $144M | $151M | (4)% | $168M | $139M | 21% | 21% | |||||||||||||||||||
FSS International* | 43 | 7 | *** | 47 | 39 | 21% | 29% | |||||||||||||||||||
Corporate | (28) | (33) | 15% | (28) | (30) | 8% | 8% | |||||||||||||||||||
Total Company | $159M | $125M | 27% | $187M | $147M | 27% | 29% | |||||||||||||||||||
Organic
Revenue Growth
|
AOI
Growth
|
Adjusted EPS
Growth
|
Leverage | ||||||||
~ +9% | +17% to +20% | +30% to +35% | ~ 3.5x | ||||||||
(previously +7% to +9%) |
|||||||||||
Constant Currency, except Leverage Ratio |
Three Months Ended | ||||||||||||||
March 29, 2024 | March 31, 2023 | |||||||||||||
Revenue | $ | 4,199,913 | $ | 3,916,156 | ||||||||||
Costs and Expenses: | ||||||||||||||
Cost of services provided (exclusive of depreciation and amortization) | 3,869,152 | 3,621,405 | ||||||||||||
Depreciation and amortization | 109,118 | 103,169 | ||||||||||||
Selling and general corporate expenses | 62,557 | 66,225 | ||||||||||||
4,040,827 | 3,790,799 | |||||||||||||
Operating income | 159,086 | 125,357 | ||||||||||||
Interest Expense, net | 86,377 | 113,604 | ||||||||||||
Income from Continuing Operations Before Income Taxes | 72,709 | 11,753 | ||||||||||||
Provision (Benefit) for Income Taxes from Continuing Operations | 19,707 | (2,337) | ||||||||||||
Net income from Continuing Operations | 53,002 | 14,090 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | (447) | (159) | ||||||||||||
Net income from Continuing Operations attributable to Aramark stockholders | 53,449 | 14,249 | ||||||||||||
Income from Discontinued Operations, net of tax | — | 41,792 | ||||||||||||
Net income attributable to Aramark stockholders | $ | 53,449 | $ | 56,041 | ||||||||||
Basic earnings per share attributable to Aramark stockholders: | ||||||||||||||
Income from Continuing Operations | $ | 0.20 | $ | 0.05 | ||||||||||
Income from Discontinued Operations | — | 0.16 | ||||||||||||
Basic earnings per share attributable to Aramark stockholders | $ | 0.20 | $ | 0.21 | ||||||||||
Diluted earnings per share attributable to Aramark stockholders: | ||||||||||||||
Income from Continuing Operations | $ | 0.20 | $ | 0.05 | ||||||||||
Income from Discontinued Operations | — | 0.16 | ||||||||||||
Diluted earnings per share attributable to Aramark stockholders | $ | 0.20 | $ | 0.21 | ||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||
Basic | 262,841 | 260,673 | ||||||||||||
Diluted | 265,282 | 262,537 | ||||||||||||
Six Months Ended | ||||||||||||||
March 29, 2024 | March 31, 2023 | |||||||||||||
Revenue | $ | 8,607,678 | $ | 7,829,876 | ||||||||||
Costs and Expenses: | ||||||||||||||
Cost of services provided (exclusive of depreciation and amortization) | 7,914,230 | 7,213,207 | ||||||||||||
Depreciation and amortization | 214,662 | 205,766 | ||||||||||||
Selling and general corporate expenses | 152,750 | 133,861 | ||||||||||||
8,281,642 | 7,552,834 | |||||||||||||
Operating income | 326,036 | 277,042 | ||||||||||||
Interest Expense, net | 200,939 | 214,555 | ||||||||||||
Income from Continuing Operations Before Income Taxes | 125,097 | 62,487 | ||||||||||||
Provision for Income Taxes from Continuing Operations | 43,578 | 10,399 | ||||||||||||
Net income from Continuing Operations | 81,519 | 52,088 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | (466) | (659) | ||||||||||||
Net income from Continuing Operations attributable to Aramark stockholders | 81,985 | 52,747 | ||||||||||||
Income from Discontinued Operations, net of tax | — | 77,445 | ||||||||||||
Net income attributable to Aramark stockholders | $ | 81,985 | $ | 130,192 | ||||||||||
Basic earnings per share attributable to Aramark stockholders: | ||||||||||||||
Income from Continuing Operations | $ | 0.31 | $ | 0.20 | ||||||||||
Income from Discontinued Operations | — | 0.30 | ||||||||||||
Basic earnings per share attributable to Aramark stockholders | $ | 0.31 | $ | 0.50 | ||||||||||
Diluted earnings per share attributable to Aramark stockholders: | ||||||||||||||
Income from Continuing Operations | $ | 0.31 | $ | 0.20 | ||||||||||
Income from Discontinued Operations | — | 0.30 | ||||||||||||
Diluted earnings per share attributable to Aramark stockholders | $ | 0.31 | $ | 0.50 | ||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||
Basic | 262,447 | 260,063 | ||||||||||||
Diluted | 264,775 | 261,993 | ||||||||||||
ARAMARK AND SUBSIDIARIES | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(Unaudited) | ||||||||||||||
(In Thousands) | ||||||||||||||
March 29, 2024 | September 29, 2023 | |||||||||||||
Assets | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 356,605 | $ | 1,927,088 | ||||||||||
Receivables | 2,220,634 | 1,970,782 | ||||||||||||
Inventories | 388,279 | 403,707 | ||||||||||||
Prepayments and other current assets | 362,903 | 297,519 | ||||||||||||
Current assets of discontinued operations | — | 620,931 | ||||||||||||
Total current assets | 3,328,421 | 5,220,027 | ||||||||||||
Property and Equipment, net | 1,490,772 | 1,425,973 | ||||||||||||
Goodwill | 4,635,450 | 4,615,986 | ||||||||||||
Other Intangible Assets | 1,820,644 | 1,804,473 | ||||||||||||
Operating Lease Right-of-use Assets | 632,079 | 572,268 | ||||||||||||
Other Assets | 653,534 | 728,678 | ||||||||||||
Noncurrent Assets of Discontinued Operations | — | 2,503,836 | ||||||||||||
$ | 12,560,900 | $ | 16,871,241 | |||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Current Liabilities: | ||||||||||||||
Current maturities of long-term borrowings | $ | 42,399 | $ | 1,543,032 | ||||||||||
Current operating lease liabilities | 50,108 | 51,271 | ||||||||||||
Accounts payable | 1,096,634 | 1,271,859 | ||||||||||||
Accrued expenses and other current liabilities | 1,468,961 | 1,768,281 | ||||||||||||
Current liabilities of discontinued operations | — | 395,524 | ||||||||||||
Total current liabilities | 2,658,102 | 5,029,967 | ||||||||||||
Long-Term Borrowings | 5,879,086 | 5,098,662 | ||||||||||||
Noncurrent Operating Lease Liabilities | 241,055 | 245,871 | ||||||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | 883,790 | 914,064 | ||||||||||||
Noncurrent Liabilities of Discontinued Operations | — | 1,861,735 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Redeemable Noncontrolling Interests | 7,727 | 8,224 | ||||||||||||
Total Stockholders' Equity | 2,891,140 | 3,712,718 | ||||||||||||
$ | 12,560,900 | $ | 16,871,241 | |||||||||||
ARAMARK AND SUBSIDIARIES | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
(In Thousands) | ||||||||||||||
Six Months Ended | ||||||||||||||
March 29, 2024 | March 31, 2023 | |||||||||||||
Cash flows from operating activities of Continuing Operations: | ||||||||||||||
Net income from Continuing Operations | $ | 81,519 | $ | 52,088 | ||||||||||
Adjustments to reconcile Net income from Continuing Operations to Net cash used in operating activities of Continuing Operations: | ||||||||||||||
Depreciation and amortization | 214,662 | 205,766 | ||||||||||||
Asset write-downs | — | 27,781 | ||||||||||||
Reduction of contingent consideration liability | — | (73,891) | ||||||||||||
Deferred income taxes | (7,810) | 18,821 | ||||||||||||
Share-based compensation expense | 29,444 | 39,123 | ||||||||||||
Changes in operating assets and liabilities | (737,802) | (578,947) | ||||||||||||
Payments made to clients on contracts | (99,002) | (85,335) | ||||||||||||
Other operating activities | 83,192 | 32,156 | ||||||||||||
Net cash used in operating activities of Continuing Operations | (435,797) | (362,438) | ||||||||||||
Cash flows from investing activities of Continuing Operations: | ||||||||||||||
Net purchases of property and equipment and other | (192,243) | (162,595) | ||||||||||||
Acquisitions, divestitures and other investing activities | (97,578) | (41,569) | ||||||||||||
Net cash used in investing activities of Continuing Operations | (289,821) | (204,164) | ||||||||||||
Cash flows from financing activities of Continuing Operations: | ||||||||||||||
Net proceeds/payments of long-term borrowings | (1,349,204) | 136,703 | ||||||||||||
Net change in funding under the Receivables Facility | 600,000 | 395,065 | ||||||||||||
Payments of dividends | (49,862) | (57,225) | ||||||||||||
Proceeds from issuance of common stock | 15,583 | 32,681 | ||||||||||||
Other financing activities | (49,529) | (21,107) | ||||||||||||
Net cash (used in) provided by financing activities of Continuing Operations | (833,012) | 486,117 | ||||||||||||
Discontinued Operations: | ||||||||||||||
Net cash provided by operating activities | — | 69,716 | ||||||||||||
Net cash used in investing activities | — | (21,693) | ||||||||||||
Net cash used in financing activities | — | (12,480) | ||||||||||||
Net cash provided by Discontinued Operations | — | 35,543 | ||||||||||||
Effect of foreign exchange rates on cash and cash equivalents and restricted cash | 404 | 14,492 | ||||||||||||
Decrease in cash and cash equivalents and restricted cash | (1,558,226) | (30,450) | ||||||||||||
Cash and cash equivalents and restricted cash, beginning of period | 1,972,367 | 365,431 | ||||||||||||
Cash and cash equivalents and restricted cash, end of period | $ | 414,141 | $ | 334,981 |
Balance Sheet classification | |||||||||||
(in thousands) | March 29, 2024 | March 31, 2023 | |||||||||
Cash and cash equivalents | $ | 356,605 | $ | 292,199 | |||||||
Restricted cash in Prepayments and other current assets | 57,536 | 32,289 | |||||||||
Cash and cash equivalents in Current assets of discontinued operations | — | 10,493 | |||||||||
Total cash and cash equivalents and restricted cash | $ | 414,141 | $ | 334,981 |
ARAMARK AND SUBSIDIARIES | ||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 29, 2024 | ||||||||||||||||||||||||||
FSS United States | FSS International | Corporate | Aramark and Subsidiaries | |||||||||||||||||||||||
Revenue (as reported) | $ | 3,043,504 | $ | 1,156,409 | $ | 4,199,913 | ||||||||||||||||||||
Operating Income (as reported) | $ | 144,365 | $ | 42,576 | $ | (27,855) | $ | 159,086 | ||||||||||||||||||
Operating Income Margin (as reported) | 4.74 | % | 3.68 | % | 3.79 | % | ||||||||||||||||||||
Revenue (as reported) | $ | 3,043,504 | $ | 1,156,409 | $ | 4,199,913 | ||||||||||||||||||||
Effect of Currency Translation | (101) | 83,673 | 83,572 | |||||||||||||||||||||||
Adjusted Revenue (Organic) | $ | 3,043,403 | $ | 1,240,082 | $ | 4,283,485 | ||||||||||||||||||||
Revenue Growth (as reported) | 7.05 | % | 7.77 | % | 7.25 | % | ||||||||||||||||||||
Adjusted Revenue Growth (Organic) | 7.04 | % | 15.57 | % | 9.38 | % | ||||||||||||||||||||
Operating Income (as reported) | $ | 144,365 | $ | 42,576 | $ | (27,855) | $ | 159,086 | ||||||||||||||||||
Amortization of Acquisition-Related Intangible Assets | 23,624 | 3,751 | — | 27,375 | ||||||||||||||||||||||
Gains, Losses and Settlements impacting comparability | — | 965 | — | 965 | ||||||||||||||||||||||
Adjusted Operating Income | $ | 167,989 | $ | 47,292 | $ | (27,855) | $ | 187,426 | ||||||||||||||||||
Effect of Currency Translation | (23) | 3,048 | — | 3,025 | ||||||||||||||||||||||
Adjusted Operating Income (Constant Currency) | $ | 167,966 | $ | 50,340 | $ | (27,855) | $ | 190,451 | ||||||||||||||||||
Operating Income Growth (as reported) | (4.48) | % | *** | 14.71 | % | 26.91 | % | |||||||||||||||||||
Adjusted Operating Income Growth | 21.21 | % | 21.43 | % | 7.56 | % | 27.15 | % | ||||||||||||||||||
Adjusted Operating Income Growth (Constant Currency) | 21.20 | % | 29.26 | % | 7.56 | % | 29.21 | % | ||||||||||||||||||
Adjusted Operating Income Margin | 5.52 | % | 4.09 | % | 4.46 | % | ||||||||||||||||||||
Adjusted Operating Income Margin (Constant Currency) | 5.52 | % | 4.06 | % | 4.45 | % | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
FSS United States | FSS International | Corporate | Aramark and Subsidiaries | |||||||||||||||||||||||
Revenue (as reported) | $ | 2,843,149 | $ | 1,073,007 | $ | 3,916,156 | ||||||||||||||||||||
Operating Income (as reported) | $ | 151,129 | $ | 6,887 | $ | (32,659) | $ | 125,357 | ||||||||||||||||||
Amortization of Acquisition-Related Intangible Assets | 19,213 | 3,200 | — | 22,413 | ||||||||||||||||||||||
Severance and Other Charges | 2,310 | 26,090 | 552 | 28,952 | ||||||||||||||||||||||
Spin-off Related Charges | — | — | 1,941 | 1,941 | ||||||||||||||||||||||
Gains, Losses and Settlements impacting comparability | (34,061) | 2,768 | 32 | (31,261) | ||||||||||||||||||||||
Adjusted Operating Income | $ | 138,591 | $ | 38,945 | $ | (30,134) | $ | 147,402 | ||||||||||||||||||
Operating Income Margin (as reported) | 5.32 | % | 0.64 | % | 3.20 | % | ||||||||||||||||||||
Adjusted Operating Income Margin | 4.87 | % | 3.63 | % | 3.76 | % | ||||||||||||||||||||
ARAMARK AND SUBSIDIARIES | ||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
March 29, 2024 | ||||||||||||||||||||||||||
FSS United States | FSS International | Corporate | Aramark and Subsidiaries | |||||||||||||||||||||||
Revenue (as reported) | $ | 6,256,236 | $ | 2,351,442 | $ | 8,607,678 | ||||||||||||||||||||
Operating Income (as reported) | $ | 319,130 | $ | 88,819 | $ | (81,913) | $ | 326,036 | ||||||||||||||||||
Operating Income Margin (as reported) | 5.10 | % | 3.78 | % | 3.79 | % | ||||||||||||||||||||
Revenue (as reported) | $ | 6,256,236 | $ | 2,351,442 | $ | 8,607,678 | ||||||||||||||||||||
Effect of Currency Translation | 64 | 86,271 | 86,335 | |||||||||||||||||||||||
Adjusted Revenue (Organic) | $ | 6,256,300 | $ | 2,437,713 | $ | 8,694,013 | ||||||||||||||||||||
Revenue Growth (as reported) | 8.54 | % | 13.83 | % | 9.93 | % | ||||||||||||||||||||
Adjusted Revenue Growth (Organic) | 8.54 | % | 18.01 | % | 11.04 | % | ||||||||||||||||||||
Operating Income (as reported) | $ | 319,130 | $ | 88,819 | $ | (81,913) | $ | 326,036 | ||||||||||||||||||
Amortization of Acquisition-Related Intangible Assets | 44,041 | 7,238 | — | 51,279 | ||||||||||||||||||||||
Severance and Other Charges | 6,149 | — | 92 | 6,241 | ||||||||||||||||||||||
Spin-off Related Charges | — | — | 29,037 | 29,037 | ||||||||||||||||||||||
Gains, Losses and Settlements impacting comparability | 568 | 4,844 | — | 5,412 | ||||||||||||||||||||||
Adjusted Operating Income | $ | 369,888 | $ | 100,901 | $ | (52,784) | $ | 418,005 | ||||||||||||||||||
Effect of Currency Translation | 72 | 2,525 | — | 2,597 | ||||||||||||||||||||||
Adjusted Operating Income (Constant Currency) | $ | 369,960 | $ | 103,426 | $ | (52,784) | $ | 420,602 | ||||||||||||||||||
Operating Income Growth (as reported) | 3.04 | % | 163.98 | % | (23.52) | % | 17.68 | % | ||||||||||||||||||
Adjusted Operating Income Growth | 19.74 | % | 30.09 | % | 11.81 | % | 27.98 | % | ||||||||||||||||||
Adjusted Operating Income Growth (Constant Currency) | 19.77 | % | 33.34 | % | 11.81 | % | 28.78 | % | ||||||||||||||||||
Adjusted Operating Income Margin | 5.91 | % | 4.29 | % | 4.86 | % | ||||||||||||||||||||
Adjusted Operating Income Margin (Constant Currency) | 5.91 | % | 4.24 | % | 4.84 | % | ||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
FSS United States | FSS International | Corporate | Aramark and Subsidiaries | |||||||||||||||||||||||
Revenue (as reported) | $ | 5,764,186 | $ | 2,065,690 | $ | 7,829,876 | ||||||||||||||||||||
Operating Income (as reported) | $ | 309,711 | $ | 33,646 | $ | (66,315) | $ | 277,042 | ||||||||||||||||||
Amortization of Acquisition-Related Intangible Assets | 38,334 | 5,762 | — | 44,096 | ||||||||||||||||||||||
Severance and Other Charges | 2,310 | 26,090 | 552 | 28,952 | ||||||||||||||||||||||
Spin-off Related Charges | — | — | 3,431 | 3,431 | ||||||||||||||||||||||
Gains, Losses and Settlements impacting comparability | (41,458) | 12,067 | 2,481 | (26,910) | ||||||||||||||||||||||
Adjusted Operating Income | $ | 308,897 | $ | 77,565 | $ | (59,851) | $ | 326,611 | ||||||||||||||||||
Operating Income Margin (as reported) | 5.37 | % | 1.63 | % | 3.54 | % | ||||||||||||||||||||
Adjusted Operating Income Margin | 5.36 | % | 3.75 | % | 4.17 | % | ||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
March 29, 2024 | March 31, 2023 | March 29, 2024 | March 31, 2023 | ||||||||||||||||||||||||||
Net Income from Continuing Operations Attributable to Aramark Stockholders (as reported) | $ | 53,449 | $ | 14,249 | $ | 81,985 | $ | 52,747 | |||||||||||||||||||||
Adjustment: | |||||||||||||||||||||||||||||
Amortization of Acquisition-Related Intangible Assets | 27,375 | 22,413 | 51,279 | 44,096 | |||||||||||||||||||||||||
Severance and Other Charges | — | 28,952 | 6,241 | 28,952 | |||||||||||||||||||||||||
Spin-off Related Charges | — | 1,941 | 29,037 | 3,431 | |||||||||||||||||||||||||
Gains, Losses and Settlements impacting comparability | 965 | (31,261) | 5,412 | (26,910) | |||||||||||||||||||||||||
Effect of Debt Repayments and Repricings on Interest Expense, net | 1,595 | — | 33,352 | — | |||||||||||||||||||||||||
Tax Impact of Adjustments to Adjusted Net Income | (6,785) | (10,522) | (21,905) | (15,616) | |||||||||||||||||||||||||
Adjusted Net Income | $ | 76,599 | $ | 25,772 | $ | 185,401 | $ | 86,700 | |||||||||||||||||||||
Effect of Currency Translation, net of Tax | 3,699 | — | 1,317 | — | |||||||||||||||||||||||||
Effect of Repayment of the Senior Notes due 2025, net | — | 18,527 | — | 37,040 | |||||||||||||||||||||||||
Adjusted Net Income (Constant Currency), Net of Interest Adjustment | $ | 80,298 | $ | 44,299 | $ | 186,718 | $ | 123,740 | |||||||||||||||||||||
Earnings Per Share (as reported) | |||||||||||||||||||||||||||||
Net Income from Continuing Operations Attributable to Aramark Stockholders (as reported) | $ | 53,449 | $ | 14,249 | $ | 81,985 | $ | 52,747 | |||||||||||||||||||||
Diluted Weighted Average Shares Outstanding | 265,282 | 262,537 | 264,775 | 261,993 | |||||||||||||||||||||||||
$ | 0.20 | $ | 0.05 | $ | 0.31 | $ | 0.20 | ||||||||||||||||||||||
Earnings Per Share Growth (as reported) % | 271 | % | 54 | % | |||||||||||||||||||||||||
Adjusted Earnings Per Share | |||||||||||||||||||||||||||||
Adjusted Net Income | $ | 76,599 | $ | 25,772 | $ | 185,401 | $ | 86,700 | |||||||||||||||||||||
Diluted Weighted Average Shares Outstanding | 265,282 | 262,537 | 264,775 | 261,993 | |||||||||||||||||||||||||
$ | 0.29 | $ | 0.10 | $ | 0.70 | $ | 0.33 | ||||||||||||||||||||||
Adjusted Earnings Per Share Growth % | 194 | % | 112 | % | |||||||||||||||||||||||||
Adjusted Earnings Per Share (Constant Currency) | |||||||||||||||||||||||||||||
Adjusted Net Income (Constant Currency), Net of Interest Adjustment | $ | 80,298 | $ | 44,299 | $ | 186,718 | $ | 123,740 | |||||||||||||||||||||
Diluted Weighted Average Shares Outstanding | 265,282 | 262,537 | 264,775 | 261,993 | |||||||||||||||||||||||||
$ | 0.30 | $ | 0.17 | $ | 0.71 | $ | 0.47 | ||||||||||||||||||||||
Adjusted Earnings Per Share Growth (Constant Currency) % | 79 | % | 49 | % |
ARAMARK AND SUBSIDIARIES | |||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||
NET DEBT TO COVENANT ADJUSTED EBITDA | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Twelve Months Ended | |||||||||||||||||
March 29, 2024 | March 31, 2023 | ||||||||||||||||
Net Income Attributable to Aramark Stockholders (as reported) | $ | 625,901 | $ | 246,317 | |||||||||||||
Less: Income from Discontinued Operations, net of tax | (148,987) | — | |||||||||||||||
Net Income from Continuing Operations Attributable to Aramark Stockholders | $ | 476,914 | $ | 246,317 | |||||||||||||
Interest Expense, net | 423,859 | 405,391 | |||||||||||||||
Provision for Income Taxes | 149,605 | 76,907 | |||||||||||||||
Depreciation and Amortization | 418,753 | 537,797 | |||||||||||||||
Share-based compensation expense(1) |
66,658 | 92,651 | |||||||||||||||
Unusual or non-recurring (gains) and losses(2) |
(373,653) | 5,207 | |||||||||||||||
Pro forma EBITDA for certain transactions(3) |
5,834 | 7,551 | |||||||||||||||
Other(4)(5) |
116,975 | 91,829 | |||||||||||||||
Covenant Adjusted EBITDA | $ | 1,284,945 | $ | 1,463,650 | |||||||||||||
Net Debt to Covenant Adjusted EBITDA | |||||||||||||||||
Total Long-Term Borrowings | $ | 5,921,485 | $ | 8,017,097 | |||||||||||||
Less: Cash and cash equivalents and short-term marketable securities(6) |
469,435 | 411,707 | |||||||||||||||
Net Debt | $ | 5,452,050 | $ | 7,605,390 | |||||||||||||
Covenant Adjusted EBITDA | $ | 1,284,945 | $ | 1,463,650 | |||||||||||||
Net Debt/Covenant Adjusted EBITDA(7) |
4.2 | 5.2 | |||||||||||||||
(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 March 29, 2024 represents the fiscal 2024 non-cash charge for the impairment of certain assets related to a business held-for-sale ($2.3 million), 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). The twelve months ended March 31, 2023 represents the fiscal 2023 non-cash charge for the impairment of certain assets related to a business that was sold ($5.2 million). | |||||||||||||||||
(3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period. | |||||||||||||||||
(4) "Other" for the twelve months ended March 29, 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 ($51.8 million), charges related to the Company's spin-off of the Uniform segment ($45.5 million), income related to non-United States governmental wage subsidies ($13.6 million), the impact of hyperinflation in Argentina ($11.4 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($11.3 million), net severance charges ($10.1 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 related to information technology assets ($2.1 million), multiemployer pension plan withdrawal charges ($2.0 million) and other miscellaneous expenses. | |||||||||||||||||
(5) "Other" for the twelve months ended March 31, 2023 includes the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($89.0 million), severance charges ($54.0 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 ($38.7 million), non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($29.3 million), non-cash charges for inventory write-downs to net realizable value and fixed asset write-offs related to personal protective equipment ($20.5 million), charges related to the Company's intention to spin-off the Uniform segment ($19.7 million), the loss from the change in fair value related to certain gasoline and diesel agreements ($7.2 million), favorable adjustments for the EBITDA impact attributable to equity investments that are permitted in the calculation in accordance with the Credit Agreement and indentures, primarily from the Company's previous ownership interest in AIM Services Co., Ltd. ($6.9 million), the gain from the sale of land ($6.8 million), the gain from a funding agreement related to a legal matter ($6.5 million), the impact of hyperinflation in Argentina ($6.4 million), non-cash charges related to information technology assets ($6.1 million), pension withdrawal charges ($4.7 million), the favorable impact related to a client contract dispute ($4.0 million), legal settlement charges ($2.7 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 March 31, 2023 reflects reported net debt to covenant adjusted EBITDA, which includes the reported results of the Uniform segment prior to the spin-off. The twelve months ended March 29, 2024 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) | |||||||||||||||||
Six Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||
March 29, 2024 | December 29, 2023 | March 29, 2024 | |||||||||||||||
Net cash (used in) provided by operating activities of Continuing Operations | $ | (435,797) | $ | (657,077) | $ | 221,280 | |||||||||||
Net purchases of property and equipment and other | (192,243) | (111,201) | (81,042) | ||||||||||||||
Free Cash Flow | $ | (628,040) | $ | (768,278) | $ | 140,238 | |||||||||||
Six Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||
March 31, 2023 | December 30, 2022 | March 31, 2023 | |||||||||||||||
Net cash (used in) provided by operating activities of Continuing Operations | $ | (362,438) | $ | (615,748) | $ | 253,310 | |||||||||||
Net purchases of property and equipment and other | (162,595) | (85,557) | (77,038) | ||||||||||||||
Free Cash Flow | $ | (525,033) | $ | (701,305) | $ | 176,272 | |||||||||||
Six Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||
Change | Change | Change | |||||||||||||||
Net cash used in operating activities of Continuing Operations | $ | (73,359) | $ | (41,329) | $ | (32,030) | |||||||||||
Net purchases of property and equipment and other | (29,648) | (25,644) | (4,004) | ||||||||||||||
Free Cash Flow | $ | (103,007) | $ | (66,973) | $ | (36,034) |