24/7 Market News: VENU has Partnered with Industry Leaders, including Aramark and AEG, to Scale OperationsJune 23, 2025 9:31 AM EDT | Source: 24/7 Market NewsDenver, Colorado--(Newsfile Corp. - June 23, 2025) - 247marketnews.com, a pioneer in digital media dedicated to the swift distribution of financial market news and information, reports that as Venu Holding Corporation (NYSE American: VENU) aggressively scales its fan-founded, premium amphitheater model across the country, its recently ann ...

Core Insights - Venu Holding Corporation has formed a strategic partnership with Aramark Sports + Entertainment to enhance the live entertainment experience through improved hospitality and facility operations [1][2][3] Company Overview - Venu Holding Corporation operates premium live music venues and is focused on expanding its national footprint [1][6] - The company employs a capital-light growth strategy, utilizing a 40/40/20 capital model to finance its expansion without relying on dilutive equity [6] Partnership Details - Aramark will manage food & beverage concessions, retail, and facility operations at Venu's flagship amphitheaters, which includes an equity investment in Venu [2][3] - The partnership aims to elevate fan experiences and operational efficiency, aligning both companies around a long-term vision [2][3] Expansion Plans - Venu plans to expand to 16 operating venues and over 79,000 seats by the end of 2026, transitioning from a regional developer to a national player in high-performance entertainment infrastructure [7] Financial Performance - In Q1 2025, Venu reported $38.7 million in fractional suite sales and a 19% increase in total assets, indicating the scalability of its business model [6]

Aramark (ARMK) 2025 Conference June 05, 2025 11:25 AM ET Speaker0 All right. Cool. All right. Hi, everyone. Welcome to the next session of Baird's Global Consumer Technology and Services Conference. We're really happy to have everyone join us. I'm Andy Wittmann. I cover the facility services stocks here at Baird. And really happy to be joined again this year by Aramark. Jim Tarantulo is up on stage with me. He's the company's CFO. We have about a half an hour to go through the company, the story. I'm going ...

Revenue and Income - Revenue for the three months ended March 28, 2025, was $4,279,298, an increase of 1.9% compared to $4,199,913 for the same period in 2024[16] - Net income attributable to Aramark stockholders for the six months ended March 28, 2025, was $167,473, compared to $81,985 for the same period in 2024, representing a significant increase[16] - Earnings per share attributable to Aramark stockholders for the three months ended March 28, 2025, was $0.23, compared to $0.20 for the same period in 2024, reflecting a growth of 15%[16] - For the three months ended March 28, 2025, net income was $61,973,000, compared to $53,002,000 for the same period in 2024, representing a year-over-year increase of 16.7%[41] - Comprehensive income for the six months ended March 28, 2025, was $133,780,000, significantly higher than $48,094,000 for the same period in 2024[41] Assets and Liabilities - Total current assets increased to $3,839,766 as of March 28, 2025, from $3,406,562 as of September 27, 2024, reflecting a growth of 12.7%[14] - Total liabilities decreased to $10,469,290 as of March 28, 2025, from $9,635,397 as of September 27, 2024, indicating a reduction of 8.5%[14] - Cash and cash equivalents increased to $920,455 as of March 28, 2025, compared to $672,483 as of September 27, 2024, marking a rise of 36.8%[14] - The balance of retained earnings increased to $315,470,000 as of December 27, 2024, from $239,709,000 on September 27, 2024[24] Cash Flow and Financing Activities - The company reported a net cash used in operating activities of $331,204 for the six months ended March 28, 2025, compared to $435,797 for the same period in 2024, showing an improvement[21] - Cash flows from financing activities resulted in a net cash provided of $1,066,564 for the six months ended March 28, 2025, compared to a net cash used of $833,012 for the same period in 2024, demonstrating a positive shift[21] - Cash used in operating activities decreased by $104.6 million during the six month period of fiscal 2025 compared to the prior year, driven by higher net income and lower payments made to clients[150] - Cash flows used in investing activities increased by $192.6 million during the six month period of fiscal 2025, primarily due to higher acquisitions of certain businesses ($155.1 million)[152] Stockholder Equity and Dividends - Total stockholders' equity increased to $3,081,884,000 as of December 27, 2024, up from $3,038,974,000 on September 27, 2024, reflecting a growth of approximately 1.4%[24] - The company declared dividends of $0.105 per share, totaling $29,858,000 for the quarter ending December 27, 2024[24] - The company declared a dividend of $0.105 per share, payable on May 28, 2025, to stockholders of record on May 14, 2025[99] Segment Performance - The company operates in two reportable segments: Food and Support Services United States and Food and Support Services International, with a significant market presence in the United States and 15 additional countries[31] - FSS United States segment revenue was $3,056.4 million for the three months ended March 28, 2025, compared to $3,043.4 million for the same period in 2024, reflecting a growth of 0.4%[108] - FSS International segment revenue increased to $1,222.9 million for the three months ended March 28, 2025, up from $1,156.5 million in the same period of 2024, representing a growth of 5.7%[108] Debt and Interest Management - As of March 28, 2025, total long-term borrowings net amounted to $6,109.1 million, an increase from $4,307.2 million as of September 27, 2024, representing a 42% increase[65] - The company issued €400.0 million of 4.375% Senior Notes due April 2033 on March 19, 2025, using proceeds to repay €325.0 million of 3.125% Senior Notes due April 2025[67] - The new U.S. Term B-8 Loans due 2030 amount to $1,395.0 million, which were used to repay $839.3 million of Term B-4 Loans due January 2027 and redeem $551.5 million of 5.000% Senior Notes due April 2025[73] - Interest expense for the three months ended March 28, 2025, was $89.7 million, slightly up from $86.3 million in the same period of 2024[109] Market and Economic Conditions - The company anticipates continued volatility in foreign currencies and inflationary costs due to recent developments in tariffs and global trade[121] - The company reported a foreign currency translation adjustment loss of $26,982,000 for the six months ended March 28, 2025, compared to a loss of $5,246,000 for the same period in 2024[41] Corporate Governance and Compliance - Certifications from the CEO and CFO were filed in compliance with the Sarbanes-Oxley Act[31.1][31.2] - The financial documents are filed with the SEC, ensuring transparency and regulatory compliance[32]

Financial Data and Key Metrics Changes - Aramark's organic revenue grew to $4.3 billion, representing a 3% increase year-over-year, with record AOI profitability for any second quarter in global FSS history and over 20% adjusted EPS growth on a constant currency basis [10][21][24] - Operating income was $174 million, up 9.5% compared to the prior year, with adjusted operating income of $205 million, reflecting an 11% increase on a constant currency basis [21][22] - The adjusted EPS was $0.34, an increase of 22% versus the prior year on a constant currency basis [24] Business Segment Data and Key Metrics Changes - In the U.S., organic revenue increased to $3.1 billion, approximately 1% growth, affected by factors such as facility exits and calendar shifts [11][22] - The International segment reported organic revenue of $1.3 billion, a 10% year-over-year increase, with growth driven by countries like the UK, Spain, Chile, and Canada [13][14] - The U.S. segment experienced AOI growth of 5% with a margin improvement of 30 basis points, while the International segment had AOI growth of 26% and more than 60 basis points of margin improvement [22][23] Market Data and Key Metrics Changes - The company reported a strong client retention rate above 98%, which is atypical for this point in the fiscal calendar [7][32] - New client wins totaled $760 million year-to-date, with expectations of achieving net new growth of 4% to 5% in fiscal 2025 [9][27] - The company noted a monthly acceleration of revenue growth, with April showing a 6% increase [8][27] Company Strategy and Development Direction - Aramark is focused on capitalizing on growth opportunities through a resilient business model, strong supply chain, and a hospitality culture aimed at exceptional service [9][19] - The company is actively managing fluctuations in the marketplace and expects to be well-positioned regardless of macroeconomic conditions [9][19] - The strategy includes leveraging AI for operational efficiencies and enhancing supply chain capabilities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial objectives for fiscal 2025 and beyond, citing positive trends and strong retention rates [7][27] - The company is monitoring macroeconomic trends, including tariffs, and believes its business model is insulated from volatility [18][27] - Management anticipates revenue growth to accelerate in the third quarter, driven by higher base business volume and new business expansion [27][28] Other Important Information - The company repurchased nearly 4 million shares, totaling about $140 million since the initiation of the program [20] - Aramark's leverage is expected to remain around three times by the end of the fiscal year, with over $1.6 billion in cash availability [20][26] Q&A Session Summary Question: Potential for net new growth above 5% - Management indicated that they expect to be north of the multi-year growth range of 5% to 8% in the fourth quarter, driven by strong retention and new business [32][33] Question: Impact of inflation on Avendra - Management noted that Avendra is effectively managing supply chain disruptions and can pass through inflationary cost increases to clients [34][35] Question: Acceleration in operating metrics for the second half - Management highlighted strong performance in higher education and corrections, with visibility into growth rates due to secured new business [42][45] Question: Retention rates and seasonality - Management confirmed that the current retention rate of 98% is above the typical range and attributed it to proactive customer retention efforts [76][77] Question: Healthcare industry challenges - Management acknowledged ongoing cost management challenges in healthcare but emphasized their strong partnerships and ability to provide cost-effective services [84][100] Question: New business signings and market conditions - Management reported a robust pipeline and consistent selling process, with no significant delays in new business signings due to market uncertainty [103][106]

Financial Data and Key Metrics Changes - Aramark's organic revenue grew to $4.3 billion, representing a 3% increase, despite challenges such as facility exits and weather-related closures [8][20] - Operating income was $174 million, up 9.5% year-over-year, with adjusted operating income increasing to $205 million, reflecting an 11% rise on a constant currency basis [20][21] - Adjusted EPS was $0.34, a 22% increase compared to the prior year on a constant currency basis [23] Business Segment Data and Key Metrics Changes - In the U.S., organic revenue increased to $3.1 billion, approximately 1% growth, impacted by factors like facility exits [9][21] - The International segment reported organic revenue of $1.3 billion, a 10% year-over-year increase, with strong performance across multiple countries [12][13] - The U.S. segment's AOI growth was 5%, with margin improvement driven by supply chain efficiencies [21] Market Data and Key Metrics Changes - Client retention rate exceeded 98%, a level not typically seen at this point in the fiscal calendar [6][26] - New client wins totaled $760 million year-to-date, with expectations for net new business growth of 4% to 5% in fiscal 2025 [7][26] - The company experienced a monthly acceleration of revenue growth, reaching 6% in April [6][26] Company Strategy and Development Direction - Aramark is focused on leveraging its resilient business model to navigate market fluctuations and uncertainties [7][18] - The company aims to capitalize on growth opportunities in various sectors, including education, sports, and healthcare [12][18] - Continued investment in technology and supply chain optimization is a priority to enhance operational efficiency and client service [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial objectives for fiscal 2025, citing strong retention rates and a robust sales pipeline [6][26] - The company is monitoring macroeconomic trends, including tariffs, and believes its business model is well insulated from volatility [16][26] - Expectations for revenue growth to accelerate in the second half of the fiscal year, driven by new business and increased base business volume [26] Other Important Information - The company repurchased nearly 4 million shares, totaling about $140 million, as part of its capital allocation strategy [19][24] - Aramark's leverage is expected to remain around three times by the end of the fiscal year, with enhanced financial flexibility achieved through debt maturity extensions [19][24] Q&A Session Summary Question: Potential for net new business growth above 5% - Management indicated that they expect to exceed the multi-year growth range of 5% to 8% in the fourth quarter, driven by strong retention and new business [30][32] Question: Impact of inflation on Avendra and consumer behavior - Management confirmed that Avendra is effectively managing supply chain disruptions and can pass through inflationary costs, with no significant change in consumer behavior noted [34][36] Question: Expectations for pricing and margin expansion - Management expects pricing to align with inflation, with opportunities for incremental margin expansion driven by supply chain efficiencies and operational improvements [110]

Q2 Fiscal 2025 Earnings Results M A Y 6 , 2 0 2 5 Q2 2025 Earnings Results Forward-Looking Statements This presentation 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, "Growth ...

Revenue Growth - Revenue increased by 2% year-over-year to $4.3 billion, with organic revenue growth of 3%[7] - FSS International revenue grew by 6% year-over-year, driven by strong performance in the U.K., Spain, Chile, and Canada[8] - Revenue for the three months ended March 28, 2025, was $4,279,298, an increase from $4,199,913 for the same period in 2024, representing a growth of approximately 1.9%[46] - Total revenue for the three months ended March 28, 2025, was reported at $4,279,298 thousand, reflecting a 1.9% increase compared to $4,199,913 thousand for the same period in 2024[54] Operating Performance - Operating income rose by 9% to $174 million, and adjusted operating income (AOI) grew by 11% to $205 million, reflecting improved operational efficiency[9] - Operating income for the six months ended March 28, 2025, was $391,439, compared to $326,036 for the same period in 2024, reflecting an increase of about 20.0%[48] - Adjusted operating income for the six months ended March 28, 2025, was $462,387 thousand, up from $418,005 thousand in the prior year, indicating a growth of 10.6%[56] - The operating income margin for the three months ended March 28, 2025, was 4.1%, compared to 3.8% for the same period in 2024, showing an improvement of 0.3 percentage points[54] Earnings and Profitability - GAAP EPS increased by 15% to $0.23, while adjusted EPS rose by 22% to $0.34[2] - Basic earnings per share for the six months ended March 28, 2025, was $0.63, compared to $0.31 for the same period in 2024, representing a significant increase of 103.2%[48] - Net income attributable to Aramark stockholders for the three months ended March 28, 2025, was $61,854, up from $53,449 in the same period of 2024, indicating a growth of approximately 15.0%[46] - Adjusted net income for the three months ended March 28, 2025, was $91.794 million, up 19.8% from $76.599 million in the prior year[58] - The company experienced a significant increase in adjusted net income (constant currency) to $93.846 million for the three months ended March 28, 2025, compared to $76.599 million in the prior year, reflecting a growth of 22.5%[58] Cash Flow and Liquidity - Free cash flow for the second quarter was $141 million, with net cash provided by operating activities at $256 million[12] - Cash and cash equivalents increased to $920,455 as of March 28, 2025, from $672,483 as of September 27, 2024, reflecting a growth of about 36.8%[49] - Cash and cash equivalents at the end of the period increased to $974,006 thousand from $414,141 thousand year-over-year, marking a significant increase of 134.0%[52] - The company reported a net cash used in operating activities of $(331,204) thousand for the six months ended March 28, 2025, an improvement from $(435,797) thousand in the same period last year[52] Debt and Financial Position - The company extended $1.8 billion of debt maturities to 2030 and beyond, maintaining comparable interest rates[5] - The company’s total long-term borrowings increased to $6.533 billion as of March 28, 2025, from $5.921 billion as of March 29, 2024[60] - Net debt to covenant adjusted EBITDA ratio improved to 3.9 for the twelve months ended March 28, 2025, down from 4.2 in the previous year[60] Future Outlook - The company anticipates organic revenue growth of 9.5% for fiscal 2025, with adjusted operating income growth of 18% and adjusted EPS growth of 28%[20] - The company expects to achieve net new business growth of 4% to 5% of prior year revenue in fiscal 2025[15] - The company anticipates continued growth and improvement in operational performance, despite potential risks from economic conditions and geopolitical events[42]

Group 1 - The options market indicates significant implied volatility for Aramark, particularly for the July 18, 2025 $20 Call option, suggesting that investors expect a substantial price movement [1] - Implied volatility reflects market expectations of future stock movement, often indicating potential upcoming events that could lead to a major price change [2] - Analysts have a negative outlook on Aramark, with the company currently holding a Zacks Rank 4 (Sell) in the Business – Services industry, and no earnings estimates have been increased in the last 60 days [3] Group 2 - The high implied volatility may present trading opportunities, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from time decay [4]

Group 1 - The article discusses the author's long position in ARMK and SDXAY, indicating a positive outlook on these stocks [1] - It emphasizes the importance of conducting due diligence and research before making investment decisions, particularly for short-term trading and options trading [2] - The author clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, highlighting the diverse backgrounds of the analysts [3]