Financial Data and Key Metrics Changes - Aramark reported consolidated revenue of over $4.7 billion for Q3 2023, reflecting year-over-year organic growth exceeding 14% driven by 6% pricing and strong contributions from net new business [16][22] - Operating income for Q3 was $203 million, with adjusted operating income of $240 million, representing a 34% increase on a constant currency basis compared to the same quarter last year [16][22] - Adjusted EPS was $0.36, a 48% increase year-over-year on a constant currency basis [20][22] Business Line Data and Key Metrics Changes - Global Food & Support Services (FSS) organic revenue grew by over 16% year-over-year, with the US segment growing nearly 15% driven by new business and increased spending in Sports & Entertainment [7][17] - Uniform Services organic revenue increased by approximately 5%, primarily due to pricing actions and growth in adjacency sales, despite an 80 basis point impact from the rollback of an energy surcharge [11][18] Market Data and Key Metrics Changes - International organic revenue increased by more than 20% year-over-year, driven by strong net new business in Europe and mining activity in South America [7][9] - Retention rates across all segments remained above 95%, indicating strong client relationships and satisfaction [8][10] Company Strategy and Development Direction - The company is focused on growth and returning to normalized margins, with significant progress on the Uniform Services spin-off transaction expected to complete by the end of the fiscal year [5][11] - The future Board of Directors for Uniform has been announced, composed of industry veterans to drive strategic insight and value creation [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving normalized margins, with meaningful price adjustments from clients expected to benefit margins in Q4 and into fiscal 2024 [9][10] - The company raised its organic revenue growth expectations for fiscal 2023 to near 15%, with Global FSS expected to grow near 17% [22][23] Other Important Information - The company received recognition for its sustainability efforts and commitment to diversity, equity, and inclusion, highlighting its focus on ESG initiatives [15][14] - Net cash provided by operating activities was $23 million, with free cash flow usage of $80 million in the quarter, consistent with typical seasonality [21][22] Q&A Session Summary Question: International organic growth acceleration - Management noted that international growth was driven by new account sales and strong performance in the Sports & Entertainment sector, with retention rates remaining high [26][29] Question: Ramp-up of new business wins - Management confirmed that new business continues to mature as expected, with significant accounts from 2020 and 2021 contributing positively to margins [27][30] Question: Major shareholders reducing stake - Management acknowledged the intentions of Mantle Ridge as stated in the 13D form, emphasizing a positive relationship with them [28] Question: Fourth quarter AOI margins - Management confirmed that the implied AOI margin for Q4 is around 6.9%, with ongoing pricing adjustments still needed to fully catch up with inflation [32][33] Question: Underlying leverage for Uniform business - Management indicated that the leverage ratio for the Uniform business is expected to be around four times post-spin-off, with a focus on maintaining parity [36][37] Question: Pricing dynamics and margin seasonality - Management stated that pricing in Q3 was approximately 6%, and while pricing will continue to be a driver, the overall margin shape will remain U-shaped moving into 2024 [72][78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------|---------------------------------------------------------------- ...

Aramark (NYSE:ARMK) Q2 2023 Earnings Conference Call May 9, 2023 8:30 AM ET Company Participants Felise Kissell - Vice President of Investor Relations and Corporate Development John Zillmer - Chief Executive Officer Tom Ondrof - Chief Financial Officer Conference Call Participants Toni Kaplan - Morgan Stanley Heather Balsky - Bank of America Ian Zaffino - Oppenheimer Neil Tyler - Redburn Andrew Steinerman - JPMorgan Shlomo Rosenbaum - Stifel Jaafar Mestari - BNP Paribas Exane Harry Martin - Bernstein Leo Ca ...

Aramark Business Review MAY 2023 Forward-Looking Statements Special Note About 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 "Outl ...

Revenue Growth - Revenue for the three months ended March 31, 2023, was $4,602.1 million, an increase of 19.2% from $3,860.5 million for the same period in 2022[9] - Total revenue for the six months ended March 31, 2023, was $9,203.1 million, an increase from $7,808.8 million for the same period in 2022, representing a growth of approximately 17.8%[75] - Revenue from the United States for the six months ended March 31, 2023, was $5,764.2 million, up from $4,763.7 million in the prior year, indicating a growth of about 21.0%[61] - FSS United States segment revenue for the three months ended March 31, 2023, was $2,843.2 million, an increase from $2,338.3 million in the same period of 2022, marking a growth of about 21.6%[78] - FSS International revenue grew by 23.2% to $1,073.0 million for the three months ended March 31, 2023, up from $870.9 million in the same period last year[102] Income and Earnings - Net income attributable to Aramark stockholders for the three months ended March 31, 2023, was $56.0 million, compared to $35.7 million for the same period in 2022, representing a 56.5% increase[9] - Net income for the six months ended March 31, 2023, was $129.5 million, compared to $78.3 million for the same period in 2022, representing a 65.5% increase[15] - Earnings per share attributable to Aramark stockholders for the six months ended March 31, 2023, was $0.50, up from $0.31 for the same period in 2022, reflecting a 61.3% increase[10] - Net income for the three months ended March 31, 2023, was $55.9 million, compared to $35.5 million for the same period in 2022[28] Operating Performance - Operating income for the six months ended March 31, 2023, was $381.6 million, up 35.2% from $282.2 million for the same period in 2022[10] - Operating income for the FSS United States segment increased by approximately $73.9 million and $138.1 million during the three and six month periods of fiscal 2023, primarily due to growth in base business and effective cost management[112] - Operating income by segment for FSS United States increased by 89.9% to $156.0 million for the three months ended March 31, 2023, compared to $82.1 million in the prior year[102] Costs and Expenses - The cost of services provided for the six months ended March 31, 2023, was $8,341.5 million, an increase of 18.1% from $7,062.3 million for the same period in 2022[10] - Interest and other financing costs for the three months ended March 31, 2023, were $114.0 million, compared to $89.7 million for the same period in 2022, indicating a 27.0% increase[9] - The company reported depreciation and amortization expenses of $273.3 million for the six months ended March 31, 2023, slightly up from $267.8 million in the same period last year[15] Cash Flow and Investments - Net cash used in operating activities increased to $292.7 million for the six months ended March 31, 2023, compared to $128.3 million for the same period in 2022[15] - The company reported a net cash used in investing activities of $225.9 million for the six months ended March 31, 2023, compared to $289.8 million for the same period in 2022, indicating a decrease of 22.1%[15] - Cash and cash equivalents at the end of the period were $302.7 million, down from $429.3 million at the end of the previous year[15] Strategic Initiatives - The company anticipates continued growth driven by strategic market expansions and new product developments in the upcoming quarters[6] - The proposed spin-off of Aramark Uniform Services is expected to create additional value for stockholders, with anticipated benefits and costs being closely monitored[6] - The company intends to spin off its Uniform segment into an independent publicly traded company, expected to be completed in the fourth quarter of fiscal 2023[25] Foreign Currency and Adjustments - The company reported a foreign currency translation adjustment of $10.2 million for the three months ended March 31, 2023, compared to $6.4 million for the same period in 2022[12] - The effect of foreign exchange rates on cash and cash equivalents was a positive $477.3 million for the six months ended March 31, 2023, compared to $317.8 million in the same period last year[15] - Foreign currency translation adjustments contributed $10.2 million to comprehensive income for the three months ended March 31, 2023[28] Shareholder Returns - The company approved a dividend of $0.11 per share on May 2, 2023, payable on May 31, 2023, to stockholders of record on May 17, 2023[65] - The net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months is approximately $42.8 million[57] Accounting and Compliance - The Company adopted new accounting standards related to government assistance, effective in the first quarter of fiscal 2023, which did not have a material impact on financial statements[28] - The Company is evaluating the impact of new accounting standards related to supplier finance programs, effective in the first quarter of fiscal 2024[28]

Financial Data and Key Metrics Changes - The company reported organic revenue of $4.7 billion, an 18% increase year-over-year, with contributions from net new business (over 4%), pricing (approximately 6%), and higher base business volume (around 8%) [15][19] - Adjusted operating income was $242 million, reflecting a constant currency increase of 47% compared to the previous year, with an AOI margin improvement of just over 100 basis points to 5.3% [15][19] - Adjusted EPS was $0.44, nearly double the $0.23 reported in the first quarter of fiscal 2022 [18] Business Line Data and Key Metrics Changes - In the U.S. Food and Facilities segment, organic revenue increased by 18%, driven by strong performance across all sectors, particularly in Education and Workplace Experience [9][10] - The Uniform Services segment saw a 7% increase in organic revenue due to solid new business sales and retention rates [11] - International organic revenue rose by 28%, supported by consistent net new business performance and base business volume recovery [10] Market Data and Key Metrics Changes - The company experienced strong growth in the Workplace Experience group, with over 40% year-over-year growth driven by client pricing and higher meal participation rates [9] - Healthcare+ continued to perform exceptionally well, benefiting from increased visitor presence and substantial new business growth [10] - The international market showed recovery in lunchtime participation rates and a return of catering activities, contributing to the overall revenue growth [10] Company Strategy and Development Direction - The company plans to use proceeds from the sale of its non-controlling interest in AIM Services for accelerated debt repayment, which is expected to enhance operating focus and strengthen the balance sheet [7][20] - The management emphasized a commitment to managing cost structures and maximizing unit efficiencies to counter inflation [8] - The company is focused on identifying opportunities to enhance profitable growth and shareholder value, particularly in areas with non-controlling interests [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow the bottom line despite ongoing macroeconomic challenges, citing four key opportunities for improved profitability [17] - The company expects organic revenue growth between 11% and 13% for the full fiscal year, with adjusted operating income growth of 32% to 37% [21] - Management acknowledged persistent inflation, particularly in food costs, and indicated that pricing strategies would remain crucial in managing profitability [36][61] Other Important Information - The company released an ESG progress report highlighting commitments to diversity, community building, and responsible sourcing [13] - The recent election of Kevin Wills to the Board of Directors was noted as a strategic addition to the company's leadership [14] Q&A Session Summary Question: New business trends this quarter versus last quarter - Management noted that the first quarter is typically slower for new business development, especially in education, but the pipeline remains strong with many verbal wins [26] Question: Impact of divestiture on AOI for next year - The AOI impact from the AIM Services sale is expected to be less than $30 million for the full fiscal year, with interest savings expected to exceed $30 million [29] Question: AIM Services multiple and other opportunities - The AIM Services sale was driven by the ability to grow businesses without a controlling interest, and management is evaluating other joint venture opportunities [31][32] Question: Inflation outlook and pricing strategies - Management indicated that food inflation remains persistently high, and they expect to maintain pricing strategies to offset costs [36][37] Question: Revenue guidance and organic growth recovery - Management expects organic growth to ease gradually as the year progresses, with net growth staying in the 4% to 5% range [46] Question: Trends in retention by business unit - Retention rates are high across all business units, exceeding targeted ranges [57] Question: Long-term outlook and margin impact - The impact of AIM on margins is estimated to be about 20 basis points, with expectations of continued inflation management [60] Question: Customer appetite for outsourcing - There is a continued trend towards outsourcing due to cost pressures, providing significant new business potential [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2022 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------|------------------------------------------------------------ ...

Aramark (NYSE:ARMK) Q4 2022 Earnings Conference Call November 15, 2022 8:30 AM ET Company Participants Felise Kissell - IR & Corporate Affairs Executive John Zillmer - CEO & Director Thomas Ondrof - EVP & CFO Conference Call Participants Heather Balsky - Bank of America Ian Zaffino - Oppenheimer Andrew Steinerman - JPMorgan Toni Kaplan - Morgan Stanley Shlomo Rosenbaum - Stifel Neil Tyler - Redburn Andrew Wittmann - Baird Faiza Alwy - Deutsche Bank Ronan Kennedy - Barclays Stephanie Moore - Jefferies Operat ...