Aramark Corporation (NYSE:ARMK) Q3 2022 Earnings Conference Call August 9, 2022 8:30 AM ET Company Participants Felise Kissell - IR & Corporate Affairs Executive John Zillmer - CEO & Director Thomas Ondrof - EVP & CFO Conference Call Participants Toni Kaplan - Morgan Stanley Ian Zaffino - Oppenheimer Heather Balsky - Bank of America Merrill Lynch Harry Martin - Sanford C. Bernstein & Co. Hamzah Mazari - Jefferies Andrew Steinerman - JPMorgan Chase & Co. Shlomo Rosenbaum - Stifel, Nicolaus & Company Andrew W ...

Revenue and Income - Revenue for the three months ended April 1, 2022, was $3,860.5 million, a 37% increase from $2,819.7 million for the same period in 2021[9] - Net income attributable to Aramark stockholders for the three months ended April 1, 2022, was $35.7 million, compared to a loss of $77.6 million for the same period in 2021[9] - Total revenue for the six months ended April 1, 2022, was $7,808.8 million, an increase from $5,563.5 million for the same period in 2021[77] - Net income for the six months ended April 1, 2022, was $78.252 million, a significant improvement from a net loss of $159.043 million for the same period in 2021[15] - Comprehensive income attributable to Aramark stockholders for the six months ended April 1, 2022, was $173.6 million, compared to a loss of $106.6 million for the same period in 2021[12] Operating Performance - Operating income for the six months ended April 1, 2022, was $282.2 million, compared to a loss of $15.1 million for the same period in 2021[10] - Operating income for the three months ended April 1, 2022, was $142.0 million, compared to $5.4 million for the same period in 2021, reflecting a significant improvement[95] - Operating income increased by approximately $297.3 million during the six-month period ended April 1, 2022, driven by improved profitability from clients reopening after COVID-19 restrictions[105] Segment Performance - FSS United States segment revenue reached $2,338.3 million for the three months ended April 1, 2022, compared to $1,551.0 million in the prior year, marking a year-over-year growth of approximately 50.6%[61] - FSS International segment revenue increased to $870.9 million for the three months ended April 1, 2022, from $677.7 million in the same period of 2021, representing a growth of approximately 28.5%[61] - The Uniform segment generated revenue of $651.3 million for the three months ended April 1, 2022, compared to $591.0 million in the prior year, reflecting a growth of approximately 10.2%[61] Cash Flow and Financial Position - Net cash used in operating activities was $(128.267) million, compared to $221.861 million provided in the prior year, indicating a decline in cash flow[15] - Cash flows from investing activities resulted in a net cash outflow of $(289.819) million, up from $(175.710) million in the previous year, reflecting increased investments[15] - The company reported a decrease in cash and cash equivalents to $429.306 million at the end of the period, down from $1.400 billion a year earlier[15] - As of April 1, 2022, the company had $429.3 million of cash and cash equivalents and approximately $1,043.8 million of availability under its senior secured revolving credit facility[112] Shareholder Returns - Cash dividends paid to stockholders were approximately $56.5 million for the six months ended April 1, 2022, compared to $55.9 million for the same period in 2021[65] - The company made payments of dividends totaling $56.464 million, slightly up from $55.875 million in the previous year[15] Strategic Initiatives - The proposed spin-off of Aramark Uniform Services is expected to create additional value for stockholders, with ongoing evaluations of its impact on operations[6] - The Company plans to acquire Union Supply Group, Inc., a commissary goods and services supplier, with the transaction expected to close in the third quarter of fiscal 2022[83] - The company intends to spin off its Uniform segment into an independent publicly traded company, expected to be completed by the end of fiscal 2023[83] Challenges and Risks - The ongoing impact of COVID-19 on the company's operations remains uncertain, with potential effects on revenue and financial condition depending on future developments[88] - The company continues to adapt its business model in response to inflation and global supply chain disruptions, implementing pricing pass-through where appropriate[88] Accounting and Compliance - The company is currently evaluating the impact of several new accounting standards effective in fiscal 2024, including those related to troubled debt restructuring and contract assets[24] - The company adopted optional expedients related to the discontinuance of LIBOR, which may ease the accounting burden for contract modifications[25] - The company incurred $63.0 million in governmental labor-related tax credits due to the COVID-19 pandemic, net of labor charges and other expenses[126] Tax and Credits - The Company recorded a tax benefit of approximately $8.5 million during the six months ended April 1, 2022, due to the reversal of a valuation allowance at a foreign subsidiary[65] - The company recorded approximately $21.0 million and $33.2 million of labor-related tax credits in the FSS International segment during the three and six months ended April 1, 2022, respectively[36]

Aramark (NYSE:ARMK) Q2 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants John Zillmer - CEO Thomas Ondrof - EVP and CFO Felise Kissell - VP of IR and Corporate Affairs Conference Call Participants Kevin McVeigh - Credit Suisse Stephen Grambling - Goldman Sachs Ian Zaffino - Oppenheimer Andy Wittmann - Baird Heather Balsky - Bank of America Andrew Steinerman - JPMorgan Toni Kaplan - Morgan Stanley Shlomo Rosenbaum - Stifel Jaafar Mestari - BNP Paribas Faiza Alwy - Deutsche Bank Harry ...

Financial Data and Key Metrics Changes - Organic revenue increased by 41% year-over-year, reaching 92% of pre-COVID fiscal 2019 levels, compared to 65% at the same time last year [9][19] - Adjusted operating income improved by $176 million year-over-year, resulting in a constant currency adjusted operating income (AOI) margin of 4.3% [22] - Adjusted EPS was $0.22 compared to an adjusted loss per share of $0.31 last year [22] Business Line Data and Key Metrics Changes - U.S. Food & Facilities organic revenue increased by 61% year-over-year, driven by strong performance in education and sports sectors [9][10] - FSS International organic revenue grew by 28% year-over-year, with notable improvements in Europe and Canada [13] - Uniforms organic revenue increased by 7% year-over-year, reaching 99% of pre-COVID levels [14] Market Data and Key Metrics Changes - The company reported strong retention rates and newly awarded contracts, including a significant win with Merlin Entertainments [6][30] - The sports and leisure sectors experienced double-digit per capita spending growth, aided by technology and concept innovation [11] - International markets, particularly China, Chile, and Spain, outperformed pre-COVID levels with double-digit revenue growth [13] Company Strategy and Development Direction - The company aims to achieve long-term performance goals through 2025, focusing on profitable growth and expanding its service offerings [5][19] - Strategic partnerships were formed with Patient Engagement Advisors and Starr Restaurant Organization to enhance service capabilities [7][8] - The company is committed to sustainability and diversity, equity, and inclusion initiatives, as highlighted in their recent impact report [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of COVID-impacted volumes throughout the year, anticipating an incremental margin of 15% to 20% on returning volumes [21] - The company maintains its fiscal 2022 outlook of organic revenue growth between 23% and 27% and expects to achieve a margin of 5% to 5.5% [25] - Management noted that inflation and wage pressures are being addressed through various initiatives, including fixed contract pricing and menu reengineering [15][21] Other Important Information - The company announced the election of two new members to its Board of Directors, enhancing its strategic direction [17] - The company has a strong cash position with over $1.4 billion in cash availability and no debt maturities until 2025 [23] Q&A Session Summary Question: Can you provide more details on the new business, particularly the Merlin contract? - The Merlin contract is the largest account ever sold by the company, but specific revenue figures cannot be disclosed. It represents a significant growth opportunity in the amusement park sector [30] Question: What is the AOI drag from the new business? - The AOI drag varies based on the complexity and size of the contracts won, with larger contracts typically having a larger drag [33] Question: How has the Omicron variant impacted business trends? - There was a slight impact at the end of the quarter, but it was negligible and did not significantly change the outlook [36] Question: How do you expect the three segments to contribute to organic revenue growth? - International is expected to lead in contributions, followed by the U.S. and then the AUS business, which is recovering at a slower pace [41] Question: What is the visibility on the Merlin contract? - The company had a clear understanding of the opportunity but did not disclose it during the Investor Day as the contract was not yet signed [65] Question: Have there been changes in the competitive landscape due to COVID? - The competitive environment remains balanced, with no significant market share shifts observed among major players [71]

Aramark (NYSE:ARMK) Q4 2021 Earnings Conference Call November 16, 2021 8:30 AM ET Company Participants Felise Kissell - Vice President of Investor Relations & Corporate Affairs John Zillmer - Chief Executive Officer Tom Ondrof - Chief Financial Officer Conference Call Participants Kevin McVeigh - Credit Suisse Neil Tyler - Redburn Toni Kaplan - Morgan Stanley Ian Zaffino - Oppenheimer Andrew Steinerman - JPMorgan Ashish Sabadra - RBC Capital Markets James Ainley - Citigroup Steven Grambling - Goldman Sachs ...