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 ...

Financial Performance - Revenue for the three months ended July 1, 2022, was $4,127,378, a 38.3% increase from $2,981,220 for the same period in 2021[9]. - Operating income for the nine months ended July 1, 2022, was $430,124, compared to $59,125 for the same period in 2021, representing a significant improvement[10]. - Net income attributable to Aramark stockholders for the three months ended July 1, 2022, was $40,329, up from $32,557 in the same period last year, reflecting a 23.3% increase[9]. - Earnings per share attributable to Aramark stockholders for the nine months ended July 1, 2022, was $0.46, compared to a loss of $0.50 for the same period in 2021[10]. - The company reported a net income of $118,733 for the nine months ended July 1, 2022, compared to a net loss of $126,481 for the same period in 2021[10]. - Aramark reported a net income of $40.481 million for the three months ended July 1, 2022, compared to $32.562 million for the same period in 2021, reflecting a year-over-year increase[28]. - For the nine months ended July 1, 2022, Aramark's net income was $118.733 million, a significant recovery from a net loss of $126.481 million in the same period of 2021[28]. - The company anticipates continued growth and improvement in financial performance, driven by strategic initiatives and market expansion efforts[6]. Cash Flow and Investments - Operating cash flow showed a net cash used of $141.993 million, compared to a net cash provided of $233.793 million in the previous year[16]. - Total cash and cash equivalents at the end of the period were $438.868 million, down from $483.429 million a year earlier[16]. - The company reported a net cash used in investing activities of $641.444 million, an increase from $503.191 million in the prior year[16]. - Proceeds from long-term borrowings amounted to $328.326 million, a decrease from $898.443 million in the previous year[16]. - The company made acquisitions of certain businesses totaling $342.633 million, up from $264.393 million in the previous year[16]. - The Company completed the acquisition of Union Supply Group for $202.6 million on June 2, 2022, with a contingent consideration liability of $40.2 million recorded[41]. - The acquisition of Union Supply resulted in approximately $21.1 million in revenues for the three and nine months ended July 1, 2022, with net income being immaterial[47]. - The Company acquired Next Level Hospitality for $226.1 million on June 4, 2021, with contingent consideration of $78.4 million recorded[49]. Segment Performance - Total FSS United States revenue for the three months ended July 1, 2022, was $2,481.5 million, a 50.4% increase from $1,649.6 million in the prior year[76]. - Total FSS International revenue for the three months ended July 1, 2022, was $977.7 million, a 34.2% increase from $728.5 million in the same period of 2021[76]. - The company operates in three reportable segments: FSS United States, FSS International, and Uniform, with approximately 71% of global revenue derived from food services[93]. - FSS United States segment revenue for the nine months ended July 1, 2022, reached $7,245.2 million, up from $4,646.4 million in 2021, reflecting a growth of approximately 55.5%[96]. - The company’s FSS International segment revenue for the nine months ended July 1, 2022, was $2,721.8 million, an increase from $2,100.7 million in 2021, representing a growth of approximately 29.5%[96]. Cost and Expenses - The cost of services provided for the nine months ended July 1, 2022, was $10,810,111, an increase from $7,814,008 in the same period of 2021[10]. - Share-based compensation expense increased to $71.799 million from $52.638 million year-over-year[16]. - Personnel costs as a percentage of total cost of services provided decreased to 47.5% and 48.4% during the three and nine month periods ended July 1, 2022, respectively[125]. - Corporate expenses increased by approximately $10.7 million and $20.0 million during the three and nine month periods of fiscal 2022, mainly due to higher share-based compensation[132]. Tax and Regulatory Matters - The effective tax rate for the three and nine month periods of fiscal 2022 was recorded at 28.3% and 23.9%, respectively[127]. - The Company recorded a tax benefit of approximately $8.5 million due to the reversal of a valuation allowance at a subsidiary in the FSS International segment[80]. - The proposed spin-off of Aramark Uniform Services is expected to create additional value for stockholders, although risks and uncertainties remain regarding its execution[6]. - The company plans to spin off its Uniform segment into an independent publicly traded company by the end of fiscal 2023, pending regulatory approvals[112]. Market Conditions and Strategic Initiatives - The ongoing conflict between Russia and Ukraine has impacted supply chains and increased inflation in food and labor costs, affecting the company's operational performance[108]. - The company has implemented enhanced pricing strategies across various sectors, including Education and Sports, to manage inflation and supply chain disruptions[110]. - The company continues to focus on safety and well-being while adapting its business model to the current environment, including managing labor shortages and supply chain challenges[108]. - COVID-19 disruptions negatively impacted the Company's financial results from Q2 FY2020 to H1 FY2021, with improvements noted in the second half of FY2021 and the first nine months of FY2022[40]. Debt and Financing - As of July 1, 2022, total borrowings amounted to $8.16 billion, an increase from $7.45 billion on October 1, 2021, representing an increase of approximately 9.6%[59]. - The company has approximately $873.7 million in outstanding foreign currency borrowings and $848.2 million available under the senior secured revolving credit facility as of July 1, 2022[60]. - The Receivables Facility limit was increased from $400 million to $500 million on June 17, 2022, enhancing capacity by $100 million during the seasonal period from October to March[61]. - The company entered into $700 million notional amount of forward starting interest rate swap agreements to hedge cash flow risks related to variable rate borrowings during the nine months ended July 1, 2022[63]. - The company reported a net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months of approximately $18.6 million[70].

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 ...