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 ...

Aramark (NYSE:ARMK) Q3 2021 Earnings Conference Call August 10, 2021 8:30 AM ET Company Participants Felise Kissell - Vice President, Investor Relations and Corporate Affairs John Zillmer - Chief Executive Officer Tom Ondrof - Chief Financial Officer Conference Call Participants Jaafar Mestari - Exane BNP Paribas Gary Bisbee - BofA Securities, Inc. Shlomo Rosenbaum - Stifel Ian Zaffino - Oppenheimer & Co. Jeffrey Goldstein - Morgan Stanley Andrew Steinerman - J.P. Morgan Andrew Wittmann - Robert W. Baird & ...

Q3 Summary - Increased business activity led to client reopenings[5] - Sequential quarterly improvement across all business segments[5] - Higher profitability resulted from rebounding sales and cost management[5] - Aramark repaid $500 million in debt and extended maturities on $2.6 billion of borrowings[5] - Increased revolver capacity by over $200 million[5] - Cash availability of approximately $1.9 billion at quarter-end[5, 9] Organic Revenue Trends - Q3 organic revenue reached 73% of pre-COVID levels[6] - FSS United States segment was led by Leisure and Sports & Entertainment businesses[6] - FSS International balanced strong healthcare performance in China and mining in Chile[6] - Uniform & Career Apparel adjacency services delivered double-digit growth[6, 24] Fiscal 2021 Outlook - Continued organic revenue improvement, reaching 80% to 85% of 2019 levels[28] - Adjusted Operating Income (AOI) margin is expected to be in the range of 4.5% to 5.0%[28] - Free Cash Flow outlook raised to generating $150 million to $250 million for fiscal 2021[28]

Financial Data and Key Metrics Changes - Revenue for the quarter reached $2.8 billion, with an organic revenue decline of 26% year-over-year, showing improvement compared to the first quarter's 45% decline [8][17] - Adjusted operating income was $30 million, resulting in a positive adjusted operating margin of 1.1%, better than the expected drop-through of 18% to 22% [19][20] - Free cash flow generation was nearly $260 million, reflecting an improvement of over $150 million compared to the prior year [8][21] - Cash availability totaled $2.6 billion at quarter end, providing financial flexibility for strategic actions [8][22] Business Segment Performance Changes - US Food and Facilities reported an organic revenue decline of 31%, an improvement from the first quarter [17][18] - The education sector gained momentum with increased in-person learning, contributing to improved performance [9][18] - International organic revenue was down 26%, reflecting modest improvement from the previous quarter, with strong performance in healthcare in China [12][18] - Uniforms experienced a 9% decline in organic revenue, slightly better than the first quarter, impacted by government restrictions in Canada [18][13] Market Data and Key Metrics Changes - The K-12 sector saw approximately 70% of school districts offering greater in-person or hybrid learning [9] - Sports, Leisure, and Corrections reported modest improvements, with increased attendance in venues like the NBA and NHL [10] - The healthcare segment reported gradual improvement as visitor restrictions eased and elective procedures increased [11] Company Strategy and Industry Competition - The company announced a proactive $500 million debt repayment and an acquisition of Next Level Hospitality to expand its presence in the senior living industry [5][15] - The focus remains on organic growth, with investments in sales resources and leadership development to enhance growth potential [29][39] - The company is experiencing increased outsourcing demand across multiple segments, indicating a competitive advantage in facilities services [31][69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current momentum of the business and anticipated continued organic revenue improvement [24][36] - The company expects adjusted operating income margins of 4% to 4.5% in the second half of the fiscal year, with incremental quarterly progression [24] - Management remains cautious but prepared for varying recovery scenarios, emphasizing flexibility in operations [36] Other Important Information - The company launched an employee stock purchase plan with strong participation, aligning employee interests with company performance [14] - The acquisition of Next Level Hospitality is expected to be accretive to earnings by early fiscal '22 [23] Q&A Session Summary Question: Thoughts on accelerating organic growth post-COVID - Management is focused on pursuing organic growth and has made investments to enhance sales capabilities, expecting to capitalize on opportunities [27][29] Question: Dynamics of facilities and other business across markets - There is increased activity in facilities services across multiple segments, with strong demand for services as companies return to in-person operations [30][31] Question: Incremental performance improvement expectations - April trends are encouraging, with consistent improvement across all segments, although management remains cautious about future developments [32][33] Question: Free cash flow guidance and potential scenarios - The top end of free cash flow guidance was raised due to improved business performance, while the lower end reflects potential working capital outlays for reopening [34][35] Question: Competitive advantages in higher education wins - The company has successfully customized solutions for clients, leading to significant wins in the higher education sector [38][39] Question: Labor availability and inflation concerns - Labor inflation is a concern, but the company is prepared to manage costs through flexible menu options and contractual rights [40][41] Question: M&A pipeline and competitive bidding processes - The company is focused on strategic extensions rather than distressed acquisitions, maintaining a disciplined approach to M&A [62][63]