Aramark(ARMK) - 2025 Q1 - Quarterly Results

Financial Performance - Operating Income increased by 30% year-over-year to $217 million, with Adjusted Operating Income (AOI) growing by 13% to$ 258 million[5]. - Consolidated revenue reached $4.6 billion, a 3% increase year-over-year, with Organic revenue growth of 5%[6]. - GAAP EPS rose by 264% to$ 0.39, while Adjusted EPS increased by 25% to $0.51[5]. - Revenue for the three months ended December 27, 2024, was$ 4,552,086, an increase of 3.3% compared to $4,407,765 for the same period in 2023[41]. - Adjusted operating income for the three months ended December 27, 2024, was$ 257,568, reflecting an 11.7% growth from $230,579 in the prior year[47]. - Adjusted net income attributable to Aramark stockholders for the three months ended December 27, 2024, was$ 136,934, up 25.8% from $108,802 in the same period last year[50]. - Earnings per share (EPS) for the three months ended December 27, 2024, was$ 0.51, representing a 23.8% increase from $0.41 in the prior year[50]. - Total revenue for Aramark and subsidiaries reached$ 4,552,086, with a reported growth of 3.3% compared to the previous year[62]. Acquisitions and Investments - The company completed the acquisition of Quantum Cost Consultancy Group, enhancing its Global Supply Chain spend to over $20.5 billion[12]. - Aramark initiated a$ 500 million share repurchase program, having repurchased over 645,000 shares for approximately $25 million[9]. Future Outlook - The company expects organic revenue growth of 9.5% and Adjusted Operating Income growth of 18% for fiscal 2025[15]. - Aramark anticipates achieving Net New business growth of 4% to 5% of prior year revenue, with retention levels above 95%[11]. - The company continues to focus on market expansion and new product development strategies to drive future growth[62]. - The company anticipates continued growth and improvement in financial performance, despite potential risks from economic conditions and geopolitical events[39]. Cash Flow and Debt Management - The company reported a cash availability of over$ 1.7 billion at quarter-end[9]. - The company plans to fully repay $552 million of Senior Notes due April 2025 and refinance certain term loans to 2030[13]. - Cash and cash equivalents at the end of the period were$ 484,149, a decrease from $672,483 at the end of the previous quarter[42]. - Net cash provided by financing activities was$ 642,698, compared to a net cash used of $779,003 in the same period last year[45]. - The company reported a net cash used in operating activities of$ 587,152, an improvement from $657,077 in the prior year[45]. Segment Performance - FSS United States revenue grew by 3% to$ 3.301 billion, while FSS International revenue increased by 5% to $1.251 billion[7]. - Operating income growth for FSS United States was 10.8% and for FSS International was 16.1% for the three months ended December 27, 2024[47]. - Adjusted revenue growth (organic) for FSS International was 9.8% for the three months ended December 27, 2024[47]. - Food segment revenue increased to$ 3,926,762, showing a growth of 4.7% compared to the same period last year[62]. - Facilities segment revenue was $625,324, with a year-over-year growth of 2.7%[62]. - FSS United States food revenue reported a growth of 4.8%, while FSS International food revenue grew by 10.0%[62]. - The total revenue for FSS International was$ 1,251,070, reflecting a growth of 4.7%[62]. Financial Ratios and Metrics - Interest expense, net decreased to $75,804, down 33.9% from$ 114,562 in the previous year[41]. - Total current liabilities decreased to $3,496,855 from$ 4,214,210, indicating improved liquidity[42]. - Net debt to covenant adjusted EBITDA ratio improved to 4.0 for the twelve months ended December 27, 2024, down from 4.5 in the prior year[52]. - Free cash flow for the three months ended December 27, 2024, was $(704,940), compared to$ (768,278) for the same period in 2023, indicating an improvement of $63,338[60].