Aramark(ARMK) - 2025 Q2 - Quarterly Report

Revenue and Income - Revenue for the three months ended March 28, 2025, was $4,279,298, an increase of 1.9$4,199,913 for the same period in 2024[16] - Net income attributable to Aramark stockholders for the six months ended March 28, 2025, was $167,473, compared to$81,985 for the same period in 2024, representing a significant increase[16] - Earnings per share attributable to Aramark stockholders for the three months ended March 28, 2025, was $0.23, compared to$0.20 for the same period in 2024, reflecting a growth of 15%[16] - For the three months ended March 28, 2025, net income was $61,973,000, compared to$53,002,000 for the same period in 2024, representing a year-over-year increase of 16.7%[41] - Comprehensive income for the six months ended March 28, 2025, was $133,780,000, significantly higher than$48,094,000 for the same period in 2024[41] Assets and Liabilities - Total current assets increased to $3,839,766 as of March 28, 2025, from$3,406,562 as of September 27, 2024, reflecting a growth of 12.7%[14] - Total liabilities decreased to $10,469,290 as of March 28, 2025, from$9,635,397 as of September 27, 2024, indicating a reduction of 8.5%[14] - Cash and cash equivalents increased to $920,455 as of March 28, 2025, compared to$672,483 as of September 27, 2024, marking a rise of 36.8%[14] - The balance of retained earnings increased to $315,470,000 as of December 27, 2024, from$239,709,000 on September 27, 2024[24] Cash Flow and Financing Activities - The company reported a net cash used in operating activities of $331,204 for the six months ended March 28, 2025, compared to$435,797 for the same period in 2024, showing an improvement[21] - Cash flows from financing activities resulted in a net cash provided of $1,066,564 for the six months ended March 28, 2025, compared to a net cash used of$833,012 for the same period in 2024, demonstrating a positive shift[21] - Cash used in operating activities decreased by $104.6 million during the six month period of fiscal 2025 compared to the prior year, driven by higher net income and lower payments made to clients[150] - Cash flows used in investing activities increased by$192.6 million during the six month period of fiscal 2025, primarily due to higher acquisitions of certain businesses ($155.1 million)[152] Stockholder Equity and Dividends - Total stockholders' equity increased to$3,081,884,000 as of December 27, 2024, up from $3,038,974,000 on September 27, 2024, reflecting a growth of approximately 1.4$0.105 per share, totaling $29,858,000 for the quarter ending December 27, 2024[24] - The company declared a dividend of$0.105 per share, payable on May 28, 2025, to stockholders of record on May 14, 2025[99] Segment Performance - The company operates in two reportable segments: Food and Support Services United States and Food and Support Services International, with a significant market presence in the United States and 15 additional countries[31] - FSS United States segment revenue was $3,056.4 million for the three months ended March 28, 2025, compared to$3,043.4 million for the same period in 2024, reflecting a growth of 0.4%[108] - FSS International segment revenue increased to $1,222.9 million for the three months ended March 28, 2025, up from$1,156.5 million in the same period of 2024, representing a growth of 5.7%[108] Debt and Interest Management - As of March 28, 2025, total long-term borrowings net amounted to $6,109.1 million, an increase from$4,307.2 million as of September 27, 2024, representing a 42% increase[65] - The company issued €400.0 million of 4.375% Senior Notes due April 2033 on March 19, 2025, using proceeds to repay €325.0 million of 3.125% Senior Notes due April 2025[67] - The new U.S. Term B-8 Loans due 2030 amount to $1,395.0 million, which were used to repay$839.3 million of Term B-4 Loans due January 2027 and redeem $551.5 million of 5.000$89.7 million, slightly up from $86.3 million in the same period of 2024[109] Market and Economic Conditions - The company anticipates continued volatility in foreign currencies and inflationary costs due to recent developments in tariffs and global trade[121] - The company reported a foreign currency translation adjustment loss of$26,982,000 for the six months ended March 28, 2025, compared to a loss of $5,246,000 for the same period in 2024[41] Corporate Governance and Compliance - Certifications from the CEO and CFO were filed in compliance with the Sarbanes-Oxley Act[31.1][31.2] - The financial documents are filed with the SEC, ensuring transparency and regulatory compliance[32]