Aramark(US:ARMK)2024-11-12 11:31Revenue Growth - Revenue increased by 8% year-over-year to $17.4 billion, with organic revenue growth of 10%[6][8] - Revenue for the fiscal year ended September 27, 2024, was $17,400,701, compared to $16,083,212 for the previous year, representing an 8.2% increase[51] - Revenue growth (as reported) for Aramark and Subsidiaries was 8.2% for the fiscal year ended September 27, 2024, reaching $17,400,701 thousand[59] - Adjusted revenue growth (organic) for Aramark and Subsidiaries was 9.9% for the fiscal year ended September 27, 2024, reaching $17,675,907 thousand[59] - Revenue growth (as reported) for the three months ended September 27, 2024, was 5.2% for Aramark and Subsidiaries, reaching $4,416,947 thousand[60] - Adjusted revenue growth (organic) for the three months ended September 27, 2024, was 6.9% for Aramark and Subsidiaries, reaching $4,489,325 thousand[60] Operating Income and Margins - Operating income rose by 13% to $707 million, and Adjusted Operating Income (AOI) grew by 20% to $882 million[9] - Adjusted operating income for Aramark and Subsidiaries increased by 18.8% to $882,218 thousand for the fiscal year ended September 27, 2024[59] - Adjusted operating income margin (constant currency) for Aramark and Subsidiaries was 5.1% for the fiscal year ended September 27, 2024[59] - Adjusted operating income for the three months ended September 27, 2024, increased by 7.2% to $271,371 thousand for Aramark and Subsidiaries[60] - Adjusted operating income margin (constant currency) for the three months ended September 27, 2024, was 6.1% for Aramark and Subsidiaries[60] Earnings Per Share (EPS) - GAAP EPS decreased by 42% to $0.99, while Adjusted EPS increased by 35% to $1.55[10] - Basic earnings per share attributable to Aramark stockholders from Continuing Operations was $1.00 for the fiscal year ended September 27, 2024, down from $1.72 in the previous year[51] - Diluted earnings per share attributable to Aramark stockholders from Continuing Operations was $0.99 for the fiscal year ended September 27, 2024, down from $1.71 in the previous year[51] - Adjusted Earnings Per Share (EPS) for the fiscal year ended September 27, 2024, was $1.55, a 76.1% increase from $0.88 in the previous year[61] - Adjusted Earnings Per Share (Constant Currency) for the fiscal year ended September 27, 2024, was $1.56, a 35.0% increase from $1.16 in the previous year[61] Cash Flow and Free Cash Flow - Net cash from operations increased by 42% to $727 million, and Free Cash Flow surged by 121% to $323 million[17] - Net cash provided by operating activities of Continuing Operations was $726,514 for the fiscal year ended September 27, 2024, up from $511,647 in the previous year[58] - Free Cash Flow for the fiscal year ended September 27, 2024, was $323.0 million, compared to $146.2 million in the previous year[65] - Net cash provided by operating activities of Continuing Operations for the fiscal year ended September 27, 2024, was $726.5 million, up from $511.6 million in the previous year[65] - Net purchases of property and equipment and other for the fiscal year ended September 27, 2024, were $403.5 million, compared to $365.5 million in the previous year[65] Leverage and Debt - The company's leverage ratio improved by 50 basis points to 3.4x, with over $2.6 billion in cash availability[18] - The company expects to reduce its leverage ratio to approximately 3.0x in fiscal 2025[27] - Net Debt to Covenant Adjusted EBITDA ratio improved to 3.4 for the twelve months ended September 27, 2024, from 3.9 in the previous year[63] - Effect of debt repayments includes $23.9 million for fiscal 2024 related to the repayment of Senior Notes due 2025[43] Dividends and Share Repurchases - Quarterly dividend increased by 11% to $0.105 per share[19] - The company authorized a new $500 million share repurchase program[23] Business Wins and Outlook - Annualized gross new business wins totaled more than $1.4 billion, representing 9% of prior year revenue[21] - Fiscal 2025 outlook includes organic revenue growth of 7.5% to 9.5%, AOI growth of 15% to 18%, and Adjusted EPS growth of 23% to 28%[27] Adjustments and Non-Recurring Items - Adjusted Revenue (Organic) represents revenue adjusted to eliminate the impact of currency translation[32] - Adjusted Operating Income adjusted for severance and other charges, including $6.8 million for Q4 2024 and $13.0 million for fiscal 2024[39] - Spin-off related charges include $8.8 million for fiscal 2024, primarily for accounting, legal, and advisory costs[40] - Gains, losses, and settlements impacting comparability include $18.2 million for Q4 and fiscal 2024, primarily for non-cash inventory adjustments[41] - Gain on sale of equity investments includes $25.1 million gain from the sale of the San Antonio Spurs NBA franchise for Q4 and fiscal 2024[42] - Tax impact of adjustments includes a $1.3 million benefit for Q4 2024 and a $5.8 million charge for fiscal 2024 related to the spin-off of the Uniform segment[44] - Adjusted EPS (Constant Currency) adjusted for currency translation and interest expense, net of tax, related to the $1.5 billion Senior Notes due 2025[34] - Covenant Adjusted EBITDA represents net income adjusted for interest, taxes, depreciation, and amortization, used for debt compliance[35] - Free Cash Flow represents net cash provided by operating activities less net purchases of property and equipment[36] Net Income and Adjusted Net Income - Net income from Continuing Operations attributable to Aramark stockholders was $262,522 for the fiscal year ended September 27, 2024, down from $447,676 in the previous year[51] - Net Income from Continuing Operations Attributable to Aramark Stockholders for the fiscal year ended September 27, 2024, was $262.5 million, compared to $447.7 million in the previous year, a decrease of 42.1%[61] - Adjusted Net Income for the fiscal year ended September 27, 2024, was $411.8 million, up 76.1% from $229.9 million in the previous year[61] - Adjusted Net Income (Constant Currency) for the fiscal year ended September 27, 2024, was $416.1 million, a 35.0% increase from $304.0 million in the previous year[61] Cash and Liabilities - Cash and cash equivalents decreased to $672,483 as of September 27, 2024, from $1,927,088 as of September 29, 2023[55] - Total current liabilities decreased to $4,214,210 as of September 27, 2024, from $5,029,967 as of September 29, 2023[56] - Net cash used in investing activities of Continuing Operations was $415,862 for the fiscal year ended September 27, 2024, compared to net cash provided by investing activities of $223,658 in the previous year[58] - Net cash used in financing activities of Continuing Operations was $1,561,196 for the fiscal year ended September 27, 2024, compared to net cash provided by financing activities of $659,627 in the previous year[58] Shares Outstanding - Weighted average shares outstanding (basic) increased to 263,045 for the fiscal year ended September 27, 2024, from 260,592 in the previous year[51] Covenant Adjusted EBITDA - Covenant Adjusted EBITDA for the twelve months ended September 27, 2024, was $1.335 billion, compared to $1.607 billion in the previous year[63]