Aramark(US:ARMK)2022-02-08 21:33Financial Performance - Revenue for the three months ended December 31, 2021, was $3,948.26 million, compared to $2,743.79 million for the same period in 2020, representing an increase of 44.0%[8] - Operating income for the three months ended December 31, 2021, was $140.25 million, a significant recovery from an operating loss of $20.47 million in the same period of the previous year[8] - Net income attributable to Aramark stockholders for the three months ended December 31, 2021, was $42.61 million, compared to a net loss of $81.24 million in the same period in 2020[8] - Basic earnings per share for the three months ended December 31, 2021, was $0.17, recovering from a loss per share of $0.32 in the same period of the previous year[8] - Comprehensive income attributable to Aramark stockholders for the three months ended December 31, 2021, was $60.36 million, compared to a comprehensive loss of $(47.14) million in the same period in 2020[10] - The company reported a net income of $42,707 thousand for the three months ended December 31, 2021, compared to a net loss of $(81,380) thousand for the same period in the previous year[23] - The company’s Covenant Adjusted EBITDA for the twelve-month period ended December 31, 2021, was $1,042.8 million, compared to $1,453.8 million for the Amendment Adjusted Period[99] Cash Flow and Investments - Cash flows used in operating activities for the three months ended December 31, 2021, were $(503.39) million, compared to $(115.17) million for the same period in 2020[13] - Net cash used in investing activities for the three months ended December 31, 2021, was $(177.65) million, compared to $(90.78) million in the same period of the previous year[13] - Net cash provided by financing activities for the three months ended December 31, 2021, was $564.96 million, a significant increase compared to $(1,148.16) million in the same period in 2020[13] - The company paid cash dividends of approximately $28.2 million during the three months ended December 31, 2021, compared to $27.9 million in the same period in 2021[52] - Cash flows used in investing activities increased due to acquisitions of certain businesses and equity method investments during the three-month period of fiscal 2022[96] Segment Performance - The FSS United States segment generated $2,425.4 million in revenue for the three months ended December 31, 2021, compared to $1,445.8 million for the same period in 2021, indicating a year-over-year growth of approximately 67.8%[48] - The FSS International segment reported revenue of $873.2 million, an increase from $694.5 million year-over-year, reflecting growth in international operations[63] - The Uniform segment achieved revenue of $649.7 million, up from $603.5 million, indicating a positive trend in this business area[63] - Operating income for the FSS United States segment was $99.0 million, compared to a loss of $14.8 million in the prior year, showcasing improved profitability[64] Debt and Equity - The total stockholders' equity as of December 31, 2021, was $2,784.46 million, an increase from $2,722.87 million at the beginning of the period[15] - Long-term borrowings net totaled $7,981.6 million as of December 31, 2021, an increase from $7,393.4 million on October 1, 2021[35] - The fair value of the company's debt was $8,194.2 million as of December 31, 2021, compared to a carrying value of $8,034.4 million[68] - The company has no significant debt maturities due until 2025, providing flexibility to manage the impact of COVID-19[92] Operational Challenges and Adjustments - The company continues to adapt its business model in response to COVID-19, focusing on flexible operations and diversifying service offerings[73] - The impact of COVID-19 has led to a deterioration in revenue and operating income, but improvements were noted in the first quarter of fiscal 2022 as restrictions eased[73] - The company expects ongoing challenges related to supply chain disruptions and inflation, which may affect future performance[74] Tax and Regulatory Matters - The company expects to utilize deferred tax assets based on future taxable income, resulting in a tax benefit of approximately $8.5 million during the three months ended December 31, 2021[52] - The effective tax rate for the three-month period was recorded at 9.6%, compared to 32.7% in the prior year[84] - The company incurred $46.9 million in governmental labor-related tax credits due to the COVID-19 pandemic, net of labor charges, for the Amendment Adjusted Period ended December 31, 2021[102] Miscellaneous - The company recorded approximately $12.2 million of labor-related tax credits in the FSS International segment during the three months ended December 31, 2021[30] - The company recorded a reserve of approximately $19.3 million related to a dispute with a client, indicating potential liability exposure[61] - The company granted 1.1 million Time-Based Options (TBOs) with a weighted average fair value of $13.26 per share during the three months ended December 31, 2021[56]