Aramark(US:ARMK)2023-05-08 16:00Revenue Growth - Revenue for the three months ended March 31, 2023, was $4,602.1 million, an increase of 19.2% from $3,860.5 million for the same period in 2022[9] - Total revenue for the six months ended March 31, 2023, was $9,203.1 million, an increase from $7,808.8 million for the same period in 2022, representing a growth of approximately 17.8%[75] - Revenue from the United States for the six months ended March 31, 2023, was $5,764.2 million, up from $4,763.7 million in the prior year, indicating a growth of about 21.0%[61] - FSS United States segment revenue for the three months ended March 31, 2023, was $2,843.2 million, an increase from $2,338.3 million in the same period of 2022, marking a growth of about 21.6%[78] - FSS International revenue grew by 23.2% to $1,073.0 million for the three months ended March 31, 2023, up from $870.9 million in the same period last year[102] Income and Earnings - Net income attributable to Aramark stockholders for the three months ended March 31, 2023, was $56.0 million, compared to $35.7 million for the same period in 2022, representing a 56.5% increase[9] - Net income for the six months ended March 31, 2023, was $129.5 million, compared to $78.3 million for the same period in 2022, representing a 65.5% increase[15] - Earnings per share attributable to Aramark stockholders for the six months ended March 31, 2023, was $0.50, up from $0.31 for the same period in 2022, reflecting a 61.3% increase[10] - Net income for the three months ended March 31, 2023, was $55.9 million, compared to $35.5 million for the same period in 2022[28] Operating Performance - Operating income for the six months ended March 31, 2023, was $381.6 million, up 35.2% from $282.2 million for the same period in 2022[10] - Operating income for the FSS United States segment increased by approximately $73.9 million and $138.1 million during the three and six month periods of fiscal 2023, primarily due to growth in base business and effective cost management[112] - Operating income by segment for FSS United States increased by 89.9% to $156.0 million for the three months ended March 31, 2023, compared to $82.1 million in the prior year[102] Costs and Expenses - The cost of services provided for the six months ended March 31, 2023, was $8,341.5 million, an increase of 18.1% from $7,062.3 million for the same period in 2022[10] - Interest and other financing costs for the three months ended March 31, 2023, were $114.0 million, compared to $89.7 million for the same period in 2022, indicating a 27.0% increase[9] - The company reported depreciation and amortization expenses of $273.3 million for the six months ended March 31, 2023, slightly up from $267.8 million in the same period last year[15] Cash Flow and Investments - Net cash used in operating activities increased to $292.7 million for the six months ended March 31, 2023, compared to $128.3 million for the same period in 2022[15] - The company reported a net cash used in investing activities of $225.9 million for the six months ended March 31, 2023, compared to $289.8 million for the same period in 2022, indicating a decrease of 22.1%[15] - Cash and cash equivalents at the end of the period were $302.7 million, down from $429.3 million at the end of the previous year[15] Strategic Initiatives - The company anticipates continued growth driven by strategic market expansions and new product developments in the upcoming quarters[6] - The proposed spin-off of Aramark Uniform Services is expected to create additional value for stockholders, with anticipated benefits and costs being closely monitored[6] - The company intends to spin off its Uniform segment into an independent publicly traded company, expected to be completed in the fourth quarter of fiscal 2023[25] Foreign Currency and Adjustments - The company reported a foreign currency translation adjustment of $10.2 million for the three months ended March 31, 2023, compared to $6.4 million for the same period in 2022[12] - The effect of foreign exchange rates on cash and cash equivalents was a positive $477.3 million for the six months ended March 31, 2023, compared to $317.8 million in the same period last year[15] - Foreign currency translation adjustments contributed $10.2 million to comprehensive income for the three months ended March 31, 2023[28] Shareholder Returns - The company approved a dividend of $0.11 per share on May 2, 2023, payable on May 31, 2023, to stockholders of record on May 17, 2023[65] - The net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months is approximately $42.8 million[57] Accounting and Compliance - The Company adopted new accounting standards related to government assistance, effective in the first quarter of fiscal 2023, which did not have a material impact on financial statements[28] - The Company is evaluating the impact of new accounting standards related to supplier finance programs, effective in the first quarter of fiscal 2024[28]