Aramark(US:ARMK)2024-05-07 20:29Revenue and Income - Revenue for the three months ended March 29, 2024, was $4,199,913, an increase of 7.2% from $3,916,156 for the same period in 2023[8]. - Total revenue for the six months ended March 29, 2024, was $8,607.7 million, an increase of 9.9% from $7,829.9 million for the same period in 2023[71]. - Net income from continuing operations attributable to Aramark stockholders for the three months ended March 29, 2024, was $53,449, compared to $14,249 for the same period in 2023[8]. - Net income from Continuing Operations for the six months ended March 29, 2024, was $81,519,000, compared to $52,088,000 for the same period in 2023, representing a 56.5% increase[13]. - Basic earnings per share from continuing operations for the three months ended March 29, 2024, was $0.20, a significant increase from $0.05 in the prior year[8]. - Operating income for the six months ended March 29, 2024, was $326,036, up 17.7% from $277,042 in the prior year[9]. - Operating income for the three months ended March 29, 2024, rose by 26.9% to $159.0 million, up from $125.3 million in the prior year[101]. - Net income from continuing operations for the three months ended March 29, 2024, surged by 275.1% to $53.0 million, compared to $14.1 million in the same period last year[101]. Costs and Expenses - Total costs and expenses for the six months ended March 29, 2024, were $8,281,642, compared to $7,552,834 for the same period in 2023, reflecting a rise of 9.7%[9]. - Interest expense for the six months ended March 29, 2024, was $200,939, down from $214,555 in the previous year[9]. - Interest expense for the three months ended March 29, 2024, decreased by 24.0% to $86.3 million from $113.5 million in the prior year[101]. - Income taxes paid increased to $77.0 million for the six months ended March 29, 2024, compared to $22.7 million for the same period in 2023, indicating a significant increase in tax obligations[16]. - Share-based compensation expense was $29,444,000 for the six months ended March 29, 2024, down from $39,123,000 for the same period in 2023, reflecting a 24.7% decrease[13]. Cash Flow and Financing - Net cash used in operating activities of Continuing Operations was $(435,797,000) for the six months ended March 29, 2024, compared to $(362,438,000) for the same period in 2023, indicating a 20.2% increase in cash outflow[13]. - Net cash used in investing activities of Continuing Operations was $(289,821,000) for the six months ended March 29, 2024, compared to $(204,164,000) for the same period in 2023, reflecting a 42.0% increase in cash outflow[13]. - The company experienced a net cash outflow from financing activities of $(833,012,000) for the six months ended March 29, 2024, compared to a net cash inflow of $486,117,000 for the same period in 2023[13]. - Proceeds from long-term borrowings amounted to $219,231,000 for the six months ended March 29, 2024, compared to $174,937,000 for the same period in 2023, showing a 25.3% increase[13]. - Cash and cash equivalents as of March 29, 2024, totaled $356.6 million, with $771.2 million available under the senior secured revolving credit facility[115]. Segment Performance - Total FSS United States revenue for the six months ended March 29, 2024, was $6,256.2 million, up from $5,764.2 million for the same period in 2023[71]. - Total FSS International revenue for the six months ended March 29, 2024, was $2,351.5 million, compared to $2,065.7 million for the same period in 2023[71]. - FSS United States revenue for the three months ended March 29, 2024, was $3,043.4 million, compared to $2,843.2 million for the same period in 2023, reflecting a 7.0% growth[87]. - FSS International revenue for the three months ended March 29, 2024, increased to $1,156.5 million from $1,073.0 million, marking a 7.8% rise[87]. Strategic Initiatives and Market Outlook - The company anticipates continued growth driven by strategic market expansions and new product developments[8]. - The company is focused on integrating acquired businesses effectively to enhance operational efficiency and drive profitability[8]. - The company expects continued inflationary pressures but has seen moderation in costs related to products, energy, and labor[98]. Discontinued Operations and Corporate Changes - The Company completed the separation and distribution of its Uniform segment into Vestis Corporation on September 30, 2023, with historical results reflected as discontinued operations[25]. - The Company completed the spin-off of its Uniform segment into an independent publicly traded company, Vestis, with each Aramark stockholder receiving one share of Vestis for every two shares of Aramark held[40]. - The Company incurred $20.0 million in transaction fees related to the separation and distribution of its Uniform segment during the six months ended March 29, 2024[42]. Accounting and Compliance - The Company is evaluating the impact of new accounting standards related to income tax disclosures and segment reporting, effective for fiscal years 2026 and 2025 respectively[27]. - The company is compliant with all covenants in the Credit Agreement as of March 29, 2024[121].