Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $4.4 billion, reflecting an 11% organic growth year-over-year, driven by a mix of volume and pricing as well as new client contributions [6][16] - Operating income increased by 22% compared to the prior year, with adjusted operating income up 21% on a constant currency basis [6][16] - GAAP EPS was $0.22 and adjusted EPS was $0.31, representing an increase of over 50% versus the prior year on a constant currency basis [19] Business Segment Data and Key Metrics Changes - FSS U.S. achieved organic revenue growth of 9%, supported by increased per capita spending and event attendance in Sports and Entertainment [7][17] - The International segment saw organic revenue growth of 16%, with strong performance across all geographies, particularly in the U.K., Canada, and Spain [10][18] Market Data and Key Metrics Changes - The company reported strong sales in sports and entertainment, serving over 1.6 million visitors during the 2024 men's European football championships in Germany [11] - In Spain, over 280,000 fans were served during the Formula One Grand Prix, indicating robust demand in international markets [11] Company Strategy and Development Direction - The company is focused on expanding its culinary capabilities through partnerships, such as with Michelin Star Chef Daniel Boulud, to enhance corporate catering and special events [9] - Aramark is pursuing GPO acquisition opportunities to complement organic growth and enhance capabilities in key areas, particularly in international markets [13][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued business momentum into the next fiscal year, citing substantial growth opportunities ahead [5] - The company anticipates organic revenue growth of approximately 10% and adjusted EPS growth of approximately 35% for the full fiscal year [21] Other Important Information - The company has been recognized for its commitment to diversity and sustainability, being named one of the 50 most community-minded companies in the U.S. [15] - Aramark plans to sell its remaining ownership stake in the San Antonio Spurs NBA franchise, with proceeds expected to be used for debt repayment [14] Q&A Session Summary Question: Comments on contracting in higher education space - Management reported a strong selling season in higher education, achieving more new accounts than ever before, and expressed optimism for future growth in this sector [24][25] Question: Impact of new wins on operating margin expansion - Management indicated that new business maturity is no longer a significant headwind for operating margin expansion, with year-to-date margin expansion being strong [26][27] Question: Initiatives leading to success in international business - Management noted broad-based success in international markets, with high outsourcing activity and a robust sales pipeline [29][30] Question: Pipeline opportunities in sports and entertainment - Management confirmed ongoing opportunities in the sports and entertainment sector, including significant special event opportunities [39][40] Question: Business performance during a recession - Management emphasized the resilience of the business during economic downturns, citing a diverse set of sectors and profit centers [42][43] Question: GPO growth and margin opportunities - Management highlighted the focus on expanding GPO spend and the potential for significant growth in this area, particularly in Europe [46][48] Question: Current demand trends across segments - Management reported no significant signs of softer demand, with strong spending trends particularly in sports and entertainment [50] Question: Addressable market changes in B&I business - Management discussed the robust growth in the B&I segment and the potential for high-end catering opportunities through new initiatives [52][56] Question: Inflation trends and their impact - Management indicated that inflation is trending favorably, with expectations for continued moderate tailwinds into the next fiscal year [58][72] Question: Retention and net new contributions for the year - Management expects retention rates to align with historical averages, feeling confident about the current track [60]

[PART I - Financial Information](index=5&type=section&id=PART%20I%20-%20Financial%20Information) This section provides Aramark's unaudited condensed consolidated financial statements, management's discussion and analysis, and disclosures on market risk and controls [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents Aramark's unaudited condensed consolidated financial statements and detailed accounting notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of Aramark's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | June 28, 2024 | September 29, 2023 | | :-------------------- | :------------ | :----------------- | | Cash and cash equivalents | $436,075 | $1,927,088 | | Total current assets | $3,330,366 | $5,220,027 | | Total Assets | $12,548,711 | $16,871,241 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Total current liabilities | $3,452,966 | $5,029,967 | | Long-Term Borrowings | $5,034,327 | $5,098,662 | | Total stockholders' equity | $2,943,924 | $3,712,718 | | Total Liabilities and Stockholders' Equity | $12,548,711 | $16,871,241 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This statement details Aramark's revenues, operating income, and net income for the reported periods Condensed Consolidated Statements of Income (in thousands) | (in thousands) | Three Months Ended June 28, 2024 | Three Months Ended June 30, 2023 | Nine Months Ended June 28, 2024 | Nine Months Ended June 30, 2023 | | :------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $4,376,076 | $4,053,050 | $12,983,754 | $11,882,926 | | Operating income | $161,679 | $132,512 | $487,715 | $409,554 | | Net income from Continuing Operations attributable to Aramark stockholders | $58,126 | $286,606 | $140,111 | $339,353 | | Net income attributable to Aramark stockholders | $58,126 | $338,484 | $140,111 | $468,676 | | Basic earnings per share attributable to Aramark stockholders | $0.22 | $1.30 | $0.53 | $1.80 | | Diluted earnings per share attributable to Aramark stockholders | $0.22 | $1.29 | $0.53 | $1.79 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents Aramark's net income and other comprehensive income components Condensed Consolidated Statements of Comprehensive Income (in thousands) | (in thousands) | Three Months Ended June 28, 2024 | Three Months Ended June 30, 2023 | Nine Months Ended June 28, 2024 | Nine Months Ended June 30, 2023 | | :------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $58,121 | $338,555 | $139,640 | $468,088 | | Other comprehensive (loss) income, net of tax | $(4,618) | $29,515 | $(38,043) | $45,463 | | Comprehensive income attributable to Aramark stockholders | $53,508 | $367,999 | $102,068 | $514,139 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines Aramark's cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Nine Months Ended June 28, 2024 | Nine Months Ended June 30, 2023 | | :------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities of Continuing Operations | $(295,101) | $(415,007) | | Net cash (used in) provided by investing activities of Continuing Operations | $(379,404) | $323,504 | | Net cash (used in) provided by financing activities of Continuing Operations | $(800,564) | $76,166 | | (Decrease) Increase in cash and cash equivalents and restricted cash | $(1,476,838) | $81,816 | | Cash and cash equivalents and restricted cash, end of period | $495,529 | $447,247 | [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This statement details changes in Aramark's stockholders' equity, including net income and stock transactions - Total stockholders' equity **decreased from $3,712,718 thousand** as of September 29, 2023, to **$2,943,924 thousand** as of June 28, 2024, primarily due to the separation of the Uniform Segment, payments of dividends, and repurchases of common stock, partially offset by net income and capital contributions[18](index=18&type=chunk)[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section provides detailed explanations and disclosures for the consolidated financial statements [NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note describes Aramark's business, reporting segments, and key accounting policies - Aramark is a global provider of food and facilities services, operating in two segments: FSS United States and FSS International, with the Uniform segment separated into Vestis Corporation on September 30, 2023, and reported as discontinued operations[24](index=24&type=chunk) - The company adopted new accounting standards for supplier finance programs and business combinations in fiscal 2024 with no material impact, while new SEC climate-related disclosure rules and FASB standards are being evaluated for future fiscal years[24](index=24&type=chunk) Accumulated Other Comprehensive Loss (in thousands) | Accumulated Other Comprehensive Loss (in thousands) | June 28, 2024 | September 29, 2023 | | :-------------------------------------------------- | :------------ | :----------------- | | Pension plan adjustments | $(9,165) | $(14,241) | | Foreign currency translation adjustments | $(170,501) | $(193,115) | | Cash flow hedges | $74,795 | $109,119 | | Total | $(104,871) | $(98,237) | [NOTE 2. DISCONTINUED OPERATIONS](index=15&type=section&id=NOTE%202.%20DISCONTINUED%20OPERATIONS) This note details the spin-off of Aramark's Uniform segment and its treatment as discontinued operations - On September 30, 2023, Aramark completed the tax-free spin-off of its Uniform segment into Vestis Corporation, distributing one share of Vestis common stock for every two shares of Aramark common stock held, with historical results reflected as discontinued operations[39](index=39&type=chunk) - In connection with the spin-off, Aramark entered into several agreements with Vestis, including Separation and Distribution, Transition Services, Tax Matters, and Employee Matters Agreements, with services provided to Vestis totaling **$10.4 million** for the nine months ended June 28, 2024[39](index=39&type=chunk)[41](index=41&type=chunk) Uniform Segment (Discontinued Operations, in thousands) | Uniform Segment (Discontinued Operations, in thousands) | Nine Months Ended June 30, 2023 | | :------------------------------------------------------ | :------------------------------ | | Revenue | $2,069,366 | | Operating income | $175,457 | | Income from Discontinued Operations, net of tax | $129,323 | [NOTE 3. SEVERANCE](index=17&type=section&id=NOTE%203.%20SEVERANCE) This note outlines severance charges incurred from headcount reductions - During the second quarter of fiscal 2023, Aramark approved headcount reductions, resulting in **$29.7 million** in severance charges for the nine months ended June 30, 2023, primarily within FSS International (**$25.8 million**)[46](index=46&type=chunk)[49

Q3 Fiscal 2024 Earnings Results A U G U S T 6, 2 0 2 4 d a production of the aramark 2 Special Note About Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, stateme ...

For Immediate Release Inquiries: Felise Glantz Kissell (215) 409-7287 Kissell-Felise@aramark.com Gene Cleary (215) 409-7945 Cleary-Gene@aramark.com Aramark Reports Third Quarter Earnings YEAR-OVER-YEAR SUMMARY • Revenue +8%; Organic Revenue +11% ◦ Record revenue in a third quarter for FSS U.S. and for any quarter in FSS International ◦ Continued strong growth from base business volume, pricing, and net new business • Operating Income +22% ; Adjusted Operating Income (AOI) +21% ◦ Record profitability in a th ...

Revenue 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].

Aramark (NYSE:ARMK) Q2 2024 Earnings Conference Call May 7, 2024 8:30 AM ET Company Participants Felise Kissell - Senior Vice President, Investor Relations and Corporate Development John Zillmer - Chief Executive Officer Jim Tarangelo - Chief Financial Officer Conference Call Participants Toni Kaplan - Morgan Stanley Ian Zaffino - Oppenheimer Lizzie Dove - Goldman Sachs Emily Marzo - BOA Andrew Steinerman - JPMorgan Neil Tyler - Redburn Atlantic Shlomo Rosenbaum - Stifel Leo Carrington - Citi Ashish Sabadra ...

TOGETHER WE ARE | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q2 Fiscal 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Earnings Results | | | | | | | | | | | | | | May 7, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements TOGE ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q2 Fiscal 2024 Highlights](index=1&type=section&id=Q2%20Fiscal%202024%20Highlights) Aramark reported strong Q2 fiscal 2024 results with significant growth and enhanced its capital structure Q2 FY24 Performance vs Prior Year | Metric | Q2 FY24 Change | | :--- | :--- | | Revenue | +7% | | Organic Revenue | +9% | | Operating Income | +27% | | Adjusted Operating Income (AOI) | +29% | | Operating Income Margin | +59 bps | | AOI Margin | +69 bps | | GAAP EPS | +271% to $0.20 | | Adjusted EPS | +79% to $0.29 | - The company opportunistically enhanced its capital structure by favorably repricing 2028 and 2030 Term Loans by **50 bps**, expecting interest expense savings, with over **$1.1 billion** in cash availability at quarter-end[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO attributed record Q2 revenue and profit to strategic execution, volume growth, and cost control - The company achieved **record revenue** for any second quarter in FSS US and International segments, and **record second quarter profit** in the International segment[2](index=2&type=chunk) - Profitability improvement was primarily due to leveraging higher revenue, accelerating supply chain objectives, disciplined cost control, and benefiting from inflation trends[2](index=2&type=chunk) [Second Quarter Results](index=2&type=section&id=SECOND%20QUARTER%20RESULTS) [Consolidated Revenue Performance](index=2&type=section&id=Consolidated%20Revenue%20Performance) Consolidated revenue for Q2 fiscal 2024 reached $4.2 billion, a 7% increase, with organic revenue growing 9% Consolidated Revenue (Q2 FY24) | Metric | Q2 FY24 Value | YoY Change | Organic YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $4.2 billion | +7% | +9% | - Revenue growth was driven by strong base business volume, pricing actions, and net new business growth, while currency translation reduced revenue by $84 million[3](index=3&type=chunk) [Segment Revenue Breakdown](index=2&type=section&id=Segment%20Revenue%20Breakdown) Both FSS United States and FSS International segments reported strong revenue growth, with International showing particularly high organic growth Segment Revenue (Q2 FY24) | Segment | Q2 FY24 Revenue | YoY Change | Organic YoY Change | | :--- | :--- | :--- | :--- | | FSS United States | $3,044 million | +7% | +7% | | FSS International | $1,156 million | +8% | +16% | - FSS United States growth was led by Education, Sports & Entertainment, and Business & Industry sectors[5](index=5&type=chunk) - FSS International growth was broad-based, primarily from mining services in Latin America, business dining in the UK, and Education in Canada[5](index=5&type=chunk) [Operating Income and AOI Performance](index=2&type=section&id=Operating%20Income%20and%20AOI%20Performance) Operating Income and Adjusted Operating Income (AOI) grew significantly, reflecting margin expansion from revenue leverage and cost discipline Operating Income & AOI (Q2 FY24) | Metric | Q2 FY24 Value | YoY Change | Margin Change (bps) | | :--- | :--- | :--- | :--- | | Operating Income | $159 million | +27% | +59 | | Adjusted Operating Income (AOI) | $187 million | +29% | +69 | - Increased profitability was driven by leveraging higher revenue levels, supply chain strategies, and disciplined cost control, despite a $3 million negative impact from currency translation[6](index=6&type=chunk) [Segment Operating Income and AOI Breakdown](index=2&type=section&id=Segment%20Operating%20Income%20and%20AOI%20Breakdown) Both FSS segments delivered strong AOI growth, with International achieving record Q2 profitability, while Corporate expenses decreased Segment AOI (Q2 FY24) | Segment | Q2 FY24 AOI | AOI YoY Change | AOI Constant Currency Change | | :--- | :--- | :--- | :--- | | FSS United States | $168 million | +21% | +21% | | FSS International | $47 million | +21% | +29% | | Corporate | ($28 million) | +8% | +8% | | Total Company | $187 million | +27% | +29% | - FSS United States benefited from higher base business volume, new business maturity, operating cost management, and supply chain efficiencies[7](index=7&type=chunk) - FSS International achieved **record second-quarter profitability** from strong business growth and supply chain economics, despite the absence of AIM Services[8](index=8&type=chunk) - Corporate expenses were lower due to tight control of above-unit overhead costs[8](index=8&type=chunk) [Cash Flow and Capital Structure](index=3&type=section&id=CASH%20FLOW%20AND%20CAPITAL%20STRUCTURE) [Cash Flow from Operations](index=3&type=section&id=Cash%20Flow%20from%20Operations) The company generated a net cash inflow from operating activities and positive Free Cash Flow during the second quarter Cash Flow (Q2 FY24) | Metric | Q2 FY24 Value | | :--- | :--- | | Net cash provided by operating activities | $221 million | | Free Cash Flow | $140 million | - The company paid approximately **$25 million** in the quarter for remaining fees associated with the spin transaction completed on September 30, 2023[9](index=9&type=chunk) [Capital Structure Enhancements](index=3&type=section&id=Capital%20Structure%20Enhancements) The company proactively repriced its Term Loans, expecting annual interest savings, and maintained significant cash availability - Repriced **$730 million** 2028 Term Loan B and **$1.1 billion** 2030 Term Loan B at lower interest rates[9](index=9&type=chunk) - Expected annual interest expense savings of approximately **$10 million**[9](index=9&type=chunk) - Maintained over **$1.1 billion** in cash availability at quarter-end[9](index=9&type=chunk) [Dividend Declaration](index=3&type=section&id=DIVIDEND%20DECLARATION) The Board of Directors approved a quarterly dividend of 9.5 cents per share of common stock Dividend Details | Metric | Value | | :--- | :--- | | Quarterly Dividend | 9.5 cents/share | | Payable Date | May 28, 2024 | | Record Date | May 13, 2024 | [Business Update & Strategy](index=4&type=section&id=BUSINESS%20UPDATE) Aramark remains committed to profitable growth through innovation, operational efficiency, and its hospitality-focused culture - The company maintains an ongoing commitment to profitable growth, benefiting from increased base business volume, pricing actions, and net new business[11](index=11&type=chunk) - The strategy focuses on differentiating through innovative food and facility service offerings centered on customer experiences[11](index=11&type=chunk) - Management expects to scale revenue through supply chain efficiencies and disciplined cost management, alongside improving inflation trends[11](index=11&type=chunk) [Outlook](index=4&type=section&id=OUTLOOK) [Fiscal 2024 Full-Year Guidance](index=4&type=section&id=Fiscal%202024%20Full-Year%20Guidance) Aramark raised its full-year fiscal 2024 outlook for Organic Revenue growth and reiterated expectations for AOI and Adjusted EPS growth FY24 Outlook | Metric | Updated FY24 Outlook | Previous Outlook | | :--- | :--- | :--- | | Organic Revenue Growth | ~+9% | +7% to +9% | | AOI Growth | +17% to +20% | | | Adjusted EPS Growth | +30% to +35% | | | Leverage Ratio | ~3.5x | | - The updated outlook reflects confidence in global teams and the execution of strategies focused on creating significant stakeholder value[14](index=14&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) [Conference Call Details](index=5&type=section&id=CONFERENCE%20CALL%20SCHEDULED) Aramark scheduled a conference call to discuss its earnings and outlook, with access available via its investor relations website - A conference call was scheduled for **May 7, 2024, at 8:30 a.m. ET** to discuss earnings and outlook[15](index=15&type=chunk) - The call and related materials are available on the investor relations page of www.aramark.com[15](index=15&type=chunk) [About Aramark](index=5&type=section&id=About%20Aramark) Aramark is a global leader in food and facilities management, serving diverse clients across 15 countries - Aramark (NYSE: ARMK) provides food and facilities management services to leading institutions and companies in **15 countries**[16](index=16&type=chunk) - The company is recognized on FORTUNE's "World's Most Admired Companies" and other prestigious lists for diversity, responsibility, and equality[16](index=16&type=chunk) [Non-GAAP Financial Measures & Explanations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Explanations) [Definitions of Non-GAAP Measures](index=6&type=section&id=Selected%20Operational%20and%20Financial%20Metrics) This section defines key non-GAAP financial measures used to supplement GAAP metrics for evaluating operational performance - Definitions are provided for Adjusted Revenue (Organic), Adjusted Operating Income, Adjusted Net Income, Adjusted EPS, Covenant Adjusted EBITDA, and Free Cash Flow[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - These measures are used as supplemental indicators of operating profitability and cash operating costs for performance evaluation[24](index=24&type=chunk) - Non-GAAP metrics are not measurements of financial performance under GAAP and should not be considered substitutes for GAAP measures[24](index=24&type=chunk) [Explanatory Notes to Non-GAAP Schedules](index=7&type=section&id=Explanatory%20Notes%20to%20the%20Non-GAAP%20Schedules) This section details various adjustments made in non-GAAP reconciliations to ensure transparency in financial reporting - Adjustments include those for the spin-off of Uniform Services, amortization of acquisition-related intangible assets, and severance charges[26](index=26&type=chunk) - Further adjustments cover spin-off related charges, gains and losses impacting comparability, and the effect of debt repayments and repricings[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - Explanations also detail the tax impact of adjustments and the effect of currency translation for constant currency reporting[30](index=30&type=chunk)[31](index=31&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section serves as a legal disclaimer regarding forward-looking statements and associated risks and uncertainties - The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[32](index=32&type=chunk) - Key risk factors include economic conditions, client retention, competition, operating costs, currency risks, acquisitions, and high leverage[33](index=33&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to update them[33](index=33&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=9&type=section&id=ARAMARK%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The statements present financial performance for the three and six months ended March 29, 2024, compared to the prior year Three Months Ended (in thousands, except per share data) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Revenue | $4,199,913 | $3,916,156 | | Operating Income | $159,086 | $125,357 | | Net income from Continuing Operations attributable to Aramark stockholders | $53,449 | $14,249 | | Diluted EPS from Continuing Operations | $0.20 | $0.05 | Six Months Ended (in thousands, except per share data) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Revenue | $8,607,678 | $7,829,876 | | Operating Income | $326,036 | $277,042 | | Net income from Continuing Operations attributable to Aramark stockholders | $81,985 | $52,747 | | Diluted EPS from Continuing Operations | $0.31 | $0.20 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=ARAMARK%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheets provide a snapshot of the company's financial position as of March 29, 2024, compared to September 29, 2023 Balance Sheet Highlights (in thousands) | Metric (As of) | March 29, 2024 | September 29, 2023 | | :--- | :--- | :--- | | Total current assets | $3,328,421 | $5,220,027 | | Total Assets | $12,560,900 | $16,871,241 | | Total current liabilities | $2,658,102 | $5,029,967 | | Long-Term Borrowings | $5,879,086 | $5,098,662 | | Total Stockholders' Equity | $2,891,140 | $3,712,718 | - Significant changes in current assets and liabilities reflect the impact of the Uniform Services spin-off, with current assets of discontinued operations decreasing from **$620,931 thousand** to zero[41](index=41&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=ARAMARK%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The statements outline cash movements from operating, investing, and financing activities for the six months ended March 29, 2024 Cash Flow Summary (in thousands, for Six Months Ended) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities of Continuing Operations | ($435,797) | ($362,438) | | Net cash used in investing activities of Continuing Operations | ($289,821) | ($204,164) | | Net cash (used in) provided by financing activities of Continuing Operations | ($833,012) | $486,117 | | Decrease in cash and cash equivalents and restricted cash | ($1,558,226) | ($30,450) | | Cash and cash equivalents and restricted cash, end of period | $414,141 | $334,981 | [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Adjusted Consolidated Operating Income Margin Reconciliation](index=13&type=section&id=ADJUSTED%20CONSOLIDATED%20OPERATING%20INCOME%20MARGIN) This section reconciles reported Operating Income to Adjusted Operating Income by segment, highlighting various adjustments AOI Reconciliation (in thousands, for Q2 FY24) | Metric | FSS US | FSS International | Corporate | Total Company | | :--- | :--- | :--- | :--- | :--- | | Operating Income (as reported) | $144,365 | $42,576 | ($27,855) | $159,086 | | Adjusted Operating Income | $167,989 | $47,292 | ($27,855) | $187,426 | | Adjusted Operating Income (Constant Currency) | $167,966 | $50,340 | ($27,855) | $190,451 | | Adjusted Operating Income Growth | 21.21% | 21.43% | 7.56% | 27.15% | | Adjusted Operating Income Growth (Constant Currency) | 21.20% | 29.26% | 7.56% | 29.21% | - Key adjustments include amortization of acquisition-related intangible assets, severance and other charges, spin-off related charges, and gains, losses, and settlements impacting comparability[45](index=45&type=chunk) [Adjusted Net Income & Adjusted Earnings Per Share Reconciliation](index=15&type=section&id=ADJUSTED%20NET%20INCOME%20%26%20ADJUSTED%20EARNINGS%20PER%20SHARE) This reconciliation details adjustments from Net Income to Adjusted Net Income and Adjusted EPS for the second quarter Adjusted Net Income & EPS (in thousands, for Three Months Ended) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net Income from Continuing Operations Attributable to Aramark Stockholders (as reported) | $53,449 | $14,249 | | Adjusted Net Income | $76,599 | $25,772 | | Adjusted Net Income (Constant Currency), Net of Interest Adjustment | $80,298 | $44,299 | | Diluted EPS (as reported) | $0.20 | $0.05 | | Adjusted EPS | $0.29 | $0.10 | | Adjusted EPS (Constant Currency) | $0.30 | $0.17 | - Adjustments include amortization of acquisition-related intangible assets, severance, spin-off charges, gains/losses, debt repayment effects, and tax impacts[51](index=51&type=chunk) [Net Debt to Covenant Adjusted EBITDA Reconciliation](index=16&type=section&id=NET%20DEBT%20TO%20COVENANT%20ADJUSTED%20EBITDA) This reconciliation calculates the Net Debt to Covenant Adjusted EBITDA ratio for the trailing twelve months Leverage Ratio Calculation (in thousands, for Twelve Months Ended) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net Income from Continuing Operations Attributable to Aramark Stockholders | $476,914 | $246,317 | | Covenant Adjusted EBITDA | $1,284,945 | $1,463,650 | | Total Long-Term Borrowings | $5,921,485 | $8,017,097 | | Net Debt | $5,452,050 | $7,605,390 | | Net Debt/Covenant Adjusted EBITDA | 4.2x | 5.2x | - Covenant Adjusted EBITDA includes adjustments for interest, taxes, D&A, share-based compensation, and other specified items[56](index=56&type=chunk) - The twelve months ended March 29, 2024, has been restated to exclude the results of the Uniform segment for the entire period[56](index=56&type=chunk) [Free Cash Flow Reconciliation](index=17&type=section&id=FREE%20CASH%20FLOW) This section reconciles Net cash from operating activities to Free Cash Flow, illustrating cash available after capital expenditures Three Months Ended (in thousands) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities of Continuing Operations | $221,280 | $253,310 | | Net purchases of property and equipment and other | ($81,042) | ($77,038) | | Free Cash Flow | $140,238 | $176,272 | Six Months Ended (in thousands) | Metric | March 29, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities of Continuing Operations | ($435,797) | ($362,438) | | Net purchases of property and equipment and other | ($192,243) | ($162,595) | | Free Cash Flow | ($628,040) | ($525,033) | - Free Cash Flow represents cash flow available for distribution to security holders, calculated as net cash from operating activities less net capital expenditures[23](index=23&type=chunk)

Aramark (NYSE:ARMK) Q1 2024 Earnings Conference Call February 6, 2024 8:30 AM ET Company Participants Felise Kissell - SVP, IR & Corporate Development John Zillmer - CEO Jim Tarangelo - CFO Conference Call Participants Lizzie Dove - Goldman Sachs Harry Martin - Bernstein Andrew Steinerman - J.P. Morgan Shlomo Rosenbaum - Stifel Jasper Bibb - Truist Securities Heather Balsky - BOA Toni Kaplan - Morgan Stanley Neil Tyler - Redburn Atlantic Ashish Sabadra - RBC Capital Markets Josh Chan - UBS Andrew Wittmann ...

TOGETHER WE ARE Q1 Fiscal 2024 Earnings Results Forward ...