Financial Data and Key Metrics Changes - For fiscal 2025, the company reported revenue of $18.5 billion, a 6% increase compared to the prior year, with organic revenue growth of 7% [16][20] - Adjusted operating income for the fourth quarter was $289 million, growing 6% on a constant currency basis, while full-year adjusted operating income was $981 million, up 12% [17][18] - The adjusted EPS for the fourth quarter was $0.57, a 6% increase, and for the full year, it was $1.82, reflecting almost a 20% increase [20][21] - The consolidated leverage ratio improved to 3.25 times, the lowest level in nearly 20 years, down from 3.4 times a year ago [21][22] Business Line Data and Key Metrics Changes - The U.S. segment reported organic revenue growth of 14% in the fourth quarter, driven by new business and base business growth [8][16] - The international segment also experienced consistent double-digit organic revenue growth of 14% in the fourth quarter, with strong contributions from various geographic regions [12][19] - The healthcare segment reported its best performance in over two years, with significant new business wins contributing to growth [9][11] Market Data and Key Metrics Changes - The company achieved an industry-leading client retention rate of 96.3%, contributing to a net new business growth of 5.6% [6][7] - The collegiate sports business experienced double-digit revenue growth, with per capita rates up 14% year over year [9][10] - The supply chain GPO network added over $1 billion in new purchasing spend for the second consecutive year, indicating strong market demand [7][13] Company Strategy and Development Direction - The company is focused on delivering exceptional hospitality services and is committed to creating significant value for shareholders [25][24] - There is a strong emphasis on leveraging technology and operational efficiencies to drive profitability and growth [14][19] - The company plans to maintain a growth agenda focused on culture, team capabilities, and process improvements [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve net new business growth of 4-5% of prior year revenue, with retention levels exceeding 95% in fiscal 2026 and beyond [7][23] - The company anticipates organic revenue for fiscal 2026 to be between $19.45 billion and $19.85 billion, representing growth of 7%-9% [22][23] - Management acknowledged the impact of inflation, estimating it around 3% heading into the new fiscal year, while emphasizing effective management of the macro environment [14][21] Other Important Information - The company is expanding its enterprise-wide capabilities and has secured significant contracts, including a multi-year agreement with the University of Pennsylvania Health System [10][11] - The company is actively pursuing new opportunities in various sectors, including healthcare and corrections, indicating a robust pipeline for future growth [51][66] Q&A Session Summary Question: Can you delve into the shift in timing for new account openings? - Management indicated that the shift occurred across multiple businesses, including corrections and healthcare, and was client-driven rather than company-driven [30][31] Question: What is the implication of the Penn Medicine deal for future hospital groups? - Management believes there are significant new opportunities for self-op conversion in healthcare, with the Penn deal serving as a model for other institutions [51][52] Question: Can you discuss the organic revenue drivers for fiscal 2025 and 2026? - For fiscal 2025, base business growth was approximately 3.5%, with net new contributions around 1.5%, while for fiscal 2026, expected base business growth is 3-4% [56][57] Question: What are the factors behind the restructuring in the international business? - The restructuring is aimed at streamlining SG&A and optimizing operations, particularly in Europe and South America, despite the segment's healthy growth [75][76] Question: How does the company view retention rates moving forward? - Management aims to maintain a retention rate above 95%, with aspirations to achieve even higher levels, reflecting a commitment to continuous improvement [100][101]