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Calendar Shift
As previously disclosed, the company's fiscal calendar timing resulted in a 53 week year in the fourth quarter of 2014. As a result, the fourth quarter of 2015 was negatively impacted by approximately one week less of both sales and adjusted operating income vs. the prior year, or approximately 7% for the quarter and 2% for the year. The 53rd week is estimated to have increased 2014 fourth quarter and full-year adjusted EPS by
KEY HIGHLIGHTS
- 2015 sales of
$14.3 billion with organic growth of 2%. Organic sales were flat in Q4; - 2015 adjusted operating income rose to
$881 million , Q4 adjusted operating income rose to$239 million . 2015 and Q4 GAAP operating income of$628 million and$154 million , respectively; - 2015 and Q4 adjusted earnings per share of
$1.57 and$0.44 , respectively. 2015 and Q4 GAAP earnings per share of$0.96 and$0.23 , respectively; - Board of Directors increases regular quarterly dividend to
9.5 cents per share
"The power of our clear and focused strategy, combined with our relentless focus on operational excellence, delivered strong returns for our shareholders," said
FOURTH QUARTER SALES RESULTS
Q4 |
Q4 |
Growth |
Organic |
Estimated Impact |
|
FSS North America |
$2.5B |
$2.5B |
(11%) |
(2%) |
+2% |
FSS International |
0.7B |
0.7B |
(12%) |
3% |
na |
Uniform & Career Apparel |
0.4B |
0.4B |
(2%) |
5% |
na |
Total Company |
$3.5B |
$3.5B |
(10%) |
Flat |
+2% |
1 Organic Sales Growth adjusts for currency translation, acquisitions and divestitures, and the 53rd week in 2014, but does not adjust for the estimated calendar shift impact.
The company experienced solid retention rates, strong new client wins and underlying base business expansion in the quarter. As previously disclosed, a large client non-renewal along with non-recurring facilities revenue reported in the fourth quarter of 2014, which totaled about 5% of total company sales in the quarter, reduced North American organic sales. The Education business experienced a particularly strong quarter as new account wins on-boarded during the back-to-school season.
FOURTH QUARTER ADJUSTED OPERATING INCOME (AOI) RESULTS
Q4 AOI |
Q4 GAAP |
Operating |
AOI Growth 1 |
Estimated |
|
FSS North America |
$167M |
$131M |
10% |
9% |
5% |
FSS International |
39M |
12M |
(57%) |
10% |
na |
Uniform & Career Apparel |
48M |
46M |
(5%) |
(2%) |
na |
Corporate |
(15M) |
(35M) |
|||
Total Company |
$239M |
$154M |
6% |
8% |
3% |
1 AOI does not adjust for the estimated calendar shift impact or the 53rd week in 2014.
In the fourth quarter the company continued to drive solid productivity gains from food and labor initiatives, particularly in its
FOURTH QUARTER EARNINGS SUMMARY
Adjusted net income was
FISCAL 2015 RESULTS
Sales were
DIVIDEND INCREASE & DECLARATION
In recognition of the company's improving growth and profitability, the company's Board of Directors is increasing the regular quarterly dividend by 10%, to
LIQUIDITY & CAPITAL STRUCTURE
As of
2016 OUTLOOK
Based upon the current foreign exchange rates, currency translation is estimated to be a
INVESTOR DAY
The company will webcast an Investor Day on
CONFERENCE CALL SCHEDULED
The company has scheduled a conference call at
About
Selected Operational and Financial Metrics
Adjusted Sales (Organic)
Management believes that presentation of sales growth, adjusted to eliminate the effects of acquisitions and divestitures, the impact of currency translation and the estimated impact of the 53rd week, provides useful information to investors because it enhances comparability between the current year and prior year reporting periods. Elimination of the currency translation effect provides constant currency comparisons without the distortion of currency rate fluctuations.
Adjusted Operating Income
Adjusted operating income represents operating income adjusted to eliminate the change in amortization of acquisition-related customer relationship intangible assets and depreciation of property and equipment resulting from the going-private transaction in 2007 (the "Transaction"); the impact of the change in fair value related to the gasoline and diesel agreements; severance and other charges; share-based compensation; the effects of acquisitions and divestitures and the impact of currency translation and other items impacting comparability.
Adjusted EBITDA
Adjusted EBITDA represents Adjusted Operating Income further adjusted to exclude the impact of all other depreciation and amortization expense.
Adjusted Net Income
Adjusted Net Income represents net income attributable to
We use Adjusted Sales, Adjusted Operating Income, Adjusted EBITDA and Adjusted Net Income as supplemental measures of our operating profitability and to operate and control our cash operating costs to evaluate our performance. These financial metrics are not measurements of financial performance under generally accepted accounting principles in
Explanatory Notes to the Non-GAAP Schedules
Amortization of acquisition related customer relationship intangible assets and depreciation of property and equipment resulting from the Transaction - adjustments to eliminate the change in amortization and depreciation resulting from the purchase accounting applied to the
Share-based compensation - adjustments to eliminate compensation expense related to the company's issuances of share-based awards and the related employer payroll tax expense incurred by the company when employees exercise in the money stock options or vest in restricted stock awards. This adjustment excludes the expense related to the modification of missed year options in connection with the initial public offering which are included in the Initial public offering and related expenses adjustment noted below.
Effect of currency translation - adjustments to eliminate the impact that fluctuations in currency translation rates had on the comparative results by presenting the periods on a constant currency basis.
Severance and other charges - adjustments to eliminate severance expenses and other costs incurred in the applicable period such as costs incurred to start-up our Business Service Center in
Effects of acquisitions and divestitures - adjustments to eliminate the impact that acquisitions and divestitures had on the comparative periods by only presenting the acquired or divested businesses for the same periods of time in each period of the comparison.
Branding - adjustments to eliminate the expenses incurred in the period for the
Initial public offering and related expenses - adjustments to eliminate non-cash compensation expense (
Gains, losses and settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of our ongoing operational performance such as loss on divestitures (
Effects of refinancing on interest and other financing costs, net - adjustments to eliminate expenses associated with refinancing activities undertaken by the Company in the applicable period such as third party costs and non-cash charges for the write-offs of deferring financing costs.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views as to future events and financial performance with respect to, without limitation, conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as "outlook," "aim," "anticipate," "are confident," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words.
Forward-looking statements speak only as of the date made. All statements we make relating to our estimated and projected earnings, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Some of the factors that we believe could affect our results include without limitation: unfavorable economic conditions; natural disasters, global calamities, sports strikes and other adverse incidents; the failure to retain current clients, renew existing client contracts and obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; the inability to achieve cost savings through our cost reduction efforts; our expansion strategy; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; changes in, new interpretations of or changes in the enforcement of the government regulatory framework; currency risks and other risks associated with international operations, including Foreign Corrupt Practices Act,
Contact:
Media Inquiries
Cutler-Karen@aramark.com
Investor Inquiries
Bailey-Ian@aramark.com
ARAMARK AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||
(Unaudited) |
||||
(In Thousands, Except Per Share Amounts) |
||||
Three Months |
Three Months |
|||
Ended |
Ended |
|||
October 2, 2015 |
October 3, 2014 |
|||
Sales |
$ 3,545,952 |
$ 3,947,768 |
||
Costs and Expenses: |
||||
Cost of services provided |
3,189,230 |
3,573,882 |
||
Depreciation and amortization |
128,276 |
134,523 |
||
Selling and general corporate expenses |
74,142 |
94,112 |
||
3,391,648 |
3,802,517 |
|||
Operating income |
154,304 |
145,251 |
||
Interest and other financing costs, net |
71,588 |
78,273 |
||
Income before income taxes |
82,716 |
66,978 |
||
Provision for income taxes |
25,503 |
22,468 |
||
Net income |
57,213 |
44,510 |
||
Less: Net income attributable to noncontrolling interest |
348 |
105 |
||
Net income attributable to Aramark stockholders |
$ 56,865 |
$ 44,405 |
||
Earnings per share attributable to Aramark stockholders: |
||||
Basic |
$ 0.24 |
$ 0.19 |
||
Diluted |
$ 0.23 |
$ 0.18 |
||
Weighted Average Shares Outstanding: |
||||
Basic |
239,585 |
233,392 |
||
Diluted |
247,498 |
244,266 |
ARAMARK AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||
(Unaudited) |
||||
(In Thousands, Except Per Share Amounts) |
||||
Twelve Months |
Twelve Months |
|||
Ended |
Ended |
|||
October 2, 2015 |
October 3, 2014 |
|||
Sales |
$ 14,329,135 |
$ 14,832,913 |
||
Costs and Expenses: |
||||
Cost of services provided |
12,880,424 |
13,363,918 |
||
Depreciation and amortization |
504,033 |
521,581 |
||
Selling and general corporate expenses |
316,740 |
382,851 |
||
13,701,197 |
14,268,350 |
|||
Operating income |
627,938 |
564,563 |
||
Interest and other financing costs, net |
285,942 |
334,886 |
||
Income before income taxes |
341,996 |
229,677 |
||
Provision for income taxes |
105,020 |
80,218 |
||
Net income |
236,976 |
149,459 |
||
Less: Net income attributable to noncontrolling interest |
1,030 |
503 |
||
Net income attributable to Aramark stockholders |
$ 235,946 |
$ 148,956 |
||
Earnings per share attributable to Aramark stockholders: |
||||
Basic |
$ 0.99 |
$ 0.66 |
||
Diluted |
$ 0.96 |
$ 0.63 |
||
Weighted Average Shares Outstanding: |
||||
Basic |
237,616 |
225,866 |
||
Diluted |
246,616 |
237,451 |
ARAMARK AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(Unaudited) |
||||
(In Thousands) |
||||
October 2, 2015 |
October 3, 2014 |
|||
Assets |
||||
Current Assets: |
||||
Cash and cash equivalents |
$ 122,416 |
$ 111,690 |
||
Receivables |
1,444,574 |
1,582,431 |
||
Inventories |
575,263 |
553,815 |
||
Prepayments and other current assets |
236,870 |
217,040 |
||
Total current assets |
2,379,123 |
2,464,976 |
||
Property and Equipment, net |
959,345 |
997,331 |
||
Goodwill |
4,558,968 |
4,589,680 |
||
Other Intangible Assets |
1,111,980 |
1,252,741 |
||
Other Assets |
1,214,634 |
1,150,965 |
||
$ 10,224,050 |
$ 10,455,693 |
|||
Liabilities and Stockholders' Equity |
||||
Current Liabilities: |
||||
Current maturities of long-term borrowings |
$ 81,427 |
$ 89,805 |
||
Accounts payable |
850,040 |
986,240 |
||
Accrued expenses and other current liabilities |
1,249,521 |
1,302,828 |
||
Total current liabilities |
2,180,988 |
2,378,873 |
||
Long-Term Borrowings |
5,212,290 |
5,355,789 |
||
Other Liabilities |
937,311 |
993,118 |
||
Redeemable Noncontrolling Interest |
10,102 |
9,877 |
||
Total Stockholders' Equity |
1,883,359 |
1,718,036 |
||
$ 10,224,050 |
$ 10,455,693 |
ARAMARK AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
(Unaudited) |
||||
(In Thousands) |
||||
Twelve Months |
Twelve Months |
|||
Ended |
Ended |
|||
October 2, 2015 |
October 3, 2014 |
|||
Cash flows from operating activities: |
||||
Net income |
$ 236,976 |
149,459 |
||
Adjustments to reconcile net income to net cash provided by |
||||
operating activities: |
||||
Depreciation and amortization |
504,033 |
521,581 |
||
Income taxes deferred |
(4,108) |
37,372 |
||
Share-based compensation expense |
66,416 |
96,332 |
||
Changes in operating assets and liabilities |
(99,644) |
(427,711) |
||
Other operating activities |
(20,637) |
21,126 |
||
Net cash provided by operating activities |
683,036 |
398,159 |
||
Cash flows from investing activities: |
||||
Net purchases of property and equipment, |
||||
client contract investments and other |
(505,256) |
(516,700) |
||
Acquisitions, divestitures and other investing activities |
922 |
11,478 |
||
Net cash used in investing activities |
(504,334) |
(505,222) |
||
Cash flows from financing activities: |
||||
Net proceeds/payments of long-term borrowings |
(137,695) |
(407,788) |
||
Net change in funding under the Receivables Facility |
- |
50,000 |
||
Payments of dividends |
(81,898) |
(52,186) |
||
Proceeds from initial public offering, net |
- |
524,081 |
||
Proceeds from issuance of common stock |
39,946 |
4,408 |
||
Repurchase of common stock |
(50,176) |
(4,730) |
||
Other financing activities |
61,847 |
(6,030) |
||
Net cash provided by (used in) financing activities |
(167,976) |
107,755 |
||
Increase in cash and cash equivalents |
10,726 |
692 |
||
Cash and cash equivalents, beginning of period |
111,690 |
110,998 |
||
Cash and cash equivalents, end of period |
$ 122,416 |
$ 111,690 |
ARAMARK AND SUBSIDIARIES |
||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||
(Unaudited) |
||||||||||
(In thousands) |
||||||||||
Three Months Ended |
||||||||||
October 2, 2015 |
||||||||||
FSS North America |
FSS International |
Uniform |
Corporate |
Aramark and Subsidiaries |
||||||
Sales (as reported) |
$ 2,484,187 |
$ 677,888 |
$ 383,877 |
$ 3,545,952 |
||||||
Operating Income (as reported) |
$ 130,979 |
$ 11,955 |
$ 46,039 |
$ (34,669) |
$ 154,304 |
|||||
Operating Income Margin (as reported) |
5.3% |
1.8% |
12.0% |
4.4% |
||||||
Sales (as reported) |
$ 2,484,187 |
$ 677,888 |
$ 383,877 |
$ 3,545,952 |
||||||
Effect of Acquisitions and Divestitures |
(839) |
- |
- |
(839) |
||||||
Adjusted Sales (Organic) |
$ 2,483,348 |
$ 677,888 |
$ 383,877 |
$ 3,545,113 |
||||||
Adjusted Sales Growth (Organic) |
-2.0% |
3.0% |
5.1% |
-0.3% |
||||||
Operating Income (as reported) |
$ 130,979 |
$ 11,955 |
$ 46,039 |
$ (34,669) |
$ 154,304 |
|||||
Amortization of Acquisition-Related Customer |
27,514 |
110 |
(468) |
- |
27,156 |
|||||
Share-Based Compensation |
209 |
55 |
65 |
14,996 |
15,325 |
|||||
Severance and Other Charges |
13,666 |
26,348 |
2,131 |
1,400 |
43,545 |
|||||
Effect of Acquisitions and Divestitures |
10 |
- |
- |
- |
10 |
|||||
Gains, Losses and Settlements impacting comparability |
(5,132) |
397 |
- |
3,236 |
(1,499) |
|||||
Adjusted Operating Income |
$ 167,246 |
$ 38,865 |
$ 47,767 |
$ (15,037) |
$ 238,841 |
|||||
Adjusted Operating Income Growth |
8.9% |
10.0% |
-2.0% |
7.9% |
||||||
Adjusted Operating Income Margin |
6.7% |
5.7% |
12.4% |
6.7% |
||||||
Three Months Ended |
||||||||||
October 3, 2014 |
||||||||||
FSS North America |
FSS International |
Uniform |
Corporate |
Aramark and Subsidiaries |
||||||
Sales (as reported) |
$ 2,783,048 |
$ 771,097 |
$ 393,623 |
$ 3,947,768 |
||||||
Operating Income (as reported) |
$ 118,782 |
$ 27,659 |
$ 48,372 |
$ (49,562) |
$ 145,251 |
|||||
Operating Income Margin (as reported) |
4.3% |
3.6% |
12.3% |
3.7% |
||||||
Sales (as reported) |
$ 2,783,048 |
$ 771,097 |
$ 393,623 |
$ 3,947,768 |
||||||
Effect of Currency Translation |
(34,567) |
(95,783) |
- |
(130,350) |
||||||
Effect of Acquisitions and Divestitures |
- |
(1,977) |
- |
(1,977) |
||||||
Adjusted Sales |
$ 2,748,481 |
$ 673,337 |
$ 393,623 |
$ 3,815,441 |
||||||
Estimated Impact of 53rd Week |
(214,413) |
(15,125) |
(28,425) |
(257,963) |
||||||
Adjusted Sales (Organic) |
$ 2,534,068 |
$ 658,212 |
$ 365,198 |
$ 3,557,478 |
||||||
Operating Income (as reported) |
$ 118,782 |
$ 27,659 |
$ 48,372 |
$ (49,562) |
$ 145,251 |
|||||
Amortization of Acquisition-Related Customer |
29,954 |
1,796 |
(1,109) |
- |
30,641 |
|||||
Share-Based Compensation |
329 |
131 |
92 |
13,526 |
14,078 |
|||||
Effect of Currency Translation |
(2,816) |
(5,270) |
- |
- |
(8,086) |
|||||
Severance and Other Charges |
8,717 |
9,706 |
2,153 |
11,025 |
31,601 |
|||||
Effect of Acquisitions and Divestitures |
- |
(271) |
- |
- |
(271) |
|||||
Branding |
- |
- |
1,283 |
6,141 |
7,424 |
|||||
Gains, Losses and Settlements impacting comparability |
(1,443) |
1,566 |
(2,062) |
2,593 |
654 |
|||||
Adjusted Operating Income |
$ 153,523 |
$ 35,317 |
$ 48,729 |
$ (16,277) |
$ 221,292 |
|||||
Adjusted Operating Income Margin |
5.6% |
5.2% |
12.4% |
5.8% |
ARAMARK AND SUBSIDIARIES |
||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN |
||||||||||
(Unaudited) |
||||||||||
(In thousands) |
||||||||||
Fiscal Year Ended |
||||||||||
October 2, 2015 |
||||||||||
FSS North America |
FSS International |
Uniform |
Corporate |
Aramark and Subsidiaries |
||||||
Sales (as reported) |
$ 9,950,306 |
$ 2,858,231 |
$ 1,520,598 |
$ 14,329,135 |
||||||
Operating Income (as reported) |
$ 494,537 |
$ 95,315 |
$ 191,782 |
$ (153,696) |
$ 627,938 |
|||||
Operating Income Margin (as reported) |
5.0% |
3.3% |
12.6% |
4.4% |
||||||
Sales (as reported) |
$ 9,950,306 |
$ 2,858,231 |
$ 1,520,598 |
$ 14,329,135 |
||||||
Effect of Acquisitions and Divestitures |
(6,289) |
(1,701) |
(1,387) |
(9,377) |
||||||
Adjusted Sales (Organic) |
$ 9,944,017 |
$ 2,856,530 |
$ 1,519,211 |
$ 14,319,758 |
||||||
Adjusted Sales Growth (Organic) |
0.3% |
4.7% |
4.0% |
1.6% |
||||||
Operating Income (as reported) |
$ 494,537 |
$ 95,315 |
$ 191,782 |
$ (153,696) |
$ 627,938 |
|||||
Amortization of Acquisition-Related Customer |
110,574 |
1,877 |
(2,371) |
- |
110,080 |
|||||
Share-Based Compensation |
1,946 |
2,694 |
472 |
67,688 |
72,800 |
|||||
Severance and Other Charges |
11,878 |
32,618 |
2,289 |
19,760 |
66,545 |
|||||
Effect of Acquisitions and Divestitures |
(304) |
(145) |
28 |
- |
(421) |
|||||
Gains, Losses and Settlements impacting comparability |
(4,163) |
5,222 |
(2,132) |
4,866 |
3,793 |
|||||
Adjusted Operating Income |
$ 614,468 |
$ 137,581 |
$ 190,068 |
$ (61,382) |
$ 880,735 |
|||||
Adjusted Operating Income Growth |
0.9% |
14.6% |
6.7% |
3.4% |
||||||
Adjusted Operating Income Margin |
6.2% |
4.8% |
12.5% |
6.2% |
||||||
Fiscal Year Ended |
||||||||||
October 3, 2014 |
||||||||||
FSS North America |
FSS International |
Uniform |
Corporate |
Aramark and Subsidiaries |
||||||
Sales (as reported) |
$ 10,232,809 |
$ 3,111,250 |
$ 1,488,854 |
$ 14,832,913 |
||||||
Operating Income (as reported) |
$ 501,301 |
$ 106,193 |
$ 172,088 |
$ (215,019) |
$ 564,563 |
|||||
Operating Income Margin (as reported) |
4.9% |
3.4% |
11.6% |
3.8% |
||||||
Sales (as reported) |
$ 10,232,809 |
$ 3,111,250 |
$ 1,488,854 |
$ 14,832,913 |
||||||
Effect of Currency Translation |
(105,236) |
(365,329) |
- |
(470,565) |
||||||
Effect of Acquisitions and Divestitures |
- |
(3,774) |
- |
(3,774) |
||||||
Adjusted Sales |
$ 10,127,573 |
$ 2,742,147 |
$ 1,488,854 |
$ 14,358,574 |
||||||
Estimated Impact of 53rd Week |
(214,413) |
(15,125) |
(28,425) |
(257,963) |
||||||
Adjusted Sales (Organic) |
$ 9,913,160 |
$ 2,727,022 |
$ 1,460,429 |
$ 14,100,611 |
||||||
Operating Income (as reported) |
$ 501,301 |
$ 106,193 |
$ 172,088 |
$ (215,019) |
$ 564,563 |
|||||
Amortization of Acquisition-Related Customer |
117,174 |
6,719 |
5,612 |
- |
129,505 |
|||||
Share-Based Compensation |
1,003 |
298 |
440 |
45,781 |
47,522 |
|||||
Effect of Currency Translation |
(9,552) |
(18,403) |
- |
- |
(27,955) |
|||||
Severance and Other Charges |
(3,219) |
23,568 |
2,153 |
31,052 |
53,554 |
|||||
Effect of Acquisitions and Divestitures |
- |
(71) |
- |
- |
(71) |
|||||
Branding |
1,189 |
225 |
1,493 |
24,003 |
26,910 |
|||||
Initial Public Offering-Related Expenses, including share- |
- |
- |
- |
56,133 |
56,133 |
|||||
Gains, Losses and Settlements impacting comparability |
966 |
1,566 |
(3,608) |
2,987 |
1,911 |
|||||
Adjusted Operating Income |
$ 608,862 |
$ 120,095 |
$ 178,178 |
$ (55,063) |
$ 852,072 |
|||||
Adjusted Operating Income Margin |
6.0% |
4.4% |
12.0% |
5.9% |
ARAMARK AND SUBSIDIARIES |
|||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||
ADJUSTED NET INCOME, ADJUSTED OPERATING INCOME, ADJUSTED EBITDA & ADJUSTED EPS |
|||||||||
(Unaudited) |
|||||||||
(In thousands, except per share amounts) |
|||||||||
Three Months Ended |
Three Months Ended |
Twelve Months Ended |
Twelve Months Ended |
||||||
October 2, 2015 |
October 3, 2014 |
October 2, 2015 |
October 3, 2014 |
||||||
Net Income (as reported) |
$ 57,213 |
$ 44,510 |
$ 236,976 |
$ 149,459 |
|||||
Adjustment: |
|||||||||
Amortization of Acquisition-Related Customer Relationship Intangible Assets and Depreciation of Property and Equipment Resulting from the Transaction |
27,156 |
30,641 |
110,080 |
129,505 |
|||||
Share-Based Compensation |
15,325 |
14,078 |
72,800 |
47,522 |
|||||
Effect of Currency Translation |
- |
(8,086) |
- |
(27,955) |
|||||
Severance and Other Charges |
43,545 |
31,601 |
66,545 |
53,554 |
|||||
Effects of Acquisitions and Divestitures |
10 |
(271) |
(421) |
(71) |
|||||
Branding |
- |
7,424 |
- |
26,910 |
|||||
Initial Public Offering-Related Expenses, |
- |
- |
- |
56,133 |
|||||
Gains, Losses and Settlements impacting |
(1,499) |
654 |
3,793 |
1,911 |
|||||
Effects of Refinancings on Interest and Other Financing Costs, net |
- |
- |
- |
25,705 |
|||||
Tax Impact of Adjustments to Adjusted Net |
(32,181) |
(30,036) |
(102,485) |
(118,658) |
|||||
Adjusted Net Income |
$ 109,569 |
$ 90,515 |
$ 387,288 |
$ 344,015 |
|||||
Adjustment: |
|||||||||
Tax Impact of Adjustments to Adjusted Net |
32,181 |
30,036 |
102,485 |
92,953 |
|||||
Provision for Income Taxes |
25,503 |
22,468 |
105,020 |
80,218 |
|||||
Interest and Other Financing Costs, net |
71,588 |
78,273 |
285,942 |
334,886 |
|||||
Adjusted Operating Income |
$ 238,841 |
$ 221,292 |
$ 880,735 |
$ 852,072 |
|||||
Adjustment: |
|||||||||
Amortization of Acquisition-Related Customer Relationship Intangible Assets and Depreciation of Property and Equipment Resulting from the Transaction |
(27,156) |
(30,641) |
(110,080) |
(129,505) |
|||||
Depreciation and Amortization |
128,276 |
134,523 |
504,033 |
521,581 |
|||||
Adjusted EBITDA |
$ 339,961 |
$ 325,174 |
$ 1,274,688 |
$ 1,244,148 |
|||||
Adjusted Earnings Per Share |
|||||||||
Adjusted Net Income |
$ 109,569 |
$ 90,515 |
$ 387,288 |
$ 344,015 |
|||||
Net Income Attributable to Noncontrolling Interest |
(348) |
(105) |
(1,030) |
(503) |
|||||
Adjusted Net Income Attributable to Aramark |
$ 109,221 |
$ 90,410 |
$ 386,258 |
$ 343,512 |
|||||
Diluted Weighted Average Shares Outstanding |
247,498 |
244,266 |
246,616 |
237,451 |
|||||
$ 0.44 |
$ 0.37 |
$ 1.57 |
$ 1.45 |
ARAMARK AND SUBSIDIARIES |
||||
RECONCILIATION OF NON-GAAP MEASURES |
||||
DEBT TO ADJUSTED EBITDA |
||||
(Unaudited) |
||||
(In thousands) |
||||
Twelve Months Ended |
Twelve Months Ended |
|||
October 2, 2015 |
October 3, 2014 |
|||
Net Income (as reported) |
$ 236,976 |
$ 149,459 |
||
Adjustment: |
||||
Amortization of Acquisition-Related Customer Relationship Intangible Assets and Depreciation of Property and Equipment Resulting from the Transaction |
110,080 |
129,505 |
||
Share-Based Compensation |
72,800 |
47,522 |
||
Effect of Currency Translation |
- |
(27,955) |
||
Severance and Other Charges |
66,545 |
53,554 |
||
Effects of Acquisitions and Divestitures |
(421) |
(71) |
||
Branding |
- |
26,910 |
||
Initial Public Offering-Related Expenses, |
- |
56,133 |
||
Gains, Losses and Settlements impacting |
3,793 |
1,911 |
||
Effects of refinancings on Interest and Other Financing Costs, net |
- |
25,705 |
||
Tax Impact of Adjustments to Adjusted Net |
(102,485) |
(118,658) |
||
Adjusted Net Income |
$ 387,288 |
$ 344,015 |
||
Adjustment: |
||||
Tax Impact of Adjustments to Adjusted Net |
102,485 |
92,953 |
||
Provision for Income Taxes |
105,020 |
80,218 |
||
Interest and Other Financing Costs, net |
285,942 |
334,886 |
||
Adjusted Operating Income |
$ 880,735 |
$ 852,072 |
||
Adjustment: |
||||
Amortization of Acquisition-Related Customer Relationship Intangible Assets and Depreciation of Property and Equipment Resulting from the Transaction |
(110,080) |
(129,505) |
||
Depreciation and Amortization |
504,033 |
521,581 |
||
Adjusted EBITDA |
$ 1,274,688 |
$ 1,244,148 |
||
Debt to Adjusted EBITDA |
||||
Total Long-Term Borrowings |
$ 5,293,717 |
$ 5,445,594 |
||
Adjusted EBITDA |
$ 1,274,688 |
$ 1,244,148 |
||
Debt/Adjusted EBITDA |
4.2 |
4.4 |
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