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|ARAMARK Board of Directors Increases Cash Dividend by 10 Percent and Authorizes $200 Million in Share Repurchase|
PHILADELPHIA--(BUSINESS WIRE)--Nov. 2, 2004--ARAMARK Corporation (NYSE:RMK), a world leader in managed services, today announced that its Board of Directors has approved a 10 percent increase in ARAMARK's quarterly cash dividend to $0.055 per share ($0.22 annually) on its Class A and Class B common stock.
In addition, the Board approved the use of up to an additional $200 million to repurchase shares of ARAMARK's Class A or Class B Common Stock under the stock repurchase program.
Commenting on the Board's decisions, ARAMARK Chairman and Chief Executive Officer Joseph Neubauer said, "Today's actions clearly demonstrate the Board's confidence in the company's financial condition and the strength of ARAMARK's cash flow. Our strong cash-generating business model enables us not only to make the right investments in our operations, maintain a prudent level of debt and fund potential acquisitions, but also - as importantly - to return value to our shareholders through cash dividends and share repurchases."
Regarding the specifics of the dividend, it will be payable on December 9, 2004 to ARAMARK shareholders of record at the close of business November 12, 2004. Regarding the repurchase program, repurchases may be made in open market or privately negotiated transactions or otherwise, from time to time, depending on market conditions, and may be discontinued at any time.
ARAMARK Corporation is a world leader in providing award-winning food and facilities management services to health care institutions, universities and school districts, stadiums and arenas, international and domestic corporations, as well as providing uniform and career apparel. ARAMARK was ranked number one in its industry in the 2004 FORTUNE 500 survey and was also named one of "America's Most Admired Companies" by FORTUNE magazine in 2004, consistently ranking since 1998 as one of the top three most admired companies in its industry as evaluated by peers. Headquartered in Philadelphia, ARAMARK has approximately 200,000 employees serving clients in 19 countries.
Forward-looking statements speak only as of the date made. We undertake no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect the events or circumstances arising after the date as of which they were made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us.
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 our operations. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as "aim," "anticipate," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe" and other words and terms of similar meaning in conjunction with a discussion of future operating or financial performance.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.
Factors that might cause such a difference include: unfavorable economic conditions, ramifications of any future terrorist attacks or increased security alert levels; increased operating costs, including labor-related and energy costs; shortages of qualified personnel or increases in labor costs; costs and possible effects of union organizing activities; currency risks and other risks associated with international markets; risks associated with acquisitions, including acquisition integration costs; our ability to integrate and derive the expected benefits from recent acquisitions; competition; decline in attendance at client facilities; unpredictability of sales and expenses due to contract terms and terminations; the contract intensive nature of our business, which may lead to client disputes; high leverage; claims relating to the provision of food services; costs of compliance with governmental regulations and government investigations; liability associated with non-compliance with governmental regulations, including regulations pertaining to food service, the environment, Federal and state employment laws and wage and hour laws; import and export controls and customs laws; inability to retain current clients and renew existing client contracts; determination by customers to reduce outsourcing and use of preferred vendors; seasonality; and other risks that are set forth in the "Risk Factors," "Legal Proceedings" and "Management Discussion and Analysis of Results of Operations and Financial Condition" sections of and elsewhere in ARAMARK's SEC filings. For further information regarding risks and uncertainties associated with ARAMARK's business, please refer to the "Legal Proceedings," "Management's Discussion and Analysis of Results of Operations and Financial Condition", "Risk Factors" and other sections of ARAMARK's SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting ARAMARK's investor relations department via its web site www.aramark.com.
CONTACT: ARAMARK Corporation Media Relations: Michelle Davidson, 215-238-3523 Davidson-Michelle@aramark.com or Investor Relations: Bobbi Chaville, 215-238-3726 Chaville-Bobbi@aramark.com SOURCE: ARAMARK Corporation