Aramark · NYSE:ARMK
Aramark — Q4 2024 Earnings Presentation
32 slides from Aramark's earnings presentation, Nov 11, 2024
Slide 1: Fiscal 2024 Earnings Results
Fiscal 2024 Earnings Results NOVEMBER 11, 2024 Fiscal 2024 Earnings Results
Slide 2: Forward-Looking Statements
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 di
Slide 3: Overview
Overview 1 2 3 4 Fiscal 2024 Strategic Actions New Share Fiscal 2025 Highlights Underway Repurchase Program Outlook Fiscal 2024 Earnings Results 3
Slide 4: Achieved Fiscal 2024 Financial Outlook Expectations
Achieved Fiscal 2024 Financial Outlook Expectations • Represented highest annual revenue in Global FSS history Revenue +8% • Driven by base business volume, pricing, and net new Organic Revenue +10% business 1 • Record AOI in both FSS U.S. and FSS International Operating Income +13% segments for any
Slide 5: Revenue and AOI Growth Across Segments
Revenue and AOI Growth Across Segments Revenue Adjusted Operating Income (AOI) $17,401 $882 $16,083 $743 $13,687 $512 $9,675 $120 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Organic Revenue Revenue ($) AOI ($) AOI Growth1 Growth (%) Broad based revenue growth FSS United States $12,577 7.3% $774 13.5% ac
Slide 6: Strong Free Cash Flow and Leverage Reduction
Strong Free Cash Flow and Leverage Reduction Free Cash Flow Leverage 7.4x $323 +121% +50 To Prior Year 5.3x Basis Points $168 3.9x $146 3.4x $120 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Net Debt to Covenant Adjusted EBITDA • Net Cash provided by Operating Activities was $727 million Dollars in milli
Slide 7: Continued Growth in Q4
Continued Growth in Q4 Organic Revenue Revenue ($) AOI ($) AOI Growth1 Growth (%) Record revenue in a fourth quarter for both FSS United States and International FSS United States $3,176 3.6% $241 5.1% segments FSS International $1,241 15.8% $58 15.5% Corporate n/a n/a ($27) 4.5% Increased AOI from
Slide 8: Introducing Hospitality IQ
Introducing Hospitality IQ Represents another step forward in providing innovative and Consumers: Elevating Experiences We empower consumers by delivering frictionless, intuitive, tailored practical solutions for clients with strong financial benefits experiences that easily adapt to rapidly changin
Slide 9: Global Supply Chain Expansion
Global Supply Chain Expansion • Launched in September 2024 • Enhances position as a leading global strategic procurement and supply chain services provider • Leverages existing supply chain and “exporting” the Avendra business model and service approach • Capabilities include geographic customizatio
Slide 10: Components of Net New Business
Components of Net New Business Aramark Annualized New Business Wins (in millions) Retention 95%+ Annualized Net New Business 4% to 5%+ (in millions) FY25+ Target FY25+ Target $1,440 95.8% 2 $1,187 95.6% 95.5% $1,178 2 95.2% $564 $582 $1,008 $503 $441 1 1 $351 93.2% FY21 FY22 FY23 FY24 FY21 FY22 FY23
Slide 11: Focused on driving shareholder value creation
Capital Structure Capabilities Board Authorization of New $500 Million Share Repurchase Program Demonstrates strong confidence in the business and the significant growth opportunities ahead Intend to begin opportunistic repurchases this fiscal year Expected to offset equity dilution and be accretive
Slide 12: Fiscal 2025 Outlook
Fiscal 2025 Outlook Currently anticipate full-year financial performance for fiscal 2025 as follows: ($ in millions, except EPS) FY24 FY25* Reference Point Year-Over-Year Growth1 Organic Revenue $17,401 +7.5% - +9.5% Adjusted Operating Income $882 +15% - +18% Adjusted EPS $1.55 +23% - +28% Leverage
Slide 13: Key Takeaways
Key Takeaways Growth-Oriented Model is working— Enhanced Financial Flexibility—strong driving margin levers and generating financial performance; growing, predictable substantial underlying performance cash flow; lower leverage ratio Expanding service capabilities—creating Commitment to Shareholder
Slide 14: Fiscal 2024 Earnings Results
Fiscal 2024 Earnings Results
Slide 15: Appendix
Appendix Fiscal 2024 Earnings Results 15
Slide 16: Modeling Assumptions
Modeling Assumptions FY25 Modeling Assumptions* Seasonality: • Net Interest Expense: ~$330M (~$325M 52-week year) • AOI Margin – “U-shaped” cadence • Adjusted Tax Rate: ~26% driven primarily by higher profitability in Q1 and Q4 related to seasonal peak • Share count: ~271M activity in Education sect
Slide 17: Revenue By Segment
Revenue By Segment * Beginning in fiscal 2024, the Company began reporting results for Healthcare Facility Services within "Healthcare," whereas the results were previously reported within "Facilities & Other." As such, the "Healthcare" and "Facilities & Other" Fiscal 2023 results were recast to ref
Slide 18: CapEx and Client Payments
CapEx and Client Payments Fiscal 2024 Earnings Results 18
Slide 19: Outstanding Debt Obligations at Fiscal Year-End 2024
Outstanding Debt Obligations at Fiscal Year-End 2024 Fiscal 2024 Earnings Results 19
Slide 20: Debt Maturity Profile at Fiscal Year-End 2024
Debt Maturity Profile at Fiscal Year-End 2024 Undrawn AR Securization Term Loan A Drawn Revolver Undrawn Revolver Term Loan B 5.00% Sr Notes 3.125% Euro Sr Notes $1,150 $1,342 $363 $30 $1,089 $839 $730 $552 $600 $501 2025 2026 2027 2028 2029 2030 Continue to remain strategic around extending balance
Slide 21: Non-GAAP Schedules
Non-GAAP Schedules Fiscal 2024 Earnings Results 21
Slide 22: Selected Operational and Financial Metrics
Selected Operational and Financial Metrics Adjusted Revenue (Organic) Notes due 2025 that were repaid in the current year. Adjusted Revenue (Organic) represents revenue, adjusted to eliminate the impact of currency translation. Adjusted EPS Adjusted EPS represents Adjusted Net Income divided by dilu
Slide 23: Selected Operational and Financial Metrics (continued)
Selected Operational and Financial Metrics (continued) Covenant Adjusted EBITDA Covenant Adjusted EBITDA represents net income attributable to Aramark We use Adjusted Revenue (Organic), Adjusted Operating Income (including on a stockholders adjusted for interest expense, net; provision for income ta
Slide 24: Revenue, AOI and AOI Margin Fiscal 2024 and Fiscal 2023
Revenue, AOI and AOI Margin Fiscal 2024 and Fiscal 2023 Fiscal 2024 Earnings Results 24
Slide 25: Revenue, AOI and AOI Margin Q4 Fiscal 2024 and Q4 Fiscal 2023
Revenue, AOI and AOI Margin Q4 Fiscal 2024 and Q4 Fiscal 2023 Fiscal 2024 Earnings Results 25
Slide 26: Revenue and AOI Fiscal 2022 and Fiscal 2021
Revenue and AOI Fiscal 2022 and Fiscal 2021 Fiscal 2024 Earnings Results 26
Slide 27: Adjusted EPS Fiscal 2024 and Fiscal 2023
Adjusted EPS Fiscal 2024 and Fiscal 2023 Fiscal 2024 Earnings Results 27
Slide 28: Free Cash Flow Fiscal 2024 and Fiscal 2023
Free Cash Flow Fiscal 2024 and Fiscal 2023 Fiscal 2024 Earnings Results 28
Slide 29: Free Cash Flow Fiscal 2022 and Fiscal 2021
Free Cash Flow Fiscal 2022 and Fiscal 2021 Fiscal 2024 Earnings Results 29
Slide 30: Net Debt to Covenant Adjusted EBITDA Fiscal 2024 and Fiscal 2023
Net Debt to Covenant Adjusted EBITDA Fiscal 2024 and Fiscal 2023 Fiscal 2024 Earnings Results 30
Slide 31: Net Debt to Covenant Adjusted EBITDA Fiscal 2022 and Fiscal 2021
Net Debt to Covenant Adjusted EBITDA Fiscal 2022 and Fiscal 2021 Fiscal 2024 Earnings Results 31
Slide 32: Fiscal 2024 Earnings Results
Fiscal 2024 Earnings Results