Aramark · NYSE:ARMK
Aramark — Q3 2024 Earnings Presentation
23 slides from Aramark's earnings presentation, Aug 6, 2024
Slide 1: Q3 Fiscal 2024 Earnings Results
Q3 Fiscal 2024 Earnings Results AUGUST 6, 2024
Slide 2: Special Note About Forward-Looking Statements
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 stateme
Slide 3: Overview
Overview 1 2 3 Strong Q3 Continued execution of Fiscal 2024 performance growth strategies outlook Q3 Fiscal 2024 Earnings Results 3
Slide 4: Summary of Q3 Fiscal 2024 Results
Summary of Q3 Fiscal 2024 Results • Record revenue in a third quarter for FSS U.S. and for Revenue +8% any quarter in FSS International Organic Revenue +11% • Continued strong growth from base business volume, pricing, and net new business • Record profitability in a third quarter for FSS U.S. and 1
Slide 5: Strong Revenue Growth Across Segments
Strong Revenue Growth Across Segments Aramark $4,376 $116 $4,493 $4,053 +11% Record performance driven by base business Organic Growth Aramark volume, pricing, and net new business FSS United States FSS International $2,891 $3,144 $1 $3,145 +9% $1,162 $1,232 $116 $1,348 Organic Growth FSS United Sta
Slide 6: Portfolio Performance Drivers
Portfolio Performance Drivers FSS United States FSS International Education Business & Industry Facilities & Other Organic revenue growth across every country and region, particularly strong in Collegiate Hospitality Continued momentum across Increased scope of U.K., Canada, Spain, and Latin America
Slide 7: Global Supply Chain: Grow, Leverage, and Optimize
Global Supply Chain: Grow, Leverage, and Optimize 80,000 16,500 $19.5B USD 2,500+ 665 FTEs Global Locations Hospitality Customers Contracted Spend Contracted Supplier Focused on Procurement Agreements & Supply Chain Leveraging global scale to grow business and enhance capabilities in key geographies
Slide 8: Adjusted Operating Income and Margin Expansion
Adjusted Operating Income and Margin Expansion Aramark 4.41% 4.03% +38 bps AOI Margin Record performance led by leveraging higher revenue, operational cost discipline, and supply chain efficiencies $192.8 +21% $163.2 Q3 '23 Q3 '24 FSS United States FSS International 5.21% 4.82% 4.99% +22 bps 3.96% +
Slide 9: Quarterly Cadence of Free Cash Flow
Quarterly Cadence of Free Cash Flow $140 $62 FY ‘24 Q3 Results Q1 Q2 Q3 Q4 FY • Third quarter experienced a cash inflow versus a cash outflow in the prior year period • Current quarter improvement of almost $200 million due to higher cash from operations and favorable working capital • CapEx slightl
Slide 10: Ongoing Balance Sheet Optimization
Ongoing Balance Sheet Optimization Further Strengthening of Balance Sheet and Financial Flexibility Closed 5-year extension on Revolving Credit Facility and Term A Loans to 2029 after quarter-end Upsized Revolving Credit Facility to $1.4 billion, increasing cash availability by over $200 million Mor
Slide 11: Fiscal 2024 Outlook
Fiscal 2024 Outlook As a result of Aramark’s outperformance throughout fiscal 2024, the Company anticipates its full-year Outlook to be the following: Organic Revenue Growth At ~+10% AOI Growth At ~+20% Adjusted EPS Growth At ~+35% Leverage At ~3.5x * Outlook in Q2 2024 Earnings Release: Organic Rev
Slide 12: Slide 12
Slide 13: Appendix
Appendix Q3 Fiscal 2024 Earnings Results 13
Slide 14: FY24 Modeling Assumptions
Modeling Assumptions FY24 Modeling Assumptions • Net Interest Expense: ~$330M • Adjusted Tax Rate: ~26% • Share count: ~267M Seasonality AOI Margin “U- h ” m b h h b 1 k sector and the Sports & Entertainment and Destination businesses Q3 Fiscal 2024 Earnings Results 14
Slide 15: 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 Q3 Fiscal 2024 Earnings Results within "Facilities & Other." As such, the "Healthcare" and "Facilities & Other" Fiscal
Slide 16: CapEx and Client Payments
CapEx and Client Payments Q3 Fiscal 2024 Earnings Results * Table displayed in $ thousands 16
Slide 17: Selected Operational and Financial Metrics
Selected Operational and Financial Metrics Adjusted Revenue (Organic) Adjusted Revenue (Organic) represents revenue, adjusted to eliminate the impact of currency translation. Adjusted Operating Income Adjusted Operating Income represents operating income adjusted to eliminate the change in amortizat
Slide 18: Selected Operational and Financial Metrics (Continued)
Selected Operational and Financial Metrics (Continued) Free Cash Flow Free Cash Flow represents net cash (used in) provided by operating activities of continuing operations less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides us
Slide 19: Non-GAAP Schedules
Non-GAAP Schedules Q3 Fiscal 2024 Earnings Results 19
Slide 20: Adjusted Operating Income Margin
Adjusted Operating Income Margin Q3 Fiscal 2024 Earnings Results 20
Slide 21: Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted Earnings Per Share Q3 Fiscal 2024 Earnings Results 21
Slide 22: Free Cash Flow
Free Cash Flow Q3 Fiscal 2024 Earnings Results * Fiscal 2023 Free Cash Flow includes net cash provided by (used in) operating activities and net purchases of property and equipment and other on a continuing operations basis 22
Slide 23: aramark
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