Aramark(ARMK) - 2019 Q3 - Quarterly Report

Revenue and Income - Revenue for the three months ended June 28, 2019, was $4,010,761, an increase of 1.0$3,971,606 for the same period in 2018[9]. - Revenue for the nine months ended June 28, 2019, was $12,276.1 million, reflecting a 3$11,876.0 million in the prior year[131]. - Net income attributable to Aramark stockholders for the three months ended June 28, 2019, was $82,955, compared to$72,577 for the same period in 2018, representing a 14.5% increase[9]. - Net income for the nine months ended June 28, 2019, was $363,052,000, a decrease of 7.5$392,872,000 for the same period in 2018[14]. - The company reported a comprehensive income of $53,877 for the three months ended June 28, 2019, compared to$37,345 for the same period in 2018, showing a 44.4% increase[13]. Operating Performance - Operating income for the nine months ended June 28, 2019, was $685,016, up from$538,530 for the same period in 2018, indicating a significant improvement in operational efficiency[11]. - Operating income for the three months ended June 28, 2019, was $188.8 million, a slight increase of 1$186.7 million in the same period of 2018[128]. - The cost of services provided for the nine months ended June 28, 2019, was $11,029,382, compared to$10,611,532 for the same period in 2018, reflecting a 3.9% increase[11]. Assets and Liabilities - Total current assets decreased to $2,642,125 as of June 28, 2019, from$2,901,425 as of September 28, 2018, reflecting an 8.9% decline[7]. - Total stockholders' equity increased to $3,285,922 as of June 28, 2019, from$3,029,558 as of September 28, 2018, representing an 8.4% growth[8]. - Total current liabilities amounted to $2,490,159,000, with accounts payable at$1,018,920,000 and accrued expenses at $1,440,332,000[104]. - The company’s total liabilities as of June 28, 2019, were reported at$10,443.5 million, with adjustments reflecting changes due to the adoption of ASC 606[62]. Cash Flow - Net cash provided by operating activities increased to $208,187,000, up 43.1$145,512,000 in the prior year[16]. - Net cash used in investing activities significantly decreased to $49,392,000 from$2,672,179,000, indicating a reduction in capital expenditures and acquisitions[16]. - Cash and cash equivalents increased to $220,055 as of June 28, 2019, from$215,025 as of September 28, 2018, indicating a slight growth[7]. Shareholder Returns - The company made payments of dividends totaling $81,305,000, compared to$77,317,000 in the previous year, representing a 5.7% increase[16]. - The Company completed a share repurchase of 1.6 million shares of its common stock for $50.0 million during the first quarter of fiscal 2019[76]. Segment Performance - The company operates in three reportable segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel[23]. - The FSS United States segment generated total revenue of$2,413.5 million for the three months ended June 28, 2019, contributing to a total of $7,490.8 million for the nine months[67]. - The FSS International segment reported revenue of$2,845.1 million for the nine months ended June 28, 2019, compared to $2,768.1 million in the same period of 2018, reflecting an increase of approximately 2.8$97.2 million and $105.4 million as of September 29, 2018, and June 28, 2019, respectively[60]. - The adoption of ASC 606 impacted revenue and operating income across all segments for the three and nine month periods of fiscal 2019[92]. Financial Position and Debt - Long-term borrowings remained stable at$7,198,918 as of June 28, 2019, compared to $7,213,077 as of September 28, 2018[8]. - The fair value of the company's debt as of June 28, 2019, was$7,379.8 million, compared to $7,303.1 million as of September 28, 2018, indicating a slight increase of 1.04$2.5 billion notional amount of outstanding interest rate swap agreements to manage interest rate risk[46]. Miscellaneous - The company expects a material increase in lease-related assets and liabilities due to the adoption of new lease accounting standards, although it does not anticipate a significant impact on income statements or cash flows[31]. - The company continues to evaluate the impact of various accounting standards updates, including those related to revenue recognition and credit losses, on its financial statements[31].