Aramark(ARMK) - 2025 Q1 - Quarterly Report

Revenue and Income - Revenue for the three months ended December 27, 2024, was $4,552,086, an increase of 3.3$4,407,765 for the same period in 2023[16] - Net income attributable to Aramark stockholders for the three months ended December 27, 2024, was $105,619, significantly up from$28,536 in the prior year, representing a growth of 270.5%[16] - Operating income increased to $217,264 for the three months ended December 27, 2024, compared to$166,950 for the same period in 2023, reflecting a rise of 30.1%[16] - Earnings per share attributable to Aramark stockholders increased to $0.40 for the three months ended December 27, 2024, compared to$0.11 for the same period in 2023, a growth of 263.6%[16] - The company reported a comprehensive income of $76,699 for the three months ended December 27, 2024, compared to$6,353 for the same period in 2023, an increase of 1,109.5%[19] Cash and Liabilities - Total current liabilities decreased to $3,496,855 as of December 27, 2024, down from$4,214,210 as of September 27, 2024, a reduction of 17.0%[13] - Cash and cash equivalents at the end of the period were $484,149, down from$672,483 at the end of the previous quarter, a decrease of 28.0%[13] - Cash flows from operating activities resulted in a net cash used of $587,152 for the three months ended December 27, 2024, compared to$657,077 for the same period in 2023, a decrease of 10.6%[21] - The company incurred interest expenses of $75,804 for the three months ended December 27, 2024, down from$114,562 in the same period last year, a reduction of 33.8%[16] - As of December 27, 2024, long-term borrowings net totaled $4,976.9 million, an increase from$4,307.2 million as of September 27, 2024[61] Equity and Stockholder Information - Total stockholders' equity increased to $3,081,884 as of December 27, 2024, compared to$3,038,974 as of September 27, 2024, an increase of 1.4%[13] - The company declared dividends of $0.105 per share, totaling$29,858,000 for the period[23] - The Company had $1,158.1 million of availability under the senior secured revolving credit facility as of December 27, 2024[62] - The share repurchase program allows for the repurchase of up to$500.0 million of Aramark's outstanding common stock, with $0.9 million spent on repurchasing 24,743 shares during the three months ended December 27, 2024[83] Segment Performance - The company operates in two reportable segments: Food and Support Services United States and Food and Support Services International, with the U.S. being the largest market[27] - FSS United States segment revenue increased by approximately 2.7$3,301.0 million, driven by base business growth and contract price increases[119] - FSS International segment revenue rose by approximately 4.7% to $1,251.1 million, with growth attributed to volume increases and net new business, despite a 5.1$224.3 million of revenue that was included in deferred income at the beginning of the period[78] - The contingent consideration liability related to the Union Supply acquisition was adjusted to $11.1 million, expected to be fully paid out in Q2 of fiscal 2025[97] - Recent accounting standard updates are detailed in the condensed consolidated financial statements[151] Risk Management and Compliance - The company continues to manage operating costs and interest rate risks amid elevated market interest rates and inflationary pressures[105] - The maximum Consolidated Secured Debt Ratio is set at 5.125x, with non-compliance potentially leading to immediate repayment requirements[22] - The minimum Interest Coverage Ratio is established at 2.000x, which is necessary for incurring additional indebtedness and making restricted payments[22] - The company is engaged in informal settlement discussions regarding environmental law violations, which are not expected to materially affect financial conditions[157] Miscellaneous - The balance of accumulated other comprehensive loss increased from$(132,457,000) on September 27, 2024, to $(161,377,000) on December 27, 2024, indicating a decline in comprehensive income[38] - The company has not experienced any material changes in market risk associated with debt obligations from September 27, 2024, to December 27, 2024[152] - Management has concluded that disclosure controls and procedures are functioning effectively, providing reasonable assurance for timely reporting[153] - There have been no material changes to the risk factors disclosed in the previous annual report[159]