Aramark Holdings Corp. reported strong first quarter 2014 results. First quarter 2014 sales were $3.8 billion versus $3.5 billion in the first quarter of 2013, with organic growth of 7 percent. Adjusted operating income was $259.6 million, versus $220.6 million in the first quarter of last year, an increase of 18 percent. In the first quarter of 2013, the company estimates that sales were reduced by approximately 2 percent and adjusted operating income was reduced by approximately 6 percent as a result of the NHL lockout and Hurricane Sandy, serving to boost the 2014 growth rates.
Adjusted net income for the quarter was $111.9 million or $0.52 per share, versus adjusted net income of $70.6 million or $0.34 per share in the first quarter of 2013. In the first quarter of 2013, the company estimates that adjusted net income was reduced by approximately $6.0 million, or $0.03 per share as a result of the NHL lockout and Hurricane Sandy.
On an as reported basis for the quarter, operating income was $157.2 million, net income was $44.9 million and earnings per share were $0.21. A reconciliation of adjusted financial measures to reported financial measures is presented below.
"The momentum in our business continues and we delivered strong first quarter results," said Eric J. Foss, president and chief executive officer, in a prepared statement. "We continue to win new business and achieve high client retention rates, which drove broad-based topline growth across our segments and geographies. At the same time, our productivity programs and repeatable business model are driving margin and profit improvement. The growth potential in our business is significant and we are confident in our ability to drive long-term shareholder value through the effective execution of our strategy."
Food and Support Services – North America
Sales in the food and support services – North America segment were $2.6 billion, up 7 percent on both a reported and an organic basis. Adjusted operating income for the segment was up 16 percent in the quarter (up 15 percent on a reported basis). In the first quarter of 2013, the NHL lockout and Hurricane Sandy were estimated to have reduced North America sales by about 2 percent and adjusted operating income by approximately 6 percent. Sales growth was particularly solid in both the education and sports, leisure and corrections sectors as a result of higher new business. Profit growth was driven by the company's various productivity initiatives.
