Aramark Reports Strong Third Quarter 2014 Results And Raises Full Year EPS Guidance

PHILADELPHIA, Aug. 11, 2014 /PRNewswire/ -- Aramark (NYSE: ARMK), the $14 billion global provider of award winning services in food, facilities management, and uniforms, today reported third quarter 2014 results with strong sales and profit growth and increased its earnings outlook for fiscal 2014.

KEY HIGHLIGHTS

  • Sales in the third quarter of $3.6 billion, with organic growth of 4%;  
  • Adjusted operating income in the third quarter of $192.4 million up 10%, operating income of $141.3 million;
  • Adjusted earnings per share in the third quarter of $0.32, earnings per share of $0.19;
  • Sales year-to-date of $10.9 billion, with organic growth of 5%;
  • Adjusted operating income year-to-date of $649.7 million up 11%, operating income of $419.3 million;
  • 2014 Adjusted Earnings per Share expectation increased to $1.45-$1.50.

"I am pleased to report another quarter of strong business results achieved within a challenging consumer and economic environment," said Eric J. Foss, President and Chief Executive Officer. "Our performance reflects solid execution against a sound strategy and was broad-based across the segments and geographies of our portfolio.  Based upon this strength and our overall business momentum, we are increasing our full-year 2014 earnings outlook." 

THIRD QUARTER RESULTS Sales were $3.6 billion versus $3.5 billion in the third quarter of 2013, with organic growth of 4%.  Adjusted operating income was $192.4 million versus $175.5 million in last year's period, an increase of 10%.                         

Adjusted net income for the quarter was $77.8 million or $0.32 per share, versus adjusted net income of $59.4 million or $0.28 per share in the third quarter of 2013.  The diluted share count in the third quarter was 243.7 million shares, up from 208.3 million shares in the same period last year, primarily as a result of the company's initial public offering this past December.          

On an as reported basis for the quarter, sales were $3.6 billion, operating income was $141.3 million, net income was $46.9 million and earnings per share were $0.19.  Changes in currency rates from the prior year reduced sales and operating income in the quarter.  A reconciliation of as reported financial measures to adjusted financial measures, including changes in currency translation rates is presented below.  See "Non-GAAP Measures." Full report.

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