PHILADELPHIA--(BUSINESS WIRE)--Aramark reported fourth quarter and full-year fiscal 2017 results.
“Our solid operating performance in the fourth quarter led to another very successful year of double digit adjusted EPS growth in 2017,” said Eric J. Foss, Chairman, President and CEO. “We continue to execute well against our strategy centered on driving quality and innovation to constantly elevate the customer experience.”
"The combination of robust cash flows and disciplined financial management has significantly strengthened Aramark’s balance sheet, paving the way for us to make the strategically sound and financially compelling acquisitions of Avendra and AmeriPride that we announced last month," Foss continued. "We’re entering 2018 with solid momentum as we continue to focus on growth and shareholder value creation, consistent with our long-term framework.”
FOURTH QUARTER RESULTS
Consolidated revenues were $3.7 billion in the quarter, an organic increase of 2% over the prior-year period. Revenue growth was negatively impacted by an estimated $25 million from natural disasters in the quarter. The North America segment was positively impacted by growth across all sectors. The International segment continued to deliver strong, broad-based organic growth, while Uniform sales were up modestly as expected.
Income was negatively impacted by an estimated $17 million from natural disasters in the quarter, with a disproportionate impact in the Uniforms segment related to an asset impairment in Puerto Rico. In North America and International base accounts, the Company drove strong productivity improvements, while continuing to reinvest in technology and capabilities. Uniform income was also impacted by installation costs related to the onboarding of new business.
FOURTH QUARTER SUMMARY
On a GAAP basis, sales were $3.7 billion, operating income was $218 million, net income attributable to Aramark stockholders was $113 million and diluted earnings per share were $0.45. This compares to the fourth quarter of 2016 where, on a GAAP basis, sales were $3.5 billion, operating income was $191 million, net income attributable to Aramark stockholders was $83 million and diluted earnings per share were $0.33. Fourth quarter GAAP diluted earnings per share increased 36% year-over-year. Tax expense benefited from the results of tax planning efforts and the adoption of new accounting standards related to share-based compensation.
Adjusted net income was $137 million or $0.54 per share, versus adjusted net income of $123 million or $0.49 per share in the fourth quarter of 2016. A weaker U.S. dollar increased sales by approximately $24 million, but had no material impact on operating income or earnings per share.
FISCAL 2017 SUMMARY
On a GAAP basis, sales were $14.6 billion, operating income was $808 million, net income attributable to Aramark stockholders was $374 million and diluted earnings per share were $1.49. This compares to fiscal 2016 where, on a GAAP basis, sales were $14.4 billion, operating income was $746 million, net income attributable to Aramark stockholders was $288 million and diluted earnings per share were $1.16. Full-year 2017 GAAP diluted earnings per share increased 28% year-over-year.
Adjusted net income was $489 million or $1.94 per share, versus adjusted net income of $425 million or $1.71 per share in fiscal 2016. A stronger U.S. dollar decreased sales by approximately $72 million, but had no material impact on operating income or earnings per share.
