Aramark Reports Fourth Quarter And Full Year 2014 Results
PHILADELPHIA, Nov. 12, 2014 /PRNewswire/ -- Aramark (NYSE: ARMK), the $15 billion global provider of award-winning services in food, facilities management, and uniforms, today reported fourth quarter and full-year fiscal 2014 results with strong sales and profit growth and provided an initial outlook for fiscal 2015. Additionally, the Board of Directors has approved a 15% increase in the company's regular quarterly dividend.
FISCAL 2014 RESULTS
Sales were $14.8 billion, up from $13.9 billion in 2013, with organic growth of 5%. The organic calculation of growth includes a reduction for 2014's 53rd week of $258 million, or approximately 2%, and adjusts for adverse currency translation of $106 million. Adjusted operating income was $878 million, an increase of 12% over 2013. It is estimated that the extra week boosted total company and segment adjusted operating income growth rates by approximately 2%. Adjusted net income was $359 million or $1.51 per share, versus adjusted net income of $261 million or $1.24 per share in 2013. The extra week increased adjusted net income by an estimated 2% and adjusted earnings per share by an estimated $0.02. The diluted share count average for fiscal 2014 was 237.5 million shares, up from 209.4 million shares in fiscal 2013, primarily as a result of the company's initial public offering in December of 2013.
On an as reported basis, sales were $14.8 billion, operating income was $565 million, net income attributable to Aramark stockholders was $149 million and earnings per share were $0.63. A reconciliation of as reported financial measures to adjusted financial measures, including changes in currency translation rates is presented below. See "Non-GAAP Measures."
FISCAL 2014 SEGMENT RESULTS
Food and Support Services – North America
Sales in the Food and Support Services – North America segment were up $10.2 billion with organic growth of 5%. Adjusted operating income for the segment was up 10%. Adjusted operating incomes includes the benefit of the 53rd week. As reported sales were up 7% and operating income was up 24%. Sales growth in the Education and Sports, Leisure and Corrections sectors were particularly notable as new business wins came onboard throughout the year.
FOURTH QUARTER 2014 RESULTS
Sales were $3.9 billion versus $3.5 billion in the fourth quarter of 2013, with organic growth of 6%. Sales in the quarter included non-recurring facility project work with a major North America client, which increased growth by about 2%. North America organic growth of 7% was led by Education, Healthcare Hospitality and Corrections and was boosted by the non-recurring facility project. International organic growth was 6% while organic growth in Uniform and Career Apparel was 3%. Full report.