PHILADELPHIA, May 13, 2015 /PRNewswire/ -- Aramark (NYSE: ARMK), the $15 billion global provider of award-winning services in food, facilities management, and uniforms, today reported Second Quarter fiscal 2015 results with continued sales growth and margin expansion leading to 28% adjusted earnings per share growth.
Q2 HIGHLIGHTS
- Sales of $3.6 billion, 6% organic growth vs. prior year, approximately 2% attributable to calendar shift
- Segment organic sales increases: FSS NA 7%, FSS Intl 6%, Uniforms 4%;
- Adjusted operating income $213 million, 11% growth vs. prior year, approximately 4% attributable to calendar shift. U.S. GAAP operating income of $155 million;
- Adjusted Operating Margin Expanded 20 Basis Points;
- Adjusted Earnings per Share of $0.37, growth of 28% vs. prior year, $0.02 attributable to calendar shift. U.S. GAAP earnings per share of $0.24;
- 2015 Adjusted Earnings per Share outlook on constant-currency basis remains unchanged.
The calendar shift is estimated to have increased Total Company and FSS North America organic sales in the quarter (and is included in the table above) by 2% and 3%, respectively. The company's sales growth in the quarter was driven by a balance of new sales, solid retention rates and base business expansion. In FSS North America, sales growth was driven by nearly all sectors. FSS International organic growth was driven by improving European sales growth and nearly double-digit expansion in the Emerging Markets. Sales in the Uniform and Career Apparel segment accelerated in the quarter as capacity expansion investments were brought on-line.
Adjusted net income was $91 million or $0.37 per share, versus adjusted net income of $71 million or $0.29 per share in the second quarter of 2014. The diluted weighted average share count in the Second Quarter of fiscal 2015 was 246.0 million shares vs. 243.4 million in the prior year period. Adjusted net income and adjusted EPS both experienced double digit percentage increases vs. the prior year period.
On a U.S. GAAP basis, sales were $3.6 billion, operating income was $155 million, net income attributable to Aramark stockholders was $60 million and diluted earnings per share were $0.24. The company's calculations of organic sales growth, adjusted operating income and adjusted net income adjusts for changes in currency translation rates. The significant strengthening of the U.S. dollar versus the prior year period decreased sales by approximately $125 million, operating income by $7 million and net income by $5 million ($0.02 in earnings per share) in the quarter. View the full report here.
