PHILADELPHIA, May 11, 2016 /PRNewswire/ -- Aramark, a global leader in food, facilities management and uniforms, today reported second quarter results and reaffirmed its earnings outlook for fiscal 2016.
"We delivered another quarter of strong financial and operational performance," said Eric J. Foss, Chairman, President and CEO. "Despite a challenging global macro environment, the combination of our resilient business model and focused strategy is driving improved innovation and customer satisfaction. That improvement, coupled with targeted investments to enhance execution and efficiency adds confidence in our ability to achieve sustained profitability expansion and shareholder value creation going forward."
Second Quarter Sales Results
|
Q2 '16 |
Q2 '15 |
GAAP Change |
Organic |
|
|
FSS North America |
$2,520M |
$2,519M |
Flat |
1% |
|
FSS International |
664 |
700 |
(5%) |
1% |
|
Uniform & Career Apparel |
391 |
376 |
4% |
4% |
|
Total Company |
$3,575M |
$3,595M |
(1%) |
1% |
|
* May not total due to rounding. |
||||
Organic sales growth in the quarter was in-line with the company's expectations, and was adversely impacted by previously announced strategic portfolio exits and the timing of the earlier Easter holiday. These items are estimated to have reduced second quarter sales growth by approximately 100 basis points and 50 basis points, respectively. Underlying organic sales growth remains broad based, with notable gains in Education, Uniforms and Emerging Markets during the quarter.
Second Quarter Summary
Adjusted net income was $96 million or $0.39 per share, versus adjusted net income of $91 million or $0.37 per share in the second quarter of 2015. The stronger U.S. dollar versus the prior year period decreased sales by approximately $67 million, operating income by $4 million and earnings per share by$0.01 in the quarter.
During the quarter the company completed its acquisition of the Irish specialty food and merchandise retailing company, Avoca Handweavers Limited. The results from this entity will be excluded from organic growth and adjusted operating income calculations for its first year of consolidation. Accordingly, in the second quarter approximately $8 million of revenue and $0.75 million of operating loss was excluded from organic sales and adjusted operating income, respectively.
On a GAAP basis, sales were $3.6 billion, operating income was $172 million, net income attributable to Aramark stockholders was $66 million and diluted earnings per share were $0.27. This compares to the second quarter of 2015 where on a 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. Second quarter GAAP diluted earnings per share increased 13% year-over-year. Full report.
