Aramark Reports Third Quarter 2017 Earnings

Aug. 9, 2017

PHILADELPHIA, Aug. 8, 2017 /PRNewswire/ -- Aramark (NYSE: ARMK) today reported third quarter fiscal results.

"Our operating momentum continues as we make consistent progress against our strategic priorities, which led to another quarter of solid performance," said Eric J. Foss, Chairman, President and CEO. "Our results reflect broad-based strength fueled by a constant focus on innovating across the entire portfolio in quality, premium offerings, health & wellness, and technology to create a differentiated experience for Aramark customers."

"Simultaneously, our productivity expansion remains on track and is enabling reinvestment in growth and capability," Foss continued. "Our performance positions us well to achieve our 2017 full-year outlook and to continue driving future shareholder value creation."  

Consolidated revenues were $3.6 billion in the quarter, an organic increase of 1% over the prior-year period.  The North America segment was positively impacted by growth in Sports, Leisure and Corrections, Business & Industry and Education.  The International segment delivered strong, broad-based organic growth, while Uniform sales were down modestly as expected.

The Company drove strong productivity improvements in North America and International base accounts, while continuing to reinvest in technology and capabilities.  International margins were also impacted by the timing of certain expenses, as well as the timing of the Easter holiday. Uniform income was impacted by installation costs related to the onboarding of new business.

On a GAAP basis, sales were $3.6 billion, operating income was $155 million, net income attributable to Aramark stockholders was $65 million and diluted earnings per share were $0.26.  This compares to the third quarter of 2016 where, on a GAAP basis, sales were $3.6 billion, operating income was $169 million, net income attributable to Aramark stockholders was $45 million and diluted earnings per share were $0.18.  Third quarter GAAP diluted earnings per share increased 44% 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 $100 million or $0.40 per share, versus adjusted net income of $84 million or $0.34 per share in the third quarter of 2016.  A stronger U.S. dollar decreased sales by approximately $33 million, but had no material impact on operating income or earnings per share.

Full report.