ARAMARK Reports Record Sales for Fiscal 2004; Full-Year Sales Increased 8 Percent to $10.2 Billion; Fourth Quarter Sales Were $2.6 Billion.PHILADELPHIA Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. -- ARAMARK Aramark Corporation is a private company that is a professional services organization, providing food services, facilities management, hospitality services, uniforms and career apparel to large public and private institutions worldwide. Corporation (NYSE NYSE See: New York Stock Exchange :RMK RMK Remark (Weather METAR) RMK Rocky Mountain King (Polaris Snowmobiles) RMK Remarks RMK Resource Manager Kernel ), a world leader in managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality , today reported sales of $2.6 billion for its fourth quarter, an increase of 1 percent over the fourth quarter of 2003, which contained one extra week of operations. Organic sales growth for the quarter was 5 percent. Organic growth excludes the impact of acquisitions, divestitures, foreign currency fluctuations and the extra week in the 2003 fourth quarter and full year. For the fourth quarter, net income was $84.6 million compared to $105.3 million in the prior year quarter. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.44, which included a $0.03 per share charge associated with the management change that was announced in September September: see month. . This compares to $0.54 recorded in the 2003 fourth quarter. Net income and diluted earnings per share for the fourth quarter of 2003 include insurance proceeds related to a World Trade Center settlement and a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the Company's periodicals distribution investment. After adjusting for these items, net income was $92.2 million and diluted earnings per share were $0.47 for the 2003 fourth quarter, which included the extra week. The Company estimates the extra week added approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 8 percent to sales and income for the quarter. Chief Executive Officer's Comments "I am very proud that we have achieved two important goals in 2004: exceeding $10 billion in sales and doubling our organic sales growth to 6 percent. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have clear that our Mission One initiative is working," said Joseph Neubauer Neubauer is a surname, and may refer to:
A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization The right or permission to use a system resource; the process of granting access. See access control. by an additional $200 million. I am pleased with our performance, and I look forward to our continued success in 2005." Full Year Results ARAMARK reported sales of $10.2 billion for fiscal 2004, up 8 percent on an as-reported basis and 6 percent organically from 2003. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the full year was $263.1 million compared to $265.4 million in the prior year period, which included an extra week of operations. Diluted earnings per share were $1.36 compared to the $1.34 per share reported last year. Adjusting both years for the items described above, and the previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). 2003 third quarter non-operating items, earnings per share increased 10% in 2004. Food and Support Services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services In ARAMARK's Food and Support Services - U.S. segment, fourth quarter sales of $1.8 billion were down 2 percent due to the extra week in the same period last year but up 6 percent organically. Segment operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $136 million was about equal to the prior year after eliminating the $32 million of insurance proceeds from the reported $167 million in 2003, which had one extra week of operations. Sales for the Food and Support Services - International segment of $463 million were up 25 percent from the 2003 fourth quarter. Organic sales growth for the segment was 3 percent. The impact of changes in currency translation rates increased reported sales by approximately 10 percentage points. Operating income in this segment decreased to $8 million as increased operating income in most international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. was more than offset by a decrease in U.K. results. Uniform and Career Apparel In ARAMARK's Uniform and Career Apparel - Rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. segment, sales of $264 million for the fourth quarter were down 3 percent on an as-reported basis and up 4 percent organically. This was the fourth consecutive quarter of improved organic growth and the highest since 2001. Operating income of $31.1 million was about equal to the prior year period, which had one extra week of operations. In ARAMARK's Direct Marketing segment, fourth quarter sales decreased 12 percent to $100 million from the prior year's quarter. Organic growth was negative 3 percent. Operating income declined to $1.5 million, due principally to lower sales and profits at Galls. 2005 Financial Guidance Full year and first quarter guidance are before consideration of the impact of the National Hockey League National Hockey League (NHL) Organization of professional North American ice-hockey teams. The league was formed in 1917 by five Canadian teams; the first U.S. team, the Boston Bruins, was added in 1924. It today consists of 30 teams in two conferences and six divisions. (NHL NHL Non-Hodgkin's lymphoma, see there ) lockout lockout, intentional closing up of a company, factory, or shop by an employer to prevent employees from working during a strike or labor dispute. The term lockout . ARAMARK anticipates full year sales of between $10.7 billion and $11.0 billion, driven by organic growth in the range of 5 to 7 percent. ARAMARK is targeting 5 to 7 percent organic growth in its worldwide Food and Support Services business and 2 to 4 percent organic growth in its combined uniforms business. Diluted earnings per share for 2005 are expected to be in the range of $1.50 to $1.60. First quarter 2005 sales are anticipated to be between $2.6 billion and $2.7 billion and diluted earnings per share to be between $0.36 and $0.38. It is estimated that a continuation continuation - continuation passing style of the NHL lockout The NHL lockout may refer to any of the two lockouts in the history of the National Hockey League:
Conference Call and Related Financial Information In conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with its fourth quarter and full year earnings release, ARAMARK will discuss its results in a conference call broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on November November: see month. 10, 2004 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties are invited to log on to www.aramark.com to listen to this webcast. A recording of the conference call will be available on that website. The balance sheet, income statement and other financial information related to the fourth fiscal quarter of 2004 are attached to this press release and can also be found on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of ARAMARK's website at www.aramark.com. Certain previously undisclosed financial information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a completed fiscal period, as well as reconciliations of non-GAAP financial measures that are disclosed on the conference call will also be available on the Investor Relations section of ARAMARK's website. About ARAMARK ARAMARK Corporation is a world leader in providing award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" food and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. services to health care institutions, universities and school districts, stadiums and arenas, international and domestic corporations, as well as providing uniform and career apparel. ARAMARK was ranked number one in its industry in the 2004 FORTUNE 500 survey and was also named one of "America's Most Admired Companies A yearly publication by Fortune Magazine, America's Most Admired Companies consists of corporations that are highly esteemed by the likes of Business Executives, Directors, and Analysts. A survey is taken of close to 3300 professionals who give their opinions on the companies. " by FORTUNE magazine in 2004, consistently ranking since 1998 as one of the top three most admired ad·mire v. ad·mired, ad·mir·ing, ad·mires v.tr. 1. To regard with pleasure, wonder, and approval. 2. To have a high opinion of; esteem or respect. 3. companies in its industry as evaluated by peers. Headquartered in Philadelphia, ARAMARK has approximately 200,000 employees serving clients in 19 countries. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Forward-looking statements speak only as of the date made. We undertake no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect the events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or arising after the date as of which they were made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us. This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that reflect our current views as to future events and financial performance with respect to our operations. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as "aim," "anticipate," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe" and other words and terms of similar meaning in conjunction with a discussion of future operating or financial performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the forward-looking statements. Factors that might cause such a difference include: unfavorable economic conditions, ramifications ramifications npl → Auswirkungen pl of any future terrorist attacks or increased security alert levels; increased operating costs operating costs npl → gastos mpl operacionales , including labor-related and energy costs; shortages of qualified personnel or increases in labor costs; costs and possible effects of union organizing For other uses, see Organising model and Union organizer. Organizing is the act of rearranging following one or more s. It can also be seen as the opposite of messing up. One organized opposite could be disordered, since ordered is almost synonymous. activities; currency risks and other risks associated with international markets; risks associated with acquisitions, including acquisition integration costs; our ability to integrate and derive de·rive v. 1. To obtain or receive from a source. 2. To produce or obtain a chemical compound from another substance by chemical reaction. the expected benefits from recent acquisitions; competition; decline in attendance at client facilities; unpredictability of sales and expenses due to contract terms and terminations; the contract intensive nature of our business, which may lead to client disputes; high leverage; claims relating to the provision of food services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and ; costs of compliance with governmental regulations and government investigations; liability associated with non-compliance with governmental regulations, including regulations pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to food service, the environment, Federal and state employment laws and wage and hour laws; import and export controls and customs laws; inability to retain current clients and renew existing client contracts; determination by customers to reduce outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and use of preferred vendors; seasonality; and other risks that are set forth in the "Risk Factors," "Legal Proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. " and "Management Discussion and Analysis of Results of Operations and Financial Condition" sections of and elsewhere in ARAMARK's SEC filings. For further information regarding risks and uncertainties associated with ARAMARK's business, please refer to the "Legal Proceedings," "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Results of Operations and Financial Condition", "Risk Factors" and other sections of ARAMARK's SEC filings, including, but not limited to, our annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and quarterly reports on Form 10-Q Form 10-Q See 10-Q. , copies of which may be obtained by contacting ARAMARK's investor relations department via its web site www.aramark.com.
ARAMARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended
----------------------
October 1, October 3,
2004 2003(1)
---------- ----------
Sales $2,620,930 $2,588,015
---------- ----------
Costs and Expenses:
Cost of services provided (2) 2,342,421 2,278,083
Depreciation and amortization 79,887 70,345
Selling and general corporate
expenses (3) 37,664 29,165
Other expense (4) - 10,700
---------- ----------
2,459,972 2,388,293
---------- ----------
Operating income 160,958 199,722
Interest and other financing costs, net 29,919 31,473
---------- ----------
Income before income taxes 131,039 168,249
Provision for income taxes 46,401 62,958
---------- ----------
Net income $84,638 $105,291
========== ==========
Earnings Per Share:
Basic $0.45 $0.56
Diluted $0.44 $0.54
Weighted Average Shares Outstanding:
Basic 187,805 188,743
Diluted 191,369 194,598
(1) - The fiscal 2003 fourth quarter was a 14-week period, as fiscal
2003 was a 53-week year. The fourth quarter of fiscal 2004 is a
13-week period.
(2) - The fiscal 2003 fourth quarter includes approximately $32.0
million ($19.7 million net of tax) of business interruption proceeds
from the final settlement of the Company's September 11, 2001 claim.
(3) - The fiscal 2004 fourth quarter includes a $10.0 million ($6.1
million net of tax) charge for a management change.
(4) - During the fourth quarter of fiscal 2003, ARAMARK reached
agreement for the sale of its 15% interest in a periodicals
distribution business to the majority shareholder, and wrote down this
investment to the expected recoverable amount. The resulting pre-tax
charge of $10.7 million ($6.6 million, net of tax) is included in
"Other expense."
ARAMARK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, Except Per Share Amounts)
Fiscal Year Ended
------------------------
October 1, October 3,
2004 2003(1)
----------- -----------
Sales $10,192,240 $9,447,815
----------- -----------
Costs and Expenses:
Cost of services provided (2) 9,223,788 8,506,465
Depreciation and amortization 297,993 262,944
Selling and general corporate
expenses (3) 132,881 115,684
Other expense (4) - 10,700
----------- -----------
9,654,662 8,895,793
----------- -----------
Operating income 537,578 552,022
Interest and other financing costs, net 122,362 142,469
----------- -----------
Income from continuing operations
before income taxes 415,216 409,553
Provision for income taxes 152,112 144,185
----------- -----------
Income from continuing operations 263,104 265,368
Income from discontinued operations, net (5) - 35,724
----------- -----------
Net income $263,104 $301,092
=========== ===========
Earnings Per Share - Basic:
Income from continuing operations $1.39 $1.39
Net income $1.39 $1.58
Earnings Per Share - Diluted:
Income from continuing operations $1.36 $1.34
Net income $1.36 $1.52
Weighted Average Shares Outstanding:
Basic 188,799 190,723
Diluted 193,454 197,505
(1) - Fiscal 2003 was a 53-week year. Fiscal 2004 is a 52-week year.
(2) - The fiscal 2003 fourth quarter includes approximately $32.0
million ($19.7 million net of tax) of business interruption proceeds
from the final settlement of the Company's September 11, 2001 claim.
(3) - The fiscal 2004 fourth quarter includes a $10.0 million ($6.1
million net of tax) charge for a management change.
(4) - During the fourth quarter of fiscal 2003, ARAMARK reached
agreement for the sale of its 15% interest in a periodicals
distribution business to the majority shareholder, and wrote down this
investment to the expected recoverable amount. The resulting pre-tax
charge of $10.7 million ($6.6 million, net of tax) is included in
"Other expense."
(5) - The fiscal 2003 condensed consolidated statement of income has
been presented to reflect ARAMARK Educational Resources as a
discontinued operation.
ARAMARK CORPORATION AND SUBSIDIARIES
SELECTED CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
(In Thousands)
October 1, October 3,
2004 2003
---------- ----------
Assets
--------------------------------------------
Current Assets $1,340,015 $1,226,592
Property and Equipment, net 1,214,382 1,184,320
Goodwill 1,589,144 1,422,639
Other Assets 678,032 634,026
---------- ----------
$4,821,573 $4,467,577
========== ==========
Liabilities and Shareholders' Equity
--------------------------------------------
Current Liabilities (1) $1,454,930 $1,415,789
Long-Term Borrowings 1,843,200 1,711,705
Other Liabilities 373,788 301,111
Total Shareholders' Equity 1,149,655 1,038,972
---------- ----------
$4,821,573 $4,467,577
========== ==========
(1) - Includes $25.5 million and $18.2 million of current maturities
of long-term borrowings as of October 1, 2004 and October 3, 2003,
respectively.
ARAMARK CORPORATION AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW DATA
(Unaudited)
(In Thousands)
Fiscal Year Ended
--------------------
October 1, October 3,
2004 2003(1)
--------- ---------
Cash flows from operating activities from
continuing operations:
Income from continuing operations $263,104 $265,368
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 297,993 262,944
Income taxes deferred 32,749 29,675
Loss on investment - 10,700
Changes in noncash working capital (43,068) 59,766
Other operating activities (33,212) (22,192)
--------- ---------
Net cash provided by operating activities from
continuing operations 517,566 606,261
--------- ---------
Cash flows from investing activities from
continuing operations:
Net purchases of property and equipment and
client contract investments (288,260) (270,423)
Proceeds from sale of investment 8,500 -
Divestiture of certain businesses - 248,076
Acquisitions and other investing activities (159,680) (246,868)
--------- ---------
Net cash used in investing activities from
continuing operations (439,440) (269,215)
--------- ---------
Cash flows from financing activities from
continuing operations:
Net proceeds (payments) of long-term
borrowings 97,742 (150,706)
Dividend payments (37,213) -
Proceeds from issuance of common stock 39,748 21,280
Repurchase of stock and other financing
activities (177,559) (209,439)
--------- ---------
Net cash used in financing activities from
continuing operations (77,282) (338,865)
--------- ---------
Net cash provided by discontinued operations (1) - 14,722
--------- ---------
Increase in cash and cash equivalents $844 $12,903
========= =========
(1) - The fiscal 2003 statement of cash flows has been presented to
reflect ARAMARK Educational Resources as a discontinued operation.
ARAMARK CORPORATION AND SUBSIDIARIES
SALES AND OPERATING INCOME BY SEGMENT
SUPPLEMENTAL DATA
(Unaudited)
(In Thousands)
Three Months Ended
----------------------
October 1, October 3,
2004 2003(1)
---------- ----------
Sales
---------------------------------------------
Food and Support Services - United States $1,794,415 $1,832,541
Food and Support Services - International 462,863 371,570
Uniform and Career Apparel - Rental 264,064 271,062
Uniform and Career Apparel - Direct Marketing 99,588 112,842
---------- ----------
$2,620,930 $2,588,015
========== ==========
Operating Income
---------------------------------------------
Food and Support Services - United States (2) $135,925 $167,047
Food and Support Services - International 7,933 12,948
Uniform and Career Apparel - Rental 31,111 31,021
Uniform and Career Apparel - Direct Marketing 1,477 7,584
Corporate (3) (15,488) (8,178)
Other Expense (4) - (10,700)
---------- ----------
$160,958 $199,722
========== ==========
(1) - The fiscal 2003 fourth quarter was a 14-week period, as fiscal
2003 was a 53-week year. The fourth quarter of fiscal 2004 is a
13-week period.
(2) - The fiscal 2003 fourth quarter includes approximately $32.0
million ($19.7 million net of tax) of business interruption proceeds
from the final settlement of the Company's September 11, 2001 claim.
(3) - The fiscal 2004 fourth quarter includes a $10.0 million ($6.1
million net of tax) charge for a management change.
(4) - During the fourth quarter of fiscal 2003, ARAMARK reached
agreement for the sale of its 15% interest in a periodicals
distribution business to the majority shareholder, and wrote down this
investment to the expected recoverable amount. The resulting pre-tax
charge of $10.7 million ($6.6 million, net of tax) is included in
"Other expense."
ARAMARK CORPORATION AND SUBSIDIARIES
SALES AND OPERATING INCOME BY SEGMENT
SUPPLEMENTAL DATA
(Unaudited)
(In Thousands)
Fiscal Year Ended
------------------------
October 1, October 3,
2004 2003(1)
------------ -----------
Sales
---------------------------------------------
Food and Support Services - United States $6,882,741 $6,545,395
Food and Support Services - International 1,826,975 1,423,825
Uniform and Career Apparel - Rental 1,042,544 1,030,343
Uniform and Career Apparel - Direct Marketing 439,980 448,252
----------- ----------
$10,192,240 $9,447,815
=========== ==========
Operating Income
---------------------------------------------
Food and Support Services - United States (2) $376,248 $394,253
Food and Support Services - International 66,239 60,200
Uniform and Career Apparel - Rental 115,797 111,889
Uniform and Career Apparel - Direct Marketing 20,284 26,416
Corporate (3) (40,990) (30,036)
Other Expense (4) - (10,700)
----------- ----------
$537,578 $552,022
=========== ==========
(1) - Fiscal 2003 was a 53-week year. Fiscal 2004 is a 52-week year.
(2) - The fiscal 2003 fourth quarter includes approximately $32.0
million ($19.7 million net of tax) of business interruption proceeds
from the final settlement of the Company's September 11, 2001 claim.
(3) - The fiscal 2004 fourth quarter includes a $10.0 million ($6.1
million net of tax) charge for a management change.
(4) - During the fourth quarter of fiscal 2003, ARAMARK reached
agreement for the sale of its 15% interest in a periodicals
distribution business to the majority shareholder, and wrote down this
investment to the expected recoverable amount. The resulting pre-tax
charge of $10.7 million ($6.6 million, net of tax) is included in
"Other expense."
ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
ORGANIC GROWTH
(Unaudited)
(In thousands)
----------------------------------------------------------------------
Management believes that presentation of organic sales growth in the
fiscal 2004 and 2003 fourth quarter and fiscal year periods, as
adjusted to eliminate the effects of acquisitions, divestitures, the
effect of the 53rd week in fiscal 2003 and the impact of currency
translation, provides useful information to investors because it
enhances comparability between the current year and prior year
reporting periods. Elimination of the currency translation effect
provides constant currency comparisons without the distortion of
currency rate fluctuations. The 53rd week adjustment is made to
enhance comparability since fiscal 2003 was a 53 week year, including
one week more than a normal fiscal period. The consolidated full year
2004 sales have also been adjusted to eliminate the lack of service
day comparability in the Education sector which resulted from fiscal
2004 starting one week later than a normal fiscal year.
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
---------------------- -----------------------
Oct. 1, Oct. 3, % Oct. 1, Oct. 3, %
2004 2003 Change 2004 2003 Change
--------------- ----------- ------- ------- ---------- -------- ------
ARAMARK
Corporation
Consolidated
Sales (as
reported) $2,620,930 $2,588,015 1% $10,192,240 $9,447,815 8%
Estimated
Effect of
53rd Week - (187,467) 30,964 (187,467)
Effect of
Currency
Translation - 32,080 - 155,582
Effect of
Acquisitions
and
Divestitures (79,582) (10,974) (305,034) (32,143)
---------- ---------- ---------- ----------
ARAMARK
Corporation
Consolidated
Sales (as
adjusted) $2,541,348 $2,421,654 5% $9,918,170 $9,383,787 6%
========== ========== ========== ==========
Food and Support
Services - U.S.
Sales (as
reported) $1,794,415 $1,832,541 -2%
Estimated
Effect of
53rd Week - (140,367)
Effect of
Acquisitions
and
Divestitures (8,840) (6,929)
---------- ----------
Food and Support
Services - U.S.
Sales (as
adjusted) $1,785,575 $1,685,245 6%
========== ==========
Food and Support
Services - U.S.
Operating
Income (as
reported) $135,925 $167,047
Insurance
Proceeds - (31,990)
---------- ----------
Food and Support
Services - U.S.
Operating
Income (as
adjusted) $135,925 $135,057 1%
========== ==========
Food and Support
Services -
International -
Sales (as
reported) $462,863 $371,570 25%
Effect of
Currency
Translation - 32,080
---------- ----------
Food and Support
Services -
International -
Sales
(excluding
translation) 462,863 403,650 15%
---------- ----------
Effect of
Acquisitions
and
Divestitures (67,328) (3,506)
Estimated
Effect of
53rd Week - (17,571)
---------- ----------
Food and Support
Services -
International -
Sales (as
adjusted) $395,535 $382,573 3%
========== ==========
ARAMARK Uniform
and Career
Apparel -
Rental - Sales
(as reported) $264,064 $271,062 -3%
Estimated
Effect of
53rd Week - (19,457)
Effect of
Acquisitions
and
Divestitures (3,414) (539)
---------- ----------
ARAMARK Uniform
and Career
Apparel -
Rental - Sales
(as adjusted) $260,650 $251,066 4%
========== ==========
ARAMARK Uniform
and Career
Apparel -
Direct
Marketing -
Sales (as
reported) $99,588 $112,842 -12%
Estimated
Effect of
53rd Week - (10,072)
---------- ----------
ARAMARK Uniform
and Career
Apparel -
Direct
Marketing -
Sales (as
adjusted) $99,588 $102,770 -3%
========== ==========
ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FISCAL 2003 ORGANIC GROWTH
(Unaudited)
(In thousands)
----------------------------------------------------------------------
Management believes that presentation of organic sales growth, as
adjusted to eliminate the effect of acquisitions, divestitures, the
53rd week and the impact of currency translation, provides useful
information to investors because it enables them to assess the
performance of Company operations that were subject to the stewardship
of Company management during the entirety of the comparative financial
periods. The elimination of the 53rd week enhances comparability
because it results in the comparative periods having an equal length.
Moreover, the exclusion of the impact of currency translation enables
investors to compare management's performance without the impact of
currency fluctuations.
----------------------------------------------------------------------
Fiscal Year Ended
---------------------------
Oct. 3, Sept. 27, %
2003 2002 Change
----------------------------------- ------------- ------------- ------
ARAMARK Corporation Consolidated
Sales (as reported) $9,447,815 $8,356,007
Add: Impact of Currency Translation - 129,759
Less: Effect of Acquisitions,
Divestitures and the 53rd Week in
2003 (840,992) (94,295)
----------- -----------
ARAMARK Corporation Consolidated
Sales (as adjusted) $8,606,823 $8,391,471 3%
=========== ===========
ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FISCAL 2005 PROJECTED ORGANIC GROWTH
(Unaudited)
(In Thousands)
----------------------------------------------------------------------
Set forth below is the calculation of projected organic sales growth
for fiscal 2005 on a consolidated basis. The calculation reflects an
adjustment to exclude the estimated effect of acquisitions on the
projected sales growth.
----------------------------------------------------------------------
Fiscal Year Ended
-----------------------------
Sept. 30, Oct. 1, %
2005 2004 Change
------------------------------- -------------- -------------- --------
ARAMARK Corporation
Consolidated Sales (as
projected/reported) $11,000,000 $10,192,240 8%
Estimated Effect of
Acquisitions (277,000) (34,000)
------------ ------------
ARAMARK Corporation
Consolidated Sales (as
adjusted) $10,723,000 $10,158,240 6%
============ ============
ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
OPERATING RESULTS EXCLUDING UNUSUAL ITEMS
(Unaudited)
(In thousands, except per share amounts)
----------------------------------------------------------------------
In the fourth quarter of fiscal 2004, ARAMARK recorded a $10.0 million
charge ($6.1 million net of tax) related to a management change.
In the third quarter of fiscal 2003, ARAMARK completed a tender offer
to purchase approximately $94.3 million of its 6.75% Guaranteed Notes
due August 1, 2004, and retired a $45 million term loan due March
2005. These two transactions resulted in an extinguishment charge of
$7.7 million ($4.7 million net of tax). Additionally, in the third
quarter of fiscal 2003, ARAMARK reduced the provision for income
taxes, based on the settlement of certain open tax years, by
approximately $8.4 million. The fiscal 2003 fourth quarter includes
approximately $32.0 million ($19.7 million net of tax) of business
interruption proceeds from the final settlement of the Company's
September 11, 2001 claim. During the fourth quarter of fiscal 2003,
ARAMARK reached agreement for the sale of its 15% interest in a
previously divested periodicals distribution business to the majority
shareholder, and wrote down this investment to the expected
recoverable amount. The resulting pre-tax charge of $10.7 million
($6.6 million net of tax) is included in "Other (income) expense."
These items have been excluded from the comparisons of income from
continuing operations and earnings per share to enhance comparability
due to the size and unusual nature of these items.
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
--------------------- ----------------------
Oct. 1, Oct. 3, Oct. 1, Oct. 3, %
2004 2003 2004 2003 Change
--------------- ---------- ---------- ----------- ---------- ------
Income from
continuing
operations (as
reported) $84,638 $105,291 $263,104 $265,368
Add: Change of
management
charge 6,146 - 6,146 -
Add: Debt
extinguishment
charge - - - 4,687
Less: Tax
provision
adjustment - - - (8,439)
Add: Other
expense - 6,583 - 6,583
Less: Insurance
proceeds - (19,683) - (19,683)
-------- --------- --------- ---------
Income from
continuing
operations (as
adjusted) $90,784 $92,191 $269,250 $248,516
======== ========= ========= =========
Earnings Per
Share - Diluted
(as reported) $0.44 $0.54 $1.36 $1.34 1%
Add: Change of
management
charge 0.03 - 0.03 -
Add: Debt
extinguishment
charge - - - 0.02
Less: Tax
provision
adjustment - - - (0.04)
Add: Other
expense - 0.03 - 0.03
Less: Insurance
proceeds - (0.10) - (0.10)
-------- --------- --------- ---------
Earnings Per
Share - Diluted
(as adjusted) $0.47 $0.47 $1.39 $1.26 10%
======== ========= ========= =========
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