Aramark (NYSE: ARMK) on May 11 reported second quarter fiscal 2021 results. Consolidated revenue was $2.8 billion in the quarter, down 24%, compared with prior year from the impact of COVID-19. Organic Revenue, which adjusts for the effect of currency, declined 26% year-over-year.
Aramark's increased levels of business activity contributed to sequential quarterly revenue improvement across all segments, while also beginning to lap the initial significant impact from COVID-19 in the prior year.
KEY POINTS:
- Strong cash flow and liquidity: Aramark generated cash provided by operating activities of $337 million and free cash flow of $259 million in the quarter; $119 million and $151 million better than prior year, respectively. Approximately $2.6 billion cash availability at quarter-end.
- Revenue (24)% and organic revenue (26)%: Sequential quarterly improvement versus prior year across all business segments. Increased client re-openings throughout portfolio.
- EPS of $(0.30); Adjusted EPS of $(0.24): Leveraged flexible operating model with strong focus on cost containment. Continued investment in building growth capabilities and operating efficiencies.
- Actions subsequent to quarter-end enhance flexibility and drive growth agenda:
- Issued notice to fully redeem $500 million of outstanding principal on senior notes due 2026.
- Refinanced $833 million 2024 term loan B to proactively extend maturity to 2028.
- Closed 3-year extension on substantially all of revolving credit facility and term loans A and C to 2026; upsized revolving credit facility to $1.2 billion, increasing cash availability by over $200 million.
- Signed agreement to acquire Next Level Hospitality, a provider of culinary and environmental services in attractive senior living industry.
"Across verticals and geographies, we helped our clients develop and execute safe reopening plans," said Aramark chief executive John Zillmer. "Consistently being a trusted and desired employer and hospitality partner will enable us to create value through accelerated growth..."
See Aramark's full news release at Business Wire.
