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Aramark (ARMK-2.09%) has submitted its 10-Q filing for the quarterly period ended December 27, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $4,552.1 million from $4,407.8 million in the same quarter the previous year. The increase is attributed to base business growth, including volume growth and contract price increases.
Cost of services provided was $4,151.2 million, representing 91.2% of revenue, compared to 91.8% in the same quarter of the previous year. This slight decrease in cost ratio is due to improved supply chain economics.
The company reported an operating income of $217.3 million for the quarter, compared to $167.0 million in the previous year, with the increase attributed to volume growth and cost management.
Interest expense, net, decreased to $75.8 million from $114.6 million, primarily due to the prior year payment of a call premium and lower Receivables Facility borrowings.
Net income for the quarter was $105.7 million, up from $28.5 million in the previous year. The effective tax rate for the quarter was 25.3%, compared to 45.6% in the previous year.
Cash used in operating activities was $587.2 million, compared to $657.1 million in the previous year, with the decrease attributed to higher net income and a lower use of cash from changes in operating assets and liabilities.
Cash used in investing activities increased to $230.8 million from $198.0 million, primarily due to higher investment in the acquisitions of certain businesses.
Cash provided by financing activities was $642.7 million, compared to cash used of $779.0 million in the previous year, influenced by borrowings under the Receivables Facility and revolving credit facility.
Aramark had cash and cash equivalents of $484.1 million as of December 27, 2024. The company believes its current cash, marketable securities, and credit facilities are adequate to meet anticipated cash requirements for the foreseeable future.
The filing also details various financial agreements, including a notice of conditional redemption for the 5.000% Senior Notes due April 2025 and the completion of a syndication process for new term loans due June 2030.
Aramark continues to focus on managing operating costs and mitigating risks associated with interest rates and foreign currency fluctuations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Aramark quarterly 10-Q report dated February 4, 2025. To report an error, please email earnings@qz.com.