Aramark (NYSE: ARMK) in the fourth quarter of FY 19 has reported the adjusted earnings per share of 68 cents, while reported the adjusted revenue growth of 4.9 percent to $3.95 billion in the fourth quarter of FY 19
By year-end, the company had reduced net debt by $593 million compared to the prior year and improved the leverage ratio to 3.86 times. This was done through the generation of $499 million net free cash flow, as well as using approximately $200 million proceeds from the sale of the Healthcare Technologies business.
The revenue growth is due to legacy business revenue growth of 3% and a 1.9% rise related to an accounting rule change via ASC 606. Adjusted revenue growth is also due to approximately $49 million of currency impact. FSS US legacy business revenue grew by almost 2%. Revenue growth in the fourth quarter was due to sports, leisure, and corrections, which was up 6% capturing both higher per capita consumer spending and good attendance in the major league baseball stadiums and national parks.
Moreover, during the fourth quarter, Healthcare, excluding the impact of the HCT divestiture, has posted the growth of 4% from record high retention rates and solid base business growth, while Business & Industry grew 2% due to ongoing benefit from notable recent wins, including Dell and Credit Suisse. Education has declined by 4% from disappointing net new sales, as the selling season came to a close. FSS International legacy business revenue grew 6%, due to strong new business and very high retention with growth in almost all geographies, including Europe, despite last quarter’s strategic exit of non-core custodial accounts in that region. Uniforms legacy business has delivered the revenue growth of about 3%, due to price and volume, which was offset by attrition from some legacy AmeriPride business that had previously served the major FSS competitors as those contracts expired.
Additionally, the company has declared the quarterly dividend of 11 cents per share of common stock, which will be payable on December 9, 2019, to stockholders of record at the close of business December 2, 2019.