Aramark reported strong fourth quarter and full-year fiscal 2015 results which generated a 13% increase in full year adjusted net income.
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Adjusted net income was $110 million or $0.44 per share, versus adjusted net income of $91 million or $0.37 per share in the fourth quarter of 2014. The calendar shift is estimated to have increased fourth quarter 2015 earnings per share by $0.02.
On a GAAP basis, sales were $3.5 billion, operating income was $154 million, net income attributable to Aramark stockholders was $57 million and diluted earnings per share were $0.23.
This compares to the fourth quarter of 2014 where on a GAAP basis, sales were $3.9 billion, operating income was $145 million, net income attributable to Aramark stockholders was $44 million and diluted earnings per share were $0.18.
The significant strengthening of the U.S. dollar versus the prior year period decreased sales by approximately $130 million, operating income by $8 million and net income by $4 million ($0.02 in earnings per share) in the quarter.
Fiscal 2015 results
Sales were $14.3 billion, versus $14.8 billion in 2014, with organic growth of 2%. The calculation of organic growth includes an adjustment for 2014's 53rd week of approximately $258 million, or approximately 2%, and adjusts for adverse currency translation of $471 million.
Adjusted operating income was $881 million, versus $852 million in 2014 (which includes approximately $14 million related to the 53rd week).
Adjusted net income was $387 million or $1.57 per share, versus adjusted net income of $344 million (which includes an estimated $5 million related to the 53rd week) or $1.45 per share (which includes an estimated $0.02 related to the 53rd week) in 2014.
On a GAAP basis, sales were $14.3 billion, operating income was $628 million, net income attributable to Aramark stockholders was $237 million and earnings per share were $0.96.
The board is increasing the regular quarterly dividend by 10%, to 9.5 cents per share of common stock. The first quarter fiscal 2016 dividend, at the increased rate, will be payable on December 19, 2015, to stockholders of record at the close of business November 30, 2015.
As of October 2, 2015 the company's total debt was $5.3 billion, representing a reduction of $152 million versus the prior year. Total debt to adjusted EBITDA decreased to 4.15x, an approximate 25 basis point improvement versus 2014.
Corporate liquidity remains strong, and at year-end the company had approximately $645 million available on its revolving credit facility.
The company generated $178 million of free cash flow in fiscal 2015, an improvement of approximately $300 million versus the prior year, inclusive of approximately $45 million of voluntary pension contributions made during the fourth quarter of 2015. ■