Business Wire | Nov 16, 2021 06:31AM EST

Aramark Reports Fourth Quarter and Fiscal Year 2021 Results

Nov. 16, 2021

PHILADELPHIA--(BUSINESS WIRE)--Nov. 16, 2021--Aramark (NYSE: ARMK) today reported fourth quarter and full-year fiscal 2021 results.

"Our fourth quarter and full year results reflected the progress we have made across our business as organic revenue reached 87% of pre-COVID levels. The Company achieved record Net New Business performance across lines of business, geographies, and client size-demonstrating the execution of our strategic growth initiatives, which we are confident will position Aramark to drive higher sustainable growth and create meaningful value for our stakeholders," said John Zillmer, Aramark's Chief Executive Officer. "Despite the challenges presented over the last fiscal year, Aramark generated strong, steady performance due to our focus on innovation, ability to control costs and flex our business model to meet shifting client demands, and unwavering commitment to serving customers."

FOURTH QUARTER RESULTS*Consolidated revenue was $3.6 billion, an increase of 32% compared to the prior year. Organic Revenue, which adjusts for the effect of currency, the Next Level Hospitality acquisition, and the 53rd week of operations in the prior year, improved 37% year-over-year. An accelerated pace of new client wins, combined with improving business re-opening activity and pricing pass-through, resulted in revenue at 90% and organic revenue at 87% of pre-COVID levels, led by the FSS United States segment.

Revenue Change Organic Revenue Change

Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 '20 '20^1 '21 '21 '21 '21^1 '20 '20 '21 '21 '21 '21

FSS United (56) (41)% (45) (30) 55% 51% (56) (45) (45) (31) 52% 58%States % % % % % % %

FSS (46) (30)% (27) (21) 41% 22% (41) (31) (29) (26) 28% 21%International % % % % % % %

Uniform & (12) (2)% (10) (9)% 6% (2)% (12) (9)% (10) (9)% 5% 5%Career Apparel % % % %

Total Company (46) (32)% (35) (24) 39% 32% (45) (36) (36) (26) 34% 37% % % % % % % %



% of Fiscal '19 % of Fiscal '19

Total Company 54% 68% 64% 70% 74% 90% 55% 64% 65% 71% 73% 87%

^1A 53rd week of operations during fiscal 2020 benefited Revenue Change % in Q4'20 and impacted Q4 '21.

* FSS United States organic revenue increased 58% compared to the fourth quarter last year with the following sector performance:

Sector Q4 Activity

Welcomed students and educators back to in-person learning at theEducation start of the school year in both K-12 and Higher Education. On-campus retail and catering volumes were slower to recover

Fans largely returned with stadiums at full capacity for MajorSports, League Baseball and the National Football League season underway.Leisure & Leisure benefited from ongoing demand at National Parks, whileCorrections conference centers and events had less activity. Corrections had already returned to pre-COVID levels

Business & Companies introduced greater in-person return-to-work activity,Industry although at a measured pace, particularly with white-collar clients

Gradual improvement as patient care began to normalize with aHealthcare higher level of voluntary procedures, routine medical appointments, and hospital visitations. Retail and catering remained impacted

Facilities Higher in-demand services as client locations experienced greater& Other in-person activity, with performance surpassing pre-COVID levels

* FSS International grew organic revenue 21% year-over-year driven by stronger performance in Canada and Europe. Sports & Entertainment, Higher Education and white-collar Business & Industry in FSS International reported improved business activity with the pace of re-openings behind the U.S. * Uniform & Career Apparel organic revenue increased 5% versus the prior year with rental revenues approaching pre-COVID levels and adjacency services reporting another quarter of double-digit growth. Clients in the hospitality industry, particularly in Canada, experienced greater demand, although still below pre-COVID levels.

Revenue

Q4 '21 Q4 '20 Change ($) Change (%) Organic Revenue Change (%)

FSS United States $2,163M $1,429M $734M 51% 58%

FSS International $765M $629M $136M 22% 21%

Uniform & Career Apparel $623M $634M ($11M) (2)% 5%

Total Company $3,551M $2,692M $859M 32% 37%

Difference between Change (%) and Organic Revenue Change (%) reflects theeffect of the Next Level Hospitality acquisition, the impact of the 53^rd weekof operations in the prior year and the elimination of currency translation.

*May not total due to rounding

Operating Income was $132 million, an increase of $226 million compared to the prior year. Adjusted Operating Income was $165 million, a year-over-year increase of $177 million, resulting in an AOI margin of 4.8% on a constant-currency basis. Quarterly margin progression reflected operating leverage from increased sales volumes, partially offset by costs associated with new client wins and re-opening of existing locations as well as investments to drive growth and enhance operating infrastructure.

* FSS United States strategically layered in operating costs to support increased levels of activity, particularly in Education, while continuing to invest in growth resources. * FSS International benefited from previously implemented cost savings actions, with continued participation in government reimbursement programs. * Uniform & Career Apparel leveraged efficiencies from higher volume levels and favorable merchandise amortization costs, partially offset by investment in growth resources and inventory write-downs for certain Personal Protective Equipment (PPE). * Corporate managed overhead costs to support the lines-of-business as revenues recovered.

Operating Income (Loss) Adjusted Operating Income (Loss)

Q4 '21 Q4 '20 Change ($) Q4 '21 Q4 '20 Change ($)

FSS United States $102M ($53M) $154M $118M ($6M) $124M

FSS International $28M ($58M) $86M $19M ($30M) $48M

Uniform & Career Apparel $32M $50M ($18M) $59M $57M $2M

Corporate ($29M) ($32M) $3M ($30M) ($33M) $3M

Total Company $132M ($94M) $226M $165M ($12M) $177M

Operating Income (Loss) results include the effect of the Next LevelHospitality acquisition, the 53^rd week of operations in the prior year and theeffect of currency translation.

*May not total due to rounding.

FOURTH QUARTER GAAP SUMMARYFourth quarter fiscal 2021 GAAP results improved across all metrics compared to the prior year as the business continued to recover from the impact of COVID-19. On a GAAP basis, revenue was $3.6 billion, operating income was $132 million, net income attributable to Aramark stockholders was $35 million and diluted earnings per share was $0.14. These results included the contribution from the Next Level Hospitality acquisition that occurred in June 2021. Comparatively, fourth quarter 2020 revenue was $2.7 billion, operating loss was $94 million, net loss attributable to Aramark stockholders was $149 million and diluted loss per share was $0.59. Fourth quarter fiscal 2020 GAAP results included a 53rd week of operations. A reconciliation of GAAP to Non-GAAP measures is included in the Appendix.

FISCAL 2021 SUMMARYFiscal 2021 reflected business performance improvement over the course of the year with particular strength in the second half as all segments reported year-over-year revenue growth due to increased levels of business activity. Net New Business reached record levels, driven by increased new business wins and improved retention.

On a GAAP basis, revenue was $12.1 billion, operating income was $191 million, net loss attributable to Aramark stockholders was $91 million and diluted loss per share was $0.36. GAAP metrics in fiscal 2021 included approximately four months of operations from Next Level Hospitality. Comparatively, fiscal 2020 revenue was $12.8 billion, operating loss was $265 million, net loss attributable to Aramark stockholders was $462 million and diluted loss per share was $1.83. Fiscal 2020 GAAP results included a 53rd week of operations across all metrics and GAAP operating loss and diluted loss per share included certain non-cash impairment charges and costs related to organizational realignment.

Organic Revenue for the year was $11.8 billion with sequential improvement each quarter. Adjusted Operating Income of $292 million resulted in an AOI margin of 2.4% on a constant-currency basis, compared to 2.3% in fiscal 2020 at higher revenue levels. Disciplined cost management, the Company's flexible operating model, and the ability to leverage operating efficiencies as sales volumes recovered throughout the year contributed to improved margin performance.

CURRENCYIn the fourth quarter, a weaker U.S. dollar increased reported revenue by $25 million, Adjusted Operating Income by $0.4 million and had a negligible impact on adjusted earnings per share. The effect of currency translation benefited fiscal 2021 results by $168 million in reported revenue, $4 million in Adjusted Operating Income and approximately two cents for adjusted loss per share.

CASH FLOW AND CAPITAL STRUCTUREAramark generated Net Cash provided by operating activities of $657 million, improving $480 million compared to the prior year, and Free Cash Flow totaled $282 million in the fiscal year, an increase of $469 million compared to the prior year. This improvement was due to better operational performance, complemented by disciplined working capital and capital expenditure management as well as the benefit of federal tax refunds and deferred payroll taxes related to the CARES Act.

At year-end, Aramark had over $2.0 billion in cash availability. The Company's strong cash flow and liquidity position provided a platform to further advance its capital allocation priorities. In the fourth quarter, Aramark strengthened its balance sheet with proactive debt repayments of over $170 million.

DIVIDEND DECLARATIONThe Company's Board of Directors approved a quarterly dividend of 11 cents per share of common stock. The first quarter fiscal 2022 dividend will be payable on December 7, 2021, to stockholders of record at the close of business on November 30, 2021.

BUSINESS UPDATEAramark executed the following strategic actions over the course of the year, while navigating a complex operating environment due to COVID-19:

* Adding senior leadership talent and making organizational changes that significantly bolstered industry and line of business expertise, including sales leadership in many key roles; * Investing in growth-oriented opportunities within the business; * Enhancing sales training and development programs; * Further aligning compensation with strategic objectives, including Net New Business which now represents 40% of the Company's bonus incentive plan across the organization; * Strengthening client and supplier relationships; and * Enhancing operating infrastructure, including cybersecurity.

In fiscal 2021, Aramark reported record Net New Business that was five times greater than the average of the previous five years. Annualized gross new business wins totaled nearly $1.25 billion, with a meaningfully greater contribution from first-time outsourcing than prior years. Retention rates increased to 95.5%, or 150 basis points higher than the average of the previous five years, driven by improvements in the Company's hospitality culture and customer service.

Each segment reached performance milestones in driving Net New Business. Net New Business in fiscal 2021 of over $500 million, represented 3.1% of pre-COVID revenue. This compared to a five-year historical average for Net New Business of approximately $90 million, or 0.6% of revenue. The Company believes that this level of Net New Business positions Aramark to sustainably grow revenue in the mid-single digits when Base Business growth returns to normalized levels. The Company expects to further build upon this level of Net New Business to drive sustainably higher growth prospectively.

OUTLOOKThe Company provides its expectations for organic revenue growth, Adjusted Operating Income and Free Cash Flow on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the impact of the change in fair value related to certain gasoline and diesel agreements, severance and other charges and the effect of currency translation. The fiscal 2022 outlook reflects management's current assumptions regarding the continued impact of COVID-19 on Aramark and its clients. The extent to which COVID-19 continues to impact business, operations, and financial results, including the duration and magnitude of such impact, will depend on numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the U.S. Securities and Exchange Commission.

Aramark believes it is well-positioned to perform strongly in the recovery period and continue to build on its early Net New Business momentum. In fiscal 2022, the Company currently expects the following full-year performance:

* Organic growth between +23% and +27%, with revenue expected to approach pre-COVID levels by year-end. The impact from acquisitions and foreign currency fluctuations is expected to add approximately 2% to revenue Revenue outlook reflects a continued impact from COVID-19 in fiscal 2022 of approximately $1.6 billion to $1.9 billion, or approximately 10% to 12% of pre-COVID revenue, partially offset by net new business and pricing pass-through * Adjusted Operating Income (AOI) margin in a range of 5.0% to 5.5% with the second half of the year reaching 6.0% to 6.5% AOI margin outlook considers the impact of COVID-19, noted above. In many cases, the Company has brought back operating and above unit costs in advance of full revenue recovery. As COVID-impacted volumes recover, Aramark expects this transitional impact on AOI margin to unwind, with an incremental margin on the remaining COVID-19 volume recovery of 15% to 20%. AOI margin will also be temporarily affected by the start-up of new accounts, which typically have lower margins in year one with an acceleration thereafter. The magnitude of new account start-ups in fiscal 2022 has grown meaningfully following recent New Business wins Pricing, supply chain initiatives and operational efficiencies are expected to offset cost inflation * Free Cash Flow between $300 million and $400 million, which includes repaying approximately $65 million of deferred payroll taxes associated with the CARES Act * Annualized Net New Business in a range of $550 million to $650 million, which would represent 3.5% to 4.0% of pre-COVID revenue and an increase relative to the record performance achieved in fiscal 2021

Aramark ultimately expects mid-single digit organic revenue growth and ongoing margin progression, with margins that exceed pre-COVID levels. The Company looks forward to sharing further details on its expected multi-year progression at Aramark's upcoming Analyst Day.

"Our investments in growth are generating results. The robust pipeline of opportunities continues to grow, enabling Aramark to enter the new fiscal year with exceptionally strong momentum. I'm emboldened by our team's drive and remain confident in our ability to build on this success and deliver for our stakeholders as the recovery period is underway," Zillmer continued.

CONFERENCE CALL SCHEDULEDThe Company has scheduled a conference call at 8:30 a.m. ET today to discuss its earnings. This call and related materials can be heard and reviewed, either live or on a delayed basis, on the Company's web site, www.aramark.com on the investor relations page.

About AramarkAramark (NYSE: ARMK) proudly serves the world's leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world with food, facilities, and uniform services. Because our culture is rooted in service, our employees strive to do great things for each other, our partners, our communities, and our planet. Aramark has been named to DiversityInc's "Top 50 Companies for Diversity" list, the Forbes list of "America's Best Employers for Diversity," the Human Rights Campaign Foundation's "Best Place to Work for LGBTQ Equality" and scored 100% on the Disability Equality Index. Learn more at www.aramark.com and connect with us on Facebook, Twitter, and LinkedIn.

Selected Operational and Financial Metrics

Adjusted Revenue (Organic)Adjusted Revenue (Organic) represents revenue growth, adjusted to eliminate the effect of the Next Level Acquisition, the effect of material divestitures, the estimated impact of the 53rd week and the impact of currency translation.

Adjusted Operating Income (Loss)Adjusted Operating Income (Loss) represents operating income (loss) adjusted to eliminate the change in amortization of acquisition-related intangible assets; the impact of the change in fair value related to certain gasoline and diesel agreements; severance and other charges; the effect of the Next Level acquisition; merger and integration related charges; asset impairments; the estimated impact of the 53rd week and other items impacting comparability.

Adjusted Operating Income (Loss) (Constant Currency)Adjusted Operating Income (Loss) (Constant Currency) represents Adjusted Operating Income (Loss) adjusted to eliminate the impact of currency translation.

Adjusted Net Income (Loss)Adjusted Net Income (Loss) represents net income (loss) attributable to Aramark stockholders adjusted to eliminate the change in amortization of acquisition-related intangible assets; the impact of changes in the fair value related to certain gasoline and diesel agreements; severance and other charges; the effect of the Next Level acquisition; merger and integration related charges; asset impairments; the estimated impact of the 53rd week; gain on an equity investment; loss on defined benefit pension plan termination; the effects of refinancings on interest and other financing costs, net, less the tax impact of these adjustments; the impact of tax legislation; the tax benefit attributable to the former CEO's equity award exercises; the tax impact related to shareholder contribution and other items impacting comparability. The tax effect for adjusted net income (loss) for our U.S. earnings is calculated using a blended U.S. federal and state tax rate. The tax effect for adjusted net income (loss) in jurisdictions outside the U.S. is calculated at the local country tax rate.

Adjusted Net Income (Loss) (Constant Currency)Adjusted Net Income (Loss) (Constant Currency) represents Adjusted Net Income (Loss) adjusted to eliminate the impact of currency translation.

Adjusted EPSAdjusted EPS represents Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.

Adjusted EPS (Constant Currency)Adjusted EPS (Constant Currency) represents Adjusted EPS adjusted to eliminate the impact of currency translation.

Covenant Adjusted EBITDACovenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest and other financing costs, net; provision for income taxes; depreciation and amortization and certain other items as defined in our debt agreements required in calculating covenant ratios and debt compliance. The Company also uses Net Debt for its ratio to Covenant Adjusted EBITDA, which is calculated as total long-term borrowings less cash and cash equivalents.

Free Cash FlowFree Cash Flow represents net cash provided by operating activities less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides useful information to investors because it represents a measure of cash flow available for distribution among all the security holders of the Company.

Net New BusinessNet New Business is an internal statistical metric used to evaluate Aramark's new sales and retention performance. The calculation is defined as the annualized value of gross new business less the annualized value of lost business.

We use Adjusted Revenue (Organic), Adjusted Operating Income (Loss) (including on a constant currency basis), Adjusted Net Income (Loss) (including on a constant currency basis), Adjusted EPS (including on a constant currency basis), Covenant Adjusted EBITDA and Free Cash Flow as supplemental measures of our operating profitability and to control our cash operating costs. We believe these financial measures are useful to investors because they enable better comparisons of our historical results and allow our investors to evaluate our performance based on the same metrics that we use to evaluate our performance and trends in our results. These financial metrics are not measurements of financial performance under generally accepted accounting principles, or GAAP. Our presentation of these metrics has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. You should not consider these measures as alternatives to revenue, operating income (loss), net income (loss), or earnings (loss) per share, determined in accordance with GAAP. Adjusted Revenue (Organic), Adjusted Operating Income (Loss), Adjusted Net Income (Loss), Adjusted EPS, Covenant Adjusted EBITDA and Free Cash Flow as presented by us may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations.

Explanatory Notes to the Non-GAAP Schedules

Amortization of Acquisition-Related Intangible Assets - adjustments to eliminate the change in amortization expense resulting from the purchase accounting applied to the January 26, 2007 going-private transaction and amortization expense recognized on other acquisition-related intangible assets.

Severance and Other Charges - adjustments to eliminate severance expenses in the applicable period ($7.9 million net expense reduction for the fourth quarter of 2021, $13.3 million net expense reduction for fiscal 2021, $20.9 million for the fourth quarter of 2020 and $152.7 million for fiscal 2020).

Effect of Next Level Acquisition - adjustments to eliminate the operating results of Next Level Hospitality that are not comparable to the prior year periods.

Merger and Integration Related Charges - adjustments to eliminate merger and integration charges primarily related to the Avendra and AmeriPride acquisitions, including costs for transitional employees and integration related consulting costs, and charges related to plant consolidation, mainly asset write-downs, the implementation of a new revenue accounting system and other expenses.

Goodwill Impairment - adjustment to eliminate the impact of a non-cash impairment charge to goodwill.

Tax Reform Related Employee Reinvestments - adjustments to eliminate certain reinvestments associated with tax savings created by the Tax Cuts and Jobs Act of 2017, including employee training expenses and retirement contributions.

Estimated Impact of 53rd Week - adjustments to eliminate the estimated impact of a 53rd week of operations during fiscal 2020.

Gains, Losses and Settlements impacting comparability - adjustments to eliminate certain transactions that are not indicative of our ongoing operational performance, primarily for income from prior years' loss experience under our general liability, automobile liability and workers' compensation programs ($18.1 million for fiscal 2021 and $10.3 million for fiscal 2020), the impact of the change in fair value related to certain gasoline and diesel agreements ($0.2 million gain for the fourth quarter of 2021, $5.8 million gain for fiscal 2021, $3.1 million gain for the fourth quarter of 2020 and $0.5 million loss for fiscal 2020), charges related to hyperinflation in Argentina ($0.8 million for the fourth quarter of 2021, $1.8 million for fiscal 2021, $1.4 million for the fourth quarter of 2020 and $2.5 million for fiscal 2020), pension withdrawal charges ($0.7 million for fiscal 2021 and $0.1 million for fiscal 2020), non-cash impairment charges related to various assets ($30.6 million for the fourth quarter and fiscal 2020), a non-cash charge related to operating lease right-of-use assets, property and equipment and other assets from disposal by abandonment of certain rental properties ($28.5 million for fiscal 2020), non-cash charges related to information technology assets ($4.2 million for the fourth quarter of 2020 and $26.1 million for fiscal 2020), gain from the insurance proceeds received related to the impact of property damage from a tornado in Nashville ($16.3 million for fiscal 2020), non-cash gain from settlement of a multiemployer pension plan obligation ($6.7 million for the fourth quarter and fiscal 2020), external consulting fees related to growth initiatives ($3.2 million for fiscal 2020), payroll tax charges related to equity award exercises by the Company's former chief executive officer ($1.7 million for fiscal 2020), expenses related to legal settlements ($1.0 million net expense reduction for the fourth quarter and fiscal 2020) and other miscellaneous charges.

Gain on Equity Investment - adjustment to eliminate the impact of a non-cash gain from an observable price change related to an equity investment.

Loss on Defined Benefit Pension Plan Termination - adjustment to eliminate the impact of a non-cash loss from the termination of certain single-employer defined benefit pension plans.

Effect of Refinancing and Other on Interest and Other Financing Costs, net - adjustments to eliminate expenses associated with refinancing activities undertaken by the Company in the applicable period such as charges related to the payment of call premiums ($11.9 million for fiscal 2021 and $23.1 million for fiscal 2020) and non-cash charges for the write-offs of unamortized debt issuance costs, debt discounts and debt premiums related to the repayment of borrowings ($1.5 million loss for the fourth quarter of 2021, $8.3 million loss for fiscal 2021 and $2.2 million gain for fiscal 2020).

Effect of Tax Legislation on Provision (Benefit) for Income Taxes - adjustments to eliminate the impact of tax legislation that is not indicative of our ongoing tax position based on the new tax policies, including the impact related to the CARES Act for net operating losses being carried back to prior fiscal years ($12.2 million benefit for the fourth quarter of 2021, $50.3 million benefit for fiscal 2021, $0.4 million provision for the fourth quarter of 2020 and $58.4 million benefit for fiscal 2020), a valuation allowance against certain foreign tax credits ($6.5 million for the fourth quarter of 2021, $36.5 million for fiscal 2021 and $11.8 million reversal for the fourth quarter of 2020) and the reversal of a benefit related to the production activities deduction that is only permitted in years with taxable income ($1.8 million for the fourth quarter and fiscal 2021).

Tax Impact Related to Shareholder Transactions - adjustments to eliminate the tax impact of equity award exercises by the Company's former chief executive officer ($2.3 million expense for the fourth quarter of 2020 and $22.3 million net benefit for fiscal 2020) and the tax impact related to cash proceeds received from Mantle Ridge for short-swing profits earned through transactions in the Company's common stock ($4.1 million expense for fiscal 2020).

Tax Impact of Adjustments to Adjusted Net Income (Loss) - adjustments to eliminate the net tax impact of the adjustments to adjusted net income (loss) calculated based on a blended U.S. federal and state tax rate for U.S. adjustments and the local country tax rate for adjustments in jurisdictions outside the U.S. Adjustment also eliminates the valuation allowance recorded against deferred tax assets in a foreign subsidiary that is deemed not realizable (approximately $8.6 million for fiscal 2020).

Effect of Currency Translation - adjustments to eliminate the impact that fluctuations in currency translation rates had on the comparative results by presenting the periods on a constant currency basis. Assumes constant foreign currency exchange rates based on the rates in effect for the prior year period being used in translation for the comparable current year period.

Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements related to our expectations regarding the impact of the ongoing COVID-19 pandemic, the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases forward-looking statements can be identified by words such as "outlook," "aim," "anticipate," "are or remain or continue to be confident," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time, actual results or outcomes may differ materially from those that we expected.

Some of the factors that we believe could affect or continue to affect our results include without limitation: the severity and duration of the COVID-19 pandemic; the pandemic's impact on the U.S. and global economies, including particularly the client sectors we serve and governmental responses to the pandemic; the manner and timing of benefits we expect to receive under the CARES Act or other government programs; unfavorable economic conditions; natural disasters, global calamities, new pandemics, sports strikes and other adverse incidents; the failure to retain current clients, renew existing client contracts and obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; currency risks and other risks associated with international operations, including Foreign Corrupt Practices Act, U.K. Bribery Act and other anti-corruption law compliance; risks associated with suppliers from whom our products are sourced; disruptions to our relationship with our distribution partners; the contract intensive nature of our business, which may lead to client disputes; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; continued or further unionization of our workforce; liability resulting from our participation in multiemployer defined benefit pension plans; the inability to hire and retain key or sufficient qualified personnel or increases in labor costs; laws and governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; new interpretations of or changes in the enforcement of the government regulatory framework; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; our leverage; the inability to generate sufficient cash to service all of our indebtedness; debt agreements that limit our flexibility in operating our business; and other factors set forth under the headings Item 1A "Risk Factors," Item 3 "Legal Proceedings" and Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of our Annual Report on Form 10-K, filed with the SEC on November 24, 2020 as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and which may be obtained by contacting Aramark's investor relations department via its website at www.aramark.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and in our other filings with the SEC. 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. Forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in our expectations, or otherwise, except as required by law.

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

(In Thousands, Except Per Share Amounts)

Three Months Ended

October 1, October 2, 2021 2020

Revenue $ 3,551,264 $ 2,692,150

Costs and Expenses:

Cost of services provided (exclusive of 3,193,072 2,552,351 depreciation and amortization)

Depreciation and amortization 138,602 151,224

Selling and general corporate expenses 87,271 82,514

3,418,945 2,786,089

Operating income (loss) 132,319 (93,939 )

Interest and Other Financing Costs, net 92,964 109,158

Income (Loss) Before Income Taxes 39,355 (203,097 )

Provision (Benefit) for Income Taxes 5,093 (54,108 )

Net income (loss) 34,262 (148,989 )

Less: Net loss attributable to noncontrolling (1,167 ) (399 )interest

Net income (loss) attributable to Aramark $ 35,429 $ (148,590 )stockholders



Earnings (Loss) per share attributable to Aramark stockholders:

Basic $ 0.14 $ (0.59 )

Diluted $ 0.14 $ (0.59 )

Weighted Average Shares Outstanding:

Basic 255,609 253,178

Diluted 257,254 253,178



Fiscal Year Ended

October 1, October 2, 2021 2020

Revenue $ 12,095,965 $ 12,829,559

Costs and Expenses:

Cost of services provided (exclusive of 11,007,080 11,993,667 depreciation and amortization)

Depreciation and amortization 550,692 595,195

Selling and general corporate expenses 346,749 307,016

Goodwill impairment - 198,600

11,904,521 13,094,478

Operating income (loss) 191,444 (264,919 )

Gain on Equity Investment (137,934 ) -

Loss on Defined Benefit Pension Plan 60,864 - Termination

Interest and Other Financing Costs, net 401,366 382,800

Loss Before Income Taxes (132,852 ) (647,719 )

Benefit for Income Taxes (40,633 ) (186,284 )

Net loss (92,219 ) (461,435 )

Less: Net (loss) income attributable to (1,386 ) 94 noncontrolling interest

Net loss attributable to Aramark stockholders $ (90,833 ) $ (461,529 )



Loss per share attributable to Aramark stockholders:

Basic $ (0.36 ) $ (1.83 )

Diluted $ (0.36 ) $ (1.83 )

Weighted Average Shares Outstanding:

Basic 254,748 251,828

Diluted 254,748 251,828

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In Thousands)

October 1, 2021

October 2, 2020

Assets

Current Assets:

Cash and cash equivalents

$

532,591

$

2,509,188

Receivables

1,748,601

1,431,206

Inventories

412,676

436,473

Prepayments and other current assets

204,987

298,944

Total current assets

2,898,855

4,675,811

Property and Equipment, net

2,038,394

2,050,908

Goodwill

5,487,297

5,343,828

Other Intangible Assets

2,028,622

1,932,637

Operating Lease Right-of-use Assets

587,854

551,394

Other Assets

1,335,142

1,158,106

$

14,376,164

$

15,712,684

Liabilities and Stockholders' Equity

Current Liabilities:

Current maturities of long-term borrowings

$

58,850

$

99,915

Current operating lease liabilities

67,280

71,810

Accounts payable

919,090

663,455

Accrued expenses and other current liabilities

1,812,213

1,512,278

Total current liabilities

2,857,433

2,347,458

Long-Term Borrowings

7,393,417

9,178,508

Noncurrent Operating Lease Liabilities

314,378

341,667

Deferred Income Taxes and Other Noncurrent Liabilities

1,079,014

1,099,075

Commitments and Contingencies

Redeemable Noncontrolling Interest

9,050

9,988

Total Stockholders' Equity

2,722,872

2,735,988

$

14,376,164

$

15,712,684

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In Thousands)



October 1, October 2, 2021 2020

Assets



Current Assets:

Cash and cash equivalents $ 532,591 $ 2,509,188

Receivables 1,748,601 1,431,206

Inventories 412,676 436,473

Prepayments and other current assets 204,987 298,944

Total current assets 2,898,855 4,675,811

Property and Equipment, net 2,038,394 2,050,908

Goodwill 5,487,297 5,343,828

Other Intangible Assets 2,028,622 1,932,637

Operating Lease Right-of-use Assets 587,854 551,394

Other Assets 1,335,142 1,158,106

$ 14,376,164 $ 15,712,684



Liabilities and Stockholders' Equity



Current Liabilities:

Current maturities of long-term borrowings $ 58,850 $ 99,915

Current operating lease liabilities 67,280 71,810

Accounts payable 919,090 663,455

Accrued expenses and other current liabilities 1,812,213 1,512,278

Total current liabilities 2,857,433 2,347,458

Long-Term Borrowings 7,393,417 9,178,508

Noncurrent Operating Lease Liabilities 314,378 341,667

Deferred Income Taxes and Other Noncurrent 1,079,014 1,099,075 Liabilities

Commitments and Contingencies

Redeemable Noncontrolling Interest 9,050 9,988

Total Stockholders' Equity 2,722,872 2,735,988

$ 14,376,164 $ 15,712,684

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

Fiscal Year Ended

October 1, 2021

October 2, 2020

Cash flows from operating activities:

Net loss

$

(92,219

)

$

(461,435

)

Adjustments to reconcile net loss to net cash provided by operating activities

Depreciation and amortization

550,692

595,195

Goodwill impairment and asset write-downs

-

283,743

Gain on equity investment

(137,934

)

-

Loss on defined benefit pension plan termination

60,864

-

Deferred income taxes

(43,234

)

(134,048

)

Share-based compensation expense

71,053

30,339

Changes in operating assets and liabilities

317,501

(235,120

)

Payments made to clients on contracts

(100,918

)

(69,575

)

Other operating activities

31,274

167,583

Net cash provided by operating activities

657,079

176,682

Cash flows from investing activities:

Net purchases of property and equipment and other

(375,344

)

(364,434

)

Acquisitions, divestitures and other investing activities

(259,042

)

3,314

Net cash used in investing activities

(634,386

)

(361,120

)

Cash flows from financing activities:

Net proceeds/payments of long-term borrowings

(1,559,578

)

2,239,309

Net change in funding under the Receivables Facility

(315,600

)

315,600

Payments of dividends

(112,010

)

(110,893

)

Proceeds from issuance of common stock

41,587

90,022

Repurchase of stock

-

(6,540

)

Other financing activities

(59,738

)

(89,976

)

Net cash (used in) provided by financing activities

(2,005,339

)

2,437,522

Effect of foreign exchange rates on cash and cash equivalents

6,049

9,461

(Decrease) increase in cash and cash equivalents

(1,976,597

)

2,262,545

Cash and cash equivalents, beginning of period

2,509,188

246,643

Cash and cash equivalents, end of period

$

532,591

$

2,509,188

ARAMARK AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)



Fiscal Year Ended

October 1, October 2, 2021 2020



Cash flows from operating activities:

Net loss $ (92,219 ) $ (461,435 )

Adjustments to reconcile net loss to net cash provided by operating activities

Depreciation and amortization 550,692 595,195

Goodwill impairment and asset write-downs - 283,743

Gain on equity investment (137,934 ) -

Loss on defined benefit pension plan termination 60,864 -

Deferred income taxes (43,234 ) (134,048 )

Share-based compensation expense 71,053 30,339

Changes in operating assets and liabilities 317,501 (235,120 )

Payments made to clients on contracts (100,918 ) (69,575 )

Other operating activities 31,274 167,583

Net cash provided by operating activities 657,079 176,682



Cash flows from investing activities:

Net purchases of property and equipment and (375,344 ) (364,434 )other

Acquisitions, divestitures and other investing (259,042 ) 3,314 activities

Net cash used in investing activities (634,386 ) (361,120 )



Cash flows from financing activities:

Net proceeds/payments of long-term borrowings (1,559,578 ) 2,239,309

Net change in funding under the Receivables (315,600 ) 315,600 Facility

Payments of dividends (112,010 ) (110,893 )

Proceeds from issuance of common stock 41,587 90,022

Repurchase of stock - (6,540 )

Other financing activities (59,738 ) (89,976 )

Net cash (used in) provided by financing (2,005,339 ) 2,437,522 activities

Effect of foreign exchange rates on cash and 6,049 9,461 cash equivalents

(Decrease) increase in cash and cash equivalents (1,976,597 ) 2,262,545

Cash and cash equivalents, beginning of period 2,509,188 246,643

Cash and cash equivalents, end of period $ 532,591 $ 2,509,188

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME (LOSS) MARGIN

(Unaudited)

(In thousands)

Three Months Ended

October 1, 2021

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

2,162,866

$

765,466

$

622,932

$

3,551,264

Operating Income (as reported)

$

101,685

$

27,903

$

32,033

$

(29,302

)

$

132,319

Operating Income Margin (as reported)

4.70

%

3.65

%

5.14

%

3.73

%

Revenue (as reported)

$

2,162,866

$

765,466

$

622,932

$

3,551,264

Effect of Next Level Acquisition

(85,557

)

-

-

(85,557

)

Effect of Currency Translation

(1,347

)

(20,642

)

(3,041

)

(25,030

)

Adjusted Revenue (Organic)

$

2,075,962

$

744,824

$

619,891

$

3,440,677

Revenue Growth (as reported)

51.35

%

21.69

%

(1.76

)%

31.91

%

Adjusted Revenue Growth (Organic)

58.16

%

21.47

%

5.18

%

36.80

%

Operating Income (as reported)

$

101,685

$

27,903

$

32,033

$

(29,302

)

$

132,319

Amortization of Acquisition-Related Intangible Assets

22,542

1,864

6,190

-

30,596

Severance and Other Charges

(3,774

)

(11,937

)

8,471

(647

)

(7,887

)

Effect of Next Level Acquisition

(2,746

)

-

-

-

(2,746

)

Merger and Integration Related Charges

-

-

12,233

-

12,233

Gains, Losses and Settlements impacting comparability

-

841

-

(286

)

555

Adjusted Operating Income

$

117,707

$

18,671

$

58,927

$

(30,235

)

$

165,070

Effect of Currency Translation

(314

)

246

(299

)

-

(367

)

Adjusted Operating Income (Constant Currency)

$

117,393

$

18,917

$

58,628

$

(30,235

)

$

164,703

Operating Income Growth (as reported)

293.19

%

147.71

%

(35.38

)%

9.52

%

240.86

%

Adjusted Operating Income Growth

2,029.31

%

162.81

%

3.42

%

7.78

%

1,518.98

%

Adjusted Operating Income Growth (Constant Currency)

2,024.16

%

163.64

%

2.90

%

7.78

%

1,515.83

%

Adjusted Operating Income Margin (Constant Currency)

5.65

%

2.54

%

9.46

%

4.79

%

Three Months Ended

October 2, 2020

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,429,031

$

629,021

$

634,098

$

2,692,150

Estimated Impact of 53rd Week

(116,461

)

(15,858

)

(44,740

)

(177,059

)

Adjusted Revenue

$

1,312,570

$

613,163

$

589,358

$

2,515,091

Operating (Loss) Income (as reported)

$

(52,634

)

$

(58,488

)

$

49,569

$

(32,386

)

$

(93,939

)

Amortization of Acquisition-Related Intangible Assets

21,101

1,824

6,235

-

29,160

Severance and Other Charges

3,571

12,594

4,556

169

20,890

Merger and Integration Related Charges

111

176

6,176

-

6,463

Estimated Impact of 53rd Week

(825

)

827

(2,885

)

2,520

(363

)

Gains, Losses and Settlements impacting comparability

22,575

13,342

(6,673

)

(3,088

)

26,156

Adjusted Operating (Loss) Income

$

(6,101

)

$

(29,725

)

$

56,978

$

(32,785

)

$

(11,633

)

Operating (Loss) Income Margin (as reported)

(3.68

)%

(9.30

)%

7.82

%

(3.49

)%

Adjusted Operating (Loss) Income Margin

(0.46

)%

(4.85

)%

9.67

%

(0.46

)%

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME (LOSS) MARGIN

(Unaudited)

(In thousands)



Three Months Ended

October 1, 2021

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 2,162,866 $ 765,466 $ 622,932 $ 3,551,264 reported)

Operating Income $ 101,685 $ 27,903 $ 32,033 $ (29,302 ) $ 132,319 (as reported)

Operating IncomeMargin (as 4.70 % 3.65 % 5.14 % 3.73 %reported)



Revenue (as $ 2,162,866 $ 765,466 $ 622,932 $ 3,551,264 reported)

Effect of Next (85,557 ) - - (85,557 )Level Acquisition

Effect of Currency (1,347 ) (20,642 ) (3,041 ) (25,030 )Translation

Adjusted Revenue $ 2,075,962 $ 744,824 $ 619,891 $ 3,440,677 (Organic)

Revenue Growth (as 51.35 % 21.69 % (1.76 ) 31.91 %reported) %

Adjusted Revenue 58.16 % 21.47 % 5.18 % 36.80 %Growth (Organic)



Operating Income $ 101,685 $ 27,903 $ 32,033 $ (29,302 ) $ 132,319 (as reported)

Amortization ofAcquisition-Related 22,542 1,864 6,190 - 30,596 Intangible Assets

Severance and Other (3,774 ) (11,937 ) 8,471 (647 ) (7,887 )Charges

Effect of Next (2,746 ) - - - (2,746 )Level Acquisition

Merger andIntegration Related - - 12,233 - 12,233 Charges

Gains, Losses andSettlements - 841 - (286 ) 555 impactingcomparability

Adjusted Operating $ 117,707 $ 18,671 $ 58,927 $ (30,235 ) $ 165,070 Income

Effect of Currency (314 ) 246 (299 ) - (367 )Translation

Adjusted OperatingIncome (Constant $ 117,393 $ 18,917 $ 58,628 $ (30,235 ) $ 164,703 Currency)



Operating Income )Growth (as 293.19 % 147.71 % (35.38 % 9.52 % 240.86 %reported)

Adjusted Operating 2,029.31 % 162.81 % 3.42 % 7.78 % 1,518.98 %Income Growth

Adjusted OperatingIncome Growth 2,024.16 % 163.64 % 2.90 % 7.78 % 1,515.83 %(Constant Currency)

Adjusted OperatingIncome Margin 5.65 % 2.54 % 9.46 % 4.79 %(Constant Currency)



Three Months Ended

October 2, 2020

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,429,031 $ 629,021 $ 634,098 $ 2,692,150 reported)

Estimated Impact of (116,461 ) (15,858 ) (44,740 ) (177,059 )53rd Week

Adjusted Revenue $ 1,312,570 $ 613,163 $ 589,358 $ 2,515,091



Operating (Loss)Income (as $ (52,634 ) $ (58,488 ) $ 49,569 $ (32,386 ) $ (93,939 )reported)

Amortization ofAcquisition-Related 21,101 1,824 6,235 - 29,160 Intangible Assets

Severance and Other 3,571 12,594 4,556 169 20,890 Charges

Merger andIntegration Related 111 176 6,176 - 6,463 Charges

Estimated Impact of (825 ) 827 (2,885 ) 2,520 (363 )53rd Week

Gains, Losses andSettlements 22,575 13,342 (6,673 ) (3,088 ) 26,156 impactingcomparability

Adjusted Operating $ (6,101 ) $ (29,725 ) $ 56,978 $ (32,785 ) $ (11,633 )(Loss) Income



Operating (Loss) ) )Income Margin (as (3.68 % (9.30 )% 7.82 % (3.49 %reported)

Adjusted Operating ) )(Loss) Income (0.46 % (4.85 )% 9.67 % (0.46 %Margin

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME (LOSS) MARGIN

(Unaudited)

(In thousands)

Fiscal Year Ended

October 1, 2021

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

6,809,258

$

2,866,161

$

2,420,546

$

12,095,965

Operating Income (as reported)

$

131,742

$

58,227

$

120,828

$

(119,353

)

$

191,444

Operating Income Margin (as reported)

1.93

%

2.03

%

4.99

%

1.58

%

Revenue (as reported)

$

6,809,258

$

2,866,161

$

2,420,546

$

12,095,965

Effect of Next Level Acquisition

(108,915

)

-

-

(108,915

)

Effect of Currency Translation

(3,817

)

(151,950

)

(12,626

)

(168,393

)

Adjusted Revenue (Organic)

$

6,696,526

$

2,714,211

$

2,407,920

$

11,818,657

Revenue Growth (as reported)

(7.57

)%

(2.70

)%

(3.83

)%

(5.72

)%

Adjusted Revenue Growth (Organic)

(7.64

)%

(7.36

)%

(2.60

)%

(6.59

)%

Operating Income (as reported)

$

131,742

$

58,227

$

120,828

$

(119,353

)

$

191,444

Amortization of Acquisition-Related Intangible Assets

83,629

7,886

25,012

-

116,527

Severance and Other Charges

(3,774

)

(16,555

)

7,970

(973

)

(13,332

)

Effect of Next Level Acquisition

(3,191

)

-

-

-

(3,191

)

Merger and Integration Related Charges

-

-

22,169

-

22,169

Gains, Losses and Settlements impacting comparability

(18,098

)

1,825

743

(5,866

)

(21,396

)

Adjusted Operating Income

$

190,308

$

51,383

$

176,722

$

(126,192

)

$

292,221

Effect of Currency Translation

(954

)

(1,997

)

(1,065

)

-

(4,016

)

Adjusted Operating Income (Constant Currency)

$

189,354

$

49,386

$

175,657

$

(126,192

)

$

288,205

Operating Income Growth (as reported)

2,380.08

%

116.91

%

(29.56

)%

(22.44

)%

172.27

%

Adjusted Operating Income Growth

(10.77

)%

260.89

%

(11.65

)%

(44.56

)%

(0.63

)%

Adjusted Operating Income Growth (Constant Currency)

(11.22

)%

254.64

%

(12.18

)%

(44.56

)%

(2.00

)%

Adjusted Operating Income Margin (Constant Currency)

2.83

%

1.82

%

7.29

%

2.44

%

Fiscal Year Ended

October 2, 2020

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

7,366,678

$

2,945,834

$

2,517,047

$

12,829,559

Estimated Impact of 53rd Week

(116,461

)

(15,858

)

(44,740

)

(177,059

)

Adjusted Revenue (Organic)

$

7,250,217

$

2,929,976

$

2,472,307

$

12,652,500

Operating Income (Loss) (as reported)

$

5,312

$

(344,274

)

$

171,525

$

(97,482

)

$

(264,919

)

Amortization of Acquisition-Related Intangible Assets

84,863

6,812

24,849

-

116,524

Severance and Other Charges

51,776

90,945

4,923

5,073

152,717

Merger and Integration Related Charges

3,591

701

24,576

-

28,868

Goodwill Impairment

-

198,600

-

-

198,600

Tax Reform Related Employee Reinvestments

1,436

-

(13

)

-

1,423

Estimated Impact of 53rd Week

(825

)

827

(2,885

)

2,520

(363

)

Gains, Losses and Settlements impacting comparability

67,132

14,453

(22,947

)

2,597

61,235

Adjusted Operating Income (Loss)

$

213,285

$

(31,936

)

$

200,028

$

(87,292

)

$

294,085

Operating Income (Loss) Margin (as reported)

0.07

%

(11.69

)%

6.81

%

(2.06

)%

Adjusted Operating Income (Loss) Margin

2.94

%

(1.09

)%

8.09

%

2.32

%

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED OPERATING INCOME (LOSS) MARGIN

(Unaudited)

(In thousands)

Fiscal Year Ended

October 1, 2021

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 6,809,258 $ 2,866,161 $ 2,420,546 $ 12,095,965 reported)

Operating Income $ 131,742 $ 58,227 $ 120,828 $ (119,353 ) $ 191,444 (as reported)

Operating IncomeMargin (as 1.93 % 2.03 % 4.99 % 1.58 %reported)



Revenue (as $ 6,809,258 $ 2,866,161 $ 2,420,546 $ 12,095,965 reported)

Effect of Next (108,915 ) - - (108,915 )Level Acquisition

Effect of Currency (3,817 ) (151,950 ) (12,626 ) (168,393 )Translation

Adjusted Revenue $ 6,696,526 $ 2,714,211 $ 2,407,920 $ 11,818,657 (Organic)

Revenue Growth (as (7.57 ) (2.70 ) (3.83 ) (5.72 )reported) % % % %

Adjusted Revenue (7.64 ) (7.36 ) (2.60 ) (6.59 )Growth (Organic) % % % %



Operating Income $ 131,742 $ 58,227 $ 120,828 $ (119,353 ) $ 191,444 (as reported)

Amortization ofAcquisition-Related 83,629 7,886 25,012 - 116,527 Intangible Assets

Severance and Other (3,774 ) (16,555 ) 7,970 (973 ) (13,332 )Charges

Effect of Next (3,191 ) - - - (3,191 )Level Acquisition

Merger andIntegration Related - - 22,169 - 22,169 Charges

Gains, Losses andSettlements (18,098 ) 1,825 743 (5,866 ) (21,396 )impactingcomparability

Adjusted Operating $ 190,308 $ 51,383 $ 176,722 $ (126,192 ) $ 292,221 Income

Effect of Currency (954 ) (1,997 ) (1,065 ) - (4,016 )Translation

Adjusted OperatingIncome (Constant $ 189,354 $ 49,386 $ 175,657 $ (126,192 ) $ 288,205 Currency)



Operating Income ) )Growth (as 2,380.08 % 116.91 % (29.56 % (22.44 % 172.27 %reported)

Adjusted Operating (10.77 ) 260.89 % (11.65 ) (44.56 ) (0.63 )Income Growth % % % %

Adjusted Operating ) ) ) )Income Growth (11.22 % 254.64 % (12.18 % (44.56 % (2.00 %(Constant Currency)

Adjusted OperatingIncome Margin 2.83 % 1.82 % 7.29 % 2.44 %(Constant Currency)



Fiscal Year Ended

October 2, 2020

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 7,366,678 $ 2,945,834 $ 2,517,047 $ 12,829,559 reported)

Estimated Impact of (116,461 ) (15,858 ) (44,740 ) (177,059 )53rd Week

Adjusted Revenue $ 7,250,217 $ 2,929,976 $ 2,472,307 $ 12,652,500 (Organic)



Operating Income(Loss) (as $ 5,312 $ (344,274 ) $ 171,525 $ (97,482 ) $ (264,919 )reported)

Amortization ofAcquisition-Related 84,863 6,812 24,849 - 116,524 Intangible Assets

Severance and Other 51,776 90,945 4,923 5,073 152,717 Charges

Merger andIntegration Related 3,591 701 24,576 - 28,868 Charges

Goodwill Impairment - 198,600 - - 198,600

Tax Reform RelatedEmployee 1,436 - (13 ) - 1,423 Reinvestments

Estimated Impact of (825 ) 827 (2,885 ) 2,520 (363 )53rd Week

Gains, Losses andSettlements 67,132 14,453 (22,947 ) 2,597 61,235 impactingcomparability

Adjusted Operating $ 213,285 $ (31,936 ) $ 200,028 $ (87,292 ) $ 294,085 Income (Loss)



Operating Income ) )(Loss) Margin (as 0.07 % (11.69 % 6.81 % (2.06 %reported)

Adjusted Operating )Income (Loss) 2.94 % (1.09 % 8.09 % 2.32 %Margin

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED NET INCOME (LOSS) & ADJUSTED EARNINGS (LOSS) PER SHARE

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Fiscal Year Ended

October 1, 2021

October 2, 2020

October 1, 2021

October 2, 2020

Net Income (Loss) Attributable to Aramark Stockholders (as reported)

$

35,429

$

(148,590

)

$

(90,833

)

$

(461,529

)

Adjustment:

Amortization of Acquisition-Related Intangible Assets

30,596

29,160

116,527

116,524

Severance and Other Charges

(7,887

)

20,890

(13,332

)

152,717

Effect of Next Level Acquisition

(2,746

)

-

(3,191

)

-

Merger and Integration Related Charges

12,233

6,463

22,169

28,868

Goodwill Impairment

-

-

-

198,600

Tax Reform Related Employee Reinvestments

-

-

-

1,423

Estimated Impact of 53rd Week

-

6,973

-

6,973

Gains, Losses and Settlements impacting comparability

555

26,156

(21,396

)

61,235

Gain on Equity Investment

-

-

(137,934

)

-

Loss on Defined Benefit Pension Plan Termination

-

-

60,864

-

Effect of Refinancing and Other on Interest and Other Financing Costs, net

1,580

-

20,238

20,883

Effect of Tax Legislation on Provision (Benefit) for Income Taxes

(3,824

)

(11,469

)

(11,968

)

(58,437

)

Tax Impact Related to Shareholder Transactions

-

2,258

-

(18,221

)

Tax Impact of Adjustments to Adjusted Net Income (Loss)

(10,935

)

(21,338

)

(17,470

)

(90,964

)

Adjusted Net Income (Loss)

$

55,001

$

(89,497

)

$

(76,326

)

$

(41,928

)

Effect of Currency Translation, net of Tax

(259

)

-

(5,097

)

-

Adjusted Net Income (Loss) (Constant Currency)

$

54,742

$

(89,497

)

$

(81,423

)

$

(41,928

)

Earnings (Loss) Per Share (as reported)

Net Income (Loss) Attributable to Aramark Stockholders (as reported)

$

35,429

$

(148,590

)

$

(90,833

)

$

(461,529

)

Diluted Weighted Average Shares Outstanding

257,254

253,178

254,748

251,828

$

0.14

$

(0.59

)

$

(0.36

)

$

(1.83

)

Adjusted Earnings (Loss) Per Share

Adjusted Net Income (Loss)

$

55,001

$

(89,497

)

$

(76,326

)

$

(41,928

)

Diluted Weighted Average Shares Outstanding

257,254

253,178

254,748

251,828

$

0.21

$

(0.35

)

$

(0.30

)

$

(0.17

)

Adjusted Earnings (Loss) Per Share (Constant Currency)

Adjusted Net Income (Loss) (Constant Currency)

$

54,742

$

(89,497

)

$

(81,423

)

$

(41,928

)

Diluted Weighted Average Shares Outstanding

257,254

253,178

254,748

251,828

$

0.21

$

(0.35

)

$

(0.32

)

$

(0.17

)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED NET INCOME (LOSS) & ADJUSTED EARNINGS (LOSS) PER SHARE

(Unaudited)

(In thousands, except per share amounts)



Three Months Ended Fiscal Year Ended

October 1, October 2, October 1, October 2, 2021 2020 2021 2020



Net Income (Loss)Attributable to $ 35,429 $ (148,590 ) $ (90,833 ) $ (461,529 )Aramark Stockholders(as reported)

Adjustment:

Amortization ofAcquisition-Related 30,596 29,160 116,527 116,524 Intangible Assets

Severance and Other (7,887 ) 20,890 (13,332 ) 152,717 Charges

Effect of Next Level (2,746 ) - (3,191 ) - Acquisition

Merger and Integration 12,233 6,463 22,169 28,868 Related Charges

Goodwill Impairment - - - 198,600

Tax Reform Related - - - 1,423 Employee Reinvestments

Estimated Impact of - 6,973 - 6,973 53rd Week

Gains, Losses andSettlements impacting 555 26,156 (21,396 ) 61,235 comparability

Gain on Equity - - (137,934 ) - Investment

Loss on DefinedBenefit Pension Plan - - 60,864 - Termination

Effect of Refinancingand Other on Interest 1,580 - 20,238 20,883 and Other FinancingCosts, net

Effect of TaxLegislation on (3,824 ) (11,469 ) (11,968 ) (58,437 )Provision (Benefit)for Income Taxes

Tax Impact Related toShareholder - 2,258 - (18,221 )Transactions

Tax Impact ofAdjustments to (10,935 ) (21,338 ) (17,470 ) (90,964 )Adjusted Net Income(Loss)

Adjusted Net Income $ 55,001 $ (89,497 ) $ (76,326 ) $ (41,928 )(Loss)

Effect of CurrencyTranslation, net of (259 ) - (5,097 ) - Tax

Adjusted Net Income(Loss) (Constant $ 54,742 $ (89,497 ) $ (81,423 ) $ (41,928 )Currency)



Earnings (Loss) Per Share (as reported)

Net Income (Loss)Attributable to $ 35,429 $ (148,590 ) $ (90,833 ) $ (461,529 )Aramark Stockholders(as reported)

Diluted WeightedAverage Shares 257,254 253,178 254,748 251,828 Outstanding

$ 0.14 $ (0.59 ) $ (0.36 ) $ (1.83 )



Adjusted Earnings (Loss) Per Share

Adjusted Net Income $ 55,001 $ (89,497 ) $ (76,326 ) $ (41,928 )(Loss)

Diluted WeightedAverage Shares 257,254 253,178 254,748 251,828 Outstanding

$ 0.21 $ (0.35 ) $ (0.30 ) $ (0.17 )



Adjusted Earnings(Loss) Per Share (Constant Currency)

Adjusted Net Income(Loss) (Constant $ 54,742 $ (89,497 ) $ (81,423 ) $ (41,928 )Currency)

Diluted WeightedAverage Shares 257,254 253,178 254,748 251,828 Outstanding

$ 0.21 $ (0.35 ) $ (0.32 ) $ (0.17 )

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

NET DEBT TO COVENANT ADJUSTED EBITDA

(Unaudited)

(In thousands)

Twelve Months Ended

Amendment Adjusted Period Ended(1)

October 1, 2021

October 1, 2021

Net (Loss) Income Attributable to Aramark Stockholders (as reported)

$

(90,833

)

$

349,704

Interest and Other Financing Costs, net

401,366

340,380

(Benefit) Provision for Income Taxes

(40,633

)

92,569

Depreciation and Amortization

550,692

580,482

Share-based compensation expense(2)

71,053

54,569

Unusual or non-recurring (gains) and losses(3)

(77,070

)

-

Pro forma EBITDA for equity method investees(4)

10,162

4,544

Pro forma EBITDA for certain transactions(5)

11,228

(1,034

)

Other(6)(7)

102,592

97,752

Covenant Adjusted EBITDA

$

938,557

$

1,518,966

Net Debt to Covenant Adjusted EBITDA

Total Long-Term Borrowings

$

7,452,267

$

7,452,267

Less: Cash and cash equivalents

532,591

532,591

Net Debt

$

6,919,676

$

6,919,676

Covenant Adjusted EBITDA

$

938,557

$

1,518,966

Net Debt/Covenant Adjusted EBITDA

7.4

4.6

(1) The covenant waiver period outlined in Amendment No. 9 to the Company's Credit Agreement expired at the beginning of the fourth quarter of fiscal 2021. The Consolidated Secured Debt Ratio debt covenant is once again effective and the trailing twelve month period as of October 1, 2021 consists of results from the third quarter of fiscal 2019 through the first quarter of fiscal 2020 plus the fourth quarter of fiscal 2021, excluding the results of the second quarter of fiscal 2020 through the third quarter of fiscal 2021.

(2) Represents compensation expense related to the Company's issuances of share-based awards.

(3) Represents the fiscal 2021 non-cash gain from an observable price change on an equity investment ($137.9 million) and the fiscal 2021 non-cash loss from the termination of certain defined benefit pension plans ($60.9 million).

(4) Represents the Company's estimated share of EBITDA primarily from the Company's AIM Services Co., Ltd. equity method investment,

not already reflected in the Company's net (loss) income attributable to Aramark stockholders. EBITDA for this equity method investee is calculated in a manner consistent with Covenant Adjusted EBITDA but does not represent cash distributions received from this investee.

(5) Represents the annualizing of net EBITDA from certain acquisitions made during the period.

(6) "Other" for the twelve months ended October 1, 2021 includes non-cash charges for inventory write-downs to net realizable value and for excess inventory related to personal protective equipment ($36.0 million), labor charges, incremental expenses and other expenses associated with closed or partially closed client locations resulting from the COVID-19 pandemic, net of U.S. and non-U.S. governmental labor related tax credits ($28.4 million), adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($25.3 million), expenses related to merger and integration related charges ($22.2 million), gain from a funding agreement related to a legal matter ($10.0 million), reversal of severance charges ($8.2 million), the gain from the change in fair value related to certain gasoline and diesel agreements ($5.9 million), a favorable settlement of a legal matter ($4.7 million), non-cash impairment charges related to various assets ($3.8 million), charges related to a client contract dispute ($2.6 million), expenses related to the impact of the ice storm in Texas ($2.5 million), a non-cash charge related to an environmental matter ($2.5 million), non-cash charges related to information technology assets ($2.2 million), the impact of hyperinflation in Argentina ($1.8 million) and other miscellaneous expenses.

(7) "Other" for the amendment adjusted period ended October 1, 2021 includes labor charges, incremental expenses and other expenses associated with closed or partially closed client locations resulting from the COVID-19 pandemic, net of U.S. and non-U.S. governmental labor related tax credits ($45.7 million benefit), expenses related to merger and integration related charges ($40.1 million), charges related to certain legal settlements ($27.9 million), adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($25.0 million), non-cash charges for inventory write-downs to net realizable value and for excess inventory related to personal protective equipment ($16.4 million), non-cash impairment charges related to various assets ($11.9 million), reversal of severance charges ($11.2 million), compensation expense for retirement contributions and employee training programs funded by the benefits from U.S. tax reform ($10.9 million), cash compensation charges associated with the retirement of the Company's former chief executive officer ($10.4 million), gain from a funding agreement related to a legal matter ($10.0 million), advisory fees related to shareholder matters ($7.7 million), closing costs mainly related to customer contracts ($7.3 million), the impact of hyperinflation in Argentina ($5.7 million), non-cash charges related to information technology assets ($5.1 million), the gain from the change in fair value related to certain gasoline and diesel agreements ($3.2 million) and other miscellaneous expenses.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

NET DEBT TO COVENANT ADJUSTED EBITDA

(Unaudited)

(In thousands)

Amendment Twelve Months Ended Adjusted Period Ended^(1)

October 1, 2021 October 1, 2021

Net (Loss) Income Attributable to $ (90,833 ) $ 349,704 Aramark Stockholders (as reported)

Interest and Other Financing Costs, 401,366 340,380 net

(Benefit) Provision for Income Taxes (40,633 ) 92,569

Depreciation and Amortization 550,692 580,482

Share-based compensation expense^(2) 71,053 54,569

Unusual or non-recurring (gains) and (77,070 ) - losses^(3)

Pro forma EBITDA for equity method 10,162 4,544 investees^(4)

Pro forma EBITDA for certain 11,228 (1,034 )transactions^(5)

Other^(6)(7) 102,592 97,752

Covenant Adjusted EBITDA $ 938,557 $ 1,518,966



Net Debt to Covenant Adjusted EBITDA

Total Long-Term Borrowings $ 7,452,267 $ 7,452,267

Less: Cash and cash equivalents 532,591 532,591

Net Debt $ 6,919,676 $ 6,919,676

Covenant Adjusted EBITDA $ 938,557 $ 1,518,966

Net Debt/Covenant Adjusted EBITDA 7.4 4.6



(1) The covenant waiver period outlined in Amendment No. 9 to the Company'sCredit Agreement expired at the beginning of the fourth quarter of fiscal 2021.The Consolidated Secured Debt Ratio debt covenant is once again effective andthe trailing twelve month period as of October 1, 2021 consists of results fromthe third quarter of fiscal 2019 through the first quarter of fiscal 2020 plusthe fourth quarter of fiscal 2021, excluding the results of the second quarterof fiscal 2020 through the third quarter of fiscal 2021.

(2) Represents compensation expense related to the Company's issuances ofshare-based awards.

(3) Represents the fiscal 2021 non-cash gain from an observable price change onan equity investment ($137.9 million) and the fiscal 2021 non-cash loss fromthe termination of certain defined benefit pension plans ($60.9 million).

(4) Represents the Company's estimated share of EBITDA primarily from theCompany's AIM Services Co., Ltd. equity method investment,

not already reflected in the Company's net (loss) income attributable toAramark stockholders. EBITDA for this equity method investee is calculated in amanner consistent with Covenant Adjusted EBITDA but does not represent cashdistributions received from this investee.

(5) Represents the annualizing of net EBITDA from certain acquisitions madeduring the period.

(6) "Other" for the twelve months ended October 1, 2021 includes non-cashcharges for inventory write-downs to net realizable value and for excessinventory related to personal protective equipment ($36.0 million), laborcharges, incremental expenses and other expenses associated with closed orpartially closed client locations resulting from the COVID-19 pandemic, net ofU.S. and non-U.S. governmental labor related tax credits ($28.4 million),adjustments to remove the impact attributable to the adoption of certainaccounting standards that are made to the calculation in accordance with theCredit Agreement and indentures ($25.3 million), expenses related to merger andintegration related charges ($22.2 million), gain from a funding agreementrelated to a legal matter ($10.0 million), reversal of severance charges ($8.2million), the gain from the change in fair value related to certain gasolineand diesel agreements ($5.9 million), a favorable settlement of a legal matter($4.7 million), non-cash impairment charges related to various assets ($3.8million), charges related to a client contract dispute ($2.6 million), expensesrelated to the impact of the ice storm in Texas ($2.5 million), a non-cashcharge related to an environmental matter ($2.5 million), non-cash chargesrelated to information technology assets ($2.2 million), the impact ofhyperinflation in Argentina ($1.8 million) and other miscellaneous expenses.

(7) "Other" for the amendment adjusted period ended October 1, 2021 includeslabor charges, incremental expenses and other expenses associated with closedor partially closed client locations resulting from the COVID-19 pandemic, netof U.S. and non-U.S. governmental labor related tax credits ($45.7 millionbenefit), expenses related to merger and integration related charges ($40.1million), charges related to certain legal settlements ($27.9 million),adjustments to remove the impact attributable to the adoption of certainaccounting standards that are made to the calculation in accordance with theCredit Agreement and indentures ($25.0 million), non-cash charges for inventorywrite-downs to net realizable value and for excess inventory related topersonal protective equipment ($16.4 million), non-cash impairment chargesrelated to various assets ($11.9 million), reversal of severance charges ($11.2million), compensation expense for retirement contributions and employeetraining programs funded by the benefits from U.S. tax reform ($10.9 million),cash compensation charges associated with the retirement of the Company'sformer chief executive officer ($10.4 million), gain from a funding agreementrelated to a legal matter ($10.0 million), advisory fees related to shareholdermatters ($7.7 million), closing costs mainly related to customer contracts($7.3 million), the impact of hyperinflation in Argentina ($5.7 million),non-cash charges related to information technology assets ($5.1 million), thegain from the change in fair value related to certain gasoline and dieselagreements ($3.2 million) and other miscellaneous expenses.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FREE CASH FLOW

(Unaudited)

(In thousands)

Fiscal Year Ended

October 1, 2021

Net Cash provided by operating activities

$

657,079

Net purchases of property and equipment and other

(375,344

)

Free Cash Flow

$

281,735

Fiscal Year Ended

October 2, 2020

Net Cash provided by operating activities

$

176,682

Net purchases of property and equipment and other

(364,434

)

Free Cash Flow

$

(187,752

)

Fiscal Year Ended

Change

Net Cash provided by operating activities

$

480,397

Net purchases of property and equipment and other

(10,910

)

Free Cash Flow

$

469,487

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

FREE CASH FLOW

(Unaudited)

(In thousands)



Fiscal Year Ended

October 1, 2021

Net Cash provided by operating activities $ 657,079



Net purchases of property and equipment and other (375,344 )



Free Cash Flow $ 281,735



Fiscal Year Ended

October 2, 2020

Net Cash provided by operating activities $ 176,682



Net purchases of property and equipment and other (364,434 )



Free Cash Flow $ (187,752 )



Fiscal Year Ended

Change

Net Cash provided by operating activities $ 480,397



Net purchases of property and equipment and other (10,910 )



Free Cash Flow $ 469,487

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)

Three Months Ended

June 26, 2020

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,067,580

$

517,171

$

567,502

$

2,152,253

Effect of Currency Translation

534

40,188

1,377

42,099

Adjusted Revenue (Organic)

$

1,068,114

$

557,359

$

568,879

$

2,194,352

Revenue Growth (as reported)

(55.77

)%

(45.55

)%

(12.34

)%

(46.34

)%

Adjusted Revenue Growth (Organic)

(55.74

)%

(41.32

)%

(12.13

)%

(45.29

)%

Three Months Ended

June 28, 2019

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

2,413,503

$

949,862

$

647,396

$

4,010,761

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)



Three Months Ended

June 26, 2020

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,067,580 $ 517,171 $ 567,502 $ 2,152,253 reported)

Effect ofCurrency 534 40,188 1,377 42,099 Translation

AdjustedRevenue $ 1,068,114 $ 557,359 $ 568,879 $ 2,194,352 (Organic)

Revenue ) ) )Growth (as (55.77 % (45.55 )% (12.34 % (46.34 %reported)

AdjustedRevenue (55.74 ) (41.32 )% (12.13 ) (45.29 )Growth % % %(Organic)



Three Months Ended

June 28, 2019

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 2,413,503 $ 949,862 $ 647,396 $ 4,010,761 reported)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)

Three Months Ended

October 2, 2020

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,429,031

$

629,021

$

634,098

$

2,692,150

Effect of Currency Translation

185

4,785

454

5,424

Estimated Impact of 53rd Week

(116,461

)

(15,858

)

(44,740

)

(177,059

)

Adjusted Revenue (Organic)

$

1,312,755

$

617,948

$

589,812

$

2,520,515

Revenue Growth (as reported)

(40.65

)%

(29.94

)%

(1.78

)%

(31.87

)%

Adjusted Revenue Growth (Organic)

(45.48

)%

(31.18

)%

(8.64

)%

(36.21

)%

Three Months Ended

September 27, 2019

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

2,407,750

$

897,894

$

645,600

$

3,951,244

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)



Three Months Ended

October 2, 2020

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,429,031 $ 629,021 $ 634,098 $ 2,692,150 reported)

Effect ofCurrency 185 4,785 454 5,424 Translation

EstimatedImpact of (116,461 ) (15,858 ) (44,740 ) (177,059 )53rd Week

AdjustedRevenue $ 1,312,755 $ 617,948 $ 589,812 $ 2,520,515 (Organic)

Revenue ) ) )Growth (as (40.65 % (29.94 )% (1.78 % (31.87 %reported)

AdjustedRevenue (45.48 ) (31.18 )% (8.64 ) (36.21 )Growth % % %(Organic)



Three Months Ended

September 27, 2019

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 2,407,750 $ 897,894 $ 645,600 $ 3,951,244 reported)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)

Three Months Ended

January 1, 2021

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,445,792

$

694,459

$

603,538

$

2,743,789

Effect of Currency Translation

(205

)

(20,736

)

(753

)

(21,694

)

Adjusted Revenue (Organic)

$

1,445,587

$

673,723

$

602,785

$

2,722,095

Revenue Growth (as reported)

(45.21

)%

(26.61

)%

(9.71

)%

(35.49

)%

Adjusted Revenue Growth (Organic)

(45.22

)%

(28.80

)%

(9.82

)%

(36.00

)%

Three Months Ended

December 27, 2019

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

2,638,960

$

946,194

$

668,443

$

4,253,597

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)



Three Months Ended

January 1, 2021

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,445,792 $ 694,459 $ 603,538 $ 2,743,789 reported)

Effect ofCurrency (205 ) (20,736 ) (753 ) (21,694 )Translation

AdjustedRevenue $ 1,445,587 $ 673,723 $ 602,785 $ 2,722,095 (Organic)

Revenue ) ) )Growth (as (45.21 % (26.61 )% (9.71 % (35.49 %reported)

AdjustedRevenue (45.22 ) (28.80 )% (9.82 ) (36.00 )Growth % % %(Organic)



Three Months Ended

December 27, 2019

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 2,638,960 $ 946,194 $ 668,443 $ 4,253,597 reported)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)

Three Months Ended

April 2, 2021

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,550,987

$

677,696

$

591,009

$

2,819,692

Effect of Currency Translation

(809

)

(42,766

)

(2,895

)

(46,470

)

Adjusted Revenue (Organic)

$

1,550,178

$

634,930

$

588,114

$

2,773,222

Revenue Growth (as reported)

(30.48

)%

(20.59

)%

(8.65

)%

(24.44

)%

Adjusted Revenue Growth (Organic)

(30.52

)%

(25.60

)%

(9.10

)%

(25.68

)%

Three Months Ended

March 27, 2020

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

2,231,107

$

853,448

$

647,004

$

3,731,559

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)



Three Months Ended

April 2, 2021

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,550,987 $ 677,696 $ 591,009 $ 2,819,692 reported)

Effect ofCurrency (809 ) (42,766 ) (2,895 ) (46,470 )Translation

AdjustedRevenue $ 1,550,178 $ 634,930 $ 588,114 $ 2,773,222 (Organic)

Revenue ) ) )Growth (as (30.48 % (20.59 )% (8.65 % (24.44 %reported)

AdjustedRevenue (30.52 ) (25.60 )% (9.10 ) (25.68 )Growth % % %(Organic)



Three Months Ended

March 27, 2020

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 2,231,107 $ 853,448 $ 647,004 $ 3,731,559 reported)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)

Three Months Ended

July 2, 2021

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,649,613

$

728,540

$

603,067

$

2,981,220

Effect of Next Level Acquisition

(23,358

)

-

-

(23,358

)

Effect of Currency Translation

(1,456

)

(67,806

)

(5,937

)

(75,199

)

Adjusted Revenue (Organic)

$

1,624,799

$

660,734

$

597,130

$

2,882,663

Revenue Growth (as reported)

54.52

%

40.87

%

6.27

%

38.52

%

Adjusted Revenue Growth (Organic)

52.19

%

27.76

%

5.22

%

33.94

%

Three Months Ended

June 26, 2020

FSS United States

FSS International

Uniform

Corporate

Aramark and Subsidiaries

Revenue (as reported)

$

1,067,580

$

517,171

$

567,502

$

2,152,253

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)



Three Months Ended

July 2, 2021

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,649,613 $ 728,540 $ 603,067 $ 2,981,220 reported)

Effect ofNext Level (23,358 ) - - (23,358 )Acquisition

Effect ofCurrency (1,456 ) (67,806 ) (5,937 ) (75,199 )Translation

AdjustedRevenue $ 1,624,799 $ 660,734 $ 597,130 $ 2,882,663 (Organic)

RevenueGrowth (as 54.52 % 40.87 % 6.27 % 38.52 %reported)

AdjustedRevenue 52.19 % 27.76 % 5.22 % 33.94 %Growth(Organic)



Three Months Ended

June 26, 2020

FSS United FSS Uniform Corporate Aramark and States International Subsidiaries

Revenue (as $ 1,067,580 $ 517,171 $ 567,502 $ 2,152,253 reported)

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED REVENUE COMPARISON TO FISCAL 2019

(Unaudited)

(In thousands)

Three Months Ended

June 26, 2020

October 2, 2020

January 1, 2021

April 2, 2021

July 2, 2021

October 1, 2021

Revenue (as reported)

$

2,152,253

$

2,692,150

$

2,743,789

$

2,819,692

$

2,981,220

$

3,551,264

Effect of Next Level Acquisition

-

-

-

-

(23,358

)

(85,557

)

Effect of Currency Translation*

42,099

5,424

11,593

1,243

(16,977

)

(13,400

)

Estimated Impact of 53rd Week

-

(177,059

)

-

-

-

-

Adjusted Revenue (Organic)

$

2,194,352

$

2,520,515

$

2,755,382

$

2,820,935

$

2,940,885

$

3,452,307

Revenue as a Percentage of Fiscal 2019 Revenue (as reported)

53.66

%

68.13

%

64.33

%

70.49

%

74.33

%

89.88

%

Adjusted Revenue as a Percentage of Fiscal 2019 Adjusted Revenue (Organic)

54.71

%

63.79

%

65.27

%

70.52

%

73.32

%

87.37

%

Three Months Ended

June 28, 2019

September 27, 2019

December 28, 2018

March 29, 2019

June 28, 2019

September 27, 2019

Revenue (as reported)

$

4,010,761

$

3,951,244

$

4,265,349

$

3,999,987

$

4,010,761

$

3,951,244

Effect of Divestitures

-

-

(43,680

)

-

-

-

Adjusted Revenue (Organic)

$

4,010,761

$

3,951,244

$

4,221,669

$

3,999,987

$

4,010,761

$

3,951,244

* For the three month periods of January 1, 2021, April 2, 2021, July 2, 2021 and October 1, 2021, the effect of currency translation reflects the impact that fluctuations in currency translation rates had on the comparative results by translating the fiscal 2021 period balances using the foreign currency exchange rates in effect for the comparable periods of fiscal 2019.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED REVENUE COMPARISON TO FISCAL 2019

(Unaudited)

(In thousands)



Three Months Ended

June 26, 2020 October 2, January 1, April 2, 2021 July 2, 2021 October 1, 2020 2021 2021

Revenue (as $ 2,152,253 $ 2,692,150 $ 2,743,789 $ 2,819,692 $ 2,981,220 $ 3,551,264 reported)

Effect ofNext Level - - - - (23,358 ) (85,557 )Acquisition

Effect ofCurrency 42,099 5,424 11,593 1,243 (16,977 ) (13,400 )Translation*

EstimatedImpact of - (177,059 ) - - - - 53rd Week

AdjustedRevenue $ 2,194,352 $ 2,520,515 $ 2,755,382 $ 2,820,935 $ 2,940,885 $ 3,452,307 (Organic)

Revenue as aPercentageof Fiscal 53.66 % 68.13 % 64.33 % 70.49 % 74.33 % 89.88 %2019 Revenue(asreported)

AdjustedRevenue as aPercentageof Fiscal 54.71 % 63.79 % 65.27 % 70.52 % 73.32 % 87.37 %2019AdjustedRevenue(Organic)



Three Months Ended

June 28, 2019 September 27, December 28, March 29, June 28, 2019 September 27, 2019 2018 2019 2019

Revenue (as $ 4,010,761 $ 3,951,244 $ 4,265,349 $ 3,999,987 $ 4,010,761 $ 3,951,244 reported)

Effect of - - (43,680 ) - - - Divestitures

AdjustedRevenue $ 4,010,761 $ 3,951,244 $ 4,221,669 $ 3,999,987 $ 4,010,761 $ 3,951,244 (Organic)



* For the three month periods of January 1, 2021, April 2, 2021, July 2, 2021and October 1, 2021, the effect of currency translation reflects the impactthat fluctuations in currency translation rates had on the comparative resultsby translating the fiscal 2021 period balances using the foreign currencyexchange rates in effect for the comparable periods of fiscal 2019.

ARAMARK AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

ADJUSTED CONSOLIDATED REVENUE

(Unaudited)

(In thousands)

Fiscal Year Ended

Six Months Ended

Six Months Ended

October 1, 2021

April 2, 2021

October 1, 2021

Revenue (as reported)

$

12,095,965

$

5,563,481

$

6,532,484

Effect of Next Level Acquisition

(108,915

)

-

(108,915

)

Effect of Currency Translation

(168,393

)

(68,164

)

(100,229

)

Adjusted Revenue (Organic)

$

11,818,657

$

5,495,317

$

6,323,340

Revenue Growth (as reported)

34.85

%

Adjusted Revenue Growth (Organic)

35.48

%

Fiscal Year Ended

Six Months Ended

Six Months Ended

October 2, 2020

March 27, 2020

October 2, 2020

Revenue (as reported)

$

12,829,559

$

7,985,156

$

4,844,403

Estimated Impact of 53rd Week

(177,059

)

-

(177,059

)

Adjusted Revenue

$

12,652,500

$

7,985,156

$

4,667,344

View source version on businesswire.com: https://www.businesswire.com/news/home/20211116005711/en/

CONTACT: Inquiries: Felise Kissell (215) 409-7287 Kissell-Felise@aramark.com

CONTACT: Scott Sullivan (215) 238-3953 Sullivan-Scott1@aramark.com