Aramark Reports Second Quarter 2017 Earnings and Increases 2017 Outlook

PHILADELPHIA, May 9, 2017

"We delivered another quarter of strong performance, as we continue to execute on our focused strategy," said Eric J. Foss, Chairman, President and CEO.  "Our reinvestments to drive growth, enhance quality and optimize productivity are generating solid returns as we consistently raise the bar to create a consumer-centric product portfolio and deliver a great customer experience."

Foss also noted: "I am pleased to announce that we have completed a significant refinancing, which improved our financial flexibility and lowered future interest expense.  Based on the outcome of this refinancing, as well as our continued confidence in our operational performance, we are increasing our full-year outlook."

¹ Constant Currency

SECOND QUARTER RESULTS*

	Sales ARIVA.DE Börsen-Geflüster Kurse Aramark Holdings 30,40 € 0,00%
	Q2 '17	Q2 '16	Change	Organic Change
FSS North America	$2,560M	$2,520M	2%	1%
FSS International	674	664	2%	6%
Uniform & Career Apparel	388	391	(0.8%)	(0.8%)
Total Company	$3,622M	$3,575M	1%	2%

* May not total due to rounding.

Consolidated revenues were $3.6 billion in the quarter, an organic increase of 2% over the prior-year period.  The North America segment was positively impacted by growth in Sports, Leisure and Corrections, Business & Industry and Education.  The International segment delivered strong, broad-based organic growth, while Uniform sales were down modestly as expected.

The Company delivered strong, broad-based productivity improvements in North America and International base accounts, while also reinvesting in technology and capabilities.  Uniform income was comparable to the prior-year period.

SECOND QUARTER SUMMARY
On a GAAP basis, sales were $3.6 billion, operating income was $191 million, net income attributable to Aramark stockholders was $70 million and diluted earnings per share were $0.28.  This compares to the second quarter of 2016 where, on a GAAP basis, sales were $3.6 billion, operating income was $172 million, net income attributable to Aramark stockholders was $66 million and diluted earnings per share were $0.27.  Second quarter GAAP diluted earnings per share increased 4% year-over-year.

Adjusted net income was $113 million or $0.45 per share, versus adjusted net income of $96 million or $0.39 per share in the second quarter of 2016.  A stronger U.S. dollar decreased sales by approximately $22 million, but had no material impact on operating income or earnings per share.

CAPITAL STRUCTURE & LIQUIDITY
During the quarter, the Company refinanced approximately $3.5 billion of debt, which extended maturities, improved financial flexibility and lowered expected future interest expense.  The Company also increased its revolving credit facility to $1.0 billion in capacity.

Total trailing 12-month net debt to covenant adjusted EBITDA was 3.7x, a 30 basis point reduction versus the prior year measurement.  Corporate liquidity remains strong, and at quarter-end the company had approximately $1.1 billion in cash and availability on its revolving credit facility.

SHARE REPURCHASE
During the quarter, the company repurchased 2.8 million shares of Aramark common stock for an aggregate amount of $100 million.  The total remaining share repurchase authorization through the end of 2018 is $150 million.

2017 OUTLOOK
The Company provides its expectations for full-year adjusted EPS and full-year 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 Company's outlook for 2017 adjusted EPS increased by five cents to a range of $1.90 to $2.00 per share, which includes 2 cents of currency headwind.  This improved outlook is due to lower interest and tax-related expenses.

The Company continues to expect full-year free cash flow of greater than $350 million.

CONFERENCE CALL SCHEDULED
The Company has scheduled a conference call at 10 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 Aramark
Aramark (NYSE: ARMK) proudly serves Fortune 500 companies, world champion sports teams, state-of-the-art healthcare providers, the world's leading educational institutions, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world.  Our 270,000 team members deliver experiences that enrich and nourish millions of lives every day through innovative services in food, facilities management and uniforms. We operate our business with social responsibility, focusing on initiatives that support our diverse workforce, advance consumer health and wellness, protect our environment, and strengthen our communities.  Aramark is recognized as one of the World's Most Admired Companies by FORTUNE, rated number one among Diversified Outsourcing Companies, as well as an employer of choice by the Human Rights Campaign and DiversityInc. Learn more at www.aramark.com or connect with us on Facebook and Twitter.

Selected Operational and Financial Metrics

Adjusted Sales (Organic)
Adjusted Sales (Organic) represents sales growth, adjusted to eliminate the effects of material acquisitions and divestitures and the impact of currency translation.

Adjusted Operating Income
Adjusted Operating Income represents operating income adjusted to eliminate the change in amortization of acquisition-related customer relationship intangible assets and depreciation of property and equipment resulting from the going-private transaction in 2007 (the "2007 LBO"); the impact of the change in fair value related to certain gasoline and diesel agreements; severance and other charges; share-based compensation; the effects of material acquisitions and divestitures and other items impacting comparability.

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

Covenant Adjusted EBITDA
Covenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest and other financing costs, net; provision (benefit) 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.

Adjusted Net Income
Adjusted Net Income represents net income attributable to Aramark stockholders adjusted to eliminate the change in amortization of acquisition-related customer relationship intangible assets and depreciation of property and equipment resulting from the 2007 LBO; the impact of changes in the fair value related to certain gasoline and diesel agreements; severance and other charges; share-based compensation; the effects of material acquisitions and divestitures and other items impacting comparability, less the tax impact of these adjustments. The tax effect for adjusted net income for our U.S. earnings is calculated using a blended U.S. federal and state tax rate. The tax effect for adjusted net income in jurisdictions outside the U.S. is calculated at the local country tax rate.

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