Aramark (ARMK) has reported 5.72 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $70.15 million, or $0.28 a share in the quarter, compared with $66.35 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $113.39 million, or $0.45 a share compared with $95.76 million or $0.39 a share, a year ago. Revenue during the quarter went up marginally by 1.31 percent to $3,621.63 million from $3,574.82 million in the previous year period. Gross margin for the quarter expanded 71 basis points over the previous year period to 10.92 percent. Total expenses were 94.71 percent of quarterly revenues, down from 95.19 percent for the same period last year. This has led to an improvement of 47 basis points in operating margin to 5.29 percent.
Operating income for the quarter was $191.42 million, compared with $172.11 million in the previous year period.
However, the adjusted operating income for the quarter stood at $231.43 million compared to $220.39 million in the prior year period. At the same time, adjusted operating margin improved 23 basis points in the quarter to 6.39 percent from 6.17 percent in the last year period.
“We delivered another quarter of strong performance, as we continue to execute on our focused strategy,” said Eric J. Foss, Chairman, President and Chief executive officer. "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."
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.90 to $2 on adjusted basis.
Operating cash flow improves significantly
Aramark has generated cash of $428.20 million from operating activities during the first half, up 70.28 percent or $176.74 million, when compared with the last year period. The company has spent $276 million cash to meet investing activities during the first six months as against cash outgo of $289.33 million in the last year period.
The company has spent $159.30 million cash to carry out financing activities during the first six months as against cash inflow of $63.18 million in the last year period.
Cash and cash equivalents stood at stood at $145.48 million as at Mar. 31, 2017.
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