Aramark Services (NYSE: ARMK) reported Q2 EPS of ($0.24), $0.10 better than the analyst estimate of ($0.34). Revenue for the quarter came in at $2.8 billion versus the consensus estimate of $2.75 billion.

2021 OUTLOOK:

The 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 2021 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.

In the second half of fiscal 2021, Aramark will continue to leverage its flexible operating model, while managing the business with a cost-disciplined, long-term mindset focused on accelerated growth and margin progression. The Company believes it is well-positioned with current performance expectations as follows:

• Organic revenue improvement over the course of the fiscal year;
• Adjusted Operating Income (AOI) margin in the second half of the fiscal year in a range of 4.0% to 4.5% with incremental quarterly progression;
• Free Cash Flow raised to a range of neutral to $250 million generation for fiscal 2021, dependent on the pace of recovery and timing of underlying growth. The Company previously stated an expected range of neutral to $200 million generation. Comparatively, Free Cash Flow was a use of $188 million in fiscal 2020.

"We are encouraged by clear positive trends across our business amid the broader recovery occurring in the industries we serve," Zillmer added. "We will continue to make high-return investments in growth and service, while maintaining cost discipline. These investments have already translated into an enhanced new business pipeline, creating the opportunity for us to meaningfully accelerate growth."

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