Aramark (NYSE:ARMK) Q4 2019 Earnings Conference Call - Final Transcript

Nov 19, 2019 • 08:30 am ET


Aramark (NYSE:ARMK) Q4 2019 Earnings Conference Call - Final Transcript


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Steve Bramlage

AmeriPride integrations, of which a significant amount is going to be reinvested to propel longer-term US growth and pursue opportunities for shareholder value creation. The pace and the scale of these investments will be determined by John and the Board in the months ahead.

Free cash flow generation should be at least $600 million, and net debt to covenant adjusted EBITDA of between 3.5 times to 3.6 times by the end of the fiscal year. We remain extremely optimistic about our industry's long-term outsourcing prospects and Aramark's future opportunities to create value.

With that, I'll turn the call back over to John for his key takeaways before we take your questions. John?

John J. Zillmer

Thanks, Steve. While still early, it is clear to me that there is a significant runway to drive the business forward in a way that unlocks meaningful value for all of our shareholders. My immediate priority is to nurture our hospitality culture and entrepreneurial spirit with our employees that solidifies the foundation for our accelerated growth strategies. While the overall performance that Steve just reviewed was admirable, most notably, international, sports, and business dining, we have an immediate opportunity to further support education as well as our other businesses. Our areas of focus will center on placing additional field-based resources to support new account sales efforts and client retention, enhancing our product and service offerings that appeal to broader audiences and value-added innovation and technology that improves productivity while appropriately servicing our clients' needs.

As an example, we will be working with our clients where appropriate to utilize enable our trademark and proprietary cloud-based platform that effectively streamlines our food production process, allowing our teams to spend more time solving for student and other customer preferences. Our diverse portfolio affords us the flexibility to activate this target approach, while simultaneously propelling the business. I'm confident that our plans will drive future success and we will continue to update you on our progress as we go.

Before we take questions, I want to thank our 280,000 employees around the world for their dedicated service to the Company, and our client partners. I look forward to meeting all of you as we work together to write the next chapter for this iconic company. Thank you.