Aramark (NYSE:ARMK) Q4 2019 Earnings Conference Call - Final Transcript
Nov 19, 2019 • 08:30 am ET
Thank you. Now we will begin the question-and-answer session. [Operator Instructions] And our first question is from Kevin McVeigh from Credit Suisse.
Great, thanks so much, and congratulations. John, welcome aboard. John, I wonder if you could share with us just some initial observations in where you see the greatest opportunities given kind of just it sounds like your immediate priorities kind of elevate the hospitality and then drive the business going forward to create shareholder value.
John J. Zillmer
Yes, thank you very much. I've spent quite a bit of time in the field organization over the last several weeks. And I think what's most exciting to me is about is really about the DNA that exists in this organization, the cultural DNA is very intact and very healthy. People really love the organization, they love what they do, they love serving our customers and clients, and as a result, I think that cultural enhancement or the cultural re-engagement will come very, very rapidly. People really are excited about winning again about competing in the marketplace. I think we have extraordinary opportunities for growth across all the range of businesses that we operate. There isn't a single one where we can't compete and win and I think we're very excited by the quality of our leadership team in the field.
Got it. And then I guess just turning to Steve real quick. Steve, what kind of, as you think about 2020 and longer term, what are kind of the key measures you want to hold yourself accountable to and then ultimately the organization?
Hey, good morning, Kevin. If I start with the longer term one first, I think you should still expect us to pursue balanced improvement over the long term across multiple financial metrics, right? We know we have plenty of opportunities across our financial statements to continue to improve the results on the metrics we've talked about, revenue, profitability, cash, leverage etc, but you certainly should expect us to invest where it makes sense for us to invest for because we have a lot of opportunity and we're going to invest from a shareholder value creation perspective. Specifically on 2020, I think the moving parts, I'd have you keep track of here is, we definitely enter the year with a lot of operational momentum, we're running the print business day to day pretty well and that came through in the fourth quarter for sure where we offset a lot of incremental incentive compensation expense.
As you know, there has been a lot of effort over the last couple of years around improving productivity in the company. Those initiatives remain in place around labor and food, direct spending, those will clearly continue to benefit us, and I think we feel very good about picking up this extra $35 million or so planned synergies from AmeriPride and Avendra. There is no doubt 2020 is going to be a year of reinvestment for us on the revenue side. And so I think a lot