1. ARAMARK CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
CASH FLOW BEFORE WORKING CAPITAL AND AFTER CAPITAL EXPENDITURES (INTERNAL CASH FLOW)
(Unaudited)
(In thousands)
Internal cash flow, as defined by ARAMARK, is an internal operating metric used by management to evaluate cash flows from normal operations of our business,
excluding the impact of working capital changes and unusual gains. This metric eliminates the volatility of working capital changes which long-term investors may find
useful.
Nine Months Ended
July 1, 2005 July 2, 2004
Internal cash flow:
Net income $ 196,923 $ 178,466
Depreciation and amortization 235,962 218,106
Income taxes deferred (3,055) 21,539
Gain on real estate sale by equity affiliate (7,753) -
Net purchases of property and equipment and client contract investments (213,518) (200,002)
Internal cash flow $ 208,559 $ 218,109
Reconciliation of internal cash flow to net cash provided by operating activities:
Internal cash flow $ 208,559 $ 218,109
Gain on real estate sale by equity affiliate 7,753 -
Net purchases of property and equipment and client contract investments 213,518 200,002
Changes in noncash working capital (124,043) (138,381)
Net proceeds from sale of receivables 30,500 -
Other operating activities (26,067) (39,618)
Net cash provided by operating activities $ 310,220 $ 240,112
Net cash used in investing activities $ (303,278) $ (328,070)
Net cash provided by financing activities $ (9,941) $ 88,246
Reconciliation of net purchases of property and equipment and
client contract investments (net capital expenditures):
Purchases of property and equipment and client contract investments $ (227,040) $ (212,710)
Disposals of property and equipment 13,522 12,708
Net purchases of property and equipment and client contract investments (net capital expenditures) $ (213,518) $ (200,002)