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. This metric eliminates the volatility of working capital changes which long-term investors may find useful.
Nine Months Ended %
July 2, 2004 June 27, 2003 Change
Internal cash flow:
Income from continuing operations $ 178,466 $ 160,077
Depreciation and amortization 218,106 192,599
Income taxes deferred 21,539 19,082
Net purchases of property and equipment and client contract investments (200,002) (173,900)
Internal cash flow $ 218,109 $ 197,858 10%
Reconciliation of internal cash flow to net cash provided by
operating activities from continuing operations:
Internal cash flow $ 218,109 $ 197,858
Net purchases of property and equipment and client contract investments 200,002 173,900
Changes in noncash working capital (138,381) (131,084)
Other operating activities (39,618) (16,590)
Net cash provided by operating activities from continuing operations $ 240,112 $ 224,084
Reconciliation of net purchases of property and equipment and
client contract investments (net capital expenditures):
Purchases of property and equipment and client contract investments $ (212,710) $ (191,838)
Disposals of property and equipment 12,708 17,938
Net purchases of property and equipment and client contract investments (net capital expenditures) $ (200,002) $ (173,900)