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.
Six Months Ended %
April 2, 2004 March 28, 2003 Change
Internal cash flow:
Income from continuing operations $ 114,006 $ 96,226
Depreciation and amortization 143,325 126,436
Income taxes deferred 15,920 11,690
Net purchases of property and equipment and client contract investments (129,863) (106,808)
Internal cash flow $ 143,388 $ 127,544 12%
Reconciliation of internal cash flow to net cash provided by (used in)
operating activities from continuing operations:
Internal cash flow $ 143,388 $ 127,544
Net purchases of property and equipment and client contract investments 129,863 106,808
Changes in noncash working capital (153,480) (164,134)
Net proceeds from sale of receivables 10,800 -
Other operating activities (23,704) (11,715)
Net cash provided by (used in) operating activities from continuing operations $ 106,867 $ 58,503
Reconciliation of net purchases of property
and equipment:
Purchases of property and equipment and client contract investments $ (138,023) $ (121,642)
Disposals of property and equipment 8,160 14,834
Net purchases of property and equipment and client contract investments $ (129,863) $ (106,808)