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.
Three Months Ended %
December 31, 2004 January 2, 2004 Change
Internal cash flow:
Net income $ 72,446 $ 67,352
Depreciation and amortization 77,655 69,532
Income taxes deferred (2,635) 6,488
Net purchases of property and equipment and client contract investments (66,135) (63,625)
Internal cash flow $ 81,331 $ 79,747 2%
Reconciliation of internal cash flow to net cash used in operating activities:
Internal cash flow $ 81,331 $ 79,747
Net purchases of property and equipment and client contract investments 66,135 63,625
Changes in noncash working capital (244,949) (289,249)
Net proceeds from sale of receivables 45,000 16,300
Other operating activities (10,117) (12,839)
Net cash used in operating activities $ (62,600) $ (142,416)
Net cash used in investing activities $ (96,384) $ (59,033)
Net cash provided by financing activities $ 148,009 $ 191,093
Reconciliation of net purchases of property and equipment and
client contract investments (net capital expenditures):
Purchases of property and equipment and client contract investments $ (71,092) $ (69,389)
Disposals of property and equipment 4,957 5,764
Net purchases of property and equipment and client contract investments (net capital expenditures) $ (66,135) $ (63,625)