The Chefs’ Warehouse Reports Third Quarter 2024 Financial Results
The Chefs' Warehouse (NASDAQ: CHEF) reported strong Q3 2024 financial results with net sales increasing 5.6% to $931.5 million from $881.8 million in Q3 2023. The company's GAAP net income doubled to $14.1 million, or $0.34 per diluted share, compared to $7.3 million in Q3 2023. Gross profit grew 8.2% to $224.7 million, with margins expanding by 58 basis points to 24.1%. The company provided 2024 guidance projecting net sales between $3.710-3.775 billion and Adjusted EBITDA between $210-219 million.
The Chefs' Warehouse (NASDAQ: CHEF) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con vendite nette in aumento del 5,6%, raggiungendo $931,5 milioni rispetto ai $881,8 milioni del terzo trimestre del 2023. Il reddito netto GAAP dell'azienda è raddoppiato a $14,1 milioni, ovvero $0,34 per azione diluita, rispetto ai $7,3 milioni del terzo trimestre del 2023. L'utile lordo è cresciuto dell'8,2%, raggiungendo $224,7 milioni, con margini che si sono espansi di 58 punti base al 24,1%. L'azienda ha fornito previsioni per il 2024, stimando vendite nette tra $3,710 e $3,775 miliardi e un EBITDA corretto tra $210 e $219 milioni.
The Chefs' Warehouse (NASDAQ: CHEF) reportó resultados financieros sólidos en el tercer trimestre de 2024, con ventas netas que aumentaron un 5.6%, alcanzando $931.5 millones en comparación con los $881.8 millones del tercer trimestre de 2023. La ganancia neta según los principios de contabilidad generalmente aceptados (GAAP) se duplicó a $14.1 millones, o $0.34 por acción diluida, en comparación con los $7.3 millones del tercer trimestre de 2023. La utilidad bruta creció un 8.2%, alcanzando $224.7 millones, con márgenes que se expandieron en 58 puntos básicos al 24.1%. La compañía proporcionó pronósticos para 2024, proyectando ventas netas entre $3,710 y $3,775 millones y un EBITDA ajustado entre $210 y $219 millones.
The Chefs' Warehouse (NASDAQ: CHEF)는 2024년 3분기 강력한 재무 실적을 보고했으며, 순매출이 5.6% 증가하여 $931.5 백만에 달했고, 2023년 3분기의 $881.8 백만과 비교됩니다. 회사의 GAAP 순이익은 $14.1 백만으로 두 배 증가했으며, 희석된 주당 $0.34에 해당하며, 2023년 3분기의 $7.3 백만과 비교됩니다. 총 이익은 8.2% 성장하여 $224.7 백만에 도달했으며, 마진은 24.1%로 58베이시스 포인트 확장되었습니다. 회사는 2024년 매출 목표를 $3.710-3.775 억 달러로 예상하며, 조정 EBITDA는 $210-219 백만으로 전망하고 있습니다.
The Chefs' Warehouse (NASDAQ: CHEF) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des ventes nettes en augmentation de 5,6 %, atteignant $931,5 millions contre $881,8 millions au troisième trimestre 2023. Le bénéfice net selon les normes GAAP de l'entreprise a doublé pour atteindre $14,1 millions, soit $0,34 par action diluée, contre $7,3 millions au troisième trimestre 2023. Le bénéfice brut a augmenté de 8,2 %, atteignant $224,7 millions, avec des marges s'étendant de 58 points de base à 24,1 %. L'entreprise a fourni des prévisions pour 2024, projetant des ventes nettes entre $3,710 et $3,775 milliards et un EBITDA ajusté entre $210 et $219 millions.
The Chefs' Warehouse (NASDAQ: CHEF) berichtete über starke Finanzzahlen für das dritte Quartal 2024, wobei der Nettoumsatz um 5,6 % auf $931,5 Millionen von $881,8 Millionen im dritten Quartal 2023 gestiegen ist. Der GAAP-Nettogewinn des Unternehmens hat sich auf $14,1 Millionen verdoppelt, was $0,34 pro verwässerter Aktie entspricht, im Vergleich zu $7,3 Millionen im dritten Quartal 2023. Der Bruttogewinn stieg um 8,2 % auf $224,7 Millionen, wobei sich die Margen um 58 Basispunkte auf 24,1 % erweiterten. Das Unternehmen gab eine Prognose für 2024 ab, die einen Nettoumsatz zwischen $3,710 und $3,775 Milliarden und ein bereinigtes EBITDA zwischen $210 und $219 Millionen prognostiziert.
- Net sales increased 5.6% YoY to $931.5 million
- GAAP net income doubled to $14.1 million from $7.3 million YoY
- Gross profit increased 8.2% to $224.7 million with margins up 58 basis points
- Organic case count in specialty category grew 3.1%
- Operating income improved to 3.4% of net sales vs 2.9% in Q3 2023
- Selling, general and administrative expenses increased 7.4% to $192.9 million
- SG&A as percentage of net sales increased to 20.7% from 20.4% YoY
Insights
The Q3 2024 results show solid financial performance with notable improvements across key metrics. Net sales grew
Particularly encouraging is the
Operating leverage is improving, with operating income as a percentage of sales increasing to
RIDGEFIELD, Conn., Oct. 30, 2024 (GLOBE NEWSWIRE) -- The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or “Chefs’”), a premier distributor of specialty food products in the United States, the Middle East, and Canada, today reported financial results for its third quarter ended September 27, 2024.
Financial highlights for the third quarter of 2024:
- Net sales increased
5.6% to$931.5 million for the third quarter of 2024 from$881.8 million for the third quarter of 2023. - GAAP net income was
$14.1 million , or$0.34 per diluted share, for the third quarter of 2024 compared to$7.3 million , or$0.19 per diluted share, in the third quarter of 2023. - Adjusted net income per share1 was
$0.36 for the third quarter of 2024 compared to$0.33 for the third quarter of 2023. - Adjusted EBITDA1 was
$54.5 million for the third quarter of 2024 compared to$50.3 million for the third quarter of 2023.
“Business and demand trends improved sequentially through the third quarter. Continued seasonal increase in international travel among the higher income demographic led to a slightly softer season in July and early August. Customer activity accelerated into the latter half of the quarter and momentum in demand continued into October. Our operating divisions across domestic and international markets delivered strong growth in gross profit dollars and margin; as well as continued progress increasing relevance with our customer base with strong year-over-year growth in unique item placements”, said Christopher Pappas, Chairman and Chief Executive of the Company. “I would like thank the entire Chefs’ Warehouse team for their dedication and commitment to delivering our diverse and high-quality product and service in partnership with our suppliers and customers and the communities we serve.”
Third Quarter Fiscal 2024 Results
Net sales for the third quarter of 2024 increased
Gross profit increased
Selling, general and administrative expenses increased by approximately
Other operating (income) expenses, net decreased by
Operating income for the third quarter of 2024 was
Net income for the third quarter of 2024 was
Adjusted EBITDA1 was
2024 Guidance
We are providing fiscal 2024 full year financial guidance as follows:
- Net sales in the range of
$3.71 0 billion to$3.77 5 billion, - Gross profit to be between
$890.0 million and$906.0 million and - Adjusted EBITDA to be between
$210.0 million and$219.0 million .
Third Quarter 2024 Earnings Conference Call
The Company will host a conference call to discuss third quarter 2024 financial results today at 8:30 a.m. EDT. Hosting the call will be Chris Pappas, chairman and chief executive officer, and Jim Leddy, chief financial officer. The conference call will be webcast live from the Company’s investor relations website at http://investors.chefswarehouse.com. An online archive of the webcast will be available on the Company’s investor relations website.
1 EBITDA, Adjusted EBITDA, adjusted net income and adjusted net income per share are non-GAAP measures. Please see the schedules accompanying this earnings release for a reconciliation of EBITDA, Adjusted EBITDA, adjusted net income and adjusted net income per share to these measures’ most directly comparable GAAP measures.
Forward-Looking Statements
Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to the following: our success depends to a significant extent upon general economic conditions, including disposable income levels and changes in consumer discretionary spending; the relatively low margins of our business, which are sensitive to inflationary and deflationary pressures and intense competition; the effects of rising costs for and/or decreases in supply of commodities, ingredients, packaging, other raw materials, distribution and labor; crude oil prices and their impact on distribution, packaging and energy costs; our continued ability to promote our brand successfully, to anticipate and respond to new customer demands, and to develop new products and markets to compete effectively; our ability and the ability of our supply chain partners to continue to operate distribution centers and other work locations without material disruption, and to procure ingredients, packaging and other raw materials when needed despite disruptions in the supply chain or labor shortages; risks associated with the expansion of our business; our possible inability to identify new acquisitions or to integrate recent or future acquisitions, or our failure to realize anticipated revenue enhancements, cost savings or other synergies from recent or future acquisitions; other factors that affect the food industry generally, including: recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations and the possibility that customers could lose confidence in the safety and quality of certain food products; new information or attitudes regarding diet and health or adverse opinions about the health effects of the products we distribute; changes in disposable income levels and consumer purchasing habits; competitors’ pricing practices and promotional spending levels; fluctuations in the level of our customers’ inventories and credit and other related business risks; and the risks associated with third-party suppliers, including the risk that any failure by one or more of our third-party suppliers to comply with food safety or other laws and regulations may disrupt our supply of raw materials or certain products or injure our reputation; our ability to recruit and retain senior management and a highly skilled and diverse workforce; unanticipated expenses, including, without limitation, litigation or legal settlement expenses; the cost and adequacy of our insurance policies; the impact and effects of public health crises, pandemics and epidemics, such as the outbreak of COVID-19, and the adverse impact thereof on our business, financial condition, and results of operations; significant governmental regulation and any potential failure to comply with such regulations; federal, state, provincial and local tax rules in the United States and the foreign countries in which we operate, including tax reform and legislation; risks relating to our substantial indebtedness; our ability to raise additional capital and/or obtain debt or other financing, on commercially reasonable terms or at all; our ability to meet future cash requirements, including the ability to access financial markets effectively and maintain sufficient liquidity; the effects of currency movements in the jurisdictions in which we operate as compared to the U.S. dollar; changes in the method of determining Secured Overnight Financing Rate (“SOFR”), or the replacement of SOFR with an alternative rate; and the effects of international trade disputes, tariffs, quotas and other import or export restrictions on our international procurement, sales and operations. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. A more detailed description of these and other risk factors is contained in the Company’s most recent annual report on Form 10-K filed with the SEC on February 27, 2024 and other reports filed by the Company with the SEC since that date. The Company is not undertaking to update any information until required by applicable laws. Any projections of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced projections, but it is not obligated to do so.
About The Chefs’ Warehouse
The Chefs’ Warehouse, Inc. (http://www.chefswarehouse.com) is a premier distributor of specialty food products in the United States, the Middle East and Canada focused on serving the specific needs of chefs who own and/or operate some of the nation’s leading menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolateries, cruise lines, casinos and specialty food stores. The Chefs’ Warehouse, Inc. carries and distributes more than 70,000 products to more than 44,000 customer locations throughout the United States, the Middle East and Canada.
Contact:
Investor Relations
Jim Leddy, CFO, (718) 684-8415
THE CHEFS’ WAREHOUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands except share amounts and per share data) | ||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | |||||||||
Net sales | $ | 931,452 | $ | 881,825 | $ | 2,760,644 | $ | 2,483,290 | ||||
Cost of sales | 706,704 | 674,127 | 2,097,458 | 1,897,440 | ||||||||
Gross profit | 224,748 | 207,698 | 663,186 | 585,850 | ||||||||
Selling, general and administrative expenses | 192,894 | 179,614 | 578,049 | 514,793 | ||||||||
Other operating (income) expenses, net | (28 | ) | 2,535 | 3,385 | 8,269 | |||||||
Operating income | 31,882 | 25,549 | 81,752 | 62,788 | ||||||||
Interest expense | 11,743 | 11,379 | 36,677 | 33,391 | ||||||||
Income before income taxes | 20,139 | 14,170 | 45,075 | 29,397 | ||||||||
Provision for income tax expense | 6,041 | 6,848 | 13,522 | 10,807 | ||||||||
Net income | $ | 14,098 | $ | 7,322 | $ | 31,553 | $ | 18,590 | ||||
Net income per share: | ||||||||||||
Basic | $ | 0.37 | $ | 0.19 | $ | 0.83 | $ | 0.49 | ||||
Diluted | $ | 0.34 | $ | 0.19 | $ | 0.77 | $ | 0.49 | ||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 37,863,580 | 37,692,588 | 37,868,675 | 37,611,179 | ||||||||
Diluted | 45,941,315 | 45,717,496 | 45,888,029 | 39,143,774 |
THE CHEFS’ WAREHOUSE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 27, 2024 AND DECEMBER 29, 2023 (unaudited; in thousands) | |||||||
September 27, 2024 | December 29, 2023 | ||||||
Cash and cash equivalents | $ | 50,705 | $ | 49,878 | |||
Accounts receivable, net | 334,362 | 334,015 | |||||
Inventories | 336,289 | 284,528 | |||||
Prepaid expenses and other current assets | 70,958 | 62,522 | |||||
Total current assets | 792,314 | 730,943 | |||||
Property and equipment, net | 269,890 | 234,793 | |||||
Operating lease right-of-use assets | 181,689 | 192,307 | |||||
Goodwill | 356,591 | 356,021 | |||||
Intangible assets, net | 166,635 | 184,863 | |||||
Other assets | 6,507 | 6,379 | |||||
Total assets | $ | 1,773,626 | $ | 1,705,306 | |||
Accounts payable | $ | 232,153 | $ | 200,547 | |||
Accrued liabilities | 66,153 | 70,728 | |||||
Short-term operating lease liabilities | 23,045 | 24,246 | |||||
Accrued compensation | 43,046 | 37,071 | |||||
Current portion of long-term debt | 64,716 | 53,185 | |||||
Total current liabilities | 429,113 | 385,777 | |||||
Long-term debt, net of current portion | 666,558 | 664,802 | |||||
Operating lease liabilities | 174,991 | 184,034 | |||||
Deferred taxes, net | 19,829 | 14,418 | |||||
Other liabilities | 2,790 | 1,603 | |||||
Total liabilities | 1,293,281 | 1,250,634 | |||||
Common stock | 396 | 396 | |||||
Additional paid in capital | 358,647 | 356,157 | |||||
Accumulated other comprehensive loss | (2,564 | ) | (1,832 | ) | |||
Retained earnings | 123,866 | 99,951 | |||||
Stockholders’ equity | 480,345 | 454,672 | |||||
Total liabilities and stockholders’ equity | $ | 1,773,626 | $ | 1,705,306 |
THE CHEFS’ WAREHOUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THIRTY-NINE WEEKS ENDED SEPTEMBER 27, 2024 AND SEPTEMBER 29, 2023 (unaudited; in thousands) | |||||||
Thirty-Nine Weeks Ended | |||||||
September 27, 2024 | September 29, 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 31,553 | $ | 18,590 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,361 | 24,167 | |||||
Amortization of intangible assets | 18,216 | 16,924 | |||||
Provision for allowance for doubtful accounts | 8,228 | 5,216 | |||||
Deferred income tax provision | 5,416 | 3,018 | |||||
Loss on debt extinguishment | 512 | — | |||||
Stock compensation | 13,177 | 15,855 | |||||
Change in fair value of contingent earn-out liabilities | (683 | ) | 2,850 | ||||
Intangible asset impairment | — | 1,838 | |||||
Non-cash interest and other operating activities | 3,233 | 6,040 | |||||
Loss on asset disposal | |||||||
Changes in assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (8,708 | ) | (27,387 | ) | |||
Inventories | (51,786 | ) | (56,350 | ) | |||
Prepaid expenses and other current assets | (5,899 | ) | (3,460 | ) | |||
Accounts payable, accrued liabilities and accrued compensation | 40,938 | 18,740 | |||||
Other assets and liabilities | (3,501 | ) | (5,996 | ) | |||
Net cash provided by operating activities | 80,057 | 20,045 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (41,131 | ) | (35,130 | ) | |||
Cash paid for acquisitions | (315 | ) | (120,600 | ) | |||
Net cash used in investing activities | (41,446 | ) | (155,730 | ) | |||
Cash flows from financing activities: | |||||||
Payment of debt and other financing obligations | (18,500 | ) | (30,448 | ) | |||
Payment of finance leases | (5,001 | ) | (2,996 | ) | |||
Common stock repurchases | (10,004 | ) | — | ||||
Payment of deferred financing fees | — | (354 | ) | ||||
Proceeds from exercise of stock options | 55 | 55 | |||||
Surrender of shares to pay withholding taxes | (7,377 | ) | (2,134 | ) | |||
Cash paid for contingent earn-out liabilities | (3,800 | ) | (3,650 | ) | |||
Borrowings under asset based loan facility and revolving credit facilities | 6,801 | 50,000 | |||||
Net cash (used in) provided by financing activities | (37,826 | ) | 10,473 | ||||
Effect of foreign currency translation on cash and cash equivalents | 42 | (530 | ) | ||||
Net change in cash and cash equivalents | 827 | (125,742 | ) | ||||
Cash and cash equivalents at beginning of period | 49,878 | 158,800 | |||||
Cash and cash equivalents at end of period | $ | 50,705 | $ | 33,058 |
THE CHEFS’ WAREHOUSE, INC. RECONCILIATION OF GAAP NET INCOME PER SHARE (unaudited; in thousands except share amounts and per share data) | |||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||||||
Numerator: | |||||||||||
Net income | $ | 14,098 | $ | 7,322 | $ | 31,553 | $ | 18,590 | |||
Add effect of dilutive securities: | |||||||||||
Interest on convertible notes, net of tax | 1,322 | 1,369 | 3,950 | 403 | |||||||
Net income available to common shareholders | $ | 15,420 | $ | 8,691 | $ | 35,503 | $ | 18,993 | |||
Denominator: | |||||||||||
Weighted average basic common shares outstanding | 37,863,580 | 37,692,588 | 37,868,675 | 37,611,179 | |||||||
Dilutive effect of unvested common shares | 621,999 | 594,416 | 570,736 | 580,675 | |||||||
Dilutive effect of stock options and warrants | 62,919 | 37,675 | 55,801 | 54,073 | |||||||
Dilutive effect of convertible notes | 7,392,817 | 7,392,817 | 7,392,817 | 897,847 | |||||||
Weighted average diluted common shares outstanding | 45,941,315 | 45,717,496 | 45,888,029 | 39,143,774 | |||||||
Net income per share: | |||||||||||
Basic | $ | 0.37 | $ | 0.19 | $ | 0.83 | $ | 0.49 | |||
Diluted | $ | 0.34 | $ | 0.19 | $ | 0.77 | $ | 0.49 |
THE CHEFS’ WAREHOUSE, INC. RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (unaudited; in thousands) | ||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | |||||||||
Net income | $ | 14,098 | $ | 7,322 | $ | 31,553 | $ | 18,590 | ||||
Interest expense | 11,743 | 11,379 | 36,677 | 33,391 | ||||||||
Depreciation and amortization | 10,590 | 8,485 | 29,361 | 24,167 | ||||||||
Amortization of intangible assets | 5,874 | 6,468 | 18,216 | 16,924 | ||||||||
Provision for income tax expense | 6,041 | 6,848 | 13,522 | 10,807 | ||||||||
EBITDA (1) | 48,346 | 40,502 | 129,329 | 103,879 | ||||||||
Adjustments: | ||||||||||||
Stock compensation (2) | 4,423 | 5,274 | 13,177 | 15,855 | ||||||||
Other operating (income) expenses, net (3) | (28 | ) | 2,534 | 3,385 | 8,269 | |||||||
Duplicate rent (4) | 851 | 1,959 | 3,295 | 6,019 | ||||||||
Moving expenses (5) | 865 | 10 | 1,611 | 196 | ||||||||
Adjusted EBITDA (1) | $ | 54,457 | $ | 50,279 | $ | 150,797 | $ | 134,218 |
- We are presenting EBITDA and Adjusted EBITDA, which are not measurements determined in accordance with the U.S. generally accepted accounting principles, or GAAP, because we believe these measures provide additional metrics to evaluate our operations and which we believe, when considered with both our GAAP results and the reconciliation to net income, provide a more complete understanding of our business than could be obtained absent this disclosure. We use EBITDA and Adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue and cash flows from operations, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. The use of EBITDA and Adjusted EBITDA as performance measures permits a comparative assessment of our operating performance relative to our performance based upon GAAP results while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies.
- Represents non-cash stock compensation expense associated with awards of restricted shares of our common stock and stock options to our key employees and our independent directors.
- Represents non-cash changes in the fair value of contingent earn-out liabilities related to our acquisitions, non-cash charges related to asset disposals, asset impairments, including intangible asset impairment charges, certain third-party deal costs incurred in connection with our acquisitions or financing arrangements and certain other costs.
- Represents rent and occupancy costs expected to be incurred in connection with our facility consolidations while we are unable to use those facilities.
- Represents moving expenses for the consolidation and expansion of several of our distribution facilities.
THE CHEFS’ WAREHOUSE, INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (unaudited; in thousands except share amounts and per share data) | ||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | |||||||||||
Net income | $ | 14,098 | $ | 7,322 | $ | 31,553 | $ | 18,590 | ||||||
Adjustments to reconcile net income to adjusted net income (1): | ||||||||||||||
Other operating (income) expenses, net (2) | (28 | ) | 2,534 | 3,385 | 8,269 | |||||||||
Duplicate rent (3) | 851 | 1,959 | 3,295 | 6,019 | ||||||||||
Moving expenses (4) | 865 | 10 | 1,611 | 196 | ||||||||||
Debt modification and extinguishment expenses (5) | 146 | 770 | 1,287 | 1,146 | ||||||||||
Tax effect of adjustments (6) | (550 | ) | 1,112 | (2,873 | ) | (2,476 | ) | |||||||
Total adjustments | 1,284 | 6,385 | 6,705 | 13,154 | ||||||||||
Adjusted net income | $ | 15,382 | $ | 13,707 | $ | 38,258 | $ | 31,744 | ||||||
Diluted adjusted net income per common share | $ | 0.36 | $ | 0.33 | $ | 0.92 | $ | 0.79 | ||||||
Diluted shares outstanding - adjusted | 45,941,315 | 45,717,496 | 45,888,029 | 45,638,744 |
- We are presenting adjusted net income and adjusted net income per share, which are not measurements determined in accordance with U.S. generally accepted accounting principles, or GAAP, because we believe these measures provide additional metrics to evaluate our operations and which we believe, when considered with both our GAAP results and the reconciliations to net income and net income available to common stockholders, provide a more complete understanding of our business than could be obtained absent this disclosure. We use adjusted net income and adjusted net income per share, together with financial measures prepared in accordance with GAAP, such as revenue and cash flows from operations, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. The use of adjusted net income and adjusted net income per share as performance measures permits a comparative assessment of our operating performance relative to our performance based upon our GAAP results while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies.
- Represents non-cash changes in the fair value of contingent earn-out liabilities related to our acquisitions, non-cash charges related to asset disposals, asset impairments, including intangible asset impairment charges, certain third-party deal costs incurred in connection with our acquisitions or financing arrangements and certain other costs.
- Represents rent and occupancy costs expected to be incurred in connection with our facility consolidations while we are unable to use those facilities.
- Represents moving expenses for the consolidation and expansion of several of our distribution facilities.
- Represents debt modification costs, extinguishment costs and interest expense related to the write-off of certain deferred financing fees related to our credit agreements.
- Represents the adjustments to the tax provision values to a normalized annual effective tax rate on adjusted pretax earnings to
30.0% and26.0% for the third quarters and year-to-date periods of 2024 and 2023, respectively.
THE CHEFS’ WAREHOUSE, INC. RECONCILIATION OF ADJUSTED NET INCOME PER SHARE (unaudited; in thousands except share amounts and per share data) | |||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||||||
Numerator: | |||||||||||
Adjusted net income | $ | 15,382 | $ | 13,707 | $ | 38,258 | $ | 31,744 | |||
Add effect of dilutive securities: | |||||||||||
Interest on convertible notes, net of tax | 1,322 | 1,369 | 3,950 | 4,106 | |||||||
Adjusted net income available to common shareholders | $ | 16,704 | $ | 15,076 | $ | 42,208 | $ | 35,850 | |||
Denominator: | |||||||||||
Weighted average basic common shares outstanding | 37,863,580 | 37,692,588 | 37,868,675 | 37,611,179 | |||||||
Dilutive effect of unvested common shares | 621,999 | 594,416 | 570,736 | 580,675 | |||||||
Dilutive effect of stock options and warrants | 62,919 | 37,675 | 55,801 | 54,073 | |||||||
Dilutive effect of convertible notes | 7,392,817 | 7,392,817 | 7,392,817 | 7,392,817 | |||||||
Weighted average diluted common shares outstanding | 45,941,315 | 45,717,496 | 45,888,029 | 45,638,744 | |||||||
Adjusted net income per share: | |||||||||||
Diluted | $ | 0.36 | $ | 0.33 | $ | 0.92 | $ | 0.79 |
THE CHEFS’ WAREHOUSE, INC. RECONCILIATION OF ADJUSTED EBITDA GUIDANCE FOR FISCAL 2024 (unaudited; in thousands) | |||||
Low-End Guidance | High-End Guidance | ||||
Net Income: | $ | 52,000 | $ | 52,500 | |
Provision for income tax expense | 21,800 | 22,300 | |||
Depreciation & amortization | 62,000 | 65,000 | |||
Interest expense | 48,000 | 52,000 | |||
EBITDA (1) | 183,800 | 191,800 | |||
Adjustments: | |||||
Stock compensation (2) | 17,000 | 18,000 | |||
Duplicate rent (3) | 4,000 | 4,000 | |||
Other operating expenses (4) | 3,500 | 3,500 | |||
Moving expenses (5) | 1,700 | 1,700 | |||
Adjusted EBITDA (1) | $ | 210,000 | $ | 219,000 |
- We are presenting estimated EBITDA and Adjusted EBITDA for fiscal 2024, which are not measurements determined in accordance with the U.S. generally accepted accounting principles, or GAAP, because we believe these measures provide additional metrics to evaluate our currently estimated results and which we believe, when considered with both our estimated GAAP results and the reconciliation to our estimated net income, provide a more complete understanding of our business than could be obtained absent this disclosure. We use EBITDA and Adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue and cash flows from operations, to assess our historical and prospective operating performance and to enhance our understanding of our performance relative to our performance based upon GAAP results while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies.
- Represents non-cash stock compensation expense associated with awards of restricted shares of our common stock and stock options to our key employees and our independent directors.
- Represents rent and occupancy costs expected to be incurred in connection with our facility consolidations while we are unable to use those facilities.
- Represents non-cash changes in the fair value of contingent earn-out liabilities related to our acquisitions, non-cash charges related to asset disposals, asset impairments, including intangible asset impairment charges, certain third-party deal costs incurred in connection with our acquisitions or financing arrangements and certain other costs.
- Represents moving expenses for the consolidation and expansion of several of our distribution facilities.
FAQ
What was Chefs' Warehouse (CHEF) revenue in Q3 2024?
What was Chefs' Warehouse (CHEF) earnings per share in Q3 2024?