US Foods Reports First Quarter Fiscal Year 2024 Earnings
US Foods Holding Corp. (NYSE: USFD) reported strong first quarter fiscal year 2024 earnings, with a 4.8% growth in net sales to $8.9 billion and a 4.9% increase in gross profit to $1.5 billion. The company also saw a 6% rise in adjusted EBITDA to $356 million and reaffirmed its fiscal year 2024 guidance. US Foods closed on the acquisition of IWC Food Service, expanding its presence in Tennessee. The company remains focused on strategic initiatives to enhance profitability and capture market share.
Net sales increased by 4.8% to $8.9 billion, driven by case volume growth and food cost inflation of 1.5%.
Gross profit rose by 4.9% to $1.5 billion due to increased organic case volume, improved cost of goods sold, and pricing optimization.
Adjusted EBITDA grew by 6% to $356 million, reflecting strong operational performance and strategic execution.
Operating expenses increased by 7.4% to $1.3 billion, primarily driven by higher distribution costs and labor expenses.
Cash flow provided by operating activities decreased by $140 million due to less working capital benefit compared to the prior year.
Net Debt remained at 2.8x Adjusted EBITDA, indicating a consistent leverage ratio but still showing significant debt levels.
Insights
Observing US Foods' financial performance for the first quarter of FY 2024, the company has posted an uptick in net sales to $8.9 billion, a 4.8% increase year over year and a gross profit rise of 4.9%. These are healthy signs of growth, driven by a blend of case volume growth and modest food cost inflation of 1.5%. Particularly noteworthy is the independent restaurant case volume surge of 4.6%, which could be an indicator of the company's robust market position in a competitive sector.
Adjusted EBITDA, a key metric of profitability, saw a 5.6% elevation, signaling efficient operational control amidst broader market challenges. The declaration to sustain the FY 2024 guidance suggests confidence in the current business trajectory. However, a decrease in operating cash flow and increased capital expenditures, primarily on technology and maintenance, could hint at a cautious approach to liquidity management for future quarters.
A critical takeaway from US Foods' recent performance is their strategic acquisition of IWC Food Service. This move, cementing their presence in the rapidly growing central Tennessee market, highlights the company's aggressive expansion. With IWC's $200 million in annual sales and the growth in both healthcare volume (6.4%) and hospitality volume (0.9%), US Foods may be diversifying and consolidating its position in different segments.
The company's commitment to productivity, with a 4% improvement in delivery productivity, aligns well with its long-term goal of 3-5% annual increases. This strategic operational efficiency could be a signal to investors about the company's competence to optimize costs and enhance customer service.
An intriguing aspect of US Foods' financial health is their debt management. They've managed to reduce their interest rate margins by 50 basis points on their 2021 Incremental Term Loan Facility, which reflects well on their creditworthiness and financial acumen. The maintained Net Debt to Adjusted EBITDA ratio of 2.8x is in line with industry standards and suggests a stable leverage profile. This, coupled with share repurchases, indicates the company’s confidence in its value and a shareholder-friendly capital allocation strategy.
Grew Net Sales
Net Income of
Grew Adjusted EBITDA
Closed on IWC Food Service Acquisition in April
First Quarter Fiscal 2024 Highlights
-
Net sales increased
4.8% to$8.9 billion -
Total case volume increased
4.2% ; independent restaurant case volume increased4.6% -
Gross profit increased
4.9% to$1.5 billion -
Net income available to common shareholders was
$82 million -
Adjusted EBITDA increased
5.6% to$356 million -
Diluted EPS increased
3.1% to ; Adjusted Diluted EPS increased$0.33 8.0% to$0.54
“Our results for the first quarter were in line with our expectations, demonstrating the strength of our business model and our ability to win in any environment as we overcame both internal and external headwinds to start the year. Our team remains focused on capturing profitable market share with our target customer types and driving further progress on our strategic initiatives to improve profitability. Our differentiated model and strong value proposition are resonating with our customers which has helped propel us to grow share with independent restaurants for twelve consecutive quarters,” said Dave Flitman, CEO. “We continue to make significant improvements in our operational performance as we achieved a
“We closed on our previously announced acquisition of IWC Food Service in April and are excited to welcome the team to US Foods. IWC expands our presence in the central
“We executed well in the first quarter despite the challenging start to the year by staying focused on what we can control,” added Dirk Locascio, CFO. “We continue to execute our strategy and focus on driving profitability improvement, accelerating free cash flow generation and maintaining our strong balance sheet. Given our performance for the first quarter and outlook for the full year, we are reaffirming our fiscal year 2024 guidance.”
First Quarter Fiscal 2024 Results
Net sales of
Gross profit of
Operating expenses of
Net income available to common shareholders was
Cash Flow and Debt
Cash flow provided by operating activities for the first three months of fiscal 2024 was
During the first quarter of fiscal 2024, the Company amended its loan agreement on the 2021 Incremental Term Loan Facility to lower the interest rate margins by 50 basis points and eliminate the credit spread adjustment.
Net Debt at the end of the first quarter of fiscal 2024 was
During the first quarter of fiscal 2024, the Company repurchased 0.3 million shares of common stock at an aggregate purchase price of
M&A Update
Subsequent to quarter-end, the Company closed on its previously announced acquisition of IWC Food Service, a broadline distributor which serves the greater
Outlook for Fiscal Year 20241
The Company is reaffirming its Fiscal Year 2024 guidance provided on February 15, 2024.
-
Net Sales of
to$37.5 $38.5 billion -
Adjusted EBITDA of
to$1.69 $1.74 billion -
Adjusted Diluted EPS of
to$3.00 $3.20
_______________________________ | ||
1 |
The Company is not providing a reconciliation of certain forward-looking non-GAAP financial measures, including Adjusted EBITDA and Adjusted Diluted EPS, because the Company is unable to predict with reasonable certainty the financial impact of certain significant items, including restructuring costs and asset impairment charges, share-based compensation expenses, non-cash impacts of LIFO reserve adjustments, losses on extinguishments of debt, business transformation costs, other gains and losses, business acquisition and integration related costs and diluted earnings per share. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance periods. For the same reasons, the Company is unable to address the significance of the unavailable information, which could be material to future results. |
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Conference Call and Webcast Information
US Foods will host a live webcast to discuss first quarter fiscal 2024 results on Thursday, May 9, 2024, at 8 a.m. CDT. The call can also be accessed live over the phone by dialing (877) 344-2001; the conference ID number is 2528845. Presentation slides will be available shortly before the webcast begins. The webcast, slides and a copy of this press release can be found in the Investor Relations section of our website at https://ir.usfoods.com.
About US Foods
With a promise to help its customers Make It, US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 restaurants and foodservice operators to help their businesses succeed. With more than 70 broadline locations and approximately 90 cash and carry stores, US Foods and its 30,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in
Forward-Looking Statements
Statements in this press release which are not historical in nature, including those under the heading “Outlook for Fiscal Year 2024,” are “forward-looking statements” within the meaning of the federal securities laws. These statements often include words such as “believe,” “expect,” “project,” “anticipate,” “intend,” “plan,” “outlook,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecast,” “mission,” “strive,” “more,” “goal,” or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures; the impact of climate change or related legal, regulatory or market measures; impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets; the impact of governmental regulations; product recalls and product liability claims; our reputation in the industry; labor relations and increased labor costs and continued access to qualified and diverse labor; indebtedness and restrictions under agreements governing our indebtedness; interest rate increases; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; risks associated with intellectual property, including potential infringement; effective consummation of pending acquisitions and effective integration of acquired businesses; potential costs associated with shareholder activism; changes in tax laws and regulations and resolution of tax disputes; certain provisions in our governing documents; health and safety risks to our associates and related losses; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and management of retirement benefits and pension obligations.
For a detailed discussion of these risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023 filed with the Securities and Exchange Commission (“SEC”). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC’s website at www.sec.gov. Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.
Non-GAAP Financial Measures
We report our financial results in accordance with
We use Adjusted Gross profit and Adjusted Operating expenses as supplemental measures to GAAP measures to focus on period-over-period changes in our business and believe this information is helpful to investors. Adjusted Gross profit is Gross profit adjusted to remove the impact of the LIFO inventory reserve adjustments. Adjusted Operating expenses are Operating expenses adjusted to exclude amounts that we do not consider part of our core operating results when assessing our performance.
We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide meaningful supplemental information about our operating performance because they exclude amounts that we do not consider part of our core operating results when assessing our performance. EBITDA is Net income (loss), plus Interest expense-net, Income tax provision (benefit), and Depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for (1) Restructuring costs and asset impairment charges; (2) Share-based compensation expense; (3) the non-cash impact of LIFO reserve adjustments; (4) loss on extinguishment of debt; (5) Business transformation costs; and (6) other gains, losses or costs as specified in the agreements governing our indebtedness. Adjusted EBITDA margin is Adjusted EBITDA divided by total net sales.
We use Net Debt as a supplemental measure to GAAP measures to review the liquidity of our operations. Net Debt is defined as total debt net of total Cash, cash equivalents and restricted cash remaining on the balance sheet as of the end of the most recent fiscal quarter. We believe that Net Debt is a useful financial metric to assess our ability to pursue business opportunities and investments. Net Debt is not a measure of our liquidity under GAAP and should not be considered as an alternative to Cash Flows Provided by Operations or Cash Flows Used in Financing Activities.
We believe that Adjusted Net income is a useful measure of operating performance for both management and investors because it excludes items that are not reflective of our core operating performance and provides an additional view of our operating performance including depreciation, interest expense, and Income taxes on a consistent basis from period to period. Adjusted Net income is Net income (loss) excluding such items as restructuring costs and asset impairment charges, Share-based compensation expense, the non-cash impacts of LIFO reserve adjustments, amortization expense, loss on extinguishment of debt, Business transformation costs and other items, and adjusted for the tax effect of the exclusions and discrete tax items. We believe that Adjusted Net income may be used by investors, analysts, and other interested parties to facilitate period-over-period comparisons and provides additional clarity as to how factors and trends impact our operating performance.
We use Adjusted Diluted Earnings per Share, which is calculated by adjusting the most directly comparable GAAP financial measure, Diluted Earnings per Share, by excluding the same items excluded in our calculation of Adjusted EBITDA to the extent that each such item was included in the applicable GAAP financial measure. We believe the presentation of Adjusted Diluted Earnings per Share is useful to investors because the measurement excludes amounts that we do not consider part of our core operating results when assessing our performance. We also believe that the presentation of Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Diluted Earnings per Share is useful to investors because these metrics may be used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in our industry.
Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors as they assist in highlighting trends, (b) to set internal sales targets and spending budgets, (c) to measure operational profitability and the accuracy of forecasting, (d) to assess financial discipline over operational expenditures, and (e) as an important factor in determining variable compensation for management and employees. EBITDA and Adjusted EBITDA are also used in connection with certain covenants and restricted activities under the agreements governing our indebtedness. We also believe these and similar non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties to evaluate companies in our industry.
We caution readers that our definitions of Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net Debt, Adjusted Net income and Adjusted Diluted EPS may not be calculated in the same manner as similar measures used by other companies. Definitions and reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures are included in the schedules attached to this press release.
US FOODS HOLDING CORP. |
||||||||
Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
||||
($ in millions) |
|
March 30, 2024 |
|
December 30, 2023 |
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
267 |
|
|
$ |
269 |
|
Accounts receivable, less allowances of |
|
|
1,966 |
|
|
|
1,854 |
|
Vendor receivables, less allowances of |
|
|
210 |
|
|
|
156 |
|
Inventories—net |
|
|
1,620 |
|
|
|
1,600 |
|
Prepaid expenses |
|
|
152 |
|
|
|
138 |
|
Other current assets |
|
|
19 |
|
|
|
14 |
|
Total current assets |
|
|
4,234 |
|
|
|
4,031 |
|
Property and equipment—net |
|
|
2,303 |
|
|
|
2,280 |
|
Goodwill |
|
|
5,697 |
|
|
|
5,697 |
|
Other intangibles—net |
|
|
796 |
|
|
|
803 |
|
Other assets |
|
|
360 |
|
|
|
376 |
|
Total assets |
|
$ |
13,390 |
|
|
$ |
13,187 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Cash overdraft liability |
|
$ |
198 |
|
|
$ |
220 |
|
Accounts payable |
|
|
2,273 |
|
|
|
2,051 |
|
Accrued expenses and other current liabilities |
|
|
651 |
|
|
|
731 |
|
Current portion of long-term debt |
|
|
116 |
|
|
|
110 |
|
Total current liabilities |
|
|
3,238 |
|
|
|
3,112 |
|
Long-term debt |
|
|
4,585 |
|
|
|
4,564 |
|
Deferred tax liabilities |
|
|
300 |
|
|
|
293 |
|
Other long-term liabilities |
|
|
442 |
|
|
|
469 |
|
Total liabilities |
|
|
8,565 |
|
|
|
8,438 |
|
Shareholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
3,668 |
|
|
|
3,663 |
|
Retained earnings |
|
|
1,591 |
|
|
|
1,509 |
|
Accumulated other comprehensive loss |
|
|
(113 |
) |
|
|
(115 |
) |
Treasury Stock |
|
|
(324 |
) |
|
|
(311 |
) |
Total shareholders’ equity |
|
|
4,825 |
|
|
|
4,749 |
|
Total liabilities and shareholders’ equity |
|
$ |
13,390 |
|
|
$ |
13,187 |
|
US FOODS HOLDING CORP. |
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Consolidated Statements of Operations |
|||||||
(Unaudited) |
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|
||||||
|
13 Weeks Ended |
||||||
($ in millions, except share and per share data) |
March 30, 2024 |
|
April 1, 2023 |
||||
Net sales |
$ |
8,949 |
|
|
$ |
8,542 |
|
Cost of goods sold |
|
7,454 |
|
|
|
7,117 |
|
Gross profit |
|
1,495 |
|
|
|
1,425 |
|
Distribution, selling and administrative costs |
|
1,317 |
|
|
|
1,238 |
|
Restructuring costs and asset impairment charges |
|
13 |
|
|
|
— |
|
Total operating expenses |
|
1,330 |
|
|
|
1,238 |
|
Operating income |
|
165 |
|
|
|
187 |
|
Other income—net |
|
(1 |
) |
|
|
(1 |
) |
Interest expense—net |
|
79 |
|
|
|
81 |
|
Income before income taxes |
|
87 |
|
|
|
107 |
|
Income tax provision |
|
5 |
|
|
|
25 |
|
Net income |
$ |
82 |
|
|
$ |
82 |
|
|
|
|
|
||||
Net income |
$ |
82 |
|
|
$ |
82 |
|
Series A convertible preferred stock dividends |
|
— |
|
|
|
(7 |
) |
Net income available to common shareholders |
$ |
82 |
|
|
$ |
75 |
|
|
|
|
|
||||
Net income per share |
|
|
|
||||
Basic |
$ |
0.33 |
|
|
$ |
0.33 |
|
Diluted |
$ |
0.33 |
|
|
$ |
0.32 |
|
|
|
|
|
||||
Weighted-average common shares outstanding |
|
|
|
||||
Basic |
|
245,062,815 |
|
|
|
226,253,643 |
|
Diluted |
|
248,474,916 |
|
|
|
251,787,693 |
|
|
|
|
|
US FOODS HOLDING CORP. |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
|
|
13 Weeks Ended |
||||||
($ in millions) |
|
March 30, 2024 |
|
April 1, 2023 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
82 |
|
|
$ |
82 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
105 |
|
|
|
98 |
|
Gain on disposal of property and equipment—net |
|
|
— |
|
|
|
(1 |
) |
Amortization of deferred financing costs |
|
|
3 |
|
|
|
7 |
|
Deferred tax provision |
|
|
5 |
|
|
|
5 |
|
Share-based compensation expense |
|
|
15 |
|
|
|
14 |
|
Provision for doubtful accounts |
|
|
7 |
|
|
|
10 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Increase in receivables |
|
|
(173 |
) |
|
|
(197 |
) |
Increase in inventories—net |
|
|
(20 |
) |
|
|
(9 |
) |
(Increase) decrease in prepaid expenses and other assets |
|
|
(1 |
) |
|
|
2 |
|
Increase in accounts payable and cash overdraft liability |
|
|
221 |
|
|
|
321 |
|
Decrease in accrued expenses and other liabilities |
|
|
(105 |
) |
|
|
(53 |
) |
Net cash provided by operating activities |
|
|
139 |
|
|
|
279 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from sales of property and equipment |
|
|
1 |
|
|
|
1 |
|
Purchases of property and equipment |
|
|
(87 |
) |
|
|
(61 |
) |
Net cash used in investing activities |
|
|
(86 |
) |
|
|
(60 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Principal payments on debt and financing leases |
|
|
(457 |
) |
|
|
(111 |
) |
Principal payments on debt repricing |
|
|
(14 |
) |
|
|
— |
|
Proceeds from debt repricing |
|
|
14 |
|
|
|
— |
|
Proceeds from debt borrowings |
|
|
426 |
|
|
|
13 |
|
Dividends paid on Series A convertible preferred stock |
|
|
— |
|
|
|
(7 |
) |
Repurchase of common stock |
|
|
(13 |
) |
|
|
(34 |
) |
Debt financing costs and fees |
|
|
(1 |
) |
|
|
— |
|
Proceeds from employee stock purchase plan |
|
|
5 |
|
|
|
5 |
|
Proceeds from exercise of stock options |
|
|
5 |
|
|
|
7 |
|
Tax withholding payments for net share-settled equity awards |
|
|
(20 |
) |
|
|
(11 |
) |
Net cash used in financing activities |
|
|
(55 |
) |
|
|
(138 |
) |
Net (decrease) increase in cash, and cash equivalents and restricted cash |
|
|
(2 |
) |
|
|
81 |
|
Cash, cash equivalents and restricted cash—beginning of period |
|
|
269 |
|
|
|
211 |
|
Cash, cash equivalents and restricted cash—end of period |
|
$ |
267 |
|
|
$ |
292 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Conversion of Series A Convertible Preferred Stock |
|
$ |
— |
|
|
$ |
162 |
|
Interest paid—net of amounts capitalized |
|
|
93 |
|
|
|
61 |
|
Income taxes paid—net |
|
|
5 |
|
|
|
3 |
|
Property and equipment purchases included in accounts payable |
|
|
20 |
|
|
|
17 |
|
Leased assets obtained in exchange for financing lease liabilities |
|
|
56 |
|
|
|
47 |
|
Leased assets obtained in exchange for operating lease liabilities |
|
|
7 |
|
|
|
9 |
|
Cashless exercise of stock options |
|
|
4 |
|
|
|
1 |
|
US FOODS HOLDING CORP. |
|||||||||||||||||||||
Non-GAAP Reconciliation |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
13 Weeks Ended |
|
|
|
|
|||||||||||||||
($ in millions, except share and per share data) |
|
March 30, 2024 |
|
April 1, 2023 |
|
Change |
|
% |
|||||||||||||
Net income available to common shareholders and net income margin (GAAP) |
|
$ |
82 |
|
0.9 |
% |
|
$ |
75 |
|
0.9 |
% |
|
$ |
7 |
|
|
9.3 |
% |
||
Series A Preferred Stock Dividends |
|
|
— |
|
|
|
|
(7 |
) |
|
|
|
7 |
|
|
(100.0 |
)% |
||||
Net income (GAAP) |
|
|
82 |
|
|
|
|
82 |
|
|
|
|
— |
|
|
— |
% |
||||
Interest expense—net |
|
|
79 |
|
|
|
|
81 |
|
|
|
|
(2 |
) |
|
(2.5 |
)% |
||||
Income tax provision |
|
|
5 |
|
|
|
|
25 |
|
|
|
|
(20 |
) |
|
(80.0 |
)% |
||||
Depreciation expense |
|
|
93 |
|
|
|
|
87 |
|
|
|
|
6 |
|
|
6.9 |
% |
||||
Amortization expense |
|
|
12 |
|
|
|
|
11 |
|
|
|
|
1 |
|
|
9.1 |
% |
||||
EBITDA and EBITDA margin (Non-GAAP) |
|
|
271 |
|
3.0 |
% |
|
|
286 |
|
3.3 |
% |
|
|
(15 |
) |
|
(5.2 |
)% |
||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructuring costs and asset impairment charges (1) |
|
|
13 |
|
|
|
|
— |
|
|
|
|
13 |
|
|
NM |
|
||||
Share-based compensation expense (2) |
|
|
15 |
|
|
|
|
14 |
|
|
|
|
1 |
|
|
7.1 |
% |
||||
LIFO reserve adjustment (3) |
|
|
45 |
|
|
|
|
20 |
|
|
|
|
25 |
|
|
125.0 |
% |
||||
Business transformation costs (4) |
|
|
9 |
|
|
|
|
4 |
|
|
|
|
5 |
|
|
125.0 |
% |
||||
Business acquisition and integration related costs and other (5) |
|
|
3 |
|
|
|
|
13 |
|
|
|
|
(10 |
) |
|
(76.9 |
)% |
||||
Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP) |
|
|
356 |
|
4.0 |
% |
|
|
337 |
|
3.9 |
% |
|
|
19 |
|
|
5.6 |
% |
||
Depreciation expense |
|
|
(93 |
) |
|
|
|
(87 |
) |
|
|
|
(6 |
) |
|
6.9 |
% |
||||
Interest expense—net |
|
|
(79 |
) |
|
|
|
(81 |
) |
|
|
|
2 |
|
|
(2.5 |
)% |
||||
Income tax provision, as adjusted (6) |
|
|
(50 |
) |
|
|
|
(44 |
) |
|
|
|
(6 |
) |
|
13.6 |
% |
||||
Adjusted Net Income (Non-GAAP) |
|
$ |
134 |
|
|
|
$ |
125 |
|
|
|
$ |
9 |
|
|
7.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted EPS (GAAP) |
|
$ |
0.33 |
|
|
|
$ |
0.32 |
|
|
|
$ |
0.01 |
|
|
3.1 |
% |
||||
Restructuring costs and asset impairment charges (1) |
|
|
0.05 |
|
|
|
|
— |
|
|
|
|
0.05 |
|
|
NM |
|
||||
Share-based compensation expense (2) |
|
|
0.06 |
|
|
|
|
0.06 |
|
|
|
|
— |
|
|
— |
% |
||||
LIFO reserve adjustment (3) |
|
|
0.18 |
|
|
|
|
0.08 |
|
|
|
|
0.10 |
|
|
125.0 |
% |
||||
Business transformation costs (4) |
|
|
0.04 |
|
|
|
|
0.02 |
|
|
|
|
0.02 |
|
|
100.0 |
% |
||||
Business acquisition and integration related costs and other (5) |
|
|
0.01 |
|
|
|
|
0.05 |
|
|
|
|
(0.04 |
) |
|
(80.0 |
)% |
||||
Income tax provision, as adjusted (6) |
|
|
(0.13 |
) |
|
|
|
(0.03 |
) |
|
|
|
(0.10 |
) |
|
NM |
|
||||
Adjusted Diluted EPS (Non-GAAP) (7) |
|
$ |
0.54 |
|
|
|
$ |
0.50 |
|
|
|
$ |
0.04 |
|
|
8.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted-average diluted shares outstanding (Non-GAAP) (8) |
|
|
248,474,916 |
|
|
|
|
251,787,693 |
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit (GAAP) |
|
$ |
1,495 |
|
|
|
$ |
1,425 |
|
|
|
$ |
70 |
|
|
4.9 |
% |
||||
LIFO reserve adjustment (3) |
|
|
45 |
|
|
|
|
20 |
|
|
|
|
25 |
|
|
125.0 |
% |
||||
Adjusted Gross profit (Non-GAAP) |
|
$ |
1,540 |
|
|
|
$ |
1,445 |
|
|
|
$ |
95 |
|
|
6.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating expenses (GAAP) |
|
$ |
1,330 |
|
|
|
$ |
1,238 |
|
|
|
$ |
92 |
|
|
7.4 |
% |
||||
Depreciation expense |
|
|
(93 |
) |
|
|
|
(87 |
) |
|
|
|
(6 |
) |
|
6.9 |
% |
||||
Amortization expense |
|
|
(12 |
) |
|
|
|
(11 |
) |
|
|
|
(1 |
) |
|
9.1 |
% |
||||
Restructuring costs and asset impairment charges (1) |
|
|
(13 |
) |
|
|
|
— |
|
|
|
|
(13 |
) |
|
NM |
|
||||
Share-based compensation expense (2) |
|
|
(15 |
) |
|
|
|
(14 |
) |
|
|
|
(1 |
) |
|
7.1 |
% |
||||
Business transformation costs (4) |
|
|
(9 |
) |
|
|
|
(4 |
) |
|
|
|
(5 |
) |
|
125.0 |
% |
||||
Business acquisition and integration related costs and other (5) |
|
|
(3 |
) |
|
|
|
(13 |
) |
|
|
|
10 |
|
|
(76.9 |
)% |
||||
Adjusted Operating expenses (Non-GAAP) |
|
$ |
1,185 |
|
|
|
$ |
1,109 |
|
|
|
$ |
76 |
|
|
6.9 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
NM - Not Meaningful |
||
(1) |
Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. |
|
(2) |
Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. |
|
(3) |
Represents the impact of LIFO reserve adjustments. |
|
(4) |
Transformation costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable construction or technology. For the 13 weeks ended March 30, 2024, business transformation costs related to projects associated with information technology and workforce efficiency initiatives. For the 13 weeks ended April 1, 2023, business transformation costs related to projects associated with several supply chain strategy initiatives. |
|
(5) |
Includes: (i) aggregate acquisition and integration related costs of |
|
(6) |
Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted net income and the removal of applicable discrete tax items. Applicable discrete tax items include changes in tax laws or rates, changes related to prior year unrecognized tax benefits, discrete changes in valuation allowances, and excess tax benefits associated with share-based compensation. The tax effect of pre-tax items excluded from Adjusted net income is computed using a statutory tax rate after taking into account the impact of permanent differences and valuation allowances. |
|
(7) |
Adjusted Diluted EPS is calculated as Adjusted net income divided by weighted average diluted shares outstanding (Non-GAAP). |
|
(8) |
For purposes of the Adjusted Diluted EPS calculation (Non-GAAP), when the Company has net income (GAAP), weighted average diluted shares outstanding (Non-GAAP) is used and assumes conversion of the Series A convertible preferred stock, and, when the Company has net loss (GAAP) and assumed conversion of the Series A convertible preferred stock would be antidilutive, weighted-average diluted shares outstanding (GAAP) is used. |
|
US FOODS HOLDING CORP. |
||||||||||||
Non-GAAP Reconciliation |
||||||||||||
Net Debt and Net Leverage Ratios |
||||||||||||
|
||||||||||||
|
|
|
|
|
|
|
||||||
($ in millions, except ratios) |
|
March 30, 2024 |
|
December 30, 2023 |
|
April 1, 2023 |
||||||
Total Debt (GAAP) |
|
$ |
4,701 |
|
|
$ |
4,674 |
|
|
$ |
4,810 |
|
Cash, cash equivalents and restricted cash |
|
|
(267 |
) |
|
|
(269 |
) |
|
|
(292 |
) |
Net Debt (Non-GAAP) |
|
$ |
4,434 |
|
|
$ |
4,405 |
|
|
$ |
4,518 |
|
Adjusted EBITDA (1) |
|
$ |
1,578 |
|
|
$ |
1,559 |
|
|
$ |
1,406 |
|
Net Leverage Ratio (2) |
|
|
2.8 |
|
|
|
2.8 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
||||||
(1) Trailing Twelve Months (TTM) Adjusted EBITDA |
||||||||||||
(2) Net Debt/TTM Adjusted EBITDA |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508124131/en/
INVESTOR CONTACT:
Mike Neese
(847) 232-5894
Michael.Neese@usfoods.com
MEDIA CONTACT:
Sara Matheu
(773) 580-3775
Sara.Matheu@usfoods.com
Source: US Foods
FAQ
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