US Foods Reports Fourth Quarter and Fiscal Year 2020 Earnings
US Foods Holding Corp. (USFD) reported a challenging fourth quarter and fiscal year 2020, impacted by the COVID-19 pandemic. Total case volume decreased by 10.2% in Q4 and 11.0% for the year, with net sales dropping 11.5% to $6.1 billion in Q4 and 11.8% to $22.9 billion for the year. Gross profit also declined, falling 18.5% to $1.0 billion in Q4 and 18.9% to $3.7 billion for the year. Despite a net loss of $23 million in Q4 and $254 million for the year, the company noted improvements in sales and Adjusted EBITDA in the latter half of 2020, partly due to acquisitions. However, guidance for fiscal 2021 remains uncertain.
- Improved net sales and Adjusted EBITDA in the second half of 2020 due to industry rebounds and market share gains.
- Smart Foodservice acquisition contributed $275 million to net sales in Q4 2020.
- Actions taken for cost reduction helped decrease operating expenses by 6.9% in Q4 and 2.4% for the year.
- Total case volume decreased 10.2% in Q4 and 11.0% for fiscal year 2020.
- Net sales declined by 11.5% in Q4 and 11.8% for the fiscal year.
- Adjusted EBITDA fell 48.1% in Q4 and 45.7% for the fiscal year.
- Net loss available to common shareholders was $23 million in Q4 and $254 million for the fiscal year.
US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced results for the fourth quarter and full fiscal year 2020. The fourth quarter of fiscal year 2020 included 14 weeks compared to 13 weeks for the fourth quarter of fiscal year 2019, and the full fiscal year 2020 included 53 weeks compared to 52 weeks in the full fiscal year 2019. Certain financial results in this press release have been presented excluding the "extra week" in the fourth quarter and fiscal year 2020 in an effort to provide comparable results on a year-over-year basis. Organic financial results exclude contributions from Smart Foodservice, which was acquired on April 24, 2020. For the Food Group, which was acquired on Sept. 13, 2019, organic financial results include contributions for the Sept. 14, 2020, through Jan. 2, 2021, time period only.
Fourth Quarter Fiscal 2020 Highlights
-
Total case volume decreased
10.2% ; independent restaurant case volume decreased6.0% . Excluding the extra week, total case volume decreased15.5% and independent restaurant case volume decreased11.8% . -
Total organic case volume decreased
15.4% ; independent restaurant organic case volume decreased13.1% . Excluding the extra week, total organic case volume decreased20.4% and organic independent restaurant case volume decreased18.5% . -
Net sales decreased
11.5% to$6.1 billion . -
Gross profit decreased
18.5% to$1.0 billion . -
Net loss available to common shareholders was
$23 million . -
Adjusted EBITDA decreased
48.1% to$174 million . The extra week contributed approximately$8 million to Adjusted EBITDA. -
Diluted EPS loss was
$0.11 ; Adjusted Diluted EPS was$0.05 .
Fiscal Year 2020 Highlights
-
Total case volume decreased
11.0% ; independent restaurant case volume decreased11.2% . Excluding the extra week, total case volume decreased12.5% and independent restaurant case volume decreased12.7% . -
Total organic case volume decreased
21.3% ; independent restaurant organic case volume decreased20.8% . Excluding the extra week, total organic case volume decreased22.6% and organic independent restaurant case volume decreased22.2% . -
Net sales decreased
11.8% to$22.9 billion . -
Gross profit decreased
18.9% to$3.7 billion . -
Net loss available to common shareholders was
$254 million . -
Adjusted EBITDA decreased
45.7% to$648 million . -
Diluted EPS loss was
$1.15 ; Adjusted Diluted EPS was$0.09 .
CEO Perspective
“Our industry, our customers and our company faced many challenges in 2020 from the spread of COVID-19,” said Chairman and CEO Pietro Satriano. “We took quick and decisive action in the first half of 2020 to ensure the safety of our associates, support our customers, strengthen liquidity and reduce our operating costs. Net sales and Adjusted EBITDA improved in the second half of 2020; a result of industry rebounds, market share gains and a continued focus on operational efficiencies. While the timing of the recovery remains uncertain, we remain confident in the resiliency of the industry and believe that the actions we have taken in 2020 have positioned the company well for future growth."
Fourth Quarter Fiscal 2020 Results
Total case volume decreased
Gross profit of
Operating expenses of
Net loss available to common shareholders was
Fiscal Year 2020 Results
Total case volume decreased
Gross profit of
Operating expenses of
Net loss available to common shareholders was
Cash Flow and Capital Transactions
Net cash provided by operating activities for fiscal 2020 was
Total Debt at the end of fiscal year 2020 was
Outlook for Fiscal Year 2021
Due to the continued uncertainty associated with COVID-19 and the timing of a recovery, the company is not providing financial guidance for fiscal 2021.
Conference Call and Webcast Information
US Foods' will host a live webcast to discuss fourth quarter and fiscal year 2020 results on February 16, 2021 at 9 a.m. CST. The call can also be accessed live over the phone by dialing (844) 292-0976; the conference ID number is 8790319.
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
US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 300,000 restaurants and foodservice operators to help their businesses succeed. With 70 broadline locations and 78 cash and carry stores, US Foods 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 Rosemont, Ill. Visit www.usfoods.com to learn more.
Forward-Looking Statements
Statements in this press release which are not historical in nature 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 those 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 factors that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: any declines in the consumption of food prepared away from home; the extent and duration of the negative impact of the COVID-19 pandemic on us and our customers; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; risks related to our indebtedness, including our substantial amount of debt, our ability to incur substantially more debt, our potential inability to generate sufficient cash flows to service our debt and increases in our interest rates; restrictions and limitations placed on us by our agreements and instruments governing our debt; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; effective integration of acquired businesses; achievement of expected benefits from cost savings initiatives; increases in fuel costs; economic factors affecting consumer confidence and discretionary spending; changes in consumer eating habits; our reputation in the industry; labor relations and costs and continued access to qualified and diverse labor; cost and pricing structures; changes in tax laws and regulations and resolution of tax disputes; environmental, health and safety and other governmental regulation, including actions taken by national, state and local governments to contain the COVID-19 pandemic, such as travel restrictions or bans, social distancing requirements, and required closures of non-essential businesses; product recalls and product liability claims; adverse judgments or settlements resulting from litigation; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; management of retirement benefits and pension obligations; extreme weather conditions, natural disasters and other catastrophic events, including pandemics and the rapid spread of contagious illnesses; and risks associated with intellectual property, including potential infringement.
For a detailed discussion of these risks, uncertainties and other factors, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019, which was filed with the Securities and Exchange Commission (SEC) on February 13, 2020, and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 26, 2020, which was filed with the SEC on November 2, 2020. The forward-looking statements contained in this press release speak only as of the date of this press release. 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 U.S. generally accepted accounting principles (“GAAP”). However, Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Net Debt, Adjusted Net (loss) income available to common shareholders and Adjusted Diluted EPS are non-GAAP financial measures regarding our operational performance and liquidity. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP.
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 changes. 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, as well other items specified in the agreements governing our indebtedness.
We believe EBITDA and Adjusted EBITDA 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 (loss) income, plus Interest expense-net, Income tax (benefit) provision, and Depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for (1) Restructuring costs and asset impairments; (2) Share-based compensation expense; (3) the non-cash impact of LIFO reserve adjustments; (4) Business transformation costs; and (5) other gains, losses or charges as specified in the agreements governing our indebtedness.
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 (loss) income available to common shareholders 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 (loss) income available to common shareholders is Net (loss) income excluding such items as Restructuring benefits and costs, asset impairments, Share-based compensation expense, the non-cash impacts of LIFO reserve adjustments, Business transformation costs (costs associated with the redesign of systems and processes), and other items, and adjusted for the tax effect of the exclusions and discrete tax items. Prior period amounts have been revised to conform with the current year presentation. We believe that Adjusted Net (loss) income available to common shareholders 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 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, Net Debt, Adjusted Net (loss) income available to common shareholders 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) |
|
January 2,
|
|
December 28,
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
828 |
|
|
$ |
90 |
|
Accounts receivable, less allowances of |
|
1,084 |
|
|
1,455 |
|
||
Vendor receivables, less allowances of |
|
121 |
|
|
143 |
|
||
Inventories—net |
|
1,273 |
|
|
1,432 |
|
||
Prepaid expenses |
|
132 |
|
|
109 |
|
||
Assets held for sale |
|
1 |
|
|
1 |
|
||
Other current assets |
|
26 |
|
|
32 |
|
||
Total current assets |
|
3,465 |
|
|
3,262 |
|
||
Property and equipment—net |
|
2,021 |
|
|
2,075 |
|
||
Goodwill |
|
5,637 |
|
|
4,728 |
|
||
Other intangibles—net |
|
892 |
|
|
967 |
|
||
Deferred tax assets |
|
1 |
|
|
— |
|
||
Other assets |
|
407 |
|
|
256 |
|
||
Total assets |
|
$ |
12,423 |
|
|
$ |
11,288 |
|
|
|
|
|
|
||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Cash overdraft liability |
|
$ |
136 |
|
|
$ |
222 |
|
Accounts payable |
|
1,218 |
|
|
1,460 |
|
||
Accrued expenses and other current liabilities |
|
497 |
|
|
538 |
|
||
Current portion of long-term debt |
|
131 |
|
|
142 |
|
||
Total current liabilities |
|
1,982 |
|
|
2,362 |
|
||
Long-term debt |
|
5,617 |
|
|
4,594 |
|
||
Deferred tax liabilities |
|
270 |
|
|
308 |
|
||
Other long-term liabilities |
|
505 |
|
|
315 |
|
||
Total liabilities |
|
8,374 |
|
|
7,579 |
|
||
Mezzanine equity: |
|
|
|
|
||||
Series A convertible preferred stock |
|
519 |
|
|
— |
|
||
Shareholders' equity: |
|
|
|
|
||||
Common stock |
|
2 |
|
|
2 |
|
||
Additional paid-in capital |
|
2,901 |
|
|
2,845 |
|
||
Retained earnings |
|
661 |
|
|
916 |
|
||
Accumulated other comprehensive loss |
|
(34) |
|
|
(54) |
|
||
Total shareholders’ equity |
|
3,530 |
|
|
3,709 |
|
||
Total liabilities and shareholders' equity |
|
$ |
12,423 |
|
|
$ |
11,288 |
|
US FOODS HOLDING CORP. Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
|
|
For the quarter ended |
|
For the year ended |
||||||||||||
($ in millions, except share and per share data) |
|
January 2,
|
|
December 28,
|
|
January 2,
|
|
December 28,
|
||||||||
Net sales |
|
$ |
6,138 |
|
|
$ |
6,934 |
|
|
$ |
22,885 |
|
|
$ |
25,939 |
|
Cost of goods sold |
|
5,130 |
|
|
5,697 |
|
|
19,166 |
|
|
21,352 |
|
||||
Gross profit |
|
1,008 |
|
|
1,237 |
|
|
3,719 |
|
|
4,587 |
|
||||
Distribution, selling and administrative costs |
|
978 |
|
|
1,051 |
|
|
3,757 |
|
|
3,888 |
|
||||
Restructuring costs and asset impairment charges |
|
— |
|
|
— |
|
|
39 |
|
|
— |
|
||||
Total operating expenses |
|
978 |
|
|
1,051 |
|
|
3,796 |
|
|
3,888 |
|
||||
Operating income (loss) |
|
30 |
|
|
186 |
|
|
(77) |
|
|
699 |
|
||||
Other (income) expense—net |
|
(5) |
|
|
7 |
|
|
(21) |
|
|
4 |
|
||||
Interest expense—net |
|
60 |
|
|
57 |
|
|
238 |
|
|
184 |
|
||||
(Loss) income from continuing operations before income taxes |
|
(25) |
|
|
122 |
|
|
(294) |
|
|
511 |
|
||||
Income tax provision |
|
(15) |
|
|
29 |
|
|
(68) |
|
|
126 |
|
||||
(Loss) income from continuing operations |
|
(10) |
|
|
93 |
|
|
(226) |
|
|
385 |
|
||||
Loss from discontinued operations—net of tax |
|
— |
|
|
(1) |
|
|
— |
|
|
— |
|
||||
Net (loss) income |
|
$ |
(10) |
|
|
$ |
92 |
|
|
$ |
(226) |
|
|
$ |
385 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
|
(10) |
|
|
92 |
|
|
(226) |
|
|
385 |
|
||||
Series A convertible preferred stock dividends |
|
13 |
|
|
— |
|
|
28 |
|
|
— |
|
||||
Net (loss) income available to common shareholders |
|
(23) |
|
|
92 |
|
|
(254) |
|
|
385 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share—basic |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
(0.11) |
|
|
$ |
0.43 |
|
|
$ |
(1.15) |
|
|
$ |
1.77 |
|
Discontinued operations |
|
— |
|
|
(0.01) |
|
|
— |
|
|
— |
|
||||
Net (loss) income per share |
|
$ |
(0.11) |
|
|
$ |
0.42 |
|
|
$ |
(1.15) |
|
|
$ |
1.77 |
|
Net (loss) income per share—diluted |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
(0.11) |
|
|
$ |
0.43 |
|
|
$ |
(1.15) |
|
|
$ |
1.75 |
|
|
Discontinued operations |
|
— |
|
|
(0.01) |
|
|
— |
|
|
— |
|
||||
Net (loss) income per share |
|
$ |
(0.11) |
|
|
$ |
0.42 |
|
|
$ |
(1.15) |
|
|
$ |
1.75 |
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
220,373,388 |
|
|
218,803,641 |
|
|
219,838,120 |
|
|
218,095,650 |
|
||||
Diluted |
|
220,373,388 |
|
|
220,344,293 |
|
|
219,838,120 |
|
|
219,534,622 |
|
||||
US FOODS HOLDING CORP. Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
For the year ended |
||||||
($ in millions) |
January 2,
|
December 28,
|
||||||
Cash Flows From Operating Activities: |
|
|
|
|
||||
Net (loss) income |
|
$ |
(226) |
|
|
$ |
385 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
422 |
|
|
362 |
|
||
Gain on disposal of property and equipment—net |
|
(17) |
|
|
(1) |
|
||
Tangible asset impairment charges |
|
3 |
|
|
1 |
|
||
Intangible asset impairment charges |
|
9 |
|
|
— |
|
||
Amortization of deferred financing costs |
|
16 |
|
|
7 |
|
||
Deferred tax (benefit) provision |
|
(51) |
|
|
7 |
|
||
Share-based compensation expense |
|
40 |
|
|
32 |
|
||
Provision for doubtful accounts |
|
63 |
|
|
21 |
|
||
Changes in operating assets and liabilities, net of business acquisitions: |
|
|
|
|
||||
Decrease (increase) in receivables |
|
334 |
|
|
(19) |
|
||
Decrease in inventories |
|
201 |
|
|
16 |
|
||
(Increase) decrease prepaid expenses and other assets |
|
(30) |
|
|
9 |
|
||
Decrease in accounts payable and cash overdraft liability |
|
(339) |
|
|
(56) |
|
||
Decrease in accrued expenses and other liabilities |
|
(12) |
|
|
(4) |
|
||
Net cash provided by operating activities |
|
413 |
|
|
760 |
|
||
Cash Flows From Investing Activities: |
|
|
|
|
||||
Acquisition of businesses—net of cash |
|
(972) |
|
|
(1,832) |
|
||
Proceeds from sales of divested assets |
|
7 |
|
|
94 |
|
||
Proceeds from sales of property and equipment |
|
44 |
|
|
9 |
|
||
Purchases of property and equipment |
|
(189) |
|
|
(258) |
|
||
Net cash used in investing activities |
|
(1,110) |
|
|
(1,987) |
|
||
Cash Flows From Financing Activities: |
|
|
|
|
||||
Proceeds from debt borrowings |
|
3,645 |
|
|
6,198 |
|
||
Principal payments on debt and financing leases |
|
(2,692) |
|
|
(4,967) |
|
||
Net proceeds from issuance of Series A convertible preferred stock |
|
491 |
|
|
— |
|
||
Payment for debt financing costs and fees |
|
(33) |
|
|
(44) |
|
||
Proceeds from employee stock purchase plan |
|
18 |
|
|
19 |
|
||
Proceeds from exercise of stock options |
|
3 |
|
|
19 |
|
||
Tax withholding payments for net share-settled equity awards |
|
(5) |
|
|
(5) |
|
||
Net cash provided by financing activities |
|
1,427 |
|
|
1,220 |
|
||
Net increase (decrease) in cash and cash equivalents |
|
730 |
|
|
(7) |
|
||
Cash, cash equivalents and restricted cash—beginning of year |
|
98 |
|
|
105 |
|
||
Cash, cash equivalents and restricted cash—end of year |
|
$ |
828 |
|
|
$ |
98 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Interest paid—net of amounts capitalized |
|
$ |
216 |
|
|
$ |
173 |
|
Income taxes (received) paid—net |
|
(1) |
|
|
137 |
|
||
Property and equipment purchases included in accounts payable |
|
21 |
|
|
49 |
|
||
Leased assets obtained in exchange for financing lease liabilities |
|
73 |
|
|
86 |
|
||
Leased assets obtained in exchange for operating lease liabilities |
|
48 |
|
|
39 |
|
||
Cashless exercise of stock options |
|
— |
|
|
1 |
|
||
Paid-in-kind Series A convertible preferred stock dividends |
|
28 |
|
|
— |
|
||
US FOODS HOLDING CORP. Non-GAAP Reconciliation (Unaudited) |
|||||||||||||||
|
|
For the quarter ended |
|||||||||||||
|
|
Consolidated US Foods |
|||||||||||||
($ in millions, except share and per share data) |
|
January 2, 2021 |
|
December 28, 2019 |
|
Change |
|
% |
|||||||
Net (loss) income available to common shareholders (GAAP) |
|
$ |
(23) |
|
|
$ |
92 |
|
|
$ |
(115) |
|
|
(125.0) |
% |
Series A convertible preferred stock dividends |
|
13 |
|
|
— |
|
|
13 |
|
|
NM |
||||
Net (loss) income (GAAP) |
|
(10) |
|
|
92 |
|
|
(102) |
|
|
(110.9) |
% |
|||
Interest expense—net |
|
60 |
|
|
57 |
|
|
3 |
|
|
5.3 |
% |
|||
Income tax (benefit) provision |
|
(15) |
|
|
29 |
|
|
(44) |
|
|
(151.7) |
% |
|||
Depreciation expense |
|
86 |
|
|
83 |
|
|
3 |
|
|
3.6 |
% |
|||
Amortization expense |
|
20 |
|
|
19 |
|
|
1 |
|
|
5.3 |
% |
|||
EBITDA (Non-GAAP) |
|
141 |
|
|
280 |
|
|
(139) |
|
|
(49.6) |
% |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|||||||
Share-based compensation expense (1) |
|
11 |
|
|
10 |
|
|
1 |
|
|
10.0 |
% |
|||
LIFO reserve adjustment (2) |
|
16 |
|
|
9 |
|
|
7 |
|
|
77.8 |
% |
|||
Pension settlements (3) |
|
— |
|
|
9 |
|
|
(9) |
|
|
(100.0) |
% |
|||
Business transformation costs (4) |
|
14 |
|
|
3 |
|
|
11 |
|
|
NM |
||||
Loss from discontinued operations (5) |
|
— |
|
|
1 |
|
|
(1) |
|
|
(100.0) |
% |
|||
COVID-19 bad debt expense (6) |
|
(18) |
|
|
— |
|
|
(18) |
|
|
NM |
||||
COVID-19 product donations and inventory adjustments (7) |
|
10 |
|
|
— |
|
|
10 |
|
|
NM |
||||
COVID-19 other related expenses (8) |
|
(2) |
|
|
— |
|
|
(2) |
|
|
NM |
||||
Business acquisition and integration related costs and other (9) |
|
2 |
|
|
23 |
|
|
(21) |
|
|
(91.3) |
% |
|||
Adjusted EBITDA (Non-GAAP) |
|
174 |
|
|
335 |
|
|
(161) |
|
|
(48.1) |
% |
|||
Depreciation expense |
|
(86) |
|
|
(83) |
|
|
(3) |
|
|
3.6 |
% |
|||
Interest expense—net |
|
(60) |
|
|
(57) |
|
|
(3) |
|
|
5.3 |
% |
|||
Income tax provision, as adjusted (10) |
|
(5) |
|
|
(50) |
|
|
45 |
|
|
(90.0) |
% |
|||
Series A convertible preferred stock dividends |
|
(13) |
|
|
$ |
— |
|
|
(13) |
|
|
NM |
|||
Adjusted Net income (Non-GAAP) |
|
$ |
10 |
|
|
$ |
145 |
|
|
$ |
(135) |
|
|
(93.1) |
% |
|
|
|
|
|
|
|
|
|
|||||||
Diluted EPS (GAAP) |
|
$ |
(0.11) |
|
|
$ |
0.42 |
|
|
$ |
(0.53) |
|
|
(126.2) |
% |
Share-based compensation expense (1) |
|
0.05 |
|
|
0.05 |
|
|
— |
|
|
— |
% |
|||
LIFO reserve adjustment (2) |
|
0.07 |
|
|
0.04 |
|
|
0.03 |
|
|
75.0 |
% |
|||
Pension settlements (3) |
|
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "US Foods Reports Fourth Quarter and Fiscal Year 2020 Earnings FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were US Foods' Q4 2020 earnings results?",
"acceptedAnswer": {
"@type": "Answer",
"text": "US Foods reported a net loss of $23 million in Q4 2020, with net sales of $6.1 billion, a decrease of 11.5% from the prior year."
}
},
{
"@type": "Question",
"name": "How did the COVID-19 pandemic affect US Foods' performance?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The pandemic led to a significant decrease in case volumes and net sales, impacting the overall financial results for both Q4 and the fiscal year 2020."
}
},
{
"@type": "Question",
"name": "What is the outlook for US Foods in fiscal year 2021?",
"acceptedAnswer": {
"@type": "Answer",
"text": "US Foods has not provided financial guidance for fiscal year 2021 due to ongoing uncertainty related to COVID-19."
}
},
{
"@type": "Question",
"name": "How did the Smart Foodservice acquisition impact US Foods' sales?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Smart Foodservice contributed approximately $275 million to net sales in the fourth quarter of 2020."
}
},
{
"@type": "Question",
"name": "What were US Foods' financial results for the full fiscal year 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "For fiscal year 2020, US Foods reported net sales of $22.9 billion, a decrease of 11.8%, and a net loss available to common shareholders of $254 million."
}
}
]
}
| |||||||||||||
