US Foods Reports Third Quarter Fiscal Year 2024 Earnings
US Foods reported strong Q3 FY2024 results with net sales increasing 6.8% to $9.7 billion and gross profit rising 8.1% to $1.7 billion. The company achieved a 55.8% increase in net income to $148 million and grew Adjusted EBITDA 13.2% to $455 million. Total case volume increased 3.8%, with independent restaurant case volume up 4.1%. The company repurchased $580 million of shares during the quarter. Despite a softer macro environment and weather-related challenges, US Foods maintained strong performance, marking its 14th consecutive quarter of market share gains with independent restaurants.
US Foods ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2024, con un Aumento delle vendite nette del 6,8% a 9,7 miliardi di dollari e un Aumento del profitto lordo dell'8,1% a 1,7 miliardi di dollari. L'azienda ha registrato un Aumento del 55,8% dell'utile netto a 148 milioni di dollari e ha fatto crescere l'EBITDA rettificato del 13,2% a 455 milioni di dollari. Il volume totale dei casi è aumentato del 3,8%, con un aumento del 4,1% nel volume dei casi dei ristoranti indipendenti. Durante il trimestre, l'azienda ha riacquistato azioni per un valore di 580 milioni di dollari. Nonostante un ambiente macroeconomico più debole e sfide legate alle condizioni meteorologiche, US Foods ha mantenuto una performance forte, segnando il suo 14° trimestre consecutivo di guadagni di quota di mercato con i ristoranti indipendenti.
US Foods informó resultados sólidos en el tercer trimestre del año fiscal 2024, con un aumento del 6.8% en las ventas netas hasta 9.7 mil millones de dólares y un aumento del 8.1% en la ganancia bruta hasta 1.7 mil millones de dólares. La compañía logró un aumento del 55.8% en los ingresos netos hasta 148 millones de dólares y creció el EBITDA ajustado un 13.2% hasta 455 millones de dólares. El volumen total de casos aumentó un 3.8%, con un incremento del 4.1% en el volumen de casos de restaurantes independientes. Durante el trimestre, la compañía recompró acciones por un total de 580 millones de dólares. A pesar de un entorno macroeconómico más suave y los desafíos relacionados con el clima, US Foods mantuvo un rendimiento sólido, marcando su 14° trimestre consecutivo de ganancias de cuota de mercado con restaurantes independientes.
US Foods는 2024 회계연도 3분기에 강력한 실적을 발표했으며, 순매출 6.8% 증가로 97억 달러에 도달하고, 총 이익은 8.1% 증가하여 17억 달러에 이르렀습니다. 회사는 순이익 55.8% 증가로 1억 4,800만 달러를 기록했으며, 조정 EBITDA는 13.2% 증가하여 4억 5,500만 달러에 달했습니다. 총 케이스 수는 3.8% 증가했으며, 독립 레스토랑 케이스 수는 4.1% 증가했습니다. 회사는 분기 동안 5억 8,000만 달러 규모의 주식을 재매입했습니다. 다소 부드러운 거시적 환경과 날씨 관련 문제에도 불구하고, US Foods는 독립 레스토랑과의 시장 점유율 확보에서 14번째 연속 분기 동안 강력한 성과를 유지했습니다.
US Foods a annoncé des résultats solides pour le troisième trimestre de l'exercice 2024, avec une augmentation des ventes nettes de 6,8% s'élevant à 9,7 milliards de dollars et une hausse du bénéfice brut de 8,1% à 1,7 milliard de dollars. L'entreprise a réalisé une augmentation de 55,8% du résultat net à 148 millions de dollars et a augmenté son EBITDA ajusté de 13,2% à 455 millions de dollars. Le volume total des cas a augmenté de 3,8%, avec une hausse de 4,1% pour le volume des cas des restaurants indépendants. Au cours du trimestre, l'entreprise a racheté pour 580 millions de dollars d'actions. Malgré un environnement macroéconomique plus faible et des défis liés aux conditions météorologiques, US Foods a maintenu une performance solide, marquant son 14ème trimestre consécutif de gains de parts de marché avec les restaurants indépendants.
US Foods hat im dritten Quartal des Wirtschaftsjahres 2024 starke Ergebnisse gemeldet, mit einem Umsatzanstieg von 6,8% auf 9,7 Milliarden Dollar und einem Anstieg des Bruttogewinns um 8,1% auf 1,7 Milliarden Dollar. Das Unternehmen erzielte ein einen Anstieg des Nettogewinns um 55,8% auf 148 Millionen Dollar und steigerte das bereinigte EBITDA um 13,2% auf 455 Millionen Dollar. Das Gesamtvolumen der Fälle stieg um 3,8%, wobei das Volumen der unabhängigen Restaurants sogar um 4,1% zunahm. Während des Quartals hat das Unternehmen Aktien im Wert von 580 Millionen Dollar zurückgekauft. Trotz eines schwächeren makroökonomischen Umfelds und wetterbedingter Herausforderungen hielt US Foods eine starke Leistung aufrecht und markierte das 14. aufeinanderfolgende Quartal mit Marktanteilsgewinnen bei unabhängigen Restaurants.
- Net sales increased 6.8% to $9.7 billion
- Net income grew 55.8% to $148 million
- Adjusted EBITDA increased 13.2% to $455 million
- Total case volume up 3.8% with independent restaurant volume growing 4.1%
- Diluted EPS increased 60.5% to $0.61
- Strong cash flow from operations at $891 million
- Net Debt to Adjusted EBITDA ratio improved to 2.8x from 2.9x YoY
- Operating expenses increased 5.8% to $1.4 billion
- Cash flow from operations decreased by $44 million from prior year
- Cash capital expenditures increased by $69 million YoY
Insights
The Q3 results demonstrate robust financial performance with several key highlights:
Particularly noteworthy is the company's aggressive share repurchase program, deploying
The narrowed full-year guidance suggests increased confidence in meeting targets, with the adjusted EBITDA floor raised from
US Foods' market performance shows resilience against industry headwinds, including weather disruptions and a softer macro environment. The
The
Grew Net Sales
Increased Net Income
Grew Adjusted EBITDA
Repurchased
Third Quarter Fiscal Year 2024 Highlights
-
Net sales increased
6.8% to$9.7 billion -
Total case volume increased
3.8% ; independent restaurant case volume increased4.1% -
Gross profit increased
8.1% to$1.7 billion -
Net income was
$148 million -
Adjusted EBITDA increased
13.2% to$455 million -
Diluted EPS increased
60.5% to ; Adjusted Diluted EPS increased$0.61 21.4% to$0.85
“We delivered strong results in the third quarter despite the softer macro environment and weather-related challenges which pressured industry case volumes,” said Dave Flitman, CEO. “We executed our strategy-driven operating model to deliver top line growth, a double-digit Adjusted EBITDA increase and margin expansion. Our team-based go-to-market approach, proven operational playbook and leading digital solutions enabled our 14th consecutive quarter of market share gains with independent restaurants.”
“Our thoughts are with all of our associates, customers and community members impacted by hurricanes Helene and Milton, which caused catastrophic devastation across the Southeast. We are grateful to our local teams for their unwavering commitment to aid recovery efforts and continue serving the community during this difficult time. I want to thank all of our 30,000 associates for their dedication to our customers and communities during these challenging times.”
“We delivered another strong quarter of Adjusted EBITDA and grew Adjusted Gross Profit faster than Adjusted Operating Expense,” added Dirk Locascio, CFO. “In the face of the softer macro backdrop, we continue to grow sales, expand margins and deploy our strong free cash flow. Additionally, we allocated
Third Quarter Fiscal Year 2024 Results
Net sales of
Gross profit of
Operating expenses of
Net income was
Cash Flow and Debt
Cash flow provided by operating activities for the first nine months of fiscal year 2024 was
Net Debt at the end of the third quarter of fiscal year 2024 was
During the third quarter of fiscal year 2024, the Company repurchased 10.4 million shares of common stock at an aggregate purchase price of
Outlook for Fiscal Year 20241
The Company is updating its Fiscal Year 2024 guidance.
-
Net Sales of
to$37.7 billion , compared to previous guidance of$38.0 billion to$37.5 billion $38.5 billion -
Adjusted EBITDA of
to$1.72 billion , compared to previous guidance of$1.74 billion to$1.69 billion $1.74 billion -
Adjusted Diluted EPS of
to$3.05 , compared to previous guidance of$3.15 to$3.00 $3.20
______________________ |
|
1The 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 activity 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. |
Conference Call and Webcast Information
US Foods will host a live webcast to discuss third quarter fiscal year 2024 results on Thursday, November 7, 2024, at 8 a.m. CST. 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 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 activity 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 activity 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) |
|
September 28, 2024 |
|
December 30, 2023 |
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
81 |
|
|
$ |
269 |
|
Accounts receivable, less allowances of |
|
|
2,065 |
|
|
|
1,854 |
|
Vendor receivables, less allowances of |
|
|
217 |
|
|
|
156 |
|
Inventories—net |
|
|
1,618 |
|
|
|
1,600 |
|
Prepaid expenses |
|
|
123 |
|
|
|
138 |
|
Other current assets |
|
|
12 |
|
|
|
14 |
|
Total current assets |
|
|
4,116 |
|
|
|
4,031 |
|
Property and equipment—net |
|
|
2,358 |
|
|
|
2,280 |
|
Goodwill |
|
|
5,779 |
|
|
|
5,697 |
|
Other intangibles—net |
|
|
852 |
|
|
|
803 |
|
Other assets |
|
|
370 |
|
|
|
376 |
|
Total assets |
|
$ |
13,475 |
|
|
$ |
13,187 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Cash overdraft liability |
|
$ |
179 |
|
|
$ |
220 |
|
Accounts payable |
|
|
2,395 |
|
|
|
2,051 |
|
Accrued expenses and other current liabilities |
|
|
777 |
|
|
|
731 |
|
Current portion of long-term debt |
|
|
118 |
|
|
|
110 |
|
Total current liabilities |
|
|
3,469 |
|
|
|
3,112 |
|
Long-term debt |
|
|
4,671 |
|
|
|
4,564 |
|
Deferred tax liabilities |
|
|
261 |
|
|
|
293 |
|
Other long-term liabilities |
|
|
468 |
|
|
|
469 |
|
Total liabilities |
|
|
8,869 |
|
|
|
8,438 |
|
Shareholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
3,722 |
|
|
|
3,663 |
|
Retained earnings |
|
|
1,937 |
|
|
|
1,509 |
|
Accumulated other comprehensive loss |
|
|
(111 |
) |
|
|
(115 |
) |
Treasury Stock |
|
|
(945 |
) |
|
|
(311 |
) |
Total shareholders’ equity |
|
|
4,606 |
|
|
|
4,749 |
|
Total liabilities and shareholders' equity |
|
$ |
13,475 |
|
|
$ |
13,187 |
|
US FOODS HOLDING CORP. Consolidated Statements of Operations (Unaudited) |
||||||||||||||
|
||||||||||||||
|
|
13 Weeks Ended |
|
39 Weeks Ended |
||||||||||
($ in millions, except share and per share data) |
|
September 28, 2024 |
|
September 30, 2023 |
|
September 28, 2024 |
|
September 30, 2023 |
||||||
Net sales |
|
$ |
9,728 |
|
$ |
9,106 |
|
|
$ |
28,386 |
|
$ |
26,661 |
|
Cost of goods sold |
|
|
8,061 |
|
|
7,564 |
|
|
|
23,518 |
|
|
22,103 |
|
Gross profit |
|
|
1,667 |
|
|
1,542 |
|
|
|
4,868 |
|
|
4,558 |
|
Distribution, selling and administrative costs |
|
|
1,379 |
|
|
1,312 |
|
|
|
4,050 |
|
|
3,819 |
|
Restructuring activity and asset impairment charges |
|
|
9 |
|
|
— |
|
|
|
21 |
|
|
— |
|
Total operating expenses |
|
|
1,388 |
|
|
1,312 |
|
|
|
4,071 |
|
|
3,819 |
|
Operating income |
|
|
279 |
|
|
230 |
|
|
|
797 |
|
|
739 |
|
Other expense (income)—net |
|
|
3 |
|
|
(1 |
) |
|
|
5 |
|
|
(4 |
) |
Interest expense—net |
|
|
75 |
|
|
81 |
|
|
|
235 |
|
|
244 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
21 |
|
|
|
— |
|
|
21 |
|
Income before income taxes |
|
|
201 |
|
|
129 |
|
|
|
557 |
|
|
478 |
|
Income tax provision |
|
|
53 |
|
|
34 |
|
|
|
129 |
|
|
119 |
|
Net income |
|
$ |
148 |
|
$ |
95 |
|
|
$ |
428 |
|
$ |
359 |
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
|
$ |
148 |
|
$ |
95 |
|
|
$ |
428 |
|
$ |
359 |
|
Series A convertible preferred stock dividends |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(7 |
) |
Net income available to common shareholders |
|
$ |
148 |
|
$ |
95 |
|
|
$ |
428 |
|
$ |
352 |
|
|
|
|
|
|
|
|
|
|
||||||
Net income per share |
|
|
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.61 |
|
$ |
0.38 |
|
|
$ |
1.75 |
|
$ |
1.49 |
|
Diluted |
|
$ |
0.61 |
|
$ |
0.38 |
|
|
$ |
1.74 |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
240,992,853 |
|
|
246,796,649 |
|
|
|
243,928,437 |
|
|
237,117,546 |
|
Diluted |
|
|
243,914,577 |
|
|
248,954,716 |
|
|
|
246,900,537 |
|
|
250,577,973 |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|||||||||||||
|
US FOODS HOLDING CORP. Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
39 Weeks Ended |
||||||
($ in millions) |
|
September 28, 2024 |
|
September 30, 2023 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
428 |
|
|
$ |
359 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
327 |
|
|
|
290 |
|
Gain on disposal of property and equipment—net |
|
|
(1 |
) |
|
|
(5 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
21 |
|
Amortization of deferred financing costs |
|
|
8 |
|
|
|
14 |
|
Deferred tax (benefit) provision |
|
|
(33 |
) |
|
|
5 |
|
Share-based compensation expense |
|
|
46 |
|
|
|
43 |
|
Provision for doubtful accounts |
|
|
21 |
|
|
|
20 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Increase in receivables |
|
|
(282 |
) |
|
|
(291 |
) |
(Increase) decrease in inventories |
|
|
(6 |
) |
|
|
45 |
|
Decrease in prepaid expenses and other assets |
|
|
52 |
|
|
|
(14 |
) |
Increase in accounts payable and cash overdraft liability |
|
|
316 |
|
|
|
434 |
|
Increase in accrued expenses and other liabilities |
|
|
15 |
|
|
|
14 |
|
Net cash provided by operating activities |
|
|
891 |
|
|
|
935 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from sales of property and equipment |
|
|
3 |
|
|
|
8 |
|
Purchases of property and equipment |
|
|
(236 |
) |
|
|
(167 |
) |
Acquisition of businesses—net of cash received |
|
|
(214 |
) |
|
|
(142 |
) |
Net cash used in investing activities |
|
|
(447 |
) |
|
|
(301 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Principal payments on debt and financing leases |
|
|
(2,470 |
) |
|
|
(535 |
) |
Repurchase of Senior Note Debt |
|
|
— |
|
|
|
(1,000 |
) |
Issuance of new Senior Note Debt |
|
|
— |
|
|
|
1,000 |
|
Principal payments on debt repricing |
|
|
(14 |
) |
|
|
(43 |
) |
Proceeds from debt repricing |
|
|
14 |
|
|
|
43 |
|
Proceeds from debt borrowings |
|
|
2,454 |
|
|
|
255 |
|
Dividends paid on Series A convertible preferred stock |
|
|
— |
|
|
|
(7 |
) |
Repurchase of common stock |
|
|
(628 |
) |
|
|
(229 |
) |
Debt financing costs and fees |
|
|
(1 |
) |
|
|
(10 |
) |
Proceeds from employee stock purchase plan |
|
|
19 |
|
|
|
19 |
|
Proceeds from exercise of stock options |
|
|
14 |
|
|
|
23 |
|
Purchase of interest rate caps |
|
|
— |
|
|
|
(3 |
) |
Tax withholding payments for net share-settled equity awards |
|
|
(20 |
) |
|
|
(12 |
) |
Net cash used in financing activities |
|
|
(632 |
) |
|
|
(499 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(188 |
) |
|
|
135 |
|
Cash, cash equivalents and restricted cash—beginning of period |
|
|
269 |
|
|
|
211 |
|
Cash, cash equivalents and restricted cash—end of period |
|
$ |
81 |
|
|
$ |
346 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Conversion of Series A Convertible Preferred Stock |
|
$ |
— |
|
|
$ |
534 |
|
Interest paid—net of amounts capitalized |
|
|
233 |
|
|
|
239 |
|
Income taxes paid—net |
|
|
139 |
|
|
|
126 |
|
Property and equipment purchases included in accounts payable |
|
|
23 |
|
|
|
25 |
|
Leased assets obtained in exchange for financing lease liabilities |
|
|
126 |
|
|
|
108 |
|
Leased assets obtained in exchange for operating lease liabilities |
|
|
32 |
|
|
|
27 |
|
Cashless exercise of stock options |
|
|
5 |
|
|
|
1 |
|
US FOODS HOLDING CORP. Non-GAAP Reconciliation (Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
|
|
13 Weeks Ended |
|
|
|
|
|||||||||||||
($ in millions, except share and per share data) |
|
September 28, 2024 |
|
September 30, 2023 |
|
Change |
|
% |
|||||||||||
Net income and net income margin (GAAP) |
|
$ |
148 |
|
1.5 |
% |
|
$ |
95 |
|
1.0 |
% |
|
$ |
53 |
|
|
55.8 |
% |
Interest expense—net |
|
|
75 |
|
|
|
|
81 |
|
|
|
|
(6 |
) |
|
(7.4 |
)% |
||
Income tax provision |
|
|
53 |
|
|
|
|
34 |
|
|
|
|
19 |
|
|
55.9 |
% |
||
Depreciation expense |
|
|
99 |
|
|
|
|
85 |
|
|
|
|
14 |
|
|
16.5 |
% |
||
Amortization expense |
|
|
15 |
|
|
|
|
12 |
|
|
|
|
3 |
|
|
25.0 |
% |
||
EBITDA and EBITDA margin (Non-GAAP) |
|
|
390 |
|
4.0 |
% |
|
|
307 |
|
3.4 |
% |
|
|
83 |
|
|
27.0 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Restructuring activity and asset impairment charges(1) |
|
|
10 |
|
|
|
|
2 |
|
|
|
|
8 |
|
|
400.0 |
% |
||
Share-based compensation expense(2) |
|
|
16 |
|
|
|
|
15 |
|
|
|
|
1 |
|
|
6.7 |
% |
||
LIFO reserve adjustment (3) |
|
|
23 |
|
|
|
|
37 |
|
|
|
|
(14 |
) |
|
(37.8 |
)% |
||
Loss on extinguishment of debt(4) |
|
|
— |
|
|
|
|
21 |
|
|
|
|
(21 |
) |
|
(100.0 |
)% |
||
Business transformation costs(5) |
|
|
10 |
|
|
|
|
9 |
|
|
|
|
1 |
|
|
11.1 |
% |
||
Business acquisition and integration related costs and other(6) |
|
|
6 |
|
|
|
|
11 |
|
|
|
|
(5 |
) |
|
(45.5 |
)% |
||
Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP) |
|
|
455 |
|
4.7 |
% |
|
|
402 |
|
4.4 |
% |
|
|
53 |
|
|
13.2 |
% |
Depreciation expense |
|
|
(99 |
) |
|
|
|
(85 |
) |
|
|
|
(14 |
) |
|
16.5 |
% |
||
Interest expense—net |
|
|
(75 |
) |
|
|
|
(81 |
) |
|
|
|
6 |
|
|
(7.4 |
)% |
||
Income tax provision, as adjusted(7) |
|
|
(73 |
) |
|
|
|
(62 |
) |
|
|
|
(11 |
) |
|
17.7 |
% |
||
Adjusted Net Income (Non-GAAP) |
|
$ |
208 |
|
|
|
$ |
174 |
|
|
|
$ |
34 |
|
|
19.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted EPS (GAAP) |
|
$ |
0.61 |
|
|
|
$ |
0.38 |
|
|
|
$ |
0.23 |
|
|
60.5 |
% |
||
Restructuring activity and asset impairment charges(1) |
|
|
0.04 |
|
|
|
|
0.01 |
|
|
|
|
0.03 |
|
|
300.0 |
% |
||
Share-based compensation expense(2) |
|
|
0.07 |
|
|
|
|
0.06 |
|
|
|
|
0.01 |
|
|
16.7 |
% |
||
LIFO reserve adjustment (3) |
|
|
0.09 |
|
|
|
|
0.15 |
|
|
|
|
(0.06 |
) |
|
(40.0 |
)% |
||
Loss on extinguishment of debt(4) |
|
|
— |
|
|
|
|
0.08 |
|
|
|
|
(0.08 |
) |
|
(100.0 |
)% |
||
Business transformation costs(5) |
|
|
0.04 |
|
|
|
|
0.04 |
|
|
|
|
— |
|
|
— |
% |
||
Business acquisition and integration related costs and other(6) |
|
|
0.02 |
|
|
|
|
0.04 |
|
|
|
|
(0.02 |
) |
|
(50.0 |
)% |
||
Income tax provision, as adjusted(7) |
|
|
(0.02 |
) |
|
|
|
(0.06 |
) |
|
|
|
0.04 |
|
|
(66.7 |
)% |
||
Adjusted Diluted EPS (Non-GAAP) (8) |
|
$ |
0.85 |
|
|
|
$ |
0.70 |
|
|
|
$ |
0.15 |
|
|
21.4 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average diluted shares outstanding (Non-GAAP) (9) |
|
|
243,914,577 |
|
|
|
|
248,954,716 |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit (GAAP) |
|
$ |
1,667 |
|
|
|
$ |
1,542 |
|
|
|
$ |
125 |
|
|
8.1 |
% |
||
LIFO reserve adjustment (3) |
|
|
23 |
|
|
|
|
37 |
|
|
|
|
(14 |
) |
|
(37.8 |
)% |
||
Adjusted Gross profit (Non-GAAP) |
|
$ |
1,690 |
|
|
|
$ |
1,579 |
|
|
|
$ |
111 |
|
|
7.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses (GAAP) |
|
$ |
1,388 |
|
|
|
$ |
1,312 |
|
|
|
$ |
76 |
|
|
5.8 |
% |
||
Depreciation expense |
|
|
(99 |
) |
|
|
|
(85 |
) |
|
|
|
(14 |
) |
|
16.5 |
% |
||
Amortization expense |
|
|
(15 |
) |
|
|
|
(12 |
) |
|
|
|
(3 |
) |
|
25.0 |
% |
||
Restructuring activity and asset impairment charges(1) |
|
|
(10 |
) |
|
|
|
(2 |
) |
|
|
|
(8 |
) |
|
400.0 |
% |
||
Share-based compensation expense(2) |
|
|
(16 |
) |
|
|
|
(15 |
) |
|
|
|
(1 |
) |
|
6.7 |
% |
||
Business transformation costs(5) |
|
|
(10 |
) |
|
|
|
(9 |
) |
|
|
|
(1 |
) |
|
11.1 |
% |
||
Business acquisition and integration related costs and other(6) |
|
|
(6 |
) |
|
|
|
(11 |
) |
|
|
|
5 |
|
|
(45.5 |
)% |
||
Adjusted Operating expenses (Non-GAAP) |
|
$ |
1,232 |
|
|
|
$ |
1,178 |
|
|
|
$ |
54 |
|
|
4.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
NM - Not Meaningful |
||
(1) |
|
Consists primarily of severance and related costs, organizational realignment costs and asset 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) |
|
Includes early redemption premium and the write-off of certain pre-existing debt issuance costs. |
(5) |
|
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 technology. For the 13 weeks ended September 28, 2024, business transformation costs related to projects associated with information technology infrastructure initiatives and workforce efficiency initiatives. For the 13 weeks ended September 30, 2023, business transformation costs related to projects associated with information technology infrastructure initiatives. |
(6) |
|
Includes: (i) aggregate acquisition and integration related costs of |
(7) |
|
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. |
(8) |
|
Adjusted Diluted EPS is calculated as Adjusted net income divided by weighted average diluted shares outstanding (Non-GAAP). |
(9) |
|
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 (Unaudited) |
|||||||||||||||||||
|
|
39 Weeks Ended |
|
|
|
|
|
||||||||||||
($ in millions, except share and per share data) |
|
September 28, 2024 |
|
September 30, 2023 |
|
Change |
|
% |
|||||||||||
Net income available to common shareholders and net income margin (GAAP) |
|
$ |
428 |
|
1.5 |
% |
|
$ |
352 |
|
1.3 |
% |
|
$ |
76 |
|
|
21.6 |
% |
Series A Preferred Stock Dividends |
|
|
— |
|
|
|
|
(7 |
) |
|
|
|
7 |
|
|
(100.0 |
)% |
||
Net income and net income margin (GAAP) |
|
|
428 |
|
1.5 |
% |
|
|
359 |
|
1.3 |
% |
|
|
69 |
|
|
19.2 |
% |
Interest expense—net |
|
|
235 |
|
|
|
|
244 |
|
|
|
|
(9 |
) |
|
(3.7 |
)% |
||
Income tax provision |
|
|
129 |
|
|
|
|
119 |
|
|
|
|
10 |
|
|
8.4 |
% |
||
Depreciation expense |
|
|
288 |
|
|
|
|
256 |
|
|
|
|
32 |
|
|
12.5 |
% |
||
Amortization expense |
|
|
39 |
|
|
|
|
34 |
|
|
|
|
5 |
|
|
14.7 |
% |
||
EBITDA and EBITDA margin (Non-GAAP) |
|
|
1,119 |
|
3.9 |
% |
|
|
1,012 |
|
3.8 |
% |
|
|
107 |
|
|
10.6 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Restructuring activity and asset impairment charges(1) |
|
|
22 |
|
|
|
|
2 |
|
|
|
|
20 |
|
|
1,000.0 |
% |
||
Share-based compensation expense(2) |
|
|
46 |
|
|
|
|
43 |
|
|
|
|
3 |
|
|
7.0 |
% |
||
LIFO reserve adjustment (3) |
|
|
68 |
|
|
|
|
42 |
|
|
|
|
26 |
|
|
61.9 |
% |
||
Loss on extinguishment of debt(4) |
|
|
— |
|
|
|
|
21 |
|
|
|
|
(21 |
) |
|
(100.0 |
)% |
||
Business transformation costs(5) |
|
|
28 |
|
|
|
|
16 |
|
|
|
|
12 |
|
|
75.0 |
% |
||
Business acquisition and integration related costs and other(6) |
|
|
17 |
|
|
|
|
35 |
|
|
|
|
(18 |
) |
|
(51.4 |
)% |
||
Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP) |
|
|
1,300 |
|
4.6 |
% |
|
|
1,171 |
|
4.4 |
% |
|
|
129 |
|
|
11.0 |
% |
Depreciation expense |
|
|
(288 |
) |
|
|
|
(256 |
) |
|
|
|
(32 |
) |
|
12.5 |
% |
||
Interest expense—net |
|
|
(235 |
) |
|
|
|
(244 |
) |
|
|
|
9 |
|
|
(3.7 |
)% |
||
Income tax provision, as adjusted(7) |
|
|
(204 |
) |
|
|
|
(173 |
) |
|
|
|
(31 |
) |
|
17.9 |
% |
||
Adjusted Net Income (Non-GAAP) |
|
$ |
573 |
|
|
|
$ |
498 |
|
|
|
$ |
75 |
|
|
15.1 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted EPS (GAAP) |
|
$ |
1.74 |
|
|
|
$ |
1.43 |
|
|
|
$ |
0.31 |
|
|
21.7 |
% |
||
Restructuring activity and asset impairment charges(1) |
|
|
0.09 |
|
|
|
|
0.01 |
|
|
|
|
0.08 |
|
|
800.0 |
% |
||
Share-based compensation expense(2) |
|
|
0.19 |
|
|
|
|
0.17 |
|
|
|
|
0.02 |
|
|
11.8 |
% |
||
LIFO reserve adjustment (3) |
|
|
0.28 |
|
|
|
|
0.17 |
|
|
|
|
0.11 |
|
|
64.7 |
% |
||
Loss on extinguishment of debt(4) |
|
|
— |
|
|
|
|
0.08 |
|
|
|
|
(0.08 |
) |
|
(100.0 |
)% |
||
Business transformation costs(5) |
|
|
0.11 |
|
|
|
|
0.06 |
|
|
|
|
0.05 |
|
|
83.3 |
% |
||
Business acquisition and integration related costs and other(6) |
|
|
0.07 |
|
|
|
|
0.14 |
|
|
|
|
(0.07 |
) |
|
(50.0 |
)% |
||
Income tax provision, as adjusted(7) |
|
|
(0.16 |
) |
|
|
|
(0.07 |
) |
|
|
|
(0.09 |
) |
|
128.6 |
% |
||
Adjusted Diluted EPS (Non-GAAP) (8) |
|
$ |
2.32 |
|
|
|
$ |
1.99 |
|
|
|
$ |
0.33 |
|
|
16.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average diluted shares outstanding (Non-GAAP) (9) |
|
|
246,900,537 |
|
|
|
|
250,577,973 |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit (GAAP) |
|
$ |
4,868 |
|
|
|
$ |
4,558 |
|
|
|
$ |
310 |
|
|
6.8 |
% |
||
LIFO reserve adjustment (3) |
|
|
68 |
|
|
|
|
42 |
|
|
|
|
26 |
|
|
61.9 |
% |
||
Adjusted Gross profit (Non-GAAP) |
|
$ |
4,936 |
|
|
|
$ |
4,600 |
|
|
|
$ |
336 |
|
|
7.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses (GAAP) |
|
$ |
4,071 |
|
|
|
$ |
3,819 |
|
|
|
$ |
252 |
|
|
6.6 |
% |
||
Depreciation expense |
|
|
(288 |
) |
|
|
|
(256 |
) |
|
|
|
(32 |
) |
|
12.5 |
% |
||
Amortization expense |
|
|
(39 |
) |
|
|
|
(34 |
) |
|
|
|
(5 |
) |
|
14.7 |
% |
||
Restructuring activity and asset impairment charges(1) |
|
|
(22 |
) |
|
|
|
(2 |
) |
|
|
|
(20 |
) |
|
1,000.0 |
% |
||
Share-based compensation expense(2) |
|
|
(46 |
) |
|
|
|
(43 |
) |
|
|
|
(3 |
) |
|
7.0 |
% |
||
Business transformation costs(5) |
|
|
(28 |
) |
|
|
|
(16 |
) |
|
|
|
(12 |
) |
|
75.0 |
% |
||
Business acquisition and integration related costs and other(6) |
|
|
(17 |
) |
|
|
|
(35 |
) |
|
|
|
18 |
|
|
(51.4 |
)% |
||
Adjusted Operating expenses (Non-GAAP) |
|
$ |
3,631 |
|
|
|
$ |
3,433 |
|
|
|
$ |
198 |
|
|
5.8 |
% |
NM - Not Meaningful |
||
(1) |
|
Consists primarily of severance and related costs, organizational realignment costs and asset 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) |
|
Includes early redemption premium and the write-off of certain pre-existing debt issuance costs. |
(5) |
|
Transformational 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 technology. For the 39 weeks ended September 28, 2024, business transformation costs related to projects associated with information technology infrastructure initiatives and workforce efficiency initiatives. For the 39 weeks ended September 30, 2023, business transformation costs related to projects associated with information technology infrastructure initiatives. |
(6) |
|
Includes: (i) aggregate acquisition and integration related costs of |
(7) |
|
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. |
(8) |
|
Adjusted Diluted EPS is calculated as Adjusted net income divided by weighted average diluted shares outstanding (Non-GAAP). |
(9) |
|
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) |
|
September 28, 2024 |
|
December 30, 2023 |
|
September 30, 2023 |
||||||
Total Debt (GAAP) |
|
$ |
4,789 |
|
|
$ |
4,674 |
|
|
$ |
4,686 |
|
Cash, cash equivalents and restricted cash |
|
|
(81 |
) |
|
|
(269 |
) |
|
|
(346 |
) |
Net Debt (Non-GAAP) |
|
$ |
4,708 |
|
|
$ |
4,405 |
|
|
$ |
4,340 |
|
Adjusted EBITDA (1) |
|
$ |
1,688 |
|
|
$ |
1,559 |
|
|
$ |
1,521 |
|
Net Leverage Ratio (2) |
|
|
2.8 |
|
|
|
2.8 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
||||||
(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/20241105772349/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
What was US Foods (USFD) revenue in Q3 2024?
How much profit did US Foods (USFD) make in Q3 2024?
What was US Foods (USFD) Adjusted EBITDA in Q3 2024?