ROSEMONT, Ill.--(BUSINESS WIRE)--
US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice
distributors in the United States, today announced results for first
quarter fiscal 2018.
First Quarter 2018 Highlights
-
Total case volume decreased 2.3%; independent restaurant case volume
increased 4.3%
-
Net sales increased 0.6% to $5.8 billion
-
Gross profit of $992 million increased 0.1%
-
Income before income taxes increased $28 million to $63 million
-
Net income of $67 million increased $40 million
-
Adjusted EBITDA increased 4.2% to $224 million
-
Diluted EPS of $0.31; Adjusted Diluted EPS of $0.35
CEO Perspective
“During the first quarter we saw solid growth with independent
restaurants and expanded Gross profit per case by $0.19, our highest
quarterly per case growth rate in recent history. Execution on our gross
profit and operating expense initiatives drove 4.2% Adjusted EBITDA
growth despite headwinds from weather and inbound freight costs,” said
Chairman and CEO Pietro Satriano. “Our outlook for independent
restaurants and the overall industry remains strong and we are well
positioned to deliver on another successful year.”
First Quarter 2018 Results
Total case volume decreased 2.3% from the prior year with organic case
volume declining 3.2%. Independent restaurant case volume increased
4.3%, of which 2.7% was organic growth. The decrease in total case
volume was driven primarily by the planned exits of select chain
customers and adverse weather conditions throughout the quarter.
Net sales of $5.8 billion increased 0.6% from the prior year, primarily
driven by inflation in the beef, produce, dairy and grocery categories
which was partially offset by a decline in case volume. Sales from
acquisitions completed during the last four fiscal quarters increased
Net sales by approximately 1.4%.
Gross profit of $992 million increased $1 million, or 0.1% from the
prior year, driven by margin expansion initiatives which were partially
offset by higher inbound freight costs, a decline in case volume and an
increase in the year-over-year LIFO reserve expense. Gross profit as a
percentage of Net sales was 17.0%. Adjusted Gross profit was $1.0
billion, a 1.0% increase from prior year, driven by margin expansion
initiatives which were partially offset by higher inbound freight costs
and a decline in case volume. Adjusted Gross profit as a percentage of
Net sales was 17.4%.
Operating expenses were $889 million, a decrease of 2.8% from the prior
year. Operating expenses benefitted from lower amortization expense
resulting from the full amortization of an intangible asset as well as
ongoing efforts to reduce operating expenses. Adjusted Operating
expenses for the quarter were $789 million, a 0.4% increase from the
prior year, primarily driven by higher wage costs.
Income before income taxes was $63 million, a $28 million increase from
the prior year.
Net income for the quarter was $67 million, up $40 million from $27
million in the prior year, as a result of the Gross profit and Operating
expense factors discussed above as well as a $13 million year-over-year
tax benefit driven primarily by discrete tax items. Adjusted EBITDA of
$224 million increased $9 million, or 4.2% compared to prior year.
Diluted EPS was $0.31 and Adjusted Diluted EPS was $0.35.
Cash Flow and Capital Transactions
Net cash provided by operating activities for the quarter was $192
million, an increase of $70 million from the prior year related to
improvements in working capital and better business performance. Cash
capital expenditures for the quarter totaled $57 million, a decrease of
$13 million from prior year, due to the timing of projects in the 2018
fiscal year and payments in the first quarter fiscal 2017 for assets
acquired late in the fourth quarter fiscal 2016.
Net Debt at the end of the quarter was $3.5 billion, a decrease of $94
million versus the end of fourth quarter fiscal 2017. The ratio of Net
Debt to Adjusted EBITDA was 3.3x at the end of the quarter, down from
3.4x at the end of fourth quarter fiscal 2017.
Outlook for Fiscal Year 2018
For fiscal year 2018 the company now expects total case volume growth of
approximately 1% and Net sales growth of approximately 3%. All other
fiscal year 2018 guidance numbers announced on February 15, 2018, remain
unchanged including Adjusted EBITDA growth of 6-8% and Adjusted Diluted
EPS of $2.00-$2.10.
Conference Call and Webcast Information
US Foods first quarter fiscal 2018 earnings call will be broadcast live
via the internet on May 8, 2018 at 9:00 a.m. CDT. The call can also be
accessed live over the phone by dialing (844) 292-0976; the conference
ID number is 73188043.
The presentation slides reviewed during the webcast will be available
shortly before that time. The webcast, slides, and a copy of this news
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 250,000
restaurants and foodservice operators to help their businesses succeed.
With 25,000 employees and more than 60 locations, 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., and generates more than $24 billion in
annual revenue. 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,” “goal,” or similar expressions 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: cost inflation/deflation and
commodity volatility; competition; reliance on third-party suppliers;
interruption of product supply or increases in product costs; our
substantial indebtedness and restrictions placed upon us under our debt
agreements; potential interest rate increases; customer retention and
changes in our relationships with group purchasing organizations; our
ability to achieve increased sales to independent restaurants;
successful consummation and integration of acquisitions; realization of
the expected benefits from our cost savings initiatives; fuel shortages
or volatility in fuel costs; industry and general economic factors
affecting consumer confidence and buying and eating habits; product
liability claims; our reputation in the industry; labor relations and
continued access to qualified labor; pricing and cost structures;
environmental, occupational health and safety, and food safety
compliance; government laws and regulations, and potential changes in
existing laws or regulations; technology disruptions and our ability to
implement new technologies; cybersecurity incidents; management of
retirement benefits and pension liabilities; business disruptions caused
by extreme weather conditions; litigation risk; adequate protection of
our brand/trade names; and risks associated with intellectual property
including potential infringement.
For a detailed discussion of these risks and uncertainties, see the
section entitled “Risk Factors” in our Annual Report on Form 10-K for
the fiscal year ended December 30, 2017, which was filed with the
Securities and Exchange Commission on February 27, 2018. The
forward-looking statements contained in this release speak only as of
the date of this release. We undertake no obligation to update or revise
any forward-looking statements.
Non-GAAP Financial Measures
Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted
EBITDA, Net Debt, Adjusted Net income and Adjusted Diluted EPS are
non-GAAP financial measures regarding our operational performance. 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 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 noted in our debt
agreements.
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 income, plus Interest
expense-net, Income tax (benefit)/provision, and Depreciation and
amortization. Adjusted EBITDA is EBITDA adjusted for 1) Restructuring
charges and Tangible 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 our debt agreements.
We use Net Debt 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 March 31, 2018. 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,
amortization, interest expense, and Income taxes on a consistent basis
from period to period. Adjusted Net income is Net income excluding such
items as Restructuring benefits and charges, tangible 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. We believe that
Adjusted Net income is 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 are frequently 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 our
debt agreements. We also believe these 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 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. We have not, however, provided a
reconciliation of our full fiscal year 2018 Adjusted EBITDA or Adjusted
Diluted EPS outlook because we are not able to accurately estimate all
the adjustments on a forward-looking basis and such items could have a
significant impact on our GAAP financial results as a result of their
variability.
|
|
|
US FOODS HOLDING CORP.
|
|
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 30,
|
|
|
($ in millions) *
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
85
|
|
|
|
$
|
119
|
|
|
Accounts receivable, less allowances of $26
|
|
|
|
1,371
|
|
|
|
|
1,302
|
|
|
Vendor receivables, less allowances of $3
|
|
|
|
154
|
|
|
|
|
97
|
|
|
Inventories—net
|
|
|
|
1,207
|
|
|
|
|
1,208
|
|
|
Prepaid expenses
|
|
|
|
90
|
|
|
|
|
80
|
|
|
Assets held for sale
|
|
|
|
5
|
|
|
|
|
5
|
|
|
Other current assets
|
|
|
|
18
|
|
|
|
|
8
|
|
|
Total current assets
|
|
|
|
2,931
|
|
|
|
|
2,819
|
|
|
Property and equipment—net
|
|
|
|
1,828
|
|
|
|
|
1,801
|
|
|
Goodwill
|
|
|
|
3,967
|
|
|
|
|
3,967
|
|
|
Other intangibles—net
|
|
|
|
354
|
|
|
|
|
364
|
|
|
Deferred tax assets
|
|
|
|
20
|
|
|
|
|
22
|
|
|
Other assets
|
|
|
|
74
|
|
|
|
|
65
|
|
|
Total assets
|
|
|
$
|
9,174
|
|
|
|
$
|
9,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Bank checks outstanding
|
|
|
$
|
175
|
|
|
|
$
|
154
|
|
|
Accounts payable
|
|
|
|
1,543
|
|
|
|
|
1,289
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
380
|
|
|
|
|
451
|
|
|
Current portion of long-term debt
|
|
|
|
121
|
|
|
|
|
109
|
|
|
Total current liabilities
|
|
|
|
2,219
|
|
|
|
|
2,003
|
|
|
Long term debt
|
|
|
|
3,510
|
|
|
|
|
3,648
|
|
|
Deferred tax liabilities
|
|
|
|
292
|
|
|
|
|
263
|
|
|
Other long-term liabilities
|
|
|
|
308
|
|
|
|
|
372
|
|
|
Total liabilities
|
|
|
|
6,328
|
|
|
|
|
6,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
2
|
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
|
2,739
|
|
|
|
|
2,721
|
|
|
Retained earnings
|
|
|
|
191
|
|
|
|
|
124
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(86
|
)
|
|
|
|
(96
|
)
|
|
Total shareholders’ equity
|
|
|
|
2,846
|
|
|
|
|
2,751
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
9,174
|
|
|
|
$
|
9,037
|
|
(*) Amounts may not add due to rounding.
|
|
|
|
US FOODS HOLDING CORP.
|
|
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
|
|
March 31,
|
|
|
|
April 1,
|
|
|
($ in millions, except share and per share data) *
|
|
|
2018
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
5,823
|
|
|
|
$
|
5,788
|
|
|
Cost of goods sold
|
|
|
|
4,831
|
|
|
|
|
4,797
|
|
|
Gross profit
|
|
|
|
992
|
|
|
|
|
991
|
|
|
Distribution, selling and administrative costs
|
|
|
|
888
|
|
|
|
|
914
|
|
|
Restructuring charges
|
|
|
|
2
|
|
|
|
|
2
|
|
|
Total operating expenses
|
|
|
|
889
|
|
|
|
|
915
|
|
|
Operating income
|
|
|
|
102
|
|
|
|
|
76
|
|
|
Other income—net
|
|
|
|
(3
|
)
|
|
|
|
(1
|
)
|
|
Interest expense—net
|
|
|
|
43
|
|
|
|
|
42
|
|
|
Income before income taxes
|
|
|
|
63
|
|
|
|
|
35
|
|
|
Income tax (benefit) provision
|
|
|
|
(5
|
)
|
|
|
|
8
|
|
|
Net income
|
|
|
$
|
67
|
|
|
|
$
|
27
|
|
|
Net income per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.31
|
|
|
|
$
|
0.12
|
|
|
Diluted
|
|
|
$
|
0.31
|
|
|
|
$
|
0.12
|
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
215,080,238
|
|
|
|
|
221,364,013
|
|
|
Diluted
|
|
|
|
217,212,222
|
|
|
|
|
226,323,410
|
|
(*) Amounts may not add due to rounding.
|
|
|
US FOODS HOLDING CORP.
|
|
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
|
|
March 31,
|
|
|
|
April 1,
|
|
|
($ in millions) *
|
|
|
2018
|
|
|
|
2017
|
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
67
|
|
|
|
$
|
27
|
|
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
81
|
|
|
|
|
108
|
|
|
Amortization of deferred financing costs
|
|
|
|
1
|
|
|
|
|
1
|
|
|
Deferred tax provision
|
|
|
|
27
|
|
|
|
|
12
|
|
|
Share-based compensation expense
|
|
|
|
7
|
|
|
|
|
3
|
|
|
Provision for doubtful accounts
|
|
|
|
3
|
|
|
|
|
5
|
|
|
Changes in operating assets and liabilities, net of business
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
Increase in receivables
|
|
|
|
(135
|
)
|
|
|
|
(193
|
)
|
|
Decrease in inventories
|
|
|
|
1
|
|
|
|
|
36
|
|
|
Increase in prepaid expenses and other assets
|
|
|
|
(12
|
)
|
|
|
|
(26
|
)
|
|
Increase in accounts payable and bank checks outstanding
|
|
|
|
282
|
|
|
|
|
237
|
|
|
Decrease in accrued expenses and other liabilities
|
|
|
|
(132
|
)
|
|
|
|
(89
|
)
|
|
Net cash provided by operating activities
|
|
|
|
192
|
|
|
|
|
122
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of businesses—net of cash
|
|
|
|
(1
|
)
|
|
|
|
(63
|
)
|
|
Proceeds from sales of property and equipment
|
|
|
|
1
|
|
|
|
|
1
|
|
|
Purchases of property and equipment
|
|
|
|
(57
|
)
|
|
|
|
(70
|
)
|
|
Net cash used in investing activities
|
|
|
|
(57
|
)
|
|
|
|
(132
|
)
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt borrowings
|
|
|
|
864
|
|
|
|
|
578
|
|
|
Principal payments on debt and capital leases
|
|
|
|
(1,042
|
)
|
|
|
|
(548
|
)
|
|
Contingent consideration paid for business acquisitions
|
|
|
|
(1
|
)
|
|
|
|
(5
|
)
|
|
Proceeds from employee share purchase plan
|
|
|
|
4
|
|
|
|
|
3
|
|
|
Proceeds from exercise of stock options
|
|
|
|
7
|
|
|
|
|
7
|
|
|
Tax withholding payments for net share-settled equity awards
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
|
(168
|
)
|
|
|
|
31
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(34
|
)
|
|
|
|
21
|
|
|
Cash, cash equivalents and restricted cash—beginning of period (1)
|
|
|
|
119
|
|
|
|
|
131
|
|
|
Cash, cash equivalents and restricted cash—end of period(1)
|
|
|
$
|
86
|
|
|
|
$
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
|
|
|
|
Interest (net of amounts capitalized)
|
|
|
$
|
33
|
|
|
|
$
|
30
|
|
|
Income taxes paid—net
|
|
|
|
1
|
|
|
|
|
-
|
|
|
Non-cash Investing and Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment purchases included in accounts payable
|
|
|
|
22
|
|
|
|
|
16
|
|
|
Capital lease additions
|
|
|
|
50
|
|
|
|
|
41
|
|
|
Cashless exercise of equity awards
|
|
|
|
-
|
|
|
|
|
7
|
|
(*) Amounts may not add due to rounding.
(1) Includes restricted
cash due to retrospective adoption of a new accounting standard at the
beginning of fiscal year 2018. Restricted cash was immaterial in all
periods presented.
|
|
|
US FOODS HOLDING CORP.
|
|
Non-GAAP Reconciliation
|
|
(Unaudited)
|
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
April 1,
|
|
|
|
|
|
|
|
|
($ in millions, except share and per share data) *
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
%
|
|
|
Net income (GAAP)
|
|
|
$
|
67
|
|
|
|
27
|
|
|
$
|
40
|
|
|
|
148.1
|
%
|
|
Interest expense—net
|
|
|
|
43
|
|
|
|
42
|
|
|
|
1
|
|
|
|
2.4
|
%
|
|
Income tax (benefit) provision
|
|
|
|
(5
|
)
|
|
|
8
|
|
|
|
(13
|
)
|
|
|
(162.5
|
)%
|
|
Depreciation and amortization expense
|
|
|
|
81
|
|
|
|
108
|
|
|
|
(27
|
)
|
|
|
(25.0
|
)%
|
|
EBITDA (Non-GAAP)
|
|
|
|
187
|
|
|
|
184
|
|
|
|
3
|
|
|
|
1.6
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges (1)
|
|
|
|
2
|
|
|
|
2
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Share-based compensation expense (2)
|
|
|
|
7
|
|
|
|
3
|
|
|
|
4
|
|
|
|
133.3
|
%
|
|
LIFO reserve change (3)
|
|
|
|
19
|
|
|
|
10
|
|
|
|
9
|
|
|
|
90.0
|
%
|
|
Business transformation costs (4)
|
|
|
|
8
|
|
|
|
13
|
|
|
|
(5
|
)
|
|
|
(38.5
|
)%
|
|
Other (5)
|
|
|
|
2
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
(33.3
|
)%
|
|
Adjusted EBITDA (Non-GAAP)
|
|
|
|
224
|
|
|
|
215
|
|
|
|
9
|
|
|
|
4.2
|
%
|
|
Depreciation and amortization expense
|
|
|
|
(81
|
)
|
|
|
(108
|
)
|
|
|
27
|
|
|
|
(25.0
|
)%
|
|
Interest expense—net
|
|
|
|
(43
|
)
|
|
|
(42
|
)
|
|
|
(1
|
)
|
|
|
2.4
|
%
|
|
Income tax provision, as adjusted (6)
|
|
|
|
(25
|
)
|
|
|
(25
|
)
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Adjusted Net income (Non-GAAP)
|
|
|
$
|
75
|
|
|
|
40
|
|
|
$
|
35
|
|
|
|
87.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP)
|
|
|
$
|
0.31
|
|
|
$
|
0.12
|
|
|
$
|
0.19
|
|
|
|
158.3
|
%
|
|
Restructuring charges (1)
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Share-based compensation expense (2)
|
|
|
|
0.03
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
200.0
|
%
|
|
LIFO reserve change (3)
|
|
|
|
0.09
|
|
|
|
0.04
|
|
|
|
0.05
|
|
|
|
125.0
|
%
|
|
Business transformation costs (4)
|
|
|
|
0.04
|
|
|
|
0.06
|
|
|
|
(0.02
|
)
|
|
|
(33.3
|
)%
|
|
Other (5)
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Income tax impact of adjustments (6)
|
|
|
|
(0.14
|
)
|
|
|
(0.08
|
)
|
|
|
(0.06
|
)
|
|
|
75.0
|
%
|
|
Adjusted Diluted EPS (Non-GAAP)
|
|
|
$
|
0.35
|
|
|
$
|
0.18
|
|
|
$
|
0.17
|
|
|
|
94.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted shares outstanding (GAAP)
|
|
|
|
217,212,222
|
|
|
|
226,323,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (GAAP)
|
|
|
$
|
992
|
|
|
$
|
991
|
|
|
$
|
1
|
|
|
|
0.1
|
%
|
|
LIFO reserve change (3)
|
|
|
|
19
|
|
|
|
10
|
|
|
|
9
|
|
|
|
90.0
|
%
|
|
Adjusted Gross profit (Non-GAAP)
|
|
|
$
|
1,011
|
|
|
$
|
1,001
|
|
|
$
|
10
|
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (GAAP)
|
|
|
$
|
889
|
|
|
$
|
915
|
|
|
$
|
(26
|
)
|
|
|
(2.8
|
)%
|
|
Depreciation and amortization expense
|
|
|
|
(81
|
)
|
|
|
(108
|
)
|
|
|
27
|
|
|
|
(25.0
|
)%
|
|
Restructuring charges (1)
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Share-based compensation expense (2)
|
|
|
|
(7
|
)
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
133.3
|
%
|
|
Business transformation costs (4)
|
|
|
|
(8
|
)
|
|
|
(13
|
)
|
|
|
5
|
|
|
|
(38.5
|
)%
|
|
Other (5)
|
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
1
|
|
|
|
(33.3
|
)%
|
|
Adjusted Operating expenses (Non-GAAP)
|
|
|
$
|
789
|
|
|
$
|
786
|
|
|
$
|
3
|
|
|
|
0.4
|
%
|
|
(*) Amounts may not add due to rounding.
|
|
NM - Not Meaningful
|
|
|
|
(1)
|
|
Consists primarily of severance and related costs and organizational
realignment costs.
|
|
(2)
|
|
Share-based compensation expense for vesting of stock awards and
share purchase plan.
|
|
(3)
|
|
Represents the non-cash impact of LIFO reserve adjustments.
|
|
(4)
|
|
Consists primarily of costs related to significant process and
systems redesign across multiple functions.
|
|
(5)
|
|
Other includes gains, losses or charges as specified under our debt
agreements.
|
|
(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 considering the impact of
permanent differences and valuation allowances.
|
|
|
|
US FOODS HOLDING CORP.
|
|
Non-GAAP Reconciliation
|
|
Net Debt and Net Leverage Ratios
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 30,
|
|
|
|
April 1,
|
|
|
($ in millions, except ratios) *
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt (GAAP)
|
|
|
$
|
3,630
|
|
|
|
$
|
3,757
|
|
|
|
$
|
3,855
|
|
|
Cash, cash equivalents and restricted cash
|
|
|
|
(86
|
)
|
|
|
|
(119
|
)
|
|
|
|
(152
|
)
|
|
Net Debt (Non-GAAP)
|
|
|
$
|
3,544
|
|
|
|
$
|
3,638
|
|
|
|
$
|
3,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
|
|
$
|
1,067
|
|
|
|
$
|
1,058
|
|
|
|
$
|
984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio (2)
|
|
|
|
3.3
|
|
|
|
|
3.4
|
|
|
|
|
3.8
|
|
|
(*) Amounts may not add due to rounding.
|
|
|
|
(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/20180508005851/en/
Source: US Foods