ROSEMONT, Ill.--(BUSINESS WIRE)--
US Foods Holding Corp. (NYSE: USFD),one of the largest
foodservice distributors in the United States, today announced results
for the first quarter of fiscal 2019.
First Quarter Fiscal 2019 Highlights
-
Total case volume increased 1.4%; independent restaurant case volume
increased 5.5%
-
Net sales increased 3.6% to $6.0 billion
-
Gross profit increased 6.0% to $1,052 million
-
Income before income taxes increased $28 million to $91 million
-
Net income increased $4 million to $71 million
-
Adjusted EBITDA increased 3.6% to $232 million
-
Diluted EPS increased 3.2% to $0.32; Adjusted Diluted EPS increased
5.7% to $0.37
CEO Perspective
“Our first quarter fiscal 2019 results were in line with our
expectations,” said Chairman and CEO Pietro Satriano. “We accelerated
case volumes across all customer types and are particularly pleased with
our 5.5% organic independent restaurant case growth rate, our best
quarter since third quarter fiscal 2016. We expanded our adjusted
operating leverage per case for the 13th quarter in a row, resulting in
Adjusted EBITDA growth of 3.6%. We remain favorable on the overall
industry outlook and expect to deliver the full year fiscal 2019
guidance targets that we discussed on our fourth quarter call.”
First Quarter Fiscal 2019 Results
Total case volume increased 1.4% from the prior year while independent
restaurant case volume increased 5.5%, all on an organic basis. Net
sales of $6,031 million for the quarter increased 3.6% from the prior
year, due to year-over-year inflation in poultry, produce and grocery
items and an increase in case volume.
Gross profit of $1,052 million increased $60 million, or 6.0%, from the
prior year, primarily driven by margin expansion initiatives, an
increase in case volume and the favorable year-over-year change in the
last-in, first-out (LIFO) reserve. Gross profit as a percentage of Net
sales was 17.4%. Adjusted Gross profit was $1,050 million, a 3.9%
increase from the prior year, driven by margin expansion initiatives and
an increase in case volume. Adjusted Gross profit as a percentage of Net
sales was 17.4%.
Operating expenses were $921 million, an increase of 3.6% from the prior
year. The increase was driven by higher wage, distribution and
acquisition-related costs, partially offset by the positive impact of
expense control initiatives. Adjusted Operating expenses for the quarter
were $820 million, a 3.8% increase from the prior year.
Income before income taxes was $91 million, a $28 million increase from
the prior year.
Net income for the quarter was $71 million, up $4 million from
$67 million in the prior year as a result of the Gross profit and
Operating expense factors discussed above. Adjusted EBITDA was
$232 million, an increase of $8 million, or 3.6%, compared to the prior
year. Diluted EPS increased 3.2% to $0.32 and Adjusted Diluted EPS
increased 5.7% to $0.37.
Cash Flow and Capital Transactions
Net cash provided by operating activities for the first three months of
fiscal 2019 was $154 million, a decrease of $38 million from the prior
year, primarily driven by working capital benefits during the first
fiscal quarter of 2018 that did not repeat to the same extent in the
first fiscal quarter of 2019. Cash capital expenditures for the first
three months of fiscal 2019 totaled $61 million, an increase of
$4 million from the prior year.
Net Debt at the end of the first quarter of fiscal 2019 was
$3.3 billion, a decrease of $63 million versus the end of fiscal 2018.
The ratio of Net Debt to Adjusted EBITDA was 3.0x at the end of the
first quarter of fiscal 2019, which was flat as compared to the end of
fiscal 2018.
Outlook for Full Year Fiscal 2019
The company reiterates its full year fiscal 2019 guidance provided on
February 12, 2019.
Conference Call and Webcast Information
US Foods' first quarter fiscal 2019 earnings call will be broadcast live
via the internet on May 7, 2019 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 7497777. The presentation slides reviewed during the
webcast will be available shortly before that time. 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 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,” “more,” “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; changes in our relationships with customers and group
purchasing organizations; our ability to achieve increased sales to
independent restaurants; effective consummation and integration of
acquisitions; 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; 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; product liability claims; adverse judgments or settlements
resulting from litigation; disruptions of existing technologies and
implementation of new technologies; cybersecurity incidents; management
of retirement benefits and pension obligations; extreme weather
conditions, natural disasters and other catastrophic events; risks
associated with intellectual property, including potential infringement;
indebtedness and restrictions under agreements governing indebtedness;
and potential interest rate increases.
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 29, 2018, which was filed
with the Securities and Exchange Commission on February 14, 2019. 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.
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 income 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 income, plus Interest
expense-net, Income tax (benefit)/provision, and Depreciation and
amortization. Adjusted EBITDA is EBITDA adjusted for (1) Restructuring
costs 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 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 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 costs, 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 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 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 2019 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 30,
|
|
|
December 29,
|
|
($ in millions)
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
92
|
|
|
|
$
|
104
|
|
|
Accounts receivable, less allowances of $30 and $29
|
|
|
1,408
|
|
|
|
1,347
|
|
|
Vendor receivables, less allowances of $3 and $3
|
|
|
170
|
|
|
|
106
|
|
|
Inventories—net
|
|
|
1,272
|
|
|
|
1,279
|
|
|
Prepaid expenses
|
|
|
111
|
|
|
|
106
|
|
|
Assets held for sale
|
|
|
7
|
|
|
|
7
|
|
|
Other current assets
|
|
|
21
|
|
|
|
30
|
|
|
Total current assets
|
|
|
3,081
|
|
|
|
2,979
|
|
|
Property and equipment—net
|
|
|
1,849
|
|
|
|
1,842
|
|
|
Goodwill
|
|
|
3,967
|
|
|
|
3,967
|
|
|
Other intangibles—net
|
|
|
314
|
|
|
|
324
|
|
|
Deferred tax assets
|
|
|
7
|
|
|
|
7
|
|
|
Other assets
|
|
|
173
|
|
|
|
67
|
|
|
Total assets
|
|
|
$
|
9,391
|
|
|
|
$
|
9,186
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Cash overdraft liability
|
|
|
$
|
155
|
|
|
|
$
|
157
|
|
|
Accounts payable
|
|
|
1,534
|
|
|
|
1,359
|
|
|
Accrued expenses and other current liabilities
|
|
|
419
|
|
|
|
454
|
|
|
Current portion of long-term debt
|
|
|
106
|
|
|
|
106
|
|
|
Total current liabilities
|
|
|
2,214
|
|
|
|
2,076
|
|
|
Long term debt
|
|
|
3,275
|
|
|
|
3,351
|
|
|
Deferred tax liabilities
|
|
|
293
|
|
|
|
298
|
|
|
Other long-term liabilities
|
|
|
299
|
|
|
|
232
|
|
|
Total liabilities
|
|
|
6,081
|
|
|
|
5,957
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
2
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
2,795
|
|
|
|
2,780
|
|
|
Retained earnings
|
|
|
602
|
|
|
|
531
|
|
|
Accumulated other comprehensive loss
|
|
|
(89
|
)
|
|
|
(84
|
)
|
|
Total shareholders’ equity
|
|
|
3,310
|
|
|
|
3,229
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
9,391
|
|
|
|
$
|
9,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US FOODS HOLDING CORP.
|
|
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
|
13-Weeks Ended
|
|
|
|
March 30,
|
|
|
March 31,
|
|
($ in millions, per share data) *
|
|
|
2019
|
|
|
2018
|
|
Net sales
|
|
|
$
|
6,031
|
|
|
|
$
|
5,823
|
|
|
Cost of goods sold
|
|
|
4,979
|
|
|
|
4,831
|
|
|
Gross profit
|
|
|
1,052
|
|
|
|
992
|
|
|
Distribution, selling and administrative costs
|
|
|
921
|
|
|
|
887
|
|
|
Restructuring costs
|
|
|
—
|
|
|
|
2
|
|
|
Total operating expenses
|
|
|
921
|
|
|
|
889
|
|
|
Operating income
|
|
|
131
|
|
|
|
103
|
|
|
Other income—net
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
Interest expense—net
|
|
|
42
|
|
|
|
43
|
|
|
Income before income taxes
|
|
|
91
|
|
|
|
63
|
|
|
Income tax provision (benefit)
|
|
|
20
|
|
|
|
(4
|
)
|
|
Net income
|
|
|
$
|
71
|
|
|
|
$
|
67
|
|
|
Net income per share
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.33
|
|
|
|
$
|
0.31
|
|
|
Diluted
|
|
|
$
|
0.32
|
|
|
|
$
|
0.31
|
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
|
|
217,234,403
|
|
|
|
215,080,238
|
|
|
Diluted
|
|
|
218,785,886
|
|
|
|
217,212,222
|
|
|
|
|
(*) Prior year amounts may have been rounded to conform with the
current year presentation.
|
|
|
|
US FOODS HOLDING CORP.
|
|
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
13-Weeks Ended
|
|
($ in millions) *
|
|
|
March 30,
|
|
|
March 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
71
|
|
|
|
$
|
67
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
81
|
|
|
|
81
|
|
|
Amortization of deferred financing costs
|
|
|
1
|
|
|
|
1
|
|
|
Deferred tax (benefit) provision
|
|
|
(3
|
)
|
|
|
27
|
|
|
Share-based compensation expense
|
|
|
6
|
|
|
|
7
|
|
|
Provision for doubtful accounts
|
|
|
6
|
|
|
|
3
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Increase in receivables
|
|
|
(131
|
)
|
|
|
(135
|
)
|
|
Decrease in inventories—net
|
|
|
7
|
|
|
|
1
|
|
|
Increase in prepaid expenses and other assets
|
|
|
(8
|
)
|
|
|
(12
|
)
|
|
Increase in accounts payable and cash overdraft liability
|
|
|
183
|
|
|
|
283
|
|
|
Decrease in accrued expenses and other liabilities
|
|
|
(59
|
)
|
|
|
(131
|
)
|
|
Net cash provided by operating activities
|
|
|
154
|
|
|
|
192
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Acquisition of businesses—net of cash
|
|
|
—
|
|
|
|
(1
|
)
|
|
Proceeds from sales of property and equipment
|
|
|
—
|
|
|
|
1
|
|
|
Purchases of property and equipment
|
|
|
(61
|
)
|
|
|
(57
|
)
|
|
Net cash used in investing activities
|
|
|
(61
|
)
|
|
|
(57
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from debt borrowings
|
|
|
1,004
|
|
|
|
864
|
|
|
Principal payments on debt and financing leases
|
|
|
(1,119
|
)
|
|
|
(1,042
|
)
|
|
Contingent consideration paid for business acquisitions
|
|
|
—
|
|
|
|
(1
|
)
|
|
Proceeds from employee stock purchase plan
|
|
|
5
|
|
|
|
4
|
|
|
Proceeds from exercise of stock options
|
|
|
6
|
|
|
|
7
|
|
|
Tax withholding payments for net share-settled equity awards
|
|
|
(2
|
)
|
|
|
—
|
|
|
Net cash used in financing activities
|
|
|
(106
|
)
|
|
|
(168
|
)
|
|
Net decrease in cash, cash equivalents and restricted cash
|
|
|
(13
|
)
|
|
|
(33
|
)
|
|
Cash, cash equivalents and restricted cash—beginning of period (1) |
|
|
105
|
|
|
|
119
|
|
|
Cash, cash equivalents and restricted cash—end of period(1) |
|
|
$
|
92
|
|
|
|
$
|
86
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
Interest (net of amounts capitalized) paid
|
|
|
$
|
36
|
|
|
|
$
|
33
|
|
|
Income taxes paid—net
|
|
|
1
|
|
|
|
1
|
|
|
Property and equipment purchases included in accounts payable
|
|
|
17
|
|
|
|
22
|
|
|
Leased assets obtained in exchange for financing lease liabilities
|
|
|
38
|
|
|
|
50
|
|
|
Leased assets obtained in exchange for operating lease liabilities
|
|
|
2
|
|
|
|
—
|
|
|
Cashless exercise of stock options
|
|
|
1
|
|
|
|
—
|
|
|
|
|
(*) Prior year amounts may have been rounded to conform with the
current year presentation.
|
|
|
|
US FOODS HOLDING CORP.
|
|
Non-GAAP Reconciliation
|
|
(Unaudited)
|
|
|
|
|
|
13-Weeks Ended
|
|
|
|
|
|
|
|
|
|
March 30,
|
|
|
March 31,
|
|
|
|
|
|
|
|
($ in millions, except share and per share data) *
|
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
%
|
|
Net income (GAAP)
|
|
|
$
|
71
|
|
|
|
$
|
67
|
|
|
|
$
|
4
|
|
|
|
6.0
|
%
|
|
Interest expense—net
|
|
|
42
|
|
|
|
43
|
|
|
|
(1
|
)
|
|
|
(2.3
|
)%
|
|
Income tax provision (benefit)
|
|
|
20
|
|
|
|
(4
|
)
|
|
|
24
|
|
|
|
NM
|
|
Depreciation and amortization expense
|
|
|
81
|
|
|
|
81
|
|
|
|
—
|
|
|
|
0.0%
|
|
EBITDA (Non-GAAP)
|
|
|
214
|
|
|
|
187
|
|
|
|
27
|
|
|
|
14.4
|
%
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs (1) |
|
|
—
|
|
|
|
2
|
|
|
|
(2
|
)
|
|
|
(100.0
|
)%
|
|
Share-based compensation expense (2) |
|
|
6
|
|
|
|
7
|
|
|
|
(1
|
)
|
|
|
(14.3
|
)%
|
|
LIFO reserve change (3) |
|
|
(2
|
)
|
|
|
19
|
|
|
|
(21
|
)
|
|
|
(110.5
|
)%
|
|
Business transformation costs (4) |
|
|
1
|
|
|
|
8
|
|
|
|
(7
|
)
|
|
|
(87.5
|
)%
|
|
SGA acquisition related costs and other (5) |
|
|
13
|
|
|
|
1
|
|
|
|
12
|
|
|
|
NM
|
|
Adjusted EBITDA (Non-GAAP)
|
|
|
232
|
|
|
|
224
|
|
|
|
8
|
|
|
|
3.6
|
%
|
|
Depreciation and amortization expense
|
|
|
(81
|
)
|
|
|
(81
|
)
|
|
|
—
|
|
|
|
0.0%
|
|
Interest expense—net
|
|
|
(42
|
)
|
|
|
(43
|
)
|
|
|
1
|
|
|
|
(2.3
|
)%
|
|
Income tax provision, as adjusted (6) |
|
|
(28
|
)
|
|
|
(25
|
)
|
|
|
(3
|
)
|
|
|
12.0
|
%
|
|
Adjusted Net income (Non-GAAP)
|
|
|
$
|
81
|
|
|
|
$
|
75
|
|
|
|
$
|
6
|
|
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP)
|
|
|
$
|
0.32
|
|
|
|
$
|
0.31
|
|
|
|
$
|
0.01
|
|
|
|
3.2
|
%
|
|
Restructuring costs (1) |
|
|
—
|
|
|
|
0.01
|
|
|
|
(0.01
|
)
|
|
|
(100.0
|
)%
|
|
Share-based compensation expense (2) |
|
|
0.03
|
|
|
|
0.03
|
|
|
|
—
|
|
|
|
0.0%
|
|
LIFO reserve change (3) |
|
|
(0.01
|
)
|
|
|
0.09
|
|
|
|
(0.10
|
)
|
|
|
(111.1
|
)%
|
|
Business transformation costs (4) |
|
|
—
|
|
|
|
0.04
|
|
|
|
(0.04
|
)
|
|
|
(100.0
|
)%
|
|
SGA acquisition related costs and other (5) |
|
|
0.06
|
|
|
|
—
|
|
|
|
0.06
|
|
|
|
NM
|
|
Income tax impact of adjustments (6) |
|
|
(0.03
|
)
|
|
|
(0.13
|
)
|
|
|
0.10
|
|
|
|
(76.9
|
)%
|
|
Adjusted Diluted EPS (Non-GAAP)
|
|
|
$
|
0.37
|
|
|
|
$
|
0.35
|
|
|
|
$
|
0.02
|
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted shares outstanding (GAAP)
|
|
|
218,785,886
|
|
|
|
217,212,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (GAAP)
|
|
|
$
|
1,052
|
|
|
|
$
|
992
|
|
|
|
$
|
60
|
|
|
|
6.0
|
%
|
|
LIFO reserve change (3) |
|
|
(2
|
)
|
|
|
19
|
|
|
|
(21
|
)
|
|
|
(110.5
|
)%
|
|
Adjusted Gross profit (Non-GAAP)
|
|
|
$
|
1,050
|
|
|
|
$
|
1,011
|
|
|
|
$
|
39
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (GAAP)
|
|
|
$
|
921
|
|
|
|
$
|
889
|
|
|
|
$
|
32
|
|
|
|
3.6
|
%
|
|
Depreciation and amortization expense
|
|
|
(81
|
)
|
|
|
(81
|
)
|
|
|
—
|
|
|
|
NM
|
|
Restructuring costs (1) |
|
|
—
|
|
|
|
(2
|
)
|
|
|
2
|
|
|
|
(100.0
|
)%
|
|
Share-based compensation expense (2) |
|
|
(6
|
)
|
|
|
(7
|
)
|
|
|
1
|
|
|
|
(14.3
|
)%
|
|
Business transformation costs (4) |
|
|
(1
|
)
|
|
|
(8
|
)
|
|
|
7
|
|
|
|
(87.5
|
)%
|
|
SGA acquisition related costs and other (5) |
|
|
(13
|
)
|
|
|
(1
|
)
|
|
|
(12
|
)
|
|
|
NM
|
|
Adjusted Operating expenses (Non-GAAP)
|
|
|
$
|
820
|
|
|
|
$
|
790
|
|
|
|
$
|
30
|
|
|
|
3.8
|
%
|
|
(*) Prior year amounts may have been rounded to conform with the
current year presentation.
|
|
NM - Not Meaningful
|
|
|
|
(1)
|
|
Consists primarily of severance and related costs and organizational
realignment costs.
|
|
(2)
|
|
Share-based compensation expense for expected vesting of stock and
option awards and employee stock 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 the
agreements governing our indebtedness. The 2019 balance primarily
consists of acquisition-related costs.
|
|
(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 corporate 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 30,
|
|
|
December 29,
|
|
|
March 31,
|
|
($ in millions, except ratios)
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Total Debt (GAAP)
|
|
|
$
|
3,381
|
|
|
|
$
|
3,457
|
|
|
|
$
|
3,630
|
|
|
Cash, cash equivalents and restricted cash
|
|
|
(92
|
)
|
|
|
(105
|
)
|
|
|
(86
|
)
|
|
Net Debt (Non-GAAP)
|
|
|
$
|
3,289
|
|
|
|
$
|
3,352
|
|
|
|
$
|
3,544
|
|
|
Adjusted EBITDA (1) |
|
|
$
|
1,111
|
|
|
|
$
|
1,103
|
|
|
|
$
|
1,067
|
|
|
Net Leverage Ratio (2) |
|
|
3.0
|
|
|
|
3.0
|
|
|
|
3.3
|
|
|
(1)
|
|
Trailing Twelve Months Adjusted EBITDA
|
|
(2)
|
|
Net Debt/TTM Adjusted EBITDA
|
|
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190507005479/en/
INVESTOR CONTACT:
Melissa Napier
847-720-2767
Melissa.Napier@usfoods.com
MEDIA CONTACT:
Sara Matheu
847-720-2392
Sara.Matheu@usfoods.com
Source: US Foods