Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q2 2022 Earnings Presentation
25 slides from Us Foods's earnings presentation, Aug 11, 2022
Slide 1: Q2 Fiscal Year 2022 Results
Q2 Fiscal Year 2022 Results August 11, 2022
Slide 2: Disclaimer Page
Disclaimer Page Cautionary Statements Regarding Forward-Looking Information Statements in this presentation 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,” “projec
Slide 3: US Foods Delivers Continued Growth in Second Quarter
US Foods Delivers Continued Growth in Second Quarter 1 Demonstrated ongoing execution of our long-range plan as evidenced by strong earnings 2 Delivered continued market share gains in key customer types 3 Positioned well to meet the challenges of the macro environment 3
Slide 4: Significant Progress in Q2 2022
Significant Progress in Q2 2022 Delivered Strong Financial Results Continued Supply Chain Progress • Grew Net Sales 15% • Expanded warehouse technology implementation • Continued Gross Profit per case strength • Continued inbound logistics improvement • Grew Adj. EBITDA 11% • Improved service levels
Slide 5: Diversified Business Performing Well in Resilient Industry
Diversified Business Performing Well in Resilient Industry Key Customer Type Performance Customer Mix as a % of Net Sales • Market share gains in key customer types • IND continues to exceed 2019 levels and grow share Other • National Chain mix optimization leading to better margins 17% • Continued
Slide 6: Continued Long Range Plan Progress Across All Pillars
Continued Long Range Plan Progress Across All Pillars Grow Profitable Further Optimize Improve Operational Market Share Gross Margins Efficiencies Restaurants on track to Continued momentum Cases per mile above meet or exceed our target with inbound logistics 2019 levels in Q2 market growth of
Slide 7: Key Strategic Priorities to Create Shareholder Value
Key Strategic Priorities to Create Shareholder Value Execute Enhance Customer Prudent Capital Long-Range Plan Experience Allocation • Grow Profitable Market • Continue to deliver strong • Invest in business Share service levels • Reduce leverage • Optimize Margins • Launch next-gen digital tool • Re
Slide 8: Q2 2022 Financial Review
Q2 2022 Financial Review Dirk Locascio Chief Financial Officer 8
Slide 9: Strong Second Quarter Fiscal 2022 Results
Strong Second Quarter Fiscal 2022 Results • Adj. EBITDA(1) grew 11% to $368M • Adj. Diluted EPS(1) of $0.67 • Net sales increased 15% to $8.8B • Total organic case volume flat compared to +50% growth in Q2 2021 • IND organic case volume flat compared to +74% growth in Q2 2021 • Continued strong Gros
Slide 10: Quarterly Case Volume Continues to Improve vs 2019
Quarterly Case Volume Continues to Improve vs 2019 Versus 2019 Year-over-Year Organic Case Growth by Quarter (1) Organic Case Growth by Quarter (1) Independent Restaurants Independent Restaurants 80% Healthcare/Hospitality 10% Healthcare/Hospitality All Other All Other 70% Total Case Growth Total Ca
Slide 11: Fiscal 2022 Guidance and Key Macro Considerations
Fiscal 2022 Guidance and Key Macro Considerations 2022 Macro Considerations Fiscal Year 2022 Guidance Restaurants: ~1.5x market Volume All other: ~1x market(1) • Labor Adjusted EBITDA(2) $1.2B - $1.3B • Inflation Adjusted Diluted EPS(2)(3) $1.95 - $2.25 • Consumer spending Interest Expense (Revised)
Slide 12: Continued Focus on Reducing Net Leverage Ratio
Continued Focus on Reducing Net Leverage Ratio Q2 2022 Q2 2021 In Millions ($) Total Debt $5,020 $5,515 Cash, Cash Equivalents & Restricted Cash $(197) $(699) Net Debt(1) $4,823 $4,816 Net Leverage Ratio(1) 4.2x 5.4x 1.2x Net Leverage Ratio Reduction (1) Reconciliations of these non-GAAP measures ar
Slide 13: We Help You Make It
WE HELP YOU US. MAKE IT"
Slide 14: Appendix
Appendix: Q2 Fiscal 2022 Summary Non-GAAP Reconciliations 14
Slide 15: Quarterly Case Volume Trend vs Prior Year
Quarterly Case Volume Trend vs Prior Year (1) Independent Restaurant Case Growth Organic Case Growth by Quarter (1) YOY percent change for total and organic cases YOY percent change Organic Acquisitions Independent Restaurants 79.1% 80% Healthcare/Hospitality All Other 70% 74.4% 60% (32.1%) (6.8%) (
Slide 16: Second Quarter Financial Performance
Second Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 13 Weeks Ended 13 Weeks Ended ($ in millions, except per share data) July 2, 2022 July 3, 2021 Change July 2, 2022 July 3, 2021 Change Case Growth (0.4)% Net Sales 8,827 7,663 15.2% Gross Profit 1,383 1,169 18.3% 1,44
Slide 17: Year to Date Financial Performance
Year to Date Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 26 Weeks Ended 26 Weeks Ended ($ in millions, except per share data) July 2, 2022 July 3, 2021 Change July 2, 2022 July 3, 2021 Change Case Growth 1.7% Net Sales 16,625 13,958 19.1% Gross Profit 2,578 2,172 18.7% 2,715
Slide 18: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended 26 Weeks Ended (unaudited) (unaudited) ($ in millions) July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Gross profit (GAAP) $1,383 $1,169 $2,578 $2,172 LIFO reserve change (1) 65 97 137 118 Adjusted Gro
Slide 19: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the non-cash impact of LIFO reserve adjustments. 2. Consists primarily of non-CEO severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expe
Slide 20: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended 26 Weeks Ended (unaudited) (unaudited) ($ in millions) July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Net income available to common shareholders (GAAP) $61 $46 $45 $7 Series A Preferred Stock Dividends (9) (9) (18
Slide 21: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 1. Consists primarily of non-CEO 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.
Slide 22: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended 26 Weeks Ended (unaudited) (unaudited) July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Diluted EPS (GAAP) $0.27 $0.20 $0.20 $0.03 Restructuring and asset impairment costs (1) — — — 0.02 Share-based compensation ex
Slide 23: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of non-CEO severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan.
Slide 24: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) July 2, 2022 January 1, 2022 July 3, 2021 Total Debt (GAAP) $5,020 $5,011 $5,515 Cash, cash equivalents and restricted cash (197) (148) (699) Net Debt (Non-GAAP) $4,823 $4,863 $4,816 Adjusted EBITDA
Slide 25: We Help You Make It
WE HELP YOU US. MAKE IT"