Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q2 2019 Earnings Presentation
20 slides from Us Foods's earnings presentation, Aug 6, 2019
Slide 1: Q2 Fiscal 2019 Results
Q2 Fiscal 2019 Results August 6, 2019
Slide 2: Cautionary statements regarding forward-looking information
Cautionary statements regarding forward-looking information This presentation contains “forward-looking statements” within the meaning of the federal securities laws concerning, among other things, our liquidity, our possible or assumed results of operations and our business strategies. These forwar
Slide 3: Second quarter results show sustained positive momentum
Second quarter results show sustained positive momentum Solid total case growth of 1.7% Strong independent restaurant growth Improvements in case growth for healthcare/hospitality and all other customers Operating leverage increased to $0.08 per case Strong gross profit per case gains driven by marg
Slide 4: Solid total case growth supported by strong independent growth
Solid total case growth supported by strong independent growth Independent Restaurant Case Growth Organic Case Growth by Quarter YOY percent change YOY percent change Organic Acquisitions Independent Restaurants 5.5% 10% Healthcare/Hospitality 4.8% All Other 4.3% 5.5% 8% 3.8% 3.9% 4.8% 3.3% 3.9% 6%
Slide 5: Our innovative products and technology continue to help customers "Make It"
Our innovative products and technology continue to help customers “Make It” Scoop E-Commerce Check Business Tools • Summer Scoop highlights takeout • Q2 independent restaurant • Toast adds an industry-leading packaging and menu options. penetration exceeded 60%. POS solution to our offering. • Scoop
Slide 6: Net Sales increase driven by case growth and product inflation
Net Sales increase driven by case growth and product inflation Q2 Net Sales $ Millions b/(w) Results Summary $6,443 Net Sales drivers: $6,158 4.6% • Solid total case growth • Inflation across multiple product categories, including grocery, poultry and produce 2018 Inflation/Mix Case Growth 2019 +2.9
Slide 7: Increased case growth and margin initiatives are driving Gross Profit dollar growth
Increased case growth and margin initiatives are driving Gross Profit dollar growth Q2 Gross Profit Results Summary $ Millions; Percent of Sales b/(w) $1,142 Gross Profit drivers: $1,114 2.5% • Margin expansion initiatives, including: • Private brand growth • Freight optimization 18.1% 17.7% (40) bp
Slide 8: Distribution costs in line with expectations; continue to manage through a challenging operating environment
Distribution costs in line with expectations; continue to manage through a challenging operating environment Q2 Operating Expense Results Summary $ Millions; Percent of Sales b/(w) $948 Operating Expense drivers: $908 4.4% • Higher wage and other distribution costs as expected • Continue to focus on
Slide 9: Second quarter results show continued strong operating leverage gains
Second quarter results show continued strong operating leverage gains Adjusted Gross Profit and Adjusted Operating Expense* FY 2019 Operating Leverage $/case higher/(lower) than prior year Q1 2019 $0.03 per case Adj GP Adj OPEX $0.25 Q2 2019 $0.08 per case $0.20 $0.09 per case $0.06 per case $0.18 $
Slide 10: Strong performance across key financial metrics
Strong performance across key financial metrics 2018 2019 Q2 Adjusted EBITDA* Q2 Adjusted Diluted Earnings Q2 Net Income $ Millions; Percent of Sales Per Share* $ Millions $ $320 $0.64 $300 $0.57 $140 6.7% 12.3% $126 $124 $116 4.9% 5.0% GAAP Adjusted* YTD Adjusted EBITDA* YTD Adjusted Diluted Earnin
Slide 11: Strong operating cash flow; Net Debt continues to decline
Strong operating cash flow; Net Debt continues to decline YTD Operating Cash Flow Q2 Net Debt* and Leverage $ Millions $ Millions Leverage ** $394 $3,499 $3,352 $311 $3,108 3.2x 3.0x 2.7x 2018 2019 Q2 2018 Q4 2018 Q2 2019 * Reconciliations of non-GAAP measures are provided in the Appendix ** Net Deb
Slide 12: Reiterating full year fiscal 2019 guidance
Reiterating full year fiscal 2019 guidance Guidance Case Growth 1-2% Adjusted EBITDA Growth At Least 5% Cash CAPEX (excluding future acquisitions) $260-270 million Interest Expense $170-175 million Depreciation & Amortization $340-350 million Adjusted Effective Tax Rate 25-26% Adjusted Diluted EPS $
Slide 13: Appendix
APPENDIX: • Q2 FISCAL 2019 SUMMARY • NON-GAAP RECONCILIATIONS
Slide 14: 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*) June 29, 2019 June 30, 2018 Change June 29, 2019 June 30, 2018 Change Case Growth 1.7% Net Sales 6,443 6,158 4.6% Gross Profit 1,142 1,114 2.5% 1,1
Slide 15: 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*) June 29, 2019 June 30, 2018 Change June 29, 2019 June 30, 2018 Change Case Growth 1.6% Net Sales 12,474 11,981 4.1% Gross Profit 2,194 2,106 4.2% 2,2
Slide 16: 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)* June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Gross profit (GAAP) $1,142 $1,114 $2,194 $2,106 LIFO reserve change (1) 14 (11) 12 8 Adjusted
Slide 17: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended 26 Weeks Ended (unaudited) (unaudited) June 29, June 30, June 29, June 30, ($ in millions)* 2019 2018 2019 2018 Net income (GAAP) $116 $126 $187 $193 Interest expense—net 42 48 84 91 Income tax provision (benefit) 38 35
Slide 18: 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) June 29, June 30, June 29, June 30, 2019 2018 2019 2018 Diluted EPS (GAAP) $0.53 $0.58 $0.85 $0.89 Restructuring (benefits) costs (1) — — — — Share-based compensation expense (2)
Slide 19: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) June 29, 2019 December 29, 2018 June 30, 2018 Total Debt (GAAP) $3,205 $3,457 $3,599 Cash, cash equivalents and restricted cash (97) (105) (100) Net Debt (Non-GAAP) $3,108 $3,352 $3,499 Adjusted EBI
Slide 20: We help you make it
WE HELP YOU US. MAKE IT