Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q4 2023 Earnings Presentation
27 slides from Us Foods's earnings presentation, Feb 15, 2024
Slide 1: Fiscal Fourth Quarter and Full Year 2023 Results
Fiscal Fourth Quarter and Full Year 2023 Results February 15, 2024
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: Focused Execution Driving Continued Growth and Strong Financial Performance
Focused Execution Driving Continued Growth and Strong Financial Performance Generated record $1.56 billion in full year Adjusted EBITDA driven by execution of 1 strategic initiatives propelling profitable growth and operating leverage improvement Advanced our customer value proposition through our d
Slide 4: Our Four-Pillar Strategy Drives Value Creation
Our Four-Pillar Strategy Drives Value Creation CULTURE SERVICE GROWTH PROFIT EMBRACE THE US FOODS® CULTURE DELIVER WORLD-CLASS SERVICE GROW MARKET SHARE EXPAND EBITDA MARGIN SAFE RELIABLE TARGET MARGIN SUPPORTIVE EFFICIENT DIFFERENTIATE PRODUCTIVITY RESPONSIBLE EASY-TO-USE BE FRESH OPTIMIZATION 4
Slide 5: Significant Achievements Against our Strategy in 2023
Significant Achievements Against our Strategy in 2023 CULTURE SAFE SUPPORTIVE RESPONSIBLE Improved safety performance by Donated more than $13 million Completed delivery of nearly 100 Embrace the 23% across the organization in food and supplies alternative fuel and electric vehicles US Foods® cultur
Slide 6: Fiscal Fourth Quarter and Full Year 2023 Financial Review
Fiscal Fourth Quarter and Full Year 2023 Financial Review Dirk Locascio Chief Financial Officer 6
Slide 7: Delivered Strong Earnings Growth and Margin Expansion
Delivered Strong Earnings Growth and Margin Expansion B/(W) vs. B/(W) vs. Q4 2023 FY 2023 Q4 2022 FY 2022 Total Case Volume +5.6% +4.4% Independent Restaurant +7.3% +6.9% Case Volume(1) Net Sales ($millions) $8,936 +4.9% $35,597 +4.5% Adjusted EBITDA(2) ($millions) $388 +10.9% $1,559 +19.0% Adjusted
Slide 8: Drove Adjusted EBITDA Improvement via Strong Execution
Drove Adjusted EBITDA Improvement via Strong Execution $10.00 Adj. Gross Profit Per Case(1) Adj. EBITDA Per Case(1) $9.00 $7.29 $7.62 +4.3% $6.29 $8.00 CAGR $2.50 $7.00 $6.00 $5.00 $1.93 $4.00 +$1.00 +$0.33 $2.00 $3.00 $1.63 $1.69 $2.00 $1.00 $- 2019 2022 2023 $1.50 Adj. OpEx Per Case(1) $1.00 $10.0
Slide 9: Strong Operating Cash Flow Creates Flexibility to Deploy Capital Strategically
Strong Operating Cash Flow Creates Flexibility to Deploy Capital Strategically to Enable Growth and Strengthen Capital Structure Operating Cash Flow ($M) $1,140 Capital Allocation Priorities $1,400 $1,200 $765 1 $1,000 $800 Invest in the business $600 $419 $400 $200 $- 2 Maintain leverage within tar
Slide 10: Further Strengthened Capital Structure Through Reduced Leverage
Further Strengthened Capital Structure Through Reduced Leverage Net Debt ($M) and Net Leverage(1) Strong Progress in 2023 $4,863 • Balanced capital structure through $4,643 measured actions taken during year 4.6x $4,405 3.5x • Achieved net leverage target of 2.5 – 3.0x 2.8x • Continued progress on d
Slide 11: Fiscal 2024 Guidance and Modeling Assumptions
Fiscal 2024 Guidance and Modeling Assumptions Fiscal 2024 Guidance Modeling Assumptions Case Growth 4.0% to 6.0% (2) Net Sales $37.5B to $38.5B Sales Inflation 0.5% to 1.5% Depreciation & Amortization $400M to $440M Adjusted EBITDA $1.69B to $1.74B (1) Interest Expense $320M to $335M Tax Rate ~26% A
Slide 12: Invest with US Foods
Invest with US Foods Leader in a highly fragmented and resilient industry with national scale; U.S only business 1 serving a diverse customer base Sustainable competitive advantages to drive market outperformance; well-positioned to 2 win in any macro environment Executing Long-Range Plan initiative
Slide 13: Investor Day Save the Date
SAVE THE DATE INVESTOR DAY JUNE 5, 2024 US FOODS HQ ROSEMONT, ILLINOIS 13
Slide 14: Appendix: Non-GAAP Reconciliations
Appendix: Fiscal Fourth Quarter and Full Year 2023 Summary Non-GAAP Reconciliations 14
Slide 15: Quarterly Case Volume Trend vs. Prior Year
Quarterly Case Volume Trend vs. Prior Year Organic Case Growth by Quarter(1) Independent Restaurant Case Growth(1) YOY percent change YOY percent change for total and organic cases Organic Acquisitions 20% Independent Restaurants 7.3% Healthcare/Hospitality 6.6% All Other 8.7% 8.9% 5.5% 5.7% 6.3% 3.
Slide 16: Debt Summary
Debt Summary Interest Rates as of Carrying Value as of Carrying Value as of Maturity Interest Terms ($ in millions) December 30, 2023 December 30, 2023 December 31, 2022 • Achieved net leverage target ABL Facility December 7, 2027 8.50% - - of 2.5 - 3.0x 2019 Incremental Term Loan Facility (net of $
Slide 17: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Reported (unaudited) Adjusted(1) (unaudited) 13 Weeks Ended 13 Weeks Ended December 30, 2023 December 31, 2022 Change December 30, 2023 December 31, 2022 Change ($ in millions, except per share data) Case Volume 5.6% Net Sales $8,936 $8,515 4.9% Gross Profit $1,5
Slide 18: Full Year 2023 Financial Performance
Full Year 2023 Financial Performance Reported (unaudited) Adjusted(1) (unaudited) Year Ended Year Ended December 30, 2023 December 31, 2022 Change December 30, 2023 December 31, 2022 Change ($ in millions, except per share data) Case Volume 4.4% Net Sales $35,597 $34,057 4.5% Gross Profit $6,148 $5,
Slide 19: Non-GAAP Reconciliation – Adjusted Gross Profit per Case, OpEx per Case, EBITDA per Case
Non-GAAP Reconciliation – Adjusted Gross Profit per Case, Adjusted OpEx per Case, Adjusted EBITDA per Case Adjusted(1) (unaudited) 52 Weeks Ended December 30, 2023 December 31, 2022 December 31, 2019 (Total cases and $ in millions, except per case data) Total Cases 807 773 733 Adjusted GP $6,147 $5,
Slide 20: Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended (unaudited) 52 Weeks Ended (unaudited) ($ in millions) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 December 28, 2019 Gross profit (GAAP) $1,590 $1,454 $6,148 $5,492 $4,587 LIFO
Slide 21: Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the impact of LIFO reserve adjustments. 2. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. 3. Share-based compensation expe
Slide 22: Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) 52 Weeks Ended (unaudited) ($ in millions) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 December 28, 2019 Net income available to common shareholders (GAAP) $147 $83 $499 $228 $385
Slide 23: 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 associated with organizational realignment and other impairment charges. For the 13 weeks and 52 weeks ended December 31, 2022, also consists of the write-off of old leases
Slide 24: Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) Year Ended (unaudited) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Diluted EPS (GAAP) $0.59 $0.37 $2.02 $1.01 Restructuring costs and asset impairment charges(1) 0.05 0.05 0.06
Slide 25: Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. For the 13 weeks and 52 weeks ended December 31, 2022, also consists of the write-off of old lease
Slide 26: Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) December 30, 2023 December 31, 2022 January 1, 2022 Total Debt (GAAP) $4,674 $4,854 $5,011 Cash, cash equivalents and restricted cash (269) (211) (148) Net Debt (non-GAAP) $4,405 $4,643 $4,863 Adjus
Slide 27: We Help You Make It
WE HELP YOU US. MAKE IT"