Slide 1: Sysco 1Q12 Earnings Results
Sysco 1Q12 Earnings Results November 7, 2011
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding our guidance for fiscal 2012, including fiscal 2012 estimates with respect to capital spending, capital expenditure
Slide 3: Bill DeLaney, President & CEO
Bill DeLaney President & CEO 3
Slide 4: 1Q12 Highlights
1Q12 Highlights 4 Adjusted1 Adjusted1 Reported Reported $ Millions 1Q12 YOY % Change 1Q12 YOY % Change Sales $10,586 8.6% $10,586 8.6% Gross Profit $1,948 5.5% $1,948 5.5% Operating Expenses $1,402 5.3% $1,438 7.3% Operating Income $546 6.1% $509 0.6% Net Earnings $325 8.8% $303 1.2% EPS $0.55 7.8%
Slide 5: Key Takeaways
Key Takeaways 5 The pace and extent of the economic recovery remains uneven and difficult to predict We are focused on strengthening our competitive position and providing a strong foundation for long-term growth Sysco's capabilities are unique in the industry and position us well to achieve our fin
Slide 6: Chris Kreidler, EVP & CFO
Chris Kreidler EVP & CFO 6
Slide 7: Sales Growth
Sales Growth 7 Total Sysco (CHART) 1 Components of Sales Growth 7.4% 5.8% 9.1% 8.5% 8.6% 1 Real growth defined as the nominal change in sales growth less inflation, acquisitions, and foreign exchange
Slide 8: Gross Profit Trend
Gross Profit Trend 8 +5.5% YOY (CHART) ($ in millions)
Slide 9: Operating Expenses
Operating Expenses 9 (YOY change; $ in millions) 1 See Non-GAAP reconciliations at the end of this presentation. 1Q12 Reported operating expense +7.3% Adjusted1 operating expense +5.3% Excluding gross business transformation expense and COLI
Slide 10: Operating Income
Operating Income 10 1 Excludes impact of COLI and gross business transformation expenses. See Non-GAAP reconciliations at the end of this presentation. +6.1% YOY1 (CHART) ($ in millions)
Slide 11: EPS
EPS 11 (CHART) (CHART) 1 Excludes impact of COLI and gross business transformation expenses. See Non-GAAP reconciliations at the end of this presentation. +7.8% YOY
Slide 12: 1Q12 Highlights Adjusted Results
1Q12 Highlights 12 Adjusted Results1 Adjusted Results1 $ Millions 1Q12 YOY % Change Sales $10,586 8.6% Gross Profit $1,948 5.5% Operating Expenses $1,402 5.3% Operating Income $546 6.1% EPS $0.55 7.8% 1 Excludes impact of COLI and gross business transformation expenses. See Non-GAAP reconciliations
Slide 13: Capital Expenditures
Capital Expenditures 13 (CHART) Capital Expenditures ($ millions) 1Q12 New facilities under construction: Long Island, Boston, Central Texas Expansions underway in several locations
Slide 14: FY12 Guidance
FY12 Guidance 14 Guidance FY12 Status Capital spending $700 - 750 million Prior estimate $750 - 800 million Business Transformation CapEx (included in above) $100 - 120 million No change Gross Business Transformation expense $250- 275 million Prior estimate $280 - 300 million Pension expense $25 mil
Slide 15: Good things come from Sysco
Good things come from Sysco
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations 16
Slide 17: 1Q12 Financial Results
1Q12 Financial Results Sysco’s results of operations are impacted by costs from our multi-year Business Transformation Project. Additionally, near the end of fiscal 2011, we reallocated all of our investments in our COLI policies into low-risk, fixed-income securities and therefore we do not expect
Slide 18: 1Q12 Financial Results (continued)
1Q12 Financial Results (continued) 13-Week Period Ended October 1, 2011 13-Week Period Ended October 1, 2011 13-Week Period Ended October 1, 2011 13-Week Period Ended October 1, 2011 13-Week Period Ended October 1, 2011 13-Week Period Ended October 1, 2011 13-Week Period Ended October 1, 2011 GAAP B
Slide 19: Operating Income and Margin
($in 000's) 1Q11 2Q11 3Q11 4Q11 1Q12 Operating Income 506,240 437,025 427,487 560,750 509,340 Less: COLI (gain) loss (13,518) (10,335) (5,655) 1,310 (794) Gross Business Transformation expense 21,476 24,239 24,289 32,623 37,005 Adjusted Operating Income excluding COLI and gross business transformati