Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q3 2021 Earnings Presentation
26 slides from Us Foods's earnings presentation, Nov 8, 2021
Slide 1: Q3 Fiscal 2021 Results
Q3 Fiscal 2021 Results November 8, 2021
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: Strategic focus aligned with pre-pandemic strategy
Strategic focus aligned with pre-pandemic strategy 1 Profitably grow market share through Great Food. Made Easy. Optimize margins with existing customers 2 Focus intensely on operational efficiency 3 2
Slide 4: US Foods expected to outpace broader industry recovery
US Foods expected to outpace broader industry recovery Relative Foot Traffic at FAFH Businesses(1) Technomic Industry Real Sales Forecast(2) Week Starting Date; 2020-2021 Annual Periods; 2019-2025 1.4 110.0 1.2 100.0 1.0 0.8 90.0 0.6 80.0 0.4 0.2 70.0 0.0 60.0 2019 2020 2021 2022 2023 2024 2025 Rest
Slide 5: Consistent third quarter volume growth
Consistent third quarter volume growth US Foods Monthly Case Volume by Customer Type(1) YOY Percent Change vs Fiscal 2019 Baseline Restaurants Healthcare Hospitality Total 10% • Restaurants remain above 2019 0% • Change in growth rate in line with -10% industry trends -20% • Accelerated growth rate
Slide 6: Great Food. Made Easy. driving market share gains
Great Food. Made Easy. driving market share gains INNOVATIVE PRODUCTS LEADING TECHNOLOGY TEAM-BASED SELLING • Since starting ScoopTM in 2011, • New enhancements to provide • Recognized for our programs have launched 540 exclusive better visibility during ordering aimed at helping independent product
Slide 7: Gross profit and operating initiatives position us for margin expansion
Gross profit and operating initiatives position us for margin expansion while also improving the customer experience Continued focus on Gross Profit dollar growth • Timely pass through of product inflation • Private label sales returning to pre-COVID levels • Optimize customer mix for profitability
Slide 8: Acquisitions continue to perform in line with our expectations
Acquisitions continue to perform in line with our expectations CHEF’STORE • Same store sales remain ahead of 2019 • Expect 2021 Adjusted EBITDA to exceed 2019 levels • Activities underway to increase number of new store openings in 2022 Food Group • Completed six system conversions to date; on track
Slide 9: Q3 Fiscal 2021 Financial Results
Q3 FISCAL 2021 FINANCIAL RESULTS 8
Slide 10: Third quarter financial results demonstrate strength of business
Third quarter financial results demonstrate strength of business • Adjusted EBITDA in line with our expectations • Volume in line vs Q2; seeing re-acceleration in October • Continued strong Gross Profit per case performance helped offset higher supply chain labor costs • Solid cash flow and further
Slide 11: Strategy driving financial results as the recovery continues to progress
Strategy driving financial results as the recovery continues to progress Q3 Net Sales Inflation: 11.5% Q3 Adjusted Gross Profit(1) Q3 Adjusted Operating Expense(1) $ Millions Case Volume: 18.5% Percent of Sales; $ Millions Percent of Sales; $ Millions Mix: 4.9% $7,890 $1,273 $988 $977 $774 $5,848 16
Slide 12: Delivering improved earnings as case volume recovers
Delivering improved earnings as case volume recovers Q3 Adjusted EBITDA (1) Q3 Adjusted Net Income (1) Q3 Adjusted Diluted Earnings Per $ Millions; Percent of Sales $ Millions Share(1) $ $291 $119 $209 $0.48 $42 $0.19 3.6% 3.7% 2020 2021 2020 2021 2020 2021 (1) Reconciliations of non-GAAP measures a
Slide 13: Continued net debt and leverage reduction
Continued net debt and leverage reduction YTD Operating Cash Flow Q3 Net Debt and Leverage(1) $ Millions $ Millions Leverage $533 $4,920 $520 $4,768 $4,624 7.6x 5.9x 4.8x 2020 2021 Q3 2020 Q4 2020 Q3 2021 (1) Reconciliations of non-GAAP measures and Net Debt / TTM Adjusted EBTIDA are provided in the
Slide 14: Appendix: Q3 Fiscal 2021 Summary Non-GAAP Reconciliations
APPENDIX: Q3 FISCAL 2021 SUMMARY NON-GAAP RECONCILIATIONS 13
Slide 15: Quarterly case volume trend vs fiscal year 2020
Quarterly case volume trend vs fiscal year 2020 Independent Restaurant Case Growth (1) 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
Slide 16: Third quarter GAAP results
Third quarter GAAP results Q3 GAAP Gross Profit Q3 GAAP Operating Expense Q3 GAAP Net Income/(Loss) (1) Percent of Sales; $ Millions Percent of Sales; $ Millions $ Millions $1,241 $1,106 $974 $896 $55 ($2) 16.7% 15.7% 15.3% 14.0% 2020 2021 2020 2021 2020 2021 (1) Net Income/(Loss) available to commo
Slide 17: Third Quarter Financial Performance
Third Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 13 Weeks Ended 13 Weeks Ended October 2, September 26, October 2, September 26, ($ in millions, except per share data) 2021 2020 Change 2021 2020 Change Case Growth 18.5% Net Sales 7,890 5,848 34.9% Gross Profit 1,241
Slide 18: Year to Date Financial Performance
Year to Date Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 39 Weeks Ended 39 Weeks Ended October 2, September 26, October 2, September 26, ($ in millions, except per share data) 2021 2020 Change 2021 2020 Change Case Growth 20.8% Net Sales 21,848 16,747 30.5% Gross Profit 3,413
Slide 19: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended 39 Weeks Ended (unaudited) (unaudited) October 2, September 26, October 2, September 26, ($ in millions) 2021 2020 2021 2020 Gross profit (GAAP) $1,241 $974 $3,413 $2,711 LIFO reserve change (1) 32 3 150 9
Slide 20: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the non-cash impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for
Slide 21: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended 39 Weeks Ended (unaudited) (unaudited) October 2, September October 2, September ($ in millions) 2021 26, 2020 2021 26, 2020 Net income (loss) available to common shareholders (GAAP) $55 $(2) $62 ($231) Series A convert
Slide 22: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 1. Consists primarily of 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. Represe
Slide 23: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended 39 Weeks Ended (unaudited) (unaudited) October 2, September October 2, September 2021 26, 2020 2021 26, 2020 Diluted EPS (GAAP) $0.24 ($0.01) $0.28 ($1.05) Restructuring costs and asset impairment charges (1) 0.03 0.1
Slide 24: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense expected vesting of stock awards and employee stock purchase plan. 3. Represent
Slide 25: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) October 2, 2021 January 2, 2021 September 26, 2020 Total Debt (GAAP) $5,396 $5,748 $5,787 Cash, cash equivalents and restricted cash (772) (828) (1,019) Net Debt (Non-GAAP) $4,624 $4,920 $4,768 Adju
Slide 26: We Help You Make It
WE HELP YOU US. MAKE IT