Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q1 2023 Earnings Presentation
26 slides from Us Foods's earnings presentation, May 11, 2023
Slide 1: Q1 Fiscal Year 2023 Results
Q1 Fiscal Year 2023 Results May 11, 2023
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: Continuing Long-Range Plan Momentum in 2023
Continuing Long-Range Plan Momentum in 2023 1 Delivered strong first quarter financial results 2 Furthered progress against long-range plan, while applying a fresh perspective 3 Prudently allocated capital to invest in the business, reduce debt and repurchase shares 3
Slide 4: Great Food. Made Easy.
MADE EASY.”
Slide 5: Our Strategy: Culture, Service and Growth
nan CULTURE EMBRACE THE US FOODS’ CULTURE SAFE: Always keep our people safe and embrace a path to zero accidents and injuries SUPPORTIVE: Champion a diverse and inclusive work environment for all; foster employee engagement; attract world-class talent RESPONSIBLE: Be environmentally and socially con
Slide 6: Our Evolved Cultural Beliefs
Our Evolved Cultural Beliefs 6
Slide 7: Results Demonstrate Continued Progress in Q1 2023
Results Demonstrate Continued Progress in Q1 2023 Delivered Strong Financial Results Expanded Industry Leading Customer Experience Position • Grew net sales 10% and • Continued YoY market share total case volume 6% gains from value added offerings • Grew Adj. EBITDA 40% • Increased adoption of next
Slide 8: Long-Range Plan Initiatives Continue to Produce Results
Long-Range Plan Initiatives Continue to Produce Results Grow Profitable Further Optimize Improve Operational Market Share Gross Margins Efficiencies On track to exceed 1.5x Effectively managed Further reduced routing restaurant market growth FY pricing through mileage and increased 2023, led b
Slide 9: Q1 FY 2023 Financial Review
Q1 FY 2023 Financial Review Dirk Locascio Chief Financial Officer 9
Slide 10: Delivered Strong First Quarter 2023 Results
Delivered Strong First Quarter 2023 Results B/(W) vs Q1 2023 Q1 2022 Total Organic Case Volume 5.7% IND Organic Case Volume 8.1% Net Sales ($millions) $8,542 +9.5% Adjusted EBITDA(1) ($millions) $337 +39.8% Adjusted EBITDA Margin(1) 3.9% +80 bps Adjusted Diluted EPS(1) $0.50 +38.9% (1) Reconciliatio
Slide 11: Further Strengthened Capital Structure and Reduced Leverage
Further Strengthened Capital Structure and Reduced Leverage In Millions ($) Q1 2023 Q1 2022 Total Debt $4,810 $4,993 Cash, Cash Equivalents & Restricted Cash $(292) $(190) Net Debt(1) $4,518 $4,803 Net Leverage Ratio(1) 3.2x 4.3x 1.1x Net Leverage Ratio Reduction (1) Reconciliations of these non-GAA
Slide 12: Advancing Long-Range Plan Priorities to Deliver Value
Advancing Long-Range Plan Priorities to Deliver Value to Shareholders and Customers Momentum continues Customer experience Resilient U.S. focused Balanced capital on execution of our & operational business well-positioned allocation approach to long-range plan improvements driving to win in a challe
Slide 13: We Help You Make It Easy
WE HELP YOU US. MAKE IT"
Slide 14: Appendix
Appendix: Q1 Fiscal 2023 Summary Non-GAAP Reconciliations 14
Slide 15: Diversified Business Performing Well in Resilient Industry
Diversified Business Performing Well in Resilient Industry Customer Mix as a % of Net Sales Well-positioned to Win in Challenging Macro Environment Other 17% • U.S. only business serving diverse customer base • Contractual ability to pass through food inflation to Total Restaurants customers Healthc
Slide 16: 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 79.1% 80% Independent Restaurants Healthcare/Hospitality 70% All Other 60% 74.4% 50% 8.1% 25.1%
Slide 17: US Foods Debt Summary
US Foods Debt Summary Interest Rate as of Carrying Value as of $ Millions Maturity Interest Terms April 1, 2023 April 1, 2023 ABL Facility December 7, 2027 - - 2019 Incremental Term Loan Facility (net of $16 and $19 of unamortized deferred financing costs, respectively) September 13, 2026 LIBOR + 2.
Slide 18: First Quarter Financial Performance
First Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 13 Weeks Ended 13 Weeks Ended ($ in millions, except per share data) April 1, 2023 April 2, 2022 Change April 1, 2023 April 2, 2022 Change Case Volume 5.7% Net Sales 8,542 7,798 9.5% Gross Profit 1,425 1,195 19.2% 1,44
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 (unaudited) ($ in millions) April 1, 2023 April 2, 2022 Gross profit (GAAP) $1,425 $1,195 LIFO reserve change (1) 20 72 Adjusted Gross profit (Non-GAAP) $1,445 $1,267 Operating expenses (GAAP) $1,238 $1,16
Slide 20: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the impact of LIFO reserve adjustments. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Transformational costs represent non-recurring expenses
Slide 21: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) ($ in millions) April 1, 2023 April 2, 2022 Net income (loss) available to common shareholders (GAAP) $75 ($16) Series A Preferred Stock Dividends (7) (9) Net income (loss) (GAAP) 82 (7) Interest expense—net
Slide 22: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 1. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 2. Represents the impact of LIFO reserve adjustments. 3. Transformational costs represent non-recurring expenses prior to forma
Slide 23: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) April 1, 2023 April 2, 2022 Diluted EPS (GAAP) $0.32 ($0.07) Share-based compensation expense (1) 0.06 0.05 LIFO reserve charge (2) 0.08 0.32 Business transformation costs (3) 0.02 0.06 Business acquisitio
Slide 24: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 2. Represents the impact of LIFO reserve adjustments. 3. Transformational costs represent non-recurring expenses prior to for
Slide 25: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) April 1, 2023 December 31, 2022 April 2, 2022 Total Debt (GAAP) $4,810 $4,854 $4,993 Cash, cash equivalents and restricted cash (292) (211) (190) Net Debt (Non-GAAP) $4,518 $4,643 $4,803 Adjusted EB
Slide 26: We Help You Make It Easy
WE HELP YOU US. MAKE IT"