Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q1 2021 Earnings Presentation
24 slides from Us Foods's earnings presentation, May 10, 2021
Slide 1: Q1 Fiscal 2021 Results
Q1 Fiscal 2021 Results May 10, 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: Three key takeaways
Three key takeaways 1 Industry recovery is well underway 2 Our scale and differentiated strategy drives market share gains 3 Earnings growth returning as case volume recovers 2
Slide 4: An industry wide recovery is taking place as restrictions lift
An industry wide recovery is taking place as restrictions lift and more consumers are comfortable eating out Percentage of Consumer Visits* Percentage of Consumers Comfortable Eating Out** Week Starting Date; 2020-2021 Week Starting Date; 2021 70% 70% Restaurants Grocery & Convenience Stores 60% 60%
Slide 5: Restaurant case volume continues to recover and is now ahead of 2019
Restaurant case volume continues to recover and is now ahead of 2019 US Foods Monthly Case Volume by Customer Type* YOY Percent Change vs Fiscal 2019 Baseline Restaurants Healthcare Hospitality Total 10% • In April, chains and independents 0% are both ahead of 2019 levels -10% -20% • Hospitality sho
Slide 6: Our differentiated Great Food. Made Easy. strategy has positioned us for continued market share gains
Our differentiated Great Food. Made Easy. strategy has positioned us for continued market share gains Industry Leading Innovative Team-Based Selling & Technology Products Industry Experts • Seamless bill pay and visibility to real time inventory make our technology platform the easiest to use • Tamp
Slide 7: Acquisitions performing well; cash and carry presents a growth opportunity
Acquisitions performing well; cash and carry presents a growth opportunity Food Group • System conversions progressing well; two additional conversions completed • On pace to achieve $65M in synergies in 2023 • Extending Food Group capabilities to the legacy US Foods network CHEF’STORE • Rebranding
Slide 8: We have taken action to maintain customer service in the face of supply chain challenges
We have taken action to maintain customer service in the face of industry wide supply chain challenges Building inventory levels to align with demand recovery; better positioned to mitigate supplier challenges than most distributors Continuing to hire to support the recovery; labor market remains ti
Slide 9: Q1 Fiscal 2021 Financial Results
Q1 FISCAL 2021 FINANCIAL RESULTS 8
Slide 10: First quarter financial highlights
First quarter financial highlights Total case volume and Adjusted EBITDA accelerated as Q1 progressed; restaurant and hospitality case volume trends continue to improve Gross Profit per case improving as case volume returns Permanent cost reductions flowing through; fixed cost leverage returning as
Slide 11: Financial results improved as the quarter progressed
Financial results improved as the quarter progressed; reflects reduced restrictions and increased consumer demand Q1 Net Sales Inflation: 2.7% Q1 Adjusted Gross Profit* Q1 Adjusted Operating Expense* $ Millions H/(L) Case Volume: (0.9%) Percent of Sales; $ Millions Percent of Sales; $ Millions Mix:
Slide 12: Earnings improving as case volume recovers
Earnings improving as case volume recovers Q1 Adjusted EBITDA* Q1 Adjusted Net Income* Q1 Adjusted Diluted Earnings Per $ Millions; Percent of Sales $ Millions Share* $ $177 $172 $0.15 $32 $27 $0.12 2.8% 2.7% 2020 2021 2020 2021 2020 2021 * Reconciliations of non-GAAP measures are provided in the Ap
Slide 13: The future is bright and we are well positioned to accelerate earnings growth
The future is bright and we are well positioned to accelerate earnings growth Share gains, operational efficiencies and improving operating leverage are strengthening the earnings power of the business Strong operating cash flow supports our priorities of re-investing in the business and paying down
Slide 14: APPENDIX: Q1 Fiscal 2021 Summary Non-GAAP Reconciliations
APPENDIX: Q1 FISCAL 2021 SUMMARY NON-GAAP RECONCILIATIONS 13
Slide 15: Organic case volume recovery underway
Organic case volume recovery underway; total case volume benefiting from Smart Foodservice acquisition Independent Restaurant Case Growth* Organic Case Growth by Quarter* YOY percent change for total and organic cases YOY percent change Organic Acquisitions Independent Restaurants (6.8%) (32.1%) 20%
Slide 16: First quarter GAAP results
First quarter GAAP results Q1 GAAP Gross Profit Q1 GAAP Operating Expense Q1 GAAP Net Income/(Loss)* Percent of Sales; $ Millions Percent of Sales; $ Millions $ Millions $1,192 $1,066 $1,003 $975 ($39) 16.8% 15.9% 18.8% 15.5% ($132) 2020 2021 2020 2021 2020 2021 * Net Income/(Loss) available to comm
Slide 17: First quarter financial performance
First quarter financial performance Reported (unaudited) Adjusted (1) (unaudited) 13 Weeks Ended 13 Weeks Ended April 3, March 28, April 3, March 28, ($ in millions, except per share data) 2021 2020 Change 2021 2020 Change Case Growth (0.9)% Net Sales 6,295 6,339 (0.7)% Gross Profit 1,003 1,066 (5.9
Slide 18: Non-GAAP reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended (unaudited) April 3, March 28, ($ in millions) 2021 2020 Gross profit (GAAP) $1,003 $1,066 LIFO reserve change (1) 21 (13) Adjusted Gross profit (Non-GAAP) $1,024 $1,053 Operating expenses (GAAP) $975 $1,1
Slide 19: Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) April 3, March 28, ($ in millions) 2021 2020 Net loss available to common shareholders (GAAP) $(39) ($132) Series A convertible preferred stock dividends 15 — Net loss (GAAP) (24) (132) Interest expense—net
Slide 20: 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 stock and option awards and discounts provided under employee stock purchase
Slide 21: Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) April 3, March 28, 2021 2020 Diluted EPS (GAAP) ($0.18) ($0.60) Restructuring costs and asset impairment charges (1) 0.01 — Share-based compensation expense (2) 0.05 0.03 LIFO reserve change (3) 0.10 (0.06
Slide 22: Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for stock and option awards and discounts provided under employee stock purchas
Slide 23: Non-GAAP reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP reconciliation - Net Debt and Net Leverage Ratios (unaudited) April 3, January 2, March 28, ($ in millions, except ratios) 2021 2021 2020 Total Debt (GAAP) $5,738 $5,748 $5,915 Cash, cash equivalents and restricted cash (912) (828) (1,085) Net Debt (Non-GAAP) $4,826 $4,920 $4,830 Adjusted E
Slide 24: WE HELP YOU MAKE IT
WE HELP YOU US. MAKE IT