Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q4 2022 Earnings Presentation
25 slides from Us Foods's earnings presentation, Feb 16, 2023
Slide 1: Q4 & Fiscal Year 2022 Results
Q4 & Fiscal Year 2022 Results February 16, 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
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Slide 4: Creating Value Through Execution of Our Long-Range Plan
Creating Value Through Execution of Our Long-Range Plan 1 Continued strong progress against long-range plan 2 Delivered strong fourth quarter and full year financial results 3 Creating long-term shareholder value through prudent capital allocation 4
Slide 5: Sustained Positive Momentum in Q4 2022
Sustained Positive Momentum in Q4 2022 Delivered Strong Financial Results Expanded Industry Leading Customer Experience Position • Grew net sales 11% • Continued market share gains driven by strategy execution • Grew Adj. EBITDA 34% • Opened 2 new CHEF’STOREs • Expanded Adj. EBITDA margin 70 bps • L
Slide 6: A Year of Strong Progress Against our Long-Range Plan
A Year of Strong Progress Against our Long-Range Plan Grow Profitable Further Optimize Improve Operational Market Share Gross Margins Efficiencies ü Exceeded 1.5x restaurant ü Managed inflation and ü Reduced routing mileage market growth in 2022 deflation effectively and increased cases per driven b
Slide 7: Q4 and FY 2022 Financial Review
Q4 and FY 2022 Financial Review Dirk Locascio Chief Financial Officer 7
Slide 8: Delivered Strong Fourth Quarter and Full Year 2022 Results
Delivered Strong Fourth Quarter and Full Year 2022 Results B/(W) vs B/(W) vs Q4 2022 FY 2022 Q4 2021 FY 2021 Total Organic Case Volume 2.6% 1.7% IND Organic Case Volume 5.8% 4.3% Net Sales ($millions) $8,515 +11% $34,057 +15% Adjusted EBITDA ($millions) (1) $350 +34% $1,310 +24% Adjusted EBITDA Marg
Slide 9: Continued Improvement in Target Customer Type Case Volume
Continued Improvement in Target Customer Type Case Volume Year-over-Year Versus 2019 Organic Case Growth by Quarter(1) Case Growth by Quarter(1)(2) Independent Restaurants Independent Restaurants 80% Healthcare/Hospitality 10% Healthcare/Hospitality All Other All Other 70% Total Case Growth Total Ca
Slide 10: Continued to Strengthen Capital Structure and Reduce Leverage
Continued to Strengthen Capital Structure and Reduce Leverage In Millions ($) Q4 2022 Q4 2021 Total Debt $4,854 $5,011 Cash, Cash Equivalents & Restricted Cash $(211) $(148) Net Debt $4,643 $4,863 (1) Net Leverage Ratio (1) 3.5x 4.6x 1.1x Net Leverage Ratio Reduction (1) Reconciliations of these non
Slide 11: Fiscal 2023 Guidance
Fiscal 2023 Guidance Restaurants: ~1.5x market Volume All other: ~1x market (1) Adjusted EBITDA (2) $1.45B - $1.51B Adjusted Diluted EPS (2)(3) $2.45 - $2.65 Interest Expense $310M - $325M Total CapEx (4) $410M - $430M Net Leverage (2) Below 3.0x by year-end (1) Market as measured by Technomic (2) N
Slide 12: We Help You Make It
WE HELP YOU US. MAKE IT"
Slide 13: Appendix
Appendix: Q4 Fiscal 2022 Summary Non-GAAP Reconciliations 13
Slide 14: Quarterly Case Volume Trend vs Prior Year
Quarterly Case Volume Trend vs Prior Year Independent Restaurant Case Growth(1) Organic Case Growth by Quarter(1) YOY percent change for total and organic cases YOY percent change Organic Acquisitions 79.1% 80% 70% 74.4% 60% (32.1%) (6.8%) (11.8%) 8.1% 0.5% 25.1% 9.2% 5.8% 20.6% 2.9% 50% 0.3% (7.4%)
Slide 15: US Foods Debt Summary
US Foods Debt Summary • Net leverage expected to be below 3x by year-end • Pre-paid $200M on 2019 Incremental Term Loan Facility in Q4 2022 • LIBOR was 4.39% as of December 31, 2022 • A 100 bps increase in LIBOR would result in ~$20M additional interest expense and ($0.06) reduction in Adjusted Dilu
Slide 16: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) Quarter Ended Quarter Ended ($ in millions, except per share December January 1, December January 1, data) 31, 2022 2022 Change 31, 2022 2022 Change Case Growth 2.6% Net Sales 8,515 7,639 11.5% Gross Profit 1,454 1,24
Slide 17: Year to Date Financial Performance
Year to Date Financial Performance Reported Adjusted (1) (unaudited) (unaudited) Year Ended Year Ended ($ in millions, except per share December January 1, December January 1, data) 31, 2022 2022 Change 31, 2022 2022 Change Case Growth 1.7% Net Sales 34,057 29,487 15.5% Gross Profit 5,492 4,655 18.0
Slide 18: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses Quarter Ended Year Ended (unaudited) (unaudited) December 31, January 1, December 31, January 1, ($ in millions) 2022 2022 2022 2022 Gross profit (GAAP) $1,454 $1,242 $5,492 $4,655 LIFO reserve adjustment (1) 4 15 147 16
Slide 19: 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 the write-off of old leases ROU asset and lease liability of $9 million associated with entering into new lease agreements for four distribut
Slide 20: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income For the quarter ended (unaudited) For the year ended (unaudited) December 31, January 1, December 31, January 1, ($ in millions) 2022 2022 2022 2022 Net income available to common shareholders (GAAP) $83 $59 $228 $121 Series A Preferr
Slide 21: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 1. Consists primarily of the write-off of old leases ROU asset and lease liability of $9 million associated with entering into new lease agreements for four distribution facilities for the 13 weeks and 52 weeks ended December 31, 2022
Slide 22: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) For the quarter ended For the year ended (unaudited) (unaudited) December January 1, December January 1, 31, 2022 2022 31, 2022 2022 Diluted EPS (GAAP) $0.37 $0.26 $1.01 $0.54 Restructuring costs and asset impairment charges (1) 0.0
Slide 23: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of the write-off of old leases ROU asset and lease liability of $9 million associated with entering into new lease agreements for four distribution facilities for the 13 weeks and 52 weeks ended December 31, 20
Slide 24: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) December 31, ($ in millions, except ratios) 2022 January 1, 2022 Total Debt (GAAP) $4,854 $5,011 Cash, cash equivalents and restricted cash (211) (148) Net Debt (Non-GAAP) $4,643 $4,863 Adjusted EBITDA (1) $1,310 $1,057 Net Lever
Slide 25: We Help You Make It
WE HELP YOU US. MAKE IT"