Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q4 2020 Earnings Presentation
25 slides from Us Foods's earnings presentation, Feb 16, 2021
Slide 1: Q4 and Fiscal Year 2020 Results
Q4 and Fiscal Year 2020 Results February 16, 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: Executive summary
Executive summary 1 Our strategy is enduring and our capabilities will continue to evolve 2 We are well positioned for a recovery 3 The future earnings power of the business has been strengthened 2
Slide 4: Our Great Food. Made Easy. strategy is enduring; our capabilities will continue to evolve
Our Great Food. Made Easy. strategy is enduring; our capabilities will continue to evolve to drive growth PRODUCT INNOVATION TECHNOLOGY OPERATING MODEL • Authentic ingredients from • Continuing to drive higher • Moving from six regions trusted sources e-comm penetration to four • Integrating Food Gr
Slide 5: Acquisitions have bolstered our strategy and are performing well
Acquisitions have bolstered our strategy and are performing well Food Group: • Integration progressing as planned • Synergies on track Cash and carry: • Continues to outperform delivered business • Rebranding Smart Foodservice stores to Chef’Store • Plan to open 3-4 new stores in 2021; opening pace
Slide 6: We are positioning the business to take advantage of a recovery
We are positioning the business to take advantage of a recovery Leveraging our scale and national footprint to drive growth; customer wins have increased our market share with large customers Hiring ahead of a recovery within our warehouse, transportation and selling functions Continuing to invest i
Slide 7: Q4 and Fiscal Year 2020 Financial Results
Q4 AND FISCAL YEAR 2020 FINANCIAL RESULTS 6
Slide 8: Fourth quarter results were impacted by the increase in COVID cases and additional restrictions
Fourth quarter results were impacted by the increase in COVID cases and additional restrictions on restaurants Case volume slowed during the last six weeks of the quarter Onboarding of $800M of new business is largely complete Seasonal margin lift normally seen during the holidays did not occur High
Slide 9: Operating leverage expected to improve as a recovery in case volume takes shape
Operating leverage expected to improve as a recovery in case volume takes shape Q4 Net Sales Q4 Adjusted Gross Profit Q4 Adjusted Operating Expense $ Millions; Inflation % $ Millions; % of Sales $ Millions; % of Sales $6,934 $1,246 $913 $6,138 $865 $1,034 2.5% 2.0% 18.0% 16.8% 13.2% 14.1% 2019 2020
Slide 10: Lower case volume is the primary driver of the year-over-year change in earnings
Lower case volume is the primary driver of the year-over-year change in earnings Q4 Adjusted EBITDA* Q4 Adjusted Net Income* Q4 Adjusted Diluted Earnings $ Millions; % of Sales $ Millions Per Share* $ $335 $145 $0.66 $174 $10 $0.05 4.8% 2.8% 2019 2020 2019 2020 2019 2020 Full Year Adjusted EBITDA* F
Slide 11: 2021 outlook: confident in a case volume recovery but timing remains uncertain
2021 outlook: confident in a case volume recovery but timing remains uncertain Not providing fiscal 2021 financial guidance On track to achieve full synergy run rate for both Food Group and Smart Foodservice Confident in liquidity position; as the recovery progresses expect to use cash on the balanc
Slide 12: Actions taken during 2020 have strengthened the future earnings power of the business
Actions taken during 2020 have strengthened the future earnings power of the business New business wins are driving market share gains Gross margin expected to recover as case volume and customer mix continue to improve $180M of permanent cost reductions position the business for higher EBITDA margi
Slide 13: Appendix: Q4 and Fiscal Year 2020 Summary Non-GAAP Reconciliations
APPENDIX: Q4 AND FISCAL YEAR 2020 SUMMARY NON-GAAP RECONCILIATIONS 12
Slide 14: Organic case volume recovery paused; total case volume benefiting from Smart Foodservice acquisition
Organic case volume recovery paused; 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 (6.8%) Independent Restaurants 11.9% (32.1%)
Slide 15: Fourth quarter and full year GAAP results
Fourth quarter and full year GAAP results Q4 GAAP Gross Profit Q4 GAAP Operating Expense Q4 GAAP Net Income/(Loss) $ Millions; % of Sales $ Millions; % of Sales Available to Common Shareholders $ Millions $1,237 $1,051 $92 $978 $1,008 ($23) 17.8% 16.4% 15.2% 15.9% 2019 2020 2019 2020 2019 2020 Full
Slide 16: Fourth quarter financial performance
Fourth quarter financial performance Reported (unaudited) Adjusted (1) (unaudited) Quarter Ended Quarter Ended ($ in millions, except per share January 2, December 28, January 2, December 28, data) 2021 2019 Change 2021 2019 Change Case Growth (10.2)% Net Sales 6,138 6,934 (11.5)% Gross Profit 1,008
Slide 17: Full year financial performance
Full year financial performance Reported (unaudited) Adjusted (1) (unaudited) Year Ended Year Ended ($ in millions, except per share January 2, December 28, January 2, December 28, data) 2021 2019 Change 2021 2019 Change Case Growth (11.0)% Net Sales 22,885 25,939 (11.8)% Gross Profit 3,719 4,587 (1
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) January 2, December 28, January 2, December 28, ($ in millions) 2021 2019 2021 2019 Gross profit (GAAP) $1,008 $1,237 $3,719 $4,587 LIFO reserve change (1) 16 9 25 22 COVI
Slide 19: Non-GAAP reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the non-cash impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for
Slide 20: Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income Available to Common Shareholders
Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income Available to Common Shareholders For the quarter ended For the year ended (unaudited) (unaudited) January 2, December 28, January 2, December 28, ($ in millions) 2021 2019 2021 2019 Net (loss) income available to common shareholders (
Slide 21: Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income Available to Common Shareholders
Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income Available to Common Shareholders 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 employe
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) January 2, December 28, January 2, December 28, 2021 2019 2021 2019 Diluted EPS (GAAP) ($0.11) $0.42 ($1.15) $1.75 Restructuring costs and asset impairment charges (1)
Slide 23: Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Repre
Slide 24: Non-GAAP reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP reconciliation - Net Debt and Net Leverage Ratios (unaudited) January 2, December 28, ($ in millions, except ratios) 2021 2019 Total Debt (GAAP) $5,748 $4,736 Cash, cash equivalents and restricted cash (828) (98) Net Debt (Non-GAAP) $4,920 $4,638 Adjusted EBITDA (1) $648 $1,194 Net Leverage
Slide 25: We Help You Make It
WE HELP YOU US. MAKE IT