Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q2 2021 Earnings Presentation
26 slides from Us Foods's earnings presentation, Aug 9, 2021
Slide 1: Q2 Fiscal 2021 Results
Q2 Fiscal 2021 Results August 9, 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 The industry recovery continues to progress 2 Our differentiated strategy is driving profitable market share gains 3 Financial results are returning to pre-COVID levels 2
Slide 4: Industry foot traffic is close to pre-pandemic levels; US Foods markets open longest showing strong growth
Industry foot traffic is close to pre-pandemic levels; US Foods markets that have been open the longest are showing strong growth rates Relative Foot Traffic at FAFH Businesses* US Foods Restaurant Case Volume Week Starting Date; 2020-2021 June 2021 vs June 2019; number of months markets have been o
Slide 5: Case volume recovery picked up steam in the second quarter as additional markets re-opened
Case volume recovery picked up steam in the second quarter as additional markets re-opened US Foods Monthly Case Volume by Customer Type* YOY Percent Change vs Fiscal 2019 Baseline Restaurants Healthcare Hospitality Total • Restaurants continues to trend 10% ahead of 2019 0% -10% • Hospitality impro
Slide 6: Our differentiated Great Food. Made Easy. strategy has resulted in additional market share gains
Our differentiated Great Food. Made Easy. strategy has resulted in additional market share gains Great Food. Made Easy. • Products designed to help • Webinars focused on labor and customers save labor staffing best practices • Focus on fresh and grab & go • Ghost kitchen program to items for summer
Slide 7: Labor and supply chain challenges persisted throughout the quarter; actions have partially mitigated these challenges
Labor and supply chain challenges persisted throughout the quarter; actions have partially mitigated these challenges Labor Update • Good progress in hiring warehouse and transportation associates • Early data from states that have ended supplemental unemployment benefits indicates that applicant ra
Slide 8: Acquisitions are performing well
Acquisitions are performing well CHEF’STORE • Same store sales are ahead of 2019 levels • Expect 2021 Adjusted EBITDA to be above 2019 • Opened two new stores in Q1, plan to accelerate store openings in 2022 Food Group • Completed four system conversions to date • Remain on pace to achieve $65M in s
Slide 9: Q2 Fiscal 2021 Financial Results
Q2 FISCAL 2021 FINANCIAL RESULTS 8
Slide 10: Second quarter financial highlights
Second quarter financial highlights Adjusted EBITDA improved meaningfully compared to prior quarters Restaurant and hospitality case volume trends improved throughout the quarter; healthcare case volume trends remain steady Strong Gross Profit per case performance; helped by outsized inflation and s
Slide 11: Financial results reflect the strength of the business as the recovery continues to progress
Financial results reflect the strength of the business as the recovery continues to progress Q2 Net Sales Inflation: 8.2% Q2 Adjusted Gross Profit* Q2 Adjusted Operating Expense* $ Millions Case Volume: 53.5% Percent of Sales; $ Millions Percent of Sales; $ Millions Mix: 6.3% $7,663 $1,266 $940 $646
Slide 12: Earnings improving as case volume recovers
Earnings improving as case volume recovers Q2 Adjusted EBITDA* Q2 Adjusted Net Income* Q2 Adjusted Diluted Earnings Per $ Millions; Percent of Sales $ Millions Share* $ $0.58 $146 $332 $88 ($49) ($0.22) 1.9% 4.3% 2020 2021 2020 2021 2020 2021 * Reconciliations of non-GAAP measures are provided in th
Slide 13: Focused on reducing Net Debt and Leverage ratio; paid down $200M of debt in the second quarter
Focused on reducing Net Debt and Leverage ratio; paid down $200M of debt in the second quarter YTD Operating Cash Flow Q2 Net Debt* and Leverage $ Millions $ Millions Leverage ** Working capital benefit of ~$775M $770 $4,920 $4,816 $4,538 7.6x 5.4x 5.0x $250 2020 2021 Q2 2020 Q4 2020 Q2 2021 * Recon
Slide 14: Appendix: Q2 Fiscal 2021 Summary Non-GAAP Reconciliations
APPENDIX: Q2 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* Organic Case Growth by Quarter* 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%) (6.8%) 8
Slide 16: Second quarter GAAP results
Second quarter GAAP results Q2 GAAP Gross Profit Q2 GAAP Operating Expense Q2 GAAP Net Income/(Loss)* Percent of Sales; $ Millions Percent of Sales; $ Millions $ Millions $1,169 $1,045 $55 $730 $671 ($92) 14.7% 15.3% 16.0% 13.6% 2020 2021 2020 2021 2020 2021 * Net Income/(Loss) available to common s
Slide 17: Second quarter financial performance
Second quarter financial performance Reported (unaudited) Adjusted (1) (unaudited) 13 Weeks Ended 13 Weeks Ended July 3, June 27, July 3, June 27, ($ in millions, except per share data) 2021 2020 Change 2021 2020 Change Case Growth 53.5% Net Sales 7,663 4,560 68.0% Gross Profit 1,169 671 74.2% 1,266
Slide 18: Year to date financial performance
Year to date financial performance Reported (unaudited) Adjusted (1) (unaudited) 26 Weeks Ended 26 Weeks Ended July 3, June 27, July 3, June 27, ($ in millions, except per share data) 2021 2020 Change 2021 2020 Change Case Growth 22.1% Net Sales 13,958 10,899 28.1% Gross Profit 2,172 1,737 25.0% 2,2
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 26 Weeks Ended (unaudited) (unaudited) ($ in millions) July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Gross profit (GAAP) $1,169 $671 $2,172 $1,737 LIFO reserve change (1) 97 19 118 6 COVID-19 produ
Slide 20: Non-GAAP reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the non-cash impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for
Slide 21: Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended 26 Weeks Ended (unaudited) (unaudited) ($ in millions) July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Net income (loss) available to common shareholders (GAAP) $46 $(97) $7 ($229) Series A convertible preferred s
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 26 Weeks Ended (unaudited) (unaudited) July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Diluted EPS (GAAP) $0.20 ($0.44) $0.03 ($1.05) Restructuring costs and asset impairment charges (1) — 0.07 0.02 0.07 Share-b
Slide 24: Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense expected vesting of stock awards and employee stock purchase plan. 3. Represent
Slide 25: Non-GAAP reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) July 3, 2021 January 2, 2021 June 27, 2020 Total Debt (GAAP) $5,515 $5,748 $6,214 Cash, cash equivalents and restricted cash (699) (828) (1,676) Net Debt (Non-GAAP) $4,816 $4,920 $4,538 Adjusted EBI
Slide 26: We Help You Make It
WE HELP YOU US. MAKE IT