Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q1 2024 Earnings Presentation
29 slides from Us Foods's earnings presentation, May 9, 2024
Slide 1: First Quarter Fiscal Year 2024 Results
First Quarter Fiscal Year 2024 Results May 9, 2024
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: Continued Execution Driving EBITDA Growth and Share Gains in Target Customer Types
Continued Execution Driving EBITDA Growth and Share Gains in Target Customer Types Delivered $356 million in first quarter Adjusted EBITDA, in line with expectations 1 and remain on track for full year guidance 2 Gained share with independent restaurants for 12 consecutive quarters Focused approach
Slide 4: Our Four-Pillar Strategy Drives Value Creation
Our Four-Pillar Strategy Drives Value Creation CULTURE SERVICE GROWTH PROFIT EMBRACE THE US FOODS® CULTURE DELIVER WORLD-CLASS SERVICE GROW MARKET SHARE EXPAND EBITDA MARGIN SAFE RELIABLE TARGET MARGIN SUPPORTIVE EFFICIENT DIFFERENTIATE PRODUCTIVITY RESPONSIBLE EASY-TO-USE BE FRESH OPTIMIZATION 4
Slide 5: Embrace the US Foods Culture
Embrace the US Foods Culture • Instilling a strong safety culture; safety performance improved by 30% over prior year CULTURE • Launched our Spring Scoop with 26 new EMBRACE THE US FOODS® CULTURE high quality, innovative, responsible and SAFE: Always keep our people labor-saving products safe and em
Slide 6: Deliver Service Excellence
Deliver Service Excellence • Completed replenishment initiative which has improved our “delivered as ordered” Net Promoter Score by 7 percentage points, yielded $15 million in SERVICE annualized OpEx savings and reduced working capital by $120 million DELIVER WORLD-CLASS SERVICE RELIABLE: Ensure bes
Slide 7: Grow Profitable Market Share
Grow Profitable Market Share • On track to achieve our 1.5x market growth goal for restaurants for 2024, driven by faster growth with independents GROWTH • Gained market share with independents for 12 consecutive quarters GROW MARKET SHARE • Expanding Pronto, our small truck delivery TARGET: Grow ma
Slide 8: Further Optimize EBITDA Margin
Further Optimize EBITDA Margin • Addressed 60% of our COGS, which has translated into ~$120 million in savings over the past 12 months; we have initiated PROFIT the work to address the remaining 40 percent of our spend this year EXPAND EBITDA MARGIN • Increased private label penetration by 90 MARGIN
Slide 9: First Quarter Fiscal Year 2024 Financial Review
First Quarter Fiscal Year 2024 Financial Review Dirk Locascio Chief Financial Officer 9
Slide 10: Delivered Continued Sales and Earnings Growth
Delivered Continued Sales and Earnings Growth B/(W) vs. Q1 2024 Q1 2023 Total Case Volume +4.2% Independent Restaurant Case Volume +4.6% Net Sales ($millions) $8,949 +4.8% Adjusted EBITDA(1) ($millions) $356 +5.6% Adjusted EBITDA Margin(1) 4.0% +3 bps Adjusted Diluted EPS(1) $0.54 +8.0% (1) Reconcil
Slide 11: Drove Adjusted EBITDA Improvement via Strong Execution
Drove Adjusted EBITDA Improvement via Strong Execution Adj. EBITDA Per Case(1) $10.00 Adj. Gross Profit Per Case(1) $7.42 $7.59 $9.00 $8.00 $7.00 $1.75 $6.00 $1.73 $2.00 $5.00 $1.80 +$0.17 $4.00 $3.00 $1.60 $2.00 $1.40 $1.00 $1.20 $- Q1 2023 Q1 2024 $1.00 $0.80 Adj. Operating Expense Per Case $0.60
Slide 12: Operating Cash Flow Enables Execution Against Capital Allocation Priorities
Operating Cash Flow Enables Execution Against US Foods’ Capital Allocation Priorities Operating Cash Flow ($M) $300 $279 Capital Allocation Priorities $250 $158 1 Invest in the business $200 $150 $139 $100 $50 2 Maintain leverage within target range $- Q1 2022 Q1 2023 Q1 2024 3 Return capital to sha
Slide 13: Maintained Strong Balance Sheet
Maintained Strong Balance Sheet Net Debt ($M) and Net Leverage(1) Balanced Capital Structure $4,518 $4,405 $4,434 • Maintained net leverage target of 2.5 – 3.0x • Repriced term loan due 2028 and reduced the interest rate margin by 50 basis points 3.2x 2.8x 2.8x • No debt maturities until 2026 • Paid
Slide 14: Reaffirming Fiscal 2024 Guidance and Modeling Assumptions
Reaffirming Fiscal 2024 Guidance and Modeling Assumptions Fiscal 2024 Guidance Modeling Assumptions Case Growth 4.0% to 6.0% (2) Net Sales $37.5B to $38.5B Sales Inflation 0.5% to 1.5% Depreciation & Amortization $400M to $440M Adjusted EBITDA $1.69B to $1.74B (1) Interest Expense $320M to $335M Tax
Slide 15: Invest with US Foods
Invest with US Foods Leader in a highly fragmented and resilient industry with national scale; 1 U.S only business serving a diverse customer base Sustainable competitive advantages to drive market outperformance; 2 well-positioned to win in any macro environment Executing Long-Range Plan initiative
Slide 16: Save the Date: Investor Day
SAVE THE DATE INVESTOR DAY JUNE 5, 2024 US FOODS HQ ROSEMONT, ILLINOIS 16
Slide 17: Appendix: First Quarter Fiscal Year 2024 Summary and Non-GAAP Reconciliations
Appendix: First Quarter Fiscal Year 2024 Summary Non-GAAP Reconciliations 17
Slide 18: Quarterly Case Volume Trend vs. Prior Year
Quarterly Case Volume Trend vs. Prior Year Organic Case Growth by Quarter(1) Independent Restaurant Case Growth(1) YOY percent change YOY percent change for total and organic cases Organic Acquisitions 20% Independent Restaurants 7.3% Healthcare/Hospitality 6.6% All Other 4.6% 8.9% 5.5% 5.7% 6.3% 2.
Slide 19: Debt Summary
Debt Summary Interest Rates as of Carrying Value as of Carrying Value as of Maturity Interest Terms ($ in millions) March 30, 2024 March 30, 2024 December 30, 2023 • Maintained net leverage ABL Facility December 7, 2027 8.50% - - target of 2.5 - 3.0x 2019 Incremental Term Loan Facility (net of $10 a
Slide 20: First Quarter Financial Performance
First Quarter Financial Performance Reported (unaudited) Adjusted(1) (unaudited) 13 Weeks Ended 13 Weeks Ended March 30, 2024 April 1, 2023 Change March 30, 2024 April 1, 2023 Change ($ in millions, except per share data) Case Volume 203 195 4.2% Net Sales $8,949 $8,542 4.8% Gross Profit $1,495 $1,4
Slide 21: Non-GAAP Reconciliation – Adjusted Gross Profit, OpEx and EBITDA per Case
Non-GAAP Reconciliation – Adjusted Gross Profit per Case, Adjusted Operating Expense per Case, Adjusted EBITDA per Case Adjusted(1) (unaudited) 13 Weeks Ended March 30, 2024 April 1, 2023 (Total cases and $ in millions, except per case data) Total Cases 203 195 Adjusted GP $1,540 $1,445 Adjusted GP
Slide 22: Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended (unaudited) ($ in millions) March 30, 2024 April 1, 2023 Gross profit (GAAP) $1,495 $1,425 LIFO reserve adjustment(1) 45 20 Adjusted Gross Profit (Non-GAAP) $1,540 $1,445 Operating Expenses (GAAP) $1,330 $
Slide 23: 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 non-CEO severance and related costs associated with organizational realignment costs and other impairment charges. 3. Share-based compensatio
Slide 24: Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) ($ in millions) March 30, 2024 April 1, 2023 Net income available to common shareholders (GAAP) $82 0.9% $75 0.9% and net income margin (GAAP) Series A Preferred Stock Dividends - (7) Net Income (GAAP) 82 82
Slide 25: 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 26: Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) March 30, 2024 April 1, 2023 Diluted EPS (GAAP) $0.33 $0.32 Restructuring costs and asset impairment charges(1) 0.05 - Share-based compensation expense(2) 0.06 0.06 LIFO reserve adjustments(3) 0.18 0.08 Bu
Slide 27: Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purcha
Slide 28: Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) March 30, 2024 December 30, 2023 April 1, 2023 Total Debt (GAAP) $4,701 $4,674 $4,810 Cash, cash equivalents and restricted cash (267) (269) (292) Net Debt (non-GAAP) $4,434 $4,405 $4,518 Adjusted E
Slide 29: We Help You Make It
WE HELP YOU US. MAKE IT"