Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q1 2022 Earnings Presentation
25 slides from Us Foods's earnings presentation, May 12, 2022
Slide 1: Q1 Fiscal Year 2022 Results
Q1 Fiscal Year 2022 Results May 12, 2022
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: US Foods Delivers a Strong First Quarter
US Foods Delivers a Strong First Quarter 1 Delivered strong Sales and Adjusted EBITDA growth 2 Results reflect progress of tested and new initiatives to drive profitable growth, expand margins, and improve operational efficiencies 3 Well-positioned to achieve 2022 targets and our long-range plan 2
Slide 4: Keys to Successful Results in 2022 and Beyond
Keys to Successful Results in 2022 and Beyond Resilient Industry with a Strong Recovery Underway National Scale and Footprint to Grow Share Innovation to Deliver Differentiated Solutions Talent to Provide Best-in-Class Service to Customers Supply Chain Optimization and Cost Reduction Disciplined App
Slide 5: Q1 2022 Financial Review
Q1 2022 FINANCIAL REVIEW DIRK LOCASCIO CHIEF FINANCIAL OFFICER 4
Slide 6: Strong First Quarter Fiscal 2022 Results and Macro Considerations
Strong First Quarter Fiscal 2022 Results and Macro Considerations Q1 2022 Fiscal Results • Net sales increased to $7.8B • Total case volume increased 4%, including a 9% IND increase • Continued very strong Gross Profit per case • Adjusted EBITDA(1) grew 40% to $241M • Delivered Adjusted Diluted EPS(
Slide 7: Focused on Reducing Net Debt and Net Leverage Ratio
Focused on Reducing Net Debt and Net Leverage Ratio Q1 2022 Q1 2021 In Millions ($) Total Debt $4,993 $5,738 Cash, Cash Equivalents & Restricted Cash $(190) $(912) Net Debt(1) $4,803 $4,826 Net Leverage Ratio(1) 4.3x 7.5x 3.2x Net Leverage Ratio Reduction (1) Reconciliations of these non-GAAP measur
Slide 8: Long-Range Plan Progress
LONG-RANGE PLAN PROGRESS ANDREW IACOBUCCI INTERIM CHIEF EXECUTIVE OFFICER 7
Slide 9: Our Compelling Plan to Drive Profitable Growth
Our Compelling Plan to Drive Profitable Growth Grow Profitable Further Optimize Improve Operational Market Share Gross Margins Efficiencies Grow 1.5x the Market Continue to Grow Significantly Exceed 2019 With Restaurants(1) Gross Profit per Case Productivity Levels ✓ Reliable service platform ✓ Stra
Slide 10: Our Compelling Plan to Drive Profitable Growth: Market Share
Our Compelling Plan to Drive Profitable Growth: Market Share Grow Profitable Market Share LRP Initiatives ~ $290M • Apply new customer prioritization framework to differentiate customer experience Adj. EBITDA Growth(1) • Implement fresh leadership strategy • Enhance portfolio of value-added services
Slide 11: Our Compelling Plan to Drive Profitable Growth: Gross Margin
Our Compelling Plan to Drive Profitable Growth: Gross Margin Further Optimize Gross Margins LRP Initiatives ~ $325M • Optimize vendor relationships and terms in line Adj. EBITDA Growth(1) with purchasing scale • Drive private brand penetration • Optimize terms and portfolio of large customers • Reco
Slide 12: Our Compelling Plan to Drive Profitable Growth: OPEX
Our Compelling Plan to Drive Profitable Growth: OPEX Improve Operational Efficiencies LRP Initiatives ~ $235M • Remove waste from routing Adj. EBITDA Growth(1) • Drive greater standardization through continuous improvement and leadership standard work • Complete upgrade of warehouse picking technolo
Slide 13: We Help You Make It
WE HELP YOU US. MAKE IT
Slide 14: Appendix: Q1 Fiscal 2022 Summary Non-GAAP Reconciliations
APPENDIX: Q1 FISCAL 2022 SUMMARY NON-GAAP RECONCILIATIONS 13
Slide 15: Quarterly Case Volume Trend vs Prior Year
Quarterly Case Volume Trend vs Prior Year (1) (1) Independent Restaurant Case Growth Organic Case Growth by Quarter YOY percent change for total and organic cases YOY percent change Organic Acquisitions Independent Restaurants 79.1% 80% Healthcare/Hospitality All Other 70% 74.4% 60% (32.1%) (6.8%) (
Slide 16: First Quarter Financial Performance
First Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 13 Weeks Ended 13 Weeks Ended ($ in millions, except per share data) April 2, 2022 April 3, 2021 Change April 2, 2022 April 3, 2021 Change Case Growth 4.1% Net Sales 7,798 6,295 23.9% Gross Profit 1,195 1,003 19.1% 1,2
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted Net income, Adjusted Diluted EPS, Net Debt and Net Leverage Ratio are
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) ($ in millions) April 2, 2022 April 3, 2021 Gross profit (GAAP) $1,195 $1,003 LIFO reserve adjustment (1) 72 21 Adjusted Gross profit (Non-GAAP) $1,267 $1,024 Operating expenses (GAAP) $1,161 $
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
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) ($ in millions) April 2, 2022 April 3, 2021 Net loss available to common shareholders (GAAP) $(16) $(39) Series A Preferred Stock Dividends (9) (15) Net loss (GAAP) (7) (24) Interest expense—net 55 54 Income
Slide 21: 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 22: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) April 2, 2022 April 3, 2021 Diluted EPS (GAAP) ($0.07) ($0.18) Restructuring costs and asset impairment charges (1) — 0.01 Share-based compensation expense (2) 0.05 0.05 LIFO reserve adjustment (3) 0.32 0.
Slide 23: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Repre
Slide 24: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) April 2, 2022 January 1, 2022 April 3, 2021 Total Debt (GAAP) $4,993 $5,011 $5,738 Cash, cash equivalents and restricted cash (190) (148) (912) Net Debt (Non-GAAP) $4,803 $4,863 $4,826 Adjusted EBIT
Slide 25: We Help You Make It
WE HELP YOU US. MAKE IT