Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q3 2022 Earnings Presentation
26 slides from Us Foods's earnings presentation, Nov 10, 2022
Slide 1: Q3 Fiscal Year 2022 Results
Q3 Fiscal Year 2022 Results November 10, 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: Results Demonstrate Continued Progress on our Long-Range Plan
Results Demonstrate Continued Progress on our Long-Range Plan 1 Executing on our three-pillar long-range plan to drive profitable growth 2 Positioning US Foods to win in an evolving macro environment 3 Driving meaningful value creation for our shareholders through new share repurchase program 3
Slide 4: Sustained Positive Momentum in Q3 2022
Sustained Positive Momentum in Q3 2022 Expanded Industry Leading Customer Delivered Strong Financial Results Experience Position • Grew net sales 13% • Launched next gen customer digital platform (MOXē) • Grew Adj. EBITDA 21% • Continued market share gains • Expanded Adj. EBITDA margin 20 bps • Furt
Slide 5: Drove Continued Progress Across All Pillars of Long-Range Plan
Drove Continued Progress Across All Pillars of Long-Range Plan Grow Profitable Further Optimize Improve Operational Market Share Gross Margins Efficiencies Restaurants tracking to Continuing momentum Cases per mile further exceed 1.5x market growth with inbound logistics improved above 2019 ta
Slide 6: Advancing Strategic Priorities to Deliver Value to Shareholders and Customers
Advancing Strategic Priorities to Deliver Value to Shareholders and Customers Execution to date Customer Resilient U.S.- Balanced capital reinforces experience & focused business allocation confidence in operational well-positioned to approach to drive achieving long- improvements win in a sharehold
Slide 7: Q3 2022 Financial Review
Q3 2022 Financial Review Dirk Locascio Chief Financial Officer 7
Slide 8: Delivered Strong Third Quarter Fiscal 2022 Results
Delivered Strong Third Quarter Fiscal 2022 Results • Adj. EBITDA(1) grew 21% to $351M • Adj. Diluted EPS(1) of $0.60 • Net sales increased 13% to $8.9B • Total organic case volume +1% compared to +19% growth in Q3 2021 • IND organic case volume +3% compared to +25% growth in Q3 2021 • Continued stro
Slide 9: Continued to Improve Quarterly Case Volume vs 2019
Continued to Improve Quarterly Case Volume vs 2019 Versus 2019 Year-over-Year Case Growth by Quarter (1)(2) Organic Case Growth by Quarter (1) Independent Restaurants Independent Restaurants 80% Healthcare/Hospitality 10% Healthcare/Hospitality All Other All Other 70% Total Case Growth Total Case Gr
Slide 10: Updated Fiscal 2022 Guidance
Updated Fiscal 2022 Guidance Restaurants: ~1.5x market Volume All other: ~1x market(1) Adjusted EBITDA(2) (Revised) $1.28B - $1.30B Adjusted Diluted EPS(2)(3) (Revised) $2.10 - $2.20 Interest Expense (Revised) $250M - $255M Cash CapEx(4) $270M - $280M Net Leverage(2) ~3.5x by year-end (1) Market as
Slide 11: Continued to Strengthen Capital Structure and Reduce Leverage
Continued to Strengthen Capital Structure and Reduce Leverage In Millions ($) Q3 2022 Q3 2021 Total Debt $4,937 $5,396 Cash, Cash Equivalents & Restricted Cash $(366) $(772) Net Debt(1) $4,571 $4,624 Net Leverage Ratio(1) 3.7x 4.8x 1.1x Net Leverage Ratio Reduction (1) Reconciliations of these non-G
Slide 12: Actively Deploying Strong Cash Flow Against Stated Priorities
Actively Deploying Strong Cash Flow Against Stated Priorities • Investing ~$400M in 2022 capital across technology, facilities and Grow the Business fleet to enable growth and operational improvement • On track for ~3.5x net leverage(1) end of 2022 and target range in 2023 Reduce Leverage • Reduced
Slide 13: WE HELP YOU MAKE IT
WE HELP YOU US. MAKE IT"
Slide 14: Appendix
Appendix: Q3 Fiscal 2022 Summary Non-GAAP Reconciliations 14
Slide 15: Quarterly Case Volume Trend vs Prior Year
Quarterly Case Volume Trend vs Prior Year (1) Independent Restaurant Case Growth Organic Case Growth by Quarter (1) 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: US Foods Debt Summary
US Foods Debt Summary Interest Rate as of Carrying Value as of $ Millions Maturity Interest Terms October 1, 2022 October 1, 2022 ABL Facility May 31, 2024 - - 2019 Incremental Term Loan Facility (net of $21 September 13, 2026 LIBOR + 2.00% 5.12% 1,434 of unamortized deferred financing costs) 2021 I
Slide 17: Third Quarter Financial Performance
Third Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 13 Weeks Ended 13 Weeks Ended October 1, October 2, October 1, October 2, ($ in millions, except per share data) 2022 2021 Change 2022 2021 Change Case Growth 0.7% Net Sales 8,917 7,890 13.0% Gross Profit 1,460 1,241 1
Slide 18: Year to Date Financial Performance
Year to Date Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 39 Weeks Ended 39 Weeks Ended October 1, October 2, October 1, October 2, ($ in millions, except per share data) 2022 2021 Change 2022 2021 Change Case Growth 1.3% Net Sales 25,542 21,848 16.9% Gross Profit 4,038 3,413
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 39 Weeks Ended (unaudited) (unaudited) October 1, October 2, October 1, October 2, ($ in millions) 2022 2021 2022 2021 Gross profit (GAAP) $1,460 $1,241 $4,038 $3,413 LIFO reserve change (1) 6 32 143 150 A
Slide 20: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses (1) Represents the impact of LIFO reserve adjustments. (2) Consists primarily of non-CEO severance and related costs, organizational realignment costs and asset impairment charges. (3) Share-based compensation expense fo
Slide 21: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) 39 Weeks Ended (unaudited) October 1, October 2, October 1, October 2, ($ in millions) 2022 2021 2022 2021 Net income available to common shareholders (GAAP) $100 $55 $145 $62 Series A Preferred Stock Divide
Slide 22: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income (1) Consists primarily of non-CEO 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.
Slide 23: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended 39 Weeks Ended (unaudited) (unaudited) October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Diluted EPS (GAAP) $0.43 $0.24 $0.64 $0.28 Restructuring and asset impairment costs (1) — 0.03 — 0.04 Share-based
Slide 24: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) (1) Consists primarily of non-CEO severance and related costs, organizational realignment costs and asset impairment charges. (2) Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan
Slide 25: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) October 1, 2022 January 1, 2022 October 2, 2021 Total Debt (GAAP) $4,937 $5,011 $5,396 Cash, cash equivalents and restricted cash (366) (148) (772) Net Debt (Non-GAAP) $4,571 $4,863 $4,624 Adjusted
Slide 26: WE HELP YOU MAKE IT
WE HELP YOU US. MAKE IT"