Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q1 2019 Earnings Presentation
19 slides from Us Foods's earnings presentation, May 7, 2019
Slide 1: Q1 Fiscal 2019 Results
Q1 Fiscal 2019 Results May 7, 2019
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: Q1 results in line with expectations; outlook for full year 2019 unchanged
Q1 results in line with expectations; outlook for full year 2019 unchanged Solid total case growth Supported by strong independent case volume Differentiated strategy driving market share gains with independents Continued expansion of operating leverage Private brands increased ~100bps to 35% of tot
Slide 4: Organic case growth accelerated across all customer types
Organic case growth accelerated across all customer types Independent Restaurant Case Growth Organic Case Growth by Quarter YoY percent change YoY change Organic Acquisitions IND Case Growth 5.5% 10% HC/Hosp Case Growth All Other 4.3% 5.5% 8% 3.8% 3.9% 3.3% 3.9% 6% 3.1% 2.7% 2.7% 4% 2% Q1 Q2 Q3 Q4 Q
Slide 5: Our Great Food. Made Easy. strategy continues to resonate
Our Great Food. Made Easy. strategy continues to resonate Scoop Private Brands E-Commerce 50% 35% 60% SCOOP CUSTOMER TRIAL RATE IND E-COMM PENETRATION Private Brand Penetration 40% 34% 55% 30% 33% 50% 20% 32% 45% 10% 31% 40% 0% 30% 35% Spring 2016 Spring 2019 2016 Q1 2019 2016 Q1 2019 Scoop: TM mana
Slide 6: Volume growth and product inflation are driving Net Sales increase
Volume growth and product inflation are driving Net Sales increase Q1 Net Sales Results Summary $ Millions b/(w) Net Sales drivers: $6,031 3.6% • Positive total case volume growth of 1.4% • Modest increase in product inflation across $5,823 poultry, produce and grocery items YOY Inflation Trends Pro
Slide 7: Gross Profit increase from case growth, customer mix and margin initiatives
Gross Profit increase from case growth, customer mix and margin initiatives Q1 Gross Profit Results Summary $ Millions; Percent of Sales b/(w) $1,052 6.0% Gross Profit drivers: $992 • Customer mix benefit from above market independent restaurant growth • Margin initiatives driving gains 17.0% 17.4%
Slide 8: Higher wage and other distribution costs partially offset by expense control initiatives
Higher wage and other distribution costs partially offset by expense control initiatives Q1 Operating Expense Results Summary $ Millions; Percent of Sales b/(w) $921 Operating Expense drivers: 3.6% $889 • Higher wage and other distribution costs as expected • Partially offset by our portfolio of ini
Slide 9: Growth in Gross Profit per case continues to outpace growth in Operating Expense per case
Growth in Gross Profit per case continues to outpace growth in Operating Expense per case Adjusted Gross Profit and Adjusted Operating Expense* $/case higher/(lower) than prior year Adj GP Adj OPEX $0.25 $0.20 $0.09 per case $0.18 $0.03 per case $0.15 $0.15 $0.08 per case $0.12 $0.10 $0.11 $0.09 $0.
Slide 10: Key profitability metrics improved year-over-year
Key profitability metrics improved year-over-year Q1 Adjusted EBITDA* Q1 Adjusted Diluted Earnings Q1 Net Income 2018 $ Millions; Percent of Sales Per Share* $ Millions 2019 $ $232 $81 3.6% 8.0% 8.0 $0.37 $75 $224 $0.35 5.7% $71 $67 6.0% 3.8% 3.8% 2018 2019 2018 2019 GAAP Adjusted* * Reconciliations
Slide 11: Strong operating cash flow; Net Debt continues to decline
Strong operating cash flow; Net Debt continues to decline Q1 Operating Cash Flow Q1 Net Debt* and Leverage $ Millions $ Millions Leverage ** $192 $3,544 $154 $3,352 $3,289 3.3x $122 3.0x 3.0x 2017 2018 2019 Q1 2018 Q4 2018 Q1 2019 * Reconciliations of non-GAAP measures are provided in the Appendix *
Slide 12: Reiterating full year fiscal 2019 guidance
Reiterating full year fiscal 2019 guidance Guidance Case Growth 1-2% Adjusted EBITDA Growth At Least 5% Cash CAPEX (excluding future acquisitions) $260-270 million Interest Expense $170-175 million Depreciation & Amortization $340-350 million Adjusted Effective Tax Rate 25-26% Adjusted Diluted EPS $
Slide 13: Appendix
APPENDIX: • Q1 FISCAL 2019 SUMMARY • NON-GAAP RECONCILIATIONS
Slide 14: First Quarter Financial Performance
First Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) 13-Weeks Ended 13-Weeks Ended March 30, March 31, March 30, March 31, ($ in millions, except per share data*) 2019 2018 Change 2019 2018 Change Case Growth 1.4% Net Sales 6,031 5,823 3.6% Gross Profit 1,052 992 6.0% 1,
Slide 15: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 13-Weeks Ended (unaudited) March 30, March 31, ($ in millions)* 2019 2018 Gross profit (GAAP) $1,052 $992 LIFO reserve change (1) (2) 19 Adjusted Gross profit (Non-GAAP) $1,050 $1,011 Operating expenses (GAAP) $921 $889
Slide 16: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income 13-Weeks Ended (unaudited) ($ in millions)* March 30, 2019 March 31, 2018 Net income (GAAP) $71 $67 Interest expense—net 42 43 Income tax provision (benefit) 20 (4) Depreciation and amortization expense 81 81 EBITDA (Non-GAAP) $214 $1
Slide 17: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 13-Weeks Ended (unaudited) March 30, March 31, 2019 2018 Diluted EPS (GAAP) $0.32 $0.31 Restructuring charges (1) — 0.01 Share-based compensation expense (2) 0.03 0.03 LIFO reserve change (3) (0.01) 0.09 Business transformation cost
Slide 18: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) March 30, December 29, March 31, ($ in millions, except ratios) 2019 2018 2018 Total Debt (GAAP) $3,381 $3,457 $3,630 Cash, cash equivalents and restricted cash (92) (105) (86) Net Debt (Non-GAAP) $3,289 $3,352 $3,544 Adjusted EB
Slide 19: We help you make it
WE HELP YOU US. MAKE IT