Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q4 2024 Earnings Presentation
36 slides from Us Foods's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Fiscal Year 2024 Results
Fourth Quarter and Fiscal Year 2024 Results February 13, 2025
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: Achieved Our 2022 to 2024 Long-range Plan
Achieved Our 2022 to 2024 Long-range Plan Adj. EBITDA ($M) & Adj. EBITDA Margin (%)(1) • Delivering consistent share gains with our three target customer types $2,000 $1,800 $1,741 Exceeded previous • Driving cost of goods savings $1,600 $1,400 LRP target: $1.7B $1,057 • Extending our technology lea
Slide 4: Fourth Quarter Caps Off Strong 2024
Fourth Quarter Caps Off Strong 2024 Increased Adj. EBITDA by 12% to a record $1.74B and Adj. EPS by 20% to a record 1 $3.15; continue to grow Adj. EPS meaningfully faster than Adj. EBITDA Deployed our strong cash flow through our $220 million acquisition of IWC and 2 nearly $1 billion of share repur
Slide 5: Significant Achievements Against Our Strategy in 2024
Significant Achievements Against Our Strategy in 2024 CULTURE SAFE SUPPORTIVE RESPONSIBLE Improved safety performance by Donated more than $14.5 million to Completed delivery of nearly 50 Embrace the support hunger relief, culinary 19% across the organization electric vehicles US Foods® culture educ
Slide 6: Fourth Quarter and Full Fiscal Year 2024 Financial Review
Fourth Quarter and Full Fiscal Year 2024 Financial Review Dirk Locascio Chief Financial Officer
Slide 7: Delivered Continued Sales and Earnings Growth
Delivered Continued Sales and Earnings Growth B/(W) vs. B/(W) vs. Q4 2024 FY 2024 Q4 2023 FY 2023 Total Case Volume +3.5% +4.2% Independent Restaurant Case Volume +3.2% +4.4% Healthcare Case Volume +4.7% +5.7% Hospitality Case Volume +2.4% +2.1% Net Sales ($millions) $9,491 +6.2% $37,877 +6.4% Adjus
Slide 8: Strong Execution Drove Continued Adjusted EBITDA Rate Improvement
Strong Execution Drove Continued Adjusted EBITDA Rate Improvement $10.00 Adj. Gross Profit Per Case(1) Adj. EBITDA Per Case(1) $9.00 $7.71 $7.99 +10.6% $8.00 $7.00 CAGR $6.00 $2.50 $2.50 $5.00 +$0.28 $2.12 $2.07 $4.00 $1.93 $1.93 $3.00 $2.00 $2.00 $2.00 $1.69 $1.00 $- Q4 2023 Q4 2024 $1.50 $1.50 $10
Slide 9: Drove Strong Profitable Growth and Significantly Increased Return on Invested Capital
Drove Strong Profitable Growth and Significantly Increased Return on Invested Capital Adj EBITDA ($M) Adj. Diluted EPS (1) (1) Adj. ROIC (1) (%) $2,000 $3.15 31% $1,800 $1,741 $1,559 28% $1,600 $2.63 $1,400 $1,310 23% $2.14 $1,057 18% $1,200 $1,000 $1.55 $800 $600 $400 $200 3.6% 39% 3.8% 95% 4.4% 12
Slide 10: Strong Cash Flow Generation Combined With Healthy Leverage Profile
Strong Cash Flow Generation Combined With Healthy Leverage Profile Operating Cash Flow ($M) Net Debt ($M) and Net Leverage (1) $4,863 $4,869 $1,140 $1,174 $4,643 $4,405 4.6x $765 3.5x 2.8x 2.8x $419 39% 128% 109% 2021 2022 2023 2024 2021 2022 2023 2024 (1) Reconciliations of these non-GAAP measures
Slide 11: Fiscal Year 2025 Guidance and Modeling Assumptions
Fiscal Year 2025 Guidance and Modeling Assumptions Fiscal Year 2025 Guidance Modeling Assumptions Total Case Growth 2% to 4% Net Sales Growth 4% to 6% Sales Inflation & Mix ~2% Depreciation $410M to $450M Adjusted EBITDA Growth 8% to 12% (1) Interest Expense $310M to $325M Tax Rate ~26% Adjusted Dil
Slide 12: What Differentiates US Foods?
What Differentiates US Foods? Proven strategy-driven operational playbook to 1 Only pure-play, U.S. focused foodservice distributor with national scale 5 advance Culture, Service, Growth and Profit strategy pillars Differentiated value proposition and scale with the 2 three most profitable customer
Slide 13: Building Blocks to 2025 Growth
Building Blocks to 2025 Growth 1 Driving balanced, profitable growth through our four-pillar strategy to 2025E to 2027E further expand our market position Financial Targets Harnessing focus on operational 2 excellence and delivering continued strong execution ~5% ~10% Net Sales Adj. EBITDA CAGR CAGR
Slide 14: Appendix
Appendix Summary Non-GAAP Reconciliations
Slide 15: Quarterly Case Volume Trend vs. Prior Year
Quarterly Case Volume Trend vs. Prior Year Organic Case Growth by Quarter Independent Restaurant Case Growth (1) (1) YOY percent change YOY percent change for total and organic cases 20% Independent Restaurants Organic Acquisitions Healthcare/Hospitality 7.3% All Other 6.6% 5.7% 4.6% 4.1% 8.9% 3.2%
Slide 16: Strong Operating Cash Flow Yields Financial Flexibility
Strong Operating Cash Flow Yields Financial Flexibility Operating Cash Flow ($M) $1,400 $1,174 Capital Allocation Priorities $1,200 $1,140 $1,000 $765 1 Invest in the business $800 2 $600 $400 Return capital to shareholders $200 Maintain net leverage within $- 2022 2023 2024 3 target range of 2.0 to
Slide 17: Debt Summary
Debt Summary Interest Rates as of Carrying Value as of Carrying Value as of Maturity Interest Terms ($ in millions) December 28, 2024 December 28, 2024 December 30, 2023 ABL Facility December 7, 2027 Term SOFR + CSA 6.11% $223 - 2019 Incremental Term Loan Facility (net of $0 • Maintained net leverag
Slide 18: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Reported (unaudited) Adjusted(1) (unaudited) 13 Weeks Ended 13 Weeks Ended (Case volume and $ in millions, December 28, 2024 December 30, 2023 Change December 28, 2024 December 30, 2023 Change except per share data) Case Volume 208 201 3.5% Net Sales $9,491 $8,93
Slide 19: Full Year 2024 Financial Performance
Full Year 2024 Financial Performance Reported (unaudited) Adjusted(1) (unaudited) Year Ended Year Ended (Case volume and $ in millions, December 28, 2024 December 30, 2023 Change December 28, 2024 December 30, 2023 Change except per share data) Case Volume 841 807 4.2% Net Sales $37,877 $35,597 6.4%
Slide 20: Reconciliation – Adjusted Gross Profit per Case, Adjusted Operating Expense per Case, Adjusted 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 Year Ended December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 (Total cases and $ in millions, except per case data) Tota
Slide 21: Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 13 Weeks Ended (unaudited) Year Ended (unaudited) ($ in millions) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Gross Profit (GAAP) $1,666 $1,590 $6,534 $6,148 LIFO reserve adjustment(1) (7) (43
Slide 22: Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses (footnotes)
Non-GAAP Reconciliation – Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for expected
Slide 23: Reconciliation – Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation – Adjusted EBITDA and Adjusted Net Income 13 Weeks Ended (unaudited) Year Ended (unaudited) ($ in millions) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Net income available to common shareholders and net income margin (GAAP) $66 0.7% $147 1.6% $494
Slide 24: Reconciliation – Adjusted EBITDA and Adjusted Net Income (footnotes)
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 25: Reconciliation – Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 13 Weeks Ended (unaudited) Year Ended (unaudited) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Diluted EPS (GAAP) $0.28 $0.59 $2.02 $2.02 Restructuring activity and asset impairment charges(1) 0.01 0.05 0.
Slide 26: Reconciliation – Adjusted Diluted Earnings Per Share (EPS) footnotes
Non-GAAP Reconciliation – Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Repre
Slide 27: Reconciliation – Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation – Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) December 28, 2024 December 30, 2023 December 31, 2022 Total Debt (GAAP) $4,928 $4,674 $4,854 Cash, cash equivalents and restricted cash (59) (269) (211) Net Debt (non-GAAP) $4,869 $4,405 $4,643 Adju
Slide 28: Adjusted EBITDA and Adjusted Net Income to GAAP Reconciliation – 2021 to 2023
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted EBITDA and Adjusted Net Income Year Ended (unaudited) ($ in millions) December 30, 2023 December 31, 2022 January 1, 2022 Net income available to common shareholders and net income margin (GAAP) $499 1.4% $228 0.7% $121 0.4% Series A Preferred
Slide 29: Adjusted EBITDA and Adjusted Net Income Reconciliation footnotes
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted EBITDA and Adjusted Net Income 1. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. For fiscal year 2022, also consists of the write-off of old leases ROU asset an
Slide 30: Adjusted Diluted EPS to GAAP Reconciliation – 2021 to 2023
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted Diluted EPS Year Ended (unaudited) December 30, 2023 December 31, 2022 January 1, 2022 Diluted EPS (GAAP) $2.02 $1.01 $0.54 Restructuring costs and asset impairment charges(1) 0.06 0.05 0.04 Share-based compensation expense(2) 0.22 0.18 0.19 LI
Slide 31: Adjusted Diluted EPS Reconciliation footnotes
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Adjusted Diluted EPS 1. Consists primarily of non-CEO severance and related costs associated with organizational realignment and other impairment charges. For fiscal year 2022, also consists of the write-off of old leases ROU asset and lease liability o
Slide 32: Net Leverage and Adjusted EBITDA per Case & Margin – 2021 to 2023
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Net Leverage and Adjusted EBITDA per Case & Margin For the Year Ended (unaudited) ($ in millions, except ratios) December 30, 2023 December 31, 2022 January 1, 2022 Total Debt (GAAP) $4,674 $4,854 $5,011 Cash, cash equivalents and restricted cash (269)
Slide 33: Net Leverage and Adjusted EBITDA per Case footnotes
Non-GAAP to GAAP Reconciliation – 2021 to 2023 Net Leverage and Adjusted EBITDA per Case & Margin 1. EBITDA is defined as net income, plus interest expense—net, income tax provision, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for: (1) restructuring costs and ass
Slide 34: ROIC to GAAP Reconciliation – 2021 to 2024
Non-GAAP to GAAP Reconciliation – 2021 to 2024 ROIC For the Year Ended (unaudited) ($ in millions) December 28, 2024 December 30, 2023 December 31, 2022 January 1, 2022 Operating Income (GAAP) $1,099 $1,017 $594 $424 Other income (6) 6 22 26 Loss on extinguishment of debt(1) (10) (21) - (23) Recogni
Slide 35: ROIC Reconciliation footnotes
Non-GAAP to GAAP Reconciliation – 2021 to 2024 ROIC 1. Includes early redemption premium and the write-off of certain pre-existing debt issuance costs. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation exp
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