Us Foods Holding Corp. · NYSE:USFD

Us Foods — Q2 2014 Earnings Presentation

18 slides from Us Foods's earnings presentation, Aug 12, 2014

  1. Slide 1: Q2 2014 Performance Update

    Exhibit 99.1 A Taste of What’s Cooking at US Foods Q2 2014 Performance Update August 2014

  2. Slide 2: Forward-looking statements notice

    While the information provided herein is believed to be accurate and reliable, US Foods (“US Foods”) does not make any representations or warranties, express or implied, as to the accuracy or completeness of such information or as to future results. No representation or warranty is made that any of

  3. Slide 3: Non-GAAP financial measures

    Non-GAAP financial measures This presentation contains unaudited non-GAAP financial measures, including Reported EBITDA, Adjusted EBITDA, Consolidated EBITDA, Debt Coverage Ratio, Interest Coverage Ratio, Adjusted Operating Expenses and Adjusted Gross Profit. Management believes these non- GAAP fina

  4. Slide 4: Agenda

    Agenda •Business Highlights •Quarterly Financial Update •Closing Comments •Appendix FOOD. FOOD PEOPLE. EASY. 3

  5. Slide 5: Agenda

    Agenda •Business Highlights •Quarterly Financial Update •Closing Comments •Appendix FOOD. FOOD PEOPLE. EASY. 4

  6. Slide 6: Business Highlights

    Business Highlights • Q2 sales increased 4.2%, and units decreased 0.6% • Organic units decreased 0.9% • Acquisition units added 0.3%¹ • Q2 results • Net income/(loss) was ($19) million • Adjusted EBITDA was $237 million, a 4.9% increase from last year² • Business transformation focused on different

  7. Slide 7: Agenda

    Agenda •Business Highlights •Quarterly Financial Update •Closing Comments •Appendix FOOD. FOOD PEOPLE. EASY. 6

  8. Slide 8: Q2 Financial Performance

    Q2 Financial Performance B/(W) Y-O-Y $ IN MILLIONS Q2 2014 Q2 2013 CHANGE NET SALES $5,898 $5,659 4.2% GROSS PROFIT $964 $972 ($8) ADJUSTED GROSS PROFIT¹ $988 $977 + $11 % OF NET SALES 16.8% 17.3% (51)bps OPERATING EXPENSES $900 $872 ($28) ADJUSTED OPERATING EXPENSES¹ $751 $751 $- % OF NET SALES 12.

  9. Slide 9: Q2 Last Twelve Month Financial Performance

    Q2 Last Twelve Month Financial Performance $ IN MILLIONS Q2 2014 LTM Q2 2013 LTM B/(W) Y-O-Y CHANGE NET SALES $22,588 $22,006 2.6% GROSS PROFIT $3,801 $3,754 +$47 ADJUSTED GROSS PROFIT¹ $3,854 $3,771 +$83 % OF NET SALES 17.1% 17.1% (8)bps OPERATING EXPENSES $3,523 $3,455 ($68) ADJUSTED OPERATING EXP

  10. Slide 10: Quarterly Cash Flow

    Quarterly Cash Flow $ IN MILLIONS Q3 2013 Q4 2013 Q1 2014 Q2 2014 LTM Cash from Operating Activities $5 $208 $31 $216 $460 1 Capital Expenditures, net of Proceeds ($34) ($56) ($40) ($25) ($156) Acquisitions - ($11) - - ($11) Cash (Used in)/Provided by Financing ($36) ($98) $1 ($45) ($178) Activities

  11. Slide 11: Capital Structure & Credit Statistics

    Capital Structure & Credit Statistics Credit Statistics Debt /LTM As of Consolidated Debt Coverage Interest Coverage $ IN MILLIONS 6/28/2014 EBITDA Ratio³ Ratio4 ABL Revolver (2016) $0 ABS Facility (2015)¹ $686 CMBS Facility (2017) $472 Term Loan (2019) $2,084 Obligations Under Capital Leases $195 O

  12. Slide 12: We have $1,192 million of available liquidity.

    We have $1,192 million of available liquidity. Liquidity As of $ IN MILLIONS 6/28/2014 Borrowing Availability: ABL Facility (2016) $813 ABS Facility (2015)¹ $62 Total Cash & Equivalents $317 Total Cash and Borrowing Availability $1,192 Note: (1) The ABS Facility was amended on August 8, 2014 to exte

  13. Slide 13: Agenda

    Agenda •Business Highlights •Quarterly Financial Update •Closing Comments •Appendix FOOD. FOOD PEOPLE. EASY. 12

  14. Slide 14: Agenda

    Agenda •Business Highlights •Quarterly Financial Update •Closing Comments •Appendix FOOD. FOOD PEOPLE. EASY. 13

  15. Slide 15: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Management believes these non-GAAP financial measures provide meaningful supplemental information regarding our operating performance because they exclude amounts that our management and our board of directors do not consider part of core operating results when assessing the

  16. Slide 16: Non-GAAP Reconciliation - Adjusted EBITDA

    Non-GAAP Reconciliation - Adjusted EBITDA Quarter Ended LTM (In millions) June 28, 2014 June 29, 2013 June 28, 2014 June 29, 2013 Net loss (income) $ (19) $ 16 $ (62) $ (132) Interest expense, net 74 78 292 326 Income tax provision (benefit) 9 (12) 48 41 Depreciation and amortization expense 106 97

  17. Slide 17: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expense

    Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expense Quarter Ended LTM (In millions) June 28, 2014 June 29, 2013 June 28, 2014 June 29, 2013 Gross Profit $ 964 $ 972 $ 3,801 $ 3,754 LIFO reserve change (1) 24 5 53 17 Adjusted Gross Profit $ 988 $ 977 $ 3,854 $ 3,771 Net sal

  18. Slide 18: FOODS

    ba FOODS KEEPING KITCHENS COOKING.”

US Foods — Q2 2014 Earnings Presentation on 6ix