Us Foods Holding Corp. · NYSE:USFD
Us Foods — Q4 2021 Earnings Presentation
26 slides from Us Foods's earnings presentation, Feb 17, 2022
Slide 1: Q4 and Fiscal Year 2021 Results: Introducing 2024 Long Range Plan
Q4 and Fiscal Year 2021 Results Introducing 2024 Long Range Plan February 17, 2022
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, our expected cost savings synergies, our
Slide 3: Executive Summary – Three Key Takeaways
Executive Summary – Three Key Takeaways 1 Strong execution in 2021 drove market share gains, increased gross margins, and 60% YoY increase in Adjusted EBITDA (1) 2 Solid foundation that provides platform to increase market share and EBITDA margin 3 Long Range Plan expected to deliver ~$1.7B Adjusted
Slide 4: Strong Execution in 2021 Drove Significant Earnings Growth
Strong Execution in 2021 Drove Significant Earnings Growth Grew Profitable Optimized Gross Improved Operational Market Share Margins Efficiencies ~ $1B in Net New National Highest Gross Profit per $130M Selling & Customer Wins(1) case since IPO Administrative Cost Savings Retained 27% Organic Indepe
Slide 5: Long Range Plan Expected to Deliver ~$1.7B Adjusted EBITDA in 2024
Long Range Plan Expected to Deliver ~$1.7B Adjusted EBITDA in 2024 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 ser
Slide 6: Financial Review
FINANCIAL REVIEW DIRK LOCASCIO CHIEF FINANCIAL OFFICER 5
Slide 7: Delivered Q4 2021 Results As Expected, Despite New Temporary Headwinds
Delivered Q4 2021 Results As Expected, Despite New Temporary Headwinds • Net sales increased to $7.6B • Total case volume increased 13%, including a 21% IND increase (1) • Continued very strong Gross Profit per case • Labor challenges continued to significantly impact OpEx • Refinanced $2.7B in debt
Slide 8: Significant Sales, Earnings and Margin Improvement
Significant Sales, Earnings and Margin Improvement B/(W) vs B/(W) vs Q4 2021 FY 2021 Q4 2020 FY 2020 Net Sales ($millions) $7,639 +32%(1) $29,487 +31%(1) Adjusted EBITDA(2) ($millions) $262 +58%(1) $1,057 +65%(1) Adjusted EBITDA Margin(2) 3.4% +60 bps(1) 3.6% +70 bps(1) Adjusted Diluted EPS(2) $0.38
Slide 9: Continued Net Debt and Leverage Reduction
Continued Net Debt and Leverage Reduction FY 2021 FY 2020 In Millions ($) Full Year Operating Cash Flow $419 $413 Q4 2021 Q4 2020 Net Debt(1) (In Millions $) $4,863 $4,920 Leverage Ratio(1) 4.6x 7.6x 3x Leverage Ratio Reduction (1) Reconciliations of these non-GAAP measures are provided in Appendix
Slide 10: FY 2022 Outlook For Significant Growth Over FY 2021 and Further Strengthening of Our Balance Sheet
FY 2022 Outlook For Significant Growth Over FY 2021 and Further Strengthening of Our Balance Sheet Restaurants: ~1.5x market Volume All other: ~1x market(1) Adjusted EBITDA(2) $1.2B - $1.3B Adjusted Diluted EPS(2)(3) $1.95 - $2.25 Interest Expense $225M - $235M Cash CapEx $280M - $300M Net Leverage(
Slide 11: FY 2024 Adjusted EBITDA and Adjusted Diluted EPS Expected To Be More Than 40% Above FY 2019
FY 2024 Adjusted EBITDA and Adjusted Diluted EPS Expected To Be More Than 40% Above FY 2019 Restaurants: ~1.5x market Volume All other: ~1x market(1) Adjusted EBITDA(2) ~ $1.7 B Adjusted Diluted EPS(2)(3) ~ $3.40 CapEx as % of Net Sales ~ 1.3-1.4% Net Leverage(2) ~ 2.5-3.0x (1) Market as measured by
Slide 12: Volume Growth, GM Expansion and OPEX Efficiency Expected to Contribute to EBITDA Growth
Volume Growth, GM Expansion and OPEX Efficiency All Expected to Meaningfully Contribute to Significant EBITDA Growth (1) ESTIMATED ADJUSTED EBITDA GROWTH DRIVERS $ Millions ~$235M (~$210M) ~$325M ~$1,700M ~$290M $1,057M (1) FY 2021 Volume Gross Margin OPEX Cost FY 2024 Growth Expansion Efficiency In
Slide 13: Strong Adjusted EBITDA and Cash Flow Growth Lead to Significant Shareholder Value Creation
Strong Adjusted EBITDA and Cash Flow Growth Lead to (1) Significant Shareholder Value Creation EBITDA Growth Prudent Capital Allocation FY 2024 Estimated Adj. Diluted EPS(1) of ✓ Profitable volume ✓ Invest in the business growth and market share gains ~$3.40 ✓ Reduce leverage to target range ✓ Gross
Slide 14: We Help You Make It US.
WE HELP YOU US. MAKE IT
Slide 15: Appendix: Q4 Fiscal 2021 Summary Non-GAAP Reconciliations
APPENDIX: Q4 FISCAL 2021 SUMMARY NON-GAAP RECONCILIATIONS 14
Slide 16: Achieved Performance Expectations Across Acquisitions
Achieved Performance Expectations Across Acquisitions CHEF’STORE • FY 2021 Adjusted EBITDA(1) exceeded FY 2019 levels • Synergies on track; $20M expected by FY 2024 • Plan to open 4-6 new locations in FY 2022 and accelerate openings further in FY 2023 • Smaller footprint and capital light model • ~1
Slide 17: Quarterly Case Volume Trend vs FY 2020
Quarterly Case Volume Trend vs FY 2020 (1) (1) Independent Restaurant Case Growth Organic Case Growth by Quarter YOY percent change for total and organic cases YOY percent change Organic Acquisitions Independent Restaurants 79.1% 80% Healthcare/Hospitality All Other 70% 74.4% 60% (32.1%) (6.8%) (11.
Slide 18: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Reported Adjusted (1) (unaudited) (unaudited) Quarter Ended Quarter Ended ($ in millions, except per share January 1, January 2, January 1, January 2, data) 2022 2021 Change 2022 2021 Change Case Growth 6.3% Net Sales 7,639 6,138 24.5% Gross Profit 1,242 1,008 23
Slide 19: Year to Date Financial Performance
Year to Date Financial Performance Reported Adjusted (1) (unaudited) (unaudited) Year Ended Year Ended ($ in millions, except per share January 1, January 2, January 1, January 2, data) 2022 2021 Change 2022 2021 Change Case Growth 16.9% Net Sales 29,487 22,885 28.8% Gross Profit 4,655 3,719 25.2% 4
Slide 20: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses Quarter Ended Year Ended (unaudited) (unaudited) January 1, January 2, January 1, January 2, ($ in millions) 2022 2021 2022 2021 Gross profit (GAAP) $1,242 $1,008 $4,655 $3,719 LIFO reserve adjustments (1) 15 16 165 25 C
Slide 21: Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses
Non-GAAP Reconciliation - Adjusted Gross Profit and Adjusted Operating Expenses 1. Represents the non-cash impact of LIFO reserve adjustments. 2. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 3. Share-based compensation expense for
Slide 22: Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income
Non-GAAP Reconciliation - Adjusted EBITDA and Adjusted Net Income For the quarter ended For the year ended (unaudited) (unaudited) ($ in millions) January 1, 2022 January 2, 2021 January 1, 2022 January 2, 2021 Net income (loss) available to common shareholders (GAAP) $59 ($23) $121 ($254) Series A
Slide 23: 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 24: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) For the quarter ended For the year ended (unaudited) (unaudited) January 1, January 2, January 1, January 2, 2022 2021 2022 2021 Diluted EPS (GAAP) $0.26 ($0.11) $0.54 ($1.15) Restructuring costs and asset impairment charges (1) — —
Slide 25: Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS)
Non-GAAP Reconciliation - Adjusted Diluted Earnings Per Share (EPS) 1. Consists primarily of severance and related costs, organizational realignment costs and asset impairment charges. 2. Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan. 3. Repre
Slide 26: Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios
Non-GAAP Reconciliation - Net Debt and Net Leverage Ratios (unaudited) ($ in millions, except ratios) January 1, 2022 January 2, 2021 Total Debt (GAAP) $5,011 $5,748 Cash, cash equivalents and restricted cash (148) (828) Net Debt (Non-GAAP) $4,863 $4,920 Adjusted EBITDA (1) $1,057 $648 Net Leverage