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SYY · Sysco

35 filings

10-K

SYY 10-K Annual Reports

Sysco - 35 annual reports

Filing record · 2016–202610-K1210-Q328-K147

2026
Sysco Annual Report, Year Ended Jun 27, 2026
Sysco Corporation reported fiscal 2026 (52 weeks ended June 27, 2026) sales of $84.55 billion, up 3.9% from $81.37 billion in fiscal 2025, driven by inflation and volume growth including recent acquisitions. Operating income was $3.10 billion, up 0.2%, while adjusted operating income rose 2.6% to $3.61 billion after excluding Certain Items such as restructuring, transformation and acquisition costs. Net earnings fell 3.9% to $1.76 billion, and diluted earnings per share were $3.66, down from $3.73; adjusted diluted earnings per share rose to $4.61 from $4.46. Free cash flow increased to $2.11 billion from $1.82 billion, and cash flows from operations were $2.6 billion. The dominant forward-looking item is the pending acquisition of Jetro Restaurant Depot (JRD), agreed March 30, 2026 for approximately $29.1 billion, comprising $21.6 billion in cash and 91.5 million shares of Sysco Holdings common stock. Sysco Holdings stockholders are expected to be about 84% Sysco stockholders and 16% JRD equity holders. The Transactions are expected to close by the third quarter of fiscal 2027, but the FTC issued a second request on May 27, 2026, and a $1.164 billion termination fee applies in certain circumstances. Financing includes a $22 billion bridge facility reduced to $19 billion after a $3 billion term loan, and deal-contingent rate locks on $6.3 billion of future debt. Share repurchases have been suspended in connection with the deal. Total debt was $13.5 billion at June 27, 2026, with $792 million maturing within twelve months, and credit ratings were BBB (S&P) and Baa2 (Moody's), with S&P and Fitch outlooks shown as negative. Management expects fiscal 2027 net sales growth of 6% to 7%, inflation of 1.5% to 2.0%, and capital expenditures of approximately $720 million.
Aug 21, 2026
2025
Sysco Annual Report, Year Ended Jun 28, 2025
Sysco Corporation reported fiscal 2025 (52 weeks ended June 28, 2025) sales of $81.37 billion, up 3.2% from $78.84 billion in fiscal 2024, driven by inflation and volume growth partly from acquisitions. Gross profit rose 2.5% to $14.97 billion, but operating income fell 3.6% to $3.09 billion, primarily due to a noncash $92 million goodwill impairment at its Guest Worldwide business. Net earnings decreased 6.5% to $1.83 billion and diluted earnings per share fell 4.1% to $3.73. On an adjusted basis, excluding Certain Items, adjusted operating income rose 1.2% to $3.52 billion and adjusted diluted earnings per share increased to $4.46 from $4.31. Cash flow and balance sheet items were weaker year over year. Net cash provided by operating activities was $2.51 billion versus $2.99 billion, and free cash flow, a non-GAAP measure, was $1.82 billion versus $2.24 billion. Total debt was $13.3 billion at June 28, 2025, with $1.75 billion maturing within the next twelve months. The company repurchased 16,988,703 shares for $1.3 billion during the year, paid $1.0 billion in dividends, and had about $1.5 billion remaining under its share repurchase authorization. Management expects fiscal 2026 net sales growth of 3% to 5%, inflation of approximately 2%, and capital expenditures of approximately $700 million. The filing notes risks including low margins in the foodservice distribution industry, inflation and deflation effects on product costs, labor shortages, fuel costs, competition, cybersecurity incidents (including a March 2023 event), and multiemployer pension withdrawal liability that could be as much as $150 million. Sysco also reported that its U.S. Foodservice Operations generated 88.8% of total segment operating income in fiscal 2025.
Aug 22, 2025
2024
Sysco Annual Report, Year Ended Jun 29, 2024
Sysco Corporation reported record fiscal 2024 results for the 52-week year ended June 29, 2024, with sales of $78.8 billion, up 3.3% from $76.3 billion in fiscal 2023. Operating income rose 5.4% to $3.2 billion and net earnings increased 10.5% to $2.0 billion ($1,955 million). Diluted earnings per share were $3.89, up 12.1% from $3.47. Excluding Certain Items, adjusted diluted earnings per share were $4.31, a $0.30 increase from $4.01, and adjusted operating income rose 8.4% to $3.5 billion. Growth was driven by volume, including acquisitions, and inflation, with U.S. Foodservice case volume up 3.1% and International local case volume up 5.3%. Cash generation was solid: operating cash flow was $3.0 billion and free cash flow was $2.2 billion, while Sysco spent $1.2 billion on acquisitions, most notably Edward Don & Company for $965 million in cash consideration. Shareholders received $1.0 billion in dividends ($2.00 per share), and the company repurchased 16,128,932 shares for $1.2 billion. Total debt rose to $12.0 billion from $10.4 billion, with approximately 98% at fixed rates, and the company stated it expects to operate within its target of 2.5 to 2.75 times net leverage in fiscal 2025. The filing also outlines the outlook for fiscal 2025: inflation of approximately 2%, low single-digit volume growth, net sales growth of 4% to 5%, capital expenditures near 1% of sales, and an expected effective tax rate of approximately 25%. Risk factors highlighted include exposure to low margins and inflation/deflation, labor shortages and union renegotiations, fuel costs, a 2023 cybersecurity incident, and a Tax Court challenge over foreign tax credits that could require reversing a $131 million benefit.
Aug 28, 2024
2023
Sysco Annual Report, Year Ended Jul 1, 2023
Sysco Corporation (SYY) reported a record fiscal 2023 (52 weeks ended July 1, 2023), with sales rising 11.2%, or $7.7 billion, to $76.3 billion, and operating income increasing 29.5%, or $692.0 million, to $3.0 billion. Net earnings increased 30.3%, or $411.4 million, to $1.8 billion, and diluted earnings per share were $3.47, up from $2.64. On an adjusted basis (excluding Certain Items), adjusted diluted earnings per share were $4.01, a $0.76 increase from $3.25. Management attributed growth primarily to volume: U.S. Foodservice case volume rose 5.2%, and local case volume rose 3.3%, while product cost inflation was 6.1% for the fiscal year. The results included a $315.4 million non-cash pension settlement charge and $122.0 million of income from a litigation financing agreement. Cash flow strengthened, with cash flows from operations of $2.9 billion (compared with $1.8 billion in fiscal 2022) and free cash flow of $2.1 billion (compared with $1.2 billion). Sysco repaid $549.3 million of 1.25% senior notes at maturity and paid $996.0 million in dividends ($1.96 per share). It repurchased 6,231,071 shares for $500.1 million and had approximately $4.0 billion remaining under its repurchase authorization. Total debt was $10.4 billion at July 1, 2023, nearly all at fixed rates, and the company reported approximately $3.7 billion in cash and available liquidity. Management expects fiscal 2024 sales growth in the mid-single digits, reaching approximately $80 billion in annual sales, with slightly positive enterprise inflation, capital expenditures of about 1% of sales, and an effective tax rate of approximately 24.50%. The filing also discloses a cybersecurity event first detected in March 2023, which has not had a material impact to date, and a 2023 acquisition of BIX Produce.
Aug 25, 2023
2022
Sysco Annual Report, Year Ended Jul 2, 2022
Sysco Corporation (SYY) reported a strong fiscal 2022 (52 weeks ended July 2, 2022), with sales rising 33.8% to $68.6 billion, an all-time record. Growth was driven mainly by volume: U.S. Broadline case volume increased 15.4%, and the company said it gained market share at over 1.3 times the industry rate. Product cost inflation was elevated, with U.S. Broadline inflation of 15.0% for the year, which the company said it managed while growing gross profit dollars. Gross margin declined 29 basis points to 17.95% on a GAAP basis, largely due to inflation. Profitability improved significantly. GAAP operating income rose 62.7% to $2.34 billion and GAAP net earnings rose 159.2% to $1.36 billion, or $2.64 diluted EPS. Adjusted diluted EPS, which excludes Certain Items, was $3.25, up from $1.44. Operating expenses rose 26.0% on volume-related costs, business recovery investments of $193 million, and $183 million of Recipe for Growth investments. Free cash flow fell to $1.18 billion from $1.49 billion, reflecting working capital investment and higher capital expenditures of $632.8 million. The company repurchased $499.8 million of stock and paid $958.9 million in dividends. Management expects top-line growth of at least 10% in fiscal 2023. Balance-sheet items to note include total debt of $10.6 billion, cash of $867.1 million at year end, and approximately $3.2 billion of cash and available liquidity as of August 9, 2022. The company also disclosed a $156.2 million estimated share of multiemployer pension withdrawal liability and a $1.0 billion after-tax charge in accumulated other comprehensive loss from pension funded status.
Aug 26, 2022
2021
Sysco Annual Report, Year Ended Jul 3, 2021
Sysco Corporation (SYY) reported fiscal 2021, a 53-week year ended July 3, 2021, with sales of $51.30 billion, down from $52.89 billion in fiscal 2020. Operating income rose to $1.44 billion from $749.5 million, and net earnings increased to $524.2 million from $215.5 million. Diluted EPS was $1.02 versus $0.42. The filing says that excluding Certain Items, adjusted operating income decreased 14.7% to $1.5 billion, adjusted net earnings decreased 28.3% to $740.4 million, and adjusted diluted EPS was $1.44 versus $2.01. Results were hit by COVID-19 volume declines, partly offset by a $184.8 million benefit from reducing reserves on pre-pandemic receivables and cost-out savings that surpassed the $350 million fiscal 2021 goal. Cash flow and balance sheet improved meaningfully. Cash from operations was $1.90 billion and free cash flow was $1.49 billion, compared with $927.0 million the prior year. Sysco paid down $3.4 billion of debt, and total debt fell to $11.1 billion from $14.4 billion. Dividends paid were $917.6 million, or $1.80 per share, and the quarterly dividend was raised to $0.47. Share repurchases were suspended in fiscal 2021, but the board approved a new $5.0 billion repurchase program in May 2021. The company also reported an 8% jump in... [see note below] Looking ahead, management expects fiscal 2022 sales to exceed fiscal 2019 sales by mid-single digits, gross margins to approach fiscal 2019 levels, and an effective tax rate of about 24%. Inflation reached 9.6% combined for the U.S. and Canada in the fourth quarter, and labor and product supply tightness are cited as ongoing pressures. The company also agreed to acquire Greco and Sons, which has approximately $800 million in annual revenue, and closed that acquisition in August 2021.
Aug 30, 2021
2020
Sysco Annual Report, Year Ended Jun 27, 2020
Sysco Corporation (SYY) reported fiscal 2020 results (52 weeks ended June 27, 2020) that were heavily impacted by the COVID-19 pandemic. Sales declined 12.0%, or $7.2 billion, to $52.9 billion, while operating income fell 67.8% to $749.5 million and net earnings fell 87.1% to $215.5 million, or $0.42 per diluted share. Adjusted diluted earnings per share were $2.01, a 43.4% decrease from $3.55. The company said its sales exit rate at fiscal year-end was a decline of approximately 30% versus fiscal 2019, with weekly sales improvements resuming in August 2020 after a flattening in July. The filing shows a significant balance sheet shift toward liquidity. Total debt rose to $14.4 billion from $8.2 billion, driven by $4.0 billion of senior notes issued in April 2020, $1.0 billion issued in February 2020, a $1.8 billion revolver draw in the second half of fiscal 2020, and a £600 million U.K. commercial paper program. Cash and cash equivalents were $6.1 billion at June 27, 2020, and management reported more than $8.0 billion in cash and available liquidity as of August 7, 2020. Cash flow from operations fell to $1.6 billion from $2.4 billion, and free cash flow was $927.0 million versus $1.7 billion. Shareholders' equity fell to $1.16 billion from $2.50 billion. Management also disclosed a corporate modernization program, including the regionalization of U.S. broadline operations and approximately $350 million of annualized permanent cost removal for fiscal 2021. The company recorded $323.4 million of COVID-19-related excess bad debt expense and $203.2 million of goodwill impairment charges. Dividend growth is not expected in fiscal 2021, and the amended revolving credit agreement restricts dividend increases and share repurchases until the earlier of September 2022 or the achievement of a specified EBITDA-to-interest ratio.
Aug 26, 2020
2019
Sysco Annual Report, Year Ended Jun 29, 2019
Sysco Corporation's fiscal 2019 Form 10-K, covering the 52-week year ended June 29, 2019, reports sales of $60.11 billion, up 2.4% from $58.73 billion in fiscal 2018, and net earnings of $1.67 billion, up 17.0%. Diluted earnings per share were $3.20, up 18.3%. Adjusted diluted earnings per share, which excludes Certain Items, were $3.55, up 13.1%. Operating income rose only 0.7% to $2.33 billion on a GAAP basis, while adjusted operating income rose 7.9% to $2.73 billion. The company describes its U.S. Foodservice Operations as its core segment, generating 68.7% of sales and 94.4% of segment operating income. Its International Foodservice Operations segment saw operating income fall 35.3% to $125.4 million, mainly due to restructuring and integration costs in France and the U.K. Management lowered its fiscal 2018 to fiscal 2020 adjusted operating income growth target to approximately $600 million, from an original range of $650 million to $700 million, citing lower-than-expected volume growth and higher expenses. Cash flow from operations was $2.41 billion and free cash flow was $1.74 billion, up 16.8%. Sysco returned capital through $775.4 million in dividends paid and about $1.0 billion in share repurchases. Total debt was $8.2 billion at year-end, and the filing notes that $4.5 billion of pension obligations and a $1.2 billion after-tax pension charge in accumulated other comprehensive loss are ongoing funding considerations. Key risk areas disclosed include low industry margins, exposure to fuel and food cost inflation or deflation, competition from group purchasing organizations and non-traditional channels, Brexit uncertainty affecting U.K. and European operations, and integration challenges in France. The filing also highlights the approximately 22% unionized workforce and multiemployer pension exposure of up to $128 million in estimated withdrawal liability.
Aug 26, 2019
2018
Sysco Annual Report, Year Ended Jun 30, 2018
Sysco Corporation (SYY) reported fiscal 2018 (52 weeks ended June 30, 2018) sales of $58.73 billion, up 6.1% from $55.37 billion in fiscal 2017, with operating income of $2.33 billion, up 13.4%, and GAAP net earnings of $1.43 billion, up 25.2%. Diluted earnings per share were $2.70, up 29.8%. Excluding Certain Items (restructuring, acquisition-related costs, debt extinguishment, MEPP withdrawal charges and Tax Act effects), adjusted diluted EPS was $3.14, up 26.6%, and adjusted operating income grew 8.4% to $2.55 billion. Growth was driven by a 2.9% inflation contribution to U.S. Foodservice sales, 2.0% case volume growth, and acquisitions including HFM Foodservice and Doerle Food Services, and the Brakes Group acquired in fiscal 2017 for $2.9 billion. The company completed its initial three-year plan, reporting adjusted ROIC of 20.2% against a 15.0% target and adjusted operating income growth of $665.1 million versus a $600-$650 million target. It set new fiscal 2020 targets, including $650-$700 million of adjusted operating income growth versus fiscal 2017, 16% adjusted ROIC improvement for existing businesses, and adjusted diluted EPS of $3.85 to $3.95. Sysco expects fiscal 2019 effective tax rate of approximately 25% and capital expenditures of 1.2% to 1.3% of sales. Balance sheet and cash flow remain significant considerations. Total debt was $8.3 billion at June 30, 2018, free cash flow was $1.49 billion (down 5.3%) after a $380.0 million voluntary contribution to the U.S. Retirement Plan, and the company repurchased $978.9 million of shares. Investors should weigh the company's rising operating expenses, international supply chain investments, and the $4.0 billion U.S. pension obligation, against its continued growth in locally managed customer case volume.
Aug 27, 2018
2017
Sysco Annual Report, Year Ended Jul 1, 2017
Sysco Corporation (SYY) reported fiscal 2017 (52 weeks ended July 1, 2017) sales of $55.37 billion, up 9.9% from $50.37 billion in fiscal 2016, which was a 53-week year. Net earnings rose 20.3% to $1.14 billion, and diluted earnings per share rose 26.8% to $2.08. Excluding Certain Items, adjusted diluted earnings per share were $2.48, up 18.1%. The company states that the acquisition of the Brakes Group, closed July 5, 2016 for approximately £2.3 billion (about $3.1 billion), was the main driver of the top-line increase. On a comparable 52-week basis and excluding Brakes, sales rose 1.6%, and adjusted diluted earnings per share rose 13.6% to $2.34. Cash flow from operations was $2.18 billion, and free cash flow was $1.51 billion, up 5.9%. Cash paid for acquisitions was $2.9 billion, and the company repurchased $1.9 billion of shares. Total debt rose to $8.2 billion from $7.4 billion, and the ratio of long-term debt to capitalization increased to 77.5% from 67.9%. Shareholders' equity fell to $2.38 billion from $3.48 billion, largely because of share repurchases and a larger accumulated other comprehensive loss. Management highlights a deflation of 0.6% for the year and says multi-unit customer case growth declined while local customer case growth improved. The company also cites a three-year plan with a target of $600 million to $650 million in adjusted operating income improvement by the end of fiscal 2018. Risks flagged in the filing include the U.K.'s exit from the European Union, fuel and product cost volatility, a $4.2 billion pension obligation, and an estimated withdrawal liability on multiemployer plans of as much as $147.9 million.
Aug 30, 2017
2016
Sysco Annual Report, Year Ended Jul 2, 2016
Sysco Corporation's fiscal 2016 Form 10-K (53 weeks ended July 2, 2016) reports sales of $50.37 billion, up 3.5% from $48.68 billion, with GAAP operating income of $1.85 billion, up 50.5% from $1.23 billion, and net earnings of $949.6 million, up 38.3%. Diluted earnings per share were $1.64, compared with $1.15 in fiscal 2015. The company states that adjusted diluted earnings per share, which exclude Certain Items, were $2.10 (or $2.06 on a comparable 52-week basis), a 14.1% increase (12.0% on the 52-week basis). Certain Items were $158.7 million of operating expense in fiscal 2016, versus $562.5 million in fiscal 2015, which was driven largely by costs of the terminated US Foods merger. Sysco also reported cash flow from operations of $1.93 billion and free cash flow of $1.43 billion, and it repurchased $1.5 billion of stock through an accelerated share repurchase program in fiscal 2016. The most significant development after year-end was the July 5, 2016 closing of the Brakes Acquisition, a European foodservice distributor, for approximately £2.3 billion (about $3.1 billion). The filing notes the combined companies are expected to generate annualized sales of approximately $55 billion. Sysco states the acquisition is expected to be immediately accretive to fiscal 2017 earnings per share, contributing low to mid-single-digit percentage growth. Total debt was $7.4 billion at year-end, and the company's long-term debt to capitalization ratio rose to 67.9% from 58.0%, reflecting debt issued to fund the Brakes Acquisition and the share repurchases. Management set three-year targets through fiscal 2018, including improving operating income by at least $500 million, growing earnings per share faster than operating income, and achieving a 15% return on invested capital improvement. The company also disclosed deflation of 0.7% for fiscal 2016, expects deflation to persist at least through the end of calendar 2016, and said restaurant customer traffic is beginning to decline. It plans to remove the SAP ERP platform by the end of fiscal 2017, which it expects to cost approximately $130 million in fiscal 2017.
Aug 30, 2016
2015-A
Sysco Annual Report (Amendment), Year Ended Jun 27, 2015
This Form 10-K/A (Amendment No. 1) from Sysco Corporation amends the annual report for the fiscal year ended June 27, 2015, originally filed August 25, 2015. Its stated purpose is to add the conformed signature to the consent of Ernst & Young LLP, the independent registered public accounting firm, which was omitted from the EDGAR version of the original consent. The amendment is signed by Joel T. Grade, Executive Vice President and Chief Financial Officer, dated March 2, 2016. It states that no financial statements are included, and that it does not modify any financial or other information in the Original Filing. The filing states that the financial statements (consolidated balance sheets, statements of operations, comprehensive income and cash flows for fiscal 2013 through 2015, and the notes) were previously filed with the Original Filing and are not restated here. It also incorporates by reference the exhibit index from the Original Filing and adds new Section 302 certifications (Exhibits 31.3 and 31.4), with paragraphs 3 through 5 omitted under the stated rule. The cover page reports an aggregate market value of voting stock held by non-affiliates of approximately $23,927,875,000 as of December 27, 2014, and 594,917,977 shares of common stock outstanding as of August 13, 2015. Common stock with a $1.00 par value is listed on the New York Stock Exchange.
Mar 3, 2016
2015
Sysco Annual Report, Year Ended Jun 27, 2015
Sysco Corporation (SYY) reported fiscal 2015 (52 weeks ended June 27, 2015) with sales of $48.68 billion, up 4.7% from $46.52 billion, but operating income fell 22.5% to $1.23 billion and net earnings fell 26.3% to $686.8 million, with diluted earnings per share of $1.15. The decline was driven primarily by Certain Items, mainly $554.7 million of costs tied to the proposed merger with US Foods, which the FTC blocked through a preliminary injunction in June 2015 and which the parties then terminated. Excluding Certain Items, adjusted operating income rose 3.4% to $1.79 billion and adjusted diluted earnings per share rose 5.1% to $1.84. Sysco must pay $312.5 million in merger termination payments, accrued in fiscal 2015 and paid in fiscal 2016. Total debt rose to $7.3 billion at June 27, 2015, largely because of $5.0 billion in senior notes issued in October 2014 to fund the merger; those notes were redeemed in July 2015 using cash on hand and commercial paper. Cash and cash equivalents were $5.13 billion at year end. Free cash flow was $1.04 billion, and the company declared dividends of $1.19 per share. Management announced a repurchase program of up to $3.0 billion over two years ending July 1, 2017, including a planned $1.5 billion accelerated share repurchase in fiscal 2016, plus a separate authorization of up to 20,000,000 shares for no more than $800 million approved in August 2015. For fiscal 2016, Sysco guided capital expenditures of $550 million to $600 million and expects a 53-week year. Management described the foodservice market as modestly improved but with continued competitive pricing pressure, and stated that Sysco's gross margin of 17.57% was stabilized. Sysco is the largest North American foodservice distributor, serving about 425,000 customers, with restaurants representing 64% of sales in fiscal 2015.
Aug 25, 2015
2014
Sysco Annual Report, Year Ended Jun 28, 2014
Sysco Corporation (SYY) reported fiscal 2014 (52 weeks ended June 28, 2014) sales of $46.52 billion, up 4.7% from $44.41 billion in fiscal 2013, while operating income declined 4.3% to $1.59 billion and net earnings fell 6.1% to $931.5 million. Diluted earnings per share were $1.58, down 5.4% from $1.67. Adjusted diluted earnings per share, a non-GAAP measure that excludes Certain Items, were $1.76, down 1.1%. Management attributes the pressure to a slow-growth foodservice market, competitive pricing, a shift toward lower-margin corporate-managed customers, and Certain Items such as US Foods merger costs of $90.6 million and a $20 million settlement liability. Gross margin declined to 17.59% from 18.01%, while operating expenses rose 4.0%. Business Transformation Project benefits partially offset these pressures. The central investor issue is the pending merger with US Foods. Sysco agreed to pay approximately $3.7 billion for US Foods' equity ($3.2 billion in Sysco stock and $500 million in cash) as of August 13, 2014, and to assume or refinance about $4.8 billion of US Foods' net debt, for a total enterprise value of $8.5 billion. The transaction would issue about 87 million shares, roughly 13% of Sysco after closing. The merger is under Federal Trade Commission review, with closing expected in the third quarter or fourth quarter of calendar 2014. Sysco would owe $300 million to US Foods' owners if the merger were cancelled under certain conditions, including lack of regulatory approval. Sysco has secured a $3.3865 billion bridge term loan. Balance sheet and cash flow remained solid. Total debt was $2.76 billion at June 28, 2014, with about 74% at fixed rates. Net cash from operating activities was $1.49 billion, free cash flow was $995.4 million, and dividends paid were $667.2 million, or $1.14 per share. Sysco also disclosed risks including a potential $129.0 million letter of credit requirement tied to Canadian tax appeals and a company-sponsored pension obligation of $3.2 billion as of June 28, 2014.
Aug 26, 2014
2013
Sysco Annual Report, Year Ended Jun 29, 2013
Sysco Corporation (SYY), the largest North American distributor of food and related products to the foodservice (food-away-from-home) industry, reported fiscal 2013 (52 weeks ended June 29, 2013) with sales of $44.41 billion, up 4.8%, and operating income of $1.66 billion, down 12.3%. Net earnings fell 11.5% to $992.4 million, and diluted earnings per share were $1.67, down 12.1%. Management attributes the decline mainly to Business Transformation Project costs of $330.5 million, multiemployer pension plan charges, severance and other excluded charges. On a non-GAAP basis, adjusted operating income decreased 1.7% to $2.08 billion and adjusted diluted earnings per share were $2.14, down 0.5%. Gross margin declined to 17.72% from 18.11% amid competitive pressure and a shift toward large regional and national customers, which carry lower margins. Management no longer expects to reach its original goal of $2.50 to $2.75 diluted EPS by fiscal 2015. It targets $550 million to $650 million in annual Business Transformation benefits by fiscal 2015, with an expectation of 50% to 70% of that benefit in fiscal 2014. Fiscal 2014 capital expenditures are expected at $550 million to $600 million, and retirement-related expenses are expected to fall by $75 million to $85 million. Cash flow from operations was $1.5 billion and free cash flow rose 61.7% to $1.0 billion, with dividends declared of $1.11 per share. The balance sheet shows total debt of $2.89 billion, with about 88% at fixed rates, and shareholders' equity of $5.19 billion. Key risks disclosed include the ERP deployment, margin pressure, fuel costs, union contract renegotiations, an underfunded multiemployer pension exposure estimated as much as $220 million, and a State of California investigation related to drop sites.
Aug 27, 2013
2012
Sysco Annual Report, Year Ended Jun 30, 2012
Sysco Corporation (SYY) reported fiscal 2012 (52 weeks ended June 30, 2012) sales of $42.38 billion, up 7.8% from $39.32 billion, driven primarily by product cost inflation and selling price increases, along with improving case volumes. Operating income declined 2.1% to $1.89 billion, and net earnings fell 2.6% to $1.12 billion. Diluted earnings per share were $1.90 versus $1.96 in fiscal 2011. Management attributes the earnings decline to lower gross margin (18.11% versus 18.80%) from product cost inflation and competitive pricing pressure, along with higher operating expenses including payroll and Business Transformation Project costs of $193.1 million. On a non-GAAP basis, adjusted diluted EPS was $2.13, up 4.4%. The company's Business Transformation Project, which includes an ERP system deployed in August 2012, is expected to cost more than it returns in fiscal 2013, with management targeting $550 million to $650 million in annualized benefits. Management also decided to freeze future benefit accruals under its Retirement Plan effective December 31, 2012, and expects net pension costs to decrease by about $26.5 million in fiscal 2013. Cash flow from operations rose to $1.40 billion from $1.09 billion, and total debt reached $3.0 billion after a June 2012 issuance of $750 million in senior notes. Sysco is the largest North American distributor of food to the foodservice industry, serving about 400,000 customers through 185 distribution facilities. Management estimates it serves about 17.5% of a roughly $225 billion U.S. and Canadian market. Key risks disclosed include product cost inflation, fuel costs, competition, labor availability, union contract renegotiations, and multiemployer pension withdrawal liabilities estimated as much as $205 million.
Aug 28, 2012
2011
Sysco Annual Report, Year Ended Jul 2, 2011
Sysco Corporation (SYY), the largest North American distributor of food and related products to the foodservice (food-away-from-home) industry, reported fiscal 2011 (52 weeks ended July 2, 2011) sales of $39.32 billion, up 5.6% from $37.24 billion in fiscal 2010 (a 53-week year). Adjusted for the extra week in fiscal 2010, sales grew 7.7%, driven primarily by inflation-driven price increases and improving case volumes. Operating income declined 2.2% to $1.93 billion, and net earnings fell 2.4% to $1.15 billion; diluted EPS was $1.96 versus $1.99. Management attributed the margin pressure to product cost inflation that could not be fully passed through, strategic pricing initiatives, and a $36.1 million charge for a partial withdrawal from a multi-employer pension plan. Gross margin declined to 18.62% from 19.08%. The company's cash flow from operations was $1.09 billion, down from $1.58 billion in fiscal 2009 but up from $885.4 million in fiscal 2010, which was depressed by IRS settlement payments. Total debt was $2.67 billion, with about 75% at fixed rates, and capital expenditures were $636.4 million. Management expects fiscal 2012 capital expenditures of $750 million to $800 million and fuel costs to rise by $35 million to $45 million. Dividends declared rose to $1.03 per share, and the company repurchased 10.0 million shares for $291.6 million during the year. Key risks highlighted include the Business Transformation Project (an ERP implementation), which has been delayed by six to twelve months and carries expected fiscal 2012 gross project expenses of $280 million to $300 million. Other risks include potential withdrawal liabilities from multi-employer pension plans, estimated at up to $200.0 million on a voluntary-withdrawal basis, and exposure to fuel and product cost volatility.
Aug 30, 2011
2010
Sysco Annual Report, Year Ended Jul 3, 2010
Sysco Corporation (SYY) reported fiscal 2010, a 53-week year ending July 3, 2010, with sales of $37.24 billion, up 1.1% from $36.85 billion in fiscal 2009. The filing attributes the increase primarily to the additional week, which the company estimates contributed approximately 2.0% to growth, along with improving case volumes in the second half. Product cost deflation of an estimated 1.5% and weak economic conditions partially offset these gains. Operating income rose to $1.98 billion, a 5.5% increase, and net earnings were $1.18 billion, or $1.99 per diluted share, compared with $1.77 in fiscal 2009. The company notes that a one-time IRS settlement reversal and non-taxable COLI gains together added $0.09 per share to earnings. Cash flow from operations fell to $885.4 million from $1.58 billion in fiscal 2009, largely due to a $528.0 million payment related to the IRS settlement and $140.0 million of pension contributions made in advance. Management expects capital expenditures of $700 million to $750 million in fiscal 2011 and a Business Transformation Project (ERP system) with total cash outlay of approximately $900 million, with costs expected to exceed benefits in the early stages, including fiscal 2011. Net company-sponsored pension costs are expected to rise by approximately $60.3 million in fiscal 2011. Total debt was $2.48 billion, about 81% at fixed rates, and the company stated it was in compliance with all debt covenants. Shareholders' equity increased to $3.83 billion from $3.45 billion. The Board approved a new share repurchase program covering an additional 20,000,000 shares on August 27, 2010, and quarterly dividends were raised to $0.25 per share.
Aug 31, 2010
2009
Sysco Annual Report, Year Ended Jun 27, 2009
Sysco Corporation's fiscal 2009 10-K (fiscal year ended June 27, 2009) reports that sales fell 1.8% to $36,853,330 thousand as deteriorating economic conditions reduced consumer spending on food away from home. Operating income decreased 0.4% to $1,872,211 thousand, or 5.1% of sales, and basic and diluted earnings per share were both $1.77, down 3.3% and 2.2% respectively. Net earnings declined 4.5% to $1,055,948 thousand, and the effective tax rate rose to 40.37%, partly reflecting tax contingency adjustments of $31,000,000 and non-deductible losses on corporate-owned life insurance. Management expects a difficult economic environment to continue into fiscal 2010, with moderate product cost deflation so far that year. The balance sheet and liquidity picture is mixed. Cash and cash equivalents rose to $1,087,084 thousand and operating cash flow was $1,582,341 thousand, while total debt was $2,476,649 thousand, about 99% at fixed rates. The long-term debt to total capitalization ratio rose to 41.8% from 36.8%. A settlement with the IRS on August 21, 2009 requires Sysco to pay $528,000 thousand in fiscal 2010, $212,000 thousand in fiscal 2011 and $212,000 thousand in fiscal 2012 related to deferred taxes on its affiliate Baugh Supply Chain Cooperative, which the company says it can fund from cash, operations and capital access. Pension exposure also increased, with net actuarial losses of $534,892 thousand and expected fiscal 2010 contributions of about $140,000 thousand to the Retirement Plan. The company continued to invest, with capital expenditures of $464,561 thousand in fiscal 2009 and a planned $600,000 to $650,000 thousand in fiscal 2010, and it repurchased 16,951,200 shares for $438,843 thousand. Management said it expects to repurchase significantly fewer shares in fiscal 2010. Sysco also began designing an enterprise-wide software system, with a decision on whether to build it expected by the end of calendar 2009.
Aug 25, 2009
2008
Sysco Annual Report, Year Ended Jun 28, 2008
Sysco Corporation reported fiscal 2008 (year ended June 28, 2008) sales of $37.52 billion, up 7.1% from $35.04 billion in fiscal 2007, with net earnings of $1.106 billion, up 10.5%, and diluted earnings per share of $1.81, up 13.1%. Operating income rose 10.0% to $1.88 billion, or 5.0% of sales. The company attributed sales growth mainly to product cost inflation, estimated at 6.0% in fiscal 2008, while the rate of sales growth slowed from 8.5% in the first quarter to 5.4% in the fourth quarter. Management said current economic conditions, including pressure on consumer disposable income, are contributing to a decline in the foodservice market and expects fiscal 2009 sales growth to be lower than fiscal 2008. Fuel costs and multi-employer pension provisions weighed on results. Fuel costs rose $34.0 million in fiscal 2008, and the company expects fuel costs in the first 26 weeks of fiscal 2009 to rise by approximately $55 million to $65 million versus the prior-year period. Fiscal 2008 operating expenses also absorbed a $22.3 million provision related to an underfunded multi-employer pension plan and a withdrawal, and the company estimates its share of withdrawal liability could be as much as $140 million. Capital expenditures fell to $515.963 million from $603.242 million, and fiscal 2009 capital expenditures are expected to be $675 million to $725 million. The balance sheet shows total debt of $1.98 billion, with about 99% at fixed rates averaging 5.4%, and a long-term debt to total capitalization ratio of 36.8%, up from 35.0%. Cash flow from operations was $1.596 billion. The company's most significant tax exposure is the Baugh Supply Chain Cooperative structure: it carries $1.054 billion of deferred tax liabilities related to BSCC, and the IRS has proposed adjustments that Sysco is vigorously protesting. Interest on the deferred balances could range from $290 million to $320 million before tax benefit.
Aug 26, 2008
2007
Sysco Annual Report, Year Ended Jun 30, 2007
Sysco Corporation (SYY) reported fiscal 2007 (year ended June 30, 2007) sales of $35.04 billion, up from $32.63 billion in fiscal 2006, with net earnings of $1.00 billion, or $1.60 per diluted share, compared with $855.3 million, or $1.36 per diluted share, a year earlier. Earnings before income taxes rose to $1.62 billion from $1.39 billion. Management attributed the improvement to sales growth, stable gross margins of 19.3% of sales, and lower operating expenses as a percentage of sales (14.4% versus 14.7%), partly offset by higher incentive bonus accruals and strategic initiative investments. Cash flow from operations increased to $1.40 billion from $1.12 billion, and capital expenditures were $603.2 million. Long-term debt to total capitalization was 35.0%, within the company's stated 35% to 40% target range. The filing highlights several contingent exposures. The IRS has proposed adjustments related to the taxability of the Baugh Supply Chain Cooperative (BSCC), on which Sysco has recorded $988 million of deferred tax liabilities; management estimates possible additional interest of $185 million to $205 million, which it does not consider probable and has not accrued. Sysco also recorded a $50.3 million product liability accrual tied to a July 2007 arbitration loss, offset by a $48.3 million receivable it expects to recover, and estimates its share of multi-employer pension withdrawal liability could reach $120 million. Management also expects FIN 48 adoption in fiscal 2008 to increase tax liabilities by $70 million to $100 million. The company operated 177 distribution facilities serving about 391,000 customers, and its Board approved an additional 20,000,000-share repurchase program in July 2007, with 19,950,000 shares available as of August 15, 2007.
Aug 28, 2007
2006
Sysco Annual Report, Year Ended Jul 1, 2006
Sysco Corporation's fiscal 2006 Form 10-K (fiscal year ended July 1, 2006) reports sales of $32.63 billion, up 7.8% from $30.28 billion in fiscal 2005, but net earnings fell 11.0% to $855.3 million from $961.5 million. Diluted earnings per share were $1.36 versus $1.47. The filing attributes the decline primarily to $118.0 million of incremental share-based compensation expense from adopting SFAS 123(R), higher fuel costs, higher pension costs and continued investment in the National Supply Chain project, which had a net negative impact of approximately $40 million on earnings before income taxes. Operating expenses rose to 14.7% of sales from 13.9%, and interest expense increased 45.5% to $109.1 million on higher borrowing rates and levels. The balance sheet shows total assets of $8.99 billion and total long-term debt of $1.73 billion, with a long-term debt to capitalization ratio of 36.2%, slightly above management's 35% to 40% target range midpoint discussion and up from 33.1% a year earlier. Operating cash flow was $1.12 billion, capital expenditures were $514.8 million, and the company repurchased 16.5 million shares for $544.1 million during the year. Management guides fiscal 2007 capital expenditures of $575 million to $625 million and expects net pension costs to decrease by approximately $53.9 million. The company also disclosed a one-time after-tax, non-cash benefit of $9.3 million from changing the pension measurement date, an upcoming $39.7 million cumulative-effect charge from adopting FSP FTB 85-4-1 in fiscal 2007, and that its 2003 and 2004 federal tax returns are under IRS audit, with $924.9 million of deferred tax liabilities tied to Baugh Supply Chain Cooperative distributions.
Sep 14, 2006
2005
Sysco Annual Report, Year Ended Jul 2, 2005
Sysco Corporation (SYY) reported fiscal 2005 (52 weeks ended July 2, 2005) sales of $30.28 billion, up 3.2% from $29.34 billion in fiscal 2004, which included a 53rd week. Adjusting for that extra week, sales grew 5.3%. Net earnings rose 6.0% to $961.5 million, and diluted earnings per share were $1.47 versus $1.37. Management attributed the gross margin decline to product cost increases, mix changes and pricing pressure, while lower operating expenses as a percent of sales, reduced performance-based incentive compensation and lower net pension costs helped offset rising fuel costs and National Supply Chain expenses. The company describes itself as the largest North American distributor of food and related products to the foodservice industry, serving about 390,000 customers from 170 facilities in the United States and Canada. Financial position remained solid, with total assets of $8.27 billion, shareholders' equity of $2.76 billion, and a long-term debt to total capitalization ratio of 33.1%, below the company's 35% to 40% target range. Operating cash flow was $1.19 billion and capital expenditures were $390.2 million. Management expects fiscal 2006 capital expenditures of $425 million to $450 million and plans to issue $350 million to $500 million of long-term debt in September 2005 to refinance commercial paper. Management also noted that Hurricane Katrina affected operations in New Orleans and Jackson, but does not expect a material adverse effect on fiscal 2006 results. The company also disclosed a $134 million voluntary pension contribution in the fourth quarter of fiscal 2005, and it expects a $0.11 to $0.13 per share earnings impact in fiscal 2006 from adopting SFAS 123(R). Share repurchases totaled 16.8 million shares for $597.7 million during fiscal 2005.
Sep 15, 2005
2004
Sysco Annual Report, Year Ended Jul 3, 2004
Sysco Corporation (SYY) reported fiscal 2004, a 53-week year ended July 3, 2004, in this Form 10-K. Sales rose 12.2% to $29.34 billion from $26.14 billion, and net earnings increased 16.6% to $907.2 million, or $1.37 diluted earnings per share. The filing states that the additional week contributed an estimated 2.2% to sales growth and that adjusted sales growth was 10.0%. Management said rising product costs, estimated at 6.3% for the year and 8.0% in the fourth quarter, contributed to a softer foodservice market, and that sales growth slowed in the latter half of the fourth quarter and continued slowing into the first quarter of fiscal 2005. Gross margin as a percentage of sales declined, with cost of sales at 80.7% of sales versus 80.3% in fiscal 2003. Operating expenses fell to 14.1% of sales from 14.7%, helped by operating efficiencies and a $19.1 million gain on life insurance assets, partly offset by a $39.9 million increase in net pension costs. Cash from operations declined to $1.19 billion from $1.37 billion, mainly because cash taxes paid rose to $344.4 million from $28.7 million as supply chain tax deferrals began reversing. Long-term debt to total capitalization was 32.4%, below management's 35% to 40% target range, and the company repurchased 16.45 million shares for $608.5 million during the year. The company plans capital expenditures of $475 million to $500 million in fiscal 2005 and continues its National Supply Chain project, with the first regional distribution center in Front Royal, Virginia expected to become operational in the third quarter of fiscal 2005. Sysco also notes that it expects to incur an additional $40 million to $50 million in National Supply Chain expenses in fiscal 2005.
Sep 16, 2004
2003
Sysco Annual Report, Year Ended Jun 28, 2003
Sysco Corporation (SYY) reported record fiscal 2003 results for the year ended June 28, 2003, with sales of $26.14 billion, up 11.9% from $23.35 billion in fiscal 2002. Net earnings rose to $778.3 million, or $1.18 per diluted share, compared with $679.8 million, or $1.01 per diluted share, the prior year. The filing describes this as the twenty-seventh consecutive year of increased net earnings. The company describes itself as the largest North American distributor of food and food-related products to the foodservice industry, serving approximately 420,000 customers through 162 facilities in the United States and Canada. Cash flow from operations reached $1.37 billion, up from $1.08 billion, aided by deferral of federal and state income tax payments tied to the company's National Supply Chain initiative, which the filing estimates saved about $410 million in cash flow in fiscal 2003. Capital expenditures were $435.6 million, and fiscal 2004 capital spending is expected to be $490 million to $510 million. Total debt was $1.37 billion at June 28, 2003, with the long-term debt-to-capitalization ratio at 36.2%, within management's 35% to 40% target range. Total assets grew to $6.94 billion. Shareholder dividends rose to $0.42 per share for the year, and the board authorized repurchase of an additional 20 million shares in September 2003. The filing flags several risks, including the low-margin, economically sensitive nature of foodservice distribution, reliance on third-party suppliers without long-term contracts, and the operational challenges of integrating acquisitions. Management states that pending legal proceedings are not expected to have a material adverse effect on the company's financial position or results of operations.
Sep 26, 2003
2002
Sysco Annual Report, Year Ended Jun 29, 2002
Sysco Corporation (SYY) reported fiscal 2002 (year ended June 29, 2002) sales of $23,350,504 thousand, up 7.2% from $21,784,497 thousand in fiscal 2001, and net earnings of $679,787 thousand, up 13.9% from $596,909 thousand. Diluted earnings per share were $1.01 versus $0.88. The company described itself as the largest North American distributor of food and food-related products to the foodservice industry, serving approximately 415,000 customers from 158 facilities in the United States and Canada. Management attributed the slower sales growth to softness in the economy and tough comparisons to fiscal 2001. Real sales growth, adjusted for food cost increases and acquisitions, was approximately 2.7% in 2002, compared with 5.8% in 2001. Cash flow from operations rose to $1,084,980 thousand from $955,224 thousand, helped by a deferral of $266,673 thousand in federal and state income tax payments tied to a supply chain reorganization. Capital expenditures were $416,393 thousand, and the company expects fiscal 2003 capital spending of $450,000 thousand to $500,000 thousand. Long-term debt was $1,176,307 thousand, and the long-term debt-to-capitalization ratio was 35.6%, within management's stated target range of 35% to 40%. The company repurchased 18,000,000 shares for $473,558 thousand during fiscal 2002, and the Board authorized an additional 20,000,000 shares in July 2002. The filing notes that SFAS No. 142 will be adopted in fiscal 2003, discontinuing goodwill amortization, and management believes goodwill is not impaired. Pension plan assets declined with the stock market, resulting in a minimum pension liability of $65,435 thousand, net of tax, recorded through shareholders' equity. Management believes the outcome of pending legal proceedings will not have a material adverse effect on the company.
Sep 25, 2002
2001
Sysco Annual Report, Year Ended Jun 30, 2001
Sysco Corporation (SYY) reported fiscal 2001 (year ended June 30, 2001) sales of $21.78 billion, up from $19.30 billion in fiscal 2000, with the filing stating a 12.8% increase. Net earnings rose to $596.9 million ($0.88 diluted EPS) from $445.6 million ($0.67 diluted EPS in fiscal 2000, after an $8.0 million cumulative accounting charge). Earnings before income taxes were $966.7 million, and the filing attributes the improvement to additional sales, operating efficiencies and a higher mix of territorial street customers and SYSCO brand products. Operating expenses were 14.8% of sales, compared with 14.7% in fiscal 2000. The company generated $955.2 million in operating cash flow and spent $341.1 million on capital expenditures, with fiscal 2002 capital spending guided to $425 million to $450 million. Long-term debt was $961.4 million and the long-term debt to capitalization ratio fell to 30.9% from 36.8%, below the company's stated 35% to 40% target range. The Board authorized a new repurchase of 16,000,000 shares in September 2001, and the quarterly dividend was raised to $0.07 per share in February 2001. The filing describes Sysco as the largest North American foodservice distributor, serving about 370,000 customers through 124 operating companies, with restaurants representing 64% of fiscal 2001 sales. Customer concentration is limited, with no single customer above 5% of sales apart from Wendy's International at 4.9%. Risk factors highlighted low margins, reliance on suppliers, labor relations and integration of acquisitions. Legal proceedings are described as not expected to have a material adverse effect.
Sep 27, 2001
2000-A
Sysco Annual Report (Amendment), Year Ended Jul 1, 2000
Sysco Corporation, the largest North American distributor of food and food-related products to the foodservice industry, reported fiscal 2000 (year ended July 1, 2000) with sales of $19.30 billion, up from $17.42 billion in fiscal 1999, and net earnings of $445.6 million, or $1.33 per diluted share, compared with $362.3 million, or $1.08 per diluted share, the prior year. The filing states that earnings before the cumulative effect of an accounting change rose $91,358,000, or approximately 25%, and that fiscal 2000 was the twenty-fourth consecutive year of increased earnings before that effect. Return on average shareholders' equity before the accounting change was approximately 29%, compared with 26% in 1999 and 23% in 1998. Sales growth was driven by the strong U.S. economy and foodservice industry growth, with acquisitions representing 3.5% of total sales for fiscal 2000, and the company acquired three custom-meat operations, two broadline companies and one specialty produce company during the year for $211.9 million in cash plus 4,984,497 restricted shares. The balance sheet shows total assets of $4.81 billion and long-term debt of $1.02 billion, with the long-term debt to total capitalization ratio at 36.8%, down from 41.1% a year earlier. Net cash provided by operating activities rose to $708.7 million from $585.3 million, which covered capital expenditures of $266.4 million, dividends of $145.4 million and share repurchases of $186.3 million. The quarterly cash dividend rose to twelve cents per share from ten cents. Management projects fiscal 2001 capital expenditures of $325 million to $375 million. The filing also identifies risks including the low-margin nature of the business, sensitivity to economic conditions, leverage, product liability claims, supplier interruptions, labor relations (with 14 union agreements covering approximately 2,500 employees expiring in fiscal 2001), and integration of acquired companies. Customer concentration is limited, with no single traditional customer accounting for as much as 5% of sales, while Wendy's International accounted for 5.0% of sales.
May 15, 2001
2000
Sysco Annual Report, Year Ended Jul 1, 2000
Sysco Corporation's Form 10-K for fiscal 2000 (year ended July 1, 2000) reports record results for the largest North American distributor of food to the foodservice industry, serving approximately 356,000 customers. Sales rose 11% to $19.30 billion from $17.42 billion, and net earnings increased $83.3 million, or approximately 23%, to $445.6 million. Diluted earnings per share were $1.33, compared with $1.08 in fiscal 1999. Earnings before the cumulative effect of an accounting change rose approximately 25%, and the company cited its twenty-fourth consecutive year of increased earnings before that effect. Return on average shareholders' equity before the accounting change was approximately 29%, compared with 26% in 1999. Operating cash flow was $708.7 million, and capital expenditures were $266.4 million. The balance sheet strengthened over the year. Total assets grew to $4.81 billion from $4.10 billion, largely reflecting acquisitions, including Watson Foodservice and FreshPoint, and goodwill and intangibles rose to $503.0 million from $302.1 million. Long-term debt was $1.02 billion, and the long-term debt to total capitalization ratio fell to 36.8% from 41.1%. Shareholders' equity rose to $1.76 billion. The company raised its quarterly dividend to twelve cents per share and guided fiscal 2001 capital expenditures to a range of $325 million to $375 million. Management also flagged risks including low margins, economic sensitivity, labor relations, and integration of acquired companies, and noted an $8.0 million after-tax, non-cash charge from adopting SOP 98-5.
Sep 27, 2000
1999
Sysco Annual Report, Year Ended Jul 3, 1999
Sysco Corporation (SYSCO), the largest North American distributor of food and food-related products to the foodservice industry, reported fiscal 1999 (53 weeks ended July 3, 1999) sales of $17.42 billion, up 14% from $15.33 billion in fiscal 1998. Net earnings were $362.3 million, or $1.08 diluted earnings per share, compared with $296.8 million, or $0.86 diluted, in fiscal 1998, which included a $28.1 million after-tax non-cash accounting charge. Earnings before income taxes rose to $593.9 million from $532.5 million. Operating cash flow increased to $585.3 million from $357.8 million, and the return on average shareholders' equity was approximately 26%. Fiscal 1999 marked the company's twenty-third consecutive year of increased earnings. SYSCO's long-term debt rose to $997.7 million, and long-term debt to total capitalization reached 41.1%, above the company's 35% to 40% target range, which management attributed to shares repurchased for acquisitions closing in early fiscal 2000. About 78% of long-term debt carries fixed rates averaging 6.75%. The company repurchased 7,567,300 shares for $204.0 million during fiscal 1999 and authorized a new 8,000,000 share buyback on July 9, 1999. Quarterly dividends were increased to ten cents per share in February 1999, and total cash dividends for the year were $0.38 per share. Management expects fiscal 2000 capital expenditures of $230 million to $250 million. The company reports that its Year 2000 mission-critical systems were found compliant after testing, with remaining upgrades to be completed by December 1999. Management states that the total cost of Year 2000 compliance is not expected to have a material impact on the financial statements. The company also disclosed that its foodservice distribution business operates on low margins and is sensitive to economic conditions, and that it has no material long-term supplier contracts.
Sep 24, 1999
1998
Sysco Annual Report, Year Ended Jun 27, 1998
Sysco Corporation (SYY) reported fiscal 1998 (year ended June 27, 1998) sales of $15.33 billion, up 6% from $14.45 billion in fiscal 1997, with growth driven by the foodservice business serving traditional customers (restaurants, hospitals, schools, hotels) and chain restaurants through its SYGMA Network. Net earnings were $296.8 million, or $0.86 diluted per share, down about 2% from $302.5 million, because of a one-time, after-tax, non-cash charge of $28.1 million from adopting EITF Issue No. 97-13 on computer systems reengineering costs. Earnings before that accounting change rose 7% to $324.8 million, and the company cited its twenty-second consecutive year of increased earnings before the cumulative effect of an accounting change. The balance sheet shows total assets of $3.78 billion and shareholders' equity of $1.36 billion, down from $1.40 billion. Long-term debt rose to $867.0 million, and the ratio of long-term debt to total capitalization increased to 39% from 33%, within the company's stated target range of 30% to 40%. Operating cash flow fell to $357.8 million from $498.1 million, while capital expenditures were $259.4 million. Management expects fiscal 1999 capital expenditures of $240 million to $260 million. The company repurchased 12.1 million shares for $263.4 million in fiscal 1998 and authorized a new 8 million share buyback on September 4, 1998. Quarterly dividends rose during the year, and the total for fiscal 1998 was $0.33 per share. The company stated that it expects Year 2000 costs to be immaterial to its results, while acknowledging that disruptions from non-compliant systems are possible and that contingency plans are under development. Arthur Andersen LLP audited the financial statements and issued an unqualified opinion. In July 1998, Sysco issued $225 million of 6.5% debentures due 2028 and used the proceeds to repay commercial paper.
Sep 24, 1998
1997
Sysco Annual Report, Year Ended Jun 28, 1997
Sysco Corporation's annual report for the fiscal year ended June 28, 1997 shows net sales of $14.45 billion, up 8% from $13.40 billion in fiscal 1996, with net earnings of $302.5 million (up about 9%) and earnings per share of $1.71 versus $1.52. The company describes itself as engaged in marketing and distributing a wide range of food and related products to the foodservice industry, serving traditional customers such as restaurants, hospitals, schools and hotels, as well as chain restaurants through its SYGMA Network. Restaurants accounted for 61% of fiscal 1997 sales, and no single customer represented as much as 5% of sales. Management described fiscal 1997 as the twenty-first consecutive year of increased earnings. The balance sheet and cash flow show operating cash flow of $498.1 million in fiscal 1997, up from $350.4 million, while capital expenditures were $210.9 million. Long-term debt rose to $685.6 million, and long-term debt to capitalization increased to 33% from 28%, reflecting debt-financed share repurchases. Treasury stock purchases totaled $305.3 million for 9,016,400 shares, and shareholders' equity declined to $1.40 billion from $1.47 billion. The company reported a return on average shareholders' equity of approximately 21%, compared with 19% in fiscal 1996 and 1995. The filing also notes that Sysco operates 99 distribution facilities and self-serve centers, a fleet of about 5,380 delivery vehicles, and approximately 32,000 employees, 21% of whom are union members. Fiscal 1998 capital expenditures are expected to be between $220 million and $240 million. Management stated that pending legal proceedings are not expected to have a material adverse effect on the company's financial position or results of operations.
Sep 25, 1997
1996
Sysco Annual Report, Year Ended Jun 29, 1996
Sysco Corporation's Form 10-K for the fiscal year ended June 29, 1996 reports sales of $13.40 billion, up 11% from $12.12 billion in fiscal 1995, with net earnings of $276.9 million, or $1.52 per share, up about 10% from $251.8 million. Management describes fiscal 1996 as the twentieth consecutive year of increased earnings. Earnings before income taxes rose to $453.9 million, and the company states that operating expenses were 14.3% of sales in each of fiscal 1996, 1995 and 1994. Return on average shareholders' equity was approximately 19% in 1996. Cash flow and balance sheet items point to steady financing. Net cash from operations was $350.4 million, against capital expenditures of $235.9 million, with fiscal 1997 capital spending expected at $240 million to $250 million. Long-term debt was $581.7 million, or 28.3% of total capitalization, and about 84% of total debt carries fixed rates averaging 7.45%. The company issued $200 million of 7.0% senior notes in May 1996 and repurchased 7,314,100 shares for $232.1 million during fiscal 1996. Quarterly dividends rose to $0.13 per share from $0.11. The filing describes a foodservice distributor serving restaurants (61% of fiscal 1996 sales), hospitals and nursing homes, schools, and hotels, with chain restaurant customers served through its SYGMA Network. No single customer accounted for as much as 5% of sales. Management states that legal proceedings are not expected to have a material adverse effect on the company's financial position or results.
Sep 26, 1996
1995
Sysco Annual Report, Year Ended Jul 1, 1995
Sysco Corporation's Form 10-K for the fiscal year ended July 1, 1995 reports sales of $12.12 billion, up 11% from $10.94 billion in fiscal 1994, with net earnings of $251.8 million ($1.38 per share), up 16% from $216.8 million. The company describes itself as engaged in marketing and distribution of food and related products to the foodservice or "away-from-home-eating" industry, serving traditional customers such as restaurants, hospitals, schools and hotels, as well as chain restaurants through its SYGMA Network. Restaurants made up 60% of sales in fiscal 1995. Management cites this as the nineteenth consecutive year of increased earnings, and the filing reports a return on average shareholders' equity of approximately 19% in 1995. Operating expenses were 14.3% of sales in fiscal 1995, unchanged from 1994, and the effective tax rate was approximately 40%. Net cash from operating activities rose to $336.9 million, and capital expenditures were $201.6 million, with fiscal 1996 capital spending expected in the range of $210 million to $230 million. Long-term debt was $541.6 million, with long-term debt to capitalization of 28% at July 1, 1995, down from 30% a year earlier. Total assets reached $3.09 billion and shareholders' equity $1.40 billion. The company issued $150 million of 6.5% senior notes due 2005 in June 1995, priced at 99.4% of par, and repurchased 2.1 million shares for $53.2 million during the year. Quarterly dividends rose to eleven cents per share from nine cents, with annual dividends of $.40 per share. Management states that pending legal proceedings are not expected to have a material adverse effect on the company's financial position or results of operations.
Sep 27, 1995
1994
Sysco Annual Report, Year Ended Jul 2, 1994
Sysco Corporation's annual report on Form 10-K for the fiscal year ended July 2, 1994 describes a foodservice marketing and distribution business serving mainly restaurants (60% of sales in fiscal 1994), hospitals and nursing homes (13%), schools and colleges (7%), and hotels and motels (6%). Sales rose to $10.94 billion in fiscal 1994 from $10.02 billion in fiscal 1993, a 9% increase, and net earnings rose to $216.8 million ($1.18 per share) from $201.8 million ($1.08 per share). The filing states this was the eighteenth consecutive year of increased earnings, and it reports a return on average shareholders' equity of approximately 18% for 1994. The balance sheet shows total assets of $2.81 billion, shareholders' equity of $1.24 billion, and long-term debt of $538.7 million, which the filing states was 30.3% of total capitalization. About 47% of long-term debt was at fixed rates averaging 7.98%, and 53% at floating rates averaging 4.36%. Operating cash flow was $282.5 million, capital expenditures were $161.5 million, and the company repurchased 3,000,000 shares for $80.1 million during fiscal 1994. The filing projects fiscal 1995 capital expenditures of $150 million to $200 million. The company operates 108 distribution facilities and self-serve centers, employs approximately 26,200 people (21.9% unionized, primarily under the Teamsters), and has a fleet of about 4,500 delivery vehicles. Management states that legal proceedings are not expected to have a material adverse effect on the company's financial position or results of operations.
Sep 29, 1994