How did Sysco's sales and earnings perform in fiscal 1994?

Sales rose 9% to $10,942,499,000 from $10,021,513,000 in fiscal 1993, which was a 53-week year. Net earnings increased 7% to $216,752,000, or $1.18 per share, from $201,807,000, or $1.08 per share. The filing states that excluding the extra week in fiscal 1993 and the higher tax rate in fiscal 1994, net earnings would have increased about 14%.

What is the company's debt position?

Long-term debt was $538,711,000 at July 2, 1994, or 30% of capitalization, unchanged from the prior year. About 47% of this debt carried fixed rates averaging 7.98%, and 53% carried floating rates averaging 4.36%. The company had a $300,000,000 revolving loan agreement supporting its commercial paper program, which the filing says expires in fiscal 1997.

Who are Sysco's main customers?

Restaurants accounted for 60% of sales in fiscal 1994, followed by hospitals and nursing homes at 13%, schools and colleges at 7%, hotels and motels at 6%, and all other customers at 14%. The company also serves chain restaurants through its SYGMA Network operations, and no chain restaurant customer accounted for as much as 3% of sales.

How did the company return cash to shareholders?

The company paid $59,074,000 in dividends in fiscal 1994, or $.32 per share, and the quarterly rate was raised to nine cents per share in November 1993. It also repurchased 3,000,000 shares for $80,131,000 in fiscal 1994, primarily to offset shares issued under employee benefit plans and conversions of Liquid Yield Option Notes.

What are the company's main business risks or legal exposures disclosed in the filing?

The filing states that SYSCO is engaged in various legal proceedings that management believes will not have a material adverse effect on its financial position or results of operations. It also notes that 21.9% of employees are union members, primarily Teamsters, with collective bargaining agreements covering about 12% of union employees expiring in fiscal 1995.

SYY 10-K FY1994 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K filed September 29, 1994. Cited figures are marked; the original filing is the authoritative source.

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%^a 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^b 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^c, 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%^d 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.

02—Key points

Key Highlights

Net sales increased 9% to $10.94 billion in fiscal 1994, with real sales growth of about 7% after adjusting for acquisitions, food price increases and the 53rd week in fiscal 1993.
Net earnings rose 7% to $216.8 million, or $1.18 per share, marking the eighteenth consecutive year of increased earnings.
Return on average shareholders' equity was approximately 18% in 1994 and 1993, and has averaged in excess of 16% since inception.
Operating cash flow was $282.5 million, and capital expenditures were $161.5 million, with fiscal 1995 capital spending expected at $150 million to $200 million.
Long-term debt of $538.7 million equaled 30.3% of total capitalization; the company repurchased 3,000,000 shares for $80.1 million in fiscal 1994.
Quarterly dividend rose to nine cents per share in November 1993 from seven cents, and fiscal 1994 cash dividends totaled $.32 per share.
Restaurants make up 60% of sales, and no single traditional foodservice customer accounted for as much as 3% of sales.

03—Questions

Frequently Asked Questions

How did Sysco's sales and earnings perform in fiscal 1994?
Sales rose 9% to $10,942,499,000 from $10,021,513,000 in fiscal 1993, which was a 53-week year. Net earnings increased 7% to $216,752,000, or $1.18 per share, from $201,807,000, or $1.08 per share. The filing states that excluding the extra week in fiscal 1993 and the higher tax rate in fiscal 1994, net earnings would have increased about 14%.
What is the company's debt position?
Long-term debt was $538,711,000 at July 2, 1994, or 30% of capitalization, unchanged from the prior year. About 47% of this debt carried fixed rates averaging 7.98%, and 53% carried floating rates averaging 4.36%. The company had a $300,000,000 revolving loan agreement supporting its commercial paper program, which the filing says expires in fiscal 1997.
Who are Sysco's main customers?
Restaurants accounted for 60% of sales in fiscal 1994, followed by hospitals and nursing homes at 13%, schools and colleges at 7%, hotels and motels at 6%, and all other customers at 14%. The company also serves chain restaurants through its SYGMA Network operations, and no chain restaurant customer accounted for as much as 3% of sales.
How did the company return cash to shareholders?
The company paid $59,074,000 in dividends in fiscal 1994, or $.32 per share, and the quarterly rate was raised to nine cents per share in November 1993. It also repurchased 3,000,000 shares for $80,131,000 in fiscal 1994, primarily to offset shares issued under employee benefit plans and conversions of Liquid Yield Option Notes.
What are the company's main business risks or legal exposures disclosed in the filing?
The filing states that SYSCO is engaged in various legal proceedings that management believes will not have a material adverse effect on its financial position or results of operations. It also notes that 21.9% of employees are union members, primarily Teamsters, with collective bargaining agreements covering about 12% of union employees expiring in fiscal 1995.

04—Continue

← View all 10-K filings