How did Sysco perform financially in fiscal 1996?

Sysco reported sales of $13.40 billion, up 11%, and net earnings of $276.9 million, or $1.52 per share, up about 10% from $251.8 million, or $1.38 per share, in fiscal 1995. Earnings before income taxes were $453.9 million.

What is Sysco's business?

Sysco is engaged in marketing and distributing a wide range of food and related products to the foodservice or away-from-home-eating industry. Traditional customers include restaurants, hospitals, schools, hotels and industrial caterers, and chain restaurant customers are served through the SYGMA Network.

How strong is Sysco's balance sheet and debt position?

Long-term debt was $581.7 million at June 29, 1996, or 28.3% of total capitalization, down from 30.3% in 1994. About 84% of total debt is at fixed rates averaging 7.45%. In May 1996 the company issued $200 million of 7.0% senior notes due 2006, and it had a $300 million bank credit facility supporting its commercial paper program.

What are Sysco's plans for capital spending and shareholder returns?

Sysco expects fiscal 1997 capital expenditures of $240 million to $250 million. During fiscal 1996 it bought back 7,314,100 shares for $232.1 million, and the Board authorized a 6,000,000 share buyback during calendar 1996. The quarterly dividend rose to $.13 per share from $.11.

How concentrated is Sysco's customer base and supplier base?

No single traditional foodservice customer accounted for as much as 5% of sales, and no chain restaurant customer accounted for as much as 3%. The company purchases from thousands of independent sources, none of which accounts for more than 5% of its purchases.

SYY 10-K FY1996 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K filed September 26, 1996. Cited figures are marked; the original filing is the authoritative source.

Sysco Corporation's Form 10-K for the fiscal year ended June 29, 1996 reports sales of $13.40 billion^a, 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^b, 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^c, 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^d 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.

02—Key points

Key Highlights

Sales rose 11% to $13,395,130 thousand in fiscal 1996, from $12,118,047 thousand in fiscal 1995.
Net earnings increased to $276,905 thousand, or $1.52 per share, versus $251,824 thousand, or $1.38 per share, in fiscal 1995.
Fiscal 1996 marked the twentieth consecutive year of increased earnings, per management.
Return on average shareholders' equity was approximately 19% in 1996, 19% in 1995 and 18% in 1994.
Net cash provided by operating activities was $350,434 thousand, against capital expenditures of $235,891 thousand.
Long-term debt was $581,734 thousand, 28.3% of total capitalization; about 84% of total debt is at fixed rates averaging 7.45%.
The company repurchased 7,314,100 shares for $232,070 thousand in fiscal 1996 and raised its quarterly dividend to $.13 per share.

03—Questions

Frequently Asked Questions

How did Sysco perform financially in fiscal 1996?
Sysco reported sales of $13.40 billion, up 11%, and net earnings of $276.9 million, or $1.52 per share, up about 10% from $251.8 million, or $1.38 per share, in fiscal 1995. Earnings before income taxes were $453.9 million.
What is Sysco's business?
Sysco is engaged in marketing and distributing a wide range of food and related products to the foodservice or away-from-home-eating industry. Traditional customers include restaurants, hospitals, schools, hotels and industrial caterers, and chain restaurant customers are served through the SYGMA Network.
How strong is Sysco's balance sheet and debt position?
Long-term debt was $581.7 million at June 29, 1996, or 28.3% of total capitalization, down from 30.3% in 1994. About 84% of total debt is at fixed rates averaging 7.45%. In May 1996 the company issued $200 million of 7.0% senior notes due 2006, and it had a $300 million bank credit facility supporting its commercial paper program.
What are Sysco's plans for capital spending and shareholder returns?
Sysco expects fiscal 1997 capital expenditures of $240 million to $250 million. During fiscal 1996 it bought back 7,314,100 shares for $232.1 million, and the Board authorized a 6,000,000 share buyback during calendar 1996. The quarterly dividend rose to $.13 per share from $.11.
How concentrated is Sysco's customer base and supplier base?
No single traditional foodservice customer accounted for as much as 5% of sales, and no chain restaurant customer accounted for as much as 3%. The company purchases from thousands of independent sources, none of which accounts for more than 5% of its purchases.

04—Continue

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