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Sysco Annual Report (Amendment), Year Ended Jul 1, 2000

Filing Date
Filed May 15, 2001
Period End
July 1, 2000
Security
SYY
In the record · 2016–202610-K1210-Q328-K147

SYY filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 147 current reports (8-K) between 2016 and 2026.

  1. FY2017 annual report10-K · Aug ’17Aug ’17
  2. Material agreement8-K · Feb ’20Feb ’20
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K/A filed May 15, 2001. Cited figures are marked; the original filing is the authoritative source.

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 billiona, 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,b 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 billionc 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 milliond. 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.

02—Key points

Key Highlights

  1. Fiscal 2000 sales rose to $19.30 billion from $17.42 billion, with the filing citing an 11% annual increase.
  2. Net earnings increased to $445.6 million ($1.33 diluted EPS) from $362.3 million ($1.08 diluted EPS), after an $8.0 million after-tax charge for an accounting change.
  3. Earnings before the cumulative effect of an accounting change rose approximately 25%, marking the twenty-fourth consecutive year of increased earnings before that effect.
  4. Return on average shareholders' equity before the accounting change was approximately 29%, up from 26% in 1999 and 23% in 1998.
  5. Long-term debt to total capitalization fell to 36.8% from 41.1%, and operating cash flow increased to $708.7 million from $585.3 million.
  6. Acquisitions in fiscal 2000 totaled $211.9 million in cash and 4,984,497 restricted shares, and the Broadline and SYGMA segments remained the reportable segments.
  7. Quarterly dividend increased to twelve cents per share from ten cents, and fiscal 2001 capital expenditures are projected at $325 million to $375 million.

03—Questions

Frequently Asked Questions

  1. How did Sysco perform financially in fiscal 2000?

    Sales reached $19.30 billion, up 11% from fiscal 1999, and net earnings were $445.6 million, or $1.33 per diluted share, compared with $362.3 million, or $1.08 per diluted share, a year earlier. Earnings before the cumulative effect of an accounting change rose approximately 25%.

  2. How is Sysco financing its growth and returning capital to shareholders?

    Operating cash flow of $708.7 million funded capital expenditures of $266.4 million, dividends of $145.4 million and share repurchases of $186.3 million. Long-term debt to total capitalization was 36.8% at July 1, 2000, down from 41.1%. The quarterly dividend rose to twelve cents per share from ten cents.

  3. What were the main risks identified in the filing?

    The filing cites a low-margin business sensitive to economic conditions, leverage and debt service, product liability claims, interruptions in supplies, labor relations with 14 union agreements covering approximately 2,500 employees expiring in fiscal 2001, and difficulties integrating acquired companies.

  4. How concentrated is Sysco's customer base?

    No single traditional foodservice customer accounted for as much as 5% of sales in fiscal 2000. Wendy's International, a chain restaurant customer, accounted for 5.0% of sales. Restaurants made up 65% of sales by customer type.

  5. What acquisitions did Sysco complete in fiscal 2000?

    Sysco acquired three custom-meat operations, two broadline foodservice companies and one specialty produce company during fiscal 2000. The company paid $211.9 million in cash and issued 4,984,497 unregistered, restricted shares to the former owners. Acquisitions represented 3.5% of total sales for the year.

04—Continue

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