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Sysco Annual Report, Year Ended Jun 30, 2001

Filing Date
Filed September 27, 2001
Period End
June 30, 2001
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 filed September 27, 2001. Cited figures are marked; the original filing is the authoritative source.

Sysco Corporation (SYY) reported fiscal 2001 (year ended June 30, 2001) sales of $21.78 billiona, up from $19.30 billion in fiscal 2000, with the filing stating a 12.8% increase.

Net earnings rose to $596.9 millionb ($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 millionc 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%d 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.

02—Key points

Key Highlights

  1. Sales rose to $21.78 billion in fiscal 2001 from $19.30 billion, with the filing stating a 12.8% increase.
  2. Net earnings were $596.9 million, or $0.88 diluted EPS, versus $445.6 million, or $0.67 diluted EPS, in fiscal 2000.
  3. Operating cash flow was $955.2 million, while capital expenditures were $341.1 million.
  4. Long-term debt to capitalization fell to 30.9% from 36.8%, below the stated 35% to 40% target range.
  5. The Board authorized repurchase of an additional 16,000,000 shares in September 2001.
  6. Fiscal 2002 capital expenditures are estimated at $425 million to $450 million.
  7. Sysco describes itself as the largest North American foodservice distributor, serving about 370,000 customers, with no customer above 5% of sales except Wendy's at 4.9%.

03—Questions

Frequently Asked Questions

  1. How did Sysco's profitability change in fiscal 2001?

    Earnings before income taxes rose $229.0 million, or approximately 31%, to $966.7 million, and net earnings increased $151.3 million, or approximately 34%, to $596.9 million. The filing attributes the gains to additional sales, operating efficiencies and growth in higher-margin territorial street customers and SYSCO brand products.

  2. How is Sysco financing its growth and share repurchases?

    The filing states that capital expenditures were financed mainly by internally generated funds, the commercial paper program and bank borrowings. Long-term debt was $961.4 million at June 30, 2001, about 80% at fixed rates averaging 6.76%, and the company stated it has continuing borrowing capacity.

  3. Who are Sysco's largest customers and how concentrated is its revenue?

    Restaurants accounted for 64% of fiscal 2001 sales. No single foodservice customer represented as much as 5% of sales, and Wendy's International accounted for 4.9% of sales, which the filing notes was its only named chain restaurant customer above that threshold.

  4. What are the main risks the filing identifies?

    The filing cites a low-margin business sensitive to economic conditions, leverage and debt service, product liability exposure, reliance on third-party suppliers without long-term contracts, labor relations with about 8,300 union-represented employees, and the difficulty of integrating acquired companies.

04—Continue

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