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SYY · Sysco

50 filings

10-Q

SYY 10-Q Quarterly Reports

Sysco - 50 quarterly reports

Filing 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
  1. 2026-Q3

    Sysco Quarterly Report for Q3 Ended Mar 28, 2026

    Sysco Corporation's third-quarter fiscal 2026 10-Q (quarter ended March 28, 2026) shows sales of $20.5 billion, up 4.7% from the prior-year quarter, driven primarily by volume improvements. Operating income fell 9.1% to $619 million and net earnings fell 15.2% to $340 million, or $0.71 per diluted share, with the company citing higher incentive compensation, increased restructuring and transformational project costs, and higher acquisition and due diligence costs. On an adjusted basis (excluding Certain Items), adjusted operating income declined 0.6% and adjusted diluted EPS declined 2.1% to $0.94. For the first 39 weeks, sales rose 3.6% to $62.4 billion, net earnings fell 7.0% to $1.2 billion, and adjusted diluted EPS rose 3.4% to $3.08. Net cash from operating activities was $1.46 billion and free cash flow was $1.13 billion for the 39-week period. The most significant development is the proposed acquisition of Jetro Restaurant Depot (JRD), agreed on March 30, 2026, for approximately $29.1 billion, consisting of about $21.6 billion in cash and 91.5 million Sysco shares, with JRD's equity holders expected to own about 16% of Sysco's outstanding common stock afterward. The cash portion is to be financed through new senior unsecured notes, hybrid debt, cash on hand, and equity or equity-linked securities, supported by a commitment letter for a $22 billion bridge facility that has been reduced to $19 billion following a $3 billion delayed draw term loan. Sysco has suspended share repurchases for the remainder of fiscal 2026 in connection with the transaction, and a termination fee of $1.164 billion applies if the deal fails on regulatory grounds. The transaction is expected to close by the third quarter of fiscal 2027. Debt rose to $14.0 billion from $13.3 billion at fiscal year-end, mainly from a $1.25 billion senior notes issuance in February 2026. Total shareholders' equity was $2.3 billion at March 28, 2026, and the company declared a quarterly dividend of $0.55 per share for the fourth quarter of fiscal 2026.

    Apr 29, 2026
  2. 2026-Q2

    Sysco Quarterly Report for Q2 Ended Dec 27, 2025

    Sysco Corporation's 10-Q for the second quarter of fiscal 2026 (13 weeks ended December 27, 2025) shows sales of $20.76 billion, up 3.0% from $20.15 billion a year earlier, with gross profit up 3.9% to $3.79 billion. GAAP operating income fell 2.8% to $692 million and net earnings fell 4.2% to $389 million, primarily due to higher restructuring, transformation and acquisition-related costs, which the company treats as Certain Items. Excluding those items, adjusted operating income rose 3.1% to $807 million, adjusted net earnings rose 3.9% to $476 million, and adjusted diluted EPS rose 6.5% to $0.99. For the first 26 weeks, sales rose 3.1% to $41.91 billion and GAAP diluted EPS was $1.80, down 1.1%, while adjusted diluted EPS was $2.14, up 5.9%. Cash generation and balance sheet items were mixed. Net cash from operating activities for the 26 weeks was $611 million versus $498 million a year earlier, and free cash flow (a non-GAAP measure) was $413 million versus $331 million. Total debt carrying value rose to $13.6 billion from $13.3 billion, driven by new commercial paper issuances, partly offset by a senior note that matured in October 2025. The company repurchased no shares in the first 26 weeks, has about $1.5 billion remaining under its $5.0 billion authorization, and says it intends to resume repurchases in the second half of fiscal 2026, potentially totaling about $1.0 billion. Management cites a sequential decline of 230 basis points in foot traffic to restaurants versus the prior quarter, while U.S. Foodservice local case growth improved by 140 basis points. Inflation was 2.9% at the enterprise level, led by meat and seafood. The company also disclosed a rebranding of its UK Brakes brand to "Sysco GB," which will add roughly $100 million of amortization expense over two years, treated as a Certain Item, and noted a pending IRS-related tax credit dispute in which a previously recorded $131 million benefit could be reversed.

    Jan 28, 2026
  3. 2026-Q1

    Sysco Quarterly Report for Q1 Ended Sep 27, 2025

    Sysco Corporation's first quarter of fiscal 2026 (13 weeks ended September 27, 2025) showed sales growth alongside flat-to-lower profit. Sales rose 3.2% to $21.1 billion, driven by increases in U.S. Foodservice Operations, International Foodservice Operations and SYGMA. Gross profit increased 3.9% to $3.9 billion on product cost savings from strategic sourcing initiatives. Operating income declined 1.0% to $800 million, reflecting higher operating expenses and increased restructuring, transformational project and acquisition-related costs. Net earnings decreased 2.9% to $476 million, and diluted earnings per share were unchanged at $0.99. Excluding Certain Items, adjusted operating income rose 2.9% to $898 million, adjusted net earnings rose 2.0% to $551 million, and adjusted diluted earnings per share rose 5.5% to $1.15. Cash flow and liquidity were weaker than the prior year period. Net cash provided by operating activities was $86 million, and free cash flow, a non-GAAP measure, was negative $50 million compared with positive $8 million a year earlier, due to lower proceeds from equipment sales and higher capital expenditures. Cash and cash equivalents were $844 million at quarter end, and total debt carrying value was $13.4 billion. The company repurchased no shares during the quarter and had about $1.5 billion remaining under its $5.0 billion repurchase authorization. Dividends paid totaled $259 million, or $0.54 per share. Management expects to grow both sales and net earnings per share in fiscal 2026. The filing also notes a new $3.0 billion revolving credit facility entered into September 5, 2025, which expires in 2030, and an October 2025 acquisition of Fairfax Meadow, a U.K. specialty meat supplier, whose results are not expected to be material. Total shareholders' equity rose to $2.07 billion from $1.83 billion, and the company remains subject to an open IRS tax dispute concerning foreign tax credits, with a previously recorded benefit of $131 million at risk.

    Oct 29, 2025
  4. 2025-Q3

    Sysco Quarterly Report for Q3 Ended Mar 29, 2025

    Sysco Corporation's 10-Q for the third quarter of fiscal 2025 (quarter ended March 29, 2025) shows sales of $19.6 billion, up 1.1% from $19.38 billion a year earlier, while operating income fell 5.7% to $681 million and net earnings fell 5.6% to $401 million. Diluted earnings per share were $0.82, down from $0.85. Adjusted diluted EPS was unchanged at $0.96. For the first 39 weeks, sales rose 3.3% to $60.2 billion, but net earnings declined 3.4% to $1.3 billion and diluted EPS declined 0.8% to $2.64. Adjusted diluted EPS rose 2.1% to $2.98. U.S. Foodservice Operations case volume decreased 2.0% in the quarter, with local customer case volume down 3.5%, which management attributes to weaker restaurant foot traffic, weather, and natural disasters. Sales growth was driven mainly by inflation of 2.7% in the U.S. segment. Management now expects fiscal 2025 net sales growth of approximately 3%, versus a prior target of 4-5%, and EPS and adjusted EPS growth of approximately 1%, versus a prior target of 6-7%, citing lower-than-expected volume. Cash flow remained solid, with free cash flow of $954 million for the first 39 weeks. Total debt carrying value rose to $13.5 billion from $12.0 billion, reflecting $1.25 billion of senior notes issued in February 2025. Sysco repurchased $700 million of stock in the first 39 weeks and declared a quarterly dividend of $0.54 per share for the fourth quarter, up $0.03.

    Apr 30, 2025
  5. 2025-Q2

    Sysco Quarterly Report for Q2 Ended Dec 28, 2024

    Sysco Corporation's 10-Q for the second quarter of fiscal 2025 (13 weeks ended December 28, 2024) reports sales of $20.15 billion, up 4.5% from $19.29 billion a year earlier, driven primarily by U.S. Foodservice Operations volume growth and moderate inflation. Operating income rose 1.7% to $712 million, while net earnings declined 2.2% to $406 million, reflecting higher restructuring and transformation costs and acquisition-related costs. Diluted earnings per share were $0.82, unchanged year over year. Excluding Certain Items, adjusted diluted earnings per share increased 4.5% to $0.93, and adjusted operating income rose 5.1% to $783 million. For the first 26 weeks of fiscal 2025, sales increased 4.4% to $40.63 billion and net earnings decreased 2.5% to $896 million, with diluted EPS of $1.82. Free cash flow was $331 million, down from $527 million, as net cash provided by operating activities fell to $498 million from $856 million, largely due to unfavorable working capital comparisons. Cash and cash equivalents were $793 million at December 28, 2024, while total debt carrying value was $12.6 billion, up from $12.0 billion at June 29, 2024, driven by new commercial paper issuances and new leases. Current maturities of long-term debt rose to $1.22 billion. Management stated it expects to grow both sales and net earnings in fiscal 2025, cites improving restaurant foot traffic in the second half, and intends to repurchase up to $1.25 billion of stock in fiscal 2025. The company also disclosed the sale of its Mexico joint venture interest and the acquisition of Campbells Prime Meat, neither of which was material to results. The filing notes a pending IRS dispute over foreign tax credits, where a previously recorded $131 million benefit could be partially or fully reversed if Sysco is unsuccessful.

    Jan 29, 2025
  6. 2025-Q1

    Sysco Quarterly Report for Q1 Ended Sep 28, 2024

    Sysco Corporation's Form 10-Q for the first 13 weeks of fiscal 2025 (period ended September 28, 2024) reports sales of $20.48 billion, up 4.4% from $19.62 billion a year earlier, driven primarily by U.S. Foodservice Operations volume growth and higher inflation. Gross profit rose 2.9% to $3.75 billion, but operating income increased only 0.5% to $808 million and net earnings decreased 2.6% to $490 million, reflecting higher operating expenses and interest expense. Diluted earnings per share were $0.99, unchanged from the prior year. On an adjusted basis, which excludes Certain Items such as restructuring, transformation, and acquisition-related costs, operating income rose 2.2% to $873 million and adjusted diluted earnings per share increased 1.9% to $1.09. Cash generation was weak in the quarter, with net cash provided by operating activities of $53 million compared to $87 million a year earlier, and free cash flow of $8 million (a non-GAAP measure) versus negative $73 million in the prior-year period. Total debt carrying value rose to $12.4 billion from $12.0 billion at June 29, 2024, driven by new commercial paper issuances and new leases. Management noted that foot traffic to restaurants declined 3.6% in the quarter, though traffic improved as the quarter progressed, and expects to grow both sales and net earnings in fiscal 2025. The company repurchased 1,439,652 shares for $108 million during the quarter and intends to repurchase $1.0 billion of stock in fiscal 2025, with approximately $2.7 billion remaining under its authorization at quarter end. Quarterly dividends paid totaled $251 million, or $0.51 per share. The filing states that management does not believe pending legal proceedings will have a material adverse effect on the company.

    Oct 30, 2024
  7. 2024-Q3

    Sysco Quarterly Report for Q3 Ended Mar 30, 2024

    Sysco Corporation's 10-Q for the third quarter of fiscal 2024 (quarter ended March 30, 2024) shows sales of $19.38 billion, up 2.7%, or $503.8 million, from the prior-year quarter. Operating income rose 3.8% to $722.0 million, while net earnings fell 1.1% to $424.7 million, and diluted EPS was $0.85. On an adjusted basis, which excludes Certain Items such as restructuring, transformation costs and acquisition-related costs, adjusted diluted EPS rose 6.7% to $0.96 and adjusted EBITDA rose 8.5% to $976.6 million. For the first 39 weeks, sales were $58.29 billion, up 3.0%, and net earnings rose 29.6% to $1.34 billion, though that comparison benefited from a $315.4 million pension settlement charge in the prior-year period. The balance sheet grew notably over the period. Total assets were $24.71 billion versus $22.82 billion at fiscal year-end 2023, and long-term debt increased to $12.11 billion from $10.35 billion. The filing attributes the debt increase to new senior notes totaling $1.0 billion issued in November 2023 and to share repurchases. Cash paid for the Edward Don & Company acquisition, completed November 27, 2023, was $969.4 million, and total acquisition payments for the 39 weeks were $1.2 billion. Free cash flow for the 39 weeks was $863.7 million, compared with $979.6 million a year earlier, and operating cash flow was $1.37 billion. Management cites case volume growth of 2.9% in U.S. Foodservice for the quarter, with local case volume up 0.4%, and inflation of 1.9% at the enterprise level. Interest expense rose $22.9 million in the quarter, and management expects fiscal 2024 interest expense to rise by approximately $70 million. Sysco raised its fiscal 2024 share repurchase expectation to $1.25 billion from $750.0 million, and the quarterly dividend declared in April 2024 was $0.51 per share, up $0.01.

    May 1, 2024
  8. 2024-Q2

    Sysco Quarterly Report for Q2 Ended Dec 30, 2023

    Sysco Corporation's 10-Q for the second quarter of fiscal 2024 (quarter ended December 30, 2023) shows sales of $19.29 billion, up 3.7% from $18.59 billion a year earlier, with operating income of $700.0 million, up 9.2%. Net earnings rose 194.0% to $415.2 million and diluted earnings per share were $0.82, but the prior-year quarter included a $315.4 million pension settlement charge. On an adjusted basis (excluding Certain Items), net earnings increased 10.1% to $449.0 million and adjusted diluted earnings per share rose 11.3% to $0.89. For the first 26 weeks, sales grew 3.1% to $38.9 billion, and diluted earnings per share were $1.81, up 52.1%, or $1.96 on an adjusted basis, up 11.4%. Case volume in U.S. Foodservice rose 3.4% in the quarter, while total enterprise inflation was 1.1%. Management expects slightly positive industry volume growth and slightly positive enterprise inflation for fiscal 2024. Gross margin improved 21 basis points in the quarter, and operating expenses rose 3.9%, driven by higher volumes. Balance sheet leverage increased during the period. Long-term debt rose to $12.03 billion from $10.35 billion at fiscal year-end, following the issuance of $1.0 billion in senior notes in November 2023 and $1.17 billion of acquisition payments, primarily for Edward Don & Company, which was acquired for $969.4 million in cash. Operating cash flow for the first 26 weeks was $855.9 million and free cash flow was $527.4 million. Management raised its fiscal 2024 share repurchase expectation to $1.25 billion from $750.0 million, and expects interest expense to increase by approximately $70 million for fiscal 2024.

    Jan 31, 2024
  9. 2024-Q1

    Sysco Quarterly Report for Q1 Ended Sep 30, 2023

    Sysco Corporation reported improved first-quarter fiscal 2024 results for the 13 weeks ended September 30, 2023. Sales rose 2.6%, or $493.6 million, to $19.6 billion. Operating income increased 9.1%, or $66.8 million, to $803.6 million, and adjusted operating income, which excludes Certain Items, increased 10.6% to $854.3 million. Net earnings increased 8.1% to $503.4 million, and diluted earnings per share increased 8.8% to $0.99, or 10.3% to $1.07 on an adjusted basis. Management attributed the gains to volume growth, effective margin management and productivity improvements. U.S. Foodservice case volume increased 1.6%, and gross margin rose 35 basis points. Cash flow weakened. Net cash provided by operating activities was $87.2 million, compared with $158.6 million a year earlier, and free cash flow was negative at $(73.2) million, compared with $13.8 million. Management cited higher capital expenditures, timing and seasonality, and investments in the Recipe for Growth strategy. Sysco paid $219.3 million for the acquisition of BIX Produce Company and reported total debt carrying value of $10.9 billion. Shareholder returns included $100.0 million of share repurchases and $252.9 million of dividends paid, and management intends to repurchase $750.0 million of stock in fiscal 2024. The filing also notes a pending IRS Notice of Deficiency related to foreign tax credits. Sysco has previously recorded a $131.0 million benefit tied to its TCJA interpretation and could be required to reverse all or part of it if its challenge is unsuccessful. Management expects fiscal 2024 interest expense to rise by approximately $50 million, driven by higher debt tied to the planned acquisition of Edward Don & Company.

    Nov 1, 2023
  10. 2023-Q3

    Sysco Quarterly Report for Q3 Ended Apr 1, 2023

    Sysco Corporation's third-quarter fiscal 2023 Form 10-Q (quarter ended April 1, 2023) shows sales of $18.88 billion, up 11.7% from $16.90 billion a year earlier, driven by volume growth and inflation management. Operating income rose 40.0% to $694.2 million and net earnings rose 41.6% to $429.6 million, with diluted earnings per share of $0.84 versus $0.59. For the first 39 weeks, net earnings were $1.04 billion, up 22.1%, but this includes a non-cash pension settlement charge of $315.4 million recorded in Other expense (income), net, tied to a transfer of $695.0 million of pension obligations to an insurer. Management reports adjusted diluted earnings per share of $0.90 for the quarter, up 26.8%. Cash flow strengthened, with net cash provided by operating activities of $1.43 billion for the first 39 weeks versus $745.9 million a year earlier, and free cash flow (non-GAAP) of $979.6 million. Total debt carrying value was $11.0 billion, against $757.9 million in cash and cash equivalents. The company repurchased 4.6 million shares for $377.8 million year to date, intends to repurchase $500 million in fiscal 2023, and declared a fourth-quarter dividend of $0.50 per share, up $0.01. The filing also discloses a cybersecurity event, discovered March 5, 2023, in which a threat actor extracted certain company data, including customer, employee and personal data, without disrupting operations; the investigation is ongoing. Sysco also disclosed a Notice of Deficiency from the IRS related to foreign tax credits, which it is contesting in U.S. Tax Court, and noted that it may have to reverse part of a $131.0 million tax benefit previously recorded if unsuccessful.

    May 2, 2023
  11. 2023-Q2

    Sysco Quarterly Report for Q2 Ended Dec 31, 2022

    Sysco Corporation's 10-Q for the second quarter of fiscal 2023 (quarter ended December 31, 2022) reports sales of $18.59 billion, up 13.9% from $16.32 billion a year earlier, with case volume in U.S. Foodservice Operations up 5.2% and inflation at 8.3% for the quarter. Operating income rose 44.0% to $640.6 million, but net earnings fell 15.7% to $141.2 million, largely because of a one-time, non-cash pension settlement charge of $315.4 million recorded in other expense. Excluding Certain Items, adjusted diluted earnings per share increased 40.4% to $0.80, and adjusted operating income rose 37.6% to $682.1 million. For the first 26 weeks of fiscal 2023, sales increased 15.1% to $37.72 billion, net earnings rose 11.2% to $606.8 million, and diluted earnings per share were $1.19, up 12.3%. Operating cash flow was $503.5 million and free cash flow (non-GAAP) was $219.3 million. Cash and cash equivalents were $500.3 million at December 31, 2022, and total debt carrying value was $11.1 billion. The company repurchased 3.1 million shares for $267.7 million and paid $498.3 million in dividends during the period. Management stated it is committed to growing 1.5 times the market by the end of fiscal 2024 under its Recipe for Growth strategy, and the company completed a pension buyout transferring $695.0 million of defined benefit obligations to an insurer. The filing discloses no material legal proceedings and reports effective disclosure controls as of December 31, 2022.

    Feb 1, 2023
  12. 2023-Q2

    Sysco Quarterly Report for Q2 Ended Oct 1, 2022

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2023 (13 weeks ended October 1, 2022) reports sales of $19.13 billion, up 16.2% from $16.46 billion a year earlier, and net earnings of $465.6 million, up 23.2%. Diluted earnings per share were $0.91 versus $0.73. Management attributes the growth primarily to higher volumes, inflation and market share gains, and says operating income rose 16.3% to $734.3 million. Adjusted diluted earnings per share, excluding Certain Items, were $0.97, up 16.9%. Cash generation was weaker in the quarter. Net cash provided by operating activities was $158.6 million versus $110.8 million, and free cash flow was $13.8 million versus $31.4 million, as working capital, capital expenditures and Recipe for Growth investments absorbed cash. Sysco repurchased 3.1 million shares for $267.7 million, paid $249.3 million in dividends, and had $437.7 million of cash and cash equivalents at quarter end. Total shareholders' equity fell to $1.12 billion from $1.38 billion, largely reflecting a $232.2 million foreign currency translation loss and share repurchases. A subsequent event is a commitment to transfer roughly $700 million of pension obligations to an insurer, which the company expects to produce a one-time, non-cash pre-tax pension settlement charge of approximately $250 to $300 million in the second quarter of fiscal 2023.

    Nov 2, 2022
  13. 2022-Q3

    Sysco Quarterly Report for Q3 Ended Apr 2, 2022

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2022 (quarter ended April 2, 2022) reports sales of $16.90 billion, up 42.9% from $11.82 billion in the prior-year quarter, with operating income of $495.7 million, up 110.1%, and net earnings of $303.3 million, up 241.1%. Diluted earnings per share were $0.59, compared with $0.17 a year earlier. For the first 39 weeks, sales were $49.68 billion (up 41.3%), net earnings were $848.8 million (up 127.5%), and diluted EPS was $1.65. The company attributes the growth mainly to volume recovery from COVID-19, with U.S. Broadline case volume up 18.8% in the quarter, alongside inflation of 15.8% in U.S. Broadline product costs. Gross margin declined, which the filing ties primarily to inflationary pressure. Profitability was also affected by business recovery costs, Recipe for Growth investments, and a $115.6 million loss on extinguishment of debt from refinancing $1.25 billion of senior notes in December 2021. Adjusted diluted EPS for the third quarter was $0.71, compared with $0.22 a year earlier, according to the company's non-GAAP reconciliation. The company completed acquisitions costing $1.3 billion in the first 39 weeks, including Greco and Sons, and it repurchased $415.8 million of stock. Cash from operations fell to $745.9 million from $1.48 billion, largely due to working capital investment, and free cash flow was $434.3 million. Balance sheet items include cash of $876.1 million, total debt carrying value of $11.1 billion, and shareholders' equity of $1.32 billion. The company replaced its $2.0 billion revolving credit facility with a new $3.0 billion facility, expiring April 29, 2027, with a 3.0 to 1.0 EBITDA-to-interest covenant. The company also said it intends to maintain its quarterly dividend at $0.49 per share, following a $0.02 increase declared in April 2022.

    May 11, 2022
  14. 2022-Q3

    Sysco Quarterly Report for Q3 Ended Jan 1, 2022

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2022 (13 weeks ended January 1, 2022) shows sales of $16.32 billion, up 41.2% from $11.56 billion a year earlier, and operating income of $444.9 million, up 109.8%. Net earnings were $167.4 million, or $0.33 per diluted share, compared with $67.3 million, or $0.13, in the prior-year quarter. Management attributes the growth primarily to a 22.5% increase in U.S. Broadline case volume as the business recovered from COVID-19, but says gross margin fell 44 basis points to 17.72% because of product cost inflation, with U.S. Broadline inflation at 14.6%. Operating expenses rose 29.7%, driven by variable costs on higher volume, labor-related costs, $73.0 million of snap-back operating investments and $43.5 million of Recipe for Growth investments. Management said the Omicron variant began slowing sales in December and expects its top-line impact to continue into the third quarter. For the first 26 weeks, sales were $32.78 billion (up 40.5%) and net earnings were $545.5 million, including a $115.6 million loss on extinguishment of debt tied to the redemption of $1.25 billion of senior notes funded by new notes issued in December 2021. Cash flow from operations was $377.0 million, down from $936.7 million, reflecting working capital investment, with free cash flow of $201.1 million (a non-GAAP measure). Sysco spent $769.7 million on acquisitions in the period, including Greco and Sons, and repurchased $415.8 million of stock under a $5.0 billion authorization, leaving about $4.6 billion remaining. Cash and cash equivalents were $1.37 billion at period end, and total debt carrying value was $11.1 billion. Management expects volumes to return to fiscal 2019 levels after the Omicron peak and expects fourth-quarter earnings to be weighted more heavily than the third quarter, assuming no further COVID variant disruptions. It also said it is on track to exceed its goal of growing at 1.2 times the industry rate in fiscal 2022.

    Feb 9, 2022
  15. 2022-Q2

    Sysco Quarterly Report for Q2 Ended Oct 2, 2021

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2022, the 13 weeks ended October 2, 2021, shows a sharp rebound in sales and earnings from the prior-year quarter. Sales rose 39.7% to $16.46 billion, operating income rose 50.6% to $631.7 million, and net earnings rose 74.3% to $378.0 million, or $0.73 per diluted share. Management attributed the growth mainly to a 28.1% increase in U.S. Broadline case volume and to pass-through of inflation, which it put at 12.8% combined for the U.S. and Canada. Gross margin fell to 18.06% from 18.85%, and operating expenses rose 30.0%, including $57.0 million of one-time and short-term transitory business recovery expenses and more than $24.4 million of Recipe for Growth investments. Cash flow weakened considerably. Operating cash flow was $110.8 million versus $930.9 million a year earlier, as working capital absorbed $886.1 million, and free cash flow was $31.4 million. The company spent $714.0 million on acquisitions, most notably Greco and Sons, and paid $240.6 million in dividends. Cash and equivalents ended at $2.07 billion, and total debt carrying value was $11.1 billion. Management made no share repurchases in the quarter but expects to begin repurchasing up to $500 million under its $5.0 billion program in the second quarter of fiscal 2022. Adjusted diluted earnings per share, excluding Certain Items, were $0.83, up from $0.34. The company also amended its revolving credit facility to remove the covenant that restricted dividend increases and share repurchases, and it reported that its disclosure controls were effective. Management reiterated its goal of growing at 1.2 times the industry in fiscal 2022.

    Nov 9, 2021
  16. 2021-Q3

    Sysco Quarterly Report for Q3 Ended Mar 27, 2021

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2021 (quarter ended March 27, 2021) reports sales of $11.82 billion, down 13.7% from $13.70 billion a year earlier, as COVID-19 restrictions reduced customer volumes. Operating income rose to $235.9 million from $60.3 million, driven largely by a $33.5 million benefit from reducing bad debt reserves on pre-pandemic receivables and lower operating expenses. Net earnings were $88.9 million, or $0.17 per diluted share, compared with a net loss of $3.3 million, or $(0.01) per share, in the prior-year quarter. Adjusted diluted earnings per share, excluding Certain Items, were $0.22, down 51.1% from $0.45. For the first 39 weeks of fiscal 2021, sales fell 20.1% to $35.16 billion and net earnings fell 55.3% to $373.1 million, or $0.73 per diluted share. The U.S. Foodservice Operations segment remained the largest contributor, with operating income of $1.62 billion for the 39 weeks, while the International Foodservice Operations segment posted an operating loss of $202.0 million, reflecting lockdowns in Europe, Canada and Latin America. Free cash flow was $1.25 billion for the 39 weeks, versus $487.8 million a year earlier, supported by working capital changes and lower capital expenditures. Sysco reduced debt during the period, including repaying $750 million of 2.60% senior notes and paying down $700 million on its revolving credit facility in March 2021. Total debt was $12.7 billion at March 27, 2021, down from $14.4 billion at June 27, 2020. Share repurchases remain suspended under an amendment to the revolving credit facility, and the company stated it had about $7.2 billion in cash and available liquidity as of April 24, 2021.

    May 5, 2021
  17. 2021-Q2

    Sysco Quarterly Report for Q2 Ended Dec 26, 2020

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2021 (13 weeks ended December 26, 2020) shows a sharp decline in sales and earnings as the COVID-19 pandemic reduced demand from restaurants, hospitality and education customers. Sales were $11.56 billion, down 23.1% from $15.03 billion in the prior-year quarter, and operating income fell 61.6% to $212.1 million. Net earnings were $67.3 million, or $0.13 per diluted share, compared with $383.4 million and $0.74 a year earlier. Adjusted diluted earnings per share, excluding Certain Items, were $0.17. For the first 26 weeks, sales were $23.34 billion and net earnings were $284.2 million, or $0.56 per diluted share. Cash generation was stronger than earnings. Net cash provided by operating activities for the first 26 weeks was $936.7 million, up from $754.5 million, helped by working capital changes and a $94.2 million net credit to the provision for losses on receivables. Free cash flow was $788.2 million, compared with $371.4 million. Management states that the company had approximately $7.8 billion in cash and available liquidity as of January 23, 2021. Share repurchases were suspended, and the revolving credit facility amendment requires suspending share repurchases and dividend increases through fiscal 2021. Dividends paid were $458.7 million in the first 26 weeks. Management expects the third quarter to be more challenging than originally anticipated. It plans to hire thousands of employees ahead of expected volume recovery, and it reports that European lockdowns will continue for a significant portion of the second half of fiscal 2021. Total debt was $13.8 billion at December 26, 2020, against a fair value of about $16.5 billion, and about 83% of it was at fixed rates.

    Feb 3, 2021
  18. 2021-Q1

    Sysco Quarterly Report for Q1 Ended Sep 26, 2020

    Sysco Corporation's first quarter of fiscal 2021 (13 weeks ended September 26, 2020) reflects the sharp impact of the COVID-19 pandemic on food-away-from-home demand. Sales fell 23.0% to $11.78 billion from $15.30 billion, and operating income declined 37.2% to $419.6 million. Net earnings were $216.9 million, or $0.42 per diluted share, down 51.7% from $0.87. On an adjusted basis, excluding Certain Items, diluted EPS was $0.34, a 65.3% decrease from $0.98. The company cited a $98.6 million benefit from reduced bad debt reserves on pre-pandemic receivables, which supported operating expenses and partly offset weaker volumes. Management said U.S. Broadline case volume declined 25.8%, and that sales volume in the second quarter was running approximately 20% below the prior-year period. Cash generation was a bright spot. Net cash provided by operating activities was $930.9 million, compared with $171.6 million a year earlier, and free cash flow was $862.4 million. The filing attributes much of this to favorable working capital changes, including a $577.0 million increase in accounts payable driven by supplier term extensions. Sysco redeemed $750 million of 2.60% senior notes in September 2020, and total debt was $13.7 billion against cash and cash equivalents of $6.0 billion. Management stated that about $7.5 billion of cash and available liquidity existed as of November 3, 2020. Share repurchases are suspended under the amended revolving credit facility, and management does not expect to grow the dividend in fiscal 2021. Management expects cash flow from operations and free cash flow to decline over the next two quarters because of inventory build and ongoing investment, before ending the fiscal year roughly flat to slightly positive compared with the prior year. The company's transformation program, including the regionalization of U.S. Broadline (completed in September 2020), and targeted cost-out of about $350 million in structural costs for fiscal 2021 are its main levers for recovery. The filing also notes a $77.8 million net benefit to the provision for losses on receivables, and it flags continued uncertainty over customer collectability and the pace of the recovery.

    Nov 4, 2020
  19. 2020-Q3

    Sysco Quarterly Report for Q3 Ended Mar 28, 2020

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2020 (quarter ended March 28, 2020) shows a sharp earnings decline driven by the COVID-19 pandemic. Sales for the 13 weeks were $13.70 billion, down 6.5% from $14.66 billion a year earlier, and the company recorded a net loss of $3.3 million (loss of $0.01 per diluted share), compared with net earnings of $440.1 million in the prior-year quarter. Operating income fell to $60.3 million from $529.6 million, reflecting a $175.4 million provision for losses on receivables, of which management estimates about $153.5 million was COVID-19 related, and $68.7 million of goodwill impairment charges. For the first 39 weeks, sales were $44.03 billion (down 1.4%) and diluted earnings per share were $1.62, versus $2.17 a year earlier. Management states that business declined significantly in the last weeks of the quarter as shelter-in-place orders took effect, with total sales down approximately 60% during the last two weeks of the quarter. The company states it expects COVID-19 to have a material, adverse impact on future revenue growth and profitability, and says it expects an operating loss in the fourth quarter of fiscal 2020. It has withdrawn its guidance for the remainder of its three-year plan, suspended share repurchases in March 2020, and cut capital spending to business-critical projects. Expense reductions of more than $500 million in the fourth quarter and a staffing reduction of approximately 33% are cited as mitigating actions. On the balance sheet, cash and cash equivalents rose to $2.24 billion from $513.5 million at June 29, 2019, and total debt carrying value was $10.9 billion. Sysco issued $1.0 billion of senior notes in February 2020, withdrew $1.7 billion under its revolving credit facility, and after quarter end issued $4.0 billion of additional senior notes on April 2, 2020. Management says it had approximately $6.0 billion in cash and available liquidity as of May 5, 2020.

    May 6, 2020
  20. 2020-Q2

    Sysco Quarterly Report for Q2 Ended Dec 28, 2019

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2020 (quarter ended December 28, 2019) reports sales of $15.03 billion, up 1.8%, or $259.3 million, from the prior-year quarter. Operating income rose 22.3% to $552.5 million and net earnings rose 43.4% to $383.4 million, with diluted earnings per share of $0.74 versus $0.51. Adjusted diluted earnings per share, excluding Certain Items, were $0.85, up 13.2%. For the first 26 weeks, sales were $30.33 billion, net earnings were $837.2 million, and diluted EPS was $1.62. Management cited inflation of 2.6% in the U.S. Broadline business, primarily in dairy and beef, which it said it was unable to pass efficiently to customers, along with lower fuel surcharges and a decline in produce markets. Gross margin in U.S. Foodservice Operations fell to 19.68% in the quarter from 19.85%. International operations struggled in France, where integration challenges continued, and the U.K. faced Brexit uncertainty. Operating cash flow for the first 26 weeks fell to $754.5 million from $917.8 million, and free cash flow fell to $371.4 million from $700.9 million, reflecting higher capital expenditures and working capital outflows. Management lowered its fiscal 2018 to fiscal 2020 adjusted operating income growth target to approximately $500 million to $525 million, from $600 million, and reduced the three-year adjusted operating income growth guidance from about 8% to 7%, citing inflation, France integration challenges, higher corporate expenses and planned investments. Total debt was $8.9 billion at December 28, 2019, and the company repurchased 8.1 million shares for $630.4 million in the first 26 weeks.

    Feb 5, 2020
  21. 2020-Q1

    Sysco Quarterly Report for Q1 Ended Sep 28, 2019

    Sysco Corporation reported results for the 13-week first quarter of fiscal 2020 ended September 28, 2019. Sales rose to $15.30 billion from $15.22 billion, and operating income increased 6.4% to $668.3 million. Net earnings increased 5.3% to $453.8 million, and diluted earnings per share were $0.87, up 7.4% from $0.81. The filing also presents adjusted results excluding Certain Items: adjusted operating income of $741.9 million, adjusted net earnings of $510.3 million, and adjusted diluted earnings per share of $0.98, an 8.6% increase. Cash generation weakened sharply in the quarter. Net cash provided by operating activities was $171.6 million, down from $271.1 million, and capital expenditures rose to $175.7 million. As a result, free cash flow was $0.8 million versus $170.7 million a year earlier. Management attributed the decline mainly to working capital changes and higher capital spending. Commercial paper borrowings increased by $533.4 million, and the company repurchased 4.6 million shares for $349.3 million. Total debt was $8.7 billion, and the company adopted the new lease standard, recognizing operating lease right-of-use assets of $647.2 million. Segment performance was mixed. U.S. Foodservice Operations grew sales 2.5% and operating income 5.6%, while International Foodservice Operations saw sales decline 0.3% and operating income fall 17.9%, reflecting France integration challenges and restructuring charges. The company cited inflation of 2.9% within its U.S. Broadline operations and a 0.6% negative impact from a stronger U.S. dollar on total sales growth. Management reiterated its three-year plan targets, including $600 million of adjusted operating income growth compared with fiscal 2017 and 16% adjusted return on invested capital.

    Nov 5, 2019
  22. 2019-Q3

    Sysco Quarterly Report for Q3 Ended Mar 30, 2019

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2019 (quarter ended March 30, 2019) reports sales of $14.66 billion, up 2.2% or $308.6 million from the prior-year quarter, and operating income of $529.6 million, up 9.8%. Net earnings rose 33.3% to $440.1 million, and diluted earnings per share were $0.85 versus $0.63. Excluding Certain Items, adjusted diluted EPS was $0.79, up 17.4%. For the first 39 weeks, sales were $44.64 billion (up 2.8%), GAAP operating income was $1.61 billion (down 1.3%), and net earnings were $1.14 billion (up 16.0%). Adjusted diluted EPS for the 39-week period was $2.45, up 11.5%. Cash flow from operations for the first 39 weeks was $1.37 billion, compared with $1.12 billion a year earlier, and free cash flow was $998.7 million versus $765.2 million. Management attributes the improvement partly to the absence of the prior-year $330 million pension contribution. Total debt was $8.7 billion at March 30, 2019, about 65% at fixed rates, and the company repaid $250 million of 5.375% senior notes in March 2019. Share repurchases totaled $866.7 million for 12.8 million shares in the first 39 weeks, and quarterly dividends of $0.39 per share were declared. The filing reiterates three-year targets through fiscal 2020, including $650 million to $700 million of adjusted operating income growth versus fiscal 2017, and adjusted diluted EPS of $3.85 to $3.95 in fiscal 2020. It notes that the planned sale of Iowa Premium LLC would reduce planned operating income by about $25 million. Risk factors highlighted include Brexit uncertainty affecting the U.K. and EU operations and French sales disruption from the "yellow vest" protests.

    May 7, 2019
  23. 2019-Q2

    Sysco Quarterly Report for Q2 Ended Dec 29, 2018

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2019 (quarter ended December 29, 2018) shows sales of $14.77 billion, up 2.5% from $14.41 billion a year earlier, while operating income fell 14.5% to $451.9 million, reflecting $134.4 million of restructuring and transformational project costs and $17.0 million of acquisition-related costs. Net earnings decreased 5.9% to $267.4 million and diluted EPS declined 5.6% to $0.51, primarily due to the change in U.S. tax rates, which was retroactively effective in the prior-year second quarter. Adjusted operating income rose 4.8% to $603.3 million and adjusted diluted EPS fell 4.0% to $0.75, per the company's non-GAAP reconciliation. For the first 26 weeks of fiscal 2019, sales rose 3.2% to $30.0 billion, net earnings increased 7.2% to $698.4 million, and diluted EPS rose 8.1% to $1.33. Operating cash flow was $917.8 million and free cash flow (a non-GAAP measure) was $700.9 million, while the company paid $379.2 million in dividends and repurchased $739.2 million of stock. Total debt was $8.8 billion, and management reiterated its three-year plan targets through fiscal 2020, including $650 million to $700 million of adjusted operating income growth versus fiscal 2017. Management highlighted investments in the International segment, supply chain cost pressures from a tight U.S. and Canadian labor market, and transformation initiatives expected to benefit the second half of fiscal 2019. The filing also notes Brexit uncertainty affecting U.K. sales and the French "yellow vest" protests affecting holiday-period sales in France, and it reports that management did not believe pending legal proceedings would have a material adverse effect.

    Feb 5, 2019
  24. 2019-Q1

    Sysco Quarterly Report for Q1 Ended Sep 29, 2018

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2019 (13 weeks ended September 29, 2018) reports sales of $15.22 billion, up 3.9% from $14.65 billion a year earlier, and operating income of $628.1 million, up 1.4% from $619.4 million. Net earnings rose 17.2% to $431.0 million, and diluted earnings per share were $0.81 versus $0.69. Management attributes the improvement primarily to operating income growth and a lower effective tax rate of 19.88% (versus 32.72%), which was helped by Tax Act rate reductions and excess tax benefits on equity compensation. Adjusted diluted EPS, excluding Certain Items such as restructuring, transformation and Brakes Acquisition costs, was $0.91, up 22.4%. Cash generation improved markedly, with operating cash flow of $271.1 million versus $82.8 million and free cash flow of $170.7 million versus negative $51.8 million. Total debt stood at $8.7 billion, with about 75% at fixed rates, and the company issued CDN $500.0 million ($384.6 million) of senior notes in Canada on September 25, 2018. Cash and cash equivalents were $790.3 million, and the company repurchased 2.8 million shares for $204.6 million during the quarter. Management expects modest operating income growth in the second fiscal quarter and improved performance in the second half of fiscal 2019, while noting softer volume growth and moderating gross profit dollar growth from acquisition annualization. Management highlighted operating expense pressure in U.S. supply chain costs, tight labor markets and higher fuel costs, along with weaker results in International Foodservice Operations, where operating income fell 13.1% to $66.8 million. The company reiterated its three-year plan targets through fiscal 2020, including $650 million to $700 million of adjusted operating income growth versus fiscal 2017 and adjusted diluted EPS of $3.85 to $3.95 in fiscal 2020.

    Nov 6, 2018
  25. 2018-Q3

    Sysco Quarterly Report for Q3 Ended Mar 31, 2018

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2018 (quarter ended March 31, 2018) shows net sales of $14.35 billion for the 13-week period, up 6.1% from $13.52 billion a year earlier, and operating income of $485.9 million, up 11.5%. Net earnings rose 38.5% to $330.1 million, and diluted earnings per share were $0.63 versus $0.44. For the 39-week period, sales were $43.41 billion (up 6.0%), net earnings were $981.8 million (up 17.3%), and diluted EPS was $1.85. Adjusted diluted EPS, which excludes Certain Items such as restructuring, acquisition-related costs, debt extinguishment losses and U.S. tax reform effects, was $0.67 for the quarter (up 31.4%) and $2.19 for the 39 weeks (up 24.4%). Management attributed the quarter's results to operating income improvement and a lower effective tax rate, while noting adverse weather, investment spending and operational challenges. The balance sheet at March 31, 2018 showed total assets of $18.63 billion, total long-term debt of $8.84 billion, and shareholders' equity of $2.35 billion. During the period, Sysco issued $1.0 billion of senior notes, redeemed $230.5 million of debentures and notes through a tender offer (recording a $53.1 million extinguishment loss), and repurchased 16.9 million shares for $911.0 million. Cash flow from operations was $1.12 billion for the 39 weeks, and free cash flow was $768.5 million, a non-GAAP measure. The filing notes that the Tax Cuts and Jobs Act produced a provisional transition tax of $115.0 million, payable over eight years, and that Sysco's fiscal 2018 blended tax rate is 28%. The filing also describes a new three-year plan through fiscal 2020, with targets including $650 million to $700 million of adjusted operating income growth versus fiscal 2017 and adjusted diluted EPS of $3.40 to $3.50 in fiscal 2020. Management indicated that its operating cash flow and free cash flow for fiscal 2018 are expected to be generally consistent with fiscal 2017 results.

    May 8, 2018
  26. 2018-Q2

    Sysco Quarterly Report for Q2 Ended Dec 30, 2017

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2018 (quarter ended December 30, 2017) reports sales of $14.41 billion, up 7.1%, and operating income of $532.3 million, up 8.1%. Net earnings rose 3.3% to $284.1 million, and diluted earnings per share were $0.54, up 8.0%. Management attributes the results to product cost inflation and U.S. Broadline case volume growth, partly offset by gross margin pressure, inbound freight costs, and higher operating expenses in the U.K. and Europe. The company reports adjusted diluted earnings per share of $0.78 excluding Certain Items, and $0.66 after further excluding a one-time 12 cent benefit from the reduced U.S. statutory tax rate under the Tax Cuts and Jobs Act. For the first 26 weeks of fiscal 2018, sales were $29.06 billion, up 6.0%, and net earnings were $651.8 million, up 8.8%. Operating cash flow was $933.2 million, compared with $639.4 million a year earlier, primarily due to lower tax payments tied to relief for Hurricane Harvey. Free cash flow was $678.5 million, and the company repurchased 14.2 million shares for $750.5 million during the period. Total debt was $8.8 billion, and the company estimates $200 million to $300 million in annual savings from lower taxes under the Tax Act. The Tax Act produced a net $64.7 million one-time benefit from applying a blended 28% rate for fiscal 2018, offset by a $115.0 million provisional transition tax expense, with the accounting still incomplete. Management reaffirmed confidence in its fiscal 2018 targets and outlined a new three-year plan through fiscal 2020, including adjusted operating income growth of $650 million to $700 million compared with fiscal 2017 and adjusted diluted EPS of $3.40 to $3.50 in fiscal 2020.

    Feb 6, 2018
  27. 2018-Q1

    Sysco Quarterly Report for Q1 Ended Sep 30, 2017

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2018 (13 weeks ended September 30, 2017) shows sales rising 4.9% to $14.65 billion and operating income rising 9.9% to $623.1 million, with net earnings up 13.5% to $367.6 million and diluted earnings per share of $0.69 versus $0.58 a year earlier. Management attributed the results mainly to U.S. Foodservice Operations, which grew sales 3.9% and operating income 4.8%, while International Foodservice Operations weakened, with operating income down 3.5% amid macroeconomic pressure in the U.K. The filing notes that hurricanes had a negative impact on operating income of approximately $10 million and on earnings per share of approximately one cent. Adjusted diluted earnings per share, which excludes Certain Items, rose 10.4% to $0.74. Cash flow was weaker. Net cash provided by operating activities fell to $82.8 million from $253.9 million, and free cash flow was negative $51.8 million, driven mainly by higher receivables and inventory and lower accounts payable. Sysco repurchased 10.5 million shares for $550.1 million and paid $174.9 million in dividends. Total debt was $9.0 billion at September 30, 2017, and commercial paper outstanding was $864.8 million. Shareholders' equity declined to $2.24 billion from $2.38 billion at July 1, 2017, largely reflecting share repurchases. Management also reported that the Brakes Group acquisition, completed in fiscal 2017 for $2.9 billion in cash, continues to contribute to results, and that it made two acquisitions in the second quarter of fiscal 2018, HFM and the remaining interest in its Costa Rica joint venture.

    Nov 9, 2017
  28. 2017-Q3

    Sysco Quarterly Report for Q3 Ended Apr 1, 2017

    Sysco Corporation's Form 10-Q for the quarter ended April 1, 2017 reports third-quarter sales of $13.52 billion, up 12.7%, and net earnings of $238.3 million, up 9.7%. Diluted earnings per share were $0.44, up 15.8%. For the first 39 weeks, sales were $40.95 billion, up 11.5%, net earnings were $837.3 million, up 14.1%, and diluted EPS was $1.52, up 20.6%. Management attributes much of the sales increase to the Brakes Group acquisition, which closed on July 5, 2016 for $2.9 billion in cash net of cash acquired. Excluding Brakes, the company reported adjusted sales growth of 2.3% in the third quarter, with U.S. Broadline case volume up 1.8%, and adjusted operating income excluding Brakes up 13.6%. The balance sheet shows substantial changes from July 2, 2016. Cash and cash equivalents fell to $855.1 million from $3.92 billion, long-term debt rose to $8.03 billion, and total shareholders' equity declined to $2.33 billion from $3.48 billion, reflecting $1.53 billion of treasury stock purchases in the 39 weeks. Net cash from operating activities was $1.02 billion and free cash flow, a non-GAAP measure, was $630.1 million. The company repurchased 29.1 million shares for $1.5 billion in the 39 weeks, leaving approximately $1.4 billion of authorization remaining. Management reported ongoing product cost deflation of 0.3% in the third quarter and 1.7% for 39 weeks, and anticipates modest inflation in the fourth quarter. The filing also discloses a $35.6 million withdrawal liability recorded in May 2017 after a subsidiary voluntarily withdrew from a multiemployer pension plan, which management classifies as a Certain Item. Management raised its adjusted operating income growth target to approximately $600 to $650 million by the end of fiscal 2018.

    May 9, 2017
  29. 2017-Q2

    Sysco Quarterly Report for Q2 Ended Dec 31, 2016

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2017 (quarter ended December 31, 2016) shows sales of $13.46 billion for the 13 weeks, up 10.7% from $12.15 billion a year earlier, driven primarily by the Brakes Group acquisition. Net earnings were $275.2 million, up 1.0%, and diluted earnings per share were $0.50, up 4.2%. Excluding Brakes, adjusted sales declined 0.2% and adjusted net earnings rose 2.5%, to $282.3 million, per the filing's non-GAAP reconciliation. For the first 26 weeks, sales were $27.43 billion (up 11.0%), net earnings were $599.1 million (up 15.9%), and diluted EPS was $1.08 (up 22.7%). Adjusted diluted EPS for the 26 weeks was $1.25, up 25.0%. The Brakes Group, a European foodservice business acquired July 5, 2016, is the central driver of the period. Sysco paid $2.9 billion net of cash acquired, including $2.28 billion to repay Brakes' debt, and recorded $1.7 billion of goodwill. Total debt rose to $8.3 billion, and cash fell to $847.3 million from $3.92 billion at fiscal year-end 2016. Management says deflation of 1.9% for the quarter and 2.2% for the first half, mainly in meat, dairy and produce, continues to pressure sales, while U.S. Broadline case volume was roughly flat in the quarter. Management also raised its adjusted operating income growth target to approximately $600 to $650 million by the end of fiscal 2018. The filing reports effective disclosure controls and identifies the Brakes Group as a material change to internal control over financial reporting, which management excludes from its assessment for the fiscal year ending July 1, 2017. Ernst & Young reviewed the interim financial statements.

    Feb 7, 2017
  30. 2017-Q2

    Sysco Quarterly Report for Q2 Ended Oct 1, 2016

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2017 (13 weeks ended October 1, 2016) shows sales of $13.97 billion, up 11.2% from $12.56 billion a year earlier, driven mainly by the Brakes Group acquisition, which closed July 5, 2016. Operating income rose 14.9% to $566.8 million and net earnings rose 32.5% to $323.9 million, or $0.58 per diluted share versus $0.41 a year earlier. The filing states that adjusted diluted EPS was $0.67 including Certain Items and $0.63 excluding Brakes, and that excluding Brakes, adjusted sales rose 1.0% and adjusted operating income rose 15.3%. Sales growth in the U.S. Foodservice segment was only 0.8%, and the company cited deflation of 2.2% and softening restaurant demand. The balance sheet changed substantially. Goodwill and intangibles rose to $3.82 billion and $1.20 billion, respectively, and total assets reached $18.02 billion. Total debt was $7.8 billion, with fair value approximately $8.4 billion. Shareholders' equity fell to $3.02 billion from $3.48 billion at July 2, 2016, reflecting $600.1 million of treasury stock purchases in the quarter. Cash fell to $759.9 million from $3.92 billion after $2.9 billion of acquisition payments, and operating cash flow was $248.7 million compared with negative $261.5 million a year earlier. Free cash flow was $110.7 million. Ensuring that acquisition integration and the Brakes Group's contribution remain on track is central to the outlook. Management expects the acquisition to be modestly accretive to earnings per share in fiscal 2017 on a GAAP basis, with acceleration in fiscal 2018 and beyond. The company reported that Ernst & Young reviewed the interim financial statements and that disclosure controls were effective, while excluding the Brakes Group from its internal control assessment for the year of acquisition.

    Nov 8, 2016
  31. 2016-Q3

    Sysco Quarterly Report for Q3 Ended Mar 26, 2016

    Sysco Corporation's Form 10-Q for the quarter ended March 26, 2016 reports third-quarter fiscal 2016 sales of $12.00 billion, up 2.2%, with operating income of $377.6 million, up 15.4%, and net earnings of $217.1 million, up 22.7%. Diluted earnings per share were $0.38, up 26.7%. For the first 39 weeks, sales were $36.72 billion (up 1.2%), operating income was $1.30 billion (up 17.6%), and net earnings were $734.0 million (up 19.6%), with diluted EPS of $1.26. Management also presented adjusted (non-GAAP) figures excluding Certain Items; adjusted diluted EPS was $0.46 for the quarter (up 15.0%) and $1.46 for the 39 weeks (up 9.8%). Management cited deflation of 0.4% in the quarter and 0.5% for the 39 weeks, and noted that case volume growth and acquisitions drove sales growth. The filing's most significant development is the pending acquisition of the Brakes Group, a European foodservice business, for an enterprise value of approximately £2.2 billion (about $3.1 billion), which includes repayment of about $2.3 billion of Brakes' debt and is to be paid entirely in cash. The company expects closing in June or July 2016, subject only to antitrust approvals. To fund the deal and related items, Sysco issued $2.0 billion of senior notes in September 2015 and entered into a $2.44 billion bridge term loan, which it later terminated after issuing $2.5 billion of new senior notes on April 1, 2016. Total debt was approximately $6.8 billion as of April 23, 2016. Cash and cash equivalents fell to $610.8 million at March 26, 2016, from $5.13 billion at fiscal year-end June 27, 2015, reflecting the July 2015 redemption of $5.05 billion of senior notes tied to the terminated US Foods merger and $1.71 billion of accelerated share repurchases. The company also launched a productivity plan targeting a workforce reduction of about 1,200 positions by the end of fiscal 2017 with $25 million to $30 million of severance charges, and revised its technology strategy to remove the SAP ERP platform used by 12 operating companies, with expected fiscal 2016 costs of approximately $70 million and fiscal 2017 costs of approximately $130 million. Ernst & Young reviewed the interim financial statements, and the company reported that its disclosure controls were effective.

    May 3, 2016
  32. 2016-Q2

    Sysco Quarterly Report for Q2 Ended Dec 26, 2015

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2016 (quarter ended December 26, 2015) reports sales of $12.15 billion for the 13-week period, up 0.6% from the prior year, with operating income of $432.6 million, up 37.1%, and net earnings of $272.4 million, up 72.4%. Diluted earnings per share were $0.48, compared with $0.27 a year earlier. For the first 26 weeks, sales were $24.72 billion, operating income $926.1 million (up 18.6%), and net earnings $516.8 million (up 18.3%), with diluted EPS of $0.88. Management reports adjusted diluted EPS of $1.00 for the first 26 weeks, a 7.5% increase, after excluding Certain Items such as restructuring costs and charges tied to the terminated US Foods merger, including an $86.5 million loss on extinguishment of debt. Balance sheet and cash flow changes were large. Cash and cash equivalents fell to $595.6 million from $5.13 billion at June 27, 2015, following the redemption of $5.05 billion of senior notes and $1.52 billion of accelerated share repurchases. Sysco issued $2.0 billion of new senior notes in September 2015. Total assets were $13.09 billion and total shareholders' equity was $3.94 billion. Net cash from operating activities was $468.9 million for the first 26 weeks, and free cash flow was $231.5 million. Dividends paid totaled $348.4 million. Management cites mixed economic conditions, product cost deflation of 1.2% in the quarter, and foreign currency headwinds from a stronger U.S. dollar. It states that case volume growth remained strong, with U.S. Broadline case volumes up 3.9% in the quarter, and it reaffirmed a goal to grow operating income by at least $400 million by the end of fiscal 2018. Ernst & Young LLP reviewed the interim financial statements.

    Feb 2, 2016
  33. 2016-Q1

    Sysco Quarterly Report for Q1 Ended Sep 26, 2015

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2016 (13 weeks ended September 26, 2015) shows sales of $12.56 billion, up 0.9% from $12.45 billion a year earlier, and operating income of $493.5 million, up 6.0%. Net earnings fell 12.3% to $244.4 million, and basic and diluted earnings per share were $0.41, down 12.8% from $0.47. The decline in net earnings was driven mainly by an $86.5 million loss on extinguishment of debt tied to the July 2015 redemption of $5.05 billion of senior notes issued to fund the terminated US Foods merger. Excluding these Certain Items, adjusted diluted EPS was $0.52, flat year over year, and adjusted net earnings rose 0.9% to $311.7 million. Cash flow was weak in the quarter. Operating cash flow was negative $261.5 million, compared with positive $62.6 million a year earlier, largely due to $312.5 million in US Foods merger termination payments and a $92.4 million decrease from incentive payments. Free cash flow was negative $381.2 million. Sysco's cash and cash equivalents fell to $388.3 million at quarter end from $5.13 billion at fiscal year-end, reflecting the notes redemption. Management attributed weaker sales growth to product cost deflation of 0.2% and a 2.0% negative impact from foreign currency translation, while U.S. Broadline case volumes rose 3.4%. Subsequent to quarter end, Sysco issued $2.0 billion of senior notes on September 28, 2015 and paid $1.5 billion to Goldman, Sachs & Co. under an accelerated share repurchase program for 32,319,392 shares. Management expects the ASR to add approximately $0.03 to $0.04 to fiscal 2016 EPS, and set three-year targets to grow operating income by at least $400 million by the end of fiscal 2018 with diluted EPS of $2.40 to $2.50 in fiscal 2018.

    Nov 3, 2015
  34. 2015-Q3

    Sysco Quarterly Report for Q3 Ended Mar 28, 2015

    Sysco Corporation's Form 10-Q for the quarter ended March 28, 2015 reports 13-week sales of $11.75 billion, up from $11.28 billion, and operating income of $327.3 million, down from $332.6 million. Net earnings were $177.0 million versus $180.9 million, and diluted EPS was $0.30 versus $0.31. For the 39 weeks, sales were $36.28 billion and net earnings were $613.7 million, with diluted EPS of $1.03 versus $1.15. The filing attributes the earnings decline mainly to higher operating expenses, primarily pay-related costs and merger and integration planning costs of $168.1 million year to date, and to increased interest expense of $97.1 million tied to the financing of the pending US Foods merger. Adjusted diluted EPS for the third quarter was $0.40, up from $0.38. The balance sheet changed significantly because Sysco issued $5 billion of senior notes in October 2014 to fund the US Foods transaction. Cash and cash equivalents rose to $5.08 billion at March 28, 2015 from $413.0 million at June 28, 2014, and long-term debt rose to $7.28 billion from $2.38 billion. Total debt was $7.7 billion, and the fair value of total debt was $8.2 billion. Operating cash flow for the 39 weeks was $860.5 million, and free cash flow was $438.6 million, down 9.4%. The pending merger faces an FTC preliminary injunction hearing scheduled to begin May 5, 2015. The merger agreement may be terminated if it has not closed by May 7, 2015, though that date can be extended to as late as September 8, 2015. A $300 million termination fee would apply under certain conditions, and the senior notes must be redeemed at 101% of principal if the merger has not closed by October 8, 2015, with the premium estimated at about $50 million. Sysco also agreed to divest 11 US Foods distribution centers to Performance Food Group for $850 million in cash.

    May 5, 2015
  35. 2015-Q2

    Sysco Quarterly Report for Q2 Ended Dec 27, 2014

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2015 (period ended December 27, 2014) shows sales of $12.09 billion for the 13 weeks, up 7.6% from the prior year, while operating income fell 10.3% to $315.4 million and net earnings fell 25.1% to $158.0 million, with diluted EPS of $0.27 versus $0.36. Management attributes the decline largely to $78.0 million of Certain Items, primarily merger and integration planning costs for the pending US Foods merger, plus higher pay-related expenses. Adjusted diluted EPS was $0.41, up 5.1% from $0.39, and adjusted operating income rose 3.1% to $396.3 million. For the first 26 weeks, sales were $24.53 billion (up 6.9%) and diluted EPS was $0.73 (down 13.1%). The balance sheet changed substantially because of financing for the US Foods merger. In October 2014 Sysco issued $5 billion of senior notes, and total debt was $7.6 billion at December 27, 2014, versus $2.8 billion at June 28, 2014. Cash and cash equivalents rose to $4.9 billion, and long-term debt reached $7.25 billion. The merger consideration is estimated at about $4.0 billion for US Foods equity plus $850 million from a proposed divestiture of 11 distribution centers to Performance Food Group, with a $300 million termination payment payable under certain conditions. The merger is pending FTC review, and the FTC has not yet agreed to the proposed remedy. Management estimates at least $600 million in annual operating synergies after four years and incremental merger expenses of $700 million to $800 million over four years. Cash flow from operations was $452.4 million for the first 26 weeks versus $458.2 million a year earlier, and free cash flow was $156.5 million, down 25.9%. No shares were repurchased in the first 26 weeks of fiscal 2015 because of the pending merger. Dividends declared were $0.30 per share for the quarter.

    Feb 3, 2015
  36. 2015-Q1

    Sysco Quarterly Report for Q1 Ended Sep 27, 2014

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2015 (13 weeks ended September 27, 2014) shows sales of $12.45 billion, up 6.2% from $11.71 billion a year earlier, while operating income fell 2.6% to $465.6 million and net earnings declined 2.4% to $278.8 million. Diluted earnings per share were $0.47, down 2.1% from $0.48. The filing attributes the sales growth largely to inflation of 4.9% and case volume growth of 2.3%. Management reports adjusted operating income, which excludes Certain Items, rose 5.9% to $509.0 million, and adjusted diluted EPS rose 6.1% to $0.52. The decline in reported operating income reflects $41.1 million of Certain Items, primarily US Foods merger and integration planning costs, along with higher pay-related expenses. The pending merger with US Foods dominates the balance sheet and financing. Sysco priced $5 billion of senior notes in September 2014, funded in October 2014 after quarter-end, and terminated its $3.3865 billion bridge facility. The filing states that the transaction is pending an FTC regulatory review and that the company does not expect to close before the first quarter of 2015. Sysco would owe $300 million to US Foods' owners if the merger is cancelled, and the notes must be redeemed at 101% of principal if the merger has not closed by October 8, 2015. Cash flow from operations fell to $62.6 million from $169.2 million, and free cash flow was negative $55.1 million, driven by working capital, a $50 million pension contribution, and merger-related cash costs. Total assets were $13.62 billion at September 27, 2014, and shareholders' equity was $5.32 billion. Total debt was $3.0 billion as of that date, before the October notes issuance that the filing says brings total indebtedness to approximately $7.6 billion as of October 25, 2014.

    Nov 4, 2014
  37. 2014-Q3

    Sysco Quarterly Report for Q3 Ended Mar 29, 2014

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2014 (quarter ended March 29, 2014) shows sales of $11.28 billion for the 13 weeks, up 3.2% from the prior year, while net earnings fell 10.2% to $180.9 million and diluted earnings per share were $0.31, down 8.8%. For the first 39 weeks, sales rose 4.3% to $34.23 billion, but operating income declined 3.0% to $1.16 billion and net earnings declined 4.5% to $677.4 million. Management attributed the margin pressure to competitive pricing, a shift toward lower-margin corporate-managed customers, severe winter weather, and higher operating expenses, partly offset by Business Transformation savings and lower retirement-related costs. Adjusted diluted EPS was $0.38 in the quarter and $1.26 for the 39 weeks. The dominant event is the pending merger with US Foods, Inc. Sysco agreed to pay about $3.6 billion for US Foods' equity ($3.1 billion in Sysco stock and $500 million in cash) and assume or refinance roughly $4.8 billion of US Foods net debt, for a total enterprise value of $8.4 billion. The merger is under Federal Trade Commission review, with closing expected in the first quarter of fiscal 2015, and Sysco would owe $300 million to US Foods' owners if the deal is cancelled under certain conditions. Sysco secured a $3.3865 billion bridge term loan, and US Foods' equity holders would own about 87 million shares, roughly 13% of Sysco. Liquidity remained solid: operating cash flow was $848.1 million for the 39 weeks, free cash flow was $484.3 million, and cash and equivalents totaled $341.1 million at quarter end. Total debt was $3.1 billion, and the company recorded a $20 million contingency accrual related to California drop-site investigations. The filing also notes a $90.0 million estimate of potential multiemployer pension withdrawal liability and $159.1 million of forward diesel fuel commitments.

    May 6, 2014
  38. 2014-Q2

    Sysco Quarterly Report for Q2 Ended Dec 28, 2013

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2014 (quarter ended December 28, 2013) reports sales of $11.24 billion for the 13 weeks, up 4.1%, while operating income fell 8.1% to $351.8 million and net earnings fell 4.8% to $210.8 million, or $0.36 per diluted share. For the first 26 weeks, sales rose 4.9% to $22.95 billion, operating income declined 3.7% to $830.0 million, and diluted EPS was $0.84 versus $0.86. Management attributes the earnings pressure to a slower-growth foodservice market, competitive pricing, and a shift in customer mix toward lower-margin regional and national accounts, with gross margin falling to 17.48% in the quarter from 18.08%. Adjusted diluted EPS (non-GAAP) was $0.47 in the quarter versus $0.49 a year earlier. The filing's dominant event is the pending merger with US Foods, Inc. Sysco agreed to pay approximately $3.5 billion for US Foods' equity ($3 billion in Sysco common stock and $500 million in cash), and to assume or refinance about $4.7 billion of US Foods' net debt, for a total enterprise value of $8.2 billion. Sysco secured a $3.3865 billion bridge facility, and a $300 million termination payment applies if the deal is cancelled under certain conditions, including lack of regulatory approval. The company expects the transaction to close in the first quarter of fiscal 2015 after an FTC review of six to nine months, and it expects roughly 87 million new shares, about 13% of Sysco, to be issued to US Foods holders. Balance sheet and cash flow remained solid. Cash and cash equivalents were $449.9 million, total debt carrying value was $3,206.0 million, and operating cash flow was $458.2 million for the first 26 weeks, against capital expenditures of $270.4 million. Free cash flow (non-GAAP) was $211.2 million, up 64.4%. Sysco also disclosed a California investigation over its use of drop sites, with financial exposure that cannot yet be estimated.

    Feb 4, 2014
  39. 2014-Q1

    Sysco Quarterly Report for Q1 Ended Sep 28, 2013

    Sysco Corporation's first quarter of fiscal 2014 (13 weeks ended September 28, 2013) shows sales up 5.7% to $11.71 billion, driven primarily by case volume growth, a large portion of which came from acquisitions closed in fiscal 2013, while competitive pricing pressures and customer mix produced only modest gross profit growth. Gross margin fell to 17.63% from 18.31%. Operating income was essentially flat at $478.2 million (down 0.1%), while adjusted operating income declined 2.7% to $547.7 million as operating expenses rose on higher case volumes from acquired operations. Net earnings were $285.6 million, down 0.4%, and diluted EPS was $0.48 versus $0.49, or $0.56 on an adjusted basis versus $0.58. Cash flow weakened, with cash from operations of $169.2 million versus $213.2 million a year earlier, mainly due to unfavorable working capital comparisons. Free cash flow fell 25.2% to $44.1 million. Sysco spent $250.6 million on treasury stock purchases (7,725,000 shares) and paid $164.1 million in dividends ($0.28 per share), while net bank borrowings were $235.8 million. Total debt was $3.1 billion, with about 66% at fixed rates including swaps. Management continues its Business Transformation Project, targeting $300 million to $350 million in annual operating cost reductions and $250 million to $300 million in product cost reductions by fiscal 2015, and expects fiscal 2014 project expenses of $300 million to $350 million. The filing also flags risks including multiemployer pension withdrawal liability that could be as much as $90.0 million, an open California investigation related to delivery drop sites with an exposure that cannot be estimated, and a $108.2 million gross unrecognized tax benefit balance. Ernst & Young issued a review report on the unaudited interim statements.

    Nov 5, 2013
  40. 2013-Q3

    Sysco Quarterly Report for Q3 Ended Mar 30, 2013

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2013 (quarter ended March 30, 2013) reports a challenging period. Sales rose 4.0% to $10.93 billion in the quarter and 4.7% to $32.81 billion for the first 39 weeks, but operating income fell 23.2% to $337.2 million in the quarter and 12.8% to $1.20 billion year to date. Net earnings declined 22.4% to $201.4 million for the quarter and 12.7% to $709.4 million year to date. Diluted earnings per share were $0.34 for the quarter, down 22.7%, and $1.20 for the 39 weeks, down 13.0%. Management attributes the earnings decline mainly to Business Transformation Project expenses ($83.2 million in the quarter) and a $40.7 million multiemployer pension plan withdrawal charge, and cites weaker consumer spending on food-away-from-home. Adjusted diluted earnings per share, a non-GAAP measure excluding these charges, were $0.49 for the quarter, down 2.0%, and $1.55 for the 39 weeks, up 2.0%. Cash flow from operations was $759.4 million for the 39 weeks, down 16.4% from $908.3 million, while capital expenditures fell to $373.0 million from $633.2 million, lifting non-GAAP free cash flow to $386.4 million, up 40.4%. Cash and equivalents were $331.5 million at quarter end, and total debt was $2.8 billion, about 92% at fixed rates. Management expects fiscal 2013 capital expenditures of $550 million to $575 million and states that the Business Transformation Project's expected annualized benefits of $550 million to $650 million by fiscal 2015 are unchanged. Dividends paid were $482.0 million year to date, and the company repurchased 10,000,000 shares for $321.0 million during the period.

    May 7, 2013
  41. 2013-Q2

    Sysco Quarterly Report for Q2 Ended Dec 29, 2012

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2013 (13 weeks ended December 29, 2012) reports sales of $10.80 billion for the quarter, up 5.4%, while operating income fell 10.4% to $382.7 million and net earnings fell 11.5% to $221.4 million, or $0.38 per diluted share. For the first 26 weeks, sales rose 5.1% to $21.88 billion, but net earnings declined 8.1% to $508.0 million. Management attributes the earnings decline primarily to Business Transformation Project expenses, which were $81.4 million in the quarter versus $36.4 million a year earlier. Adjusted net earnings, which exclude executive retirement plan restructuring, multiemployer pension charges, severance, facility closure and Business Transformation Project costs, rose 4.7% to $286.1 million in the quarter, and adjusted diluted EPS was $0.49 versus $0.47. Cash flow from operations was $386.8 million for the first 26 weeks, down from $538.5 million, while free cash flow rose 19.6% to $125.2 million as capital expenditures fell to $261.6 million. Total debt was $3.1 billion at December 29, 2012, and cash and cash equivalents were $320.8 million. The company also reported a potential multiemployer pension withdrawal liability of up to $115.0 million at December 29, 2012, which management later estimated at up to $80.0 million after a January 2013 withdrawal, and a $40.7 million withdrawal provision to be recorded in the third quarter of fiscal 2013. Management expects its Business Transformation Project to deliver total annualized benefits of $550 million to $650 million by fiscal 2015 and anticipates that project costs will exceed benefits in fiscal 2013. Gross margin declined 26 basis points in the quarter to 17.76%, reflecting growth from large regional and national customers and competitive pressure in a slow-growth market.

    Feb 5, 2013
  42. 2013-Q1

    Sysco Quarterly Report for Q1 Ended Sep 29, 2012

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2013 (13 weeks ended September 29, 2012) reports sales of $11.09 billion, up 4.7% from $10.59 billion a year earlier, but operating income fell 6.0% to $478.8 million and net earnings fell 5.3% to $286.6 million, or $0.49 per diluted share versus $0.51. Management attributes the earnings decline primarily to expenses for its Business Transformation Project, which were $77.7 million versus $37.0 million a year earlier. Excluding those project costs and other specified charges, adjusted net earnings rose 3.2% to $340.1 million and adjusted diluted EPS rose to $0.58 from $0.56. Sales growth was driven by case volume improvement of approximately 2.9% and product cost inflation of 2.2%, while gross margin declined to 18.07% from 18.40%. Cash flow from operations was $213.2 million versus $255.3 million, reflecting higher tax payments, and capital expenditures fell to $155.7 million from $226.5 million as the ERP project moved into deployment in August 2012. Cash and cash equivalents were $548.4 million at quarter end, and total debt was $3.0 billion, about 84% at fixed rates. The company expects Business Transformation Project expenses in fiscal 2013 to exceed fiscal 2012 levels, with costs exceeding benefits in fiscal 2013, and it estimates it could face withdrawal liability from multiemployer pension plans of as much as $115.0 million. Management stated that Hurricane Sandy caused no substantial damage to its facilities but that its customers in the affected region were negatively affected, and that the financial impact could not yet be quantified. The company also disclosed an expected fuel cost increase of approximately $10 to $20 million for fiscal 2013 and a planned $6.0 million of additional severance charges in the second quarter tied to an IT restructuring.

    Nov 6, 2012
  43. 2012-Q3

    Sysco Quarterly Report for Q3 Ended Mar 31, 2012

    Sysco Corporation's Form 10-Q for the third quarter of fiscal 2012 (quarter ended March 31, 2012) shows sales of $10.50 billion for the 13-week period, up 7.6% from the prior year, and net earnings of $259.6 million, up 0.4%. Diluted earnings per share were $0.44, flat with the prior year. For the 39 weeks, sales rose 8.4% to $31.34 billion, while net earnings declined 0.4% to $812.3 million and diluted EPS fell to $1.38 from $1.39. Management attributes the sales growth mainly to inflation-driven pricing, with product cost inflation estimated at 5.5% in the quarter and 6.3% year to date, and says inflation and competitive pricing compressed gross margin, which fell to 17.82% in the quarter from 18.77%. Cost pressures are concentrated in operating expenses, which rose 2.0% in the quarter and 5.4% year to date, driven by pay-related costs, fuel, and the Business Transformation Project. Business Transformation Project expenses were $49.5 million in the quarter and $122.8 million year to date, and the company expects fiscal 2012 project expenses of $175 million to $195 million. Adjusted diluted EPS, a non-GAAP measure that excludes the project, was $0.49 for the quarter, up 2.1%, and $1.50 year to date, up 4.2%. Cash flow from operations improved to $908.3 million for the first 39 weeks from $665.8 million, while capital expenditures rose to $633.2 million. Balance sheet items to note include total debt of $2.87 billion at March 31, 2012, a new $1.0 billion credit facility that replaced the prior revolver, and an estimated withdrawal liability from multiemployer pension plans of as much as $220.0 million. The filing discloses no material legal proceedings.

    May 8, 2012
  44. 2012-Q2

    Sysco Quarterly Report for Q2 Ended Dec 31, 2011

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2012 (13 weeks ended December 31, 2011) shows sales of $10.24 billion, up 9.2% from the prior-year quarter, while operating income fell 2.3% to $427.0 million and net earnings declined 3.1% to $250.1 million. Diluted earnings per share were $0.43, versus $0.44 a year earlier. For the first 26 weeks, sales rose 8.9% to $20.8 billion, operating income declined 0.7% to $936.3 million, and net earnings were $552.8 million, down 0.8%. The filing attributes the earnings pressure to product cost inflation that the company could not fully pass through at the same gross margin, and to rising operating expenses, including pay-related costs, Business Transformation Project expenses, and fuel costs. Gross margin fell to 18.02% in the quarter from 18.77% a year earlier. Management estimated product cost inflation at 6.3% for the quarter and 6.8% for the first 26 weeks. The company's balance sheet shows cash of $336.5 million, total debt of about $2.86 billion carrying value, and shareholders' equity of $4.69 billion as of December 31, 2011. Sysco terminated its prior revolving credit facility in December 2011 and entered into a new $1.0 billion credit facility supporting its U.S. and Canadian commercial paper programs. Cash flow from operations rose to $538.5 million in the first 26 weeks from $282.6 million, helped by the redemption of COLI policies and working capital changes. The company repurchased 10,000,000 shares for $272.3 million in the first 26 weeks and paid $307.1 million in dividends. The filing also estimates that Business Transformation Project expenses for fiscal 2012 will be approximately $230 million to $250 million, and that fiscal 2012 capital expenditures will be approximately $700 million to $750 million. The filing discloses potential multiemployer pension exposure: estimated withdrawal liability could have been as much as $220.0 million on a voluntary withdrawal basis, with $46.9 million already recorded for plans from which Sysco has withdrawn. Management states that legal proceedings are not expected to have a material adverse effect, while acknowledging that outcomes cannot be predicted with certainty.

    Feb 7, 2012
  45. 2012-Q2

    Sysco Quarterly Report for Q2 Ended Oct 1, 2011

    Sysco Corporation's Form 10-Q for the first quarter of fiscal 2012 (13 weeks ended October 1, 2011) reports sales of $10.59 billion, up 8.6% from $9.75 billion a year earlier, driven primarily by increased prices due to inflation. Operating income rose 0.6% to $509.3 million, as gross profit dollars increased 5.5% but operating expenses rose 7.3%, mainly from pay-related expense, Business Transformation Project costs, higher fuel costs and an unfavorable comparison on COLI policy adjustments. Net earnings increased 1.2% to $302.7 million, and basic and diluted earnings per share were $0.51, matching the prior-year quarter. Management presents adjusted diluted EPS of $0.55 versus $0.51 a year earlier, excluding Business Transformation Project expenses and COLI adjustments. Gross margin declined to 18.40% from 18.93% as product cost inflation, estimated at 7.3%, outpaced the company's ability to pass through increases. Cash flow from operations was $255.3 million, compared with $226.8 million a year earlier. Sysco repurchased 4,920,000 shares for $133.4 million and paid $153.8 million in dividends. Total debt was $2.6 billion, with about 77% at fixed rates. Management expects fiscal 2012 capital expenditures of $700 million to $750 million and Business Transformation Project expenses of $250 million to $275 million. The filing also discloses that the company could face multiemployer pension withdrawal liability estimated as much as $210.0 million, and that it had $46.9 million recorded for plans from which it has already withdrawn. The filing states that management has identified an uncertain economic environment, rising product cost inflation and softer consumer sentiment as challenges, and that the company intends to file recast annual report sections on Form 8-K on the same day as this 10-Q.

    Nov 8, 2011
  46. 2011-Q3

    Sysco Quarterly Report for Q3 Ended Apr 2, 2011

    Sysco Corporation's Form 10-Q for the quarter ended April 2, 2011 shows a challenging third quarter and first 39 weeks of fiscal 2011. Sales rose 7.4% for the 39-week period to $28.90 billion and 9.1% for the 13-week period to $9.76 billion, driven mainly by inflation and improving case volumes. Operating income, however, declined 1.5% for the 39 weeks to $1.37 billion and 1.1% for the quarter to $427.5 million, as gross margin dollars grew more slowly than sales and operating expenses rose 7.5% for the 39 weeks. Management attributed the squeeze to product cost inflation that could not be fully passed on to customers, strategic pricing initiatives, higher pay-related and pension costs, fuel costs, and a $36.1 million charge for withdrawal from a multi-employer pension plan. Net earnings were $815.7 million for the 39 weeks, down 3.1%, and $258.5 million for the quarter, up 4.4%. Diluted earnings per share were $1.39 for the 39 weeks, down 2.1%, and $0.44 for the quarter, up 4.8%, helped in part by a lower effective tax rate in the third quarter and share repurchases. Cash flow from operations was $665.8 million for the 39 weeks, compared with $476.5 million a year earlier, largely reflecting lower payments under the IRS settlement and reduced pension contributions. Sysco repurchased 10 million shares for $291.6 million during the 39 weeks and expects total Business Transformation Project cash outlay of about $900 million. At April 2, 2011, total assets were $10.95 billion, shareholders' equity was $4.21 billion, and long-term debt was $2.66 billion. Sysco also entered into guarantees of its senior notes and debentures by its U.S. Broadline subsidiaries on January 19, 2011, and adopted an Involuntary Severance Plan effective April 3, 2011, tied to the Business Transformation Project.

    May 10, 2011
  47. 2011-Q3

    Sysco Quarterly Report for Q3 Ended Jan 1, 2011

    Sysco Corporation's Form 10-Q for the quarter ended January 1, 2011 shows a challenging first 26 weeks of fiscal 2011. Sales rose 6.6% to $19.1 billion, driven mainly by inflation in product prices and improving case volumes, with estimated product cost inflation of 3.9%. However, operating income fell 1.7% to $943.3 million, as gross margin dollars grew more slowly than sales and operating expenses rose 5.9%. Net earnings declined 6.3% to $557.2 million, and basic and diluted earnings per share were both $0.95, down 5.0%. The effective tax rate rose to 37.18% from 33.75%, largely because of a one-time tax benefit recorded in the prior year's IRS settlement. For the second quarter alone, sales increased 5.8% to $9.4 billion, operating income decreased 5.5% to $437.0 million, and diluted earnings per share were $0.44, down 2.2%. Management attributed the margin pressure to high inflation in dairy, meat and seafood, strategic pricing initiatives, and faster growth in the lower-margin SYGMA segment. Operating cash flow improved to $282.6 million from $146.4 million, mainly because IRS settlement payments were lower at $106.0 million versus $422.0 million a year earlier. Cash and cash equivalents fell to $209.8 million, and total debt carrying value was $2,661.4 million. Other items for investors include a Business Transformation Project with an expected total cash outlay of about $900 million, $145 million of which was spent in the first 26 weeks. The company repurchased 9,790,000 shares for $285.4 million in the first 26 weeks. Its quarterly dividend was $0.26 per share, and the company estimated withdrawal liability from multi-employer pension plans could be as much as $220.0 million.

    Feb 8, 2011
  48. 2011-Q2

    Sysco Quarterly Report for Q2 Ended Oct 2, 2010

    Sysco Corporation's first-quarter fiscal 2011 Form 10-Q (13 weeks ended October 2, 2010) shows sales rising 7.4% to $9.75 billion, driven by improving case volumes and inflation of an estimated 3.3%. Operating income grew 1.8% to $506.2 million, but gross margin as a percentage of sales declined to 18.78% from 19.24%, reflecting strategic pricing initiatives and higher inflation in dairy, meat and seafood (8% to 11%). Net earnings fell 8.3% to $299.1 million, mainly because the effective tax rate rose to 37.28% from 29.93% a year earlier, when a one-time IRS settlement benefit and larger COLI gains had lowered it. Basic and diluted earnings per share were both $0.51, down 7.3%. Cash flow from operations improved to $226.8 million from $41.6 million, largely because the prior year included $316.0 million of IRS settlement payments. The company had $448.4 million in cash and cash equivalents, $2.49 billion of carrying value of total debt, and no commercial paper outstanding. During the quarter Sysco repurchased 4,000,000 shares for $116.7 million and paid $146.9 million in dividends ($0.25 per share). Management states that the Business Transformation Project's costs will exceed its benefits during early implementation, including fiscal 2011. The filing also notes that Sysco's estimated share of multi-employer pension withdrawal liability could have been as much as $190.0 million, and that the company has approximately $6.3 million recorded for plans from which it has already withdrawn. Management believes pending legal proceedings will not have a material adverse effect.

    Nov 9, 2010
  49. 2010-Q3

    Sysco Quarterly Report for Q3 Ended Mar 27, 2010

    Sysco Corporation's Form 10-Q for the quarter ended March 27, 2010 shows a difficult sales environment offset by lower operating expenses. Sales for the first 39 weeks fell to $26.90 billion from $27.77 billion, a decrease of 3.1%, driven mainly by deflation and weak consumer spending. Operating income rose 4.5% to $1.39 billion, and net earnings rose 13.7% to $842.2 million, or $1.42 per diluted share, up 14.5%. The filing attributes the earnings improvement partly to a one-time $29 million tax benefit from the IRS settlement and $31.8 million of non-taxable COLI policy gains, each of which the filing says contributed about $0.10 per share. In the third quarter, sales rose 2.4% to $8.95 billion, operating income rose 6.6% to $432.1 million, and diluted EPS was $0.42. Management says conditions began to improve in the quarter, helped by improving case volumes and favorable exchange rates. Cash flow from operations fell to $465.9 million from $984.7 million, largely because of $475 million of payments under the IRS settlement on Baugh Supply Chain Cooperative deferred taxes. Sysco also disclosed a business transformation (ERP) project with an expected total cash outlay of about $900 million, and an estimated multi-employer pension withdrawal liability of as much as $173 million. The balance sheet shows total assets of $10.47 billion, total debt carrying value of $2.48 billion, and shareholders' equity of $4.03 billion as of March 27, 2010. The filing states that management believes cash flow from operations, commercial paper programs, and bank lines will be sufficient for at least the next twelve months.

    May 4, 2010
  50. 2010-Q2

    Sysco Quarterly Report for Q2 Ended Dec 26, 2009

    Sysco Corporation's Form 10-Q for the second quarter of fiscal 2010 (quarter ended December 26, 2009, filed February 2, 2010) reports a difficult sales environment offset by lower operating expenses. For the 26 weeks, sales were $17.95 billion, down 5.7% from the prior year, reflecting estimated product cost deflation of 3.4% and weak economic conditions. Operating income rose 3.6% to $959.7 million, net earnings rose 15.6% to $594.6 million, and basic and diluted EPS were both $1.00, up 16.3%. Operating expenses fell 8.4%, driven by reduced headcount, lower incentive compensation and favorable COLI policy gains of $26.3 million. The 26-week effective tax rate of 33.75% was lowered by a one-time reversal of accrued interest tied to the IRS settlement, the non-taxable COLI gains and a state NOL valuation allowance reversal. Cash flow from operations fell to $144.0 million from $561.7 million, driven primarily by the IRS settlement. Sysco paid $422 million toward the settlement in the first half of fiscal 2010, with a total fiscal 2010 payment schedule of $528 million, followed by $212 million in each of fiscal 2011 and 2012. Cash and cash equivalents were $647.6 million at December 26, 2009, and total debt carrying value was $2.48 billion. No share repurchases were made in the first 26 weeks of fiscal 2010, compared with 13.55 million shares repurchased for $358.8 million a year earlier. Management highlighted the business transformation project, an ERP implementation with total expected cash outlay of approximately $900 million, of which $250 million to $275 million is expected in fiscal 2010, and an expected reduction in fiscal 2010 operating income of $40 million to $50 million. Multi-employer pension withdrawal liability could be as much as $174 million. Management expects continued deflation and weak economic conditions to make sales growth challenging in fiscal 2010.

    Feb 2, 2010