01—Abstract
Summary
Summary of the 8-K filed February 15, 2024. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. (NYSE: USFD) reported results for the fiscal fourth quarter and fiscal year ended December 30, 2023, in a press release attached as Exhibit 99.1.
Fiscal 2023 net sales rose 4.5% to $35.6 billiona, driven by total case volume growth of 4.4%, with independent restaurant case volume up 6.9%. Gross profit increased 11.9% to $6.1 billion, and Adjusted EBITDA grew 19.0% to a record $1.56 billion. GAAP net income available to common shareholders was $499 million, and diluted EPS was $2.02, compared with $1.01 in the prior year.
Cash flow from operations for fiscal 2023 was $1.14 billionb, and cash capital expenditures were $309 million. The company repurchased 7.4 million shares for $294 million during the year and reported Net Debt of $4.4 billion. The net leverage ratio fell from 3.5x at the end of 2022 to 2.8x at the end of 2023.
The company also acquired Saladino's Foodservice for $56 millionc in the fourth quarter and signed a definitive agreement to acquire IWC Food Service, which has about $200 million in annual sales, with closing targeted for the second quarter of 2024 pending regulatory approval. For fiscal 2024, US Foods guided to net sales of $37.5 to $38.5 billion, Adjusted EBITDA of $1.69 to $1.74 billion, and Adjusted Diluted EPS of $3.00 to $3.20. First-quarter 2024 Adjusted EBITDA is guided to $340 to $355 million.
02—Key points
Key Highlights
- Fiscal 2023 net sales increased 4.5% to $35.6 billion, driven by case volume growth of 4.4%.
- Adjusted EBITDA rose 19.0% to a record $1.56 billion; fourth-quarter Adjusted EBITDA increased 10.9% to $388 million.
- Diluted EPS was $2.02 for fiscal 2023 (up 100.0%); Adjusted Diluted EPS was $2.63 (up 22.9%).
- Net leverage fell to 2.8x at year-end 2023 from 3.5x at year-end 2022; Net Debt was $4.4 billion.
- Fiscal 2023 operating cash flow was $1.14 billion, and cash capital expenditures were $309 million.
- The company repurchased $294 million of common stock in fiscal 2023, with about $192 million remaining under its $500 million program.
- FY2024 guidance: net sales of $37.5 to $38.5 billion, Adjusted EBITDA of $1.69 to $1.74 billion, and Adjusted Diluted EPS of $3.00 to $3.20.
03—Questions
Frequently Asked Questions
How did US Foods perform in fiscal 2023?
Net sales rose 4.5% to $35.6 billion and gross profit rose 11.9% to $6.1 billion. Adjusted EBITDA grew 19.0% to a record $1.56 billion, and net income available to common shareholders was $499 million.
How is the company's balance sheet positioned?
Net Debt was $4.4 billion at fiscal year-end 2023, a decrease of $238 million from the prior year. The Net Debt to Adjusted EBITDA ratio improved to 2.8x from 3.5x.
What acquisitions did US Foods announce or complete?
In the fourth quarter of fiscal 2023, the company acquired Saladino's Foodservice for $56 million. After year-end, it signed a definitive agreement to acquire IWC Food Service, a Nashville-area broadline distributor with about $200 million in annual sales, targeting closing in the second quarter of 2024 pending regulatory approval.
What guidance did US Foods provide for 2024?
For fiscal 2024, the company guided to net sales of $37.5 to $38.5 billion, Adjusted EBITDA of $1.69 to $1.74 billion, and Adjusted Diluted EPS of $3.00 to $3.20. First-quarter 2024 Adjusted EBITDA is expected to be $340 to $355 million.
How did the company use its cash in 2023?
The company repurchased 7.4 million shares for $294 million, reduced debt, and made two tuck-in acquisitions. Cash capital expenditures were $309 million for the year.
04—Continue