01—Abstract
Summary
Summary of the 8-K filed May 9, 2024. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. (NYSE: USFD) reported results for its fiscal first quarter ended March 30, 2024, in a press release furnished as Exhibit 99.1.
Net sales rose 4.8% to $8.9 billiona, gross profit rose 4.9% to $1.5 billion, and net income available to common shareholders was $82 million. Adjusted EBITDA increased 5.6% to $356 million, and Adjusted Diluted EPS increased 8.0% to $0.54, while GAAP diluted EPS was $0.33. Total case volume grew 4.2%, with independent restaurant case volume up 4.6%.
Cash flow from operating activities was $139 millionb, a decrease of $140 million from the prior year due to less working capital benefit. Cash capital expenditures were $87 million. Net Debt was $4.4 billion, and the Net Debt to Adjusted EBITDA ratio was 2.8x, compared with 3.2x at the end of the first quarter of fiscal 2023.
The company repurchased 0.3 million shares for $13 millionc and has about $179 million remaining under its $500 million repurchase program. The company closed its acquisition of IWC Food Service in April for approximately $220 million, and reaffirmed its fiscal 2024 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. The company also said it will update investors on a new long-range plan at an investor day on June 5.
02—Key points
Key Highlights
- Net sales increased 4.8% to $8.9 billion, with total case volume up 4.2% and independent restaurant case volume up 4.6%.
- Adjusted EBITDA rose 5.6% to $356 million; Adjusted Diluted EPS rose 8.0% to $0.54 versus GAAP diluted EPS of $0.33.
- Operating cash flow fell $140 million year over year to $139 million, due to less working capital benefit than the prior year.
- Net Debt of $4.4 billion; Net Debt to Adjusted EBITDA ratio of 2.8x, down from 3.2x a year earlier.
- Closed the IWC Food Service acquisition in April for approximately $220 million; IWC has about $200 million in annual sales.
- Reaffirmed fiscal 2024 guidance: net sales of $37.5 to $38.5 billion, Adjusted EBITDA of $1.69 to $1.74 billion, Adjusted Diluted EPS of $3.00 to $3.20.
- Repurchased $13 million of common stock in the quarter; about $179 million remains under the $500 million program.
03—Questions
Frequently Asked Questions
How did US Foods perform in its fiscal first quarter of 2024?
Net sales grew 4.8% to $8.9 billion and gross profit grew 4.9% to $1.5 billion. Net income available to common shareholders was $82 million, and Adjusted EBITDA increased 5.6% to $356 million.
Did the company change its full-year outlook?
No. US Foods reaffirmed its fiscal 2024 guidance, which calls for 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.
Why did operating cash flow decline in the quarter?
Cash flow provided by operating activities was $139 million, down $140 million from the prior year, due to less working capital benefit than in the prior year period.
What acquisition did US Foods complete recently?
After quarter-end, the company closed its previously announced acquisition of IWC Food Service, a broadline distributor serving the greater Nashville area, for approximately $220 million. IWC has about 220 associates and approximately $200 million in annual sales.
How is the company's leverage trending?
Net Debt was $4.4 billion at the end of the first quarter, and the Net Debt to Adjusted EBITDA ratio was 2.8x, compared with 2.8x at fiscal year-end 2023 and 3.2x at the end of the first quarter of fiscal 2023.
04—Continue