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US Foods Holding 8-K Report, Financial Results (Nov 7, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed November 7, 2024
Period End
November 7, 2024
Security
USFD
In the record · 2016–202610-K1010-Q318-K141

USFD filed 10 annual reports (10-K), 31 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Dec ’17Dec ’17
  2. Leadership change8-K · May ’20May ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.

US Foods Holding Corp. (NYSE: USFD) reported results for its fiscal third quarter ended September 28, 2024, in a press release furnished as Exhibit 99.1 to this Item 2.02 8-K.

Net sales rose 6.8% to $9.7 billiona, gross profit rose 8.1% to $1.7 billion, and net income was $148 million, up 55.8%. Adjusted EBITDA increased 13.2% to $455 million, with Adjusted EBITDA margin of 4.7%, an increase of 27 basis points. Diluted EPS was $0.61 and Adjusted Diluted EPS was $0.85, up 21.4%.

Total case volume increased 3.8%, and independent restaurant case volume increased 4.1%. CEO Dave Flitman cited a softer macro environment and weather-related challenges, including hurricanes Helene and Milton, as pressures on industry case volumes. For the first nine months of fiscal 2024, operating cash flow was $891 millionb, down $44 million from the prior year, and cash capital expenditures were $236 million.

The company repurchased $580 millionc of shares in the quarter, leaving approximately $398 million remaining under its $1 billion repurchase program. Net Debt was $4.7 billion at quarter-end, and the Net Debt to Adjusted EBITDA ratio was 2.8x, compared with 2.8x at fiscal year-end 2023 and 2.9x at the third quarter of fiscal 2023.

The company updated its fiscal 2024 guidance. Net sales are now expected at $37.7 billion to $38.0 billiond (previously $37.5 billion to $38.5 billion), Adjusted EBITDA at $1.72 billion to $1.74 billion (previously $1.69 billion to $1.74 billion), and Adjusted Diluted EPS at $3.05 to $3.15 (previously $3.00 to $3.20).

02—Key points

Key Highlights

  1. Net sales increased 6.8% to $9.7 billion, driven by total case volume growth of 3.8% and food cost inflation of 3.2%.
  2. Net income was $148 million, up 55.8%; diluted EPS was $0.61, up 60.5%.
  3. Adjusted EBITDA rose 13.2% to $455 million, with Adjusted EBITDA margin expanding 27 basis points to 4.7%.
  4. Adjusted Diluted EPS increased 21.4% to $0.85.
  5. The company repurchased $580 million of shares in the quarter and had approximately $398 million remaining under its $1 billion repurchase program.
  6. Net Leverage Ratio (Net Debt to Adjusted EBITDA) was 2.8x, down from 2.9x at the end of the third quarter of fiscal 2023.
  7. Fiscal 2024 guidance was updated: Net sales of $37.7 billion to $38.0 billion, Adjusted EBITDA of $1.72 billion to $1.74 billion, and Adjusted Diluted EPS of $3.05 to $3.15.

03—Questions

Frequently Asked Questions

  1. How did US Foods perform in its fiscal third quarter of 2024?

    Net sales rose 6.8% to $9.7 billion, gross profit rose 8.1% to $1.7 billion, and net income reached $148 million. Adjusted EBITDA grew 13.2% to $455 million, and Adjusted Diluted EPS was $0.85, up 21.4%.

  2. What drove the growth in case volume?

    Total case volume increased 3.8%, led by a 4.1% increase in independent restaurant case volume. Healthcare volume rose 5.7%, hospitality volume rose 3.0%, and chain volume rose 2.4%.

  3. How did the company change its fiscal 2024 guidance?

    Net sales guidance was narrowed to $37.7 billion to $38.0 billion from $37.5 billion to $38.5 billion. Adjusted EBITDA guidance was raised to $1.72 billion to $1.74 billion from $1.69 billion to $1.74 billion, and Adjusted Diluted EPS guidance was narrowed to $3.05 to $3.15 from $3.00 to $3.20.

  4. How is the balance sheet and capital return program positioned?

    Net Debt was $4.7 billion at the end of the third quarter, and the Net Debt to Adjusted EBITDA ratio was 2.8x. The company repurchased 10.4 million shares for $580 million in the quarter and had approximately $398 million remaining under its $1 billion share repurchase program.

  5. What factors pressured results this quarter?

    The CEO cited a softer macro environment and weather-related challenges that pressured industry case volumes, including hurricanes Helene and Milton, which caused catastrophic devastation across the Southeast. Operating cash flow for the first nine months decreased $44 million to $891 million due to less working capital benefit than in the prior year.

04—Continue

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