What drove the decline in fourth-quarter GAAP earnings?

Fourth-quarter net income fell by $81 million to $66 million, due to a non-recurring pension termination settlement expense of $124 million and an unfavorable year-over-year LIFO adjustment. Adjusted EBITDA still increased 13.7% to $441 million.

What is the company's fiscal 2025 outlook?

The company expects net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. It does not reconcile these forward-looking non-GAAP measures to GAAP because it cannot predict with reasonable certainty the financial impact of certain significant items.

What are the company's longer-term targets?

Through 2027, the company is targeting a 5% sales CAGR, a 10% Adjusted EBITDA CAGR, and a 20% Adjusted Diluted EPS CAGR. It expects to generate more than $4 billion of cash flow under its new long-range plan.

How is the company using its cash?

In fiscal 2024, the company generated $1.17 billion of operating cash flow and spent $341 million on cash capital expenditures. It repurchased $958 million of shares and, after year-end, acquired Jake's Finer Foods, a Houston-based broadline distributor, for $92 million in cash. The company says it will continue to invest in the business, return capital to shareholders, and pursue tuck-in M&A.

What acquisition did the company complete after year-end?

After fiscal year-end, the company acquired Jake's Finer Foods, a broadline distributor in Houston, Texas, for $92 million. The business has more than $160 million in annual revenue across independent and multi-unit restaurants and will expand the company's presence in south Texas.

USFD 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.

US Foods Holding Corp. reported results for its fiscal fourth quarter and full fiscal year 2024, ended December 28, 2024.

For the full year, net sales increased 6.4% to a record $37.9 billion^a, net income available to common shareholders was $494 million, and Adjusted EBITDA increased 11.7% to a record $1.74 billion, with Adjusted EBITDA margin expanding 22 basis points to 4.6%. Diluted EPS was unchanged at $2.02, while Adjusted Diluted EPS increased 19.8% to $3.15. Total case volume rose 4.2% for the year, and independent restaurant case volume rose 4.4%.

The company repurchased $958 million^b of shares during 2024 and reported Net Debt of $4.9 billion, a Net Leverage Ratio of 2.8x. Fourth-quarter results were weaker on a GAAP basis. Net income was $66 million and diluted EPS was $0.28, down 52.5%, mainly due to a non-recurring $124 million pension termination settlement expense and an unfavorable year-over-year LIFO adjustment.

Adjusted EBITDA rose 13.7% to $441 million^c and Adjusted Diluted EPS rose 31.3% to $0.84. For fiscal 2025, the company guided to net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. It also outlined long-range targets through 2027 of a 5% sales CAGR, a 10% Adjusted EBITDA CAGR, and a 20% Adjusted Diluted EPS CAGR, and expects to generate more than $4 billion of cash flow under its new long-range plan.

02—Key points

Key Highlights

Full-year fiscal 2024 net sales rose 6.4% to a record $37.9 billion, and gross profit rose 6.3% to $6.5 billion.
Full-year Adjusted EBITDA grew 11.7% to a record $1.74 billion, with Adjusted EBITDA margin up 22 basis points to 4.6%.
Fourth-quarter GAAP net income was $66 million and diluted EPS was $0.28, down 52.5%, reflecting a $124 million non-recurring pension termination settlement expense.
Fourth-quarter Adjusted Diluted EPS rose 31.3% to $0.84, and full-year Adjusted Diluted EPS rose 19.8% to $3.15.
The company repurchased $958 million of shares in 2024, leaving about $75 million remaining under its $1 billion repurchase program at fiscal year-end.
Net Debt was $4.9 billion and the Net Leverage Ratio was 2.8x, unchanged from the prior year-end.
Fiscal 2025 guidance calls for net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%.

03—Questions

Frequently Asked Questions

What drove the decline in fourth-quarter GAAP earnings?
Fourth-quarter net income fell by $81 million to $66 million, due to a non-recurring pension termination settlement expense of $124 million and an unfavorable year-over-year LIFO adjustment. Adjusted EBITDA still increased 13.7% to $441 million.
What is the company's fiscal 2025 outlook?
The company expects net sales growth of 4% to 6%, Adjusted EBITDA growth of 8% to 12%, and Adjusted Diluted EPS growth of 17% to 23%. It does not reconcile these forward-looking non-GAAP measures to GAAP because it cannot predict with reasonable certainty the financial impact of certain significant items.
What are the company's longer-term targets?
Through 2027, the company is targeting a 5% sales CAGR, a 10% Adjusted EBITDA CAGR, and a 20% Adjusted Diluted EPS CAGR. It expects to generate more than $4 billion of cash flow under its new long-range plan.
How is the company using its cash?
In fiscal 2024, the company generated $1.17 billion of operating cash flow and spent $341 million on cash capital expenditures. It repurchased $958 million of shares and, after year-end, acquired Jake's Finer Foods, a Houston-based broadline distributor, for $92 million in cash. The company says it will continue to invest in the business, return capital to shareholders, and pursue tuck-in M&A.
What acquisition did the company complete after year-end?
After fiscal year-end, the company acquired Jake's Finer Foods, a broadline distributor in Houston, Texas, for $92 million. The business has more than $160 million in annual revenue across independent and multi-unit restaurants and will expand the company's presence in south Texas.

04—Continue

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