US Foods Holding Corporation (NYSE:USFD) Q2 2023 Earnings Conference Call August 10, 2023 10:00 AM ET Company Participants Adam Dabrowski - Director, Investor Relations David Flitman - Chief Executive Officer and Director Dirk Locascio - Executive Vice President and Chief Financial Officer Conference Call Participants Mark Carden - UBS Edward Kelly - Wells Fargo Brian Harbour - Morgan Stanley Jeffrey Bernstein - Barclays Kelly Bania - BMO Capital Markets John Heinbockel - Guggenheim Securities John Ivan ...

US Foods Holding Corporation (NYSE:USFD) Q1 2023 Earnings Conference Call May 11, 2023 10:00 AM ET Company Participants David Flitman - Chief Executive Officer and Director Dirk Locascio - Executive Vice President and Chief Financial Officer Adam Dabrowski - Director, Investor Relations Conference Call Participants Brian Harbour - Morgan Stanley John Ivankoe - JPMorgan Chase & Co. Kelly Bania - BMO Capital Markets Lauren Silberman - Crédit Suisse Jake Bartlett - Truist Securities Jeffrey Bernstein - Barclay ...

Financial Performance - In fiscal year 2022, total net sales reached $34.057 billion, an increase from $29.487 billion in 2021, representing a growth of approximately 15%[34] - Net sales for fiscal year 2022 reached $34,070 million, an increase of $4,570 million or 15.5% compared to the previous year, primarily driven by inflation across multiple product categories[154] - Gross profit increased by $837 million, or 18.0%, to $5,492 million in fiscal year 2022, with a gross profit margin of 16.1% compared to 15.8% in fiscal year 2021[155] - Operating income for fiscal year 2022 was $594 million, with an operating income margin of 1.7%, up from 1.4% in 2021[167] - Net income available to common shareholders was $228 million, resulting in a diluted net income per share of $1.01, compared to $0.54 in 2021[167] - Adjusted EBITDA for fiscal year 2022 was $1,310 million, reflecting an adjusted EBITDA margin of 3.8%, compared to 3.6% in 2021[167] - Free cash flow for fiscal year 2022 was $500 million, significantly up from $145 million in 2021[167] - Net income was $265 million in fiscal year 2022, compared to $164 million in fiscal year 2021, reflecting a significant increase in profitability[176] Sales and Customer Base - Sales to the top 50 customers accounted for approximately 43% of total net sales in fiscal year 2022, with no single customer representing more than 3%[23] - Group purchasing organizations (GPOs) contributed approximately 21% of net sales in fiscal year 2022, primarily from healthcare, hospitality, education, and government sectors[24] - Approximately 80% of customers utilize the company's e-commerce solutions, which enhance purchasing frequency and strengthen commercial relationships[28] - The product mix for fiscal year 2022 included $12.375 billion in meats and seafood, $5.758 billion in dry grocery products, and $3.564 billion in dairy[34] - Total case volume increased by 1.7% in fiscal year 2022, with independent restaurant case volume rising by 4.3%[154] Operational Insights - The company operates approximately 250,000 customer locations nationwide, including independent and chain restaurants, healthcare, hospitality, and educational institutions[20] - The company operates 70 distribution facilities totaling over 19 million square feet, with 72% owned and 28% leased[135] - The company has implemented cost savings initiatives, including routing improvements and new warehouse process enhancements, to offset rising operating expenses[156] Employee and Labor Relations - As of December 31, 2022, the company employed approximately 29,000 associates, with 21% covered by collective bargaining agreements[48] - Approximately 70% of associates were non-exempt, paid on an hourly basis, and 86% worked in field-based roles[51] - In fiscal year 2022, 12 collective bargaining agreements covering about 1,100 union associates were renegotiated, and 14 agreements covering approximately 1,200 union associates are set for renegotiation in fiscal year 2023[48] - The company is committed to diversity and inclusion, focusing on creating an inclusive work environment and investing in diverse talent pipelines[51] Risks and Challenges - The company is subject to various risks, including economic downturns and supply chain disruptions, which may adversely affect financial performance[65] - The company experienced significantly elevated commodity and supply chain costs in 2022, with ongoing inflation expected to continue into 2023[66] - Changes in consumer eating habits, such as a decline in dining out, could reduce demand for the company's products[77] - Competition in the U.S. foodservice distribution industry is intense, with low switching costs for customers, which may lead to loss of business[67] - The company may face challenges in maintaining relationships with customers and GPOs, as agreements are generally terminable upon advance written notice[72] Financial Obligations and Debt - The company had $4.9 billion of indebtedness outstanding as of December 31, 2022[100] - Approximately 42% of the net principal amount of the company's indebtedness accrued interest at variable rates as of December 31, 2022[107] - The company is subject to various financial covenants under its debt agreements, which may restrict its operational flexibility[104] - The company may face increased costs in servicing its debt due to the transition from U.S. dollar LIBOR to the Secured Overnight Financing Rate (SOFR)[108] Strategic Initiatives - The GREAT FOOD. MADE EASY.™ strategy emphasizes product innovation and customer service, targeting independent restaurants, healthcare, and hospitality sectors[30] - The company aims to leverage technology to enhance customer relationships and streamline operations, focusing on e-commerce and data analytics[28] - The company aims to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 32.5% by 2032 from a 2019 base year, contingent on technological advancements[81] Legal and Compliance - The company may incur significant costs related to legal proceedings, which could materially affect its financial condition and operations[128] - The company is subject to oversight by the Department of Labor's Office of Federal Contract Compliance Programs, which could result in penalties or sanctions if compliance failures are found[99] - The company may face increased compliance costs and financial obligations due to changes in legal or regulatory requirements[83] Insurance and Liability - The company maintains insurance for health and safety risks, but there is no assurance that it will provide adequate coverage against all potential claims[127] - The company may experience product liability claims, and it believes it has sufficient liability insurance to cover such claims[89] - Negative publicity from product recalls or food-borne illnesses could adversely impact the company's reputation and financial condition[90] Acquisitions - The company completed the acquisition of Smart Foodservice for $972 million in April 2020, expanding its cash-and-carry store presence[31] - The company completed the acquisition of Smart Foodservice in April 2020, significantly expanding its cash and carry business in the West and Northwest parts of the U.S.[119]

US Foods Holding Corp. (NYSE:USFD) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET Company Participants Adam Dabrowski - Director, Investor Relations Dave Flitman - Chief Executive Officer Andrew Iacobucci - Chief Transition Officer Dirk Locascio - Chief Financial Officer Conference Call Participants John Heinbockel - Guggenheim Securities Jeffrey Bernstein - Barclays Mark Carden - UBS Alex Slagle - Jefferies John Ivankoe - JPMorgan Kelly Bania - BMO Capital Brian Harbour - Morgan Stanley Edw ...

Financial Performance - Net sales grew by 11% to $8515 million in Q4 2022 and 15% to $34057 million for the full year[9] - Adjusted EBITDA increased by 34% to $350 million in Q4 2022 and 24% to $1310 million for the full year[9] - Adjusted EBITDA margin expanded by 70 bps to 41% in Q4 2022 and 20 bps to 38% for the full year[9] - Adjusted Diluted EPS grew by 45% to $055 in Q4 2022 and 38% to $214 for the full year[9] Capital Allocation and Debt Management - Net leverage reduced to 35x, down 11x compared to the prior year[6] - The company pre-paid $200 million of debt and extended ABL revolver maturity[6] - Share repurchases amounted to $14 million in Q4 2022 and $17 million in January 2023[6] Operational Efficiency and Growth - Total organic case volume increased by 26% and IND (Independent) organic case volume increased by 58% in Q4 2022[9] - The company exceeded 15x restaurant market growth in 2022[7] - Six CHEF'STOREs were opened in 2022, with plans to accelerate growth with 8+ openings in 2023[7] Fiscal Year 2023 Guidance - The company expects restaurant volume to grow ~15x market and all other volume to grow ~1x market[12] - Adjusted EBITDA is projected to be between $145 billion and $151 billion[12] - Adjusted Diluted EPS is expected to be between $245 and $265, assuming ~250 million shares outstanding[12]

US Foods Holding Corp. (NYSE:USFD) Q3 2022 Earnings Conference Call November 10, 2022 10:00 AM ET Company Participants Adam Dabrowski - Investor Relations Andrew Iacobucci - Chief Executive Officer Dirk Locascio - Chief Financial Officer Robert Dutkowsky - Executive Chair Conference Call Participants Jake Bartlett - Truist Securities Nicole Miller - Piper Sandler John Heinbockel - Guggenheim Partners Edward Kelly - Wells Fargo Lauren Silberman - Credit Suisse Jeffrey Bernstein - Barclays Mark Carden - UBS K ...

Financial Data and Key Metrics Changes - Net sales for Q2 2022 grew by 15% year-over-year, reaching $8.8 billion [10][35] - Adjusted EBITDA increased by 11% to $368 million, marking the best quarter relative to 2019 since the pandemic began [34][35] - Adjusted diluted EPS rose to $0.67 [35] - Total case volume was flat compared to the prior year, with food cost inflation at 15% [35] Business Line Data and Key Metrics Changes - Independent case volume was flat year-over-year after a significant growth of nearly 80% in the prior year [38] - Hospitality experienced a 35% growth, while Healthcare grew by 2.4% [38] - Chain volume declined by 8.7%, influenced by strategic exits of lower-margin accounts [38][67] Market Data and Key Metrics Changes - Total case volume in Q2 2022 was approximately 6% below 2019 levels, showing a 200 basis point improvement from Q1 [40] - Independent case growth was 4% above 2019, while Healthcare cases were about 7% below and Hospitality was approximately 15% below 2019 [40] Company Strategy and Development Direction - The company is focused on executing its long-range plan, which includes profitable share gains, margin expansion, and operational efficiency improvements [31][30] - US Foods is investing in enhancing customer experience through digital tools and expanding its CHEF'STORE footprint [12][13] - The company aims to reduce its environmental footprint with a goal to cut greenhouse gas emissions by 32.5% by 2032 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenging macro environment, including inflation and labor market issues [9][24] - The company is optimistic about the recovery of Healthcare and Hospitality sectors, which are expected to contribute to top-line growth [24][46] - Management reaffirmed guidance for 2022 fiscal adjusted EBITDA and adjusted diluted EPS, despite anticipating higher interest expenses [48] Other Important Information - The company is committed to reducing turnover and improving employee retention through various initiatives, including flexible shift lengths and leadership training [41][74] - US Foods is strategically exiting lower-margin accounts to focus on more profitable customer types [67] Q&A Session Summary Question: Independent case growth acceleration - Management noted that independent restaurant growth is driven by a balanced mix of increasing penetration with existing customers and new customer acquisition, with no significant change in customer behavior trends [55][56] Question: Impact of exiting lower-margin accounts - Management explained that the decision to exit lower-margin accounts is part of a strategy to focus on profitable growth, and they expect case volume to improve in the second half of the year [62][67] Question: Labor turnover and efficiency improvements - Management discussed efforts to reduce turnover through flexible shift lengths and leadership training, emphasizing the importance of strong leadership in retaining employees [74][75] Question: Seasonality in the restaurant industry - Management acknowledged a return to some normalcy in business rhythms but noted that it is still difficult to declare a definitive trend due to ongoing volatility [76][77] Question: Food cost inflation expectations - Management indicated that while food cost inflation has slowed, they do not expect deflation in the near term and are actively managing inflation impacts on demand [78][79] Question: Strategic vendor management - Management expressed confidence in the progress of strategic vendor management initiatives, highlighting productive conversations that have led to mutual wins [100][103]

Q2 Fiscal Year 2022 Results August 11, 2022 Disclaimer Page Cautionary Statements Regarding Forward-Looking Information Statements in this presentation which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive," "more," "goal," ...

US Foods Holding Corp (NYSE:USFD) Q1 2022 Earnings Conference Call May 12, 2022 10:00 AM ET Company Participants Snehal Shah - Senior Director of Investor Relations Bob Dutkowsky - Executive Chairman Dirk Locascio - CFO Andrew Iacobucci - Interim CEO Bill Hancock - Executive VP and Chief Supply Chain Officer Conference Call Participants Lauren Silberman - Credit Suisse Edward Kelly - Wells Fargo Jake Bartlett - Truist Securities Alex Slagle - Jefferies Nicole Miller - Piper Sandler Jeffrey Bernstein - Barcl ...

Q1 2022 Financial Performance - Net sales increased to $78 billion, a 239% increase compared to Q1 2021[11] - Total case volume increased by 4%[11] - Independent restaurant (IND) case volume increased by 9%[11] - Adjusted EBITDA grew by 40% to $241 million[11] - Adjusted Diluted EPS was $036, a 200% increase[11] - Adjusted Gross profit increased to $1267 billion, a 237% increase[38] - Adjusted Operating expenses increased to $1032 billion, a 201% increase[38] Debt and Leverage - Total debt decreased to $4993 billion from $5738 billion in Q1 2021[14] - Net debt was $4803 billion[14] - Net Leverage Ratio reduced to 43x from 75x in Q1 2021[14] Long-Range Plan (LRP) - The company aims to grow profitable market share by approximately $290 million in Adj EBITDA growth[20] - The company aims to further optimize gross margins by approximately $325 million in Adj EBITDA growth[25] - The company aims to improve operational efficiencies by approximately $235 million in Adj EBITDA growth[30]