US Foods(US:USFD)2024-08-08 10:48Financial Performance - Net sales increased by 7.7% to $9.7 billion, driven by total case volume growth and food cost inflation of 2.9%[2] - Adjusted EBITDA reached a record $489 million, up 13.2% year-over-year, with an Adjusted EBITDA margin of 5.0%[5] - Net income rose by 8.8% to $198 million, with a net income margin of 2.0%[5] - Total case volume increased by 5.2%, with independent restaurant case volume growing by 5.7%[3] - Operating income for the 13 weeks ended June 29, 2024, was $353 million, compared to $322 million for the same period in 2023, indicating a growth of 9.6%[24] - Adjusted net income increased to $231 million, up $32 million or 16.1% from $199 million in the prior year[27] - Diluted EPS (GAAP) rose to $0.80, a $0.07 increase or 9.6% from $0.73 in the previous year[27] - Adjusted diluted EPS increased to $0.93, a rise of $0.14 or 17.7% from $0.79 year-over-year[27] - Net income for the 13 weeks ended June 29, 2024, was $198 million, an increase from $182 million in the prior year, representing an 8.8% growth[24] Expenses and Costs - Operating expenses increased by 6.6% to $1.4 billion, primarily due to higher distribution costs[4] - Operating expenses (GAAP) increased to $2,683 million, a 7% rise from $2,507 million in the same period last year[31] - Business transformation costs increased significantly to $9 million, up from $3 million, reflecting a 200.0% increase[27] - Business transformation costs for the period were $18 million, compared to $7 million in the prior year, indicating a 157.1% increase[31] Cash Flow and Assets - Cash flow from operating activities for the first half of fiscal year 2024 was $621 million, a decrease of $32 million from the prior year[6] - Total current assets increased to $4,334 million as of June 29, 2024, from $4,031 million at December 30, 2023[22] - Cash and cash equivalents increased to $405 million as of June 29, 2024, from $269 million at December 30, 2023[22] - Net cash provided by operating activities for the 26 weeks ended June 29, 2024, was $621 million, compared to $653 million for the same period in 2023[25] Debt and Leverage - The company repurchased $41 million of shares during the quarter and reduced net leverage to 2.6x[6] - Total debt as of June 29, 2024, was $4,707 million, with net debt at $1,635 million, resulting in a net leverage ratio of 2.6[34] Acquisitions and Guidance - The acquisition of IWC Food Service for approximately $220 million was completed, enhancing market presence in the Nashville area[8] - Fiscal Year 2024 guidance includes net sales of $37.5 to $38.5 billion and Adjusted EBITDA of $1.69 to $1.74 billion[10] - The company aims for a 5% CAGR in sales and a 20% CAGR in Adjusted Diluted EPS from 2025 to 2027[2] Inventory and Liabilities - The company reported a decrease in inventories to $1,593 million as of June 29, 2024, from $1,600 million at December 30, 2023[22] - Total liabilities rose to $8,692 million as of June 29, 2024, compared to $8,438 million at December 30, 2023[22] Shareholder Information - The weighted-average diluted shares outstanding increased to 248,312,117 for the 13 weeks ended June 29, 2024, from 250,991,512 for the same period in 2023[24] - The weighted-average diluted shares outstanding decreased to 248,312,117 from 250,991,512 year-over-year[27] - The weighted-average diluted shares outstanding decreased to 248,393,517 from 251,389,602 year-over-year[31]