US Foods(USFD) - 2024 Q1 - Quarterly Results

Financial Performance - Net sales increased by 4.8% to $8.9 billion, driven by case volume growth and food cost inflation of 1.5%[3] - Total case volume increased by 4.2%, with independent restaurant case volume rising by 4.6%[3] - Gross profit rose by 4.9% to $1.5 billion, with gross profit as a percentage of net sales at 16.7%[4] - Adjusted EBITDA increased by 5.6% to $356 million, with an adjusted EBITDA margin of 4.0%[6] - Net income available to common shareholders was $82 million, an increase of $7 million compared to the prior year[6] - Adjusted net income for the period was $134 million, up 7.2% from $125 million year-over-year[36] - The company reported a diluted EPS of $0.33, compared to $0.32 in the prior year, marking a 3.1% increase[36] Operating Expenses and Cash Flow - Operating expenses increased by 7.4% to $1.3 billion, primarily due to higher distribution costs and labor costs[5] - Cash flow from operating activities was $139 million, a decrease of $140 million from the prior year[7] - Cash flows from operating activities for the period were $139 million, down from $279 million in the same quarter last year[33] Debt and Liabilities - Net Debt at the end of the quarter was $4.4 billion, with a Net Debt to Adjusted EBITDA ratio of 2.8x[8] - Total Debt as of March 30, 2024, is $4,701 million, a slight decrease from $4,810 million on April 1, 2023[40] - Net Debt as of March 30, 2024, is $4,434 million, compared to $4,518 million on April 1, 2023[40] - Total liabilities rose to $8,565 million, up from $8,438 million at the end of the previous year[28] Assets and Guidance - Total assets increased to $13,390 million as of March 30, 2024, compared to $13,187 million at the end of December 2023[28] - The company reaffirmed its Fiscal Year 2024 guidance, projecting net sales of $37.5 to $38.5 billion and adjusted EBITDA of $1.69 to $1.74 billion[15] Acquisitions and Costs - The company closed the acquisition of IWC Food Service for approximately $220 million, expanding its presence in the Nashville area[10] - The company incurred restructuring costs and asset impairment charges of $13 million during the quarter[36] - The company incurred acquisition and integration related costs of $3 million for the 13 weeks ended March 30, 2024[10] Financial Metrics - Adjusted EBITDA for the trailing twelve months is $1,578 million, up from $1,406 million for the same period last year[40] - The Net Leverage Ratio remains stable at 2.8 as of March 30, 2024, unchanged from December 30, 2023[40] - The company’s financial metrics indicate a positive trend in operational performance with a significant increase in Adjusted EBITDA year-over-year[40] Other Financial Information - The total cash, cash equivalents, and restricted cash as of March 30, 2024, is $267 million[40] - The CEO sign-on bonus was $3 million for the 13 weeks ended April 1, 2023[10] - Adjusted Diluted EPS is calculated using Adjusted net income divided by weighted average diluted shares outstanding[10] - The company’s income tax provision is adjusted for the tax effect of pre-tax items excluded from Adjusted net income[10]