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Jul 02, 2022

US Foods Q2 2022 Earnings Report

Announced results for the second quarter fiscal year 2022, showing increased net sales and adjusted EBITDA.

Key Takeaways

US Foods reported a 15.2% increase in net sales, reaching $8.8 billion, and a 10.8% increase in Adjusted EBITDA to $368 million. Diluted EPS was $0.27, while Adjusted Diluted EPS reached $0.67. The company reaffirms its 2022 guidance for Adjusted EBITDA and Adjusted Diluted EPS.

Net income available to common shareholders improved to $61 million.

Adjusted EBITDA increased 10.8% to $368 million.

Net sales increased 15.2% to $8.8 billion.

Total case volume and independent restaurant case volume were flat.

Total Revenue
$8.83B
Previous year: $7.66B
+15.2%
EPS
$0.67
Previous year: $0.58
+15.5%
Adjusted EBITDA
$368M
Previous year: $332M
+10.8%
Gross Profit
$1.38B
Previous year: $1.2B
+15.3%
Cash and Equivalents
$197M
Previous year: $699M
-71.8%
Free Cash Flow
$30M
Total Assets
$13B
Previous year: $13.1B
-0.2%

US Foods

US Foods

Forward Guidance

The Company reaffirms its 2022 guidance.

Positive Outlook

  • Adjusted EBITDA of $1.2-$1.3 billion, with continued confidence toward the higher end of the Adjusted EBITDA range
  • Adjusted Diluted EPS of $1.95-$2.25
  • Cash capital expenditures of $280-$300 million with fleet capital leases to be an additional ~ $110 million
  • Net Debt to Adjusted EBITDA leverage of approximately 3.5x by end of fiscal year 2022

Challenges Ahead

  • The company is adjusting the outlook for interest expense in 2022 and now expects it to be $245-$255 million as a result of the Federal Reserve's interest rate increases.