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Dec 28, 2019
US Foods Q4 2019 Earnings Report
US Foods' performance was marked by a 14.8% increase in net sales, driven by the Food Group acquisition and inflation, alongside a 12.8% rise in adjusted EBITDA, despite a decrease in net income.
Key Takeaways
US Foods reported a 14.8% increase in net sales to $6.9 billion and a 12.8% increase in Adjusted EBITDA to $335 million for the fourth quarter of 2019. However, net income decreased by $8 million to $92 million. The results were significantly influenced by the acquisition of the Food Group and inflation in various product categories.
Total case volume increased by 12.3%, with organic growth of 0.4%.
Independent restaurant case volume increased by 11.9%, with organic growth of 2.9%.
Net sales reached $6.9 billion, a 14.8% increase, with the Food Group contributing $711 million.
Adjusted EBITDA increased by 12.8% to $335 million, while organic Adjusted EBITDA grew by 6.7%.
Forward Guidance
For fiscal year 2020, the company expects total case volume growth of 9-11%, Adjusted EBITDA growth of 12-15% and Adjusted Diluted EPS of $2.70-$2.80. The company also expects total organic case volume growth of 2-3% and organic Adjusted EBITDA growth of 6-8%.
Positive Outlook
- Total case volume growth of 9-11%
- Adjusted EBITDA growth of 12-15%
- Adjusted Diluted EPS of $2.70-$2.80
- Total organic case volume growth of 2-3%
- Organic Adjusted EBITDA growth of 6-8%
Challenges Ahead
- Cash capital expenditures of $325-$335 million
- Fleet capital leases are expected to be approximately $80 million
- Interest expense is expected to be $210-$220 million
- Depreciation expense is expected to be $330-$340 million
Historical Earnings Impact
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