The Chefs’ Warehouse Reports Fourth Quarter 2020 Financial Results
Sequential quarter net sales grew 10.9%, or $27.6 million, to $281.7 million for Q4 2020
Ridgefield, CT, February 10, 2021 - The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or “Chefs’”), a premier distributor of specialty food products in the United States and Canada, today reported financial results for its fourth quarter ended December 25, 2020.
Financial highlights for the fourth quarter of 2020:
•Net sales decreased 34.0% to $281.7 million for the fourth quarter of 2020 from $426.5 million for the fourth quarter of 2019. On a sequential quarter basis, net sales grew 10.9% or $27.6 million compared to the third quarter of fiscal 2020.
•GAAP net loss was $37.1 million, or $(1.02) per diluted share, for the fourth quarter of 2020 compared to net income of $10.9 million, or $0.36 per diluted share, in the fourth quarter of 2019.
•Adjusted EPS1 was $(0.52) for the fourth quarter of 2020 compared to $0.39 for the fourth quarter of 2019.
•Adjusted EBITDA1 was $(10.5) million for the fourth quarter of 2020 compared to $28.2 million for the fourth quarter of 2019.
•The Company had approximately $193.6 million of cash and cash equivalents on the balance sheet and $38.6 million of availability on its asset-based loan facility as of February 5, 2021.
“October and November sales trends remained relatively steady at approximately 70% of prior year, on a fiscal comparison basis, as sequential growth in certain markets was offset by declining outdoor dining in the Northeast and colder-weather regions.” said Chris Pappas, Chairman and Chief Executive Officer of the Company. “Post-Thanksgiving, sales trended lower as in-door dining restrictions were re-instated in a number of key markets. December sales remained above 60% of 2019 as customers pivoted to more take-out and delivery and limited outdoor dining continued despite the change in season. Pent-up demand was evident in markets with more favorable weather and restaurant capacity allowances such as Florida and Texas and we continue to be encouraged by our customer acquisition trends. Our balance sheet and liquidity positions us for future growth as COVID-related conditions improve.”
The Company has reclassified its food processing costs, previously included in operating expenses, to cost of sales and has split its historical presentation of operating expenses between selling, general and administrative expenses and other operating expenses. These reclassifications have no impact on the Company’s net income, cash flows or EBITDA.
Transition of Trademarks
During the fourth quarter of fiscal 2020, the Company committed to a plan to shift its brand strategy to leverage its Allen Brothers brand in the west coast region and determined that its Del Monte, Ports Seafood and Bassian Farms trademarks did not fit its long-term strategic objectives. As a result, the Company recorded a $24.2 million non-cash charge to write-down the value of its Del Monte and Bassian Farms trademarks.
Fourth Quarter Fiscal 2020 Results
Net sales for the quarter ended December 25, 2020 decreased 34.0% to $281.7 million from $426.5 million for the quarter ended December 27, 2019. Organic sales declined $177.4 million, or 41.7% versus the prior year quarter. Sales growth of $32.6 million, or 7.7%, resulted from acquisitions. Organic case
1EBITDA, Adjusted EBITDA, adjusted net income (loss) and adjusted EPS are non-GAAP measures. Please see the schedules accompanying this earnings release for a reconciliation of EBITDA, Adjusted EBITDA, adjusted net income (loss) and adjusted EPS to these measures’ most directly comparable GAAP measure.
The following information was filed by Chefs' Warehouse, Inc. (CHEF) on Wednesday, February 10, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.