US Foods Reports First Quarter Fiscal 2019 Earnings
ROSEMONT, Ill. (BUSINESS WIRE) May 7, 2019 – US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced results for the first quarter of fiscal 2019.
First Quarter Fiscal 2019 Highlights
Total case volume increased 1.4%; independent restaurant case volume increased 5.5%
Net sales increased 3.6% to $6.0 billion
Gross profit increased 6.0% to $1,052 million
Income before income taxes increased $28 million to $91 million
Net income increased $4 million to $71 million
Adjusted EBITDA increased 3.6% to $232 million
Diluted EPS increased 3.2% to $0.32; Adjusted Diluted EPS increased 5.7% to $0.37
“Our first quarter fiscal 2019 results were in line with our expectations,” said Chairman and CEO Pietro Satriano. “We accelerated case volumes across all customer types and are particularly pleased with our 5.5% organic independent restaurant case growth rate, our best quarter since third quarter fiscal 2016. We expanded our adjusted operating leverage per case for the 13th quarter in a row, resulting in Adjusted EBITDA growth of 3.6%. We remain favorable on the overall industry outlook and expect to deliver the full year fiscal 2019 guidance targets that we discussed on our fourth quarter call.”
First Quarter Fiscal 2019 Results
Total case volume increased 1.4% from the prior year while independent restaurant case volume increased 5.5%, all on an organic basis. Net sales of $6,031 million for the quarter increased 3.6% from the prior year, due to year-over-year inflation in poultry, produce and grocery items and an increase in case volume.
Gross profit of $1,052 million increased $60 million, or 6.0%, from the prior year, primarily driven by margin expansion initiatives, an increase in case volume and the favorable year-over-year change in the last-in, first-out (LIFO) reserve. Gross profit as a percentage of Net sales was 17.4%. Adjusted Gross profit was $1,050 million, a 3.9% increase from the prior year, driven by margin expansion initiatives and an increase in case volume. Adjusted Gross profit as a percentage of Net sales was 17.4%.
Operating expenses were $921 million, an increase of 3.6% from the prior year. The increase was driven by higher wage, distribution and acquisition-related costs, partially offset by the positive impact of expense control initiatives. Adjusted Operating expenses for the quarter were $820 million, a 3.8% increase from the prior year.
The following information was filed by Us Foods Holding Corp. (USFD) on Tuesday, May 7, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.