US Foods is one of the USA’s leading distributors. With nearly $19 billion in annual revenue, US Foods is the 10th largest private company in America. Many of the entities that make up US Foods were founded in the 19th century, including one that sold provisions to travelers heading west during the 1850s gold rush. The company had used the name U.S. Foodservice since 1993. US Foods offers more than 350,000 national brand products and its own “exclusive brand” items, ranging from fresh meats and produce to prepared and frozen foods. The company employs approximately 25,000 people in more than 60 locations nationwide, and provides food and related products to more than 250,000 customers, including independent and multi-unit restaurants, healthcare and hospitality entities, government and educational institutions. The company is headquartered in Rosemont, Illinois, and jointly owned by funds managed by Clayton, Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co.In October 2011, the company launched a new brand identity reflecting its strategic focus on creating a better food offering and an easier service experience for customers. Since, US Foods has introduced more innovative products, exclusive brands and specialized services to help drive customer growth. The company’s new tagline is “Keeping Kitchens Cooking”.On 9th December, 2013, Sysco Corp announced it would buy US Foods for $8.2 billion . Wikipedia.
News Article | May 17, 2017
ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods Holding Corp. (NYSE:USFD) today announced the closing of the underwritten secondary public offering of 46,000,000 shares of common stock by investment funds associated with Clayton, Dubilier & Rice, LLC and Kohlberg Kravis Roberts & Co. L.P. and certain members of management and the board of directors (collectively, the “Selling Stockholders”) at a price to the public of $28.25 per share for a total offering size of $1,299,500,000. The offering included the exercise in full of the underwriters’ option to purchase an additional 6,000,000 shares of common stock. US Foods did not sell any stock in this transaction and did not receive any proceeds from the sale of the shares of common stock by the Selling Stockholders. Goldman Sachs & Co. LLC, Morgan Stanley and J.P. Morgan acted as joint book-running managers for the offering and the representatives of the underwriters. BofA Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank Securities, Wells Fargo Securities and KKR Capital Markets also served as joint book-running managers for the offering and BMO Capital Markets, BTIG, Guggenheim Securities, ING, Rabo Securities and Natixis served as co-managers for the offering. A registration statement, including a prospectus, on Form S-1 relating to the offering was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on May 11, 2017. Copies of the prospectus related to the offering may be obtained from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone toll-free at 1-866-471-2526 or by email at firstname.lastname@example.org; from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; or from J.P. Morgan Securities LLC, Attention: Prospectus Department c/o Broadridge Financial Solutions, Long Island Avenue, Edgewood, NY, 11717, by telephone toll-free at 1-866-803-9204. The registration statement is available on the SEC’s website at www.sec.gov under the US Foods’ name. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 chefs, restaurants and foodservice operators to help their businesses succeed. With nearly 25,000 employees and more than 60 locations, US Foods provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, IL, and generates approximately $23 billion in annual revenue.
News Article | May 21, 2017
Undercurrent News is in Chicago this week to bring you seafood news from the annual National Restaurant Association's gathering of the restaurant, foodservice and hospitality industry. Reporter Ola Wietecha is reporting live from the show where thousands of exhibitors are showcasing their wares to an estimated 42,000 buyers. Major seafood suppliers present at this year's show include the Acme Smoked Fish Company, Australis Aquaculture, Cannon Fish and several others. Representatives of big seafood customers, such as distributors Sysco Corporation and US Foods as well as chains like Red Lobster and Captain D's Seafood Restaurant are also present talking to their vendors.
News Article | May 15, 2017
DALLAS--(BUSINESS WIRE)--LoneStar Restaurant Supply, a division of ABC Hotel and Restaurant Supply, Inc., announced the promotion of Drew Mallett to Corporate Chef and appointment of industry veteran Ken Harrison as Business Development Manager. Drew Mallett is based out of the South Central Region of Texas and brings a unique combination of corporate and culinary experience. He is no stranger to kitchen operations in a variety of environments, from fine dining to private clubs to corporate dining. Mallett previously served as Business Development Manager and will continue to drive existing and new sales opportunities, but will focus on culinary trends and strategies to better serve a niche market from a culinary perspective. He is a graduate of Pennsylvania Culinary Institute and Le Cordon Bleu College of Culinary Arts. Ken Harrison will drive existing and new sales opportunities in the South Central Region of Texas. He will work closely with LoneStar’s sales and marketing teams, as well as customers, dealers and distributor networks. In his 25+ years of foodservice sales experience, Harrison has held sales management positions and has worked for some of the largest food manufacturers in the world, including Coca-Cola, Procter & Gamble, Quaker Oats and Sara Lee, and has managed and sold products through broad line distributors like Sysco, US Foods and Ben E Keith. “Drew and Ken bring tremendous experience to these roles,” said Darren Anderson, President and COO of ABC Hotel and Restaurant Supply, Inc. “Their industry knowledge and experience will help ensure that we remain a cutting edge industry leader in the foodservice industry.” LoneStar will be participating as a sponsor for Taste Addison that will take place May 19-21. The event will take place at Addison Circle Park located at 4970 Addison Circle Dr., Addison, TX 75001. Over the course of the weekend, it is expected to be over 50,000 attendees. Headquartered in Austin, Texas, LoneStar is one of several private equity backed brands under the ABCHRS, Inc. banner that are changing the way restaurant operators manage their equipment and smallwares supply chain. LoneStar offers solutions for new restaurant construction, remodels, conversions, roll outs and replenishment as well as special logistics services. Visit our website at www.lonestarrs.com.
News Article | April 24, 2017
ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods today announced that it has agreed to acquire FirstClass Foods, a privately owned meat manufacturing company based in Hawthorne, Calif. with nearly $55 million in annual sales. FirstClass Foods has been delivering high quality center of the plate products to customers throughout Southern California since 1962. The company specializes in custom processing and portion control cuts of beef, pork, lamb, veal, poultry, seafood and specialty products. “US Foo
News Article | May 8, 2017
HOUSTON, May 08, 2017 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) today announced financial results for its 13-week third fiscal quarter ended April 1, 2017.¹ “I am very pleased with our third quarter performance,” said Bill DeLaney, Sysco’s chief executive officer. “We saw solid operating income growth, driven by strong local case growth and effective expense management. We are making continued progress on our strategic multi-year initiatives, which provide a platform for ongoing value creation for our customers, associates and shareholders. Going forward, we remain focused on growing our business in a disciplined, profitable manner and are confident in our ability to achieve our three-year plan financial objectives.” Sales for the third quarter were $9.2 billion, an increase of 2.2% compared to the same period last year. Gross profit increased 4.0% to $1.8 billion; gross margin increased 35 basis points to 19.89%. Operating expenses increased $25 million, or 2.2%, compared to the same period last year. Adjusted operating expenses increased $26 million, or 2.3%, compared to the same period last year. Operating income was $689 million, an increase of $46 million, or 7.1%, compared to the same period last year. Adjusted operating income was $689 million, an increase of $45 million, or 7.0%, compared to the same period last year. Local case volume within U.S. Broadline operations grew 3.5% for the third quarter. Total case volume grew 1.8%. Sales for the third quarter were $2.5 billion, compared to $1.3 billion in the same period last year. Operating income was $16 million, a decrease of $17 million, compared to the same period last year. Adjusted operating income was $40 million, an increase of $7 million, compared to the same period last year. The improvement in both sales and adjusted operating income is primarily attributable to the Brakes Group acquisition. Sales for the first 39 weeks of fiscal 2017 were $27.8 billion, an increase of 0.8% compared to the same period last year. Gross profit increased 4.0% to $5.6 billion; gross margin increased 61 basis points to 20.04%. Operating expenses increased $53 million, or 1.6%, compared to the same period last year. Adjusted operating expenses increased $54 million, or 1.6%, compared to the same period last year. Operating income was $2.1 billion, an increase of $161 million, or 8.2%, compared to the same period last year. Adjusted operating income was $2.1 billion, an increase of $159 million, or 8.1%, compared to the same period last year. Local case volume within U.S. Broadline operations grew 2.4% for the first 39 weeks of fiscal 2017. Total case volume grew 1.2%. Sales for the first 39 weeks of fiscal 2017 were $7.9 billion, compared to $3.9 billion in the same period last year. Operating income was $180 million, an increase of $53 million, compared to the same period last year. Adjusted operating income was $254 million, an increase of $125 million, compared to the same period last year. The significant improvement in both sales and operating income is primarily attributable to the Brakes Group acquisition. Capital expenditures, net of proceeds from sales of plant and equipment, totaled $395 million for the first 39 weeks of fiscal 2017, which was $46 million higher compared to the same period last year. Cash flow from operations was $1.0 billion for the first 39 weeks of fiscal 2017, which was $36 million higher compared to the same period last year. Free cash flow for the first 39 weeks of fiscal 2017 was $630 million, which was $11 million lower compared to the same period last year. These changes are largely due to improved business performance, improved working capital and favorable year-over-year comparisons due to the US Foods termination payment last year, offset by higher cash taxes from deductions related to the US Foods settlement and a deferral from flood relief. Sysco will host a conference call to review the Company’s third quarter fiscal 2017 financial results on Monday, May 8, 2017, at 10:00 a.m. Eastern. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com. ¹Financial comparisons presented in this release are compared to the same period in the prior year. Earnings Per Share (EPS) and Adjusted EPS are shown on a diluted basis unless otherwise specified. Adjusted financial results exclude certain items, which primarily include restructuring and merger-related costs. A reconciliation of non-GAAP measures is included in this release. Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. The company operates over 200 distribution facilities serving approximately 425,000 customers. For fiscal year 2016 that ended July 2, 2016, the company generated sales of more than $50 billion. Subsequent to fiscal year 2016, the company completed the acquisition of the Brakes Group, a leading European foodservice distributor with operations in the United Kingdom, Ireland, France, Sweden, Spain, Belgium and Luxembourg. For more information, visit www.sysco.com or connect with Sysco on Facebook at www.facebook.com/SyscoCorporation or Twitter at https://twitter.com/Sysco. For important news and information regarding Sysco, visit the Investor Relations section of the company's Internet home page at www.investors.sysco.com, which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. Investors should also follow us at www.twitter.com/SyscoStock and download the Sysco IR App, available on the iTunes App Store and the Google Play Market. In addition, investors should continue to review our news releases and filings with the Securities and Exchange Commission. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information. Statements made in this news release or in our earnings call for the third quarter of fiscal 2017 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. These statements include our outlook for fiscal 2017 and the future, our plans and expectations related to our three-year financial objectives, and the key levers for realizing these goals, expectations regarding gross profit growth and improved margins, our beliefs regarding the impact of productivity initiatives on our supply chain, our beliefs regarding opportunities and performance in our international business in Canada, Latin America and Europe, which includes our Brakes Group business, statements regarding progress on the Brakes Group’s transformational efforts, expectations regarding the continuation of accelerated depreciation related to our revised business technology strategy, expectations regarding the benefits to be obtained from integrating our Ireland businesses, anticipated capital expenditures, and expectations regarding deflation and inflation trends. The success of our plans and expectations regarding our operating performance, including expectations regarding our three-year financial objectives, are subject to the general risks associated with our business, including the risks of interruption of supplies due to lack of long-term contracts, severe weather, crop conditions, work stoppages, intense competition, technology disruptions, dependence on large regional and national customers, inflation risks, the impact of fuel prices, adverse publicity, and labor issues. Risks and uncertainties also include risks impacting the economy generally, including the risks that the current general economic conditions will deteriorate, or consumer confidence in the economy or consumer spending, particularly on food-away-from-home, may decline. Market conditions may not improve. If sales from our locally managed customers do not grow at the same rate as sales from regional and national customers, our gross margins may decline. Our ability to meet our long-term strategic objectives depends largely on the success of our various business initiatives, including efforts related to revenue management, expense management, our digital e-commerce strategy and any efforts related to restructuring or the reduction of administrative costs. There are various risks related to these efforts, including the risk that these efforts may not provide the expected benefits in our anticipated time frame, if at all, and may prove costlier than expected; the risk that the actual costs of any initiatives may be greater or less than currently expected; and the risk of adverse effects to our business, results of operations and liquidity if past and future undertakings, and the associated changes to our business, do not prove to be cost effective or do not result in the cost savings and other benefits at the levels that we anticipate. Our plans related to and the timing of any initiatives are subject to change at any time based on management’s subjective evaluation of our overall business needs. If we are unable to realize the anticipated benefits from our efforts, we could become cost disadvantaged in the marketplace, and our competitiveness and our profitability could decrease. Capital expenditures may vary based on changes in business plans and other factors, including risks related to the implementation of various initiatives, the timing and successful completion of acquisitions, construction schedules and the possibility that other cash requirements could result in delays or cancellations of capital spending. Periods of high inflation, either overall or in certain product categories, can have a negative impact on us and our customers, as high food costs can reduce consumer spending in the food-away-from-home market, and may negatively impact our sales, gross profit, operating income and earnings, and periods of deflation can be difficult to manage effectively. Fluctuations in inflation and deflation, as well as fluctuations in the value of foreign currencies, are beyond our control and subject to broader market forces. Expanding into international markets presents unique challenges and risks, including compliance with local laws, regulations and customs and the impact of local political and economic conditions, including the impact of Brexit, and such expansion efforts, including our Brakes acquisition, may not be successful. Any business that we acquire, including the Brakes transaction, may not perform as expected, and we may not realize the anticipated benefits of our acquisitions. The Brakes Group acquisition will require a significant commitment of time and company resources, and realizing the anticipated benefits from the transaction may take longer than expected. Expectations regarding the financial statement impact of any acquisitions may change based on management’s subjective evaluation. For a discussion of additional factors impacting Sysco’s business, see the company’s Annual Report on Form 10-K for the year ended July 2, 2016, as filed with the Securities and Exchange Commission, and the company’s subsequent filings with the SEC. Sysco does not undertake to update its forward-looking statements, except as required by applicable law.
News Article | May 18, 2017
EnterWorks, a leading provider of Master Data Management (MDM) and Product Information Management (PIM) solutions, today offers a single view of content essential for companies such as US Foods, Restoration Hardware, and Publishers Clearing House, to tailor data for specific audiences and create personalized commerce experiences. However, at the time of its 1998 founding, its mission was bringing together physical and digital intelligence assets and information from a variety of national level command, control, communications and intelligence sources. It applied the “Pangaea” hypothesis of the globe, i.e., the idea of a singular supercontinent, to a centralized and singular view of global, unstructured data. This virtual data model technology enabled secure, unified and role-based views of heterogeneous intelligence via EnterWorks’ Master Data Management (MDM) and portal technologies. By providing the intelligence community with simultaneous access and a single virtual database that unified disparate and heterogeneous repositories, EnterWorks achieved a singular breakthrough in compiling data on emerging global trends and threats. The unique EnterWorks solution was marketed initially as Pangaea, a Virtual Data Base platform of unified, heterogeneous data bases comprised of real-time cataloging and process automation in e-marketplaces and information portals. Customers at that time included IBM/Tivoli, Boeing, the Defense Department, as well as certain intelligence community entities. “The launch of EnterWorks as a ‘mass storage prototype,’ (MSP) created a virtual data base providing a unified view of information from legacy intelligence systems and other relevant sources,” said Rick Chavie, CEO of EnterWorks. “As it evolved to a commercial market application today, this unique technology architecture of brings disparate data together for real-time correlative queries and conversions into structured information that takes the form of easily consumed content.” According to Chavie, the MSP implementation leveraged an intuitive web interface that was ahead of its time in its application of user friendly, technology to access federated views with less training than required of a full functionality client interface. So much so that the portal capabilities providing this access received an award for innovation from the Smithsonian. John Jones, the Vice President who leads Research and Development for EnterWorks and has an intelligence background, has been with the organization since it launched in 1998. He adds: “Government Agencies needed a solution for tying multiple systems and sources to one unified view and model for reports. At the time, it took weeks if not months to generate needed reports. Through Pangea, aka the EnterWorks platform, we were able to achieve same day turnaround.” In the early 2000s, EnterWorks branched out from the public sector and engaged consumer, manufacturing, and banking firms as a critical means to supply unified product information and data management. According to Jones, the solution’s ability to centralize product information, such as dimensions, color, size, price, and materials was well aligned with the growth of ecommerce as well as increasing customization of products to serve individual customer communities. What emerged was a technology that could serve complex, global and regional companies in consumer goods, food, medical, technology, office products, equipment, fashion and services. Chavie adds: “The history of EnterWorks is intriguing. It is fascinating that a platform that started out as a critical data repository for intelligence agencies now applies its unique virtual views of content to store nutritional information, safety regulations, styling details, or variants for configurable manufactured items. Instead of intelligence analysts, we now enable the work of merchants, marketers, ecommerce users, logisticians, dealers and stores, among others.” About EnterWorks Holding Company EnterWorks® Master Data Management (MDM) and Product Information Management (PIM) solution enables companies to acquire, manage and transform product information into persuasive content that drives higher sales and new competitive strengths through e-commerce Web, mobile, print and various electronic channels. Services offered include: Master Data Management, Product Information Management, Dynamic Data Modeling, Workflow & Collaboration, Syndication & Publishing, Digital Asset Management, Geographic Localization, Portal Content Exchange, and Digital Channel Accelerators. EnterWorks is highly ranked by Gartner, Forrester and Ventana Research and used by industry leaders such as: EnterWorks customers include: Ariens, Big Rock Sports, CPO Commerce, Creative Converting, Darigold, Fender Musical Instruments, Guthy-Renker, Hearth & Home Technologies, HON Furniture, HP Hood, Interline Brands, Johnstone Supply, Mary Kay, Mercer, Orgill, Publishers Clearing House, Restoration Hardware, Strategic Market Alliance, US Foods, and W.B. Mason. Learn more at http://www.enterworks.com.
News Article | May 10, 2017
“Our team’s strong execution enabled us to generate industry-leading case growth and solid gross-profit dollar improvement in the quarter,” said George Holm, PFG’s President and Chief Executive Officer. “The results were driven by increased branded product penetration, selling into a more profitable mix of channels and strong operating expense control. We are pleased with the growth in sales and profitability across each of our business segments. Our strategic investments are paying dividends, and we expect continued business momentum in our fiscal fourth quarter and beyond.” 1 This earnings release includes several metrics, including EBITDA, Adjusted EBITDA and Adjusted Diluted Earnings per Share that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. (“GAAP”). Please see Statement Regarding Non-GAAP Financial Measures at the end of this release for definitions of such non-GAAP financial measures and reconciliations of such non-GAAP financial measures to their respective most comparable financial measures calculated in accordance with GAAP. Total case volume increased 7.7% in the third quarter of fiscal 2017 compared to the prior year, with underlying organic total case volume growth of 5.9%. Total case volume was driven by a 7.0% increase in independent cases, strong growth in Performance Brands and broad-based growth in Vistar’s sales channels. Net sales for the third quarter of fiscal 2017 were $4.2 billion, an increase of 8.3% versus the comparable prior year period, outpacing total case growth due to a favorable shift in product and customer mix. Overall food cost was essentially flat in the third quarter versus the prior year-ago quarter. Gross-profit dollar growth of 8.4% outperformed sales growth as the company sold a more profitable mix of channels and products, specifically to the independent channel. Operating expenses increased 7.1% in the third quarter of fiscal 2017 compared to the prior year period, to $474.7 million. The increase reflected the cost to support current growth in case volume, as well as the cost of strategic investments to drive growth associated with expansion of geographies served in the dollar store channel and the opening of an automated retail facility within Vistar. Operating expenses grew slower than case and sales growth during the quarter, which led to solid operating leverage in the business. Professional and legal expenses were down versus the prior year quarter and the company expects these expenses to continue to normalize in the fourth quarter. Operating profit was up 24.2% driven by the 8.4% increase in gross profit and leveraging of operating expenses. Net income increased 121.3% to $20.8 million for the third quarter of 2017 compared to the prior year period, driven by a higher operating profit and a decrease in interest expense, partially offset by increased taxes. For the quarter, the income tax rate decreased 260 basis points to 36.8%. The decrease in the tax rate was primarily a result of an increase in permanent deductions related to the adoption of a new accounting standard related to stock-based compensation. Diluted EPS increased 122.2% in the third quarter of fiscal 2017 over the prior year period, to $0.20. Adjusted diluted EPS increased 80.0% in the third quarter over the prior year period, to $0.27 per share driven by higher adjusted EBITDA and lower interest expense. EBITDA increased 19.7% in the third quarter of fiscal 2017 compared to the prior year period to $79.6 million, driven by a strong gross profit growth partially offset by strategic investments for future growth. Adjusted EBITDA increased 17.3% to $89.6 million in the third quarter of fiscal 2017 compared to the prior year period. Total case volume increased 6.6% in the first nine months of fiscal 2017 compared to the prior year period, with underlying organic total case volume growth of 5.3%. Net sales for the first nine months of fiscal 2017 were $12.3 billion, an increase of 5.1% versus the comparable prior year period. The increase in net sales was primarily attributable to case growth in Performance Foodservice and sales growth in Vistar. Gross profit increased 7.0% compared to the prior year period, to $1.5 billion. The gross profit increase was led by case growth and an improved sales mix of customer channels and products, specifically to the independent channel. Gross margin as a percentage of net sales was up 30 basis points to 12.6%. Operating expenses increased 8.1% in the first nine months of fiscal 2017 compared to the prior year period, to $1.4 billion. The increase was driven by the cost to support growth in case volume, as well as the cost of strategic investments for future growth. Operating expenses also increased as a result of higher professional and legal fees, including settlements of $8.9 million and insurance expense related to workers compensation of $8.4 million. Net income was up 43.0% to $55.9 million for the first nine months of fiscal 2017 compared to the prior year period, due to a decrease in interest expense and other expenses offset by an increase in income tax expense. For the first nine months of fiscal 2017, the income tax rate decreased 230 basis points to 38.3%. The decrease in the tax rate was primarily a result of an increase in permanent deductions related to the adoption of a new accounting standard related to stock-based compensation. Diluted EPS increased 35.0% in the first nine months of fiscal 2017 over the prior year period, to $0.54. Adjusted diluted EPS increased 24.6% in the first nine months over the prior year period, to $0.76 per share. EBITDA increased 2.7% in the first nine months of fiscal 2017 compared to the prior year period to $223.7 million. For the first nine months of fiscal 2017, Adjusted EBITDA increased 2.9% to $259.2 million compared to the prior year period. The 2.9% increase in adjusted EBITDA was impacted by the cost of the company’s strategic investments to drive growth associated with expansion of geographies served in the dollar store channel and the opening of an automated retail facility within Vistar. On May 4, 2017, Performance Food Group completed the acquisition of Presto Foods, one of the largest specialty Italian and pizza foodservice distributors in the U.S. Presto Foods has annual sales of approximately $140 million. The Monroe, Ohio-based acquisition will complement PFG’s strong pizza and Italian business and expand the company’s white-space opportunities in the Midwest. During the first nine months of fiscal 2017, PFG’s operating activities provided $102.0 million of cash flow compared to $118.4 million during the same period a year ago. The prior year included a positive impact of the $25.0 million break-up fee payment received related to the terminated agreement to acquire 11 US Foods facilities from Sysco and US Foods. Improvement in operating cash flow (excluding the one-time break-up fee) was driven by strong growth in net income and better working capital management. Cash used in investing activities totaled $250.8 million for the first nine months of fiscal 2017. These investments consisted of business acquisitions totaling $144.9 million and capital expenditures of $106.6 million. The company continues to expect capital expenditures for fiscal 2017 will be between $140 million and $160 million. The fiscal 2017 capital expenditure estimate is higher than fiscal 2016 because of the timing of certain projects that began in fiscal 2016. Net sales for the third quarter of fiscal 2017 increased 4.8% to $2.4 billion compared to the prior year period. Net sales growth was driven by new customers, an increase in cases sold, including 7.0% independent case growth, and strong case growth for our Performance Brands. This marks PFS’s 31st consecutive quarter of independent case growth at or above 6.0%. For the quarter, independent sales as a percentage of total segment sales was up approximately 100 basis points to 43.3%. EBITDA for PFS increased 8.1% to $68.1 million in the third quarter of fiscal 2017 compared to the prior year period. PFS increased gross profit by 6.0%, while leveraging its EBITDA growth to 8.1% through strong operating expense control. The increase in gross profit per case resulted from a favorable shift in the mix of cases sold toward independent customers and Performance Brands. Net sales for PFG Customized increased 8.2% in the third quarter of fiscal 2017 to $1.0 billion compared to the prior year period due to improved sales mix, higher case volume and higher revenue per case and was partially offset by softness in the casual dining environment. In the first quarter of fiscal 2017, the segment began providing distribution solutions to a portion of Red Lobster’s restaurants and completed the transition a little more than halfway through the second quarter. The third quarter of fiscal 2017 marks the first quarter that Red Lobster is fully integrated into the company’s system. EBITDA growth in the third quarter was 6.2%, a result of the successful integration of Red Lobster. PFG Customized also incurred quarter over quarter increases in costs driven by higher personnel expenses. Vistar’s third quarter of fiscal 2017 net sales increased 15.2% to $750.5 million compared to the prior year period. This increase was driven by case sales growth in the segment’s retail, theater, vending, and hospitality channels and by recent acquisitions. Third quarter EBITDA for Vistar increased 9.7% to $29.3 million in fiscal 2017 versus the prior year period. Gross profits grew 13.6% for the third quarter of fiscal 2017 over the prior year period, fueled by an increase in the number of cases sold and by acquisitions. Operating expense dollar growth of 15.5% resulted from investments associated with expansion of geographies served in the dollar store channel, additional expenses related to recent acquisitions and investments associated with the opening of an automated retail facility. Although operating expenses increased year over year in the third quarter of fiscal 2017, they were better than expected as we continued to realize productivity improvements in our investments. PFG confirms its fiscal 2017 full-year Adjusted EBITDA growth outlook to be in the 7% to 9% range on a 52 week to 52 week basis. On a 52 week to 53 week basis, the company confirms its Adjusted EBITDA growth to be in the 5% to 7% range. PFG confirms its fiscal 2017 Adjusted Diluted EPS growth outlook to be in a range of 27% to 31% to $1.23 to $1.27 on a 52 week to 52 week basis versus a comparable Fiscal 2016 Adjusted Diluted EPS of $0.97. PFG also confirms fiscal 2017 Adjusted Diluted EPS growth outlook to be in a range of 24% to 28% to $1.24 to $1.28 on a 52 week to 53 week basis versus a comparable 53 week fiscal 2016 Adjusted Diluted EPS of $1.00. PFG’s Adjusted EBITDA and Adjusted Diluted EPS outlook exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. PFG’s management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income and its reported Diluted EPS because these items, which could be significant, are difficult to predict and may be highly variable. As a result, PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA and Adjusted Diluted EPS outlook. Please see the “Forward-Looking Statements” section of this release for a discussion of certain risks to PFG’s outlook. As previously announced, a conference call with the investment community and news media will be webcast on May 10, 2017 at 9:00 a.m. Eastern Daylight Time. Access to the webcast is available at www.pfgc.com. Through its family of leading foodservice distributors – Performance Foodservice, Vistar, and PFG Customized – Performance Food Group Company (PFG) markets and distributes over 150,000 food and food-related products from 77 distribution centers to over 150,000 customer locations across the United States. PFG’s 13,000+ associates serve a diverse mix of customers, from independent and chain restaurants to schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, big box retailers, and theaters. The Company sources its products from more than 5,000 suppliers and serves as an important partner to its suppliers by providing them access to the Company's broad customer base. For more information, visit www.pfgc.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements, including the statements in the “Outlook” section of this press release. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. The following factors, in addition to those discussed under the section entitled Item 1A Risk Factors in the Company’s Annual Report on Form 10-K for the fiscal year ended July 2, 2016 filed with the Securities and Exchange Commission (the “SEC”) on August 30, 2016, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, could cause actual future results to differ materially from those expressed in any forward-looking statements: Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any forward-looking statement, including any contained herein, speaks only as of the time of this release and we do not undertake to update or revise them as more information becomes available or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as required by law. This earnings release and the accompanying financial statement tables include several financial measures that are not calculated in accordance with GAAP, including EBITDA, Adjusted EBITDA, and Adjusted Diluted Earnings per Share. Such measures are not recognized terms under GAAP, should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and are not indicative of net income as determined under GAAP. EBITDA, Adjusted EBITDA, Adjusted Diluted Earnings per Share, and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate the Company’s liquidity or financial performance. EBITDA, Adjusted EBITDA, and Adjusted Diluted Earnings per Share, as presented, may not be comparable to similarly titled measures of other companies because of varying methods of calculation. Management measures operating performance based on PFG’s EBITDA, defined as net income before interest expense, interest income, income taxes, and depreciation and amortization. PFG believe that the presentation of EBITDA enhances an investor’s understanding of PFG’s performance. PFG believes this measure is a useful metric to assess PFG’s operating performance from period to period by excluding certain items that PFG believes are not representative of PFG’s core business. PFG uses this measure to evaluate the performance of its segments and for business planning purposes. In addition, management uses Adjusted EBITDA, defined as net income before interest expense, interest income, income and franchise taxes, and depreciation and amortization, further adjusted to exclude certain items we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction, and other adjustment items permitted in calculating covenant compliance under the company’s credit and indenture agreements (other than certain pro forma adjustments permitted under our credit agreement and indenture relating to the Adjusted EBITDA contribution of acquired entities or businesses prior to the acquisition date). Under PFG’s credit agreement and indenture, the Company’s ability to engage in certain activities such as incurring certain additional indebtedness, making certain investments, and making restricted payments is tied to ratios based on Adjusted EBITDA (as defined in the credit agreement and indenture). Management also uses Adjusted Diluted Earnings per Share, which is calculated by adjusting the most directly comparable GAAP financial measure by excluding the same items excluded in PFG’s calculation of Adjusted EBITDA to the extent that each such item was included in the applicable GAAP financial measure. PFG believes that the presentation of Adjusted EBITDA and Adjusted Diluted Earnings per Share is useful to investors because these metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies in PFG’s industry. The following tables include a reconciliation of non-GAAP financial measures to the applicable most comparable U.S. GAAP financial measures. We have three segments as described above—Performance Foodservice, PFG Customized, and Vistar. Management evaluates the performance of these segments based on their respective sales growth and EBITDA. For PFG Customized, EBITDA includes certain allocated corporate expenses that are included in operating expenses. The allocated corporate expenses are determined based on a percentage of total sales. This percentage is reviewed on a periodic basis to ensure that the allocation reflects a reasonable rate of corporate expenses based on their use of corporate services. Corporate & All Other is comprised of corporate overhead and certain operations that are not considered separate reportable segments based on their size. This includes the operations of our internal logistics unit responsible for managing and allocating inbound logistics revenue and expense. Beginning in the second quarter of fiscal 2017, this also includes the operating results from certain recent acquisitions. The following tables set forth net sales and EBITDA by segment for the periods indicated (dollars in millions):
News Article | May 12, 2017
MANITOWOC, Wis.--(BUSINESS WIRE)--Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a leading designer and manufacturer of high-performance, energy-efficient LED retrofit lighting, today announced that Electrical Construction & Maintenance magazine (EC&M) has named its ISON™ LED High Bay luminaire as a 2017 Product of the Year Winner in the high bay category. Debuting in September 2016, Orion’s ISON LED High Bay luminaire was the first and remains the only luminaire to eclipse the 200 lumens per watt (LPW) energy efficiency barrier with performance of 214 LPW. The luminaire consumes approximately 47 percent less energy than the average LED high bay luminaire,* thereby offering the potential to reduce customer utility bills for lighting by up to 47 percent. Several of Orion’s Fortune 1000 customers have retrofitted facilities with Orion’s ISON LED High Bay series, including corporate giants Coca-Cola and US Foods. Toyota Motor North America, an early adopter of the ISON Gen III, retrofitted their Georgetown, KY 8.1 million square foot manufacturing plant with the award winning high bay. The Georgetown facility is Toyota’s largest vehicle manufacturing plant in the world. Orion’s ISON LED High Bay series is a solid long term investment for Orion customers. Not only is it compatible with Orion’s legacy fluorescent product controls and accessories, the plug and play modular design serves as a platform that can be upgraded as LED technology continues to evolve or light level requirements change. Orion customers who have invested in the ISON Gen II can cost effectively upgrade their existing platform to the 214 lumens per watt efficiency of the new Gen III, and continue to utilize their existing Gen II accessory and control options. This backward compatibility, combined with high performance, low cost install and maintenance, and a ten year warranty, is why the ISON LED High Bay offers the lowest total cost of ownership in its class. Orion’s ISON LED High Bay was selected from a pool of 155 nominations that were carefully evaluated by a panel of judges comprised of electrical professionals from the engineering, contracting, plant facilities and maintenance industries. Orion will compete for the 2017 Product of the Year Platinum, Gold, and Silver awards to be determined through an online readers’ poll and announced in EC&M’s August 2017 issue. “We are extremely proud of this acknowledgement from EC&M and its judging panel,” said John Scribante, Orion’s chief executive officer. “Development of our ISON High Bay luminaire resulted from investments we have made in new product development, including the opening of our innovation hub in Chicago and our recruitment of the industry’s most talented engineers and designers. Orion remains committed to the ongoing research and development of new and improved lighting systems that deliver added value, improved performance and special features for customers across a range of industry specialties from healthcare and foodservice to manufacturing and logistics.” When replacing fluorescent products, the savings can be up to 52 percent. For example, a typical facility replacing fluorescent lighting with ISON Gen III LED High Bays could expect to save over $75,000 a year and more than $750,000 over a decade.** The ISON LED High Bay’s enhanced energy efficiency also opens new markets for Orion, particularly for facilities with shorter hours of operation or lower utility rates. While earlier systems have been unable to deliver a clear ROI from energy savings in these more challenging applications, meaningful savings are now possible in most instances given the high efficiency of Orion’s ISON LED High Bay solution. For more information about the ISON LED High Bay and Orion’s suite of energy-efficient LED lighting retrofit products, contact an authorized Orion agent or visit www.orionlighting.com. **Based on replacing 1,000 6-lamp T8 high bay fixtures consuming 221 watts with Orion’s 106-watt ISON™ LED High Bay Generation III, operating 6,000 hours per year at an electric rate of $0.11. Published monthly since 1901, Electrical Construction & Maintenance (EC&M) magazine is the technical authority for 130,000+ electrical professionals, including 80,000+ subscribers in electrical contracting firms (reaching all NECA and IEC member firms), 30,000+ subscribers in industrial plants and in commercial/ institutional facilities with 100+ employees (93 percent coverage of Fortune 1000 firms), and nearly 20,000 consulting electrical engineers. EC&M has earned over 70 editorial awards since 2000. Orion is a leading designer and producer of energy efficient lighting and retrofit lighting solutions for commercial and industrial buildings. Orion manufactures and markets connected lighting systems encompassing LED solid-state lighting and intelligent controls. Orion systems incorporate patented design elements that deliver significant energy, efficiency, optical, and thermal performance that drive financial, environmental, and work-space benefits for a wide variety of customers, including nearly 40 percent of the Fortune 500.
News Article | May 9, 2017
ROSEMONT, Ill.--(BUSINESS WIRE)--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 2017. “ Our business delivered solid results in the first quarter of fiscal 2017,” said President and CEO Pietro Satriano. “ Solid volume growth with our targeted customer types helped us deliver Net sales growth of 3.5%, and our disciplined focus on improving profitability led to Adjusted EBITDA growth of over 6% against a strong fiscal 2016 first quarter. Our M&A pipeline remains active, and the two new acquisitions closed in the first quarter provide opportunities to increase our independent restaurant share and center of the plate capabilities in protein. We are confident that the continued execution of our strategy will drive solid results as the year progresses.” Total case volume increased 4.3% from prior year, of which 2.7% was organic growth, and independent restaurant case volume increased 4.0%, of which 2.8% was organic growth. Continued growth with independent restaurants, healthcare, and hospitality customers, as well as select new national chain business, drove the strong first quarter volume increase. Net sales of $5.8 billion represent a 3.5% increase from prior year, driven by total case volume growth that was partially offset by year-over-year deflation in dairy, beef and produce as well as product mix changes. Sales from acquisitions completed in the last 12 months boosted total Net sales by approximately 1.3%. Gross profit of $991 million increased $31 million, or 3.2% from prior year. The increase was driven by higher volumes combined with margin expansion initiatives, partially offset by the year-over-year change in the Last-in, first-out (LIFO) reserve. Gross profit as a percentage of Net sales was 17.1%. Adjusted Gross profit, which excludes the impact of LIFO, was $1.0 billion, a 5.5% increase from the prior year, driven by the Gross profit items discussed above. Adjusted Gross profit as a percentage of Net sales was 17.3%. Operating expenses were $915 million, an increase of 4.6% from prior year. The increase was primarily due to higher volumes combined with higher employee-related costs, and increased insurance related charges; these items were partially offset by progress on initiatives to reduce operating expenses. Adjusted Operating expenses for the quarter were $786 million, a 5.4% increase from prior year, driven by the Operating expense items discussed above. Operating income was $77 million, an $8 million decrease from prior year, predominantly driven by the $21 million negative year-over-year LIFO reserve impact as well as the drivers in Gross profit and Operating expenses discussed above. Net income for the quarter was $27 million, up from $13 million in the prior year. Adjusted EBITDA of $215 million increased $12 million, or 6.1% compared to prior year, driven by volume growth and the Adjusted Gross profit and Adjusted Operating expense factors discussed above. Diluted EPS was $0.12 and Adjusted Diluted EPS was $0.18. Cash flows from operating activities for first quarter of fiscal 2017 was $122 million, a decrease of $15 million from prior year, driven by increased working capital needs from the growth in sales. Cash capital expenditures for the quarter totaled $70 million, an increase of $33 million from prior year, due to the timing of payments made for assets acquired late in Q4 fiscal 2016 and increased capital spending, as planned. Net Debt at the end of the quarter was $3.7 billion, a decrease of $1.2 billion versus the comparable prior year period. The ratio of Net Debt to Adjusted EBITDA was 3.8x at the end of the quarter, down from 5.3x in the same period prior year. The company’s outlook for fiscal 2017, announced on February 15, 2017, remains unchanged. The company does, however, expect interest expense and cash taxes to be at the low end of the previously provided ranges. Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook. We are not providing a reconciliation of our full year 2017 Adjusted EBITDA or Adjusted Diluted EPS outlook because we are not able to accurately estimate all of the adjustments on a forward-looking basis and such items could have a significant impact on our GAAP financial results as a result of their variability. US Foods first quarter fiscal 2017 earnings call will be broadcast live via the Internet on May 9, 2017 at 9:00 a.m. CDT. The call can also be accessed live over the phone by dialing (855) 788-2805; the conference ID number is 35394299. The presentation slides reviewed during the webcast will be available shortly before that time. The webcast, slides, and a copy of this news release will be available in the Investor Relations section of our website for a limited period of time at www.usfoods.com/investors. US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 chefs, restaurants and foodservice operators to help their businesses succeed. With nearly 25,000 employees and more than 60 locations, US Foods provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, IL, and generates approximately $23 billion in annual revenue. Discover more at www.usfoods.com. This press release contains “forward-looking statements” within the meaning of the federal securities laws, including those statements under “Outlook for Fiscal 2017”. Forward-looking statements include information concerning our liquidity and our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as “believe,” “expect,” “project,” “anticipate,” “intend,” “plan,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” “mission,” “strive,” “more,” “goal,” or similar expressions. The statements are based on assumptions that we have made, based on our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. We believe these judgments are reasonable. However, you should understand that these statements are not guarantees of performance or results. Our actual results could differ materially from those expressed in the forward-looking statements. There are a number of risks, uncertainties, and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking statements contained in this release. Such risks, uncertainties, and other important factors include, among others: our ability to remain profitable during times of cost inflation/deflation, commodity volatility, and other factors; industry competition and our ability to successfully compete; our reliance on third-party suppliers, including the impact of any interruption of supplies or increases in product costs; risks related to our indebtedness, including our substantial amount of debt, our ability to incur substantially more debt, and increases in interest rates; restrictions and limitations placed on us by agreements and instruments governing our debt; any change in our relationships with group purchasing organizations; any change in our relationships with long-term customers; our ability to increase sales to independent restaurant customers; our ability to successfully consummate and integrate acquisitions; our ability to achieve the benefits that we expect from our cost savings initiatives; shortages of fuel and increases or volatility in fuel costs; any declines in the consumption of food prepared away from home, including as a result of changes in the economy or other factors affecting consumer confidence; liability claims related to products we distribute; our ability to maintain a good reputation; costs and risks associated with labor relations and the availability of qualified labor; changes in industry pricing practices; changes in competitors’ cost structures; our ability to retain customers not obligated by long-term contracts to continue purchasing products from us; environmental, health and safety costs; costs and risks associated with government laws and regulations, including related to environmental, health, safety, food safety, transportation, labor and employment, and changes in existing laws or regulations; technology disruptions and our ability to implement new technologies; costs and risks associated with a potential cybersecurity incident; our ability to manage future expenses and liabilities associated with our retirement benefits and pension plans; disruptions to our business caused by extreme weather conditions; costs and risks associated with litigation; changes in consumer eating habits; costs and risks associated with our intellectual property protections; and risks associated with potential infringements of the intellectual property of others. For a detailed discussion of these risks and uncertainties, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017. All forward-looking statements made in this release are qualified by these cautionary statements. The forward-looking statements contained in this release speak only as of the date of this release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. Comparisons of results between current and prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. We provide Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Net Debt, Adjusted Net income and Adjusted Diluted Earnings per Share (EPS) as supplemental measures to GAAP measures regarding our operational performance. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. We use Adjusted Gross profit and Adjusted Operating expenses to focus on period-over-period changes in our business and believe this information is helpful to investors. Adjusted Gross profit is Gross profit adjusted to remove the impact of Last-in, first-out (LIFO) reserve changes. Adjusted Operating expenses are Operating expenses adjusted to exclude amounts that we do not consider part of our core operating results when assessing our performance, as well other items noted in our debt agreements. We believe EBITDA and Adjusted EBITDA provide meaningful supplemental information about our operating performance because they exclude amounts that we do not consider part of our core operating results when assessing our performance. Examples of items excluded from Adjusted EBITDA include Restructuring charges, Loss on extinguishment of debt, Sponsor fees, Share-based compensation expense, Pension settlements, the non-cash impacts of LIFO reserve adjustments, Business transformation costs (business costs associated with the redesign of systems and processes), and other items as specified in our debt agreements. We use Net Debt to review the liquidity of our operations. Net Debt is defined as long-term debt plus the current portion of long-term debt net of the Senior Notes premium, Deferred financing fees, restricted cash held on deposit in accordance with our credit agreements, and total Cash and cash equivalents remaining on the balance sheet as of April 1, 2017. We believe that Net Debt is a useful financial metric to assess our ability to pursue business opportunities and investments. Net Debt is not a measure of our liquidity under GAAP and should not be considered as an alternative to Cash Flows From Operating or Financing Activities. We believe that Adjusted Net income is a useful measure of operating performance for both management and investors because it excludes items that are not reflective of our core operating performance and provides an additional view of our operating performance including depreciation, amortization, interest expense, and Income taxes on a consistent basis from period to period. Adjusted Net income is Net income excluding such items as Restructuring charges, Loss on extinguishment of debt, Sponsor fees, Share-based compensation expense, Pension settlements, Business transformation costs (business costs associated with the redesign of systems and processes), and other items, and adjusted for the tax effect of the exclusions and discrete tax items. We believe that Adjusted Net income is used by investors, analysts, and other interested parties to facilitate period-over-period comparisons and provides additional clarity as to how factors and trends impact our operating performance. We use Adjusted Diluted EPS, which is calculated by adjusting the most directly comparable GAAP financial measure, Diluted Earnings per Share, by excluding the same items excluded in our calculation of Adjusted EBITDA to the extent that each such item was included in the applicable GAAP financial measure. We believe the presentation of Adjusted Diluted EPS is useful to investors because the measurement excludes amounts that we do not consider part of our core operating results when assessing our performance. We also believe that the presentation of Adjusted EBITDA and Adjusted Diluted Earnings per Share is useful to investors because these metrics are frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in our industry. Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors as they assist in highlighting trends, (b) to set internal sales targets and spending budgets, (c) to measure operational profitability and the accuracy of forecasting, (d) to assess financial discipline over operational expenditures, and (e) as an important factor in determining variable compensation for management and employees. EBITDA and Adjusted EBITDA are also used for certain covenants and restricted activities under our debt agreements. We also believe these non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties to evaluate companies in our industry. We caution readers that amounts presented in accordance with our definitions of Adjusted Gross profit, Adjusted Operating expense, EBITDA, Adjusted EBITDA, Net Debt, Adjusted Net Income and Adjusted Diluted EPS may not be the same as similar measures used by other companies. Not all companies and analysts calculate these measures in the same manner. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by presenting the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
US Foods | Date: 2013-01-11
A utensil dispenser including a reservoir that stores utensils and front and rear pedestals in contact with a next utensil. The pedestals contain a plurality of utensils within the reservoir. A gravity feed ramp moves the next utensil to an access port of the utensil dispenser. The utensil dispenser includes an actuator operably connected to a drive pin or other drive mechanism. The actuator is configured to halt a dispensing utensil at a ready position based upon contact between the dispensing utensil and the actuator. In the ready position, a handle portion of the dispensing utensil is accessible via the access port. The drive mechanism is configured to contact the next utensil. The actuator is configured to move the drive mechanism to move the next utensil to clear the front pedestal to release the next utensil from the reservoir onto the gravity feed ramp when the dispensing utensil is dispensed.