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 | 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 | February 15, 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 fourth quarter and fiscal year 2016. 1 References to the exclusion of the “extra week” refer to the 53rd week in the fiscal 2015 fourth quarter and is presented to provide comparable 52-week and 13-week period results on a year over year basis. “ Our Great Food. Made Easy. strategy drove our strong performance, resulting in increased case volumes and improved profitability,” said CEO Pietro Satriano. “ In our first year as a public company, we grew volumes with Independent Restaurant customers well above market rates and expanded profit margins in a challenging, deflationary environment. We also expanded both our broadline and specialty distribution capabilities through the successful integration of five acquisitions in the last year. Our focus on driving higher volumes with our targeted customers, expanding Gross profit, and reducing our operating costs resulted in full year Adjusted EBITDA above the high end of our guidance range.” Satriano added, “ Looking ahead to 2017, we will remain disciplined in our efforts to drive improved volumes and profitability and expect to deliver full year results in line with our mid-term guidance.” Total case volume decreased 1.9% and Independent Restaurant case volume decreased 1.0% from prior year, impacted by an extra week of operations in 2015. Excluding the extra week, total case volume increased 4.1%, of which 2.0% was organic growth, and Independent Restaurant case volume increased 6.1%, of which 3.8% was organic growth. Strong growth with Independent Restaurants and the addition of new healthcare and hospitality business contributed to the fourth quarter volume growth. Net sales of $5.7 billion represent a 4.3% decrease from prior year, impacted by an extra week of operations in 2015. Excluding the extra week, Net sales increased 1.7% driven by case volume growth offset by deflation in dairy and beef. Excluding the extra week, sales from acquisitions completed in the last 12 months boosted Net sales by approximately 1.7%. Gross profit of $1.0 billion decreased by $51 million, or 4.7% from prior year, impacted by the extra week and the year over year change in the Last-in, first-out (LIFO) reserve. Excluding the extra week, Gross profit increased 0.8%. Gross profit as a percentage of Net sales was 18.1% compared to prior year of 18.2% and Adjusted Gross profit was 18.2% compared to prior year of 17.6%. The increase in Adjusted Gross profit as a percentage of Net sales primarily resulted from favorable customer mix and margin improvement initiatives, including strategic vendor management. Operating expenses were $911 million, a decrease of 11.2% from prior year, driven by progress on initiatives to reduce Distribution, selling and administrative expenses, a multi-employer pension settlement charge taken in the prior year and one less week of Operating expenses in the current year. Excluding the extra week, Operating expenses decreased 6.9%. Adjusted Operating expenses for the quarter were $768 million, a 2.8% decrease from prior year. Excluding the extra week, Adjusted Operating expenses increased 3.5% from prior year. Operating income was $116 million, a $64 million increase from prior year. Excluding the extra week, Operating income increased $75 million. Net income for the quarter was $77 million, up from a loss of $10 million in the prior year. Excluding the extra week, Net income increased $93 million. Adjusted EBITDA of $265 million increased $10 million, or 3.9% compared to prior year. Excluding the extra week, Adjusted EBITDA increased 8.6%, driven by volume growth and the Adjusted Gross profit and Adjusted Operating expense factors discussed above. Diluted EPS was $0.34 and Adjusted Diluted EPS was $0.53 for the quarter. For the fiscal year, total case volume increased 1.4% and Independent Restaurant case volume increased 4.7% from prior year. Excluding the extra week, total case volume increased 2.9%, of which 1.3% was organic growth, and Independent Restaurant case volume increased 6.4%, of which 4.5% was organic growth. Case volumes were affected by strong Independent Restaurant volume growth and customer wins in the healthcare and hospitality arenas, partially offset by the planned exits from certain national chain business during the first three quarters of the fiscal year. Net sales of $22.9 billion decreased 0.9% from prior year, impacted by an extra week of operations in 2015. Excluding the extra week, Net sales increased 0.6% driven by case volume growth, partially offset by the planned exits from certain national chain accounts, deflation in dairy and beef, and product mix changes driven by the acquisition of Freshway, a distributor of produce products that typically have a lower average selling price. Excluding the extra week, sales from acquisitions completed in the last 12 months boosted Net sales by approximately 1.3%. Gross profit of $4.1 billion increased $40 million or 1.0% from prior year, driven by higher case volumes, favorable customer mix, and positive impacts from merchandising initiatives, which were partially offset by year over year LIFO reserve changes. Excluding the extra week, Gross profit increased 2.5%. Gross profit as a percentage of Net sales, was 17.7% compared to prior year of 17.4% and Adjusted Gross profit was 17.6% compared to prior year of 17.0%. The increase in Adjusted Gross profit as a percentage of Net sales primarily resulted from favorable customer mix and other margin improvement initiatives. Operating expenses for the fiscal year were $3.6 billion, a decrease of 4.8% from prior year, driven by progress on company initiatives to reduce Distribution, selling and administrative expenses, favorable fuel costs and one less week of Operating expenses in the current year. These gains were partially offset by the payment of a consulting and management agreement termination fee and higher Depreciation and amortization expenses. Excluding the extra week, Operating expenses decreased 3.6%. Adjusted Operating expenses were $3.1 billion, flat to prior year. Excluding the extra week, Adjusted Operating expenses increased 1.6% from prior year. Operating income was $414 million, a $224 million increase from the prior year. Excluding the extra week, Operating income increased by $235 million. Net income for the fiscal year was $210 million, up from $168 million in the prior year. Excluding the extra week, Net income increased $48 million. Adjusted EBITDA of $972 million increased $97 million, or 11.1% compared to prior year. Excluding the extra week, Adjusted EBITDA increased 12.5%, driven by the Adjusted Gross profit and Adjusted Operating expense factors discussed above. Diluted EPS was $1.03 and Adjusted Diluted EPS was $1.57 for the fiscal year, up from Diluted EPS of $0.98 and Adjusted Diluted EPS of $0.90. Cash flow from operations for fiscal 2016 was $556 million. Excluding the cash inflow from the Sysco termination fee in 2015, Cash flow from operations for the fiscal year improved $289 million, driven by improvements in Gross profit and Operating expenses. Free cash flow was $392 million. Cash capital expenditures for fiscal 2016 totaled $164 million, a decrease of $23 million from prior year. Net Debt at the end of the fiscal year was $3.7 billion, a decrease of $558 million versus the comparable prior year period. Net Debt to Adjusted EBITDA was 3.8x at year end, down from 4.8x in the prior year. For fiscal 2017 the company expects total case volume growth of 2-4%, Net sales growth of 1-3% and Adjusted EBITDA growth of 7-10%. We expect first quarter Adjusted EBITDA to be approximately 2% below the full year range, driven by weather, holiday timing and other factors. Adjusted Diluted EPS for fiscal 2017 is expected to be between $1.26 and $1.40. The company expects fiscal 2017 Interest expense to be approximately $180-$190 million. Fiscal 2017 cash capital expenditures are expected to be approximately $230-$250 million, and fleet capital leases are expected to be approximately $100 million. Depreciation and amortization expense for fiscal 2017 is expected to be approximately $370-$380 million. The company’s effective tax rate for fiscal 2017 is estimated to be approximately 39% while cash taxes are expected to be approximately $25-$35 million. Please see the “Forward-Looking Statements” section in this release for a discussion of certain risks related to this outlook. US Foods fourth quarter and fiscal 2016 earnings call will be broadcast live via the Internet on February 15, 2017 at 9:00 a.m. CST. The call can also be accessed live over the phone by dialing (855) 788-2805; the conference ID number is 35394270. The presentation slides reviewed during the webcast will be available shortly before that time. The webcast, slides, and a copy of this news release can be found in the Investor Relations section of our website 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. 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; 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 future 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 environmental, health, safety, food safety, transportation, labor and employment, laws and regulations, 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; 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 prospectus dated January 25, 2017, which was filed with the Securities and Exchange Commission (“SEC”) on January 25, 2017, pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended. 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, Free cash flow, 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 and tangible asset impairment charges, Loss on extinguishment of debt, Sponsor fees, Share-based compensation expense, the non-cash impacts of LIFO reserve adjustments, business transformation costs (business costs associated with the redesign of systems and processes), costs related to the Sysco Acquisition (“Acquisition”), Acquisition termination fees—net, and other items as specified in our debt agreements. We use Free cash flow and Net Debt to review the liquidity of our operations. We measure Free cash flow as Cash Flows from Operating Activities less Capital Expenditures. 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 at year-end. We believe that Free cash flow and Net Debt are useful financial metrics to assess our ability to pursue business opportunities and investments. Free cash flow and Net Debt are not measures of our liquidity under GAAP and should not be considered as an alternative to Cash Flows From Operating 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 (loss) excluding such items as Restructuring and tangible asset impairment charges, Loss on extinguishment of debt, Sponsor fees, Share-based compensation expense, Business transformation costs (cost associated with redesign of systems and process), 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 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. We caution readers that amounts presented in accordance with our definitions of Adjusted Gross profit, Adjusted Operating expense, EBITDA, Adjusted EBITDA, Free cash flow, 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.
News Article | March 1, 2017
Dickinson Wright PLLC is pleased to announce that it was involved in three deals that are being recognized at the 11th Annual Turnaround Awards presented by The M&A Advisor. The deals being recognized are: Dianne’s Fine Desserts for the Divestiture Deal of the Year (over $100 million); Vinnie Johnson/Irvin Automotive Acquisition for the Consumer Discretionary Deal of the Year (over $100 million); and the restructuring of Gilbert & Florence Hospital for the Healthcare/Life Sciences Deal of the Year. The Divestiture Deal of the Year, Dianne’s Fine Desserts: Superior Capital and management invested $5.1 million of permanent capital to acquire the distressed, non-core dessert subsidiary of Heinz. The sale in June 2016 to Geneva Glen Capital yielded $81.4 million of net equity proceeds, more than 15 times Superior Capital and management’s invested capital and an IRR of 93% over a four year period. At the time of the sale, Dianne’s had become recognized as the new product innovator and had grown to become the market leader of private-label, gourmet desserts due to the Company’s No. 1 supplier position in its product categories to Sysco, US Foods, Performance Food Group and Gordon Food Service, which represent the four largest foodservice distributors in the country. The Dianne’s acquisition and recent sale was led by Dickinson Wright Attorney Andrew MacLeod (Member, Detroit), the M&A team, along with the due diligence expertise of numerous Detroit-area firms. In addition to Superior Capital and the five firms utilized as direct advisors on the sale transaction, several other Detroit-area firms contributed to the tremendous success of the Dianne’s investment. The Consumer Discretionary Deal of the Year, Vinnie Johnson/Irvin Automotive Acquisition: The Detroit entrepreneur Vinnie Johnson has acquired Irvin Automotive Products, creating one of the largest privately-owned automotive supplier groups in Michigan. Dickinson Wright represented Irvin Acquisition LLC as the buyer in an acquisition of the stock of Irvin Automotive Products Inc., a wholly owned subsidiary of TK Holdings, Inc. (Takata). Other companies in the group include Piston Automotive, Detroit Thermal Systems and AIREA, Inc. The acquisition of Irvin Automotive is part of the company’s ongoing plan for further expansion as a global supply-chain leader. The Dickinson Wright team that was involved in the acquisition was led by Jim Plemmons (Member, Detroit) and Rick Bolton (Member, Detroit), and included Zan Nicolli (Member, Troy), William Shield (Member, Detroit), Cynthia Moore (Member, Troy), John Perkins (Member, Detroit), Colleen Shevnock (Member, Ann Arbor), Andrew MacLeod (Member, Detroit), and Adam Wallace (Associate, Detroit). The Healthcare and Life Sciences Deal of the Year, Restructuring of Gilbert & Florence Hospitals: Gilbert Hospital is a small emergency hospital located in Gilbert, Arizona, a metropolitan suburb of Phoenix. Florence Hospital at Anthem is a small emergency hospital located in Florence, Arizona, a rural community located 60 miles from Phoenix. The two hospitals were founded by the same physician but were run entirely separate with different management and vendors. They did have a common secured lender. Each hospital suffered from lack of capital, competition, lack of leadership and poor collections. Each filed separate Chapter 11 bankruptcies a year apart. In an extremely unprecedented move, Gilbert Hospital and the secured creditor proposed a plan of reorganization joining the two essentially unrelated hospitals. However, under their plan, the secured creditor would receive additional collateral and ultimately be paid in full while unsecured creditors would receive a cents-on-the-dollar recovery. Dickinson Wright Attorney Carolyn Johnsen (Member, Phoenix), representing the unsecured creditors’ committee in the Florence case, countered with a Committee plan and then orchestrated a series of negotiations among all the factions that included the lender, the hospitals’ landlords, the United States Trustee and the Court-appointed patient ombudsman. The result was a full payment to all creditors. This case ultimately was a successful and creative solution to merge a rural and a suburban hospital and combine their respective strengths and reduce their respective weaknesses. Ms. Johnsen serves as the Trustee for the payments to creditors and will achieve the 100% mark. The 11th Annual Turnaround Awards will take place on March 23, 2017 at the Colony Hotel in Palm Beach, Fla. To see the complete list of honorees for the 11th Annual Turnaround Awards, please click here. About Dickinson Wright PLLC Dickinson Wright PLLC is a general practice business law firm with more than 450 attorneys among more than 40 practice areas and 16 industry groups. Headquartered in Detroit and founded in 1878, the firm has seventeen offices, including six in Michigan (Detroit, Troy, Ann Arbor, Lansing, Grand Rapids, and Saginaw) and ten other domestic offices in Austin, Texas; Columbus, Ohio; Ft. Lauderdale, Fla.; Lexington, Ky.; Nashville and Music Row, Tenn.; Las Vegas and Reno, Nev.; Phoenix, Ariz.; and Washington, D.C. The firm’s Canadian office is located in Toronto. Dickinson Wright offers our clients a distinctive combination of superb client service, exceptional quality, value for fees, industry expertise and business acumen. As one of the few law firms with ISO/IEC 27001:2013 certification, Dickinson Wright has built state-of-the-art, independently-verified risk management controls and security processes for our commercial transactions. Dickinson Wright lawyers are known for delivering commercially-oriented advice on sophisticated transactions and have a remarkable record of wins in high-stakes litigation. Dickinson Wright lawyers are regularly cited for their expertise and experience by Chambers, Best Lawyers, Super Lawyers, and other leading independent law firm evaluating organizations.
News Article | February 15, 2017
On February 3, 2107 The Hospitality Education Foundation of Georgia (HEFG) will host nearly 3,000 high school students and teachers from hospitality pathway programs across the state at the 13th Annual HEFG Hospitality Career Expo from 8 a.m. to 1 p.m. at the Georgia International Convention Center. The HEFG Expo is an educational marketing show that provides students with an interactive view of the depth of careers available in the culinary and hospitality industry. Through industry-sponsored booths, students are exposed to every facet of the industry from production, to distribution, and marketing. Each year professionals from nearly 100 corporations such as Gas South, Zaxby’s, Sysco and US Foods share their expertise through cooking demos, management scenarios, and one-to-one interaction. Expo-opoly™, a management competition, is the centerpiece of the Expo. Every student has the opportunity to earn educational rewards for demonstrated learning of business practices such as accounting, franchising and human resources. This type of hands-on education is invaluable in nurturing our future leaders. “As the world's largest contract hospitality company, we have virtually unlimited career and growth opportunities for hospitality professionals. Not only is Expo a chance to give back to a great Foundation but it allows us to interact directly with our next generation of hospitality professionals and leaders!” said Rodney L. Knauf, Vice President-Finance, Morrison Community Living, Bateman Community Living, TouchPoint Senior Living. Additionally, vendors/exhibitors will have the opportunity to meet with top students from the Art Institute of Atlanta and Georgia State University in a recruitment session available only to Expo exhibitors. Every Expo attendee receives a t-shirt with exhibitor names with exhibitor names and logos. Teachers receive exhibitor contact information and a portion of the proceeds. The Hospitality Education Foundation of Georgia is a 501c3 dedicated to providing direct support for the education of hospitality and foodservice students, by facilitating industry experiences and connecting the classroom with industry professionals and resources. Shaping students' futures with real world experiences will develop the best members for our industry and the community. For more information, visit http://www.hefg.org.
News Article | February 23, 2017
EnterWorks, a leading provider of Master Data Management (MDM) and Product Information Management (PIM) solutions, has been recognized by Consumer Goods Technology Magazine in its Readers’ Choice issue. EnterWorks was chosen as a 2017 Editors’ Pick for its impact on technology innovation by consumer goods organizations. CGT recognized EnterWorks’ solution for its ability to enable companies to acquire, manage and transform product information into persuasive content that drives sales, increased collaboration and new competitive strengths. The editors also commended EnterWorks’ citing EnterWorks was named a “Strong Performer” in “The Forrester Wave: Product Information Management Solutions” report in fourth-quarter 2016, earning praise for providing customers with strong reporting capabilities and cloud-architecture flexibility. “This recognition for a 2nd year is a strong testament for our solution and team of data modelers and technology experts who provide consumer goods companies with omnichannel content networks they need for commerce. We help them master omnichannel complexity, engage in real-time content collaboration with trading partners, and create the single view of content needed for delivering differentiated customer experiences,” said Rick Chavie, CEO of EnterWorks. “It’s an honor to be recognized, especially as CGT’s Readers’ Choice picks are backed by CPG executives who depend on the value they get from our solution and services.” The 2017 Editors’ Pick is an opportunity for Consumer Goods Technology editorial staff to recognize the 14 technology solution and service providers that are making a substantial impact on the industry. Each company has been endorsed by consumer goods executives throughout the year and continue to offer robust solutions that provide CPG companies a competitive edge. “2016 was a great year for us. We added multiple packaged goods customers, made innovative advances to our MDM and PIM platforms, and were highly ranked in Forrester’s PIM Wave,” continued Chavie. “In 2017, we look forward to continued investments in our solutions for CPG brands to help them compete with content in an increasingly complex omnichannel markets.” To learn more about EnterWorks’ PIM and master data management (MDM) solutions, visit enterworks.com. Click Here to learn more about the 2017 Editor’s Picks in CGT Magazine. About EnterWorks Holding Company (http://www.enterworks.com) 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. EnterWorks is highly ranked by industry analysts and experts. EnterWorks serves as the content foundation used by industry leaders such as: Johnstone Supply, US Foods, Mary Kay, Orgill, W.B. Mason, Guthy-Renker, and Fender Musical Instruments.
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.
News Article | February 15, 2017
ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods today announced that it has agreed to acquire All American Foods, a broadline distributor based in North Kingstown, R.I., with annual sales of nearly $60 million. All American Foods was established in 1988 and has grown to offer more than 4,000 SKUs to nearly 1,000 customers throughout Rhode Island, Massachusetts and Connecticut. The addition of All American Foods will further enhance US Food’s ability to serve customers in the northeast region, an area of the country heavily populated with independent restaurants. US Foods welcomes All American Foods employees to the company and will continue to operate out of the 65,000 square foot facility All American Foods operates from today. “ The growth All American Foods has experienced over the last three decades is proof that their business model and commitment to customer service is strong,” said John O’Carroll, northeast region president, US Foods. “ We are looking forward to building on All American Foods’ already strong reputation and bringing an even better experience to foodservice operators throughout Southern New England.” The transaction is expected to close at the end of February. Terms of the transaction were not disclosed. US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 chefs, restaurateurs 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, Ill. and generates approximately $23 billion in annual revenue. Discover more at www.usfoods.com.
News Article | February 27, 2017
ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods today unveiled Spring Scoop™ 2017 (Spring Scoop) under the banner "What Millennials Crave," featuring a lineup of 26 new products designed to help restaurant customers attract more millennial diners. Spring Scoop features new menu design capabilities and a wide array of products that address several trends and product attributes important to millennials, including: global cuisine, sustainability and portability. “Millennials spend more on dining out than any other demographic, so it’s essential for restaurateurs to understand their preferences and shape their menus accordingly,” said Stacie Sopinka, vice president of product development and innovation, US Foods. “Our product development team – made up largely of millennials – dove deep into dining trends and came up with a diverse new set of products and services that will help our customers grow sales with this critical cohort while also saving time and money.” Nearly half of millennial diners want more globally inspired cuisine1 and are looking to explore new foods that feature authentic ingredients and international flavors. With the Spring Scoop, US Foods is providing operators with unique product offerings that help them meet this growing demand for more international fare. Spring Scoop features traditional ethnic foods, such as Pacific Jade® Indian Curry and Thai Red Curry Sauce Starters, which are rich in flavor, versatile and work perfectly as a sauce, soup or marinade. Spring Scoop also features Chef’s Line® All Natural Chicken Shawarma for restaurateurs looking to add Mediterranean flavor to their menu. More and more, millennials are seeking out dishes with sustainably sourced ingredients. In fact, 65 percent enjoy foods that are natural or organic.2 As restaurants look to cater to this trend, Scoop has developed high-quality products that are both responsibly prepared and satisfy the taste buds. Spring Scoop features several new sustainable product offerings, including Chef’s Line All Natural Fire Grilled Chicken Breast and White and Dark Turkey Burgers – simple protein dishes that chefs can customize to align with their own styles and other offerings. Both deliver the perfect blend of tender and juicy, but are also vegetarian-fed and raised without antibiotics. Eating On the Go With 70 percent of millennials purchasing grab-and-go sandwiches3, restaurants have a tremendous opportunity to grow their sales by adding portable options to their menus. Spring Scoop features a variety of meals that are perfect for the mobile millennial consumer, including fixings for the perfect sandwich with its Chef’s Line Aged Cheddar and Onion Bialys and Beef & Truffle Patties from renowned butcher Pat LaFrieda. For diners looking to eat something sweet on the go, Devonshire® Black Velvet Cookie is a delicious dessert on its own or filled with the Glenview Farms® Tahitian Vanilla Ice Cream Puck. In addition to these new product offerings, Spring Scoop features US Foods Menu, a menu design offering that helps restaurateurs design top-quality menus that highlight key dishes and engage diners. The process is fast, efficient and cost-effective. Learn more about US Foods Menu at usfoods.com/menu. For more on the full Spring Scoop lineup, visit www.usfoods.com/food/scoop and join the conversation on social media with #USFScoop. You can also like us on Facebook, follow us on Twitter and Instagram and watch our chefs in action on YouTube. 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, Ill. and generates approximately $23 billion in annual revenue. Discover more at www.usfoods.com. 3 New Ideas and Trends in Food Service, NATSO
News Article | February 21, 2017
NEW YORK, February 21, 2017 /PRNewswire/ -- Companies in the Wholesale Food industry distribute food and related products on a wholesale basis. Demand is driven largely by demographic shifts, particularly trends in population and age, working women, race and ethnicity, household size,...