US Meals Reviews Fourth Quarter and Fiscal Yr 2021 Earnings

Gives Outlook for 2022 and 2024

ROSEMONT, Ailing., February 17, 2022–(BUSINESS WIRE)–US Meals Holding Corp. (NYSE: USFD), one of many largest foodservice distributors in the USA, right this moment introduced outcomes for the fourth quarter and full fiscal yr 2021. The fourth quarter of fiscal yr 2021 included 13 weeks in comparison with 14 weeks for the fourth quarter of fiscal yr 2020, and the complete fiscal yr 2021 included 52 weeks in comparison with 53 weeks within the full fiscal yr 2020. Sure monetary outcomes on this press launch have been introduced excluding the “further week” within the fourth quarter and financial yr 2020 in an effort to supply comparable outcomes on a year-over-year foundation. Natural monetary outcomes exclude contributions from Sensible Foodservice via April 23, 2021. Sensible Foodservice was acquired on April 24, 2020.

Fourth Quarter Fiscal 2021 Highlights

  • Complete case quantity elevated 6.3%; impartial restaurant case quantity elevated 13.0%. Excluding the additional week, whole case quantity elevated 13.0% and impartial restaurant case quantity elevated 20.6%.

  • Internet gross sales elevated 24.5% to $7.6 billion.

  • Gross revenue elevated 23.2% to $1.2 billion.

  • Internet earnings accessible to widespread shareholders was $59 million.

  • Adjusted EBITDA elevated 50.6% to $262 million. The additional week contributed roughly $8 million to Adjusted EBITDA in 2020.

  • Diluted EPS was $0.26; Adjusted Diluted EPS was $0.38.

Fiscal Yr 2021 Highlights

  • Complete case quantity elevated 16.9%; impartial restaurant case quantity elevated 28.0%. Excluding the additional week, whole case quantity elevated 18.8% and impartial restaurant case quantity elevated 30.2%.

  • Complete natural case quantity elevated 14.8%; impartial restaurant natural case quantity elevated 25.1%. Excluding the additional week, whole natural case quantity elevated 16.6% and natural impartial restaurant case quantity elevated 27.1%.

  • Internet gross sales elevated 28.8% to $29.5 billion.

  • Gross revenue elevated 25.2% to $4.7 billion.

  • Internet earnings accessible to widespread shareholders was $121 million.

  • Adjusted EBITDA elevated 63.1% to $1,057 million.

  • Diluted EPS was $0.54; Adjusted Diluted EPS was $1.55.

Lengthy-Vary Plan

  • Multi-year plan, which is predicted to end in vital earnings development from the mix of worthwhile quantity development and margin growth.

  • Plan assumes continued execution of the Firm’s present technique and that US Meals will proceed to develop at 1.5x the market price for eating places and at market price for different buyer sorts.

  • Expects to ship Adjusted EBITDA of roughly $1.7 billion and Adjusted Diluted EPS of roughly $3.40 in 2024.

  • Expects to realize Internet Debt to Adjusted EBITDA leverage of two.5x-3x in 2023.

CEO Perspective

“2021 was a yr of resilience and restoration. Due to the efforts of our associates, we stayed true to our promise to assist our clients Make It,” mentioned CEO Pietro Satriano. “Within the face of continued business extensive provide chain and labor challenges, we elevated Adjusted EBITDA 63% by efficiently rising quantity and growing market share with key buyer sorts, delivered our highest gross revenue per case since turning into a publicly traded firm, and continued to enhance operational efficiencies. I’m assured that our basis of environment friendly and dependable customer support, differentiated options, and distinctive omni-channel expertise, supported by a sturdy plan of focused initiatives to ship vital Adjusted EBITDA development via 2024 and past, will drive significant worth creation for our shareholders.”

Fourth Quarter Fiscal 2021 Outcomes

Complete case quantity elevated 6.3% from the prior yr and impartial restaurant case quantity elevated 13.0% from the prior yr. Internet gross sales of $7.6 billion for the quarter elevated 24.5% from the prior yr. The rise in case quantity was primarily pushed by continued will increase in leisure and enterprise journey and restaurant visitors whereas Internet gross sales benefited from meals value inflation of 14.4% over prior yr and the elevated case volumes.

Gross revenue of $1.2 billion elevated $234 million, or 23.2%, from the prior yr, primarily on account of a rise in whole case quantity, pricing optimization, and inflation in a number of product classes. Gross revenue as a proportion of Internet gross sales was 16.3%. Adjusted Gross revenue was $1.3 billion, a 21.6% improve from the prior yr, primarily pushed by a rise in whole case quantity, pricing optimization, and product value inflation. Adjusted Gross revenue as a proportion of Internet gross sales was 16.5%.

Working bills of $1.1 billion elevated $127 million, or 13.0% from the prior yr. The rise was primarily as a consequence of larger provide chain labor prices and better non-labor distribution prices straight attributed to the rise in whole case quantity. These will increase have been partially offset by value financial savings initiatives put in place in the course of the second half of fiscal 2020. Working bills as a p.c of Internet gross sales have been 14.5%. Adjusted Working bills for the quarter have been $1.0 billion, a rise of $137 million, or 15.8% from the prior yr, primarily as a consequence of larger labor and distribution prices mentioned above, which have been partially offset by value financial savings initiatives put in place in the course of the second half of fiscal 2020. Adjusted Working bills as a p.c of Internet gross sales have been 13.1%.

Internet earnings accessible to widespread shareholders was $59 million, a rise of $82 million in comparison with the prior yr. Adjusted EBITDA was $262 million, a rise of $88 million, or 50.6%, in comparison with the prior yr. Diluted EPS was $0.26; Adjusted Diluted EPS was $0.38.

Fiscal Yr 2021 Outcomes

Complete case quantity elevated 16.9% from the prior yr, whereas whole natural case quantity elevated 14.8%. Impartial restaurant case quantity elevated 28.0%, whereas natural impartial restaurant case quantity elevated 25.1%. Internet gross sales of $29.5 billion elevated 28.8%. The rise in case quantity was primarily the results of restaurant visitors from lifting governmental in-person eating restrictions and elevated leisure and enterprise journey all year long. Internet gross sales benefited from meals value inflation of 8.9% in fiscal 2021 in addition to the elevated volumes over prior yr.

Gross revenue of $4.7 billion elevated $936 million, or 25.2%, from the prior yr, primarily on account of a rise in whole case quantity, pricing optimization, inflation in a number of product classes, and the addition of Sensible Foodservice. The rise in Gross revenue was partially offset by an unfavorable year-over-year LIFO adjustment. Gross revenue as a proportion of Internet gross sales was 15.8%. Adjusted Gross revenue was $4.8 billion, a 27.0% improve from the prior yr, primarily pushed by a rise in whole case quantity, pricing optimization, product value inflation and the addition of Sensible Foodservice. Adjusted Gross revenue as a proportion of Internet gross sales was 16.3%.

Working bills of $4.2 billion elevated $435 million, or 11.5% from the prior yr. The rise was primarily as a consequence of larger provide chain labor prices, larger non-labor distribution prices straight attributed to the rise in whole case quantity, and the addition of Sensible Foodservice. These will increase have been partially offset by $87 million in decrease allowance for uncertain accounts expense in fiscal 2021 in comparison with fiscal 2020 and value financial savings initiatives put into place in the course of the second half of fiscal 2020. Working bills as a p.c of Internet gross sales have been 14.3%. Adjusted Working bills have been $3.8 billion, a rise of $622 million, or 19.6% from the prior yr, primarily as a result of larger labor and distribution prices and the addition of Sensible Foodservice, as mentioned above, which have been partially offset by value financial savings initiatives put in place in the course of the second half of fiscal 2020. Adjusted Working bills as a p.c of Internet gross sales have been 12.8%.

Internet earnings accessible to widespread shareholders was $121 million, a rise of $375 million in comparison with the prior yr. Adjusted EBITDA was $1,057 million, a rise of $409 million, or 63.1% in comparison with the prior yr. Diluted EPS was $0.54; Adjusted Diluted EPS was $1.55.

Money Circulate and Debt

Internet money supplied by working actions for fiscal 2021 was $419 million, a rise of $6 million from the prior yr as working capital necessities elevated in keeping with the restoration of gross sales volumes in 2021. Internet money supplied by working actions for fiscal 2020 benefited from a discount in working capital wants, primarily associated to lowered gross sales attributable to the COVID-19 pandemic. Money capital expenditures for fiscal 2021 totaled $274 million, in comparison with $189 million within the prior yr interval, a rise of $85 million.

Internet Debt on the finish of fiscal yr 2021 was $4.9 billion, a lower of $57 million versus the tip of fiscal 2020. Through the fiscal yr the Firm lowered whole debt by $737 million, lowered the quantity of secured debt in its portfolio and prolonged tenor. The ratio of Internet Debt to Adjusted EBITDA was 4.6x on the finish of fiscal 2021, as in comparison with 7.6x on the finish of fiscal 2020.

Outlook for Fiscal Years 2022 and 20241

In Fiscal 2022, the Firm expects Adjusted EBITDA of $1.2-$1.3 billion and Adjusted Diluted EPS of $1.80-$2.10. The Firm additionally expects money capital expenditures of $280-$300 million, whereas fleet capital leases are anticipated to be an extra ~ $110 million. Curiosity expense is predicted to be $225-$235 million.

The Firm expects to ship Adjusted EBITDA of roughly $1.7 billion and Adjusted Diluted EPS of roughly $3.40 in 2024. The Firm expects to realize Internet debt to Adjusted EBITDA leverage of two.5-3.0x in 2023.

1 The Firm is just not offering a reconciliation of sure forward-looking non-GAAP monetary measures, together with Adjusted EBITDA and Adjusted Diluted EPS, as a result of the Firm is unable to foretell with affordable certainty the monetary influence of sure vital objects, together with restructuring prices and asset impairment costs, share-based compensation bills, non-cash impacts of LIFO reserve changes, losses on extinguishments of debt, enterprise transformation prices, different positive factors and losses, enterprise acquisition and integration associated prices and diluted earnings per share. This stuff are unsure, rely on varied components, and will have a fabric influence on GAAP reported outcomes for the steerage intervals. For a similar causes, the Firm is unable to deal with the importance of the unavailable data, which might be materials to future outcomes.

Convention Name and Webcast Data

US Meals will host a stay webcast to debate fourth quarter and financial yr 2021 outcomes on February 17, 2022 at 9 a.m. CST. The decision may also be accessed stay over the cellphone by dialing (844) 292-0976; the convention ID quantity is 5561796.

Presentation slides will probably be accessible shortly earlier than the webcast begins. The webcast, slides, and a duplicate of this press launch might be discovered within the Investor Relations part of our web site at https://ir.usfoods.com.

About US Meals

With a promise to assist its clients Make It, US Meals is one in every of America’s nice meals corporations and a number one foodservice distributor, partnering with roughly 250,000 eating places and foodservice operators to assist their companies succeed. With 69 broadline areas and 80 money and carry shops, US Meals and its 28,000 associates offers its clients with a broad and progressive meals providing and a complete suite of e-commerce, know-how and enterprise options. US Meals is headquartered in Rosemont, Ailing. Go to www.usfoods.com to study extra.

Ahead-Wanting Statements

Statements on this press launch which aren’t historic in nature, together with these underneath the heading “Outlook for Fiscal Years 2022 and 2024,” are “forward-looking statements” throughout the that means of the federal securities legal guidelines. These statements typically embrace phrases reminiscent of “imagine,” “count on,” “venture,” “anticipate,” “intend,” “plan,” “outlook,” “estimate,” “goal,” “search,” “will,” “might,” “would,” “ought to,” “may,” “forecast,” “mission,” “try,” “extra,” “aim,” or comparable expressions (though not all forward-looking statements might comprise such phrases) and are primarily based upon varied assumptions and our expertise within the business, in addition to historic developments, present circumstances, and anticipated future developments. Nevertheless, you must perceive that these statements usually are not ensures of efficiency or outcomes and there are a variety of dangers, uncertainties and different essential components that might trigger our precise outcomes to vary materially from these expressed within the forward-looking statements, together with, amongst others: financial components affecting client confidence and discretionary spending and lowering the consumption of meals ready away from house; the extent and length of the damaging influence of the COVID-19 pandemic on us; value inflation/deflation and commodity volatility; competitors; reliance on third get together suppliers and interruption of product provide or will increase in product prices; modifications in {our relationships} with clients and group buying organizations; our potential to extend or keep the best margin parts of our enterprise; achievement of anticipated advantages from value financial savings initiatives; will increase in gasoline prices; modifications in client consuming habits; value and pricing buildings; impairment costs for goodwill, indefinite-lived intangible belongings or different long-lived belongings; environmental, well being and security and different governmental regulation, together with actions taken by nationwide, state and native governments to comprise the COVID-19 pandemic, reminiscent of journey restrictions or bans, social distancing necessities, and required closures of non-essential companies; product remembers and product legal responsibility claims; our repute within the business; indebtedness and restrictions underneath agreements governing our indebtedness; rate of interest will increase; modifications within the methodology of figuring out London Interbank Provided Charge (“LIBOR”) or the alternative of LIBOR with an alternate reference price; labor relations and elevated labor prices and continued entry to certified and various labor; dangers related to mental property, together with potential infringement; disruption of present applied sciences and implementation of recent applied sciences; cybersecurity incidents and different know-how disruptions; efficient integration of acquired companies; modifications in tax legal guidelines and rules and backbone of tax disputes; hostile judgments or settlements ensuing from litigation; excessive climate circumstances, pure disasters and different catastrophic occasions, together with pandemics and the speedy unfold of contagious diseases; prices and dangers related to present and altering authorities legal guidelines and rules, and potential modifications on account of initiatives by the Biden administration; administration of retirement advantages and pension obligations; and potential prices related to shareholder activism.

For an in depth dialogue of those dangers, uncertainties and different components that might trigger our outcomes to vary materially from these anticipated or expressed in any forward-looking statements, see the part entitled “Threat Components” in our Annual Report on Kind 10-Ok for the fiscal yr ended January 2, 2021, which was filed with the Securities and Alternate Fee (“SEC”) on February 16, 2021. Further dangers and uncertainties are mentioned every so often in present, quarterly and annual experiences filed by the Firm with the SEC, which can be found on the SEC’s web site at www.sec.gov. Moreover, we function in a extremely aggressive and quickly altering atmosphere; new dangers and uncertainties might emerge every so often, and it’s not doable to foretell all dangers nor determine all uncertainties. The forward-looking statements contained on this press launch communicate solely as of the date of this press launch and are primarily based on data and estimates accessible to us presently. We undertake no obligation to replace or revise any forward-looking statements, besides as could also be required by legislation.

Non-GAAP Monetary Measures

We report our monetary leads to accordance with U.S. typically accepted accounting rules (“GAAP”). Nevertheless, Adjusted Gross revenue, Adjusted Working bills, EBITDA, Adjusted EBITDA, Internet Debt, Adjusted Internet earnings (loss) and Adjusted Diluted EPS are non-GAAP monetary measures concerning our operational efficiency and liquidity. These non-GAAP monetary measures exclude the influence of sure objects and, due to this fact, haven’t been calculated in accordance with GAAP.

We use Adjusted Gross revenue and Adjusted Working bills as supplemental measures to GAAP measures to deal with period-over-period modifications in our enterprise and imagine this data is useful to buyers. Adjusted Gross revenue is Gross revenue adjusted to take away the influence of the LIFO stock reserve changes. Adjusted Working bills are Working bills adjusted to exclude quantities that we don’t take into account a part of our core working outcomes when assessing our efficiency.

We imagine EBITDA and Adjusted EBITDA present significant supplemental details about our working efficiency as a result of they exclude quantities that we don’t take into account a part of our core working outcomes when assessing our efficiency. EBITDA is Internet earnings (loss), plus Curiosity expense-net, Revenue tax provision (profit), and Depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for (1) Restructuring prices and asset impairment costs; (2) Share-based compensation expense; (3) the non-cash influence of LIFO reserve changes; (4) loss on extinguishment of debt; (5) Enterprise transformation prices; and (6) different positive factors, losses or prices as specified within the agreements governing our indebtedness.

We use Internet Debt as a supplemental measure to GAAP measures to assessment the liquidity of our operations. Internet Debt is outlined as whole debt internet of whole Money, money equivalents and restricted money remaining on the steadiness sheet as of the tip of the newest fiscal quarter. We imagine that Internet Debt is a helpful monetary metric to evaluate our potential to pursue enterprise alternatives and investments. Internet Debt is just not a measure of our liquidity underneath GAAP and shouldn’t be thought of as an alternative choice to Money Flows Supplied by Operations or Money Flows Utilized in Financing Actions.

We imagine that Adjusted Internet earnings (loss) is a helpful measure of working efficiency for each administration and buyers as a result of it excludes objects that aren’t reflective of our core working efficiency and offers an extra view of our working efficiency together with depreciation, curiosity expense, and Revenue taxes on a constant foundation from interval to interval. Adjusted Internet earnings (loss) is Internet earnings (loss) excluding such objects as restructuring prices and asset impairment costs, Share-based compensation expense, the non-cash impacts of LIFO reserve changes, loss on extinguishment of debt, Enterprise transformation prices and different objects, and adjusted for the tax impact of the exclusions and discrete tax objects. We imagine that Adjusted Internet earnings (loss) could also be utilized by buyers, analysts, and different events to facilitate period-over-period comparisons and offers extra readability as to how components and developments influence our working efficiency.

We use Adjusted Diluted Earnings per Share, which is calculated by adjusting probably the most straight comparable GAAP monetary measure, Diluted Earnings per Share, by excluding the identical objects excluded in our calculation of Adjusted EBITDA to the extent that every such merchandise was included within the relevant GAAP monetary measure. We imagine the presentation of Adjusted Diluted Earnings per Share is beneficial to buyers as a result of the measurement excludes quantities that we don’t take into account a part of our core working outcomes when assessing our efficiency. We additionally imagine that the presentation of Adjusted EBITDA and Adjusted Diluted Earnings per Share is beneficial to buyers as a result of these metrics could also be utilized by securities analysts, buyers and different events of their analysis of the working efficiency of corporations in our business.

Administration makes use of these non-GAAP monetary measures (a) to judge our historic and potential monetary efficiency in addition to our efficiency relative to our rivals as they help in highlighting developments, (b) to set inside gross sales targets and spending budgets, (c) to measure operational profitability and the accuracy of forecasting, (d) to evaluate monetary self-discipline over operational expenditures, and (e) as an essential think about figuring out variable compensation for administration and workers. EBITDA and Adjusted EBITDA are additionally utilized in reference to sure covenants and restricted actions underneath the agreements governing our indebtedness. We additionally imagine these and comparable non-GAAP monetary measures are ceaselessly utilized by securities analysts, buyers, and different events to judge corporations in our business.

We warning readers that our definitions of Adjusted Gross revenue, Adjusted Working bills, EBITDA, Adjusted EBITDA, Internet Debt, Adjusted Internet earnings (loss) and Adjusted Diluted EPS is probably not calculated in the identical method as comparable measures utilized by different corporations. Definitions and reconciliations of the non-GAAP monetary measures to their most comparable GAAP monetary measures are included within the schedules connected to this press launch.

US FOODS HOLDING CORP.

Consolidated Steadiness Sheets

(Unaudited)

($ in thousands and thousands)

January 1, 2022

January 2, 2021

ASSETS

Present belongings

Money and money equivalents

$

148

$

828

Accounts receivable, much less allowances of $33 and $67

1,469

1,084

Vendor receivables, much less allowances of $7 and $5

145

121

Inventories—internet

1,686

1,273

Pay as you go bills

120

132

Property held on the market

8

1

Different present belongings

18

26

Complete present belongings

3,594

3,465

Property and gear—internet

2,033

2,021

Goodwill

5,625

5,637

Different intangibles—internet

830

892

Deferred tax belongings

8

1

Different belongings

431

407

Complete belongings

$

12,521

$

12,423

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY

Present liabilities:

Money overdraft legal responsibility

$

183

$

136

Accounts payable

1,662

1,218

Accrued bills and different present liabilities

610

497

Present portion of long-term debt

95

131

Complete present liabilities

2,550

1,982

Lengthy-term debt

4,916

5,617

Deferred tax liabilities

307

270

Different long-term liabilities

479

505

Complete liabilities

8,252

8,374

Mezzanine fairness:

Sequence A convertible most well-liked inventory

534

519

Shareholders’ fairness:

Frequent inventory

2

2

Further paid-in capital

2,970

2,901

Retained earnings

782

661

Collected different complete loss

(19

)

(34

)

Complete shareholders’ fairness

3,735

3,530

Complete liabilities, mezzanine fairness and shareholders’ fairness

$

12,521

$

12,423

US FOODS HOLDING CORP.

Consolidated Statements of Operations

(Unaudited)

For the quarter ended

For the yr ended

($ in thousands and thousands, besides share and per share information)

January 1, 2022

January 2, 2021

January 1, 2022

January 2, 2021

Internet gross sales

$

7,639

$

6,138

$

29,487

$

22,885

Value of products offered

6,397

5,130

24,832

19,166

Gross revenue

1,242

1,008

4,655

3,719

Distribution, promoting and administrative prices

1,105

978

4,220

3,757

Restructuring prices and asset impairment costs

11

39

Complete working bills

1,105

978

4,231

3,796

Working earnings (loss)

137

30

424

(77

)

Different earnings—internet

(7

)

(5

)

(26

)

(21

)

Curiosity expense—internet

55

60

213

238

Loss on extinguishment of debt

23

Revenue (loss) earlier than earnings taxes

89

(25

)

214

(294

)

Revenue tax provision (profit)

20

(15

)

50

(68

)

Internet earnings (loss)

$

69

$

(10

)

$

164

$

(226

)

Internet earnings (loss)

$

69

$

(10

)

$

164

$

(226

)

Sequence A convertible most well-liked inventory dividends

(10

)

(13

)

(43

)

(28

)

Internet earnings (loss) accessible to widespread shareholders

$

59

$

(23

)

$

121

$

(254

)

Internet earnings (loss) per share

Primary

$

0.26

$

(0.11

)

$

0.55

$

(1.15

)

Diluted

$

0.26

$

(0.11

)

$

0.54

$

(1.15

)

Weighted-average widespread shares excellent

Primary

222,583,630

220,373,388

221,864,507

219,838,120

Diluted

225,709,620

220,373,388

225,231,760

219,838,120

US FOODS HOLDING CORP.

Consolidated Statements of Money Flows

(Unaudited)

For the yr ended

($ in thousands and thousands)

January 1, 2022

January 2, 2021

Money Flows From Working Actions:

Internet earnings (loss)

$

164

$

(226

)

Changes to reconcile internet earnings (loss) to internet money supplied by working actions:

Depreciation and amortization

378

422

Acquire on disposal of property and gear—internet

(1

)

(17

)

Tangible asset impairment costs

1

3

Intangible asset impairment costs

7

9

Loss on extinguishment of debt

23

Amortization of deferred financing prices

15

16

Deferred tax provision (profit)

38

(51

)

Share-based compensation expense

48

40

(Profit) provision for uncertain accounts

(24

)

63

Adjustments in working belongings and liabilities, internet of enterprise acquisitions:

(Improve) lower in receivables

(386

)

334

(Improve) lower in inventories

(413

)

201

Lower (improve) in pay as you go bills and different belongings

4

(30

)

Improve (lower) in accounts payable and money overdraft legal responsibility

471

(339

)

Improve (lower) in accrued bills and different liabilities

94

(12

)

Internet money supplied by working actions

419

413

Money Flows From Investing Actions:

Acquisition of companies—internet of money

(972

)

Proceeds from gross sales of divested belongings

5

7

Proceeds from gross sales of property and gear

7

44

Purchases of property and gear

(274

)

(189

)

Internet money utilized in investing actions

(262

)

(1,110

)

Money Flows From Financing Actions:

Proceeds from debt borrowings

2,305

3,645

Principal funds on debt and financing leases

(3,105

)

(2,692

)

Internet proceeds from issuance of Sequence A convertible most well-liked inventory

491

Dividends paid on Sequence A convertible most well-liked inventory

(28

)

Debt financing prices and charges

(30

)

(33

)

Proceeds from worker inventory buy plan

20

18

Proceeds from train of inventory choices

15

3

Tax withholding funds for internet share-settled fairness awards

(14

)

(5

)

Internet money (utilized in) supplied by financing actions

(837

)

1,427

Internet (lower) improve in money and money equivalents

(680

)

730

Money, money equivalents and restricted money—starting of yr

828

98

Money, money equivalents and restricted money—finish of yr

$

148

$

828

Supplemental disclosures of money move data:

Curiosity paid—internet of quantities capitalized

$

185

$

216

Revenue taxes (obtained) paid—internet

1

(1

)

Property and gear purchases included in accounts payable

40

21

Property and gear transferred to belongings held on the market

11

24

Leased belongings obtained in alternate for financing lease liabilities

56

73

Leased belongings obtained in alternate for working lease liabilities

32

48

Cashless train of inventory choices

1

Paid-in-kind Sequence A convertible most well-liked inventory dividends

15

28

US FOODS HOLDING CORP.

Non-GAAP Reconciliation

(Unaudited)

For the quarter ended

Consolidated US Meals

($ in thousands and thousands, besides share and per share information)

January 1, 2022

January 2, 2021

Change

%

Internet earnings (loss) accessible to widespread shareholders (GAAP)

$

59

$

(23

)

$

82

NM

Sequence A Most popular Inventory Dividends

(10

)

(13

)

3

(23.1

) %

Internet earnings (loss) (GAAP)

69

(10

)

79

NM

Curiosity expense—internet

55

60

(5

)

(8.3

) %

Revenue tax provision (profit)

20

(15

)

35

NM

Depreciation expense

81

86

(5

)

(5.8

) %

Amortization expense

11

20

(9

)

(45.0

) %

EBITDA (Non-GAAP)

236

141

95

67.4

%

Changes:

Share-based compensation expense (1)

12

11

1

9.1

%

LIFO reserve changes (2)

15

16

(1

)

(6.3

) %

Enterprise transformation prices (3)

5

14

(9

)

(64.3

) %

COVID-19 dangerous debt profit (4)

(18

)

18

(100.0

) %

COVID-19 product donations and stock changes (5)

10

(10

)

(100.0

) %

COVID-19 different associated bills (6)

2

(2

)

(200.0

) %

Enterprise acquisition and integration associated prices and different (7)

(8

)

2

(10

)

NM

Adjusted EBITDA (Non-GAAP)