US Foods (NYSE: USFD) reported Q4 EPS of $0.66, in-line with the analyst estimate of $0.66. Revenue for the quarter came in at $6.9 billion versus the consensus estimate of $7.06 billion.

Fourth Quarter Fiscal 2019 Highlights

• Total case volume increased 12.3%; independent restaurant case volume increased 11.9%
• Total organic case volume increased 0.4%; independent restaurant organic case volume increased 2.9%
• Net sales increased 14.8% to $6.9 billion; organic Net sales increased 3.0% to $6.2 billion
• Gross profit increased 13.3% to $1.2 billion
• Income from continuing operations before income taxes decreased $10 million to $122 million
• Net income decreased $8 million to $92 million
• Adjusted EBITDA increased 12.8% to $335 million; organic Adjusted EBITDA increased 6.7% to $317 million
• Diluted EPS of $0.42; Adjusted Diluted EPS increased 10.0% to $0.66

CEO Perspective

“In fiscal 2019 we continued to profitably grow our business while expanding our operating leverage for the fourth consecutive year. Full year organic Adjusted EBITDA growth of 6.2% was in line with our guidance for the year and we grew Adjusted Diluted EPS by almost 10%,” said Chairman and CEO Pietro Satriano. “Our Great Food. Made Easy. strategy continues to resonate with customers, with 56 new Scoop products launched during the year and continued enhancements to our value-added services platform. The integration of the Food Group is progressing as planned with a new leadership organization in place and the successful launch of our best-selling Scoop products in our Northwest markets now complete. We are confident in the future growth prospects for our business and our ability to achieve the 2020 guidance targets we have set for the year."

GUIDANCE:

US Foods sees FY2020 EPS of $2.70-$2.80, versus the consensus of $2.63.

• For fiscal year 2020, the company expects total case volume growth of 9-11%, Adjusted EBITDA growth of 12-15% and Adjusted Diluted EPS of $2.70-$2.80. The company expects cash capital expenditures of $325-$335 million, while fleet capital leases are expected to be approximately $80 million. Interest expense is expected to be $210-$220 million, Depreciation expense is expected to be $330-$340 million and our adjusted effective income tax rate is expected to be 25-26%.
• The company also expects total organic case volume growth of 2-3% and organic Adjusted EBITDA growth of 6-8%.
• The guidance provided above includes the expected impact of a 53rd week in fiscal year 2020 which is expected to add approximately 1% to case volume growth and Adjusted EBITDA growth.

For earnings history and earnings-related data on US Foods (USFD) click here.