Solid local case growth and expense management
drives $60 million adjusted operating income improvement
Sysco Corporation (NYSE:SYY) today announced financial results for
its 13-week third fiscal quarter ended March 26, 2016.¹
Third Quarter Fiscal 2016 Highlights²
- Sales increased 2.2% to $12.0 billion;
- Gross profit increased 4.1% to $2.1 billion; gross margin
increased 34 basis points to 17.9%;
- Adjusted operating income increased 16.0% to $438 million;
and
- Adjusted Earnings Per Share (EPS) increased $0.06 to
$0.46.
First 39 Weeks Fiscal 2016 Highlights²
- Sales increased 1.2% to $36.7 billion;
- Gross profit increased 3.3% to $6.5 billion; gross margin
increased 35 basis points to 17.8%;
- Adjusted operating income increased 7.7% to $1.4 billion;
and
- Adjusted (EPS) increased $0.13 to $1.46.
“Our third quarter financial results were strong as we remained
focused on servicing the needs of our customers and made steady
progress toward our three-year plan financial objectives. As a
result, we generated solid gross profit dollar growth of 4 percent,
while effectively managing ongoing deflationary pressures,” said
Bill DeLaney, Sysco’s chief executive officer. “Our favorable local
case growth and expense management trends have driven improved
operating income performance this year, and we are committed to
sustaining this momentum in our fourth quarter and into fiscal
2017.”
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. ²On a GAAP basis, operating income was $378 million
for the third quarter, an increase of 15.4% from the prior year,
and $1.3 billion for year to date, an increase of 17.6% from the
prior year. Diluted EPS was $0.38 for the third quarter, an
increase of 26.7% from the prior year, and $1.26 for year to date,
an increase of 22% from the prior year.
Third Quarter Fiscal 2016 Summary
Sales for the third quarter were $12.0 billion, an increase of
2.2% compared to the same period last year. Overall food cost
deflation was 0.4% (0.8% in U.S. broadline), as measured by the
estimated change in Sysco's product costs, with deflation in the
meat, seafood and poultry categories partially offset by modest
inflation in other categories. In addition, sales from acquisitions
completed within the last 12 months increased sales by 0.9%, and
the impact of changes in foreign exchange rates decreased sales by
1.0%. Case volume for the company’s U.S. broadline operations
increased 3.6% during the quarter. Local case growth within
U.S. broadline operations increased 3.4%. Gross profit was $2.1
billion, an increase of 4.1% compared to the same period last year.
Gross margin increased 34 basis points to 17.9%.
Non-GAAP Operating Income, Net Earnings and EPS Adjusted
operating expenses increased $25 million, or 1.5%, compared to the
same period last year, due mainly to higher case volume-related
expenses and incentive expense. Adjusted operating income was $438
million, an increase of $60 million, or 16.0%, compared to the same
period last year. Adjusted interest expense was $47 million, an
increase of $19 million compared to the same period last year,
reflecting the increased adjusted debt, the proceeds from which
were used primarily to fund the company’s accelerated share
repurchase program. Adjusted net earnings were $261 million, an
increase of $24 million, or 10.0%, compared to the same period last
year. Adjusted diluted EPS was $0.46, which was 15.0% higher
compared to the same period last year.
GAAP Operating Income, Net Earnings and EPS Operating expenses
increased $35 million, or 2.0%, compared to the same period last
year, due mainly to higher case volume-related expenses and
incentive expense. Operating income was $378 million, an increase
of $50 million, or 15.4%, compared to the same period last year.
Interest expense was $58 million, a decrease of $12 million
compared to the same period last year. Net earnings were $217
million, an increase of $40 million, or 22.7%, compared to the same
period last year. Diluted EPS was $0.38, which was 26.7% higher
compared to the same period last year.
First 39 Weeks of Fiscal 2016 Summary
Sales for the first 39 weeks of fiscal 2016 were $36.7 billion,
an increase of 1.2% compared to the same period last year. Overall
food cost deflation was 0.5% (0.9% in U.S. broadline), as measured
by the estimated change in Sysco's product costs, with deflation in
the meat, seafood, poultry and dairy categories partially offset by
modest inflation in other categories. In addition, sales from
acquisitions completed within the last 12 months increased sales by
0.6%, and the impact of changes in foreign exchange rates decreased
sales by 1.6%. Case volume for the company’s U.S. broadline
operations grew 3.6% compared to the same period last year. Local
case growth within U.S. broadline operations increased 2.7%. Gross
profit was $6.5 billion, an increase of 3.3% compared to the same
period last year. Gross margin increased 35 basis points to
17.8%.
Non-GAAP Operating Income, Net Earnings and EPS Adjusted
operating expenses increased $108 million, or 2.1%, compared to the
same period last year, due mainly to higher case volume-related
expenses and incentive expense. Adjusted operating income was $1.4
billion, an increase of $98 million, or 7.7%, compared to the same
period last year. Adjusted interest expense was $127 million, an
increase of $46 million compared to the same period last year,
reflecting the increased debt, the proceeds from which were used
primarily to fund the company’s accelerated share repurchase
program. Adjusted net earnings were $848 million, an increase of
$57 million, or 7.3%, compared to the same period last year.
Adjusted diluted EPS was $1.46, which was 9.8% higher compared to
the same period last year.
GAAP Operating Income, Net Earnings and EPS Operating expenses
increased $11 million, or 0.2%, compared to the same period last
year, due mainly to higher case volume-related expenses and
incentive expense, partially offset by lower merger-related
expenses. Operating income was $1.3 billion, an increase of $195
million, or 17.6%, compared to the same period last year. Interest
expense was $232 million, an increase of $54 million compared to
the same period last year. Net earnings were $734 million, an
increase of $120 million, or 19.6%, compared to the same period
last year. Diluted EPS was $1.26, which was 22.3% higher compared
to the same period last year.
Capital Spending and Cash Flow
Capital expenditures, net of proceeds from sales of plant and
equipment, totaled $348 million for the first 39 weeks of fiscal
2016. Cash flow from operations was $1.0 billion for the first 39
weeks of fiscal 2016, which was $128 million higher compared to the
same period last year. Free cash flow for the first 39 weeks of
fiscal 2016 was $641 million, which was $202 million higher
compared to the same period last year.
Conference Call & Webcast
Sysco’s third quarter fiscal 2016 earnings conference call will
be held on Monday, May 2, 2016, at 10:00 a.m. Eastern. A live
webcast of the call, a copy of this news release and a slide
presentation will be available online at investors.sysco.com.
|
|
|
|
|
|
|
13-Week Period Ended |
39-Week Period Ended |
|
Financial Comparison |
March 26, 2016 |
Change |
March 26, 2016 |
Change |
|
Sales: |
$12.0 billion |
|
0.0 |
% |
$36.7 billion |
|
0.0 |
% |
|
Real Growth (non-gaap)(1) |
|
2.7 |
% |
150 bps |
|
2.7 |
% |
130 bps |
|
Food Cost Inflation |
|
-0.4 |
% |
-410 bps |
|
-0.5 |
% |
-530 bps |
|
Acquisitions |
|
0.9 |
% |
30 bps |
|
0.6 |
% |
0 bps |
|
Impact of Foreign Exchange Rate Translation |
|
-1.0 |
% |
30 bps |
|
-1.6 |
% |
-70 bps |
|
Gross Profit: |
$2.1 billion |
|
4.1 |
% |
$6.5 billion |
|
3.3 |
% |
|
Gross Margin |
|
17.85 |
% |
34 bps |
|
17.80 |
% |
35 bps |
|
|
|
|
|
|
|
Non-GAAP(1): |
|
|
|
|
|
Operating Expenses |
$1.7 billion |
|
1.5 |
% |
$5.2 billion |
|
2.1 |
% |
|
Operating Income |
$438 million |
|
16.0 |
% |
$1.4 billion |
|
7.7 |
% |
|
Operating Margin |
|
3.65 |
% |
43 bps |
|
3.76 |
% |
23 bps |
|
Net Income |
$261 million |
|
10.0 |
% |
$848 million |
|
7.3 |
% |
|
Diluted Earnings Per Share |
$ |
0.46 |
|
|
15.0 |
% |
$ |
1.46 |
|
|
9.8 |
% |
|
|
|
|
|
|
|
GAAP: |
|
|
|
|
|
Operating Expenses |
$1.8 billion |
|
2.0 |
% |
$5.2 billion |
|
0.2 |
% |
|
Certain Items |
$60 million |
|
20.1 |
% |
$77 million |
|
-55.6 |
% |
|
Operating Income |
$378 million |
|
15.4 |
% |
$1.3 billion |
|
17.6 |
% |
|
Operating Margin |
|
3.15 |
% |
36 bps |
|
3.55 |
% |
50 bps |
|
Net Earnings |
$217 million |
|
22.7 |
% |
$734 million |
|
19.6 |
% |
|
Diluted Earnings Per Share |
$ |
0.38 |
|
|
26.7 |
% |
$ |
1.26 |
|
|
22.3 |
% |
|
Dividends Paid Per Share (2) |
$ |
0.31 |
|
|
3.3 |
% |
$ |
0.91 |
|
|
3.4 |
% |
|
|
|
|
|
|
|
Business Highlights |
|
|
|
|
|
Total Sales: |
$12.0
billion |
|
2.2 |
% |
$36.7
billion |
|
1.2 |
% |
|
Broadline |
$9.5 billion |
|
2.2 |
% |
$29.1 billion |
|
1.1 |
% |
|
SYGMA |
$1.5 billion |
|
-0.6 |
% |
$4.5 billion |
|
-3.4 |
% |
|
Other |
$1.4 billion |
|
7.5 |
% |
$4.3 billion |
|
11.2 |
% |
|
Intersegment |
($354) million |
|
11.8 |
% |
($1,117) million |
|
15.9 |
% |
|
|
|
|
|
|
|
Case Growth: |
|
|
|
|
|
Total Broadline |
|
3.3 |
% |
30 bps |
|
3.3 |
% |
40 bps |
|
Local |
|
3.3 |
% |
120 bps |
|
2.9 |
% |
110 bps |
|
U.S. Broadline |
|
3.6 |
% |
50 bps |
|
3.6 |
% |
60 bps |
|
Local |
|
3.4 |
% |
170 bps |
|
2.7 |
% |
120 bps |
|
|
|
|
|
|
|
Sysco Brand Sales: |
|
|
|
|
|
U.S. Broadline |
|
36.1 |
% |
0 bps |
|
36.6 |
% |
-2 bps |
|
Local |
|
43.6 |
% |
56 bps |
|
43.8 |
% |
88 bps |
|
Note: |
|
|
|
(1) A reconciliation of non-GAAP measures is included in
this release. |
|
|
|
(2) Based on dividends paid through March 26, 2016 |
|
Individual components in the table above may not sum to the
totals due to rounding. |
|
|
|
About Sysco
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 194 distribution facilities
serving approximately 425,000 customers. For fiscal year 2015 that
ended June 27, 2015, the company generated sales of more than $48
billion. 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.
Forward-Looking Statements
Statements made in this news release or in our earnings call for
the third quarter of fiscal 2016 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 plans and expectations related to our
three-year financial objectives, including targets for adjusted
operating income and adjusted ROIC, and the key levers for
realizing these goals, expectations regarding the Brakes Group
acquisition and related benefits, plans to reduce administrative
costs, including the reduction of our U.S. broadline markets,
expectations regarding expense management, expectations regarding
food cost deflation and currency translation, and expectations
regarding capital expenditures. 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, and such
expansion efforts 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 accounting treatment of
any acquisitions may change based on management’s subjective
evaluation. Expectations regarding share repurchases are subject to
various factors beyond management’s control, including fluctuations
in the stock market, and decisions regarding share repurchases are
subject to change based on management’s subjective evaluation of
the company’s needs. Expectations regarding tax rates are also
subject to various factors beyond management’s control. For a
discussion of additional factors impacting Sysco’s business, see
the company’s Annual Report on Form 10-K for the year ended
June 27, 2015, 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.
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands, Except for Share and Per Share
Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period
Ended |
|
39-Week Period
Ended |
|
|
|
Mar. 26, 2016 |
|
Mar. 28, 2015 |
|
Mar. 26, 2016 |
|
Mar. 28, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
$ |
|
12,002,791 |
|
|
$ |
|
11,746,659 |
|
|
$ |
|
36,719,028 |
|
|
$ |
|
36,278,814 |
|
|
Cost of sales |
|
|
|
9,859,966 |
|
|
|
|
9,689,161 |
|
|
|
|
30,181,394 |
|
|
|
|
29,947,462 |
|
|
Gross
profit |
|
|
2,142,825 |
|
|
|
|
2,057,498 |
|
|
|
|
6,537,634 |
|
|
|
|
6,331,352 |
|
|
Operating
expenses |
|
|
1,765,207 |
|
|
|
|
1,730,190 |
|
|
|
|
5,233,959 |
|
|
|
|
5,222,985 |
|
|
Operating
income |
|
|
377,618 |
|
|
|
|
327,308 |
|
|
|
|
1,303,675 |
|
|
|
|
1,108,367 |
|
|
Interest
expense |
|
|
57,699 |
|
|
|
|
69,550 |
|
|
|
|
231,841 |
|
|
|
|
177,526 |
|
|
Other
expense (income), net |
|
|
(6,952 |
) |
|
|
|
(8,577 |
) |
|
|
|
(29,956 |
) |
|
|
|
(8,558 |
) |
|
Earnings
before income taxes |
|
|
326,871 |
|
|
|
|
266,335 |
|
|
|
|
1,101,790 |
|
|
|
|
939,399 |
|
|
Income
taxes |
|
|
109,735 |
|
|
|
|
89,380 |
|
|
|
|
367,835 |
|
|
|
|
325,652 |
|
|
Net
earnings |
$ |
|
217,136 |
|
|
$ |
|
176,955 |
|
|
$ |
|
733,955 |
|
|
$ |
|
613,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
|
0.38 |
|
|
$ |
|
0.30 |
|
|
$ |
|
1.27 |
|
|
$ |
|
1.04 |
|
|
Diluted earnings per
share |
|
|
0.38 |
|
|
|
|
0.30 |
|
|
|
|
1.26 |
|
|
|
|
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
shares outstanding |
|
|
566,487,516 |
|
|
|
|
594,030,427 |
|
|
|
|
576,651,249 |
|
|
|
|
591,009,787 |
|
|
Diluted shares
outstanding |
|
|
|
570,814,798 |
|
|
|
|
598,921,070 |
|
|
|
|
580,980,865 |
|
|
|
|
596,047,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share |
|
$ |
|
0.31 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.92 |
|
|
$ |
|
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|
|
|
|
|
|
|
|
(In
Thousands, Except for Share Data) |
|
|
|
|
|
|
|
|
|
Mar. 26, 2016 |
|
June 27, 2015 |
|
Mar. 28, 2015 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
|
610,838 |
|
|
$ |
|
5,130,044 |
|
|
$ |
|
5,084,704 |
|
|
Accounts
and notes receivable, less allowances of $66,066, $41,720 and
$75,969 |
|
|
3,509,438 |
|
|
|
|
3,353,381 |
|
|
|
|
3,496,254 |
|
|
Inventories |
|
|
2,703,635 |
|
|
|
|
2,691,823 |
|
|
|
|
2,649,752 |
|
|
Deferred
income taxes |
|
|
- |
|
|
|
|
135,254 |
|
|
|
|
140,284 |
|
|
Prepaid
expenses and other current assets |
|
|
119,408 |
|
|
|
|
93,039 |
|
|
|
|
80,965 |
|
|
Prepaid
income taxes |
|
|
16,714 |
|
|
|
|
90,763 |
|
|
|
|
69,348 |
|
|
Total
current assets |
|
|
6,960,033 |
|
|
|
|
11,494,304 |
|
|
|
|
11,521,307 |
|
Plant and equipment at cost, less depreciation |
|
|
3,900,470 |
|
|
|
|
3,982,143 |
|
|
|
|
3,970,261 |
|
Other assets |
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
2,079,529 |
|
|
|
|
1,959,817 |
|
|
|
|
1,933,385 |
|
|
Intangibles, less amortization |
|
|
193,672 |
|
|
|
|
154,809 |
|
|
|
|
154,277 |
|
|
Restricted cash |
|
|
- |
|
|
|
|
168,274 |
|
|
|
|
166,208 |
|
|
Other
assets |
|
|
217,390 |
|
|
|
|
229,934 |
|
|
|
|
198,707 |
|
|
Total
other assets |
|
|
2,490,591 |
|
|
|
|
2,512,834 |
|
|
|
|
2,452,577 |
|
Total assets |
$ |
|
13,351,094 |
|
|
$ |
|
17,989,281 |
|
|
$ |
|
17,944,145 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Notes
payable |
$ |
|
79,836 |
|
|
$ |
|
70,751 |
|
|
$ |
|
79,620 |
|
|
Accounts
payable |
|
|
2,906,651 |
|
|
|
|
2,881,953 |
|
|
|
|
2,836,430 |
|
|
Accrued
expenses |
|
|
1,118,410 |
|
|
|
|
1,467,610 |
|
|
|
|
1,109,887 |
|
|
Accrued
income taxes |
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Current
maturities of long-term debt |
|
|
7,175 |
|
|
|
|
4,979,301 |
|
|
|
|
313,919 |
|
|
Total
current liabilities |
|
|
4,112,072 |
|
|
|
|
9,399,615 |
|
|
|
|
4,339,856 |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
4,274,884 |
|
|
|
|
2,271,825 |
|
|
|
|
7,235,941 |
|
|
Deferred
income taxes |
|
|
107,136 |
|
|
|
|
81,591 |
|
|
|
|
117,674 |
|
|
Other
long-term liabilities |
|
|
810,642 |
|
|
|
|
934,722 |
|
|
|
|
898,062 |
|
|
Total other
liabilities |
|
|
5,192,662 |
|
|
|
|
3,288,138 |
|
|
|
|
8,251,677 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
76,929 |
|
|
|
|
41,304 |
|
|
|
|
39,729 |
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
Preferred
stock, par value $1 per share, Authorized 1,500,000 shares, issued
none |
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Common
stock, par value $1 per share, Authorized 2,000,000,000 shares,
issued 765,174,900 shares |
|
|
765,175 |
|
|
|
|
765,175 |
|
|
|
|
765,175 |
|
|
Paid-in
capital |
|
|
1,039,236 |
|
|
|
|
1,213,999 |
|
|
|
|
1,185,012 |
|
|
Retained
earnings |
|
|
8,964,542 |
|
|
|
|
8,751,985 |
|
|
|
|
8,857,277 |
|
|
Accumulated
other comprehensive loss |
|
|
(988,101 |
) |
|
|
|
(923,197 |
) |
|
|
|
(920,140 |
) |
|
Treasury
stock at cost, 200,223,397, 170,857,231 and 171,860,470 shares |
|
|
(5,811,421 |
) |
|
|
|
(4,547,738 |
) |
|
|
|
(4,574,441 |
) |
|
Total
shareholders' equity |
|
|
3,969,431 |
|
|
|
|
5,260,224 |
|
|
|
|
5,312,883 |
|
Total liabilities and shareholders' equity |
$ |
|
13,351,094 |
|
|
$ |
|
17,989,281 |
|
|
$ |
|
17,944,145 |
|
|
|
|
|
|
|
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
CONSOLIDATED CASH FLOWS (Unaudited) |
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
39-Week Period
Ended |
|
|
|
|
Mar. 26, 2016 |
|
Mar. 28, 2015 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net earnings |
$ |
|
733,955 |
|
|
$ |
|
613,747 |
|
|
|
Adjustments to reconcile net earnings to cash provided
by operating activities: |
|
|
|
|
|
|
|
|
Share-based
compensation expense |
|
|
66,333 |
|
|
|
|
61,698 |
|
|
|
|
Depreciation and amortization |
|
|
460,664 |
|
|
|
|
411,842 |
|
|
|
|
Amortization of debt issuance and other debt-related costs |
|
|
36,088 |
|
|
|
|
24,057 |
|
|
|
|
Loss on
extinguishment of debt |
|
|
86,460 |
|
|
|
|
- |
|
|
|
|
Deferred
income taxes |
|
|
125,527 |
|
|
|
|
5,237 |
|
|
|
|
Provision
for losses on receivables |
|
|
15,596 |
|
|
|
|
17,256 |
|
|
|
|
Other
non-cash items |
|
|
(18,918 |
) |
|
|
|
(10,177 |
) |
|
|
Additional changes in certain assets and liabilities, net of
effect of businesses acquired: |
|
|
|
|
|
|
|
|
(Increase)
in receivables |
|
|
(174,826 |
) |
|
|
|
(177,018 |
) |
|
|
|
(Increase)
in inventories |
|
|
(6,825 |
) |
|
|
|
(97,389 |
) |
|
|
|
Decrease in
prepaid expenses and other current assets |
|
|
20,530 |
|
|
|
|
1,540 |
|
|
|
|
Increase in
accounts payable |
|
|
11,358 |
|
|
|
|
37,239 |
|
|
|
|
(Decrease)
increase in accrued expenses |
|
|
(357,503 |
) |
|
|
|
100,921 |
|
|
|
|
Increase
(decrease) in accrued income taxes |
|
|
93,601 |
|
|
|
|
(13,323 |
) |
|
|
|
Decrease
(increase) in other assets |
|
|
4,954 |
|
|
|
|
(4,396 |
) |
|
|
|
(Decrease)
in other long-term liabilities |
|
|
(84,076 |
) |
|
|
|
(96,838 |
) |
|
|
|
Excess tax
benefits from share-based compensation arrangements |
|
|
(23,937 |
) |
|
|
|
(13,897 |
) |
|
|
Net cash provided by operating activities |
|
|
988,981 |
|
|
|
|
860,499 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Additions to plant and equipment |
|
|
(360,883 |
) |
|
|
|
(437,286 |
) |
|
|
Proceeds from sales of plant and equipment |
|
|
12,623 |
|
|
|
|
15,404 |
|
|
|
Acquisition of businesses, net of cash acquired |
|
|
(167,701 |
) |
|
|
|
(29,177 |
) |
|
|
Decrease (increase) in restricted cash |
|
|
168,274 |
|
|
|
|
(20,796 |
) |
|
|
Purchase of foreign currency options |
|
|
(34,648 |
) |
|
|
|
- |
|
|
|
Net cash used for investing activities |
|
|
(382,335 |
) |
|
|
|
(471,855 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Bank and commercial paper borrowings (repayments), net |
|
|
- |
|
|
|
|
(129,999 |
) |
|
|
Other debt borrowings |
|
|
2,028,639 |
|
|
|
|
5,045,345 |
|
|
|
Other debt repayments |
|
|
(77,842 |
) |
|
|
|
(34,184 |
) |
|
|
Redemption of senior notes |
|
|
(5,050,000 |
) |
|
|
|
- |
|
|
|
Debt issuance costs |
|
|
(20,491 |
) |
|
|
|
(30,980 |
) |
|
|
Cash paid for settlement of cash flow hedge |
|
|
(6,134 |
) |
|
|
|
(188,840 |
) |
|
|
Cash received from the termination of interest rate swap
agreements |
|
14,496 |
|
|
|
|
- |
|
|
|
Proceeds from stock option exercises |
|
|
222,798 |
|
|
|
|
201,764 |
|
|
|
Accelerated share and treasury stock purchases |
|
|
(1,711,481 |
) |
|
|
|
- |
|
|
|
Dividends paid |
|
|
(523,665 |
) |
|
|
|
(516,540 |
) |
|
|
Excess tax benefits from share-based compensation
arrangements |
|
|
23,937 |
|
|
|
|
13,897 |
|
|
|
Net cash (used for) provided by financing activities |
|
|
(5,099,743 |
) |
|
|
|
4,360,463 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash |
|
|
(26,109 |
) |
|
|
|
(77,449 |
) |
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(4,519,206 |
) |
|
|
|
4,671,658 |
|
|
Cash and cash equivalents at beginning of period |
|
|
5,130,044 |
|
|
|
|
413,046 |
|
|
Cash and cash equivalents at end of period |
$ |
|
610,838 |
|
|
$ |
|
5,084,704 |
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
$ |
|
158,957 |
|
|
$ |
|
115,969 |
|
|
|
|
Income
taxes |
|
|
165,904 |
|
|
|
|
345,624 |
|
|
|
|
|
|
|
|
|
|
|
Sysco
Corporation and its Consolidated Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Reconciliation
(Unaudited) |
|
|
|
Impact of Certain Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands, Except for Share and Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco’s results of operations are impacted by certain items
which include restructuring costs (consisting of severance charges,
facility closure charges, professional fees incurred related to our
three-year strategic plan and costs associated with changes to our
business technology strategy), acquisition costs (consisting of
merger and integration planning and termination costs in connection
with the merger that had been proposed with US Foods, Inc. (US
Foods) and Brakes transaction costs for the pending acquisition of
these operations), and acquisition financing costs (consisting of
US Foods related financing costs and Brakes financing loan
costs). The US Foods costs were limited to the first quarter
of fiscal 2016 and the first 39 weeks of fiscal 2015. The
Brakes costs were limited to the third quarter of fiscal
2016. These fiscal 2016 and fiscal 2015 items are
collectively referred to as "Certain Items". Management
believes that adjusting its operating expenses, operating income,
operating margin as a percentage of sales, interest expense, net
earnings and diluted earnings per share to remove these Certain
Items provides an important perspective with respect to our
underlying business trends and results and provides meaningful
supplemental information to both management and investors that (1)
is indicative of the performance of the company's underlying
operations and facilitates comparisons on a year-over-year basis
and (2) removes those items that are difficult to predict and are
often unanticipated, and which, as a result are difficult to
include in analyst's financial models and our investors'
expectations with any degree of specificity. As indicated
above, Sysco believes that the adjusted totals facilitate
comparison on a year-over-year basis. |
|
|
|
The company uses these non-GAAP measures when evaluating its
financial results as well as for internal planning and forecasting
purposes. These financial measures should not be used as a
substitute for GAAP measures in assessing the company’s results of
operations for the periods presented. An analysis of any
non-GAAP financial measure should be used in conjunction with
results presented in accordance with GAAP. As a result, in
the tables that follow, each period presented is adjusted to remove
the Certain Items noted above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
Mar. 26, 2016 |
|
13-Week Period Ended
Mar. 28, 2015 |
|
13-Week Period Change
in Dollars |
|
13-Week Period
% Change |
|
|
Sales |
$ |
|
12,002,791 |
|
|
$ |
|
11,746,659 |
|
|
$ |
|
256,132 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
|
1,765,207 |
|
|
$ |
|
1,730,190 |
|
|
$ |
|
35,017 |
|
|
2.0 |
% |
|
Impact of restructuring
costs (1) |
|
|
(59,443 |
) |
|
|
|
(365 |
) |
|
|
|
(59,078 |
) |
|
NM |
|
|
|
Impact of
acquisition-related costs (2) |
|
|
(586 |
) |
|
|
|
(49,609 |
) |
|
|
|
49,023 |
|
|
-98.8 |
|
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
|
1,705,178 |
|
|
$ |
|
1,680,216 |
|
|
$ |
|
24,962 |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
|
377,618 |
|
|
$ |
|
327,308 |
|
|
$ |
|
50,310 |
|
|
15.4 |
% |
|
Impact of restructuring
costs (1) |
|
|
59,443 |
|
|
|
|
365 |
|
|
|
|
59,078 |
|
|
NM |
|
|
|
Impact of
acquisition-related costs (2) |
|
|
586 |
|
|
|
|
49,609 |
|
|
|
|
(49,023 |
) |
|
-98.8 |
|
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
|
437,647 |
|
|
$ |
|
377,282 |
|
|
$ |
|
60,365 |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin (GAAP) |
|
|
3.15 |
% |
|
|
|
2.79 |
% |
|
|
|
0.36 |
% |
|
12.9 |
% |
|
Operating
margin (Non-GAAP) |
|
|
3.65 |
% |
|
|
|
3.21 |
% |
|
|
|
0.43 |
% |
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense (GAAP) |
$ |
|
57,699 |
|
|
$ |
|
69,550 |
|
|
$ |
|
(11,851 |
) |
|
-17.0 |
% |
|
Impact of acquisition
financing costs (3) |
|
|
(10,495 |
) |
|
|
|
(41,331 |
) |
|
|
|
30,836 |
|
|
-74.6 |
|
|
|
Adjusted
interest expense (Non-GAAP) |
$ |
|
47,204 |
|
|
$ |
|
28,219 |
|
|
$ |
|
18,984 |
|
|
67.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(GAAP) (4) |
$ |
|
217,136 |
|
|
$ |
|
176,955 |
|
|
$ |
|
40,181 |
|
|
22.7 |
% |
|
|
Impact of restructuring
cost (net of tax) (1) |
|
|
37,271 |
|
|
|
|
243 |
|
|
|
|
37,028 |
|
|
NM |
|
|
|
Impact of
acquisition-related costs (net of tax) (2) |
|
|
368 |
|
|
|
|
32,960 |
|
|
|
|
(32,592 |
) |
|
-98.9 |
|
|
|
Impact of acquisition
financing costs (net of tax) (3) |
|
|
6,581 |
|
|
|
|
27,460 |
|
|
|
|
(20,879 |
) |
|
-76.0 |
|
|
|
Net earnings
adjusted for certain items (Non-GAAP) (4) |
$ |
|
261,356 |
|
|
$ |
|
237,618 |
|
|
$ |
|
23,738 |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share (GAAP) (4) |
$ |
|
0.38 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.08 |
|
|
26.7 |
% |
|
|
Impact of restructuring
costs (1) |
|
|
0.07 |
|
|
|
|
- |
|
|
|
|
0.07 |
|
|
NM |
|
|
|
Impact of
acquisition-related costs (2) |
|
|
- |
|
|
|
|
0.06 |
|
|
|
|
(0.06 |
) |
|
NM |
|
|
|
Impact of acquisition
financing costs (3) |
|
|
0.01 |
|
|
|
|
0.05 |
|
|
|
|
(0.04 |
) |
|
-80.0 |
|
|
|
Diluted EPS
adjusted for certain items (Non-GAAP) (4) (5) |
$ |
|
0.46 |
|
|
$ |
|
0.40 |
|
|
$ |
|
0.06 |
|
|
15.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding |
|
|
570,814,798 |
|
|
|
|
598,921,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes severance charges, professional fees on 3 year
financial objectives, facility closure costs and costs associated
with our revised business technology strategy. |
|
|
(2) Includes US Foods merger and integration planning and
transaction costs (third quarter fiscal 2015 only) and Brakes
Acquisition transaction costs (third quarter fiscal 2016 only) |
|
|
(3) Includes US Foods financing costs (third quarter fiscal
2015 only) and Brakes Acquisition financing costs (third quarter
fiscal 2016 only) |
|
|
(4) The net earnings and diluted earnings per share impacts
are shown net of tax. The tax impact of adjustments for Certain
Items was $26,304 and $30,642 for the 13-week periods ended March
26, 2016 and March 28, 2015, respectively. Amounts are
calculated by multiplying the pretax impact of each Certain Item by
the statutory rates in effect for each jurisdiction. |
|
|
(5) Individual components of diluted earnings per share may
not add to the total presented due to rounding. Total diluted
earnings per share is calculated using adjusted net earnings
divided by diluted shares outstanding. |
|
|
NM
represents that the percentage change is not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco
Corporation and its Consolidated Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Reconciliation
(Unaudited) |
|
|
|
Impact of Certain Items |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands, Except for Share and Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39-Week Period Ended
Mar. 26, 2016 |
|
39-Week Period Ended
Mar. 28, 2015 |
|
39-Week Period Change
in Dollars |
|
39-Week Period
% Change |
|
|
Sales |
$ |
|
36,719,028 |
|
|
$ |
|
36,278,814 |
|
|
$ |
|
440,214 |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
|
5,233,959 |
|
|
$ |
|
5,222,985 |
|
|
$ |
|
10,974 |
|
|
0.2 |
% |
|
Impact of restructuring
cost (1) |
|
|
(66,913 |
) |
|
|
|
(6,110 |
) |
|
|
|
(60,803 |
) |
|
NM |
|
|
|
Impact of acquisition
costs (2) |
|
|
(10,402 |
) |
|
|
|
(168,109 |
) |
|
|
|
157,707 |
|
|
-93.8 |
|
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
|
5,156,644 |
|
|
$ |
|
5,048,766 |
|
|
$ |
|
107,878 |
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
|
1,303,675 |
|
|
$ |
|
1,108,367 |
|
|
$ |
|
195,308 |
|
|
17.6 |
% |
|
Impact of restructuring
cost (1) |
|
|
66,913 |
|
|
|
|
6,110 |
|
|
|
|
60,803 |
|
|
NM |
|
|
|
Impact of acquisition
costs (2) |
|
|
10,402 |
|
|
|
|
168,109 |
|
|
|
|
(157,707 |
) |
|
-93.8 |
|
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
|
1,380,990 |
|
|
$ |
|
1,282,586 |
|
|
$ |
|
98,404 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin (GAAP) |
|
|
3.55 |
% |
|
|
|
3.06 |
% |
|
|
|
0.50 |
% |
|
16.2 |
% |
|
Operating
margin (Non-GAAP) |
|
|
3.76 |
% |
|
|
|
3.54 |
% |
|
|
|
0.23 |
% |
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense (GAAP) |
$ |
|
231,841 |
|
|
$ |
|
177,526 |
|
|
$ |
|
54,315 |
|
|
30.6 |
% |
|
Impact of acquisition
financing costs (3) |
|
|
(105,330 |
) |
|
|
|
(97,091 |
) |
|
|
|
(8,239 |
) |
|
8.5 |
|
|
|
Adjusted
interest expense (Non-GAAP) |
$ |
|
126,511 |
|
|
$ |
|
80,435 |
|
|
$ |
|
46,076 |
|
|
57.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(GAAP) (4) |
$ |
|
733,955 |
|
|
$ |
|
613,747 |
|
|
$ |
|
120,208 |
|
|
19.6 |
% |
|
|
Impact of restructuring
cost (net of tax) (1) |
|
|
41,955 |
|
|
|
|
3,991 |
|
|
|
|
37,964 |
|
|
NM |
|
|
|
Impact of acquisition
costs (net of tax) (2) |
|
|
6,522 |
|
|
|
|
109,826 |
|
|
|
|
(103,304 |
) |
|
-94.1 |
|
|
|
Impact of acquisition
financing costs (net of tax) (3) |
|
|
66,042 |
|
|
|
|
63,430 |
|
|
|
|
2,612 |
|
|
4.1 |
|
|
|
Net earnings
adjusted for certain items (Non-GAAP) (4) |
$ |
|
848,474 |
|
|
$ |
|
790,994 |
|
|
$ |
|
57,480 |
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share (GAAP) (4) |
$ |
|
1.26 |
|
|
$ |
|
1.03 |
|
|
$ |
|
0.23 |
|
|
22.3 |
% |
|
|
Impact of restructuring
cost (1) |
|
|
0.07 |
|
|
|
|
- |
|
|
|
|
0.07 |
|
|
NM |
|
|
|
Impact of acquisition
costs (2) |
|
|
0.01 |
|
|
|
|
0.18 |
|
|
|
|
(0.17 |
) |
|
-94.4 |
|
|
|
Impact of acquisition
financing costs (3) |
|
|
0.11 |
|
|
|
|
0.11 |
|
|
|
|
- |
|
|
- |
|
|
|
Diluted EPS
adjusted for certain items (Non-GAAP) (4) (5) |
$ |
|
1.46 |
|
|
$ |
|
1.33 |
|
|
$ |
|
0.13 |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding |
|
|
580,980,865 |
|
|
|
|
596,047,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes severance charges, professional fees on 3 year
financial objectives, facility closure costs and costs associated
with our revised business technology strategy. |
|
|
(2) Includes US Foods merger and integration planning and
transaction costs (first quarter 2016 and 39 weeks fiscal 2015
only) and Brakes Acquisition transaction costs (third quarter
fiscal 2016 only) |
|
|
(3) Includes US Foods financing costs (first quarter 2016 and
39 weeks fiscal 2015 only) and Brakes Acquisition financing costs
(third quarter fiscal 2016 only) |
|
|
(4) The net earnings and diluted earnings per share impacts
are shown net of tax. The tax impact of adjustments for Certain
Items was $68,126 and $94,063 for the 39-week periods ended March
26, 2016 and March 28, 2015, respectively. Amounts are
calculated by multiplying the pretax impact of each Certain Item by
the statutory rates in effect for each jurisdiction. |
|
|
(5) Individual components of diluted earnings per share may
not add to the total presented due to rounding. Total diluted
earnings per share is calculated using adjusted net earnings
divided by diluted shares outstanding. |
|
|
NM
represents that the percentage change is not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Reconciliation
(Unaudited) |
|
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow represents net cash provided from operating
activities less purchases of plant and equipment and includes
proceeds from sales of plant and equipment. Sysco considers
free cash flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by the business after the purchases and sales of
buildings, fleet, equipment and technology, which may potentially
be used to pay for, among other things, strategic uses of cash
including dividend payments, share repurchases and
acquisitions. However, free cash flow may not be available
for discretionary expenditures, as it may be necessary that we use
it to make mandatory debt service or other payments. Free
cash flow should not be used as a substitute for the most
comparable GAAP measure in assessing the company’s liquidity for
the periods presented. An analysis of any non-GAAP financial
measure should be used in conjunction with results presented in
accordance with GAAP. In the table that follows, free cash
flow for each period presented are reconciled to net cash provided
by operating activities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39-Week Period Ended
Mar. 26, 2016 |
|
39-Week Period Ended
Mar. 28, 2015 |
|
39-Week Period Change
in Dollars |
|
39-Week Period
% Change |
|
Net cash
provided by operating activities (GAAP) |
$ |
|
988,981 |
|
|
$ |
|
860,499 |
|
|
$ |
|
128,482 |
|
|
14.9 |
% |
|
Additions to plant and
equipment |
|
|
(360,883 |
) |
|
|
|
(437,286 |
) |
|
|
|
76,403 |
|
|
17.5 |
|
|
Proceeds from sales of
plant and equipment |
|
|
12,623 |
|
|
|
|
15,404 |
|
|
|
|
(2,781 |
) |
|
-18.1 |
|
|
Free Cash Flow
(Non-GAAP) |
$ |
|
640,721 |
|
|
$ |
|
438,617 |
|
|
$ |
|
202,104 |
|
|
46.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Reconciliation
(Unaudited) |
|
|
|
Real Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real growth represents our sales growth after removing the
impact of food cost inflation / deflation, sales from acquisitions
that occurred within the last 12 months and the impact of foreign
exchange rate translation. Sysco considers real growth to be
a performance measure that provides useful information to
management and investors about the amount of sales growth
organically generated. Real growth is a commonly used metric
within the food-away-from-home industry. The company uses
these non-GAAP measures when evaluating its financial results, as
well as for internal planning and forecasting purposes. These
financial measures should not be used as a substitute for GAAP
measures in assessing the company’s sales growth for the periods
presented. An analysis of any non-GAAP financial measure
should be used in conjunction with results presented in accordance
with GAAP. As a result, in the tables that follow, each
period presented is adjusted to remove the components of real
growth noted above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
Mar. 26, 2016 |
|
13-Week Period Ended
Mar. 28, 2015 |
|
39-Week Period Ended Mar. 26,
2016 |
|
39-Week Period Ended Mar. 28,
2015 |
|
|
Sales Growth
(GAAP) |
|
2.2 |
% |
|
4.2 |
% |
|
1.2 |
% |
6.0 |
|
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Food cost
inflation (deflation) |
|
-0.4 |
|
|
3.7 |
|
|
-0.5 |
|
4.8 |
|
|
|
Acquisitions |
|
0.9 |
|
|
0.6 |
|
|
0.6 |
|
0.6 |
|
|
|
Impact of
foreign exchange rate translation |
|
-1.0 |
|
|
-1.3 |
|
|
-1.6 |
|
-0.9 |
|
|
|
Real Growth
(Non-GAAP) (1) |
|
2.7 |
% |
|
1.2 |
% |
|
2.7 |
% |
1.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Individual components of real growth may not add to the
total presented due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neil Russell
Investor Contact
T 281-584-1308
Nehl Horton
Media Contact
T 281-899-4759
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