The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or
“Chefs’”), a premier distributor of specialty food products in the
United States, the Middle East, and Canada, today reported
financial results for its fourth quarter ended December 29,
2023. The fiscal quarter ended December 29, 2023 consisted of 13
weeks as compared to the fiscal quarter ended December 30, 2022,
which consisted of 14 weeks.
Financial highlights for the
fourth quarter of
2023:
- Net sales increased 20.1% to $950.5
million for the fourth quarter of 2023 from $791.3 million for the
fourth quarter of 2022. On a pro-rated basis, comparing 13-week to
13-week basis, net sales increased 29.3%.
- GAAP net income was $16.0 million,
or $0.38 per diluted share, for the fourth quarter of 2023 compared
to $1.2 million, or $0.03 per diluted share, in the fourth quarter
of 2022.
- Adjusted net income per share1 was
$0.47 for the fourth quarter of 2023 compared to $0.46 for the
fourth quarter of 2022.
- Adjusted EBITDA1 was $59.0 million
for the fourth quarter of 2023 compared to $50.1 million for the
fourth quarter of 2022.
“Business activity coming out of September
strengthened into the fourth quarter as seasonal customer demand
and volume trends progressed through November and December to
close-out 2023. Price inflation continued to moderate, and our
Chefs’ Warehouse Teams across our North American and International
Markets delivered strong organic growth and margin improvement,”
said Christopher Pappas, Chairman and Chief Executive of the
Company. “As we move into 2024, I would like to thank all our CW
teammates for the dedication and passion they have for our mission
- to discover and deliver the finest specialty foods, fresh
produce, and center-of-plate proteins that inspire the culinary
creativity and feed the success of our customer and supplier
partners, as we strive for excellence and impeccable service.”
Fourth Quarter Fiscal
2023 Results
Net sales on a reported basis, 13 weeks compared
to 14 weeks, increased 20.1% to $950.5 million from $791.3 million
in the fourth quarter of 2022. The incremental 53rd week of the
fiscal year ended December 30, 2022 negatively impacted the
year-on-year growth by approximately 9.2%. The growth in net sales
was the result of an increase in organic sales of approximately
11.3% as well as the contribution of sales from acquisitions, which
added approximately 18.0% to sales growth for the quarter,
partially offset by the impact of the 53rd week. Organic case count
increased approximately 11.3% in the Company’s specialty category
with unique customers and placement increases at 12.4% and 6.5%
respectively, compared to the prior year quarter. Organic pounds
sold in the Company’s center-of-the-plate category increased
approximately 8.4% compared to the prior year quarter. On a
reported basis, comparing 13 weeks to 14 weeks, case count in the
specialty category increased approximately 3.3% and pounds sold in
the center-of-the-plate category increased approximately 0.6% from
the prior year quarter.
Gross profit on a reported basis, comparing 13
weeks to 14 weeks, increased 22.0% to $228.6 million for the fourth
quarter of 2023 from $187.3 million for the fourth quarter of 2022.
Gross profit margins increased approximately 38 basis points to
24.1%. The incremental 53rd week of the fiscal year ended December
30, 2022 negatively impacted the year-on-year growth by
approximately 9.4%.
Selling, general and administrative expenses
increased by approximately 23.8% to $190.0 million for the fourth
quarter of 2023 from $153.4 million for the fourth quarter of 2022.
The increase was primarily due to higher costs associated with
compensation, including benefits, facility costs and distribution
costs to support sales growth in the current quarter. As a
percentage of net sales, selling, general and administrative
expenses were 20.0% in the fourth quarter of 2023 compared to 19.4%
in the fourth quarter of 2022. The increase is due to near-term
costs associated with our investments in facilities and
acquisitions.
Other operating expense decreased by
approximately $3.7 million primarily due to lower third-party deal
costs incurred in connection with financing arrangements.
Operating income for the fourth quarter of 2023 was $38.2
million compared to $29.8 million for the fourth quarter of 2022.
The increase in operating income was driven primarily by higher
gross profit and lower other operating costs, partially offset by
higher selling, general and administrative expense, as discussed
above. As a percentage of net sales, operating income was 4.0% in
the fourth quarter of 2023 as compared to operating income of 3.8%
in the fourth quarter of 2022.
Income tax expense was $10.1 million for the
fourth quarter of 2023 compared to $4.3 million for the fourth
quarter of 2022.
Net income for the fourth quarter of 2023 was
$16.0 million, or $0.38 per diluted share, compared to net income
of $1.2 million, or $0.03 per diluted share, for the fourth quarter
of 2022.
Adjusted EBITDA1 was $59.0 million for the
fourth quarter of 2023 compared to $50.1 million for the fourth
quarter of 2022. For the fourth quarter of 2023, adjusted net
income1 was $20.2 million, or $0.47 per diluted share compared to
adjusted net income of $18.2 million, or $0.46 per diluted share
for the fourth quarter of 2022.
2024 Guidance
We are providing fiscal 2024 full year financial guidance as
follows:
- Net sales in the range of $3.625 billion to $3.775
billion,
- Gross profit to be between $865.0 million and $900.0 million
and
- Adjusted EBITDA to be between $205.0 million and $218.0
million.
1EBITDA, Adjusted EBITDA, adjusted net income and adjusted net
income per share are non-GAAP measures. Please see the schedules
accompanying this earnings release for a reconciliation of EBITDA,
Adjusted EBITDA, adjusted net income and adjusted net income per
share to these measures’ most directly comparable GAAP measure.
Fourth Quarter
2023 Earnings Conference Call
The Company will host a conference call to
discuss fourth quarter 2023 financial results today at 8:30 a.m.
EDT. Hosting the call will be Chris Pappas, chairman and chief
executive officer, and Jim Leddy, chief financial officer. The
conference call will be webcast live from the Company’s investor
relations website at http://investors.chefswarehouse.com. An online
archive of the webcast will be available on the Company’s investor
relations website.
Forward-Looking Statements
Statements in this press release regarding the
Company’s business that are not historical facts are
“forward-looking statements” that involve risks and uncertainties
and are based on current expectations and management estimates;
actual results may differ materially. The risks and uncertainties
which could impact these statements include, but are not limited to
the following: our success depends to a significant extent upon
general economic conditions, including disposable income levels and
changes in consumer discretionary spending; the relatively low
margins of our business, which are sensitive to inflationary and
deflationary pressures and intense competition; the effects of
rising costs for and/or decreases in supply of commodities,
ingredients, packaging, other raw materials, distribution and
labor; crude oil prices and their impact on distribution, packaging
and energy costs; our continued ability to promote our brand
successfully, to anticipate and respond to new customer demands,
and to develop new products and markets to compete effectively; our
ability and the ability of our supply chain partners to continue to
operate distribution centers and other work locations without
material disruption, and to procure ingredients, packaging and
other raw materials when needed despite disruptions in the supply
chain or labor shortages; risks associated with the expansion of
our business; our possible inability to identify new acquisitions
or to integrate recent or future acquisitions, or our failure to
realize anticipated revenue enhancements, cost savings or other
synergies from recent or future acquisitions; other factors that
affect the food industry generally, including: recalls if products
become adulterated or misbranded, liability if product consumption
causes injury, ingredient disclosure and labeling laws and
regulations and the possibility that customers could lose
confidence in the safety and quality of certain food products; new
information or attitudes regarding diet and health or adverse
opinions about the health effects of the products we distribute;
changes in disposable income levels and consumer purchasing habits;
competitors’ pricing practices and promotional spending levels;
fluctuations in the level of our customers’ inventories and credit
and other related business risks; and the risks associated with
third-party suppliers, including the risk that any failure by one
or more of our third-party suppliers to comply with food safety or
other laws and regulations may disrupt our supply of raw materials
or certain products or injure our reputation; our ability to
recruit and retain senior management and a highly skilled and
diverse workforce; unanticipated expenses, including, without
limitation, litigation or legal settlement expenses; the cost and
adequacy of our insurance policies; the impact and effects of
public health crises, pandemics and epidemics, such as the recent
outbreak of COVID-19, and the adverse impact thereof on our
business, financial condition, and results of operations;
significant governmental regulation and any potential failure to
comply with such regulations; federal, state, provincial and local
tax rules in the United States and the foreign countries in which
we operate, including tax reform and legislation; risks relating to
our substantial indebtedness; our ability to raise additional
capital and/or obtain debt or other financing, on commercially
reasonable terms or at all; our ability to meet future cash
requirements, including the ability to access financial markets
effectively and maintain sufficient liquidity; the effects of
currency movements in the jurisdictions in which we operate as
compared to the U.S. dollar; changes in the method of determining
Secured Overnight Financing Rate (“SOFR”), or the replacement of
SOFR with an alternative rate; and the effects of international
trade disputes, tariffs, quotas and other import or export
restrictions on our international procurement, sales and
operations. Any forward-looking statements are made pursuant to the
Private Securities Litigation Reform Act of 1995 and, as such,
speak only as of the date made. A more detailed description of
these and other risk factors is contained in the Company’s most
recent annual report on Form 10-K filed with the SEC on
February 28, 2023 and other reports filed by the Company with
the SEC since that date. The Company is not undertaking to update
any information until required by applicable laws. Any projections
of future results of operations are based on a number of
assumptions, many of which are outside the Company’s control and
should not be construed in any manner as a guarantee that such
results will in fact occur. These projections are subject to change
and could differ materially from final reported results. The
Company may from time to time update these publicly announced
projections, but it is not obligated to do so.
About The Chefs’ Warehouse
The Chefs’ Warehouse, Inc.
(http://www.chefswarehouse.com) is a premier distributor of
specialty food products in the United States, the Middle East and
Canada focused on serving the specific needs of chefs who own
and/or operate some of the nation’s leading menu-driven independent
restaurants, fine dining establishments, country clubs, hotels,
caterers, culinary schools, bakeries, patisseries, chocolateries,
cruise lines, casinos and specialty food stores. The Chefs’
Warehouse, Inc. carries and distributes more than 70,000 products
to more than 44,000 customer locations throughout the United
States, the Middle East and Canada.
Contact:Investor Relations Jim Leddy, CFO,
(718) 684-8415
|
THE CHEFS’ WAREHOUSE, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(unaudited; in thousands except share amounts and per share
data) |
|
|
|
|
|
Fiscal Quarters Ended |
|
Fiscal Years Ended |
|
December 29, 2023 |
|
December 30, 2022 |
|
December 29, 2023 |
|
December 30, 2022 |
Net sales |
$ |
950,473 |
|
|
$ |
791,336 |
|
|
$ |
3,433,763 |
|
|
$ |
2,613,399 |
|
Cost of sales |
|
721,849 |
|
|
|
604,005 |
|
|
|
2,619,289 |
|
|
|
1,994,763 |
|
Gross profit |
|
228,624 |
|
|
|
187,331 |
|
|
|
814,474 |
|
|
|
618,636 |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
189,965 |
|
|
|
153,391 |
|
|
|
704,758 |
|
|
|
518,219 |
|
Other operating expenses,
net |
|
504 |
|
|
|
4,175 |
|
|
|
8,773 |
|
|
|
14,679 |
|
Operating income |
|
38,155 |
|
|
|
29,765 |
|
|
|
100,943 |
|
|
|
85,738 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
12,083 |
|
|
|
24,282 |
|
|
|
45,474 |
|
|
|
43,849 |
|
Income before income taxes |
|
26,072 |
|
|
|
5,483 |
|
|
|
55,469 |
|
|
|
41,889 |
|
|
|
|
|
|
|
|
|
Provision for income tax
expense |
|
10,072 |
|
|
|
4,310 |
|
|
|
20,879 |
|
|
|
14,139 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
16,000 |
|
|
$ |
1,173 |
|
|
$ |
34,590 |
|
|
$ |
27,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.42 |
|
|
$ |
0.03 |
|
|
$ |
0.92 |
|
|
$ |
0.75 |
|
Diluted |
$ |
0.38 |
|
|
$ |
0.03 |
|
|
$ |
0.88 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
37,701,134 |
|
|
|
37,198,345 |
|
|
|
37,633,672 |
|
|
|
37,094,220 |
|
Diluted |
|
45,813,757 |
|
|
|
37,922,385 |
|
|
|
45,639,220 |
|
|
|
38,742,328 |
|
|
THE CHEFS’ WAREHOUSE, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
AS OF DECEMBER 29, 2023
AND DECEMBER 30,
2022 |
(unaudited; in thousands) |
|
|
December 29, 2023 |
|
December 30, 2022 |
Cash and cash equivalents |
$ |
49,878 |
|
|
$ |
158,800 |
|
Accounts receivable, net |
|
334,015 |
|
|
|
260,167 |
|
Inventories |
|
284,528 |
|
|
|
245,693 |
|
Prepaid expenses and other
current assets |
|
62,522 |
|
|
|
56,200 |
|
Total current assets |
|
730,943 |
|
|
|
720,860 |
|
|
|
|
|
Property and equipment,
net |
|
234,793 |
|
|
|
185,728 |
|
Operating lease right-of-use
assets |
|
192,307 |
|
|
|
156,629 |
|
Goodwill |
|
356,021 |
|
|
|
287,120 |
|
Intangible assets, net |
|
184,863 |
|
|
|
155,703 |
|
Other assets |
|
6,379 |
|
|
|
3,256 |
|
Total assets |
$ |
1,705,306 |
|
|
$ |
1,509,296 |
|
|
|
|
|
Accounts payable |
$ |
200,547 |
|
|
$ |
163,397 |
|
Accrued liabilities |
|
70,728 |
|
|
|
54,325 |
|
Short-term operating lease
liabilities |
|
24,246 |
|
|
|
19,428 |
|
Accrued compensation |
|
37,071 |
|
|
|
34,167 |
|
Current portion of long-term
debt |
|
53,185 |
|
|
|
12,428 |
|
Total current liabilities |
|
385,777 |
|
|
|
283,745 |
|
|
|
|
|
Long-term debt, net of current
portion |
|
664,802 |
|
|
|
653,504 |
|
Operating lease
liabilities |
|
184,034 |
|
|
|
151,406 |
|
Deferred taxes, net |
|
14,418 |
|
|
|
6,098 |
|
Other liabilities |
|
1,603 |
|
|
|
13,034 |
|
Total liabilities |
|
1,250,634 |
|
|
|
1,107,787 |
|
|
|
|
|
Common stock |
|
396 |
|
|
|
386 |
|
Additional paid in
capital |
|
356,157 |
|
|
|
337,947 |
|
Accumulated other
comprehensive loss |
|
(1,832 |
) |
|
|
(2,185 |
) |
Retained earnings |
|
99,951 |
|
|
|
65,361 |
|
Stockholders’ equity |
|
454,672 |
|
|
|
401,509 |
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
1,705,306 |
|
|
$ |
1,509,296 |
|
|
THE CHEFS’ WAREHOUSE, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
FOR THE FISCAL YEARS ENDED DECEMBER 29,
2023 AND DECEMBER 30,
2022 |
(unaudited; in thousands) |
|
|
December 29, 2023 |
|
December 30, 2022 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
34,590 |
|
|
$ |
27,750 |
|
|
|
|
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
|
32,887 |
|
|
|
24,332 |
|
Amortization of intangible assets |
|
22,719 |
|
|
|
13,913 |
|
Provision for allowance for doubtful accounts |
|
8,078 |
|
|
|
6,048 |
|
Deferred income tax provision |
|
8,114 |
|
|
|
9,601 |
|
Loss on debt extinguishment |
|
— |
|
|
|
14,287 |
|
Stock compensation |
|
20,042 |
|
|
|
13,602 |
|
Change in fair value of contingent earn-out liabilities |
|
3,081 |
|
|
|
8,505 |
|
Intangible asset impairment |
|
1,838 |
|
|
|
— |
|
Non-cash interest and other operating activities |
|
5,456 |
|
|
|
3,037 |
|
Changes in assets and
liabilities, net of acquisitions: |
|
|
|
Accounts receivable |
|
(48,813 |
) |
|
|
(48,229 |
) |
Inventories |
|
(28,759 |
) |
|
|
(49,931 |
) |
Prepaid expenses and other current assets |
|
(7,234 |
) |
|
|
(17,603 |
) |
Accounts payable, accrued liabilities and accrued compensation |
|
19,598 |
|
|
|
19,163 |
|
Other assets and liabilities |
|
(9,958 |
) |
|
|
(1,341 |
) |
Net cash provided by
operating activities |
|
61,639 |
|
|
|
23,134 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
|
(57,427 |
) |
|
|
(45,848 |
) |
Cash paid for acquisitions |
|
(121,884 |
) |
|
|
(186,175 |
) |
Net cash used in
investing activities |
|
(179,311 |
) |
|
|
(232,023 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payment of debt, finance lease and other financing obligations |
|
(33,327 |
) |
|
|
(331,073 |
) |
Proceeds from debt issuance |
|
— |
|
|
|
587,500 |
|
Payment of deferred financing fees |
|
(1,739 |
) |
|
|
(19,039 |
) |
Proceeds from exercise of stock options |
|
55 |
|
|
|
69 |
|
Surrender of shares to pay withholding taxes |
|
(2,134 |
) |
|
|
(2,674 |
) |
Cash paid for contingent earn-out liabilities |
|
(11,625 |
) |
|
|
(3,788 |
) |
Borrowings under asset based loan facility |
|
60,000 |
|
|
|
42,220 |
|
Payments under asset based loan facility |
|
(2,220 |
) |
|
|
(20,000 |
) |
Net cash provided by
financing activities |
|
9,010 |
|
|
|
253,215 |
|
|
|
|
|
Effect of foreign currency
translation on cash and cash equivalents |
|
(260 |
) |
|
|
(681 |
) |
Net change in cash and
cash equivalents |
|
(108,922 |
) |
|
|
43,645 |
|
Cash and cash equivalents at
beginning of period |
|
158,800 |
|
|
|
115,155 |
|
Cash and cash
equivalents at end of period |
$ |
49,878 |
|
|
$ |
158,800 |
|
|
THE CHEFS’ WAREHOUSE, INC. |
RECONCILIATION OF GAAP NET INCOME PER SHARE |
(unaudited; in thousands except share amounts and per share
data) |
|
|
Fiscal Quarters End |
|
Fiscal Years Ended |
|
December 29, 2023 |
|
December 30, 2022 |
|
December 29, 2023 |
|
December 30, 2022 |
Numerator: |
|
|
|
|
|
|
|
Net income |
$ |
16,000 |
|
|
$ |
1,173 |
|
|
$ |
34,590 |
|
|
$ |
27,750 |
|
Add effect of dilutive
securities: |
|
|
|
|
|
|
|
Interest on convertible notes, net of tax |
|
1,350 |
|
|
|
— |
|
|
|
5,399 |
|
|
|
580 |
|
Net income available to common
shareholders |
$ |
17,350 |
|
|
$ |
1,173 |
|
|
$ |
39,989 |
|
|
$ |
28,330 |
|
Denominator: |
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
|
37,701,134 |
|
|
|
37,198,345 |
|
|
|
37,633,672 |
|
|
|
37,094,220 |
|
Dilutive effect of unvested
common shares |
|
702,084 |
|
|
|
654,441 |
|
|
|
574,707 |
|
|
|
638,293 |
|
Dilutive effect of options and
warrants |
|
17,722 |
|
|
|
69,599 |
|
|
|
38,024 |
|
|
|
66,719 |
|
Dilutive effect of convertible
notes |
|
7,392,817 |
|
|
|
— |
|
|
|
7,392,817 |
|
|
|
943,096 |
|
Weighted average diluted
common shares outstanding |
|
45,813,757 |
|
|
|
37,922,385 |
|
|
|
45,639,220 |
|
|
|
38,742,328 |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.42 |
|
|
$ |
0.03 |
|
|
$ |
0.92 |
|
|
$ |
0.75 |
|
Diluted |
$ |
0.38 |
|
|
$ |
0.03 |
|
|
$ |
0.88 |
|
|
$ |
0.73 |
|
|
THE CHEFS’ WAREHOUSE, INC. |
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED
EBITDA |
(unaudited; in thousands) |
|
|
Fiscal Quarters Ended |
|
Fiscal Years Ended |
|
December 29, 2023 |
|
December 30, 2022 |
|
December 29, 2023 |
|
December 30, 2022 |
Net income |
$ |
16,000 |
|
|
$ |
1,173 |
|
|
$ |
34,590 |
|
|
$ |
27,750 |
|
Interest expense |
|
12,083 |
|
|
|
24,282 |
|
|
|
45,474 |
|
|
|
43,849 |
|
Depreciation |
|
8,720 |
|
|
|
6,665 |
|
|
|
32,887 |
|
|
|
24,332 |
|
Amortization |
|
5,795 |
|
|
|
3,624 |
|
|
|
22,719 |
|
|
|
13,913 |
|
Provision for income tax expense |
|
10,072 |
|
|
|
4,310 |
|
|
|
20,879 |
|
|
|
14,139 |
|
EBITDA (1) |
|
52,670 |
|
|
|
40,054 |
|
|
|
156,549 |
|
|
|
123,983 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Stock compensation (2) |
|
4,187 |
|
|
|
4,521 |
|
|
|
20,042 |
|
|
|
13,602 |
|
Other operating expenses, net (3) |
|
504 |
|
|
|
4,175 |
|
|
|
8,773 |
|
|
|
14,679 |
|
Duplicate rent (4) |
|
1,622 |
|
|
|
1,327 |
|
|
|
7,641 |
|
|
|
5,604 |
|
Moving expenses (5) |
|
35 |
|
|
|
— |
|
|
|
231 |
|
|
|
— |
|
Adjusted EBITDA (1) |
$ |
59,018 |
|
|
$ |
50,077 |
|
|
$ |
193,236 |
|
|
$ |
157,868 |
|
|
- We are presenting EBITDA and
Adjusted EBITDA, which are not measurements determined in
accordance with the U.S. generally accepted accounting principles,
or GAAP, because we believe these measures provide additional
metrics to evaluate our operations and which we believe, when
considered with both our GAAP results and the reconciliation to net
income, provide a more complete understanding of our business than
could be obtained absent this disclosure. We use EBITDA and
Adjusted EBITDA, together with financial measures prepared in
accordance with GAAP, such as revenue and cash flows from
operations, to assess our historical and prospective operating
performance and to enhance our understanding of our core operating
performance. The use of EBITDA and Adjusted EBITDA as performance
measures permits a comparative assessment of our operating
performance relative to our performance based upon GAAP results
while isolating the effects of some items that vary from period to
period without any correlation to core operating performance or
that vary widely among similar companies.
- Represents non-cash stock
compensation expense associated with awards of restricted shares of
our common stock and stock options to our key employees and our
independent directors.
- Represents non-cash changes in the
fair value of contingent earn-out liabilities related to our
acquisitions, non-cash charges related to asset disposals, asset
impairments, including intangible asset impairment charges, certain
third-party deal costs incurred in connection with our acquisitions
or financing arrangements and certain other costs.
- Represents duplicate rent and
occupancy costs for our Richmond, CA, Miami, FL, Portland, OR and
Gibbstown NJ facilities.
- Represents moving expenses for the
consolidation and expansion of our Miami, FL facilities.
|
THE CHEFS’ WAREHOUSE, INC. |
RECONCILIATION OF NET INCOME TO ADJUSTED NET
INCOME |
(unaudited; in thousands except share amounts and per share
data) |
|
|
Fiscal Quarters Ended |
|
Fiscal Years Ended |
|
December 29, 2023 |
|
December 30, 2022 |
|
December 29, 2023 |
|
December 30, 2022 |
Net income |
$ |
16,000 |
|
|
$ |
1,173 |
|
|
$ |
34,590 |
|
|
$ |
27,750 |
|
Adjustments to reconcile net
income to adjusted net income (1): |
|
|
|
|
|
|
|
Other operating expenses, net (2) |
|
504 |
|
|
|
4,175 |
|
|
|
8,773 |
|
|
|
14,679 |
|
Duplicate rent (3) |
|
1,622 |
|
|
|
1,327 |
|
|
|
7,641 |
|
|
|
5,604 |
|
Moving expenses (4) |
|
35 |
|
|
|
— |
|
|
|
231 |
|
|
|
— |
|
Debt modification and extinguishment expenses (5) |
|
— |
|
|
|
14,145 |
|
|
|
— |
|
|
|
18,854 |
|
Write-off of unamortized deferred financing fees and other third
party financing costs (5) |
|
— |
|
|
|
— |
|
|
|
1,146 |
|
|
|
— |
|
Tax effect of adjustments (6) |
|
2,025 |
|
|
|
(2,601 |
) |
|
|
— |
|
|
|
(8,143 |
) |
|
|
|
|
|
|
|
|
Total adjustments |
|
4,186 |
|
|
|
17,046 |
|
|
|
17,791 |
|
|
|
30,994 |
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
20,186 |
|
|
$ |
18,219 |
|
|
$ |
52,381 |
|
|
$ |
58,744 |
|
|
|
|
|
|
|
|
|
Diluted adjusted net income
per common share |
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
1.27 |
|
|
$ |
1.53 |
|
|
|
|
|
|
|
|
|
Diluted shares outstanding -
adjusted |
|
45,813,757 |
|
|
|
40,094,828 |
|
|
|
45,639,220 |
|
|
|
39,044,007 |
|
|
- We are presenting adjusted net income and adjusted net income
per share, which are not measurements determined in accordance with
U.S. generally accepted accounting principles, or GAAP, because we
believe these measures provide additional metrics to evaluate our
operations and which we believe, when considered with both our GAAP
results and the reconciliation to net income available to common
stockholders, provide a more complete understanding of our business
than could be obtained absent this disclosure. We use adjusted net
income available to common stockholders and adjusted net income per
share, together with financial measures prepared in accordance with
GAAP, such as revenue and cash flows from operations, to assess our
historical and prospective operating performance and to enhance our
understanding of our core operating performance. The use of
adjusted net income available to common stockholders and adjusted
net income per share as performance measures permits a comparative
assessment of our operating performance relative to our performance
based upon our GAAP results while isolating the effects of some
items that vary from period to period without any correlation to
core operating performance or that vary widely among similar
companies.
- Represents non-cash changes in the fair value of contingent
earn-out liabilities related to our acquisitions, non-cash charges
related to asset disposals, asset impairments, including intangible
asset impairment charges, certain third-party deal costs incurred
in connection with our acquisitions or financing arrangements and
certain other costs.
- Represents duplicate rent and occupancy costs for our Richmond,
CA, Miami, FL, Portland, OR and Gibbstown, NJ facilities.
- Represents moving expenses for the consolidation and expansion
of our Miami, FL facilities.
- Represents interest expense related to write-off of certain
deferred financing fees and other third party costs related to our
credit agreements.
- Represents the adjustments to the tax provision values to a
normalized annual effective tax rate on adjusted pretax earnings to
28.5% and 27.5% for fiscal 2023 and 2022, respectively.
|
THE CHEFS’ WAREHOUSE, INC. |
RECONCILIATION OF ADJUSTED NET INCOME PER
SHARE |
(unaudited; in thousands except share amounts and per share
data) |
|
|
Fiscal Quarters Ended |
|
Fiscal Years Ended |
|
December 29, 2023 |
|
December 30, 2022 |
|
December 29, 2023 |
|
December 30, 2022 |
Numerator: |
|
|
|
|
|
|
|
Adjusted net income |
$ |
20,186 |
|
|
$ |
18,219 |
|
|
$ |
52,381 |
|
|
$ |
58,744 |
|
Add effect of dilutive
securities: |
|
|
|
|
|
|
|
Interest on convertible notes, net of tax |
|
1,350 |
|
|
|
425 |
|
|
|
5,399 |
|
|
|
812 |
|
Adjusted net income available
to common shareholders |
$ |
21,536 |
|
|
$ |
18,644 |
|
|
$ |
57,780 |
|
|
$ |
59,556 |
|
Denominator: |
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
|
37,701,134 |
|
|
|
37,198,345 |
|
|
|
37,633,672 |
|
|
|
37,094,220 |
|
Dilutive effect of unvested
common shares |
|
702,084 |
|
|
|
654,441 |
|
|
|
574,707 |
|
|
|
638,293 |
|
Dilutive effect of options and
warrants |
|
17,722 |
|
|
|
69,599 |
|
|
|
38,024 |
|
|
|
66,719 |
|
Dilutive effect of convertible
notes |
|
7,392,817 |
|
|
|
2,172,443 |
|
|
|
7,392,817 |
|
|
|
1,244,775 |
|
Weighted average diluted
common shares outstanding |
|
45,813,757 |
|
|
|
40,094,828 |
|
|
|
45,639,220 |
|
|
|
39,044,007 |
|
|
|
|
|
|
|
|
|
Adjusted net income per
share: |
|
|
|
|
|
|
|
Diluted |
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
1.27 |
|
|
$ |
1.53 |
|
|
THE CHEFS’ WAREHOUSE, INC. |
RECONCILIATION OF ADJUSTED EBITDA GUIDANCE FOR FISCAL
2024 |
(unaudited; in thousands) |
|
|
Low-End Guidance |
|
High-End Guidance |
Net Income: |
$ |
51,000 |
|
|
$ |
55,000 |
|
Provision for income tax expense |
|
22,300 |
|
|
|
23,300 |
|
Depreciation & amortization |
|
62,000 |
|
|
|
65,000 |
|
Interest expense |
|
48,000 |
|
|
|
52,000 |
|
EBITDA (1) |
|
183,300 |
|
|
|
195,300 |
|
|
|
|
|
Adjustments: |
|
|
|
Stock compensation (2) |
|
17,000 |
|
|
|
18,000 |
|
Duplicate rent (3) |
|
4,000 |
|
|
|
4,000 |
|
Other operating expenses (4) |
|
700 |
|
|
|
700 |
|
Adjusted EBITDA (1) |
$ |
205,000 |
|
|
$ |
218,000 |
|
|
- We are presenting estimated EBITDA and Adjusted EBITDA, which
are not measurements determined in accordance with the U.S.
generally accepted accounting principles, or GAAP, because we
believe these measures provide additional metrics to evaluate our
currently estimated results and which we believe, when considered
with both our estimated GAAP results and the reconciliation to our
estimated net income, provide a more complete understanding of our
business than could be obtained absent this disclosure. We use
EBITDA and Adjusted EBITDA, together with financial measures
prepared in accordance with GAAP, such as revenue and cash flows
from operations, to assess our historical and prospective operating
performance and to enhance our understanding of our performance
relative to our performance based upon GAAP results while isolating
the effects of some items that vary from period to period without
any correlation to core operating performance or that vary widely
among similar companies.
- Represents non-cash stock compensation expense associated with
awards of restricted shares of our common stock and stock options
to our key employees and our independent directors.
- Represents rent and occupancy costs expected to be incurred in
connection with our facility consolidations while we are unable to
use those facilities.
- Represents non-cash changes in the fair value of contingent
earn-out liabilities related to our acquisitions.
Grafico Azioni Chefs Warehouse (NASDAQ:CHEF)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Chefs Warehouse (NASDAQ:CHEF)
Storico
Da Set 2023 a Set 2024