Sysco Corporation (NYSE:SYY) today announced financial results for
its 13-week fourth fiscal quarter and 52-week fiscal year 2017
ended July 1, 2017. In fiscal 2016, the fourth quarter included 14
weeks and the year included 53 weeks.¹ In July 2016, the company
completed the acquisition of the Brakes Group, a leading European
foodservice distributor with operations in the United Kingdom,
Ireland, France, Sweden, Spain, Belgium and Luxembourg.
Fourth Quarter Fiscal 2017 Highlights
- Sales increased 5.7% to $14.4 billion; on a comparable 13-week
basis, excluding Brakes, sales increased 3.4% to $13.1 billion
- Gross profit increased 10.3% to $2.8 billion; gross margin
increased 80 basis points to 19.14%; on a comparable 13-week basis,
excluding Brakes, gross profit increased 4.2% to $2.4 billion and
gross margin increased 14 basis points to 18.48%
- Operating income increased 2.0% to $558 million; adjusted
operating income increased 6.1% to $667 million; on a comparable
13-week basis, excluding Brakes, adjusted operating income
increased 9.0% to $636 million
- Earnings Per Share (EPS) increased $0.19 to $0.57; adjusted EPS
increased $0.08 to $0.72; on a comparable 13-week basis, excluding
Brakes, adjusted EPS increased $0.10 to $0.70
Fiscal 2017 Highlights
- Sales increased 9.9% to $55.4 billion; on a comparable 52-week
basis, excluding Brakes, sales increased 1.6% to $50.2 billion
- Gross profit increased 16.8% to $10.6 billion; gross margin
increased 112 basis points to 19.07%; on a comparable 52-week
basis, excluding Brakes, gross profit increased 4.1% to $9.2
billion and gross margin increased 43 basis points to 18.37%
- Operating income increased 11.0% to $2.1 billion; adjusted
operating income increased 17.1% to $2.4 billion; on a comparable
52-week basis, excluding Brakes, adjusted operating income
increased 12.4% to $2.2 billion
- Earnings Per Share (EPS) increased $0.44 to $2.08; adjusted EPS
increased $0.38 to $2.48; on a comparable 52-week basis, excluding
Brakes, adjusted EPS increased $0.28 to $2.34
¹Earnings 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, multiemployer pension withdrawal and merger-related
costs. Results shown on a comparable 13 or 52 week basis are
non-GAAP numbers and have been further adjusted to remove dollar
amounts equal to 1/14 of the comparable fourth quarter non-GAAP
results. Reconciliations of all non-GAAP measures are included in
this release.
“Our fourth quarter financial results were strong and reflect
the increasingly consistent execution of our customer-centric
strategy,” said Bill DeLaney, Sysco’s chief executive officer. “I
am very pleased with our overall performance in fiscal 2017 and,
with the support of our 65,000 dedicated associates, we are well
positioned to deliver disciplined, profitable, and sustainable
growth as we move forward into 2018 and beyond.”
Fourth Quarter Fiscal 2017 Results
In fiscal 2017, the fourth quarter included 13 weeks and in
fiscal 2016, the fourth quarter included 14 weeks.
U.S. Foodservice Operations
Sales for the fourth quarter were $9.8 billion, a decrease of
3.8% compared to last year; on a comparable 13-week basis, sales
increased 3.6%. On a comparable 13-week basis, local case volume
within U.S. Broadline operations grew 2.7% for the fourth quarter
and total case volume grew 0.2%.
Gross profit decreased 3.4% to $2.0 billion; on a comparable
13-week basis, gross profit increased 4.0% and gross margin
increased 9 basis points to 20.23%.
Operating expenses decreased $30 million, or 2.4%, compared to
last year. Adjusted operating expenses decreased $64 million, or
5.2%, compared to last year; on a comparable 13-week basis,
adjusted operating expenses increased 2.1%.
Operating income was $776 million, a decrease of $41 million, or
5.0%, compared to last year. Adjusted operating income was
$811 million, a decrease of $6 million, or 0.8%, compared to last
year; on a comparable 13-week basis, adjusted operating income
increased 6.8%.
International Foodservice Operations
Sales for the fourth quarter were $2.7 billion, compared to $1.5
billion in the same period last year. Operating income was $63
million, an increase of $13 million, compared to last year.
Adjusted operating income was $92 million, an increase of $35
million, compared to last year. The improvement in both sales and
adjusted operating income is primarily attributable to the Brakes
Group acquisition.
Fiscal 2017 Results
Fiscal 2017, ended July 1, 2017, included 52 weeks, and fiscal
2016, ended July 2, 2016, included 53 weeks.
U.S. Foodservice Operations
Sales for fiscal 2017 were $37.6 billion, a decrease of 0.5%
compared to last year; on a comparable 52-week basis, sales
increased 1.5%. On a comparable 52-week basis, local case volume
within U.S. Broadline operations grew 2.4% for fiscal 2017 and
total case volume grew 0.9%.
Gross profit increased 1.9% to $7.6 billion; on a comparable
52-week basis, gross profit increased 4.0% and gross margin
increased 48 basis points to 20.09%.
Operating expenses increased $23 million, or 0.5%, compared to
last year. Adjusted operating expenses decreased $9 million, or
0.2%, compared to last year; on a comparable 52-week basis,
adjusted operating expenses increased 1.7%.
Operating income was $2.9 billion, an increase of $120 million,
or 4.3%, compared to last year. Adjusted operating income was $2.9
billion, an increase of $152 million, or 5.5%, compared to last
year; on a comparable 52-week basis, adjusted operating income
increased 7.8%.
International Foodservice Operations
Sales for fiscal 2017 were $10.6 billion, compared to $5.4
billion in the same period last year. Operating income was $243
million, an increase of $66 million, compared to last year.
Adjusted operating income was $346 million, an increase of $164
million, on a comparable 52-week basis. The significant improvement
in both sales and operating income is primarily attributable to the
Brakes Group acquisition.
Capital Spending and Cash Flow
Capital expenditures, net of proceeds from sales of plant and
equipment, totaled $663 million for fiscal 2017, which was $159
million higher compared to last year, primarily due to the addition
of Brakes.
Cash flow from operations was $2.2 billion for fiscal 2017,
which was $309 million higher compared to last year. Free cash flow
for fiscal 2017 was $1.6 billion, which was $150 million higher
compared to last year. These changes were largely due to improved
business performance, improved working capital, and favorable
year-over-year comparisons due to the US Foods termination payment
last year, offset by higher fiscal 2017 cash taxes due to prior
year deductions related to the US Foods payment and a deferral from
flood relief.
Conference Call & Webcast
Sysco will host a conference call to review the Company’s fourth
quarter and fiscal 2017 financial results on Monday, August 14,
2017, at 10:00 a.m. Eastern. A live webcast of the call,
accompanying slide presentation and a copy of this news release
will be available online at investors.sysco.com.
Comparable Results on a 13-week/52-week
Basis
|
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|
|
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|
|
Fourth Quarter |
Fiscal Year |
|
|
|
|
Excluding Brakes (4) |
|
|
Excluding Brakes (4) |
|
Financial Comparison: |
July 1, 2017 (13
Weeks) |
Change (13 vs. 14
weeks) |
Change (13 vs. 13
weeks) |
July 1,
2017 (52 Weeks)
|
Change (52 vs. 53
weeks) |
Change (52 vs. 52
weeks) |
|
Sales |
$14.4 billion |
5.7% |
3.4% |
$55.4 billion |
9.9% |
1.6% |
|
Gross Profit |
$2.8 billion |
10.3% |
4.2% |
$10.6 billion |
16.8% |
4.1% |
|
Gross Margin |
19.14% |
80 bps |
14 bps |
19.07% |
112 bps |
43 bps |
|
|
|
|
|
|
|
|
|
GAAP: |
|
|
|
|
|
|
|
Operating Expenses |
$2.2 billion |
12.6% |
|
$8.5 billion |
18.3% |
|
|
Certain Items |
$108.9 million |
33.7% |
|
$298.7 million |
88.1% |
|
|
Operating Income |
$558.0 million |
2.0% |
|
$2.1 billion |
11.0% |
|
|
Operating Margin |
3.87% |
-14 bps |
|
3.71% |
3 bps |
|
|
Net Earnings |
$305.2 million |
41.5% |
|
$1.1 billion |
20.3% |
|
|
Diluted Earnings Per Share |
$0.57 |
50.0% |
|
$2.08 |
26.8% |
|
|
|
|
|
|
|
|
|
|
Non-GAAP(1): |
|
|
|
|
|
|
|
Operating Expenses |
$2.1 billion |
11.6% |
2.6% |
$8.2 billion |
16.7% |
1.7% |
|
Operating Income |
$666.8 million |
6.1% |
9.0% |
$2.4 billion |
17.1% |
12.4% |
|
Operating Margin |
4.62% |
2 bps |
25 bps |
4.25% |
26 bps |
42 bps |
|
Net Earnings |
$388.3 million |
6.2% |
11.6% |
$1.4 billion |
11.9% |
8.0% |
|
Diluted Earnings Per Share |
$0.72 |
12.5% |
15.5% |
$2.48 |
18.1% |
13.6% |
|
|
|
|
|
|
|
|
|
Case Growth
(2): |
|
|
|
|
|
|
|
U.S. Broadline |
0.2% |
|
|
0.9% |
|
|
|
Local |
2.7% |
|
|
2.4% |
|
|
|
|
|
|
|
|
|
|
|
Sysco Brand Sales as a % of Cases:
(3) |
|
|
|
|
|
|
|
U.S. Broadline |
37.8% |
|
48 bps |
37.4% |
|
28 bps |
|
Local |
45.8% |
|
73 bps |
45.2% |
|
62 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
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|
|
|
(1) A reconciliation of non-GAAP measures is included in this
release. |
|
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|
|
(2) Case growth is reported on a 13 and 52 week basis,
respectively. |
|
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|
(3) Sysco Brand Sales are presented as a percentage of cases
instead of sales for more relevant comparison |
|
(4) Excluding certain items |
|
Individual components in the table above may not sum to the
totals due to rounding. |
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|
|
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. With over 65,000 associates, the company operates
approximately 300 distribution facilities worldwide and serves more
than 500,000 customer locations. For fiscal 2017 that ended July 1,
2017, the company generated sales of more than $55 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 SEC. 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 fourth quarter of fiscal 2017 that look forward in time or that
express management’s beliefs, expectations or hopes are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements reflect the views of management at the time such
statements are made and are subject to a number of risks,
uncertainties, estimates, and assumptions that may cause actual
results to differ materially from current expectations. These
statements include our outlook for fiscal 2018 and the future, our
expectations regarding future growth, including further growth in
Europe, and cash flow performance, our plans and expectations
related to our three-year financial objectives, and the key levers
for realizing these goals, expectations regarding gross profit
growth and improved margins, our beliefs regarding the impact of
productivity initiatives on our supply chain, our beliefs regarding
the impact of commercial and administrative initiatives, our
beliefs regarding the impact of our improved e-commerce
capabilities, expectations regarding the improved capabilities of
our sales force, expectations regarding the impact of using
customer insights to drive product differentiation, expectations
regarding growth of dividends, our beliefs regarding opportunities
and performance in our international business in Canada, Latin
America and Europe, which includes our Brakes Group business,
statements regarding progress on the Brakes Group’s
transformational efforts, expectations regarding the continuation
of accelerated depreciation related to our revised business
technology strategy, expectations regarding the benefits to be
obtained from integrating our Ireland businesses, anticipated
capital expenditures, and expectations regarding deflation and
inflation trends. The success of our plans and expectations
regarding our operating performance, including expectations
regarding our three-year financial objectives, are subject to the
general risks associated with our business, including the risks of
interruption of supplies due to lack of long-term contracts, severe
weather, crop conditions, work stoppages, intense competition,
technology disruptions, dependence on large regional and national
customers, inflation risks, the impact of fuel prices, adverse
publicity, and labor issues. Risks and uncertainties also include
risks impacting the economy generally, including the risks that the
current general economic conditions will deteriorate, or consumer
confidence in the economy or consumer spending, particularly on
food-away-from-home, may decline. Market conditions may not
improve. If sales from our locally managed customers do not grow at
the same rate as sales from regional and national customers, our
gross margins may decline. Our ability to meet our long-term
strategic objectives depends largely on the success of our various
business initiatives, including efforts related to revenue
management, expense management, our digital e-commerce strategy and
any efforts related to restructuring or the reduction of
administrative costs. There are various risks related to these
efforts, including the risk that these efforts may not provide the
expected benefits in our anticipated time frame, if at all, and may
prove costlier than expected; the risk that the actual costs of any
initiatives may be greater or less than currently expected; and the
risk of adverse effects to our business, results of operations and
liquidity if past and future undertakings, and the associated
changes to our business, do not prove to be cost effective or do
not result in the cost savings and other benefits at the levels
that we anticipate. Our plans related to and the timing of any
initiatives are subject to change at any time based on management’s
subjective evaluation of our overall business needs. If we are
unable to realize the anticipated benefits from our efforts, we
could become cost disadvantaged in the marketplace, and our
competitiveness and our profitability could decrease. Capital
expenditures may vary based on changes in business plans and other
factors, including risks related to the implementation of various
initiatives, the timing and successful completion of acquisitions,
construction schedules and the possibility that other cash
requirements could result in delays or cancellations of capital
spending. Periods of high inflation, either overall or in certain
product categories, can have a negative impact on us and our
customers, as high food costs can reduce consumer spending in the
food-away-from-home market, and may negatively impact our sales,
gross profit, operating income and earnings, and periods of
deflation can be difficult to manage effectively. Fluctuations in
inflation and deflation, as well as fluctuations in the value of
foreign currencies, are beyond our control and subject to broader
market forces. Expanding into international markets presents unique
challenges and risks, including compliance with local laws,
regulations and customs and the impact of local political and
economic conditions, including the impact of Brexit, and such
expansion efforts, including our Brakes acquisition, may not be
successful. Any business that we acquire, including the Brakes
transaction, may not perform as expected, and we may not realize
the anticipated benefits of our acquisitions. The Brakes Group
acquisition will require a significant commitment of time and
company resources, and realizing the anticipated benefits from the
transaction may take longer than expected. Expectations
regarding the financial statement impact of any acquisitions may
change based on management’s subjective evaluation. Meeting our
dividend target objectives depends on our level of earnings,
available cash and the success of our various strategic
initiatives. For a discussion of additional factors impacting
Sysco’s business, see the company’s Annual Report on Form 10-K for
the year ended July 2, 2016, and the company’s subsequent filings
with the SEC, including the company’s Annual Report on Form 10-K
for the year ended July 1, 2017, which we expect to file shortly
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-WeekPeriod
Ended |
|
14-WeekPeriod
Ended |
|
52-WeekPeriod
Ended |
|
53-WeekPeriod
Ended |
|
|
|
|
Jul. 1, 2017 |
|
Jul. 2, 2016 |
|
Jul. 1, 2017 |
|
Jul. 2, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
14,421,045 |
|
|
$ |
13,647,891 |
|
$ |
55,371,139 |
|
|
$ |
50,366,919 |
|
|
Cost of sales |
|
|
11,661,455 |
|
|
|
11,145,053 |
|
|
44,813,632 |
|
|
|
41,326,447 |
|
|
Gross profit |
|
|
2,759,590 |
|
|
|
2,502,838 |
|
|
10,557,507 |
|
|
|
9,040,472 |
|
|
Operating expenses |
|
|
2,201,631 |
|
|
|
1,956,013 |
|
|
8,504,336 |
|
|
|
7,189,972 |
|
|
Operating income |
|
|
557,959 |
|
|
|
546,825 |
|
|
2,053,171 |
|
|
|
1,850,500 |
|
|
Interest expense |
|
|
76,020 |
|
|
|
74,305 |
|
|
302,878 |
|
|
|
306,146 |
|
|
Other expense (income),
net |
|
|
(1,586 |
) |
|
|
141,303 |
|
|
(15,937 |
) |
|
|
111,347 |
|
|
Earnings before income
taxes |
|
|
483,525 |
|
|
|
331,217 |
|
|
1,766,230 |
|
|
|
1,433,007 |
|
|
Income taxes |
|
|
178,354 |
|
|
|
115,550 |
|
|
623,727 |
|
|
|
483,385 |
|
|
Net earnings |
|
$ |
305,171 |
|
|
$ |
215,667 |
|
$ |
1,142,503 |
|
|
$ |
949,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.57 |
|
|
$ |
0.38 |
|
$ |
2.10 |
|
|
$ |
1.66 |
|
|
Diluted earnings per share |
|
0.57 |
|
|
|
0.38 |
|
|
2.08 |
|
|
|
1.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding |
|
|
534,137,743 |
|
|
|
562,924,016 |
|
|
543,496,816 |
|
|
|
573,057,406 |
|
|
Diluted shares
outstanding |
|
|
538,797,624 |
|
|
|
567,997,290 |
|
|
548,545,027 |
|
|
|
577,391,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share |
|
$ |
0.33 |
|
|
$ |
0.31 |
|
$ |
1.30 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|
|
|
|
|
|
(In
Thousands, Except for Share Data) |
|
|
|
|
|
|
|
July 1, 2017 |
|
July 2, 2016 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
869,502 |
|
|
$ |
3,919,300 |
|
|
|
Accounts
and notes receivable, less allowances of $31,059 and
$37,880 |
|
4,012,393 |
|
|
|
3,380,971 |
|
|
|
Inventories |
|
2,995,598 |
|
|
|
2,639,174 |
|
|
|
Prepaid
expenses and other current assets |
|
139,185 |
|
|
|
114,454 |
|
|
|
Prepaid
income taxes |
|
16,760 |
|
|
|
- |
|
|
|
Total
current assets |
|
8,033,438 |
|
|
|
10,053,899 |
|
|
Plant and equipment at cost, less depreciation |
|
4,377,302 |
|
|
|
3,880,442 |
|
|
Other assets |
|
|
|
|
|
|
|
Goodwill |
|
3,889,706 |
|
|
|
2,121,661 |
|
|
|
Intangibles, less amortization |
|
1,069,272 |
|
|
|
207,461 |
|
|
|
Deferred
income taxes |
|
142,472 |
|
|
|
207,320 |
|
|
|
Other
assets |
|
249,804 |
|
|
|
251,021 |
|
|
|
Total
other assets |
|
5,351,254 |
|
|
|
2,787,463 |
|
|
Total assets |
$ |
17,761,994 |
|
|
$ |
16,721,804 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Notes
payable |
$ |
3,938 |
|
|
$ |
89,563 |
|
|
|
Accounts
payable |
|
3,971,112 |
|
|
|
2,935,982 |
|
|
|
Accrued
expenses |
|
1,576,221 |
|
|
|
1,289,312 |
|
|
|
Accrued
income taxes |
|
14,540 |
|
|
|
110,690 |
|
|
|
Current
maturities of long-term debt |
|
530,075 |
|
|
|
8,909 |
|
|
|
Total
current liabilities |
|
6,095,886 |
|
|
|
4,434,456 |
|
|
Other liabilities |
|
|
|
|
|
|
|
Long-term
debt |
|
7,660,877 |
|
|
|
7,336,930 |
|
|
|
Deferred
income taxes |
|
167,054 |
|
|
|
26,942 |
|
|
|
Other
long-term liabilities |
|
1,373,822 |
|
|
|
1,368,482 |
|
|
|
Total
other liabilities |
|
9,201,753 |
|
|
|
8,732,354 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
Noncontrolling interest |
|
82,839 |
|
|
|
75,386 |
|
|
Shareholders' equity |
|
|
|
|
|
|
|
Preferred
stock, par value $1 per share, Authorized 1,500,000shares, issued
none |
|
- |
|
|
|
- |
|
|
|
Common
stock, par value $1 per share, Authorized2,000,000,000 shares,
issued 765,174,900 shares |
|
765,175 |
|
|
|
765,175 |
|
|
|
Paid-in
capital |
|
1,327,366 |
|
|
|
1,281,140 |
|
|
|
Retained
earnings |
|
9,447,755 |
|
|
|
9,006,138 |
|
|
|
Accumulated other comprehensive loss |
|
(1,262,737 |
) |
|
|
(1,358,118 |
) |
|
|
Treasury
stock at cost 235,135,699 and 205,577,484 |
|
(7,896,043 |
) |
|
|
(6,214,727 |
) |
|
|
Total
shareholders' equity |
|
2,381,516 |
|
|
|
3,479,608 |
|
|
Total liabilities and shareholders' equity |
$ |
17,761,994 |
|
|
$ |
16,721,804 |
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
CONSOLIDATED CASH FLOWS (Unaudited) |
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
52-WeekPeriod
Ended |
|
53-WeekPeriod
Ended |
|
|
|
|
July 1, 2017 |
|
July 2, 2016 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net earnings |
$ |
1,142,503 |
|
|
$ |
949,622 |
|
|
Adjustments to reconcile net earnings to cash provided by
operating activities: |
|
|
|
|
|
|
Share-based compensation expense |
|
83,883 |
|
|
|
79,466 |
|
|
Depreciation and amortization |
|
901,992 |
|
|
|
662,710 |
|
|
Amortization of debt issuance and other debt-related costs |
|
31,852 |
|
|
|
45,137 |
|
|
Loss on foreign exchange remeasurement |
|
- |
|
|
|
101,228 |
|
|
Loss on extinguishment of debt |
|
- |
|
|
|
86,460 |
|
|
Deferred income taxes |
|
(51,846 |
) |
|
|
93,871 |
|
|
Provision for losses on receivables |
|
20,672 |
|
|
|
20,372 |
|
|
Other non-cash items |
|
6,704 |
|
|
|
23,347 |
|
|
Additional changes in certain assets and liabilities, net
ofeffect of businesses acquired: |
|
|
|
|
|
|
Decrease (increase) in receivables |
|
46,454 |
|
|
|
(27,311 |
) |
|
(Increase) decrease in inventories |
|
(113,647 |
) |
|
|
66,937 |
|
|
Decrease (increase) in prepaid expenses and othercurrent
assets |
|
8,158 |
|
|
|
(8,468 |
) |
|
Increase in accounts payable |
|
362,236 |
|
|
|
23,863 |
|
|
(Decrease) in accrued expenses |
|
(28,422 |
) |
|
|
(178,275 |
) |
|
(Decrease) increase in accrued income taxes |
|
(74,590 |
) |
|
|
231,542 |
|
|
(Increase) in other assets |
|
(36,449 |
) |
|
|
(6,639 |
) |
|
(Decrease) in other long-term liabilities |
|
(18,629 |
) |
|
|
(196,190 |
) |
|
Excess tax benefits from share-based compensation
arrangements |
|
(38,983 |
) |
|
|
(34,530 |
) |
|
Net cash provided by operating activities |
|
2,241,888 |
|
|
|
1,933,142 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Additions to plant and equipment |
|
|
(686,378 |
) |
|
|
(527,346 |
) |
|
Proceeds from sales of plant and equipment |
|
|
23,715 |
|
|
|
23,511 |
|
|
Acquisition of businesses, net of cash acquired |
|
|
(2,921,798 |
) |
|
|
(219,218 |
) |
|
Decrease in restricted cash |
|
- |
|
|
|
168,274 |
|
|
Purchase of foreign currency options |
|
- |
|
|
|
(103,501 |
) |
|
Proceeds from the sale of foreign currency options |
|
- |
|
|
|
57,452 |
|
|
Net cash used for investing activities |
|
(3,584,461 |
) |
|
|
(600,828 |
) |
|
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
Bank and commercial paper borrowings (repayments), net |
|
119,700 |
|
|
|
- |
|
|
Other debt borrowings |
|
767,216 |
|
|
|
5,134,709 |
|
|
Other debt repayments |
|
(143,664 |
) |
|
|
(126,797 |
) |
|
Senior note redemption repayments |
|
- |
|
|
|
(5,050,000 |
) |
|
Debt issuance costs |
|
(8,599 |
) |
|
|
(39,676 |
) |
|
Cash paid for settlement of cash flow hedge |
|
- |
|
|
|
(6,134 |
) |
|
Cash received from the termination of interest rate swap
agreements |
- |
|
|
|
14,496 |
|
|
Proceeds from stock option exercises |
|
204,805 |
|
|
|
282,455 |
|
|
Accelerated share and treasury stock purchases |
|
(1,886,121 |
) |
|
|
(1,949,445 |
) |
|
Dividends paid |
|
(698,647 |
) |
|
|
(698,869 |
) |
|
Excess tax benefits from share-based compensation
arrangements |
|
38,983 |
|
|
|
34,530 |
|
|
Net cash used for financing activities |
|
(1,606,327 |
) |
|
|
(2,404,731 |
) |
|
|
|
|
|
|
|
|
|
|
Effect
of exchange rates on cash |
|
|
|
(100,949 |
) |
|
|
(138,327 |
) |
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(3,049,849 |
) |
|
|
(1,210,744 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
3,919,351 |
|
|
|
5,130,044 |
|
|
Cash and cash equivalents at end of period |
|
$ |
869,502 |
|
|
$ |
3,919,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
Interest |
$ |
285,025 |
|
|
$ |
200,174 |
|
|
Income taxes |
|
761,384 |
|
|
|
180,565 |
|
|
|
|
|
|
|
|
|
|
|
Sysco Corporation and its Consolidated
Subsidiaries |
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation (Unaudited) |
|
|
|
|
|
|
|
|
|
Impact of Certain Items and Brakes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sysco’s results of operations are impacted by restructuring
costs consisting of (1) expenses associated with our revised
business technology strategy announced in fiscal 2016, as a result
of which we recorded accelerated depreciation on our existing
system and incurred costs to convert to a modernized version of our
established platform, (2) professional fees related to our
three-year strategic plan, (3) restructuring expenses within our
Brakes Group operations, (4) severance charges related to
restructuring, (5) facility closure costs, and (6) business
technology transformation costs. Our results of operations
are also impacted by the following acquisition-related items: (1)
intangible amortization expense; (2) transaction costs; and (3)
integration costs. All acquisition-related costs in fiscal
2017 that have been excluded relate to the Brakes acquisition.
Sysco's results of operations are also impacted by multi-employer
pension (MEPP) withdrawal charges. Fiscal 2016
acquisition-related costs, however, include (1) expenses
associated with our revised business technology strategy announced
in fiscal 2016, as a result of which we recorded accelerated
depreciation on our existing system and incurred costs to convert
to a modernized version of our established platform, (2)
professional fees related to our three-year strategic plan, (3)
Brakes related acquisition costs, (4) termination costs in
connection with the merger that had been proposed with US Foods,
Inc. (US Foods), (5) severance charges related to restructuring,
(6) facility closure costs, and (7) financing costs related to the
Brakes acquisition and senior notes that were issued in fiscal 2015
to fund the proposed US Foods merger. These senior notes were
redeemed in the first quarter of fiscal 2016, triggering a
redemption loss of $86.5 million, and we incurred interest on these
notes through the redemption date. Fiscal 2016 also includes
losses on foreign currency remeasurement and hedging. The
Brakes acquisition also resulted in non-recurring tax expense in
fiscal 2017, primarily from non-deductible transaction costs.
These fiscal 2017 and fiscal 2016 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 analysts' financial models and our
investors' expectations with any degree of specificity. |
|
Sysco’s fiscal year ends on the Saturday nearest to June 30th.
This resulted in a 52-week year ending June 27, 2017 for fiscal
2017 and a 53-week year ending July 2, 2016 for fiscal 2016.
Because the fourth quarter of fiscal 2016 contained an additional
week as compared to fiscal 2017, our Consolidated Results of
Operations for fiscal 2017, and any related case growth metrics,
are not directly comparable to the prior year. Management
believes that adjusting the fiscal 2016 results for the estimated
impact of the additional week provides more comparable financial
results on a year-over-year basis. As a result, the case
growth and operating metrics for fiscal 2017 presented in the table
below reflect a comparison to fiscal 2016 as adjusted by
one-fourteenth of the total metric for the fourth quarter. Failure
to make these adjustments causes the year-over-year changes in
these metrics to be understated. |
|
Although Sysco has a history of growth through acquisitions,
the Brakes Group is significantly larger than the companies
historically acquired by Sysco, with a proportionately greater
impact on Sysco’s consolidated financial statements.
Accordingly, Sysco is excluding from its non-GAAP financial
measures for the relevant period solely those acquisition costs
specific to the Brakes acquisition. We believe this approach
significantly enhances the comparability of Sysco’s results for
fiscal 2017 and fiscal 2016. Also, given the significance of
the Brakes acquisition, management believes that presenting Sysco’s
financial measures, excluding the Brakes Group operating results
(including for this purpose Brakes financing costs, which are not
included in the Brakes Group GAAP operating results and are also
not Certain Items), enhances comparability of the period over
period financial performance of Sysco’s legacy business and allows
investors to more effectively measure Sysco’s progress against the
financial goals under Sysco’s three year strategic plan. |
|
Set forth below is a reconciliation of sales, operating
expenses, operating income, interest expense, net earnings and
diluted earnings per share to adjusted results for these measures
for the periods presented. Individual components of diluted
earnings per share may not add to the total presented due to
rounding. Adjusted diluted earnings per share is
calculated using adjusted net earnings divided by diluted shares
outstanding. |
|
Sysco
Corporation and its Consolidated Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of extra week, Certain Items and
Brakes |
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands, Except for Share and Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period Ended
July 1, 2017 |
|
14-Week Period Ended
July 2, 2016 |
|
Period Change in
Dollars |
Period
%/bpsChange |
|
|
Sales |
$ |
14,421,045 |
|
|
$ |
13,647,891 |
|
|
$ |
773,154 |
|
|
5.7 |
% |
|
|
Impact of Brakes |
|
(1,318,642 |
) |
|
|
- |
|
|
|
(1,318,642 |
) |
|
NM |
|
|
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(974,849 |
) |
|
|
974,849 |
|
|
NM |
|
|
|
Comparable
sales using a 13 week basis and excluding the impact ofBrakes
(Non-GAAP) |
$ |
13,102,403 |
|
|
$ |
12,673,042 |
|
|
$ |
429,361 |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
2,759,590 |
|
|
$ |
2,502,838 |
|
|
$ |
256,752 |
|
|
10.3 |
% |
|
|
Impact of Brakes |
|
(338,721 |
) |
|
|
- |
|
|
|
(338,721 |
) |
|
NM |
|
|
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(178,774 |
) |
|
|
178,774 |
|
|
NM |
|
|
|
Comparable
gross profit using a 13 week basis and excluding the impactof
Brakes (Non-GAAP) |
$ |
2,420,869 |
|
|
$ |
2,324,064 |
|
|
$ |
96,805 |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
19.14 |
% |
|
|
18.34 |
% |
|
|
|
|
80
bps |
|
|
|
Impact of Brakes |
|
0.66 |
% |
|
|
0 |
% |
|
|
|
|
66
bps |
|
|
|
Less 1 week fourth
quarter sales |
|
0 |
% |
|
|
0 |
% |
|
|
|
|
0
bps |
|
|
|
Comparable
gross margin using a 13 week basis and excluding theimpact of
Brakes (Non-GAAP) |
|
18.48 |
% |
|
|
18.34 |
% |
|
|
|
|
14 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
2,201,631 |
|
|
$ |
1,956,013 |
|
|
$ |
245,618 |
|
|
12.6 |
% |
|
|
Impact of MEPP
charge |
|
(35,600 |
) |
|
|
- |
|
|
|
(35,600 |
) |
|
NM |
|
|
|
Impact of restructuring
costs (1) |
|
(42,573 |
) |
|
|
(56,220 |
) |
|
|
13,647 |
|
|
-24.3 |
% |
|
|
Impact of
acquisition-related costs (2) |
|
(30,697 |
) |
|
|
(25,212 |
) |
|
|
(5,485 |
) |
|
21.8 |
% |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
2,092,761 |
|
|
$ |
1,874,581 |
|
|
$ |
218,180 |
|
|
11.6 |
% |
|
|
Impact of Brakes |
|
(332,874 |
) |
|
|
- |
|
|
|
(332,874 |
) |
|
NM |
|
|
|
Impact of Brakes
restructuring costs (3) |
|
3,938 |
|
|
|
- |
|
|
|
3,938 |
|
|
NM |
|
|
|
Impact of Brakes
acquisition-related costs (2) |
|
21,435 |
|
|
|
- |
|
|
|
21,435 |
|
|
NM |
|
|
|
Less 1 week fourth
quarter operating expenses |
|
- |
|
|
|
(133,899 |
) |
|
|
133,899 |
|
|
-100.0 |
% |
|
|
Operating
expenses adjusted for certain items, extra week andexcluding the
impact of Brakes (Non-GAAP) |
$ |
1,785,260 |
|
|
$ |
1,740,682 |
|
|
$ |
44,578 |
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
557,959 |
|
|
$ |
546,825 |
|
|
$ |
11,134 |
|
|
2.0 |
% |
|
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
|
Impact of restructuring
costs (1) |
|
42,573 |
|
|
|
56,220 |
|
|
|
(13,647 |
) |
|
-24.3 |
% |
|
|
Impact of
acquisition-related costs (2) |
|
30,697 |
|
|
|
25,212 |
|
|
|
5,485 |
|
|
21.8 |
% |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
666,829 |
|
|
$ |
628,257 |
|
|
$ |
38,572 |
|
|
6.1 |
% |
|
|
Impact of Brakes |
|
(5,847 |
) |
|
|
- |
|
|
|
(5,847 |
) |
|
NM |
|
|
|
Impact of Brakes
restructuring costs (3) |
|
(3,938 |
) |
|
|
- |
|
|
|
(3,938 |
) |
|
NM |
|
|
|
Impact of Brakes
acquisition-related costs (2) |
|
(21,435 |
) |
|
|
- |
|
|
|
(21,435 |
) |
|
NM |
|
|
|
Less 1 week fourth
quarter operating income |
|
- |
|
|
|
(44,876 |
) |
|
|
44,876 |
|
|
NM |
|
|
|
Operating income adjusted for certain items, extra week and
excludingthe impact of Brakes (Non-GAAP) |
$ |
635,609 |
|
|
$ |
583,381 |
|
|
$ |
52,228 |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin (GAAP) |
|
3.87 |
% |
|
|
4.01 |
% |
|
|
|
|
-14
bps |
|
|
|
Operating
margin excluding Certain Items (Non-GAAP) |
|
4.62 |
% |
|
|
4.60 |
% |
|
|
|
|
2
bps |
|
|
|
Operating
margin excluding Certain Items, Extra Week and Brakes
(Non-GAAP) |
|
4.85 |
% |
|
|
4.60 |
% |
|
|
|
|
25
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense (GAAP) |
$ |
76,020 |
|
|
$ |
74,305 |
|
|
$ |
1,715 |
|
|
2.3 |
% |
|
|
Impact of acquisition
financing costs |
|
- |
|
|
|
(18,660 |
) |
|
|
18,660 |
|
|
NM |
|
|
|
Interest
expense adjusted for certain items (Non-GAAP) |
|
76,020 |
|
|
|
55,645 |
|
|
|
20,375 |
|
|
36.6 |
% |
|
|
Less 1 week fourth
quarter interest expense |
|
- |
|
|
|
(3,975 |
) |
|
|
3,975 |
|
|
-100.0 |
% |
|
|
Interest
expense adjusted for certain items and extra week
(Non-GAAP) |
$ |
76,020 |
|
|
$ |
51,670 |
|
|
$ |
24,350 |
|
|
47.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense |
|
(1,586 |
) |
|
|
141,303 |
|
|
|
(142,889 |
) |
|
-101.1 |
% |
|
|
Impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
(146,950 |
) |
|
|
146,950 |
|
|
-100.0 |
% |
|
|
Other (income)
expense adjusted for certain items (Non-GAAP) |
|
(1,586 |
) |
|
|
(5,647 |
) |
|
|
4,061 |
|
|
-71.9 |
% |
|
|
Less 1 week fourth
quarter other (income) expense |
|
- |
|
|
|
403 |
|
|
|
(403 |
) |
|
-100.0 |
% |
|
|
Other (income)
expense adjusted for certain items and extra week
(Non-GAAP) |
|
(1,586 |
) |
|
$ |
(5,244 |
) |
|
$ |
3,658 |
|
|
-69.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(GAAP) |
$ |
305,171 |
|
|
$ |
215,667 |
|
|
$ |
89,504 |
|
|
41.5 |
% |
|
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
|
Impact of restructuring
cost (1) |
|
42,573 |
|
|
|
56,220 |
|
|
|
(13,647 |
) |
|
-24.3 |
% |
|
|
Impact of
acquisition-related costs (2) |
|
30,697 |
|
|
|
25,212 |
|
|
|
5,485 |
|
|
21.8 |
% |
|
|
Impact of acquisition
financing costs |
|
- |
|
|
|
18,660 |
|
|
|
(18,660 |
) |
|
NM |
|
|
|
Impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
146,950 |
|
|
|
(146,950 |
) |
|
NM |
|
|
|
Tax Impact of MEPP
charge |
|
(12,900 |
) |
|
|
|
|
|
(12,900 |
) |
|
NM |
|
|
|
Tax impact of
restructuring cost (5) |
|
(13,299 |
) |
|
|
(22,083 |
) |
|
|
8,784 |
|
|
-39.8 |
% |
|
|
Tax impact of
acquisition-related costs (5) |
|
461 |
|
|
|
(9,903 |
) |
|
|
10,364 |
|
|
NM |
|
|
|
Tax impact of
acquisition financing costs (5) |
|
- |
|
|
|
(7,330 |
) |
|
|
7,330 |
|
|
NM |
|
|
|
Tax impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
(57,722 |
) |
|
|
57,722 |
|
|
NM |
|
|
|
Net earnings
adjusted for certain items
(Non-GAAP) |
$ |
388,303 |
|
|
$ |
365,671 |
|
|
$ |
22,632 |
|
|
6.2 |
% |
|
|
Impact of Brakes |
|
6,758 |
|
|
|
- |
|
|
|
6,758 |
|
|
NM |
|
|
|
Impact of Brakes
restructuring costs (3) |
|
(4,639 |
) |
|
|
- |
|
|
|
(4,639 |
) |
|
NM |
|
|
|
Impact of Brakes
acquisition-related costs (2) |
|
(25,251 |
) |
|
|
- |
|
|
|
(25,251 |
) |
|
NM |
|
|
|
Impact of interest
expense on debt issued for the Brakes acquisition (6) |
|
23,014 |
|
|
|
- |
|
|
|
23,014 |
|
|
NM |
|
|
|
Tax impact of interest
expense on debt issued for the Brakes acquisition (5) |
|
(9,147 |
) |
|
|
- |
|
|
|
(9,147 |
) |
|
NM |
|
|
|
Less 1 week fourth
quarter net earnings |
|
- |
|
|
|
(26,119 |
) |
|
|
(9,733 |
) |
|
NM |
|
|
|
Net earnings
adjusted for certain items, extra week and excluding theimpact of
Brakes (Non-GAAP) |
$ |
379,038 |
|
|
$ |
339,552 |
|
|
$ |
39,486 |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share (GAAP) |
$ |
0.57 |
|
|
$ |
0.38 |
|
|
$ |
0.19 |
|
|
50.0 |
% |
|
|
Impact of MEPP
charge |
|
0.07 |
|
|
|
- |
|
|
|
0.07 |
|
|
NM |
|
|
|
Impact of restructuring
costs (1) |
|
0.08 |
|
|
|
0.10 |
|
|
|
(0.02 |
) |
|
-20.0 |
% |
|
|
Impact of
acquisition-related costs (2) |
|
0.06 |
|
|
|
0.04 |
|
|
|
0.02 |
|
|
50.0 |
% |
|
|
Impact of acquisition
financing costs |
|
- |
|
|
|
0.03 |
|
|
|
(0.03 |
) |
|
NM |
|
|
|
Impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
0.26 |
|
|
|
(0.26 |
) |
|
NM |
|
|
|
Tax Impact of MEPP
charge |
|
(0.02 |
) |
|
|
- |
|
|
|
(0.02 |
) |
|
NM |
|
|
|
Tax impact of
restructuring cost (5) |
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
0.02 |
|
|
-50.0 |
% |
|
|
Tax impact of
acquisition-related costs (5) |
|
- |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
|
NM |
|
|
|
Tax impact of
acquisition financing costs (5) |
|
- |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
NM |
|
|
|
Tax impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
(0.10 |
) |
|
|
0.10 |
|
|
NM |
|
|
|
Diluted EPS
adjusted for certain items(Non-GAAP) (4) |
$ |
0.72 |
|
|
$ |
0.64 |
|
|
$ |
0.08 |
|
|
12.5 |
% |
|
|
Impact of Brakes |
|
(0.01 |
) |
|
|
- |
|
|
|
(0.01 |
) |
|
NM |
|
|
|
Impact of Brakes
restructuring costs (3) |
|
(0.01 |
) |
|
|
- |
|
|
|
(0.01 |
) |
|
NM |
|
|
|
Impact of Brakes
acquisition-related costs (2) |
|
(0.05 |
) |
|
|
- |
|
|
|
(0.05 |
) |
|
NM |
|
|
|
Impact of interest
expense on debt issued for the Brakes acquisition (6) |
|
0.05 |
|
|
|
- |
|
|
|
0.05 |
|
|
NM |
|
|
|
Tax impact of interest
expense on debt issued for the Brakes acquisition (5) |
|
(0.01 |
) |
|
|
- |
|
|
|
(0.01 |
) |
|
NM |
|
|
|
Less 1 week impact of
fourth quarter diluted earnings per share |
|
- |
|
|
|
(0.05 |
) |
|
|
0.05 |
|
|
NM |
|
|
|
Diluted EPS
adjusted for certain items, extra week and excluding theimpact of
Brakes (Non-GAAP) (4) |
$ |
0.70 |
|
|
$ |
0.60 |
|
|
$ |
0.10 |
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding |
|
538,797,624 |
|
|
|
567,997,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $28 million in accelerated depreciation
associated with our revised business technology strategy and $11
million related to restructuring expenses within our Brakes
operations, costs to convert to legacy systems in conjuction with
our revised business technology strategy, severance charges related
to restructuring and professional fees on 3-year financial
objectives. |
|
(2) Fiscal 2017 includes $20 million related to intangible
amortization expense from the Brakes acquisition, which is included
in the results of Brakes and $9 million in transaction costs.
Fiscal 2016 includes US Foods merger termination costs. |
|
(3) Includes Brakes acquisition restructuring
charges. |
|
(4) 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. |
|
|
(5) The tax impact of adjustments for Certain Items are
calculated by multiplying the pretax impact of each Certain Item by
the statutory rates in effect for each jurisdiction where the
Certain Item was incurred. |
|
|
(6) Sysco Corporation issued debt to fund the
Acquisition. The interest expense arising from the debt
issued is attributed to the incremental impact of Brakes operating
results, even though it is not a direct obligation of the Brakes
Group and is not considered a Certain Item. |
|
|
NM represents that the percentage change is not
meaningful. |
|
|
|
|
Sysco
Corporation and its Consolidated Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Impact of extra week, Certain Items and
Brakes |
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands, Except for Share and Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52-Week Period Ended
Jul. 1, 2017 |
|
53-Week Period Ended
Jul. 2, 2016 |
|
Period Change in
Dollars |
Period
%/bpsChange |
|
Sales |
$ |
55,371,139 |
|
|
$ |
50,366,919 |
|
|
$ |
5,004,220 |
|
|
9.9 |
% |
|
Impact of Brakes |
|
(5,170,787 |
) |
|
|
- |
|
|
|
(5,170,787 |
) |
|
NM |
|
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(974,849 |
) |
|
|
974,849 |
|
|
NM |
|
|
Comparable
sales using a 52 week basis and excluding the impact ofBrakes
(Non-GAAP) |
$ |
50,200,352 |
|
|
$ |
49,392,070 |
|
|
$ |
808,282 |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
10,557,507 |
|
|
$ |
9,040,472 |
|
|
$ |
1,517,035 |
|
|
16.8 |
% |
|
Impact of Brakes |
|
(1,333,852 |
) |
|
|
- |
|
|
|
(1,333,852 |
) |
|
NM |
|
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(178,774 |
) |
|
|
178,774 |
|
|
NM |
|
|
Comparable
gross profit using a 52 week basis and excluding theimpact of
Brakes (Non-GAAP) |
$ |
9,223,655 |
|
|
$ |
8,861,698 |
|
|
$ |
361,957 |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
19.07 |
% |
|
|
17.95 |
% |
|
|
|
|
112
bps |
|
|
Impact of Brakes |
|
0.69 |
% |
|
|
0 |
% |
|
|
|
|
69
bps |
|
|
Less 1 week fourth
quarter sales |
|
0 |
% |
|
|
0.01 |
% |
|
|
|
|
-1
bps |
|
|
Comparable
gross margin using a 52 week basis and excluding theimpact of
Brakes (Non-GAAP) |
|
18.37 |
% |
|
|
17.94 |
% |
|
|
|
|
43 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
8,504,336 |
|
|
$ |
7,189,972 |
|
|
$ |
1,314,364 |
|
|
18.3 |
% |
|
Impact of MEPP
charge |
|
(35,600 |
) |
|
|
- |
|
|
|
(35,600 |
) |
|
NM |
|
|
Impact of restructuring
costs (1) |
|
(161,011 |
) |
|
|
(123,134 |
) |
|
|
(37,877 |
) |
|
30.8 |
% |
|
Impact of
acquisition-related costs (2) |
|
(102,049 |
) |
|
|
(35,614 |
) |
|
|
(66,434 |
) |
|
NM |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
8,205,676 |
|
|
$ |
7,031,224 |
|
|
$ |
1,174,452 |
|
|
16.7 |
% |
|
Impact of Brakes |
|
(1,282,800 |
) |
|
|
- |
|
|
|
(1,282,800 |
) |
|
NM |
|
|
Impact of Brakes
restructuring costs (3) |
|
13,732 |
|
|
|
- |
|
|
|
13,732 |
|
|
NM |
|
|
Impact of Brakes
acquisition-related costs (2) |
|
78,273 |
|
|
|
- |
|
|
|
78,273 |
|
|
NM |
|
|
Less 1 week fourth
quarter operating expenses |
|
- |
|
|
|
(133,899 |
) |
|
|
133,899 |
|
|
NM |
|
|
Operating
expenses adjusted for certain items, extra week andexcluding the
impact of Brakes (Non-GAAP) |
$ |
7,014,881 |
|
|
$ |
6,897,325 |
|
|
$ |
117,556 |
|
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
2,053,171 |
|
|
$ |
1,850,500 |
|
|
$ |
202,671 |
|
|
11.0 |
% |
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
Impact of restructuring
costs (1) |
|
161,011 |
|
|
|
123,134 |
|
|
|
37,877 |
|
|
30.8 |
% |
|
Impact of
acquisition-related costs (2) |
|
102,049 |
|
|
|
35,614 |
|
|
|
66,434 |
|
|
NM |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
2,351,831 |
|
|
$ |
2,009,248 |
|
|
$ |
342,583 |
|
|
17.1 |
% |
|
Impact of Brakes |
|
(51,053 |
) |
|
|
- |
|
|
|
(51,053 |
) |
|
NM |
|
|
Impact of Brakes
restructuring costs (3) |
|
(13,732 |
) |
|
|
- |
|
|
|
(13,732 |
) |
|
NM |
|
|
Impact of Brakes
acquisition-related costs (2) |
|
(78,273 |
) |
|
|
- |
|
|
|
(78,273 |
) |
|
NM |
|
|
Less 1 week fourth
quarter operating income |
|
- |
|
|
|
(44,876 |
) |
|
|
44,876 |
|
|
NM |
|
|
Operating income adjusted for certain items, extra week
andexcluding the impact of Brakes (Non-GAAP) |
$ |
2,208,773 |
|
|
$ |
1,964,372 |
|
|
$ |
244,401 |
|
|
12.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin (GAAP) |
|
3.71 |
% |
|
|
3.67 |
% |
|
|
|
|
3
bps |
|
|
Operating
margin excluding Certain Items (Non-GAAP) |
|
4.25 |
% |
|
|
3.99 |
% |
|
|
|
|
26
bps |
|
|
Operating
margin excluding Certain Items, Extra Week and
Brakes(Non-GAAP) |
|
4.40 |
% |
|
|
3.98 |
% |
|
|
|
|
42
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense (GAAP) |
$ |
302,878 |
|
|
$ |
306,146 |
|
|
$ |
(3,268 |
) |
|
-1.1 |
% |
|
Impact of acquisition
financing costs |
|
- |
|
|
|
(123,990 |
) |
|
|
123,990 |
|
|
NM |
|
|
Interest
expense adjusted for certain items (Non-GAAP) |
$ |
302,878 |
|
|
$ |
182,156 |
|
|
$ |
120,722 |
|
|
66.3 |
% |
|
Less 1 week fourth
quarter interest expense |
|
- |
|
|
|
(3,975 |
) |
|
|
3,975 |
|
|
NM |
|
|
Interest
expense adjusted for certain items and extra week
(Non-GAAP) |
$ |
302,878 |
|
|
$ |
178,181 |
|
|
$ |
124,697 |
|
|
70.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense |
$ |
(15,937 |
) |
|
$ |
111,347 |
|
|
$ |
(127,284 |
) |
|
NM |
|
|
Impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
(146,950 |
) |
|
|
146,950 |
|
|
NM |
|
|
Other (income)
expense adjusted for certain items (Non-GAAP) |
|
(15,937 |
) |
|
|
(35,603 |
) |
|
|
19,666 |
|
|
-55.2 |
% |
|
Less 1 week fourth
quarter other (income) expense |
|
- |
|
|
|
403 |
|
|
|
(403 |
) |
|
NM |
|
|
Other (income)
expense adjusted for certain items and extra
week(Non-GAAP) |
$ |
(15,937 |
) |
|
$ |
(35,200 |
) |
|
$ |
19,263 |
|
|
-54.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(GAAP) |
$ |
1,142,503 |
|
|
$ |
949,622 |
|
|
$ |
192,881 |
|
|
20.3 |
% |
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
Impact of restructuring
cost (1) |
|
161,011 |
|
|
|
123,134 |
|
|
|
37,877 |
|
|
30.8 |
% |
|
Impact of
acquisition-related costs (2) |
|
102,049 |
|
|
|
35,614 |
|
|
|
66,435 |
|
|
NM |
|
|
Impact of acquisition
financing costs |
|
- |
|
|
|
123,990 |
|
|
|
(123,990 |
) |
|
NM |
|
|
Impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
146,950 |
|
|
|
(146,950 |
) |
|
NM |
|
|
Tax Impact of MEPP
charge |
|
(11,903 |
) |
|
|
- |
|
|
|
(11,903 |
) |
|
NM |
|
|
Tax impact of
restructuring cost (5) |
|
(51,184 |
) |
|
|
(47,333 |
) |
|
|
(3,851 |
) |
|
8.1 |
% |
|
Tax impact of
acquisition-related costs (5) |
|
(19,003 |
) |
|
|
(13,690 |
) |
|
|
(5,313 |
) |
|
38.8 |
% |
|
Tax impact of
acquisition financing costs (5) |
|
- |
|
|
|
(47,662 |
) |
|
|
47,662 |
|
|
NM |
|
|
Tax impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
(56,488 |
) |
|
|
56,488 |
|
|
NM |
|
|
Net earnings
adjusted for certain items
(Non-GAAP) |
$ |
1,359,073 |
|
|
$ |
1,214,137 |
|
|
$ |
144,936 |
|
|
11.9 |
% |
|
Impact of Brakes |
|
(46,988 |
) |
|
|
- |
|
|
|
(46,988 |
) |
|
NM |
|
|
Impact of Brakes
restructuring costs (3) |
|
(11,794 |
) |
|
|
- |
|
|
|
(11,794 |
) |
|
NM |
|
|
Impact of Brakes
acquisition-related costs (2) |
|
(67,221 |
) |
|
|
- |
|
|
|
(67,221 |
) |
|
NM |
|
|
Impact of interest
expense on debt issued for the Brakes acquisition (6) |
|
83,633 |
|
|
|
- |
|
|
|
83,633 |
|
|
NM |
|
|
Tax impact of interest
expense on debt issued for the Brakes acquisition (5) |
|
(33,880 |
) |
|
|
- |
|
|
|
(33,880 |
) |
|
NM |
|
|
Less 1 week fourth
quarter net earnings |
|
- |
|
|
|
(26,119 |
) |
|
|
26,119 |
|
|
NM |
|
|
Net earnings
adjusted for certain items, extra week and excludingthe impact of
Brakes (Non-GAAP) |
$ |
1,282,823 |
|
|
$ |
1,188,018 |
|
|
$ |
94,805 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share (GAAP) |
$ |
2.08 |
|
|
$ |
1.64 |
|
|
$ |
0.44 |
|
|
26.8 |
% |
|
Impact of MEPP
charge |
|
0.06 |
|
|
|
- |
|
|
|
0.06 |
|
|
NM |
|
|
Impact of restructuring
costs (1) |
|
0.29 |
|
|
|
0.21 |
|
|
|
0.08 |
|
|
38.1 |
% |
|
Impact of
acquisition-related costs (2) |
|
0.19 |
|
|
|
0.06 |
|
|
|
0.13 |
|
|
NM |
|
|
Impact of acquisition
financing costs |
|
- |
|
|
|
0.21 |
|
|
|
(0.21 |
) |
|
NM |
|
|
Impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
0.25 |
|
|
|
(0.25 |
) |
|
NM |
|
|
Tax Impact of MEPP
charge |
|
(0.02 |
) |
|
|
- |
|
|
|
(0.02 |
) |
|
NM |
|
|
Tax impact of
restructuring cost (5) |
|
(0.09 |
) |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
12.5 |
% |
|
Tax impact of
acquisition-related costs (5) |
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
50.0 |
% |
|
Tax impact of
acquisition financing costs (5) |
|
- |
|
|
|
(0.08 |
) |
|
|
0.08 |
|
|
NM |
|
|
Tax impact of foreign
currency remeasurement and hedging |
|
- |
|
|
|
(0.10 |
) |
|
|
0.10 |
|
|
NM |
|
|
Diluted EPS
adjusted for certain items(Non-GAAP) (4) |
$ |
2.48 |
|
|
$ |
2.10 |
|
|
$ |
0.38 |
|
|
18.1 |
% |
|
Impact of Brakes |
|
(0.09 |
) |
|
|
- |
|
|
|
(0.09 |
) |
|
NM |
|
|
Impact of Brakes
restructuring costs (3) |
|
(0.02 |
) |
|
|
- |
|
|
|
(0.02 |
) |
|
NM |
|
|
Impact of Brakes
acquisition-related costs (2) |
|
(0.12 |
) |
|
|
- |
|
|
|
(0.12 |
) |
|
NM |
|
|
Impact of interest
expense on debt issued for the Brakes acquisition (6) |
|
0.15 |
|
|
|
- |
|
|
|
0.15 |
|
|
NM |
|
|
Tax impact of interest
expense on debt issued for the Brakes acquisition (5) |
|
(0.06 |
) |
|
|
- |
|
|
|
(0.06 |
) |
|
NM |
|
|
Less 1 week impact of
fourth quarter diluted earnings per share |
|
- |
|
|
|
(0.05 |
) |
|
|
0.05 |
|
|
NM |
|
|
Diluted EPS
adjusted for certain items, extra week and excluding theimpact of
Brakes (Non-GAAP) (4) |
$ |
2.34 |
|
|
$ |
2.06 |
|
|
$ |
0.28 |
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding |
|
548,545,027 |
|
|
|
577,391,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $111 million in accelerated depreciation
associated with our revised business technology strategy and $46
million related to professional fees on 3-year financial
objectives, restructuring expenses within our Brakes operations,
costs to convert to legacy systems in conjuction with our revised
business technology strategy and severance charges related to
restructuring. |
|
(2) Fiscal 2017 includes $76 million related to intangible
amortization expense from the Brakes acquisition, which is included
in the results of Brakes and $24 million in transaction
costs. Fiscal 2016 includes US Foods merger termination
costs. |
|
(3) Includes Brakes acquisition restructuring
charges. |
|
(4) 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. |
|
(5) The tax impact of adjustments for Certain Items are
calculated by multiplying the pretax impact of each Certain Item by
the statutory rates in effect for each jurisdiction where the
Certain Item was incurred. The adjustments also include $7
million in non-deductible transaction costs and $4 million in other
one-time costs related to the Brakes acquisition. |
|
(6) Sysco Corporation issued debt to fund the
Acquisition. The interest expense arising from the debt
issued is attributed to the incremental impact of Brakes operating
results, even though it is not a direct obligation of the Brakes
Group and is not considered a Certain Item. |
|
NM
represents that the percentage change is not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
Sysco
Corporation and its Consolidated Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Impact of extra week and Certain Items |
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands, Except for Share and Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Period
Ended |
|
14-Week Period
Ended |
|
Period Change in
Dollars |
|
Period %/bps
Change |
|
|
Jul. 1, 2017 |
|
Jul. 2, 2016 |
|
|
|
U.S.
Foodservice Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
(GAAP) |
$ |
9,804,969 |
|
|
$ |
10,195,775 |
|
|
$ |
(390,806 |
) |
|
-3.8 |
% |
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(728,270 |
) |
|
|
728,270 |
|
|
NM |
|
|
Comparable
sales using a 13 week basis (Non-GAAP) |
$ |
9,804,969 |
|
|
$ |
9,467,506 |
|
|
$ |
337,464 |
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(GAAP) |
$ |
1,984,028 |
|
|
$ |
2,054,413 |
|
|
$ |
(70,385 |
) |
|
-3.4 |
% |
|
Less 1 week fourth
quarter gross profit |
|
- |
|
|
|
(146,744 |
) |
|
|
146,744 |
|
|
NM |
|
|
Comparable
gross profit using a 13 week basis (Non-GAAP) |
$ |
1,984,028 |
|
|
$ |
1,907,669 |
|
|
$ |
76,359 |
|
|
4.0 |
% |
|
Gross Margin
(GAAP) |
|
20.23 |
% |
|
|
20.15 |
% |
|
|
|
|
9
bps |
|
|
Less 1 week fourth
quarter gross margin |
|
0 |
% |
|
|
0 |
% |
|
|
|
|
0
bps |
|
|
Comparable
gross margin using a 13 week basis (Non-GAAP) |
|
20.23 |
% |
|
|
20.15 |
% |
|
|
|
|
9 bps |
|
|
Operating
expenses (GAAP) |
$ |
1,208,178 |
|
|
$ |
1,237,692 |
|
|
$ |
(29,514 |
) |
|
-2.4 |
% |
|
Impact of MEPP
charge |
|
(35,600 |
) |
|
|
- |
|
|
|
(35,600 |
) |
|
NM |
|
|
Impact of restructuring
costs |
|
- |
|
|
|
(1,175 |
) |
|
|
1,175 |
|
|
NM |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
1,172,578 |
|
|
$ |
1,236,517 |
|
|
$ |
(63,939 |
) |
|
-5.2 |
% |
|
Less 1 week fourth
quarter operating expenses |
|
- |
|
|
|
(88,323 |
) |
|
|
88,323 |
|
|
NM |
|
|
Operating
expenses adjusted for extra week (Non-GAAP) |
$ |
1,172,578 |
|
|
$ |
1,148,194 |
|
|
$ |
24,384 |
|
|
2.1 |
% |
|
Operating
income (GAAP) |
$ |
775,850 |
|
|
$ |
816,721 |
|
|
$ |
(40,871 |
) |
|
-5.0 |
% |
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
Impact of restructuring
costs |
|
- |
|
|
|
1,175 |
|
|
|
(1,175 |
) |
|
NM |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
811,450 |
|
|
$ |
817,896 |
|
|
$ |
(6,446 |
) |
|
-0.8 |
% |
|
Operating
income adjusted for extra week (Non-GAAP) |
$ |
811,450 |
|
|
$ |
759,475 |
|
|
$ |
51,975 |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Foodservice Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
2,730,263 |
|
|
$ |
1,513,361 |
|
|
$ |
1,216,902 |
|
|
80.4 |
% |
|
Gross Profit
(GAAP) |
|
584,451 |
|
|
|
261,600 |
|
|
|
322,851 |
|
|
123.4 |
% |
|
Gross Margin
(GAAP) |
|
21.41 |
% |
|
|
17.29 |
% |
|
|
|
|
412
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
521,659 |
|
|
$ |
211,594 |
|
|
$ |
310,065 |
|
|
NM |
|
|
Impact of restructuring
costs (1) |
|
(8,031 |
) |
|
|
(6,808 |
) |
|
|
(1,223 |
) |
|
18.0 |
% |
|
Impact of
acquisition-related costs (2) |
|
(21,435 |
) |
|
|
- |
|
|
|
(21,435 |
) |
|
NM |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
492,193 |
|
|
$ |
204,786 |
|
|
$ |
287,407 |
|
|
NM |
|
|
Operating
income (GAAP) |
$ |
62,792 |
|
|
$ |
50,006 |
|
|
$ |
12,786 |
|
|
25.6 |
% |
|
Impact of restructuring
costs (1) |
|
8,031 |
|
|
|
6,808 |
|
|
|
1,223 |
|
|
18.0 |
% |
|
Impact of
acquisition-related costs (2) |
|
21,435 |
|
|
|
- |
|
|
|
21,435 |
|
|
NM |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
92,258 |
|
|
$ |
56,814 |
|
|
$ |
35,444 |
|
|
62.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYGMA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
1,618,485 |
|
|
$ |
1,652,222 |
|
|
$ |
(33,737 |
) |
|
-2.0 |
% |
|
Gross Profit
(GAAP) |
|
123,267 |
|
|
|
119,214 |
|
|
|
4,053 |
|
|
3.4 |
% |
|
Gross Margin
(GAAP) |
|
7.62 |
% |
|
|
7.22 |
% |
|
|
|
40
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP) |
$ |
115,375 |
|
|
$ |
111,871 |
|
|
$ |
3,504 |
|
|
3.1 |
% |
|
Operating income
(GAAP) |
$ |
7,892 |
|
|
$ |
7,343 |
|
|
$ |
549 |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
267,328 |
|
|
$ |
286,533 |
|
|
$ |
(19,205 |
) |
|
-6.7 |
% |
|
Gross Profit
(GAAP) |
|
72,933 |
|
|
|
69,072 |
|
|
|
3,861 |
|
|
5.6 |
% |
|
Gross Margin
(GAAP) |
|
27.28 |
% |
|
|
24.11 |
% |
|
|
|
|
318
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
70,526 |
|
|
$ |
60,252 |
|
|
$ |
10,274 |
|
|
17.1 |
% |
|
Impact of restructuring
costs |
|
- |
|
|
|
(52 |
) |
|
|
52 |
|
|
NM |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
70,526 |
|
|
$ |
60,200 |
|
|
$ |
10,326 |
|
|
17.2 |
% |
|
Operating
income (GAAP) |
$ |
2,407 |
|
|
$ |
8,820 |
|
|
$ |
(6,413 |
) |
|
-72.7 |
% |
|
Impact of restructuring
costs |
|
- |
|
|
|
52 |
|
|
|
(52 |
) |
|
NM |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
2,407 |
|
|
$ |
8,872 |
|
|
$ |
(6,465 |
) |
|
-72.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(GAAP) |
$ |
(5,089 |
) |
|
$ |
(1,461 |
) |
|
$ |
(3,628 |
) |
|
248.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
285,893 |
|
|
$ |
334,604 |
|
|
$ |
(48,711 |
) |
|
-14.6 |
% |
|
Impact of restructuring
costs (3) |
|
(34,542 |
) |
|
|
(48,185 |
) |
|
|
13,643 |
|
|
-28.3 |
% |
|
Impact of
acquisition-related costs (4) |
|
(9,261 |
) |
|
|
(25,212 |
) |
|
|
15,951 |
|
|
-63.3 |
% |
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
242,090 |
|
|
$ |
261,207 |
|
|
$ |
(19,117 |
) |
|
-7.3 |
% |
|
Operating
income (GAAP) |
$ |
(290,982 |
) |
|
$ |
(336,065 |
) |
|
$ |
45,083 |
|
|
-13.4 |
% |
|
Impact of restructuring
costs (3) |
|
34,542 |
|
|
|
48,185 |
|
|
|
(13,643 |
) |
|
-28.3 |
% |
|
Impact of
acquisition-related costs (4) |
|
9,261 |
|
|
|
25,212 |
|
|
|
(15,951 |
) |
|
-63.3 |
% |
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
(247,179 |
) |
|
$ |
(262,668 |
) |
|
$ |
15,489 |
|
|
-5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sysco |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
14,421,045 |
|
|
$ |
13,647,891 |
|
|
$ |
773,154 |
|
|
5.7 |
% |
|
Gross Profit
(GAAP) |
|
2,759,590 |
|
|
|
2,502,838 |
|
|
|
256,752 |
|
|
10.3 |
% |
|
Gross Margin
(GAAP) |
|
19.14 |
% |
|
|
18.34 |
% |
|
|
|
|
80
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
2,201,631 |
|
|
$ |
1,956,013 |
|
|
$ |
245,618 |
|
|
12.6 |
% |
|
Impact of MEPP
charge |
|
(35,600 |
) |
|
|
- |
|
|
|
(35,600 |
) |
|
NM |
|
|
Impact of restructuring
costs (1) (3) |
|
(42,573 |
) |
|
|
(56,220 |
) |
|
|
13,647 |
|
|
-24.3 |
% |
|
Impact of
acquisition-related costs (2) (4) |
|
(30,697 |
) |
|
|
(25,212 |
) |
|
|
(5,485 |
) |
|
21.8 |
% |
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
2,092,761 |
|
|
$ |
1,874,581 |
|
|
$ |
218,180 |
|
|
11.6 |
% |
|
Operating
income (GAAP) |
$ |
557,959 |
|
|
$ |
546,825 |
|
|
$ |
11,134 |
|
|
2.0 |
% |
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
Impact of restructuring
costs (1) (3) |
|
42,573 |
|
|
|
56,220 |
|
|
|
(13,647 |
) |
|
-24.3 |
% |
|
Impact of
acquisition-related costs (2) (4) |
|
30,697 |
|
|
|
25,212 |
|
|
|
5,485 |
|
|
21.8 |
% |
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
666,829 |
|
|
$ |
628,257 |
|
|
$ |
38,572 |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fiscal 2017 includes Brakes acquisition-related
restructuring charges and other severance charges related to
restructuring. |
|
(2) Fiscal 2017 Includes $20 million for the 13 week period
related to intangible amortization expense from the Brakes
acquisition, which is included in the results of the Brakes
Group. |
|
(3) Fiscal 2017 $28 million for the 13 week period in
accelerated depreciation associated with our revised business
technology strategy. Also includes $4 million for the 13 week
period related to professional fees on 3-year financial objectives
and costs to convert to legacy systems in conjunction with our
revised business technology strategy. |
|
(4) Fiscal 2017 Includes $9 million for the 13 week
period related to transaction costs from the Brakes acquisition.
Fiscal 2016 includes US Foods merger termination costs. |
|
Sysco
Corporation and its Consolidated Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Impact of extra week and Certain Items |
|
|
|
|
|
|
|
|
|
|
|
|
(In
Thousands, Except for Share and Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52-Week PeriodEnded |
|
53-Week PeriodEnded |
|
Period Change in
Dollars |
|
Period %/bps
Change |
|
|
|
Jul. 1, 2017 |
|
Jul. 2, 2016 |
|
|
|
|
U.S.
Foodservice Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
(GAAP) |
$ |
37,604,698 |
|
|
$ |
37,776,442 |
|
|
$ |
(171,745 |
) |
|
-0.5 |
% |
|
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(728,270 |
) |
|
|
728,270 |
|
|
NM |
|
|
|
Comparable
sales using a 52 week basis (Non-GAAP) |
$ |
37,604,698 |
|
|
$ |
37,048,173 |
|
|
$ |
556,525 |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(GAAP) |
$ |
7,556,392 |
|
|
$ |
7,413,436 |
|
|
$ |
142,956 |
|
|
1.9 |
% |
|
|
Less 1 week fourth
quarter sales |
|
- |
|
|
|
(146,744 |
) |
|
|
146,744 |
|
|
NM |
|
|
|
Comparable
gross profit using a 52 week basis (Non-GAAP) |
$ |
7,556,392 |
|
|
$ |
7,266,692 |
|
|
$ |
289,700 |
|
|
4.0 |
% |
|
|
Gross Margin
(GAAP) |
|
20.09 |
% |
|
|
19.62 |
% |
|
|
|
|
47
bps |
|
|
|
Less 1 week fourth
quarter sales |
|
0 |
% |
|
|
0.01 |
% |
|
|
|
|
NM |
|
|
|
Comparable
gross margin using a 52 week basis (Non-GAAP) |
|
20.09 |
% |
|
|
19.61 |
% |
|
|
|
|
48 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
4,664,780 |
|
|
$ |
4,641,504 |
|
|
$ |
23,276 |
|
|
0.5 |
% |
|
|
Impact of MEPP
charge |
|
(35,600 |
) |
|
|
- |
|
|
|
(35,600 |
) |
|
NM |
|
|
|
Impact of restructuring
costs |
|
(470 |
) |
|
|
(3,351 |
) |
|
|
2,881 |
|
|
-86.0 |
% |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
4,628,710 |
|
|
$ |
4,638,153 |
|
|
$ |
(9,443 |
) |
|
-0.2 |
% |
|
|
Less 1 week fourth
quarter operating expenses |
|
- |
|
|
|
(88,323 |
) |
|
|
88,323 |
|
|
NM |
|
|
|
Operating
expenses adjusted for extra week (Non-GAAP) |
$ |
4,628,710 |
|
|
$ |
4,549,830 |
|
|
$ |
78,880 |
|
|
1.7 |
% |
|
|
Operating
income (GAAP) |
$ |
2,891,612 |
|
|
$ |
2,771,932 |
|
|
$ |
119,680 |
|
|
4.3 |
% |
|
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
|
Impact of restructuring
costs |
|
470 |
|
|
|
3,351 |
|
|
|
(2,881 |
) |
|
-86.0 |
% |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
2,927,682 |
|
|
$ |
2,775,283 |
|
|
$ |
152,399 |
|
|
5.5 |
% |
|
|
Less 1 week fourth
quarter operating income |
|
- |
|
|
|
(58,421 |
) |
|
|
58,421 |
|
|
NM |
|
|
|
Operating
income adjusted for extra week (Non-GAAP) |
$ |
2,927,682 |
|
|
$ |
2,716,862 |
|
|
$ |
210,820 |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Foodservice Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
10,613,059 |
|
|
$ |
5,436,209 |
|
|
$ |
5,176,850 |
|
|
95.2 |
% |
|
|
Gross Profit
(GAAP) |
|
2,275,819 |
|
|
|
938,942 |
|
|
|
1,336,877 |
|
|
NM |
|
|
|
Gross Margin
(GAAP) |
|
21.44 |
% |
|
|
17.27 |
% |
|
|
|
|
417
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
2,032,703 |
|
|
$ |
761,783 |
|
|
$ |
1,270,920 |
|
|
NM |
|
|
|
Impact of restructuring
costs (1) |
|
(25,080 |
) |
|
|
(8,945 |
) |
|
|
(16,135 |
) |
|
NM |
|
|
|
Impact of
acquisition-related costs (2) |
|
(78,273 |
) |
|
|
- |
|
|
|
(78,273 |
) |
|
NM |
|
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
1,929,350 |
|
|
$ |
752,838 |
|
|
$ |
1,176,512 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
243,116 |
|
|
$ |
177,159 |
|
|
$ |
65,957 |
|
|
37.2 |
% |
|
|
Impact of restructuring
costs (1) |
|
25,080 |
|
|
|
8,945 |
|
|
|
16,135 |
|
|
NM |
|
|
|
Impact of
acquisition-related costs (2) |
|
78,273 |
|
|
|
- |
|
|
|
78,273 |
|
|
NM |
|
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
346,469 |
|
|
$ |
186,104 |
|
|
$ |
160,365 |
|
|
86.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYGMA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
6,178,909 |
|
|
$ |
6,102,328 |
|
|
$ |
76,581 |
|
|
1.3 |
% |
|
|
Gross Profit
(GAAP) |
|
471,155 |
|
|
|
455,981 |
|
|
|
15,174 |
|
|
3.3 |
% |
|
|
Gross Margin
(GAAP) |
|
7.63 |
% |
|
|
7.47 |
% |
|
|
|
|
15
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
447,856 |
|
|
$ |
428,512 |
|
|
$ |
19,344 |
|
|
4.5 |
% |
|
|
Impact of restructuring
costs |
|
- |
|
|
|
(102 |
) |
|
|
102 |
|
|
NM |
|
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
447,856 |
|
|
$ |
428,410 |
|
|
$ |
19,446 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
23,299 |
|
|
$ |
27,469 |
|
|
$ |
(4,170 |
) |
|
-15.2 |
% |
|
|
Impact of restructuring
costs |
|
- |
|
|
|
102 |
|
|
|
(102 |
) |
|
NM |
|
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
23,299 |
|
|
$ |
27,571 |
|
|
$ |
(4,272 |
) |
|
-15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
974,473 |
|
|
$ |
1,051,939 |
|
|
$ |
(77,466 |
) |
|
-7.4 |
% |
|
|
Gross Profit
(GAAP) |
|
261,408 |
|
|
|
240,566 |
|
|
|
20,842 |
|
|
8.7 |
% |
|
|
Gross Margin
(GAAP) |
|
26.83 |
% |
|
|
22.87 |
% |
|
|
|
|
396
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
241,129 |
|
|
$ |
207,980 |
|
|
$ |
33,149 |
|
|
15.9 |
% |
|
|
Impact of restructuring
costs |
|
- |
|
|
|
(167 |
) |
|
|
167 |
|
|
NM |
|
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
241,129 |
|
|
$ |
207,813 |
|
|
$ |
33,316 |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
20,279 |
|
|
$ |
32,586 |
|
|
$ |
(12,307 |
) |
|
-37.8 |
% |
|
|
Impact of restructuring
costs |
|
- |
|
|
|
167 |
|
|
|
(167 |
) |
|
NM |
|
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
20,279 |
|
|
$ |
32,753 |
|
|
$ |
(12,474 |
) |
|
-38.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(GAAP) |
$ |
(7,267 |
) |
|
$ |
(8,453 |
) |
|
$ |
1,186 |
|
|
-14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
1,117,868 |
|
|
$ |
1,150,193 |
|
|
$ |
(32,325 |
) |
|
-2.8 |
% |
|
|
Impact of restructuring
costs (3) |
|
(135,461 |
) |
|
|
(110,568 |
) |
|
|
(24,893 |
) |
|
22.5 |
% |
|
|
Impact of
acquisition-related costs (4) |
|
(23,776 |
) |
|
|
(35,614 |
) |
|
|
11,838 |
|
|
-33.2 |
% |
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
958,631 |
|
|
$ |
1,004,011 |
|
|
$ |
(45,380 |
) |
|
-4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (GAAP) |
$ |
(1,125,135 |
) |
|
$ |
(1,158,646 |
) |
|
$ |
33,511 |
|
|
-2.9 |
% |
|
|
Impact of restructuring
costs (3) |
|
135,461 |
|
|
|
110,568 |
|
|
|
24,893 |
|
|
22.5 |
% |
|
|
Impact of
acquisition-related costs (4) |
|
23,776 |
|
|
|
35,614 |
|
|
|
(11,838 |
) |
|
-33.2 |
% |
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
(965,898 |
) |
|
$ |
(1,012,464 |
) |
|
$ |
46,566 |
|
|
-4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sysco |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (GAAP) |
$ |
55,371,139 |
|
|
$ |
50,366,919 |
|
|
$ |
5,004,219 |
|
|
9.9 |
% |
|
|
Gross Profit
(GAAP) |
|
10,557,507 |
|
|
|
9,040,472 |
|
|
|
1,517,035 |
|
|
16.8 |
% |
|
|
Gross Margin
(GAAP) |
|
19.07 |
% |
|
|
17.95 |
% |
|
|
|
|
112
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (GAAP) |
$ |
8,504,336 |
|
|
$ |
7,189,972 |
|
|
$ |
1,314,364 |
|
|
18.3 |
% |
|
|
Impact of MEPP
charge |
|
(35,600 |
) |
|
|
- |
|
|
|
(35,600 |
) |
|
NM |
|
|
|
Impact of restructuring
costs (1) (3) |
|
(161,011 |
) |
|
|
(123,134 |
) |
|
|
(37,877 |
) |
|
30.8 |
% |
|
|
Impact of
acquisition-related costs (2) (4) |
|
(102,049 |
) |
|
|
(35,614 |
) |
|
|
(66,435 |
) |
|
NM |
|
|
|
Operating
expenses adjusted for certain items (Non-GAAP) |
$ |
8,205,676 |
|
|
$ |
7,031,225 |
|
|
$ |
1,174,451 |
|
|
16.7 |
% |
|
|
Operating
income (GAAP) |
$ |
2,053,171 |
|
|
$ |
1,850,500 |
|
|
$ |
202,671 |
|
|
11.0 |
% |
|
|
Impact of MEPP
charge |
|
35,600 |
|
|
|
- |
|
|
|
35,600 |
|
|
NM |
|
|
|
Impact of restructuring
costs (1) (3) |
|
161,011 |
|
|
|
123,134 |
|
|
|
37,877 |
|
|
30.8 |
% |
|
|
Impact of
acquisition-related costs (2) (4) |
|
102,049 |
|
|
|
35,614 |
|
|
|
66,435 |
|
|
NM |
|
|
|
Operating
income adjusted for certain items (Non-GAAP) |
$ |
2,351,831 |
|
|
$ |
2,009,248 |
|
|
$ |
342,584 |
|
|
17.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fiscal 2017 includes Brakes acquisition-related
restructuring charges and other severance charges related to
restructuring. |
|
|
(2) Fiscal 2017 Includes $76 million for 52 week period
related to intangible amortization expense from the Brakes
acquisition, which is included in the results of the Brakes
Group. |
|
|
(3) Fiscal 2017 $111 million for the 52 week period in
accelerated depreciation associated with our revised business
technology strategy. Also includes $22 million for the 52 week
period related to professional fees on 3-year financial objectives
and costs to convert to legacy systems in conjunction with our
revised business technology strategy. |
|
|
(4) Fiscal 2017 Includes $24 million for the 52 week
period related to transaction costs from the Brakes acquisition.
Fiscal 2016 includes US Foods merger termination costs. |
|
|
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 is reconciled to net cash provided
by operating activities. |
|
|
|
|
|
|
|
|
|
|
|
|
52-Week Period Ended
Jul. 1, 2017 |
|
53-Week Period Ended
Jul. 2, 2016 |
|
52-Week Period Change
in Dollars |
|
Net cash
provided by operating activities (GAAP) |
$ |
2,241,888 |
|
|
$ |
1,933,142 |
|
|
$ |
308,746 |
|
|
Additions to plant and
equipment |
|
(686,378 |
) |
|
|
(527,346 |
) |
|
|
(159,032 |
) |
|
Proceeds from sales of
plant and equipment |
|
23,715 |
|
|
|
23,511 |
|
|
|
204 |
|
|
Free Cash Flow
(Non-GAAP) |
$ |
1,579,225 |
|
|
$ |
1,429,307 |
|
|
$ |
149,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information contact:
Neil Russell
Investor Contact
T 281-584-1308
Camilla Zuckero
Media Contact
T 281-899-1839
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