The Chefs’ Warehouse Provides Update on Liquidity
March 18 2020 - 4:37PM
The Chefs' Warehouse, Inc. (NASDAQ:CHEF), a premier distributor of
specialty food products in North America, today announced that on
March 18, 2020, the Company borrowed $100 million under its $150
million Asset-Based Loan Facility, maturing in March of 2022.
Inclusive of this borrowing, the Company has approximately $175
million in cash on its balance sheet at this time. The Company took
this step to maintain appropriate liquidity during this period of
extreme uncertainty.
About The Chefs' Warehouse
The Chefs' Warehouse, Inc.
(http://www.chefswarehouse.com) is a premier distributor of
specialty food products in the United States 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, chocolatiers, cruise lines, casinos
and specialty food stores. The Chefs' Warehouse, Inc. carries and
distributes more than 55,000 products to more than 34,000 customer
locations throughout the United States and Canada.
Forward-Looking Statements
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: 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 Company’s sensitivity to general economic
conditions, including disposable income levels and changes in
consumer discretionary spending; the Company’s ability to expand
its operations in its existing markets and to penetrate new markets
through acquisitions; the Company may not achieve the benefits
expected from its acquisitions, which could adversely impact its
business and operating results; the Company may have difficulty
managing and facilitating its future growth; conditions beyond the
Company’s control could materially affect the cost and/or
availability of its specialty food products or center-of-the-plate
products and/or interrupt its distribution network; the Company’s
increased distribution of center-of-the-plate products, like meat,
poultry and seafood, involves increased exposure to price
volatility experienced by those products; the Company’s business is
a low-margin business and its profit margins may be sensitive to
inflationary and deflationary pressures; because the Company’s
foodservice distribution operations are concentrated in certain
culinary markets, the Company is susceptible to economic and other
developments, including adverse weather conditions, in these areas;
fuel cost volatility may have a material adverse effect on the
Company’s business, financial condition or results of operations;
the Company’s ability to raise capital in the future may be
limited; the Company may be unable to obtain debt or other
financing, including financing necessary to execute on our
acquisition strategy, on favorable terms or at all; and the
Company’s business operations and future development could be
significantly disrupted if it loses key members of its management
team. 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 Securities and
Exchange Commission (“SEC”) on February 24, 2020 and
other reports filed by the Company with the SEC since that date.
The Company is not undertaking to update any information in the
foregoing report until the effective date of its future reports
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.
Contact: Investor Relations Jim Leddy, CFO,
(718) 684-8415
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