The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) (the “Company” or
“Chefs’”), a premier distributor of specialty food products in the
United States and Canada, today reported financial results for its
second quarter ended June 26, 2020.
Financial highlights for the second quarter of 2020
compared to the second quarter of 2019:
- Net sales decreased 51.3% to $200.5
million for the second quarter of 2020 from $411.4 million for the
second quarter of 2019.
- GAAP net loss was $20.3 million, or
$(0.57) per diluted share, for the second quarter of 2020 compared
to net income of $7.7 million, or $0.26 per diluted share, in the
second quarter of 2019.
- Adjusted EPS1 was $(0.52) for the
second quarter of 2020 compared to $0.33 for the second quarter of
2019.
- Adjusted EBITDA1 was $(13.7)
million for the second quarter of 2020 compared to $26.0 million
for the second quarter of 2019.
- The Company had approximately
$210.0 million of cash on the balance sheet and $31.8 million of
availability on its asset-based loan facility as of July 24,
2020.
“The second quarter was one of the most
challenging quarters in our company’s history,” said Chris Pappas,
Chairman and Chief Executive Officer of the Company. “Our company
focus was centered on the safety of our teams and supporting our
customer and supplier partners during the gradual transition by
restaurants to limited service, take-out and curbside operations.
In addition, we continued developing and enhancing our emerging
direct-to-consumer “Shop Like a Chef” platform. Despite our largest
markets being closed for in-room dining, we saw gradual improvement
from April activity averaging approximately 40% of prior-year
revenue to June averaging approximately 60% of prior-year revenue.
In addition to the impacts of COVID-19, expected openings in
certain key markets were further delayed due to the widespread
social protest activity across our network. During the quarter, we
took a number of important steps to strengthen our balance sheet
and right-size our cost structure to ensure Chefs’ will eventually
be back on the path to growth and improving profitability that we
were on prior to this period of volatility and uncertainty driven
by COVID-19.”
Second Quarter Fiscal 2020 Results
Net sales for the quarter ended June 26,
2020 decreased 51.3% to $200.5 million from $411.4 million for the
quarter ended June 28, 2019. Organic revenue
declined $237.6 million, or 57.8% versus the prior
year quarter. Sales growth of $26.7 million,
or 6.5%, resulted from acquisitions. Organic case count
declined approximately 68.3% in the Company’s specialty
category with unique customers and placements declines
at 56.3% and 69.1%, respectively, compared to the
prior year quarter. Pounds sold in the Company’s
center-of-the-plate category decreased approximately
51.3% compared to the prior year quarter. Estimated inflation
was 0.2% in the Company’s specialty categories
and was 6.7% in the center-of-the-plate categories compared to
the prior year quarter.
Gross profit decreased approximately 55.4% to
$47.4 million for the second quarter of 2020 from $106.5 million
for the second quarter of 2019. Gross profit margin decreased
approximately 222 basis points to 23.7% from 25.9%. Gross margins
in the Company’s specialty category decreased 641 basis points and
gross margins increased 212 basis points in the Company’s
center-of-the-plate category compared to the prior year quarter.
Total gross profit results include an increase in valuation
adjustments of approximately $5.5 million related to estimated
inventory losses due to the expected extended impact of COVID-19 on
certain markets and customer openings.
Total operating expenses decreased by
approximately 19.9% to $72.8 million for the second quarter of 2020
from $90.9 million for the second quarter of 2019. As a percentage
of net sales, operating expenses were 36.3% in the second quarter
of 2020 compared to 22.1% in the second quarter of 2019. Lower
costs associated with compensation and benefits and lower
distribution related costs were the primary drivers of the decrease
in operating expenses in the quarter.
Operating loss for the second quarter of 2020
was $25.4 million compared to operating income of $15.5 million for
the second quarter of 2019. The decrease in operating income was
driven primarily by lower gross profit, offset in part by lower
operating expenses, as discussed above. As a percentage of net
sales, operating loss was 12.6% in the second quarter of 2020 as
compared to operating income of 3.8% in the second quarter of
2019.
Total interest expense increased to $5.8 million
for the second quarter of 2020 compared to $4.8 million for the
second quarter of 2019. The increase was primarily due to $1.2
million in one-time third-party costs incurred during the second
quarter of 2020 in connection with the extension of a majority of
the Company’s senior secured term loans.
Net loss for the second quarter of 2020 was
$20.3 million, or $(0.57) per diluted share, compared to net income
of $7.7 million, or $0.26 per diluted share, for the second quarter
of 2019.
Adjusted EBITDA1 was $(13.7) million for the
second quarter of 2020 compared to $26.0 million for the second
quarter of 2019. For the second quarter of 2020, adjusted net loss1
was $18.7 million, or $(0.52) per diluted share compared to
adjusted net income of $9.8 million, or $0.33 per diluted share for
the second quarter of 2019.
As of July 24, 2020, the Company had
approximately $241.8 million of available liquidity comprised of
$210.0 million in cash and $31.8 million of availability under the
Company’s ABL Credit Facility. Net debt as of July 24 2020 was
approximately $193.3 million, inclusive of cash and cash
equivalents.
Full Year 2020 Guidance
Due to the continued uncertainty regarding the
pace of economic recovery and the lifting of in-dining restrictions
across our markets, the Company will not be providing guidance for
2020. The Company will look to provide guidance as it gains more
clarity on the expected length of the economic downturn and the
outlook for customer re-openings.
1EBITDA, Adjusted EBITDA, adjusted net income
(loss) and adjusted EPS are non-GAAP measures. Please see the
schedules accompanying this earnings release for a reconciliation
of EBITDA, Adjusted EBITDA, adjusted net income (loss) and adjusted
EPS to these measures’ most directly comparable GAAP measure.
Second Quarter 2020 Earnings Conference
Call
The Company will host a conference call to
discuss second quarter 2020 financial results today at 8:30 a.m.
EST. 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 for 30 days.
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 sensitivity to general economic conditions,
including disposable income levels and changes in consumer
discretionary spending; our ability to expand our operations in our
existing markets and to penetrate new markets through acquisitions;
we may not achieve the benefits expected from our acquisitions,
which could adversely impact our business and operating results; we
may have difficulty managing and facilitating our future growth;
conditions beyond our control could materially affect the cost
and/or availability of our specialty food products or
center-of-the-plate products and/or interrupt our distribution
network; our increased distribution of center-of-the-plate
products, like meat, poultry and seafood, involves increased
exposure to price volatility experienced by those products; our
business is a low-margin business and our profit margins may be
sensitive to inflationary and deflationary pressures; because our
foodservice distribution operations are concentrated in certain
culinary markets, we are susceptible to economic and other
developments, including adverse weather conditions, in these areas;
fuel cost volatility may have a material adverse effect on our
business, financial condition or results of operations; our ability
to raise capital in the future may be limited; we may be unable to
obtain debt or other financing, including financing necessary to
execute on our acquisition strategy, on favorable terms or at all;
interest charged on our outstanding debt may be adversely affected
by changes in the method of determining London Interbank Offered
Rate (LIBOR), or the replacement of LIBOR with an alternative rate;
our business operations and future development could be
significantly disrupted if we lose key members of our management
team; and significant public health epidemics or pandemics,
including COVID-19, may adversely affect our business,
results of operations and financial condition. 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 24, 2020 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 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 55,000 products to more than
34,000 customer locations throughout the United States 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) |
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 26, 2020 |
|
June 28, 2019 |
|
June 26, 2020 |
|
June 28, 2019 |
Net sales |
$ |
200,496 |
|
|
$ |
411,420 |
|
|
$ |
575,927 |
|
|
$ |
768,447 |
|
Cost of sales |
153,057 |
|
|
304,945 |
|
|
437,587 |
|
|
571,783 |
|
Gross profit |
47,439 |
|
|
106,475 |
|
|
138,340 |
|
|
196,664 |
|
|
|
|
|
|
|
|
|
Operating expenses |
72,847 |
|
|
90,939 |
|
|
180,764 |
|
|
174,978 |
|
Operating (loss) income |
(25,408 |
) |
|
15,536 |
|
|
(42,424 |
) |
|
21,686 |
|
|
|
|
|
|
|
|
|
Interest expense |
5,772 |
|
|
4,845 |
|
|
10,896 |
|
|
9,396 |
|
Loss on asset disposal |
1 |
|
|
6 |
|
|
43 |
|
|
40 |
|
(Loss) income before income
taxes |
(31,181 |
) |
|
10,685 |
|
|
(53,363 |
) |
|
12,250 |
|
|
|
|
|
|
|
|
|
Provision for income tax
(benefit) expense |
(10,847 |
) |
|
2,939 |
|
|
(18,944 |
) |
|
3,370 |
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(20,334 |
) |
|
$ |
7,746 |
|
|
$ |
(34,419 |
) |
|
$ |
8,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.57 |
) |
|
$ |
0.26 |
|
|
$ |
(1.05 |
) |
|
$ |
0.30 |
|
Diluted |
$ |
(0.57 |
) |
|
$ |
0.26 |
|
|
$ |
(1.05 |
) |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
35,759,193 |
|
|
29,527,167 |
|
|
32,672,876 |
|
|
29,492,138 |
|
Diluted |
35,759,193 |
|
|
29,848,285 |
|
|
32,672,876 |
|
|
29,844,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE CHEFS’ WAREHOUSE, INC.CONDENSED
CONSOLIDATED BALANCE SHEETAS OF JUNE 26, 2020
AND DECEMBER 27, 2019 (in
thousands) |
|
|
|
|
|
June 26, 2020 |
|
December 27, 2019 |
|
(unaudited) |
|
|
Cash and cash equivalents |
$ |
201,824 |
|
|
$ |
140,233 |
|
Accounts receivable, net |
105,125 |
|
|
175,044 |
|
Inventories, net |
96,627 |
|
|
124,056 |
|
Prepaid expenses and other
current assets |
27,711 |
|
|
13,823 |
|
Total current assets |
431,287 |
|
|
453,156 |
|
|
|
|
|
Equipment, leasehold
improvements and software, net |
121,175 |
|
|
92,846 |
|
Operating lease right-of-use
assets |
122,881 |
|
|
127,649 |
|
Goodwill |
214,561 |
|
|
197,743 |
|
Intangible assets, net |
142,355 |
|
|
138,751 |
|
Other assets |
3,141 |
|
|
3,534 |
|
Total assets |
$ |
1,035,400 |
|
|
$ |
1,013,679 |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
60,878 |
|
|
$ |
94,097 |
|
Accrued liabilities |
28,368 |
|
|
29,847 |
|
Short-term operating lease
liabilities |
17,968 |
|
|
17,453 |
|
Accrued compensation |
8,550 |
|
|
8,033 |
|
Current portion of long-term
debt |
5,905 |
|
|
721 |
|
Total current liabilities |
121,669 |
|
|
150,151 |
|
|
|
|
|
Long-term debt, net of current
portion |
397,818 |
|
|
386,106 |
|
Operating lease
liabilities |
115,757 |
|
|
120,572 |
|
Deferred taxes, net |
5,069 |
|
|
10,883 |
|
Other liabilities |
7,770 |
|
|
10,034 |
|
Total liabilities |
648,083 |
|
|
677,746 |
|
|
|
|
|
Preferred stock |
— |
|
|
— |
|
Common stock |
378 |
|
|
304 |
|
Additional paid in
capital |
298,230 |
|
|
212,240 |
|
Cumulative foreign currency
translation adjustment |
(2,309 |
) |
|
(2,048 |
) |
Retained earnings |
91,018 |
|
|
125,437 |
|
Stockholders’ equity |
387,317 |
|
|
335,933 |
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
1,035,400 |
|
|
$ |
1,013,679 |
|
|
|
|
|
|
|
|
|
|
THE CHEFS’ WAREHOUSE, INC.CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE
TWENTY-SIX WEEKS ENDED JUNE 26, 2020 AND JUNE 28,
2019 (unaudited, in thousands) |
|
|
|
|
|
June 26, 2020 |
|
June 28, 2019 |
Cash flows from
operating activities: |
|
|
|
Net (loss) income |
$ |
(34,419 |
) |
|
$ |
8,880 |
|
|
|
|
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
9,675 |
|
|
6,055 |
|
Amortization of intangible assets |
6,720 |
|
|
6,184 |
|
Provision for allowance for doubtful accounts |
19,611 |
|
|
1,914 |
|
Non-cash operating lease expense |
463 |
|
|
1,151 |
|
Deferred taxes |
(5,814 |
) |
|
1,332 |
|
Amortization of deferred financing fees |
1,478 |
|
|
1,044 |
|
Stock compensation |
2,850 |
|
|
2,003 |
|
Change in fair value of contingent earn-out liabilities |
(6,649 |
) |
|
2,795 |
|
Loss on asset disposal |
43 |
|
|
40 |
|
Changes in assets and
liabilities, net of acquisitions: |
|
|
|
Accounts receivable |
70,483 |
|
|
7,424 |
|
Inventories |
34,877 |
|
|
(7,965 |
) |
Prepaid expenses and other current assets |
(9,460 |
) |
|
(640 |
) |
Accounts payable, accrued liabilities and accrued compensation |
(43,398 |
) |
|
(5,482 |
) |
Other assets and liabilities |
1,119 |
|
|
(2,845 |
) |
Net cash provided by
operating activities |
47,579 |
|
|
21,890 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(4,400 |
) |
|
(8,549 |
) |
Cash paid for acquisitions, net of cash received |
(63,450 |
) |
|
(28,292 |
) |
Net cash used in
investing activities |
(67,850 |
) |
|
(36,841 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payment of debt, finance lease and other financing obligations |
(37,439 |
) |
|
(1,716 |
) |
Proceeds from the issuance of common stock, net of issuance
costs |
85,941 |
|
|
— |
|
Payment of deferred financing fees |
(856 |
) |
|
— |
|
Proceeds from exercise of stock options |
— |
|
|
558 |
|
Surrender of shares to pay withholding taxes |
(2,727 |
) |
|
(868 |
) |
Cash paid for contingent earn-out liability |
(2,927 |
) |
|
(200 |
) |
Borrowings under asset based loan facility |
100,000 |
|
|
— |
|
Payments under asset based loan facility |
(60,000 |
) |
|
(960 |
) |
Net cash provided by
(used in) financing activities |
81,992 |
|
|
(3,186 |
) |
|
|
|
|
Effect of foreign currency
translation on cash and cash equivalents |
(130 |
) |
|
21 |
|
|
|
|
|
Net increase in cash
and cash equivalents |
61,591 |
|
|
(18,116 |
) |
Cash and cash equivalents at
beginning of period |
140,233 |
|
|
42,410 |
|
Cash and cash
equivalents at end of period |
$ |
201,824 |
|
|
$ |
24,294 |
|
|
|
|
|
|
|
|
|
|
THE CHEFS’ WAREHOUSE, INC.RECONCILIATION
OF GAAP NET (LOSS) INCOME PER COMMON
SHARE(unaudited; in thousands except share amounts
and per share data) |
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 26, 2020 |
|
June 28, 2019 |
|
June 26, 2020 |
|
June 28, 2019 |
Numerator: |
|
|
|
|
|
|
|
Net (loss) income |
$ |
(20,334 |
) |
|
$ |
7,746 |
|
|
$ |
(34,419 |
) |
|
$ |
8,880 |
|
Denominator: |
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
35,759,193 |
|
|
29,527,167 |
|
|
32,672,876 |
|
|
29,492,138 |
|
Dilutive effect of unvested
common shares |
— |
|
|
321,118 |
|
|
— |
|
|
352,476 |
|
Weighted average diluted
common shares outstanding |
35,759,193 |
|
|
29,848,285 |
|
|
32,672,876 |
|
|
29,844,614 |
|
|
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.57 |
) |
|
$ |
0.26 |
|
|
$ |
(1.05 |
) |
|
$ |
0.30 |
|
Diluted |
$ |
(0.57 |
) |
|
$ |
0.26 |
|
|
$ |
(1.05 |
) |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE CHEFS’ WAREHOUSE, INC.RECONCILIATION
OF EBITDA AND ADJUSTED EBITDA TO NET (LOSS)
INCOME(unaudited; in thousands) |
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 26, 2020 |
|
June 28, 2019 |
|
June 26, 2020 |
|
June 28, 2019 |
Net (loss) income |
$ |
(20,334 |
) |
|
$ |
7,746 |
|
|
$ |
(34,419 |
) |
|
$ |
8,880 |
|
Interest expense |
5,772 |
|
|
4,845 |
|
|
10,896 |
|
|
9,396 |
|
Depreciation |
4,913 |
|
|
3,174 |
|
|
9,675 |
|
|
6,055 |
|
Amortization |
3,422 |
|
|
3,307 |
|
|
6,720 |
|
|
6,184 |
|
Provision for income tax (benefit) expense |
(10,847 |
) |
|
2,939 |
|
|
(18,944 |
) |
|
3,370 |
|
EBITDA (1) |
(17,074 |
) |
|
22,011 |
|
|
(26,072 |
) |
|
33,885 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Stock compensation (2) |
1,999 |
|
|
1,088 |
|
|
2,850 |
|
|
2,003 |
|
Duplicate rent (3) |
698 |
|
|
163 |
|
|
1,396 |
|
|
163 |
|
Integration and deal costs/third party transaction costs (4) |
506 |
|
|
32 |
|
|
940 |
|
|
210 |
|
Change in fair value of earn-out obligations (5) |
163 |
|
|
2,688 |
|
|
(6,649 |
) |
|
2,795 |
|
Loss on asset disposal (6) |
1 |
|
|
6 |
|
|
43 |
|
|
40 |
|
Moving expenses (7) |
— |
|
|
— |
|
|
— |
|
|
61 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
$ |
(13,707 |
) |
|
$ |
25,988 |
|
|
$ |
(27,492 |
) |
|
$ |
39,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 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 duplicate rent and occupancy costs for our Los
Angeles, CA facility.
- Represents transaction related costs incurred to complete and
integrate acquisitions, including due diligence, legal and
integration.
- Represents the non-cash change in fair value of contingent
earn-out liabilities related to our acquisitions.
- Represents the non-cash charge related to the disposal of
certain equipment.
- Represents moving expenses for the consolidation and expansion
of our Ridgefield, CT and Toronto, Canada facilities.
|
THE CHEFS’ WAREHOUSE, INC.RECONCILIATION
OF ADJUSTED NET (LOSS) INCOME TO NET (LOSS)
INCOME(unaudited; in thousands except share
amounts and per share data) |
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 26, 2020 |
|
June 28, 2019 |
|
June 26, 2020 |
|
June 28, 2019 |
Net (loss) income |
$ |
(20,334 |
) |
|
$ |
7,746 |
|
|
$ |
(34,419 |
) |
|
$ |
8,880 |
|
|
|
|
|
|
|
|
|
Adjustments to Reconcile Net
(Loss) Income to Adjusted Net (Loss) Income (1): |
|
|
|
|
|
|
|
Duplicate rent (2) |
698 |
|
|
163 |
|
|
1,396 |
|
|
163 |
|
Integration and deal costs/third party transaction costs (3) |
506 |
|
|
32 |
|
|
940 |
|
|
210 |
|
Moving expenses (4) |
— |
|
|
— |
|
|
— |
|
|
61 |
|
Change in fair value of earn-out obligations (5) |
163 |
|
|
2,688 |
|
|
(6,649 |
) |
|
2,795 |
|
Third party debt modification fees (6) |
1,233 |
|
|
— |
|
|
1,233 |
|
|
— |
|
Loss on asset disposal (7) |
1 |
|
|
6 |
|
|
43 |
|
|
40 |
|
Tax effect of adjustments (8) |
(980 |
) |
|
(794 |
) |
|
1,078 |
|
|
(899 |
) |
|
|
|
|
|
|
|
|
Total adjustments |
1,621 |
|
|
2,095 |
|
|
(1,959 |
) |
|
2,370 |
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income |
$ |
(18,713 |
) |
|
$ |
9,841 |
|
|
$ |
(36,378 |
) |
|
$ |
11,250 |
|
|
|
|
|
|
|
|
|
Diluted adjusted earnings per
common share |
$ |
(0.52 |
) |
|
$ |
0.33 |
|
|
$ |
(1.11 |
) |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
Diluted shares outstanding -
adjusted |
35,759,193 |
|
|
29,848,285 |
|
|
32,672,876 |
|
|
29,844,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
- We are presenting adjusted net income and adjusted earnings per
common share (EPS), 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 EPS, 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 EPS 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 duplicate rent and occupancy costs for our Los
Angeles, CA facility.
- Represents transaction related costs incurred to complete and
integrate acquisitions, including due diligence, legal and
integration.
- Represents moving expenses for the consolidation and expansion
of our Ridgefield, CT and Toronto, Canada facilities.
- Represents the non-cash change in fair value of contingent
earn-out liabilities related to our acquisitions.
- Represents investment banking fees paid in connection with the
modification of our senior secured term loan.
- Represents the non-cash charge related to the disposal of
certain equipment.
- Represents the tax effect of items 2 through 7 above.
|
THE CHEFS’ WAREHOUSE, INC.RECONCILIATION
OF ADJUSTED EARNINGS PER COMMON SHARE(unaudited;
in thousands except share amounts and per share data) |
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 26, 2020 |
|
June 28, 2019 |
|
June 26, 2020 |
|
June 28, 2019 |
Numerator: |
|
|
|
|
|
|
|
Adjusted net (loss) income |
$ |
(18,713 |
) |
|
$ |
9,841 |
|
|
$ |
(36,378 |
) |
|
$ |
11,250 |
|
Denominator: |
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
35,759,193 |
|
|
29,527,167 |
|
|
32,672,876 |
|
|
29,492,138 |
|
Dilutive effect of unvested
common shares |
— |
|
|
321,118 |
|
|
— |
|
|
352,476 |
|
Weighted average diluted
common shares outstanding |
35,759,193 |
|
|
29,848,285 |
|
|
32,672,876 |
|
|
29,844,614 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share: |
|
|
|
|
|
|
|
Diluted |
$ |
(0.52 |
) |
|
$ |
0.33 |
|
|
$ |
(1.11 |
) |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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