USFD - US Foods tops EBIDTA expectations on solid case volume growth

US Foods Holding Corp. ( NYSE: USFD ) edged higher in premarket trading on Thursday after the food supplier posted Q4 results very close to the consensus expectations.

Revenue increased 11.3% to $8.5B during the quarter.

Total case volume increased 2.6% during the quarter with gains seen across segments. Independent restaurant case volume was up 5.8% and hospitality volume was 19.2% higher. Healthcare volume rose 5.6%, while chain volume was down 5.8%.

Gross profit increased 17.1% to $1.5B as a result of optimized pricing, increased freight income from improved inbound logistics, cost of goods sold optimization and food cost inflation in multiple product categories. Adjusted EBITDA rose 33.6% to $350M vs. $333M consensus and the adjusted EBITDA margin rate was 4.1% vs. 3.4% a year ago.

On the balance sheet, net debt at the end of the quarter was $4.6B vs. $5.8B a year ago. The ratio of net debt to adjusted EBITDA was 3.5X vs. 4.6X a year ago.

Shares of US Foods ( USFD ) gained 0.14% in premarket trading.

The Seeking Alpha Quant Rating on USFD is flashing Buy.

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