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 24, 2022.
Financial highlights for the second quarter of
2022:
- Net sales increased 53.2% to $648.1
million for the second quarter of 2022 from $423.0 million for the
second quarter of 2021.
- GAAP net income was $16.9 million,
or $0.42 per diluted share, for the second quarter of 2022 compared
to $1.1 million, or $0.03 per diluted share, in the second quarter
of 2021.
- Adjusted net income per share1 was
$0.51 for the second quarter of 2022 compared to $0.04 for the
second quarter of 2021.
- Adjusted EBITDA1 was $45.3 million
for the second quarter of 2022 compared to of $17.2 million for the
second quarter of 2021.
“Late first quarter business strength continued into the second
quarter as the combination of strong consumer demand, new customer
openings and increased dining capacity led to consistent growth in
revenue trends as we entered the late spring and summer season.
Despite sequential deflation in certain center of the plate
categories, overall pricing remained firm and incremental gains in
volume contributed to sales growth during the quarter," said Chris
Pappas, Chairman and Chief Executive Officer of the Company.
“Although not back to pre-pandemic levels, moderate improvement in
hospitality and event related business was evident as the quarter
progressed.”
Second Quarter Fiscal 2022 Results
Net sales for the quarter ended June 24,
2022 increased 53.2% to $648.1 million from $423.0 million for the
quarter ended June 25, 2021. Organic sales
increased $152.3 million, or 36.0% versus the prior
year quarter. Sales growth of $72.9 million,
or 17.2%, resulted from acquisitions. Organic case count
increased approximately 34.8% in the Company’s specialty category
with unique customers and placements increases
at 35.9% and 54.6%, respectively, compared to the
prior year quarter. Organic pounds sold in the Company’s
center-of-the-plate category increased approximately
14.2% compared to the prior year quarter. Estimated inflation
was 16.4% in the Company’s specialty categories and 10.9%
in the center-of-the-plate categories compared to the prior year
quarter.
Gross profit increased approximately 62.7% to $156.0 million for
the second quarter of 2022 from $95.9 million for the second
quarter of 2021. Gross profit margin increased approximately 140
basis points to 24.1% from 22.7%. Gross margin in the Company’s
specialty category decreased 70 basis points and gross margin
increased 230 basis points in the Company’s center-of-the-plate
category compared to the prior year quarter.
Selling, general and administrative expenses
increased by approximately 37.8% to $124.5 million for the second
quarter of 2022 from $90.4 million for the second quarter of 2021.
The increase was primarily due to higher costs associated with
compensation and benefits to support sales growth for the quarter
ended June 24, 2022. As a percentage of net sales, operating
expenses were 19.2% in the second quarter of 2022 compared to 21.4%
in the second quarter of 2021.
1EBITDA, Adjusted EBITDA, adjusted net income
(loss) and adjusted net income (loss) per share are non-GAAP
measures. Please see the schedules accompanying this earnings
release for a reconciliation of EBITDA, Adjusted EBITDA, and
adjusted net income (loss) to these measures’ most directly
comparable GAAP measure.
Other operating expense increased by
approximately $3.0 million primarily due to non-cash charges of
$3.3 million for changes in the fair value of our contingent
earn-out liabilities compared to non-cash credits of $0.1 million
in the prior year period. The prior year period also includes a
$0.6 million impairment of trademarks as a result of a shift in
brand strategy to leverage our Allen Brothers brand in our New
England region during the second quarter of fiscal 2021.
Operating income for the second quarter of 2022
was $27.6 million compared to $4.7 million for the second quarter
of 2021. The increase in operating income was driven primarily by
higher gross profit, partially offset by higher selling, general
and administrative expenses, as discussed above. As a percentage of
net sales, operating income was 4.3% in the second quarter of 2022
as compared to operating income of 1.1% in the second quarter of
2021.
Total interest expense increased to $4.5 million
for the second quarter of 2022 compared to $4.4 million for the
second quarter of 2021.
Net income for the second quarter of 2022 was
$16.9 million, or $0.42 per diluted share, compared to net income
of $1.1 million, or $0.03 per diluted share, for the second quarter
of 2021.
Adjusted EBITDA1 was $45.3 million for the
second quarter of 2022 compared to $17.2 million for the second
quarter of 2021. For the second quarter of 2022, adjusted net
income1 was $20.9 million, or $0.51 per diluted share compared to
adjusted net income of $1.5 million, or $0.04 per diluted share for
the second quarter of 2021.
Full Year 2022 Guidance
Based on current trends in the business, we are updating and
raising our full year financial guidance as follows:
- Net Sales for the full year of 2022
will be in the range of $2.375 billion to $2.475 billion;
- Gross Profit to be between $553.0
million and $576.0 million and
- Adjusted EBITDA to be between
$135.0 million and $145.0 million
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 2022 Earnings Conference
Call
The Company will host a conference call to
discuss second quarter 2022 financial results today at 8:30 a.m.
EDT. Hosting the call will be Chris Pappas, chairman and chief
executive officer, and Jim Leddy, chief financial officer. The
conference call will be webcast live from the Company’s investor
relations website at http://investors.chefswarehouse.com. An online
archive of the webcast will be available on the Company’s investor
relations website.
Forward-Looking Statements
Statements in this press release regarding the
Company’s business that are not historical facts are
“forward-looking statements” that involve risks and uncertainties
and are based on current expectations and management estimates;
actual results may differ materially. The risks and uncertainties
which could impact these statements include, but are not limited to
the following: our 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 distribution of center-of-the-plate products, like
meat, poultry and seafood, involves 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 22, 2022 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 50,000 products to more than
35,000 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 24, 2022 |
|
June 25, 2021 |
|
June 24, 2022 |
|
June 25, 2021 |
Net sales |
$ |
648,104 |
|
$ |
422,968 |
|
|
$ |
1,160,207 |
|
$ |
703,185 |
|
Cost of sales |
|
492,100 |
|
|
327,094 |
|
|
|
886,690 |
|
|
548,364 |
|
Gross profit |
|
156,004 |
|
|
95,874 |
|
|
|
273,517 |
|
|
154,821 |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
124,487 |
|
|
90,358 |
|
|
|
234,573 |
|
|
170,603 |
|
Other operating expenses
(income), net |
|
3,883 |
|
|
857 |
|
|
|
5,046 |
|
|
(313 |
) |
Operating income (loss) |
|
27,634 |
|
|
4,659 |
|
|
|
33,898 |
|
|
(15,469 |
) |
|
|
|
|
|
|
|
|
Interest expense |
|
4,465 |
|
|
4,408 |
|
|
|
8,830 |
|
|
9,171 |
|
Income (loss) before income taxes |
|
23,169 |
|
|
251 |
|
|
|
25,068 |
|
|
(24,640 |
) |
|
|
|
|
|
|
|
|
Provision for income tax
expense (benefit) |
|
6,254 |
|
|
(847 |
) |
|
|
6,768 |
|
|
(7,817 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
16,915 |
|
$ |
1,098 |
|
|
$ |
18,300 |
|
$ |
(16,823 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
$ |
0.03 |
|
|
$ |
0.49 |
|
$ |
(0.46 |
) |
Diluted |
$ |
0.42 |
|
$ |
0.03 |
|
|
$ |
0.47 |
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
37,100,968 |
|
|
36,831,054 |
|
|
|
37,018,044 |
|
|
36,615,463 |
|
Diluted |
|
42,053,453 |
|
|
37,081,186 |
|
|
|
41,896,379 |
|
|
36,615,463 |
|
THE CHEFS’ WAREHOUSE,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETSAS OF JUNE 24, 2022 AND
DECEMBER 24, 2021 (in thousands)
|
June 24, 2022 |
|
December 24, 2021 |
|
(unaudited) |
|
|
Cash and cash equivalents |
$ |
51,806 |
|
|
$ |
115,155 |
|
Accounts receivable, net |
|
208,229 |
|
|
|
172,540 |
|
Inventories, net |
|
181,594 |
|
|
|
144,491 |
|
Prepaid expenses and other
current assets |
|
36,323 |
|
|
|
37,774 |
|
Total current assets |
|
477,952 |
|
|
|
469,960 |
|
|
|
|
|
Equipment, leasehold
improvements and software, net |
|
155,564 |
|
|
|
133,622 |
|
Operating lease right-of-use
assets |
|
138,591 |
|
|
|
130,701 |
|
Goodwill |
|
237,788 |
|
|
|
221,775 |
|
Intangible assets, net |
|
118,526 |
|
|
|
104,743 |
|
Deferred taxes, net |
|
4,376 |
|
|
|
9,380 |
|
Other assets |
|
4,081 |
|
|
|
3,614 |
|
Total assets |
$ |
1,136,878 |
|
|
$ |
1,073,795 |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
144,547 |
|
|
$ |
118,284 |
|
Accrued liabilities |
|
44,817 |
|
|
|
35,390 |
|
Short-term operating lease
liabilities |
|
17,430 |
|
|
|
15,882 |
|
Accrued compensation |
|
19,292 |
|
|
|
22,321 |
|
Current portion of long-term
debt |
|
4,843 |
|
|
|
5,141 |
|
Total current liabilities |
|
230,929 |
|
|
|
197,018 |
|
|
|
|
|
Long-term debt, net of current
portion |
|
392,980 |
|
|
|
394,160 |
|
Operating lease
liabilities |
|
134,714 |
|
|
|
127,296 |
|
Other liabilities |
|
4,568 |
|
|
|
5,110 |
|
Total liabilities |
|
763,191 |
|
|
|
723,584 |
|
|
|
|
|
Common stock |
|
383 |
|
|
|
380 |
|
Additional paid in
capital |
|
319,364 |
|
|
|
314,242 |
|
Cumulative foreign currency
translation adjustment |
|
(1,971 |
) |
|
|
(2,022 |
) |
Retained earnings |
|
55,911 |
|
|
|
37,611 |
|
Stockholders’ equity |
|
373,687 |
|
|
|
350,211 |
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
1,136,878 |
|
|
$ |
1,073,795 |
|
THE CHEFS’ WAREHOUSE,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS FOR THE TWENTY-SIX WEEKS ENDED JUNE 24,
2022 AND JUNE 25, 2021 (unaudited, in
thousands)
|
June 24, 2022 |
|
June 25, 2021 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
18,300 |
|
|
$ |
(16,823 |
) |
|
|
|
|
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: |
|
|
|
Depreciation and amortization |
|
11,755 |
|
|
|
10,660 |
|
Amortization of intangible assets |
|
6,819 |
|
|
|
6,643 |
|
Benefit for allowance for doubtful accounts |
|
1,817 |
|
|
|
488 |
|
Non-cash operating lease expense |
|
1,076 |
|
|
|
209 |
|
Deferred income tax provision (benefit) |
|
5,004 |
|
|
|
(7,755 |
) |
Amortization of deferred financing fees |
|
1,009 |
|
|
|
1,364 |
|
Stock compensation |
|
5,982 |
|
|
|
5,738 |
|
Change in fair value of contingent earn-out liabilities |
|
3,628 |
|
|
|
(1,420 |
) |
Intangible asset impairment |
|
— |
|
|
|
597 |
|
Loss on asset disposal |
|
17 |
|
|
|
224 |
|
Changes in assets and
liabilities, net of acquisitions: |
|
|
|
Accounts receivable |
|
(24,659 |
) |
|
|
(37,107 |
) |
Inventories |
|
(30,569 |
) |
|
|
(39,347 |
) |
Prepaid expenses and other current assets |
|
106 |
|
|
|
(101 |
) |
Accounts payable, accrued liabilities and accrued compensation |
|
19,733 |
|
|
|
52,541 |
|
Other assets and liabilities |
|
(237 |
) |
|
|
167 |
|
Net cash provided by
(used in) operating activities |
|
19,781 |
|
|
|
(23,922 |
) |
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
|
(23,490 |
) |
|
|
(9,574 |
) |
Cash paid for acquisitions |
|
(52,007 |
) |
|
|
(7,165 |
) |
Net cash used in
investing activities |
|
(75,497 |
) |
|
|
(16,739 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payment of debt, finance lease and other financing obligations |
|
(2,769 |
) |
|
|
(34,372 |
) |
Proceeds from debt issuance |
|
— |
|
|
|
51,750 |
|
Payment of deferred financing fees |
|
(406 |
) |
|
|
(1,450 |
) |
Surrender of shares to pay withholding taxes |
|
(2,558 |
) |
|
|
(1,487 |
) |
Cash paid for contingent earn-out liabilities |
|
(2,000 |
) |
|
|
(83 |
) |
Payments under asset based loan facility |
|
— |
|
|
|
(20,000 |
) |
Net cash used in
financing activities |
|
(7,733 |
) |
|
|
(5,642 |
) |
|
|
|
|
Effect of foreign currency
translation on cash and cash equivalents |
|
100 |
|
|
|
(58 |
) |
|
|
|
|
Net change in cash and
cash equivalents |
|
(63,349 |
) |
|
|
(46,361 |
) |
Cash and cash equivalents at
beginning of period |
|
115,155 |
|
|
|
193,281 |
|
Cash and cash
equivalents at end of period |
$ |
51,806 |
|
|
$ |
146,920 |
|
THE CHEFS’ WAREHOUSE,
INC.RECONCILIATION OF GAAP NET INCOME (LOSS) PER
COMMON SHARE(unaudited; in thousands except share
amounts and per share data)
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 24, 2022 |
|
June 25, 2021 |
|
June 24, 2022 |
|
June 25, 2021 |
Numerator: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
16,915 |
|
$ |
1,098 |
|
$ |
18,300 |
|
$ |
(16,823 |
) |
Add effect of dilutive
securities: |
|
|
|
|
|
|
|
Interest on convertible notes, net of tax |
|
719 |
|
|
— |
|
|
1,365 |
|
|
— |
|
Net income (loss) available to
common shareholders |
$ |
17,634 |
|
$ |
1,098 |
|
$ |
19,665 |
|
$ |
(16,823 |
) |
Denominator: |
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
|
37,100,968 |
|
|
36,831,054 |
|
|
37,018,044 |
|
|
36,615,463 |
|
Dilutive effect of unvested
common shares |
|
263,071 |
|
|
250,132 |
|
|
296,538 |
|
|
— |
|
Dilutive effect of options and
warrants |
|
73,381 |
|
|
— |
|
|
56,817 |
|
|
— |
|
Dilutive effect of convertible
notes |
|
4,616,033 |
|
|
— |
|
|
4,524,980 |
|
|
— |
|
Weighted average diluted
common shares outstanding |
|
42,053,453 |
|
|
37,081,186 |
|
|
41,896,379 |
|
|
36,615,463 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.46 |
|
$ |
0.03 |
|
$ |
0.49 |
|
$ |
(0.46 |
) |
Diluted |
$ |
0.42 |
|
$ |
0.03 |
|
$ |
0.47 |
|
$ |
(0.46 |
) |
THE CHEFS’ WAREHOUSE,
INC.RECONCILIATION OF EBITDA AND ADJUSTED EBITDA
TO NET INCOME (LOSS)(unaudited; in
thousands)
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 24, 2022 |
|
June 25, 2021 |
|
June 24, 2022 |
|
June 25, 2021 |
Net income (loss) |
$ |
16,915 |
|
$ |
1,098 |
|
|
$ |
18,300 |
|
$ |
(16,823 |
) |
Interest expense |
|
4,465 |
|
|
4,408 |
|
|
|
8,830 |
|
|
9,171 |
|
Depreciation |
|
5,866 |
|
|
5,553 |
|
|
|
11,755 |
|
|
10,660 |
|
Amortization |
|
3,463 |
|
|
3,104 |
|
|
|
6,819 |
|
|
6,643 |
|
Provision for income tax expense (benefit) |
|
6,254 |
|
|
(847 |
) |
|
|
6,768 |
|
|
(7,817 |
) |
EBITDA (1) |
|
36,963 |
|
|
13,316 |
|
|
|
52,472 |
|
|
1,834 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Stock compensation (2) |
|
2,939 |
|
|
3,280 |
|
|
|
5,982 |
|
|
5,738 |
|
Other operating expenses (income), net (3) |
|
3,883 |
|
|
857 |
|
|
|
5,046 |
|
|
(313 |
) |
Duplicate rent (4) |
|
1,550 |
|
|
694 |
|
|
|
3,286 |
|
|
1,389 |
|
Payroll tax credit (5) |
|
— |
|
|
(1,418 |
) |
|
|
— |
|
|
(1,418 |
) |
Moving expenses (6) |
|
— |
|
|
438 |
|
|
|
— |
|
|
438 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
$ |
45,335 |
|
$ |
17,167 |
|
|
$ |
66,786 |
|
$ |
7,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- We are presenting EBITDA and
Adjusted EBITDA, which are not measurements determined in
accordance with the U.S. generally accepted accounting principles,
or GAAP, because we believe these measures provide additional
metrics to evaluate our operations and which we believe, when
considered with both our GAAP results and the reconciliation to net
income, provide a more complete understanding of our business than
could be obtained absent this disclosure. We use EBITDA and
Adjusted EBITDA, together with financial measures prepared in
accordance with GAAP, such as revenue and cash flows from
operations, to assess our historical and prospective operating
performance and to enhance our understanding of our core operating
performance. The use of EBITDA and Adjusted EBITDA as performance
measures permits a comparative assessment of our operating
performance relative to our performance based upon GAAP results
while isolating the effects of some items that vary from period to
period without any correlation to core operating performance or
that vary widely among similar companies.
- Represents non-cash stock
compensation expense associated with awards of restricted shares of
our common stock and stock options to our key employees and our
independent directors.
- Represents non-cash changes in the
fair value of contingent earn-out liabilities related to our
acquisitions, non-cash charges related to asset disposals and
certain third-party deal costs incurred in connection with our
acquisitions or financing arrangements.
- Represents duplicate rent and
occupancy costs for our Los Angeles, CA, Richmond, CA, and Miami,
FL facilities.
- Represents a payroll tax credit
earned in accordance with the Employee Retention Credit under the
CARES Act.
- Represents moving expenses for the
consolidation of certain facilities in New England.
THE CHEFS’ WAREHOUSE,
INC.RECONCILIATION OF ADJUSTED NET INCOME (LOSS)
TO NET INCOME (LOSS)(unaudited; in thousands
except share amounts and per share data)
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 24, 2022 |
|
June 25, 2021 |
|
June 24, 2022 |
|
June 25, 2021 |
Net income (loss) |
$ |
16,915 |
|
|
$ |
1,098 |
|
|
$ |
18,300 |
|
|
$ |
(16,823 |
) |
|
|
|
|
|
|
|
|
Adjustments to reconcile net
income (loss) to adjusted net income (loss) (1): |
|
|
|
|
|
|
|
Other operating expenses (income), net (2) |
|
3,883 |
|
|
|
857 |
|
|
|
5,046 |
|
|
|
(313 |
) |
Duplicate rent (3) |
|
1,550 |
|
|
|
694 |
|
|
|
3,286 |
|
|
|
1,389 |
|
Moving expenses (4) |
|
— |
|
|
|
438 |
|
|
|
— |
|
|
|
438 |
|
Write-off of unamortized deferred financing fees (5) |
|
— |
|
|
|
— |
|
|
|
69 |
|
|
|
— |
|
Payroll tax credit (6) |
|
— |
|
|
|
(1,418 |
) |
|
|
— |
|
|
|
(1,418 |
) |
Tax effect of adjustments (7) |
|
(1,467 |
) |
|
|
(160 |
) |
|
|
(2,268 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
|
|
Total adjustments |
|
3,966 |
|
|
|
411 |
|
|
|
6,133 |
|
|
|
69 |
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) |
$ |
20,881 |
|
|
$ |
1,509 |
|
|
$ |
24,433 |
|
|
$ |
(16,754 |
) |
|
|
|
|
|
|
|
|
Diluted adjusted net income
(loss) per common share |
$ |
0.51 |
|
|
$ |
0.04 |
|
|
$ |
0.62 |
|
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
|
Diluted shares outstanding -
adjusted |
|
42,053,453 |
|
|
|
37,081,186 |
|
|
|
41,896,379 |
|
|
|
36,615,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- We are presenting adjusted net income and adjusted net income
per share, which are not measurements determined in accordance with
U.S. generally accepted accounting principles, or GAAP, because we
believe these measures provide additional metrics to evaluate our
operations and which we believe, when considered with both our GAAP
results and the reconciliation to net income available to common
stockholders, provide a more complete understanding of our business
than could be obtained absent this disclosure. We use adjusted net
income available to common stockholders and adjusted net income per
share, together with financial measures prepared in accordance with
GAAP, such as revenue and cash flows from operations, to assess our
historical and prospective operating performance and to enhance our
understanding of our core operating performance. The use of
adjusted net income available to common stockholders and adjusted
net income per share as performance measures permits a comparative
assessment of our operating performance relative to our performance
based upon our GAAP results while isolating the effects of some
items that vary from period to period without any correlation to
core operating performance or that vary widely among similar
companies.
- Represents non-cash changes in the fair value of contingent
earn-out liabilities related to our acquisitions, non-cash charges
related to asset disposals and certain third-party deal costs
incurred in connection with our acquisitions or financing
arrangements.
- Represents duplicate rent and occupancy costs for our Los
Angeles, CA, Richmond, CA, and Miami, FL facilities.
- Represents moving expenses for the consolidation of certain
facilities in New England.
- Represents interest expense related to write-off of certain
deferred financing fees in connection with the third amendment to
our asset-based loan facility which increased the aggregate
commitments from $150.0 million to $200.0 million.
- Represents a payroll tax credit earned in accordance with the
Employee Retention Credit under the CARES Act.
- Represents the tax effect of items 2 through 6 above.
THE CHEFS’ WAREHOUSE,
INC.RECONCILIATION OF ADJUSTED NET INCOME (LOSS)
PER SHARE(unaudited; in thousands except share
amounts and per share data)
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 24, 2022 |
|
June 25, 2021 |
|
June 24, 2022 |
|
June 25, 2021 |
Numerator: |
|
|
|
|
|
|
|
Adjusted net income (loss) |
$ |
20,881 |
|
$ |
1,509 |
|
$ |
24,433 |
|
$ |
(16,754 |
) |
Add effect of dilutive
securities: |
|
|
|
|
|
|
|
Interest on convertible notes, net of tax |
|
719 |
|
|
— |
|
|
1,365 |
|
|
— |
|
Adjusted net income (loss)
available to common shareholders |
$ |
21,600 |
|
$ |
1,509 |
|
$ |
25,798 |
|
$ |
(16,754 |
) |
Denominator: |
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
|
37,100,968 |
|
|
36,831,054 |
|
|
37,018,044 |
|
|
36,615,463 |
|
Dilutive effect of unvested
common shares |
|
263,071 |
|
|
250,132 |
|
|
296,538 |
|
|
— |
|
Dilutive effect of options and
warrants |
|
73,381 |
|
|
— |
|
|
56,817 |
|
|
— |
|
Dilutive effect of convertible
notes |
|
4,616,033 |
|
|
— |
|
|
4,524,980 |
|
|
— |
|
Weighted average diluted
common shares outstanding |
|
42,053,453 |
|
|
37,081,186 |
|
|
41,896,379 |
|
|
36,615,463 |
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per
share: |
|
|
|
|
|
|
|
Diluted |
$ |
0.51 |
|
$ |
0.04 |
|
$ |
0.62 |
|
$ |
(0.46 |
) |
Chefs Warehouse (NASDAQ:CHEF)
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