US Foods Holding Corp (NYSE:USFD) noticed its shares tumble Monday, on announced results for the third quarter of fiscal 2020.
Total case volume decreased 8.9% during the quarter; total organic case volume decreased 22.2%. Net sales decreased 10.5% to $5.8 billion
Gross profit decreased 15.7% to $974 million. Net loss available to common shareholders was $2 million. Adjusted EBITDA decreased 31.9% to $209 million. Diluted EPS loss was $0.01; Adjusted Diluted EPS was $0.15
Operating expenses were $896 million, a decrease of $72 million or 7.4% from the prior year.
The decrease was primarily due to actions put in place to reduce operating costs as a result of lower case volume, a $30-million reduction in the reserve for uncollectible accounts and a $17-million gain on the sale of excess property in Southern California, which were partially offset by operating expenses for the Food Group and Smart Foodservice acquisitions.
Operating expenses as a percent of Net sales were 15.3%.
Said CEO Pietro Satriano. “Our case volumes continue to recover and Adjusted Gross Profit Margin improved by 70 basis points over the prior quarter.
“This profitable growth, along with our prudent approach to cost management, enabled us to deliver Adjusted EBITDA of $209 million for the quarter, more than double what we delivered in the second quarter. I’m proud of the hard work of all our associates, who remain focused on helping our customers Make It during this challenging time.”
Shares dropped 50 cents, or 2.4%, to $20.40.