The Chefs' Warehouse, Inc. Reports First Quarter 2012 Financial Results
2 days 4 hours 34 minutes ago - GlobeNewswire via Comtex
The Chefs' Warehouse, Inc. (Nasdaq:CHEF), a premier distributor of specialty food products in the United States, today reported financial results for its first quarter ended March 30, 2012.
Financial highlights for the first quarter of 2012 compared to the first quarter of 2011:
-- Net sales increased 17.9% to $98.1 million for the first quarter of 2012
from $83.2 million for the first quarter of 2011.
-- Gross profit increased 18.2% to $26.0 million for the first quarter of
2012 from $22.0 million for the first quarter of 2011.
-- Earnings per diluted share available to common stockholders was $0.13
for the first quarter of 2012 compared to $0.06 per diluted share for
the first quarter of 2011.
-- Modified pro forma earnings per diluted share available to common
stockholders1, or EPS, increased 8% to $0.13 per diluted share for the
first quarter of 2012 from $0.12 per diluted share for the first quarter
of 2011.
-- Adjusted EBITDA1 increased 15.3% to $5.9 million for the first quarter
of 2012 from $5.1 million for the first quarter of 2011.
"We are pleased with our first quarter results which reflect continued momentum from the previous year," said Chris Pappas, chairman and chief executive officer of The Chefs' Warehouse, Inc. "Our strategy continues to be increasing penetration with existing customers, expanding our customer base within our existing markets and pursuing selective acquisitions. We were thrilled to announce our April 27th acquisition of Praml, in the Las Vegas market. Praml provides an array of unique products combined with the market expertise and strong customer relations that make this a fantastic opportunity to continue our growth strategy. We are also excited to have signed a new Bronx warehouse facility lease agreement, which will allow us to better serve our core New York City market and metro New York business."
First Quarter Fiscal 2012 Results
Net sales for the quarter ended March 30, 2012 increased approximately 17.9% to $98.1 million from $83.2 million for the quarter ended March 25, 2011. The increase in net sales was the result of increased case volume, as revenue per case declined quarter over quarter. Our increase in net sales attributable to acquisition activity was approximately $8.8 million, or 10.6%, with approximately $6.1 million, or 7.3%, of the increase attributable to organic growth. Our revenue growth was compressed by approximately a 173 basis point impact of net deflation and mix during the quarter. This was driven by substantial deflation as well as increased case volumes in our dairy category. This ultimately resulted in a compression of revenue of approximately $1.4 million quarter over quarter.
Gross profit increased approximately 18.2% to $26.0 million for the first quarter of 2012 from $22.0 million for the first quarter of 2011. Acquisition activity contributed approximately $2.3 million of the increase. Gross profit percentage increased by approximately ten basis points to 26.6% for the first quarter of 2012 from 26.5% for the first quarter of 2011.
Total operating expenses increased by approximately 23.7% to $21.0 million for the first quarter of 2012 from $17.0 million for the first quarter of 2011. Warehouse, distribution and selling costs increased by approximately $2.6 million and accounted for 15.3% of the quarter over quarter increase. Of the increase noted above, acquisition activity accounted for $1.4 million. General and administrative costs increased by approximately $1.4 million which is inclusive of $0.4 million of public company related costs and $0.3 million of noncash stock compensation charges.
Operating income for the quarter ended March 30, 2012 was $5.1 million, which was consistent with operating income achieved for the quarter ended March 25, 2011.
Net income available to common stockholders was $2.6 million, or $0.13 per diluted share, for the first quarter of 2012 compared to $1.0 million, or $0.06 per diluted share, for the first quarter of 2011, which is in line with the company's first quarter 2012 projections.
On a non-GAAP basis, modified pro forma net income available to common stockholders1 was $2.6 million and modified pro forma EPS was $0.13 for the first quarter of 2012 compared to modified pro forma net income available to common stockholders of $2.5 million and modified pro forma EPS of $0.12 for the first quarter of 2011.
1 Please see the Reconcilation of GAAP to Modified Pro Forma Net Income and the Reconciliation of EBITDA and Adjusted
EBITDA to Net Income at the end of this earnings release for a reconciliation of EBITDA, Adjusted EBITDA, modified
pro forma net income available to common stockholders and modified pro forma EPS to these measures' most directly
comparable GAAP measures.
Subsequent Events
Subsequent to the end of the first quarter of 2012, the Company announced a number of important developments, including the following:
-- the Company's acquisition of Las Vegas-based Praml International, Ltd.
for approximately $19.5 million in cash, which expands the Company's
operations in the exciting and growing Las Vegas, Nevada market;
-- the Company's plans to renovate and significantly expand its Bronx, New
York distribution facility and;
-- the Company's entry into a new senior secured credit facility consisting
of a $100 million revolving line of credit and a $40 million term loan.
"We believe our new expanded credit facility provides us with more flexibility to continue to pursue our acquisition and internal growth strategies," said Ken Clark, chief financial officer of The Chefs' Warehouse, Inc.
