The Chefs' Warehouse(CHEF) - 2024 Q3 - Quarterly Report

Financial Performance - Net sales for the thirteen weeks ended September 27, 2024, were $931.5 million, a 5.6$881.8 million in the prior year[78]. - Gross profit for the same period was $224.7 million, reflecting an 8.2$207.7 million, with a gross profit margin of 24.1%[79]. - For the thirty-nine weeks ended September 27, 2024, net sales reached $2.76 billion, an 11.2$2.48 billion, with organic growth contributing $175.8 million[84]. - Gross profit for the thirty-nine weeks was$663.2 million, a 13.2% increase from $585.9 million, with a gross profit margin of 24.0$192.9 million, representing 20.7% of net sales, up from 20.4%[80]. - Interest expense for the thirteen weeks ended September 27, 2024, was $11.7 million, a 3.2$11.4 million[82]. - The provision for income tax expense for the thirty-nine weeks was $13.5 million, a 25.1$10.8 million, with an effective tax rate of 30.0%[90]. Cash Flow and Investments - Net cash provided by operating activities was $80.1 million for the thirty-nine weeks ended September 27, 2024, significantly up from$20.0 million for the same period in the previous year, driven by sales growth and lower inventory purchases[98]. - Net cash used in investing activities totaled $41.4 million, primarily due to capital expenditures of$41.1 million during the same period[99]. - Net cash used in financing activities was $37.8 million, which included$18.5 million in debt payments and $10.0 million for stock repurchases[100]. Debt and Capital Management - The company made voluntary principal prepayments of$12.0 million towards its senior secured term loan during the thirty-nine weeks ended September 27, 2024[93]. - The company made a scheduled principal payment of $5.0 million towards the unsecured note related to the GreenLeaf acquisition during the thirty-nine weeks ended September 27, 2024[94]. - As of September 27, 2024, the company had aggregate indebtedness of$369.6 million, with a potential after-tax earnings decrease of approximately $2.6 million per annum for a 100 basis point increase in market interest rates[103]. Shareholder Returns - A two-year share repurchase program was announced in November 2023, with a target of up to$100.0 million, and 264,076 shares were repurchased at an average price of $37.86 per share, leaving$90.0 million remaining in authorization as of September 27, 2024[95]. Acquisitions - The company acquired Oakville Produce Partners for $88.2 million and Hardie's Fresh Foods for approximately$41.4 million in 2023[74][75]. Operational Capacity - The company expects capital expenditures for fiscal 2024 to be approximately $45.0 million to$50.0 million, indicating a focus on maintaining operational capacity[97]. - Cash and cash equivalents increased to $50.7 million as of September 27, 2024, compared to$49.9 million as of December 29, 2023, while working capital, excluding cash, rose to $312.5 million from$295.3 million[97]. Customer Base - The company serves over 44,000 core customer locations, primarily independent restaurants and fine dining establishments[73].