The Chefs' Warehouse(CHEF) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 increased by 8.7% to $1,033.6 million, up from $950.5 million in Q4 2023[4] - Gross profit rose by 9.8% to $251.0 million, with gross profit margins increasing by approximately 23 basis points to 24.3%[5] - GAAP net income for Q4 2024 was $23.9 million, or $0.55 per diluted share, compared to $16.0 million, or $0.38 per diluted share in Q4 2023[10] - Adjusted EBITDA for Q4 2024 was $68.2 million, an increase from $59.0 million in Q4 2023[10] - Operating income for Q4 2024 was $46.5 million, representing an increase from $38.2 million in Q4 2023, with operating income as a percentage of net sales at 4.5%[9] - Net income for the fifty-two weeks ended December 27, 2024, was $55,479, up 60.5% from $34,590 in 2023[21] - Basic net income per share increased to $1.46 for the fifty-two weeks ended December 27, 2024, compared to $0.92 in 2023, reflecting a 58.7% growth[21] - Net income for the thirteen weeks ended December 27, 2024, was $23,926,000, an increase of 49.5% compared to $16,000,000 for the same period in 2023[30] - Adjusted net income for the same period was $23,905,000, up 18.0% from $20,186,000 year-over-year[30] - Diluted adjusted net income per common share increased to $0.55, a rise of 17.0% from $0.47 in the prior year[30] Guidance and Projections - The company provided fiscal 2025 guidance with net sales expected in the range of $3.94 billion to $4.04 billion[14] - The company provided adjusted EBITDA guidance for fiscal 2025, estimating a range between $233,000,000 and $246,000,000[31] - The low-end guidance for net income in fiscal 2025 is set at $68,000,000, while the high-end is $72,000,000[31] Expenses and Liabilities - Selling, general and administrative expenses increased by approximately 8.9% to $206.8 million, maintaining a ratio of 20.0% of net sales[6] - Total liabilities increased to $1,321,045 as of December 27, 2024, from $1,250,634 in 2023, an increase of 5.6%[23] - The company reported a provision for allowance for credit losses of $11,982 for the fifty-two weeks ended December 27, 2024, compared to $8,078 in 2023, representing a 48.5% increase[25] Cash Flow and Assets - Total current assets rose to $868,043 as of December 27, 2024, from $730,943 in 2023, marking an increase of 18.8%[23] - Cash and cash equivalents increased significantly to $114,655 as of December 27, 2024, compared to $49,878 in 2023, a growth of 130%[23] - Net cash provided by operating activities for the fifty-two weeks ended December 27, 2024, was $153,061, compared to $61,639 in 2023, indicating a substantial increase of 147%[25] Adjustments and Other Income - Other operating income for Q4 2024 was $2.3 million, a significant improvement from an expense of $0.5 million in Q4 2023[7] - Total adjustments to reconcile net income to adjusted net income amounted to $17,791,000 for the fifty-two weeks ended December 27, 2024[30] - Stock compensation adjustments for fiscal 2025 are projected between $17,500,000 and $18,500,000[31] - Duplicate rent expenses are expected to range from $1,500,000 to $2,500,000 in fiscal 2025[31] - Moving expenses for fiscal 2025 are estimated between $500,000 and $1,000,000[31] Organic Growth - Organic case count in the specialty category grew by approximately 6.1%, with unique customers and placements increasing by 4.5% and 12.3% respectively[4]