RIDGEFIELD, Conn., Feb. 09, 2022 (GLOBE NEWSWIRE) — The Chefs’ Warehouse, Inc. (NASDAQ: CHEF), a premier distributor of specialty food products in the United States and Canada, today reported financial results for its fourth quarter ended December 24, 2021.
Financial highlights for the fourth quarter of 2021:
- Net sales increased 98.2% to $558.3 million for the fourth quarter of 2021 from $281.7 million for the fourth quarter of 2020.
- GAAP net income was $8.4 million, or $0.22 per diluted share, for the fourth quarter of 2021 compared to net loss of $37.1 million, or $(1.02) per diluted share, in the fourth quarter of 2020.
- Adjusted EPS1 was $0.26 for the fourth quarter of 2021 compared to $(0.52) for the fourth quarter of 2020.
- Adjusted EBITDA1 was $30.2 million for the fourth quarter of 2021 compared to negative adjusted EBITDA of $(10.5) million for the fourth quarter of 2020.
“Revenue trends were strong in the fourth quarter as we saw continued growth in consumer confidence in dining out across our markets,” said Chris Pappas, Chairman and Chief Executive Officer of the Company. “December sales and business activity grew steadily as holiday customer traffic drove sequential volume increases commensurate with pre-COVID periods, even with a reduction in larger corporate parties and events.”
Fourth Quarter Fiscal 2021 Results
Net sales for the quarter ended December 24, 2021 increased 98.2% to $558.3 million from $281.7 million for the quarter ended December 25, 2020. Organic sales increased $252.1 million, or 89.5% versus the prior year quarter. Sales growth of $24.4 million, or 8.7%, resulted from acquisitions. Organic case count increased approximately 67.5% in the Company’s specialty category with unique customers and placements increases at 35.0% and 55.5%, respectively, compared to the prior year quarter. Organic pounds sold in the Company’s center-of-the-plate category increased approximately 49.3% compared to the prior year quarter. Estimated inflation was 12.5% in the Company’s specialty categories and 29.2% in the center-of-the-plate categories compared to the prior year quarter.
Gross profit increased approximately 113.5% to $125.7 million for the fourth quarter of 2021 from $58.9 million for the fourth quarter of 2020. Gross profit margin increased approximately 161 basis points to 22.5% from 20.9%. Gross margins in the Company’s specialty category increased 637 basis points and gross margins decreased 291 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 31.7% to $109.2 million for the fourth quarter of 2021 from $82.9 million for the fourth quarter of 2020. These increases were primarily volume-based increases to support our sales growth for the quarter ended December 24, 2021. As a percentage of net sales, operating expenses were 19.6% in the fourth quarter of 2021 compared to 29.4% in the fourth quarter of 2020.
Other operating expense decreased by approximately $23.6 million primarily due to a $24.2 million impairment charge for Del Monte and Bassian trademarks in the prior year period.
Operating income for the fourth quarter of 2021 was $15.8 million compared to operating loss of $48.3 million for the fourth quarter of 2020. The increase in operating income was driven primarily by higher gross profit, partially offset by higher selling, general and administrative, as discussed above. As a percentage of net sales, operating income was 2.8% in the fourth quarter of 2021 as compared to operating loss of 17.1% in the fourth quarter of 2020.
Total interest expense decreased to $4.2 million for the fourth quarter of 2021 compared to $5.3 million for the fourth quarter of 2020. The decrease in interest expense is the result of lower effective interest rates charged on the Company’s outstanding debt.
Net income for the fourth quarter of 2021 was $8.4 million, or $0.22 per diluted share, compared to net loss of $37.1 million, or $(1.02) per diluted share, for the fourth quarter of 2020.
Adjusted EBITDA1 was $30.2 million for the fourth quarter of 2021 compared to negative adjusted EBITDA of $(10.5) million for the fourth quarter of 2020. For the fourth quarter of 2021, adjusted net income1 was $10.2 million, or $0.26 per diluted share compared to adjusted net loss of $19.0 million, or $(0.52) per diluted share for the fourth quarter of 2020.
Full Year 2022 Guidance
Based on current trends in the business, the Company is providing the following financial guidance for fiscal year 2022:
- Net sales between $2.1 billion and $2.2 billion
- Gross profit between $494 million and $517 million; and
- Adjusted EBITDA between $99 million and $111 million.
About The Chefs’ Warehouse
The Chefs’ Warehouse, Inc. (http://www.chefswarehouse.com
