The Chefs' Warehouse Inc 2024年度报告

Dear Stockholders, During 2024, we made significant progress towards achieving our medium and long-term strategic and financial goals. Our total revenuefor fiscal 2024 increased approximately 11% to approximately $3.8 billion from approximately $3.4 billion in fiscal 2023 and we reportedapproximately $219 million of adjusted EBITDAfor fiscal year 2024. During 2024, we continued to invest in distribution capacityexpansion, including the completion of our new center-of-the-plate processing and distribution facility in Richmond, California. Weconsolidated four existing processing plants into the new facility by year-end 2024. In addition, we completed the expansion of ourSpecialty distribution center located in Dubai, UAE which includes a state-of-the-art culinary test kitchen and training center.1 During 2024, we continued to strengthen the balance sheet, reaching our 2025 year-end target for net debt leverage ratioof 2.5 a year inadvance. In addition, we generated approximately $104 million of free cash flowand repurchased approximately $17 million commonshares under our $100 million approved share repurchase program. For 2025 and beyond, our teams are focused on continuing progressmade in 2024 in areas such as our Digital Platform development and enhancement, technology and process improvements to support ourSales, Operations, Procurement and Pricing teams as we strive to deliver continued industry leading organic growth.11 As we grow, we will continue to enhance our business model as a family of Brands and Companies – representing and partnering withartisan food producers globally and remaining laser focused on continuing to execute our unmatched hybrid sell and service model. As wecontinue to grow domestically and internationally, we expect Chefs’ Warehouse to remain rooted in its DNA as the leading Specialty FoodMarketer and Distributor to the up-scale casual and higher-end dining establishments in the markets we serve. Christopher PappasChairman & Chief Executive Officer (Unaudited, in millions)Net IncomeInterest ExpenseDepreciation and AmortizationProvision for Income TaxesEBITDA(1)Adjustments:Stock Compensation (2)Duplicate Rent (3)Other Operating Expenses (4)Moving Expenses (5)Adjusted EBITDA (1) (1) We are presenting EBITDA and Adjusted EBITDA, which are not measurements determined in accordance with the U.S. generallyaccepted accounting principles ("GAAP"), because we believe these measures provide additional metrics to evaluate our operations andresults and which we believe, when considered with both our GAAP results and the reconciliation to net income, provide a more completeunderstanding of our business than could be obtained absent this disclosure. We use EBITDA and Adjusted EBITDA, together withfinancial measures prepared in accordance with GAAP, such as revenue and cash flows from operations, to assess our historical andprospective operating performance and to enhance our understanding of our core operating performance. The use of EBITDA andAdjusted EBITDA as performance measures permits a comparative assessment of our operating performance relative to our performancebased upon GAAP results while isolating the effects of some items that vary from period to period without any correlation to coreoperating performance or that vary widely among similar companies.(2) Represents non-cash stock compensation expense associated with awards of restricted shares of our common stock and stock options to our key employees and our independent directors.(3) Represents rent and occupancy costs expected to be incurred in connection with our facility consolidations while we are unable to use those facilities.(4) Represents non-cash changes in the fair value of contingent earn-out liabilities related to our acquisitions, non-cash charges related to asset disposals, asset impairments, including intangible asset impairment charges, certain third-party deal costs incurred in connectionwith our acquisitions or financing arrangements and certain other costs. (5) Represents moving expenses for the consolidation and expansion of several of our distribution facilities. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited, in millions)Net Cash Provided by Operating ActivitiesCapital ExpendituresFree Cash Flow (1) (1) We are presenting free cash flow, which is not a measurement determined in accordance with the U.S. generally accepted accountingprinciples ("GAAP"), because we believe this measure provides an additional metric to evaluate our operations and results and which webelieve, when considered with both our GAAP results and the reconciliation to net cash provided by operating activities, provides a morecomplete understanding of our business than could be obtained absent this disclosure. We use free cash flow, together with financialmeasures prepared in accordance with GAAP, to assess our ability to repay maturing debt or fund other uses of capital. RECONCILIATION