Sysco Corporation (NYSE:SYY) Q2 2015 Earnings Conference Call - Final Transcript

Feb 02, 2015 • 10:00 am ET

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Sysco Corporation (NYSE:SYY) Q2 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Please standby. Good morning. And welcome to Sysco Second Quarter Fiscal 2015 Earnings Conference Call. As a reminder, today's call is being recorded. We will begin today's call with opening remarks and introductions.

I would like to turn the call over to Shannon Mutschler, Vice President of Investor Relations. Please go ahead, ma'am.

Executive
Shannon Mutschler

Good morning, everyone. And welcome to Sysco's second quarter fiscal 2015 earnings call. Today you'll hear prepared remarks from Bill DeLaney, our President and Chief Executive Officer; and Chris Kreidler, our Chief Financial Officer. Before we begin, please note, that statements made during this presentation that state the company's or management's intentions, beliefs, expectations or predictions of the future are forward-looking statements and actual results could differ materially.

Additional information about factors that could cause results to differ from those in the forward-looking statements is contained in the company's SEC filings. This includes but is not limited to risk factors contained in our annual report on Form 10-K for the year ended June 28, 2014, subsequent SEC filings and in the news release issued earlier this morning. A copy of these materials can be found in the Investors section at sysco.com or via Sysco IR app.

Non-GAAP financial measures are included in our comments today and in our presentation slides. The reconciliation of these non-GAAP measures to the applicable GAAP measures are included at the end of the presentation and can be also found in the Investors section of our website. All comments about earnings per share refer to diluted earnings per share unless otherwise noted. In addition, all references to case volume include total Broadline and SYGMA combined. To ensure that we have sufficient time to answer all questions today we'd like to ask each participant to limit their time today to one question and one follow-up.

At this time, I'd like to turn the call over to our President and Chief Executive Officer, Bill DeLaney.

Executive
Bill DeLaney

Thank you, Shannon, and hello, everyone, and thank you all for joining us today. This morning, Sysco reported second quarter fiscal 2015 financial results. Sales increased nearly 8% to $12.1 billion and adjusted net earnings increased 6% to $245 million. Adjusted EPS increased 5% to $0.41 for the quarter. Our second quarter financial results were generally in line with our expectations, as we delivered another quarter of solid operating performance. Most important, our associates remained highly focused on providing excellent service to our customers in what remains an extremely competitive market environment.

We generated nearly 4% case volume growth during the quarter and effectively managed acute inflationary pressures in our meat and dairy categories. Specifically, case growth trends in our locally managed Broadline business were favorable in most of the geographic markets we serve. In addition, we generated solid case growth once again with our corporate managed customers in the restaurant and travel and leisure segments. Our performance during the quarter was due in part to the benefits we realized from our portfolio of business transformation initiatives, especially category management.

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