Sysco Corporation (NYSE:SYY) Q2 2019 Earnings Conference Call Transcript

Feb 04, 2019 • 10:00 am ET

Previous

Sysco Corporation (NYSE:SYY) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good morning, and welcome to Sysco's Second Quarter Fiscal 2019 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 Neil Russell, Vice President of Investor Relations, Communications, and Treasurer. You may begin, sir.

Executive
Neil A. Russell

Thanks, Natalia, and good morning, everyone. Welcome to Sysco's Second Quarter Fiscal 2019 Earnings Call. Joining me in Houston today are Tom Bene, our Chairman, President and Chief Executive Officer; and Joel Grade, 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 within the meaning of the Private Securities Litigation Reform Act and actual results could differ in a material manner. 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 30, 2018, 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's 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 corresponding GAAP measures are included at the end of the presentation slides and can also be found in the Investors section of our website.

To ensure that we have sufficient time to answer all question, 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 Chairman, President and Chief Executive Officer, Tom Bene.

Executive
Thomas L. Bene

Good morning, everyone, and thank you, as always, for joining us. I would like to start this morning with some key themes that drove our results for the quarter, along with some comments on the current macro environment that we're operating in, followed by a discussion of recent organizational changes, then continuing with our US Foodservice Operations business results and concluding with a discussion of our international and other business segments. Joel will then discuss the financial results in more detail.

For the second quarter, we saw improved year-over-year top line results and are continuing to execute on our strategic priorities designed to improve our overall performance. Our focus for the quarter was led by our efforts to enrich the customer's experience of doing business with Sysco and to consistently provide excellent service to help our customers be successful. We remain committed to achieving our three-year planned financial objectives, although the manner in which we achieve them may look slightly different than what we originally outlined. Joel will discuss this further in just a few moments.

Our results for the second quarter include a sales increase of 2.5% to $14.8 billion, gross