U.S. Foods Holding Corp. net sales of $4.6 billion for the second quarter decreased 29.2% from the prior year's $6.4 billion, driven largely by the impact of COVID-19, according to an earnings report for the quarter ending June 27. Both case volume and net sales were negatively impacted by social distancing measures and required closures of non-essential businesses that occurred during the quarter as a result of COVID-19.

Total case volume decreased 28.0% from the prior year for the quarter, while total organic case volume decreased 40.2%. Independent restaurant case volume decreased 32.1%, while organic independent restaurant case volume decreased 42.1%.

Net loss available to common shareholders was $97 million, a decrease of $213 million compared to prior year.

Income loss per share was 44 cents compared to a 53 cent gain during last year's quarter, while diluted loss per share was also 44 cents compared to a 53 cent gain last year.

Gross profit of $671 million decreased $471 million, or 41.2%, for the quarter from the prior year, primarily as a result of the negative impact of COVID-19 on case volume, which also resulted in higher inventory write-offs and product donations, lower logistics income and changes to customer mix.

These were partially offset by contributions from the Food Group and Smart Foodservice acquisitions. The Food Group and Smart Foodservice acquisitions contributed net sales of $732 million, or 16.1%, for the quarter.

Adjusted gross profit was $730 million, a decrease of $426 million or 36.9% from the prior year, driven by the negative impact of COVID-19 on case volume, which also resulted in lower logistics income and changes to our customer mix. These were partially offset by contributions from the Food Group and Smart Foodservice acquisitions.

Adjusted gross profit as a percentage of net sales was 16.0%.

Adjusted EBITDA was $88 million, a decrease of $232 million or 72.5%, compared to the prior year.

"While COVID-19 continues to impact the foodservice industry and our business, we remain confident in the long-term outlook for both the industry and our company," Pietro Satriano, chairman and CEO, said in a prepared statement. "As the quarter progressed, we saw trends in volumes, margins and bottom line profitability improve, and we believe our scale, our differentiated platform and our strong balance sheet leave us well positioned to gain market share as the industry continues to recover."

Due to the continued uncertainty associated with COVID-19, the company withdrew its fiscal 2020 financial guidance on March 23, 2020 and is not providing financial guidance at this time.

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