Performance Food Group Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended June 30, 2018; Provides Earnings Guidance for the Year 2019
August 15, 2018 at 04:30 pm IST
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Performance Food Group Company reported unaudited consolidated earnings results for the fourth quarter and year ended June 30, 2018. For the quarter, the company reported net sales of $4,594.7 million against $4,428.9 million a year ago. Operating profit was $93.8 million against $81.4 million a year ago. Income before taxes was $78.5 million against $67.1 million a year ago. Net income was $64.4 million or $0.61 per diluted share against $40.4 million or $0.39 per diluted share a year ago. EBITDA was $128.3 million against $115.0 million a year ago. Adjusted EBITDA (Non-GAAP) was $135.4 million against $131.5 million a year ago. Adjusted diluted earnings per share (non-GAAP) were $0.53 against $0.48 a year ago. The increase in Net Sales were primarily attributable to growth in Vistar, most notably in the theater and retail channels, case growth in Performance Foodservice (PFS), specifically in the independent restaurant channel, and recent acquisitions. The increase in Net Sales were also attributable to an increase in selling price per case as a result of inflation and mix. Net income grew 59.4%, the growth was primarily a result of an increase in operating profit and a $12.6 million decrease in income tax expense, partially offset by interest and other expenses.
For the year, the company reported net sales of $17,619.9 million against $16,761.8 million a year ago. Operating profit was $253.5 million against $211.0 million a year ago. Income before taxes was $193.6 million against $157.7 million a year ago. Net income was $198.7 million or $1.90 per diluted share against $96.3 million or $0.93 per diluted share a year ago. Net cash provided by operating activities was $367.0 million against $201.7 million a year ago. Purchases of property, plant and equipment was $140.1 million against $140.2 million a year ago. EBITDA was $384.1 million against $338.7 million a year ago. Adjusted EBITDA (Non-GAAP) was $426.7 million against $390.7 million a year ago. Adjusted diluted earnings per share (Non-GAAP) were $1.54 against $1.24 a year ago. Free cash flow (Non-GAAP) was $226.9 million against $61.5 million a year ago. The increase in Net Sales were primarily attributable to sales growth in Vistar, particularly in the theater and retail channels, case growth in PFS, specifically in the independent channel, and recent acquisitions. The improvement in cash flow from operating activities was largely driven by higher operating income, lower taxes paid and improvements in working capital. The company invested $140.1 million in capital expenditures, in line with capital spending versus prior year.
For fiscal 2019, the company expects adjusted EBITDA growth to be in a range of 7% to 10% over its fiscal 2018 adjusted EBITDA of $426.7 million. The company expects that the 7% to 10% adjusted EBITDA growth for fiscal 2019 will reflect first half growth in the low-to-mid single-digit range. Second half adjusted EBITDA growth is expected to be in the high single- and low double-digit range. Fiscal 2019 first-half growth is expected to reflect strategic investments in sales, warehouse and delivery associates. The company expects fiscal 2019 adjusted diluted EPS to grow in a range of 10% to 16% to $1.72 to $1.82 over its fiscal 2018 adjusted diluted EPS of $1.54. This outlook is based on the following annual assumptions: Organic case growth in a range of 3% to 5%; interest expense in the range of approximately $60 million to $70 million; an effective tax rate on operations of approximately 27%; and capital expenditures between $170 million and $190 million, with depreciation and amortization between $145 million to $155 million. The fiscal 2019 capital expenditures estimate is higher than fiscal 2018 because of its ongoing investment to drive growth and the timing of certain projects.
Performance Food Group Company is a food and foodservice distribution company. The Company operates through three segments: Foodservice, Vistar, and Convenience. The Foodservice segment markets and distributes food and food-related products to independent restaurants, chain restaurants, and other institutional food-away-from-home locations. The Vistar segment specializes in distributing candy, snacks, beverages, and other items nationally to vending, office coffee service, theater, retail, hospitality, and other channels. The Convenience segment distributes candy, snacks, beverages, cigarettes, other tobacco products, food and foodservice related products, and other items to convenience stores across North America. The Company, through its subsidiaries, markets and delivers food and related products to over 300,000 customer locations including independent and chain restaurants; businesses, schools and healthcare facilities; vending and office coffee service distributors; and others.
Performance Food Group Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended June 30, 2018; Provides Earnings Guidance for the Year 2019