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Performance Food Group Reports Solid Case Growth In Q4 And FY17 Vistars Net Sales Increase 112

RICHMOND, VA -- Performance Food Group Co. ("PFG") (NYSE: PFGC) today announced its fourth-quarter and full-year fiscal 2017 business results. "We generated strong fourth-quarter results and ended the year with solid adjusted EBITDA growth," said PFG president and chief executive George Holm. "Our robust and consistent case growth, strong topline growth, combined with increased gross profit per case, led to profitability at the high end of our expectations for fiscal 2017. Our strategic investments in fi...

August 16, 2017 | Nick Montano

RICHMOND, VA -- Performance Food Group Co. ("PFG") (NYSE: PFGC) today announced its fourth-quarter and full-year fiscal 2017 business results. "We generated strong fourth-quarter results and ended the year with solid adjusted EBITDA growth," said PFG president and chief executive George Holm. "Our robust and consistent case growth, strong topline growth, combined with increased gross profit per case, led to profitability at the high end of our expectations for fiscal 2017. Our strategic investments in fiscal 2017 will provide us with additional growth in fiscal 2018 and beyond."

PFG is the parent company of Vistar, the vending industry's largest product distributor, Performance Brands and Performance Foodservice. PFG said its companywide case volume decreased 2.4% for the fourth quarter of fiscal 2017, compared with the prior year period, with underlying organic total case volume down 4.1%. However, excluding the extra week in the prior year, case volume would have increased approximately 5.1%, with underlying organic total case volume growth of 3.3%. Total case growth was driven by an increase in independent cases, strong growth in Performance Brands, and broad-based growth in Vistar's sales channels. Excluding the extra week in the prior year period, the Performance Foodservice segment's case growth to independent customers rose 6.6%.

Vistar

For the fourth quarter of fiscal 2017, net sales for Vistar increased 2.2% to $773.7 million and for fiscal 2017 net sales grew 11.2% to $3 billion, compared with the prior year periods. Excluding the extra week in the prior year, net sales would have increased 10.1% for the fourth quarter and 13.5% for fiscal 2017. This increase was driven by case sales growth in the segment's retail, theater, vending and hospitality channels, and by recent acquisitions.

Fourth-quarter EBITDA for Vistar increased 20.1% versus the prior year and 6.9% in fiscal 2017, to $35.2 million and $120.8 million, respectively. Gross profit dollar growth of 11% for fiscal 2017 compared to the prior year period, was fueled by an increase in the number of cases sold and by acquisitions. Operating expense dollar growth of 12.7% for fiscal 2017 resulted from investments associated with dollar store channel geography expansion, additional expense related to recent acquisitions, and investments associated with the opening of an automated retail facility.

Fourth-Quarter Fiscal 2017 Highlights

Net sales increased 1.3% to $4.4 billion; up 9.1% after adjusting for the extra week.

Gross profit increased 2.4% to $574.9 million; up 10.3% after adjusting for the extra week.

Net income increased 38.4% to $40.4 million, up 49.1% after adjusting for the extra week. 

Adjusted EBITDA increased 14.6% to $131.5 million2; up 23.5% after adjusting for the extra week.

Diluted earnings per share (EPS) increased 34.5% to $0.39; up 44.4% after adjusting for the extra week.

Adjusted diluted EPS increased 26.3% to $0.482; up 37.1% after adjusting for the extra week.

Full-Year Fiscal 2017 Highlights

Net sales increased 4.1% to $16.8 billion; up 6.1% after adjusting for the extra week.

Gross profit increased 5.7% to $2.1 billion; up 7.9% after adjusting for the extra week.

Net income increased 41% to $96.3 million; up 45.5% after adjusting for the extra week.

Adjusted EBITDA increased 6.6% to $390.7 million2; up 9.0% after adjusting for the extra week.

Diluted EPS increased 32.9% to $0.93; up 38.8% after adjusting for the extra week.

Adjusted diluted EPS increased 24.0% to $1.242; up 27.8% after adjusting for the extra week.

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