Performance Food Group Company Reports Second-Quarter and First-Six Months Fiscal 2025 Results
Performance Food Group (PFGC) reported strong Q2 fiscal 2025 results with notable growth in several key metrics. Net sales increased 9.4% to $15.6 billion, driven by recent acquisitions including Cheney Brothers, increased case volume, and inflation effects. Total case volume rose 9.8%, with independent foodservice case volume up 19.8%.
Gross profit improved 14.4% to $1.8 billion, while Adjusted EBITDA increased 22.5% to $423.0 million. However, net income decreased 45.8% to $42.4 million, primarily due to higher interest expenses. The company has updated its fiscal 2025 guidance, now expecting net sales between $63-64 billion and Adjusted EBITDA between $1.725-1.8 billion.
The company's share repurchase program continues, with $177.0 million remaining available under its $300 million authorization. Operating cash flow was $379.0 million for the first six months of fiscal 2025.
Performance Food Group (PFGC) ha riportato risultati solidi nel secondo trimestre del 2025 fiscale, con una crescita notevole in diversi parametri chiave. Le vendite nette sono aumentate del 9,4% a 15,6 miliardi di dollari, sostenute da recenti acquisizioni, tra cui Cheney Brothers, da un aumento del volume delle casse e dagli effetti dell'inflazione. Il volume totale delle casse è aumentato del 9,8%, con un incremento del 19,8% nel volume delle casse dei servizi alimentari indipendenti.
Il profitto lordo è migliorato del 14,4% a 1,8 miliardi di dollari, mentre l'EBITDA rettificato è aumentato del 22,5% a 423 milioni di dollari. Tuttavia, l'utile netto è diminuito del 45,8% a 42,4 milioni di dollari, principalmente a causa di spese per interessi più elevate. L'azienda ha aggiornato le proprie previsioni per il 2025 fiscale, ora prevedendo vendite nette tra 63 e 64 miliardi di dollari e un EBITDA rettificato tra 1,725 e 1,8 miliardi di dollari.
Il programma di riacquisto di azioni dell'azienda continua, con 177 milioni di dollari ancora disponibili sotto l'autorizzazione di 300 milioni di dollari. Il flusso di cassa operativo è stato di 379 milioni di dollari per i primi sei mesi del 2025 fiscale.
Performance Food Group (PFGC) informó resultados sólidos en el segundo trimestre del año fiscal 2025, con un crecimiento notable en varias métricas clave. Las ventas netas aumentaron un 9.4% a 15.6 mil millones de dólares, impulsadas por adquisiciones recientes, incluyendo Cheney Brothers, un aumento en el volumen de cajas y los efectos de la inflación. El volumen total de cajas creció un 9.8%, siendo el volumen de cajas de servicios de alimentación independientes un aumento del 19.8%.
El beneficio bruto mejoró un 14.4% a 1.8 mil millones de dólares, mientras que el EBITDA ajustado aumentó un 22.5% a 423 millones de dólares. Sin embargo, el ingreso neto disminuyó un 45.8% a 42.4 millones de dólares, principalmente debido a mayores gastos por intereses. La compañía ha actualizado su guía para el año fiscal 2025, ahora prevé ventas netas entre 63 y 64 mil millones de dólares y EBITDA ajustado entre 1.725 y 1.8 mil millones de dólares.
El programa de recompra de acciones de la compañía continúa, con 177 millones de dólares aún disponibles bajo su autorización de 300 millones de dólares. El flujo de caja operativo fue de 379 millones de dólares durante los primeros seis meses del año fiscal 2025.
퍼포먼스 푸드 그룹 (PFGC)는 2025 회계연도 2분기에 강력한 실적을 보고하며 몇 가지 주요 지표에서 눈에 띄는 성장을 보였습니다. 순매출은 9.4% 증가하여 156억 달러에 달했으며, 이는 최근 인수한 Cheney Brothers와 케이스 물량 증가, 인플레이션 효과에 의해 주도되었습니다. 총 케이스 물량은 9.8% 증가했으며, 독립 foodservice 케이스 물량은 19.8% 증가했습니다.
총 이익은 14.4% 증가하여 18억 달러에 이르렀으며, 조정된 EBITDA는 22.5% 증가한 4억 2300만 달러로 집계되었습니다. 그러나 순이익은 45.8% 감소하여 4240만 달러에 그쳤으며, 주요 원인은 이자 비용 증가로 인한 것입니다. 회사는 2025 회계연도 전망을 업데이트하여 순매출을 630억-640억 달러, 조정된 EBITDA를 17억 2500만-18억 달러로 예상하고 있습니다.
회사의 자사주 매입 프로그램은 계속되며, 3억 달러의 승인 하에 남아 있는 금액은 1억 7700만 달러입니다. 운영 현금 흐름은 2025 회계연도 첫 6개월 동안 3억 7900만 달러였습니다.
Performance Food Group (PFGC) a annoncé de solides résultats pour le deuxième trimestre de l'exercice fiscal 2025, avec une croissance notable dans plusieurs indicateurs clés. Les ventes nettes ont augmenté de 9,4 % pour atteindre 15,6 milliards de dollars, soutenues par des acquisitions récentes, notamment Cheney Brothers, une augmentation du volume des cas et les effets de l'inflation. Le volume total des cas a augmenté de 9,8 %, avec un volume de cas dans le secteur de la restauration indépendant en hausse de 19,8 %.
Le bénéfice brut a augmenté de 14,4 % pour atteindre 1,8 milliard de dollars, tandis que l'EBITDA ajusté a crû de 22,5 % pour atteindre 423 millions de dollars. Cependant, le bénéfice net a diminué de 45,8 % pour s'établir à 42,4 millions de dollars, principalement en raison de dépenses d'intérêts plus élevées. L'entreprise a mis à jour ses prévisions pour l'exercice fiscal 2025, s'attendant maintenant à des ventes nettes comprises entre 63 et 64 milliards de dollars et un EBITDA ajusté entre 1,725 et 1,8 milliard de dollars.
Le programme de rachat d'actions de l'entreprise se poursuit, avec 177 millions de dollars toujours disponibles dans le cadre de son autorisation de 300 millions de dollars. Le flux de trésorerie opérationnel s'est élevé à 379 millions de dollars au cours des six premiers mois de l'exercice fiscal 2025.
Performance Food Group (PFGC) berichtete von starken Ergebnissen im zweiten Quartal des Geschäftsjahres 2025, mit bemerkenswertem Wachstum in mehreren Schlüsselkennzahlen. Der Nettoumsatz stieg um 9,4% auf 15,6 Milliarden Dollar, unterstützt durch jüngste Übernahmen, einschließlich Cheney Brothers, einem Anstieg des Kastenvolumens und inflationsbedingten Effekten. Das gesamte Kastenvolumen stieg um 9,8%, wobei das Kastenvolumen im unabhängigen Lebensmittelservice um 19,8% zunahm.
Der Bruttogewinn verbesserte sich um 14,4% auf 1,8 Milliarden Dollar, während das bereinigte EBITDA um 22,5% auf 423 Millionen Dollar anstieg. Der Nettogewinn sank jedoch um 45,8% auf 42,4 Millionen Dollar, hauptsächlich aufgrund höherer Zinsaufwendungen. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet nun einen Nettoumsatz zwischen 63 und 64 Milliarden Dollar sowie ein bereinigtes EBITDA zwischen 1,725 und 1,8 Milliarden Dollar.
Das Aktienrückkaufprogramm des Unternehmens läuft weiterhin, wobei noch 177 Millionen Dollar unter der Genehmigung von 300 Millionen Dollar verfügbar sind. Der operative Cashflow betrug für die ersten sechs Monate des Geschäftsjahres 2025 379 Millionen Dollar.
- Net sales increased 9.4% to $15.6 billion in Q2
- Gross profit grew 14.4% to $1.8 billion
- Adjusted EBITDA rose 22.5% to $423.0 million
- Total independent case volume increased 19.8%
- Company raised full-year net sales guidance to $63-64 billion
- Net income decreased 45.8% to $42.4 million
- Operating expenses increased 17.2%
- Interest expense increased by $38.8 million
- Operating cash flow decreased from $554.0M to $379.0M year-over-year
- Diluted EPS decreased 46.0% to $0.27
Insights
Performance Food Group delivered a compelling Q2 FY2025 performance marked by strategic growth and operational efficiency. The standout metric is the organic independent case volume growth of
The Foodservice segment emerges as the primary growth engine, with independent sales representing
While operating cash flow decreased to
The
Strong Independent Restaurant Case Volume, Net Sales and Cash Flow
Second-Quarter Fiscal 2025 Highlights
-
Total case volume increased
9.8% -
Total Independent Foodservice case volume increased
19.8% -
Organic Independent Foodservice case volume increased
5.0% -
Net sales increased
9.4% to$15.6 billion -
Gross profit improved
14.4% to$1.8 billion -
Net income decreased
45.8% to$42.4 million -
Adjusted EBITDA increased
22.5% to$423.0 million -
Diluted Earnings Per Share (“EPS”) decreased
46.0% to$0.27 -
Adjusted Diluted EPS increased
8.9% to$0.98
First-Six Months Fiscal 2025 Highlights
-
Total case volume increased
6.1% -
Total Independent Foodservice case volume increased
13.5% -
Organic Independent Foodservice case volume increased
4.6% -
Net sales increased
6.2% to$31.1 billion -
Gross profit improved
10.2% to$3.6 billion -
Net income decreased
24.4% to$150.4 million -
Adjusted EBITDA increased
14.5% to$834.9 million -
Diluted EPS decreased
24.4% to$0.96 -
Adjusted Diluted EPS increased
3.9% to$2.13 -
Operating Cash Flow of
$379.0 million -
Free cash flow of
$175.1 million
“Our solid business performance continued through the fiscal second quarter, resulting in strong sales and Adjusted EBITDA growth, exceeding the upper end of our guidance on both measures,” said George Holm, PFG’s Chairman & Chief Executive Officer. “Our organic business, along with recent acquisitions, contributed significantly to our exceptional case growth in Foodservice. All three of our business segments have maintained a solid foundation, consistently winning new business and driving growth opportunities. Our integration of José
1 |
This earnings release includes several metrics, including Adjusted EBITDA, Adjusted Diluted Earnings per Share, and Free Cash Flow, that are not calculated in accordance with Generally Accepted Accounting Principles in the |
Second-Quarter Fiscal 2025 Financial Summary
Total case volume increased
Net sales for the second quarter of fiscal 2025 grew
Gross profit for the second quarter of fiscal 2025 grew
Operating expenses rose
Net income for the second quarter of fiscal 2025 decreased
For the quarter, Adjusted EBITDA rose
Diluted EPS decreased
First-Six Months Fiscal 2025 Financial Summary
Total case volume increased
Net sales for the first six months of fiscal 2025 grew
Gross profit for the first six months of fiscal 2025 grew
Operating expenses rose
Net income for the first six months of fiscal 2025 decreased
For the first six months of fiscal 2025, Adjusted EBITDA rose
Diluted EPS decreased
Cash Flow and Capital Spending
In the first six months of 2025, PFG provided
In the first six months of fiscal 2025, PFG invested
Share Repurchase Program
During the three months ended December 28, 2024, the Company repurchased and subsequently retired less than 0.1 million shares of common stock, for a total of
Second-Quarter Fiscal 2025 Segment Results
Foodservice
Second-quarter fiscal 2025 net sales for Foodservice increased
Second-quarter fiscal 2025 Adjusted EBITDA for Foodservice increased
Vistar
For the second quarter of fiscal 2025, net sales for Vistar increased
Second-quarter fiscal 2025 Adjusted EBITDA for Vistar increased
Convenience
Second-quarter fiscal 2025 net sales for Convenience increased
Second-quarter fiscal 2025 Adjusted EBITDA for Convenience increased
Fiscal 2025 Outlook
For the third quarter of fiscal 2025, PFG expects net sales to be in a range of
For the full fiscal year 2025, PFG now expects net sales to be in a range of approximately
As previously disclosed, PFG’s outlook for fiscal year 2025 includes expected business results for Cheney Brothers as of the close of the transaction.
PFG’s Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, losses on early extinguishments of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. PFG’s management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. Please see the “Forward-Looking Statements” section of this release for a discussion of certain risks to PFG’s outlook.
Conference Call
As previously announced, a conference call with the investment community and news media will be webcast today, February 5, 2025, at 9:00 a.m. Eastern Time. Access to the webcast is available at www.pfgc.com.
About Performance Food Group Company
Performance Food Group is an industry leader and one of the largest food and foodservice distribution companies in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and integration of our acquisition of Cheney Bros., Inc. (the “Cheney Brothers Acquisition”) and other nonhistorical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words.
Such forward-looking statements are subject to various risks and uncertainties. The following factors, in addition to those discussed under the section entitled Item 1A. Risk Factors in PFG’s Annual Report on Form 10-K for the fiscal year ended June 29, 2024 filed with the Securities and Exchange Commission (the “SEC”) on August 14, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, could cause actual future results to differ materially from those expressed in any forward-looking statements:
- economic factors, including inflation or other adverse changes such as a downturn in economic conditions or a public health crisis, negatively affecting consumer confidence and discretionary spending;
- our reliance on third-party suppliers;
- labor relations and cost risks and availability of qualified labor;
- costs and risks associated with a potential cybersecurity incident or other technology disruption;
- our reliance on technology and risks associated with disruption or delay in implementation of new technology;
- competition in our industry is intense, and we may not be able to compete successfully;
- we operate in a low margin industry, which could increase the volatility of our results of operations;
- we may not realize anticipated benefits from our operating cost reduction and productivity improvement efforts;
- our profitability is directly affected by cost inflation and deflation, commodity volatility, and other factors;
- we do not have long-term contracts with certain customers;
- group purchasing organizations may become more active in our industry and increase their efforts to add our customers as members of these organizations;
- changes in eating habits of consumers;
- extreme weather conditions, including hurricane, earthquake and natural disaster damage;
- volatility of fuel and other transportation costs;
- our inability to adjust cost structure where one or more of our competitors successfully implement lower costs;
- our inability to increase our sales in the highest margin portion of our business;
- changes in pricing practices of our suppliers;
- our growth strategy may not achieve the anticipated results;
- risks relating to acquisitions, including the risk that we are not able to realize benefits of acquisitions or successfully integrate the businesses we acquire;
- environmental, health, and safety costs, including compliance with current and future environmental laws and regulations relating to carbon emissions and climate change and related legal or market measures;
- our inability to comply with requirements imposed by applicable law or government regulations, including increased regulation of e-vapor products and other alternative nicotine products;
- a portion of our sales volume is dependent upon the distribution of cigarettes and other tobacco products, sales of which are generally declining;
- the potential impact of product recalls and product liability claims relating to the products we distribute and other litigation;
- adverse judgments or settlements or unexpected outcomes in legal proceedings;
- negative media exposure and other events that damage our reputation;
- impact of uncollectibility of accounts receivable;
- increase in excise taxes or reduction in credit terms by taxing jurisdictions;
- the cost and adequacy of insurance coverage and increases in the number or severity of insurance and claims expenses;
- risks relating to our outstanding indebtedness, including the impact of interest rate increases on our variable rate debt;
- our ability to raise additional capital on commercially reasonable terms or at all; and
-
the following risks related to the Cheney Brothers Acquisition:
- uncertainty as to the expected financial performance of the combined company as a result of the Cheney Brothers Acquisition;
- the possibility that the expected synergies and value creation from the Cheney Brothers Acquisition will not be realized or will not be realized within the expected time period;
- the risk that unexpected costs will be incurred in connection with the integration of the Cheney Brothers Acquisition or that the integration of Cheney Brothers’ foodservice business will be more difficult or time consuming than expected;
- the inability to retain key personnel;
- disruption from the Cheney Brothers Acquisition, including potential adverse reactions or changes to business relationships with customers, employees, suppliers, other business partners or regulators, making it more difficult to maintain business and operational relationships; and
- the risk that, following the Cheney Brothers Acquisition, the combined company may not be able to effectively manage its expanded operations.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any forward-looking statement, including any contained herein, speaks only as of the time of this release or as of the date they were made and we do not undertake to update or revise them as more information becomes available or to disclose any facts, events, or circumstances after the date of this release or our statement, as applicable, that may affect the accuracy of any forward-looking statement, except as required by law.
PERFORMANCE FOOD GROUP COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
(In millions, except per share data) |
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
Six Months Ended
|
|
||||
Net sales |
|
$ |
15,638.2 |
|
|
$ |
14,295.7 |
|
|
$ |
31,053.7 |
|
|
$ |
29,234.3 |
|
Cost of goods sold |
|
|
13,810.4 |
|
|
|
12,697.6 |
|
|
|
27,461.7 |
|
|
|
25,973.3 |
|
Gross profit |
|
|
1,827.8 |
|
|
|
1,598.1 |
|
|
|
3,592.0 |
|
|
|
3,261.0 |
|
Operating expenses |
|
|
1,669.0 |
|
|
|
1,424.2 |
|
|
|
3,217.9 |
|
|
|
2,870.9 |
|
Operating profit |
|
|
158.8 |
|
|
|
173.9 |
|
|
|
374.1 |
|
|
|
390.1 |
|
Other expense, net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
100.2 |
|
|
|
61.4 |
|
|
|
167.0 |
|
|
|
117.5 |
|
Other, net |
|
|
1.9 |
|
|
|
0.8 |
|
|
|
3.5 |
|
|
|
(2.4 |
) |
Other expense, net |
|
|
102.1 |
|
|
|
62.2 |
|
|
|
170.5 |
|
|
|
115.1 |
|
Income before taxes |
|
|
56.7 |
|
|
|
111.7 |
|
|
|
203.6 |
|
|
|
275.0 |
|
Income tax expense |
|
|
14.3 |
|
|
|
33.4 |
|
|
|
53.2 |
|
|
|
76.0 |
|
Net income |
|
$ |
42.4 |
|
|
$ |
78.3 |
|
|
$ |
150.4 |
|
|
$ |
199.0 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
154.6 |
|
|
|
154.2 |
|
|
|
154.6 |
|
|
|
154.5 |
|
Diluted |
|
|
156.3 |
|
|
|
155.7 |
|
|
|
156.3 |
|
|
|
156.2 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.27 |
|
|
$ |
0.51 |
|
|
$ |
0.97 |
|
|
$ |
1.29 |
|
Diluted |
|
$ |
0.27 |
|
|
$ |
0.50 |
|
|
$ |
0.96 |
|
|
$ |
1.27 |
|
PERFORMANCE FOOD GROUP COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
($ in millions) |
|
As of
|
|
|
As of
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash |
|
$ |
10.7 |
|
|
$ |
20.0 |
|
Accounts receivable, less allowances of |
|
|
2,587.5 |
|
|
|
2,478.9 |
|
Inventories, net |
|
|
3,928.0 |
|
|
|
3,314.7 |
|
Income taxes receivable |
|
|
104.4 |
|
|
|
71.6 |
|
Prepaid expenses and other current assets |
|
|
255.1 |
|
|
|
268.1 |
|
Total current assets |
|
|
6,885.7 |
|
|
|
6,153.3 |
|
Goodwill |
|
|
3,407.5 |
|
|
|
2,418.3 |
|
Other intangible assets, net |
|
|
1,823.5 |
|
|
|
971.1 |
|
Property, plant and equipment, net |
|
|
3,861.3 |
|
|
|
2,788.5 |
|
Operating lease right-of-use assets |
|
|
943.8 |
|
|
|
875.5 |
|
Other assets |
|
|
175.2 |
|
|
|
186.2 |
|
Total assets |
|
$ |
17,097.0 |
|
|
$ |
13,392.9 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Trade accounts payable and outstanding checks in excess of deposits |
|
$ |
2,916.1 |
|
|
$ |
2,594.4 |
|
Accrued expenses and other current liabilities |
|
|
910.8 |
|
|
|
908.3 |
|
Finance lease obligations-current installments |
|
|
195.1 |
|
|
|
147.2 |
|
Operating lease obligations-current installments |
|
|
105.4 |
|
|
|
108.2 |
|
Total current liabilities |
|
|
4,127.4 |
|
|
|
3,758.1 |
|
Long-term debt |
|
|
5,691.2 |
|
|
|
3,198.5 |
|
Deferred income tax liability, net |
|
|
841.9 |
|
|
|
497.9 |
|
Finance lease obligations, excluding current installments |
|
|
966.3 |
|
|
|
703.2 |
|
Operating lease obligations, excluding current installments |
|
|
902.9 |
|
|
|
819.3 |
|
Other long-term liabilities |
|
|
310.1 |
|
|
|
289.0 |
|
Total liabilities |
|
|
12,839.8 |
|
|
|
9,266.0 |
|
Total shareholders’ equity |
|
|
4,257.2 |
|
|
|
4,126.9 |
|
Total liabilities and shareholders’ equity |
|
$ |
17,097.0 |
|
|
$ |
13,392.9 |
|
PERFORMANCE FOOD GROUP COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
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($ in millions) |
|
Six Months Ended
|
|
|
Six Months Ended
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
150.4 |
|
|
$ |
199.0 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
||
Depreciation and intangible asset amortization |
|
|
335.4 |
|
|
|
272.6 |
|
Provision for losses on accounts receivables |
|
|
11.9 |
|
|
|
11.6 |
|
Change in LIFO Reserve |
|
|
30.5 |
|
|
|
41.0 |
|
Other non-cash activities |
|
|
13.8 |
|
|
|
5.8 |
|
Changes in operating assets and liabilities, net: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
96.4 |
|
|
|
107.2 |
|
Inventories |
|
|
(325.7 |
) |
|
|
32.7 |
|
Income taxes receivable |
|
|
(25.7 |
) |
|
|
(20.7 |
) |
Prepaid expenses and other assets |
|
|
48.5 |
|
|
|
(40.9 |
) |
Trade accounts payable and outstanding checks in excess of deposits |
|
|
145.7 |
|
|
|
(46.9 |
) |
Accrued expenses and other liabilities |
|
|
(102.2 |
) |
|
|
(7.4 |
) |
Net cash provided by operating activities |
|
|
379.0 |
|
|
|
554.0 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property, plant and equipment |
|
|
(203.9 |
) |
|
|
(147.1 |
) |
Net cash paid for acquisitions |
|
|
(2,535.5 |
) |
|
|
(308.1 |
) |
Proceeds from sale of property, plant and equipment and other |
|
|
2.7 |
|
|
|
18.8 |
|
Net cash used in investing activities |
|
|
(2,736.7 |
) |
|
|
(436.4 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net borrowings under ABL Facility |
|
|
1,499.9 |
|
|
|
39.0 |
|
Borrowing of Notes due 2032 |
|
|
1,000.0 |
|
|
|
— |
|
Cash paid for debt issuance, extinguishment and modifications |
|
|
(33.8 |
) |
|
|
— |
|
Payments under finance lease obligations |
|
|
(84.8 |
) |
|
|
(56.5 |
) |
Proceeds from exercise of stock options and employee stock purchase plan |
|
|
18.2 |
|
|
|
1.1 |
|
Cash paid for shares withheld to cover taxes |
|
|
(17.2 |
) |
|
|
(18.9 |
) |
Repurchases of common stock |
|
|
(33.6 |
) |
|
|
(78.1 |
) |
Other financing activities |
|
|
— |
|
|
|
(0.3 |
) |
Net cash provided by (used in) financing activities |
|
|
2,348.7 |
|
|
|
(113.7 |
) |
Net (decrease) increase in cash and restricted cash |
|
|
(9.0 |
) |
|
|
3.9 |
|
Cash and restricted cash, beginning of period |
|
|
27.7 |
|
|
|
20.0 |
|
Cash and restricted cash, end of period |
|
$ |
18.7 |
|
|
$ |
23.9 |
|
The following table provides a reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: |
||||||||
(In millions) |
|
As of
|
|
|
As of
|
|
||
Cash |
|
$ |
10.7 |
|
|
$ |
20.0 |
|
Restricted cash(1) |
|
|
8.0 |
|
|
|
7.7 |
|
Total cash and restricted cash |
|
$ |
18.7 |
|
|
$ |
27.7 |
|
(1) |
Restricted cash is reported within Other assets and represents the amounts required by insurers to collateralize a part of the deductibles for the Company’s workers’ compensation and liability claims. |
Supplemental disclosures of cash flow information: |
||||||||
($ in millions) |
|
Six Months Ended
|
|
|
Six Months Ended
|
|
||
Cash paid during the year for: |
|
|
|
|
|
|
||
Interest |
|
$ |
146.3 |
|
|
$ |
122.3 |
|
Income tax payments net of refunds |
|
|
84.1 |
|
|
|
109.0 |
|
Statement Regarding Non-GAAP Financial Measures
This earnings release and the accompanying financial statement tables include several financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow. Such measures are not recognized terms under GAAP, should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and are not indicative of net income as determined under GAAP. Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate PFG’s liquidity or financial performance. Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow, as presented, may not be comparable to similarly titled measures of other companies because of varying methods of calculation.
PFG uses Adjusted EBITDA to evaluate the performance of its business on a consistent basis over time and for business planning purposes. In addition, targets based on Adjusted EBITDA are among the measures we use to evaluate our management’s performance for purposes of determining their compensation under our incentive plans. PFG believes that the presentation of Adjusted EBITDA enhances an investor’s understanding of PFG’s performance. PFG believes this measure is a useful metric to assess PFG’s operating performance from period to period by excluding certain items that PFG believes are not representative of PFG’s core business.
Management measures operating performance based on our Adjusted EBITDA, defined as net income before interest expense, interest income, income and franchise taxes, and depreciation and amortization, further adjusted to exclude certain items we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction and other adjustment items permitted in calculating covenant compliance under PFG’s
Management also uses Adjusted Diluted EPS, which is calculated by adjusting the most directly comparable GAAP financial measure by excluding the same items excluded in PFG’s calculation of Adjusted EBITDA, as well as amortization of intangible assets, to the extent that each such item was included in the applicable GAAP financial measure. For business combinations, the Company generally allocates a portion of the purchase price to intangible assets and such intangible assets contribute to revenue generation. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization over the useful lives of the intangible assets. The amount of the purchase price from an acquisition allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition, and thus the Company does not believe it is reflective of ongoing operations. Intangible asset amortization excluded from Adjusted Diluted EPS represents the entire amount recorded within the Company’s GAAP financial statements; whereas, the revenue generated by the associated intangible assets has not been excluded from Adjusted Diluted EPS. Intangible asset amortization is excluded from Adjusted Diluted EPS because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired, or the estimated useful life of an intangible asset is revised.
Management also uses Free Cash Flow, which is defined as net cash provided by operating activities less capital expenditures (purchases of property, plant, and equipment). PFG also believes that the presentation of Free Cash Flow enhances an investor’s understanding of PFG’s ability to make strategic investments and manage debt levels.
PFG believes that the presentation of Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow is useful to investors because these metrics provide insight into underlying business trends and year-over-year results and are frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies in PFG’s industry.
The following tables include a reconciliation of non-GAAP financial measures to the applicable most comparable GAAP financial measures.
PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
($ in millions, except per share data) |
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
Change |
|
|
% |
|
||||
Net income (GAAP) |
|
$ |
42.4 |
|
|
$ |
78.3 |
|
|
$ |
(35.9 |
) |
|
|
(45.8 |
) |
Interest expense, net |
|
|
100.2 |
|
|
|
61.4 |
|
|
|
38.8 |
|
|
|
63.2 |
|
Income tax expense |
|
|
14.3 |
|
|
|
33.4 |
|
|
|
(19.1 |
) |
|
|
(57.2 |
) |
Depreciation |
|
|
114.1 |
|
|
|
86.3 |
|
|
|
27.8 |
|
|
|
32.2 |
|
Amortization of intangible assets |
|
|
68.4 |
|
|
|
57.0 |
|
|
|
11.4 |
|
|
|
20.0 |
|
Change in LIFO reserve (A) |
|
|
17.8 |
|
|
|
21.8 |
|
|
|
(4.0 |
) |
|
|
(18.3 |
) |
Stock-based compensation expense |
|
|
11.7 |
|
|
|
11.0 |
|
|
|
0.7 |
|
|
|
6.4 |
|
(Gain) loss on fuel derivatives |
|
|
(0.8 |
) |
|
|
1.8 |
|
|
|
(2.6 |
) |
|
|
(144.4 |
) |
Acquisition, integration & reorganization expenses (B) |
|
|
51.3 |
|
|
|
3.9 |
|
|
|
47.4 |
|
|
|
1,215.4 |
|
Other adjustments (C) |
|
|
3.6 |
|
|
|
(9.5 |
) |
|
|
13.1 |
|
|
|
137.9 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
423.0 |
|
|
$ |
345.4 |
|
|
$ |
77.6 |
|
|
|
22.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share (GAAP) |
|
$ |
0.27 |
|
|
$ |
0.50 |
|
|
$ |
(0.23 |
) |
|
|
(46.0 |
) |
Impact of amortization of intangible assets |
|
|
0.44 |
|
|
|
0.36 |
|
|
|
0.08 |
|
|
|
22.2 |
|
Impact of change in LIFO reserve |
|
|
0.11 |
|
|
|
0.14 |
|
|
|
(0.03 |
) |
|
|
(21.4 |
) |
Impact of stock-based compensation expense |
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.01 |
|
|
|
14.3 |
|
Impact of (gain) loss on fuel derivatives |
|
|
— |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
(100.0 |
) |
Impact of acquisition, integration & reorganization charges |
|
|
0.33 |
|
|
|
0.03 |
|
|
|
0.30 |
|
|
|
1,000.0 |
|
Impact of other adjustment items |
|
|
0.02 |
|
|
|
(0.06 |
) |
|
|
0.08 |
|
|
|
133.3 |
|
Tax impact of above adjustments |
|
|
(0.27 |
) |
|
|
(0.15 |
) |
|
|
(0.12 |
) |
|
|
(80.0 |
) |
Adjusted Diluted Earnings per Share (Non-GAAP) |
|
$ |
0.98 |
|
|
$ |
0.90 |
|
|
$ |
0.08 |
|
|
|
8.9 |
|
A. |
Includes a decrease in the last-in-first-out (“LIFO”) inventory reserve of |
B. |
Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. |
C. |
Includes an |
PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) |
||||||||||||||||
|
|
Six Months Ended |
|
|||||||||||||
($ in millions, except per share data) |
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
Change |
|
|
% |
|
||||
Net income (GAAP) |
|
$ |
150.4 |
|
|
$ |
199.0 |
|
|
$ |
(48.6 |
) |
|
|
(24.4 |
) |
Interest expense, net |
|
|
167.0 |
|
|
|
117.5 |
|
|
|
49.5 |
|
|
|
42.1 |
|
Income tax expense |
|
|
53.2 |
|
|
|
76.0 |
|
|
|
(22.8 |
) |
|
|
(30.0 |
) |
Depreciation |
|
|
211.5 |
|
|
|
170.1 |
|
|
|
41.4 |
|
|
|
24.3 |
|
Amortization of intangible assets |
|
|
123.9 |
|
|
|
102.5 |
|
|
|
21.4 |
|
|
|
20.9 |
|
Change in LIFO reserve (A) |
|
|
30.5 |
|
|
|
41.0 |
|
|
|
(10.5 |
) |
|
|
(25.6 |
) |
Stock-based compensation expense |
|
|
23.0 |
|
|
|
21.7 |
|
|
|
1.3 |
|
|
|
6.0 |
|
Loss (gain) on fuel derivatives |
|
|
0.6 |
|
|
|
(1.7 |
) |
|
|
2.3 |
|
|
|
135.3 |
|
Acquisition, integration & reorganization expenses (B) |
|
|
70.4 |
|
|
|
13.7 |
|
|
|
56.7 |
|
|
|
413.9 |
|
Other adjustments (C) |
|
|
4.4 |
|
|
|
(10.6 |
) |
|
|
15.0 |
|
|
|
141.5 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
834.9 |
|
|
$ |
729.2 |
|
|
$ |
105.7 |
|
|
|
14.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share (GAAP) |
|
$ |
0.96 |
|
|
$ |
1.27 |
|
|
$ |
(0.31 |
) |
|
|
(24.4 |
) |
Impact of amortization of intangible assets |
|
|
0.79 |
|
|
|
0.66 |
|
|
|
0.13 |
|
|
|
19.7 |
|
Impact of change in LIFO reserve |
|
|
0.20 |
|
|
|
0.26 |
|
|
|
(0.06 |
) |
|
|
(23.1 |
) |
Impact of stock-based compensation |
|
|
0.15 |
|
|
|
0.14 |
|
|
|
0.01 |
|
|
|
7.1 |
|
Impact of loss (gain) on fuel derivatives |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
100.0 |
|
Impact of acquisition, integration & reorganization charges |
|
|
0.45 |
|
|
|
0.09 |
|
|
|
0.36 |
|
|
|
400.0 |
|
Impact of other adjustment items |
|
|
0.03 |
|
|
|
(0.06 |
) |
|
|
0.09 |
|
|
|
150.0 |
|
Tax impact of above adjustments |
|
|
(0.45 |
) |
|
|
(0.30 |
) |
|
|
(0.15 |
) |
|
|
(50.0 |
) |
Adjusted Diluted Earnings per Share (Non-GAAP) |
|
$ |
2.13 |
|
|
$ |
2.05 |
|
|
$ |
0.08 |
|
|
|
3.9 |
|
A. |
Includes increases in the LIFO inventory reserve of |
B. |
Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. |
C. |
Includes an |
(In millions) |
|
Six Months Ended
|
|
|
Six Months Ended
|
|
||
Net cash provided by operating activities (GAAP) |
|
$ |
379.0 |
|
|
$ |
554.0 |
|
Purchases of property, plant and equipment |
|
|
(203.9 |
) |
|
|
(147.1 |
) |
Free cash flow (Non-GAAP) |
|
$ |
175.1 |
|
|
$ |
406.9 |
|
Segment Results
The Company has three reportable segments: Foodservice, Vistar, and Convenience. Management evaluates the performance of these segments based on various operating and financial metrics, including their respective sales growth and Segment Adjusted EBITDA, which is the Company’s GAAP measure of segment profit. Segment Adjusted EBITDA is defined as net income before interest expense, interest income, income taxes, depreciation, and amortization and excludes certain items that the Company does not consider part of its segments’ core operating results, including stock-based compensation expense, changes in the LIFO reserve, acquisition, integration and reorganization expenses, and gains and losses related to fuel derivatives.
Corporate & All Other is comprised of corporate overhead and certain operations that are not considered separate reportable segments based on their size. This includes the operations of our internal logistics unit responsible for managing and allocating inbound logistics revenue and expense.
The following tables set forth net sales and Segment Adjusted EBITDA by segment for the periods indicated (dollars in millions):
Net Sales |
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
8,368.3 |
|
|
$ |
7,079.3 |
|
|
$ |
1,289.0 |
|
|
|
18.2 |
|
Vistar |
|
|
1,234.6 |
|
|
|
1,201.9 |
|
|
|
32.7 |
|
|
|
2.7 |
|
Convenience |
|
|
5,967.5 |
|
|
|
5,941.4 |
|
|
|
26.1 |
|
|
|
0.4 |
|
Corporate & All Other |
|
|
240.2 |
|
|
|
227.7 |
|
|
|
12.5 |
|
|
|
5.5 |
|
Intersegment Eliminations |
|
|
(172.4 |
) |
|
|
(154.6 |
) |
|
|
(17.8 |
) |
|
|
(11.5 |
) |
Total net sales |
|
$ |
15,638.2 |
|
|
$ |
14,295.7 |
|
|
$ |
1,342.5 |
|
|
|
9.4 |
|
|
|
Six Months Ended |
|
|||||||||||||
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
16,060.4 |
|
|
$ |
14,356.3 |
|
|
$ |
1,704.1 |
|
|
|
11.9 |
|
Vistar |
|
|
2,520.3 |
|
|
|
2,452.3 |
|
|
|
68.0 |
|
|
|
2.8 |
|
Convenience |
|
|
12,331.2 |
|
|
|
12,278.4 |
|
|
|
52.8 |
|
|
|
0.4 |
|
Corporate & All Other |
|
|
496.3 |
|
|
|
468.1 |
|
|
|
28.2 |
|
|
|
6.0 |
|
Intersegment Eliminations |
|
|
(354.5 |
) |
|
|
(320.8 |
) |
|
|
(33.7 |
) |
|
|
(10.5 |
) |
Total net sales |
|
$ |
31,053.7 |
|
|
$ |
29,234.3 |
|
|
$ |
1,819.4 |
|
|
|
6.2 |
|
Segment Adjusted EBITDA |
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
289.9 |
|
|
$ |
224.1 |
|
|
$ |
65.8 |
|
|
|
29.4 |
|
Vistar |
|
|
93.9 |
|
|
|
93.6 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Convenience |
|
|
107.3 |
|
|
|
83.5 |
|
|
|
23.8 |
|
|
|
28.5 |
|
Corporate & All Other |
|
|
(68.1 |
) |
|
|
(55.8 |
) |
|
|
(12.3 |
) |
|
|
(22.0 |
) |
Total Adjusted EBITDA |
|
$ |
423.0 |
|
|
$ |
345.4 |
|
|
$ |
77.6 |
|
|
|
22.5 |
|
|
|
Six Months Ended |
|
|||||||||||||
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
569.9 |
|
|
$ |
470.1 |
|
|
$ |
99.8 |
|
|
|
21.2 |
|
Vistar |
|
|
177.1 |
|
|
|
182.2 |
|
|
|
(5.1 |
) |
|
|
(2.8 |
) |
Convenience |
|
|
212.6 |
|
|
|
178.2 |
|
|
|
34.4 |
|
|
|
19.3 |
|
Corporate & All Other |
|
|
(124.7 |
) |
|
|
(101.3 |
) |
|
|
(23.4 |
) |
|
|
(23.1 |
) |
Total Adjusted EBITDA |
|
$ |
834.9 |
|
|
$ |
729.2 |
|
|
$ |
105.7 |
|
|
|
14.5 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250205140657/en/
Investors:
William S. Marshall
VP, Investor Relations
(804) 287-8108
Bill.Marshall@pfgc.com
Media:
Scott Golden
Director, Communications & Engagement
(804) 484-7873
Scott.Golden@pfgc.com
Source: Performance Food Group Company
FAQ
What were PFGC's Q2 fiscal 2025 net sales and growth rate?
How much did PFGC's net income decline in Q2 2025?
What is PFGC's updated fiscal 2025 revenue guidance?
How much has PFGC spent on share repurchases in fiscal 2025?
What was PFGC's Q2 2025 independent case volume growth?
