Performance Food Group Company · NYSE:PFGC
Performance Food — Q4 FY2016 Earnings Presentation
23 slides from Performance Food's earnings presentation, Aug 17, 2016
Slide 1: Founded on food, focused on service.
Founded on food, focused on service. Q4 FY2016 Earnings Call • August 17, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements • This presentation includes, and our response to various questions may include, certain forward‐looking statements, estimates, and projections with respect to our anticipated future performance, including the statements in the “Fiscal 2017 Outlook” section of this present
Slide 3: Statement Regarding Non-GAAP Financial Measures
Statement Regarding Non-GAAP Financial Measures • This presentation includes several financial measures that are not calculated in accordance with GAAP, including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Diluted Earnings per Share. • Such measures are not recognized terms under
Slide 4: George Holm, Chief Executive Officer
George Holm Chief Executive Officer
Slide 5: Q4 FY2016 Highlights
Q4 FY2016 Highlights • Record Q4 results ̶ Net sales of $4.4 billion, an increase of 9.8% vs. the prior year ̶ Operating profit increased 25.6% to $66.8 million • Margin growth driven by: ̶ Improved mix ̶ Winning Together ̶ Operating leverage of strong sales growth 4
Slide 6: Full-Year FY2016 Highlights
Full-Year FY2016 Highlights • Record Fiscal 2016 results ̶ Net sales topped $16 billion for the first time and increased 5.5% ̶ Gross profit topped $2 billion for the first time and increased 8.7% ̶ Operating profit grew 26.3% to $202.2 million • Margins hit an all-time high ̶ Adjusted EBITDA as a %
Slide 7: Full-Year FY2016 Financial Results
Full-Year FY2016 Financial Results $ million, except per share As Reported Adjusted for Extra Week2 53 Weeks vs. 52 Weeks 52 Weeks vs. 52 Weeks FY2016 Growth FY2016 Growth Cases + 7.0% + 4.8% Net Sales 16,104.8 + 5.5% 15,792.4 + 3.4% Gross Profit 2,010.0 + 8.7% 1,969.9 + 6.6% Operating Expense 1,807
Slide 8: Full-Year FY2016 Segment Results
Full-Year FY2016 Segment Results Net Sales EBITDA $ MM $ vs. PY $ MM $ vs. PY Performance $9,616.3 + 5.8% $307.0 + 20.8% Foodservice PFG 3,782.1 + 0.8% 34.1 (6.6%) Customized Vistar 2,701.5 + 11.4% 113.0 + 7.1% Note: Segment results are As Reported and compare FY2016’s 53 weeks to FY2015’s 52 weeks
Slide 9: Continued Progress on Key Initiatives
Continued Progress on Key Initiatives • Grow organic share profitably ̶ 28th consecutive quarter of growing independent cases in 6% to 10% range year-over-year; excluding the extra week: FY2016 independent cases grew 8.6% Q4 independent cases grew 9.0% ̶ 28th consecutive quarter that Performance
Slide 10: Continued Progress on Key Initiatives
Continued Progress on Key Initiatives • Grow organic share profitably • Continue to improve PFG’s cost structure ̶ Winning Together continues to find ways to offset increases in wages, benefits, and other expenses ̶ Operating expense per case essentially flat: + 0.1% vs. prior year 9
Slide 11: Continued Progress on Key Initiatives
Continued Progress on Key Initiatives • Grow organic share profitably • Continue to improve PFG’s cost structure • Opportunistically pursue value creating acquisitions ̶ Acquired one small candy, snack, and beverage distributor in Q4 ̶ M&A pipeline remains active 10
Slide 12: Bob Evans, Chief Financial Officer
Bob Evans Chief Financial Officer
Slide 13: Q4 FY2016 Financial Results
Q4 FY2016 Financial Results $ million, except per share As Reported Adjusted for Extra Week2 14 Weeks vs. 13 Weeks 13 Weeks vs. 13 Weeks Q4 FY2016 Growth Q4 FY2016 Growth Cases + 14.0% + 5.8% Net Sales 4,372.9 + 9.8% 4,060.5 + 1.9% Gross Profit 561.3 + 14.6% 521.2 + 6.4% Operating Expense 494.5 + 13
Slide 14: FY2016 Cash Flow and Balance Sheet
FY2016 Cash Flow and Balance Sheet • YTD Cash Flow highlights ̶ Operating Cash Flow of $234.9MM vs. $127.4MM PY ̶ CapEx of $119.7MM vs. $98.6MM PY ̶ Acquisitions of $39MM vs. $0.4MM PY • Net Debt ̶ FY2015 year-end: $ 1,413.4MM ̶ FY2016 year-end: $ 1,134.6MM ̶ Improvement vs. PY: $ 278.8MM • Net Debt
Slide 15: Senior Notes Offering
Senior Notes Offering • On May 17, the Company issued and sold $350 million aggregate principal amount of 5.500% Senior Notes due 2024 • The Company used the net proceeds from the offering to repay all outstanding borrowings under its existing term loan facility, to terminate that facility, and to r
Slide 16: FY2017 Outlook
FY2017 Outlook 52 vs. 52 weeks 52 vs. 53 Weeks PFGC provides fiscal 2017 Adjusted EBITDA1 growth 7%-10% 5%-8% versus PY outlook: PFGC provides fiscal 2017 Adjusted Diluted EPS1 31%-36% 27%-32% growth versus PY outlook: • 1H FY2017 Adjusted EBITDA growth is projected to be in the low-to-mid single di
Slide 17: FY2017 Outlook: Estimated Annual Assumptions or Projections
FY2017 Outlook: Estimated Annual Assumptions or Projections • Organic case growth in a range of 4% to 7% on a 52 to 52 week basis • Interest expense in the range of $50 million to $60 million • Effective tax rate of approximately 40% • CapEx for Fiscal 2017 will be between $140 million to $160 milli
Slide 18: What we really do is deliver.
What we really do is deliver. 17
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) A. Includes a $3.6 million loss on extinguishment during the fourth quarter of fiscal 2016. B. Includes adjustments for non-cash charges arising from employee equity award compensation, gain/loss on dispos
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) A. Includes a $9.4 million loss on extinguishment and $5.5 million of accelerated amortization of original issuance discount and deferred financing costs during the fiscal year ended July 2, 2016. B. Inclu
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) A. Includes a $5.5 million of accelerated amortization of original issuance discount and deferred financing costs during Q2, and a $5.8 million and a $3.6 million loss on extinguishment for Q3 and Q4, resp
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) A. Includes adjustments for non-cash charges arising from employee equity award compensation and adjustments to reflect certain assets held for sale to their net realizable value. In addition, this include
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