Performance Food Group Company · NYSE:PFGC
Performance Food — Q3 FY2016 Earnings Presentation
23 slides from Performance Food's earnings presentation, May 4, 2016
Slide 1: Founded on food, focused on service. Q3 FY2016 Earnings Call
Founded on food, focused on service. Q3 FY2016 Earnings Call • May 4, 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 2016 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 Cost of Goods Sold, Adjusted Gross Profit, Adjusted Operating Expense, Adjusted Operating Profit, Adjus
Slide 4: George Holm, Chief Executive Officer
George Holm Chief Executive Officer
Slide 5: Q3 FY2016 Highlights
Q3 FY2016 Highlights • Double-digit Adjusted EBITDA growth ̶ 10% - 12% growth range outlook provided • Share Gains ̶ Strong organic Case growth • Expanded Margins ̶ Grew independent restaurant case volume by at least 6% over the prior year ̶ Continued effective cost management ̶ Adjusted EBITDA as a
Slide 6: Q3 FY2016 Results
Q3 FY2016 Results • Case volume growth of 4.1% • Net sales increased 3.0% to $3.9 billion • Gross profit increased 6.5% to $480.8 million • Operating profit increased 38.7% to $37.6 million • Net income increased 224.1% to $9.4 million • Adjusted EBITDA1 increased 10.2% to $76.4 million • Adj. EBITD
Slide 7: First Nine Months FY2016 Results
First Nine Months FY2016 Results • Case volume growth of 4.5% • Net sales increased 4.0% to $11.7 billion • Gross profit increased 6.7% to $1.4 billion • Operating profit increased 26.7% to $135.4 million • Net income increased 75.3% to $39.1 million • Adj. EBITDA1 increased 11.4% to $251.9 million
Slide 8: PFG Customized
PFG Customized • PFG entered into an agreement to provide distribution solutions to all of Red Lobster’s 670+ U.S. restaurants • Agreement solidifies PFG Customized’s position as the premier distributor to full-service chain restaurants • Red Lobster will be served from within Customized’s existing
Slide 9: Q3 FY2016 Segment Results
Q3 FY2016 Segment Results Net Sales EBITDA $ MM $ vs. PY $ MM $ vs. PY Performance $2,298.7 + 4.1% $63.0 + 19.3% Foodservice PFG 957.9 (3.2%) 9.7 + 1.0% Customized Vistar 651.2 + 9.0% 26.7 + 4.7% 8
Slide 10: Bob Evans, Chief Financial Officer
Bob Evans Chief Financial Officer
Slide 11: Q3 Financial Results
Q3 Financial Results $ million, except per share Q3 FY2016 Q3 FY2015 Growth Cases + 4.1% Net Sales $ 3,909.1 $ 3,795.5 + 3.0% Gross Profit 480.8 451.6 + 6.5% Operating Expense 443.2 424.5 + 4.4% Operating Profit 37.6 27.1 + 38.7% Net Income 9.4 2.9 + 224.1% Diluted EPS $0.09 $0.03 + 200.0% Adjusted
Slide 12: PFG's Profit Margin Expansion
PFG’s Profit Margin Expansion Adj. EBITDA Margin as a % of Gross Profit • Performance Foodservice: − Shift mix to Independents + 210 bps + 80 bps and proprietary 20% Performance Brands 17.8% 17.4% 16.6% 15.7% • Vistar: 16% − Penetrate new channels 12% leveraging our existing distribution network 8%
Slide 13: Q3 Cash Flow and Balance Sheet
Q3 Cash Flow and Balance Sheet • YTD Cash Flow highlights ̶ Operating Cash Flow of $117.6MM vs. 28.4MM PY ̶ CapEx of $68.0MM vs. $63.7MM PY ̶ Acquisitions of $40.2MM vs. $0.4MM PY • Net Debt ̶ Q3 FY2015 quarter end: $ 1,494.8MM ̶ Q3 FY2016 quarter end: $ 1,203.4MM ̶ Improvement vs. PY: $ 291.4MM • N
Slide 14: Asset-Based Lending Facility (ABL)
Asset-Based Lending Facility (ABL) • In Q3 FY2016 , an amendment to PFG’s ABL facility went into effect ̶ Upsized the ABL Facility from $1.4 billion to $1.6 billion ̶ Lowered interest rate grid for LIBOR based loans by 25 basis points ̶ Extended the maturity to February 2021 • PFG borrowed $200 mill
Slide 15: Fiscal 2016 Outlook
Fiscal 2016 Outlook • PFG’s provides Fiscal 2016 Adjusted EBITDA1 growth versus PY outlook: ̶ 53 vs. 52 weeks: 10% – 12% ̶ 52 vs. 52 weeks: 8% – 10% • For fiscal 2016, PFG narrows our outlook to the 10% to 12% range • As a reminder, the 53rd week is worth approximately 2% points of growth for the ye
Slide 16: What we really do is deliver.
What we really do is deliver. 15
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) 16
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) 17
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) 18
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) 19
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) 20
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 stock compensation, changes in fair value of fuel collar instruments, and adjustments to reflect certain assets held for sale to their net
Slide 23: Performance Food Group
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