Performance Food Group Company · NYSE:PFGC
Performance Food — Q2 FY2016 Earnings Presentation
24 slides from Performance Food's earnings presentation, Feb 3, 2016
Slide 1: Founded on food, focused on service.
Founded on food, focused on service. Q2 FY2016 Earnings Call • February 3, 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: Q2 FY2016 Highlights
Q2 FY2016 Highlights • Results exceeded expectations • Strong Case Growth ̶ Case growth of 4.2% exceeded forecast industry real growth of approximately 1% to 2% ̶ Case growth paced by strong growth in independent restaurants and in Vistar • Gross profit growth of 6.5% exceeded case growth by 230 bps
Slide 6: Q2 FY2016 Results
Q2 FY2016 Results • Case volume growth of 4.2% • Net Sales increased 2.7% to $3.9 billion • Gross Profit increased 6.5% to $486.8 million • Operating Profit increased 14.2% to $53.8 million • Net Income increased 36.7% to $17.5 million • Adj. EBITDA1 increased 10.2% to $95.4 million • Adj. Net Incom
Slide 7: H1 FY2016 Highlights
H1 FY2016 Highlights • Case volume growth of 4.7% • Net Sales increased 4.4% to $7.8 billion • Gross Profit increased 6.7% to $967.9 million • Operating Profit increased 22.6% to $97.8 million • Net Income increased 53.1% to $29.7 million • Adj. EBITDA1 increased 11.9% to $175.5 million • Adj. Net I
Slide 8: Q2 FY2016 Segment Results
Q2 FY2016 Segment Results Net Sales EBITDA $ MM $ vs. PY $ MM $ vs. PY Performance 2,316.3 + 3.0% 73.4 + 14.2% Foodservice PFG 915.1 (1.2%) 9.2 + 9.5% Customized Vistar 661.2 + 7.5% 34.6 + 16.5% Source: Performance Food Group reports 7
Slide 9: Bob Evans, Chief Financial Officer
Bob Evans Chief Financial Officer
Slide 10: Q2 Financial Results
Q2 Financial Results $ million, except per share Q2 FY2016 Q2 FY2015 Growth Cases + 4.2% Net Sales $ 3,893.9 $ 3,792.5 + 2.7% Gross Profit 486.8 457.3 + 6.5% Operating Expense 433.0 410.2 + 5.6% Operating Profit 53.8 47.1 + 14.2% Net Income 17.5 12.8 + 36.7% Diluted EPS $0.17 $0.15 + 13.3% Adjusted
Slide 11: Q2 Balance Sheet
Q2 Balance Sheet • Net Debt ̶ Q2 FY2015 quarter end: $ 1,548.0MM ̶ Q2 FY2016 quarter end: $ 1,248.4MM ̶ Improvement vs. PY: $ 299.6MM • Net Debt / TTM Adjusted EBITDA1 leverage ̶ Q2 FY 2016 quarter end: 3.6X ̶ Q 2 FY 2015 quarter end: 5.0X ̶ Improvement: 1.4X 1 For reconciliation of non-GAAP to GAAP
Slide 12: Asset-Based Lending Facility (ABL)
Asset-Based Lending Facility (ABL) • On February 1, 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 is borrowing $200
Slide 13: Fiscal 2016 Outlook
Fiscal 2016 Outlook • PFG’s previously announced Fiscal 2016 Adjusted EBITDA1 growth versus PY outlook: ̶ 53 vs. 52 weeks: 9% – 12% ̶ 52 vs. 52 weeks: 7% – 10% • For fiscal 2016, PFG reaffirms our outlook in the 9% to 12% range and updates it toward the top end of the range • As a reminder, the 53rd
Slide 14: What we really do is deliver.
What we really do is deliver. 13
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Source: Performance Food Group reports 14
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Source: Performance Food Group reports 15
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures A. Includes adjustments for non-cash charges arising from employee stock options, changes in fair value of fuel collar instruments, and gain/loss on disposal of assets. In addition, this includes an increase in the LIFO reserve of $0.5 million for the second quarter of fi
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Source: Performance Food Group reports 17
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Source: Performance Food Group reports 18
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures A. Includes adjustments for non-cash charges arising from employee stock options, changes in fair value of fuel collar instruments, and gain/loss on disposal of assets. In addition, this includes a decrease in the LIFO reserve of $1.2 million for the first six months of f
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 20
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures 21
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures A. Includes adjustments for non-cash charges arising from employee stock options, changes in fair value of fuel collar instruments, and gain/loss on disposal of assets. In addition, this includes an increase of $1.8 million, a decrease $1.9 million, a decrease $0.3 millio
Slide 24: Performance Food Group
| =I Performance —= Food Group
Performance Food Group Company — Q2 FY2016 Earnings Presentation on 6ix