Performance Food Group Company · NYSE:PFGC
Performance Food — Q1 2016 Earnings Presentation
18 slides from Performance Food's earnings presentation, Nov 4, 2015
Slide 1: Founded on food, focused on service.
Founded on food, focused on service. Q1 Earnings Call • November 4, 2015
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 the GAAP, including EBITDA, Adjusted EBITDA, Adjusted Cost of Goods Sold, Adjusted Gross Profit, Adjusted Operating Expense, Adjusted Operating Profit, A
Slide 4: George Holm, Chief Executive Officer
George Holm Chief Executive Officer
Slide 5: PFG at a Glance
PFG at a Glance • Third largest foodservice distributor in the U.S. FY2015 Net Sales FY2015 Segment EBIT – $15.3 billion in FY2015 Net Sales – $329 million in FY2015 Adjusted EBITDA1 Vistar Performance Performance 16% Foodservice Foodservice 59% • Participates in the growing $240 billion PFG Vistar
Slide 6: Q1 FY2016 Results
Q1 FY2016 Results • Case volume growth of 5.1% • Net Sales increased 6.3% to $3.9 billion • Gross Profit increased 7.1% to $481.1 million • Net Income increased 84.8% to $12.2 million • Adj. EBITDA1 increased 14.1% to $80.1 million • Adj. Net Income1 increased 65.5% to $18.2 million 1 For reconcilia
Slide 7: Keys to the Quarter
Keys to the Quarter • Grew case sales faster than the forecasted industry average • Expanded profit margins ̶ Sold a more profitable mix of channels and products ̶ Controlled Operating Expenses • Decreased seasonal investment in cash flow Source: Performance Food Group reports 6
Slide 8: Segment Results
Segment Results Net Sales EBITDA $ MM $ vs. PY $ MM $ vs. PY Performance 2,368 + 5.2% 70.5 + 27.0% Foodservice PFG 927 + 6.7% 7.3 (3.9%) Customized Vistar 632 + 9.8% 22.4 (6.7%) Source: Performance Food Group reports 7
Slide 9: Bob Evans, Chief Financial Officer
Bob Evans Chief Financial Officer
Slide 10: Q1 Financial Results
Q1 Financial Results $ million, except per share Q1 FY2016 Q1 FY2015 Growth Cases + 5.1% Net Sales 3,928.9 3,697.6 + 6.3% Gross Profit 481.1 449.4 + 7.1% Operating Expense 437.1 416.7 + 4.9% Operating Profit 44.0 32.7 + 34.6% Net Income 12.2 6.6 + 84.8% Diluted EPS $0.14 $0.08 + 75.0% Adjusted EBITD
Slide 11: PFG IPO
PFG IPO • IPO offering completed October 6, 2015 • 16,675,000 shares at $19.00 per share ̶ 12,777,325 primary shares sold by PFG ̶ 3,897,675 secondary shares sold by certain selling shareholders, which included shares sold pursuant to a fully exercised over allotment option • $223.7MM net proceeds t
Slide 12: Q1 Cash Flow
Q1 Cash Flow • Three primary uses of cash: ̶ Working capital to support growth ̶ Capital expenditures ̶ Acquisitions • Operating Cash Flow ̶ Q1 FY2016 investment: ($25.9MM) ̶ Q1 FY2015 investment: ($82.7MM) ̶ Improvement vs. PY: $56.8MM Source: Performance Food Group reports 11
Slide 13: Q1 Balance Sheet
Q1 Balance Sheet • Net Debt ̶ Q1 FY2015 quarter end: $1,557.6MM ̶ Q1 FY2016 quarter end: $1,485.7MM ̶ Improvement vs. PY: $ 71.9MM • Net Debt / TTM Adjusted EBITDA1 leverage ̶ Q1 FY2016 quarter end: 4.4X ̶ Post-IPO Pro Forma: 3.7X ̶ Improvement: 0.7X 1 For reconciliation of non-GAAP to GAAP measures
Slide 14: Fiscal 2016 Outlook
Fiscal 2016 Outlook • Fiscal 2016 Adjusted EBITDA1 growth versus PY outlook: ̶ 53 vs. 52 weeks: 9 – 12% ̶ 52 vs. 52 weeks: 7 – 10% • Other key annual assumptions: ̶ Organic case growth: 3 – 5% (52 vs. 52 weeks) ̶ Interest expense: $72 - $78MM ̶ Effective tax rate: 41% ̶ Annual weighted average dilut
Slide 15: What we really do is deliver.
What we really do is deliver. 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 interest rate swap hedge ineffectiveness, adjustments to reflect certain assets held for sale to their net realizable value, non-cash charges arising from employee stock options, and changes in fair value of fuel collar instruments. In additio
Slide 18: Performance Food Group
| =I Performance —= Food Group
Performance Food Group Company — Q1 2016 Earnings Presentation on 6ix