Performance Food Group Company (PFGC) has reported 30.86 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $22.90 million, or $0.22 a share in the quarter, compared with $17.50 million, or $0.17 a share for the same period last year. On an adjusted basis, earnings per share were at $0.29 for the quarter compared with $0.26 in the same period last year. Revenue during the quarter grew 4.06 percent to $4,051.80 million from $3,893.90 million in the previous year period. Gross margin for the quarter expanded 26 basis points over the previous year period to 12.76 percent. Total expenses were 98.73 percent of quarterly revenues, up from 98.62 percent for the same period last year. That has resulted in a contraction of 12 basis points in operating margin to 1.27 percent.
Operating income for the quarter was $51.30 million, compared with $53.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $93.60 million compared with $95.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 14 basis points in the quarter to 2.31 percent from 2.45 percent in the last year period.
“Our business segments performed in-line with our expectations for the second quarter,” said George Holm, PFG’s President and Chief Executive Officer. “The strategic investments we made in the first half of fiscal 2017 are beginning to pay off and we expect them to provide us with a strong platform for growth in the second half of fiscal 2017 and beyond.”
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.23 to $1.27 on adjusted basis.
Operating cash flow turns negative
Performance Food Group Company has spent $25.50 million cash to meet operating activities during the first half as against cash inflow of $10.70 million in the last year period. The company has spent $161.80 million cash to meet investing activities during the first six months as against cash outgo of $51.50 million in the last year period.
Cash flow from financing activities was $188.10 million for the first six months, up 363.30 percent or $147.50 million, when compared with the last year period.
Cash and cash equivalents stood at $11.70 million as on Dec. 31, 2016, up 30 percent or $2.70 million from $9 million on Dec. 26, 2015.
Working capital increases
Performance Food Group Company has recorded an increase in the working capital over the last year. It stood at $769 million as at Dec. 31, 2016, up 6.49 percent or $46.90 million from $722.10 million on Dec. 26, 2015. Current ratio was at 1.61 as on Dec. 31, 2016, up from 1.60 on Dec. 26, 2015.
Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 24 days for the last year period. Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 13 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding went up to 24 days for the quarter from 23 for the same period last year.
Debt moves up
Performance Food Group Company has witnessed an increase in total debt over the last one year. It stood at $1,352.80 million as on Dec. 31, 2016, up 7.59 percent or $95.40 million from $1,257.40 million on Dec. 26, 2015. Total debt was 37.24 percent of total assets as on Dec. 31, 2016, compared with 36.85 percent on Dec. 26, 2015. Debt to equity ratio was at 1.58 as on Dec. 31, 2016, down from 1.66 as on Dec. 26, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
