Performance Food Group Company (PFGC) has reported 121.28 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $20.80 million, or $0.20 a share in the quarter, compared with $9.40 million, or $0.09 a share for the same period last year. On an adjusted basis, earnings per share were at $0.27 for the quarter compared with $0.15 in the same period last year. Revenue during the quarter grew 8.34 percent to $4,235 million from $3,909.10 million in the previous year period. Gross margin for the quarter expanded 1 basis points over the previous year period to 12.31 percent. Total expenses were 98.90 percent of quarterly revenues, down from 99.04 percent for the same period last year. This has led to an improvement of 14 basis points in operating margin to 1.10 percent.
Operating income for the quarter was $46.70 million, compared with $37.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $89.60 million compared with $76.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 16 basis points in the quarter to 2.12 percent from 1.95 percent in the last year period.
“Our team’s strong execution enabled us to generate industry-leading case growth and solid gross-profit dollar improvement in the quarter,” said George Holm, PFG’s President and Chief Executive Officer. “The results were driven by increased branded product penetration, selling into a more profitable mix of channels and strong operating expense control. We are pleased with the growth in sales and profitability across each of our business segments. Our strategic investments are paying dividends, and we expect continued business momentum in our fiscal fourth quarter and beyond.”
For financial year 2017, Performance Food Group Company expects adjusted diluted earnings per share to be in the range of $1.23 to $1.27.
Operating cash flow declines
Performance Food Group Company has generated cash of $102 million from operating activities during the nine month period, down 13.85 percent or $16.40 million, when compared with the last year period. The company has spent $250.80 million cash to meet investing activities during the nine month period as against cash outgo of $107.50 million in the last year period.
Cash flow from financing activities was $145.50 million for the nine month period as against cash outgo of $9.40 million in the last year period.
Cash and cash equivalents stood at $7.60 million as on Apr. 01, 2017, down 28.97 percent or $3.10 million from $10.70 million on Mar. 26, 2016.
Working capital increases marginally
Performance Food Group Company has recorded an increase in the working capital over the last year. It stood at $705.40 million as at Apr. 01, 2017, up 4.49 percent or $30.30 million from $675.10 million on Mar. 26, 2016. Current ratio was at 1.51 as on Apr. 01, 2017, down from 1.53 on Mar. 26, 2016.
Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 23 days for the last year period. Days sales outstanding went down to 22 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 12 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding was almost stable at 24 days for the quarter, when compared with the previous year period.
Debt moves up
Performance Food Group Company has witnessed an increase in total debt over the last one year. It stood at $1,314.30 million as on Apr. 01, 2017, up 8.25 percent or $100.20 million from $1,214.10 million on Mar. 26, 2016. Total debt was 35.08 percent of total assets as on Apr. 01, 2017, compared with 35.29 percent on Mar. 26, 2016. Debt to equity ratio was at 1.49 as on Apr. 01, 2017, down from 1.58 as on Mar. 26, 2016. 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: [email protected]
