Performance Food Group Company Reports Third-Quarter and First-Nine Months Fiscal 2025 Results
Strong Sales Momentum; Updates Full-Year Financial Guidance
Third-Quarter Fiscal 2025 Highlights
- Total case volume increased 10.0%
- Total Independent Foodservice case volume increased 20.0%
- Organic Independent Foodservice case volume increased 3.4%
-
Net sales increased 10.5% to
$15.3 billion -
Gross profit improved 16.2% to
$1.8 billion -
Net income decreased 17.2% to
$58.3 million -
Adjusted EBITDA increased 20.1% to
$385.1 million 1 -
Diluted Earnings Per Share (“EPS”) decreased 17.8% to
$0.37 -
Adjusted Diluted EPS decreased 1.3% to
$0.79 1
First-Nine Months Fiscal 2025 Highlights
- Total case volume increased 7.4%
- Total Independent Foodservice case volume increased 15.6%
- Organic Independent Foodservice case volume increased 4.2%
-
Net sales increased 7.6% to
$46.4 billion -
Gross profit improved 12.1% to
$5.4 billion -
Net income decreased 22.5% to
$208.7 million -
Adjusted EBITDA increased 16.2% to
$1,220.0 million 1 -
Diluted EPS decreased 22.1% to
$1.34 -
Adjusted Diluted EPS increased 2.5% to
$2.92 1 -
Operating Cash Flow of
$827.1 million -
Free cash flow of
$494.4 million 1
“Our organization rose to the challenges in the quarter and is on strong footing for the remainder of the year,” said
1 |
This earnings release includes several metrics, including Adjusted EBITDA, Adjusted Diluted Earnings Per Share, and Free Cash Flow, that are not calculated in accordance with Generally Accepted Accounting Principles in the |
Third-Quarter Fiscal 2025 Financial Summary
Total case volume increased 10.0% for the third quarter of fiscal 2025 compared to the prior year period. Total organic case volume increased 1.3% for the third quarter of fiscal 2025 compared to the prior year period, benefiting from a 3.4% increase in organic independent cases, including growth in Performance Brands cases and growth in cases sold to Foodservice’s Chain business. Total independent case volume increased 20.0%.
Net sales for the third quarter of fiscal 2025 grew 10.5% to
Gross profit for the third quarter of fiscal 2025 grew 16.2% to
Operating expenses rose 16.5% to
Net income for the third quarter of fiscal 2025 decreased
For the quarter, Adjusted EBITDA rose 20.1% to
Diluted EPS decreased 17.8% to
First-Nine Months Fiscal 2025 Financial Summary
Total case volume increased 7.4% for the first nine months of fiscal 2025 compared to the prior year period. Total organic case volume increased 1.5% for the first nine months of fiscal 2025 compared to the prior year period, benefiting from a 4.2% increase in organic independent cases, including growth in Performance Brands cases and growth in cases sold to Foodservice’s Chain business. Total independent case volume increased 15.6%.
Net sales for the first nine months of fiscal 2025 grew 7.6% to
Gross profit for the first nine months of fiscal 2025 grew 12.1% to
Operating expenses rose 13.6% to
Net income for the first nine months of fiscal 2025 decreased
For the first nine months of fiscal 2025, Adjusted EBITDA rose 16.2% to
Diluted EPS decreased 22.1% to
Cash Flow and Capital Spending
In the first nine months of 2025, PFG provided
In the first nine months of fiscal 2025, PFG invested
Share Repurchase Program
During the three months ended
Third-Quarter Fiscal 2025 Segment Results
The Company regularly monitors for changes in facts and circumstances that would necessitate changes in its determination of operating segments. In the third quarter of fiscal 2025, the Company changed its operating segments to reflect the manner in which the business is managed. Based on changes to the Company’s organizational structure and how operating results are reviewed and decisions about resource allocations are made, certain operations and administrative and corporate costs previously reported in Corporate & All Other are now included in the Foodservice segment. In the third quarter of fiscal 2025, the Company also renamed the segment formerly known as "Vistar", which will be referred to as "Specialty" going forward. There were no changes to the operations reported within the Specialty (formerly Vistar) segment. The Company continues to have three reportable segments: Foodservice, Specialty (formerly Vistar), and Convenience.
Our Foodservice segment distributes a broad line of national brands, customer brands, and our proprietary-branded food and food-related products, or “Performance Brands.” Foodservice sells to independent and multi-unit “Chain” restaurants and other institutions such as schools, healthcare facilities, business and industry locations, and retail establishments. Our Chain customers are multi-unit restaurants with five or more locations and include some of the most recognizable family and casual dining restaurant chains. Our Specialty segment, previously referred to as Vistar, specializes in distributing candy, snacks, beverages, and other items nationally to vending, office coffee service, theater, retail, hospitality, and other channels. Our Convenience segment distributes candy, snacks, beverages, cigarettes, other tobacco products, food and foodservice related products, and other items to convenience stores across
Foodservice
Third-quarter fiscal 2025 net sales for Foodservice increased 19.2% to
Third-quarter fiscal 2025 Adjusted EBITDA for Foodservice increased 29.0% to
Specialty
For the third quarter of fiscal 2025, net sales for Specialty decreased 0.2% to
Third-quarter fiscal 2025 Adjusted EBITDA for Specialty increased 6.9% to
Convenience
Third-quarter fiscal 2025 net sales for Convenience increased 1.8% to
Third-quarter fiscal 2025 Adjusted EBITDA for Convenience increased 5.4% to
Fiscal 2025 Outlook
For the full fiscal year 2025, PFG now expects net sales to be in a range of approximately
As previously disclosed, PFG’s outlook for fiscal year 2025 includes expected business results for
PFG’s Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, losses on early extinguishments of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. PFG’s management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. Please see the “Forward-Looking Statements” section of this release for a discussion of certain risks to PFG’s outlook.
Conference Call
As previously announced, a conference call with the investment community and news media will be webcast today,
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and integration of our acquisition of
Such forward-looking statements are subject to various risks and uncertainties. The following factors, in addition to those discussed under the section entitled Item 1A. Risk Factors in PFG’s Annual Report on Form 10-K for the fiscal year ended
- economic factors, including inflation or other adverse changes such as a downturn in economic conditions, tariff increases, or a public health crisis, negatively affecting consumer confidence and discretionary spending;
- our reliance on third-party suppliers;
- labor relations and cost risks and availability of qualified labor;
- costs and risks associated with a potential cybersecurity incident or other technology disruption;
- our reliance on technology and risks associated with disruption or delay in implementation of new technology;
- competition in our industry is intense, and we may not be able to compete successfully;
- we operate in a low margin industry, which could increase the volatility of our results of operations;
- we may not realize anticipated benefits from our operating cost reduction and productivity improvement efforts;
- our profitability is directly affected by cost inflation and deflation, commodity volatility, and other factors;
- we do not have long-term contracts with certain customers;
- group purchasing organizations may become more active in our industry and increase their efforts to add our customers as members of these organizations;
- changes in eating habits of consumers;
- extreme weather conditions, including hurricane, earthquake and natural disaster damage;
- volatility of fuel and other transportation costs;
- our inability to adjust cost structure where one or more of our competitors successfully implement lower costs;
- our inability to increase our sales in the highest margin portion of our business;
- changes in pricing practices of our suppliers;
- our growth strategy may not achieve the anticipated results;
- risks relating to acquisitions, including the risk that we are not able to realize benefits of acquisitions or successfully integrate the businesses we acquire;
- environmental, health, and safety costs, including compliance with current and future environmental laws and regulations relating to carbon emissions and climate change and related legal or market measures;
- our inability to comply with requirements imposed by applicable law or government regulations, including increased regulation of e-vapor products and other alternative nicotine products;
- a portion of our sales volume is dependent upon the distribution of cigarettes and other tobacco products, sales of which are generally declining;
- the potential impact of product recalls and product liability claims relating to the products we distribute and other litigation;
- adverse judgments or settlements or unexpected outcomes in legal proceedings;
- negative media exposure and other events that damage our reputation;
- impact of uncollectibility of accounts receivable;
- increase in excise taxes or reduction in credit terms by taxing jurisdictions;
- the cost and adequacy of insurance coverage and increases in the number or severity of insurance and claims expenses;
- risks relating to our outstanding indebtedness, including the impact of interest rate increases on our variable rate debt;
- our ability to raise additional capital on commercially reasonable terms or at all; and
-
the following risks related to the Cheney Brothers Acquisition:
- uncertainty as to the expected financial performance of the combined company as a result of the Cheney Brothers Acquisition;
- the possibility that the expected synergies and value creation from the Cheney Brothers Acquisition will not be realized or will not be realized within the expected time period;
- the risk that unexpected costs will be incurred in connection with the integration of the Cheney Brothers Acquisition or that the integration of Cheney Brothers’ foodservice business will be more difficult or time consuming than expected;
- the inability to retain key personnel; and
- disruption from the Cheney Brothers Acquisition, including potential adverse reactions or changes to business relationships with customers, employees, suppliers, other business partners or regulators, making it more difficult to maintain business and operational relationships.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
(In millions, except per share data) |
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
||||
Net sales |
|
$ |
15,306.3 |
|
|
$ |
13,857.7 |
|
|
$ |
46,360.0 |
|
|
$ |
43,092.0 |
|
Cost of goods sold |
|
|
13,483.9 |
|
|
|
12,288.8 |
|
|
|
40,945.6 |
|
|
|
38,262.1 |
|
Gross profit |
|
|
1,822.4 |
|
|
|
1,568.9 |
|
|
|
5,414.4 |
|
|
|
4,829.9 |
|
Operating expenses |
|
|
1,648.0 |
|
|
|
1,414.0 |
|
|
|
4,865.9 |
|
|
|
4,284.9 |
|
Operating profit |
|
|
174.4 |
|
|
|
154.9 |
|
|
|
548.5 |
|
|
|
545.0 |
|
Other expense, net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
96.9 |
|
|
|
57.1 |
|
|
|
263.9 |
|
|
|
174.6 |
|
Other, net |
|
|
(1.0 |
) |
|
|
1.0 |
|
|
|
2.5 |
|
|
|
(1.4 |
) |
Other expense, net |
|
|
95.9 |
|
|
|
58.1 |
|
|
|
266.4 |
|
|
|
173.2 |
|
Income before taxes |
|
|
78.5 |
|
|
|
96.8 |
|
|
|
282.1 |
|
|
|
371.8 |
|
Income tax expense |
|
|
20.2 |
|
|
|
26.4 |
|
|
|
73.4 |
|
|
|
102.4 |
|
Net income |
|
$ |
58.3 |
|
|
$ |
70.4 |
|
|
$ |
208.7 |
|
|
$ |
269.4 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
155.0 |
|
|
|
154.3 |
|
|
|
154.8 |
|
|
|
154.4 |
|
Diluted |
|
|
156.5 |
|
|
|
156.1 |
|
|
|
156.3 |
|
|
|
156.2 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.38 |
|
|
$ |
0.46 |
|
|
$ |
1.35 |
|
|
$ |
1.74 |
|
Diluted |
|
$ |
0.37 |
|
|
$ |
0.45 |
|
|
$ |
1.34 |
|
|
$ |
1.72 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
($ in millions) |
|
As of
|
|
|
As of
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash |
|
$ |
10.2 |
|
|
$ |
20.0 |
|
Accounts receivable, less allowances of |
|
|
2,690.3 |
|
|
|
2,478.9 |
|
Inventories, net |
|
|
3,716.6 |
|
|
|
3,314.7 |
|
Income taxes receivable |
|
|
128.4 |
|
|
|
71.6 |
|
Prepaid expenses and other current assets |
|
|
243.3 |
|
|
|
268.1 |
|
Total current assets |
|
|
6,788.8 |
|
|
|
6,153.3 |
|
|
|
|
3,455.2 |
|
|
|
2,418.3 |
|
Other intangible assets, net |
|
|
1,747.7 |
|
|
|
971.1 |
|
Property, plant and equipment, net |
|
|
4,002.6 |
|
|
|
2,788.5 |
|
Operating lease right-of-use assets |
|
|
958.3 |
|
|
|
875.5 |
|
Other assets |
|
|
170.8 |
|
|
|
186.2 |
|
Total assets |
|
$ |
17,123.4 |
|
|
$ |
13,392.9 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Trade accounts payable and outstanding checks in excess of deposits |
|
$ |
3,054.8 |
|
|
$ |
2,594.4 |
|
Accrued expenses and other current liabilities |
|
|
838.6 |
|
|
|
908.3 |
|
Finance lease obligations—current installments |
|
|
209.1 |
|
|
|
147.2 |
|
Operating lease obligations—current installments |
|
|
104.6 |
|
|
|
108.2 |
|
Total current liabilities |
|
|
4,207.1 |
|
|
|
3,758.1 |
|
Long-term debt |
|
|
5,422.7 |
|
|
|
3,198.5 |
|
Deferred income tax liability, net |
|
|
883.3 |
|
|
|
497.9 |
|
Finance lease obligations, excluding current installments |
|
|
1,035.7 |
|
|
|
703.2 |
|
Operating lease obligations, excluding current installments |
|
|
922.8 |
|
|
|
819.3 |
|
Other long-term liabilities |
|
|
314.3 |
|
|
|
289.0 |
|
Total liabilities |
|
|
12,785.9 |
|
|
|
9,266.0 |
|
Total shareholders’ equity |
|
|
4,337.5 |
|
|
|
4,126.9 |
|
Total liabilities and shareholders’ equity |
|
$ |
17,123.4 |
|
|
$ |
13,392.9 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
($ in millions) |
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
208.7 |
|
|
$ |
269.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
||
Depreciation and intangible asset amortization |
|
|
522.3 |
|
|
|
411.9 |
|
Provision for losses on accounts receivables |
|
|
18.6 |
|
|
|
15.6 |
|
Change in LIFO Reserve |
|
|
38.9 |
|
|
|
50.5 |
|
Other non-cash activities |
|
|
43.3 |
|
|
|
25.5 |
|
Changes in operating assets and liabilities, net: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(13.1 |
) |
|
|
37.1 |
|
Inventories |
|
|
(122.7 |
) |
|
|
257.2 |
|
Income taxes receivable |
|
|
(49.7 |
) |
|
|
(32.5 |
) |
Prepaid expenses and other assets |
|
|
64.7 |
|
|
|
(71.2 |
) |
Trade accounts payable and outstanding checks in excess of deposits |
|
|
263.1 |
|
|
|
27.8 |
|
Accrued expenses and other liabilities |
|
|
(147.0 |
) |
|
|
(34.6 |
) |
Net cash provided by operating activities |
|
|
827.1 |
|
|
|
956.7 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property, plant and equipment |
|
|
(332.7 |
) |
|
|
(244.4 |
) |
Net cash paid for acquisitions |
|
|
(2,552.9 |
) |
|
|
(307.9 |
) |
Proceeds from sale of property, plant and equipment and other |
|
|
10.5 |
|
|
|
19.3 |
|
Net cash used in investing activities |
|
|
(2,875.1 |
) |
|
|
(533.0 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net borrowings (payments) under ABL Facility |
|
|
1,229.7 |
|
|
|
(249.1 |
) |
Borrowing of Notes due 2032 |
|
|
1,000.0 |
|
|
|
— |
|
Cash paid for debt issuance, extinguishment and modifications |
|
|
(34.2 |
) |
|
|
— |
|
Payments under finance lease obligations |
|
|
(135.4 |
) |
|
|
(87.8 |
) |
Proceeds from exercise of stock options and employee stock purchase plan |
|
|
40.8 |
|
|
|
17.2 |
|
Cash paid for shares withheld to cover taxes |
|
|
(18.7 |
) |
|
|
(21.5 |
) |
Repurchases of common stock |
|
|
(43.6 |
) |
|
|
(78.1 |
) |
Other financing activities |
|
|
— |
|
|
|
(0.3 |
) |
Net cash provided by (used in) financing activities |
|
|
2,038.6 |
|
|
|
(419.6 |
) |
Net (decrease) increase in cash and restricted cash |
|
|
(9.4 |
) |
|
|
4.1 |
|
Cash and restricted cash, beginning of period |
|
|
27.7 |
|
|
|
20.0 |
|
Cash and restricted cash, end of period |
|
$ |
18.3 |
|
|
$ |
24.1 |
|
The following table provides a reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:
(In millions) |
|
As of
|
|
|
As of
|
|
||
Cash |
|
$ |
10.2 |
|
|
$ |
20.0 |
|
Restricted cash(1) |
|
|
8.1 |
|
|
|
7.7 |
|
Total cash and restricted cash |
|
$ |
18.3 |
|
|
$ |
27.7 |
|
(1) |
Restricted cash is reported within Other assets and represents the amounts required by insurers to collateralize a part of the deductibles for the Company’s workers’ compensation and liability claims. |
Supplemental disclosures of cash flow information: |
||||||||
($ in millions) |
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
||
Cash paid during the year for: |
|
|
|
|
|
|
||
Interest net of amounts capitalized |
|
$ |
260.3 |
|
|
$ |
173.4 |
|
Income tax payments net of refunds |
|
|
111.1 |
|
|
|
137.0 |
|
Statement Regarding Non-GAAP Financial Measures
This earnings release and the accompanying financial statement tables include several financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow. Such measures are not recognized terms under GAAP, should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and are not indicative of net income as determined under GAAP. Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate PFG’s liquidity or financial performance. Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow, as presented, may not be comparable to similarly titled measures of other companies because of varying methods of calculation.
PFG uses Adjusted EBITDA to evaluate the performance of its business on a consistent basis over time and for business planning purposes. In addition, targets based on Adjusted EBITDA are among the measures we use to evaluate our management’s performance for purposes of determining their compensation under our incentive plans. PFG believes that the presentation of Adjusted EBITDA enhances an investor’s understanding of PFG’s performance. PFG believes this measure is a useful metric to assess PFG’s operating performance from period to period by excluding certain items that PFG believes are not representative of PFG’s core business.
Management measures operating performance based on our Adjusted EBITDA, defined as net income before interest expense, interest income, income and franchise taxes, and depreciation and amortization, further adjusted to exclude certain items we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction and other adjustment items permitted in calculating covenant compliance under PFG’s
Management also uses Adjusted Diluted EPS, which is calculated by adjusting the most directly comparable GAAP financial measure by excluding the same items excluded in PFG’s calculation of Adjusted EBITDA, as well as amortization of intangible assets, to the extent that each such item was included in the applicable GAAP financial measure. For business combinations, the Company generally allocates a portion of the purchase price to intangible assets and such intangible assets contribute to revenue generation. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization over the useful lives of the intangible assets. The amount of the purchase price from an acquisition allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition, and thus the Company does not believe it is reflective of ongoing operations. Intangible asset amortization excluded from Adjusted Diluted EPS represents the entire amount recorded within the Company’s GAAP financial statements; whereas, the revenue generated by the associated intangible assets has not been excluded from Adjusted Diluted EPS. Intangible asset amortization is excluded from Adjusted Diluted EPS because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired, or the estimated useful life of an intangible asset is revised.
Management also uses Free Cash Flow, which is defined as net cash provided by operating activities less capital expenditures (purchases of property, plant, and equipment). PFG also believes that the presentation of Free Cash Flow enhances an investor’s understanding of PFG’s ability to make strategic investments and manage debt levels.
PFG believes that the presentation of Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow is useful to investors because these metrics provide insight into underlying business trends and year-over-year results and are frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies in PFG’s industry.
The following tables include a reconciliation of non-GAAP financial measures to the applicable most comparable GAAP financial measures.
Non-GAAP Reconciliation (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
($ in millions, except per share data) |
|
|
|
|
|
|
|
Change |
|
|
% |
|
||||
Net income (GAAP) |
|
$ |
58.3 |
|
|
$ |
70.4 |
|
|
$ |
(12.1 |
) |
|
|
(17.2 |
) |
Interest expense, net |
|
|
96.9 |
|
|
|
57.1 |
|
|
|
39.8 |
|
|
|
69.7 |
|
Income tax expense |
|
|
20.2 |
|
|
|
26.4 |
|
|
|
(6.2 |
) |
|
|
(23.5 |
) |
Depreciation |
|
|
117.6 |
|
|
|
90.7 |
|
|
|
26.9 |
|
|
|
29.7 |
|
Amortization of intangible assets |
|
|
69.3 |
|
|
|
48.6 |
|
|
|
20.7 |
|
|
|
42.6 |
|
Change in LIFO reserve (A) |
|
|
8.4 |
|
|
|
9.5 |
|
|
|
(1.1 |
) |
|
|
(11.6 |
) |
Stock-based compensation expense |
|
|
12.6 |
|
|
|
10.0 |
|
|
|
2.6 |
|
|
|
26.0 |
|
(Gain) loss on fuel derivatives |
|
|
(0.2 |
) |
|
|
(0.6 |
) |
|
|
0.4 |
|
|
|
66.7 |
|
Acquisition, integration & reorganization expenses (B) |
|
|
5.8 |
|
|
|
5.4 |
|
|
|
0.4 |
|
|
|
7.4 |
|
Other adjustments (C) |
|
|
(3.8 |
) |
|
|
3.2 |
|
|
|
(7.0 |
) |
|
|
(218.8 |
) |
Adjusted EBITDA (Non-GAAP) |
|
$ |
385.1 |
|
|
$ |
320.7 |
|
|
$ |
64.4 |
|
|
|
20.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share (GAAP) |
|
$ |
0.37 |
|
|
$ |
0.45 |
|
|
$ |
(0.08 |
) |
|
|
(17.8 |
) |
Impact of amortization of intangible assets |
|
|
0.44 |
|
|
|
0.31 |
|
|
|
0.13 |
|
|
|
41.9 |
|
Impact of change in LIFO reserve |
|
|
0.05 |
|
|
|
0.06 |
|
|
|
(0.01 |
) |
|
|
(16.7 |
) |
Impact of stock-based compensation expense |
|
|
0.08 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
33.3 |
|
Impact of (gain) loss on fuel derivatives |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impact of acquisition, integration & reorganization charges |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
Impact of other adjustment items |
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(0.04 |
) |
|
|
(200.0 |
) |
Tax impact of above adjustments |
|
|
(0.17 |
) |
|
|
(0.14 |
) |
|
|
(0.03 |
) |
|
|
(21.4 |
) |
Adjusted Diluted Earnings per Share (Non-GAAP) |
|
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
(0.01 |
) |
|
|
(1.3 |
) |
A. |
Includes increases in the last-in-first-out (“LIFO”) inventory reserve of |
B. |
Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. |
C. |
Includes a |
Non-GAAP Reconciliation (Unaudited) |
||||||||||||||||
|
|
Nine Months Ended |
|
|||||||||||||
($ in millions, except per share data) |
|
|
|
|
|
|
|
Change |
|
|
% |
|
||||
Net income (GAAP) |
|
$ |
208.7 |
|
|
$ |
269.4 |
|
|
$ |
(60.7 |
) |
|
|
(22.5 |
) |
Interest expense, net |
|
|
263.9 |
|
|
|
174.6 |
|
|
|
89.3 |
|
|
|
51.1 |
|
Income tax expense |
|
|
73.4 |
|
|
|
102.4 |
|
|
|
(29.0 |
) |
|
|
(28.3 |
) |
Depreciation |
|
|
329.1 |
|
|
|
260.8 |
|
|
|
68.3 |
|
|
|
26.2 |
|
Amortization of intangible assets |
|
|
193.2 |
|
|
|
151.1 |
|
|
|
42.1 |
|
|
|
27.9 |
|
Change in LIFO reserve (A) |
|
|
38.9 |
|
|
|
50.5 |
|
|
|
(11.6 |
) |
|
|
(23.0 |
) |
Stock-based compensation expense |
|
|
35.6 |
|
|
|
31.7 |
|
|
|
3.9 |
|
|
|
12.3 |
|
Loss (gain) on fuel derivatives |
|
|
0.4 |
|
|
|
(2.3 |
) |
|
|
2.7 |
|
|
|
117.4 |
|
Acquisition, integration & reorganization expenses (B) |
|
|
76.2 |
|
|
|
19.1 |
|
|
|
57.1 |
|
|
|
299.0 |
|
Other adjustments (C) |
|
|
0.6 |
|
|
|
(7.4 |
) |
|
|
8.0 |
|
|
|
108.1 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
1,220.0 |
|
|
$ |
1,049.9 |
|
|
$ |
170.1 |
|
|
|
16.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted earnings per share (GAAP) |
|
$ |
1.34 |
|
|
$ |
1.72 |
|
|
$ |
(0.38 |
) |
|
|
(22.1 |
) |
Impact of amortization of intangible assets |
|
|
1.24 |
|
|
|
0.97 |
|
|
|
0.27 |
|
|
|
27.8 |
|
Impact of change in LIFO reserve |
|
|
0.25 |
|
|
|
0.32 |
|
|
|
(0.07 |
) |
|
|
(21.9 |
) |
Impact of stock-based compensation |
|
|
0.22 |
|
|
|
0.20 |
|
|
|
0.02 |
|
|
|
10.0 |
|
Impact of loss (gain) on fuel derivatives |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
100.0 |
|
Impact of acquisition, integration & reorganization charges |
|
|
0.49 |
|
|
|
0.12 |
|
|
|
0.37 |
|
|
|
308.3 |
|
Impact of other adjustment items |
|
|
— |
|
|
|
(0.05 |
) |
|
|
0.05 |
|
|
|
100.0 |
|
Tax impact of above adjustments |
|
|
(0.62 |
) |
|
|
(0.42 |
) |
|
|
(0.20 |
) |
|
|
(47.6 |
) |
Adjusted Diluted Earnings per Share (Non-GAAP) |
|
$ |
2.92 |
|
|
$ |
2.85 |
|
|
$ |
0.07 |
|
|
|
2.5 |
|
A. |
Includes increases in the LIFO inventory reserve of |
B. |
Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. |
C. |
Includes a |
(In millions) |
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
||
Net cash provided by operating activities (GAAP) |
|
$ |
827.1 |
|
|
$ |
956.7 |
|
Purchases of property, plant and equipment |
|
|
(332.7 |
) |
|
|
(244.4 |
) |
Free cash flow (Non-GAAP) |
|
$ |
494.4 |
|
|
$ |
712.3 |
|
Segment Results
In the third quarter of fiscal 2025, the Company changed its operating segments to reflect the manner in which the business is managed. The Company continues to have three reportable segments: Foodservice, Specialty (formerly Vistar), and Convenience. Management evaluates the performance of these segments based on various operating and financial metrics, including their respective sales growth and Segment Adjusted EBITDA, which is the Company’s GAAP measure of segment profit. Segment Adjusted EBITDA is defined as net income before interest expense, interest income, income taxes, depreciation, and amortization and excludes certain items that the Company does not consider part of its segments’ core operating results, including stock-based compensation expense, changes in the LIFO reserve, acquisition, integration and reorganization expenses, and gains and losses related to fuel derivatives.
Corporate & All Other is comprised of corporate overhead and certain operations that are not considered separate reportable segments based on their size. This includes the operations of our internal logistics unit responsible for managing and allocating inbound logistics revenue and expense.
The presentation and amounts for the three and nine months ended
The following tables set forth net sales and Segment Adjusted EBITDA by segment for the periods indicated (dollars in millions):
|
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
|
|
|
|
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
8,374.5 |
|
|
$ |
7,023.0 |
|
|
$ |
1,351.5 |
|
|
|
19.2 |
|
Specialty |
|
|
1,131.2 |
|
|
|
1,133.8 |
|
|
|
(2.6 |
) |
|
|
(0.2 |
) |
Convenience |
|
|
5,740.0 |
|
|
|
5,640.1 |
|
|
|
99.9 |
|
|
|
1.8 |
|
Corporate & All Other |
|
|
221.5 |
|
|
|
224.1 |
|
|
|
(2.6 |
) |
|
|
(1.2 |
) |
Intersegment Eliminations |
|
|
(160.9 |
) |
|
|
(163.3 |
) |
|
|
2.4 |
|
|
|
1.5 |
|
Total net sales |
|
$ |
15,306.3 |
|
|
$ |
13,857.7 |
|
|
$ |
1,448.6 |
|
|
|
10.5 |
|
|
|
Nine Months Ended |
|
|||||||||||||
|
|
|
|
|
|
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
24,454.6 |
|
|
$ |
21,400.4 |
|
|
$ |
3,054.2 |
|
|
|
14.3 |
|
Specialty |
|
|
3,651.5 |
|
|
|
3,586.1 |
|
|
|
65.4 |
|
|
|
1.8 |
|
Convenience |
|
|
18,071.2 |
|
|
|
17,918.5 |
|
|
|
152.7 |
|
|
|
0.9 |
|
Corporate & All Other |
|
|
698.1 |
|
|
|
671.1 |
|
|
|
27.0 |
|
|
|
4.0 |
|
Intersegment Eliminations |
|
|
(515.4 |
) |
|
|
(484.1 |
) |
|
|
(31.3 |
) |
|
|
(6.5 |
) |
Total net sales |
|
$ |
46,360.0 |
|
|
$ |
43,092.0 |
|
|
$ |
3,268.0 |
|
|
|
7.6 |
|
Segment Adjusted EBITDA |
||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||
|
|
|
|
|
|
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
275.0 |
|
|
$ |
213.2 |
|
|
$ |
61.8 |
|
|
|
29.0 |
|
Specialty |
|
|
77.9 |
|
|
|
72.9 |
|
|
|
5.0 |
|
|
|
6.9 |
|
Convenience |
|
|
74.7 |
|
|
|
70.9 |
|
|
|
3.8 |
|
|
|
5.4 |
|
Corporate & All Other |
|
|
(42.5 |
) |
|
|
(36.3 |
) |
|
|
(6.2 |
) |
|
|
(17.1 |
) |
Total Adjusted EBITDA |
|
$ |
385.1 |
|
|
$ |
320.7 |
|
|
$ |
64.4 |
|
|
|
20.1 |
|
|
|
Nine Months Ended |
|
|||||||||||||
|
|
|
|
|
|
|
|
Change |
|
|
% |
|
||||
Foodservice |
|
$ |
834.7 |
|
|
$ |
675.9 |
|
|
$ |
158.8 |
|
|
|
23.5 |
|
Specialty |
|
|
255.0 |
|
|
|
255.1 |
|
|
|
(0.1 |
) |
|
|
(0.0 |
) |
Convenience |
|
|
287.3 |
|
|
|
249.1 |
|
|
|
38.2 |
|
|
|
15.3 |
|
Corporate & All Other |
|
|
(157.0 |
) |
|
|
(130.2 |
) |
|
|
(26.8 |
) |
|
|
(20.6 |
) |
Total Adjusted EBITDA |
|
$ |
1,220.0 |
|
|
$ |
1,049.9 |
|
|
$ |
170.1 |
|
|
|
16.2 |
|
Recast Quarterly |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Foodservice |
|
|
7,701.5 |
|
|
|
8,378.6 |
|
Specialty |
|
|
1,285.7 |
|
|
|
1,234.6 |
|
Convenience |
|
|
6,363.7 |
|
|
|
5,967.5 |
|
Corporate & All Other |
|
|
246.7 |
|
|
|
229.9 |
|
Intersegment Eliminations |
|
|
(182.1 |
) |
|
|
(172.4 |
) |
Total net sales |
|
$ |
15,415.5 |
|
|
$ |
15,638.2 |
|
|
|
|
|
|
|
|
||
Adjusted EBITDA |
|
|
|
|
|
|
||
Foodservice |
|
|
274.6 |
|
|
|
285.1 |
|
Specialty |
|
|
83.2 |
|
|
|
93.9 |
|
Convenience |
|
|
105.3 |
|
|
|
107.3 |
|
Corporate & All Other |
|
|
(51.2 |
) |
|
|
(63.3 |
) |
Total Adjusted EBITDA |
|
$ |
411.9 |
|
|
$ |
423.0 |
|
|
|
Three Months Ended |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foodservice |
|
|
7,288.4 |
|
|
|
7,089.0 |
|
|
|
7,023.0 |
|
|
|
7,661.1 |
|
Specialty |
|
|
1,250.4 |
|
|
|
1,201.9 |
|
|
|
1,133.8 |
|
|
|
1,203.7 |
|
Convenience |
|
|
6,337.0 |
|
|
|
5,941.4 |
|
|
|
5,640.1 |
|
|
|
6,258.5 |
|
Corporate & All Other |
|
|
229.0 |
|
|
|
218.0 |
|
|
|
224.1 |
|
|
|
238.1 |
|
Intersegment Eliminations |
|
|
(166.2 |
) |
|
|
(154.6 |
) |
|
|
(163.3 |
) |
|
|
(172.2 |
) |
Total net sales |
|
$ |
14,938.6 |
|
|
$ |
14,295.7 |
|
|
$ |
13,857.7 |
|
|
$ |
15,189.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foodservice |
|
|
242.6 |
|
|
|
220.1 |
|
|
|
213.2 |
|
|
|
306.3 |
|
Specialty |
|
|
88.6 |
|
|
|
93.6 |
|
|
|
72.9 |
|
|
|
85.5 |
|
Convenience |
|
|
94.7 |
|
|
|
83.5 |
|
|
|
70.9 |
|
|
|
114.5 |
|
Corporate & All Other |
|
|
(42.1 |
) |
|
|
(51.8 |
) |
|
|
(36.3 |
) |
|
|
(50.1 |
) |
Total Adjusted EBITDA |
|
$ |
383.8 |
|
|
$ |
345.4 |
|
|
$ |
320.7 |
|
|
$ |
456.2 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250507230535/en/
Investors:
SVP, Investor Relations
(804) 287-8108
Bill.Marshall@pfgc.com
Media:
Director, Communications & Engagement
(804) 484-7873
Scott.Golden@pfgc.com
Source: