Performance Food Group Company (PFGC) has said the profit for the quarter ended Oct. 01, 2016 was unchanged at $12.20 million or $0.12 a share, when compared with the last year period. On an adjusted basis, earnings per share were at $0.20 for the quarter compared with $0.21 in the same period last year. Revenue during the quarter went up marginally by 2.98 percent to $4,046.10 million from $3,928.90 million in the previous year period. Gross margin for the quarter expanded 39 basis points over the previous year period to 12.64 percent. Total expenses were 99.22 percent of quarterly revenues, up from 98.88 percent for the same period last year. That has resulted in a contraction of 34 basis points in operating margin to 0.78 percent.
Operating income for the quarter was $31.60 million, compared with $44 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $76 million compared with $80.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 16 basis points in the quarter to 1.88 percent from 2.04 percent in the last year period.
“Our underlying business performed well in the quarter,” said George Holm, PFG’s President and Chief Executive Officer. “Our Performance Foodservice segment reported strong independent case growth of 8%. However, we experienced an increase in new business transition costs and corporate expenses during the quarter, leading to Adjusted EBITDA coming in below our expectations.”
Operating cash flow remains negative
Performance Food Group Company has spent $75.20 million cash to meet operating activities during the quarter as against cash outgo of $25.90 million in the last year period. The company has spent $49.50 million cash to meet investing activities during the quarter as against cash outgo of $26.40 million in the last year period.
Cash flow from financing activities was $122.70 million for the quarter, up 124.73 percent or $68.10 million, when compared with the last year period.
Cash and cash equivalents stood at $8.90 million as on Oct. 01, 2016, down 22.61 percent or $2.60 million from $11.50 million on Sep. 26, 2015.
Working capital increases
Performance Food Group Company has recorded an increase in the working capital over the last year. It stood at $749.50 million as at Oct. 01, 2016, up 7.78 percent or $54.10 million from $695.40 million on Sep. 26, 2015. Current ratio was at 1.60 as on Oct. 01, 2016, up from 1.57 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 12 days for the last year period. Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 12 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 13 days for the quarter from 11 for the same period last year.
Debt comes down
Performance Food Group Company has recorded a decline in total debt over the last one year. It stood at $1,266.60 million as on Oct. 01, 2016, down 15.40 percent or $230.60 million from $1,497.20 million on Sep. 26, 2015. Total debt was 35.90 percent of total assets as on Oct. 01, 2016, compared with 43.97 percent on Sep. 26, 2015. Debt to equity ratio was at 1.54 as on Oct. 01, 2016, down from 2.96 as on Sep. 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
