Performance Food Group (Nasdaq/NM:PFGC):
- Fourth quarter net earnings increased 34%; diluted net earnings per share of $0.51.
- Fourth quarter net sales increased 23% to $678 million.
Performance Food Group (Nasdaq/NM:PFGC) yesterday announced diluted net earnings per share of $1.82 for the year ended December 30, 2000, a 22% increase over the pro forma diluted net earnings of $1.49 for 1999. Pro forma adjustments for 1999 add back $3.8 million of non-recurring merger expenses for NorthCenter Foodservice, adjust income taxes as if NorthCenter was taxed as a C corporation for income tax purposes rather than as an S corporation prior to the merger and excludes a gain of $768,000 from the sale of an investment. Net sales for 2000 increased 27% to a new high of $2.61 billion, up from $2.06 billion for 1999.
Go deeper with GlobalData
Net earnings per diluted share for the fourth quarter increased 24% to $0.51 compared with $0.41 in the year-earlier quarter. Net earnings for the quarter totaled $7.9 million, up 34% from $5.9 million in the year-earlier quarter. Net sales for the three months ended December 31, 2000 amounted to $678.0 million, up 23% from $552.7 million in the year-earlier quarter.
The Company indicated that net earnings, excluding goodwill amortization, amounted to $0.55 per diluted share for the fourth quarter, up 23% from a year ago, and earnings per share for the year on the same basis totaled $1.97 per diluted share, up 23% from the year-earlier period, excluding nonrecurring gains and merger related items.
“We recorded exceptional progress during 2000,” remarked Robert C. Sledd, chairman and chief executive officer. “The record results for the fourth quarter represented the 24th consecutive period in which net sales and net earnings have increased versus the prior-year period. The gain in net sales is especially impressive considering that only 4% represented incremental volume as a result of acquisitions. Our internal growth is well above that of the overall industry, reflecting the dedication throughout our organization to deliver consistently high customer satisfaction and add more value between our suppliers and the accounts we serve.
Sledd said, “The value of our efforts to translate the Company’s operational progress into increased profitability was demonstrated during the fourth quarter of 2000 by the 34% gain in net earnings. We are focused on improving margins further in each of our operating units. We are increasing the use of technology in all aspects of our business and are also benefiting from increasing sales of our proprietary brands of foodservice items. The added value that these brands offer to customers provides a strong sales advantage that we are using, especially in our broadline operations. This, in turn, is increasing our purchasing leverage and enabling us to form even stronger working relationships with suppliers.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataEach of our business units contributed to the Company’s growth during 2000. Broadline net sales in the fourth quarter amounted to $360.7 million, an increase of 22% over the 1999 quarter. Our broadline business is continuing to show strong gains by increasing its penetration into existing accounts as well as expanding its customer base. Our customized operations reported net sales of $279.3 million, a 24% gain in net sales for the quarter. We now provide our customized multi-unit restaurant customers nationwide service, as well as ship to over 40 countries. Our fresh-cut produce division reported net sales of $38.0 million, a 19% increase for the quarter. We are successfully integrating the acquisition of Redi-Cut Foods and are benefiting from the positive momentum that our new pre-sliced tomatoes are adding to our marketing efforts.”
“The compound annual growth in our share price since the Company’s initial public offering in August 1993 has grown 28%. This demonstrates the expansion potential we have and served as a strong support for our successful secondary offering in December 2000 that raised $124.4 million in additional equity capital for the Company. We ended 2000 with a strong balance sheet, a 25% debt/capital ratio and shareholders’ equity of $357.7 million.”
Performance Food Group markets and distributes more than 25,000 national and private label food and food-related products to approximately 27,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other institutions. For more information on Performance Food Group, visit www.pfgc.com.
Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding anticipated earnings for future periods, sales momentum, customer and product sales mix, expected efficiencies in the Company’s business and the ability of Performance Food Group to realize expected synergies following acquisitions. These statements involve risks and uncertainties and are based on current expectations and management’s estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include, but are not limited to, the relatively low margins and economic sensitivity of the foodservice business, the Company’s reliance on major customers, the ability to identify and successfully complete acquisitions of other foodservice distributors and management of the Company’s planned growth, all as detailed from time to time in the reports filed by the Company with the Securities and Exchange Commission.
PERFORMANCE FOOD GROUP COMPANY
Financial Highlights
Three Months Ended
December 30, January 1,
2000 2000
————————————-
Net sales $677,988,000 $552,677,000
Net earnings $ 7,948,000 $ 5,934,000
Net earnings per share:
Basic $ 0.54 $ 0.42
Diluted $ 0.51 $ 0.41
Weighted average number of
shares outstanding:
Basic 14,825,000 14,112,000
Diluted 15,682,000 14,528,000
Year Ended
December 30, January 1,
2000 2000
————————————-
Net sales $2,605,468,000 $2,055,598,000
Net earnings $ 26,881,000 $ 19,251,000
Net earnings per share:
Basic $ 1.90 $ 1.40
Diluted $ 1.82 $ 1.35
Pro forma net earnings per
share (1)(2):
Basic $ 1.90 $ 1.54
Diluted $ 1.82 $ 1.49
Weighted average number of
shares outstanding:
Basic 14,168,000 13,772,000
Diluted 14,769,000 14,219,000
(1) Pro forma adjustments to net earnings per common share for the
year ended January 1, 2000, which total $0.17 per diluted share,
add back nonrecurring merger expenses and adjust income taxes as
if NorthCenter Foodservice was taxed as a C-corporation for income
tax purposes rather than as an S-corporation prior to the merger
of NorthCenter Foodservice in February 1999.
(2) The year ended January 1, 2000 also excludes a nonrecurring gain
of $768,000, or $0.03 per diluted share, on the sale of an
investment.
Performance Food Group Company
Condensed Consolidated Balance Sheet and Income Statement
December 30, 2000
(In thousands, except net earnings per common share)
Dec. 30, 2000 Jan. 1, 2000
————- ————
Assets
Cash $ 18,530 $ 5,606
Accounts receivable, net 167,444 119,126
Inventory 123,586 108,550
Other current assets 14,696 9,600
————- ————
Total current assets 324,256 242,882
————- ————
Property, plant and
equipment, net 143,142 113,930
Intangible assets, net 239,311 103,328
Other assets 2,987 1,905
————- ————
Total assets $ 709,696 $ 462,045
————- ————
Liabilities and Shareholders’ Equity
Outstanding checks in
excess of deposits $ 33,330 $ 14,082
Current portion of
long-term debt 1,966 703
Accounts payable 134,986 116,821
Other current liabilities 57,504 40,397
————- ————
Total current liabilities 227,786 172,003
————- ————
Notes payable 114,492 92,404
Deferred income taxes 9,701 8,294
Shareholders’ equity 357,717 189,344
————- ————
Total liabilities and
shareholders’ equity $ 709,696 $ 462,045
————- ————
Three Months Ended
Dec. 30, 2000 Jan. 1, 2000
————————————–
Net sales $ 677,988 100.0% $ 552,677 100.0%
Cost of goods sold 583,408 86.0% 475,934 86.1%
————————————–
Gross profit 94,580 14.0% 76,743 13.9%
Operating expenses 79,656 11.8% 65,867 11.9%
————————————–
Operating profit 14,924 2.2% 10,876 2.0%
Other income (expense):
Interest expense (1,989) (1,446)
Nonrecurring merger
expenses – –
Other, net (116) 144
————————————–
Other expense, net (2,105) (0.3)% (1,302) (0.3)%
————————————–
Earnings before income
taxes 12,819 1.9% 9,574 1.7%
Income taxes 4,871 0.7% 3,640 0.6%
————————————–
Net earnings $ 7,948 1.2% $ 5,934 1.1%
======================================
Weighted average common
shares outstanding 14,825 14,112
======================================
Basic net earnings per
common share $ 0.54 $ 0.42
======================================
Weighted average common
shares and common share
equivalents outstanding 15,682 14,528
======================================
Diluted net earnings per
common share $ 0.51 $ 0.41
======================================
Pro forma basic net
earnings per common
share(1)(2) $ 0.54 $ 0.42
======================================
Pro forma diluted net
earnings per common
share(1)(2) $ 0.51 $ 0.41
======================================
Fiscal Year Ended
Dec. 30, 2000 Jan. 1, 2000
—————————————
Net sales $2,605,468 100.0% $2,055,598 100.0%
Cost of goods sold 2,253,277 86.5% 1,773,632 86.3%
—————————————
Gross profit 352,191 13.5% 281,966 13.7%
Operating expenses 302,176 11.6% 242,625 11.8%
—————————————
Operating profit 50,015 1.9% 39,341 1.9%
Other income (expense):
Interest expense (6,593) (5,388)
Nonrecurring merger
expenses – (3,812)
Other, net (66) 1,110
—————————————
Other expense, net (6,659) (0.2)% (8,090) (0.4)%
—————————————
Earnings before income
taxes 43,356 1.7% 31,251 1.5%
Income taxes 16,475 0.7% 12,000 0.6%
—————————————
Net earnings $ 26,881 1.0% $ 19,251 0.9%
=======================================
Weighted average common
shares outstanding 14,168 13,772
=======================================
Basic net earnings per
common share $ 1.90 $ 1.40
=======================================
Weighted average common
shares and common share
equivalents outstanding 14,769 14,219
=======================================
Diluted net earnings per
common share $ 1.82 $ 1.35
=======================================
Pro forma basic net
earnings per common
share(1)(2) $ 1.90 $ 1.54
=======================================
Pro forma diluted net
earnings per common
share(1)(2) $ 1.82 $ 1.49
=======================================
(1) Pro forma adjustments to net earnings per common share for the
year ended January 1, 2000, which total $0.17 per diluted share,
add back nonrecurring merger expenses and adjust income taxes as
if NorthCenter Foodservice was taxed as a C-corporation for income
tax purposes rather than as an S-corporation prior to the merger
of NorthCenter Foodservice in February 1999.
(2) The year ended January 1, 2000 also excludes a nonrecurring gain
of $768,000, or $0.03 per diluted share, on the sale of an
investment.
