Performance Food Group (Nasdaq/NM:PFGC)
- Net sales increased 21% to new quarterly high of $794.8 million.
- Net earnings rose 61% to $10.9 million.
- Earnings per share rose 26% to $0.29 per share (diluted).
Performance Food Group (Nasdaq/NM:PFGC) yesterday announced a new quarterly high in net sales and net earnings for the three months ended June 30, 2001.
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Sales for the second quarter of 2001 amounted to $794.8 million, up 21% from $654.6 million in the year-earlier period. Net earnings for the quarter increased 61% to $10.9 million compared with $6.7 million a year ago. Net earnings per share for the quarter increased 26% to $0.29 per share diluted compared with net earnings of $0.23 per share diluted in the year-earlier quarter. The average number of shares outstanding increased 32% for the second quarter compared to the year-earlier period, due principally to the Company’s secondary offering completed in December 2000. All share and per share figures reflect the 2-for-1 stock split distributed on April 30, 2001.
The Company indicated that net earnings, excluding goodwill amortization, amounted to $0.32 per share diluted for the second quarter, up 28% from a year ago and earnings per share on the same basis for the first half totaled $0.52 per share diluted, up 27% from the year-earlier period.
Robert C. Sledd, chairman and chief executive officer, remarked, “This marks the 26th consecutive quarter in which we have recorded increased net sales and net earnings compared with the year-earlier period. We are very proud of the strong internal gains achieved in each of our business segments, as well as the incremental contribution from acquisitions of complementary foodservice operations. We achieved internal growth of more than 10% in sales for the second quarter. We also benefited from the inclusion of Carroll County Foods and Redi-Cut Foods, which we acquired in the second half of 2000, and this marked the first quarter in which Empire Seafood was included in our results.”
Sledd remarked, “We are continuing to gain market share through our broadline operations that achieved a 24% gain in sales for the quarter. Our marketing emphasis remains on further penetrating existing accounts, continuing to broaden our customer base and increasing sales of our proprietary brands. We are also focused on leveraging our procurement strength with suppliers and continuing to reduce costs and increase productivity. Our broadline operations will benefit nominally in the second half of 2001 from the addition of Springfield Foodservice Corporation, which we expect to complete during the third quarter. Our customized distribution operations recorded a 9% gain in net sales for the quarter. Since we have lapped the addition of the TGI Friday’s account in early 2000, this gain was principally related to the growth of existing customers. We are especially pleased with the improvement in operating margins in this segment, reflecting our continuing work on improving efficiency and reducing costs in our distribution system. Our growth in customized distribution has also come through the selective addition of new accounts, and we expect that trend to continue. Our fresh-cut produce unit recorded a 109% increase in net sales during the second quarter due principally to the addition of Redi-Cut in December 2000. Integration of the Redi-Cut operations with our existing facilities and infrastructure is going very well, and we are excited about the growth potential that we have in one of the fastest growing segments in the foodservice industry.”
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By GlobalDataSledd added, “Based on current trends, we expect to report earnings per share for the full year in line with the upper end of the range of published estimates. The outstanding progress realized thus far in 2001 further validates our fundamental growth strategy and encourages us about the prospects for future progress. We continue to maintain a strong financial position with a debt/capital ratio of 26% at the end of the second quarter.”
Performance Food Group markets and distributes more than 31,000 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. 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, general economic conditions, 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
Unaudited Financial Highlights
Three Months Ended
———————————–
June 30, July 1,
2001 2000
————— —————
Net sales $ 794,822,000 $ 654,603,000
Net earnings $ 10,872,000 $ 6,733,000
Net earnings per share:(1)
Basic $ 0.30 $ 0.24
Diluted $ 0.29 $ 0.23
Weighted average number of
common shares outstanding:(1)
Basic 36,542,000 27,648,000
Diluted 37,857,000 28,770,000
Six Months Ended
———————————–
June 30, July 1,
2001 2000
————— —————
Net sales $ 1,518,297,000 $ 1,234,353,000
Net earnings $ 17,171,000 $ 10,604,000
Net earnings per share:(1)
Basic $ 0.48 $ 0.38
Diluted $ 0.46 $ 0.37
Weighted average number of
common shares outstanding:(1)
Basic 36,066,000 27,862,000
Diluted 37,383,000 28,771,000
(1) All share and per share figures reflect the 2-for-1 stock split
that was distributed to shareholders on April 30, 2001.
Performance Food Group Company
Condensed Consolidated Balance Sheet and Income Statement
June 30, 2001
(In thousands, except net earnings per common share)
June 30, 2001
(Unaudited) Dec. 30, 2000
————— —————
Assets
Cash $ 9,791 $ 18,530
Trade accounts and notes
receivable, net 161,459 167,444
Inventories 143,732 123,586
Other current assets 15,067 14,696
————— —————
Total current assets 330,049 324,256
————— —————
Property, plant and equipment,
net 147,256 143,142
Intangible assets, net 303,228 239,311
Other assets 1,640 2,987
————— —————
Total assets $ 782,173 $ 709,696
=============== ===============
Liabilities and Shareholders’
Equity
Outstanding checks in excess
of deposits $ 17,139 $ 33,330
Current installments of
long-term debt 14,898 1,966
Trade accounts payable 151,571 134,986
Other current liabilities 62,158 57,504
————— —————
Total current liabilities 245,766 227,786
————— —————
Long-term debt, excluding
current installments 127,604 114,492
Deferred income taxes 9,701 9,701
Shareholders’ equity 399,102 357,717
————— —————
Total liabilities and
shareholders’ equity $ 782,173 $ 709,696
=============== ===============
Three Months Ended
June 30, 2001 July 1, 2000
(Unaudited) (Unaudited)
—————— ——————
Net sales $ 794,822 100.0% $ 654,603 100.0%
Cost of goods sold 686,206 86.3% 567,624 86.7%
—————— ——————
Gross profit 108,616 13.7% 86,979 13.3%
Operating expenses 88,446 11.2% 74,591 11.4%
—————— ——————
Operating profit 20,170 2.5% 12,388 1.9%
Other income (expense):
Interest expense (2,161) (1,499)
Other, net (474) (29)
—————— ——————
Other expense, net (2,635) (0.3)% (1,528) (0.2)%
—————— ——————
Earnings before
income taxes 17,535 2.2% 10,860 1.7%
Income taxes 6,663 0.8% 4,127 0.7%
—————— ——————
Net earnings $ 10,872 1.4% $ 6,733 1.0%
================== ==================
Weighted average common
shares outstanding(1) 36,542 27,648
================== ==================
Basic net earnings per
common share (1) $ 0.30 $ 0.24
================== ==================
Weighted average common
shares and dilutive
potential common
shares outstanding(1) 37,857 28,770
================== ==================
Diluted net earnings per
common share(1) $ 0.29 $ 0.23
================== ==================
Six Months Ended
June 30, 2001 July 1, 2000
(Unaudited) (Unaudited)
—————— ——————
Net sales $1,518,297 100.0% $1,234,353 100.0%
Cost of goods sold 1,314,306 86.6% 1,069,965 86.7%
—————— ——————
Gross profit 203,991 13.4% 164,388 13.3%
Operating expenses 172,035 11.3% 144,436 11.7%
—————— ——————
Operating profit 31,956 2.1% 19,952 1.6%
Other income (expense):
Interest expense (3,803) (2,888)
Other, net (458) 40
—————— ——————
Other expense, net (4,261) (0.3)% (2,848) (0.2)%
—————— ——————
Earnings before
income taxes 27,695 1.8% 17,104 1.4%
Income taxes 10,524 0.7% 6,500 0.5%
—————— ——————
Net earnings $ 17,171 1.1% $ 10,604 0.9%
================== ==================
Weighted average common
shares outstanding(1) 36,066 27,862
================== ==================
Basic net earnings per
common share(1) $ 0.48 $ 0.38
================== ==================
Weighted average common
shares and dilutive
potential common
shares outstanding(1) 37,383 28,771
================== ==================
Diluted net earnings per
common share(1) $ 0.46 $ 0.37
================== ==================
(1) All share and per share figures reflect the 2-for-1 stock split
that was distributed to shareholders on April 30, 2001.
