Performance Food pany(US:PFGC)2024-11-06 12:00Revenue and Sales Performance - Total case volume increased 2.6% in Q1 fiscal 2025, with independent foodservice case volume growing 7.8% and organic independent foodservice case volume up 4.3%[1][3] - Net sales grew 3.2% to $15.4 billion in Q1 fiscal 2025, driven by acquisitions, case volume growth, and inflation-driven price increases[1][4] - Net sales increased to $15,415.5 million in Q3 2024, up 3.2% from $14,938.6 million in Q3 2023[25] - Total net sales for Q3 2024 were $15,415.5 million, an increase of 3.2% compared to $14,938.6 million in Q3 2023[40] - Foodservice segment net sales increased 5.7% to $7.7 billion in Q1 fiscal 2025, with independent sales representing 41.7% of total segment sales[11] - Foodservice segment net sales for Q3 2024 were $7,692.1 million, an increase of 5.7% compared to $7,277.0 million in Q3 2023[40] - Vistar segment net sales for Q3 2024 were $1,285.7 million, an increase of 2.8% compared to $1,250.4 million in Q3 2023[40] - Convenience segment net sales for Q3 2024 were $6,363.7 million, an increase of 0.4% compared to $6,337.0 million in Q3 2023[40] Profitability and Margins - Gross profit increased 6.1% to $1.8 billion in Q1 fiscal 2025, primarily due to acquisitions, procurement efficiencies, and favorable product mix[1][5] - Gross profit rose to $1,764.2 million in Q3 2024, a 6.1% increase from $1,662.9 million in Q3 2023[25] - Net income decreased 10.5% to $108.0 million in Q1 fiscal 2025, impacted by higher operating expenses and interest costs[1][7] - Net income decreased to $108.0 million in Q3 2024, down 10.5% from $120.7 million in Q3 2023[25] - Net income (GAAP) for Q3 2024 was $108.0 million, a decrease of 10.5% compared to $120.7 million in Q3 2023[37] Adjusted EBITDA and Segment Performance - Adjusted EBITDA rose 7.3% to $411.9 million in Q1 fiscal 2025, with Foodservice segment Adjusted EBITDA up 13.8% to $280.0 million[1][8][12] - Adjusted EBITDA (Non-GAAP) for Q3 2024 was $411.9 million, an increase of 7.3% compared to $383.8 million in Q3 2023[37] - Foodservice Segment Adjusted EBITDA for Q3 2024 was $280.0 million, an increase of 13.8% compared to $246.0 million in Q3 2023[41] - Vistar Segment Adjusted EBITDA for Q3 2024 was $83.2 million, a decrease of 6.1% compared to $88.6 million in Q3 2023[41] - Convenience Segment Adjusted EBITDA for Q3 2024 was $105.3 million, an increase of 11.2% compared to $94.7 million in Q3 2023[41] - Vistar segment Adjusted EBITDA decreased 6.1% to $83.2 million in Q1 fiscal 2025, impacted by a 20.2% increase in operating expenses[13] Cash Flow and Financial Position - Operating cash flow decreased to $53.5 million in Q1 fiscal 2025 from $87.1 million in prior year, due to advanced inventory purchases[9] - Net cash provided by operating activities decreased to $53.5 million in Q3 2024, down 38.6% from $87.1 million in Q3 2023[27] - Free cash flow (Non-GAAP) for Q3 2024 was -$43.0 million, compared to $33.9 million in Q3 2023[38] - Capital expenditures increased by $43.3 million to $96.5 million in Q1 fiscal 2025, resulting in negative free cash flow of $43.0 million[10] - Net cash used in investing activities increased to $669.8 million in Q3 2024, up from $266.9 million in Q3 2023, primarily due to acquisitions[27] - Cash and restricted cash increased to $50.3 million as of September 28, 2024, up from $15.2 million as of September 30, 2023[27][28] - Long-term debt increased to $3,926.0 million as of September 28, 2024, up from $3,198.5 million as of June 29, 2024[26] - The company borrowed $1,000.0 million under Notes due 2032 in Q3 2024[27] Future Outlook and Risks - For full fiscal 2025, the company expects net sales of $62.5-$63.5 billion and Adjusted EBITDA of $1.7-$1.8 billion[15] - The Cheney Brothers Acquisition poses risks including potential integration challenges and uncertainty in expected financial performance[23] Key Performance Metrics - Adjusted EBITDA is used as a key performance metric and is tied to the company's $5.0 billion secured credit facility[32]