On Aug. 12 before the market opened, Performance Food Group Co. (PFGC, Financial) released its fiscal fourth-quarter 2020 financial results. While earnings came in below analysts' expectations, revenue exceeded projections.
By the numbers
The Richmond, Virginia-based company posted net income for the quarter of $151.2 million, translating to a loss per share of $1.19. The adjusted loss stood at 86 cents vs. the loss per share of 1 cent that analysts predicted. Revenue came in at $5.77 billion for the period, down from $5.90 billion recorded in the same period a year earlier. Revenue surpassed projections by 28%.
The full-year 2020 net loss amounted to $114.1 million, or $1.01 per share. Revenue totalled $25.09 billion, up 27.1% from the prior fiscal year.
President and CEO George Holm commented the following on the earnings report:
"While our fiscal fourth quarter was challenging, I am pleased with our business recovery and momentum. Our weekly sales trends have improved significantly from the March lows and we are seeing notable market share gains in many of our key markets. Our business is in a strong financial position due to working capital management and capital market activity. By continuing to focus on our customer relationships and high levels of service while managing our cost base and cash flow, I believe we will be a stronger organization when we emerge from these difficult times."
Segment details
In the Foodservice segment, sales rose 0.8% to $4 billion, largely driven by the acquisition of Reinhart, which is one of the largest food service distributors in the U.S. The acquisition contributed around $1.7 billion towards net sales. Ebitda tumbled 79.6% to $27 million. By contrast, gross profit was 0.7% higher than the previous year thanks to the Reinhart buy.
Fourth quarter net sales for the Vistar division totalled $1.8 million, which plummeted approximately 8% as compared to the prior-year quarter. The acquisition of Eby-Brown, which is a leading distributor of pre-packaged candy, snacks, specialty beverages and tobacco products in the convenience industry, contributed $376.8 million to net sales. This was negated by the negative impact of Covid-19. Ebitda declined 313.8% to -$110.3 million, while gross profit was down 35.2% versus the prior-year period.
Financials and capital expenditure
At the end of fiscal 2020, the company had total liquidity of $2.1 billion, indluding $420.7 million of cash on hand and $1.7 billion in debt availaible under its Asset-Based Lending Facility.
In fiscal 2020, the company's capital spending was $158 million, up $18.9 million compared to the prior year.
Guidance
The company refrained from providing fiscal 2021 guidance.
Disclosure: I do not hold any positions in the stocks mentioned.
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