Performance Food Group Q1 Update

TL;DR

**PFGC Q1: Financials out, Vistar segment performing, share repurchases ongoing.**

AI Summary

Performance Food Group Co. reported its first quarter results for the period ending September 28, 2024. The company's financial statements indicate various financial activities and segment performances, including details on their Vistar segment and previously authorized share repurchase programs. Specific dollar amounts and dates related to their financial operations are detailed within the filing.

Why It Matters

This filing provides insight into Performance Food Group's financial health and operational performance for the first quarter, which can influence investor decisions and market perception.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including debt and equity, which can carry inherent financial risks.

Key Numbers

• 2024-09-28 — Reporting Period End Date (Marks the end of the fiscal quarter for which results are reported.)
• 2023-09-30 — Prior Year Period End Date (Used for comparative analysis with the current reporting period.)
• 2024-06-30 — Previous Quarter End Date (Indicates the end of the immediately preceding fiscal quarter.)

Key Players & Entities

• Performance Food Group Co. (company) — Filer of the 10-Q report
• 2024-09-28 (date) — End of the reporting period
• Vistar (company) — Operating segment mentioned
• George L. Holm (person) — Individual mentioned in relation to financial data

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value PFGC New York Stock Excha

Filing Documents

• pfgc-20240928.htm (10-Q) — 1568KB
• pfgc-ex10_2.htm (EX-10.2) — 11KB
• pfgc-ex31_1.htm (EX-31.1) — 13KB
• pfgc-ex31_2.htm (EX-31.2) — 13KB
• pfgc-ex32_1.htm (EX-32.1) — 7KB
• pfgc-ex32_2.htm (EX-32.2) — 7KB
• img133729578_0.jpg (GRAPHIC) — 3KB
• 0000950170-24-122325.txt ( ) — 6982KB
• pfgc-20240928.xsd (EX-101.SCH) — 1047KB
• pfgc-20240928_htm.xml (XML) — 1119KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 5 Item 1.

Financial Statements

Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33

- OTHER INFORMATION

PART II - OTHER INFORMATION 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 36 SIGNATURE 37 2 SPECIAL NOTE REGARDI NG FORWARD-LOOKING STATEMENTS In addition to historical information, this Quarterly Report on Form 10-Q (this "Form 10-Q") may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by those sections. All statements, other than statements of historical facts included in this Form 10-Q, including statements concerning our plans, objectives, goals, beliefs, business strategies, future events, business conditions, our results of operations, financial position, our business outlook, business trends and other information, and integration of our acquisition of Cheney Bros., Inc. (the "Cheney Brothers Acquisition"), are forward-looking statements. Words such as "estimates," "expects," "contemplates," "will," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "may," "should" and variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not historical facts, and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations, beliefs, estimates, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates and projections will result or be achieved, and actual results may vary materially from what is expressed in or indicated

– FINANC IAL INFORMATION

Part I – FINANC IAL INFORMATION

Financi al Statements

Item 1. Financi al Statements PERFORMANCE FOOD GROUP COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except per share data) As of September 28, 2024 As of June 29, 2024 ASSETS Current assets: Cash $ 42.5 $ 20.0 Accounts receivable, less allowances of $ 59.6 and $ 55.2 2,497.0 2,478.9 Inventories, net 3,677.8 3,314.7 Income taxes receivable 27.8 71.6 Prepaid expenses and other current assets 224.6 268.1 Total current assets 6,469.7 6,153.3 Goodwill 2,701.5 2,418.3 Other intangible assets, net 1,241.0 971.1 Property, plant and equipment, net 2,968.3 2,788.5 Operating lease right-of-use assets 862.2 875.5 Other assets 153.8 186.2 Total assets $ 14,396.5 $ 13,392.9 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable and outstanding checks in excess of deposits 2,774.2 2,594.4 Accrued expenses and other current liabilities 770.4 908.3 Finance lease obligations—current installments 161.4 147.2 Operating lease obligations—current installments 107.7 108.2 Total current liabilities 3,813.7 3,758.1 Long-term debt 3,926.0 3,198.5 Deferred income tax liability, net 592.3 497.9 Finance lease obligations, excluding current installments 776.0 703.2 Operating lease obligations, excluding current installments 808.7 819.3 Other long-term liabilities 271.6 289.0 Total liabilities 10,188.3 9,266.0 Commitments and contingencies (Note 10) Shareholders' equity: Common Stock: $ 0.01 par value per share, 1.0 billion shares authorized, 154.5 million shares issued and outstanding as of September 28, 2024; 154.2 million shares issued and outstanding as of June 29, 2024 1.5 1.5 Additional paid-in capital 2,797.2 2,818.5 Accumulated other comprehensive (loss) income, net of tax benefit (expense) of $ 0.3 and ($ 1.5 ) ( 1.4 ) 4.0 Retained earnings 1,410.9 1,30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Summary of Business Activities Business Overview Performance Food Group Company, through its subsidiaries, markets and distributes primarily national and Company-branded food and food-related products to customer locations across North America. The Company serves both of the major customer types in the restaurant industry: (i) independent customers, and (ii) multi-unit, or "Chain" customers, which include some of the most recognizable family and casual dining restaurant chains, as well as schools, business and industry locations, healthcare facilities, and retail establishments. The Company also specializes in distributing candy, snacks, beverages, cigarettes, other tobacco products, health and beauty care products and other items to vending distributors, big box retailers, theaters, convenience stores, drug stores, grocery stores, travel providers, and hospitality providers. Share Repurchase Program In November 2022, the Board of Directors of the Company authorized a share repurchase program for up to $ 300 million of the Company's outstanding common stock. This authorization replaced the previously authorized $ 250 million share repurchase program. The share repurchase program has an expiration date of November 16, 2026 and may be amended, suspended, or discontinued at any time at the Company's discretion, subject to compliance with applicable laws. During the three months ended September 28, 2024, the Company repurchased and subsequently retired 0.4 million shares of common stock, for a total of $ 29.5 million or an average cost of $ 74.69 per share. During the three months ended September 30, 2023 , the Company repurchased and subsequently retired 0.5 million shares of common stock, for a total of $ 28.1 million or an average cost of $ 60.35 per share. As of September 28, 2024, $ 181.1 million remained available for additional share repurchases. 2. Summary of Significant Accounting Policies