Performance Food Group Company reports expected Q1 net loss and Adjusted EBITDA

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Performance Food Group Co (NYSE: PFGC) today announced Estimated Third Quarter 2020 Financial Results. Below is the statement from the company submitted to SEC on Wednesday April 15.

The following presents selected preliminary unaudited financial results as of, and for, the three months ended March 28, 2020. PFGC consolidated financial statements as of, and for, the three months ended March 28, 2020, are not yet available. The following information reflects our preliminary estimates based on currently available information. We have provided ranges, rather than specific amounts, for the preliminary results described below primarily because our financial closing procedures for the three months ended March 28, 2020, are not yet complete and, as a result, our final results upon completion of our closing procedures may vary from the preliminary estimates within the ranges described below. We expect to complete our closing procedures with respect to the quarter ended March 28, 2020 after the completion of the Equity Offering. The estimates were prepared by our management, based upon a number of assumptions, in connection with preparation of our financial statements and completion of our preliminary review for the quarter ended March 28, 2020. Additional items that would require material adjustments to the preliminary financial information may yet be identified. In addition, our estimated ranges of net loss and Adjusted EBITDA for the three months ended March 28, 2020 exclude the impact of certain income and expense items which have not been fully reviewed by management and are subject to further adjustments, some of which may be material.

For the three months ended March 28, 2020, we expect to report net sales in the range of $6,990 million to $7,000 million, as compared to $4,689 million for the three months ended March 30, 2019, net loss in the range of $39 million to $47 million, as compared to net income of $32.3 million for the three months ended March 30, 2019 and Adjusted EBITDA in the range of $120 million to $130 million, as compared to $106.1 million for the three months ended March 30, 2019. Although we believe that our business was largely performing in line with guidance through mid-March, we experienced a reduction of approximately 50% in net sales over the last two weeks of our third quarter relative to the same period in the prior year (on a pro forma basis giving effect to the Reinhart and Eby-Brown acquisitions as if they had taken place on January 1, 2019). This trend has continued into April and we expect reduced sales will continue into our fourth quarter and beyond and as the pandemic continues. The expected decrease in our net sales, net income and Adjusted EBITDA compared to the prior periods is primarily due to a decrease in customer demand for our products and industry demand as a result of the measures being taken to reduce the spread of COVID-19, partially offset by relative resilience in the convenience store channel. We expect that the increased proportion of sales from Vistar will lead to contracted margins due to the lesser margins from this business line relative to our other business lines.

Additionally, as of March 28, 2020, we estimate that we had cash of approximately $372 million and an aggregate principal amount of debt outstanding of $3,427 million, which includes $1,809 million of borrowings under our ABL Facility (with an estimated $849 million of availability remaining under our ABL Facility as of March 28, 2020). We also estimate that we had $1.8 billion in inventory, $1.3 billion in accounts receivable and $1.4 billion in accounts payable as of March 28, 2020.