Performance Food Group (NYSE: PFGC) reported Q4 EPS of $0.48, $0.02 worse than the analyst estimate of $0.50. Revenue for the quarter came in at $4.4 billion versus the consensus estimate of $4.46 billion.

Fourth-Quarter Fiscal 2017 Highlights

• Net sales increased 1.3% to $4.4 billion; up 9.1% after adjusting for the extra week1
• Gross profit increased 2.4% to $574.9 million; up 10.3% after adjusting for the extra week1
• Net income increased 38.4% to $40.4 million, up 49.1% after adjusting for the extra week1
• Adjusted EBITDA increased 14.6% to $131.5 million2; up 23.5% after adjusting for the extra week1
• Diluted Earnings Per Share (EPS) increased 34.5% to $0.39; up 44.4% after adjusting for the extra week1
• Adjusted diluted EPS increased 26.3% to $0.482; up 37.1% after adjusting for the extra week1

Fiscal 2018 Outlook

For fiscal 2018, PFG expects Adjusted EBITDA growth to be in a range of 8% to 11% over its fiscal 2017 Adjusted EBITDA of $390.7 million.

The company expects that the 8% to 11% Adjusted EBITDA growth for fiscal 2018 will reflect first-half growth in the range of mid-to-high teens. Second half Adjusted EBITDA growth is expected to be in the mid-single digit range. First- half fiscal 2018 growth is expected to reflect easier comparisons versus the first half of fiscal 2017 as the company laps its strategic investments in Customized and Vistar.

PFG expects fiscal 2018 Adjusted Diluted EPS to grow in a range of 13% to 18% to $1.40 to $1.46 over its fiscal 2017 Adjusted Diluted EPS of $1.24.

This outlook is based on the following annual assumptions:

• Organic case growth in a range of 3% to 5%;
• Interest expense in the range of approximately $55 million to $65 million; and
• An effective tax rate on operations of approximately 40%.
• PFG also expects capital expenditures for fiscal 2018 will be between $160 million and $180 million, while depreciation and amortization is expected to be between $125 million to $135 million. The fiscal 2018 capital expenditures estimate is higher than fiscal 2017 because of the timing of certain projects.

PFG’s Adjusted EBITDA and Adjusted Diluted EPS outlook and full-year forecast for its effective tax rate on operations exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. PFG’s management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, its reported Diluted EPS, and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA and Adjusted Diluted EPS outlook or its effective tax rate on operations forecast. Please see the “Forward-Looking Statements” section of this release for a discussion of certain risks to PFG’s outlook.

For earnings history and earnings-related data on Performance Food Group (PFGC) click here.