Performance Food Group Company Reports First-Quarter Fiscal 2017 Results

Performance Food Group Company ("PFG") (NYSE: PFGC) today announced its first-quarter fiscal 2017 business results.

"Our underlying business performed well in the quarter," said George Holm, PFG's President and Chief Executive Officer. "Our Performance Foodservice segment reported strong independent case growth of 8%. However, we experienced an increase in new business transition costs and corporate expenses during the quarter, leading to Adjusted EBITDA coming in below our expectations."

Holm continued, "Our planned strategic growth investments in PFG Customized and Vistar will continue through the second quarter as we enhance our diverse business model to further provide us with significant growth opportunities in fiscal 2017 and over the next several years."

1 This earnings release includes several metrics, including EBITDA, Adjusted EBITDA and Adjusted Diluted Earnings per Share that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). Please see definitions of such non-GAAP financial measures and reconciliations of such non-GAAP financial measures to their respective most comparable financial measures calculated in accordance with GAAP.

First-Quarter Fiscal 2017 Financial Summary

Total case volume increased 6.5% in the first quarter of fiscal 2017 compared to the prior year, with underlying organic growth of 5.3%. Total case volume was driven by an 8.0% increase in independent cases, double-digit growth in Performance Brands cases and broad-based growth in Vistar's sales channels.

Net sales for the first quarter of fiscal 2017 were $4.0 billion, an increase of 3.0% versus the comparable prior year period. Gross profit for the first quarter of fiscal 2017 increased 6.3% compared to the prior year period, to $511.3 million. The gross profit increase in the first quarter of fiscal 2017 was fueled by case growth and through selling an improved mix of customer channels and products, specifically to the independent channel. Gross margin as a percentage of net sales was up 40 basis points to 12.6%

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