Performance Food Group Company (NYSE: PFGC) shares went for a nose dive as the company reported quarterly earnings Wednesday.
The Richmond, Virginia-based firm reported fourth-quarter net sales increased 3.7% to $4.6 billion. Net income grew 59.4% to $64.4 million.
For the full fiscal year, net sales increased 5.1% to $17.6 billion. Net income grew 106.3% to $198.7 million.
According to CEO George Holm, "Vistar had an exceptional year as the strategic investments we made 18 months ago paid dividends in the fourth quarter and will fuel growth in the coming years. In Performance Foodservice, we are making strategic investments in people and technology to support our growth objectives.
"Looking ahead, we believe we are well-positioned across our businesses for another fiscal year of double-digit adjusted earnings growth."
For fiscal 2018, PFG generated $367.0 million in cash flow from operating activities, an increase of $165.3 million versus the prior year period. The improvement in cash flow from operating activities was largely driven by higher operating income, lower taxes paid and improvements in working capital.
For fiscal 2018, PFG invested $140.1 million in capital expenditures, in line with capital spending versus prior year. PFG delivered free cash flow of $226.9 million, an increase of approximately $165.4 million.
For fiscal 2019, PFG expects Adjusted EBITDA growth to be in a range of 7% to 10% over its fiscal 2018 Adjusted EBITDA of $426.7 million. The company expects that the 7% to 10% Adjusted EBITDA growth for fiscal 2019 will reflect first half growth in the low-to-mid single-digit range.
Shares let go of $4.85, or 12.9%, to $32.80
