Performance Food Group Company reported unaudited consolidated earnings results for the first quarter ended October 1, 2016. For the quarter, the company reported net sales of $4,046.1 million against $3,928.9 million a year ago. Operating profit was $31.6 million against $44.0 million a year ago. Income before taxes was $19.5 million against $20.8 million a year ago. Net income was $12.2 million against $12.2 million a year ago. Basic and diluted earnings per share was $0.12 against $0.14 a year ago. Net cash used in operating activities was $75.2 million against $25.9 million a year ago. Purchases of property, plant and equipment was $34.8 million against $17.7 million a year ago. EBITDA was $61.9 million against $70.0 million a year ago. Adjusted EBITDA (Non-GAAP) was $76.0 million against $80.1 million a year ago. Adjusted diluted earnings per share (Non-GAAP) was $0.20 against $0.21 a year ago. The company's net debt at the end of the first quarter was $1,257.7 million, an increase of $123.1 million compared to the end of the prior fiscal year. For the first quarter of fiscal 2017, the company invested $34.8 million in capital expenditures, or 0.9% of fiscal 2017 first-quarter net sales, an increase of $17.1 million versus the prior year.


Based on the impact of increased new business transition costs and higher corporate expenses during the first quarter of 2017, the company now expects full-year adjusted EBITDA growth to be in the 7% to 9% range on a 52 week to 52 week basis and between 5% to 7% on a 52 week to 53 week basis versus a comparable 53 week fiscal 2016 adjusted EBITDA of $366.6 million. The 53rd week fell in the fourth quarter of fiscal 2016.
Also, due to the first-quarter results and the remaining impact of new business transaction costs and other strategic investments into the second fiscal quarter, the company now expects adjusted EBITDA in the first-half of fiscal 2017 to be down slightly versus the prior year.

Second-half fiscal 2017 adjusted EBITDA growth is expected to be in the mid-to-high teens range versus the second half of fiscal 2016, excluding the extra week.

The company expects fiscal 2017 adjusted diluted EPS to grow in a range of 27% to 31% to $1.23 to $1.27 on a 52 week to 52 week basis versus a comparable fiscal 2016 adjusted diluted EPS of $0.97. The company also expects fiscal 2017 adjusted diluted EPS to grow in the range of 24% to 28% to $1.24 to $1.28 on a 52 week to 53 week basis versus a comparable 53 week fiscal 2016 adjusted diluted EPS of $1.00.