Performance Food Group Company reported unaudited consolidated earnings results for the fourth quarter and full year ended July 2, 2016. For the quarter, the company reported net sales for the fourth quarter of fiscal 2016 were $4.4 billion, an increase of 9.8% versus the comparable prior year period. Excluding the extra week, net sales in the fourth quarter would have increased 1.9%. Net income decreased 14.6% to $29.2 million for the fourth quarter of 2016 compared to net income of $34.2 million in the prior year period. The decrease was driven by the $25 million fee benefit recognized in the fourth quarter of fiscal 2015 related to the termination of the agreement to acquire 11 US Foods facilities as a part of the proposed merger of Sysco and US Foods. Diluted earnings per share decreased 25.6% in the fourth quarter of fiscal 2016 over the prior year period, to $0.29. Adjusted diluted EPS advanced 5.6% in the fourth quarter over the prior year period, to $0.38 per share. EBITDA decreased 8.4% in the fourth quarter of fiscal 2016 compared to the prior year period, to $99.1 million. For the quarter, Adjusted EBITDA increased 11.9% to $114.7 million compared to the prior year. Operating profit was $66.8 million against $53.2 million a year ago. Income before taxes was $48.7 million against $57.5 million a year ago.

For the full year, the company reported net sales for fiscal 2016 increased 5.5% to $16.1 billion. Excluding the extra week, net sales in fiscal 2016 would have increased 3.4%. For the fourth quarter and fiscal 2016, the net sales growth was driven by the extra week in the fourth quarter of fiscal year 2016; case growth in Performance Foodservice (PFS), particularly in the Street channel; and case growth in Vistar, particularly in its retail, theater, vending, and hospitality channels. Net income increased 20.9% to $68.3 million for fiscal 2016 compared to net income of $56.5 million in the prior year period. The increase was driven by the extra week, an increase in operating profit, and a decrease in interest expense. Diluted earnings per share grew 9.4% in fiscal 2016 over the prior year, to $0.70. Adjusted diluted EPS increased 23.5% in the fiscal 2016 over the prior year, to $1.00 per share. For fiscal 2016, EBITDA increased 4.4% compared to the prior year, to $317.0 million. Adjusted EBITDA was $366.6 million, or an 11.6% increase for fiscal 2016 compared to the prior year. For fiscal 2016, PFG delivered $234.9 million in cash flow from operating activities, an improvement of $107.5 million versus the prior year. PFG's net debt at the end of the fourth quarter stood at $1,134.6 million, a decline of $278.8 million versus the end of the prior fiscal year. For fiscal 2016, the Company invested $119.7 million in capital expenditures, or 0.7% of fiscal 2016 net sales, an increase of $21.1 million versus the prior year. Operating profit was $202.2 million against $160.1 million a year ago. Income before taxes was $114.5 million against $96.6 million a year ago.

For fiscal 2017, the company expects Adjusted EBITDA growth to be in a range of 7% to 10% on a 52 week to 52 week basis and 5% to 8% 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. PFG expects fiscal 2017 Adjusted Diluted EPS to grow in a range of 31% to 36% to $1.27 to $1.32 on a 52 week to 52 week basis versus a comparable Fiscal 2016 Adjusted Diluted EPS of $0.97. PFG also expects fiscal 2017 Adjusted Diluted EPS to grow in the range of 27% to 32% to $1.27 to $1.32 on a 52 week to 53 week basis versus a comparable 53 week fiscal 2016 Adjusted Diluted EPS of $1.00. Organic case growth in a range of 4% to 7%; Interest expense in the range of approximately $50 million to $60 million; and An effective tax rate on operations of approximately 40%. PFG also expects capital expenditures for fiscal 2017 will be between $140 million and $160 million, while depreciation and amortization is expected to be between $110 million to $125 million. The fiscal 2017 capital expenditures estimate is higher than fiscal 2016 because of the timing of certain projects begun in fiscal 2016.