Performance Food Group Company reported unaudited consolidated operating and earnings results for the third quarter and nine months ended March 31, 2018. For the quarter, the company reported net sales of $4,349.2 million, operating profit of $60.1 million, income before taxes of $44.8 million, net income of 33.7 million or $0.32 per diluted share against net sales of $4,235.0 million, operating profit of $46.7 million, income before taxes of $32.9 million, net income of $20.8 million or $0.20 per diluted share a year ago. Adjusted diluted EPS increased 25.9% to $0.34 compared to $0.27 a year ago. Net increase in Net Sales were primarily attributable to an increase in selling price per case as a result of inflation and mix. EBITDA was $92.1 million compared to $79.6 million a year ago. Adjusted EBITDA was $95.6 million compared to $89.6 million a year ago.

For the nine months, the company reported net sales of $13,025.2 million, operating profit of $159.7 million, income before taxes of $115.1 million, net income of $134.3 million or $1.294 per diluted share against net sales of $12,332.9 million, operating profit of $129.6 million, income before taxes of $90.6 million, net income of $55.9 million or $0.54 per diluted share a year ago. Net cash used in operating activities of $229.6 million compared to $102.0 million a year ago. Purchases of property, plant and equipment of $73.2 million compared to $106.6 a year ago. EBITDA was $255.8 million compared to $233.7 million a year ago. Adjusted EBITDA was $291.3 million compared to $259.2 million a year ago. Adjusted diluted EPS grew 32.9% to $1.01 compared to $0.76 a year ago. The increase in Net Sales were primarily attributable to case growth in Performance Foodservice, specifically in the independent restaurant channel, a higher selling price per case, sales growth in Vistar, and recent acquisitions. The improvement in cash flow from operating activities was largely driven by higher operating income and improvements in working capital. Free cash flow was $156.4 million compared to negative free cash flow of $4.6 million a year ago.

Total case volume increased 0.8% in the third quarter of fiscal 2018 compared to the prior year period, with underlying organic growth of 0.1%. Total case volume included a 4.8% increase in independent cases, growth in Performance Brands cases and broad-based growth in Vistar's sales channels, partially offset by declines in the casual dining segment within Customized and the impact of an unusually large number of snow storms.

Total case volume increased 2.8% in the first nine months of fiscal 2018 compared to the prior year period, with underlying organic growth of 1.4%.

For fiscal 2018, the company tightens its fiscal 2018 Adjusted EBITDA outlook for growth to a range of 9% to 11%. The previous fiscal 2018 Adjusted EBITDA range was 8% to 11%. The Company's fiscal 2017 Adjusted EBITDA was $390.7 million. The company reaffirms its Adjusted Diluted EPS outlook representing growth in the range of 24% to 30% to $1.54 to $1.61 over its fiscal 2017 Adjusted Diluted EPS of $1.24. 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. For the year the company expects tax rate of 33%. The company remains confident in full year outlook and strategies for future growth. The company expects capital expenditures for fiscal 2018 to be between $115 million and $140 million. The fiscal 2018 capital expenditure estimate is lower than previously communicated due to the timing of projects and disciplined use of cash.