Performance Food Group Company reported unaudited consolidated operating and earnings results for the third quarter and nine months ended April 1, 2017. For the quarter, the company reported 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 against net sales of $3,909.1 million, operating profit of $37.6 million, income before taxes of $15.5 million, net income of $9.4 million or $0.09 per diluted share a year ago. Adjusted EBITDA of $89.6 million compared to $76.4 million a year ago. Adjusted diluted earnings per share of $0.27 compared to $0.15 a year ago. Net income increased 121.3% driven by a higher operating profit and a decrease in interest expense, partially offset by increased taxes. Adjusted diluted EPS increased driven by higher adjusted EBITDA and lower interest expense. EBITDA increased 19.7% in the third quarter of fiscal 2017 compared to the prior year period to $79.6 million, driven by a strong gross profit growth partially offset by strategic investments for future growth.

For the nine months, the company reported 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 against net sales of $11,731.9 million, operating profit of $135.4 million, income before taxes of $65.8 million, net income of $39.1 million or $0.40 per diluted share a year ago. Net cash used in operating activities of $102.0 million compared to $118.4 million a year ago. Purchases of property, plant and equipment of $106.6 million compared to $68.0 a year ago. Adjusted EBITDA of $259.2 million compared to $251.9 million a year ago. Adjusted diluted earnings per share of $0.76 compared to $0.61 a year ago. The increase in Net Sales were primarily attributable to case growth in Performance Foodservice and sales growth in Vistar. Net income was up 43.0% due to a decrease in interest expense and other expenses offset by an increase in income tax expense. EBITDA increased 2.7% compared to the prior year period to $223.7 million. Adjusted EBITDA increased 2.9% was impacted by the cost of the company's strategic investments to drive growth associated with expansion of geographies served in the dollar store channel and the opening of an automated retail facility within Vistar.

For the quarter, the company reported total case volume increased 7.7% in the third quarter of fiscal 2017 compared to the prior year, with underlying organic total case volume growth of 5.9%. Total case volume was driven by a 7.0% increase in independent cases, strong growth in Performance Brands and broad-based growth in Vistar's sales channels.

For the nine months, the company reported total case volume increased 6.6% compared to the prior year period, with underlying organic total case volume growth of 5.3%.

The company continues to expect capital expenditures for fiscal 2017 will be between $140 million and $160 million. The fiscal 2017 capital expenditure estimate is higher than fiscal 2016 because of the timing of certain projects that began in fiscal 2016. The company confirms its fiscal 2017 full-year adjusted EBITDA growth outlook to be in the 7% to 9% range on a 52 week to 52 week basis. On a 52 week to 53 week basis, the company confirms its adjusted EBITDA growth to be in the 5% to 7% range. Adjusted diluted EPS growth outlook to be 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. Adjusted diluted EPS growth outlook to be in a 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.