Richmond, VA., Aug. 7, 2006 - Performance Food Group today announced results for the second quarter ended July 1, 2006.
“We are pleased with our 35% increase in net earnings per share in the quarter and we continue to be optimistic about the year,” said Bob Sledd, Chairman and CEO. “We are aggressively implementing our strategy to grow higher margin street business while maintaining our focus on improving productivity by leveraging new technologies and standardization programs and implementing our procurement initiatives. Our efforts yielded solid progress in the growth of street business. Overall sales declined slightly, reflecting our previously announced exit of certain lower margin multi-unit business and a slowing of sales in certain industry segments. In addition to our focus on growing street business, we are actively pursuing attractive restaurant chain opportunities. In the prior year quarter, we recognized a significant gain on the sale of our fresh-cut segment, which enabled us to return over $400 million of proceeds to our shareholders.”
Consolidated net sales from continuing operations in the second quarter were approximately $1.4 billion, a decrease of approximately 1%, compared to the prior year quarter. Inflation for the quarter was nominal. Net earnings from continuing operations for the second quarter amounted to approximately $12.2 million, which was unchanged compared to the same quarter in the previous year. Net earnings include the impact of stock compensation expense of approximately $0.9 million after tax for the quarter, or approximately $0.03 per share diluted. Net earnings per share from continuing operations increased approximately 35% to $0.35 per share diluted, compared to $0.26 per share diluted in the prior year quarter, on approximately 27% fewer shares outstanding. Excluding stock compensation expense, net earnings per share from continuing operations in the second quarter amounted to approximately $0.38 per share diluted.