EXHIBIT 99.1
(PFG LOGO)
12500 West Creek Parkway
Richmond, VA 23238
Phone (804) 484-7700
FAX (804) 484-7701
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FOR MORE INFORMATION, CONTACT: JOHN D. AUSTIN
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
(804) 484-7753
PERFORMANCE FOOD GROUP
REVIEWS ANTICIPATED SECOND QUARTER EARNINGS
RICHMOND, VA. - (JULY 14, 2003) - Performance Food Group (Nasdaq/NM:PFGC) today
announced that it expects earnings for the second quarter of 2003 to be in the
range of $0.48 to $0.49 per share fully-diluted. The Company had previously
estimated that second quarter earnings would range from $0.50 to $0.52 per
diluted share.
Expected second quarter earnings, to be released July 29, were affected
by industry-wide increased demand from quick-service restaurants for new premium
salad products supplied by the Company's fresh-cut segment. This level of demand
was not anticipated when growers made their planting decisions several months
ago, which resulted in a significant increase in market prices for lettuce in
the last few weeks of June. While the Company routinely contracts for the vast
majority of its lettuce needs, the success of these products meant that the
Company had to make additional market purchases at higher prices to satisfy
increased customer demand. The Company estimates the impact of these additional
costs to be approximately $0.03 per share. The Company anticipates recouping
some of these increased costs over the balance of the year.
Michael Gray, President and Chief Executive Officer, remarked, "Sales
in all segments of our business have outpaced industry benchmarks during the
quarter. While lettuce prices have affected our anticipated second quarter
results, we believe that increased demand for salad products from quick-service
restaurants will ultimately result in long-term benefits for the Company. We
also expect to benefit longer-term from the test of a fresh fruit product by
McDonald's, which we will supply in certain markets beginning in the third
quarter. Based on current trends in our business, we expect earnings per share
to be in the range of $0.45 to $0.47 in the third quarter and $0.46 to $0.48 in
the fourth quarter. This results in an estimated range of earnings per diluted
share of $1.75 to $1.79 for fiscal 2003."
Performance Food Group markets and distributes more than 61,000
national and private label food and food-related products to approximately
46,000 restaurants, hotels, cafeterias, schools, healthcare facilities and other
institutions. Our Fresh Express line is the industry leader and pioneer of fresh
packaged salads. For more information on Performance Food Group, visit
www.pfgc.com.
Certain statements made herein are forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These statements involve risks
and uncertainties and are based on current expectations and management's
estimates; actual results may differ materially. The risks and uncertainties
which could impact these statements include, but are not limited to, general
economic conditions; the relatively low margins and economic sensitivity of the
foodservice business; the Company's reliance on major customers; the ability to
identify and successfully complete acquisitions of other foodservice
distributors; the Company's ability to successfully develop, market and meet
demand for new products; management of the Company's planned growth; and the
effect of the Company's identification of certain accounting errors on its
anticipated results of operations, all as detailed from time to time in the
reports filed by the Company with the Securities and Exchange Commission.
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