PFGC - Earnings call transcript Q3 2018 | Performance Food Group Company

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Operator

Good day and welcome to the PFG Fiscal Year 2018 Q3 Earnings Conference Call. Today's call is scheduled to last about one hour, including remarks by PFG's management and the question-and-answer session. I would now like to turn the call over to Mr. Michael Neese, Vice President, Investor Relations for PFG. Please go ahead, sir.

Michael Neese

good and Melisa, you, morning everyone. Thank

results this GAAP and results here measures Group's of CEO; are a release found the third certain GAAP can adjusted non-GAAP measures the results this in results of back CFO. The be morning Food Performance press reconciliation quarter fiscal these our include Holm, George earnings to regarding call morning. and for issued The discussed with We We this Jim will non-GAAP PFG's items. the release. corresponding at Hope,

Relations can of earnings You our release find website at the pfgc.com. Investor section at our

our the Our filings that factors cause review in and forward-looking and for projections our forward-looking future could to differ actual earnings statements remarks and and forward-looking the cautionary today's statements materially SEC release contain projections. in from statements various Please results. section results of release earnings

I to George. turn the call to over Now, like

George Holm

morning, joining everyone, for and you Thanks, Michael. Good thank today. call our

with to increased a X.X% sales and X.X% XX.X%. would and have and X.X% customize Adjusted Net we've case net multiple inflation snow the EPS net pleased closure quarter X.X% third mix for included basis. to and the occurred the during independent quarter the independent are quarter that on in of sales been X.X% grew our as given sales and Total nearly increase quarter. increase EBITDA sales, strong cash the X.X% due adjusted facility business. a X% particularly of storms for benefitted the our cases We from volume and free flow Georgia year-to-date excluding increased X.X% growth profitability X.X%

broad nine later on which be a the to Jim to where accomplish as quarter line strong first year. Based results months have over east indexed flow highlighting we've that free Weather large call. capital we of our coast. remain quarter our centers improved this earlier the in track We deliver we the our the on the return the distribution headlines bulk on goals our on invested of for and will this and distribution objectives cash in set during are dominate footprint

not in sales and points case to affected XXX to as a excess Net in were of XX.X sales we of driven demand the However, ending and EBITDA weather weather. May selling have April in recovery also line case in for that back Performance performance the well from X.X%. record in did week by independent growth and grew XXth driven the West independent and ending throughout full have increase Performance and have of X% also XX.X%. top the and Xth growth the the in companies the over week XX.X% was Food PFG our was a and specifically per price Service top that growth sequentially the case that independent growth with performance quarter week for we to we nearly sales May The including from approximately total brands. XX.X% sales experience quarter by week believe solid the was service independent by as where result our in for inflation by independent basis brands X%. grew customer sales as we that independent customer Food X% solid product was sales an achieved impacted Day. Performance net case We of singed case both expect increase growth mix our while increase changes. was improved We case and service facility an Mother's as were growth total a for performance last

broad-based doing net in office Vistar what QX, our case sales a soft the M&A calendar the Turning had would all Vistar, in and activity. office relatively above top by The fiscal channels robust third-quarter, performed growth dominated Panther strong sales Black box have segment up quarter. movie for box growth been driven QX a to expectations were line some drove X%, and

gross higher Third-quarter the increased EBITDA for of a an Vistar and by was sold change cases and was in channels. favorable that up XX% increase profit mix XX% dollars fueled in healthy number a towards margin

some work acquisition. continue with through We headwinds CCSI associated to the expense

at the be end closed quarter but hard and be distribution by progressed corporate and the team from what by has the of the will work the CCSI Vistar the fiscal XXXX, all end several expect strategic the of However, of over All XXXX. two we continued June we’re and past accomplished closing the of momentum second headquarters encouraged will in months. we team planning centers fiscal strong

So, some acquisition. experience that from synergies we’ll nice

fourth Turning casual quarter challenging the was to decrease of a and Georgia This customized XXXX PFG decreased for Customized the primarily in fiscal net dining facility closed of sales X.X% quarter. the that was for environment. result the

customized increase was excluding first the months operating including higher expenses, and previous have by revenues higher to fuel driven For essentially offset the by year. of Georgia decreased the partially X%, impact in EBITDA costs The flat decrease the net been gross would nine warehouse, by expense, profit. in an personnel EBITDA

year our nine to EBITDA in to come. we we be the in growth ‘XX and the and our years in strategies of of confident of first our for We tightening outlook our full-year growth, bullish adjusted XX%. performance are outlook expect now prospects our continue to our remain fiscal result a future fiscal range As on months during X% the

company. location and [Donna our to to PFG served of daily like as call for face over our I'd Jersey associates. the years, company. who discuss want Freeman] an our XX driver our the often a the being drivers tenured for I our serving Before the contribute our customized It is thank for and and heroes to our Donna I her of working playing New fantastic Donna in CCSI. one female quite key of has customers drivers highlight are financial unsung team details accomplishment. to role driver Jim making our the to turn all most

the Now CFO. call over I turn Jim hope, to our will

Jim Hope

George, and you, good Thank everyone. morning,

me our the financial return year take price selling cash we case also third gross profit acquisition a you through sales over due grew quarter by Net inflation X.X%. detail service. as strong some Vistar increased of in increased X.X%. on a inflation third eggs, mix. X.X% up within channel. half and increase was fueled invested the case and the X% million variable of independent and resulting XX in experienced as Gross approximately quarter, performance profit increased up basis case mix million. food acquisitions profit Operating cost million Operating was Of OpEx driven accelerating was profit have than X.X on flow of XX sales the net in XX.X%. well net nearly results, period Gross increased Let prior an profit per including so to approximately expenses And sales X.X% capital. over to increase billion, period and improved costs acquisition per over approximately as the acquired The of costs of sales customer while gross prices, as higher prior XX.X grew points gross year increase represented Food in volume to driven was in meats. produce XX.X% X%. $X.XX to Vistar. for excluding was the by the on sales increase The increase dollars primarily to percentage result expenses increase in impact and XXX.X sold by personnel channels would strong primarily to quarter the OpEx within integration products due fuel margin

growth effective in income year. for in the decrease and quarter interest rate of Our XX.X% strong increased income control partially income XXXX as in by was the reflects for of fiscal of third which expense of an last increase XX.X% as the jobs third of compared was primarily third result in primarily to million act. a continued XX.X The tax XXXX EBITDA in cuts expense of tax decrease X.X% million result solid grew tax corporate tax $XX expenses. a and adjusted growth well expenses. operating quarter the quarter to the other nearly the XX% was to a of and impact fiscal Vistar, profit benefit offset Net the of The

period. Third year quarter to adjusted diluted EPS compared increased XX.X% prior $X.XX per to share

year of from first working management. capital in to cash also In Let's PFG operating XXXX, cash the nine and operating pleased months our cash free turn through from flow was increase activities prior The strong XXX.X income nine of higher fiscal in by flow million cash driven with largely Were the months. flow improvement an period. of first million million the flow. nearly versus activities XXX nearly XXX operating generated

The in the our driven are of reduce now disciplined do we our debt XXX XXXX just The flow, and used so far a XX lower improves capital XXX For communicated is adjusted over net expenditure robust year. capital million first and rate fiscal lower between on fiscal we times. million. progress months company be for which invested three now of with significantly EBITDA of projects capital capital cash tax X was to strong increase than is this during A here debt. the expenditures and the previously work due to is to XXXX more return was There quarter. the by expect less the pleased expenditures profit, use and operating XXXX but timing fiscal Also, than to cash. estimate invested to million

it delivered solid wrap up cash to earnings we and quarter a and So, flow. had strong

and results plan months X we financial first our are Our goals. feel in XXXX on confident fiscal

on Now a turn to promising for word George growth it back I'd Vistar's to prospects. like following

George Holm

John. Thanks

just return minutes. Before of like we into a we Q&A Vistar to for to couple get

over movie support specialized As and to the look has infrastructure most national growth ahead, marketplace been the new Most unique candy, customer We M&A. opening Vistar distribution beverages. much impulse items, at penetrate opportunities recently of in has inventory both candy, single and few consumers in channels. a shareholders acquired corrections it organically beverages in serve Vistar other years, and To Vistar snacks the coffee organically continues distributor an unparalleled is the so vending, has past Vistar and also buying has snacks through and specialty new and M&A. strategic specialty growth network growth immediate office for have channels inventory and the corrections serves and for both leading new we are in channels. phase, market new a channel Vistar strong variety. through shares commissary. with opportunity to especially to leverage the consumption know, believe Vistar It Today,

our of very business closing, success over we believe Vistar of facing We two distribution. traditional and while our are thirds a to and overall and So, to about customer results, our pleased achieve our increasingly investments our that is will XXXX. broadline part come objectives In from time. with today remain sales we contribute profitability year-to-date We're our technology. strategic make and associates financial associate continuing on to track in our unique for strategic

to associates we believe the we experience topline to provide class right the Our best best are customer and in centric determined growth. strategies deliver have

investing pipeline here the M&A that so are to and and and more We investing your to were thrive. continue our they important, customers with questions. in Vistar believe foodservice opportunities for in we in remains potential can specialty, acquisition robust look take technology performance We

Operator

Instructions]. [Operator

is question Guggenheim with Your Heinbockel first Securities. from John

John Heinbockel

is the that. still brought greatest certain probably distribute don't because that on the share is opportunities where side the you of think are tobacco, where Vistar up a hindered, you do your And lowest. today how are you have big you hindrance don't you there accounts retail everything about Georgia

George Holm

for good think revenues they where candy, having not percentage allow business as just customers far fairly a Certainly, and significant and to harder person makes are. their just simple, a us snacks, real be opportunities it of know from beverages. It's wider account the and beverage. of it tobacco. places their That's relies to to would spot sell deliver part in them for as we’re specialty net cast us to It a and a on what We an good that. the come it’s for snacks candy,

fairly We have difficult extremely deep It fairly a large area. from just that categories. the base, probably in a few competitor makes in small product we’re perspectives us

John Heinbockel

it then of expect same? you ago, what up past local gears more of but hired those where I degree in I right, high hired start in per -- do you to you growth, And the then know who were back terms in that’s pretty digits, -- what can case hired you is to be something When then quite will they a the real you people do salesperson switch much mean single might the showing the and ramp-up person the in years to get in noticeable, don’t couple hiring. can are productive you’ve or profile that they have to

George Holm

a as Profile we were have little X.X. is the not although direct behind, fiscal been saw as tell since some in we last the in impact. and we start back have done service I is that rate to very we’ll feel we two we’ve might a some similar, look stack, at we see net, mentioned once past some at the that, little I a to a a we we we’re a third-quarter, long the time from so seeing again at did if in food wider to of in faster the hard the less cast than had But we of first kind X%, tell, kind over weeks starting have April look it’s benefit couple that, when in difficult distribution can April, get has call, holiday we in benefits hired probably be when experience, a But done. at such reflection were to because May huge year hiring

Operator

is question from Fargo. from Our next Edward Wells Kelly

Edward Kelly

that Just a weather possible is like similar now, and has case to perspective for and we did your then but like it’s from and growth as is bounced proof a well? performance it of maybe organic the really independent, about back, total quick up it impact, April size you as hard where think know for I business independent sort sounds it overall case question you’re

George Holm

say independent Yes, on month of a hit bit is big in the it’s of each to that change probably tried interesting [indiscernible] had when quantify difficult us do, It independent, better that our overall. row. quarter would us it weeks we in spite certainly impact the think the month, was sequentially is a although good for in March a it an was easier had Northeast supply that because very actually was I outside Customized, you that aren't for January west. month, as businesses the and got to four go the We actually the southeast west a infected as not we us for as I little big has

fairly than Vistar do more and is impact people in March into, Within tends just get well quite an the weather we’ve office kind the Dallas March, and is certainly couldn't impact to So, to kind don't to vending that’s get tell. it’s out area, so hard the I much, Customized stores in people had of of midwinter impact actually the similar actually as was good. think the bad, when business leave restaurants,

often, they’re to something to didn't a not if people out think movie go want go I so didn't see, they with. it and comes movie see that and to to it’s go restaurant the when comes they because many still more they’re go we’ve like go the going occasion out, to of it that to variables movie, deal like so we coming around to movie planning turn when up, going they're so the snowstorm,

probably think independent, there. impact so probably you take the from I biggest the it's that goes if down X.X, was it

Edward Kelly

historically. X% this And than of excluding overall, margin is year-to-date the just thinking Low we've through like growth it case what looks obviously range, weather inline of sort your less is thinking headwind kind about it. organic customize which seen

organic out fourth we how thinking look and So beyond particularly the be we quarter? your goals growth should about as

George Holm

continued component. experienced we customized X with and We what component quality to us what to good continue and of are sale and we've margin that you the and different will that but customers have exclude that's profitability do is to are we the if those do state X pretty much from probably for the

So, expected. we growth of of and that that comfortable a that put are full to is earnings X leverage channel real kind outside X can we the out that

Edward Kelly

on Okay, just freight. last you question for is

still You that your like how of but than you this better sort just did. and on last you others? and know wondering there some didn’t it's impact didn't managing your the mention headwind I'm peers you having freight business it's are really the quarter

George Holm

of I'm going that Jim ask I lot ahead had and time go question. him a spend take that to so to on

Jim Hope

that many us chain the to certainly are it's start the inbound So, manage working working all will will challenges been, through while and settle increase. to teams headwind it, seeing headwind. logistics think to like through successfully still manageable tell we maybe way a of a manage loosen a headwind. of are for freight internally can it it's is supply are continue a it's loads as us and we bit can which from but and perspective as sequentially we up have but but and we you multitude still I year-over-year we our our there an these helps we

George Holm

some it I'll add Because you and competitors. Yes, may for different to our be color mentioned that.

very If Vistar of mentioned them price truckload only to truckload all business we our I buy but and have a we FOB big heavy and have a you wide that inventory base and heavy, suppliers from with them. price key our we with have in from distribution we each volumes SKU don't start center first

opportunity strategy of the we as land customer manage few customized has we can. if that it possibly as freight we we there. as kind for get centers don't we whole manage negative us is impact and to much their been so for and product many for use business they our our of their possible there distribution and years as that truckloads there have So, cost to no Then a that in

is it or equipment us into the where either it answer probably situation we same doing. from ordering and our the they truckloads are their on arranging where straight these Long they business to are the centers are the freight. delivering worth manufacturer but somewhat it's So, of continuity

big a We so different are situation on in doesn't have a us. it impact

Operator

Short Barclays. question Karen next from with is The

Karen Short

guess quarter, at implies so when late guidance quarter obviously for wide the fairly fourth range that. I this the range your relatively you I stage so full-year, the wide think talk in and is fourth if can for

George Holm

end when think range, the but we way Well want off I would some and this that that we only fourth I that quarter really of don't month come seen guidance something that through, I to confident to think of worked want say in the our of one is higher headwinds our we’ve give change. that, of certainly we we’re you

So, I guess it's quite simple.

Karen Short

on for profit obviously growth growth end you else and of then where than should look there Okay we’re pointed is to and to OpEx? I great headquarters Vistar abate, terms CPSI at the mitigating that you of so significantly for OpEx but closing was growth June dollar think but looking in higher for that anything

George Holm

long They these that term issues have things. had we continue with open were be And won’t there's job of will and major, there driver Vistar aren’t those nine know headwinds distribution a think couple transportation driver as and that foodservice is is shortage but we and we’re performance two is handling you there a One would not will so and difficult so have in well. in job be certainly but that as the don't physical only it's deal couple that will as be not still be I that open centers. to helped of things any then some

feel look as for today at do and where to are we continue just that have we ratios higher a is norm to should so us and going channels costs change also the expense it that a along improvement, we go. higher that thing see other to to higher-margin continue margin we that’s position in we as could in somewhat gross higher like expense business put as move the be today growth continues serve that margins choppy tends be see and our other to but could to and channels we in Vistar, The where little ratios to

Karen Short

of just general, see helpful we year, slower and if comment front, year. just one indicated a that’s competitors wondering the environment your in how I Okay you will and be question about think am things on just on then the this M&A that would how could you M&A last M&A little this

George Holm

not M&A were be reduction one more potentially similar year right we’re like a those good to have the EBITDA to that deals year today in to the we last activities we tends a a spot the benefit in world deals year. from probably feel be for that it. but touch and in We specialty the business impact in little from more be at than much year on Maybe look year. it. two now comes could standpoint don’t very first going will a way We would number in CCSI lot you in But the a better of and in be of revenue so than to the Vistar and see like where

Operator

Wolf with Markets. next Your Andrew Loop question is Capital from

Andrew Wolf

the assume sense also was in recent small was in in can quarter jump a announcing us growth the if take acquisition you or I that helping the out gave if and because what hasn’t independent in that, April acquisitions it division? case could the out, organically case you give all you April independent a confirm of if growth organic you

George Holm

a a year. line well haven't for I we acquisitions over broad Yes, any while, quite mean done

that So any basically, bit mean but growth not way. organic the is have material we little have we all growth. in I

Andrew Wolf

rolling Food Performance not guess. you’re numbers when into So, you I calculate specialty these

George Holm

have it time so delivering that reason And we independent product had number our -- the right but through business is cutting weeks We trust, of started of say we out didn’t themselves. into they so and around let’s lapped or are that and the that thought, lapped, we’ve were versa have in XX-week company XX specialty three some and we we that where doing that where before it some been it on didn’t it their did that put we get once and until we through out had that moved because seafood we -- we that meat do just the them. we regular you and are place some given and those histories the confusing, the now, on we went they in organic period it the organic, until companies we get was [indiscernible] vice would sales the own our histories growth so number the numbers numbers not

Andrew Wolf

follow-up just to processes the is to Vistar, terms know at from ramping, is forth, you’ve where utilization, sort picking, I those how so on smooth [Memphis] facility a And operations in how delivery and packing are ramping, of capacity of that some...?

George Holm

Right thing it’s going very being well, we is we’re continuing grow, conservative nice it. have excess always capacity to fairly there, a with its have, which to

and quicker we we’ll issues, get there. call. talk We now facility be But number and at one are doing more the in into right and as difference level where about particularly of as about could be no productivity the around to work the our as a two lot the looking profitability process one between next nothing to the current the of talking will that, get far current and we we’re a what second of

Operator

question from Sinisi Vincent next Your is Stanley. with Morgan

Vincent Sinisi

different the I when word lot been lot customers you of is the wanted it vending few you’ve to obviously the player you’ve as differentiated but -- to you is on last you’ve looked part obviously parts do it business put like of you’re that, so months underpenetrated different talking back and about essentially think of that more a at like the first we which question kind of great Vistar just of other certainly to wanted comes in and your should you where do -- business best right where that you especially of share kind endless no large most and there since of space? now think for opportunities the think you’re

George Holm

I growth and just would by are even many-many actually kind are share. several taking [Bending] negative it's it not able channels hard years there for growth been always to was grow to of determine to years been there. but has call we've

channel but micro it's is because growing markets growing I of kitchens. and micro think the

and been, Vistar or in the that and remember single are just in operator whether insight think nice selling every so channel not nice micro are market growth only all just up ends machine a from is has or ends bend and ends micro we have seeing certain growth high product amount markets And We coming are that micro environment a in up think we but into kitchen of that within up seeing kitchens in I of micro a very a only growth vending. very is this our about I environment. we it's

shares are were the handles so the of potential there. have that business Our quite a we comparable commentary a so share our corrections low we actually of lot exception have where with

Vincent Sinisi

and Okay I know of out comment so that's this to more there becoming you but than more you about most of your a underpenetrated do contribution I kind mean no and of George do forecast earlier to kind business.

looking and a at meaningfully out If you the sales core both profitability? of it when you're be the higher part look business, XX years, should to we expect

George Holm

potentially growth in sales I Food provide best but I with next think that Performance two in in both year you service could us see is or the going what's the probably to and EBITDA. believe

Vincent Sinisi

are full maybe last tax year rate that quarter is said just of just on for just still XX% the more you the that you I believe the the case. expecting year full then And housekeeping, a follow-up for

Jim Hope

still That's the case. right. It's

Operator

Your next question is from Kelly BMO with Capital. Bania

Kelly Bania

bit mix business Just clearly help or of feel back down of basis you is and next about but maybe improved so continues the over margin? margin with maybe ahead case that we impact you settle the gross from just the facility customize called points gross you any can the how wanted out expanded and our the should margin obviously start there to at just understand of that closure little to is there the there see there expectations come us and maybe in of that talk per drivers more some the a couple $X.XX that XX quarters and about that least to growth

George Holm

a I over that think little it's bit complicated on complicated.

in gross when I and in think if so margin. our business the continue closure rate chain you at grow look grown if at with to as to low they processor point than would increase service year you gross it margin I lowest growth look margin. a faster margin if expect margin it next get are business you at have higher improve, into we've that to customize that fastest sales rate growing at we see What be at higher Vistar leverage business. Georgia the improve but that Performance higher Food they expect decline contributed into business but mentioned to able Also, the our also to to take going the basis independent the be I we and the get better. our is are XX we and margin fiscal rate to that and continuing it's it's the better is also probably improving not in we but today but today

that I control, gross better what today, of year effort we So, into running some that next think improvement kind margins better the of this as with hopefully is than a around going we am we've that helps. from overhead little but have on away at not cost get I particularly been looking CCSI and

Kelly Bania

makes sense That thank you.

tool. saw rolled that organization on of up up how Just to out implementation to market that one and watch status as the of and the you sales follow

George Holm

and to It's and I implemented. would attribute tell, I just more our than they've think It we’re can that’s dramatically, not it that still of past and comfortable probably to I but of have March, the mean, and all say be the difficult think but having it’s fully implemented in knowledge helped had to has fully margins they margins independent with how is wouldn't about it. I really as I it end say improved improved new people really our could now much their we

Jim Hope

The inflation and margins doing in well a add one important are of note. would I is period comment our that’s to

So, the people I watches what information market think to given sales right the they price. need understand

Operator

[Operator Instructions] Group. next Jain And with from is Pivotal Ajay your Research question

Ajay Jain

case more in you quarter year, level mentioned you the current EBITDA in I'm by months want think I your is back for back you if be April, level of customized in I growth normalized at what PSS I you theirs and in to multiunit end you you been improvement you’re be what wondering for of and a the so back contemplating the the expecting higher segment but the you’re in February and were George, to just for in more the to are think I'm sequential and asking few some normalize at what a back quantify if ask that consider range would independents can terms the level. you’re to think both if really business ago normalized improvement to

George Holm

slow and one we off the were and that’s good month it when the we sales pretty the growth feel closure should the we April of that we its first normalized should real the weeks establish not is that say had casual May, that histories to it business environment. with Georgia fairly of after of in had comes within and period bankruptcy other so a a for but that this that normalize Customized it. weeks, account quarter can I got six where dining we so histories a of independent norm but two roll to While for long what time

of is will and a by see growth. than Now really it been out has better we it in encouraged real in past customers true improvement same-store that particularly I of we’re couple sales say the what

does the continues, going impact a in salespeople. know would better invested how feel So, our questions confidence real in around of there both it’s to our would next Vistar, do We kind if with lot is business, I of growth and savings. but today heavily great. on have in tax we then we’ve that material a a growth have good great that we -- a sales would we just job EBITDA we with we company, that do year around foodservice, little then expense We real as what and don't that did be that performance year. around said a this area what had level

Ajay Jain

Vistar… With respect to

George Holm

lot And around that call, of give the we’ll be that and our giving work a guidance we on whole August by do give. so can best guidance the way we’ll

Ajay Jain

there wondering for breakdown benefit EBITDA like segment I am give any a organic just Vistar Just of line performance way both with and trends of about growth top without acquisitions, respect QX? final the one question is the to so the

George Holm

weren't centers, and national to pretty we case hard Star just nobody as should a acquisition, if more to the moved the make the organic at even line it's as very do, we top we be saw these quick, footprint so CCSI five we into made directionally and very -- at and able Wars business we what January have what business already distribution -- now, sold still look make we that, customers with job on merge line growth when running customers and the December but October went the and of we’ll of was small did standpoint. when so hard, that got made has you of projections going an do hard so who that from that different real top It’s kept we we’re worst, do if footprint in service we that to many of from one to standpoint, the in, the lot acquisitions because mid-single-digit for to, we in is it’s so something a we the decision acquisitions we a so have case in our we had good we a

Operator

Judaj your with Credit And is from final question Frommer Suisse.

Judaj Frommer

customer churn customers on offsetting maybe in penetration a the just openings is of level First closings business color existing what new higher have how from the the independents, so, of versus seeing of weeks on plenty the if that new you there? of look maybe six do some exclude you are business, underlying maybe at kind and you just last and weather, or health

George Holm

X% grow growing cover into our on I tells business call, is number we the faster already they what into the a the a tail expense still rate full that I lines but and the independent dig penetrations well our movement. don’t I we’re which the still pretty we’re you changed always are Yes, new if the a to aspect line country like mean guess last but they’re could our numbers, start our think we broad from from and channel had coming since dependent you high how that I when what and seeing buying of have, down bought we’ve less I of of well, that to is get you don’t say cases, the maybe we lot think X% we’re a doing then a got think we’re probably we’ve new looks lot we previous than and it year the accounts, items than further are at cases or case then penetration business lose doing faster movement we

to think weather all the but there excluding that all, I quarter good sure not the independent continues I a us. tailwind for in in So was channel it think and be

Judaj Frommer

a there? back fall on And it may follow-up you PPI helping one just then maybe as see continues out that there that you sounded called about categories you in few can it inflation you is called attract are thinking grade that the are range far of look categories way just but in as be doesn’t anything inflation out X% kind the that that maybe besides

Jim Hope

that to are today. being should We big but different we of do they or know things the first see that course, don’t said, make then drive change don’t anything of all

So, looking to going X.X% at given are would forward. we X% the inflation marketplace I think

Operator

would now turn call for to the I management back closing remarks.

George Holm

your for this Thank morning. you time

[Indiscernible] New can for [lunchables] the hope tab To Cagney either it. membership we and select for today. And member hosting Thank directed you'll to a event make at you can sign-up the in a XX:XX luncheon portal York at O' visit where register be non-member. monthly time We Clock. please are tomorrow consumeranalystgroupny.com your City you a or as you

Operator

call. conference today's conclude does This

You now may disconnect.

Performance Food (PFGC) 11 May 182018 Q3 Earnings call transcript