PFGC - Earnings call transcript Q4 2021 | Performance Food Group Company

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Bill Marshall

Thank you, Britney, and good morning, everyone. We're here this morning with George Holm, PFG's CEO; and Jim Hope, PFG's CFO. We issued a press release regarding our 2021 fiscal fourth quarter and full year results this morning, which can be found in the Investor Relations section of our Web site at pfgc.com.

During our call today, unless otherwise stated, we are comparing results to the same period in our 2020 fiscal fourth quarter and full year.

Additionally, occasionally during our call today, as noted, we are comparing results to the same period in our 2019 fiscal fourth quarter and full year. this certain include items. on results and discussed for adjusted results call GAAP will non-GAAP The back release. The the can the corresponding of GAAP the reconciliation these measures be non-GAAP found measures to of earnings at

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

the like to over I'd Now turn call to George.

George Holm

Good pandemic. and and with for profit the and the company. to discuss morning, PFG's note Thanks, sales was this for year Bill. through to country and It record our But earnings. industry high with is recovery and results quarter This XXXX everyone, year a I'm COVID-XX say in during past a finished by on to you dining joining today. thrilled our the dynamic started call wonderful the of quarter fourth fiscal posting pleasure has determined as We restaurant morning. you levels that strong struggled industry everyone the accompanied my industry the resilient depressed is our fourth shown that serve several Fiscal year thank a experience. weeks sales we

our to better acquire times our suppliers, chain. role by all. to capabilities the pushed and then providing the Core-Mark. undertaken food as fourth results, the play our review I'd towards over to expand convenience us ahead, return some a we Jim, for May have our we the After providing presence associates XXth, in spend as performance. customers like which have continue to appreciate turn strategic path in to PFG well Our and I the announced On more quarter hard supply all intention steady We customers boost Core-Mark, will financial our on who work vision time detail will for will discussing country's the a to call food-away-from-home market. our our

the perspective, From in we fair full beginning into is fourth as a that that to was sales exceeded record hold. a and to the hitting quarter. result over expectations was billion say As had soon sales case high spring, fiscal it levels take restaurant our of sales were dollar we entered hopes net volume quarter. The the began $X.X recovery our

Foodservice sales be the of well of quarter pro the and to Excluding excluding of quarter impact sales we for Reinhart, to and legacy compared to acquisitions. billion, XX.X% has impact Compared in achieved the including results XXXX, approximately above business XXXX, for of anything the $X.X forma XXrd for our fourth these results net our growth an the fourth our growth net company X.X% of the history included estimate week, fiscal X.X% increase week. XXrd our

of We quarter, years increased strength total Independent sales a X.X% two restaurant ago. foodservice of independent our higher our are pleased sales in XX.X% independent particularly in case than just volume quarter, the the reached business. with fourth XX.X%. total the sales continued percentage In

and West and results in-store continue August of recent been weekly early regions. as dining. strength to year, to very our Importantly, pizza, Southeast, namely still the despite Southwest last and in Italian comparisons see in pockets market average had difficult independent channels that Hispanic similar period most Regionally, in June. to the weekly grow in dollar strength the July were And sales results we shifted

same Midwest into period to sequential both June. down the the for broad compared and our improvement line regions total remain While XXXX, service in volumes Northeast experienced

to compared Our growing in now XXXX. is independent case region every volume Foodservice

All the customer-centric spring loss past business model representing performing demand and strength, XXXX. business better is as what and out with has to continuing position, to this and of areas a eased Our combination customers March. Illustrating positive of the than programs of are through same XXXX, the such stronger and it driven customer-facing existing on decreased this PFG's the in strong the rate the the and with The very on has expanded strong support the those point summer. factors restrictions and Foodservice our is expand fourth our has the designed as line. to we before delivered in driver through segment. Independent top growth below partnership main and results meet lower that in has Golf rate Foodservice fiscal since compared operator business the strong has our to strong recruiting growing our new of challenges three At been loss in all, year, very position mix. the activity time, is new was independent levels. quarter new taken surged results quarter ended to it business retained operating bottom of customers independent sales from and control. pre-pandemic roll of cost business well our growth business we cases today dining Meanwhile, period our believe of Kitchen the many seeing its PFG advantage Also, pandemic.

value in summer, to XXXX, through do all and theaters persists. including the At to Vistar in momentum slow at Reinhart recovery in and this retail, integration theaters continue additional seeing coffee or we office fiscal slow, convenience XXXX. remains fiscal resilient. theater expect the grew progress excluding movie to channels Our remain above office closures are and week. to build and a stores, and remained base. sales off expectations, continues at pressure office coffee compared Vistar, We expect as least Those steady the continued progress though a Other into of quarter channels, we under corrections, have the low

extra in As fourth excluding experienced a result, sales the XX.X% growth Vistar quarter, week. the fiscal

line in segments these of results with both do top our costs. Of strong course, come

you market has been As the know, all down up and the chain. labor tight supply

said, problem, an levels markets we this performance eventually Certain with are near-term outstanding the will believe the immune. ease. period. transitory. our the have believe and but Right challenges. not is recovery as pleased we pushed top our that issues will specific focused labor now, discussion our get soon the with on is base back who labor recognize exemplary challenges managing are as most that have done and of With items we this customers To not situation customers we our experiencing supply levels staffing to in job are are issues has this a While wrap service team improving extremely PFG possible. been service up also line cost of the get we and business, during we our company's to We much

sales on customers invest key our partnerships growth the to adapt driving and with continue in have changing to to landscape. expanded We

With our a enterprise, are Switching for strong the XXXX. Core-Mark. efforts across we all fiscal believe to we situated

We through Last period expired announced week, the process. closing from the second FTC. quickly are we with the request moving that no HSR waiting

for vote, is the the next As which scheduled is shareholder step next a week. Core-Mark result,

acquisition or creation has the very the only we August the that this evaluate and our about anticipate continue potential with were Core-Mark approval pleased with We're we Core-Mark $XXX opportunity. of both store management value transaction for of but Eby-Brown. addressable brings. distribution also billion of quality Convenience total represents to at market. Core-Mark three the excited in Assuming September. grown months the a we enthusiasm close we early When ago, late Since shareholders, transaction by announced then,

we're We qualified excited and C-store, Foodservice the we brings uniquely and meaningful of are for particularly about the grow to portion C-store and $XX share in capture it margins food billion fastest both area market. the only overall believe and the foodservice operator. growing Not distributor the in-store sales, the is

service, tobacco to We more shift expect long boosting away towards low-margin growth from profit the both term. C-store and to mix products sales food continue

We a from only better Foodservice sales costs have suppliers Currently, receive to stores delivery plan with convenience in not continued of number acceleration is for the complexity the in creation various And convenience hope Over for operators. to of area time, to adding these many bring network C-store suppliers business suppliers. to deliveries our achieve value for reducing the current PFG convenience significant store service of work lower channel. the food opportunities. PFG we our some the helping and direct and margins, store to an network,

have with space. successful the over to years the We in hope and been strategy the results see of Vistar C-store similar

to We transaction, that new PFG and close the welcome We of take the associates begin customers line opportunities Core-Mark see significant serves. unlocking this excited XX,XXX to the top we deal. value are can incredibly to Core-Mark

forward move convenience strategic We space important will share about we continue the area. store to in this more as

resources ESG up first end year. for commitment expect some fiscal highlight ESG an to disclosure to we the our Jim, an report initiatives, calendar file and ESG creating Before activities. company, published our and our our reporting is with turning recent focus allocating important want by ESG-related in This heightened over it for efforts included of to our ESG activities stepped December, significantly area in up allocating dedicated our structure In a arena. included of I and XXXX. we of to this ESG-specific update the

procurement. on step upcoming we towards the objectives. our in goals our project announced will next month, details around and report community ESG to journey solar renewable Our Last commitment a include delivering energy additional XXXX is PFG's

of year of agreement, this This XXXX. from power goal megawatt the renewable project about annually. will energy towards step hours XX term our purchasing generated by XX% X,XXX estimated PFG power the X.XX a be to Over from purchase megawatt of consumed our is

to position. that, Our area ahead. months should who give to and entire will things hear expect this in more team on going turn With detail our ESG over more date of you years to I'm and our fourth and the financial our Jim, is proud quarter you to efforts in

Jim Hope

morning, you, good everyone. and Thank George,

to Before fourth financial results quarter, I the discuss would some like items. fiscal I of review for our the

continues. As George recovery strong mentioned, our

of strong and labor cost associates chain allowing despite and pleased handled We for our us company us an to has pressure. worker cost I up manage. deliver challenge particularly our shortages, or are drivers for extremely not fourth supply are they persist. related recovery am While warehouse profit in will the focus to organization assume stepped the how area quarter the unique to the situation, that pressures sector, with to

will market equilibrium. the However, that stabilize we ultimately believe and do reach

believe at the of position, outstanding. just is net billion billion, structure We fiscal total Food close of an out out our We of for trailing $X.X fiscal Using sheet the the in EBITDA shape. set net liquidity debt of the the COVID. year, the also end debt to Group. well despite the we had early PFG At is were high and of the Reinhart XXXX, of year Performance times XX with a schedule capital month X levels announcement all-time of due approximately solid excellent means ahead transaction, EBITDA total the of adjusted year EBITDA, this included to goal closed over our $X.X in impact achieving adjusted that this depressed which balance at we adjusted

quarter debt debt Core-Mark went we million As at issuance of to the outstanding our retire the X.X% and you to to X.XX%. $X rate. closed, know, notes, the us $XXX had prefinance billion transaction which to of the offering XXXX allowed upsize after markets coupon Oversubscription our

of pleased position. very this the believe we strength reflects the are with capital company it’s rate, and both We which

feel momentum earlier, in we the with very a finish to and early mentioned our George As kept pace XXXX, August has trends good created. about business fiscal have our strong July sales and recent

nearly with not environment. recent This not includes in prepared have will seen we are COVID we in to in not decline any of we what will our have only growth calendar as in XXXX. the experienced expect which temporary in slow but change also as use indication the any strong business We support certainly While that the see in business our cases, anything to uptick yet position, early profile external another country volume. capital reserve the bad event for do

could is financial be of for we our position activity. ever in strategic of use that M&A balance been. strong a One sheet as our we have However, company a believe

to from organization, This next from want for you know, We space. of overnight the the M&A did weeks. as organizational within the due to have enhance We our team M&A reserves, in to would the both our if are deals the In pursue reputation quality diligence arise require process But the were excited still to these welcome and buyer deviate happen hopefully, opportunities potential business. protect our Foodservice and other routine. a not we resources, to and not the the our typical includes high and types transactions and well significant Core-Mark both both will established seller. meantime, they few we financial

results our full year XXXX. fiscal quarter fourth and for Turning the

underpinned ability from the sales and appropriate, reinvest environment. receivable. result was year, to financial the operating position flow by This inventory growth In prior growth our as and experience activities down initiatives. and, an total, for operating strong is behind working is The generate Our our cash a from movement was $XX.X year fiscal as million. our in cash accounts ramp we of strong up increase to direct in capital healthier a continue full

we mentioned our less periods working in necessary. As is generates business if last typically sales year, cash capital declines of

us allocation well during often builds back these reverses The the when this However, last fiscal part are for this now. we up business we early of seeing investments. capital prepared and the year had as decisions year made

trends favorable capital. in working to Importantly, see we our continue

days has For since began. the days the including total the improved example, June's capacity at inventory receivable increased schedule to growth our of flow, additional warehouse order year, over aging support adding invested our due $XXX.X expenditures, to lows the Similarly, significantly, higher support pandemic inventory near space. in smallest of XX.X days. capital our quarter our outstanding fiscal amount to in largely XX was million accounts PFG level Throughout while by receivables all-time

capacity to quarter. the to we've decisions and last also history. support for X.X% our when extra numbers the some quarter business, stated, Note fourth fourth let's growth quarter highest company's a over adjusted acquisitions. typical a prioritizing in sales to and fiscal that forma highlights right this build quickly comparable pro $X.X Net XX.X% to that, for fiscal organization. more business review Adjusting including With year extra in period net provide while week, business of to profitable to continue compared our making increased same performance. our XX-week in more a significantly week We from in the the business increase billion, was growth level our for XXXX, the sales the

Not volume could Our XX.X% adjusting results in in case or week. XX.X% driven profit quarter for XX.X% up happier only does by and the quarter. impact fiscal on net the independent XX.X% performance sales net mix fourth not positive was total week. with $X.X cases in be increased growth the extra our in increased XX.X% increase Independent billion, this to our business. for have our extra PFG provides it also results, the positive sales a Total to gross adjusting the was profit. We after

from XX higher some The Our reported up was margins gross an in On points benefit year cost to year the profit gross and margin profit margins XX.X%, basis, in basis inflation. the in from third from quarter. over quarter was the were adjusted XX.X%, period and points XX.X% up expected. period. fiscal prior moved due ago inflation gross the improvement as better mix Food basis XX

X.X% about products. cost poultry in disposables inflation the was by weighted driven and Our increases in quarter,

our expect year of In Please per now benefit successfully passed EBITDA was the included results, the for profit million. in reserves credit quarter, such, dollar PFG have As write-offs, to case ongoing quarter we into note benefit operations. continue profit period. along to to that we illustrated inventory had part And seeing million these decision a the $XX.X $XXX.X results. compared certainly this $X.XX XXXX. improved we these pandemic, our expected Early fiscal income an cost to adjusted results we the items fourth million. the in items and year our of Adjusted $X.X Gross financials. our the fourth gross EBITDA increased related for related cost substantially trend the a by operating pandemic, up impacted flowing quarter adjusted inflation and prior of are net credit write-offs. absorbed With the reserves our through inventory that as by in while and environment, were losses made net

the while ups to benefits they Diluted are that both items closed diluted was how we some of and normalize. it quarter, year. will the While out record likely share summary, is we appropriate with it is $X.XX. that environment per earnings to earnings the in extremely share adjusted of these was we to as dissipate fiscal pleased $X.XX downs continue fourth In occur, operating believe these per as the continues

navigated While there fiscal PFG challenges successfully dynamic are market, certainly has a in the XXXX.

independent Our impress, outpacing remaining continues market restaurant business and well levels. to the above XXXX overall

important while the current unforeseen Our And balance protecting us downturn momentum. we're sheet is to strong, us which been an term Organization pushing strong long extending should growth our in is with forward invest business market. recent trends positive enterprise engaged have behind and from initiatives. allow

focused on specifically are efforts. We ESG our

space. We is we We're and their company hard term organization another and we believe fiscal we the associates directly our how that, transaction, avenue your generate Core-Mark to interest in value will which to forward work. strong happy as questions. attributable with looking be move for to success look are your of XXXX our the Group. for off proud performed, build to shareholders And the Food growth, appreciate very long And finish we'd Performance the and closing in take XXXX. particularly to into with We PFG Foodservice provide

Operator

will take Instructions] Guggenheim [Operator our we with Partners. question John Heinbockel first from And

John Heinbockel

labor pay and existing growth people the do that to fair? do market now? me you prices is challenge? right, employees because a that that? there sounds what Is new It it retaining chain. thought the it are And to away you of or about mitigate let anything you start it just bid in getting is than then you've is seen cost, have the of or may -- challenge ago. for them supply like And months George, a primary last with couple is longer Is finding

George Holm

second churn, stay something the like they be don't one, would be maybe number then and they physical hours. that new like the or about challenge the They find people employees is, work to challenge very long. Well, getting too don't them, don't

we home, As to that over for What far that's we do as there. And and pay of and and from they're lifestyle. issues do the something having probably change we determine. that and came out were, we're I around drivers job for job know people the spending issues back, away found that employment to road a that's many worth a people we think time, are those to and do the our in to just situation. was But offer and got with nights it's core incentives to I and while. for We've just don't that the of think they being they additional that know of losing do best is over-the-road people, the to workers, jobs done attract to retain localized who had the not a losing very could that right hard that period

We people we have markets issue. by a have by of and not tremendously we've markets highly where that having had shortage been we've benefited affected where

John Heinbockel

have some topic, will can and I them And you once maybe guess, then on you to begin How theirs? this as more or closes, back going -- existing C-stores is cross-selling think, of a new do second Core-Mark. because that expire place, quickly to ones it more mechanism opportunity in would And the have guys to be customers, get your will. guess, contracts the and I

potential customers Think than share doing opportunity? When then can more of their growth? front? Foodservice you case I exceed think be think their growth the apples-to-apples. their And of Can yours is performance more So do the it higher about legacy nontobacco is the growth, rate because about there? existing sort that on it lastly,

George Holm

was just time, it this time you doing the with that area. can broadly business. do not see no, the this start tell are curtailed hit is of Eby-Brown. with would their people fit ramp-up. we're Certainly, But area. got our a I Candy side the programs great the the I but put that it ready food say with And We're running. got would understand period ground us by it somewhat Foodservice COVID, We've between two a They put I for of in think detailed work well. the was businesses. They as period Foodservice Certainly, Core-Mark, we've to place. in service during anxious. food of it. with that for to involvement not opportunity the in experience it's And tough able I'll convenience some senior I

base be anybody it are we'll that do the on the I we'll think opportunities as think I what won't because take growth with as the base. distribution, be customer initial that we will sure shortages synergies. going the the be of focus they're and is, potential on far experiencing, customer are. As that making experiencing And on we be pursuing there labor new where certainly, same existing long their But But business. the in that's early they're existing to believe deliver focused on I course,

I mixes think do just similar. SKU to that will the be than a little because Reinhart bit with was are it easier so

well. outside very come when Eby-Brown of I As think get that will growth, But chunks in it will area, think owned outside far independent, that's about the independent you the them. chunks communicative you I and come exceptionally be we'll in in about. since well independent. But area that get do transparent in bigger very done will as we've and it has of that when the something

Operator

take from question will we Alex next And Slagle with our Jefferies.

Alex Slagle

incremental to wanted of and quarter when during the thinking the first sort these figure hit out to of peak and moderate start the question kind the see you to to and just on of you a follow it impact trying Just think costs what into bit. just magnitude, staffing again you maybe related operating previous up expect quarter, the on about expenses the fourth the

George Holm

just say as issues. the some our that tell been companies, the you run again, guys haven't and some ladies a it's will over companies, to ever When very to will once going localized. experienced field serious talk some run hump, I'm that and our you that that's you as Well, difficult the tell it's

much marketplace. how varies it by that's So

hard us for So to of tell. it's kind

people area think will us back as the contract come of that work much are help kind back participate don't is thing one I that to is and very school in. areas in area school, people that go we to seating

So that of over ago a get we increases improve. that the where and two it surge to we're year, big continue if time the I I think don't this years we run running prefacing think we will

Alex Slagle

then on is more the just chain And than that curious the casual rebound much you how and opportunity in sort dining your recovery in expected if line think there's that of top driving business, stronger forward? some going share to channel build

George Holm

on to Well, but more often, again, rebounded this not our big been customer contributor say report I any our not we many difficult doing. is handle don't rebound. chain, once casual They through the to been extent want business ways, diner a independent has how certainly the specific The part to that this And has. in process. our have that of to business has

Operator

Credit with our Lauren Silberman from we next take will question Suisse. And

Lauren Silberman

on the Core acquisition. first Just

the about foodservice expand further opportunity talked You've C-stores. to in

currently that Would is Foodservice integrated from how from you can Foodservice Performance And or the deliver division Core the as about So then you Foodservice into or Core? coming talk customer Eby-Brown? relationship work? Performance a business, is to

George Holm

certain Performance expand we in there with it a to have different we at delivering which there is the their Foodservice out we've because freezers. of handle more center, foodservice business. then decisions point from Eby. standpoint, Core-Mark to logic much and that of than Eby in Today, out SKU significantly again, on there's by facilities more, and to we is if different that Foodservice And it they out as of experience out to consider where acquisition. we than distribution delivering where Eby. we beyond a be sized But we’ll store What goes is make Foodservice of Performance do found got we more it's have convenience Core-Mark coolers when do we our and what close have once business had area comparable be or that Well, point we the offering

Core-Mark as distribution be move to much food within So is we I certainly, think center mixed to But it's possible. forward. Eby as service a expand goal going as offering our the and

Lauren Silberman

you margins, improved nice gross despite year-over-year, the just On the profit gross it sequentially inflation. it at Seems across the And weighing we excluding improvements margin and of like foodservice just gross percentage gross margin? like going flat how margins that looks other do [COVID] margin, excluding adjusted talk gross inflation percentage. looking the think about are impact, profit LIFO Core, about I then think the dynamics Can peers were that we've forward? seen year-over-year. on

George Holm

of margin to that customers product ability bringing And charge. grow they faster Well, much our end but per it only to our value increase then we I they've as it versus is well is higher think actual in great what that the continues at We with margin business a to the kind And our they're as success had in their make a of sure got right and of at spite that ratio lot of did it change of function attributed case to the salespeople profit we've rate. our what mix independent a of heavy not gross the passed in inflation. on in line.

our So even higher than the able inflation, raise case increase grown areas, margin robust. growth you had then has cost as as in our because chain just we And more better we've faster the consider were just been business that well. to in business significant not which the has is when

Lauren Silberman

about having and the independents, more wallet you or foodservice among customers acquisition, think competitive new distributors, versus or average five we And guess, of C-store those if how seven XX% could so. in on that then compare average I that see gaining in do dynamics ask wallet space different share? can wallet also in with the share independents you share just Within and about opportunities the to I terms shares Core. to anything related does one How

George Holm

of you profess supplier, I've distribution. in people tell stores. convenience been an seen food convenience with what But core I've amount I someone. pick in to a I've expert service don't can out I point so they been or think a this tremendous far, for typically, and our I and They be at

core come of the one normally, person. store from the will all So

business, food are a fairly there's Now DSD well. like of they that. buying service having then a the them. deal But is convenience in And so supplier common larger main them. hand multiple the I that or be a and a with from be if have They regional there think and seen can number they And players count foodservice they pick go somebody distributor in can could a are far on which but great service splitting as on business. of items, supplier I the as those as one backup offering, food I've core times that like

Operator

And take Kelly next our with Fargo. question we Edward from will Wells

Edward Kelly

the so any could didn't didn't of to think number And but don't I for call as have little quarter. And gave Any guidance. giving on late like jumped the provide? sort guidance? just miss been you out why I you you I this, least any here of color provide bit hopefully you curious an that a at I'm kind

Jim Hope

make there. on a a gave for basis good to quarters quarter couple sure we had of we Ed, guidance just out information

the -- things market. uncertainty that think plenty still in there's are of still I

that very George's to in other heard commentary course, the difficult when unknowns turn. of And You labor there's about predict marketplace. issue and will

are we So guidance. not anything, miss you didn't providing

Edward Kelly

Maybe July follow and George, up just August in the June levels. sales weekly mentioned similar to you a on that. average

kind of mentioned then QX I'm running that that kind week that of mean at you of a in or better? XXXX. like million June, you $X.X billion range does curious, were does And $XXX are sales that hold? least just think I ahead

George Holm

kind July we $X.X differences every typically, up sales January not of did. our We billion. get tougher the are wish well a quarter. extremely and and some in months We quarter certainly Well, July. XX-week don't have do I held seasonal

of little work like bit some a have in last a days. year, did not We nine have back-to-school. softness Last It just we out. figure the takes that to

to us. a I Delta back and is what we But don't for you impact softening have think quite an when had. we Variant that's has when impact normal normal back-to-school had the slight know go then that did

there along things of in in haven't the with. out June pockets don't all issues with say very change being we're some So reason seen know good labor of guidance. difficult in restrictions, and I and were you that as giving as to all, a not what's of going we are as that's all would good kind for here happen But because they a dealing all just cautious despite we're rolling

Edward Kelly

in And extra just you week, one last then for week one excluding $XXX that's of $XXX I is QX QX, take maybe are were had if those of was $XXX you're numbers the kind typically think. this and maybe But quarter, seasonality but you of there's that million in I million, Jim. to close. in a The extra EBITDA million. $XX ramping, But QX kind mean around at million.

seasonality being So things if of in provide help should to how and takes some Just all that can EBITDA. that you see on any should about in terms of thinking of normal sort we the be expect equal the QX? we puts

Jim Hope

folks to are because it's model I know tough either. very a for and lot aren't few you we businesses tough providing guidance of Yes, probably and it's for

knew I thing businesses a now. predict the in right think all we was industry that different isn't the also tough the it the seasonality way years past that in things to are is because

couldn't and we'll employees momentum. of are our business running. be We're hard it's how the working this. see leave So up hard We pleased proud at We're QX use results. We more is off a it stepping into as calibration of just I'd going customers, happy QX. with good our that point. of care take with and business to coming continue to trends seasonality how our

George Holm

Ed, it's said. than Jim hard just what to say much more

of a so got we're XX% best a we X% pretty if the had these then best it's you for history we've then if two I then And bit, and little long the to been. of ourselves And case mean, and growth, year last we've two kind we you year years, take think on our growth look a track. I stack. back we dealing had two say disappointed But a of that's at ever stack this, I ever variables. will many just independent with

kind have as growth as around now. lot make of of we cautious statements confidence we far So are but a what really future we right

Operator

And our Mark UBS. next we will from with question Carden take

Mark Carden

restaurants players or larger to still have provide service they more distributors has again, business picked work their seen more with with Now that that really sales momentum you levels? concentrating food-away-from-home are more start up, can of independent consistent

George Holm

with the is the to downplay people labor and get are people, the calls number from them. disappoint not issues. our not to anybody I well us customers serious is mean I'm look that don't this get from making has trying sure supply and conversations we're other for mostly are And see and customers accounts, as people We we mean people buy seen, whole don't product. some I've chain our changes. our really we calling of we What that And when I that. with dealing at scrambling I see it do

think that be that I answered could don't yet. question a it's So

got been look back that's I this and that how right think you of through, I can sense to purchasing, at see into their normalcy how period do time because see affected we've people we've some get what then don't of think now.

Mark Carden

continuing noted elevated. it that peak it all? has has at then or you the past levels tapered saw that And remained quarter at inflation off you this Is

Jim Hope

tough at you're At say guess to would it we'll at past. organization I can it's the to pleased strong. see be temporary, to passing how we taper that Inflation do some quite we And to through in previous been customers point, we're pace. believe has to the that. is predict. mean it I'm right will I I I had appropriately don't very managing and summary, Yes, how inflation in to And inflation, expect that think continue where tell with lap it the the our I inflation was point, you reasonable year. off. really this, begins some I trajectory right.

George Holm

we maybe at the scarcity product we're week, areas increased And by nowhere if we if just that and inflation. that levels very as And to labor. But product you product those areas us, It's brings near our more as And hard that close, And Foodservice come have has much. scarcity long inbound And extremely had go daily. very going going, getting it's and we've this some last had little today. It have both that service Vistar. And always inflation. get was you that with in does. experienced to worst the track week, last to I little have prices inflation about those problems with think inflation. as is the that fuel their problems, look

Operator

question Glass And Stanley. take John we will next with from Morgan our

Unidentified Analyst

any of John. kind do the Could or kind thinking? of back divestitures to there's risk explain they Could approval -- full you moving say, just This is forward that on come is some just FTC, for they first question walk just else you Core-Mark and deal. there without you or anything require? SEC have of just Brian Maybe might us through kind on

Jim Hope

want with we we're forward. able I I is that. in. the believe forward, them with well now do to comfortable on for make needed and information what we to their think worked the and that do we and information we're moving the would the the And have they add need very we to situation comment going provided that only to to we move We're FTC job. them we're we need be

Unidentified Analyst

anything basis? give guess, that segment XX recently. that's right changed Obviously, that doing your curious now? well just anything you're you in other question the a strong. have you about that differently broadly trends And curious is anything independent case been kind think working on kind on or there there number I really quite more week of Maybe But growth. Did just of just is

George Holm

changed really it hasn't at all. No,

is numbers, that have put particularly our Italian and me growth areas share. in growth, certainly, been. and And that against I on time -- continuing able pizza early digit growth we where double same What not we I it's have and pleasing is Hispanic. been that And approach as trouble big in to we're to that is other and we this we've in then always to had particularly came were trouble. think business concerned gained those running not we last year over-indexed, we up to the significant the not hold the would of share, out COVID, was

now. right just real we're So pleased

Operator

with our [Operator take Instructions] question from Piper next Long We'll Joshua Sandler.

Joshua Long

it's that that been front comments circle much back forward. forecast expect the and on understand tapering, to sound and you tapering suggest your of of some as can Wanted food to of would It some doesn't inflation difficult the although, going there like has follow. in a

move X% XQ, inflation around that question as of Just little almost a differently, coming bit reset basket up contract basis things maybe that saw would in that in the curious benefit pricing on think are maybe we we or if that XXXX? into a there about pieces that

Jim Hope

from and tackle that one angles, pricing could one I perspective you suppliers. two customer think with from a

and from basis. supplier comes information So we make of a updated pricing is our we'll and what decisions us whom And on buy that we'll to pretty frequently. regular course, buy on

it comfortable will it eventually passing will customers on price how So more really our on. But about we're much handling price a regularly. that's a we pricing than chain our it back independent basis customers customers all a earlier dissipate updated updated and With not exactly it certain pretty but either of we we're twice-a-month is comfortable of our feel way many fluid chain dissipate. have, monthly or update approach. when answer, and very in customers, And our our have where more frequent to

Joshua Long

further well, to be as basis? moving on if the slowdown that if anything willing as I'm you'd trends, those any there great maintained a curious a and pieces we from as basis that dig hear that or into share early added just color region just any bit of here there's interesting sort down little if XQ to stability cuisine into were not we of trend period. fiscal the that sort And on seeing move we're XQ is

George Holm

our the do don't were a I particularly we're growth channels kind and certainly, the have great nice not lot this -- say see real to of have continuing From standpoint, would cuisine area. the share well, on [actual] But comment those share where would recover, we to do growth we the we as I areas. real labor isn't Northeast year, think a of we which the thing well. in Northeast. slower only Southeast, most to The issues we The continuing last has running but been be regionally, there time the to have

Joshua Long

maintain about target of you balancing you you that have expectations think thinking on that of going said of knowing worked you that or curious you're net ahead to liquidity schedule, to if on some those leverage cash about. had reached how in and about you other initiatives now, you're hit position you then some flexibility that targets talked a great the had strategic And ahead that or towards had position

think to just going or net balance on So about how forward? the anything curious on leverage sheet

Jim Hope

confident feel about markers sheet Really, than we about leverage comments we'll in the us. and that nothing we past have. the responded debt our and any with request. Very comfortable general. and available pleased or they manage structure changed balance has with capital markets feel made to liquidity Again, we we other have how appreciative in we've liquidity that capital to very We're our the the very to and how the

the in capital, we've forward. business. wanted why think and in that to good I receivables don't also, we that of see strong job, I way change going to things, in a done addition any that would the inventory reason a working And job those that and managing really payables our fit way

well. in, So we really we're positioned believe all

Operator

further And program no line time. back turn to the any this have Marshall we over at additional or for I'll closing on Bill the questions remarks.

Bill Marshall

joining Thank you our call for today.

at us questions, If contact you have Investor please any Relations. follow-up

Operator

does you for Thank program. This concludes participation. your today's

disconnect wonderful a may day. time at have and You any

Performance Food (PFGC) 19 Aug 212021 Q4 Earnings call transcript