RICHMOND, Va.--(BUSINESS WIRE)--
Performance Food Group Company (PFG) (NYSE: PFGC) today announced that
its Board of Directors authorized a share repurchase program for up to
$250 million of the Company's common stock.
Repurchases of the Company’s outstanding common stock will be made in
accordance with applicable securities laws and may be made at
management’s discretion from time to time in the open market, through
privately negotiated transactions or otherwise, including pursuant to
Rule 10b5-1 trading plans. The Company intends to fund the program with
a combination of cash on hand, cash generated from operations and
borrowings under the Company’s credit facility.
“The share repurchase program underscores the confidence the Board of
Directors and management team have in our business, our free cash flow
performance and our ability to drive long-term profitability while
enhancing shareholder value,” said Jim Hope, PFG’s Executive Vice
President and Chief Financial Officer. “Our financial position provides
us with the flexibility to return capital to shareholders, while
executing on our growth strategies.”
The share repurchase program may be amended, suspended or discontinued
at any time at the Company’s discretion and does not commit the Company
to repurchase shares of its common stock. The actual timing, number and
value of the shares to be purchased under the program will be determined
by the Company at its discretion and will depend on a number of factors,
including the performance of the Company's stock price, general market
and other conditions, applicable legal requirements, and compliance with
the terms of the Company’s outstanding indebtedness.
About Performance Food Group
Through its family of leading foodservice distributors – Foodservice and
Vistar – Performance Food Group Company markets and distributes
approximately 150,000 food and food-related products from 73
distribution centers to over 150,000 customer locations across the
United States. PFG’s 15,000+ associates serve a diverse mix of
customers, from independent and chain restaurants to schools, business
and industry locations, hospitals, vending distributors, office coffee
service distributors, big box retailers, and theaters. The Company
sources its products from more than 5,000 suppliers and serves as an
important partner to its suppliers by providing them access to the
Company’s broad customer base. For more information, visit www.pfgc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements include, but are not limited to, statements related to our
expectations regarding the performance of our business, our financial
results, our liquidity and capital resources and other non-historical
statements. You can identify these forward-looking statements by the use
of words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words.
Such forward-looking statements are subject to various risks and
uncertainties.
The following factors, in addition to those
discussed under the section entitled Item 1A Risk Factors in the PFG’s
Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed
with the Securities and Exchange Commission (the “SEC”) on August 16,
2018 as such factors may be updated from time to time in our periodic
filings with the SEC, which are accessible on the SEC’s website at
www.sec.gov
,
could cause actual future results to differ materially from those
expressed in any forward-looking statements:
-
competition in our industry is intense, and we may not be able to
compete successfully;
-
we operate in a low margin industry, which could increase the
volatility of our results of operations;
-
we may not realize anticipated benefits from our operating cost
reduction and productivity improvement efforts;
-
our profitability is directly affected by cost inflation or
deflation and other factors;
-
we do not have long-term contracts with certain of our customers;
-
group purchasing organizations may become more active in our
industry and increase their efforts to add our customers as members of
these organizations;
-
changes in eating habits of consumers;
-
extreme weather conditions;
-
our reliance on third-party suppliers;
-
labor relations and costs risks and availability of qualified labor;
-
volatility of fuel and other transportation costs;
-
inability to adjust cost structure where one or more of our
competitors successfully implement lower costs;
-
we may be unable to increase our sales in the highest margin
portions of our business;
-
changes in pricing practices of our suppliers;
-
our growth strategy may not achieve the anticipated results;
-
risks relating to any future acquisitions;
-
environmental, health, and safety costs;
-
the risk that we fail to comply with requirements imposed by
applicable law or government regulations;
-
our reliance on technology and risks associated with disruption or
delay in implementation of new technology;
-
costs and risks associated with a potential cybersecurity incident
or other technology disruption;
-
product liability claims relating to the products we distribute and
other litigation;
-
adverse judgments or settlements;
-
negative media exposure and other events that damage our reputation;
-
anticipated multiemployer pension related liabilities and
contributions to our multiemployer pension plan;
-
decrease in earnings from amortization charges associated with
future acquisitions;
-
impact of uncollectibility of accounts receivable;
-
difficult economic conditions affecting consumer confidence;
-
departure of key members of senior management;
-
risks relating to federal, state, and local tax rules;
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the cost and adequacy of insurance coverage;
-
risks relating to our outstanding indebtedness; and
-
our ability to maintain an effective system of disclosure controls
and internal control over financial reporting.
Accordingly, there are or will be important factors that could cause
actual outcomes or results to differ materially from those indicated in
these statements. These factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary statements
that are included in this release and in our filings with the SEC. Any
forward-looking statement, including any contained herein, speaks only
as of the time of this release and we do not undertake to update or
revise them as more information becomes available or to disclose any
facts, events, or circumstances after the date of this release that may
affect the accuracy of any forward-looking statement, except as required
by law.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181114005050/en/
Performance Food Group Company
Investor Contact:
Michael
D. Neese
VP, Investor Relations
804-287-8126
michael.neese@pfgc.com
or
Media
Contact:
Trisha Meade
Communications & Engagement Manager
804-285-5390
communications@pfgc.com
Source: Performance Food Group Company