Performance Food Group Company

Good day and welcome to PFG's fiscal year Q2 2020 earnings conference call. If you would like to ask a question at the conclusion of the prepared remarks, please press the star key followed by the number one on your telephone keypad at any time. I would now like to turn the call over to Bill Marshall, Vice President, Investor Relations for PFG. Please go ahead, sir.

Thank you, Lori, and good morning. We're here this morning with George Holm, PFG's CEO, and Jim Hope, PFG's CFO. We issued a press release regarding our 2020 fiscal second quarter and first half results this morning. The results discussed in this call will include GAAP and non-GAAP results adjusted for certain items. The reconciliation of these non-GAAP measures to the corresponding GAAP measures can be found at the back of the earnings release. You can find our earnings release in the investor relations section of our website at pfgc.com. Our remarks in the earnings release contain forward-looking statements and projections of future results. Please review the cautionary forward-looking statements section in today's earnings release and our SEC filings for various factors that could cause our actual results to differ materially from our forward-looking statements and projections. Now, I'd like to turn the call over to George.

Thanks, Bill. Good morning, everyone, and thank you for joining our call today. We are joining you from southern Florida where we are hosting the annual President's Meeting with our field leadership organization. Over the past few days, we have discussed our vision for success and I am thrilled with the level of excitement across the entire organization. As you know, our company has been busy growing our legacy business while expanding in the new channels and territories through acquisitions, including E.B. Brown and Reinhart. Today, we will provide an update on how these initiatives have progressed. We also look forward to speaking at the Cagney Conference in a couple weeks where we will provide more detail into our vision and strategy for PFG. But first, I'd like to start by reviewing some highlights of our second quarter business results before providing a quick update on the Reinhardt acquisition. Jim will then discuss our financial results and annual outlook in more detail. And then finally, we will be happy to take your questions. Let's turn to our results. After a strong start to the year, we're pleased to share that our sales and EBITDA growth continued in the second quarter of fiscal 2020. Total case volume increased by 6.7%, driven by the EB Brown acquisition, a 4.9% increase in independent cases, and growth in performance brands. We are pleased that our independent case growth for the quarter continued in the mid-single-digit range, which was in line with our expectations. We believe we will be able to achieve our long-term objectives with this level of independent case growth in our legacy business. As we look ahead, we expect Reinhart's level of independent case growth to be below the mid-single-digit range in the short term, but will accelerate over time to be more in line with our legacy business. We continue to believe the overall health of independent restaurants remains strong and will continue to be a key driver of our long-term profit growth. As you know, we closed the Reinhart acquisition in late December, completing the transaction by the end of our calendar 2019 physical quarter two. We're excited to add the Reinhart business to our organization and welcome the many talented Reinhart associates to the PFG family of companies. Reinhart brings over $6 billion in annual net sales, taking PFG's annual revenue run rate to approximately $30 billion. The transaction increases our food service division scale, distribution platform, particularly in the independent channel, and market density. Over time, we expect this to improve our network efficiency, reduce mileage, and create additional sales opportunities as we share best practices. We're also excited about the cultural fit between PFG and Reinhart. Both organizations go to market with a focus on success at the customer level. We believe that we will be able to enhance Reinhardt's operations and increase the combined company's depth of differentiated private label brand offerings. The increased density of our combined sales associates will also enable more face time with customers and should reduce future operating expense. Reinhardt also brings a diverse customer base, including independent restaurants, healthcare providers, education, and other attractive end markets. We believe that these strategic merits will strengthen our combined business and increase shareholder value over the long term. While we are just over a month from the completion of the transaction, integration is going very well and we are pleased with the progress that has been made bringing these two great companies together. Each quarter during these calls, we like to highlight one associate who goes above and beyond to serve our customers and colleagues. Today, we'd like to recognize one of our new associates joining the PFG family from Reinhart. John Hayes is a shuttle supervisor based out of Columbus, Ohio. He has 30 years of experience in food service, including time as a driver, lead, and driver trainer, and has been a supervisor for the past eight years. When PFG and Reinhart announced the acquisition, John was quick to contact all of his drivers and met with key customers in the Columbus market. His efforts have ensured that both customers and drivers are in tune with Reinhart's transition to PFG. His level of enthusiasm, commitment to success, and overall positive attitude are an important reason why we continue to win in the Columbus and Dayton areas. Whenever two companies the size of PFG and Reinhart come together, there are significant amounts of work that need to take place to ensure a smooth transition. It is stories like this that give us confidence in the future success of our company. I'd like to personally thank John and all the associates who put in hard work every day to make our company great. With that, I'm going to turn things over to Jim who will give you more detail on our second quarter results.