Reports $0.26 Net Income Per Share Before Special Charge
Net sales for the first quarter of fiscal 2002 totaled $280.3 million, a 14.8%
increase over the $244.1 million reported in the first quarter of fiscal 2001,
slightly above the Company's guidance of 12 -- 14% sales growth. This increase
was primarily due to increased sales throughout the Company's distribution
centers and retail division and included super natural, independent and mass
market distribution channels.
Net income for the first quarter of fiscal 2002, excluding the effect of a
non-cash special charge, was $4.9 million, or $0.26 per diluted share, compared
to net income of $3.3 million, or $0.18 per diluted share for the first quarter
of fiscal 2001. The non-cash special charge was related to Statement of
Financial Accounting Standards No. 133 (FAS 133), "Accounting for Derivative
Instruments and Hedging Activities." The Company recorded FAS 133 expense of
approximately $2.3 million, net of tax, on its interest rate swap agreements
resulting from the significant decline in interest rates during the quarter. The
Company adopted Statement of Financial Accounting Standards No. 142 (FAS 142),
"Goodwill and Other Intangible Assets" on August 1, 2001. The result of adopting
FAS 142 was a reduction in operating expenses of approximately $0.2 million.
There were no special charges recorded during the first quarter of 2001. Net
income including the non-cash special charge was $2.6 million, or $0.14 per
diluted share, for the first quarter of 2002.
Comments from Management
Commenting on the first quarter results, Michael Funk, Chief Executive Officer,
said, "We are pleased with our first quarter results and remain confident in the
execution of our fiscal 2002 business plan. Sales growth was slightly higher
than expected as we achieved double-digit growth in both our eastern and western
regions as well as across all three of our main distribution channels. Operating
metrics continue to track at efficient levels with service rates to customers
continuing to perform at optimum levels. Looking forward we believe our sales
growth for fiscal 2002 will continue in the 10%-14% range. At these sales levels
we expect net income for fiscal 2002 to be approximately $1.06-$1.11 per diluted
share and net income for the fiscal 2002 second quarter to be approximately
$0.25 to $0.27 per diluted share. Our guidance for both fiscal 2002 and the
second quarter excludes special charges for FAS 133 and relocation expenses
related to the new distribution facilities in Atlanta and southern California."
Conference Call
Management will conduct a conference call and audio webcast at 11:00 a.m. ET on
December 4, 2001 to review the Company's quarterly results, market trends and
future outlook. The conference call dial-in number is 703-871-3795. The audio
webcast will be available, on a listen only basis, via the Internet at
http://www.viavid.com . Please allow extra time prior to the webcast to visit
the webcast site and download any software required to listen to the Internet
broadcast. The online archive of the webcast will be available for 30 days.
About United Natural Foods
United Natural Foods, Inc. carries and distributes over 30,000 products to more
than 7,000 customers nationwide. The Company serves a wide variety of retail
formats including conventional supermarket chains, natural product superstores
and independent retail operators.
For more information on United Natural Foods, Inc., visit the Company's web site
at www.unfi.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding United Natural's business which
are not historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, including but not limited to general business conditions, the impact
of competition and our dependence on principal customers, see "Risk Factors" in
the Company's annual report on Form 10-K filed with the Commission on October
23, 2001, and its other filings under the Securities Exchange Act of 1934, as
amended. Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only as of the date
made. United Natural Foods, Inc. is not undertaking to update any information in
the foregoing reports until the effective date of its future reports required by
applicable laws.
UNITED NATURAL FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
QUARTER ENDED
OCTOBER 31,
(In thousands, except per share data) 2001 2000
Net sales $280,315 $244,141
Cost of sales 225,314 196,091
Gross profit 55,001 48,051
Operating expenses 45,024 40,782
Amortization of intangibles 64 263
Total operating expenses 45,088 41,045
Operating income 9,913 7,006
Other expense (income):
Interest expense 1,746 1,778
Change in fair value of financial instruments 3,787 -
Other, net 44 (214)
Total other expense 5,577 1,564
Income before income taxes 4,336 5,442
Income taxes 1,734 2,177
Net income $2,602 $3,265
Per share data (basic):
Net income $0.14 $0.18
Weighted average basic shares of common stock 18,665 18,320
Per share data (diluted):
Net income $0.14 $0.18
Weighted average diluted shares of common stock 19,074 18,663
UNITED NATURAL FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands) OCTOBER 31, JULY, 31
2001 2001
(UNAUDITED)
ASSETS
Current assets:
Cash $5,309 $6,393
Accounts receivable, net 90,533 81,559
Notes receivable, trade 654 685
Inventories 124,861 110,653
Prepaid expenses 6,037 5,394
Deferred income taxes 3,799 3,513
Refundable income taxes - 366
Total current assets 231,193 208,563
Property & equipment, net 65,372 62,186
Other assets:
Notes receivable, trade, net 940 1,050
Goodwill, net 27,499 27,500
Covenants not to compete, net 155 180
Other, net 1,734 965
Total assets $326,893 $300,444
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable - line of credit $80,240 $68,056
Current installments of long-term debt 1,048 19,625
Current installment of obligations under
capital leases 1,049 1,120
Accounts payable 72,700 53,169
Accrued expenses 23,067 13,242
Income taxes payable 2,006 -
Total current liabilities 180,110 155,212
Long-term debt, excluding current installments 6,193 7,805
Deferred income taxes - -
Obligations under capital leases, excluding
current installments 1,885 1,484
Total liabilities 188,188 164,501
Stockholders' equity:
Preferred stock, $.01 par value,
authorized 5,000 shares; none issued
and outstanding
Common stock, $.01 par value,
authorized 50,000 shares; issued and
outstanding 18,666 at October 31, 2001;
issued and outstanding 18,653
at July 31, 2001 187 187
Additional paid-in capital 72,763 72,644
Unallocated shares of ESOP (2,217) (2,258)
Retained earnings 67,972 65,370
Total stockholders' equity 138,705 135,943
Total liabilities and stockholders' equity $326,893 $300,444
UNITED NATURAL FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
OCTOBER 31,
2001 2000
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,602 $3,265
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 1,814 1,825
Change in fair value of financial
instruments 3,787 -
Gain on disposals of property & equipment (3) (1)
Deferred income tax (benefit) expense (287) 99
Provision for doubtful accounts 513 537
Changes in assets and liabilities,
net of acquired companies:
Accounts receivable (9,487) (5,205)
Inventory (14,208) (3,448)
Prepaid expenses (643) (46)
Refundable income taxes 366 1,894
Other assets (728) 80
Notes receivable, trade 141 214
Accounts payable 19,532 17,819
Accrued expenses 6,038 167
Income taxes payable 2,006 -
Net cash provided by operating activities 11,443 17,200
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposals of property
and equipment 16 10
Capital expenditures (4,360) (3,692)
Net cash used in investing activities (4,344) (3,682)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under note payable 12,184 (5,504)
Repayments on long-term debt (20,189) (670)
Proceeds from long-term debt - 39
Principal payments of capital
lease obligations (299) (310)
Proceeds from exercise of stock options 121 427
Net cash used in financing activities (8,183) (6,018)
NET (DECREASE) INCREASE IN CASH (1,084) 7,500
Cash at beginning of period 6,393 1,943
Cash at end of period $5,309 $9,443
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $1,629 $1,615
Income taxes, net of refunds $196 $138
SOURCE United Natural Foods, Inc.
|
AT THE COMPANY: | AT THE FINANCIAL RELATIONS BOARD: |
|
|
Thomas Simone | Joseph Calabrese | Vanessa Schwartz |
|
Chairman of the Board | General Information | Analyst Information |
|
(707) 537-9872 | (212) 445-8434 | (212) 445-8433 |
Copyright (C) 2001 PR Newswire. All rights reserved.