DAYVILLE, Conn., Jul 7, 2003 /PRNewswire-FirstCall via COMTEX/ -- United Natural Foods, Inc., (Nasdaq: UNFI) announced today that it anticipates
revenues, for the fiscal year ending July 31, 2004, in the range of
$1.55 billion to $1.57 billion, representing growth of approximately 15% over
fiscal year 2003. The Company also noted that gross margin is expected to be
in the high 19% to low 20% range. The gross profit figures reflect the impact
of the adoption of the Financial Accounting Standards Board's Emerging Issues
Task Force Issue No. 02-16, "Accounting by a Customer (Including a Reseller)
for Certain Consideration Received from a Vendor," which requires the
reclassification of advertising income to cost of goods sold from operating
expenses. The adoption of this pronouncement will have no impact on operating
income, net income or earnings per share in fiscal year 2003 or fiscal year
2004.
The Company expects earnings per diluted share, excluding potential
special items, in the range of $1.42 -- $1.46 per share. This guidance
reflects the impact of compliance with Section 404 of the Sarbanes-Oxley Act,
which is expected to negatively impact fiscal 2004 earnings by approximately
$0.02 per share. Special items may include non-cash expense related to the
change in fair value of interest rate swaps and related option agreements
caused by unfavorable changes in yield curves, and labor, moving and other
costs related to the expansion of the Company's Iowa City, Iowa, Dayville,
Connecticut and Bridgeport, New Jersey distribution facilities. A description
of the Company's use of non-GAAP information is provided under "Non-GAAP
Results" below.
Steven Townsend, the Company's Chief Executive Officer, commented, "With
the acquisition and ongoing integration of Blooming Prairie and Northeast
Cooperatives and the recent completion of our Chesterfield, New Hampshire
expansion we remain well positioned to capitalize on the growing market for
natural products. Looking forward into fiscal 2004, we will continue to
pursue a broad range of internal and external growth strategies. Central to
this focus is an emphasis on maximizing profitability, expanding our customer
base and increasing our penetration with existing accounts. Furthermore, our
fiscal 2004 plan includes taking advantage of historically low interest rates
by scheduling several capital projects that were originally planned for fiscal
2005. Therefore, we expect capital expenditures for fiscal 2004 to range from
$24 million to $28 million."
About United Natural Foods
United Natural Foods, Inc. carries and distributes over 30,500 products to
more than 11,000 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 quarterly report on Form 10-Q
filed with the Commission on June 16, 2003, 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 is not undertaking to
update any information in the foregoing reports until the effective date of
its future reports required by applicable laws.
Non-GAAP Results: To supplement its financial statements presented on a
GAAP basis, the Company uses non-GAAP additional measures of operating
results, net earnings and earnings per share adjusted to exclude special
charges. The Company believes that the use of these additional measures is
appropriate to enhance an overall understanding of its past financial
performance and also its prospects for the future as these special charges are
not expected to be part of the Company's ongoing business. The adjustments to
the Company's GAAP results are made with the intent of providing both
management and investors with a more complete understanding of the underlying
operational results and trends and its marketplace performance. For example,
these adjusted non-GAAP results are among the primary indicators management
uses as a basis for its planning and forecasting of future periods. The
presentation of this additional information is not meant to be considered in
isolation or as a substitute for net earnings or diluted earnings per share
prepared in accordance with generally accepted accounting principles in the
United States.
SOURCE United Natural Foods, Inc.
Rick D. Puckett, Chief Financial Officer of United Natural
Foods, Inc., +1-860-779-2800, or General Information, Joseph Calabrese,
+1-212-445-8434, or Analyst Information, Vanessa Schwartz +1-212-445-8433,
both of FRB Weber Shandwick
http://www.unfi.com