Program Aimed at Enhancing Long-term Shareholder Value and Reducing Dilution from Equity Incentive ProgramsDAYVILLE, Conn., Dec 3, 2004 /PRNewswire-FirstCall via COMTEX/ -- United Natural Foods,
Inc. (Nasdaq: UNFI) (the "Company") today announced that its Board of
Directors has authorized the Company to repurchase up to $50 million, or
approximately 4.5%, based on the closing price of the Company's common stock
on December 1, 2004, of its outstanding common shares. The Company's policy is
to repurchase shares, from time to time, through solicited or unsolicited
transactions in the open market or in privately negotiated transactions. The
number of shares to be purchased and the timing of the purchases will be based
on the level of cash balances, general business conditions and other factors,
including alternative investment opportunities. The Company expects to
purchase the shares beginning on or about February 2004 and continuing for the
next three years. The program may be discontinued at any time.
"Our goal is to continually look for ways to enhance long-term shareholder
value and the decision to initiate a share repurchase program reflects the
Board's confidence in United Natural Foods long-term growth prospects," said
Steven Townsend, Chairman and Chief Executive Officer. "We also believe this
action will assist in reducing dilution from the issuance of common stock
under our equity incentive plans in the future."
United Natural Foods has approximately 40.1 million common shares
outstanding as of November 30, 2004. This is the first stock repurchase
program in United Natural Foods history.
About United Natural Foods
The Company carries and distributes over 35,000 products to more than
18,000 customers nationwide. The Company serves a wide variety of retail
formats including conventional supermarket chains, natural product
superstores, independent retail operators and the food service channel. For
more information on United Natural Foods, Inc., visit the Company's website at
http://www.unfi.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this press release regarding the Company's business
that 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-K
filed with the Commission on October 14, 2004, 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. The Company is not undertaking to
update any information in the foregoing reports until the effective date of
its future reports required by applicable laws. Any projections of future
results of operations should not be construed in any manner as a guarantee
that such results will in fact occur. These projections are subject to change
and could differ materially from final reported results. The Company may from
time to time update these publicly announced projections, but it is not
obligated to do so.
SOURCE United Natural Foods, Inc.
Rick D. Puckett, Vice President, CFO and Treasurer of United
Natural Foods, Inc., +1-860-779-2800, or General Information, Joseph Calabrese
of Financial Relations Board, +1-212-827-3772, for United Natural Foods, Inc.
http://www.unfi.com