Revenues Expected to Increase 10% - 15% to $2.25 Billion - $2.35 Billion
Earnings Per Diluted Share Expected to Increase 15% - 20% to $1.14 - $1.19
DAYVILLE, Conn., July 13 /PRNewswire-FirstCall/ -- United Natural Foods,
Inc., (Nasdaq: UNFI) today provided its financial outlook for the fiscal year
ending July 31, 2006 and announced the acquisition of substantially all of the
assets of Roots & Fruits Cooperative, a privately-owned natural foods
distributor of fresh produce and perishables.
For the fiscal year ending July 31, 2006, revenues are expected to
increase approximately 10% to 15% from expected fiscal 2005 levels to a range
of $2.25 billion to $2.35 billion. Fiscal year 2006 earnings per diluted
share, excluding potential special items and the expensing of options, is
expected to be in the range of $1.14 to $1.19 per share, an increase of 15% to
20% over expected fiscal 2005 levels, excluding special items. The expected
cost impact for expensing options pursuant to the requirements of FAS 123R,
which is effective with the first quarter of fiscal 2006, ending October 31,
2005, will be provided with the release of the Company's results for fiscal
2005. Special items may include labor, moving and other costs related to the
expansion of the Company's distribution facilities. However, at this time the
Company does not know the extent or significance of these items or whether the
Company will in fact incur any of these or other special items in fiscal 2006.
The Company's guidance is based on a number of assumptions, which are
subject to change and many of which are outside the control of the Company.
If any of these assumptions vary, the Company's guidance may change. There
can be no assurance that the Company will achieve these results. A
description of the Company's use of non-GAAP information is provided under
"Non-GAAP Results" below.
Capitalizing on the ongoing strength and growth of the natural foods
industry, the Company expects to continue to invest in its people, facilities,
equipment and new technologies during fiscal year 2006. Capital expenditures
are expected to be in the range of $30 million to $35 million during fiscal
year 2006.
Steven Townsend, United Natural Foods' Chairman and Chief Executive
Officer said, "We continue to build solid momentum in the growth of our
business and the natural foods market continues to be strong. Our long-term
strategy and commitment to excel in the distribution of natural and organic
foods continues to yield strong results.
Looking ahead to fiscal 2006, we remain focused on continually improving
our service levels to all customers while providing the highest quality
standards, product assortments and value-added support services in the
industry."
Roots & Fruits Cooperative Acquisition
United Natural Foods also announced today that its wholly-owned
subsidiary, Albert's Organics, Inc., has completed the acquisition of
substantially all of the assets of Roots & Fruits Cooperative, a
Minnesota-based organic wholesale distributor of fresh produce and other
quality perishables. In operation since 1978, Roots & Fruits has annualized
revenues of approximately $20 million and distributes to approximately 500
customers in the upper Midwest region of the U.S. Roots & Fruits will become
a member of the Albert's Organics Family of Companies. Terms of the
acquisition were not disclosed.
"We are extremely pleased that Roots & Fruits has chosen to join United
Natural Foods," commented Mr. Townsend. "We will look to bring new products
and services to their well established customer base. With the addition of
Roots & Fruits, United Natural Foods will strengthen our position in the
Midwest which will provide opportunities for improving operating efficiencies
and additional economies of scale."
United Natural Foods expects that the acquisition will be slightly
dilutive to earnings per share for the fourth quarter of fiscal 2005, and
neutral to accretive for fiscal 2006 and accretive thereafter.
About United Natural Foods
United Natural Foods, Inc. carries and distributes more than 40,000
products to more than 20,000 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-Q
filed with the Commission on June 9, 2005, 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.
Non-GAAP Results: To supplement its financial statements presented on a
basis of generally accepted accounting principles in the United States of
America (GAAP), 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 GAAP.
SOURCE United Natural Foods, Inc.
-0- 07/13/2005
/CONTACT: Rick Puckett, Chief Financial Officer, United Natural Foods,
Inc., +1-860-779-2800; General Information - Joseph Calabrese, of Financial
Relations Board, +1-212-445-8434, for United Natural Foods, Inc./
/Web site: http://www.unfi.com /
(UNFI)