Q2 Fiscal 2015 Net Sales Increased 22.5% Year-over-Year to Record
$2.02 Billion
Updates Fiscal 2015 Financial Guidance
PROVIDENCE, R.I.--(BUSINESS WIRE)--Mar. 9, 2015--
United Natural Foods, Inc. (Nasdaq: UNFI) (the "Company" or "UNFI")
today reported financial results for the second quarter of fiscal 2015
ended January 31, 2015.
Second Quarter Fiscal 2015 Highlights
-
Net sales increased 22.5% to $2.02 billion for the second
quarter of fiscal 2015 compared to $1.65 billion for the same period
last fiscal year
-
Operating income increased 1.3% to $49.5 million for the second
quarter of fiscal 2015 compared to $48.8 million for the same period
last fiscal year; adjusted to exclude the effect of a $7.7 million
non-recurring reduction in net sales, adjusted operating income
increased 17.2% to $57.2 million
“In the second quarter fiscal 2015 UNFI surpassed $2.0 billion in
quarterly net sales for the first time in its history, continuing to
demonstrate strong demand for our products and services. We also faced
several challenges during the quarter highlighted by weakness in the
Canadian dollar and a non-recurring reduction to net sales associated
with a contractual obligation to a customer that we identified and
brought to their attention. Despite these challenges we delivered on an
adjusted basis operating income growth of over 17% during the quarter
and 21% year to date,” said Steven Spinner, President and Chief
Executive Officer.
Net sales for the second quarter of fiscal 2015 increased 22.5%, or
$370.5 million, to $2.02 billion from $1.65 billion in the second
quarter of fiscal 2014. The second quarter of fiscal 2015 included net
sales of approximately $232.6 million from the Company's acquisition of
Tony's Fine Foods ("Tony's") in the fourth quarter of fiscal 2014. In
the second quarter, the Company recognized a non-recurring reduction in
net sales of $7.7 million to reflect amounts owed to a customer
resulting from an incorrect calculation of contractual obligations to a
customer from fiscal 2009 through fiscal 2014. The Company identified
the incorrect calculation and brought it to the attention of its
customer. The Company is recognizing the reduction in the current fiscal
year because it has concluded that the impact on prior periods was not
material. The aggregate amount of the reduction in net sales related to
this incorrect calculation was $9.3 million, which includes a $1.6
million reduction in net sales in the first quarter of fiscal 2015.
Gross margin decreased 145 basis points to 14.8% for the second quarter
of fiscal 2015 compared to 16.3% for the same period last year. The
decrease was primarily due to the dilution from Tony's net sales,
unfavorable foreign exchange for the Company's Canadian business, a
shift in mix of sales, lower fuel surcharges, and the non-recurring item
noted above.
Total operating expenses were 12.4% as a percentage of net sales for the
second quarter of fiscal 2015, a decrease of 94 basis points compared
with the same period last fiscal year. Total operating expenses
increased $30.4 million, or 13.8%, to $249.7 million for the second
quarter of fiscal 2015 as compared to $219.3 million in the second
quarter of fiscal 2014, primarily due to additional costs required to
service higher sales volume. Total operating expenses for the second
quarter of fiscal 2015 included a $0.2 million restructuring charge due
to the closure of the Company's Aux Mille facility located in Quebec,
Canada and startup costs of approximately $0.6 million related to the
Company's Hudson Valley, New York and Auburn, California facilities.
Operating income increased 1.3%, or $0.7 million, to $49.5 million for
the second quarter of fiscal 2015 compared to $48.8 million for the
second quarter of fiscal 2014. As a percentage of net sales, operating
income for the second quarter of fiscal 2015 decreased 52 basis points
to 2.5% compared to the same period last fiscal year. Adjusted operating
income increased 17.2%, or $8.4 million, to $57.2 million for the second
quarter of fiscal 2015, excluding the reduction in net sales noted above.
Net income for the second quarter of fiscal 2015 decreased $0.1 million,
or 0.4%, to $27.8 million, or $0.55 per diluted share, from $28.0
million, or $0.56 per diluted share, for the second quarter of fiscal
2014. Adjusted net income for the second quarter of fiscal 2015
increased $4.6 million, or 16.4%, to $32.5 million, or $0.09 per diluted
share, to $0.65 per diluted share excluding the reduction in net sales
noted above. Adjusted operating income, adjusted net income and adjusted
earnings per diluted share are non-GAAP financial measures. Please refer
to the tables in this press release for a reconciliation of all non-GAAP
financial measures.
“During the quarter we continued to improve our business through
increasing capacity and network optimization. Specifically, we opened
two new distribution centers and closed an underperforming location in
Quebec Canada, merging it into our Montreal facility. We’ve made
long-term strategic decisions to ensure that our growth rate continues
despite the short-term cost,” added Mr. Spinner.
Fiscal 2015 Year to Date Summary
Net sales for the six months ended January 31, 2015 totaled $4.01
billion, a 23.4% increase over the comparable prior fiscal year period.
Gross margin decreased 119 basis points to 15.4% compared to the six
months ended February 1, 2014. This decrease was primarily due to the
dilution from Tony's net sales, a shift in mix of sales, unfavorable
foreign exchange for the Company's Canadian business, and the
non-recurring item noted above.
At 12.7% of net sales, total operating expenses for the six months ended
January 31, 2015 were 89 basis points lower than the comparable prior
fiscal year period. Total operating expenses increased $67.8 million, or
15.3%, to $510.3 million from $442.5 million for the six months ended
February 1, 2014. The six months ended January 31, 2015 included startup
costs of approximately $1.8 million related to the Company's Hudson
Valley, New York and Auburn, California facilities, $0.6 million
associated with the write-off of an intangible asset related to the
Company's Canadian division, which was acquired in June 2010, a $0.2
million restructuring charge related to the closure of the Company's Aux
Mille facility located in Quebec, Canada, and approximately $0.3 million
in costs related to the Company's acquisition of Tony's.
Operating income for the six months ended January 31, 2015 increased
11.4%, or $11.0 million, to $107.9 million from $96.9 million for the
six months ended February 1, 2014. Operating income as a percentage of
net sales decreased 29 basis points to 2.7% compared to the same period
last fiscal year. Adjusted operating income increased $20.4 million, or
21.0%, to $117.2 million for the six months ended January 31, 2015,
excluding the reduction in net sales noted above.
Net income for the six months ended January 31, 2015 increased $5.2
million, or 9.3%, to $60.9 million, or $1.21 per diluted share, from
$55.7 million, or $1.12 per diluted share for the six months ended
February 1, 2014. Adjusted net income for the six months ended January
31, 2015 increased $10.8 million, or 19.4%, to $66.5 million, or $0.21
per diluted share, to $1.33 per diluted share excluding the reduction in
net sales noted above.
Updated Fiscal 2015 Guidance
Based on UNFI's performance to date and the current outlook for the
remainder of fiscal 2015, UNFI is updating its previous guidance for
fiscal 2015 provided on September 17, 2014, to reflect the continued
negative impact of the decline in the Canadian dollar on the Company's
results and the impact of the $7.7 million reduction in net sales
recorded in the second quarter of fiscal 2015. For fiscal 2015, ending
August 1, 2015, the Company expects net sales in the range of
approximately $8.19 to $8.29 billion, an increase of approximately 20.5%
to 22.0% over fiscal 2014. The Company estimates GAAP earnings per
diluted share for fiscal 2015 in the range of approximately $2.81 to
$2.90 per share, an increase of approximately 11.5% to 15.1% over fiscal
2014 GAAP earnings per diluted share of $2.52. Adjusted for the impact
of the $7.7 million reduction in net sales, adjusted earnings per
diluted share for fiscal 2015 is expected to be in the range of $2.90 to
$2.99, an increase of approximately 15.1% to 18.7% over fiscal 2014 GAAP
earnings per diluted share of $2.52.
Conference Call & Webcast
The Company's second quarter 2015 conference call and audio webcast will
be held today, Monday, March 9, 2015 at 5:00 p.m. EDT. The
audio webcast of the conference call will be available to the public, on
a listen-only basis, via the Internet at the Investors section of the
Company's website at www.unfi.com.
The online archive of the webcast will be available on the Company's
website for 30 days.
About United Natural Foods
United Natural Foods, Inc. (http://www.unfi.com)
carries and distributes more than 80,000 products to more than 40,000
customer locations throughout the United States and Canada. The Company
serves a wide variety of retail formats including conventional
supermarket chains, natural product superstores, independent retail
operators and the food service channel. United Natural Foods, Inc. was
ranked by Forbes Magazine in 2014 as one of "America's Best Managed
Companies," ranked by Fortune in 2012 as one of its "Most Admired
American Companies," and chosen by Food Logistics Magazine as one of its
2012 Top 20 Green Providers.
For more information on United Natural Foods, Inc., visit the
Company’s website at 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 and are based on current
expectations and management estimates; actual results may differ
materially. The risks and uncertainties which could impact these
statements are described in the Company's filings under the Securities
Exchange Act of 1934, as amended, including its annual report on Form
10-K filed with the Securities and Exchange Commission (SEC) on October
1, 2014, its quarterly report on Form 10-Q filed with the SEC on
December 10, 2014 and other filings the Company makes with the SEC, and
include, but are not limited to, the Company's dependence on principal
customers; the Company's sensitivity to general economic conditions,
including the current economic environment, changes in disposable income
levels and consumer spending trends; the Company's ability to reduce its
expenses in amounts sufficient to offset its increased focus on sales to
conventional supermarkets and the shift in the Company's product mix as
a result of its acquisition of Tony's and the resulting lower gross
margins on those sales; the Company's reliance on the continued growth
in sales of natural and organic foods and non-food products in
comparison to conventional products; the Company's ability to timely and
successfully deploy its warehouse management system throughout its
distribution centers and its transportation management system across the
Company; volatility in fuel costs; the Company's sensitivity to
inflationary and deflationary pressures; the relatively low margins and
economic sensitivity of the Company's business; the potential for
disruptions in the Company's supply chain by circumstances beyond its
control; the risk of interruption of supplies due to lack of long-term
contracts, severe weather, work stoppages or otherwise; union-organizing
activities that could cause labor relations difficulties and increased
costs; the ability to identify and successfully complete acquisitions of
other natural, organic and specialty food and non-food products
distributors; management's allocation of capital and the timing of
capital expenditures; and the Company's ability to successfully deploy
its operational initiatives to achieve synergies from the acquisition of
Tony’s. 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 are based on a number of assumptions, many of which are
outside the Company's control and 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 Financial Measures: To supplement its financial statements
presented on a generally accepted accounting principles (“GAAP”) basis,
the Company has included in this press release non-GAAP financial
measures (including adjusted operating income, adjusted net income and
adjusted earnings per diluted share) in each case excluding the impact
of a reduction in net sales discussed within this press release. The
reconciliations of non-GAAP financial measures to the comparable GAAP
financial measures are presented in the tables appearing below labeled
"Condensed Consolidated Statements of Income with Adjustments" for the
three and six months ended January 31, 2015. The presentation of these
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for any measure prepared in accordance with
GAAP. The Company believes that presenting its adjusted operating
income, adjusted net income and adjusted earnings per diluted share for
the three and six months ended January 31, 2015 excluding the impact of
a reduction in net sales aids in making period-to-period comparisons and
is a meaningful indication of its operating performance. The Company's
management utilizes this non-GAAP financial information to compare the
Company's operating performance during the 2015 fiscal year versus the
comparable periods in the 2014 fiscal year and to internally prepared
projections.
|
|
|
|
|
|
|
UNITED NATURAL FOODS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
|
(In thousands, except per share data amounts)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
January 31,
2015
|
|
February 1,
2014
|
|
January 31,
2015
|
|
February 1,
2014
|
|
Net sales
|
|
$
|
2,016,546
|
|
|
$
|
1,646,041
|
|
|
$
|
4,009,022
|
|
|
$
|
3,248,052
|
|
|
Cost of sales
|
|
1,717,347
|
|
|
1,377,874
|
|
|
3,390,827
|
|
|
2,708,709
|
|
|
Gross profit
|
|
299,199
|
|
|
268,167
|
|
|
618,195
|
|
|
539,343
|
|
|
Operating expenses
|
|
249,448
|
|
|
219,322
|
|
|
509,496
|
|
|
442,472
|
|
|
Restructuring and asset impairment expenses
|
|
248
|
|
|
—
|
|
|
803
|
|
|
—
|
|
|
Total operating expenses
|
|
249,696
|
|
|
219,322
|
|
|
510,299
|
|
|
442,472
|
|
|
Operating income
|
|
49,503
|
|
|
48,845
|
|
|
107,896
|
|
|
96,871
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
3,554
|
|
|
1,782
|
|
|
6,809
|
|
|
3,636
|
|
|
Interest income
|
|
(69
|
)
|
|
(125
|
)
|
|
(162
|
)
|
|
(245
|
)
|
|
Other, net
|
|
(5
|
)
|
|
602
|
|
|
611
|
|
|
621
|
|
|
Total other expense, net
|
|
3,480
|
|
|
2,259
|
|
|
7,258
|
|
|
4,012
|
|
|
Income before income taxes
|
|
46,023
|
|
|
46,586
|
|
|
100,638
|
|
|
92,859
|
|
|
Provision for income taxes
|
|
18,179
|
|
|
18,635
|
|
|
39,752
|
|
|
37,144
|
|
|
Net income
|
|
$
|
27,844
|
|
|
$
|
27,951
|
|
|
$
|
60,886
|
|
|
$
|
55,715
|
|
|
Basic per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.56
|
|
|
$
|
0.56
|
|
|
$
|
1.22
|
|
|
$
|
1.13
|
|
|
Weighted average basic shares of common stock outstanding
|
|
50,025
|
|
|
49,615
|
|
|
49,957
|
|
|
49,490
|
|
|
Diluted per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.55
|
|
|
$
|
0.56
|
|
|
$
|
1.21
|
|
|
$
|
1.12
|
|
|
Weighted average diluted shares of common stock outstanding
|
|
50,277
|
|
|
49,873
|
|
|
50,195
|
|
|
49,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED NATURAL FOODS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
January 31,
2015
|
|
August 2,
2014
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
27,474
|
|
|
$
|
16,116
|
|
|
Accounts receivable, net
|
|
493,873
|
|
|
449,870
|
|
|
Inventories
|
|
922,246
|
|
|
834,722
|
|
|
Prepaid expenses and other current assets
|
|
72,952
|
|
|
45,064
|
|
|
Deferred income taxes
|
|
38,570
|
|
|
32,518
|
|
|
Total current assets
|
|
1,555,115
|
|
|
1,378,290
|
|
|
Property & equipment, net
|
|
528,674
|
|
|
483,960
|
|
|
Goodwill
|
|
267,723
|
|
|
274,548
|
|
|
Intangible assets, net
|
|
129,847
|
|
|
134,989
|
|
|
Other assets
|
|
29,531
|
|
|
25,446
|
|
|
Total assets
|
|
$
|
2,510,890
|
|
|
$
|
2,297,233
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
430,227
|
|
|
$
|
385,890
|
|
|
Accrued expenses and other current liabilities
|
|
138,024
|
|
|
136,959
|
|
|
Current portion of long-term debt
|
|
11,090
|
|
|
990
|
|
|
Total current liabilities
|
|
579,341
|
|
|
523,839
|
|
|
Notes payable
|
|
364,622
|
|
|
415,660
|
|
|
Long-term debt, excluding current portion
|
|
179,289
|
|
|
32,510
|
|
|
Deferred income taxes
|
|
50,995
|
|
|
50,995
|
|
|
Other long-term liabilities
|
|
31,016
|
|
|
30,865
|
|
|
Total liabilities
|
|
1,205,263
|
|
|
1,053,869
|
|
|
Commitments and contingencies
|
|
—
|
|
|
—
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 5,000 shares; none
issued or outstanding
|
|
—
|
|
|
—
|
|
|
Common stock, $0.01 par value, authorized 100,000 shares; 50,071
issued
|
|
|
|
|
|
|
|
and outstanding shares at January 31, 2015; 49,771 issued and
|
|
|
|
|
|
|
|
outstanding shares at August 2, 2014
|
|
501
|
|
|
498
|
|
|
Additional paid-in capital
|
|
416,126
|
|
|
402,875
|
|
|
Unallocated shares of Employee Stock Ownership Plan
|
|
—
|
|
|
(14
|
)
|
|
Accumulated other comprehensive loss
|
|
(17,044
|
)
|
|
(5,152
|
)
|
|
Retained earnings
|
|
906,044
|
|
|
845,157
|
|
|
Total stockholders’ equity
|
|
1,305,627
|
|
|
1,243,364
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
2,510,890
|
|
|
$
|
2,297,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED NATURAL FOODS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
January 31,
2015
|
|
February 1,
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
60,886
|
|
|
$
|
55,715
|
|
|
Adjustments to reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
29,657
|
|
|
22,998
|
|
|
Share-based compensation
|
|
9,554
|
|
|
9,507
|
|
|
(Gain) loss on disposals of property and equipment
|
|
(779
|
)
|
|
46
|
|
|
Excess tax benefits from share-based payment arrangements
|
|
(2,661
|
)
|
|
(2,321
|
)
|
|
Restructuring and asset impairment
|
|
803
|
|
|
—
|
|
|
Deferred income taxes
|
|
(6,052
|
)
|
|
—
|
|
|
Provision for doubtful accounts
|
|
2,302
|
|
|
1,601
|
|
|
Non-cash interest expense
|
|
129
|
|
|
1,050
|
|
|
Changes in assets and liabilities, net of acquired businesses:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(50,753
|
)
|
|
(66,988
|
)
|
|
Inventories
|
|
(92,525
|
)
|
|
(60,139
|
)
|
|
Prepaid expenses and other assets
|
|
(22,217
|
)
|
|
(15,953
|
)
|
|
Accounts payable
|
|
20,146
|
|
|
19,022
|
|
|
Accrued expenses and other liabilities
|
|
(1,389
|
)
|
|
(363
|
)
|
|
Net cash used in operating activities
|
|
(52,899
|
)
|
|
(35,825
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(56,163
|
)
|
|
(76,320
|
)
|
|
Purchases of acquired businesses, net of cash acquired
|
|
(7,987
|
)
|
|
(23,005
|
)
|
|
Proceeds from disposals of property and equipment
|
|
840
|
|
|
102
|
|
|
Long-term investment
|
|
(3,000
|
)
|
|
—
|
|
|
Net cash used in investing activities
|
|
(66,310
|
)
|
|
(99,223
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Repayments of long-term debt
|
|
(5,539
|
)
|
|
(396
|
)
|
|
Proceeds from borrowings from long-term debt
|
|
150,000
|
|
|
—
|
|
|
Proceeds from borrowings under revolving credit line
|
|
438,293
|
|
|
347,474
|
|
|
Repayments of borrowings under revolving credit line
|
|
(488,156
|
)
|
|
(237,284
|
)
|
|
Increase in bank overdraft
|
|
33,666
|
|
|
28,378
|
|
|
Proceeds from exercise of stock options
|
|
3,202
|
|
|
1,692
|
|
|
Payment of employee restricted stock tax withholdings
|
|
(2,163
|
)
|
|
(3,570
|
)
|
|
Excess tax benefits from share-based payment arrangements
|
|
2,661
|
|
|
2,321
|
|
|
Capitalized debt issuance costs
|
|
(900
|
)
|
|
—
|
|
|
Net cash provided by financing activities
|
|
131,064
|
|
|
138,615
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
|
(497
|
)
|
|
(103
|
)
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
11,358
|
|
|
3,464
|
|
|
Cash and cash equivalents at beginning of period
|
|
16,116
|
|
|
11,111
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
27,474
|
|
|
$
|
14,575
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
6,868
|
|
|
$
|
2,925
|
|
|
Cash paid for federal and state income taxes, net of refunds
|
|
$
|
57,471
|
|
|
$
|
42,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED NATURAL FOODS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME WITH ADJUSTMENTS
|
|
Reconciliation of GAAP Results to Non-GAAP Presentation
(unaudited)
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
Three months ended January 31, 2015
|
|
|
|
|
GAAP
|
|
Adjustments
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,016,546
|
|
|
$
|
7,736
|
|
|
|
$
|
2,024,282
|
|
|
|
Cost of sales
|
|
1,717,347
|
|
|
—
|
|
|
|
1,717,347
|
|
|
|
Gross profit
|
|
299,199
|
|
|
7,736
|
|
|
|
306,935
|
|
|
|
Operating expenses
|
|
249,448
|
|
|
—
|
|
|
|
249,448
|
|
|
|
Restructuring and asset impairment expenses
|
|
248
|
|
|
—
|
|
|
|
248
|
|
|
|
Total operating expenses
|
|
249,696
|
|
|
—
|
|
|
|
249,696
|
|
|
|
Operating income
|
|
49,503
|
|
|
7,736
|
|
|
|
57,239
|
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
3,554
|
|
|
—
|
|
|
|
3,554
|
|
|
|
Interest income
|
|
(69
|
)
|
|
—
|
|
|
|
(69
|
)
|
|
|
Other, net
|
|
(5
|
)
|
|
—
|
|
|
|
(5
|
)
|
|
|
Total other expense, net
|
|
3,480
|
|
|
—
|
|
|
|
3,480
|
|
|
|
Income before income taxes
|
|
46,023
|
|
|
7,736
|
|
|
|
53,759
|
|
|
|
Provision for income taxes
|
|
18,179
|
|
|
3,056
|
|
|
|
21,235
|
|
|
|
Net income
|
|
$
|
27,844
|
|
|
$
|
4,680
|
|
|
|
$
|
32,524
|
|
|
|
Diluted per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.55
|
|
|
$
|
0.09
|
|
|
|
$
|
0.65
|
|
*
|
|
Weighted average diluted shares of common stock outstanding
|
|
50,277
|
|
|
—
|
|
|
|
50,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Reflects rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED NATURAL FOODS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME WITH ADJUSTMENTS
|
|
Reconciliation of GAAP Results to Non-GAAP Presentation
(unaudited)
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
Six months ended January 31, 2015
|
|
|
|
|
GAAP
|
|
Adjustments
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,009,022
|
|
|
$
|
9,326
|
|
|
|
$
|
4,018,348
|
|
|
|
Cost of sales
|
|
3,390,827
|
|
|
—
|
|
|
|
3,390,827
|
|
|
|
Gross profit
|
|
618,195
|
|
|
9,326
|
|
|
|
627,521
|
|
|
|
Operating expenses
|
|
509,496
|
|
|
—
|
|
|
|
509,496
|
|
|
|
Restructuring and asset impairment expenses
|
|
803
|
|
|
—
|
|
|
|
803
|
|
|
|
Total operating expenses
|
|
510,299
|
|
|
—
|
|
|
|
510,299
|
|
|
|
Operating income
|
|
107,896
|
|
|
9,326
|
|
|
|
117,222
|
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
6,809
|
|
|
—
|
|
|
|
6,809
|
|
|
|
Interest income
|
|
(162
|
)
|
|
—
|
|
|
|
(162
|
)
|
|
|
Other, net
|
|
611
|
|
|
—
|
|
|
|
611
|
|
|
|
Total other expense, net
|
|
7,258
|
|
|
—
|
|
|
|
7,258
|
|
|
|
Income before income taxes
|
|
100,638
|
|
|
9,326
|
|
|
|
109,964
|
|
|
|
Provision for income taxes
|
|
39,752
|
|
|
3,684
|
|
|
|
43,436
|
|
|
|
Net income
|
|
$
|
60,886
|
|
|
$
|
5,642
|
|
|
|
$
|
66,528
|
|
|
|
Diluted per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1.21
|
|
|
$
|
0.11
|
|
|
|
$
|
1.33
|
|
*
|
|
Weighted average diluted shares of common stock outstanding
|
|
50,195
|
|
|
|
|
|
|
50,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Reflects rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Guidance for GAAP Diluted Earnings per Common Share
to Non-GAAP
Adjusted Diluted Earnings per Common Share
(unaudited)
The following table details the effect of the adjustment for the
reduction in net sales to diluted earnings per share guidance, including
the reduction in net sales (GAAP basis), to diluted earnings per share
guidance, excluding the reduction in net sales (Non-GAAP basis) for the
fiscal year ending August 1, 2015:
|
|
|
Fiscal Year Ending August 1, 2015
|
|
|
|
Low Range
|
|
High Range
|
|
|
|
|
|
|
|
GAAP diluted earnings per common share
|
|
$
|
2.81
|
|
$
|
2.90
|
|
Less the impact of a $7.7 million reduction in net sales
|
|
0.09
|
|
0.09
|
|
Non-GAAP diluted earnings per common share
|
|
$
|
2.90
|
|
$
|
2.99
|
Source: United Natural Foods, Inc.
AT THE COMPANY:
Mark Shamber
Chief Financial Officer
(401)
528-8634
or
ICR
Katie Turner
General
Information
(646) 277-1228