United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q2 FY2019 Earnings Presentation
19 slides from United Natural Foods's earnings presentation, Mar 5, 2019
Slide 1: Q2 Fiscal 2019 Supplemental Slides
Q2 Fiscal 2019 Supplemental Slides March 5, 2019
Slide 2: Disclaimer
Disclaimer Certain information in this presentation and discussed on the conference call which this presentation accompanies constitutes forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding the Company’s business that are not hi
Slide 3: Second Quarter Fiscal 2019 Supplemental Presentation
Second Quarter Fiscal 2019 Supplemental Presentation This material is provided as a supplement to UNFI’s March 5, 2019 press release announcing second quarter results for the period ended January 26, 2019. 3 Better Food. Better Future.
Slide 4: Key Accomplishments
Key Accomplishments Second Quarter Fiscal 2019 • Grew legacy UNFI sales by 5.8% • Paid down approximately $120 million of outstanding net debt with cash generated in the quarter including asset sale proceeds • Won new business totaling nearly $200M on an annualized basis • Completed sale of Hornbach
Slide 5: Sales: Q2 FY18 to Q2 FY19
Sales: Q2 FY18 to Q2 FY19 Second quarter sales increase driven by addition of SUPERVALU ($’s in Millions) Q2 FY18 Net Sales Supernatural Independents Supermarkets Other Q2 FY19 Net Sales 5 Better Food. Better Future.
Slide 6: Adjusted EBITDA: Q2 FY18 to Q2 FY19
Adjusted EBITDA: Q2 FY18 to Q2 FY19 Second quarter Adjusted EBITDA increase driven by addition of SUPERVALU ($’s in Thousands) Q2 FY18 Definition Q2 FY18 – New Adjusted Depreciation / Share Based Disc Ops / Q2 FY19 Adjusted Change (Exclude Definition Operating Amortization Compensation Other Adjuste
Slide 7: Q2 Capital Structure
Q2 Capital Structure ($'s in Millions) Maturity Rate Q1 FY19 Q2 FY19 Secured term loan B-1 October 2025 L + 4.25% $ 1,800 $ 1,800 Secured term loan B-2 October 2019 L + 2.00% 150 103 $2.1B ABL revolver October 2023 L + 1.25% / Prime + 0.25% 1,327 1,242 Unsecured bonds & premium (SVU) (1) 7.41% 547 C
Slide 8: Integration
Integration Integration on-track • Nearly 10% reduction in combined administrative workforce to date • Standardized Associated Grocers of Florida onto SUPERVALU systems • Indirect procurement team working on 44 projects • Implemented better of legacy organizations’ payment terms 8 Better Food. Bette
Slide 9: 338(g) Election For SUPERVALU Acquisition
338(g) Election For SUPERVALU Acquisition Election generates meaningful tax savings over time • As a result of the acquisition of SUPERVALU, UNFI is expecting to utilize a significant portion of the $2.9B capital loss carryforward generated from the SUPERVALU divestiture of Albertson’s in March 2013
Slide 10: Retail Divestiture
Retail Divestiture All banners reported in Discontinued Operations Continue to operate until divested Sold December 2018 Sold / closed November 2018 Expect to complete sale of remaining 5 stores by end of Q3 10 Better Food. Better Future.
Slide 11: Fiscal 2019 Guidance – 53 weeks
Fiscal 2019 Guidance – 53 weeks Consolidated UNFI Sales • $21.5 - $22.0 billion • $580 - $610 million; including discontinued operations Adjusted EBITDA (1) • Decrease from prior $650 - $665 million due to higher transition and integration costs • $181 - $191 million Adjusted Interest Expense • Excl
Slide 12: Changes to Adjusted EBITDA Guidance: December 2018 vs March 2019
Changes to Adjusted EBITDA Guidance: December 2018 vs March 2019 ($’s in Thousands) Midpoint December Updated Customer Mix Shift and LIFO Election and Midpoint March 2018 Adj EBITDA Distribution Decreased Vendor Inflation Impact 2019 Adj EBITDA Guidance (1) Center Network Promotional Activity Guidan
Slide 13: Changes to Adjusted EPS Guidance: December 2018 vs March 2019
Changes to Adjusted EPS Guidance: December 2018 vs March 2019 Midpoint December Adjusted Depreciation / Share Based Midpoint March 2019 Tax Impact of 2018 Adj. Earnings Per EBITDA Amortization Compensation / Adj. Earnings Per Adjustments / Share Guidance (1) Expense Net Periodic Share Guidance (1) R
Slide 14: Appendix
Appendix 14 Better Food. Better Future.
Slide 15: Reconciliation – Q2 FY19 and Q2 FY18 Adjusted EBITDA
Reconciliation – Q2 FY19 and Q2 FY18 Adjusted EBITDA 15 Better Food. Better Future.
Slide 16: Reconciliation – FY19 Guidance for Adjusted EBITDA
Reconciliation – FY19 Guidance for Adjusted EBITDA 16 Better Food. Better Future.
Slide 17: Reconciliation – FY19 Guidance for Adjusted EPS
Reconciliation – FY19 Guidance for Adjusted EPS 17 Better Food. Better Future.
Slide 18: Reconciliation – FY19 Guidance for Adjusted EBITDA (as provided December 6, 2018)
Reconciliation – FY19 Guidance for Adjusted EBITDA (as provided December 6, 2018) 18 Better Food. Better Future.
Slide 19: Reconciliation – FY19 Guidance for Adjusted EPS (as provided December 6, 2018)
Reconciliation – FY19 Guidance for Adjusted EPS (as provided December 6, 2018) 19 Better Food. Better Future.
United Natural Foods — Q2 FY2019 Earnings Presentation on 6ix