United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q4 2021 Earnings Presentation
22 slides from United Natural Foods's earnings presentation, Sep 28, 2021
Slide 1: Fiscal 2021 4th Quarter Supplemental Slides
Fiscal 2021 4th Quarter Supplemental Slides September 28, 2021 1
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: Strong Finish To Fiscal 2021
Strong Finish To Fiscal 2021 e aCrA RL eE s u l t s Fourth Quarter Adjusted Adjusted Sales & EFRu lIlNY S (1) EBITDA (1) EPS $6.7B $201M $1.18 r W (0.5)% +11.3% h LQFuI La Lr t Pe O +1.5% Fiscal 2021 F o u rFt U Adjusted(1) Adjusted (1) Sales EBITDA EPS $27B $746M $3.88 +1.5% +10.8% +42.6% 3 (1) See
Slide 4: Fourth Quarter Highlights
SC R cIcNo m pA Em e n t s l i Ls h Unlock UNFI the Pride e yE A Retail UNFI Optimized Pride KW Customer Experience rO F o u r t Fh UQLuFaI Lr tLe P (1) • Sales of $6.7 billion were up 7.5% on a two-year stack basis (2) • Reduced outstanding net debt by $142 million and lowered net debt to adjusted
Slide 5: Q4 consolidated sales
Q4 consolidated sales Eillions) $ 6,767 (67) n LM 48 $ 6,735 t s I (N$ ’SsCi A 132 (39) (110) 4 s uEl R F o u r t h FQUuLaFrI tLeLr PROe W Q4 FY20 Net Sales Chains Independent Supernatural Retail Other Eliminations (1) Q4 FY21 Net Sales Retailers 5 (1) Intercompany sales that are eliminated upon con
Slide 6: Q4 adjusted EBITDA
Q4 adjusted EBITDA 10 (5) Eillions) n LM t s I (N$ ’SsCi A (2) s uEl R F o u r t h FQUuLaFrI tLeLr PROe W $ 201 $ 198 Q4 FY20 Wholesale / Retail Disc Ops Q4 FY21 (1) (1) Adjusted EBITDA Other / Elims Adjusted EBITDA 6 (1) See appendix for the Company’s definition of Adjusted EBITDA and the reconcili
Slide 7: Capital structure reflects continued debt paydown
Capital structure reflects continued debt paydown Strong cash flow generation led to $317 million reduction in net debt in fiscal 2021 ($'s in Millions) Maturity Rate Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Secured term loan B-1 (1), (3) October 2025 L + 3.50% (2) $ 1,773 $ 1,165 $ 1,015 $ 1,002 $ 1
Slide 8: Fiscal 2022 Outlook
8 FULFILL POWER IN SCALE 2022 Fiscal Outlook
Slide 9: Better Food. Better Future.
Q3 9 Better Food. Better Future.
Slide 10: Fiscal 2022 Outlook
Fiscal 2022(1) Outlook Includes sales growth of ~ $1 billion (at midpoint) within the $140 billion addressable market Net Sales Adjusted EBITDA (2) Adjusted EPS (2) Net Debt Reduction l oCoAkL E Nt S $27.8 - $28.3 B $760 - $790 M $3.90 - $4.20 $100 - $150 M 0 2E2R OI u s cLaPl O2 W F U L FF Ii L 4%
Slide 11: Fiscal 2022 Sales Growth Outlook
Fiscal 2022 Sales Growth Outlook (Net sales of $27.8 to $28.3 billion in fiscal 2022) ~1% (2)% to (1)% 4% to 5% o kA L E 3% to 5% 2E F U LFFiIsLcLa lP2O0W 2 RO IuNt lSo C Net New Business Inflation Market Contraction Fiscal 2022 Net Sales Growth 11
Slide 12: Fiscal 2022 Adjusted EBITDA Growth Outlook
Fiscal 2022 Adjusted EBITDA Growth Outlook (1) (Adjusted EBITDA of $760 - $790 million in fiscal 2022) 4% to 6% ~ (2)% o kA L E 2 RO IuNt lSo C (2)% to (1)% 2E F U LFFiIsLcLa lP2O0W 3% to 4% ~(1)% 2% to 6% Increased sales Value Path (net Save A Lot TSA Higher benefit costs Riverside SLB Fiscal 2022
Slide 13: Fiscal 2022 Adjusted EPS Growth Outlook
Fiscal 2022 Adjusted EPS Growth Outlook (1) (Adjusted EPS of $3.90 - $4.20 in fiscal 2022 includes ~$0.34 in lower non-cash pension income) ~ $0.31 ~ $(0.34) o kA L E 2 RO IuNt lSo C $0.15 - $0.53 2E ~ $(0.05) F U LFFiIsLcLa lP2O0W $(0.05) to $(0.13) $0.02 to $0.32 Adjusted EBITDA Interest expense P
Slide 14: Appendix
UNFI Appendix
Slide 15: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA The non-GAAP adjusted EBITDA measure is defined as a consolidated measure inclusive of continuing and discontinued operations results, which we reconcile by adding Net income (loss) from continuing operations, less net income attributable to noncontrolling interests,
Slide 16: Reconciliation – Adjusted EPS
Reconciliation – Adjusted EPS (1) See slide 17 for definition of adjusted EPS 16 Better Food. Better Future.
Slide 17: Reconciliation – FY22 Outlook
Reconciliation – FY22 Outlook The non-GAAP adjusted earnings per diluted common share measure is a consolidated measure, which the Company reconciles by adding Net income attributable to UNFI plus goodwill impairment benefits and charges, restructuring, acquisition, and integration related expenses,
Slide 18: Reconciliation – Adjusted Effective Tax Rate
Reconciliation – Adjusted Effective Tax Rate The non-GAAP adjusted effective tax rate excludes the potential impact of changes to various uncertain tax positions and valuation allowances, as well as stock compensation accounting (ASU 2016-09). 18 Better Food. Better Future.
Slide 19: Reconciliation – Last Four Quarters Adjusted EBITDA
Reconciliation – Last Four Quarters Adjusted EBITDA (1) 19 Better Food. Better Future. (1) See slide 15 for the definition of adjusted EBITDA.
Slide 20: Calculation – Net Debt to Adjusted EBITDA Leverage Ratio
Calculation – Net Debt to Adjusted EBITDA Leverage Ratio The non-GAAP adjusted EBITDA leverage ratio is defined as the face value of outstanding debt less cash and cash equivalents divided by the trailing four quarters adjusted EBITDA (the definition of which is shown on slide 15). Beginning in the
Slide 21: Adjusted EBITDA By Quarter – Fiscal 2021 and Fiscal 2020
Adjusted EBITDA By Quarter – Fiscal 2021 and Fiscal 2020 (1) (1) See slide 15 for the definition of adjusted EBITDA. 21 Better Food. Better Future.
Slide 22: Adjusted EBITDA By Segment
(1) Adjusted EBITDA By Segment (1) See slide 15 for the definition of adjusted EBITDA. 22 Better Food. Better Future.