United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q3 2022 Earnings Presentation
24 slides from United Natural Foods's earnings presentation, Jun 7, 2022
Slide 1: Fiscal 2022 3rd Quarter Supplemental Slides
Fiscal 2022 3rd Quarter Supplemental Slides June 7, 2022 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: Continued Growth in Q3 Fiscal 2022
Continued Growth in Q3 Fiscal 2022 t sL E r tEeRr IRNe sSuCl A Sales Adjusted Adjusted (1) $7.2B EBITDA (1) EPS PuOaW $1.10 F iI rLdL Q +9% $196M +10% +6% Lh FUT 3 (1) See appendix for reconciliations and definitions for non-GAAP figures; all percentages refer to changes compared to the third quarte
Slide 4: Unlock the UNFI Pride
i sLhEm e n t s N mSpCl A QLuFaIrLt Le r PKOeWy EARc cI o Unlock UNFI the Pride Retail Optimized UNFI Pride Customer Experience • Sales of $7.2 billion; Adjusted EBITDA (1) of $196 million • Increased full year guidance for sales, Adjusted EBITDA and Adjusted EPS (the latter two under revised defini
Slide 5: Q3 consolidated sales – broad based growth
Q3 consolidated sales – broad based growth ($’s in millions) 46 (16) $ 7,242 181 12 t sL E r tEeRr IRNe sSuCl A 234 154 PuOaW $ 6,631 Lh FUT F iI rLdL Q Q3 FY21 Net Sales Chains Independent Supernatural Retail Other Eliminations(1) Q3 FY22 Net Sales Retailers 5 (1) Intercompany sales that are elimin
Slide 6: Q3 Adjusted EBITDA
Q3 Adjusted EBITDA ($’s in millions) Increase driven by leveraging higher sales in Wholesale partially offset by investments in Retail 21 (9) (1) $ 196 t sL E $ 185 Lh FUT F iI rLdL Q r tEeRr IRNe sSuCl A PuOaW Q3 FY21 (1) Wholesale / Retail Disc Ops Q3 FY22 (1) Adjusted EBITDA Other / Elims Adjuste
Slide 7: Capital structure
Capital structure YTD net debt increase driven by investments in working capital to service customers ($'s in Millions) Maturity Rate Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Secured term loan B-1 (1) October 2025 L + 3.25% (2) $ 1,002 $ 1,002 $ 994 $ 844 $ 800 $2.1B ABL revolver (1) October 2023 L +
Slide 8: Fiscal 2022 Outlook
n WREe R F U L F I L LE aPr O t s S C ALE s u IlN 8 Outlook Fiscal 2022
Slide 9: Updating Fiscal 2022 Outlook
Updating Fiscal 2022(1) Outlook Includes sales growth of $2 billion (at midpoint) Net Sales Adjusted EBITDA (2) Adjusted EPS (2) Net Debt Reduction 2 0W2E2R OI uNt lSoCoAkL E $28.8 - $29.1 B $810 - $830 M $4.65 - $4.90 $150 - $200 M l O s cLa P F U L FF Ii L 7% growth 6% growth 14% growth (1) The ou
Slide 10: Full year Adjusted EBITDA guidance
Full year Adjusted EBITDA guidance Year-to-date results and improved outlook lead to increasing guidance for full year Adjusted EBITDA $’s in Millions 20 $ 820 d j uS sCtAe LdEE B I T D A 25 $ 800 o fR AI N e IfLi nLi tPi oOnW E $ 775 LF R e v i s eFdU D Midpoint Initial Initial LIFO Midpoint Initia
Slide 11: Full year Adjusted EPS guidance
Full year Adjusted EPS guidance Increased Adjusted EBITDA and lower expected depreciation expense drives higher guidance for full year adjusted EPS $0.43 $4.78 s tLeEd E P S $0.30 $4.35 o nE Ro fI NA dSjCu A $4.05 t iW R e v i Fs eUdL FDI eL fLi nPi O Midpoint Initial Initial LIFO Midpoint Initial I
Slide 12: Q3 Better Food. Better Future.
Q3 1 Better 2 Food. Better Future.
Slide 13: Fuel the Future Focuses On Our Customers, Suppliers and Associates
Fuel the Future Focuses On Our Customers, Suppliers and Associates Leverage unique insights to help create value l O F U L F I FLuL e P F uItNu rSeC A L E T hWeE R Attract, retain and Increase value develop talent; proposition to remain preferred strengthen employer of choice partnership role 13 … a
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 16 Note - See slide 17 for definition of adjusted EPS 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 valuati on 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 EPS By Quarter
Adjusted EPS By Quarter (1) 21 Better Food. Better Future. (1) See slide 17 for the definition of adjusted EPS
Slide 22: Adjusted EBITDA By Quarter
Adjusted EBITDA By Quarter (1) 22 Better Food. Better Future. (1) See slide 15 for the definition of adjusted EBITDA.
Slide 23: Adjusted EBITDA By Segment
(1) Adjusted EBITDA By Segment 23 (1) See slide 15 for the definition of adjusted EBITDA. Adjusted EBITDA margin rate is defined as adjusted EBITDA divided by total net sales. Better Food. Better Future.
Slide 24: Reconciliations – Fiscal 2024 net income to Adjusted EBITDA and EPS to adjusted EPS
(1) Reconciliations – Fiscal 2024 net income to Adjusted EBITDA and EPS to adjusted EPS 24 Better Food. Better Future. (1) See slides 15 and 17 for the definitions of adjusted EBITDA and adjusted EPS.