United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q1 2021 Earnings Presentation
21 slides from United Natural Foods's earnings presentation, Dec 9, 2020
Slide 1: Q1 Fiscal 2021 Supplemental Slides
Q1 Fiscal 2021 Supplemental Slides December 9, 2020
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: Key Accomplishments
Key Accomplishments • Generated record first quarter adjusted EBITDA of $159 million - third straight quarter of adjusted EBITDA margin expansion vs prior year • Signed 10-year supply agreement with Key Food worth an estimated $10 billion • Refinanced $500 million of outstanding secured term loan ba
Slide 4: Strong Start To Fiscal 2021
Strong Start To Fiscal 2021 First Quarter Fiscal 2021 Results (1) Net Sales +6% $6.7 billion Adjusted EBITDA (1) +31% $159 million Affirmed full year guidance for these metrics Leverage Adjusted EPS (1) +1,175% $0.51 improved to approximately 3.9x (1) (1) See appendix for reconciliations for non-GAA
Slide 5: Q1 Consolidated Sales +6.0%
Q1 Consolidated Sales +6.0% Strong demand across our sales channels 80 (9) (58) 103 +15.5% $ 6,673 ($s in Millions) +9.3% 115 +8.5% +6.0% +7.4% 145 +5.0% $ 6,297 Q1 FY20 Net Sales Chains Independent Supernatural Retail Other Eliminations (1) Q1 FY21 Net Sales Retailers (1) Intercompany sales that ar
Slide 6: Q1 Adjusted EBITDA +31%
Q1 Adjusted EBITDA +31%(1) Sales leverage and operating efficiencies drive YOY growth 14 (3) $ 159 +130% 26 ($s in Millions) +26% $ 122 Q1 FY20 Wholesale / Retail Disc Ops Q1 FY21 (1) (1) Adjusted EBITDA Other / Elims Adjusted EBITDA (1) See appendix for the Company’s definition of Adjusted EBITDA a
Slide 7: Multiple Drivers of Long-Term, Sustainable Growth
Multiple Drivers of Long-Term, Sustainable Growth Building on success in Fiscal 2020 for 2021 and beyond New Customers E-Commerce Private Brands Cross Selling Aggressively pursuing Fastest Growing Industry leading Natural & with unmatched Portion of our portfolio of products conventional products of
Slide 8: Targeted Addressable Wholesale Market of ~ $140 Billion
Targeted Addressable Wholesale Market of ~ $140 Billion Provides Ample Room For Growth 8 Better Food. Better Future.
Slide 9: Q1 Capital Structure Reflects Ongoing De-Leveraging
Q1 Capital Structure Reflects Ongoing De-Leveraging Fourth straight quarter of improving net leverage ($'s in Millions) Maturity Rate Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Secured term loan B-1 October 2025 L + 4.25% $ 1,787 $ 1,782 $ 1,778 $ 1,773 $ 1,165 $2.1B ABL revolver October 2023 L + 1.25%
Slide 10: Q1 Refinancing Extends Debt Maturity Profile
Q1 Refinancing Extends Debt Maturity Profile Unsecured notes issuance extends maturity for portion of Term Loan out to October 2028; no material scheduled maturities until fiscal 2024. ($s in Millions) 10 Better Food. Better Future. (1) Excludes $150M voluntary Term Loan prepayment made in Q2 FY21 f
Slide 11: Continued Focus on Sustainability and Impact via Our ESG Efforts
Continued Focus on Sustainability and Impact via Our ESG Efforts Environmental Social Governance Joined U.S. • 6th consecutive year on • Invested in safety of distribution • Board diverse by gender (30% Food Loss and Food Logistics Top Green Provider list networks women) and race/ethnicity • 10 mil
Slide 12: Fiscal 2021 Full-Year Outlook
Fiscal 2021 Full-Year Outlook Better Food. Better Future. 12
Slide 13: Fiscal 2021 Outlook: The Best Days Lie Ahead
Fiscal 2021 Outlook: The Best Days Lie Ahead (1) Assumes food at home consumption remains strong and greater than food away from home Net Sales(1) Adjusted EBITDA(1)(2) Adjusted EPS(1)(2) Net Debt Reduction (1) $690M - $27.0B - $27.8B $3.05 - $3.55 ~ $250M $730M (3.3% growth at midpoint) (5.5% growt
Slide 14: Appendix
Appendix 14 Better Food. Better Future.
Slide 15: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA ($’s in Thousands) 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 (loss) income from continuing operations, plus Total other expense, net and (Ben
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 – FY21 Outlook Adjusted EPS & Adjusted EBITDA
Reconciliation – FY21 Outlook Adjusted EPS & Adjusted EBITDA 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 and asset impairment benefits and charges, restructuring, acqui
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 - Adjusted EBITDA
Reconciliation - Adjusted EBITDA 19 Better Food. Better Future.
Slide 20: Reconciliation - Adjusted EBITDA Leverage Ratio
Reconciliation - Adjusted EBITDA Leverage Ratio 20 Better Food. Better Future.
Slide 21: Historical Net Sales By Channel
Historical Net Sales By Channel (1) (1) In first quarter of fiscal 2021, the presentation of net sales by customer channel has been recast to present the Chains and Other channel exclusive of the intercompany eliminations and present total eliminations as a separate sales channel. There was no impac