United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q4 2019 Earnings Presentation
21 slides from United Natural Foods's earnings presentation, Oct 1, 2019
Slide 1: Q4 Fiscal 2019 Supplemental Slides
Q4 Fiscal 2019 Supplemental Slides October 1, 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: Results and Strategic Progress
Results and Strategic Progress Fourth Quarter and Full Year Fiscal 2019 • Generated net sales of $6.4 billion and Adjusted EBITDA of $166 million in Q4 • Realized strong integration traction o Generated an estimated $70 million in cost synergies in FY19 compared to January outlook of more than $36 m
Slide 4: SUPERVALU Integration Progress
SUPERVALU Integration Progress What We Have Said Where We Are Now On track; affirm $185M cost synergy Delivers Significant Synergies figure by end of FY22 Enables Cross Selling Invigorated sales organization; will Opportunities aggressively pursue cross-selling in FY20 Expands Market Reach and Now h
Slide 5: Focused on Navigating Industry Changes
Focused on Navigating Industry Changes Sector-Wide Developments UNFI Focus INCREASED CONSOLIDATION Have been a consolidator with six acquisitions since (1) 2014 including SUPERVALU in October 2018 RETAIL SLUGGISHNESS Diversified customer base that allows UNFI to grow with consumer-driven channels, s
Slide 6: Fourth Quarter Fiscal 2019 Financial Results
Fourth Quarter Fiscal 2019 Financial Results 6 Better Food. Better Future.
Slide 7: Sales: Q4 FY18 to Q4 FY19
Sales: Q4 FY18 to Q4 FY19 Legacy UNFI YOY sales +2.8% excluding additional week ($s in Millions) 451 $ 6,407 3,284 (22) $ 2,592 98 4 Q4 FY18 Net Sales Supernatural Independents Supermarkets Other (1) 53rd Week Q4 FY19 Net Sales (1) Other includes E-commerce, Food Service, and Military. 7 Better Food
Slide 8: Adjusted EBITDA: Q4 FY18 to Q4 FY19
Adjusted EBITDA : Q4 FY18 to Q4 FY19 (1) Fourth quarter Adjusted EBITDA increase driven by addition of SUPERVALU ($s in Millions) 68 11 $ 166 (10) 12 $ 85 Q4 FY18 Natural Growth Conventional Addition LIFO 53rd Week Q4 FY19 Adjusted EBITDA (including Disc Ops) Adjusted EBITDA (1) Adjusted EBITDA is d
Slide 9: Adjusted EBITDA: Full Year FY18 to FY19
Adjusted EBITDA : Full Year FY18 to FY19 (1) Adjusted EBITDA increase driven by addition of SUPERVALU ($s in Millions) 200 11 $ 562 (24) $ 362 13 FY18 Adjusted EBITDA Natural Growth Conventional Addition LIFO 53rd Week FY19 Adjusted EBITDA (including Disc Ops) (1) Adjusted EBITDA is defined as net i
Slide 10: Q4 Capital Structure
Q4 Capital Structure Face value of net debt reduced by over $360 million over the past three quarters ($'s in Millions) Amount Outstanding Maturity Rate Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Secured term loan B-1 October 2025 L + 4.25% $ 1,800 $ 1,800 $ 1,795 $ 1,791 Secured term loan B-2 October 2019 L +
Slide 11: Debt Maturity Profile
Debt Maturity Profile (1) We have very manageable debt maturities, strong liquidity position and will apply asset-sale proceeds to pay down debt Only meaningful maturity in next four years 11 Better Food. Better Future. (1) As of 8/3/19; excludes capital leases
Slide 12: Retail Divestiture
Retail Divestiture Two remaining banners being operated (reported in Discontinued Operations) Pursuing several transactions each involving multiple stores. Anticipate closing in early calendar 2020 on store sales. Looking to sell Cub banner in its entirety with closing expected prior to end of fisca
Slide 13: Fiscal 2020 Full Year Outlook
Fiscal 2020 Full Year Outlook 13 Better Food. Better Future.
Slide 14: Fiscal 2020 Overview
Fiscal 2020 Overview The outlook for FY20 (52 weeks ending August 1, 2020) reflects the current business environment and operating trends while incorporating the following key elements: • The additional contribution from SUPERVALU which was acquired in the 13th week of FY19 • Incremental cost synerg
Slide 15: Adjusted EBITDA: FY19 to FY20 Guidance (Midpoint)
(1) Adjusted EBITDA: FY19 to FY20 Guidance (Midpoint) Growth of ~5.3% expected in FY20 on comparable 52-week basis ($s in Millions) 44 12 57 $ 562 (11) (32) $ 580 (27) (15) (10) FY19 Actual 53rd Week Incremental Incremental Sales Growth Shoppers Normalized ASC 842 Lease Decreased FY20 Guidance 12 We
Slide 16: Adjusted EPS: FY19 to FY20 Guidance (Midpoint)
Adjusted EPS: FY19 to FY20 Guidance (Midpoint) (1) (2) Increase in Adjusted EBITDA More Than Offset by Higher Interest and Depreciation Expense 0.24 $ 2.08 (0.27) (0.28) (0.16) $ 1.49 (0.06) (0.06) FY19 Adjusted Increased Increased Interest Increased Impact of Change Impact of Higher All Other FY20
Slide 17: Appendix
Appendix 17 Better Food. Better Future.
Slide 18: Reconciliation – Q4 FY19 and Q4 FY18 Adjusted EBITDA
Reconciliation – Q4 FY19 and Q4 FY18 Adjusted EBITDA ($’s in Thousands) 18 Better Food. Better Future.
Slide 19: Reconciliation – FY20 Guidance Adjusted Net Income Per Diluted Share (EPS)
Reconciliation – FY20 Guidance Adjusted Net Income Per Diluted Share (EPS) 19 Better Food. Better Future.
Slide 20: Reconciliation – FY20 Guidance for Adjusted EBITDA
Reconciliation – FY20 Guidance for Adjusted EBITDA 20 Better Food. Better Future.
Slide 21: Reconciliation – Tax Rate
Reconciliation – Tax Rate 21 Better Food. Better Future.