United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q2 2022 Earnings Presentation
19 slides from United Natural Foods's earnings presentation, Mar 9, 2022
Slide 1: Fiscal 2022 2nd Quarter Supplemental Slides
Fiscal 2022 2nd Quarter Supplemental Slides March 9, 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: Snapshot of Q2 Fiscal 2022
Snapshot of Q2 Fiscal 2022 a rEtRe rI NR eSsCuAl tLsE Sales Adjusted Adjusted (1) $7.4B EBITDA (1) EPS I LnLd PQOuW +7.5% $201M $1.13 (9.6)% e Fc o (Highest in UNFI History) (2.4)% F US L 3 (1) See appendix for reconciliations and definitions for non-GAAP figures; all percentages refer to changes co
Slide 4: Unlock the UNFI Pride: Q2 Accomplishments
mCpAl iLs Eh m e n t s A cI cNo S Unlock UNFI the Pride e yE R Retail UNFI Optimized Pride S e c o nFdUQL uF aI Lr Lt ePr OKW Customer Experience • Sales of $7.4 billion, the highest quarterly sales in UNFI’s history (1) • Adjusted EBITDA of $201 million, modestly below last year’s second quarter dr
Slide 5: Q2 consolidated sales – broad based growth
Q2 consolidated sales – broad based growth ($’s in millions) 155 10 13 (3) $ 7,416 a rEtRe rI NR eSsCuAl tLsE 204 137 I LnLd PQOuW $ 6,900 e Fc o F US L Q2 FY21 Net Sales Chains Independent Supernatural Retail Other Eliminations (1) Q2 FY22 Net Sales Retailers 5 (1) Intercompany sales that are elimi
Slide 6: Q2 adjusted EBITDA
Q2 adjusted EBITDA ($’s in millions) Decline driven by higher operating costs to service customers and cycling lower H&W costs in last year’s Q2 $ 206 (7) 4 (2) $ 201 e Fc o F US L a rEtRe rI NR eSsCuAl tLsE I LnLd PQOuW Q2 FY21 (1) Wholesale / Retail Disc Ops Q2 FY22 (1) Adjusted EBITDA Other / Eli
Slide 7: Capital structure
Capital structure Q2 net debt decrease driven by cash generated from operations ($'s in Millions) Maturity Rate Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Secured term loan B-1 (1) October 2025 L + 3.25% (2) $ 1,015 $ 1,002 $ 1,002 $ 994 $ 844 $2.1B ABL revolver (1) October 2023 L + 1.25% / Prime + 0.2
Slide 8: Outlook Fiscal 2022
FULFILL E aPrO s uIlNt s S C A L E n WR Ee R 8 Outlook Fiscal 2022
Slide 9: Updating Fiscal 2022 Outlook
Updating Fiscal 2022(1) Outlook Includes sales growth of ~ $1.5 billion (at midpoint) Net Sales Adjusted EBITDA (2) Adjusted EPS (2) Net Debt Reduction l oCoAkL E Nt S $28.2 - $28.7 B $760 - $790 M $3.90 - $4.20 $150 - $200 M 0 2E2R OI u s cLaPl O2 W (Previously $27.8 - $28.3B) (Previously $100 - $1
Slide 10: Q3 Better Food. Better Future.
Q3 1 Better 0 Food. Better Future.
Slide 11: Appendix
UNFI Appendix
Slide 12: 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 13: Reconciliation – Adjusted EPS
Reconciliation – Adjusted EPS 13 Better Food. Better Future. Note - See slide 14 for definition of adjusted EPS
Slide 14: 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 15: 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). 15 Better Food. Better Future.
Slide 16: Reconciliation – Last Four Quarters Adjusted EBITDA
Reconciliation – Last Four Quarters Adjusted EBITDA (1) 16 Better Food. Better Future. (1) See slide 12 for the definition of adjusted EBITDA.
Slide 17: 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 12). Beginning in the
Slide 18: Adjusted EBITDA By Quarter
Adjusted EBITDA By Quarter (1) (1) See slide 12 for the definition of adjusted EBITDA. 18 Better Food. Better Future.
Slide 19: Adjusted EBITDA By Segment
(1) Adjusted EBITDA By Segment (1) See slide 12 for the definition of adjusted EBITDA. Adjusted EBITDA margin rate is defined as adjusted EBITDA divided by total net sales. 19 Better Food. Better Future.