United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q3 2020 Earnings Presentation
18 slides from United Natural Foods's earnings presentation, Jun 10, 2020
Slide 1: Q3 Fiscal 2020 Supplemental Slides
Q3 Fiscal 2020 Supplemental Slides JUNE 10, 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: Strong Results Validate Build-Out-Store Strategy
Strong Results Validate Build-Out-Store Strategy Third Quarter Fiscal 2020 • Net sales of $6.67 billion o +12% from last year driven by partial quarter sales lift from elevated customer demand resulting from COVID-19 o Third quarter progress puts UNFI on track for over $175 million in cross- selling
Slide 4: COVID-19 Pandemic Response
COVID-19 Pandemic Response Supporting our associates and communities • Responded early to potential impact of pandemic and acted quickly to support associates o Hired over 2,000 new associates in March and April and continue to recruit additional associates to meet the heightened demand o Adopted $2
Slide 5: Third Quarter Fiscal 2020 Financial Results
Third Quarter Fiscal 2020 Financial Results Better Food. Better Future. 5
Slide 6: Sales: Q3 FY19 to Q3 FY20
Sales: Q3 FY19 to Q3 FY20 Consolidated sales increase of 11.8% driven by COVID-19 tailwind beginning mid-quarter ($s in Millions) 177 (23) (15) $ 6,668 566 $ 5,963 (3) Q3 FY19 Net Sales Supermarkets (1) Supernatural (2) Independents Other(4) Q3 FY20 Net Sales (1) 15.3% increase. (2) 16.1% increase.
Slide 7: Adjusted EBITDA: Q3 FY19 to Q3 FY20
Adjusted EBITDA : Q3 FY19 to Q3 FY20 (1) Third quarter Adjusted EBITDA increased 32% and included approximately $25 million in COVID-19 related expense ($s in Millions) 68 (18) 29 $ 222 (25) $ 168 (2) (3) (4) Q3 FY19 Gross Profit Operating Expense COVID Expenses Discontinued Q3 FY20 Adjusted EBITDA
Slide 8: Q3 Capital Structure
Q3 Capital Structure Robust cash from operations led to a net debt decrease of over $300 million in the third quarter ($'s in Millions) Amounts Outstanding Maturity Rate Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Secured term loan B-1 October 2025 L + 4.25% $ 1,795 $ 1,791 $ 1,787 $ 1,782 $ 1,778 Secur
Slide 9: Retail Divestiture
Retail Divestiture Given the M&A market, plan to operate two remaining banners for up to 24 months • Store count at end of third quarter was 24 • Store count at end of third quarter was 52 (wholly or majority owned stores) • Marketing efforts continue for limited number of remaining stores on a stor
Slide 10: Continued Focus on ESG
Continued Focus on ESG As highlighted in UNFI’s 2019 Corporate Social Responsibility Report, UNFI is committed to upholding its ESG principles Environmental Social Governance • Strength and safety of distribution networks and retail • Board diverse by gender (30% women) and • 2019 marked 6th straigh
Slide 11: Fiscal 2020 Full-Year Outlook
Fiscal 2020 Full-Year Outlook Better Food. Better Future. 11
Slide 12: Full-Year Fiscal 2020 Outlook
(1) Full-Year Fiscal 2020 Outlook Reflects the impact of moving Retail to Continuing Operations (see footnote 1) $26.4B - $26.6B $655M - $670M $2.30 - $2.50 (2) Net Sales Adjusted EBITDA Adjusted earnings per diluted share (EPS) (Includes approximately $1.2B net (Cub and certain Shoppers Food (Inclu
Slide 13: Full-Year Fiscal 2020 Outlook
(1) (2) Full-Year Fiscal 2020 Outlook Impact of moving Cub Foods and select Shoppers stores to Continuing Operations (1) The outlook provided above is for fiscal 2020. This outlook is forward-looking, is based on management's current estimates and expectations and is subject to a number of risks, in
Slide 14: Appendix
Appendix Better Food. Better Future. 14
Slide 15: Reconciliation – Q3 FY20 and Q3 FY19 Adjusted EBITDA
Reconciliation – Q3 FY20 and Q3 FY19 Adjusted EBITDA ($’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 e
Slide 16: Reconciliation – FY20 Outlook Adjusted Earnings Per Diluted Share (EPS)
Reconciliation – FY20 Outlook Adjusted Earnings Per Diluted Share (EPS) 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, restructu
Slide 17: Reconciliation – FY20 Outlook for Adjusted EBITDA
Reconciliation – FY20 Outlook for Adjusted EBITDA 17 Better Food. Better Future.
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.