United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q4 2020 Earnings Presentation
22 slides from United Natural Foods's earnings presentation, Sep 28, 2020
Slide 1: Q4 Fiscal 2020 Supplemental Slides
Q4 Fiscal 2020 Supplemental Slides SEPTEMBER 28, 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 Fiscal 2020 Accomplishments
Key Fiscal 2020 Accomplishments • Leveraged strong third and fourth quarter sales to produce record full year adjusted EBITDA of $673 million. • Reduced outstanding net debt by $388 million; leverage reduced to 4.0x. • Assumed continuing leadership role in supplying America’s supermarkets since onse
Slide 4: Strong Fourth Quarter Finish to Year
Strong Fourth Quarter Finish to Year (1) Full Year Fiscal 2020 Results Leveraged 8% sales growth to 28% growth in Adjusted EBITDA Net Sales Net Sales $26.51B $6.75B +8.0%(1) A d j u s t e d E B I T D A (2) $673M A d j u s t e d E P S (2) Change $198M Adjusted $2. 72/sha re Net Debt ($55M) +27.9%(1)
Slide 5: Q4 Consolidated Sales +8% Driven Primarily by Chains & Independents
(1) Q4 Consolidated Sales +8% Driven Primarily by Chains & Independents $ 113 ($11) $ 6,755 $ 6,731 ($475) (2.1)% +21.4% $ 39 $ 183 +3.6% ($s in Millions) +11.4% $ 175 +6.9% (1) (1) (1) (1) (1) Q4 FY19 Additional Week Chains Independents Supernatural Retail Other Q4 FY20 Net Sales Net Sales (1) Perc
Slide 6: Q4 Adjusted EBITDA +28% Driven by Strong Wholesale and Retail Performance
(1) Q4 Adjusted EBITDA +28% Driven by Strong Wholesale and Retail Performance Sales leverage and operating efficiencies partly offset by COVID expenses $ 23 ($8) $198 $ 59 ($s in Millions) $166 ($11) ($31) (2) (3) (2) (3) (2) Q4 FY19 Additional week COVID expenses Wholesale / Other Retail Disc Ops /
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 Cross-Selling E-Commerce Private Brands New Customers Achieved $250M Fastest Growing Sales increased 17% Aggressively pursuing in FY20 Portion of our in Q4 & 26% in Q3 with unmatched Business off
Slide 8: Strong Retail Performance Contributed to Fiscal 2020 Debt Reduction
Strong Retail Performance Contributed to Fiscal 2020 Debt Reduction Continue to operate the two remaining banners for up to 24 additional months Stores Retail Results (Q4 FY20) Total of 71 Stores in Continuing Same store sales of +21%. Adjusted Operations: 52 Cub / 19 Shoppers. EBITDA increased $16M
Slide 9: Q4 Capital Structure Reflects Ongoing De-Leveraging
Q4 Capital Structure Reflects Ongoing De-Leveraging Strong liquidity provides continued operating flexibility ($'s in Millions) Amounts Outstanding Maturity Rate Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Secured term loan B-1 October 2025 L + 4.25% $ 1,791 $ 1,787 $ 1,782 $ 1,778 $ 1,773 Secured term
Slide 10: Continued Focus on Sustainability & Impact via our ESG Efforts
Continued Focus on Sustainability & Impact via our ESG Efforts Building Better for Our: Environmental Social Governance World • 6th consecutive year on Food Logistics Top Green • Invested in safety of distribution networks • Board diverse by gender (30% women) and race/ethnicity Provider list Commu
Slide 11: Most Importantly…
Most Importantly… To our ~30,000 Associates, ~40,000+ Retail Partners, and ~10,000+ Suppliers who ALL went above and beyond in Fiscal 2020 to provide Freedom of Food Choice when it mattered most… We look forward to continuing to deliver together in the days and years ahead. Better Food. Better Futur
Slide 12: Fiscal 2021 Full-Year Outlook
Fiscal 2021 Full-Year Outlook Better Food. Better Future. 12
Slide 13: Fiscal 2021 Outlook: The Future Looks Bright for UNFI
Fiscal 2021 Outlook: The Future Looks Bright for UNFI (1) Assumes food at home consumption remains strong and more significant 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 ($300M) $730M (3.3% growth at m
Slide 14: Appendix
Appendix 14 Better Food. Better Future. 14
Slide 15: Reconciliation – Adjusted EBITDA
Reconciliation – Adjusted EBITDA ($’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 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 Segment Sales and Adjusted EBITDA
Historical Segment Sales and Adjusted EBITDA This information is presented to help investors understand historical segment trends as Retail is now part of continuing operations. 21 Better Food. Better Future.
Slide 22: Historical Net Sales by Channel
Historical Net Sales by Channel This information is presented to help investors understand historical segment trends as Retail is now part of continuing operations. 22 Better Food. Better Future.