United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Q1 FY2019 Earnings Presentation
18 slides from United Natural Foods's earnings presentation, Dec 6, 2018
Slide 1: Q1 Fiscal 2019 Supplemental Slides
Q1 Fiscal 2019 December 6, 2018 Supplemental Slides
Slide 2: Disclaimer
Disclaimer These forward looking statements involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in filings that United Natural Foods, Inc. (
Slide 3: First Quarter Fiscal 2019 Supplemental Presentation
First Quarter Fiscal 2019 Supplemental Presentation This material is provided as a supplement to UNFI’s December 6, 2018 press release announcing first quarter results for the period ended October 27, 2018. Q1 FY 2019 3 Better Food. Better Future.
Slide 4: Key accomplishments
Key accomplishments First Quarter Fiscal 2019 • Completed the acquisition of SUPERVALU • Grew legacy UNFI sales by nearly 8% • Integration work proceeding as planned • Affirming cost synergy outlook of more than $185M in year 4 4 Better Food. Better Future.
Slide 5: Sales: Q1 FY18 to Q1 FY19
Sales: Q1 FY18 to Q1 FY19 First quarter sales increased by over $400M 224 $2,868 ($’s in Millions) 28 3 (19) 174 $2,458 Q1 FY 18 Sales Supernatural Natural Product Supermarkets Other SUPERVALU Q1 FY 19 Sales Retailers 5 Better Food. Better Future.
Slide 6: Adjusted EBITDA: Q1 FY18 to Q1 FY19
Adjusted EBITDA: Q1 FY18 to Q1 FY19 First quarter Adjusted EBITDA impacted by customer mix and labor costs ($’s in Thousands) 2,327 $86,194 7,275 84,824 (4,122) 814 2,351 $77,549 Q1 F18 Reported Definition Change Q1 F18 Adjusted Adj Op Income Depr/Amort Share based comp Disc Ops Q1 F19 Actual Adjust
Slide 7: Integration
Integration Integration lead by highly experienced leaders from both organizations • Distribution center welcome week visits • Customer meetings • Joint town halls with associates • Tactical execution • Early synergies 7 Better Food. Better Future.
Slide 8: Synergies
Synergies Sources of Cost Synergies Timeline to Achieve One-Time Costs $ in millions 100% $125 95% $110 65% 25% $35 Year 1 Year 2-Year 5 Year 1 Year 2 Year 3 Year 4 Deal Costs Costs to Achieve Cost Synergies • More than $175 million in cost synergies in year 3 net of reverse synergies and excludes o
Slide 9: Retail Divestiture
Retail Divestiture All banners reported in Discontinued Operations Continue to operate near term Announced sale on 11/30/18 Exit expected to be All stores sold or closed as of 11/16/18 complete by the end of the second quarter of fiscal 2019 Previously announced pending sale for 5 of 8 stores curren
Slide 10: Retail Divestitures: Reporting Implications
Retail Divestitures Reporting Implications As long as banners remain, continuing operations is burdened with meaningful costs previously reported in SUPERVALU’s retail segment Allocated Corporate Overhead Costs previously included in SUPERVALU’s retail segment that are required to remain in continui
Slide 11: Q1 Capital Structure
Q1 Capital Structure Company intends to apply all free cash flow to paying down debt ($'s in Millions) Maturity Rate Balance Secured term loan B-1 October 2025 L + 4.25% $ 1,800 Secured term loan B-2 October 2019 L + 2.00% 150 $2.1B ABL revolver October 2023 L + 1.25% / Prime + 0.25% 1,327 Unsecured
Slide 12: Fiscal 2019 Guidance – 53 weeks
Fiscal 2019 Guidance – 53 weeks Consolidated UNFI – Assumes existing retail store base operated through Fiscal 2019 Sales • $21.5 - $22.0 billion • $650 - $665 million Adjusted EBITDA • Including discontinued operations • $181 - $191 million Interest Expense • Includes non-cash interest expense rela
Slide 13: Fiscal 2019 Guidance – What's Changed
Fiscal 2019 Guidance – What’s Changed Changes to Adjusted EPS Guidance Driven By • Higher depreciation/amortization expense equal to Purchase Accounting approximately $1.05 per share vs. prior guidance • Increased due to shift in debt markets, SUPERVALU’s Q2 Interest Expense results, and related une
Slide 14: Appendix
Appendix 14 Better Food. Better Future.
Slide 15: Reconciliation – Q1 FY19 and Q1 FY18 Adjusted EBITDA
Reconciliation – Q1 FY19 and Q1 FY18 Adjusted EBITDA 15 Better Food. Better Future.
Slide 16: Reconciliation – FY19 Guidance For Adjusted EPS
Reconciliation – FY19 Guidance For Adjusted EPS 16 Better Food. Better Future.
Slide 17: Reconciliation – FY19 Guidance For Adjusted EBITDA
Reconciliation – FY19 Guidance For Adjusted EBITDA 17 Better Food. Better Future.
Slide 18: Definition of Adjusted EBITDA
Definition of Adjusted EBITDA Revised definition meant to be a better representation of cash flow Net Earnings / (Loss) +/- Provision for income taxes + Depreciation and amortization + Total other expense (includes interest expense) + Share based compensation expense - Net periodic benefit income (p
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