United Pure Meals, Inc. Reviews Second Quarter Fiscal 2021 Outcomes
PROVIDENCE, R.I.–(BUSINESS WIRE)–United Pure Meals, Inc. (NYSE: UNFI) (the “Firm” or “UNFI”) as we speak reported monetary outcomes for the second quarter of fiscal 2021 (13 weeks) ended January 30, 2021.
Second Quarter Fiscal 2021 Highlights (comparisons to second quarter fiscal 2020)
- Web gross sales elevated 7.1% to $6.89 billion
- Web revenue of $59 million, a rise of $90 million
- Adjusted EBITDA of $206 million, a 57.3% improve
- Earnings per diluted share (EPS) of $1.00, a $1.57 per share improve
- Adjusted EPS of $1.25, a $1.00 per share improve
- Expects to complete fiscal 2021 towards the higher finish of prior ranges for adjusted EBITDA and adjusted EPS
- Prolonged distribution partnership with Entire Meals by means of September 2027
“Our sturdy second quarter outcomes display that UNFI continues to execute at a excessive degree as we once more leveraged sturdy year-over-year gross sales will increase into even stronger backside line development,” mentioned Steven L. Spinner, Chairman and Chief Government Officer. “We anticipate the underlying momentum in our enterprise and the growing advantages we’re realizing from our construct out the shop technique to proceed for the steadiness of this fiscal 12 months, and we’re additionally very happy to have prolonged our sturdy partnership with Entire Meals by means of September 2027.”
13-Week Interval Ended
($ in tens of millions, besides per share information)
January 30,
2021
February 1,
2020
% Change
Web Gross sales
$
6,888
$
6,431
7.1
%
Chains(1)
$
3,097
$
2,909
6.5
%
Impartial retailers
$
1,701
$
1,561
9.0
%
Supernatural
$
1,298
$
1,211
7.2
%
Retail
$
621
$
539
15.2
%
Different(1)
$
568
$
566
0.4
%
Eliminations(1)
$
(397
)
$
(355
)
11.8
%
Web Revenue (Loss)
$
59
$
(31
)
N/M
Adjusted EBITDA(2)
$
206
$
131
57.3
%
Earnings (Loss) Per Diluted Share
$
1.00
$
(0.57
)
N/M
Adjusted EPS(2)
$
1.25
$
0.25
400.0
%
(N/M signifies not significant)
(1)
Within the first quarter of fiscal 2021, the presentation of web gross sales by buyer channel was recast to current the Chains and Different channel unique of the intercompany eliminations and current whole eliminations individually. There was no influence to the Condensed Consolidated Statements of Operations. The Firm believes this modified foundation higher displays its channel presentation, because it additional aligns with phase presentation and the way gross sales channel data would seem following the potential disposition of Retail, assuming all banners retain a provide settlement. As well as, throughout the fourth quarter of fiscal 2020, the presentation of web gross sales by buyer channel was recast to be offered on a foundation per buyer measurement. Worldwide clients aside from Canada, and various format gross sales proceed to be categorized inside Different. The principle impact of the change was to re-categorize the previous Supermarkets and Independents channels, beforehand categorized by the vast majority of product carried by these clients between typical and pure merchandise, respectively, to categorise these shops by the variety of buyer places we provide. There was no influence to the Condensed Consolidated Statements of Operations on account of the reclassification of buyer sorts. The Firm believes this modified foundation higher displays the character and financial dangers of money flows from clients.
(2)
Please confer with the tables on this press launch for a reconciliation of those non-GAAP monetary measures to essentially the most straight comparable monetary measure calculated in accordance with U.S. GAAP.
Second Quarter Fiscal 2021 Abstract
Web gross sales from persevering with operations benefited from sturdy buyer demand from present and new retailers, together with the continued advantages of cross promoting, which was partially offset by decrease gross sales ensuing from beforehand misplaced shops, together with closures related to three buyer bankruptcies that occurred previous to the pandemic.
Gross margin fee within the second quarter of fiscal 2021 was 14.38% of web gross sales in comparison with 14.26% of web gross sales for the second quarter of fiscal 2020. Retail contributed roughly 0.13% to the expansion within the consolidated gross margin fee on account of decrease Retail promotional spending and the Retail phase representing a larger share of whole web gross sales. Wholesale and the remaining enterprise’s gross margin fee was roughly flat and included the advantages of decrease shrink offset by decrease ranges of supplier-related revenue. Included in gross margin for the second quarter of fiscal 2020 was stock shrink expense of roughly $4.2 million, or 0.07% of web gross sales, related to three buyer bankruptcies that occurred previous to the pandemic.
Working bills within the second quarter of fiscal 2021 had been $866.9 million, or 12.59% of web gross sales, in comparison with $862.7 million, or 13.41% of web gross sales, within the second quarter of fiscal 2020. Working bills within the second quarter of fiscal 2020 included $28.9 million, or 0.45% of web gross sales, of dangerous debt expense related to three buyer bankruptcies that occurred previous to the pandemic. The remaining lower in working bills as a % of web gross sales resulted from leveraging fastened working bills over larger web gross sales and decrease profit prices.
Restructuring, acquisition and integration associated bills within the second quarter of fiscal 2021 had been $17.8 million, primarily reflecting prices related to advisory and transformational actions as we place our enterprise for additional worth creation submit Supervalu acquisition, in addition to prices related to distribution heart consolidations, in comparison with $36.5 million within the second quarter of fiscal 2020, which primarily mirrored prices and fees associated to the disposal of present retail and surplus actual property, distribution community consolidation, and employee-related prices.
Working revenue within the second quarter of fiscal 2021 was $105.3 million and included $17.8 million of restructuring, acquisition and integration associated bills. When excluding this merchandise, working revenue within the second quarter of fiscal 2021 was $123.1 million, or 1.79% of web gross sales. Working revenue within the second quarter of fiscal 2020 was $17.5 million and included expense of $33.1 million related to three buyer bankruptcies that occurred previous to the pandemic and $36.5 million of restructuring, acquisition, and integration associated bills. When excluding the restructuring, acquisition and integration bills, working revenue within the second quarter of fiscal 2020 was $54.1 million, or 0.84% of web gross sales. The rise in adjusted working revenue, as a % of web gross sales, was pushed by larger web gross sales, the advantage of a better gross margin fee, leveraging fastened working bills over larger web gross sales and decrease profit prices.
Curiosity expense, web for the second quarter of fiscal 2021 was $50.9 million, which included a $5.7 million non-cash cost associated to the acceleration of unamortized debt issuance prices and unique difficulty reductions attributable to a $150 million time period mortgage prepayment made within the quarter. When excluding this merchandise, curiosity expense, web for the second quarter of fiscal 2021 was $45.2 million. Curiosity expense, web for the second quarter of fiscal 2020 was $48.8 million. The remaining lower in curiosity expense, web was pushed by decrease quantities of excellent debt.
Efficient tax fee for persevering with operations for the second quarter of fiscal 2021 was 22.4% of pre-tax revenue in comparison with a good thing about 47.8% for the second quarter of fiscal 2020 on a pre-tax loss. The change within the efficient tax fee for the second quarter of fiscal 2021 was primarily pushed by a pre-tax lack of roughly $27 million within the second quarter of fiscal 2020 in comparison with pre-tax revenue of roughly $73 million within the second quarter of fiscal 2021.
Web revenue for the second quarter of fiscal 2021 was $59.0 million, which included $17.8 million of pre-tax restructuring, acquisition and integration associated bills and a $5.7 million pre-tax non-cash cost associated to the acceleration of unamortized debt issuance prices and unique difficulty reductions from the prepayment of the time period mortgage. The online loss for the second quarter of fiscal 2020 was $30.7 million, which included $36.5 million of pre-tax restructuring, acquisition and integration associated bills and $24.2 million of pre-tax discontinued operations restructuring, retailer closure and different fees.
Web revenue per diluted share was $1.00 for the second quarter of fiscal 2021 in comparison with a web loss per diluted share of $0.57 for the second quarter of fiscal 2020. Adjusted earnings per share (adjusted EPS) was $1.25 for the second quarter of fiscal 2021 in comparison with adjusted EPS of $0.25 within the second quarter of fiscal 2020.
Adjusted EBITDA for the second quarter of fiscal 2021 was $206.3 million in comparison with $131.1 million for the second quarter of fiscal 2020. The rise primarily displays the objects mentioned in working revenue.
Whole Excellent Debt, web of money, ended the quarter at $2.49 billion, reflecting a lower of $242 million within the second quarter of fiscal 2021 (in comparison with the primary quarter of fiscal 2021). This discount was pushed by $265 million in money supplied by operations within the second quarter of fiscal 2021, together with the advantage of decrease ranges of working capital, partially offset by capital expenditures. The online debt to adjusted EBITDA leverage ratio improved to three.2x.
Fiscal 2021 Outlook (1)
The Firm is reaffirming its full-year outlook and now expects to complete fiscal 2021 towards the higher finish of the beforehand supplied ranges for adjusted EPS and adjusted EBITDA. This outlook assumes that food-at-home consumption stays elevated and exceeds meals consumed away from dwelling for the remainder of fiscal 2021.
Fiscal Yr Ending July 31, 2021
% Development Over
FY20 at MidpointWeb Gross sales ($ in billions)
$27.0 – $27.8
3.3%
Web Revenue ($ in tens of millions)
$130 – $160
—
Earnings Per Diluted Share (EPS)
$2.15 – $2.65
—
Adjusted EPS (2)(3)
$3.05 – $3.55
21.3%
Adjusted EBITDA(3) ($ in tens of millions)
$690 – $730
5.5%
Capital Expenditures ($ in tens of millions)
$250 – $300
—
(1)
The outlook supplied above is for fiscal 2021 solely and replaces and supersedes any and all steering supplied previous to the date hereof overlaying fiscal 2021 or subsequent years. This outlook is forward-looking, relies on administration’s present estimates and expectations and is topic to a variety of dangers, together with many which might be exterior of administration’s management. See cautionary Secure Harbor Assertion under.
(2)
The Firm makes use of an adjusted efficient tax fee in calculating Adjusted EPS. The adjusted efficient tax fee is calculated based mostly on adjusted web revenue earlier than tax. It additionally excludes the potential influence of modifications to unsure tax positions, valuation allowances, inventory compensation accounting (ASU 2016-09) and discrete GAAP tax objects which may influence the comparability of the operational efficient tax fee. The Firm believes utilizing this adjusted efficient tax fee gives higher consistency throughout the interim reporting intervals since every of those discrete objects may cause volatility within the GAAP tax fee that’s not indicative of the underlying ongoing operations of the Firm. By offering this non-GAAP measure, administration intends to offer traders with a significant, constant comparability of the Firm’s efficient tax fee on ongoing operations.
(3)
Please confer with the tables on this press launch for a reconciliation of those non-GAAP monetary measures to essentially the most straight comparable monetary measures calculated in accordance with GAAP.
Convention Name and Webcast
The Firm’s second quarter fiscal 2021 convention name and audio webcast might be held as we speak, Wednesday, March 10, 2021 at 8:30 a.m. ET. A webcast of the convention name (and supplemental supplies) might be out there to the general public, on a hear solely foundation, by way of the web on the Buyers part of the Firm’s web site www.unfi.com. The decision can be accessed at (877) 682-3423 (convention ID 3179215). An internet archive of the webcast (and supplemental supplies) might be out there for 120 days.
About United Pure Meals
UNFI is North America’s premier meals wholesaler delivering the widest number of merchandise to buyer places all through North America together with pure product superstores, impartial retailers, typical grocery store chains, ecommerce retailers, and meals service clients. By offering this deeper ‘full-store’ choice and compelling manufacturers for each aisle, UNFI is uniquely positioned to ship nice meals, extra decisions, and recent considering to clients all over the place. In the present day, UNFI is the biggest publicly-traded grocery distributor in America. To be taught extra about how UNFI is Shifting Meals Ahead, go to www.unfi.com.
Secure Harbor Assertion underneath the Non-public Securities Litigation Reform Act of 1995: Statements on this press launch relating to the Firm’s enterprise that aren’t historic details are “forward-looking statements” that contain dangers and uncertainties and are based mostly on present expectations and administration estimates; precise outcomes could differ materially. The dangers and uncertainties which may influence these statements are described within the Firm’s filings underneath the Securities Alternate Act of 1934, as amended, together with its annual report on Type 10-Ok for the 12 months ended August 1, 2020 filed with the Securities and Alternate Fee (the “SEC”) on September 29, 2020 and different filings the Firm makes with the SEC, and embrace, however aren’t restricted to, the influence and length of the COVID-19 pandemic; the Firm’s dependence on principal clients; the Firm’s sensitivity to basic financial circumstances together with modifications in disposable revenue ranges and client spending tendencies; the Firm’s potential to comprehend anticipated advantages of its acquisitions and inclinations, specifically, its acquisition of SUPERVALU; the Firm’s reliance on the continued development in gross sales of upper margin pure and natural meals and non-food merchandise compared to decrease margin typical grocery merchandise; elevated competitors within the Firm’s trade on account of elevated distribution of pure, natural and specialty merchandise and direct distribution of these merchandise by giant retailers and on-line distributors; the chance that restructuring, asset impairment, and different fees and prices we could incur in reference to the sale or closure of our retail operations will exceed our present expectations; elevated competitors on account of persevering with consolidation of shops within the pure product trade and the expansion of supernatural chains; the addition or lack of important clients or materials modifications to the Firm’s relationships with these clients; union-organizing actions that might trigger labor relations difficulties and elevated prices; the Firm’s potential to function, and depend on third events to function dependable and safe expertise methods; the comparatively low margins of the Firm’s enterprise; moderated provider promotional exercise, together with decreased ahead shopping for alternatives; the Firm’s potential to well timed and efficiently deploy its warehouse administration system all through its distribution facilities and its transportation administration system throughout the Firm and to realize efficiencies and value financial savings from these efforts; the potential for extra asset impairment fees; the Firm’s sensitivity to inflationary and deflationary pressures; the potential for disruptions within the Firm’s provide chain or its distribution capabilities by circumstances past its management, together with a well being epidemic; the chance of interruption of provides attributable to lack of long-term contracts, extreme climate, work stoppages or in any other case; volatility in gasoline prices; volatility in international change charges; and our potential to determine and efficiently full asset or enterprise acquisitions. Any forward-looking statements are made pursuant to the Non-public Securities Litigation Reform Act of 1995 and, as such, converse solely as of the date made. The Firm is just not endeavor to replace any data within the foregoing experiences till the efficient date of its future experiences required by relevant legal guidelines. Any estimates of future outcomes of operations are based mostly on a variety of assumptions, lots of that are exterior the Firm’s management and shouldn’t be construed in any method as a assure that such outcomes will the truth is happen. These estimates are topic to vary and will differ materially from remaining reported outcomes. The Firm could sometimes replace these publicly introduced estimates, however it isn’t obligated to take action.
Non-GAAP Monetary Measures: To complement the monetary data offered on a U.S. typically accepted accounting rules (“GAAP”) foundation, the Firm has included on this press launch non-GAAP monetary measures for adjusted EBITDA, adjusted earnings per diluted widespread share (“adjusted EPS”), adjusted efficient tax fee, free money circulate and web debt to adjusted EBITDA leverage ratio. The non-GAAP adjusted earnings per diluted widespread share measure is a consolidated measure, which the Firm reconciles by including Web revenue attributable to UNFI plus goodwill and asset impairment advantages and fees, restructuring, acquisition, and integration associated bills, sure authorized fees and positive aspects, surplus property depreciation and curiosity expense, losses on debt extinguishment, discontinued operations retailer closures and different fees, web, the influence of diluted shares when GAAP earnings is offered as a loss and non-GAAP earnings symbolize revenue, and the tax influence of changes and the adjusted efficient tax fee, which tax influence is calculated utilizing the adjusted efficient tax fee, and sure different non-cash fees or objects, as decided by administration. The non-GAAP adjusted efficient tax fee excludes the potential influence of modifications to varied unsure tax positions and valuation allowances, in addition to inventory compensation accounting (ASU 2016-09). The non-GAAP adjusted EBITDA measure is outlined as a consolidated measure inclusive of continuous and discontinued operations outcomes, which we reconcile by including Web revenue (loss) from persevering with operations, much less web revenue attributable to noncontrolling pursuits, plus Whole different expense, web and (Profit) provision for revenue taxes, plus Depreciation and amortization calculated in accordance with GAAP, plus non-GAAP changes for Share-based compensation, Restructuring, acquisition and integration associated bills, Goodwill and asset impairment fees, Loss (acquire) on sale of property, sure authorized fees and positive aspects, sure different non-cash fees or objects, as decided by administration, plus Adjusted EBITDA of discontinued operations calculated in a fashion per the outcomes of continuous operations outlined above. The non-GAAP free money circulate measure is outlined as web money supplied by working actions much less capital expenditures. The non-GAAP web debt to adjusted EBITDA leverage ratio is outlined as the full face worth of the Firm’s excellent brief and long run debt and finance lease liabilities much less web money and money equivalents, the sum of which is split by adjusted EBITDA.
The reconciliation of those non-GAAP monetary measures to their comparable GAAP monetary measures and the calculation of web debt to adjusted EBITDA leverage are offered within the tables showing under. The presentation of non-GAAP monetary measures is just not meant to be thought-about in isolation or as an alternative choice to any measure ready in accordance with GAAP. The Firm believes that presenting the non-GAAP monetary measures adjusted EBITDA and adjusted EPS aids in making period-to-period comparisons, assessing the efficiency of our enterprise and understanding the underlying working efficiency and core enterprise tendencies by excluding sure changes not anticipated to recur within the regular course of enterprise and are significant indicators of precise and estimated working efficiency. The inclusion of free money circulate assists traders in understanding the money producing potential of the Firm separate from money generated by the sale of property. Web debt to adjusted EBITDA leverage ratio is a generally used metric that assists traders in understanding and evaluating the Firm’s capital construction and modifications to its capital construction over time. The Firm at the moment expects to proceed to exclude the objects listed above from non-GAAP monetary measures. Administration makes use of and plans to make the most of these non-GAAP monetary measures to check the Firm’s working efficiency throughout the 2021 fiscal 12 months to the comparable intervals within the 2020 fiscal 12 months and to internally ready projections. These non-GAAP monetary measures could differ from equally titled measures of different corporations.
UNITED NATURAL FOODS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In 1000’s, apart from per share information)
13-Week Interval Ended
26-Week Interval Ended
January 30,
2021
February 1,
2020
January 30,
2021
February 1,
2020Web gross sales
$
6,888,133
$
6,431,382
$
13,560,740
$
12,727,994
Price of gross sales
5,897,774
5,514,057
11,603,882
10,903,458
Gross revenue
990,359
917,325
1,956,858
1,824,536
Working bills
866,880
862,732
1,767,842
1,746,420
Goodwill and asset impairment fees
—
—
—
425,405
Restructuring, acquisition and integration associated bills
17,783
36,522
34,211
51,194
Loss on sale of property
399
524
169
434
Working revenue (loss)
105,297
17,547
154,636
(398,917
)
Different expense (revenue):
Web periodic profit revenue, excluding service price
(17,127
)
(3,277
)
(34,160
)
(14,661
)
Curiosity expense, web
50,944
48,836
120,077
98,545
Different, web
(1,674
)
(1,220
)
(2,472
)
(1,620
)
Whole different expense, web
32,143
44,339
83,445
82,264
Revenue (loss) from persevering with operations earlier than revenue taxes
73,154
(26,792
)
71,191
(481,181
)
Provision (profit) for revenue taxes
16,392
(12,808
)
15,401
(79,763
)
Web revenue (loss) from persevering with operations
56,762
(13,984
)
55,790
(401,418
)
Revenue (loss) from discontinued operations, web of tax
3,803
(16,076
)
5,099
(12,050
)
Web revenue (loss) together with noncontrolling pursuits
60,565
(30,060
)
60,889
(413,468
)
Much less web revenue attributable to noncontrolling pursuits
(1,605
)
(650
)
(2,972
)
(1,169
)
Web revenue (loss) attributable to United Pure Meals, Inc.
$
58,960
$
(30,710
)
$
57,917
$
(414,637
)
Primary earnings (loss) per share:
Persevering with operations
$
0.98
$
(0.27
)
$
0.95
$
(7.54
)
Discontinued operations
$
0.07
$
(0.30
)
$
0.09
$
(0.23
)
Primary earnings (loss) per share
$
1.05
$
(0.57
)
$
1.04
$
(7.77
)
Diluted earnings (loss) per share:
Persevering with operations
$
0.93
$
(0.27
)
$
0.89
$
(7.54
)
Discontinued operations
$
0.06
$
(0.30
)
$
0.09
$
(0.23
)
Diluted earnings (loss) per share
$
1.00
$
(0.57
)
$
0.98
$
(7.77
)
Weighted common shares excellent:
Primary
56,138
53,523
55,717
53,368
Diluted
59,205
53,523
59,119
53,368
UNITED NATURAL FOODS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In 1000’s, apart from per share information)
January 30,
2021
August 1,
2020ASSETS
Money and money equivalents
$
40,496
$
46,993
Accounts receivable, web
1,136,135
1,120,199
Inventories, web
2,228,772
2,280,767
Pay as you go bills and different present property
238,572
251,891
Present property of discontinued operations
4,716
5,067
Whole present property
3,648,691
3,704,917
Property and tools, web
1,671,755
1,701,216
Working lease property
1,016,836
982,808
Goodwill
20,084
19,607
Intangible property, web
928,053
969,600
Deferred revenue taxes
107,779
107,624
Different long-term property
95,551
97,285
Lengthy-term property of discontinued operations
1,391
3,915
Whole property
$
7,490,140
$
7,586,972
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable
$
1,618,288
$
1,633,448
Accrued bills and different present liabilities
273,520
281,956
Accrued compensation and advantages
220,318
228,832
Present portion of working lease liabilities
148,359
131,022
Present portion of long-term debt and finance lease liabilities
24,840
83,378
Present liabilities of discontinued operations
8,313
11,438
Whole present liabilities
2,293,638
2,370,074
Lengthy-term debt
2,374,250
2,426,994
Lengthy-term working lease liabilities
894,831
873,990
Lengthy-term finance lease liabilities
134,554
143,303
Pension and different postretirement profit obligations
255,071
292,128
Different long-term liabilities
308,715
336,487
Lengthy-term liabilities of discontinued operations
15
1,738
Whole liabilities
6,261,074
6,444,714
Stockholders’ fairness:
Most popular inventory, $0.01 par worth, approved 5,000 shares; none issued or excellent
—
—
Widespread inventory, $0.01 par worth, approved 100,000 shares; 56,763 shares issued and 56,148 shares excellent at
January 30, 2021; 55,306 shares issued and 54,691 shares excellent at August 1, 2020
568
553
Further paid-in capital
581,096
568,736
Treasury inventory at price
(24,231
)
(24,231
)
Gathered different complete loss
(213,529
)
(237,946
)
Retained earnings
886,313
837,633
Whole United Pure Meals, Inc. stockholders’ fairness
1,230,217
1,144,745
Noncontrolling pursuits
(1,151
)
(2,487
)
Whole stockholders’ fairness
1,229,066
1,142,258
Whole liabilities and stockholders’ fairness
$
7,490,140
$
7,586,972
UNITED NATURAL FOODS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
26-Week Interval Ended
(In 1000’s)
January 30,
2021
February 1,
2020CASH FLOWS FROM OPERATING ACTIVITIES:
Web revenue (loss) together with noncontrolling pursuits
$
60,889
$
(413,468
)
Revenue (loss) from discontinued operations, web of tax
5,099
(12,050
)
Web revenue (loss) from persevering with operations
55,790
(401,418
)
Changes to reconcile web revenue (loss) from persevering with operations to web money utilized in working actions:
Depreciation and amortization
143,723
144,360
Share-based compensation
22,929
3,951
Loss on sale of property
169
434
Closed property and different restructuring fees
3,496
23,586
Goodwill and asset impairment fees
—
425,405
Web pension and different postretirement profit revenue
(34,136
)
(14,633
)
Deferred revenue tax profit
(841
)
(60,260
)
LIFO cost
13,343
13,879
(Recoveries) provision for losses on receivables, web
(3,860
)
45,503
Loss on debt extinguishment
29,494
73
Non-cash curiosity expense and different changes
9,562
7,393
Adjustments in working property and liabilities
(33,994
)
(153,543
)
Web money supplied by working actions of continuous operations
205,675
34,730
Web money supplied by working actions of discontinued operations
1,324
4,352
Web money supplied by working actions
206,999
39,082
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(91,516
)
(91,128
)
Proceeds from inclinations of property
39,908
12,330
Different
(97
)
(1,472
)
Web money utilized in investing actions of continuous operations
(51,705
)
(80,270
)
Web money supplied by investing actions of discontinued operations
1,467
22,585
Web money utilized in investing actions
(50,238
)
(57,685
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of long-term debt
500,000
2,050
Proceeds from borrowings underneath revolving credit score line
2,666,239
2,269,989
Repayments of borrowings underneath revolving credit score line
(2,537,951
)
(2,162,821
)
Repayments of long-term debt and finance leases
(768,983
)
(93,326
)
Proceeds from the issuance of widespread inventory and train of inventory choices
207
2,027
Cost of worker restricted inventory tax withholdings
(10,397
)
(872
)
Funds for debt issuance prices
(10,444
)
—
Distributions to noncontrolling pursuits
(1,460
)
(1,398
)
Repayments of different loans
(163
)
—
Different
(540
)
—
Web money (utilized in) supplied by financing actions
(163,492
)
15,649
EFFECT OF EXCHANGE RATE CHANGES ON CASH
265
19
NET DECREASE IN CASH AND CASH EQUIVALENTS
(6,466
)
(2,935
)
Money and money equivalents, at starting of interval
47,117
45,263
Money and money equivalents, at finish of interval
40,651
42,328
Much less: money and money equivalents of discontinued operations
(155
)
(133
)
Money and money equivalents
$
40,496
$
42,195
Supplemental disclosures of money circulate data:
Money paid for curiosity
$
74,734
$
94,010
Money funds (refunds) for federal and state revenue taxes, web
42,990
(24,376
)
Leased property obtained in change for brand new working lease liabilities
116,725
121,455
Leased property obtained in change for brand new finance lease liabilities
468
—
Capital expenditures included in accounts payable
$
31,309
$
20,193
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
UNITED NATURAL FOODS, INC.
UNAUDITED
Reconciliation of Web revenue (loss) from persevering with operations and to Revenue (loss) from discontinued operations, web of tax to Adjusted EBITDA (unaudited)
13-Week Interval Ended
26-Week Interval Ended
(in 1000’s)
January 30,
2021
February 1,
2020
January 30,
2021
February 1,
2020Web revenue (loss) from persevering with operations
$
56,762
$
(13,984
)
$
55,790
$
(401,418
)
Changes to persevering with operations web revenue (loss):
Much less web revenue attributable to noncontrolling pursuits
(1,605
)
(650
)
(2,972
)
(1,169
)
Whole different expense, web
32,143
44,339
83,445
82,264
Provision (profit) for revenue taxes
16,392
(12,808
)
15,401
(79,763
)
Depreciation and amortization
66,534
69,219
143,723
144,360
Share-based compensation
12,673
5,134
26,822
9,059
Goodwill and asset impairment fees(1)
—
—
—
425,405
Restructuring, acquisition and integration associated bills(2)
17,783
36,522
34,211
51,194
Loss on sale of property
399
524
169
434
Word receivable fees(3)
—
—
—
12,516
Authorized (settlement revenue) reserve cost(4)
—
(654
)
—
1,196
Different retail expense(5)
1,394
—
3,003
—
Adjusted EBITDA of continuous operations
202,475
127,642
359,592
244,078
Adjusted EBITDA of discontinued operations(6)
3,820
3,468
5,660
8,726
Adjusted EBITDA
$
206,295
$
131,110
$
365,252
$
252,804
Revenue (loss) from discontinued operations, web of tax
$
3,803
$
(16,076
)
$
5,099
$
(12,050
)
Changes to discontinued operations web revenue (loss):
Whole different expense, web
—
(3
)
—
(64
)
Profit for revenue taxes
(898
)
(4,635
)
(372
)
(3,342
)
Restructuring, retailer closure and different fees, web
915
24,182
933
24,182
Adjusted EBITDA of discontinued operations
$
3,820
$
3,468
$
5,660
$
8,726
(1)
Fiscal 2020 displays a goodwill impairment cost attributable to a reorganization of our reporting models and a sustained lower in market capitalization and enterprise worth of the Firm, leading to a decline within the estimated honest worth of the U.S. Wholesale reporting unit. As well as, this cost features a goodwill finalization cost attributable to the SUPERVALU acquisition and an asset impairment cost.
(2)
Fiscal 2021 primarily displays prices related to advisory and transformational actions as we place our enterprise for additional value-creation submit SUPERVALU acquisition. Fiscal 2020 primarily displays integration fees, closed property reserve fees and administrative and operational restructuring prices.
(3)
Displays reserves and fees for notes receivable issued by the SUPERVALU enterprise previous to its acquisition to finance the acquisition of shops by its clients.
(4)
Displays a cost to settle a authorized continuing, web of revenue obtained to settle a separate authorized continuing.
(5)
Displays bills related to event-specific damages to sure retail shops.
(6)
We consider the inclusion of discontinued operations outcomes inside Adjusted EBITDA gives traders a significant measure of whole efficiency.
Reconciliation of Web revenue (loss) per Diluted Widespread Share to Adjusted Web revenue per Diluted Widespread Share (unaudited)
13-Week Interval Ended
26-Week Interval Ended
January 30,
2021
February 1,
2020
January 30,
2021
February 1,
2020Web revenue (loss) attributable to UNFI per diluted widespread share
$
1.00
$
(0.57
)
$
0.98
$
(7.77
)
Goodwill and asset impairment fees(1)
—
—
—
7.97
Restructuring, acquisition and integration associated bills(2)
0.30
0.68
0.58
0.96
Loss on sale of property
0.01
—
—
0.01
Pension settlement cost(3)
—
0.19
—
0.19
Surplus property depreciation and curiosity expense(4)
0.02
0.04
0.03
0.12
Word receivable fees(5)
—
—
—
0.23
Loss on debt extinguishment(6)
0.10
—
0.50
—
Authorized (settlement revenue) reserve cost(7)
—
(0.01
)
—
0.02
Different retail expense(8)
0.02
—
0.05
—
Discontinued operations retailer closures and different fees, web(9)
0.02
0.45
0.02
0.45
Tax influence of changes and adjusted efficient tax fee(10)
(0.22
)
(0.46
)
(0.40
)
(1.73
)
Adjusted web revenue per diluted widespread share (Retail in Discontinued Operations)(11)
1.25
0.32
1.76
0.45
Depreciation and amortization adjustment(12)
—
(0.07
)
—
(0.16
)
Adjusted web revenue per diluted widespread share (Retail in Persevering with Operations)
$
1.25
$
0.25
$
1.76
$
0.29
(1)
Fiscal 2020 displays a goodwill impairment cost attributable to a reorganization of our reporting models and a sustained lower in market capitalization and enterprise worth of the Firm, leading to a decline within the estimated honest worth of the U.S. Wholesale reporting unit. As well as, this cost features a goodwill finalization cost attributable to the SUPERVALU acquisition and an asset impairment cost.
(2)
Fiscal 2021 primarily displays prices related to advisory and transformational actions as we place our enterprise for additional value-creation submit SUPERVALU acquisition. Fiscal 2020 primarily displays integration fees, closed property reserve fees and administrative and operational restructuring prices.
(3)
Displays a non-cash pension settlement cost related to the acceleration of a portion of the accrued unrecognized actuarial loss on account of the lump sum settlement funds.
(4)
Displays surplus, non-operating property depreciation and curiosity expense. Fiscal 2020 consists of accelerated depreciation associated to a location on which the Firm acknowledged a acquire that’s included in Restructuring, acquisition and integration associated bills.
(5)
Displays reserves and fees for notes receivable issued by the SUPERVALU enterprise previous to its acquisition to finance the acquisition of shops by its clients.
(6)
Displays non-cash fees associated to the acceleration of unamortized debt issuance prices and unique difficulty reductions attributable to time period mortgage prepayments.
(7)
Displays a cost to settle a authorized continuing, web of revenue obtained to settle a separate authorized continuing.
(8)
Displays bills related to event-specific damages to sure retail shops.
(9)
Quantities symbolize retailer closure fees and prices, operational wind-down and stock fees, and asset impairment fees associated to discontinued operations.
(10)
Represents the tax impact of the pre-tax changes utilizing an adjusted efficient tax fee. The adjusted efficient tax fee is calculated based mostly on adjusted web revenue earlier than tax, and its influence displays the exclusion of modifications to unsure tax positions, valuation allowances, tax impacts associated to the train of share-based compensation awards and discrete GAAP tax objects which may influence the comparability of the operational efficient tax fee. The Firm believes utilizing this adjusted efficient tax fee will present higher consistency throughout the interim reporting intervals since every of those discrete objects may cause volatility within the GAAP tax fee that’s not indicative of the true operations of the Firm. By offering this non-GAAP measure, administration intends to offer traders with a significant, constant comparability of the Firm’s efficient tax fee on ongoing operations.
(11)
The computation of diluted earnings per share is calculated utilizing diluted weighted common shares excellent, which incorporates the web impact of dilutive inventory awards.
(12)
Within the fourth quarter of fiscal 2020 the Firm recorded a pre-tax cost of $50.0 million associated to the change in presentation of Retail to persevering with operations. This cost was calculated underneath GAAP because the depreciation and amortization expense that might have been acknowledged had Retail been included in persevering with operations for the complete time interval for the reason that SUPERVALU acquisition date. This adjustment attributes the professional rata quantity of the non-cash cost acknowledged within the fourth quarter of fiscal 2020 to the relevant time intervals by which it could have been acknowledged had Retail been included inside persevering with operations for the reason that acquisition date. UNFI believes the inclusion of this adjustment is a helpful indicator of efficiency to each administration and traders, because it gives a relative comparability to how UNFI’s outcomes of operations might be reported on an ongoing foundation.
Calculation of Web Debt to Adjusted EBITDA Leverage Ratio (unaudited)
(in 1000’s, besides ratios)
January 30, 2021
Present portion of long-term debt and finance lease liabilities
$
24,840
Lengthy-term debt
2,374,250
Lengthy-term finance lease liabilities
134,554
Much less: Money and money equivalents
(40,496
)
Web carrying worth of debt and finance lease liabilities
2,493,148
Debt issuance prices, web
37,128
Unique difficulty low cost on debt
18,597
Web debt and finance lease liabilities
2,548,873
Adjusted EBITDA(1)
$
785,370
Adjusted EBITDA leverage ratio
3.2x
(1)
Adjusted EBITDA displays the summation of the trailing 4 quarters ended January 30, 2021.
Reconciliation of Trailing 4 Quarters Web revenue from persevering with operations and Revenue from discontinued operations, web of tax to Adjusted EBITDA (unaudited)
(in 1000’s)
52-Week Interval
Ended
January 30, 2021
Web revenue from persevering with operations
$
203,199
Changes to persevering with operations web revenue:
Much less web revenue attributable to noncontrolling pursuits
(6,732
)
Whole different expense, web
150,020
Provision for revenue taxes
4,719
Depreciation and amortization
280,898
Share-based compensation
51,452
Restructuring, acquisition and integration associated bills
69,400
Loss on sale of property
16,867
Different retail expense
4,753
Adjusted EBITDA of continuous operations
774,576
Adjusted EBITDA of discontinued operations
10,794
Adjusted EBITDA
$
785,370
Revenue from discontinued operations, web of tax
$
1,947
Changes to discontinued operations web revenue:
Whole different expense, web
60
Profit for revenue taxes
(1,495
)
Restructuring, retailer closure and different fees, web
10,282
Adjusted EBITDA of discontinued operations
$
10,794
Reconciliation of Web money supplied by working actions to Free money circulate (unaudited)
26-Week Interval Ended
(in 1000’s)
January 30, 2021
February 1, 2020
Web money supplied by working actions
$
206,999
$
39,082
Capital expenditures
(91,516
)
(91,128
)
Free money circulate
$
115,483
$
(52,046
)
FISCAL 2021 GUIDANCE
Reconciliation of 2021 Steerage for Estimated Web Revenue per diluted Widespread Share to Estimated Non-GAAP Adjusted Web Revenue per diluted Widespread Share (unaudited)
Fiscal Yr Ending July 31, 2021
Low Vary
Estimate
Excessive Vary
Web revenue attributable to United Pure Meals, Inc. per diluted widespread share
$
2.15
$
2.65
Restructuring, acquisition and integration associated bills
0.46
Loss on debt extinguishment
0.55
Surplus property depreciation and curiosity expense
0.10
Discontinued operations retailer closures and different fees, web
0.12
Tax influence of changes and adjusted efficient tax fee(1)
(0.33
)
Adjusted web revenue per diluted widespread share
$
3.05
$
3.55
(1)
The estimated adjusted efficient tax fee excludes the potential influence of modifications in unsure tax positions, tax impacts associated to ASU 2016-09 relating to inventory compensation and valuation allowances. Seek advice from the reconciliation for adjusted efficient tax fee.
Reconciliation of 2021 Steerage for Web Revenue Attributable to United Pure Meals, Inc. to Adjusted EBITDA (unaudited)
Fiscal Yr Ending July 31, 2021
(in 1000’s)
Low Vary
Estimate
Excessive Vary
Web revenue attributable to United Pure Meals, Inc.
$
130,000
$
160,000
Provision for revenue taxes
48,000
58,000
Restructuring, acquisition and integration associated prices
27,000
Closed property depreciation and curiosity expense
6,000
Discontinued operations retailer closures and different fees, web
7,000
Web curiosity expense
209,000
Different (revenue) expense, web
(1,000
)
Depreciation and amortization
278,000
Share-based compensation
54,000
Web periodic profit revenue, excluding service prices
(68,000
)
Adjusted EBITDA
$
690,000
$
730,000
Reconciliation of Estimated 2021 and Precise 2020 U.S. GAAP Efficient Tax Charge to Adjusted Efficient Tax Charge (unaudited)
Estimated
Fiscal 2021
Precise Fiscal 2020
U.S. GAAP Efficient Tax Charge
24
%
26
%
Discrete quarterly recognition of GAAP objects(1)
2
%
(1
)
%
Tax influence of different fees and changes(2)
1
%
1
%
Adjustments in valuation allowances(3)
(1
)
%
1
%
Influence of goodwill impairment
—
%
11
%
Influence of CARES Act(4)
—
%
(11
)
%
Different(5)
1
%
Adjusted Efficient Tax Charge
27
%
27
%
Word: As a part of the year-end reconciliation, we are going to replace the reconciliation of the GAAP efficient tax fee for precise outcomes.
(1)
Displays modifications in tax legal guidelines excluding the CARES Act, unsure tax positions, the tax impacts associated to the train of share-based compensation awards and any prior-year Inner Income Service or different tax jurisdiction audit changes.
(2)
Displays the tax influence of pre-tax changes aside from the goodwill impairment which might be excluded from pre-tax revenue when calculating adjusted EPS.
(3)
Displays modifications in valuation allowances associated to modifications in judgment relating to the realizability of deferred tax property or present 12 months operations.
(4)
Displays the influence of tax loss carrybacks to 35% tax years allowed underneath the CARES Act as in comparison with the 21% tax fee relevant to tax loss carryforwards.
(5)
Tax impacts associated to full-year forecasted tax alternatives and associated prices. The Firm establishes an estimated adjusted efficient tax fee at the start of the fiscal 12 months based mostly on the most effective out there data. The Firm re-evaluates its estimated adjusted efficient tax fee as acceptable all year long and adjusts for any materials modifications. The precise adjusted efficient tax fee on the finish of the fiscal 12 months relies on precise outcomes and accordingly could differ from the estimated adjusted efficient tax fee used throughout the 12 months.
