Financial Data and Key Metrics Changes - Total net sales for Q3 were $7.2 billion, a 9.2% increase compared to the same quarter last year, bringing year-to-date sales to $21.7 billion, a 7.1% increase [31][46] - Adjusted EBITDA for Q3 totaled $196 million, a 5.9% increase from $185 million in the same quarter last year, with year-to-date adjusted EBITDA at $616 million, a 9.2% increase [49][51] - Adjusted EPS for Q3 was $1.10, a 10% increase from $1.00 in the same quarter last year, with year-to-date adjusted EPS at $3.56, a 22% increase over the previous year [51][56] Business Line Data and Key Metrics Changes - Cross-selling with existing customers contributed an additional $95 million in revenue for the quarter, totaling $260 million year-to-date, on track for nearly $1 billion in cross-selling revenue for fiscal 2022 [32][34] - The Professional Services business saw growth rates in adjusted EBITDA more than double that of the wholesale business, indicating strong demand for these services [38] Market Data and Key Metrics Changes - The company reported a decrease in driver vacancy rates to 9% and distribution center vacancy rates improved to less than 7% by the end of Q3, reflecting stabilization in workforce [11][41] - The food-at-home inflation rate was reported at 10.8%, impacting consumer behavior and sales dynamics [9] Company Strategy and Development Direction - The "Fuel the Future" strategy aims for long-term sustainable growth, focusing on enhancing customer value, improving supplier partnerships, providing career opportunities for associates, and supporting community and environmental initiatives [14][16][24] - The company is committed to a disciplined approach to value creation, focusing on strategic areas that drive economic profit rather than growth for growth's sake [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to grow the business further, citing a robust new business pipeline and improvements in supply levels [10][33] - The company anticipates continued challenges from inflation and supply chain issues but remains confident in its agility and resilience [59] Other Important Information - The company revised its definition of adjusted EBITDA and adjusted EPS to exclude the impact of LIFO expense, which is expected to provide a clearer view of underlying operating performance [47][48] - Full-year sales guidance has been raised to a range of $28.8 billion to $29.1 billion, reflecting improved performance and market conditions [55][56] Q&A Session Summary Question: Did the quarter beat internal expectations and what is the outlook for Q4 and FY2023? - Management indicated that Q3 results were in line with internal expectations and did not provide specific guidance for Q4 or FY2023 but affirmed confidence in achieving long-term targets [64][65] Question: What caused the increase in the LIFO charge? - The increase in the LIFO charge was attributed to rising inflation, with no fundamental changes in inventory balances [66][67] Question: How quickly can the company gain market share with the One-UNFI initiative? - The One-UNFI initiative is a multi-year process, with incremental opportunities identified to enhance supply chain efficiency and customer service [75] Question: How does scale benefit the company in the current environment? - Scale provides flexibility in distribution and purchasing power, allowing the company to better serve its customers and suppliers [82][84] Question: Is there a shift from branded to private label products? - There has been an acceleration in private label brand sales, reflecting changing consumer preferences amid inflation [93][97] Question: What is the outlook for promotional activities and their impact on margins? - Promotional dollars are expected to improve as fill rates stabilize, but there is a lag in promotional activity following fill rate improvements [96][98]

| --- | --- | --- | --- | |-------|-------|-------------------------|--------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal 2022 3rd Quarter | | | | | Supplemental Slides | | | | | | | | | | | | | | | | | | | | | | | | | | June 7, 2022 | 1 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 ...

Financial Performance - Net sales for the 13-week period ended January 29, 2022, increased by $516 million, or 7.5%, to $7,416 million compared to $6,900 million for the same period in 2021[132]. - Gross profit for the second quarter of fiscal 2022 increased by $80 million, or 8.0%, to $1,075 million, with a gross profit margin of 14.50%[147]. - Adjusted EBITDA for the 13-week period ended January 29, 2022, was $201 million, a decrease of $5 million from $206 million in the same period in 2021[132]. - Operating expenses increased by $74 million, or 8.5%, to $944 million, representing 12.73% of net sales for the second quarter of fiscal 2022[149]. - Net income from continuing operations for the 13-week period ended January 29, 2022, was $68 million, an increase of $10 million from $58 million in the same period in 2021[132]. - Independent retailers' net sales increased by 12.0% to $1,905 million for the 13-week period ended January 29, 2022, compared to $1,701 million in the same period in 2021[137]. - Supernatural channel net sales increased by 11.9% to $1,453 million for the 13-week period ended January 29, 2022, compared to $1,298 million in the same period in 2021[137]. - The company's gross profit for fiscal 2022 year-to-date increased by $152 million, or 7.7%, to $2,117 million compared to $1,965 million for fiscal 2021 year-to-date[148]. - The increase in net sales for fiscal 2022 year-to-date was primarily driven by inflation and new business from both existing and new customers[143]. - The company experienced a modest increase in retail identical store sales of 0.3% due to higher average basket sizes[146]. - Operating income increased by $75 million to $232 million for fiscal 2022 year-to-date, from an operating loss of $157 million for fiscal 2021 year-to-date[154]. - Net income attributable to United Natural Foods, Inc. was $142 million, or $2.33 per diluted common share, for fiscal 2022 year-to-date, compared to $58 million, or $0.98 per diluted common share, for fiscal 2021 year-to-date[161]. - Total net sales increased by $516 million to $7,416 million for the second quarter of fiscal 2022, compared to $6,900 million for the second quarter of fiscal 2021[163]. - Wholesale's net sales increased by $514 million to $7,132 million for the second quarter of fiscal 2022, compared to $6,618 million for the second quarter of fiscal 2021[163]. - Adjusted EBITDA for wholesale decreased by 15.4% for the second quarter of fiscal 2022 compared to the second quarter of fiscal 2021, driven by higher operating expenses[169]. Operational Developments - The company operates 75 retail grocery stores, including 55 Cub Foods corporate stores and 20 Shoppers Food Warehouse stores[117]. - The company has a distribution center network with 56 centers representing approximately 30 million square feet of warehouse space[105]. - The company acquired a distribution center in Riverside, California for approximately $153 million and monetized it through a sale-leaseback transaction for $225 million[114]. - The company expects to record a pre-tax gain of approximately $85 million from the sale-leaseback transaction in the third quarter of fiscal 2022[114]. - The company plans to improve operating performance through the ValuePath initiative, which will be implemented through the end of fiscal 2023[107]. - The company believes its Fuel the Future strategy will accelerate growth through tailored, data-driven solutions for existing customers and new customer acquisitions[109]. - The company anticipates continued growth in eCommerce utilization by grocery consumers, driven by the pandemic[110]. - The company is facing a tighter operating labor market, leading to increased reliance on third-party resources and higher costs[112]. Financial Position - Total liquidity as of January 29, 2022, was $1,036 million, consisting of $991 million unused credit and $45 million in cash and cash equivalents[174]. - Total debt increased by $135 million to $2,323 million as of January 29, 2022, primarily due to additional borrowings under the ABL Credit Facility[174]. - Working capital increased by $246 million to $1,309 million as of January 29, 2022, primarily due to increases in inventory and accounts receivable[174]. - The effective tax rate for fiscal 2022 year-to-date was 14.2%, compared to 21.6% for fiscal 2021 year-to-date, primarily driven by discrete tax benefits from employee stock award vestings[159]. - The company borrowed a net $289 million under the ABL Credit Facility and repaid $158 million on the Term Loan Facility during fiscal 2022 year-to-date[178]. - Capital expenditures for fiscal 2022 year-to-date were $106 million, an increase of $14 million compared to $92 million for fiscal 2021 year-to-date, primarily due to investments in a new distribution center[183]. - The company expects fiscal 2022 capital spending to be approximately $250 million, focusing on optimizing and expanding the distribution network and technology platform investments[183]. - Net cash provided by operating activities of continuing operations decreased to $43 million in fiscal 2022 year-to-date from $207 million in fiscal 2021 year-to-date, a change of $164 million[184]. - Net cash used in investing activities of continuing operations increased to $129 million in fiscal 2022 year-to-date from $51 million in fiscal 2021 year-to-date, a change of $78 million[185]. - The company expects to contribute approximately $46 million to multiemployer pension plans related to continuing operations in fiscal 2022[191]. - As of January 29, 2022, the company had $1,231 million of floating rate notional debt subject to active interest rate swap contracts[181]. - The fair value of interest rate derivatives represented a total net liability of $39 million, subject to volatility based on changes in market interest rates[181]. - The company has $176 million remaining authorized under its share repurchase program, with no shares repurchased in fiscal 2022 year-to-date[194]. - The company is subject to a fixed charge coverage ratio of at least 1.0 to 1.0 under the ABL Loan Agreement, which has not been triggered as of the filing date[179]. Cost and Inflation - The company experienced cost inflation of approximately 5% across its businesses in the second quarter of fiscal 2022[119]. - Operating expenses increased by $102 million, or 5.7%, to $1,876 million for fiscal 2022 year-to-date, compared to $1,774 million for fiscal 2021 year-to-date[150].

United Natural Foods, Inc. (NYSE:UNFI) Q2 2022 Earnings Conference Call March 9, 2022 8:30 AM ET Company Participants Steve Bloomquist - Vice President of Investor Relations Sandy Douglas - Chief Executive Officer Chris Testa - President John Howard - Chief Financial Officer Eric Dorne - Chief Operating Officer Conference Call Participants John Heinbockel - Guggenheim Bill Kirk - MKM Partners Eric Larson - Seaport Research William Reuter - Bank of America Kelly Bania - BMO Carla Casella - JPMorgan Operator ...

| --- | --- | --- | --- | |---------------|---------|---------------------|---------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | nd | | | | Fiscal 2022 2 | Quarter | | | | | | Supplemental Slides | | | | | | | | | | | March 9, 2022 | 1 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. Statemen ...

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents the company's unaudited condensed consolidated financial statements for the quarter ended October 30, 2021 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $8.0 billion, driven by increases in inventories and accounts receivable Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Oct 30, 2021 | July 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $46 | $41 | | Inventories, net | $2,537 | $2,247 | | Total current assets | $4,019 | $3,550 | | Total assets | $7,999 | $7,525 | | **Liabilities & Equity** | | | | Accounts payable | $1,896 | $1,644 | | Total current liabilities | $2,691 | $2,487 | | Long-term debt | $2,376 | $2,175 | | Total liabilities | $6,412 | $6,011 | | Total stockholders' equity | $1,587 | $1,514 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Reports a 4.7% increase in net sales to $7.0 billion and a significant rise in net income to $76 million Condensed Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | 13-Week Period Ended Oct 30, 2021 | 13-Week Period Ended Oct 31, 2020 | | :--- | :--- | :--- | | Net sales | $6,997 | $6,684 | | Gross profit | $1,042 | $970 | | Operating income | $107 | $50 | | Net income (loss) attributable to UNFI | $76 | $(1) | | Diluted earnings (loss) per share | $1.25 | $(0.02) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $81 million, with financing activities providing $167 million in cash Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | 13-Week Period Ended Oct 30, 2021 | 13-Week Period Ended Oct 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(81) | $(58) | | Net cash used in investing activities | $(81) | $(35) | | Net cash provided by financing activities | $167 | $95 | | Net increase in cash and cash equivalents | $5 | $2 | | Cash and cash equivalents, at end of period | $46 | $49 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details revenue by channel, debt facilities, segment performance, and opioid litigation contingencies Net Sales by Customer Channel (Q1 2022 vs Q1 2021, in millions) | Customer Channel | Q1 2022 Net Sales | Q1 2021 Net Sales | | :--- | :--- | :--- | | Chains | $3,082 | $3,027 | | Independent retailers | $1,750 | $1,672 | | Supernatural | $1,378 | $1,214 | | Retail | $602 | $606 | | Other | $580 | $581 | Long-Term Debt Composition (as of Oct 30, 2021, in millions) | Facility | Amount | | :--- | :--- | | Term Loan Facility | $994 | | ABL Credit Facility | $910 | | Senior Notes | $500 | | Other secured loans | $34 | | **Total Long-term debt, including current portion** | **$2,390** | Segment Performance (Q1 2022 vs Q1 2021, in millions) | Segment | Q1 2022 Net Sales | Q1 2022 Adj. EBITDA | Q1 2021 Net Sales | Q1 2021 Adj. EBITDA | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $6,734 | $164 | $6,438 | $123 | | Retail | $602 | $22 | $606 | $25 | - The company is a defendant in approximately 43 lawsuits related to the national opioid epidemic, consolidated as Multi-District Litigation (MDL)[88](index=88&type=chunk) - UNFI is being defended and indemnified by New Albertson's in a majority of these cases and believes the claims are without merit[88](index=88&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q1 2022 financial results, strategic initiatives, operational challenges, and the company's liquidity position [Executive Overview](index=27&type=section&id=EXECUTIVE%20OVERVIEW) Outlines the 'Fuel the Future' strategy, key customer agreements, and the focus on debt reduction - The company introduced its **'Fuel the Future' strategy** to strengthen customers, improve the supply chain, and inspire food solutions[100](index=100&type=chunk) - A key growth driver is a new **10-year supply agreement with Key Food Stores**, with expected sales of approximately **$10 billion** over the term[104](index=104&type=chunk) - The company continues to serve as the primary distributor to Whole Foods Market under an agreement that expires in September 2027[105](index=105&type=chunk) [Results of Operations](index=34&type=section&id=RESULTS%20OF%20OPERATIONS) Net sales grew 4.7% to $7.0 billion, driven by inflation, new business, and strong performance in the Supernatural channel Net Sales by Customer Channel (Q1 2022 vs Q1 2021, in millions) | Customer Channel | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Chains | $3,082 | $3,027 | 1.8% | | Independent retailers | $1,750 | $1,672 | 4.7% | | Supernatural | $1,378 | $1,214 | 13.5% | | Retail | $602 | $606 | (0.7)% | | **Total net sales** | **$6,997** | **$6,684** | **4.7%** | - Gross profit rate increased to **14.89% in Q1 2022** from 14.51% in Q1 2021, driven by improvements in the Wholesale segment margin, inflation, and the ValuePath initiative[139](index=139&type=chunk) - Operating expenses decreased as a percentage of net sales to **13.32% from 13.52%** due to leveraging fixed costs, despite higher transportation expenses and investments in labor[140](index=140&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Total liquidity stood at $1.11 billion, with fiscal 2022 capital spending projected at approximately $300 million - Total liquidity was **$1,112 million** as of October 30, 2021, comprising $1,066 million in unused credit and $46 million in cash[153](index=153&type=chunk) - Subsequent to the quarter end, the company made a **$150 million voluntary prepayment** on its Term Loan Facility and amended the loan to reduce the interest rate margin by 25 basis points[66](index=66&type=chunk)[153](index=153&type=chunk) - Fiscal 2022 capital spending is expected to be approximately **$300 million**, focused on network optimization, technology, and the new Allentown, PA distribution center[163](index=163&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks stem from interest rate fluctuations and diesel fuel price increases - Primary market risks are from fluctuations in interest rates on borrowings and diesel fuel prices[176](index=176&type=chunk) - As of October 30, 2021, the company had interest rate swap contracts on an aggregate of **$1,232 million of floating-rate notional debt** to hedge against LIBOR changes[161](index=161&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[177](index=177&type=chunk) - **No material changes** occurred during the first quarter of fiscal 2022 that are reasonably likely to materially affect the company's internal control over financial reporting[178](index=178&type=chunk) Part II. Other Information [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) No material legal proceedings are reported beyond the opioid-related lawsuits disclosed in the financial notes - The company states there are no pending material legal proceedings to which it is a party, other than those detailed in Note 15 of the financial statements[179](index=179&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported for the period - **No material changes** to the risk factors from the Annual Report were reported[180](index=180&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares in Q1 2022, with $176 million remaining under its repurchase authorization - As of October 30, 2021, **$176 million remained available** under the company's share repurchase program[183](index=183&type=chunk) - **No shares were repurchased** under the program in Q1 2022; however, 721,820 shares were surrendered by employees to cover taxes related to vested restricted stock[182](index=182&type=chunk)[183](index=183&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) Lists filed exhibits, including a Term Loan Agreement amendment and required CEO/CFO certifications - Key exhibits filed include an amendment to the Term Loan Agreement and certifications from the CEO and CFO as required by the Sarbanes-Oxley Act[184](index=184&type=chunk)

United Natural Foods, Inc. (NYSE:UNFI) Q1 2022 Earnings Conference Call December 8, 2021 8:30 AM ET Company Participants Steve Bloomquist - Vice President of Investor Relations Sandy Douglas - Chief Executive Officer Chris Testa - President John Howard - Chief Financial Officer Eric Dorne - Chief Operating Officer Conference Call Participants John Heinbockel - Guggenheim Scott Mushkin - R5 Capital William Reuter - Bank of America Bill Kirk - MKM Partners Eric Larson - Seaport Research Spencer Hanus - Wolfe ...

Financial Performance - First quarter sales reached $70 billion, a 47% increase compared to the first quarter of fiscal year 2021[7, 12] - Adjusted EBITDA was $189 million, up 19% year-over-year[7, 12] - Adjusted EPS increased by 902% to $097[7] - Net debt reduction of approximately $250 million occurred in the last 12 months[20] Capital Structure - Secured term loan B-1 balance was $994 million as of Q1 FY22[20] - The company has a $21 billion ABL revolver[20] - Net Debt to Adjusted EBITDA leverage ratio is 32x[20] - Available liquidity was $1112 billion[20] Fiscal 2022 Outlook - Net sales are projected to be between $278 billion and $283 billion, representing approximately 4% growth[26] - Adjusted EBITDA is expected to be in the range of $760 million to $790 million, also indicating around 4% growth[26] - Adjusted EPS is forecasted to be between $390 and $420, reflecting about 4% growth[26] - Net debt reduction is projected to be between $100 million and $150 million[26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-15723 UNITED NATURAL FOODS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or o ...

| --- | --- | --- | |---------|---------------------|--------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | th | | | | Quarter | Fiscal 2021 4 | | | | Supplemental Slides | | | | | | | | | | | | | | | | | | | | | September 28, 2021 | 1 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 ...