[More below]
DAYVILLE, Conn., Jan. 12 /PRNewswire-FirstCall/ -- United Natural Foods, Inc. (Nasdaq: UNFI - News; the "Company") today announced that it has signed a five
-year primary distribution agreement with Wild Oats Markets, Inc. (Nasdaq: OATS - News; "Wild Oats"). A three-month transition period from Wild Oats' current
primary distributor is expected, with the Company assuming primary distribution to Wild Oats' 102 natural foods stores by April 1, 2004.
"We are pleased to re-establish our primary distribution relationship with Wild Oats and are excited about the opportunities this agreement provides,"
commented Steven Townsend, Chair and Chief Executive Officer of the Company. "Our ability to reclaim this business is a testament to our hard work in
servicing all of our customers' needs and further strengthens our position as the nation's premier distributor of natural and organic products. Additionally,
the trust placed in us by the management of Wild Oats is recognition of the standard of excellence that we have established. We have carefully planned this
transition with Wild Oats so as to provide them and our current customers with excellent service levels and support."
Novation of Swaps
The Company has also assigned and transferred all of its obligations of its two "ineffective" interest rate swaps to a third party at a cost of $5.3 million
plus accrued interest. The swaps were originally entered into as a hedge against LIBOR interest rate movements. The first swap was entered into in October
1998 at a fixed rate of 5.00% on a notional amount of $60 million. The second swap was entered into in August 2001 at a fixed rate of 4.81% on a notional
amount of $30 million. The changes in the fair value of these swaps, while in effect, have been accounted for by the Company on the Statement of Income each
quarter as a special item, therefore no Income Statement effect will be recorded.
As a result of this transaction, the Company's revolving credit facility will bear interest at variable rate based on LIBOR. The Company expects this
floating interest rate to be lower than the fixed rate under the swaps, which would result in a lower interest expense and an increase to earnings in the
short term. However, an increase in the variable rate may increase the Company's interest expense and reduce earnings. The Company does not expect the
payment to the third party in connection with the novation to negatively impact its ability to fund its current or expected future needs.
Updated 2004 Guidance
The Company has updated its guidance for its fiscal year ending July 31, 2004 to reflect both the execution of the primary distribution agreement with Wild
Oats and the novation of certain of its interest rate swap transactions.
The Company anticipates that its distribution relationship with Wild Oats will increase its fiscal 2004 net sales by approximately $50 million, and $150
million to $200 million in sales for fiscal 2005. The Company anticipates incurring a special charge of approximately $1.0 million over the second and third
quarters of fiscal 2004, which relates to start-up and transition costs associated with implementing its distribution relationship with Wild Oats.
The Company anticipates revenues for the fiscal year ending July 31, 2004 in the range of $1.60 billion to $1.62 billion, representing growth of
approximately 16% to 17% over fiscal 2003. The Company expects earnings per diluted share, excluding special items, in the range of $1.46 to $1.52 per share,
representing growth of approximately 23% to 26% over fiscal 2003. The Company expects earnings per diluted share, including special items, in the range of $
1.42 to $1.48 per share.
The Company's prior guidance for the fiscal year ending July 31, 2004 anticipated revenues in the $1.55 to $1.57 billion range and net income, excluding
potential special items, in the range of $1.42 to $1.46 per diluted share.
Historically, interest rate swaps, distribution facility expansions and asset impairment charges (including goodwill) have been classified as special items.
However, at this time the Company does not know the extent or significance of these items or whether the Company will in fact incur any of these items (other
than the interest rate swaps) in fiscal 2004. The Company's guidance is based on a number of assumptions, which are subject to change and many of which are
outside the control of the Company. If any of these assumptions vary, the Company's guidance may change. There can be no assurance that the Company will
achieve these results.
About the Company
The Company carries and distributes over 32,000 products to more than 14,000 customers nationwide. The Company serves a wide variety of retail formats
including conventional supermarket chains, natural product superstores and independent retail operators.
For more information on the Company, visit the Company's web-site at www.unfi.com .
DAYVILLE, CT—United Natural Foods Inc. (UNFI) has signed a five-year primary distribution agreement with Wild Oats Markets Inc. (OATS).
In a press release, United said a three-month transition period from Wild Oats' current primary distributor is expected, with United assuming primary
distribution to Wild Oats' 102 natural foods stores by April 1.
United also said it has assigned and transferred all of its obligations of its two "ineffective" interest-rate swaps to a third party at a cost of $5.3
million plus accrued interest. The swaps were originally entered into as a hedge against LIBOR interest-rate movements.
As a result of this transaction, the company's revolving credit facility will bear interest at variable rate based on LIBOR. The company said it expects this
floating interest rate to be lower than the fixed rate under the swaps, which would result in a lower interest expense and an increase to earnings in the
short term. However, an increase in the variable rate may increase its interest expense and reduce earnings. The company doesn't expect the payment to the
third party in connection with the transaction to hurt its ability to fund its current or expected future needs.
The company has updated its guidance for the fiscal year ending July 31 to reflect both the execution of the distribution agreement with Wild Oats and the
novation of some interest-rate swap transactions.
It said it now expects its distribution relationship with Wild Oats will increase its fiscal 2004 net sales by about $50 million, and will boost fiscal 2005
sales by $150 million to $200 million. The company expects to incur a special charge of about $1.0 million over the second and third quarters of fiscal 2004,
which relates to start-up and transition costs associated with implementing its distribution relationship with Wild Oats.
It said it expects revenues for fiscal 2004 to be $1.60 billion to $1.62 billion, representing growth of 16-17% over fiscal 2003. The company expects share
earnings, excluding special items, of $1.46-$1.52, representing growth of 23-26% over fiscal 2003. The company expects earnings including special items of $
1.42-$1.48 a share.
United said its prior guidance for the fiscal year ending July 31 were for revenues of $1.55-$1.57 billion and net income excluding items of $1.42-$1.46 a
share.
United distributes more than 32,000 products to more than 14,000 customers in the U.S.
Company Web Site: http://www.unfi.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company's business that
are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking statements, including but not limited to general business conditions, the impact
of competition and the Company's dependence on principal customers, see "Risk Factors" in the Company's quarterly report on Form 10-Q filed with the
Securities and Exchange Commission on December 12, 2003, and its other filings under the Securities Exchange Act of 1934, as amended. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not
undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any projections of
future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to
change and could differ materially from final reported results. The Company may from time to time update these publicly announced projections, but it is not
obligated to do so.
Non-GAAP Results: To supplement its financial statements presented on a GAAP basis, the Company uses non-GAAP additional measures of operating results, net
earnings and earnings per share adjusted to exclude special charges. The Company believes that the use of these additional measures is appropriate to enhance
an overall understanding of its past financial performance and also its prospects for the future as these special charges are not expected to be part of the
Company's ongoing business. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors with a more
complete understanding of the underlying operational results and trends and its marketplace performance. For example, these adjusted non-GAAP results are
among the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with generally accepted
accounting principles in the United States.
Source: United Natural Foods, Inc.
source: http://biz.yahoo.com/prnews/040112/cgm011_1.html 12jan04
Company Profile
United Natural Foods Inc
260 Lake Road
Dayville, CT 06241
Phone: (860) 779-2800
Fax: (860) 779-2811
Web Site: http://www.unfi.com
DETAILS
Index Membership: S&P 600 SmallCap
Sector: Consumer Non-Cyclical
Industry: Food Processing
Employees (last reported count): 3,400
MULTEX ABRIDGED BUSINESS SUMMARY
United Natural Foods, Inc. (UNFI) is a national distributor of natural and organic foods and related products in the United States. The Company carries more
than 32,000 natural and organic products, consisting of national brand, regional brand, private-label and master distribution products such as grocery and
general merchandise, produce, perishables and frozen foods, nutritional supplements, bulk and foodservice products and personal care items. UNFI serves more
than 14,000 customers, including independently owned natural products retailers, supernatural chains (which are comprised of small and large chains of
natural foods supermarkets) and conventional supermarkets located across the United States. Other distribution channels include foodservice and buying clubs.
Through its subsidiary, the Natural Retail Group, the Company also owns and operates 12 natural product retail stores located in Florida, Maryland and
Massachusetts.
For the three months ended 10/31/03, revenues rose 23% to $381.4 million. Net income rose 70% to $6.8 million. Revenues reflect growth in the independent and
mass-market distribution channels. Earnings also benefited from improved operating margins.
OFFICERS Pay Exercised Steven Townsend, 49 Chairman, CEO $ 308.00K N/A Rick Puckett, CFO, VP, Treasurer N/A N/A Richard Antonelli, 45 Pres of the Western Region N/A N/A Daniel Atwood, 44 Sr. VP, Sec. $ 225.00K $ 819.00K Michael Beaudry, 39 VP-Operations N/A N/A
Dollar amounts are as of 31-Jul-02 and compensation values are for the last fiscal year ending on that date. "Pay" is salary, bonuses, etc. "Exercised" is
the value of options exercised during the fiscal year.
Major Holders
BREAKDOWN
% of Shares Held by All Insider and 5% Owners: 13%
% of Shares Held by Institutional & Mutual Fund Owners: 91%
% of Float Held by Institutional & Mutual Fund Owners: 104%
Number of Institutions Holding Shares: 10
TOP INSIDER & RULE 144 HOLDERS
Holder / Shares / Reported
FUNK, MICHAEL S. 205,550
9-Sep-03
ATWOOD, DANIEL V. 69,494 16-Apr-03
SIMONE, THOMAS B. 15,000 10-Jul-03
TOWNSEND, STEVEN H. 14,888 31-Mar-03
WEINTRAUB, TODD 2,824 1-Apr-02
TOP INSTITUTIONAL HOLDERS
Holder Shares % Out Value* Reported Deutsche Bank Aktiengesellschaft 1,542,450 7.89 $51,193,914 30-Sep-03 Franklin Resources, Inc 788,577 4.03 $26,172,870 30-Sep-03 Oak Ridge Investments, LLC 734,093 3.76 $24,364,546 30-Sep-03 Times Square Capital Management 659,825 3.38 $21,899,591 30-Sep-03 Barclays Bank Plc 627,136 3.21 $20,814,643 30-Sep-03 Rothschild Asset Management Inc 580,885 2.97 $19,279,572 30-Sep-03 Axa 546,764 2.8 $18,147,096 30-Sep-03 Invesco Funds Group, Inc. 436,600 2.23 $14,490,753 30-Sep-03 Mellon Bank, N.A. 414,338 2.12 $13,751,877 30-Sep-03 Kornitzer Capital Management, Inc. 413,100 2.11 $13,710,788 30-Sep-03
TOP MUTUAL FUND HOLDERS
Holder Shares % Out Value* Reported Buffalo Small Cap Fund 371,889 1.9 $12,342,995 30-Sep-03 Aim Small Cap Growth Fund 335,300 1.72 $9,975,175 31-Aug-03 WM Group of Funds-Small Cap Stock Fund 289,500 1.48 $11,113,904 30-Nov-03 Scudder Small Cap Fund 264,600 1.35 $8,782,073 30-Sep-03 Invesco Stock Funds-Small Company Growth Fund 232,700 1.19 $7,113,639 31-Jul-03 Oppenheimer Discovery Fund 188,200 0.96 $6,246,357 30-Sep-03 Evergreen Growth Fund 187,200 0.96 $6,213,167 30-Sep-03 Guardian Small Cap Stock Fund 167,100 0.85 $4,738,956 30-Jun-03 Invesco Stock Funds-Dynamics Fund 164,400 0.84 $5,025,708 31-Jul-03 One Group Small Cap Growth Fund 152,000 0.78 $4,310,720 30-Jun-03 * Value shown is computed using the security's price on the report date given.
source: http://finance.yahoo.com/q/mh?s=UNFI 12jan04
|
To
send us your comments, questions, and suggestions click
here |