United Natural Foods, Inc. Reports First Quarter Fiscal 2023 Results
United Natural Foods, Inc. (UNFI) reported a 7.6% increase in net sales to $7.5 billion for Q1 FY23, driven by inflation and new business. Gross profit rose to nearly $1.1 billion, a 5.2% increase. However, net income fell 13.2% to $66 million, with EPS decreasing 14.4% to $1.07. Adjusted EBITDA improved 3.5% to $207 million. The company reaffirmed its fiscal 2023 guidance, expecting net sales between $29.8 billion and $30.4 billion, with EPS projected at $3.95 to $4.25.
- Net sales increased by 7.6%, reaching $7.5 billion.
- Gross profit increased by 5.2%, nearly $1.1 billion.
- Adjusted EBITDA rose by 3.5% to $207 million.
- Reaffirmed full-year fiscal 2023 guidance with expected net sales of $29.8 - $30.4 billion.
- Net income decreased by 13.2% to $66 million.
- EPS fell by 14.4% to $1.07.
- Free cash flow was negative at $(329) million, worse than last year's $(137) million.
Reaffirms Full-Year Guidance
First Quarter Fiscal 2023 Highlights (comparisons to first quarter fiscal 2022)
-
Net sales increased
7.6% to , primarily driven by inflation and new business$7.5 billion -
Gross profit increased
, or$54 million 5.2% , to nearly ; prior to LIFO, gross profit increased$1.1 billion 6.1% -
Net income decreased
13.2% to ; Earnings per diluted share (EPS) decreased$66 million 14.4% to$1.07 -
Adjusted EBITDA increased
3.5% to$207 million -
Adjusted EPS increased
2.7% to$1.13 - Entered into commercial agreement to implement an industry-leading warehouse automation system
-
Subsequent to quarter end, reduced net debt by
with initial proceeds from A/R monetization$253 million
“Our performance this quarter reflects continued execution of our strategy in a dynamic operating environment as we improved fill rates and operating performance and saw more customers buying more categories from us than ever before,” said
|
13-Week Period Ended |
|
|
|||||||
($ in millions, except for per share data) |
|
|
|
|
Percent
|
|||||
Net sales |
$ |
7,532 |
|
|
$ |
6,997 |
|
|
7.6 |
% |
Chains |
$ |
3,224 |
|
|
$ |
3,082 |
|
|
4.6 |
% |
Independent retailers |
$ |
1,947 |
|
|
$ |
1,750 |
|
|
11.3 |
% |
Supernatural |
$ |
1,513 |
|
|
$ |
1,378 |
|
|
9.8 |
% |
Retail |
$ |
613 |
|
|
$ |
602 |
|
|
1.8 |
% |
Other |
$ |
635 |
|
|
$ |
580 |
|
|
9.5 |
% |
Eliminations |
$ |
(400 |
) |
|
$ |
(395 |
) |
|
1.3 |
% |
Net income |
$ |
66 |
|
|
$ |
76 |
|
|
(13.2 |
) % |
Adjusted EBITDA(1) |
$ |
207 |
|
|
$ |
200 |
|
|
3.5 |
% |
EPS(2) |
$ |
1.07 |
|
|
$ |
1.25 |
|
|
(14.4 |
) % |
Adjusted EPS(1)(2) |
$ |
1.13 |
|
|
$ |
1.10 |
|
|
2.7 |
% |
(1) |
During fiscal 2022, the Company revised its definition of Adjusted EBITDA and Adjusted EPS to exclude the impact of the non-cash LIFO charge or benefit. The Company believes that this change provides a better indicator of its underlying operating performance and permits better comparability between periods. Prior-year periods have been recast to reflect the new definition. Please refer to the tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with |
(2) |
The decrease in EPS compared to the increase in Adjusted EPS in the first quarter of fiscal 2023 was primarily driven by a higher LIFO charge compared to the first quarter of fiscal 2022 which is excluded from adjusted EPS. |
First Quarter Fiscal 2023 Summary
Net sales increased
Gross profit in the first quarter of fiscal 2023 increased
Operating expenses in the first quarter of fiscal 2023 were
Interest expense, net for the first quarter of fiscal 2023 was
Effective tax rate for the first quarter of fiscal 2023 was
Net income for the first quarter of fiscal 2023 was
Net income per diluted share (EPS) was
Adjusted EBITDA for the first quarter of fiscal 2023 was
Capital Allocation and Financing Overview
-
Free Cash Flow – During the first quarter of 2023, free cash flow was
, compared to$(329) million in the first quarter of fiscal 2022. The results for the first quarter of fiscal 2023 reflect net cash used in operating activities of$(137) million , driven by expected seasonally higher levels of working capital and the impact of inflation, and payments for capital expenditures of$262 million .$67 million -
Leverage – The net debt to adjusted EBITDA leverage ratio was 3.0x as of
October 29, 2022 . Total outstanding debt, net of cash, increased by during the first quarter of fiscal 2023 to$378 million primarily driven by investments in working capital.$2.49 billion -
Liquidity – As of
October 29, 2022 , total liquidity was approximately , consisting of approximately$1.3 billion in cash, plus the ability to borrow an aggregate of approximately$39 million under the Company’s asset-based lending facility.$1.25 billion -
Repurchase program – During the first quarter of fiscal 2023, the Company repurchased approximately 339,000 shares at an average price of
for an aggregate cost of approximately$35.85 , including fees and commissions.$12 million -
Accounts Receivable monetization - Early in the second quarter of fiscal 2023, the Company entered into a monetization program with an initial sale of qualified accounts receivable of approximately
. Proceeds have been used to pay down debt.$253 million
Fiscal 2023 Outlook (1)
The Company is reaffirming its full-year outlook for fiscal 2023.
Fiscal Year Ending |
|
|
|
|
% Growth Over FY22 at Midpoint |
Net sales ($ in billions) |
|
|
|
|
|
Net income ($ in millions) |
|
|
|
|
|
EPS |
|
|
|
|
|
Adjusted EPS(2)(3)(4) |
|
|
|
|
|
Adjusted EBITDA(3)($ in millions) |
|
|
|
|
|
Capital expenditures ($ in millions) |
|
|
~ |
|
|
(1) |
The outlook provided above is for fiscal 2023 only and replaces and supersedes any and all guidance provided prior to the date hereof covering fiscal 2023. This outlook is forward-looking, is based on management's current estimates and expectations and is subject to a number of risks, including many that are outside of management's control. See cautionary Safe Harbor Statement below. |
(2) |
The Company uses an adjusted effective tax rate in calculating Adjusted EPS. The adjusted effective tax rate is calculated based on adjusted net income before tax. It also excludes the potential impact of changes to uncertain tax positions, valuation allowances, stock compensation accounting (ASU 2016-09) and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate provides better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the underlying ongoing operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. |
(3) |
Please refer to the tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. |
(4) |
Lower non-cash pension income and higher depreciation and amortization expense from elevated investments are expected to reduce adjusted EPS growth by approximately |
Conference Call and Webcast
The Company’s first quarter fiscal 2023 conference call and audio webcast will be held today,
About
UNFI is
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 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 the Company’s filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K for the year ended
Non-GAAP Financial Measures: To supplement the financial information presented on a
The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures and the calculation of net debt to Adjusted EBITDA leverage are presented in the tables appearing below. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting the non-GAAP financial measures Adjusted EBITDA and Adjusted EPS aids in making period-to-period comparisons, assessing the performance of our business and understanding the underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business or that are not meaningful indicators of actual and estimated operating performance. The inclusion of free cash flow assists investors in understanding the cash generating ability of the Company separate from cash generated by the sale of assets. Net debt to Adjusted EBITDA leverage ratio is a commonly used metric that assists investors in understanding and evaluating the Company’s capital structure and changes to its capital structure over time. The Company currently expects to continue to exclude the items listed above from non-GAAP financial measures. Management utilizes and plans to utilize these non-GAAP financial measures to compare the Company’s operating performance during the 2023 fiscal year to the comparable periods in the 2022 fiscal year and to internally prepared projections. These non-GAAP financial measures may differ from similarly titled measures of other companies.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except for per share data) |
||||||||
|
|
13-Week Period Ended |
||||||
|
|
|
|
|
||||
Net sales |
|
$ |
7,532 |
|
|
$ |
6,997 |
|
Cost of sales |
|
|
6,436 |
|
|
|
5,955 |
|
Gross profit |
|
|
1,096 |
|
|
|
1,042 |
|
Operating expenses |
|
|
1,000 |
|
|
|
932 |
|
Restructuring, acquisition and integration related expenses |
|
|
2 |
|
|
|
3 |
|
Gain on sale of assets |
|
|
(5 |
) |
|
|
— |
|
Operating income |
|
|
99 |
|
|
|
107 |
|
Net periodic benefit income, excluding service cost |
|
|
(7 |
) |
|
|
(10 |
) |
Interest expense, net |
|
|
35 |
|
|
|
40 |
|
Other (income) expense, net |
|
|
(1 |
) |
|
|
1 |
|
Income before income taxes |
|
|
72 |
|
|
|
76 |
|
Provision (benefit) for income taxes |
|
|
5 |
|
|
|
(1 |
) |
Net income including noncontrolling interests |
|
|
67 |
|
|
|
77 |
|
Less net income attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
(1 |
) |
Net income attributable to |
|
$ |
66 |
|
|
$ |
76 |
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
1.12 |
|
|
$ |
1.34 |
|
Diluted earnings per share |
|
$ |
1.07 |
|
|
$ |
1.25 |
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
||||
Basic |
|
|
58.8 |
|
|
|
57.0 |
|
Diluted |
|
|
61.6 |
|
|
|
61.1 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except for par values) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
39 |
|
|
$ |
44 |
|
Accounts receivable, net |
|
|
1,351 |
|
|
|
1,214 |
|
Inventories, net |
|
|
2,756 |
|
|
|
2,355 |
|
Prepaid expenses and other current assets |
|
|
214 |
|
|
|
184 |
|
Total current assets |
|
|
4,360 |
|
|
|
3,797 |
|
Property and equipment, net |
|
|
1,684 |
|
|
|
1,690 |
|
Operating lease assets |
|
|
1,187 |
|
|
|
1,176 |
|
|
|
|
20 |
|
|
|
20 |
|
Intangible assets, net |
|
|
801 |
|
|
|
819 |
|
Other long-term assets |
|
|
147 |
|
|
|
126 |
|
Total assets |
|
$ |
8,199 |
|
|
$ |
7,628 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Accounts payable |
|
$ |
1,924 |
|
|
$ |
1,742 |
|
Accrued expenses and other current liabilities |
|
|
258 |
|
|
|
260 |
|
Accrued compensation and benefits |
|
|
199 |
|
|
|
232 |
|
Current portion of operating lease liabilities |
|
|
157 |
|
|
|
156 |
|
Current portion of long-term debt and finance lease liabilities |
|
|
27 |
|
|
|
27 |
|
Total current liabilities |
|
|
2,565 |
|
|
|
2,417 |
|
Long-term debt |
|
|
2,485 |
|
|
|
2,109 |
|
Long-term operating lease liabilities |
|
|
1,078 |
|
|
|
1,067 |
|
Long-term finance lease liabilities |
|
|
20 |
|
|
|
23 |
|
Pension and other postretirement benefit obligations |
|
|
18 |
|
|
|
18 |
|
Deferred income taxes |
|
|
17 |
|
|
|
8 |
|
Other long-term liabilities |
|
|
181 |
|
|
|
194 |
|
Total liabilities |
|
|
6,364 |
|
|
|
5,836 |
|
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
583 |
|
|
|
608 |
|
|
|
|
(36 |
) |
|
|
(24 |
) |
Accumulated other comprehensive loss |
|
|
(5 |
) |
|
|
(20 |
) |
Retained earnings |
|
|
1,292 |
|
|
|
1,226 |
|
|
|
|
1,835 |
|
|
|
1,791 |
|
Noncontrolling interests |
|
|
— |
|
|
|
1 |
|
Total stockholders’ equity |
|
|
1,835 |
|
|
|
1,792 |
|
Total liabilities and stockholders’ equity |
|
$ |
8,199 |
|
|
$ |
7,628 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
|
|
13-Week Period Ended |
||||||
(in millions) |
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income including noncontrolling interests |
|
$ |
67 |
|
|
$ |
77 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
74 |
|
|
|
69 |
|
Share-based compensation |
|
|
12 |
|
|
|
11 |
|
Gain on sale of assets |
|
|
(5 |
) |
|
|
— |
|
Closed property and other restructuring charges |
|
|
— |
|
|
|
1 |
|
Net pension and other postretirement benefit income |
|
|
(7 |
) |
|
|
(10 |
) |
Deferred income tax expense |
|
|
2 |
|
|
|
— |
|
LIFO charge |
|
|
21 |
|
|
|
11 |
|
Provision for losses on receivables |
|
|
— |
|
|
|
1 |
|
Non-cash interest expense and other adjustments |
|
|
3 |
|
|
|
5 |
|
Changes in operating assets and liabilities |
|
|
(429 |
) |
|
|
(246 |
) |
Net cash used in operating activities |
|
|
(262 |
) |
|
|
(81 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Payments for capital expenditures |
|
|
(67 |
) |
|
|
(56 |
) |
Proceeds from dispositions of assets |
|
|
7 |
|
|
|
1 |
|
Payments for investments |
|
|
(1 |
) |
|
|
(26 |
) |
Net cash used in investing activities |
|
|
(61 |
) |
|
|
(81 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from borrowings under revolving credit line |
|
|
1,206 |
|
|
|
1,238 |
|
Repayments of borrowings under revolving credit line |
|
|
(829 |
) |
|
|
(1,028 |
) |
Repayments of long-term debt and finance leases |
|
|
(6 |
) |
|
|
(13 |
) |
Repurchases of common stock |
|
|
(12 |
) |
|
|
— |
|
Proceeds from the issuance of common stock and exercise of stock options |
|
|
— |
|
|
|
5 |
|
Payments of employee restricted stock tax withholdings |
|
|
(37 |
) |
|
|
(33 |
) |
Distributions to noncontrolling interests |
|
|
(2 |
) |
|
|
(2 |
) |
Repayments of other loans |
|
|
(1 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
319 |
|
|
|
167 |
|
EFFECT OF EXCHANGE RATE ON CASH |
|
|
(1 |
) |
|
|
— |
|
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
(5 |
) |
|
|
5 |
|
Cash and cash equivalents, at beginning of period |
|
|
44 |
|
|
|
41 |
|
Cash and cash equivalents, at end of period |
|
$ |
39 |
|
|
$ |
46 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
||||
Cash paid for interest |
|
$ |
40 |
|
|
$ |
46 |
|
Cash (refunds) for federal, state, and foreign income taxes, net |
|
$ |
(1 |
) |
|
$ |
(1 |
) |
Leased assets obtained in exchange for new operating lease liabilities |
|
$ |
57 |
|
|
$ |
71 |
|
Additions of property and equipment included in Accounts payable |
|
$ |
26 |
|
|
$ |
17 |
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (unaudited)
Reconciliation of Net income including noncontrolling interests to Adjusted EBITDA (unaudited) |
||||||||
|
|
13-Week Period Ended |
||||||
(in millions) |
|
|
|
|
||||
Net income including noncontrolling interests |
|
$ |
67 |
|
|
$ |
77 |
|
Adjustments to net income including noncontrolling interests: |
|
|
|
|
||||
Less net income attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
(1 |
) |
Net periodic benefit income, excluding service cost |
|
|
(7 |
) |
|
|
(10 |
) |
Interest expense, net |
|
|
35 |
|
|
|
40 |
|
Other (income) expense, net |
|
|
(1 |
) |
|
|
1 |
|
Provision (benefit) for income taxes |
|
|
5 |
|
|
|
(1 |
) |
Depreciation and amortization |
|
|
74 |
|
|
|
69 |
|
Share-based compensation |
|
|
12 |
|
|
|
11 |
|
LIFO charge(1) |
|
|
21 |
|
|
|
11 |
|
Restructuring, acquisition and integration related expenses |
|
|
2 |
|
|
|
3 |
|
Gain on sale of assets |
|
|
(5 |
) |
|
|
— |
|
Other(2) |
|
|
5 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
207 |
|
|
$ |
200 |
|
(1) |
During fiscal 2022, the Company revised its definition of Adjusted EBITDA to exclude the impact of the non-cash LIFO charge or benefit. The following illustrates the impact of the revised definition on previously reported periods to show the effect of this change |
|
13-Week Period Ended |
|||
(in millions) |
|
|||
Adjusted EBITDA (previously reported definition) |
$ |
189 |
||
LIFO charge |
|
11 |
||
Adjusted EBITDA (current definition) |
$ |
200 |
(2) |
Includes costs for certain technology-related initiatives. |
Reconciliation of Net income attributable to |
|||||||
|
13-Week Period Ended |
||||||
(in millions, except per share amounts) |
|
|
|
||||
Net income attributable to |
$ |
66 |
|
|
$ |
76 |
|
Restructuring, acquisition and integration related expenses |
|
2 |
|
|
|
3 |
|
Gain on sale of assets |
|
(5 |
) |
|
|
— |
|
LIFO charge |
|
21 |
|
|
|
11 |
|
Surplus property depreciation and interest expense(1) |
|
1 |
|
|
|
1 |
|
Other(2) |
|
5 |
|
|
|
— |
|
Tax impact of adjustments and adjusted effective tax rate(3) |
|
(20 |
) |
|
|
(24 |
) |
Adjusted net income |
$ |
70 |
|
|
$ |
67 |
|
|
|
|
|
||||
Diluted weighted average shares outstanding |
|
61.6 |
|
|
|
61.1 |
|
Adjusted EPS(4)(5) |
$ |
1.13 |
|
|
$ |
1.10 |
|
(1) | Reflects surplus, non-operating property depreciation and interest expense. |
(2) |
Includes costs for certain technology-related initiatives. |
(3) |
Represents the tax effect of the pre-tax adjustments using an adjusted effective tax rate. The adjusted effective tax rate is calculated based on adjusted net income before tax, and its impact reflects the exclusion of changes to uncertain tax positions, valuation allowances, tax impacts related to the exercise of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate will provide better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the true operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. |
(4) |
Earnings per share amounts are calculated using actual unrounded figures. |
(5) |
During the third quarter of fiscal 2022, the Company revised its definition of Adjusted EPS to exclude the impact of the non-cash LIFO charge. The following illustrates the impact of the revised definition on previously reported periods to show the effect of this change: |
13-Week Period Ended |
|||||
|
|
||||
Adjusted EPS (previously reported definition) |
$ |
0.97 |
|
||
LIFO charge |
|
0.18 |
|
||
Tax impact of adjustment |
|
(0.05 |
) |
||
Adjusted EPS (current definition) |
$ |
1.10 |
|
Calculation of net debt to Adjusted EBITDA leverage ratio (unaudited) |
|||
(in millions, except ratios) |
|
||
Current portion of long-term debt and finance lease liabilities |
$ |
27 |
|
Long-term debt |
|
2,485 |
|
Long-term finance lease liabilities |
|
20 |
|
Less: Cash and cash equivalents |
|
(39 |
) |
Net carrying value of debt and finance lease liabilities |
|
2,493 |
|
Adjusted EBITDA(1) |
$ |
836 |
|
Adjusted EBITDA leverage ratio(2) |
3.0x |
|
(1) |
Adjusted EBITDA for purposes of this calculation reflects the summation of the trailing four quarters ended |
(2) |
During fiscal 2022, the Company revised its definition of Adjusted EBITDA, to exclude the impact of removing the non-cash LIFO charge. |
Reconciliation of trailing four quarters Net income including noncontrolling interests to Adjusted EBITDA (unaudited) |
||||
(in millions) |
|
52-Week Period Ended |
||
Net income including noncontrolling interests |
|
$ |
244 |
|
Adjustments to net income including noncontrolling interests: |
|
|
||
Less net income attributable to noncontrolling interests |
|
|
(6 |
) |
Net periodic benefit income, excluding service cost |
|
|
(37 |
) |
Interest expense, net |
|
|
150 |
|
Other (income) expense, net |
|
|
(4 |
) |
Provision for income taxes |
|
|
62 |
|
Depreciation and amortization |
|
|
290 |
|
Share-based compensation |
|
|
44 |
|
LIFO charge |
|
|
168 |
|
Restructuring, acquisition and integration related expenses |
|
|
20 |
|
Gain on sale of assets |
|
|
(92 |
) |
Multiemployer pension plan withdrawal charges |
|
|
(8 |
) |
Other |
|
|
5 |
|
Adjusted EBITDA(1) |
|
$ |
836 |
|
(1) |
Adjusted EBITDA for purposes of this calculation reflects the summation of the trailing four quarters ended |
Reconciliation of Net cash used in operating activities to Free cash flow (unaudited) |
|||||||
|
|
|
|
||||
|
13-Week Period Ended |
||||||
(in millions) |
|
|
|
||||
Net cash used in operating activities |
$ |
(262 |
) |
|
$ |
(81 |
) |
Payments for capital expenditures |
|
(67 |
) |
|
|
(56 |
) |
Free cash flow |
$ |
(329 |
) |
|
$ |
(137 |
) |
FISCAL 2023 GUIDANCE
Reconciliation of 2023 guidance for estimated EPS to estimated Adjusted EPS (unaudited) |
|||||||||
|
|
Fiscal Year Ending |
|||||||
|
|
|
|
Estimate |
|
|
|||
EPS |
|
$ |
3.95 |
|
|
|
$ |
4.25 |
|
LIFO charge |
|
|
|
1.20 |
|
|
|
||
Tax impact of adjustments and adjusted effective tax rate(1) |
|
|
|
(0.30 |
) |
|
|
||
Adjusted EPS |
|
$ |
4.85 |
|
|
|
$ |
5.15 |
(1) |
The estimated adjusted effective tax rate excludes the potential impact of changes in uncertain tax positions, tax impacts related to ASU 2016-09 regarding stock compensation and valuation allowances. Refer to the reconciliation for adjusted effective tax rate. |
Reconciliation of 2023 guidance for Net income attributable to |
|||||||||
|
|
Fiscal Year Ending |
|||||||
(in millions) |
|
|
|
Estimate |
|
|
|||
Net income attributable to |
|
$ |
247 |
|
|
|
$ |
266 |
|
Provision for income taxes |
|
|
86 |
|
|
|
|
97 |
|
LIFO charge |
|
|
|
75 |
|
|
|
||
Interest expense, net |
|
|
|
138 |
|
|
|
||
Depreciation and amortization |
|
|
|
287 |
|
|
|
||
Share-based compensation and other |
|
|
|
46 |
|
|
|
||
Net periodic benefit income, excluding service costs |
|
|
|
(29 |
) |
|
|
||
Adjusted EBITDA |
|
$ |
850 |
|
|
|
$ |
880 |
Reconciliation of estimated 2023 and actual 2022 U.S. GAAP effective tax rate to adjusted effective tax rate (unaudited) |
||||||
|
|
Estimated Fiscal 2023 |
|
Actual Fiscal 2022 |
||
|
|
23 |
% |
|
18 |
% |
Discrete quarterly recognition of GAAP items(1) |
|
3 |
% |
|
8 |
% |
Tax impact of other charges and adjustments(2) |
|
— |
% |
|
— |
% |
Changes in valuation allowances(3) |
|
— |
% |
|
— |
% |
Other(4) |
|
— |
% |
|
— |
% |
Adjusted effective tax rate(4) |
|
26 |
% |
|
26 |
% |
Note: As part of the year-end reconciliation, we update the reconciliation of the GAAP effective tax rate for actual results. |
|
(1) |
Reflects changes in tax laws excluding the CARES Act, uncertain tax positions, the tax impacts related to the exercise of share-based compensation awards and any prior-year deferred tax or payable adjustments. This includes prior-year |
(2) |
Reflects the tax impact of pre-tax adjustments that are excluded from pre-tax income when calculating adjusted EPS. |
(3) |
Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations. |
(4) |
The Company establishes an estimated adjusted effective tax rate at the beginning of the fiscal year based on the best available information. The Company re-evaluates its estimated adjusted effective tax rate as appropriate throughout the year and adjusts for any material changes. The actual adjusted effective tax rate at the end of the fiscal year is based on actual results and accordingly may differ from the estimated adjusted effective tax rate used during the year. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221207005121/en/
INVESTOR CONTACTS:
Vice President, Investor Relations
952-828-4144 sbloomquist@unfi.com
Senior Vice President, Investor Relations and Transformation Finance
401-213-2160 kristyn.farahmand@unfi.com
Source:
FAQ
What were the net sales for UNFI in Q1 FY23?
How did UNFI's net income change in Q1 FY23?
What is the EPS for UNFI in Q1 FY23?