Market Overview

United Natural Foods, Inc. Authorizes $200 Million Share Repurchase Program


United Natural Foods, Inc. (NASDAQ:UNFI) (the "Company") today
announced that its Board of Directors authorized the initiation of a
$200 million share repurchase program.

"Given our strong free cash flow performance and expectations for
continued strength, we are pleased to announce this vehicle for
returning value to our shareholders," said Mike Zechmeister, UNFI's
Chief Financial Officer. "Our solid balance sheet provides us with the
option to repurchase shares, while executing on our growth strategies
and maintaining a conservative leverage profile."

Repurchases of the Company's outstanding common stock will be made in
accordance with applicable securities laws and may be made at
management's discretion from time to time in the open market, through
privately negotiated transactions or otherwise, including pursuant to
Rule 10b5-1 trading plans. The Company intends to fund the program with
a combination of cash on hand, cash generated from operations and
borrowings under the Company's credit facility. The Company had
approximately 50.6 million shares of common stock outstanding as of
September 14, 2017.

The share repurchase program is scheduled to expire upon the Company's
repurchase of shares of the Company's common stock having an aggregate
purchase price of $200 million. The share repurchase program may be
amended, suspended or discontinued at any time at the Company's
discretion and does not commit the Company to repurchase shares of its
common stock. The actual timing, number and value of the shares to be
purchased under the program will be determined by the Company at its
discretion and will depend on a number of factors, including the
performance of the Company's stock price, general market and other
conditions, applicable legal requirements, and compliance with the terms
of the Company's outstanding indebtedness.

About United Natural Foods

United Natural Foods, Inc. is celebrating its 40-year anniversary of
delivering healthier food options to more people. The Company carries
and distributes more than 110,000 products to more than 43,000 customer
locations throughout the United States and Canada. United Natural Foods
serves a wide variety of sales channels including conventional
supermarket chains, natural product superstores, independent retailers,
eCommerce and food service. For more information on United Natural
Foods, Inc., visit the Company's website at

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 filed with the Securities and Exchange Commission (the "SEC") on
September 26, 2017, and other filings the Company makes with the SEC,
and include, but are not limited to, the ability of the Company to
retain customers of Haddon House Food Products, Inc. ("Haddon"), Nor-Cal
Produce, Inc. ("Nor-Cal"), Global Organic/Specialty Source, Inc.
("Global Organic") and Gourmet Guru, Inc.("Gourmet Guru") and their
affiliated entities that we purchased on terms similar to those in place
prior to the Company's acquisition of these businesses; the Company's
dependence on principal customers; the Company's sensitivity to general
economic conditions, including the current economic environment; changes
in disposable income levels and consumer spending trends; the Company's
ability to reduce its expenses in amounts sufficient to offset its
increased focus on sales to conventional supermarkets and the resulting
lower gross margins on those sales; the Company's reliance on the
continued growth in sales of natural and organic foods and non-food
products in comparison to conventional products; increased competition
in the Company's industry as a result of increased distribution of
natural, organic and specialty products by conventional grocery
distributors and direct distribution of those products by large
retailers and online distributors; the Company's ability to timely and
successfully deploy its warehouse management system throughout its
distribution centers and its transportation management system across the
Company; the addition or loss of significant customers or material
changes to the Company's relationships with these customers; volatility
in fuel costs; volatility in foreign exchange rates; the Company's
sensitivity to inflationary and deflationary pressures; the relatively
low margins and economic sensitivity of the Company's business; the
potential for disruptions in the Company's supply chain by circumstances
beyond its control; the risk of interruption of supplies due to lack of
long-term contracts, severe weather, work stoppages or otherwise;
consumer demand for natural and organic products outpacing suppliers'
ability to produce those products; moderated supplier promotional
activity, including decreased forward buying opportunities;
union-organizing activities that could cause labor relations
difficulties and increased costs; the ability to identify and
successfully complete acquisitions of other natural, organic and
specialty food and non-food products distributors; management's
allocation of capital and the timing of capital expenditures; the
Company's ability to successfully integrate and deploy its operational
initiatives to achieve synergies from the acquisitions of Global
Organic, Nor-Cal, Haddon House, and Gourmet Guru; the Company's ability
to realize the anticipated benefit from its restructuring program in
conjunction with various cost saving and efficiency initiatives,
including acquisition integration, severance and transition related
costs, as well as the anticipated opening of the Company's shared
services center, all within the cost estimates and timing currently
contemplated; and the potential for business disruptions in connection
with the anticipated opening of the Company's shared services center.
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 report until the effective date of its future reports
required by applicable laws.

View Comments and Join the Discussion!