Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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Our common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “UNFI”.
On August 1, 2020 , we had 85 stockholders of record. The number of record holders is not representative of the number of beneficial holders of our common stock because depositories, brokers or other nominees hold many shares.
We have never declared or paid any cash dividends on our capital stock. We anticipate that all of our earnings in the foreseeable future will be retained to finance the continued growth and development of our business and repay our outstanding indebtedness, and we have no current intention to pay cash dividends. Our future dividend policy will depend on our earnings, capital requirements, financial condition and other factors considered relevant by our Board of Directors. Additionally, our ABL Credit Facility and Term Loan Facility contain terms that limit our ability to make any cash dividends unless certain conditions and financial tests are met.
Comparative Stock Performance
The following graph compares the yearly change in cumulative total stockholder returns on our common stock for the last five fiscal years with the cumulative return on the Standard & Poor’s (“S&P”) S&P SmallCap 600 Index and the S&P SmallCap 600 Food Distributors Index . The comparison assumes the investment of $100 on August 1, 2015 in our common stock and in each of the indices and, in each case, assumes reinvestment of all dividends. The stock price performance shown below is not necessarily indicative of future performance.
This performance graph shall not be deemed “soliciting material” or be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any of our filings under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
Among United Natural Foods, Inc., the S&P SmallCap 600, the S&P SmallCap 600 Food Distributors (1)
(1)
Our selected industry peer group reflects the S&P SmallCap 600 Food Distributors Index, which includes SpartanNash Company, The Andersons, Inc., The Chef’s Warehouse, Inc. and UNFI.
August 1, 2015
July 30, 2016
July 29, 2017
July 28, 2018
August 3, 2019
August 1, 2020
United Natural Foods, Inc
$
100.00
$
109.77
$
83.20
$
71.40
$
18.49
$
43.60
S&P SmallCap 600 Index
$
100.00
$
105.96
$
124.87
$
152.37
$
139.39
$
130.71
S&P SmallCap 600 Food Distributors Index
$
100.00
$
100.53
$
91.85
$
88.04
$
50.00
$
51.22
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ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth our selected historical financial data for the past five years derived from our Consolidated Financial Statements presented in this Annual Report and historical financial data derived from previously audited consolidated financial statements. The historical results are not necessarily indicative of results to be expected for any future period. The following selected consolidated financial data should be read in conjunction with and is qualified by reference to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 1A. Risk Factors and our Consolidated Financial Statements and notes thereto included elsewhere in this Annual Report. We have not declared or paid cash dividends in any of the following fiscal periods.
Year-over-year comparisons are significantly affected by material acquisitions. Our acquisition of Supervalu, which closed on October 22, 2018, and the acquisitions discussed in Part I. Item 1. of this Annual Report, significantly impact the comparability of reported results between periods. In addition, we have revised the following table for the immaterial error correction discussed in Note 20—Immaterial Correction to Prior Period Financial Statements and the presentation of Retail within continuing operations discussed in Note 1—Significant Accounting Policies , both included within Part II, Item 8 of this Annual Report on Form 10-K.
Fiscal Year
Consolidated Statements of Operations Data:
2020
(52 weeks)
2019
(53 weeks)
2018
(52 weeks)
2017
(52 weeks) (1)
2016
(52 weeks) (1)
(In thousands, except per share data)
Net sales
$
26,514,267
$
22,307,456
$
10,226,683
$
9,274,471
$
8,470,286
Cost of sales
22,639,475
19,098,850
8,706,669
7,847,983
7,195,112
Gross profit
3,874,792
3,208,606
1,520,014
1,426,488
1,275,174
Operating expenses
3,541,487
2,967,912
1,274,562
1,196,032
1,049,690
Goodwill and asset impairment charges
425,405
292,770
11,242
—
1,012
Restructuring, acquisition and integration related expenses
86,383
148,195
9,738
6,864
4,540
Loss (gain) on sale of assets
17,132
(499
)
—
—
—
Operating (loss) income
(195,615
)
(199,772
)
224,472
223,592
219,932
Other expense (income):
Net periodic benefit income, excluding service cost
(39,177
)
(35,041
)
—
—
—
Interest expense, net
191,607
180,789
16,025
16,754
15,144
Other, net
(3,591
)
(1,063
)
(1,545
)
(5,152
)
743
Total other expense, net
148,839
144,685
14,480
11,602
15,887
(Loss) income from continuing operations before income taxes
(344,454
)
(344,457
)
209,992
211,990
204,045
(Benefit) provision for income taxes
(90,445
)
(58,936
)
47,215
83,303
80,807
Net (loss) income from continuing operations
$
(254,009
)
$
(285,521
)
$
162,777
$
128,687
$
123,238
Net (loss) income from continuing operations per common share—Basic
$
(4.81
)
$
(5.57
)
$
3.22
$
2.54
$
2.45
Net (loss) income from continuing operations per common share—Diluted
$
(4.81
)
$
(5.57
)
$
3.20
$
2.53
$
2.45
As of the Fiscal Year Ended
Consolidated Balance Sheets Data:
August 1,
2020
August 3,
2019
July 28,
2018
July 29, 2017 (1)
July 30, 2016 (1)
Working capital
$
1,334,843
$
1,449,984
$
1,080,327
$
952,073
$
987,291
Total assets
$
7,586,972
$
7,174,335
$
2,957,583
$
2,882,567
$
2,849,627
Total long-term debt and finance leases, excluding current portion
$
2,570,297
$
2,927,258
$
340,323
$
366,089
$
580,872
Total stockholders’ equity
$
1,142,258
$
1,504,305
$
1,839,066
$
1,677,925
$
1,516,979
(1)
The correction of the immaterial error described in Note 20—Immaterial Correction to Prior Period Financial Statements resulted in changes to prior year amounts not included in the Consolidated Financial Statements, which included an increase in Cost of sales of $2.4 million and $4.2 million in fiscal 2017 and 2016, respectively, a decrease in the provision for income taxes of $1.0 million and $1.6 million in fiscal 2017 and 2016, and a decrease in Retained earnings of $4.0 million and $2.5 million for fiscal 2017 and 2016, respectively.
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