LONDON, UK / ACCESSWIRE / October 9, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for United Natural Foods, Inc. (NASDAQ: UNFI), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=UNFI. The Company announced on October 06, 2017, that its Board of Directors authorized the initiation of a $200 million share repurchase program. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Reason for Share Repurchase
"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."
For its fourth quarter fiscal 2017 results announced on September 14, 2017, United Natural Foods' cash flow from operations was $117.7 million and capital expenditures were $16.1 million, resulting in free cash flow of $101.6 million compared to cash flow from operations of $91.0 million and capital expenditures were $12.3 million, resulting in free cash flow of $78.7 million for Q4 FY16.
United Natural Foods noted that 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 its common stock having an aggregate purchase price of $200 million.
The share repurchase happens when a company purchases and retires some of its outstanding shares. This can be a good scenario for shareholders, as after the share repurchase the existing shareholders own a bigger portion of the Company, and therefore a bigger portion of its cash flow and earnings.
Quarterly Results
For the fourth quarter ended July 29, 2017, United Natural Foods' net sales grew 5.7% to $2.34 billion from $2.21 billion in Q4 FY16. United Natural Foods' net sales totaled $9.27 billion for FY17, a 9.5% increase compared to net sales of 8.47 billion in FY16.
During Q4 FY17, United Natural Foods' net income jumped 12.1%, or $4.2 million, to $38.9 million, or $0.76 per diluted share, from $34.7 million, or $0.69 per diluted share, for Q4 FY16. United Natural Foods' adjusted earnings per diluted share for the reported quarter was $0.72 compared to $0.70 for the year-earlier same quarter.
For FY17, United Natural Foods' net income gained 3.5% to $130.2 million, or $2.56 per diluted share, from $125.8 million, or $2.50 per diluted share, for FY16. The Company's adjusted earnings per diluted share were $2.57 compared to $2.59 in the year-ago same period.
About United Natural Foods
United Natural Foods 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.
Last Close Stock Review
On Friday, October 06, 2017, the stock closed the trading session at $40.83, slightly up 0.77% from its previous closing price of $40.52. A total volume of 929.30 thousand shares have exchanged hands, which was higher than the 3-month average volume of 810.98 thousand shares. United Natural Foods' stock price rallied 13.13% in the last one month, 14.98% in the past three months, and 0.20% in the previous twelve months. The stock is trading at a PE ratio of 15.93 and currently has a market cap of $2.07 billion.
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