United Natural Foods Regains Form in 2001 1Q, Loses Prez

United Natural Foods Regains Form in 2001 1Q, Loses Prez

DAYVILLE, Conn.--UnitedNatural Foods Inc. (NASDAQ:UNFI) reported much anticipated results for itsfiscal 2001 first quarter ended Oct. 31, highlighting increased revenues andearnings that hit previously announced targets. Net sales reached $244.1million, up almost 12 percent from the comparable sales in fiscal 2000, whilegross margin inched up about one percent of sales. Operating expenses fell toabout two percent of sales, compared to the same period last year. Net incomewas $3.3 million or $.18 per share, up from First Call estimate of $.17 pershare and a marked improvement over a net loss of $1.0 million or $.06 per shareposted in the comparable fiscal 2000 quarter.

The good quarter results were attributed to increased sales in UNFI'sexisting customer base, sales to new customers and increased market penetrationin the company's Eastern region. The quarter gains occurred despite rising fuelcosts and expenses related to a tight labor market. Looking forward, UNFImanagement expects 2001 second quarter earnings to rise 20 percent compared thisfirst quarter figure, and they held firm to their previous guidance for 2001fiscal year income, which they had said would be between $.95 and $1.00 pershare.

In the midst of the reporting of good news, UNFI announced that its presidentRichard Youngman had decided to retire from the company effective Dec. 6, 2000.The company, which relied heavily on Youngman to help restore historical profitmargins and sales growth in the Eastern region following the company's slide inJune 1999, reported only that Youngman wanted to pursue other interests.Youngman co-founded Stow Mills in 1978 and served as that company's presidentuntil it merged with UNFI in 1997. At that time, he became president of UNFI andworked to upright the company's Eastern region business. Steve Townsend,currently president of the Eastern Region and formerly the chief financialofficer, will succeed Youngman, who will remain active as a consultant to UNFI.

For more information, contact Thomas Simone, UNFI chairman, at 707-537-9872.