United Natural Foods, Inc. carries and distributes more than 40,000 products to more than 18,000 customers nationwide. The Company serves a wide variety of retail formats including conventional supermarket chains, natural product superstores, independent retail operators and the food service channel. United Natural Foods, Inc. was ranked by Forbes in 2005 as one of the "Best Managed Companies in America," ranked by Fortune in 2006 as one of its "Most Admired Companies," and ranked by Business Ethics as one of its "100 Best Corporate Citizens for 2006." 

United Natural Foods Reports Sales and Earnings for the Second Quarter of Fiscal 2008; Updates Fiscal 2008 Guidance
    - Quarterly net sales of $830.7 million increased 24.2% from the second  quarter of fiscal 2007.
    - Reports quarterly net income of $9.1 million, or $0.21 per diluted    share, including approximately $3.3 million in dilution from Millbrook.
DAYVILLE, Conn., Feb. 21 /PRNewswire-FirstCall/ -- United Natural Foods, Inc. (Nasdaq: UNFI) (the "Company") today reported net sales of $830.7 million for the second quarter of fiscal 2008, ended January 26, 2008, an increase of approximately $162.1 million, or 24.2%, from the $668.5 million of net sales recorded in the second quarter of fiscal 2007. Excluding the effect of the Company's November 2007 acquisition of Millbrook Distribution Services, Inc. ("Millbrook"), net sales increased by $89.8 million, or 13.4%, to $758.3 million.
The Company reported net income of $9.1 million, or $0.21 per diluted share, for the second quarter of fiscal 2008. The Company estimates that Millbrook, which the Company acquired in the second quarter of fiscal 2008, negatively impacted net income by approximately $3.3 million, or $0.08 per diluted share, for the second quarter of fiscal 2008. The Company previously announced that the Millbrook acquisition was expected to be dilutive to earnings by approximately $0.04 in the second quarter of fiscal 2008. The larger than expected dilution from the Millbrook acquisition was due to a combination of lower than projected improvements in gross margin from purchase discounts and forward buying opportunities, and delays in the original timeline to generate identified savings from synergies between Millbrook and the Company's operations. Excluding Millbrook, net income for the quarter ended January 26, 2008 would have been $12.4 million, or $0.29 per diluted share, compared to $10.9 million, or $0.25 per diluted share for the quarter ended January 27, 2007.
Operating expenses were $135.1 million, or 16.3% of net sales for the quarter ended January 26, 2008, compared to $102.6 million, or 15.4% of net sales, for the second quarter of fiscal 2007. For the quarter ended January 26, 2008, operating expenses were negatively impacted by $0.7 million in expenses related to start-up activities at the Company's Portland, Oregon area distribution facility, which commenced shipments in December 2007. In addition, the Company continues to experience start-up inefficiencies at its Sarasota, Florida and Portland, Oregon area facilities, which negatively impacted operating margins in the quarter. The Company typically achieves optimum efficiencies from new facilities within six to nine months following their opening.
During the second quarter of 2008, the Company reversed its January 2007 decision to sell the Company's second Auburn, California facility, which is discussed below. Following the decision, the building was reclassified on the Company's balance sheet from assets held for sale to property and equipment, and the Company recorded incremental depreciation of $0.2 million on this facility during the quarter. Operating expenses during the second quarter of fiscal 2007 were negatively impacted by approximately $2.2 million of losses related to the Company's two Auburn, California facilities. In January 2007, the Company incurred a loss of $1.5 million associated with the sale of one of the facilities. In addition, the Company recorded an impairment loss in accordance with Statement of Financial Accounting Standard ("SFAS") No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, of $0.8 million on its previously mentioned second Auburn, California facility, as a result of the Company's decision to sell the property. During the second quarter of fiscal 2007, the Company also incurred $0.4 million in fees related to the early termination of unused leased space at a facility in Minnesota and recorded a related write-off of $0.3 million in abandoned leasehold improvements.
The Company recorded share-based compensation expense of $1.4 million, in the second quarter of fiscal 2008, in accordance with SFAS No. 123R, Share- Based Payment, compared to $1.0 million of share-based compensation expense recorded for the second quarter of fiscal 2007.

United Natural Foods Announces Net Sales of $668.5 Million for the Second Quarter of Fiscal 2007
           Announces New 237,000 Square Foot Distribution Facility
                       to be Located in Ridgefield, WA
DAYVILLE, Conn., Feb. 20 /PRNewswire-FirstCall/ -- United Natural Foods, Inc. (Nasdaq: UNFI) (the "Company") today reported net sales for the second quarter of fiscal 2007, ended January 27, 2007, of $668.5 million, an increase of approximately $67.5 million, or 11.2%, from the $601.1 million recorded in the second quarter of fiscal 2006.
Operating expenses during the second quarter of fiscal 2007 were negatively impacted by approximately $2.2 million of losses related to the Company's two Auburn, California facilities. In January 2007, the Company incurred a loss of $1.5 million associated with the sale of one of the facilities. In addition, the Company recorded an impairment loss in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, of $0.8 million on its second Auburn, California facility, as a result of the Company's decision to sell the property. Accordingly, the assets associated with the second facility have been reclassified on the balance sheet from property and equipment to other current assets as of January 27, 2007. During the second quarter of fiscal 2007, the Company also incurred $0.4 million in fees related to the early termination of unused leased space at a facility in Minnesota, and recorded a related write-off of $0.3 million in abandoned leasehold improvements.
In the second quarter of fiscal 2007, the Company recorded share-based compensation expense of $1.0 million in accordance with Statement of Financial Accounting Standard ("SFAS") No. 123R, Share-Based Payment, compared to $0.9 million of share-based compensation expense for the second quarter of fiscal 2006, ended January 28, 2006.
The Company reported net income of $10.9 million, or $0.25 per diluted share, for the second quarter of fiscal 2007. After adjusting for the impact of losses attributable to the two Auburn, California facilities and the early termination of the Minnesota facility and the related asset write-off described above, net income for the quarter would have been $12.7 million or $0.30 per diluted share. Net income for the second quarter of fiscal 2006, excluding special items, was $10.8 million, or $0.26 per diluted share. Net income for the second quarter of fiscal 2006, including special items, was $10.6 million, or $0.25 per diluted share.