United Natural Foods, Inc. (NYSE: UNFI) began Wednesday up $1.17, or 17.3%, to $7.95, as the Providence, Rhode Island-based company reported financial results for the second quarter of fiscal 2020.
Net sales registered at$6.14 billion compared to $6.15 billion in last year's fiscal second quarter. Total outstanding net debt was reduced by $149 million compared to the first quarter of fiscal 2020
The gross margin rate increased compared to last year's fiscal second quarter. Second quarter GAAP and adjusted results include charges of $0.44 per diluted share associated with three customer bankruptcies.
Operating loss in Q2 was $5.1 million and included expense of $33.1 million associated with customer bankruptcies and $29.7 million of restructuring, acquisition and integration related expenses.
When excluding the restructuring, acquisition and integration expenses, operating income in the second quarter of fiscal 2020 was $24.6 million, or 0.40% of net sales.
Operating loss in the second quarter of fiscal 2019 was $408.1 million and included a goodwill impairment charge of $370.9 million, restructuring, acquisition, and integration related expenses of $47.1 million, and a fair value inventory adjustment charge associated with the purchase of SUPERVALU of $8.6 million.
Said CEO Steven Spinner, "Despite considerable industry headwinds, I'm encouraged by our underlying performance and the momentum that is building within our business.
"Prior to charges associated with the three customer bankruptcies that impacted the quarter, we grew Adjusted EBITDA by low double digits, and we remain optimistic as we move into the second half of our fiscal year and confident in UNFI's long-term growth prospects."
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