(Source: PRNewswire-FirstCall)DAYVILLE, Conn., June 2 /PRNewswire-FirstCall/ -- United Natural Foods, Inc. today reported net sales for the third quarter of fiscal 2009, ended May 2, 2009, of $889.5 million, an increase of approximately $2.6 million, or 0.3%, from net sales of $887.0 million recorded in the third quarter of fiscal 2008. Excluding the impact in both periods of the UNFI Specialty Distribution Services division ("Specialty"), which the Company acquired in the second quarter of fiscal 2008, net sales increased by approximately $26.5 million, or 3.3%, to $836.2 million.

"Our record earnings in the third quarter reflect our continued focus on cash flow, market share and the further expansion and integration of our specialty business. We continued to benefit from lower diesel fuel costs, while improved operational efficiencies and expense control by all of our associates resulted in earnings that represented a 30% increase over the third quarter of fiscal 2008," said Steven Spinner, President and Chief Executive Officer.

Net income was $16.8 million, or $0.39 per diluted share, for the third quarter of fiscal 2009 compared with net income for the third quarter of fiscal 2008 of $13.0 million, or $0.30 per diluted share.

Gross margin was 19.0% for the third quarter of fiscal 2009, which represents a 27 basis point improvement from gross margin of 18.7% for the third quarter of fiscal 2008, primarily due to higher gross margin within the Specialty division.

Operating expenses as a percentage of net sales decreased by 35 basis points during the third quarter of fiscal 2009 to 15.6% of net sales, or $138.3 million, from 15.9% of net sales, or $141.0 million, for the third quarter of fiscal 2008. Operating expenses were positively impacted by continued expense control programs across all of the Company's divisions, lower diesel fuel prices, and operational improvements in the Company's distribution centers.

"In April, we successfully completed the relocation and expansion of our specialty distribution facility from East Brunswick, New Jersey to our new 675,000 square foot facility in York, Pennsylvania," said Mr. Spinner. "With this move, we now have our first fully integrated facility, which allows us to offer our mid-Atlantic customers a full assortment of natural, organic and specialty foods from a single facility on a common system."

Updates to Fiscal 2009 Guidance

The Company is confirming net sales guidance for fiscal year 2009, ending August 1, 2009, to $3.45 billion to $3.50 billion, which represents a 2.5% to 4.0% increase in total net sales over fiscal 2008, or 4.5% to 6.0% after adjusting for the 53rd week in fiscal 2008.

In addition, the Company is raising its earnings per share guidance for fiscal 2009 to a range of $1.34 to $1.38 per diluted share. The Company had previously announced earnings per share guidance of $1.28 to $1.36 per diluted share. The Company's revised guidance reflects the impact of improved operating efficiencies and cost controls.

The Company is also lowering its anticipated fiscal 2009 capital expenditures guidance to a range of approximately $30 to $35 million. The Company had previously announced anticipated fiscal 2009 capital expenditures guidance of approximately $40 to $45 million.

The Company's guidance is based on a number of assumptions, many of which are outside the Company's control. If any of these assumptions vary, the Company's guidance may change. There can be no assurance that the Company will achieve these results.

Conference Call & Webcast

The Company's third quarter 2009 conference call and audio webcast will be held at 11:00 a.m. EDT on June 2, 2009. The audio webcast of the conference call will be available to the public, on a listen-only basis, via the Internet at http://www.fulldisclosure.com/ or at the Investors section of the Company's website at http://www.unfi.com/. The online archive of the webcast will be available on the Company's website for 30 days.

Non-GAAP Reconciliation

The following table details the non-GAAP measures for the third quarter of fiscal 2009 and 2008:

   Quarter Ended:                              May 2,     April 26,                                                2009        2008   (in thousands)    Net sales, excluding UNFI Specialty    Distribution Services:                    $836,243    $809,728    UNFI Specialty Distribution Services    net sales:                                  53,295      77,234    Net sales, including UNFI Specialty    Distribution Services:                    $889,538    $886,962    About United Natural Foods  

United Natural Foods, Inc. (http://www.unfi.com/) carries and distributes more than 60,000 products to more than 17,000 customers nationwide.