Net sales for fiscal 2009 were a record $3.45 billion, an increase of 4.7%, or $154.2 million, over the sales for fiscal 2008 adjusted for the $65.1 million in net sales for the extra week in the fourth quarter of fiscal 2008. Net sales increased 2.6%, or $89.0 million, over the $3.37 billion of net sales recorded in fiscal 2008. Gross profit margin was 19.1% for fiscal 2009, which represents a 29 basis point improvement from the gross profit margin of 18.8% for fiscal 2008.

"Fiscal 2009 was a strong year for UNFI. With marginal sales growth, our associates demonstrated their resolve in delivering significant increases in operating income and EPS," said Steven Spinner, President and Chief Executive Officer.

Fiscal year 2009 operating expenses were 15.9% of net sales, or $550.6 million, an increase of $9.1 million, or 1.7%, over operating expenses of $541.4 million, or 16.1% of net sales, for fiscal 2008.

"During the year, we also increased the focus on our balance sheet. We created $76.0 million in free cash flow and reduced our debt by $92.7 million. In addition, we formally launched our 3-year strategy to grow our market share, expand our commitment to operational excellence, operate as one company with regional differences and continue our culture of sustainability," added Mr. Spinner.

Fiscal 2009 Q4 Results

Net income was $15.5 million, or $0.36 per diluted share, for the fourth quarter of fiscal 2009 compared with net income for the fourth quarter of fiscal 2008 of $12.8 million, or $0.30 per diluted share.

Net sales for the fourth quarter of fiscal 2009, ended August 1, 2009, were $853.5 million, an increase of approximately $6.8 million, or 0.8%, from net sales recorded in the fourth quarter of fiscal 2008 after adjusting for the extra week in the fourth quarter of fiscal 2008. Net sales for the fourth quarter of fiscal 2009 decreased 6.4%, or $58.4 million, from net sales of $911.9 million, including the extra week, recorded in the fourth quarter of fiscal 2008.

Gross profit margin was 19.0% for the fourth quarter of fiscal 2009, which represents a 52 basis point decline from gross profit margin of 19.5% for the fourth quarter of fiscal 2008, primarily due to significantly lower revenues from fuel surcharges in fiscal 2009 due to lower diesel fuel prices.

Operating expenses as a percentage of net sales decreased by 125 basis points during the fourth quarter of fiscal 2009 to 15.6% of net sales, or $133.5 million, from 16.9% of net sales, or $154.0 million, for the fourth 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.

Introduction of Fiscal 2010 Guidance

The Company also has provided its financial outlook for fiscal 2010, ending July 31, 2010.

For fiscal 2010, the Company expects earnings per diluted share in the range of approximately $1.48 to $1.58 per share, an increase of approximately 7.5% to 14.8% over fiscal 2009.

Capital expenditures are expected to be in the range of approximately 1% of revenues, or approximately $35 million to $39 million during fiscal 2010. Costs associated with an expected new facility in Texas are included in the Company's 2010 capital expenditures guidance. The Company expects to complete a new broadline distribution facility in Texas in the fourth quarter of fiscal 2010, with operations commencing in fiscal 2011.

The Company's guidance is based on a number of assumptions, which are subject to change and 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 fourth quarter 2009 conference call and audio webcast will be held at 10:00 a.m. EDT on September 9, 2009. The audio webcast of the conference call will be available to the public, on a listen-only basis, via the Internet at www.fulldisclosure.com or at the Investors section of the Company's website at www.unfi.com. The online archive of the webcast will be available on the Company's website for 30 days.