HL Financials for Nov. 28 – Dec. 4

UNFI See 1Q03 Net Sales Increase



United Natural Foods Inc. (NasdaqNM: UNFI) reported 1Q03 net income of $4 million or $.21/diluted share vs. a 1Q02 net income of $2.6 million or $.14/share. Both quarterly figures include special items, according to a Dec. 4 announcement. Without special items, UNFI's 1Q03 net income is nearly $5.4 million or $.28/diluted share vs. $4.9 million or $.26/share. Net income was $311 million for 1Q03 vs. 1Q02 net income of $280.3, a 10.9-percent increase.

Carole Buyers and Edward Aaron, analysts for RBC Capital Markets, state in a Dec. 4 report that the $.28/share earnings exceeded their target by one cent; they attribute the increase to lower interest expense. They also note that operating margins were 20 basis points below their forecast, due to lower-than-expected gross margins. The analysts rate UNFI stock at Outperform with Above Average
Risk.

Chai-Na-Ta Corp. Sees 3Q02 Net Loss



Ginseng supplier Chai-Na-Ta Corp. (OTC BB: CCCFF) reported a 3Q02 net loss of $249,000 or $.02/share vs. 3Q01 net loss of $217,000 or $.02/share. Revenues fell to $3.8 million vs. $4.4 million in 3Q01. For the first nine months of 2002, the company reported a $350,000 net loss or $.02/share vs. $312,000 or $.02/share for the same period in 2001. Chai-Na-Ta, based in Langley, British Columbia, says that a root rust outbreak, which is aesthetically unappealing but otherwise harmless, resulted in lower sales.