NAPERVILLE, Ill., April 29 /PRNewswire-FirstCall/ -- OfficeMax®
Incorporated (NYSE: OMX) today announced the results for its fiscal
first quarter ended March 27, 2010.
Total sales were $1,917.3
million in the first quarter of 2010, an increase of 0.3%
from the first quarter of 2009. For the first quarter of
2010, OfficeMax reported net income available to OfficeMax common
shareholders of $24.8 million, or
$0.29 per diluted share.
Sam Duncan, Chairman and CEO of
OfficeMax, said, "We are pleased with the start to 2010 and the
solid performance our team delivered in the quarter. We
believe our results reflect some of the stabilization we are seeing
in economic trends, but primarily are indicative of the traction we
are gaining in our growth and profitability initiatives."
Summary Consolidated Results
|
|
(in millions, except per-share
amounts)
|
1Q
10
|
1Q
09
|
|
Sales
|
$1,917.3
|
$1,911.7
|
|
Sales growth (from prior year
period)
|
0.3%
|
|
|
Operating income
|
$49.4
|
$27.5
|
|
Adjusted operating income
|
$63.6
|
$37.4
|
|
Adjusted operating income
margin
|
3.3%
|
2.0%
|
|
Adjusted diluted income per common
share
|
$0.39
|
$0.23
|
|
Cash and cash equivalents
|
$539.7
|
$149.3
|
|
Available borrowing
capacity
|
$564.8
|
$485.6
|
|
|
|
|
|
|
Adjusted income and adjusted diluted income per share are
non-GAAP financial measures that exclude the effect of certain
charges described below and in the footnotes to the accompanying
financial statements. A reconciliation to the company's GAAP
financial results is included in this press release.
Results for the first quarter of 2010 and 2009 included certain
charges that are not considered indicative of core operating
activities. First quarter 2010 results included a
$0.8 million pre-tax charge recorded
in the Contract segment for severance related to reorganizations in
U.S. Contract operations and a $13.4
million pretax charge recorded in the Retail segment related
to store closures in the U.S. First quarter 2009 results
included a $9.9 million pre-tax
charge related to Retail store closures in the U.S. and
Mexico, and a pre-tax benefit of
$2.5 million recorded as other income
related to tax distributions from the company's investment in Boise
Cascade Holdings, L.L.C.
Excluding the items described above, adjusted operating income
in the first quarter of 2010 was $63.6
million, or 3.3% of sales, compared to adjusted operating
income of $37.4 million, or 2.0% of
sales in the first quarter of 2009. Adjusted net income
available to OfficeMax common shareholders in the first quarter of
2010 was $33.5 million, or
$0.39 per diluted share, compared to
$17.4 million, or $0.23 per diluted share, in the first quarter of
2009.
Contract Segment Results
|
|
(in millions)
|
1Q
10
|
1Q
09
|
|
Sales
|
$963.0
|
$927.6
|
|
Sales growth (from prior year
period)
|
3.8%
|
|
|
Gross profit margin
|
22.7%
|
21.0%
|
|
Segment income margin
|
3.5%
|
2.3%
|
|
|
|
|
|
|
OfficeMax Contract segment sales increased 3.8% (a decrease of
3.5% in local currency) compared to the prior year period to
$963.0 million in the first quarter
of 2010, reflecting a U.S. Contract operations sales decline of
3.9%, which was more than offset by an International Contract
operations sales increase of 23.8% in U.S. dollars (a sales
decrease of 2.6% in local currencies).
Contract segment gross profit margin increased to 22.7% in the
first quarter of 2010 from 21.0% in the first quarter of 2009,
reflecting improved gross profit margin at both the International
and U.S. businesses primarily as a result of OfficeMax's
profitability initiatives. Contract segment operating,
selling & administrative expense as a percentage of sales
increased to 19.2% in the first quarter of 2010 from 18.7% in the
first quarter of 2009, due to higher incentive compensation
expense, partially offset by reduced payroll expense.
Contract segment income was $33.8
million, or 3.5% of sales, in the first quarter of 2010
compared to $21.5 million, or 2.3% of
sales, in the first quarter of 2009.
Retail Segment Results
|
|
(in millions)
|
1Q
10
|
1Q
09
|
|
Sales
|
$954.3
|
$984.1
|
|
Same-store sales decline (from prior
year period)
|
-2.5%
|
|
|
Gross profit margin
|
30.1%
|
27.5%
|
|
Segment income margin
|
4.1%
|
2.6%
|
|
|
|
|
|
|
OfficeMax Retail segment sales decreased 3.0% to $954.3 million in the first quarter of 2010
compared to the first quarter of 2009, reflecting a same-store
sales decrease of 2.5% and fewer stores. Retail same-store
sales for the first quarter of 2010 declined primarily due to a
continued weak market environment; however, the Retail segment
same-store sales decrease improved from the 6.7% decrease in the
fourth quarter of 2009 reflecting favorable sales trends in the
U.S. and Mexico.
Retail segment gross profit margin increased to 30.1% in the
first quarter of 2010 from 27.5% in the first quarter of 2009,
primarily due to increased product margins as a result of
promotional discipline and higher private label sales. Retail
segment operating, selling & administrative expense as a
percentage of sales increased to 26.0% in the first quarter of 2010
compared to 24.9% in the first quarter of 2009 primarily due to
higher incentive compensation expense. Retail segment income
was $38.8 million, or 4.1% of sales,
in the first quarter of 2010 compared to $25.3 million, or 2.6% of sales, in the first
quarter of 2009.
OfficeMax ended the first quarter of 2010 with a total of 1,003
retail stores, consisting of 926 retail stores in the U.S. and 77
retail stores in Mexico.
During the first quarter of 2010, OfficeMax closed seven
retail stores in the U.S.
Corporate and Other Segment Results
The OfficeMax Corporate and Other segment includes support staff
services and certain other expenses that are not fully allocated to
the Retail and Contract segments. Corporate and Other segment
operating, selling & administrative expense was $9.0 million in the first quarter of 2010
compared to $9.4 million in the first
quarter of 2009.
Balance Sheet and Cash Flow
As of March 27, 2010, OfficeMax
had total debt of $296.4 million,
excluding $1,470.0 million of
non-recourse debt which relates to timber securitization notes that
have recourse limited to the timber installment notes receivable
and related guarantees. At the end of the first quarter 2010,
OfficeMax had $539.7 million in cash
and cash equivalents, and $564.8
million in available (unused) borrowing capacity under its
U.S., Canadian and new Australasian revolving credit facilities.
The company's unused borrowing capacity reflects an available
borrowing base of $625.4 million,
zero outstanding borrowings, and $60.6
million of standby letters of credit.
During the first three months of 2010, OfficeMax generated
$64.0 million of cash provided by
operations which reflected significant reductions in inventory
levels and good working capital management. OfficeMax
invested $9.2 million for capital
expenditures in the first quarter of 2010 compared to $10.9 million in the first quarter of 2009.
Outlook
Mr. Duncan added, "With our five-year strategic growth plan in
place, we are confident that we have the right strategy to
transform into an office effectiveness and efficiency solutions
company and to achieve our 2010 and long-term financial objectives.
Accordingly, our five-year growth plan has three key
elements: expanding our core business, pursuing opportunities in
adjacent markets and enhancing our infrastructure to support our
growth. Our cash flow management is allowing us to maintain a
strong financial position as we continue to invest in the business.
While we expect the road to recovery will not be smooth, we
are optimistic about our future."
To date in the second quarter, the company has experienced
domestic year-over-year sales declines which were unfavorable to
the first quarter 2010 year-over-year domestic sales decline.
Also, the company expects to continue facing some near-term
headwinds from challenging macroeconomic conditions, such as U.S.
unemployment trends, with these trends beginning to work in the
company's favor toward the latter part of the year.
Additionally, the company plans to invest in initiatives to
drive growth, and the successful execution of these initiatives is
expected to benefit operations and financial results in the
long-term.
Based on these assumptions, OfficeMax anticipates that for the
second quarter, total company sales will be slightly higher than
the prior year second quarter primarily due to the favorable impact
of foreign currency translation, and adjusted operating income
margin will be higher than the prior year second quarter, but less
than the first quarter 2010 year-over-year improvement. For
the full year 2010, OfficeMax anticipates that total company sales
will be slightly higher than in 2009 primarily due to the favorable
impact of foreign currency translation, and adjusted operating
income margin will be higher than 2009, but less than the first
quarter 2010 year-over-year improvement.
The company's outlook also includes the following assumptions
for the full year 2010:
- Pension expense of approximately $7
million and cash contributions to the frozen pension plans
of approximately $4 million
- Capital expenditures of approximately $90-110 million, primarily related to technology
and infrastructure investments and upgrades
- Depreciation & amortization of approximately $105-115 million
- Interest expense of approximately $74-78
million and interest income of approximately $41-43 million
- Effective tax rate slightly less than the company's marginal
tax rate of approximately 39 percent
- Cash flow from operations is expected to be positive, although
lower than it was for 2009
- Liquidity position remaining strong
- Net reduction in retail store count for the year with two
planned openings in Mexico and
approximately 15 store closings in the U.S.
Forward-Looking Statements
Certain statements made in this press release and other written
or oral statements made by or on behalf of the company constitute
"forward-looking statements" within the meaning of the federal
securities laws, including statements regarding the company's
future performance, as well as management's expectations, beliefs,
intentions, plans, estimates or projections relating to the future.
Management believes that these forward-looking statements are
reasonable. However, the company cannot guarantee that the
macroeconomy will perform within the assumptions underlying our
projected outlook, or that its actual results will be consistent
with the forward-looking statements and you should not place undue
reliance on them. These statements are based on current
expectations and speak only as of the date they are made. The
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of future events,
new information or otherwise. Important factors regarding the
company that may cause results to differ from expectations are
included in the company's Annual Report on Form 10-K for the year
ended December 26, 2009, under Item
1A "Risk Factors", and in the company's other filings with the
SEC.
Conference Call Information
OfficeMax will host a webcast and conference call with analysts
and investors to review its first quarter 2010 financial results
today at 10:00 a.m. Eastern Time
(9:00 a.m. Central Time). The
live audio webcast of the conference call can be accessed via the
Internet by visiting the OfficeMax website at
http://investor.officemax.com. The webcast will be archived
and available online for one year following the call and will be
posted on the "Presentations" page located within the "Investors"
section of the OfficeMax website.
About OfficeMax
OfficeMax Incorporated (NYSE: OMX) is a leader in both
business-to-business office products solutions and retail office
products. The OfficeMax mission is simple. We help our
customers do their best work. The company provides office
supplies and paper, in-store print and document services through
OfficeMax ImPress®, technology products and solutions, and
furniture to consumers and to large, medium and small businesses.
OfficeMax customers are served by over 30,000 associates
through direct sales, catalogs, e-commerce and more than 1,000
stores. To find the nearest OfficeMax, call 1-877-OFFICEMAX.
For more information, visit www.officemax.com.
Media
Contact
|
Investor
Contacts
|
|
|
Bill
Bonner
|
Mike
Steele
|
Tony
Giuliano
|
|
630 864
6066
|
630 864
6826
|
630 864
6820
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(unaudited)
|
|
(thousands)
|
|
|
|
|
|
|
|
March
27,
|
|
December
26,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
539,744
|
|
$
486,570
|
|
Receivables, net
|
540,935
|
|
539,350
|
|
Inventories
|
725,715
|
|
805,646
|
|
Deferred income taxes and
receivables
|
123,255
|
|
133,836
|
|
Other current assets
|
59,931
|
|
55,934
|
|
Total current
assets
|
1,989,580
|
|
2,021,336
|
|
|
|
|
|
|
Property and equipment:
|
|
|
|
|
Property and
equipment
|
1,318,665
|
|
1,316,855
|
|
Accumulated
depreciation
|
(910,840)
|
|
(894,707)
|
|
Property and equipment,
net
|
407,825
|
|
422,148
|
|
|
|
|
|
|
Intangible assets, net
|
83,293
|
|
83,806
|
|
Timber notes receivable
|
899,250
|
|
899,250
|
|
Deferred income taxes
|
309,008
|
|
300,900
|
|
Other non-current assets
|
342,768
|
|
342,091
|
|
|
|
|
|
|
Total
assets
|
$
4,031,724
|
|
$
4,069,531
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of
debt
|
$
22,640
|
|
$
22,430
|
|
Accounts payable
|
634,850
|
|
687,340
|
|
Income taxes payable
|
9,134
|
|
3,389
|
|
Accrued liabilities and
other
|
345,760
|
|
378,533
|
|
Total current
liabilities
|
1,012,384
|
|
1,091,692
|
|
|
|
|
|
|
Long-term debt, less current
portion
|
273,719
|
|
274,622
|
|
Non-recourse debt
|
1,470,000
|
|
1,470,000
|
|
|
|
|
|
|
Other long-term
obligations:
|
|
|
|
|
Compensation and
benefits
|
277,504
|
|
277,247
|
|
Other long-term
liabilities
|
434,336
|
|
424,715
|
|
Total other long-term
liabilities
|
711,840
|
|
701,962
|
|
|
|
|
|
|
Noncontrolling interest in joint
venture
|
39,880
|
|
28,059
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Preferred stock
|
34,589
|
|
36,479
|
|
Common stock
|
212,028
|
|
211,562
|
|
Additional paid-in
capital
|
982,789
|
|
989,912
|
|
Accumulated deficit
|
(578,105)
|
|
(602,242)
|
|
Accumulated other comprehensive
loss
|
(127,400)
|
|
(132,515)
|
|
Total shareholders'
equity
|
523,901
|
|
503,196
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
4,031,724
|
|
$
4,069,531
|
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
(thousands, except
per-share amounts)
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
27,
|
|
March
28,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Sales
|
$ 1,917,254
|
|
$ 1,911,724
|
|
Cost of goods sold and occupancy
costs
|
1,411,788
|
|
1,446,162
|
|
Gross
profit
|
505,466
|
|
465,562
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Operating and selling
expenses
|
362,970
|
|
358,679
|
|
General and administrative
expenses
|
78,955
|
|
69,444
|
|
Other operating expenses
(a)
|
14,188
|
|
9,940
|
|
Total operating expenses
|
456,113
|
|
438,063
|
|
|
|
|
|
|
Operating
income
|
49,353
|
|
27,499
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense
|
(18,316)
|
|
(19,348)
|
|
Interest income
|
10,616
|
|
10,462
|
|
Other income, net (b)
|
51
|
|
2,627
|
|
|
(7,649)
|
|
(6,259)
|
|
|
|
|
|
|
Income before income
taxes
|
41,704
|
|
21,240
|
|
Income tax expense
|
(15,401)
|
|
(8,210)
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to OfficeMax
and noncontrolling interest
|
26,303
|
|
13,030
|
|
Joint venture results attributable to
noncontrolling interest
|
(855)
|
|
889
|
|
|
|
|
|
|
Net income attributable to
OfficeMax
|
25,448
|
|
13,919
|
|
|
|
|
|
|
Preferred dividends
|
(669)
|
|
(772)
|
|
|
|
|
|
|
Net income available to OfficeMax
common shareholders
|
$
24,779
|
|
$
13,147
|
|
|
|
|
|
|
Basic income per common
share
|
$
0.29
|
|
$
0.17
|
|
|
|
|
|
|
Diluted income per common
share
|
$
0.29
|
|
$
0.17
|
|
|
|
|
|
|
Weighted Average Shares
|
|
|
|
|
Basic
|
84,655
|
|
76,128
|
|
Diluted
|
85,847
|
|
77,141
|
|
(a) First quarter 2010 and 2009
include charges recorded in our Retail segment of $13.4 million and
$9.9 million, respectively, related to store closures in the U.S.
and Mexico (2009 only). The cumulative effect of these items
reduced net income by $8.2 million and $5.9 million, or $0.09 and
$0.08 per diluted share for 2010 and 2009, respectively. First
quarter of 2010 also includes a charge recorded in our Contract
segment of $0.8 million for severance related to reorganizations in
our U.S. Contract operations. The effect of this item
reduced net income by $0.5 million, or $0.01 per diluted
share.
(b) Other income, net includes income
for tax distributions related to our investment in Boise Cascade
Holdings, L.L.C. of $2.5 million in the first quarter of 2009. This
item increased net income by $1.6 million, or $0.02 per diluted
share in 2009.
|
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
(thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
27,
|
|
March
28,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Cash provided by
operations:
|
|
|
|
|
Net income attributable to OfficeMax
and noncontrolling interest
|
$
26,303
|
|
$
13,030
|
|
Items in net income not using
(providing) cash:
|
|
|
|
|
Depreciation and
amortization
|
26,415
|
|
29,867
|
|
Other
|
2,220
|
|
4,743
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
Receivables and
inventory
|
82,918
|
|
117,108
|
|
Accounts payable and accrued
liabilities
|
(86,455)
|
|
(161,948)
|
|
Income taxes and
other
|
12,627
|
|
288
|
|
Cash provided by
operations
|
64,028
|
|
3,088
|
|
|
|
|
|
|
Cash used for
investment:
|
|
|
|
|
Expenditures for property and
equipment
|
(9,245)
|
|
(10,871)
|
|
Proceeds from sale of
assets
|
415
|
|
348
|
|
Cash used for
investment
|
(8,830)
|
|
(10,523)
|
|
|
|
|
|
|
Cash used for
financing:
|
|
|
|
|
Cash dividends paid
|
(1,348)
|
|
(1,621)
|
|
Changes in debt, net
|
(836)
|
|
(9,788)
|
|
Other
|
(827)
|
|
(2,806)
|
|
Cash used for
financing
|
(3,011)
|
|
(14,215)
|
|
|
|
|
|
|
Effect of exchange rates on cash and
cash equivalents
|
987
|
|
126
|
|
Increase (decrease) in cash and cash
equivalents
|
53,174
|
|
(21,524)
|
|
Cash and cash equivalents at beginning
of period
|
486,570
|
|
170,779
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period
|
$
539,744
|
|
$
149,255
|
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
NON-GAAP
RECONCILIATION
|
|
(unaudited)
|
|
(millions, except
per-share amounts)
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
March 27,
2010
|
|
March 28,
2009
|
|
|
|
As
|
|
|
|
As
|
|
As
|
|
|
|
As
|
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
1,917.3
|
|
$
-
|
|
$
1,917.3
|
|
$
1,911.7
|
|
$
-
|
|
$
1,911.7
|
|
Cost of goods sold and occupancy
costs
|
|
1,411.8
|
|
-
|
|
1,411.8
|
|
1,446.2
|
|
-
|
|
1,446.2
|
|
Gross
profit
|
|
505.5
|
|
-
|
|
505.5
|
|
465.5
|
|
-
|
|
465.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and selling
expenses
|
|
362.9
|
|
-
|
|
362.9
|
|
358.7
|
|
-
|
|
358.7
|
|
General and administrative
expenses
|
|
79.0
|
|
-
|
|
79.0
|
|
69.4
|
|
-
|
|
69.4
|
|
Other operating expenses
(a)
|
|
14.2
|
|
(14.2)
|
|
-
|
|
9.9
|
|
(9.9)
|
|
-
|
|
Total operating expenses
|
|
456.1
|
|
(14.2)
|
|
441.9
|
|
438.0
|
|
(9.9)
|
|
428.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
49.4
|
|
14.2
|
|
63.6
|
|
27.5
|
|
9.9
|
|
37.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(18.3)
|
|
-
|
|
(18.3)
|
|
(19.4)
|
|
-
|
|
(19.4)
|
|
Interest income
|
|
10.6
|
|
-
|
|
10.6
|
|
10.5
|
|
-
|
|
10.5
|
|
Other income, net (b)
|
|
-
|
|
-
|
|
-
|
|
2.6
|
|
(2.5)
|
|
0.1
|
|
|
|
(7.7)
|
|
-
|
|
(7.7)
|
|
(6.3)
|
|
(2.5)
|
|
(8.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
41.7
|
|
14.2
|
|
55.9
|
|
21.2
|
|
7.4
|
|
28.6
|
|
Income tax expense
|
|
(15.4)
|
|
(5.5)
|
|
(20.9)
|
|
(8.2)
|
|
(2.8)
|
|
(11.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to OfficeMax
and noncontrolling interest
|
|
26.3
|
|
8.7
|
|
35.0
|
|
13.0
|
|
4.6
|
|
17.6
|
|
Joint venture results attributable to
noncontrolling interest
|
|
(0.9)
|
|
-
|
|
(0.9)
|
|
0.9
|
|
(0.3)
|
|
0.6
|
|
Net income attributable to
OfficeMax
|
|
25.4
|
|
8.7
|
|
34.1
|
|
13.9
|
|
4.3
|
|
18.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends
|
|
(0.6)
|
|
-
|
|
(0.6)
|
|
(0.8)
|
|
-
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to OfficeMax
common shareholders
|
|
$
24.8
|
|
$
8.7
|
|
$
33.5
|
|
$
13.1
|
|
$
4.3
|
|
$
17.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per common
share
|
|
$
0.29
|
|
$
0.11
|
|
$
0.40
|
|
$
0.17
|
|
$
0.06
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common
share
|
|
$
0.29
|
|
$
0.10
|
|
$
0.39
|
|
$
0.17
|
|
$
0.06
|
|
$
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
84,655
|
|
|
|
84,655
|
|
76,128
|
|
|
|
76,128
|
|
Diluted
|
|
85,847
|
|
|
|
85,847
|
|
77,141
|
|
|
|
77,141
|
|
(a) First quarter 2010 and 2009
include charges recorded in our Retail segment of $13.4 million and
$9.9 million, respectively, related to store closures in the U.S.
and Mexico (2009 only). The cumulative effect of these items
reduced net income by $8.2 million and $5.9 million, or $0.09 and
$0.08 per diluted share for 2010 and 2009, respectively. First
quarter of 2010 also includes a charge recorded in our
Contract segment of $0.8 million for
severance related to reorganizations in our U.S. Contract
operations. The effect of this item reduced net income by $0.5
million, or $0.01 per diluted share.
(b) Other income, net includes income
for tax distributions related to our investment in Boise Cascade
Holdings, L.L.C. of $2.5 million in the first quarter of 2009. This
item increased net income by $1.6 million, or $0.02 per diluted
share in 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONTRACT SEGMENT
STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
(millions, except
per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
27,
|
|
March
28,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
Sales
|
$
963.0
|
|
$
927.6
|
|
|
|
|
|
|
|
|
Gross profit
|
218.4
|
22.7%
|
194.6
|
21.0%
|
|
Operating, selling and general and
administrative expenses
|
184.6
|
19.2%
|
173.1
|
18.7%
|
|
Segment income
|
$
33.8
|
3.5%
|
$
21.5
|
2.3%
|
|
|
|
|
|
|
|
Other operating expenses
|
0.8
|
0.1%
|
-
|
0.0%
|
|
Operating income
|
$
33.0
|
3.4%
|
$
21.5
|
2.3%
|
|
Note: Management evaluates the
segments' performances based on operating income (loss) after
eliminating the effect of certain operating matters such as
severances, facility closures, and assets impairments,
that are not indicative of our core operations ("segment
income".)
|
|
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
RETAIL SEGMENT
STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
(millions, except
per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
27,
|
|
March
28,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
Sales
|
$
954.3
|
|
$
984.1
|
|
|
|
|
|
|
|
|
Gross profit
|
287.1
|
30.1%
|
271.0
|
27.5%
|
|
Operating, selling and general and
administrative expenses
|
248.3
|
26.0%
|
245.7
|
24.9%
|
|
Segment income
|
$
38.8
|
4.1%
|
$
25.3
|
2.6%
|
|
|
|
|
|
|
|
Other operating expenses
|
13.4
|
1.4%
|
9.9
|
1.0%
|
|
Operating income
|
$
25.4
|
2.7%
|
$
15.4
|
1.6%
|
|
Note: Management evaluates the
segments' performances based on operating income (loss) after
eliminating the effect of certain operating matters such as
severances, facility closures, and assets impairments,
that are not indicative of our core operations ("segment
income".)
|
|
|
|
|
|
|
Reconciliation of non-GAAP Measures to GAAP Measures
In addition to assessing our operating performance as reported
under U.S. generally accepted accounting principles (GAAP), we also
evaluate our results of operations before non-operating legacy
items and operating items that are not indicative of our core
operating activities such as severances, facility closures, and
asset impairments. We believe our presentation of financial
measures before, or excluding, these items, which are non-GAAP
measures, enhances our investors' overall understanding of our
recurring operational performance and provides useful information
to both investors and management to evaluate the ongoing operations
and prospects of OfficeMax by providing better comparisons.
Whenever we use non-GAAP financial measures, we designate
these measures as "adjusted". We reconcile all non-GAAP
financial measures to the most closely applicable GAAP financial
measure. Investors are encouraged to review the related GAAP
financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial
measure. In the preceding tables, we reconcile our non-GAAP
financial measures to our reported GAAP financial results for the
first quarter of 2010 and 2009.
Although we believe the non-GAAP financial measures enhance an
investor's understanding of our performance, our management does
not itself, nor does it suggest that investors should, consider
such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. The non-GAAP financial measures we use may not be
consistent with the presentation of similar companies in our
industry. However, we present such non-GAAP financial
measures in reporting our financial results to provide investors
with an additional tool to evaluate our operating results in a
manner that focuses on what we believe to be our ongoing business
operations.
SOURCE OfficeMax Incorporated