DEERFIELD, Ill., April 25, 2018 /PRNewswire/ -- Essendant
Inc. (NASDAQ: ESND), a leading national distributor of workplace
items, today announced financial results for the first quarter
ended March 31, 2018 as follows:
First Quarter 2018 Summary
- Net sales declined 2.3% to $1.2
billion, compared to $1.3
billion in the prior year quarter.
- GAAP loss per share in the quarter was $(1.40) compared to $(5.15) in the prior year quarter. GAAP net loss
was $(51.4) million in the quarter,
including restructuring actions of $(44.0)
million, after-tax.
- Adjusted diluted loss per share(1) in the quarter
was $(0.12), compared to adjusted
diluted earnings per share of $0.25
in the prior year quarter. Adjusted net loss (1) was
$(4.3) million in the quarter
compared to adjusted net income of $9.2
million in the first quarter of 2017.
- Free cash flow(1) was $(29.2)
million in the quarter as compared to free cash flow of
$44.7 million in the first quarter of
2017.
"The first quarter's results reflect the anticipated year over
year sales declines in our national reseller channel. Our cost
improvement efforts will take time to scale through 2018 and are
inclusive of the restructuring program we announced last quarter.
We are confident we will deliver more than half of our expected
cost savings in 2018, building to a run rate of more than
$50 million by 2020. We expect
stronger earnings performance in the second half as we fully
execute against the strategic drivers we've outlined," said
Ric Phillips, President and Chief
Executive Officer of Essendant.
"Our progress is on track with our expectations for the three
strategic drivers: 1) improving efficiency across the distribution
network and reducing the cost base, 2) accelerating sales
performance in key customer channels and 3) advancing supplier
partnerships that leverage our network and capabilities. We're
excited to accelerate our strategic drivers with the announced
agreement to combine with S.P. Richards, which will form a
stronger, more competitive national business products distributor.
We are focused on significantly improving the value of our business
for our shareholders, as we help our customers succeed in the face
of a rapidly evolving market."
S.P. Richards Transaction
On April 12, 2018, the Company announced an
agreement to combine with Genuine Parts Company's S.P. Richards
business. Bringing together leadership and operational
expertise from Essendant and S.P. Richards and combining the best
elements of each business' operations will create an even stronger
company with the ability to harness each organization's unique
strengths and capitalize on opportunities to create value. In
addition to creating a platform with greater scale and the enhanced
ability to serve customers, the combination is expected to unlock
more than $75 million in annual
run-rate cost synergies and more than $100
million in working capital improvements, with 90% of the
cost synergies expected to be realized within two years
post-closing.
Upon consummation of the transaction, Genuine Parts Company's
shareholders will receive shares that represent approximately 51%
of the outstanding shares of Essendant common stock, with existing
shareholders continuing to hold the remaining approximately 49% of
the shares. The transaction is expected to be tax free to the
companies' respective shareholders.
The transaction is subject to certain regulatory approvals and
other customary closing conditions, and is expected to close before
the end of 2018.
First Quarter Performance
- Net sales decreased 2.3% compared to the prior year quarter,
driven by reduced sales in traditional office products, JanSan,
furniture and technology categories, partly offset by growth in
cut-sheet paper, industrial supplies and automotive products
categories. Net sales by product category were:
-
- JanSan Products: decreased $(17.2)
million or 5.0% to $328.2
million.
- Technology Products: decreased $(2.5)
million or 0.8% to $314.7
million.
- Traditional Office Products: decreased $(19.1) million or 9.6% to $179.0 million.
- Industrial Supplies: increased $8.4
million or 5.7% to $155.6
million.
- Cut-sheet Paper Products: increased $13.4 million or 12.6% to $119.5 million.
- Automotive Products: increased $2.2
million or 2.8% to $81.0
million.
- Office Furniture: decreased $(13.3)
million or 18.4% to $58.8
million.
- Gross profit was $121.2 million,
a decline of $64.5 million versus the
prior year quarter primarily as a result of charges of $42.8 million related to product assortment
refinements, due to the Company's restructuring activities.
Adjusted gross profit was $164.0
million, a decline of $21.7
million from the prior year quarter, due to lower supplier
allowances driven by inventory purchase mix and timing and an
unfavorable product margin due to lower sales volumes.
- Operating expenses were $179.6
million, a decrease from $371.1
million in the prior year quarter due primarily to prior
year quarter goodwill impairment of $198.8
million and increased litigation accruals of $6.0 million creating a favorable comparison.
Adjusted operating expenses were $161.4
million, a decrease of $1.9
million from the prior year quarter due primarily to
decreases in employee and other fixed expenses.
- Income tax benefit was $15.2
million in the first quarter of 2018, compared to
$4.3 million in the prior year
quarter due to the prior year quarter goodwill impairment. Income
tax benefit on the adjusted net loss was $(1.3) million, compared to expense of
$5.7 million on the adjusted net
income in the prior year quarter.
- GAAP loss per share was $(1.40)
compared to $(5.15) in the prior year
quarter. Adjusted diluted loss per share(1) was
$(0.12) compared to adjusted diluted
earnings per share of $0.25 in the
quarter last year.
Outlook for 2018
The following outlook excludes the impacts of any new acquisitions
or unusual charges.
- Net sales for full year 2018 are expected to be down 3%
to down 5% from the prior year.
- Adjusted diluted earnings per share(1) is
expected to increase in the second half of 2018 compared to the
first half, as our cost improvement efforts will scale through the
year. This will enable us to return to positive adjusted diluted
earnings per share in the second half and for the full year.
- Free cash flow(1) generated by the business
for 2018, incorporating the costs and benefits of restructuring, is
expected to be in excess of $40
million for the full year, excluding transaction costs.
Conference Call
Essendant will hold a conference call
followed by a question and answer session on Thursday, April 26, 2018, at 7:30 a.m. CDT, to discuss first quarter 2018
results. Investors may participate in the earnings call by dialing
(877) 358-2531 in the U.S., (855) 669-9657 in Canada or (412) 902-6623 if international and
ask to be joined into the Essendant call. To listen to the webcast,
participants should visit the Investors section of the company's
website (investors.essendant.com), and click on the "Essendant Q1
2018 Earnings Call" button on the right side of the page, several
minutes before the event is broadcast. Interested parties can
access an archived version of the call, this news release, a
financial slide presentation and other information related to the
call, also located on the quarterly results section of Essendant's
investor website, within hours after the call ends.
Forward-Looking Statements
This news release contains
forward-looking statements, including statements regarding the
proposed business combination transaction between Essendant Inc.
("Essendant") and Genuine Parts Company ("GPC") in which GPC will
separate its Business Products Group and combine this business with
Essendant. From time to time, oral or written forward-looking
statements may also be included in other information released to
the public. These forward-looking statements are intended to
provide management's current expectations or plans for our future
operating and financial performance, based on assumptions currently
believed to be valid. Forward-looking statements often contain
words such as "expects," "anticipates," "estimates," "intends,"
"plans," "believes," "seeks," "will," "is likely to," "scheduled,"
"positioned to," "continue," "forecast," "predicting,"
"projection," "potential" or similar expressions. Forward-looking
statements may include references to goals, plans, strategies,
objectives, projected costs or savings, anticipated future
performance, results, events or transactions of Essendant or the
combined company following the proposed transaction, the
anticipated benefits of the proposed transaction, including
estimated synergies, the expected timing of completion of the
transaction and other statements that are not strictly historical
in nature. These forward-looking statements are based on
management's current expectations, forecasts and assumptions. This
means they involve a number of risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied here, including but not limited to: the ability of
Essendant and GPC to receive the required regulatory approvals for
the proposed transaction and approval of Essendant's stockholders
and to satisfy the other conditions to the closing of the
transaction on a timely basis or at all; the occurrence of events
that may give rise to a right of one or both of Essendant and GPC
to terminate the merger agreement; negative effects of the
announcement or the consummation of the transaction on the market
price of Essendant's common stock and/or on its business, financial
condition, results of operations and financial performance; risks
relating to the value of the Essendant shares to be issued in the
transaction, significant transaction costs and/or unknown
liabilities; the possibility that the anticipated benefits from the
proposed transaction cannot be realized in full or at all or may
take longer to realize than expected; risks associated with
contracts containing consent and/or other provisions that may be
triggered by the proposed transaction; risks associated with
transaction-related litigation; the possibility that costs or
difficulties related to the integration of the businesses will be
greater than expected; and the ability of the combined company to
retain and hire key personnel. There can be no assurance that the
proposed transaction or any other transaction described above will
in fact be consummated in the manner described or at all.
Stockholders, potential investors and other readers are urged to
consider these risks and uncertainties in evaluating
forward-looking statements and are cautioned not to place undue
reliance on the forward-looking statements. For additional
information on identifying factors that may cause actual results to
vary materially from those stated in forward-looking statements,
please see Essendant's and GPC's reports on Forms 10-K, 10-Q and
8-K filed with or furnished to the U.S. Securities and Exchange
Commission (the "SEC") and other written statements made by
Essendant and/or GPC from time to time. The forward-looking
information herein is given as of this date only, and neither
Essendant nor GPC undertakes any obligation to revise or update it.
It is not possible to anticipate or foresee all risks and
uncertainties, and investors should not consider any list of risks
and uncertainties to be exhaustive or complete.
Company Overview
Essendant Inc. is a leading national distributor of workplace
items, with 2017 net sales of $5.0
billion. The company provides access to a broad assortment
of over 170,000 items, including janitorial and breakroom supplies,
technology products, traditional office products, industrial
supplies, cut sheet paper products, automotive products and office
furniture. Essendant serves a diverse group of customers, including
independent resellers, national resellers and e-commerce
businesses. The Company's network of 66 distribution centers
enables the Company to ship most products overnight to more than
ninety percent of the U.S. For more information, visit
www.essendant.com.
Essendant common stock trades on the NASDAQ Global Select Market
under the symbol ESND.
(1)
|
This is non-GAAP
information. See the Reconciliation of Non-GAAP Financial Measures
section of this document for more information.
|
|
|
|
Note: All EPS numbers
in this document are diluted, except losses or unless stated
otherwise.
|
For Further Information Contact:
investorrelations@essendant.com
(847) 627-2900
Essendant Inc. and
Subsidiaries
|
Condensed
Consolidated Statements of Loss
|
(in thousands, except
per share data)
|
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2018
|
|
|
2017*
Revised
|
Net sales
|
$
|
1,240,155
|
|
|
$
|
1,269,383
|
Cost of goods
sold
|
|
1,118,979
|
|
|
|
1,083,715
|
Gross
profit
|
|
121,176
|
|
|
|
185,668
|
Operating
expenses:
|
|
|
|
|
|
|
Warehousing, marketing
and administrative expenses
|
|
165,544
|
|
|
|
172,298
|
Restructuring
charges
|
|
14,061
|
|
|
|
-
|
Impairment of
goodwill
|
|
-
|
|
|
|
198,828
|
Operating
loss
|
|
(58,429)
|
|
|
|
(185,458)
|
Interest and other
expense, net
|
|
8,222
|
|
|
|
7,463
|
Loss before income
taxes
|
|
(66,651)
|
|
|
|
(192,921)
|
Income tax
benefit
|
|
(15,211)
|
|
|
|
(4,328)
|
Net loss
|
$
|
(51,440)
|
|
|
$
|
(188,593)
|
Net loss per share -
basic:
|
$
|
(1.40)
|
|
|
$
|
(5.15)
|
Average number of common
shares outstanding - basic
|
|
36,865
|
|
|
|
36,644
|
Net loss per share -
diluted:
|
$
|
(1.40)
|
|
|
$
|
(5.15)
|
Average number of common
shares outstanding - diluted
|
|
36,865
|
|
|
|
36,644
|
Dividends declared
per share
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
* Revised in the
first quarter of 2018 for the impact of the adoption of a new
pension accounting pronouncement.
|
Essendant Inc. and
Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(in thousands, except
share data)
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
As of
March 31,
|
|
|
As of
December 31,
|
|
2018
|
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
30,967
|
|
|
$
|
28,802
|
Accounts receivable,
less allowance for doubtful accounts of $17,120 in 2018 and $17,102
in 2017
|
|
641,637
|
|
|
|
619,200
|
Inventories
|
|
704,313
|
|
|
|
821,683
|
Other current
assets
|
|
69,523
|
|
|
|
43,044
|
Total current
assets
|
|
1,446,440
|
|
|
|
1,512,729
|
Property, plant and
equipment, net
|
|
129,291
|
|
|
|
132,793
|
Intangible assets,
net
|
|
70,866
|
|
|
|
73,441
|
Goodwill
|
|
13,128
|
|
|
|
13,153
|
Other long-term
assets
|
|
52,334
|
|
|
|
42,134
|
Total
assets
|
$
|
1,712,059
|
|
|
$
|
1,774,250
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
469,981
|
|
|
$
|
500,883
|
Accrued
liabilities
|
|
185,577
|
|
|
|
189,916
|
Current maturities of
long-term debt
|
|
6,077
|
|
|
|
6,079
|
Total current
liabilities
|
|
661,635
|
|
|
|
696,878
|
Deferred income
taxes
|
|
1,172
|
|
|
|
1,192
|
Long-term
debt
|
|
530,350
|
|
|
|
492,044
|
Other long-term
liabilities
|
|
77,551
|
|
|
|
89,222
|
Total
liabilities
|
|
1,270,708
|
|
|
|
1,279,336
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common stock, $0.10
par value; authorized - 100,000,000 shares, issued - 74,435,628
shares in 2018 and 2017
|
|
7,444
|
|
|
|
7,444
|
Additional paid-in
capital
|
|
414,055
|
|
|
|
412,987
|
Treasury stock, at
cost – 36,775,019 shares in 2018 and 36,811,366 shares in
2017
|
|
(1,092,979)
|
|
|
|
(1,093,813)
|
Retained
earnings
|
|
1,162,237
|
|
|
|
1,219,309
|
Accumulated other
comprehensive loss
|
|
(49,406)
|
|
|
|
(51,013)
|
Total stockholders'
equity
|
|
441,351
|
|
|
|
494,914
|
Total liabilities and
stockholders' equity
|
$
|
1,712,059
|
|
|
$
|
1,774,250
|
Essendant Inc. and
Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
|
|
For the Three
Months Ended
|
|
March 31,
|
|
2018
|
|
|
2017
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
$
|
(51,440)
|
|
|
$
|
(188,593)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,798
|
|
|
|
10,965
|
Share-based
compensation
|
|
2,030
|
|
|
|
2,468
|
Gain on the
disposition of property, plant and equipment
|
|
(234)
|
|
|
|
(319)
|
Amortization of
capitalized financing costs
|
|
366
|
|
|
|
437
|
Deferred income
taxes
|
|
(5,093)
|
|
|
|
4,280
|
Change in contingent
consideration
|
|
(700)
|
|
|
|
-
|
Impairment of
goodwill
|
|
-
|
|
|
|
198,828
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Increase in accounts
receivable, net
|
|
(22,766)
|
|
|
|
(1,544)
|
Decrease in
inventory
|
|
117,257
|
|
|
|
50,531
|
Increase in other
assets
|
|
(30,472)
|
|
|
|
(9,915)
|
(Decrease) increase in
accounts payable
|
|
(30,979)
|
|
|
|
3,238
|
Decrease in accrued
liabilities
|
|
(45)
|
|
|
|
(15,828)
|
Decrease in other
liabilities
|
|
(10,147)
|
|
|
|
(1,523)
|
Net cash (used in)
provided by operating activities
|
|
(21,425)
|
|
|
|
53,025
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
(7,838)
|
|
|
|
(8,312)
|
Proceeds from the
disposition of property, plant and equipment
|
|
46
|
|
|
|
-
|
Net cash used in
investing activities
|
|
(7,792)
|
|
|
|
(8,312)
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
Net borrowing under
revolving credit facility
|
|
39,422
|
|
|
|
90,112
|
Borrowings under Term
Loan
|
|
-
|
|
|
|
77,600
|
Repayments under Term
Loan
|
|
(1,518)
|
|
|
|
-
|
Contingent
consideration
|
|
(967)
|
|
|
|
-
|
Net repayments under
Securitization Program
|
|
-
|
|
|
|
(200,000)
|
Net disbursements from
share-based compensation arrangements
|
|
(168)
|
|
|
|
(310)
|
Payment of cash
dividends
|
|
(5,209)
|
|
|
|
(5,167)
|
Payment of debt
issuance costs
|
|
-
|
|
|
|
(5,678)
|
Net cash provided by
(used in) financing activities
|
|
31,560
|
|
|
|
(43,443)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(178)
|
|
|
|
36
|
Net change in cash
and cash equivalents
|
|
2,165
|
|
|
|
1,306
|
Cash and cash
equivalents, beginning of period
|
|
28,802
|
|
|
|
21,329
|
Cash and cash
equivalents, end of period
|
$
|
30,967
|
|
|
$
|
22,635
|
Other Cash Flow
Information:
|
|
|
|
|
|
|
Income tax payments,
net
|
$
|
192
|
|
|
$
|
11,555
|
Interest
paid
|
|
8,470
|
|
|
|
7,658
|
Essendant Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted
Operating Income,
Adjusted Net (Loss) Income, Adjusted
Diluted (Loss) Earnings Per Share, Adjusted EBITDA, and Free Cash
Flow
The Non-GAAP table below presents Adjusted Operating Expenses,
Adjusted Operating Income, Adjusted Net (Loss) Income, Adjusted
Diluted (Loss) Earnings per Share, Adjusted EBITDA and Free Cash
Flow for the three months ended March 31,
2018 and 2017 (in thousands, except per share data). These
non-GAAP measures exclude certain non-recurring items and exclude
other items that do not reflect the Company's ongoing operations
and are included to provide investors with useful information about
the financial performance of our business. The presented non-GAAP
financial measures should not be considered in isolation or as
substitutes for the comparable GAAP financial measures. The
non-GAAP financial measures do not reflect all of the amounts
associated with our results of operations as determined in
accordance with GAAP, and these non-GAAP financial measures should
only be used to evaluate our results of operations in conjunction
with the corresponding GAAP financial measures.
In order to calculate the non-GAAP measures, management excludes
the following items to the extent they occur in the reporting
period, to facilitate the comparison of current and prior year
results and ongoing operations, as management believes these items
do not reflect the underlying cost structure of our business. These
items can vary significantly in amount and frequency.
- Restructuring charges. Workforce reduction and facility
closure charges such as employee termination costs, facility
closure and consolidation costs, and other costs directly
associated with shifting business strategies or business conditions
that are part of a restructuring program.
-
Restructuring actions were taken in 2018 that included facility
consolidations, workforce reductions and product assortment
refinements.
- Gain or loss on sale of assets or businesses. Sales of
assets, such as buildings or equipment, and businesses can cause
gains or losses. These transactions occur as the Company is
repositioning its business and reviewing its cost structure.
- Severance costs for operating leadership.
Employee termination costs related to members of the Company's
operating leadership team are excluded as they are based upon
individual agreements.
- Asset impairments. Changes in strategy or
macroeconomic events may cause asset impairments.
In the three months ended March 31,
2017, the Company recorded goodwill impairment which
resulted from declines in sales, earnings and market
capitalization.
- Other actions. Actions, which may be non-recurring
events, that result from the changing strategies and needs of the
Company and do not reflect the underlying expense of the on-going
business.
-
In the three months ended March 31,
2018, these include charges related to transformational
expenses and a gain reflecting receipt of payment on notes
receivable reserved in 2015. In the three months ended March 31, 2017, other actions included litigation
and transformational expenses.
Adjusted Gross Profit, adjusted operating expenses and
adjusted operating income. Adjusted operating expenses and
adjusted operating income provide management and our investors with
an understanding of the results from the primary operations of our
business by excluding the effects of items described above that do
not reflect the ordinary expenses and earnings of our operations.
Adjusted operating expenses and adjusted operating income are used
to evaluate our period-over-period operating performance as they
are more comparable measures of our continuing business. These
measures may be useful to an investor in evaluating the underlying
operating performance of our business.
Adjusted net (loss) income and adjusted diluted (loss)
earnings per share. Adjusted net (loss) income and adjusted
diluted (loss) earnings per share provide a more comparable view of
our Company's underlying performance and trends than the comparable
GAAP measures. Net (loss) income and diluted (loss) earnings per
share are adjusted for the effect of items described above that do
not reflect the ordinary earnings of our operations.
Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA). Adjusted EBITDA is helpful in evaluating
our operating performance and is used by management for various
purposes, including as a measure of performance and as a basis for
strategic planning and forecasting. Net income is adjusted for the
effect of interest, taxes, depreciation and amortization and
stock-based compensation expense. Management believes that adjusted
EBITDA is also commonly used by investors to evaluate operating
performance between competitors because it helps reduce variability
caused by differences in capital structures, income taxes,
stock-based compensation accounting policies, and depreciation and
amortization policies.
Free cash flow. Free cash flow is useful to management
and our investors as it is a measure of the Company's liquidity. It
provides a more complete understanding of factors and trends
affecting our cash flows than the comparable GAAP measure. Net cash
provided by (used in) operating activities and net cash provided by
(used in) investing activities are aggregated and adjusted to
exclude the impact of acquisitions, net of cash acquired and
divestitures.
Outlook. Adjusted diluted earnings per share and free
cash flow are non-GAAP measures. A quantitative reconciliation of
non-GAAP guidance to the corresponding GAAP information is not
available because the non-GAAP guidance excludes certain GAAP
information that is uncertain and difficult to predict. The
adjusted diluted earnings per share guidance excludes impacts in
the first three months of 2018 of $1.26 per share related to restructuring charges,
transformational expenses and a payment on notes receivable. Actual
amounts appear in the non-GAAP table included later in this
section. For the remainder of the year, the factors that will be
excluded are currently unknown due to the level of unpredictability
and uncertainty associated with these items, but may include
actions such as future restructuring charges, transformational
expenses and cash flow impacts of acquisitions.
Essendant Inc. and
Subsidiaries
|
Reconciliation of
Non-GAAP Financial Measures
|
Adjusted Gross
Profit, Adjusted Operating Expenses, Adjusted Operating
Income,
|
Adjusted Net
(Loss) Income, Adjusted Diluted (Loss) Earnings Per Share, Adjusted
EBITDA, and Free Cash Flow
|
(Unaudited)
|
(in thousands, except
per share data)
|
|
|
For the Three
Months Ended March 31,
|
|
2018
|
|
|
2017
(2)
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
121,176
|
|
|
$
|
185,668
|
Restructuring charges
- product assortment refinements
|
|
42,823
|
|
|
|
-
|
Adjusted gross
profit
|
$
|
163,999
|
|
|
$
|
185,668
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
179,605
|
|
|
$
|
371,126
|
Restructuring
charges
|
|
(14,061)
|
|
|
|
-
|
Transformational
expenses
|
|
(4,231)
|
|
|
|
(2,951)
|
Payment on notes
receivable
|
|
110
|
|
|
|
-
|
Impairment of
goodwill
|
|
-
|
|
|
|
(198,828)
|
Litigation
reserve
|
|
-
|
|
|
|
(6,000)
|
Adjusted operating
expenses
|
$
|
161,423
|
|
|
$
|
163,347
|
|
|
|
|
|
|
|
Operating
loss
|
$
|
(58,429)
|
|
|
$
|
(185,458)
|
Gross profit and
operating expense adjustments noted above
|
|
61,005
|
|
|
|
207,779
|
Adjusted operating
income
|
$
|
2,576
|
|
|
$
|
22,321
|
|
|
|
|
|
|
|
Net loss
|
$
|
(51,440)
|
|
|
$
|
(188,593)
|
Gross
profit and operating expense adjustments noted above
|
|
61,005
|
|
|
|
207,779
|
Non-GAAP
tax provision on adjustments
|
|
|
|
|
|
|
Product assortment
refinements
|
|
(9,733)
|
|
|
|
-
|
Restructuring
charges
|
|
(3,195)
|
|
|
|
-
|
Transformational
expenses
|
|
(961)
|
|
|
|
(1,118)
|
Payment on notes
receivable
|
|
25
|
|
|
|
-
|
Impairment of
goodwill
|
|
-
|
|
|
|
(6,559)
|
Litigation
reserve
|
|
-
|
|
|
|
(2,324)
|
Income tax provision
on adjusted net loss
|
|
(13,864)
|
|
|
|
(10,001)
|
Adjusted net (loss)
income
|
$
|
(4,299)
|
|
|
$
|
9,185
|
|
|
|
|
|
|
|
Diluted loss per share
(1)
|
$
|
(1.38)
|
|
|
$
|
(5.15)
|
Gross profit and
operating expense adjustments noted above
|
|
1.64
|
|
|
|
5.67
|
Non-GAAP tax provision
on adjustments
|
|
(0.38)
|
|
|
|
(0.27)
|
Adjusted diluted
(loss) earnings per share
|
$
|
(0.12)
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
Net loss
|
$
|
(51,440)
|
|
|
$
|
(188,593)
|
Income tax
benefit
|
|
(15,211)
|
|
|
|
(4,328)
|
Interest and other
expense, net
|
|
8,222
|
|
|
|
7,463
|
Depreciation and
amortization
|
|
10,798
|
|
|
|
10,965
|
Equity compensation
expense
|
|
2,030
|
|
|
|
2,468
|
Gross profit and
operating expense adjustments noted above
|
|
61,005
|
|
|
|
207,779
|
Adjusted earnings
before interest, taxes, depreciation and amortization
(EBITDA)
|
$
|
15,404
|
|
|
$
|
35,754
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
$
|
(21,425)
|
|
|
$
|
53,025
|
Net cash used in
investing activities
|
|
(7,792)
|
|
|
|
(8,312)
|
Free cash
flow
|
$
|
(29,217)
|
|
|
$
|
44,713
|
|
|
|
|
|
|
|
|
(1)
|
Diluted loss per
share for the three months ended March 31, 2018 and 2017 under GAAP
reflect an adjustment to the basic earnings per share due to the
net loss. The diluted earnings per share here does not reflect this
adjustment.
|
|
(2)
|
Revised in the first
quarter of 2018 for the impact of the adoption of a new pension
accounting pronouncement.
|
View original
content:http://www.prnewswire.com/news-releases/essendant-reports-first-quarter-2018-results-300636646.html
SOURCE Essendant Inc.