NAPERVILLE, Ill., Nov. 5, 2013 /PRNewswire/ -- OfficeMax®
Incorporated (NYSE:OMX), a leading provider of office and facility
supplies, technology and services, today announced the results for
its fiscal third quarter ended September
28, 2013.
Consolidated Results
Reported Results
Total sales were $1,664.9 million
in the third quarter of 2013, as compared to $1,744.6 in the third quarter of 2012. For
the third quarter of 2013, OfficeMax reported operating income of
$66.8 million compared to operating
income of $33.5 million in the third
quarter of 2012; and net income available to OfficeMax common
shareholders of $30.4 million, or
$0.34 per diluted share, compared to
$433.0 million, or $4.92 per diluted share in the third quarter of
2012.
Adjusted Results
"In the third quarter, we continued to experience soft sales
overall and weak margins within our Contract business, due to a
competitive global environment," said Ravi
Saligram, President and CEO of OfficeMax. "However,
through our strategic initiatives, we continue to lay the
foundation for evolving our business model. We believe that
these initiatives, in combination with the anticipated annual cost
synergies from our pending merger with Office Depot, will position
the combined company well for success."
|
Consolidated
(in millions, except per-share amounts)
|
3Q13
|
3Q12
|
YTD13
|
YTD12
|
|
Sales
|
$1,664.9
|
$1,744.6
|
$4,964.6
|
$5,219.9
|
|
Sales decline
(from prior year period)
|
-4.6%
|
|
-4.9%
|
|
|
Adjusted sales
decline (from prior year period)*
|
-3.4%
|
|
-3.9%
|
|
|
Gross
profit
|
$417.5
|
$460.4
|
$1,263.8
|
$1,352.7
|
|
Gross profit
margin
|
25.1%
|
26.4%
|
25.5%
|
25.9%
|
|
Adjusted operating
income*
|
$28.4
|
$42.7
|
$61.6
|
$104.8
|
|
Adjusted operating
income margin*
|
1.7%
|
2.4%
|
1.2%
|
2.0%
|
|
Adjusted net income
available to OfficeMax common shareholders*
|
$13.6
|
$22.2
|
$25.5
|
$50.7
|
|
Adjusted diluted
income per common share*
|
$0.15
|
$0.25
|
$0.29
|
$0.58
|
|
*Adjusted sales,
adjusted operating income, adjusted operating income margin,
adjusted net income available to OfficeMax common shareholders, and
adjusted diluted income per share are non-GAAP financial measures
that exclude the effect of certain items and charges described in
the footnotes to the accompanying financial statements. A
reconciliation to the company's GAAP financial results is included
in this press release.
|
Excluding the impact of changes in foreign exchange rates, the
impact of stores closed and opened, and the difference in the
number of business days in the quarter compared to the same quarter
last year, adjusted sales for the third quarter of 2013 decreased
3.4% from the third quarter of 2012.
For the third quarter of 2013, adjusted operating income was
$28.4 million, or 1.7% of sales,
compared to $42.7 million, or 2.4% of
sales, in the third quarter of 2012; and adjusted net income
available to OfficeMax common shareholders was $13.6 million, or $0.15 per diluted share, compared to $22.2 million, or $0.25 per diluted share, in the third quarter of
2012.
The third quarter of 2013 adjusted figures in the preceding
paragraph exclude income of $47.7
million for the recognition of deferred gains related to
OfficeMax's investment in Boise Cascade Holdings, L.L.C. and
dividend income of $25.4 million
related to OfficeMax's voting securities held in Boise Cascade
Holdings, L.L.C. reflected in the Corporate and Other segment, as
well as charges of $30.5 million in
our Corporate and Other segment for certain costs related to our
pending merger with Office Depot, and charges of $4.1 million associated with store closures in
the U.S. The third quarter of 2012 adjusted figures exclude a
non-cash gain of $670.8 million
related to the extinguishment of non-recourse debt guaranteed by
Lehman Brothers Holdings, Inc. and $11.4
million of expenses to impair fixed assets associated with
certain stores and to record a change in the estimated lease
obligation of a previously closed store in the U.S. The third
quarter of 2012 adjusted figures also exclude $2.2 million of dividend income from the
investment in Boise Cascade Holdings, L.L.C. Series A Units, which
were subsequently redeemed in the first quarter of 2013. The
net effect of these items increased net income by $16.7 million, or $0.19 per diluted share, for the third quarter of
2013, and increased net income by $410.7
million, or $4.67 per diluted
share, for the third quarter of 2012.
Contract Segment Results
Contract segment sales decreased 4.4% compared to the prior year
period to $841.9 million in the third
quarter of 2013. This decrease reflected a U.S. Contract
operations sales decrease of 3.6% and an international Contract
operations sales decrease of 6.5% in U.S. dollars (a decrease of
0.8% on a local currency basis). The U.S. Contract
performance reflects weaker sales to existing corporate
accounts.
|
Contract (in
millions)
|
3Q13
|
3Q12
|
YTD13
|
YTD12
|
|
Sales
|
$841.9
|
$880.9
|
$2,612.8
|
$2,720.3
|
|
Sales decline
(from prior year period)
|
-4.4%
|
|
-4.0%
|
|
|
Gross profit
margin
|
20.7%
|
22.8%
|
21.8%
|
22.5%
|
|
Segment
income
|
$8.8
|
$26.5
|
$41.3
|
$79.3
|
|
Segment income
margin
|
1.0%
|
3.0%
|
1.6%
|
2.9%
|
Contract segment gross profit margin decreased to 20.7% in the
third quarter of 2013 from 22.8% in the third quarter of 2012,
primarily reflecting lower customer margins in U.S. Contract and
International Contract. Contract segment operating, selling
and general and administrative expenses as a percentage of sales
decreased to 19.6% in the third quarter of 2013 from 19.8% in the
third quarter of 2012 primarily due to lower incentive compensation
expense and net favorable legal and sales tax settlements,
partially offset by continued investments in growth and
profitability initiatives. Contract segment income was
$8.8 million, or 1.0% of sales, in
the third quarter of 2013 compared to $26.5
million, or 3.0% of sales, in the third quarter of 2012.
Retail Segment Results
Retail segment sales in the third quarter of 2013 decreased 4.7%
to $823.0 million compared to the
third quarter of 2012, reflecting a same-store sales decrease on a
local currency basis of 2.8% primarily due to decreased traffic and
lower technology product category sales. The decrease
reflected a U.S. Retail operations same-store sales decrease of
2.8%, and a Mexico retail
operations same-store sales decrease of 2.2% on a local currency
basis.
|
Retail (in
millions)
|
3Q13
|
3Q12
|
YTD13
|
YTD12
|
|
Sales
|
$823.0
|
$863.7
|
$2,351.8
|
$2,499.6
|
|
Same-store sales
decline on a local currency basis
|
-2.8%
|
|
-4.0%
|
|
|
Gross profit
margin
|
29.6%
|
30.0%
|
29.6%
|
29.6%
|
|
Segment
income
|
$26.2
|
$27.7
|
$44.4
|
$53.4
|
|
Segment income
margin
|
3.2%
|
3.2%
|
1.9%
|
2.1%
|
Retail segment gross profit margin decreased to 29.6% in the
third quarter of 2013 from 30.0% in the third quarter of 2012
primarily reflecting an expiration of favorable purchase accounting
for leases as of the end of fiscal 2012, and deleveraging of
occupancy costs due to lower sales. Retail segment operating,
selling and general and administrative expenses as a percentage of
sales decreased to 26.4% in the third quarter of 2013 from 26.8% in
the third quarter of 2012, primarily due to favorable sales and
property tax settlements, lower store payroll expense, and reduced
advertising expenses. Retail segment income was $26.2 million, or 3.2% of sales, in the third
quarter of 2013 compared to $27.7
million, or 3.2% of sales, in the third quarter of
2012.
OfficeMax ended the third quarter of 2013 with a total of 921
Retail stores, consisting of 828 Retail stores in the U.S. and 93
Retail stores in Mexico. During the third quarter of 2013,
OfficeMax closed 15 stores and opened one store in the U.S.; and
opened three stores in Mexico.
Corporate and Other Segment Results
The Corporate and Other segment includes support staff services
and certain other expenses that are not fully allocated to the
Contract and Retail segments. Corporate and Other segment
operating, selling and general and administrative expenses were
$6.7 million in the third quarter of
2013 compared to $11.5 million in the
third quarter of 2012 primarily due to favorable sales tax
settlements and cost reductions in the third quarter of
2013.
Balance Sheet and Cash Flow
As of September 28, 2013,
OfficeMax had total debt of $232.4
million, excluding $735.0
million of non-recourse debt related to the Wells
Fargo-backed timber notes.
During the first nine months of 2013, OfficeMax generated
$85.2 million of cash flow from
operations and invested $65.3 million
in capital expenditures. In July of 2013, OfficeMax received a
$71.8 million distribution from Boise
Cascade Holdings, L.L.C. of which $25.4
million was recorded as dividend income and included in cash
provided by operations, and the remaining $46.4 million was recorded as a reduction in the
carrying value of the Boise
investment and classified as cash provided by investment.
In July of 2013, OfficeMax paid a special dividend to common
shareholders of $130.7 million in
cash.
Merger Update
On February 20, 2013, OfficeMax
and Office Depot announced their entry into an agreement to combine
their companies in a merger of equals. On July 10, 2013, stockholders of both companies
approved the merger. The companies received FTC clearance for
the merger on November 1, 2013 and
expect to close the transaction after market close on November 5, 2013. Additional information
about the merger process can be found in the "Investors" section of
the OfficeMax website.
Additional Comments
OfficeMax expects to post further comments by its President and
CEO, Ravi Saligram, and its SVP of
Finance, Interim Chief Financial Officer and Chief Accounting
Officer, Deb O'Connor, regarding its
third quarter 2013 financial results. The comments will be
available by visiting the SEC Filings section of the OfficeMax
Investor Relations website at investor.officemax.com.
About OfficeMax
OfficeMax Incorporated (NYSE: OMX) is a leader in integrating
products, solutions and services for the workplace, whether for
business or at home. The OfficeMax mission is simple: We
provide workplace innovation that enables our customers to work
better. The company provides office supplies and paper, print
and document services, technology products and solutions, and
furniture to businesses and consumers. OfficeMax consumers
and business customers are served by approximately 28,000
associates through OfficeMax.com; OfficeMaxWorkplace.com and
Reliable.com; more than 900 stores in the U.S. and Mexico; and direct sales and catalogs.
OfficeMax has been named one of the 2013 World's Most Ethical
Companies, and is the only company in the office supply industry to
receive Ethics Inside® Certification by the Ethisphere
Institute. To find the nearest OfficeMax, call
1-877-OFFICEMAX. For more information, visit
www.OfficeMax.com.
All trademarks, service marks and trade names of OfficeMax
Incorporated used herein are trademarks or registered trademarks of
OfficeMax Incorporated. Any other product or company names
mentioned herein are the trademarks of their respective
owners.
FORWARD-LOOKING STATEMENTS
Certain statements made in
this document and other written or oral statements made by or on
behalf of OfficeMax and Office Depot constitute "forward-looking
statements" within the meaning of the federal securities laws,
including statements regarding both companies' future performance,
as well as management's expectations, beliefs, intentions, plans,
estimates or projections relating to the future. OfficeMax
and Office Depot cannot guarantee that the macroeconomy will
perform within the assumptions underlying their respective
projected outlook; that their respective initiatives will be
successfully executed and produce the results underlying their
respective expectations, due to the uncertainties inherent in new
initiatives, including customer acceptance, unexpected expenses or
challenges, or slower-than-expected results from initiatives; or
that their respective actual results will be consistent with the
forward-looking statements and you should not place undue reliance
on them. In addition, forward-looking statements could be
affected by the following additional factors, among others, related
to the business combination: the occurrence of any event,
change or other circumstances that could give rise to the
termination of the merger agreement or the failure to satisfy
closing conditions; the risk that the synergies from the
transaction may not be realized, may take longer to realize than
expected, or may cost more to achieve than expected; disruption
from the transaction making it more difficult to maintain
relationships with customers, employees or suppliers; the ability
to successfully integrate the businesses; unexpected costs or
unexpected liabilities that may arise from the transaction, whether
or not consummated; the inability to retain key personnel; future
regulatory or legislative actions that could adversely affect
OfficeMax and Office Depot; and business plans of the customers and
suppliers of OfficeMax and Office Depot. The forward-looking
statements made herein are based on current expectations and speak
only as of the date they are made. OfficeMax and Office Depot
undertake 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
OfficeMax and Office Depot that may cause results to differ from
expectations are included in the companies' respective Annual
Reports on Form 10-K for the year ended December 29, 2012, under 1A "Risk Factors", and
in the companies' other filings with the SEC.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities in
any jurisdiction in connection with the proposed merger of
OfficeMax with Office Depot or otherwise, nor shall there be any
sale, issuance or transfer of securities in any jurisdiction in
contravention of applicable law. No offer of securities shall be
made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act of 1933, as amended. Office
Depot has filed with the SEC a registration statement on Form S-4
that includes a definitive Joint Proxy Statement of Office Depot
and OfficeMax that also constitutes a definitive prospectus of
Office Depot. The registration statement was declared
effective by the SEC on June 7,
2013. OfficeMax and Office Depot mailed the definitive Joint
Proxy Statement/Prospectus to their respective shareholders in
connection with the transaction on or about June 10, 2013. INVESTORS AND SHAREHOLDERS
ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER
RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY
BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT
OFFICE DEPOT, OFFICEMAX, THE TRANSACTION AND RELATED MATTERS.
Investors and shareholders are able to obtain free copies of the
definitive Joint Proxy Statement/Prospectus and other documents
filed with the SEC by OfficeMax and Office Depot through the
website maintained by the SEC at www.sec.gov. In addition,
investors and shareholders are able to obtain free copies of the
definitive Joint Proxy Statement/Prospectus and other documents
filed by OfficeMax by contacting OfficeMax Investor Relations at
263 Shuman Blvd., Naperville,
Illinois 60563 or by calling 630-864-6800, and are able to
obtain free copies of the definitive Joint Proxy
Statement/Prospectus and other documents filed by Office Depot with
the SEC by contacting Office Depot Investor Relations at 6600 North
Military Trail, Boca Raton, FL
33496 or by calling 561-438-7878.
|
Investor
Contact
|
Media
Contact
|
|
Mike
Steele
|
Julie
Treon
|
|
630 864
6826
|
630 864
6155
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
(thousands, except
per-share amounts)
|
|
|
|
|
Quarter
Ended
|
|
|
September
28,
|
|
September
29,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
Sales
|
|
$
1,664,859
|
|
$
1,744,579
|
|
Cost of goods sold
and occupancy costs
|
|
1,247,373
|
|
1,284,177
|
|
Gross profit
|
|
417,486
|
|
460,402
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Operating, selling
and general and administrative expenses (a)
|
|
389,127
|
|
415,511
|
|
Asset impairments and
other operating expenses (income), net (b)
|
|
(38,429)
|
|
11,432
|
|
Total operating
expenses
|
|
350,698
|
|
426,943
|
|
|
|
|
|
|
Operating income
|
|
66,788
|
|
33,459
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
|
(16,643)
|
|
(16,873)
|
|
Interest
income
|
|
10,687
|
|
11,003
|
|
Gain on
extinguishment of non-recourse debt (c)
|
|
-
|
|
670,766
|
|
Other income
(expense), net
|
|
(97)
|
|
224
|
|
|
(6,053)
|
|
665,120
|
|
|
|
|
|
|
Pre-tax
income
|
|
60,735
|
|
698,579
|
|
Income tax
expense
|
|
(28,400)
|
|
(263,331)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to OfficeMax and noncontrolling
interest
|
|
32,335
|
|
435,248
|
|
Joint venture results
attributable to noncontrolling interest
|
|
(1,448)
|
|
(1,740)
|
|
|
|
|
|
|
Net income
attributable to OfficeMax
|
|
30,887
|
|
433,508
|
|
|
|
|
|
|
Preferred
dividends
|
|
(507)
|
|
(522)
|
|
|
|
|
|
|
Net income
available to OfficeMax common shareholders
|
|
$
30,380
|
|
$
432,986
|
|
|
|
|
|
|
Basic income per
common share:
|
|
$
0.35
|
|
$
5.00
|
|
|
|
|
|
|
Diluted income per
common share:
|
|
$
0.34
|
|
$
4.92
|
|
|
|
|
|
|
Weighted Average
Shares
|
|
|
|
|
|
Basic
|
|
87,239
|
|
86,661
|
|
Diluted
|
|
89,183
|
|
88,104
|
|
|
(a) The third
quarter of 2012 includes $2.2 million of dividend income related to
OfficeMax's non-voting securities held in Boise Cascade Holdings,
L.L.C. The effect of the dividends increased net income by
$1.3 million, or $0.02 per diluted share, for the third quarter of
2012.
|
|
|
(b) The third
quarter of 2013 includes income of $47.7 million in our Corporate
segment associated with our investment in Boise Cascade Holdings,
L.L.C. for the partial recognition of the deferred gain from the
2004 sale of our paper, forest products and timberland assets and
dividend income of $25.4 million from the voting securities held in
Boise Cascade Holdings, L.L.C. The third quarter of 2013 also
includes charges of $30.5 million in our Corporate segment for
certain costs related to our pending merger with Office Depot,
portions of which may not be deductible for tax purposes, and
charges recorded in our Retail segment related to store closures in
the U.S. of $4.1 million. The net effect of the these items
increased net income by $16.7 million, or $0.19 per diluted share,
for the third quarter of 2013. The third quarter of 2012 includes a
charge to impair fixed assets associated with certain Retail stores
in the U.S. and a charge related to a change in the estimated lease
obligation of a closed domestic store. These items totaled $11.4
million and reduced income available to OfficeMax common
shareholders by $7.0 million, or $0.08 per diluted share, for the
third quarter of 2012.
|
|
|
(c) The third
quarter of 2012 includes a non-cash gain of $670.8 million related
to an agreement that legally extinguished the Company's
non-recourse debt guaranteed by Lehman Brothers Holdings,
Inc. The gain increased net income available to OfficeMax
common shareholders by $416.4 million, or $4.73 per diluted share,
for the third quarter of 2012.
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
(thousands, except
per-share amounts)
|
|
|
|
|
Nine Months
Ended
|
|
|
September
28,
|
|
September
29,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
Sales
|
|
$
4,964,637
|
|
$
5,219,890
|
|
Cost of goods sold
and occupancy costs
|
|
3,700,854
|
|
3,867,198
|
|
Gross profit
|
|
1,263,783
|
|
1,352,692
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Operating, selling
and general and administrative expenses (a)
|
|
1,201,164
|
|
1,241,598
|
|
Asset impairments and
other operating expenses (income), net (b)
|
|
(105,197)
|
|
36,698
|
|
Total operating
expenses
|
|
1,095,967
|
|
1,278,296
|
|
|
|
|
|
|
Operating income
|
|
167,816
|
|
74,396
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
|
(49,999)
|
|
(52,690)
|
|
Interest
income
|
|
32,156
|
|
32,820
|
|
Gain on
extinguishment of non-recourse debt (c)
|
|
-
|
|
670,766
|
|
Other income
(expense), net
|
|
(274)
|
|
449
|
|
|
(18,117)
|
|
651,345
|
|
|
|
|
|
|
Pre-tax
income
|
|
149,699
|
|
725,741
|
|
Income tax
expense
|
|
(68,661)
|
|
(272,251)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to OfficeMax and noncontrolling
interest
|
|
81,038
|
|
453,490
|
|
Joint venture results
attributable to noncontrolling interest
|
|
(2,843)
|
|
(3,345)
|
|
|
|
|
|
|
Net income
attributable to OfficeMax
|
|
78,195
|
|
450,145
|
|
|
|
|
|
|
Preferred
dividends
|
|
(1,514)
|
|
(1,581)
|
|
|
|
|
|
|
Net income
available to OfficeMax common shareholders
|
|
$
76,681
|
|
$
448,564
|
|
|
|
|
|
|
Basic income per
common share:
|
|
$
0.88
|
|
$
5.18
|
|
|
|
|
|
|
Diluted income per
common share:
|
|
$
0.86
|
|
$
5.12
|
|
|
|
|
|
|
Weighted Average
Shares
|
|
|
|
|
|
Basic
|
|
87,063
|
|
86,526
|
|
Diluted
|
|
88,692
|
|
87,979
|
|
|
|
|
|
|
(a) The first
nine months of 2013 and 2012 include $1.0 million and $6.3 million,
respectively, of dividend income related to OfficeMax's non-voting
securities held in Boise Cascade Holdings, L.L.C. The
dividend income ceased in the first quarter of 2013 upon redemption
of those securities, therefore no additional dividend income was
recorded in the second and third quarters of 2013. The effect
of the dividends increased net income by $0.6 million and $3.8
million, or $0.01 and $0.05 per diluted share, for the first nine
months of 2013 and 2012, respectively.
|
|
|
(b) The first nine
months of 2013 include income of $137.5 million in our Corporate
segment associated with our investment in Boise Cascade Holdings,
L.L.C. for the partial recognition of the deferred gain, net of
fees, from the 2004 sale of our paper, forest products and
timberland assets and dividend income of $25.4 million from the
voting securities held in Boise Cascade Holdings, L.L.C. The first
nine months of 2013 also include charges of $49.1 million in our
Corporate segment for certain costs related to our pending merger
with Office Depot, portions of which may not be deductible for tax
purposes, $4.5 million of severance charges primarily related to
reorganizations in our Contract segment sales and supply chain
operations, and charges recorded in our Retail segment related to
store closures in the U.S. of $4.1 million. The first nine
months of 2012 include a non-cash charge of $9.8 million to impair
fixed assets associated with certain stores in the U.S. and charges
of $26.9 million related to store closures in the U.S. The
net effect of these items increased net income by $50.6 million, or
$0.57 per diluted share for the first nine months of 2013 and
reduced net income by $22.4 million, or $0.26 per diluted share,
for the first nine months of 2012.
|
|
|
(c) The first
nine months of 2012 include a non-cash gain of $670.8 million
related to an agreement that legally extinguished the Company's
non-recourse debt guaranteed by Lehman Brothers Holdings,
Inc. The gain increased net income available to OfficeMax
common shareholders by $416.4 or $4.73 per diluted
share.
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
(thousands)
|
|
|
|
|
|
|
|
September
28,
|
|
December
29,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
504,201
|
|
$
495,056
|
|
Receivables,
net
|
|
549,597
|
|
528,279
|
|
Inventories
|
|
697,724
|
|
812,454
|
|
Deferred
income taxes and receivables
|
|
59,431
|
|
68,568
|
|
Other current
assets
|
|
67,756
|
|
79,527
|
|
Total current assets
|
|
1,878,709
|
|
1,983,884
|
|
|
|
|
|
|
Property and
equipment:
|
|
|
|
|
|
Property and
equipment
|
|
1,326,880
|
|
1,338,837
|
|
Accumulated
depreciation
|
|
(997,420)
|
|
(986,611)
|
|
Property and equipment, net
|
|
329,460
|
|
352,226
|
|
|
|
|
|
|
Intangible assets,
net
|
|
79,096
|
|
80,765
|
|
Investment in Boise
Cascade Holdings, L.L.C.
|
|
40,896
|
|
175,000
|
|
Timber notes
receivable
|
|
817,500
|
|
817,500
|
|
Deferred income
taxes
|
|
50,240
|
|
108,759
|
|
Other non-current
assets
|
|
232,785
|
|
266,181
|
|
|
|
|
|
|
Total assets
|
|
$
3,428,686
|
|
$
3,784,315
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
573,838
|
|
$
699,636
|
|
Income taxes
payable
|
|
1,369
|
|
4,222
|
|
Accrued
liabilities and other
|
|
350,506
|
|
342,551
|
|
Current
portion of debt
|
|
6,620
|
|
10,232
|
|
Total current liabilities
|
|
932,333
|
|
1,056,641
|
|
|
|
|
|
|
Long-term
debt, less current portion
|
|
225,736
|
|
225,962
|
|
Non-recourse
debt
|
|
735,000
|
|
735,000
|
|
|
|
|
|
|
Other long-term
obligations:
|
|
|
|
|
|
Compensation
and benefits
|
|
342,569
|
|
365,568
|
|
Deferred gain
on sale of assets
|
|
42,008
|
|
179,757
|
|
Other
long-term liabilities
|
|
122,309
|
|
142,397
|
|
Total other long-term liabilities
|
|
506,886
|
|
687,722
|
|
|
|
|
|
|
Noncontrolling
interest in joint venture
|
|
62,062
|
|
44,617
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Preferred
stock
|
|
26,245
|
|
27,391
|
|
Common
stock
|
|
218,585
|
|
217,209
|
|
Additional
paid-in capital
|
|
1,011,080
|
|
1,018,667
|
|
Accumulated
deficit
|
|
(150,220)
|
|
(91,373)
|
|
Accumulated
other comprehensive loss
|
|
(139,021)
|
|
(137,521)
|
|
Total
shareholders' equity
|
|
966,669
|
|
1,034,373
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
3,428,686
|
|
$
3,784,315
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
(thousands)
|
|
|
Nine Months
Ended
|
|
September
28,
|
|
September
29,
|
|
2013
|
|
2012
|
|
|
|
|
|
Cash provided by
operations:
|
|
|
|
|
Net income
attributable to OfficeMax and noncontrolling interest
|
$
81,038
|
|
$
453,490
|
|
Non-cash items in net
income:
|
|
|
|
|
Deferred gain
from investment in Boise Cascade Holdings, L.L.C.
|
(137,523)
|
|
-
|
|
Depreciation
and amortization
|
55,930
|
|
55,704
|
|
Non-cash
impairment charges
|
-
|
|
9,791
|
|
Non-cash gain
on extinguishment of non-recourse debt
|
-
|
|
(670,766)
|
|
Deferred
income tax expense
|
62,977
|
|
250,337
|
|
Other
|
46,398
|
|
29,456
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Receivables
|
(18,886)
|
|
28,360
|
|
Inventories
|
108,787
|
|
69,038
|
|
Accounts
payable and accrued liabilities
|
(136,012)
|
|
(22,625)
|
|
Current and
deferred income taxes
|
(3,013)
|
|
12,810
|
|
Collection of
dividends receivable related to investment in Boise
Cascade Holdings, L.L.C.
|
46,137
|
|
-
|
|
Other
|
(20,609)
|
|
(57,765)
|
|
Cash provided by operations
|
85,224
|
|
157,830
|
|
|
|
|
|
Cash provided by
(used for) investment:
|
|
|
|
|
Expenditures for property and equipment
|
(65,285)
|
|
(48,173)
|
|
Return
of investment in Boise Cascade Holdings, L.L.C.
|
134,104
|
|
-
|
|
Proceeds
from sale of assets
|
3,833
|
|
1,667
|
|
Other
|
(997)
|
|
-
|
|
Cash provided by (used for) investment
|
71,655
|
|
(46,506)
|
|
|
|
|
|
Cash used for
financing:
|
|
|
|
|
Cash dividends
paid
|
(136,934)
|
|
(2,792)
|
|
Changes in debt,
net
|
(3,793)
|
|
(31,909)
|
|
Other
|
(3,315)
|
|
(1,005)
|
|
Cash used for financing
|
(144,042)
|
|
(35,706)
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
(3,692)
|
|
3,293
|
|
Increase in cash
and cash equivalents
|
9,145
|
|
78,911
|
|
Cash and cash
equivalents at beginning of period
|
495,056
|
|
427,111
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
504,201
|
|
$
506,022
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONTRACT SEGMENT
STATEMENTS OF INCOME
|
|
(unaudited)
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
September
28,
|
|
|
|
September
29,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
841.9
|
|
|
|
$
880.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
174.1
|
|
20.7%
|
|
200.9
|
|
22.8%
|
|
Operating, selling
and general and administrative expenses
|
|
165.3
|
|
19.6%
|
|
174.4
|
|
19.8%
|
|
Segment
income
|
|
|
$
8.8
|
|
1.0%
|
|
$
26.5
|
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not
sum down due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
28,
|
|
|
|
September
29,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
2,612.8
|
|
|
|
$
2,720.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
568.6
|
|
21.8%
|
|
612.3
|
|
22.5%
|
|
Operating, selling
and general and administrative expenses
|
|
527.3
|
|
20.2%
|
|
533.0
|
|
19.6%
|
|
Segment
income
|
|
|
$
41.3
|
|
1.6%
|
|
$
79.3
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not
sum down due to rounding.
|
|
|
|
Note:
Management evaluates the segments' performances using segment
income which is based on operating income after eliminating
the effect of certain legacy operating items such as income
associated with our investment in Boise Cascade Holdings, L.L.C.
and certain other operating items such as store closure costs,
costs related to our pending merger with Office Depot and severance
charges, all of which are not indicative of our core
operations.
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
RETAIL SEGMENT
STATEMENTS OF INCOME
|
|
(unaudited)
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
September
28,
|
|
|
|
September
29,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
823.0
|
|
|
|
$
863.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
243.4
|
|
29.6%
|
|
259.5
|
|
30.0%
|
|
Operating, selling
and general and administrative expenses
|
|
217.1
|
|
26.4%
|
|
231.8
|
|
26.8%
|
|
Segment
income
|
|
|
$
26.2
|
|
3.2%
|
|
$
27.7
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not
sum down due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
28,
|
|
|
|
September
29,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
2,351.8
|
|
|
|
$
2,499.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
695.2
|
|
29.6%
|
|
740.4
|
|
29.6%
|
|
Operating, selling
and general and administrative expenses
|
|
|
650.8
|
|
27.7%
|
|
687.0
|
|
27.5%
|
|
Segment
income
|
|
|
$
44.4
|
|
1.9%
|
|
$
53.4
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not
sum down due to rounding.
|
|
|
|
Note:
Management evaluates the segments' performances using segment
income which is based on operating income after eliminating
the effect of certain legacy operating items such as income
associated with our investment in Boise Cascade Holdings, L.L.C.
and certain other operating items such as store closure costs,
costs related to our pending merger with Office Depot and severance
charges, all of which are not indicative of our core
operations.
|
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
evaluate our results of operations before non-operating legacy
items, certain legacy operating items such as income associated
with our Boise Investment, and certain other operating items such
as store closure costs, costs related to our pending merger with
Office Depot, and severance charges, all of which are not
indicative of our core operations. We believe our presentation of
financial measures before, or excluding, these items, which are
non-GAAP measures, enhances our investors' overall understanding of
our 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" and provide a reconciliation of the 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 following tables, we reconcile our non-GAAP financial
measures to our reported GAAP financial results.
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.
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
NON-GAAP
RECONCILIATION - OPERATING RESULTS
|
|
(unaudited)
|
|
(millions, except
per-share amounts)
|
|
|
|
Quarter
Ended
|
|
|
September 28,
2013
|
|
September 29,
2012
|
|
|
As
|
|
|
|
As
|
|
As
|
|
|
|
As
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$1,664.9
|
|
$
-
|
|
$1,664.9
|
|
$1,744.6
|
|
$
-
|
|
$1,744.6
|
|
Cost of goods sold
and occupancy costs
|
|
$1,247.4
|
|
-
|
|
1,247.4
|
|
1,284.2
|
|
-
|
|
1,284.2
|
|
Gross profit
|
|
417.5
|
|
-
|
|
417.5
|
|
460.4
|
|
-
|
|
460.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, selling
and general and administrative expenses (a)
|
|
389.1
|
|
-
|
|
389.1
|
|
415.5
|
|
2.2
|
|
417.7
|
|
Asset impairments and
other operating expenses (income), net (b)
|
|
(38.4)
|
|
38.4
|
|
-
|
|
11.4
|
|
(11.4)
|
|
-
|
|
Total operating
expenses
|
|
350.7
|
|
38.4
|
|
389.1
|
|
426.9
|
|
(9.3)
|
|
417.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
66.8
|
|
(38.4)
|
|
28.4
|
|
33.5
|
|
9.3
|
|
42.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(16.6)
|
|
-
|
|
(16.6)
|
|
(16.9)
|
|
-
|
|
(16.9)
|
|
Interest
income
|
|
10.7
|
|
-
|
|
10.7
|
|
11.0
|
|
-
|
|
11.0
|
|
Gain on
extinguishment of non-recourse debt (c)
|
|
-
|
|
|
|
|
|
670.8
|
|
(670.8)
|
|
-
|
|
Other expense,
net
|
|
(0.1)
|
|
-
|
|
(0.1)
|
|
0.2
|
|
-
|
|
0.2
|
|
|
(6.0)
|
|
-
|
|
(6.0)
|
|
665.1
|
|
(670.8)
|
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
60.7
|
|
(38.4)
|
|
22.3
|
|
698.6
|
|
(661.5)
|
|
37.1
|
|
Income tax
expense
|
|
(28.4)
|
|
21.7
|
|
(6.7)
|
|
(263.3)
|
|
250.8
|
|
(12.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to OfficeMax and noncontrolling
interest
|
|
32.3
|
|
(16.7)
|
|
15.6
|
|
435.2
|
|
(410.7)
|
|
24.5
|
|
Joint venture results
attributable to noncontrolling interest
|
|
(1.4)
|
|
-
|
|
(1.4)
|
|
(1.7)
|
|
-
|
|
(1.7)
|
|
Net income (loss)
attributable to OfficeMax
|
|
30.9
|
|
(16.7)
|
|
14.1
|
|
433.5
|
|
(410.7)
|
|
22.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
dividends
|
|
(0.5)
|
|
-
|
|
(0.5)
|
|
(0.5)
|
|
-
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to OfficeMax common shareholders
|
|
$
30.4
|
|
$
(16.7)
|
|
$
13.6
|
|
$
433.0
|
|
$
(410.7)
|
|
$
22.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income
(loss) per common share:
|
|
$
0.35
|
|
$
(0.19)
|
|
$
0.16
|
|
$
5.00
|
|
$
(4.74)
|
|
$
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per common share:
|
|
$
0.34
|
|
$
(0.19)
|
|
$
0.15
|
|
$
4.92
|
|
$
(4.67)
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
87,239
|
|
|
|
87,239
|
|
86,661
|
|
|
|
86,661
|
|
Diluted
|
|
89,183
|
|
|
|
89,183
|
|
88,104
|
|
|
|
87,587
|
|
|
|
Note: Totals may not
sum down or across due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The third
quarter of 2012 includes $2.2 million of dividend income related to
OfficeMax's non-voting securities held in Boise Cascade Holdings,
L.L.C. The effect of the dividends increased net income by
$1.3 million, or $0.02 per diluted share, for the third quarter of
2012.
|
|
|
(b) The third
quarter of 2013 includes income of $47.7 million in our Corporate
segment associated with our investment in Boise Cascade Holdings,
L.L.C. for the partial recognition of the deferred gain from the
2004 sale of our paper, forest products and timberland assets and
dividend income of $25.4 million from the voting securities held in
Boise Cascade Holdings, L.L.C. The third quarter of 2013 also
includes charges of $30.5 million in our Corporate segment for
certain costs related to our pending merger with Office Depot,
portions of which may not be deductible for tax purposes, and
charges recorded in our Retail segment related to store closures in
the U.S. of $4.1 million. The net effect of the these items
increased net income by $16.7 million, or $0.19 per diluted share,
for the third quarter of 2013. The third quarter of 2012 includes a
charge to impair fixed assets associated with certain Retail stores
in the U.S. and a charge related to a change in the estimated lease
obligation of a closed domestic store. These items totaled $11.4
million and reduced income available to OfficeMax common
shareholders by $7.0 million, or $0.08 per diluted share, for the
third quarter of 2012.
|
|
|
(c) The third
quarter of 2012 includes a non-cash gain of $670.8 million related
to an agreement that legally extinguished the Company's
non-recourse debt guaranteed by Lehman Brothers Holdings,
Inc. The gain increased net income available to OfficeMax
common shareholders by $416.4 million, or $4.73 per diluted share,
for the third quarter of 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
NON-GAAP
RECONCILIATION - OPERATING RESULTS
|
|
(unaudited)
|
|
(millions, except
per-share amounts)
|
|
|
|
Nine Months
Ended
|
|
|
September 28,
2013
|
|
September 29,
2012
|
|
|
As
|
|
|
|
As
|
|
As
|
|
|
|
As
|
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$4,964.6
|
|
$
-
|
|
$4,964.6
|
|
$5,219.9
|
|
$
-
|
|
$5,219.9
|
|
Cost of goods sold
and occupancy costs
|
|
3,700.9
|
|
-
|
|
3,700.9
|
|
3,867.2
|
|
-
|
|
3,867.2
|
|
Gross profit
|
|
1,263.8
|
|
-
|
|
1,263.8
|
|
1,352.7
|
|
-
|
|
1,352.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, selling
and general and administrative expenses (a)
|
|
1,201.2
|
|
1.0
|
|
1,202.2
|
|
1,241.6
|
|
6.3
|
|
1,247.9
|
|
Asset impairments and
other operating expenses (income), net (b)
|
|
(105.2)
|
|
105.2
|
|
-
|
|
36.7
|
|
(36.7)
|
|
-
|
|
Total operating
expenses
|
|
1,096.0
|
|
106.2
|
|
1,202.2
|
|
1,278.3
|
|
(30.4)
|
|
1,247.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
167.8
|
|
(106.2)
|
|
61.6
|
|
74.4
|
|
30.4
|
|
104.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(50.0)
|
|
-
|
|
(50.0)
|
|
(52.7)
|
|
-
|
|
(52.7)
|
|
Interest
income
|
|
32.2
|
|
-
|
|
32.2
|
|
32.8
|
|
-
|
|
32.8
|
|
Gain on
extinguishment of non-recourse debt (c)
|
|
-
|
|
-
|
|
-
|
|
670.8
|
|
(670.8)
|
|
-
|
|
Other income
(expense), net
|
|
(0.3)
|
|
-
|
|
(0.3)
|
|
0.4
|
|
-
|
|
0.4
|
|
|
(18.1)
|
|
-
|
|
(18.1)
|
|
651.3
|
|
(670.8)
|
|
(19.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
income
|
|
149.7
|
|
(106.2)
|
|
43.5
|
|
725.7
|
|
(640.4)
|
|
85.4
|
|
Income tax
expense
|
|
(68.7)
|
|
55.0
|
|
(13.6)
|
|
(272.3)
|
|
242.5
|
|
(29.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to OfficeMax and noncontrolling
interest
|
|
81.0
|
|
(51.2)
|
|
29.8
|
|
453.5
|
|
(397.8)
|
|
55.7
|
|
Joint venture results
attributable to noncontrolling interest
|
|
(2.8)
|
|
-
|
|
(2.8)
|
|
(3.3)
|
|
-
|
|
(3.3)
|
|
Net income
attributable to OfficeMax
|
|
78.2
|
|
(51.2)
|
|
27.0
|
|
450.1
|
|
(397.8)
|
|
52.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
dividends
|
|
(1.5)
|
|
-
|
|
(1.5)
|
|
(1.6)
|
|
-
|
|
(1.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to OfficeMax common shareholders
|
|
$
76.7
|
|
$
(51.2)
|
|
$
25.5
|
|
$
448.6
|
|
$
(397.8)
|
|
$
50.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
common share:
|
|
$
0.88
|
|
$
(0.59)
|
|
$
0.29
|
|
$
5.18
|
|
$
(4.60)
|
|
$
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
common share:
|
|
$
0.86
|
|
$
(0.58)
|
|
$
0.29
|
|
$
5.12
|
|
$
(4.52)
|
|
$
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
87,063
|
|
|
|
87,063
|
|
86,526
|
|
|
|
86,526
|
|
Diluted
|
|
88,692
|
|
|
|
88,692
|
|
87,979
|
|
|
|
87,458
|
|
|
|
Note: Totals may not
sum down or across due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The first
nine months of 2013 and 2012 include $1.0 million and $6.3 million,
respectively, of dividend income related to OfficeMax's non-voting
securities held in Boise Cascade Holdings, L.L.C. The
dividend income ceased in the first quarter of 2013 upon redemption
of those securities, therefore no additional dividend income was
recorded in the second and third quarters of 2013. The effect
of the dividends increased net income by $0.6 million and $3.8
million, or $0.01 and $0.05 per diluted share, for the first nine
months of 2013 and 2012, respectively.
|
|
|
(b) The first nine
months of 2013 include income of $137.5 million in our Corporate
segment associated with our investment in Boise Cascade Holdings,
L.L.C. for the partial recognition of the deferred gain, net of
fees, from the 2004 sale of our paper, forest products and
timberland assets and dividend income of $25.4 million from the
voting securities held in Boise Cascade Holdings, L.L.C. The first
nine months of 2013 also include charges of $49.1 million in our
Corporate segment for certain costs related to our pending merger
with Office Depot, portions of which may not be deductible for tax
purposes, $4.5 million of severance charges primarily related to
reorganizations in our Contract segment sales and supply chain
operations, and charges recorded in our Retail segment related to
store closures in the U.S. of $4.1 million. The first nine
months of 2012 include a non-cash charge of $9.8 million to impair
fixed assets associated with certain stores in the U.S. and charges
of $26.9 million related to store closures in the U.S. The
net effect of these items increased net income by $50.6 million, or
$0.57 per diluted share for the first nine months of 2013 and
reduced net income by $22.4 million, or $0.26 per diluted share,
for the first nine months of 2012.
|
|
|
(c) The first
nine months of 2012 include a non-cash gain of $670.8 million
related to an agreement that legally extinguished the Company's
non-recourse debt guaranteed by Lehman Brothers Holdings,
Inc. The gain increased net income available to OfficeMax
common shareholders by $416.4 or $4.73 per diluted
share.
|
|
OFFICEMAX
INCORPORATED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
NON-GAAP
RECONCILIATION - SALES
|
|
(unaudited)
|
|
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
September
28,
|
|
September
29,
|
|
Percent
|
|
|
2013
|
|
2012
|
|
Change
|
|
Sales as
reported
|
|
$
1,664.9
|
|
$
1,744.6
|
|
-4.6%
|
|
Adjustment for
unfavorable impact of change in foreign exchange rates
(a)
|
|
$
11.5
|
|
$
-
|
|
|
|
Adjustment for the
impact of closed and opened stores and the difference in business
days from year-to-year for businesses reporting on a calendar basis
(b)
|
|
$
(10.2)
|
|
$
(20.7)
|
|
|
|
Sales adjusted for
impact of change in foreign exchange rates, closed and opened
stores and change in number of business days
|
|
$
1,666.1
|
|
$
1,723.9
|
|
-3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
28,
|
|
September
29,
|
|
Percent
|
|
|
2013
|
|
2012
|
|
Change
|
|
Sales as
reported
|
|
$
4,964.6
|
|
$
5,219.9
|
|
-4.9%
|
|
Adjustment for
unfavorable impact of change in foreign exchange rates
(a)
|
|
$
6.0
|
|
$
-
|
|
|
|
Adjustment for the
impact of closed and opened stores and the difference in business
days from year-to-year for businesses reporting on a calendar basis
(b)
|
|
$
(27.2)
|
|
$
(73.3)
|
|
|
|
Sales adjusted for
impact of change in foreign exchange rates, closed and opened
stores and change in number of business days
|
|
$
4,943.5
|
|
$
5,146.6
|
|
-3.9%
|
|
|
|
Note: Totals may not
sum down due to rounding.
|
|
|
(a) Computed by
assuming constant currency exchange rates between
periods.
|
|
(b) Computed by
reducing current year and prior year sales for stores opened or
closed in the current or prior year and by adjusting prior year
sales to reflect the same number of business days in the current
year.
|
SOURCE OfficeMax Incorporated