Corporate Express announces third quarter results, significant increase in operating profit; Net income and EPS revenues triple.BROOMFIELD, Colo.--(BUSINESS WIRE)--Jan. 13, 1995--Corporate Express Inc., a leading supplier of office products to large corporations, announced the results of its third quarter ended Nov. 30, 1994. Net income of $1.9 million and $2.4 million for the three and nine month fiscal periods ending Nov. 30, 1994 compares to net losses of $1.5 million and $3.8 million for the comparable fiscal 1993 periods. Earnings per share were $.07 and $.11 for the three and nine month fiscal 1994 periods compared to a loss of $.09 and $.23 for the comparable fiscal 1993 periods. Sales increased to $161.4 million for the three months ended Nov. 30, 1994 from $44.6 million in the three months ended Nov. 30, 1993 and increased to $446.3 million for the nine months ended Nov. 30, 1994 from $118.1 million for the nine months ended Nov. 30, 1993. This increase was primarily attributable to the acquisition of the Hanson Office Products Group on Feb. 28, 1994 and the company's entry into the Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern , Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Texas and Florida regions through acquisitions which closed in May 1993, September 1993, June 1994, July 1994 and August 1994, respectively. Also contributing to the sales increase was solid internal growth in existing operations and three acquisitions in the second fiscal quarter of 1994 being integrated with existing operations. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $5.1 million and $11.7 million for the three and nine months ended Nov. 30, 1994, respectively, compare to $786,000 and $507,000 for the same periods in the previous year. As a percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , operating profit increased to 3.2% and 2.6% for the three month and nine month periods ending Nov. 30, 1994 from 1.8% and 0.4% for the same periods of the previous year. The company converted all regional companies to the same merchandise in November as planned. All of the regions now can provide customers with the same catalogue and product selection and are operating under the Corporate Express name. "The results of our most recent quarter reflect the strength of our business and operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. ," explained Jirka Rysavy, chairman and chief executive officer. "The improvements reflect faster than planned operating profit increases at the Company regions that have been fully converted to the Corporate Express business model, as well as contributions from more recently acquired companies." On Sept. 30, 1994, the company sold 7 million primary shares in an initial public offering of its common stock, and selling shareholders sold 1.6 million shares at a price of $16.00 per share. The $103 million of net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the company from the offering were used to repay debt with the remaining proceeds available to finance the company's expansion, including acquisitions, working capital and general corporate purposes. Corporate Express sells and distributes office supplies Office supplies is the generic term that refers to all supplies regularly used in offices by businesses and other organizations, from private citizens to governments, who works with the collection, refinement, and output of information (colloquially referred to as "paper work"). and products to large corporations across the nation. Customers select desired products from the company's proprietary, full-color In-Stock Catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. and place orders by telephone, fax or electronic data interchange See EDI. (application, communications) electronic data interchange - (EDI) The exchange of standardised document forms between computer systems for business use. EDI is part of electronic commerce. (EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. ), and receive free, next day delivery via the company's fleet of trucks. Corporate Express was founded in 1986 in Boulder Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo. by Rysavy, its chairman and chief executive officer. The company operates 19 regional warehouses and 57 satellite sales offices and distribution breakpoints, and employs approximately 3,100 people. -0-
Corporate Express Inc.
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Nine Months Ended Three Months Ended
Nov. 30, Ended Nov. 30,
1994 1993 1994 1993
(unaudited) (unaudited)
Net Sales $446,345 $118,112 $161,421 $ 44,570 Cost of Sales 331,086 89,718 118,381 33,884 Gross Profit 115,259 28,394 43,040 10,686 Warehouse operating and selling expenses 90,533 22,550 31,737 8,313 New warehouse assimilation expenses 3,050 1,746 1,403 321 Corporate general and administrative expense 9,950 3,591 4,770 1,266 Operating profit 11,726 507 5,130 786 Interest expense, net 9,466 2,150 2,805 768 Other expense 104 1,045 64 401 Income (loss) before income taxes 2,156 (2,688) 2,261 (383) Income tax expense (349) -- (404) -- Income (loss) before extraordinary item 1,807 (2,688) 1,857 (383) Extraordinary item: Early extinguishment of debt (net of tax) 586 (1,169) -- (1,169) Net income (loss) $ 2,393 $(3,857) $ 1,857 $ (1,552) Net income (loss) per share(a) $ .11 $ (.23) $ .07 $ (.09) Weighted average common shares outstanding 21,037,000 16,460,000 25,649,000 16,970,000 (a) Adjusted to reflect conversion of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. The accomanying notes are an integral part of the consolidated financial statement Consolidated financial statement A financial statement that shows all the assets, liabilities, and operating accounts of a parent company and its subsidiaries. . CONTACT: Corporate Express, Broomfield Rick Roth, 303/373-7625 |
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