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OFFICE DEPOT ANNOUNCES INCREASE IN SALES, NET EARNINGS, AND EARNINGS PER SHARE FOR FOURTH QUARTER 1991

 OFFICE DEPOT ANNOUNCES INCREASE IN SALES, NET EARNINGS,
 AND EARNINGS PER SHARE FOR FOURTH QUARTER 1991
 DELRAY BEACH, Fla., Feb. 4 /PRNewswire/ -- Office Depot, Inc. (NYSE: ODP), the nation's largest chain of office products superstores, announced that fourth quarter 1991 sales increased 31 percent, operating profit increased 93 percent, net earnings increased 94 percent and earnings per share were up 73 percent compared with the same period last year. For the year ended Dec. 28, 1991, earnings per share were adversely impacted by one-time costs of $8,950,000 ($.28 per share) associated with the acquisition of The Office Club, Inc. in the second quarter.
 On April 10, 1991, the company acquired all of the outstanding stock of The Office Club, Inc. in a transaction accounted for as a pooling of interests. Accordingly, all financial data for periods prior to the acquisition have been restated to include the operations of The Office Club, Inc.
 Net sales for the fourth quarter 1991 were $341,048,000, compared to $259,887,000 during the same quarter last year. Operating profit for the fourth quarter 1991 was $11,696,000, compared to $6,056,000 in 1990. Net earnings for the fourth quarter 1991 were $7,281,000 compared to $3,749,000 for the same quarter in 1990. Earnings per share for the fourth quarter 1991 was $.26, compared to 1990's $.15. Earnings per share for the fourth quarter 1991 before an extraordinary credit associated with the utilization of net operating loss carryforwards was $.24, compared to 1990's $.13.
 For 1991, the company reported net sales of $1,300,847,000 a 44 percent increase over the $903,306,000 in sales for 1990. Operating profit for 1991 was $38,057,000, a 93 percent increase over 1990's operating profit of $19,722,000. Net earnings for 1991 were $14,991,000 after a charge for merger costs of $8,950,000 compared with net earnings of $12,547,000 for 1990.
 Earnings per share for 1991 was $.56, compared to $.52 for the preceeding year. The earnings per share for 1991 was impacted by one-time costs in the second quarter associated with the acquisition of The Office Club, Inc. If this one-time cost of $.28 per share was excluded, the earnings per share for 1991 would have been $.84, a 62 percent increase over the earnings per share for 1990.
 David I. Fuente, chairman and chief executive officer of Office Depot, commented: "We are very pleased that 1991 was a successful year for Office Depot. We were able to significantly improve our operating results in spite of a sluggish retail environment."
 Fuente stated that the company had accomplished several major goals in 1991, particularly during the fourth quarter:
 -- Office Depot completed the integration of all of the West Coast-based Office Club stores. The company also refined the merchandise assortment company-wide so that all Office Depot and Office Club stores are carrying the same 5,100 products. To ensure that they would be ready for the peak office products buying season in January, the company completed an ambitious remodeling effort in all Office Club stores during the fourth quarter. These efforts should result in incremental sales, higher total gross margins and enhanced productivity in the Office Club stores.
 -- Office Depot completed 1991 with its expansion plans right on track. At Dec. 28, 1991, the company operated 228 stores in 29 states. The company opened 57 stores in 1991 and 15 stores in the fourth quarter of 1991. The comparable store sales for the 173 stores which were open for more than one year increased 7 percent.
 -- Office Depot completed a public offering of 2,300,000 shares of common stock in the fourth quarter, raising more than $92 million, providing the company with a strong financial base of approximately $305 million of stockholders' equity and less than $10 million of long-term debt. The proceeds from this offering are being used to finance new store openings and related working capital requirements and to repay bank debt incurred under the company's revolving credit facility. Office Depot has announced plans to open an additional 50 to 60 stores in 1992.
 Office Depot has opened 10 new stores since Dec. 28, 1991, bring the number of stores currently in operation to 238.
 OFFICE DEPOT, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 (in thousands except per share amounts)
 13 Weeks 13 Weeks 52 Weeks 52 Weeks
 Ended Ended Ended Ended
 Dec. 28, Dec. 29, Dec. 28, Dec. 29,
 1991 1990 1991 1990
 Sales $ 341,048 $ 259,887 $1,300,847 $ 903,306
 Cost of goods sold
 and occupancy
 costs 262,451 198,755 1,001,484 699,309
 Gross Profit 78,597 61,132 299,363 203,997
 Store operating and
 selling expenses 54,657 44,049 214,525 146,907
 Pre-opening expenses 2,474 2,437 7,774 8,838
 General and
 administrative
 expenses 9,770 8,590 39,007 28,530
 66,901 55,076 261,306 184,275
 Operating
 profit 11,696 6,056 38,057 19,722
 Merger Costs -- -- 8,950 --
 Interest expense
 (income), net 536 484 2,235 909
 Earnings before income
 taxes and extraordinary
 credit 11,160 5,572 26,872 18,813
 Income taxes 4,430 2,233 12,495 7,329
 Earnings before
 extraordinary
 credit 6,730 3,339 14,377 (A) 11,484
 Extraordinary credit 551 410 614 1,063
 Net earnings $ 7,281 $ 3,749 $ 14,991 (A) $ 12,547
 Earnings per common
 and common
 equivalent share
 Earnings before
 extraordinary
 credit $ 0.24 $ 0.13 $ 0.54 (A) $ 0.48
 Extraordinary credit 0.02 0.02 0.02 0.04
 Net earnings $ 0.26 $ 0.15 $ 0.56 (A) $ 0.52
 Average common and
 common equivalent
 shares 27,966 24,522 26,726 23,902
 (A) -- Includes merger costs of $8,950 ($.28 per share) recorded in the second quarter of 1991. Excluding merger costs and their related tax effect, earnings before extraordinary credit would be $21,787 ($.82 per share) for 1991.
 -0- 2/4/92
 /CONTACT: Barry J. Goldstein, chief financial officer of Office Depot, Inc., 407-265-4237/
 (ODP) CO: Office Depot, Inc. ST: Florida IN: REA SU: ERN


AW-CF -- FL001 -- 6531 02/04/92 09:11 EST
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Date:Feb 4, 1992
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