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OFFICE DEPOT REPORTS 40 PCT. INCREASE IN SALES, 87 PCT. INCREASE IN NET EARNINGS, 69 PCT. INCREASE IN EARNINGS PER SHARE FOR FOURTH QUARTER 1992

 DELRAY BEACH, Fla., Feb. 8 /PRNewswire/ -- Office Depot, Inc. (NYSE: ODP), the largest office products superstore chain in North America, today reported earnings of $13,628,000 ($.22 per share) for the fourth quarter of 1992, compared to $7,281,000 ($.13 per share) in the fourth quarter of 1991.
 Sales for the fourth quarter of 1992 rose 40 percent to $478,037,000, compared to $341,048,000 for the fourth quarter of 1991. Operating profit increased 72 percent to $20,137,000 in the fourth quarter of 1992 from $11,696,000 in 1991. Earnings per share for the fourth quarter of 1992 was $.22, compared to $.13 in 1991. Earnings per share include extraordinary credits of $.02 in 1992 and $.01 in 1991 relating to utilization of net operating loss carryforwards.
 Comparable store sales in the fourth quarter of 1992 increased 22 percent for the 226 stores which were open for more than one year. Comparable store sales increased 15 percent for the year.
 For 1992, the company reported sales of $1,732,965,000, a 33 percent increase over 1991 sales of $1,300,847,000. Operating profit for 1992 was $62,209,000, a 63 percent increase over the $38,057,000 reported in 1991. Net earnings for 1992 rose 161 percent to $39,188,000 in 1992, from $14,991,000 in 1991. Earnings and earnings per share for 1991 were impacted by a $.14 per share one-time charge relating to $8,950,000 in merger costs associated with the acquisition of The Office Club, Inc.
 Earnings per share for 1992, including an extraordinary credit of $.02 per share, was $.64, compared to $.28, including an extraordinary credit of $.01 per share in 1991. If merger costs and related tax credits are excluded, the company's earnings for 1991 would have been $22,401,000 ($.42 per share).
 As of Dec. 26, 1992, the company operated 284 stores, including 277 in the United States and seven in Canada.
 David I. Fuente, chairman and chief executive officer of Office Depot, Inc. commented, "We are very pleased with the strength of the fourth quarter and of 1992. This has been both a challenging and satisfying year."
 Fuente noted that the company had accomplished several major goals in 1992:
 -- Successful completion of the conversion of all Office Club stores to Office Depot stores.
 -- Entrance into the Canadian market via acquisition of five stores and two lease locations of the Great Canadian Office Supplies Warehouse chain in western Canada.
 -- In addition to the five stores acquired in Canada, the company achieved its expansion plans by opening 53 additional stores in 1992, including entering the Washington, D.C. and Chicago markets.
 -- The company completed a public offering in the fourth quarter of Liquid Yield Option Notes ("LYONs"), which provided the company with net proceeds of approximately $146 million. Proceeds from the offering will be used to finance the company's expansion and related working capital requirements.
 -- The company opened three delivery centers in the Atlanta, Baltimore and Los Angeles markets, adding to the two existing delivery centers in the San Francisco and South Florida markets.
 Office Depot has opened nine stores since Dec. 26, 1992, bringing the number of stores currently in operation to 293.
 The company is traded in the New York Stock Exchange under the symbol "ODP" and is included in the Standard and Poor's Mid Cap Index.
 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. 26, Dec. 28, Dec. 26, Dec. 28,
 1992 1991 1992 1991
 Sales $478,037 $341,048 $1,732,965 $1,300,847
 Cost of goods
 sold and
 occupancy costs 368,283 262,451 1,334,305 1,001,484
 Gross profit 109,754 78,597 398,660 299,363
 Store operating
 and selling
 expenses 72,275 54,657 275,016 214,525
 Pre-opening
 expenses 2,289 2,474 7,453 7,774
 General and
 administrative
 expenses 15,053 9,770 53,982 39,007
 89,617 66,901 336,451 261,306
 Operating profit 20,137 11,696 62,209 38,057
 Merger Costs --- --- --- 8,950
 Interest expense
 (income), net 214 536 156 2,235
 Earnings before
 income taxes and
 extraordinary
 credit 19,923 11,160 62,053 26,872
 Income taxes 7,691 4,430 24,261 12,495
 Earnings before
 extraordinary
 credit 12,232 6,730 37,792 14,377(A)
 Extraordinary
 credit 1,396 551 1,396 614
 Net earnings $13,628 $7,281 $39,188 $14,991(A)
 Earnings per
 common and common
 equivalent share
 Earnings before
 extraordinary
 credit $ 0.20 $ 0.12 $0.62 $0.27(A)
 Extraordinary
 credit 0.02 0.01 0.02 0.01
 Net earnings $ 0.22 $ 0.13 $0.64 $0.28(A)
 Average common
 and common
 equivalent
 shares 61,611 55,932 61,139 52,816
 (A) -- Includes merger costs of $8,950,000 ($.14 per share). Excluding merger costs and their related tax effect, earnings would have been $22,401,000 ($.42 per share) for 1991.
 -0- 2/8/93
 /CONTACT: Barry Goldstein, executive vice president/CFO, 407-265-4237 or Gary Schweikhart, public relations manager, 407-265-4399, both of Office Depot/
 (ODP)


CO: Office Depot, Inc. ST: Florida IN: REA SU: ERN

AW-JB -- FL003 -- 3936 02/08/93 09:02 EST
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