Back to GetFilings.com



 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended:    April 30, 2005

 

Commission File Number:          0-17586

 

STAPLES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

 

04-2896127

(State or other jurisdiction of
Identification No.)

 

 

(I.R.S. Employer
Identification No.)

 

 

 

 

 

Five Hundred Staples Drive, Framingham, MA 01702

(Address of principal executive office and zip code)

 

 

 

 

 

508-253-5000

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

 

Yes     ý        No     o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

 

Yes     ý         No     o

 

The registrant had 736,620,241 shares of Staples common stock outstanding as of May 13, 2005.

 

 


 

STAPLES, INC. AND SUBSIDIARIES

FORM  10-Q
April 30, 2005
TABLE OF CONTENTS
 

 

Part I – Financial Information:

 

 

 

Item 1. Financial Statements (unaudited):

 

Consolidated Balance Sheets

 

Consolidated Statements of Income

 

Consolidated Statements of Cash Flows

 

Notes to Consolidated Financial Statements

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

 

 

Item 4. Controls and Procedures

 

 

 

Part II – Other Information

 

 

 

Signature

 

 

 

Exhibit Index

 

 

2


 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

STAPLES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollar Amounts in Thousands, Except Share Data)

 

 

 

April 30,
2005

 

January 29,
2005

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

816,180

 

$

997,310

 

Short-term investments

 

456,119

 

472,231

 

Receivables, net

 

523,492

 

485,126

 

Merchandise inventories, net

 

1,564,987

 

1,602,530

 

Deferred income tax asset

 

100,256

 

86,041

 

Prepaid expenses and other current assets

 

133,317

 

138,374

 

Total current assets

 

3,594,351

 

3,781,612

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

Land and buildings

 

653,858

 

649,175

 

Leasehold improvements

 

772,706

 

762,946

 

Equipment

 

1,157,763

 

1,140,234

 

Furniture and fixtures

 

612,597

 

597,293

 

Total property and equipment

 

3,196,924

 

3,149,648

 

Less accumulated depreciation and amortization

 

1,608,267

 

1,548,774

 

Net property and equipment

 

1,588,657

 

1,600,874

 

 

 

 

 

 

 

Lease acquisition costs, net of accumulated amortization

 

38,530

 

38,400

 

Intangible assets, net of accumulated amortization

 

230,490

 

222,520

 

Goodwill

 

1,335,416

 

1,321,464

 

Other assets

 

78,358

 

106,578

 

Total assets

 

$

6,865,802

 

$

7,071,448

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,212,831

 

$

1,241,433

 

Accrued expenses and other current liabilities

 

888,417

 

954,184

 

Debt maturing within one year

 

1,165

 

1,244

 

Total current liabilities

 

2,102,413

 

2,196,861

 

 

 

 

 

 

 

Long-term debt

 

541,160

 

557,927

 

Deferred income tax liability

 

34,096

 

23,314

 

Other long-term obligations

 

191,984

 

178,150

 

 

 

 

 

 

 

Minority interest

 

4,319

 

—

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, $.01 par value, 5,000,000 shares authorized; no shares issued

 

—

 

—

 

Common stock, $.0006 par value, 2,100,000,000 shares authorized; issued 815,300,058 shares at April 30, 2005 and 813,049,136 shares at January 29, 2005

 

489

 

488

 

Additional paid-in capital

 

2,300,359

 

2,254,947

 

Cumulative foreign currency translation adjustments

 

100,830

 

114,427

 

Retained earnings

 

2,854,673

 

2,818,163

 

Less: Treasury stock at cost - 77,661,461 shares at April 30, 2005, and 68,547,587 shares at January 29, 2005

 

(1,264,521

)

(1,072,829

)

Total stockholders’ equity

 

3,991,830

 

4,115,196

 

Total liabilities, minority interest and stockholders’ equity

 

$

6,865,802

 

$

7,071,448

 

 

See notes to consolidated financial statements.

 

3


 

STAPLES, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Dollar Amounts in Thousands, Except Per Share Data)

(Unaudited)

 

 

 

13 Weeks Ended

 

 

 

April 30,
2005

 

May 1,
2004

 

 

 

 

 

 

 

Sales

 

$

3,899,052

 

$

3,452,155

 

Cost of goods sold and occupancy costs

 

2,836,520

 

2,516,530

 

Gross profit

 

1,062,532

 

935,625

 

 

 

 

 

 

 

Operating and other expenses:

 

 

 

 

 

Operating and selling

 

645,539

 

587,280

 

General and administrative

 

162,745

 

144,442

 

Amortization of intangibles

 

3,402

 

1,989

 

Total operating expenses

 

811,686

 

733,711

 

 

 

 

 

 

 

Operating income

 

250,846

 

201,914