Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ESSENDANT INC | d338688d8k.htm |
| EX-99.1 - PRESS RELEASE, DATED APRIL 23, 2012 - ESSENDANT INC | d338688dex991.htm |
 April 23, 2012
1
United Stationers Inc.
Earnings Presentation
First Quarter 2012
TO BE FILED IN
CONJUNCTION WITH
PRESS RELEASE
Exhibit 99.2 |
 April 23, 2012
2
Forward Looking Statements and
Non-GAAP Measures
This news release contains forward-looking statements, including references to goals, plans,
strategies, objectives, projected costs or savings, anticipated future performance, results or
events and other statements that are not strictly historical in nature. These statements are
based on management’s current expectations, forecasts and assumptions. This means they
involve a number of risks and uncertainties that could cause actual results to differ
materially from those expressed or implied here. These risks and uncertainties include, but are not limited
to the following: prevailing economic conditions and changes affecting the business products industry
and the general economy; United’s ability to effectively manage its operations and to
implement growth, cost-reduction and margin-enhancement initiatives; United’s reliance on
key customers, and the risks inherent in continuing or increased customer concentration; United’s
reliance on key suppliers and the supplier allowances and promotional incentives they offer;
United’s reliance on independent resellers for a significant percentage of its net sales and,
therefore, the importance of the continued independence, viability and success of these resellers;
continuing or increasing competitive activity and pricing pressures within existing or expanded
product categories, including competition from product manufacturers who sell directly to
United’s customers; the impact of a loss of, or substantial decrease in, the availability of
products or service from key vendors at competitive prices; United’s ability to maintain
its existing information technology systems and the systems and eCommerce services that it provides to
customers, and to successfully procure, develop and implement new systems and services without
business disruption or other unanticipated difficulties or costs; the creditworthiness of
United’s customers; United’s ability to manage inventory in order to maximize sales and supplier
allowances while minimizing excess and obsolete inventory; United’s success in effectively
identifying, consummating and integrating acquisitions; the risks and expense associated with
United’s obligations to maintain the security of private information provided by United’s
customers; the costs and risks related to compliance with laws, regulations and industry standards
affecting United’s business; the availability of financing sources to meet United’s
business needs; United’s reliance on key management personnel, both in day-to-day operations and in
execution of new business initiatives; and the effects of hurricanes, acts of terrorism and other
natural or man-made disruptions. Shareholders, potential investors and other readers are urged to consider these risks and
uncertainties in evaluating forward-looking statements and are cautioned not to place undue
reliance on the forward-looking statements. For additional information about risks and
uncertainties that could materially affect United’s results, please see the company’s
Securities and Exchange Commission filings. The forward-looking information in this
news release is made as of this date only, and the company does not undertake to update any forward-
looking statement. Investors are advised to consult any further disclosure by United regarding
the matters discussed in this release in its filings with the Securities and Exchange
Commission and in other written statements it makes from time to time. It is not possible to
anticipate or foresee all risks and uncertainties, and investors should not consider any list of risks
and uncertainties to be exhaustive or complete. *
This is non-GAAP information. A reconciliation of these items to the most comparable GAAP measures is presented on the company’s
Website (www.unitedstationers.com) under the Investor Information section. Except as noted, all
references within this presentation to financial results are presented in accordance with U.S.
Generally Accepted Accounting Principles.
Certain prior-period amounts have been reclassified to conform to the current presentation. |
 April 23, 2012
3
Q1 2012 Headlines
Sales increased 2.8% from Q1 2011 to $1.3 billion.
Adjusted earnings per diluted share were $0.45*, compared to an adjusted
Q1 2011 EPS of $0.47*.
Gross margin rate of 14.2% was down from 14.7% last year.
Adjusted operating expenses in Q1 2012 were $143.1 million*, compared
to an adjusted $140.7 million* in the prior-year quarter, and were 11.3%* of
sales, down from 11.4%* of sales in the prior-year quarter.
Adjusted operating income as a percent of sales was 3.0%*, down from last
year’s adjusted 3.4%*.
Adjusted net income was $19.0 million*, compared to an adjusted $22.1
million* in Q1 2011.
Net cash provided by operating activities was $27.9 million in Q1 2012.
Debt was up $15.4 million from December 31, 2011 to $512.2 million.
During the quarter, the Company repurchased 1.1 million shares for $33.6
million and paid a cash dividend of $5.4 million to common shareholders.
|
 April 23, 2012
4
First Quarter 2012 P&L
% to sales change
$
% to Sales
$
% to Sales
$ change
% change
Unfav
$ Millions (except EPS)
QTD Q1 2012
QTD Q1 2012
QTD Q1 2011
QTD Q1 2011
Fav (Unfav)
Fav (Unfav)
basis points
Net Sales
1,271.6
$
1,237.5
$
34.1
$
2.8%
Gross Margin
180.9
14.23%
182.4
14.74%
(1.5)
(0.8%)
(51)
Operating Expense
149.3
11.74%
142.4
11.50%
(6.9)
(4.8%)
(24)
Operating Income
31.6
2.49%
40.0
3.24%
(8.4)
(21.0%)
(75)
Interest & Other
7.2
0.57%
6.8
0.55%
(0.4)
(5.9%)
(2)
Taxes
9.3
0.74%
12.8
1.04%
3.5
27.3%
30
Net Income
15.1
$
1.18%
20.4
$
1.65%
(5.3)
$
(26.0%)
(47)
Diluted Shares (000s)
42,420
46,656
Diluted EPS
0.36
$
0.44
$
(0.08)
$
(18.2%)
Adjusted to exclude non-operating items *
Adjusted Operating Expenses
143.1
$
11.25%
140.7
$
11.37%
2.4
$
1.7%
(12)
Adjusted Operating Income
37.8
2.98%
41.6
3.37%
(3.8)
(9.1%)
(39)
Adjusted Net Income
19.0
1.49%
22.1
1.79%
(3.1)
(14.0%)
(30)
Adjusted Diluted EPS
0.45
$
0.47
$
(0.02)
$
(4.3%) |
 April 23, 2012
5
Sales
by Product Category –
Q1 2012 |
  April
23, 2012 6
Sales by Channel –
Q1 2012
Sales growth
Sales growth
Sales growth
Sales growth
(decline)
(decline)
(decline)
(decline)
Sales growth
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Channel
vs Q1 2011
vs Q4 2010
vs Q3 2010
vs Q2 2010
vs Q1 2010
Independent
& Other
6.0%
4.6%
5.7%
4.4%
6.2%
Nationals
(14.9%)
(17.5%)
(12.1%)
(5.6%)
2.0%
Independent
& Other
87%
Nationals
13%
Q1 2012 |
 April 23, 2012
7
Gross Margin
dollars in millions
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Dollars
$182.4
$184.2
$199.7
$173.7
$180.9
Rate
14.7%
14.7%
15.3%
14.5%
14.2%
10.0%
12.5%
15.0%
17.5%
20.0%
$-
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0
$175.0
$200.0 |
 April 23, 2012
8
Adjusted Operating Expense*
dollars in millions
Q1 11 *
Q2 11 *
Q3 11
Q4 11 *
Q1 12 *
Dollars
$140.7
$132.0
$135.1
$128.6
$143.1
Rate
11.4%
10.5%
10.3%
10.7%
11.3%
7.5%
10.0%
12.5%
15.0%
$-
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0 |
 April 23, 2012
9
Adjusted Operating Income*
dollars in millions
Q1 11 *
Q2 11 *
Q3 11
Q4 11 *
Q1 12 *
Dollars
$41.6
$52.2
$64.6
$45.2
$37.8
Rate
3.4%
4.2%
4.9%
3.8%
3.0%
2.0%
3.0%
4.0%
5.0%
6.0%
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0 |
 April 23, 2012
10
Adjusted Earnings per Share*
shares in millions
Q1 11 *
Q2 11 *
Q3 11
Q4 11 *
Q1 12 *
EPS
$0.47
$0.59
$0.81
$0.64
$0.45
Diluted Shares
46.656
46.340
44.202
43.010
42.420
-
1.000
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90 |
 April 23, 2012
11
Working Capital Summary
$ Millions
3/31/2011
6/30/2011
9/30/2011
12/31/2011
3/31/2012
Accounts Receivable
648.1
$
669.5
$
699.2
$
659.2
$
642.0
$
Inventories (LIFO)
636.2
632.1
615.5
741.5
672.3
Accounts Payable
422.4
443.5
410.8
499.3
433.7
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Net Trade A/R DSO
41
41
42
42
40
Inventory Turns
6.4
6.8
7.1
6.1
6.2
A/P as % Inventory (LIFO)
66%
70%
67%
67%
65%
A/P as % Inventory (FIFO)
58%
61%
58%
60%
56% |
 April 23, 2012
12
Cash Flows
QTD
QTD
QTD
QTD
QTD
$ Millions
Q1 11
Q2 11
Q3 11
Q4 11
2011
Q1 12
Net Income
20.4
$
24.9
$
35.8
$
27.9
$
109.0
$
15.1
$
Depreciation & Amortization
9.0
8.9
8.7
8.4
35.0
8.8
Share-based compensation
3.7
6.7
2.7
2.6
15.7
1.9
Writedown on impaired assets
1.6
-
-
-
1.6
-
Change in Accounts Receivable
(19.8)
(21.3)
(30.6)
40.0
(31.7)
17.6
Change in Inventory
48.2
4.3
15.2
(126.1)
(58.4)
70.0
Change in Accounts Payable
1.0
21.0
(33.1)
88.5
77.4
(65.3)
Change in Other Working Capital
(18.7)
(3.3)
21.7
(17.0)
(17.3)
(2.4)
Change in Working Capital
10.7
0.7
(26.8)
(14.6)
(30.0)
19.9
Other
(4.4)
(8.9)
5.8
6.6
(0.9)
(17.8)
Adjusted cash provided by operating
activities
41.0
32.3
26.2
30.9
130.4
27.9
Capital Expenditures
(9.8)
(6.4)
(4.6)
(7.2)
(28.0)
(4.5)
Proceeds from disposition of fixed assets
-
-
0.1
-
0.1
0.1
Net cash used for capital expenditures *
(9.8)
(6.4)
(4.5)
(7.2)
(27.9)
(4.4)
Free Cash Flow *
31.2
$
25.9
$
21.7
$
23.7
$
102.5
$
23.5
$ |
 April 23, 2012
13
Debt and Capitalization
$ Millions
3/31/2011
6/30/2011
9/30/2011
12/31/2011
3/31/2012
Debt
441.8
$
441.8
$
489.7
$
496.8
$
512.2
$
Equity
769.7
752.7
721.2
704.7
682.6
Total capitalization
1,211.5
$
1,194.5
$
1,210.9
$
1,201.4
$
1,194.8
$
Debt-to-total capitalization
36.5%
37.0%
40.4%
41.3%
42.9% |