Exhibit 99.1
| | | | |
W6316 Design Drive, Greenville, WI 54942 P.O. Box 1579, Appleton, WI 54912-1579 | | FOR IMMEDIATE RELEASE THURSDAY, February 21, 2008 |
| | Contacts: Kevin Baehler VP & Interim CFO 920-882-5882 | | Mark Fleming
Communications & Investor Relations 920-882-5646 |
SCHOOL SPECIALTY REPORTS FISCAL 2008 THIRD QUARTER RESULTS
| | • | | Record third quarter revenue of $134.8 million, up 4.7 percent |
| | • | | Management maintains current fiscal 2008 revenue and diluted earnings per share guidance |
| | • | | Initial guidance for fiscal 2009 issued |
Greenville, WI, February 21, 2008—School Specialty (NASDAQ:SCHS), a leading education company providing supplemental learning products to the preK-12 market, today reported fiscal 2008 third quarter and fiscal year-to-date financial results. Revenue for the third quarter was $134.8 million, an all-time high for the period and 4.7 percent above the prior-year’s third quarter. Loss per share from continuing operations was 95 cents, reflecting the seasonally low period for educational product sales and increased selling, general and administrative (SG&A) expense as compared to the prior year. For the prior-year third quarter, the company reported a loss per share from continuing operations of 79 cents. Revenue for the nine-month period of fiscal 2008 rose 4.2 percent to a record $914.3 million, compared to $877.1 million in the same period last year. Diluted earnings per share from continuing operations rose 25.2 percent in the first nine months to $2.78 compared to $2.22 in the prior year.
“Our associates performed exceptionally well throughout the first three quarters of our fiscal 2008,” noted Chief Executive Officer David Vander Zanden. “Their dedication to serving customers and their efforts to advance our operational initiatives allowed us to report all-time highs in year-to-date revenue and earnings. In the third quarter, we achieved revenue growth in both our Specialty and Essentials segments. SG&A costs, while up in this year’s third quarter, were in line with our expectations as we planned on an increase in the quarter in order to support our business system conversion, higher sales volume and increased performance-based compensation expense. Overall, we continue to be pleased with our execution and focus on managing our SG&A costs. As a result of our third quarter results and outlook for the fourth quarter, we are maintaining our previous revenue and earnings guidance for fiscal 2008.”
Third Quarter Financial Results
Revenue for the third quarter of fiscal 2008 rose 4.7 percent from $128.8 million to $134.8 million. Specialty segment revenue grew $5.6 million, or 7.5 percent, from $74.9 million in the third quarter of fiscal 2007 to $80.5 million in the third quarter of fiscal 2008. The Specialty segment had incremental state adoption revenue of approximately $3 million in the third quarter related to the company’s science curriculum offerings, which was offset by a comparable decline in mass-merchant retail sales. The remaining increase was attributable to approximately 8 percent revenue growth in the core Specialty businesses. Essentials segment revenue grew 1.5 percent in the quarter from $56.7 million in last year’s third quarter to $57.5 million this year, primarily related to the furniture business with consumables flat to the prior year. Consolidated gross margin was 38.3 percent for the third quarter of fiscal 2008 as compared to 39.5 percent for the third quarter of fiscal 2007. Specialty gross margin declined 70 basis points from 45.3 percent to 44.6 percent. This decline was attributable to a $0.6 million inventory charge
related to the company’s decision to terminate an unfavorable distribution agreement. The Essentials gross margin was 28.7 percent in the third quarter of fiscal 2008 compared to 30.2 percent in fiscal 2007. The decrease in the Essentials gross margin was attributable to a shift in revenue mix toward furniture projects.
Operating loss for the quarter was $24.9 million compared to an operating loss of $20.7 million in the third quarter of fiscal 2007. SG&A expense increased from $71.6 million in the third quarter of fiscal 2007 to $76.6 million in the third quarter of fiscal 2008. This planned increase in SG&A expense was related to the additional variable SG&A costs to support the revenue increase, incremental costs to support the business system conversion and incremental variable compensation costs related to performance-based compensation plans.
The loss from continuing operations was $19.0 million in the third quarter of fiscal 2008 compared to an operating loss of $16.9 million in fiscal 2007. The loss per share from continuing operations was $0.95 in the third quarter of fiscal 2008 versus $0.79 in fiscal 2007. Approximately $0.05 of this decrease is related to the decreased share count in the third quarter of fiscal 2008 due to stock repurchases offset by shares issued upon the exercise of stock options. Net loss for the third quarter of fiscal 2008 was $20.3 million, which included a net of tax loss from the discontinued School Specialty Media (SSM) business of $1.2 million, compared to a net loss of $18.8 million in fiscal 2007, which included a net of tax loss of $1.9 million for SSM. The net loss per share in the third quarter of fiscal 2008 was $1.01 as compared to $0.88 in last year’s third quarter.
During fiscal 2008’s third quarter, the company repurchased $15.3 million of its outstanding common stock.
Nine Month Financial Results
Revenue for the first nine months of fiscal 2008 was a record $914.3 million, up $37.2 million or 4.2 percent from $877.1 million in the first nine months of fiscal 2007. Specialty segment revenue grew 11.9 percent in the first nine months of fiscal 2008 to $545.4 million from $487.6 million in the first nine months of fiscal 2007. The Specialty segment revenue growth in the first nine months was primarily due to science curriculum sales involving state adoptions, which increased approximately $46 million over the prior year. The remaining Specialty segment units, excluding the mass-merchant retail business, had revenue growth in the first nine months of approximately 5 percent. The Essentials segment revenue for the first nine months of fiscal 2008 was down 4.9 percent to $383.8 million from $403.6 million in the first nine months of fiscal 2007. This decline was attributable to a reduction in school rebuilding activity in Louisiana, the elimination of an unproductive catalog, and the decision to not pursue low-margin bid business.
Gross margin improved by 30 basis points in the first nine months from 42.6 percent to 42.9 percent. The increased gross margin was related to a shift in revenue mix toward the Specialty segment, which historically has higher gross margins than the Essentials segment. Revenue from the Specialty segment, net of intercompany eliminations, increased to approximately 58 percent of total revenue in the first nine months of fiscal 2008 as compared to approximately 54 percent in the first nine months of fiscal 2007.
SG&A expense as a percent of revenue decreased from 30.6 percent in the first nine months of fiscal 2007 to 30.2 percent in the first nine months of fiscal 2008. SG&A expense increased $8.1 million from $268.3 million in fiscal 2007 to $276.4 million this year. The increase in SG&A is attributable to the additional variable selling and distribution expenses associated with the revenue growth, incremental costs to support the business system conversion and increased variable performance-based compensation costs. Partially offsetting these increases were efficiencies realized in our supply chain and other cost-reduction efforts. Operating income in the first nine months was 12.7 percent of revenue as compared to 12.0 percent of revenue in the first nine months of fiscal 2007. Earnings from continuing operations increased 15.9 percent from $50.5 million in the first nine months of fiscal 2007 to $58.5 million in fiscal 2008.
Diluted earnings per share from continuing operations increased 25.2 percent from $2.22 in fiscal 2007 to $2.78 in fiscal 2008. Approximately $0.21 of this increase is related to the decreased share count. The reduction in the share count is due to stock repurchases offset by stock option activity.
Diluted earnings per share, which includes the discontinued SSM business, increased to $2.69 per share in the first nine months of fiscal 2008 from $2.07 in the first nine months of fiscal 2007, a 30.0 percent increase. Net income increased 19.9 percent to $56.6 million in the first nine months of fiscal 2008, which includes a net of tax loss of $1.9 million from SSM, compared with the prior year’s $47.2 million, which includes a net of tax loss of $3.2 million from SSM.
During the first nine months of fiscal 2008, the company repurchased $60.3 million of its outstanding common stock. Since the beginning of fiscal 2007, the company has repurchased $136.8 million of its outstanding common stock.
Outlook
School Specialty is reaffirming its most recent fiscal 2008 revenue guidance of $1.08 billion to $1.10 billion and diluted earnings per share from continuing operations guidance for fiscal 2008 of $2.15 to $2.25. The company continues to expect free cash flow in fiscal 2008 to be in the range of $70 million to $80 million, or $3.33 to $3.81 of free cash flow per diluted share using the average diluted share count for the first nine months of fiscal 2008.
For fiscal 2009, the company is expecting revenue growth of 3 percent to 5 percent, excluding the impact of state adoption revenues of the company’s science curriculum. State adoption revenue, which was up approximately $46 million in fiscal 2008, primarily related to California, is expected to decline by approximately $35 million in fiscal 2009. Thus, total revenue for fiscal 2009 compared to fiscal 2008, including adoptions in both years, is expected to be in the range of a 1 percent decline to a 2 percent increase. The company is expecting an increase in fiscal 2009 diluted earnings per share of 3 percent to 10 percent. Fiscal 2009 free cash flow is expected to be between $75 million and $85 million.
Conference Call
Investors have the opportunity to listen to School Specialty’s fiscal 2008 third quarter conference call live over the Internet through Vcall at www.vcall.com. The conference call begins today, February 21, at 10:00 a.m. Central Time. To listen, go to the Vcall website at least 15 minutes before the start of the call to register, download and install any necessary audio software. A replay will be available shortly after the call is completed and for the week that follows. A transcript will be available within two days of the call. The conference call will also be accessible through the Investor Information section of the School Specialty corporate web site at www.schoolspecialty.com.
About School Specialty, Inc.
School Specialty is a leading education company that provides innovative and proprietary products, programs and services to help educators engage and inspire students of all ages and abilities to learn. The company designs, develops, and provides preK-12 educators with the latest and very best curriculum, supplemental learning resources, and school supplies. Working in collaboration with educators, School Specialty reaches beyond the scope of textbooks to help teachers, guidance counselors and school administrators ensure that every student reaches his or her full potential.
For more information about School Specialty, visit www.schoolspecialty.com.
Cautionary Statement Concerning Forward-Looking Information
Any statements made in this press release about future results of operations, expectations, plans, prospects or any guidance put forth in the “Outlook” section constitute forward-looking statements. Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “should,” “plans,” “targets” and/or similar expressions. These forward-looking statements are based on School Specialty’s current estimates and assumptions and, as such, involve uncertainty and risk. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those contemplated by the forward-looking statements because of a number of factors, including the factors described in Item 1A of School Specialty’s Annual Report on Form 10-K for the fiscal year ended April 28, 2007, which factors are incorporated herein by reference. Except to the extent required under the federal securities laws, School Specialty does not intend to update or revise the forward-looking statements.
-Financial Tables Follow-
School Specialty,Inc.
Add 5
SCHOOL SPECIALTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Unaudited
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | January 26,
2008 | | | January 27,
2007 | | | January 26,
2008 | | | January 27,
2007 | |
Revenues | | $ | 134,839 | | | $ | 128,816 | | | $ | 914,271 | | | $ | 877,112 | |
Cost of revenues | | | 83,151 | | | | 77,960 | | | | 521,674 | | | | 503,524 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 51,688 | | | | 50,856 | | | | 392,597 | | | | 373,588 | |
Selling, general and administrative expenses | | | 76,559 | | | | 71,581 | | | | 276,415 | | | | 268,310 | |
| | | | | | | | | | | | | | | | |
Operating income (loss) | | | (24,871 | ) | | | (20,725 | ) | | | 116,182 | | | | 105,278 | |
Other (income) expense: | | | | | | | | | | | | | | | | |
Interest expense | | | 4,524 | | | | 5,024 | | | | 14,811 | | | | 16,800 | |
Interest income | | | (9 | ) | | | (14 | ) | | | (23 | ) | | | (72 | ) |
Other | | | 1,629 | | | | 1,688 | | | | 5,345 | | | | 5,248 | |
| | | | | | | | | | | | | | | | |
Income (loss) before provision for income taxes | | | (31,015 | ) | | | (27,423 | ) | | | 96,049 | | | | 83,302 | |
Provision for (benefit from) income taxes | | | (11,973 | ) | | | (10,517 | ) | | | 37,555 | | | | 32,819 | |
| | | | | | | | | | | | | | | | |
Earnings (loss) from continuing operations | | | (19,042 | ) | | | (16,906 | ) | | | 58,494 | | | | 50,483 | |
Earnings (loss) from operations of discontinued School Specialty Media business unit, net of income taxes | | | (1,220 | ) | | | (1,917 | ) | | | (1,881 | ) | | | (3,237 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (20,262 | ) | | $ | (18,823 | ) | | $ | 56,613 | | | $ | 47,246 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 20,010 | | | | 21,274 | | | | 20,526 | | | | 22,105 | |
Diluted | | | 20,010 | | | | 21,274 | | | | 21,055 | | | | 22,787 | |
Basic earnings (loss) per share of common stock: | | | | | | | | | | | | | | | | |
Earnings (loss) from continuing operations | | $ | (0.95 | ) | | $ | (0.79 | ) | | $ | 2.85 | | | $ | 2.28 | |
Earnings (loss) from discontinued operations | | | (0.06 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.14 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (1.01 | ) | | $ | (0.88 | ) | | $ | 2.76 | | | $ | 2.14 | |
| | | | | | | | | | | | | | | | |
Diluted earnings (loss) per share of common stock: | | | | | | | | | | | | | | | | |
Earnings (loss) from continuing operations | | $ | (0.95 | ) | | $ | (0.79 | ) | | $ | 2.78 | | | $ | 2.22 | |
Earnings (loss) from discontinued operations | | | (0.06 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.15 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (1.01 | ) | | $ | (0.88 | ) | | $ | 2.69 | | | $ | 2.07 | |
| | | | | | | | | | | | | | | | |
-More-
School Specialty, Inc.
Add 6
SCHOOL SPECIALTY, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
| | | | | | | | | | | | |
| | | January 26,
2008 | | | April 28,
2007 | | | January 27,
2007 | |
| | | (Unaudited) | | | | | | (Unaudited) | |
ASSETS | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 1,684 | | | $ | 2,386 | | | $ | 1,541 | |
Accounts receivable | | | 93,770 | | | | 65,900 | | | | 70,831 | |
Inventories | | | 146,500 | | | | 177,319 | | | | 137,137 | |
Deferred catalog costs | | | 17,745 | | | | 14,848 | | | | 14,159 | |
Prepaid expenses and other current assets | | | 20,907 | | | | 18,398 | | | | 24,832 | |
Deferred taxes | | | 10,457 | | | | 10,201 | | | | 7,126 | |
| | | | | | | | | | | | |
Total current assets | | | 291,063 | | | | 289,052 | | | | 255,626 | |
Property, plant and equipment, net | | | 76,517 | | | | 77,345 | | | | 78,774 | |
Goodwill | | | 544,552 | | | | 534,488 | | | | 545,458 | |
Intangible assets, net | | | 179,001 | | | | 183,660 | | | | 196,326 | |
Other | | | 26,512 | | | | 26,334 | | | | 33,627 | |
| | | | | | | | | | | | |
Total assets | | $ | 1,117,645 | | | $ | 1,110,879 | | | $ | 1,109,811 | |
| | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | |
Current maturities - long-term debt | | $ | 133,622 | | | $ | 133,590 | | | $ | 133,579 | |
Accounts payable | | | 47,920 | | | | 77,794 | | | | 50,086 | |
Accrued compensation | | | 17,288 | | | | 14,709 | | | | 16,734 | |
Deferred revenue | | | 5,774 | | | | 5,464 | | | | 5,216 | |
Accrued income taxes | | | 11,539 | | | | — | | | | 8,593 | |
Other accrued liabilities | | | 31,670 | | | | 23,392 | | | | 24,044 | |
| | | | | | | | | | | | |
Total current liabilities | | | 247,813 | | | | 254,949 | | | | 238,252 | |
Long-term debt - less current maturities | | | 281,767 | | | | 293,139 | | | | 279,590 | |
Deferred taxes and other | | | 59,355 | | | | 50,246 | | | | 56,549 | |
| | | | | | | | | | | | |
Total liabilities | | | 588,935 | | | | 598,334 | | | | 574,391 | |
| | | | | | | | | | | | |
Commitments and contingencies | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | |
Preferred stock, $0.001 par value per share, 1,000,000 shares authorized; none outstanding | | | — | | | | — | | | | — | |
Common stock, $0.001 par value per share, 150,000,000 authorized and 23,629,635; 23,310,461 and 23,266,961 shares issued, respectively | | | 24 | | | | 23 | | | | 23 | |
Capital paid-in excess of par value | | | 378,794 | | | | 367,068 | | | | 364,408 | |
Treasury stock, at cost - 3,814,902; 2,126,121 and 2,126,121 shares, respectively | | | (136,761 | ) | | | (76,508 | ) | | | (76,508 | ) |
Accumulated other comprehensive income | | | 26,341 | | | | 17,763 | | | | 14,098 | |
Retained earnings | | | 260,312 | | | | 204,199 | | | | 233,399 | |
| | | | | | | | | | | | |
Total shareholders’ equity | | | 528,710 | | | | 512,545 | | | | 535,420 | |
| | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,117,645 | | | $ | 1,110,879 | | | $ | 1,109,811 | |
| | | | | | | | | | | | |
-More-
School Specialty, Inc.
Add 7
SCHOOL SPECIALTY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Unaudited
| | | | | | | | |
| | | Nine Months Ended | |
| | | January 26,
2008 | | | January 27,
2007 | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 56,613 | | | $ | 47,246 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and intangible asset amortization expense | | | 18,892 | | | | 19,262 | |
Amortization of development costs | | | 7,217 | | | | 5,192 | |
Amortization of debt fees and other | | | 1,521 | | | | 928 | |
Share-based compensation expense | | | 4,230 | | | | 3,259 | |
Deferred taxes | | | 8,148 | | | | 7,748 | |
Loss on disposal of property, equipment and other | | | 31 | | | | 290 | |
Changes in current assets and liabilities (net of assets acquired and liabilities assumed in business combinations): | | | | | | | | |
Accounts receivable | | | (26,712 | ) | | | (10,415 | ) |
Inventories | | | 31,271 | | | | 19,689 | |
Deferred catalog costs | | | (2,897 | ) | | | 6,980 | |
Prepaid expenses and other current assets | | | (2,454 | ) | | | 2,970 | |
Accounts payable | | | (29,975 | ) | | | (24,353 | ) |
Accrued liabilities | | | 24,186 | | | | 19,793 | |
| | | | | | | | |
Net cash provided by operating activities | | | 90,071 | | | | 98,589 | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Cash paid in acquisitions, net of cash acquired | | | (5,753 | ) | | | — | |
Additions to property, plant and equipment | | | (12,218 | ) | | | (14,788 | ) |
Investment in intangible and other assets | | | — | | | | (202 | ) |
Investment in product development costs | | | (7,955 | ) | | | (7,167 | ) |
Proceeds from disposal of property, plant and equipment | | | 375 | | | | 1,011 | |
| | | | | | | | |
Net cash used in investing activities | | | (25,551 | ) | | | (21,146 | ) |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Proceeds from convertible debt offering | | | — | | | | 200,000 | |
Proceeds from bank borrowings | | | 533,000 | | | | 964,900 | |
Repayment of debt and capital leases | | | (544,340 | ) | | | (1,168,938 | ) |
Purchase of treasury stock | | | (60,253 | ) | | | (76,508 | ) |
Proceeds from exercise of stock options | | | 5,519 | | | | 6,502 | |
Excess income tax benefit from exercise of stock options | | | 852 | | | | 1,005 | |
Payment of debt fees and other | | | — | | | | (5,266 | ) |
| | | | | | | | |
Net cash used in financing activities | | | (65,222 | ) | | | (78,305 | ) |
| | | | | | | | |
Net increase in cash and cash equivalents | | | (702 | ) | | | (862 | ) |
Cash and cash equivalents, beginning of period | | | 2,386 | | | | 2,403 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 1,684 | | | $ | 1,541 | |
| | | | | | | | |
| | |
Free cash flow reconciliation: | | | | | | | | |
Net cash used in operating activities | | $ | 90,071 | | | $ | 98,589 | |
Additions to property and equipment | | | (12,218 | ) | | | (14,788 | ) |
Investment in development costs | | | (7,955 | ) | | | (7,167 | ) |
Proceeds from disposal of property and equipment | | | 375 | | | | 1,011 | |
| | | | | | | | |
Free cash flow | | $ | 70,273 | | | $ | 77,645 | |
| | | | | | | | |
-More-
School Specialty, Inc.
Add 8
School Specialty, Inc.
Segment Analysis - Revenues and Gross Profit/Margin Analysis
3rd Quarter, Fiscal 2008
(In thousands)
Unaudited
Segment Revenues and Gross Profit/Margin Analysis-QTD
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | % of Revenues | |
| | | 3Q08-QTD | | | 3Q07-QTD | | | Change $ | | | Change % | | | 3Q08-QTD | | | 3Q07-QTD | |
Revenues | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 80,534 | | | $ | 74,938 | | | $ | 5,596 | | | 7.5 | % | | 59.7 | % | | 58.2 | % |
Essentials | | | 57,540 | | | | 56,679 | | | | 861 | | | 1.5 | % | | 42.7 | % | | 44.0 | % |
Corporate and Interco Elims | | | (3,235 | ) | | | (2,801 | ) | | | (434 | ) | | | | | -2.4 | % | | -2.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Revenues | | $ | 134,839 | | | $ | 128,816 | | | $ | 6,023 | | | 4.7 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | % of Gross Profit | |
| | | 3Q08-QTD | | | 3Q07-QTD | | | Change $ | | | Change % | | | 3Q08-QTD | | | 3Q07-QTD | |
Gross Profit | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 35,888 | | | $ | 33,968 | | | $ | 1,920 | | | 5.7 | % | | 69.4 | % | | 66.8 | % |
Essentials | | | 16,495 | | | | 17,115 | | | | (620 | ) | | -3.6 | % | | 31.9 | % | | 33.7 | % |
Corporate and Interco Elims | | | (695 | ) | | | (227 | ) | | | (468 | ) | | | | | -1.3 | % | | -0.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Gross Profit | | $ | 51,688 | | | $ | 50,856 | | | $ | 832 | | | 1.6 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Segment Gross Margin Summary-QTD | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 3Q08-QTD | | | 3Q07-QTD | | | | | | | | | | | | | |
Gross Margin | | | | | | | | | | | | | | | | | | | | | |
Specialty | | | 44.6 | % | | | 45.3 | % | | | | | | | | | | | | | |
Essentials | | | 28.7 | % | | | 30.2 | % | | | | | | | | | | | | | |
Total Gross Margin | | | 38.3 | % | | | 39.5 | % | | | | | | | | | | | | | |
| | | | |
| Segment Revenues and Gross Profit/Margin Analysis-YTD | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | % of Revenue | |
| | | 3Q08-YTD | | | 3Q07-YTD | | | Change $ | | | Change % | | | 3Q08-YTD | | | 3Q07-YTD | |
Revenues | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 545,416 | | | $ | 487,617 | | | $ | 57,799 | | | 11.9 | % | | 59.7 | % | | 55.6 | % |
Essentials | | | 383,800 | | | | 403,602 | | | | (19,802 | ) | | -4.9 | % | | 42.0 | % | | 46.0 | % |
Corporate and Interco Elims | | | (14,945 | ) | | | (14,107 | ) | | | (838 | ) | | | | | -1.7 | % | | -1.6 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Revenues | | $ | 914,271 | | | $ | 877,112 | | | $ | 37,159 | | | 4.2 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | % of Gross Profit | |
| | | 3Q08-YTD | | | 3Q07-YTD | | | Change $ | | | Change % | | | 3Q08-YTD | | | 3Q07-YTD | |
Gross Profit | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 273,465 | | | $ | 245,047 | | | $ | 28,418 | | | 11.6 | % | | 69.7 | % | | 65.6 | % |
Essentials | | | 121,263 | | | | 129,156 | | | | (7,893 | ) | | -6.1 | % | | 30.9 | % | | 34.6 | % |
Corporate and Interco Elims | | | (2,131 | ) | | | (615 | ) | | | (1,516 | ) | | | | | -0.6 | % | | -0.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Gross Profit | | $ | 392,597 | | | $ | 373,588 | | | $ | 19,009 | | | 5.1 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Segment Gross Margin Summary-YTD | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 3Q08-YTD | | | 3Q07-YTD | | | | | | | | | | | | | |
Gross Margin | | | | | | | | | | | | | | | | | | | | | |
Specialty | | | 50.1 | % | | | 50.3 | % | | | | | | | | | | | | | |
Essentials | | | 31.6 | % | | | 32.0 | % | | | | | | | | | | | | | |
Total Gross Margin | | | 42.9 | % | | | 42.6 | % | | | | | | | | | | | | | |
-####-
