Exhibit 99.1
| | | | |
 | | FOR IMMEDIATE RELEASE |
| | THURSDAY, NOVEMBER 20, 2008 |
| | Contact: | | |
| | David Vander Ploeg | | Mark Fleming |
| | Executive VP and CFO | | Communications & Investor Relations |
| | 920-882-5854 | | 920-882-5646 |
W6316 Design Drive, Greenville, WI 54942 P.O. Box 1579, Appleton, WI 54912-1579 | | | | |
SCHOOL SPECIALTY REPORTS FISCAL 2009
SECOND QUARTER AND YEAR-TO-DATE RESULTS
| | • | | Second quarter revenue decreased 0.7%; increased 3% excluding adoptions |
| | • | | Year-to-date revenue decreased 1.3%; increased 2% excluding adoptions |
| | • | | Essentials segment second quarter revenue increased 8.7%, year-to-date revenue increased 2.8% |
| | • | | Fiscal 2009 revenue, EPS and cash flow guidance reduced along with an anticipated additional restructuring charge |
Greenville, WI, November 20, 2008—School Specialty (NASDAQ:SCHS), a leading education company providing supplemental learning products to the preK-12 market, today reported fiscal 2009 year-to-date and second quarter financial results. The company reported revenue of $769 million for the first six months of the fiscal year, a 1.3 percent decline from the $779 million reported in the same period last year. Excluding an expected decline in adoption revenue for the company’s curriculum-based products of $25 million from the prior year, revenue increased 2 percent. Earnings from continuing operations for the fiscal year’s first half were $67.4 million compared with $77.5 million reported in the comparable period last year. Diluted earnings per share from continuing operations for the first six months of the fiscal year were $3.55 compared with $3.63 last year, including a $0.05 per share restructuring charge in fiscal 2009 related to the closing of a distribution center.
“We are very proud of the results our associates delivered in these unprecedented economic times and are pleased with the revenue growth in our Essentials segment. Our strong cash flow puts us in a good position to weather the economic storm. While we experienced strong order volume in the early part of quarter two, we did see a slowdown in our order rate during the latter half of the second quarter as schools began to evaluate potential reductions in state funding. We have seen improvement in the order rate in the first few weeks of November,” said David J. Vander Zanden, Chief Executive Officer.
Vander Zanden continued, “We are monitoring the financial condition of all states very closely and evaluating the impact the stress of the economy will have on them. While many states are predicting budget deficits in the current fiscal year, actual reductions to date in school funding have been minor. We are reacting to their concerns by implementing very tight cost controls and by accelerating our category management integration plan.”
“We expect reductions in fixed SG&A expenses over the next 12 months of approximately $20 million, and will take an additional restructuring charge of approximately $2.5 million in our third quarter. We are preparing ourselves for a continued cautious approach to spending by our customers for the balance of this year and next year, as well as an estimated reduction in adoption revenue of $25 million in fiscal 2010 due to fewer state adoptions available next year,” said Vander Zanden.
Second Quarter Financial Results
Revenue in the second quarter of fiscal 2009 was $390.3 million, a 0.7 percent decrease from fiscal 2008’s second quarter revenue of $392.9 million. This decline was attributable to an expected $15 million decrease in state adoption revenue, which has been partially offset by growth of 8.7 percent in the Essentials segment. Second quarter revenue grew 3 percent, excluding adoption revenue for both years. The company believes this comparison is meaningful because state adoption revenue will have significant variability between years due to the cyclical nature of curriculum adoptions, which
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are based on schedules established by individual states. Specialty segment revenue, which includes revenue from state adoptions, was down $16.4 million, or 7.0 percent, from $233.7 million in the second quarter of fiscal 2008 to $217.4 million in the second quarter of fiscal 2009. The Specialty segment revenue decline was less than 1 percent after adjusting for the adoption revenue. Essentials segment revenue was up 8.7 percent from $160.1 million in last year’s second quarter to $174.1 million in the second quarter of fiscal 2009. This increase was attributable to a combination of stronger furniture sales related to new school construction projects, as well as a shift in order fulfillment from the first quarter into the second quarter due to the timing of orders.
Gross profit was $159.1 million in the second quarter of fiscal 2009 compared with $167.5 in the second quarter of fiscal 2008. Gross margin declined 180 basis points from 42.6 percent in the second quarter of fiscal 2008 to 40.8 percent in the second quarter of fiscal 2009. Approximately 80 basis points of this decline was related to product mix between the Specialty and Essentials segments. Specialty segment gross margin in this year’s second quarter declined 60 basis points from the second quarter of last year primarily due to mix within the segment, particularly related to the reduction in curriculum-based state adoption revenue. Essentials segment gross margin declined 170 basis points from the second quarter of last year. Approximately 70 basis points of the Essentials gross margin decline was due to a higher mix of furniture, which historically has carried lower gross margins as the product is shipped direct from vendors. The remaining 100 basis point decrease was attributable primarily to commodity cost increases and is an improvement of 50 basis points from the first quarter of this year.
Selling, general and administrative (SG&A) expenses increased $0.4 million from $99.7 million, or 25.4 percent of revenue, in the second quarter of fiscal 2008 to $100.1 million, or 25.6 percent of revenue, in the second quarter of fiscal 2009. SG&A includes a $1.7 million restructuring charge, or $0.05 per diluted share, in the current year’s second quarter associated with the closing of the company’s Lyons, NY, distribution center. Higher transportation and other operating costs have been offset by decreased variable compensation costs related to performance-based compensation plans.
Earnings from continuing operations decreased $4.7 million in the second quarter from $37.0 million in fiscal 2008 to $32.3 million in fiscal 2009. Diluted earnings per share from continuing operations decreased 2.8 percent from $1.76 in fiscal 2008 to $1.71 in fiscal 2009. The company’s stock repurchases over the past year have benefited second quarter diluted earnings per share by approximately $0.15 as compared to the second quarter of fiscal 2008. Net income was $32.3 million in the second quarter of fiscal 2009, compared to $36.6 million in fiscal 2008, which also included a net of tax loss of $0.4 million, or $0.02 loss per diluted share, for the discontinued School Specialty Media business sold during fiscal 2008.
Six Months Financial Results
Revenue for the first six months of fiscal 2009 was $769.1 million, down $10.3 million, or 1.3 percent, from $779.4 million in the first six months of fiscal 2008. The reduction was attributable to a $25 million decline in the company’s state adoption revenue of its curriculum-based products during the first six months of fiscal 2009 compared with the first six months of fiscal 2008. Excluding state adoptions, revenue in the first half of fiscal 2009 grew approximately 2 percent over the first half of fiscal 2008. Specialty segment revenue, including state adoptions, declined $20.6 million in the first six months of fiscal 2009 from $457.1 million to $436.5 million. Excluding adoptions, Specialty revenue grew 1.2 percent in the first half of this year. The Essentials segment revenue for the first six months of fiscal 2009 grew 2.8 percent from $326.3 million to $335.5 million. This increase was attributable primarily to increased furniture orders associated with school construction projects.
Gross margin declined by 170 basis points in the first six months of fiscal 2009 as compared to the first six months of fiscal 2008, from 43.7 percent to 42.0 percent. Approximately 40 basis points of the decline in gross margin was related to a higher mix of revenue from Essentials. Specialty segment gross margin declined 60 basis points from the first half of fiscal 2008 to the first half of fiscal 2009. The decrease in Specialty segment gross margin is related primarily to mix due to the reduction in curriculum adoption revenue. Essentials gross margin declined 220 basis points for the first six months of fiscal 2009 as compared to the first six months of fiscal 2008. The decrease is attributable to product mix of 60 basis points due to higher furniture sales, with the remainder due to commodity cost increases and transportation increases.
SG&A expenses increased $1.2 million during the first six months of fiscal 2009 to $201.1 million, or 26.1 percent of revenue, from $199.9 million, or 25.6 percent of revenue in the first six months of fiscal 2008. SG&A expenses in fiscal 2009 reflected the $1.7 million charge related to the Lyons, NY, distribution center closing. Higher transportation costs in fiscal 2009 have been offset by reductions in variable selling costs associated with state adoption revenue, as well as reduced performance-based variable compensation costs.
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Operating income in the first six months of fiscal 2009 was 15.9 percent of revenue as compared to 18.1 percent of revenue in the first six months of fiscal 2008. Earnings from continuing operations decreased 13.1 percent from $77.5 million in the first six months of fiscal 2008 to $67.4 million in fiscal 2009.
Diluted earnings per share from continuing operations decreased 2.2 percent from $3.63 in fiscal 2008 to $3.55 in fiscal 2009, including a $0.05 per share restructuring charge in fiscal 2009 related to the distribution center closing. The percentage decline in diluted earnings per share was less than the percentage decline in income from continuing operations due to the reduction in the shares outstanding associated with share repurchases over the past year. The incremental diluted earnings per share in the first half of fiscal 2009 as compared to the first half of fiscal 2008 due to the share repurchases was approximately $0.35 per share.
During the first quarter of fiscal 2009 the company repurchased 497,600 shares for a net purchase price of $15.3 million. The company did not purchase any shares during the second quarter. As of the end of the second quarter of fiscal 2009, the company has remaining authority to purchase $34.7 million of outstanding common stock.
Outlook
School Specialty is reducing its fiscal 2009 free cash flow guidance to a range of $70 million to $80 million from the previous range of $80 million to $90 million. Both ranges exclude approximately $11 million of additional free cash flow expected to be received in fiscal 2009 related to cash tax savings from the sale of School Specialty Media in late fiscal 2008. The company also is reducing its prior revenue guidance to a range of $1,065 million to $1,080 million from a range of $1,077 million to $1,110 million, and expects total year adoption revenue to decline by $27 million compared to fiscal 2008. Previous guidance for diluted earnings per share from continuing operations of $2.27 to $2.43 per share, which excluded an estimated restructuring charge of $0.04 per share, is being lowered to a range of $2.04 to $2.24, which excludes a restructuring charge of approximately $0.14 per share for the year. The company incurred a restructuring charge of $0.05 per diluted share in the second quarter and expects the balance of the charge to be incurred in the third quarter.
Conference Call
School Specialty will host a conference call to discuss its fiscal 2009 second quarter financial results. The conference call begins today, November 20, at 10:00 a.m. Central (11:00 a.m. Eastern). The call will be simultaneously broadcast in the Investor Information section of the School Specialty web site atwww.schoolspecialty.com, and a replay of the call will be available.
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, visitwww.schoolspecialty.com.
Cautionary Statement Concerning Forward-Looking Information
Any statements made in this press release about future results of operations, expectations, plans or prospects, including but not limited to statements included under the heading “Outlook,” 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 26, 2008, 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Unaudited
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | October 25,
2008 | | | October 27,
2007 | | | October 25,
2008 | | | October 27,
2007 | |
Revenues | | $ | 390,306 | | | $ | 392,919 | | | $ | 769,100 | | | $ | 779,432 | |
Cost of revenues | | | 231,189 | | | | 225,378 | | | | 445,981 | | | | 438,523 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 159,117 | | | | 167,541 | | | | 323,119 | | | | 340,909 | |
Selling, general and administrative expenses | | | 100,089 | | | | 99,711 | | | | 201,106 | | | | 199,856 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 59,028 | | | | 67,830 | | | | 122,013 | | | | 141,053 | |
| | | | |
Other (income) expense: | | | | | | | | | | | | | | | | |
Interest expense | | | 4,569 | | | | 4,955 | | | | 9,462 | | | | 10,287 | |
Interest income | | | (141 | ) | | | (6 | ) | | | (220 | ) | | | (14 | ) |
Other | | | 1,534 | | | | 2,507 | | | | 2,089 | | | | 3,716 | |
| | | | | | | | | | | | | | | | |
Income before provision for income taxes | | | 53,066 | | | | 60,374 | | | | 110,682 | | | | 127,064 | |
Provision for income taxes | | | 20,807 | | | | 23,418 | | | | 43,277 | | | | 49,528 | |
| | | | | | | | | | | | | | | | |
Earnings from continuing operations | | | 32,259 | | | | 36,956 | | | | 67,405 | | | | 77,536 | |
| | | | |
Loss from operations of discontinued School Specialty Media business unit, net of income taxes | | | — | | | | (402 | ) | | | — | | | | (661 | ) |
| | | | | | | | | | | | | | | | |
Net income | | $ | 32,259 | | | $ | 36,554 | | | $ | 67,405 | | | $ | 76,875 | |
| | | | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 18,785 | | | | 20,434 | | | | 18,813 | | | | 20,784 | |
Diluted | | | 18,900 | | | | 20,966 | | | | 19,002 | | | | 21,366 | |
Basic earnings per share of common stock: | | | | | | | | | | | | | | | | |
Earnings from continuing operations | | $ | 1.72 | | | $ | 1.81 | | | $ | 3.58 | | | $ | 3.73 | |
Loss from discontinued operations | | | — | | | | (0.02 | ) | | | — | | | | (0.03 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | 1.72 | | | $ | 1.79 | | | $ | 3.58 | | | $ | 3.70 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per share of common stock: | | | | | | | | | | | | | | | | |
Earnings from continuing operations | | $ | 1.71 | | | $ | 1.76 | | | $ | 3.55 | | | $ | 3.63 | |
Loss from discontinued operations | | | — | | | | (0.02 | ) | | | — | | | | (0.03 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | 1.71 | | | $ | 1.74 | | | $ | 3.55 | | | $ | 3.60 | |
| | | | | | | | | | | | | | | | |
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SCHOOL SPECIALTY, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
| | | | | | | | | | | | |
| | | October 25,
2008 | | | April 26,
2008 | | | October 27,
2007 | |
| | | (Unaudited) | | | | | | (Unaudited) | |
ASSETS | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 9,683 | | | $ | 4,034 | | | $ | 4,611 | |
Accounts receivable | | | 192,809 | | | | 77,591 | | | | 198,826 | |
Inventories | | | 129,474 | | | | 149,548 | | | | 142,134 | |
Deferred catalog costs | | | 11,006 | | | | 14,845 | | | | 12,668 | |
Prepaid expenses and other current assets | | | 21,143 | | | | 18,857 | | | | 17,454 | |
Refundable income taxes | | | — | | | | 9,288 | | | | — | |
Deferred taxes | | | 16,275 | | | | 15,726 | | | | 10,344 | |
| | | | | | | | | | | | |
Total current assets | | | 380,390 | | | | 289,889 | | | | 386,037 | |
Property, plant and equipment, net | | | 71,841 | | | | 77,311 | | | | 76,532 | |
Goodwill | | | 530,300 | | | | 543,630 | | | | 544,245 | |
Intangible assets, net | | | 172,208 | | | | 176,771 | | | | 179,631 | |
Other | | | 28,160 | | | | 29,726 | | | | 25,013 | |
| | | | | | | | | | | | |
Total assets | | $ | 1,182,899 | | | $ | 1,117,327 | | | $ | 1,211,458 | |
| | | | | | | | | | | | |
| | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | |
Current maturities - long-term debt | | $ | 133,654 | | | $ | 133,628 | | | $ | 133,609 | |
Accounts payable | | | 48,389 | | | | 64,340 | | | | 51,704 | |
Accrued compensation | | | 16,354 | | | | 19,476 | | | | 19,677 | |
Deferred revenue | | | 4,679 | | | | 6,641 | | | | 6,965 | |
Accrued income taxes | | | 22,021 | | | | — | | | | 32,580 | |
Other accrued liabilities | | | 37,127 | | | | 30,593 | | | | 33,517 | |
| | | | | | | | | | | | |
Total current liabilities | | | 262,224 | | | | 254,678 | | | | 278,052 | |
Long-term debt - less current maturities | | | 314,675 | | | | 312,210 | | | | 311,528 | |
Deferred taxes | | | 80,643 | | | | 70,671 | | | | 55,903 | |
Other liabilities | | | 794 | | | | 1,080 | | | | 850 | |
| | | | | | | | | | | | |
Total liabilities | | | 658,336 | | | | 638,639 | | | | 646,333 | |
| | | | | | | | | | | | |
| | | |
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 24,206,938; 23,631,135 and 23,589,151 shares issued, respectively | | | 24 | | | | 24 | | | | 24 | |
Capital paid-in excess of par value | | | 390,835 | | | | 380,073 | | | | 376,431 | |
Treasury stock, at cost - 5,420,210; 4,922,610 and 3,380,802 shares, respectively | | | (186,637 | ) | | | (171,387 | ) | | | (121,419 | ) |
Accumulated other comprehensive income | | | 8,116 | | | | 25,158 | | | | 29,515 | |
Retained earnings | | | 312,225 | | | | 244,820 | | | | 280,574 | |
| | | | | | | | | | | | |
Total shareholders’ equity | | | 524,563 | | | | 478,688 | | | | 565,125 | |
| | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,182,899 | | | $ | 1,117,327 | | | $ | 1,211,458 | |
| | | | | | | | | | | | |
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SCHOOL SPECIALTY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Unaudited
| | | | | | | | |
| | | Six Months Ended | |
| | | October 25,
2008 | | | October 27,
2007 | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 67,405 | | | $ | 76,875 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and intangible asset amortization expense | | | 12,043 | | | | 12,480 | |
Amortization of development costs | | | 3,502 | | | | 5,748 | |
Amortization of debt fees and other | | | 1,019 | | | | 1,016 | |
Share-based compensation expense | | | 2,389 | | | | 2,844 | |
Deferred taxes | | | 9,423 | | | | 5,659 | |
Loss (gain) on disposal of property, equipment and other | | | 677 | | | | (8 | ) |
Changes in current assets and liabilities (net of assets acquired and liabilities assumed in business combinations): | | | | | | | | |
Accounts receivable | | | (117,308 | ) | | | (131,668 | ) |
Inventories | | | 19,938 | | | | 35,382 | |
Deferred catalog costs | | | 3,839 | | | | 2,180 | |
Prepaid expenses and other current assets | | | 7,675 | | | | 959 | |
Accounts payable | | | (17,322 | ) | | | (25,788 | ) |
Accrued liabilities | | | 27,626 | | | | 50,446 | |
| | | | | | | | |
Net cash provided by operating activities | | | 20,906 | | | | 36,125 | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Additions to property, plant and equipment | | | (5,115 | ) | | | (7,530 | ) |
Proceeds from disposal of discontinued operations | | | 2,235 | | | | — | |
Investment in product development costs | | | (4,055 | ) | | | (5,443 | ) |
Proceeds from disposal of property, plant and equipment | | | 109 | | | | 33 | |
| | | | | | | | |
Net cash used in investing activities | | | (6,826 | ) | | | (12,940 | ) |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Proceeds from bank borrowings | | | 441,600 | | | | 405,700 | |
Repayment of debt and capital leases | | | (439,109 | ) | | | (387,292 | ) |
Purchase of treasury stock | | | (15,250 | ) | | | (44,911 | ) |
Proceeds from exercise of stock options | | | 2,647 | | | | 4,840 | |
Excess income tax benefit from exercise of stock options | | | 1,681 | | | | 703 | |
| | | | | | | | |
Net cash used in financing activities | | | (8,431 | ) | | | (20,960 | ) |
| | | | | | | | |
Net increase in cash and cash equivalents | | | 5,649 | | | | 2,225 | |
Cash and cash equivalents, beginning of period | | | 4,034 | | | | 2,386 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 9,683 | | | $ | 4,611 | |
| | | | | | | | |
| | |
Free cash flow reconciliation: | | | | | | | | |
Net cash used in operating activities | | $ | 20,906 | | | $ | 36,125 | |
Additions to property and equipment | | | (5,115 | ) | | | (7,530 | ) |
Investment in development costs | | | (4,055 | ) | | | (5,443 | ) |
Proceeds from disposal of property and equipment | | | 109 | | | | 33 | |
| | | | | | | | |
Free cash flow | | $ | 11,845 | | | $ | 23,185 | |
| | | | | | | | |
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School Specialty, Inc.
Segment Analysis - Revenues and Gross Profit/Margin Analysis
2nd Quarter, Fiscal 2009
(In thousands)
Unaudited
| | | | | | | | | | | | | | | | | | | | | |
| Segment Revenues and Gross Profit/Margin Analysis-QTD | |
| | | | | | | | | | % of Revenues | |
| | | 2Q09-QTD | | | 2Q08-QTD | | | Change $ | | | Change % | | | 2Q09-QTD | | | 2Q08-QTD | |
| Revenues | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 217,378 | | | $ | 233,730 | | | $ | (16,352 | ) | | -7.0 | % | | 55.7 | % | | 59.5 | % |
Essentials | | | 174,063 | | | | 160,129 | | | | 13,934 | | | 8.7 | % | | 44.6 | % | | 40.8 | % |
Corporate and Interco Elims | | | (1,135 | ) | | | (940 | ) | | | (195 | ) | | | | | -0.3 | % | | -0.3 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Revenues | | $ | 390,306 | | | $ | 392,919 | | | $ | (2,613 | ) | | -0.7 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | % of Gross Profit | |
| | | 2Q09-QTD | | | 2Q08-QTD | | | Change $ | | | Change % | | | 2Q09-QTD | | | 2Q08-QTD | |
| Gross Profit | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 108,556 | | | $ | 117,976 | | | $ | (9,420 | ) | | -8.0 | % | | 68.2 | % | | 70.4 | % |
Essentials | | | 50,117 | | | | 48,820 | | | | 1,297 | | | 2.7 | % | | 31.5 | % | | 29.1 | % |
Corporate and Interco Elims | | | 444 | | | | 745 | | | | (301 | ) | | | | | 0.3 | % | | 0.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Gross Profit | | $ | 159,117 | | | $ | 167,541 | | | $ | (8,424 | ) | | -5.0 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Segment Gross Margin Summary-QTD | | | | | | | | | | | | | | | | | | | | | |
| | | 2Q09-QTD | | | 2Q08-QTD | | | | | | | | | | | | | |
| Gross Margin | | | | | | | | | | | | | | | | | | | | | |
Specialty | | | 49.9 | % | | | 50.5 | % | | | | | | | | | | | | | |
Essentials | | | 28.8 | % | | | 30.5 | % | | | | | | | | | | | | | |
Total Gross Margin | | | 40.8 | % | | | 42.6 | % | | | | | | | | | | | | | |
|
| Segment Revenues and Gross Profit/Margin Analysis-YTD | |
| | | | | | | | | | | | | | | % of Revenue | |
| | | 2Q09-YTD | | | 2Q08-YTD | | | Change $ | | | Change % | | | 2Q09-YTD | | | 2Q08-YTD | |
| Revenues | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 436,459 | | | $ | 457,061 | | | $ | (20,602 | ) | | -4.5 | % | | 56.7 | % | | 58.6 | % |
Essentials | | | 335,495 | | | | 326,260 | | | | 9,235 | | | 2.8 | % | | 43.6 | % | | 41.9 | % |
Corporate and Interco Elims | | | (2,854 | ) | | | (3,889 | ) | | | 1,035 | | | | | | -0.3 | % | | -0.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Revenues | | $ | 769,100 | | | $ | 779,432 | | | $ | (10,332 | ) | | -1.3 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | % of Gross Profit | |
| | | 2Q09-YTD | | | 2Q08-YTD | | | Change $ | | | Change % | | | 2Q09-YTD | | | 2Q08-YTD | |
| Gross Profit | | | | | | | | | | | | | | | | | | | | | |
Specialty | | $ | 222,039 | | | $ | 235,557 | | | $ | (13,518 | ) | | -5.7 | % | | 68.7 | % | | 69.1 | % |
Essentials | | | 100,336 | | | | 104,768 | | | | (4,432 | ) | | -4.2 | % | | 31.1 | % | | 30.7 | % |
Corporate and Interco Elims | | | 744 | | | | 584 | | | | 160 | | | | | | 0.2 | % | | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Gross Profit | | $ | 323,119 | | | $ | 340,909 | | | $ | (17,790 | ) | | -5.2 | % | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
|
| Segment Gross Margin Summary-YTD | |
| | | 2Q09-YTD | | | 2Q08-YTD | | | | | | | | | | | | | |
| Gross Margin | | | | | | | | | | | | | | | | | | | | | |
Specialty | | | 50.9 | % | | | 51.5 | % | | | | | | | | | | | | | |
Essentials | | | 29.9 | % | | | 32.1 | % | | | | | | | | | | | | | |
Total Gross Margin | | | 42.0 | % | | | 43.7 | % | | | | | | | | | | | | | |
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