Exhibit 99.1
Kathleen S. Dvorak
Sr. Vice President, Investor Relations
and Financial Administration
or
Eileen A. Kamerick
Executive Vice President,
Chief Financial Officer
United Stationers Inc.
(847) 699-5000
FOR IMMEDIATE RELEASE
UNITED STATIONERS INC. REPORTS
RECORD 2000 AND FOURTH QUARTER SALES AND EARNINGS
DES PLAINES, Ill., Jan. 29, 2001 -- United Stationers Inc. (Nasdaq: USTR)
reported net sales for the year ended December 31, 2000 of $3.9 billion, up
14.6% compared with net sales of $3.4 billion in the prior year. Income before
extraordinary item was $98.6 million, an 18.3% improvement from the $83.4
million reported for 1999. Diluted earnings per share were $2.84, 19.8% higher
than the $2.37 reported the prior year. The 2000 earnings per share number
excluded a second quarter after-tax extraordinary charge of $6.5 million.
"Fiscal 2000 was another great year for United Stationers," said Randall
Larrimore, president and chief executive officer. "Our core business exceeded
our original expectations for both sales and earnings, enabling us to make
significant investments in people and infrastructure to build our third-party
fulfillment and logistics business. We have now achieved 19 consecutive quarters
of record sales and earnings."
RECORD FOURTH QUARTER SALES AND EARNINGS
Net sales for the fourth quarter ended December 31, 2000 rose 9.4% to
$990.5 million, compared with sales of $905.5 million for the last three months
of 1999. This sales increase reflected growth in United's core business,
incremental sales from acquisitions completed in 2000, and increases in freight
revenue that were reclassified TO sales FROM cost of goods sold in accordance
with a new accounting regulation. Net income for the fourth quarter was $25.5
million, up 1.6% from $25.1 million in the prior-year quarter. Earnings per
share on a diluted basis were $0.74 for the fourth quarter, a slight increase
from $0.73 in last year's comparable quarter.
"Our gross margin percentage for the fourth quarter of 2000 was flat,
compared with the prior year, at 17.4%. Operating expenses were 12.2% of net
sales in the latest quarter versus 11.5% for the same period in 1999. The 2000
figure included approximately $4.7 million of marketing, training, systems and
start-up expenses associated with THE ORDER PEOPLE. Operating margins were 5.2%,
including a loss of $4.0 million related to THE ORDER PEOPLE, compared with 5.9%
in the prior year. Excluding the $4.0 million loss, earnings per share would
have been $0.81, up 11%," continued Larrimore.
2001 OUTLOOK
"Economic uncertainty and comparisons against very strong quarters in 2000
will make 2001 a challenging year. However, we believe our growth will be driven
by incremental volume from national accounts and independent dealers, continued
sales increases in janitorial/sanitation, office furniture and computer
consumables, and gaining new clients for THE ORDER PEOPLE," Larrimore added.
"We remain committed to our long-term sales growth objectives of 6-9%
within our core businesses and 15% growth in earnings per share. However, the
economic uncertainty and our continuing investments in building THE ORDER PEOPLE
will make achieving this goal in the near-term particularly challenging.
Nonetheless, we remain confident that we can achieve growth in earnings per
share in the first quarter and approach our stated goals as we progress through
the balance of the year," concluded Larrimore.
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United Stationers Inc. Reports Record
2000 and Fourth Quarter Sales and Earnings
Page two of four
CONFERENCE CALL
United Stationers will host a conference call on Tuesday, January 30, at
9:00 a.m. (Central Time) to discuss fourth quarter and year-end performance. To
listen to the conference call, visit the investor relations section of the
company's Website at WWW.UNITEDSTATIONERS.COM at least 15 minutes before the
call, and follow the instructions provided to ensure that the necessary audio
application is downloaded and installed. This program is provided at no charge
to the user. In addition, interested parties can access an archived version of
the call, which will also be located on the investor relations section of United
Stationers' Website, approximately two hours after the call's conclusion and for
the following week.
FORWARD-LOOKING STATEMENTS
WITH THE EXCEPTION OF STATEMENTS ON HISTORICAL EVENTS, THE INFORMATION
PRESENTED IN THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THESE
STATEMENTS INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THE INFORMATION PRESENTED HERE. THE RISKS AND
UNCERTAINTIES AFFECTING THIS RELEASE INCLUDE, BUT ARE NOT LIMITED TO, ASSESSING
THE MARKET POTENTIAL FOR THIRD-PARTY SERVICE PROVIDERS, THE SUCCESS OF THE ORDER
PEOPLE AND E-NITED, THE INTEGRATION OF ACQUISITIONS, CHANGES IN END-USERS'
DEMANDS FOR BUSINESS PRODUCTS, CUSTOMER CREDIT RISK, THE EFFECTS OF FLUCTUATIONS
IN MANUFACTURERS' PRICING, GENERAL ECONOMIC CONDITIONS, AND THE HIGHLY
COMPETITIVE ENVIRONMENT IN WHICH THE COMPANY OPERATES. A DESCRIPTION OF THESE
AND OTHER FACTORS THAT COULD AFFECT THE COMPANY'S BUSINESS ARE SET FORTH IN
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION INCLUDING THE COMPANY'S
LATEST 10-K AND 10-Q. THE COMPANY'S SEC FILINGS ARE READILY AVAILABLE AT
WWW.SEC.GOV.
COMPANY OVERVIEW
United Stationers Inc., with 2000 sales of $3.9 billion, is North America's
largest distributor of business products and provider of marketing and logistics
services to resellers. Its integrated computer-based distribution system makes
more than 35,000 items available to 20,000 resellers. United is able to ship
products within 24 hours of order placement because of its 39 United Stationers
Supply Co. regional distribution centers, 28 Lagasse distribution centers that
serve the janitorial and sanitation industry, six Azerty distribution centers
that serve computer supply resellers, three distribution centers that serve the
Canadian marketplace and a dedicated distribution center serving clients of THE
ORDER PEOPLE. Its focus on fulfillment excellence has given the company a 98%
order fill rate, a 99.5% order accuracy rate, and a 99% on-time delivery rate.
For more information, visit WWW.UNITEDSTATIONERS.COM.
The company's common stock trades on the Nasdaq National Market System
under the symbol USTR and is included in the S&P SmallCap 600 Index.
-table follows-
United Stationers Inc. Reports Record
2000 and Fourth Quarter Sales and Earnings
Page three of four
UNITED STATIONERS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited) (Audited)
For the Three Months Ended For the Year Ended
December 31, December 31,
------------------------------------- ----------------------------------------
2000 1999 2000 1999
---------------- ---------------- ----------------- ----------------
Net sales $990,515 $905,490 $3,944,862 $3,442,696
Cost of goods sold 818,112 748,253 3,301,018 2,878,539
---------------- ---------------- ----------------- ----------------
Gross profit 172,403 157,237 643,844 564,157
Operating expenses:
Warehousing, marketing and
administrative expenses 120,508 104,537 441,298 381,963
---------------- ---------------- ----------------- ----------------
Income from operations 51,895 52,700 202,546 182,194
Interest expense, net 7,403 7,232 27,229 29,195
Other expense 2,986 2,400 11,201 9,432
---------------- ---------------- ----------------- ----------------
Income before income taxes
and extraordinary item 41,506 43,068 164,116 143,567
Income taxes 15,982 17,957 65,473 60,158
---------------- ---------------- ----------------- ----------------
Income before extraordinary item 25,524 25,111 98,643 83,409
Extraordinary item - loss on early
retirement of debt, net of tax
benefit of $4,248 - - - - 6,476 - -
---------------- ---------------- ----------------- ----------------
Net income $ 25,524 $ 25,111 $ 92,167 $ 83,409
================ ================ ================= ================
Net income per common share -
assuming dilution:
Income before extraordinary item $ 0.74 $ 0.73 $ 2.84 $ 2.37
Extraordinary item - - - - (0.19) - -
---------------- ---------------- ----------------- ----------------
Net income per share $ 0.74 $ 0.73 $ 2.65 $ 2.37
================ ================ ================= ================
Average number of common shares
(in thousands) 34,445 34,516 34,775 35,208
================ ================ ================= ================
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United Stationers Inc. Reports Record
2000 and Fourth Quarter Sales and Earnings
Page four of four
UNITED STATIONERS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
(Audited)
December 31,
------------------------------------------
2000 1999
------------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 19,784 $ 18,993
Accounts receivable, net 329,934 263,432
Inventories 688,926 607,682
Other current assets 15,843 24,424
----------------- ---------------
Total current assets 1,054,487 914,531
Property, plant and equipment, net 189,787 167,544
Goodwill, net 181,923 181,456
Other 20,830 16,372
----------------- ---------------
Total assets $1,447,027 $1,279,903
================= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 392,789 $ 346,558
Accrued liabilities 125,969 142,858
Current maturities of long-term debt 40,273 9,567
----------------- ---------------
Total current liabilities 559,031 498,983
Deferred income taxes 22,703 28,926
Long-term obligations 386,854 345,985
----------------- ---------------
Total liabilities 968,588 873,894
Stockholders' equity:
Common stock, $0.10 par value; authorized - 100,000,000 shares, issued -
37,213,207 shares in 2000 and 1999 3,721 3,721
Additional paid-in capital 301,121 303,171
Treasury stock, at cost - 3,767,907 shares in 2000 and 3,220,481 in 1999 (66,832) (49,145)
Retained earnings 240,429 148,262
----------------- ---------------
Total stockholders' equity 478,439 406,009
----------------- ---------------
Total liabilities and stockholders' equity $1,447,027 $1,279,903
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