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
FIRST-QUARTER SALES AND EARNINGS
DES PLAINES, Ill., Apr. 23, 2001--United Stationers Inc.(NASDAQ: USTR)
reported earnings per share of $0.64 for its first quarter ended March 31, 2001,
compared with $0.69 in the first quarter of 2000. Net income for the latest
three months was $21.6 million, down from $23.9 million in the comparable
prior-year quarter. Net sales for the period reached a record $1.1 billion, up
6.5% compared with sales of $995 million for the first three months of 2000.
Randall W. Larrimore, president and chief executive officer, said, "We
experienced moderate sales growth in our core business due to the softer
economy, one fewer workday in the quarter, and comparisons against extremely
strong growth in the prior year.
"The primary difference in income from operations between the first
quarters of 2000 and 2001 was a $6.8 million loss for THE ORDER PEOPLE in the
current quarter. Excluding this, the company would have achieved earnings per
share of $0.77, representing an 11.6% increase over the first quarter of the
prior year.
"We remain confident that there is a long-term market opportunity for
the fulfillment and customer relationship management (CRM) services offered by
THE ORDER PEOPLE. However, we are taking actions to lower its overall cost
structure to reflect the longer sales cycle and slower ramp-up of revenues. In
addition, we've named Mark Hampton as President and Chief Operating Officer of
THE ORDER PEOPLE. Mark brings a broad business perspective, after running a
start-up operation for another company, and leading several business units
during his time at United. Mark replaces John Kennedy who resigned," added
Larrimore.
"We will continue to examine THE ORDER PEOPLE's cost structure, making
further adjustments as necessary. However, we expect it to post another
operating loss of between $6-7 million for the second quarter. We also continue
to implement company-wide cost-reduction programs. While the near-term is
challenging, we remain optimistic about our long-term growth potential,"
concluded Larrimore.
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United Stationers Inc. Reports
First-Quarter Sales and Earnings
Page two of four
CONFERENCE CALL
United Stationers will host a conference call on Tuesday, April 24, at
9:00 a.m. (Central Time) to discuss first quarter 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 TIMING OF REVENUE
GENERATION, THE ABILITY OF THE COMPANY TO QUICKLY ADJUST THE COST STRUCTURE OF
THE ORDER PEOPLE AND 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 trailing twelve months sales of $4.0
billion, is North America's largest distributor of business products and a
provider of marketing and logistics services to resellers. Its integrated
computer-based distribution system makes more than 40,000 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.
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United Stationers Inc. Reports
First-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)
For the Three Months Ended
March 31,
----------------------------------
2001 2000
---------------- -------------
Net sales $ 1,059,842 $ 994,883
Cost of goods sold 893,719 836,753
--------------- ------------
Gross profit 166,123 158,130
Operating expenses:
Warehousing, marketing and
administrative expenses 119,742 107,726
--------------- ------------
Income from operations 46,381 50,404
Interest expense, net 8,055 7,414
Other expense 2,484 2,646
--------------- ------------
Income before income taxes 35,842 40,344
Income taxes 14,229 16,420
--------------- ------------
Net income $ 21,613 $ 23,924
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Net income per share - assuming dilution $ 0.64 $ 0.69
=============== ============
Average number of common shares -
assuming dilution 33,600 34,751
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United Stationers Inc. Reports
First-Quarter Sales and Earnings
Page four of four
UNITED STATIONERS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
(unaudited)
March 31,
-------------------------------
2001 2000
------------ -----------
ASSETS
Current assets:
Cash and cash equivalents $ 31,225 $ 28,829
Accounts receivable, net 303,591 265,302
Inventories 635,129 583,089
Other current assets 23,264 23,469
----------- -----------
Total current assets 993,209 900,689
Property, plant and equipment, net 195,906 169,077
Goodwill, net 195,156 180,143
Other 22,205 18,115
----------- -----------
Total assets $ 1,406,476 $ 1,268,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 363,762 $ 337,857
Accrued liabilities 129,390 144,745
Current maturities of long-term debt 42,287 10,585
----------- -----------
Total current liabilities 535,439 493,187
Deferred income taxes 23,141 29,010
Long-term obligations 353,425 315,100
----------- -----------
Total liabilities 912,005 837,297
Stockholders' equity:
Common stock (voting), $0.10 par value; authorized - 100,000,000
shares, issued - 37,213,207 shares in 2001 and 2000 3,721 3,721
Additional paid-in capital 299,397 303,214
Treasury stock, at cost - 3,918,558 shares in 2001 and 3,170,699 in 2000 (70,689) (48,395)
Retained earnings 262,042 172,187
----------- -----------
Total stockholders' equity 494,471 430,727
----------- -----------
Total liabilities and stockholders' equity $ 1,406,476 $ 1,268,024
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