SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 30, 1996
---------------
CORPORATE EXPRESS, INC.
-----------------------------
(Exact name of registrant as specified in its charter)
Commission File No. 0-24642
---------
Colorado 84-0978360
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
325 Interlocken Parkway
Broomfield, Colorado 80021
---------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 373-2800
--------------
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On August 30, 1996, the Registrant completed the acquisition (the
"Acquisition") of all of the issued and outstanding stock of Boulevard Produits
de Bureau, Inc. ("Boulevard"), a corporation organized under the laws of Quebec.
The acquisition was made pursuant to a certain Share Purchase Agreement (the
"Share Purchase Agreement") dated August 30, 1996 by and among the Registrant,
Boulevard, 122897 Canada, Inc. ("97 Inc.") and 122898 Canada, Inc. ("98 Inc."),
each a Canadian corporation (together, 97 Inc. and 98 Inc. shall be referred to
as the "Sellers"). Consideration for the Acquisition was CDN$22,000,000,
subject to certain adjustments. In addition, the Registrant purchased
CDN$13,000,000 in Boulevard promissory notes from the Sellers for CDN$1,000,000
in cash and 237,888 shares of the Registrant's common stock valued at
CDN$12,000,000. The source of the cash used in the transaction was a portion of
the proceeds received from the issuance of the Registrant's 4 1/2% Convertible
Notes due on July 1, 2000 (the "Notes"). The nature and amount of consideration
paid in connection with the Acquisition was determined based on negotiations
between the Registrant and the Sellers. Prior to the Acquisition, there was no
material relationship between the Registrant or any of its affiliates, directors
or officers or any associates thereof and Boulevard or the Sellers. The
foregoing summary of the Acquisition is qualified in its entirety by reference
to the Share Purchase Agreement filed as Exhibit 2.1 to this report and
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Business Acquired
. The audited financial statements of Boulevard as of October 31, 1995
and 1994 and for the years then ended (in Canadian dollars).
. The unaudited financial statements of Boulevard as of July 31, 1996
and for the nine months then ended (in Canadian dollars).
(b) Pro Forma Financial Information
. The unaudited pro forma combined balance sheet of Corporate Express,
Inc. and Boulevard as of June 1, 1996.
. The unaudited pro forma combined statements of operations of
Corporate Express, Inc. and Boulevard for the three months ended
June 1, 1996 and for the year ended March 2, 1996.
(c) Exhibits
2.1 Share Purchase Agreement dated August 30, 1996 by and among the
Registrant, Corporate Express Canada, Inc., Boulevard, 97 Inc. and
98 Inc.
23.1 Consent of Samson Belair Deloitte & Touche
CORPORATE EXPRESS, INC.
UNAUDITED PRO FORMA COMBINED FINANCIAL DATA
The unaudited pro forma combined balance sheet as of June 1, 1996 includes
the Company's unaudited balance sheet as of June 1, 1996 and Boulevard's
unaudited balance sheet as of July 31, 1996. The unaudited pro forma combined
balance sheet gives effect to the Acquisition as if the Acquisition had occurred
June 1, 1996. The unaudited pro forma combined balance sheet also gives effect
to the sales by the Company in June 1996 of the Notes as if such sales had been
made on June 1, 1996.
The unaudited pro forma combined statement of operations for the quarter
ended June 1, 1996 includes the unaudited results of operations of the Company
and Boulevard for the three months ended June 1, 1996 and July 31, 1996,
respectively. The unaudited pro forma combined statement of operations for the
three months ended June 1, 1996 gives effect to the Acquisition as if the
Acquisition had occurred on March 3, 1996. The unaudited pro forma combined
statement of operations also gives effect to the sales by the Company in June
1996 of the Notes as if such sales had been made on March 3, 1996.
The unaudited pro forma combined statement of operations for the year ended
March 2, 1996 includes the audited results of operations of the Company for the
year ended March 2, 1996 and the unaudited results of operations of Boulevard
for the twelve months ended January 31, 1996. The unaudited pro forma combined
statement of operations for the year ended March 2, 1996 gives effect to the
Boulevard acquisition as if the acquisition had occurred on February 26, 1995.
The unaudited pro forma combined statement of operations also gives effect to
the sales by the Company in June 1996 of the Notes as if such sales had been
made on February 25, 1995.
The pro forma combined financial data are based on available information
and on certain assumptions and adjustments described in the accompanying notes
which management believes are reasonable. The pro forma combined financial data
are provided for informational purposes only and do not purport to present the
results of operations of the Company had the transactions assumed therein
occurred on or as of the dates indicated, nor are they necessarily indicative of
the results of operations which may be achieved in the future.
BOULEVARD OFFICE PRODUCTS INC.
Table of contents
================================================================================
Auditors' report ..............................................................1
Statement of earnings .........................................................2
Statement of retained earnings ................................................3
Balance sheet .................................................................4
Statement of changes in financial position ....................................5
Notes to the financial statements ...........................................6-8
[LOGO OF --------------------------------------------------------
SAMSON BELAIR SAMSON BELAIR/DELOITTE & TOUCHE, S.E.N.C.
DELOITTE & COMPTABLES AGREES
TOUCHE
APPEARS HERE] 1, Place Ville-Marie Telephone: (514) 393-7115
Bureau 3000 Telecopieur: (514) 393-7140
Montreal (Quebec) H3B 4T9
AUDITORS' REPORT
To the Shareholders of Boulevard Office Products Inc.
We have audited the balance sheet of Boulevard Office Products Inc. as at
October 31, 1995 and the statements of earnings, retained earnings and changes
in financial position for the year then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable
assurance whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material
respects, the financial position of the Company as at October 31, 1995 and the
results of its operations and the changes in its financial position for the year
then ended in accordance with generally accepted accounting principles.
/s/ SAMSON BELAIR
DELOITTE & TOUCHE
Chartered Accountants
December 5, 1995
BOULEVARD OFFICE PRODUCTS INC.
Statement of earnings
year ended October 31, 1995
================================================================================
1995 1994
- --------------------------------------------------------------------------------
$ $
Sales 76,290,603 67,709,313
- --------------------------------------------------------------------------------
Cost of sales and other expenses 71,609,595 66,560,451
Amortization of capital assets 557,208 533,036
Amortization of goodwill 70,008 45,004
Loss on disposal of capital assets 31,006 5,497
Interest on long-term debt 211,038 174,827
Interest on short-term debt 286,646 186,096
- --------------------------------------------------------------------------------
72,765,501 67,504,911
- --------------------------------------------------------------------------------
Earnings before income taxes 3,525,102 204,402
Income taxes 1,365,682 41,419
- --------------------------------------------------------------------------------
Net earnings 2,159,420 162,983
================================================================================
Page 2 of 8
BOULEVARD OFFICE PRODUCTS INC.
Statement of retained earnings
year ended October 31, 1995
===============================================================================
1995 1994
- -------------------------------------------------------------------------------
$ $
Balance, beginning of year 9,064,481 8,901,498
Net earnings 2,159,420 162,983
- -------------------------------------------------------------------------------
Balance, end of year 11,223,901 9,064,481
===============================================================================
Page 3 of 8
BOULEVARD OFFICE PRODUCTS INC.
Balance sheet
as at October 31, 1995
===============================================================================
1995 1994
- -------------------------------------------------------------------------------
$ $
Current assets
Accounts receivable 8,762,147 6,683,475
Inventories 6,906,279 5,299,392
Income taxes -- 310,279
Prepaid expenses 99,095 148,727
- -------------------------------------------------------------------------------
15,767,521 12,441,873
Capital assets (Note 3) 8,866,857 9,005,131
Other assets 488,544 468,428
- -------------------------------------------------------------------------------
25,122,922 21,915,432
===============================================================================
Current liabilities
Bank loan (Note 4) 4,307,934 3,598,530
Accounts payable and accrued liabilities 6,666,823 6,450,492
Income taxes 1,197,188 --
Current portion of long-term debt (Note 5) 1,131,344 616,457
- -------------------------------------------------------------------------------
13,303,289 10,665,479
- -------------------------------------------------------------------------------
Long-term debt (Note 5) 585,732 2,175,472
- -------------------------------------------------------------------------------
Shareholders' equity
Share capital (Note 6) 10,000 10,000
Retained earnings 11,223,901 9,064,481
- -------------------------------------------------------------------------------
11,233,901 9,074,481
- -------------------------------------------------------------------------------
25,122,922 21,915,432
===============================================================================
Approved by the Board
_________________________________ Director
_________________________________ Director
Page 4 of 8
BOULEVARD OFFICE PRODUCTS INC.
Statement of changes in financial position
year ended October 31, 1995
===============================================================================
1995 1994
- -------------------------------------------------------------------------------
$ $
Operating activities
Net earnings 2,159,420 162,983
Items not affecting cash
Amortization of capital assets 557,208 533,036
Amortization of goodwill 70,008 45,004
Loss on disposal of capital assets 31,006 5,497
Deferred income taxes -- (79,716)
- -------------------------------------------------------------------------------
2,817,642 666,804
Change in non-cash operating working
capital items (1,912,129) 1,835,562
- -------------------------------------------------------------------------------
905,513 2,502,366
- -------------------------------------------------------------------------------
Financing activities
Increase in long-term debt -- 650,000
Repayment of long-term debt (1,074,853) (560,292)
- -------------------------------------------------------------------------------
(1,074,853) 89,708
- -------------------------------------------------------------------------------
Investing activities
Business acquisitions -- (2,124,593)
Acquisition of capital assets (454,140) (1,576,557)
Disposal of capital assets 4,200 36,954
Acquisition of other assets (90,124) (163,432)
- -------------------------------------------------------------------------------
(540,064) (3,827,628)
- -------------------------------------------------------------------------------
Net decrease in cash position (709,404) (1,235,554)
Cash position, beginning of year (3,598,530) (2,362,976)
- -------------------------------------------------------------------------------
Cash position, end of year (4,307,934) (3,598,530)
===============================================================================
Page 5 of 8
BOULEVARD OFFICE PRODUCTS INC.
Notes to the financial statements
year ended October 31, 1995
- -------------------------------------------------------------------------------
1. Status and nature of activities
The Company, incorporated under Part 1A of the Quebec Companies Act, sells
office supplies, furniture and equipment.
2. Accounting policies
The financial statements have been prepared in accordance with generally
accepted accounting principles and include the following significant
accounting policies:
Inventories
Inventories are valued at the lower of cost and net realizable value. Cost
is determined primarily on the first in, first out basis.
Capital assets
Capital assets, accounted for at acquisition cost, are amortized under the
declining balance method at the following annual rates:
Buildings 4% and 5%
Paving and landscaping 8%
Furniture and equipment 20%
Automotive equipment 30%
Computer equipment 50%
Leasehold improvements are amortized under the straight-line method over the
remaining term of the lease.
Other assets
Goodwill is amortized over five years under the straight-line method.
Deferred income taxes
The Company accounts for its income taxes using the deferral method.
Deferred income taxes result from timing differences between the recording
of certain revenues for accounting and for income tax purposes.
Page 6 of 8
BOULEVARD OFFICE PRODUCTS INC.
Notes to the financial statements
year ended October 31, 1995
========================================================================================
3. Capital assets
1995 1994
-------------------------------------- ----------
Accumulated
Depreciation
and Net Book Net Book
Cost Amortization Value Value
---------- ------------ ---------- --------
$ $ $ $
Land 1,469,800 -- 1,469,800 1,469,800
Buildings 7,965,355 1,734,980 6,230,375 6,418,109
Paving and landscaping 476,163 151,676 324,487 287,433
Furniture and equipment 923,089 482,752 440,337 521,172
Automotive equipment 63,965 49,769 14,196 20,281
Computer equipment 847,818 478,780 369,038 264,791
Leasehold improvements 24,774 6,150 18,624 23,545
------------------------------------------------------------------------------------
11,770,964 2,904,107 8,866,857 9,005,131
====================================================================================
4. Bank loan
A bank loan in the amount of $4,289,000 ($3,385,000 in 1994) is secured by
the accounts receivable and inventories.
5. Long-term debt
1995 1994
----------- ----------
$ $
Variable rate, secured by immovable hypothec,
prime rate plus 0.5%, maturing May 13, 1996 1,089,442 2,052,636
Variable rate, secured by immovable hypothec,
prime rate, maturing June 20, 2004 601,230 636,597
Advances from directors, non-interest bearing and no
terms of payment 26,404 102,696
---------------------------------------------------------------------------------------
1,717,076 2,791,929
Current portion 1,131,344 616,457
---------------------------------------------------------------------------------------
585,732 2,175,472
=======================================================================================
Page 7 of 8
BOULEVARD OFFICE PRODUCTS INC.
Notes to the financial statements
year ended October 31, 1995
================================================================================
5. Long-term debt (cont'd)
Capital payments required in each of the next five years are as follows:
$
1996 1,131,344
1997 45,370
1998 49,136
1999 53,214
2000 57,630
6. Share capital
Authorized
Unlimited number of special preferred shares II, 8% preferential
non-cumulative, redeemable at the option of the Company at the amount
of the consideration received upon issuance, no par value
Unlimited number of special preferred shares, 9% preferential
non-cumulative, redeemable at the option of the Company at the amount
of the consideration received upon issuance, no par value
Unlimited number of preferred shares, 10% non-cumulative, redeemable at
110% of paid-up capital, no par value
1,000 Common shares
1995 1994
------------------------
$ $
Issued and paid
1,000 Common shares 10,000 10,000
===============================================================================
7. Commitments
The Company is committed under renewable, non-cancellable operating
equipment leases in the amount of $854,079 as follows:
$
1996 416,328
1997 416,328
1998 21,423
8. Contingency
At the time a tract of land and a building valued at $4,000,000 were
acquired, the parties took advantage of the tax option under which the
Company is liable for the income taxes related to the recapture of
depreciation and the taxable capital gain. Income taxes of $310,000 could
result when these assets are sold.
Page 8 of 8
BOULEVARD PRODUITS DE BUREAU, INC.
BALANCE SHEET
( Unaudited )
(in thousands)
July 31, 1996
(in Canadian $)
---------------
ASSETS
Current assets:
Receivables, net $ 6,833
Inventories 7,400
Other current assets 268
------------
Total current assets 14,501
Property and Equipment, net 8,915
Goodwill, net 182
Other assets, net --
------------
Total assets 23,598
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft 1,889
Accounts payable 7,407
Accrued liabilities 1,054
Current portion of long-term debt and capital leases 36
------------
Total current liabilities 10,386
Long-term debt 532
------------
Total liabilities 10,918
Shareholders' equity:
Common stock 10
Retained earnings (deficit) 12,670
------------
Total shareholders' equity 12,680
------------
Total liabilities and shareholders' equity $ 23,598
============
BOULEVARD PRODUITS DE BUREAU, INC.
STATEMENT OF OPERATIONS
( Unaudited )
(in thousands)
Nine Months
Ended
July 31, 1996
(in Canadian $)
---------------
Net sales $ 62,582
Cost of sales 49,236
---------------
Gross profit 13,346
Selling, general and administrative expenses 11,064
---------------
Operating profit 2,282
Interest expense, net --
Other (income) expense --
---------------
Income before income taxes 2,282
Income tax expense 836
---------------
Net income $ 1,446
===============
BOULEVARD PRODUITS DE BUREAU, INC.
STATEMENT OF CASH FLOWS
( Unaudited )
(in thousands)
Nine Months
Ended
July 31, 1996
-------------
Operating Activities
Net income $ 1,446
Items not affecting cash:
Amortization of capital assets 427
Amortization of goodwill 53
Loss on disposal of capital assets 24
-------------
504
Change in non-cash operating working capital items 2,115
-------------
4,065
-------------
Investing Activities
Disposal of capital assets 20
Acquisition of capital assets (519)
-------------
(499)
-------------
Financing Activities
Repayment of long-term debt (1,147)
-------------
(1,147)
-------------
Net increase in cash position 2,419
Cash at beginning of period (4,308)
-------------
Cash at end of period $ (1,889)
=============
BOULEVARD PRODUITS DE BUREAU, INC.
STATEMENT OF SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands)
COMMON RETAINED
STOCK EARNINGS TOTAL
-------------------------------
Balance, October 31, 1995 $ 10 $ 11,224 $ 11,234
Net Income 1,446 1,446
-------------------------------
Balance, July 31, 1996 $ 10 $ 12,670 $ 12,680
===============================
CORPORATE EXPRESS, INC. AND BOULEVARD PRODUITS DE BUREAU, INC.
PRO FORMA COMBINED BALANCE SHEET
JUNE 1, 1996
(Unaudited)
(in thousands)
Corporate
Express
and
Boulevard
Corporate Pro Forma Pro Forma
ASSETS Express Boulevard Adjustments Combined
------------ ---------- -------------- ----------------
Current assets:
Cash and cash equivalents $ 28,664 $ - $ (16,280)(1) $ 330,144
(740)(2)
318,500 (3)
Receivables, net 293,420 5,057 298,477
Inventories 101,995 5,476 (740)(1) 106,731
Other current assets 35,391 198 35,589
------------- ---------- -------------- ----------------
Total current assets 459,470 10,731 300,740 770,941
Property and Equipment, net 109,499 6,597 116,096
Goodwill, net 324,603 135 18,977 (1) 343,715
Other assets, net 16,951 - 6,500 (3) 23,451
------------- ---------- -------------- ----------------
Total assets 910,523 17,463 326,217 1,254,203
============= ========== ============== ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 137,132 5,481 142,613
Accrued liabilities 56,796 2,178 58,974
Accrued purchase costs 3,049 - 1,720 (1) 4,769
Accrued merger and related costs 24,880 - 24,880
Current portion of long-term debt and capital 20,151 27 20,178
Other non-current liabilities 219 - 219
------------- ---------- -------------- ----------------
Total current liabilities 242,227 7,686 1,720 251,633
Capital lease obligations 9,568 - 9,568
Long-term debt 127,900 394 9,620 (4) 453,294
325,000 (3)
(9,620)(2)
Deferred income taxes 7,374 - 7,374
Minority interest in subsidiaries 24,843 - 24,843
Other non-current liabilities 2,097 - 2,097
------------- ---------- -------------- ----------------
Total liabilities 414,009 8,080 326,720 748,809
Shareholders' equity:
Common stock 14 7 (7)(5) 14
Additional paid-in capital 502,559 - 8,880 (2) 511,439
Retained earnings (deficit) (6,712) 9,376 244 (5) (6,712)
(9,620)(4)
Foreign currency translation adjustment 653 - 653
------------- ---------- -------------- ----------------
Total shareholders' equity 496,514 9,383 (503) 505,394
------------- ---------- -------------- ----------------
Total liabilities and shareholders'
equity $ 910,523 $ 17,463 $ 326,217 $ 1,254,203
============= =========== ============== ===============
- --------
(1) To record the acquisition of Boulevard's common stock and related purchase
price allocation (including estimated direct costs). The portion of the
consideration assigned to goodwill represents the excess of the cost over
the fair value of the net assets acquired.
(2) To record the issuance of 237,888 shares of Corporate Express common stock
and $740,000 in cash for the purchase of the Boulevard promissory notes.
(3) To record the net proceeds from the sale of the Notes and the
capitalization of debt issuance costs.
(4) To record the Boulevard shareholder distributions and related promissory
notes.
(5) To record the elimination of Boulevard's historical equity.
CORPORATE EXPRESS, INC. AND BOULEVARD PRODUITS DE BUREAU, INC.
PRO FORMA COMBINED STATEMENT OF OPERATIONS
QUARTER ENDED JUNE 1, 1996
(Unaudited)
(in thousands, except per share data)
Corporate
Express
and
Boulevard
Corporate Pro Forma Pro Forma
Express Boulevard Adjustments Combined
----------- --------- ----------- ----------
Net sales $ 500,624 $ 14,738 $ 515,362
Cost of sales 369,178 11,654 380,832
----------- -------- ----------- ----------
Gross profit 131,446 3,084 134,530
Warehouse operating and selling expenses 95,309 2,179 97,488
Corporate general & administrative expenses 15,933 - $ 119 (1) 16,052
----------- -------- ----------- ----------
Operating profit (loss) 20,204 905 (119) 20,990
Interest expense, net 3,279 79 3,473 (2) 2,911
(4,245)(3)
325 (4)
Other income - - -
----------- -------- ----------- ----------
Income (loss) before income taxes 16,925 826 328 18,079
Income tax expense (benefit) 7,079 316 257 (5) 7,652
----------- -------- ----------- ----------
Income (loss) before minority interest 9,846 510 71 10,427
Minority interest 230 - 230
----------- -------- ----------- ----------
Income (loss) from continuing
operations $ 9,616 $ 510 $ 71 $ 10,197
=========== ======== =========== ==========
Net income (loss) per common share
Continuing operations $ 0.13 $ 0.14
=========== ==========
Weighted average common shares
outstanding 75,139 238 (6) 75,377
=========== =========== ==========
- --------
(1) Adjustment to reflect the amortization of goodwill recorded as a result
of the Boulevard acquisition. The goodwill is being amortized over an
estimated life of 40 years.
(2) Adjustment to reflect increase in interest expense due to the sale of
the Notes.
(3) Adjustment to reflect the increase in interest income as a result of the
investment of the proceeds of the Notes in commercial paper.
(4) Adjustment to reflect amortization of debt issuance costs over the
term of the Notes.
(5) Adjustment to reflect the income tax effect of pro forma adjustments and
the adjustment of Boulevard's income tax provision to the Company's
Canadian effective tax rate.
(6) Adjustment to reflect the issuance of additional shares of Corporate
Express common stock as part of the consideration for the purchase of
the Boulevard promissory notes.
CORPORATE EXPRESS, INC. AND BOULEVARD PRODUITS DE BUREAU, INC.
PRO FORMA COMBINED STATEMENT OF OPERATIONS
YEAR ENDED MARCH 2, 1996
(Unaudited)
(in thousands, except per share data)
Corporate
Express
and
Boulevard
Corporate Pro Forma Pro Forma
Express Boulevard Adjustments Combined
----------- ---------- ----------- ----------
Net sales $ 1,590,104 $ 58,424 $1,648,528
Cost of sales 1,173,255 45,542 1,218,797
Merger related inventory provisions 5,952 - 5,952
----------- ---------- ----------- ----------
Gross profit 410,897 12,882 - 423,779
Warehouse operating and selling expenses 297,275 9,866 307,141
Corporate general & administrative expenses 46,980 - $ 474 (1) 47,454
Merger and other non-recurring charges 36,838 - 36,838
----------- ---------- ----------- ----------
Operating profit (loss) 29,804 3,016 (474) 32,346
Interest expense, net 15,396 360 13,892 (2) 13,968
(16,980)(3)
1,300 (4)
Other income 724 - 724
----------- ---------- ----------- ----------
Income (loss) before income taxes 15,132 2,656 1,314 19,102
Income tax expense (benefit) 10,952 1,028 971 (5) 12,951
----------- ---------- ----------- ----------
Income (loss) before minority interest 4,180 1,628 343 6,151
Minority interest 1,436 - 1,436
----------- ---------- ----------- ----------
Income (loss) from continuing operations $ 2,744 $ 1,628 $ 343 $ 4,715
=========== ========== =========== ==========
Net income (loss) per common share
Continuing operations $ 0.04 $ 0.07
=========== ==========
Weighted average common shares outstanding 68,057 238 (6) 68,295
=========== ========== ==========
- --------
(1) Adjustment to reflect the amortization of goodwill recorded as a result
of the Boulevard acquisition. The goodwill is being amortized over an
estimated life of 40 years.
(2) Adjustment to reflect increase in interest expense due to the sale of
the Notes.
(3) Adjustment to reflect the increase in interest income as a result of the
investment of the proceeds of the Notes in commercial paper.
(4) Adjustment to reflect amortization of debt issuance costs over the
term of the Notes.
(5) Adjustment to reflect the income tax effect of pro forma adjustments and
the adjustment of Boulevard's income tax provision to the Company's
Canadian effective tax rate.
(6) Adjustment to reflect the issuance of additional shares of Corporate
Express common stock as part of the consideration for the purchase of
the Boulevard promissory notes.