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Exhibit 99.1
OFFICEMAX, INC.
STATEMENT REGARDING FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a "safe harbor" for "forward-looking statements" (as defined in the
Act). The Form 10-K to which this exhibit is attached, the Company's Annual
Report to Shareholders, any Form 10-Q or any Form 8-K of the Company, or any
other written or oral statements made by or on behalf of the Company may include
or incorporate by reference forward-looking statements which reflect the
Company's current view (as of the date such forward-looking statement is made)
with respect to future events, prospects, projections or financial performance.
The words "believe," "expect," "anticipate," "project," "plan," "intend," and
similar expressions, among others, identify "forward-looking statements." The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. These forward-looking statements are subject to certain
uncertainties and other factors that could cause actual results to differ
materially from those made, implied or projected in such statements. These
uncertainties and other factors include, but are not limited to the following:
- the Company faces intense competition from a variety of
retailers, dealers and distributors, including, other
high-volume office product chains that are similar in concept
to the Company in terms of store format, pricing strategy and
product selection; in particular, the Company faces intense
price competition in its sales of computers and related
products;
- the Company has announced its plan to expand its Internet
business through OfficeMax.com; the Company expects to incur
significant operating and capital expenditures in connection
with this expansion; if OfficeMax.com's sales grow more slowly
than anticipated or if its operating expenses exceed
expectations, the Company's results of operations, financial
condition and prospects would be materially and adversely
affected;
- both the Company stores and OfficeMax.com face increasing
competition from Internet-based merchandisers which have
minimal barriers to entry; these competitors include
traditional retailers that sell through the Internet, Internet
sites that target the small business market with a full line
of business products or service offerings and Internet sites
that sell or resell office products and business services;
- the Company relies heavily on its information systems for both
its traditional stores and OfficeMax.com; there could be
malfunctions or failures of the Company's information systems
that could disrupt business operations; and there could be
difficulties associated with implementation and upgrades of
the Company's information systems;
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- historically, an integral part of the Company's business plan
has been an aggressive store growth strategy; although the
Company has reduced the number of stores it plans to open in
2001, it still must continue to open new stores successfully;
there can be no assurance, however, that the Company will be
able to find favorable store locations, negotiate favorable
leases, hire and train employees and store managers and
integrate the new stores in a manner that will allow it to
meet its expansion strategy;
- as the Company expands the number of its stores in existing
markets, sales at existing stores may be impacted;
- there can be no assurance that the Company will be able to
maintain its relationships with its product and service
providers or other affiliates;
- new stores typically take time to reach the levels of sales
and profitability of the Company's existing stores, and there
can be no assurance that new stores will be as profitable as
existing stores;
- there can be no assurance that (1) the Company will not
require additional sources of financing as a result of
unanticipated cash needs, acquisitions or other opportunities
or disappointing operating results or (2) any additional funds
required by the Company will be available to the Company on
satisfactory terms;
- there is potential for rapid and significant changes in
technology which could affect the Company's operations;
- while the Company continues to evaluate its distribution
strategy and methods in order to take advantage of new and
improved technology to increase inventory controls and reduce
expenses and delivery lead times, there can be no assurance
that changes in the Company's current distribution methods can
be implemented and if implemented, whether such changes will
accomplish these goals;
- there are operating and financial risks related to managing
rapid growth and integrating acquired businesses including
demands on management and the Company's operational systems;
- fluctuations in the Company's quarterly operating results have
occurred in the past and may occur in the future based on a
variety of factors such as new store openings with their
concurrent pre-opening expenses, the extent to which new
stores are less profitable as they commence operations, the
effect new stores have on the sale of existing stores in more
mature markets, the pricing activity of competitors in the
Company's markets, changes in the Company's product mix,
increases and decreases in advertising and promotional
expenses, the effects of seasonality, acquisition of contract
stationers and stores of competitors;
- the Company plans to continue to expand its operations
internationally and there are risks associated with
international operations, including lack of local business
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experience, foreign currency fluctuations, language and other
cultural barriers, political and economic instability and,
since the Company's foreign operations are joint ventures not
wholly-owned by the Company, a lack of operating control;
- the Company is largely dependent on the services of Michael
Feuer, the Company's Chairman and Chief Executive Officer, and
its senior management; the loss of Mr. Feuer or any of the
Company's other senior management could have a material
adverse impact on the Company;
- strikes or other labor disruptions or weather conditions that
could adversely affect the Company's operations; and
- the Company faces uncertainties relating to general economic
conditions, including the impact of such conditions on
consumer and business spending.
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