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Staples, Inc. Message Board

  • bluecheese4u bluecheese4u May 16, 2012 9:31 AM Flag

    Staples, Inc. Announces First Quarter 2012 Performance

    Staples, Inc. Announces First Quarter 2012 Performance

    FRAMINGHAM, Mass.--(BUSINESS WIRE)--May. 16, 2012-- Staples, Inc. (Nasdaq: SPLS) announced today the results for its first quarter ended April 28, 2012. Total company sales for the first quarter of 2012 were $6.1 billion, a decrease of one percent in U.S. dollars and flat on a local currency basis compared to the first quarter of 2011. Net income for the first quarter of 2012 decreased six percent year over year to $187 million. Diluted earnings per share, on a GAAP basis, decreased four percent to $0.27 from $0.28 achieved in the first quarter of 2011.

    During the first quarter of 2012, the company recorded $28 million of pre-tax expenses primarily related to headcount reductions in North America, Europe and Australia, as well as the settlement of a contractual dispute associated with the acquisition of Corporate Express. These expenses negatively impacted the company’s first quarter 2012 diluted earnings per share, on a GAAP basis, by approximately $0.03.

    “In North America we continue to build momentum in categories beyond office supplies while trends in our international business remain soft,” said Ron Sargent, Staples’ chairman and chief executive officer. “Our plans remain on track to grow both sales and earnings during 2012.”

    On a GAAP basis, first quarter 2012 operating income rate decreased 43 basis points to 5.21 percent. This decrease primarily reflects severance costs related to headcount reductions, as well as deleverage of fixed expenses on lower sales in International Operations, partially offset by reduced marketing and supply chain expense.

    The company generated operating cash flow of $147 million and invested $52 million in capital expenditures, resulting in free cash flow of $95 million during the first quarter of 2012. The company returned $75 million to shareholders through cash dividends and repurchased 5.9 million shares for $93 million during the first quarter of 2012. At the end of the first quarter, the company had $2.3 billion in liquidity, including $1.2 billion in cash and cash equivalents.

    North American Delivery

    North American Delivery sales for the first quarter of 2012 were $2.6 billion, an increase of two percent compared to the prior year period. This primarily reflects double-digit sales growth in facilities and breakroom supplies and strong growth in copy and print and promotional products. Operating income rate increased three basis points to 7.87 percent compared to the first quarter of 2011. This increase primarily reflects supply chain efficiencies, partially offset by a pre-tax expense of $8 million related to headcount reductions and the settlement of a contractual dispute associated with the acquisition of Corporate Express, as well as lower product margins.

    North American Retail

    North American Retail sales of $2.3 billion were essentially flat compared to the first quarter of 2011. Comparable store sales for the first quarter of 2012 were flat, as average order size and customer traffic were unchanged versus the prior year. Operating income rate decreased 43 basis points to 7.18 percent compared to the first quarter of 2011. This decrease primarily reflects a pre-tax expense of $4 million related to

    http://investor.staples.com/phoenix.zhtml?c=96244&p=irol-newsArticle&ID=1696333&highlight=

 
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