The shorts should love these numbers................good luck to all us LONG spls!
Tuesday March 4 4:24 PM EDT
*T
WESTBOROUGH, Mass.--(BUSINESS WIRE)--March 4, 1997-- Staples Inc which pioneered
the office products superstore industry today announced record sales and earnings for the fourth
quarter ended February 1, 1997.
Total sales for the fourth quarter of fiscal 1996, which had one less week than the same period a
year ago, rose 19% to $1.2 billion from $976 million. For the year, sales rose 29% to $4.0 billion
from $3.1 billion in the prior year. Again, fiscal year 1996 was a 52 week year as compared with a
53 week fiscal period in the prior year.
Comparable sales in the 442 stores and delivery hubs that have been open for more than one year
increased 11% for the quarter and 14% for the year. In the prior year, the company achieved
comparable sales growth of 17% in the fourth quarter and 20% for the year.
The company again achieved profit growth that surpassed sales growth:
-- Operating income increased 33% to $81.4 million from $61.2 million. For the year, operating
income rose 38% to $204.0 million.
-- Net income rose 34% to $46.9 million from $34.9 million. For the year, net income rose 44% to
$106.4 million.
-- Earnings per share rose 33% to $0.28 from $0.21. For the year, earnings per share rose 39% to
$0.64.
Thomas G. Stemberg, Chairman and CEO commented, "The fourth quarter marked the conclusion
of a monumental year in Staples' history. Our associates collectively achieved record setting results
and helped us launch our groundbreaking merger with Office Depot.
He continued, "We look forward to 1997 as the year that will mark a renewed wave of cost
reductions of office products for our customers led by Staples/Office Depot, Inc."
The following are some of the achievements we recorded in fiscal 1996:
-- A record 115 stores were opened and an additional 78 stores were remodeled to the company's
new format. Over 80% of the company's stores are either new or remodeled.
-- The company's contract stationer operations grew 17% on a comparable basis for the year.
-- A new 840,000 square foot retail distribution center was built in Hagerstown, MD. This is the
first of three new facilities that are planned to replace the current retail distribution network.
-- The company announced an agreement to acquire 82 acres of land in Framingham, MA on which
it intends to build a new corporate headquarters facility to be occupied in the Fall of 1998.
-- The company struck an agreement to acquire from Kingfisher PLC its interests in the companies'
joint ventures in the UK and Germany.
In the company's previously announced merger plans with Office Depot, Inc., the following
accomplishments have been achieved:
-- Canadian authorities have issued an Advanced Ruling Certificate allowing the merger to go
forward in that country.
-- The two companies formed 15 integration task forces to immediately facilitate, to the extent
legally permissible, the smooth merger of the companies' systems, personnel, policies and
procedures, as well as explore opportunities for significant cost savings and new revenue initiatives.
Staples, Inc. currently operates 574 office products superstores in over 100 markets across the US
and in Canada under the names "Staples", "Staples Express", "Business Depot" and "Bureau En
Gros." The company operates a delivery business, "Staples Direct" and also has contract stationer
operations under the names "Staples Business Advantage" and "Staples National Advantage" which
serve the needs of large regional and national corporations, respectively. Staples recently announced
it had signed a definitive agreement to acquire from Kingfisher PLC in London its interests in the
company's two European joint ventures -- Staples UK and Maxi-Papier Germany.
Staples is one of the fastest growing deep discount specialty hardgoods retailers in North America.
The company recently announced that it has signed a definitive merger agreement with Office
Depot, Inc. which is subject to regulatory and shareholder approval.
More information may be obtained from the company's Investor Relations department by dialing
(800) INV-SPL1 or from the company's website at staples.com .
Certain information presented within this press release may constitute forward-looking statements.
Actual results may differ materially from those indicated by such forward-looking statements as a
result of various important factors, which are discussed in the Company's most recent filing on
Forms 10-K and 10-Q on file with the Securities and Exchange Commission.
(Tables follow)
STAPLES, INC. AND
SUBSIDIARIES
Consolidated Statements
of Income
(dollar amounts in thousands, except share data)
13/14 Weeks Ended 52/53 Weeks Ended
February 1, February 3, February 1, February 3,
1997 1996 1997 1996
Sales $1,163,989 $975,535 $3,967,665 $3,068,061
Cost of goods
sold and 876,689 754,975 3,023,279 2,366,183
occupancy costs
Gross profit 287,300 220,560 944,386 701,878
Operating expenses:
Operating and
selling 164,217 129,288 594,978 446,324
Pre-opening 509 1,494 8,299 5,607
General and 40,644 28,040 134,817 100,167
administrative
Amortization of 578 575 2,291 1,967
goodwill
Total operating 205,948 159,397 740,385 554,065
expenses
Operating
income 81,352 61,163 204,001 147,813
Interest and other
expense, net (5,310) (3,873) (19,887) (15,815)
Income before equity
in loss of
affiliates and
income taxes 76,042 57,290 184,114 131,998
Equity in gain/(loss)
of affiliates 189 (599) (11,073) (12,153)
Income before income
taxes 76,231 56,691 173,041 119,845
Income tax expenses 29,349 21,826 66,621 46,140
Net income $46,882 $34,865 $106,420 $73,705
Net income per common
share $0.28 $0.21 $0.64 $0.46
Number of shares used in
computing net
income per common
share 167,278,972 163,154,000 166,624,927 162,077,996
(a) Fiscal year and quarter ended February 3, 1996 includes 53 and
14 weeks, respectively.
CONTACT: Staples Inc.
John J. Mahoney
(508) 370-7298
or
Samuel J. Levenson, CPA
(508) 370-7963
SLevenson@Staples.com
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