*NEWS*OFFICEMAX 2ND Q. RESULTS

  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 2toner1-2
  • futor_902x177v7-tonernew
  • Print
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
  • 161213_banner_futorag_902x177px
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 4toner4
  • banner-01-26-17b
Share

*NEWS*OFFICEMAX 2ND Q. RESULTS

 user 2006-08-08 at 11:34:00 am Views: 62
  • #16242

    OfficeMax Reports Second Quarter 2006 Financial Results
    ITASCA,
    Ill., Aug. 06 — OfficeMax® Incorporated today reported results for the
    second quarter ended July 1, 2006. For the second quarter, the company
    reported net income of $27.4 million, or $.35 per diluted share,
    compared with a net loss of $21.5 million, or $.28 per diluted share,
    in the second quarter of 2005.Results for the second quarter of 2006
    include various items which are not expected to be ongoing, including
    credits from adjustments to the store closing and additional
    consideration reserves, partially offset by charges related to our
    previously announced headquarters consolidation. A full description of
    these special items and a reconciliation to the company’s reported GAAP
    financial results are included in this press release. For the second
    quarter of 2006, net income before special items was $23.0 million, or
    $.29 per diluted share, compared with a net loss before special items
    of $10.2 million, or $.14 per diluted share, in the second quarter of
    2005.”We are pleased with our second quarter operating performance and
    the resulting increase in our financial outlook for full year 2006,”
    said Sam Duncan, Chairman and Chief Executive Officer of OfficeMax. “In
    our Contract segment, through a continued focus on profitable sales and
    cost efficiencies, we achieved significant operating income growth. In
    our Retail segment, significantly lower inventory clearance activity,
    reduced shrinkage, and cost controls provided strong operating income
    improvement.”

    Contract Segment
    OfficeMax
    Contract segment sales increased 0.8% in the second quarter of 2006
    compared to the second quarter of 2005 reflecting flat sales growth in
    our U.S. Contract operations and increased sales from our international
    operations.Contract segment operating income increased to $44.4 million
    in the second quarter of 2006 compared to $23.7 million in the second
    quarter of 2005. Contract segment gross margin increased to 22.1% in
    the second quarter of 2006 from 21.9% in the second quarter of 2005,
    primarily as a result of several margin enhancement initiatives,
    partially offset by higher delivery costs due to increased energy
    prices. Contract segment operating income benefited from targeted cost
    reduction programs, including the impact of our distribution center
    consolidation and lower promotional and marketing costs, as well as
    significant improvement in our Canadian operations.

    Retail Segment
    OfficeMax
    Retail segment sales decreased 6.2% in the second quarter of 2006
    compared to the second quarter of 2005 due primarily to the 109
    strategic store closings completed in the first quarter of 2006.
    Same-store sales for the second quarter of 2006 decreased approximately
    1%.Retail operating income for the second quarter of 2006 included a
    $9.0 million pre-tax benefit resulting from an adjustment to the
    reserve for retail store closures. Excluding this special item,
    operating income increased to $18.2 million in the second quarter of
    2006 compared to an operating loss of $15.5 million in the second
    quarter of 2005. Retail segment gross margin increased to 29.7% in the
    second quarter of 2006 compared with 25.6% in the second quarter of
    2005, due to significantly lower inventory clearance activity, reduced
    shrinkage, and a more effective promotional strategy. Retail segment
    operating income in the second quarter of 2006 also benefited from
    targeted cost reduction programs including reduced store labor expense,
    offset by higher allocated general and administrative expense as well
    as store incentive compensation expense.During the second quarter of
    2006, OfficeMax opened 9 new retail stores and closed 2 stores, ending
    the quarter with 874 retail stores compared with 946 stores at the end
    of the second quarter of 2005.