Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ESSENDANT INC | d524119d8k.htm |
| EX-99.1 - EX-99.1 - ESSENDANT INC | d524119dex991.htm |
 April 23, 2013
1
United Stationers Inc.
Earnings Presentation
First Quarter 2013
TO BE FILED IN
CONJUNCTION WITH
PRESS RELEASE
Exhibit 99.2 |
 April 23, 2013
2
Forward Looking Statements and
Non-GAAP Measures
This presentation contains forward-looking statements, including references to goals, plans,
strategies, objectives, projected costs or savings, anticipated future performance, results or
events and other statements that are not strictly historical in nature. These statements
are based on management’s current expectations, forecasts and assumptions. This means they
involve a number of risks and uncertainties that could cause actual results to differ
materially from those expressed or implied here. These risks and uncertainties include, but are not
limited to the following: prevailing economic conditions and changes affecting the business
products industry and the general economy; United’s ability to effectively manage its
operations and to implement growth, cost-reduction and margin-enhancement initiatives; United’s
reliance on key customers, and the risks inherent in continuing or increased customer concentration;
United’s reliance on key suppliers and the supplier allowances and promotional incentives
they offer; United’s reliance on independent resellers for a significant percentage of its
net sales and, therefore, the importance of the continued independence, viability and success of these
resellers; continuing or increasing competitive activity and pricing pressures within existing
or expanded product categories, including competition from product manufacturers who sell
directly to United’s customers; the impact of a loss of, or substantial decrease in, the availability of products or service from key
vendors at competitive prices; United’s ability to maintain its existing information technology
systems and the systems and eCommerce services that it provides to customers, and to
successfully procure, develop and implement new systems and services without business
disruption or other unanticipated difficulties or costs; the creditworthiness of United’s
customers; United’s ability to manage inventory in order to maximize sales and supplier
allowances while minimizing excess and obsolete inventory; United’s success in effectively identifying,
consummating and integrating acquisitions; the risks and expense associated with United’s
obligations to maintain the security of private information provided by United’s
customers; the costs and risks related to compliance with laws, regulations and industry standards affecting
United’s business; the availability of financing sources to meet United’s business needs;
United’s reliance on key management personnel, both in day-to-day operations and
in execution of new business initiatives; and the effects of hurricanes, acts of terrorism and other natural
or man-made disruptions. Shareholders,
potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking
statements and are cautioned not to place undue reliance on the forward-looking statements. For
additional information about risks and uncertainties that could materially affect United’s
results, please see the company’s Securities and Exchange Commission filings. The
forward-looking information in this presentation is made as of this date only, and the company
does not undertake to update any forward- looking statement. Investors are advised to
consult any further disclosure by United regarding the matters discussed in this release in its
filings with the Securities and Exchange Commission and in other written statements it makes from time
to time. It is not possible to anticipate or foresee all risks and uncertainties, and
investors should not consider any list of risks and uncertainties to be exhaustive or complete.
* This is non-GAAP information. A reconciliation of these items to the most comparable GAAP
measures is presented on the company’s Website (www.unitedstationers.com) under the
Investor Information section. Except as noted, all references within this presentation to
financial results are presented in accordance with U.S. Generally Accepted Accounting Principles.
Certain prior-period amounts have been reclassified to conform to the current presentation. |
 April 23, 2013
3
Q1 2013 Headlines
Workday adjusted sales were down 0.1%, compared to Q1 2012, at $1.25
billion.
Adjusted earnings per diluted share were $0.56* up 24%, compared
to an
adjusted Q1 2012 EPS of $0.45*.
Gross margin of $188.5 million, or 15.1% of sales, was up from $180.9
million, or 14.2% of sales, in the prior-year.
Adjusted operating expenses in Q1 2013 were $148.9 million* or 11.9%* of
sales compared to an adjusted $143.1 million* or 11.3%* of sales.
Adjusted operating income was $39.7 million*, or 3.2%* as a percent of
sales, and up from $37.8 million*, or 3.0%* of sales, in the prior-year
quarter.
Adjusted net income was $22.8 million*, compared to $19.0 million* in Q1
2012.
Net cash used in operating activities was $13.4 million in Q1 2013.
During the quarter, the Company repurchased 0.2 million shares for $7.1
million and paid a cash dividend of $5.6 million to common shareholders.
|
 April 23, 2013
4
First Quarter 2013 P&L
% to sales change
$
% to Sales
$
% to Sales
$ change
% change
Fav (Unfav)
$ thousands (except EPS)
QTD Q1 2013
QTD Q1 2013
QTD Q1 2012
QTD Q1 2012
Fav (Unfav)
Fav (Unfav)
basis points
Net Sales
1,250,485
$
1,271,647
$
(21,162)
$
(1.6%)
Workday Adjusted Sales Growth
(0.1%)
Gross Margin
188,525
15.08%
180,929
14.23%
7,596
4.2%
85
Operating Expense
163,284
13.06%
149,337
11.74%
(13,947)
(9.3%)
(132)
Operating Income
25,241
2.02%
31,592
2.49%
(6,351)
(20.1%)
(47)
Interest & Other
3,113
7,166
4,053
Taxes
8,254
9,314
1,060
Net Income
13,874
$
15,112
$
(1,238)
$
Diluted Shares (000s)
40,628
42,420
(1,792)
(4.2%)
Diluted EPS
0.34
$
0.36
$
(0.02)
$
(5.6%)
Adjusted to exclude non-operating items *
Adjusted Operating Expense
148,852
$
11.91%
143,090
$
11.25%
(5,762)
$
(4.0%)
(66)
Adjusted Operating Income
39,674
3.17%
37,839
2.98%
1,835
4.9%
19
Adjusted Net Income
22,822
18,985
3,837
20.2%
Adjusted Diluted EPS
0.56
$
0.45
$
0.11
$
24.4% |
 April 23, 2013
5
Sales
by Product Category –
Q1 2013
Sales
Sales
Sales
Sales
Sales
growth (decline)
growth (decline)
growth (decline)
growth (decline)
growth (decline)
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Category
vs Q1 2012
vs Q4 2011
vs Q3 2011
vs Q2 2011
vs Q1 2011
Technology
(5.9%)
(0.1%)
(4.5%)
(2.8%)
(6.2%)
Office Products
(6.5%)
1.2%
1.3%
(0.8%)
1.8%
Janitorial/
Breakroom
3.0%
1.9%
2.3%
5.9%
12.0%
Industrial
35.7%
30.3%
7.0%
13.2%
21.3%
Furniture
(3.0%)
3.9%
(2.9%)
0.3%
0.8%
Technology
30%
Office Products
26%
Janitorial/
Breakroom
27%
Furniture
6%
Industrial
11%
Q1 2013
Sales Mix |
  April
23, 2013 6
Sales by Channel –
Q1 2013
Sales growth
Sales growth
Sales growth
Sales growth
Sales growth
(decline)
(decline)
(decline)
(decline)
(decline)
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Channel
vs Q1 2012
vs Q4 2011
vs Q3 2011
vs Q2 2011
vs Q1 2011
Independent
& Other
0.1%
3.8%
1.0%
3.6%
6.0%
Nationals
(1.3%)
1.9%
(7.4%)
(12.2%)
(14.8%)
Independent
& Other
87%
Nationals
13%
Q1 2013 |
 April 23, 2013
7
Gross Margin
dollars in millions
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Dollars
$180.9
$188.3
$203.8
$201.7
$188.5
Rate
14.2%
14.8%
15.8%
16.2%
15.1%
10.0%
12.5%
15.0%
17.5%
20.0%
$-
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0
$175.0
$200.0 |
 April 23, 2013
8
Adjusted Operating Expense*
dollars in millions
Q1 12 *
Q2 12
Q3 12
Q4 12
Q1 13 *
Dollars
$143.1
$137.9
$140.1
$146.3
$148.9
Rate
11.3%
10.8%
10.9%
11.8%
11.9%
7.5%
10.0%
12.5%
15.0%
$-
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0 |
 April 23, 2013
9
Adjusted Operating Income*
dollars in millions
Q1 12 *
Q2 12
Q3 12
Q4 12
Q1 13 *
Dollars
$37.8
$50.3
$63.6
$55.4
$39.7
Rate
3.0%
3.9%
4.9%
4.4%
3.2%
2.0%
3.0%
4.0%
5.0%
6.0%
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0 |
 April 23, 2013
10
Adjusted Earnings per Share*
shares in millions
Q1 12 *
Q2 12
Q3 12
Q4 12
Q1 13 *
EPS
$0.45
$0.66
$0.91
$0.81
$0.56
Diluted Shares
42.420
40.887
40.530
40.406
40.628
-
1.000
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90 |
 April 23, 2013
11
Working Capital Summary
$ Millions
3/31/2012
6/30/2012
9/30/2012
12/31/2012
3/31/2013
Accounts Receivable
642.0
$
655.0
$
669.0
$
658.8
$
632.2
$
Inventories (LIFO)
672.3
692.9
643.6
767.2
726.2
Accounts Payable
433.7
446.6
443.0
495.3
431.9
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Net Trade A/R DSO
40
40
40
40
39
Inventory Turns
6.2
6.4
6.5
5.9
5.7
A/P as % Inventory (LIFO)
65%
64%
69%
65%
59%
A/P as % Inventory (FIFO)
56%
56%
59%
57%
52% |
 April 23, 2013
12
Cash Flows
QTD
QTD
QTD
QTD
2012
QTD
$ Millions
Q1 12
Q2 12
Q3 12
Q4 12
YTD
Q1 13
Net Income
15.1
$
27.0
$
36.8
$
32.9
$
111.8
$
13.9
$
Depreciation & Amortization
8.8
9.0
9.2
10.1
37.1
9.7
Share-based compensation
1.9
1.3
2.0
3.5
8.7
2.4
Change in Accounts Receivable
17.6
(13.2)
(13.7)
31.1
21.8
26.3
Change in Inventory
70.0
(21.1)
49.7
(88.2)
10.4
40.8
Change in Accounts Payable
(65.3)
12.8
(3.5)
40.3
(15.7)
(63.2)
Change in Other Working Capital
(2.4)
5.4
19.4
(0.5)
21.9
(30.6)
Change in Working Capital
19.9
(16.1)
51.9
(17.3)
38.4
(26.7)
Other
(17.8)
(0.8)
7.5
4.9
(6.2)
(12.7)
Adjusted cash provided by operating
activities
27.9
20.4
107.4
34.1
189.8
(13.4)
Capital Expenditures
(4.5)
(5.8)
(10.0)
(12.5)
(32.8)
(9.1)
Proceeds from disposition of fixed assets
0.1
0.0
0.1
0.6
0.8
0.1
Net cash used for capital expenditures *
(4.4)
(5.8)
(9.9)
(11.9)
(32.0)
(9.0)
Free Cash Flow *
23.5
$
14.6
$
97.5
$
22.2
$
157.8
$
(22.4)
$ |
 April 23, 2013
13
Debt and Capitalization
$ Millions
3/31/2012
6/30/2012
9/30/2012
12/31/2012
3/31/2013
Debt
512.2
$
527.1
$
455.0
$
524.4
$
537.0
$
Equity
682.6
689.2
710.8
738.1
754.1
Total capitalization
1,194.8
$
1,216.3
$
1,165.8
$
1,262.5
$
1,291.1
$
Debt-to-total capitalization
42.9%
43.3%
39.0%
41.5%
41.6% |