<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
[X] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange
Act of 1934 for the quarterly period ended March 31, 1997 or
--------------
[ ] Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from to
---------- ----------
Commission file number 1-14482
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UNISOURCE WORLDWIDE, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-5369500
- ------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
825 Duportail Road, Wayne, Pennsylvania 19087
P.O. Box 958, Valley Forge, Pennsylvania 19482
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(610) 296-4470
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--------- ---------
* Applicable only to issuers involved in bankruptcy proceedings during the
preceding five years:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes No
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* Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of April 30, 1997.
Common Stock, par value $0.001 67,083,657 shares
<PAGE>
INDEX
UNISOURCE WORLDWIDE, INC.
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page No.
- ------------------------------ --------
<S> <C>
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets -- March 31, 1997 3-4
and September 30, 1996
Condensed Consolidated Statements of Income--Three and Six 5
Month Periods Ended March 31, 1997 and March 31, 1996
Condensed Consolidated Statements of Cash Flows -- Six 6
Month Periods Ended March 31, 1997 and March 31, 1996
Notes to Condensed Consolidated Financial Statements-- 7-8
March 31, 1997
Item 2. Management's Discussion and Analysis of Results 9-13
of Operations and Financial Condition and Liquidity
PART II. OTHER INFORMATION
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
- ----------
</TABLE>
- 2 -
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1: Financial Statements (unaudited)
- ----------------------------------------
UNISOURCE WORLDWIDE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par values and shares)
<TABLE>
<CAPTION>
March 31, September 30,
ASSETS 1997 1996
- ------ ------------------- -------------------
<S> <C> <C>
Current Assets
Cash $ 41,081 $ 14,596
Accounts receivable, net 746,677 790,818
Inventories 463,079 470,217
Prepaid expenses and deferred taxes 50,225 54,853
---------------- ----------------
Total current assets 1,301,062 1,330,484
---------------- ----------------
Long-Term Receivables 7,811 21,890
Property and Equipment, at cost 405,610 396,681
Less accumulated depreciation 188,478 172,513
---------------- ----------------
217,132 224,168
---------------- ----------------
Goodwill 511,709 509,850
Deferred Costs and Other Assets 131,701 105,322
---------------- ----------------
$ 2,169,415 $ 2,191,714
================ ================
</TABLE>
See notes to condensed consolidated financial statements.
- 3 -
<PAGE>
UNISOURCE WORLDWIDE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par values and shares)
<TABLE>
<CAPTION>
March 31, September 30,
LIABILITIES AND STOCKHOLDERS' EQUITY 1997 1996
- ------------------------------------ ----------------- ---------------------
<S> <C> <C>
Current Liabilities
Current portion of long-term debt $ 697 $ 840
Notes payable 11,293 38,367
Trade accounts payable 382,200 438,899
Accrued salaries, wages and commissions 22,223 27,011
Restructuring costs 10,040 15,575
Other accrued expenses 97,508 59,000
--------------- -------------
Total current liabilities 523,961 579,692
--------------- -------------
Long-Term Debt 595,792 21,097
Notes and Advances Payable to IKON 517 553,700
Other Liabilities
Deferred taxes 47,201 54,462
Restructuring costs 11,000 13,896
Other long-term liabilities 43,144 33,366
--------------- -------------
101,345 101,724
--------------- -------------
Stockholders' Equity
Common stock, 3/31/97 - par value $.001, authorized - 250,000,000 shares,
issued and outstanding - 67,110,094 shares; 9/30/96 - par value $.01,
authorized - 10,000,000 shares, issued and outstanding - 100,000 shares 67 1
Additional paid in capital 780,196 778,444
Retained earnings 198,739 181,458
Foreign currency translation adjustments (31,202) (24,402)
--------------- -------------
947,800 935,501
--------------- -------------
$ 2,169,415 $ 2,191,714
=============== =============
</TABLE>
See notes to condensed consolidated financial statements.
- 4 -
<PAGE>
UNISOURCE WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
--------------------------------- ------------------------------
1997 1996 1997 1996
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues $ 1,715,908 $ 1,746,821 $ 3,444,441 $ 3,462,986
------------- -------------- ------------- -------------
Costs and Expenses
Cost of goods sold 1,423,929 1,457,099 2,852,358 2,903,800
Selling and administrative 263,040 234,440 518,040 453,717
------------- -------------- ------------- -------------
1,686,969 1,691,539 3,370,398 3,357,517
------------- -------------- ------------- -------------
Income from operations 28,939 55,282 74,043 105,469
Interest expense 10,030 8,169 20,391 15,074
------------- -------------- ------------- -------------
Income before taxes 18,909 47,113 53,652 90,395
Provision for income taxes 8,361 18,482 22,953 35,535
------------- -------------- ------------- -------------
Net income $ 10,548 $ 28,631 $ 30,699 $ 54,860
============= ============== ============= =============
Earnings Per Share $0.16 $0.45
Pro Forma Earnings Per Share $0.41 $0.76
Shares Outstanding 67,957 67,576 67,813 67,576
</TABLE>
See notes to condensed consolidated financial statements.
- 5 -
<PAGE>
UNISOURCE WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Six Months Ended March 31,
--------------------------------------
1997 1996
------------- --------------
<S> <C> <C>
Operating Activities
Net income $ 30,699 $ 54,860
Additions (deductions) to reconcile net income
to net cash provided by operating activities:
Depreciation 15,081 12,839
Amortization 8,196 5,507
Provision for losses on accounts receivable 9,846 6,404
Payments for restructuring costs (8,431) (24,961)
Changes in operating assets and liabilities, net of effects from
acquisitions:
Decrease in accounts receivable 29,031 119,948
Decrease in inventories 8,178 40,761
Decrease in prepaid expenses 4,928 3,917
Decrease in accounts payable and
accrued expenses (22,197) (153,171)
Miscellaneous (1,012) (2,705)
------------- --------------
Net cash provided by operating activities 74,319 63,399
------------- --------------
Investing Activities
Proceeds from the sale of property and equipment 5,814 2,755
Collection of notes receivable 21,105 -
Cost of companies acquired, net of cash acquired (16,766) (115,910)
Expenditures for property and equipment (13,103) (21,170)
Deferred cost expenditures (25,645) (33,643)
------------- --------------
Net cash used in investing activities (28,595) (167,968)
------------- --------------
Financing Activities
Debt repayments (38,748) (40,420)
Proceeds from revolving credit facility borrowings, net 586,110 -
(Repayments to) proceeds from IKON (553,183) 142,952
Payment of dividends (13,418) -
------------- --------------
Net cash (used in) provided by financing activities (19,239) 102,532
------------- --------------
Net increase (decrease) in cash 26,485 (2,037)
Cash at beginning of year 14,596 23,657
------------- --------------
Cash at end of period $ 41,081 $ 21,620
============= ==============
</TABLE>
See notes to condensed consolidated financial statements.
- 6 -
<PAGE>
UNISOURCE WORLDWIDE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1997
Note 1: Spin-off and Basis of Presentation
----------------------------------
Effective December 31, 1996, one share of Unisource Worldwide, Inc. (the
"Company" or "Unisource") common stock was distributed to holders of Alco
Standard Corporation ("Alco") common stock for every two shares of Alco common
stock owned at the established record date (the "Spin-off"). Effective January
23, 1997, Alco changed its name to IKON Office Solutions, Inc. ("IKON"). At the
time of the Spin-off, the Company became a separate publicly owned company.
The unaudited condensed consolidated financial statements included
herein, for periods prior to December 31, 1996, have been prepared on the
historical cost basis and present the Company's financial position, results of
operations and cash flows as derived from Alco's historical financial
statements, except that the method of allocation of general corporate expenses
has been changed to more appropriately reflect the Company's actual use of
corporate services. Alco's interest expense on consolidated borrowings for the
three and six month periods ended March 31, 1996 was allocated to Unisource
based on the relationship of its net assets to consolidated Alco net assets. The
Company's interest expense for the three and six month periods ended March 31,
1997 was based on its actual borrowings, including notes and advances payable to
IKON and borrowings under the Company's credit facility described in Note 2.
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and the instructions to Form 10-Q and Article
10 of Regulation S-X. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. The results of operations for the three and six month periods
ended March 31, 1997 are not necessarily indicative of the results that may be
expected for the fiscal year ending September 30, 1997. These financial
statements should be read in conjunction with the consolidated financial
statements and notes thereto of the Company included in its Form 10 Registration
Statement that became effective November 26, 1996.
Note 2: Debt
----
On November 22, 1996, the Company entered into a $1,000,000,000
five-year unsecured revolving credit facility. The credit facility includes
multicurrency options for up to $100,000,000 in Pounds Sterling, Deutsche Marks
and French Francs and a $100,000,000 subfacility for Canadian dollar loans.
Borrowings under the revolver bear interest at either the Alternate Base Rate
(as defined) or LIBOR plus a spread equal to 18.5 basis points during the
initial six months of the credit facility. After the initial six month period,
the LIBOR spread will range from 14.5 to 30 basis points, depending on certain
financial ratios or credit ratings. The credit facility provides for certain
fees, including a facility fee and utilization fee. The facility fee ranges from
8 to 15 basis points per annum on the full amount of the credit facility,
determined in a manner consistent with the LIBOR spread described above. A
utilization fee of 5 basis points per annum accrues on the aggregate
- 7 -
<PAGE>
amount of all loans outstanding during the initial six months of the credit
facility, and 5 basis points per annum thereafter each day the aggregate amount
of all loans under the credit facility exceeds two-thirds of the aggregate
commitment. The credit facility includes financial covenants requiring a ratio
of funded debt to capitalization of less than 55% and a minimum net worth of
$745,000,000 plus 50% of consolidated net income (without deduction for losses)
after the date of the credit facility.
The amount outstanding under this facility at March 31, 1997 was
$586,110,000. The majority of these proceeds were used to repay intercompany
debt to IKON in conjunction with the Spin-off.
Note 3: Earnings Per Share and Pro Forma Earnings Per Share
---------------------------------------------------
Earnings per share for the three month period ended March 31, 1997 was
calculated based on the weighted average number of Company shares issued and
outstanding for the quarter, plus the dilutive effect of stock options. Earnings
per share for the six month period ended March 31, 1997 was calculated based
upon the weighted average number of Company shares issued and outstanding for
the period December 31, 1996 ("Spin-off" date) through March 31, 1997, plus the
dilutive effect of stock options.
Pro Forma earnings per share for the three and six month periods ended
March 31, 1996 includes additional pro forma interest expense of $1,763,000
($1,084,000 net of tax), and $5,504,000 ($3,343,000 net of tax), respectively,
which assumes that the Spin-off occurred on October 1, 1995. The share base
utilized for the pro forma earnings per share computation is based on the number
of Company shares issued and outstanding as of December 31, 1996, plus the
dilutive effect of stock options.
- 8 -
<PAGE>
Item 2: Management's Discussion and Analysis of Results of Operations and
-----------------------------------------------------------------
Financial Condition and Liquidity
---------------------------------
Results of Operations
---------------------
Revenues and income before taxes for the three and six month periods ended March
31, 1997 compared to the three and six month periods ended March 31, 1996 were
as follows:
<TABLE>
<CAPTION>
Three Months Ended March 31 Six Months Ended March 31
--------------------------- -------------------------
($'s in millions) 1997 1996 % Change 1997 1996 % Change
---- ---- -------- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C>
Revenues $1,715.9 $1,746.8 (1.8)% $3,444.4 $3,462.9 (.5)%
======== ======== ======== ========
Gross Profit 291.9 289.7 .8 % 592.1 559.2 5.9 %
Selling and
Administrative Expense 263.0 234.4 12.2 % 518.0 453.7 14.2 %
-------- -------- -------- --------
Operating Income 28.9 55.3 (47.7)% 74.1 105.5 (29.8)%
Interest Expense 10.0 8.2 22.8 % 20.4 15.1 35.3 %
-------- -------- -------- --------
Income Before Taxes $ 18.9 $ 47.1 (59.9)% $ 53.7 $ 90.4 (40.6)%
======== ======== ======== ========
</TABLE>
QUARTER ENDED MARCH 31, 1997:
Revenues decreased $30.9 million, or 1.8%, to $1.72 billion in the second
quarter of fiscal 1997 as compared to the same period in fiscal 1996. The change
is due to an increase of $87 million associated with current and prior year
acquisitions, which were offset by a decline of $117.9 million in base
operations. The decline in base operations is principally due to an estimated
decrease in average paper prices of 12% for the quarter, as compared to the same
period last year. This price deflation was partially offset by volume gains in
the base operations.
Gross margins increased by $2.2 million, or .8%, to $291.9 million in the second
quarter of fiscal 1997, as compared to the same period in fiscal 1996. This
change is due to an increase of $23.0 million associated with current and prior
year acquisitions, offset by a decline of $20.8 million in base operations.
Gross margin as a percentage of revenues rose to 17% from 16.6% for the three
month period, due to lower costs from suppliers for many products and higher
gross margin percentages generated by acquired companies.
Selling and administrative expense increased by $28.6 million, or 12.2%, in the
second quarter of fiscal 1997, when compared with the corresponding period of
fiscal 1996. The increase is primarily attributable to costs associated with
current and prior year acquisitions along with expenditures associated with the
implementation of the new information technology system.
-9-
<PAGE>
Operating income decreased $26.4 million, or 47.7%, for the quarter compared to
the prior year's quarter. Current and prior year acquisitions contributed an
incremental $1.9 million of operating income for the three month period.
Operating income from base operations declined $28.3 million for the three month
period primarily due to paper price declines and expenses related to the
implementation of the new information technology system, which were partially
offset by improvement in gross margin percentages and volume increases.
Operating margins were 1.7% for the quarter, compared to 3.2% for the
corresponding period of fiscal 1996.
Interest expense increased by $1.8 million during the quarter as compared to the
same period of the prior year. The increase was attributable to higher average
outstanding borrowings due to the recapitalization of the Company as of
September 30, 1996 in anticipation of the Spin-off from Alco Standard
Corporation. The $8.2 million of interest expense for the respective three month
period of fiscal 1996 represents an allocation of Alco's outside interest
expense based on the relationship of the Company's net assets to Alco's net
assets, plus interest expense associated with direct indebtedness of the
Company, which was not significant. Interest expense on a pro forma basis for
the three month period of fiscal 1996 was $10.0 million, assuming that the
Spin-off occurred on October 1, 1995.
Foreign Operations
Revenues from foreign operations decreased $8.8 million to $218.9 million for
the three month period ended March 31, 1997, as compared to the same period of
fiscal 1996. Revenues from Canadian operations decreased $13 million to $180.7
million, while revenues from Mexican operations increased $5.1 million to $26.6
million. The decrease in Canadian revenues was attributable to declining paper
prices, while the increase in Mexico was the result of acquisitions, which was
partially mitigated by lower paper prices. Also, revenues from the foreign sales
offices (Vienna and Hong Kong) decreased $.9 million to $11.6 million for the
three month period.
Operating income from foreign operations decreased $.9 million to $7.8 million
for the three month period ended March 31, 1997, as compared to the same period
of fiscal 1996. Canadian operating income decreased $.7 million to $6.4 million
for the three month period ended March 31, 1997, primarily due to lower paper
prices. Mexican operating income was essentially flat at $1.2 million for the
three month period, as compared to the corresponding period of the prior year,
with the increase from acquisitions being offset by a decline in paper prices.
The foreign sales offices operating income decreased by $.1 million for the
quarter.
There was no material effect of foreign currency exchange rate fluctuations on
the results of operations during the period as compared to the same period of
the prior fiscal year.
- 10 -
<PAGE>
SIX MONTHS ENDED MARCH 31, 1997:
Revenues for this period decreased $18.5 million, or .5%, to $3.44 billion, as
compared to the same period in fiscal 1996. The decrease was due to increases
associated with current and prior year acquisitions of $239 million, which were
offset by revenue declines of $257.5 million in base operations for the six
month period ended March 31, 1997. The decline in base operations is principally
due to an estimated decrease in average paper prices of 14%, as compared to the
same period last year. This price deflation was partially offset by volume gains
in the base operations.
Gross margins for this period increased by $32.9 million, or 5.9%, as compared
to the same period in fiscal 1996. This change is due to an increase of $62.8
million associated with current and prior year acquisitions, offset by declines
of $29.9 million in base operations for the six month period ended March 31,
1997. Gross margin as a percentage of revenues rose to 17.2% from 16.1% for the
six month period, due to lower costs from suppliers for many products and higher
margin percentages generated by acquired companies.
Selling and administrative expense increased by $64.3 million, or 14.2%, for the
six month period ended March 31, 1997, when compared with the corresponding
period of fiscal 1996. The increase is primarily attributable to costs
associated with current and prior year acquisitions along with expenditures
associated with the implementation of the new information technology system.
Operating income for the six month period decreased $31.4 million, or 29.8%, as
compared to the same period of fiscal 1996. Current and prior year acquisitions
contributed an incremental $11.7 million of operating income. Operating income
from base operations declined $43.1 million for the six month period, primarily
due to paper price declines and expenses related to the implementation of the
new information technology system, which were partially offset by improvement in
gross margin percentages and volume increases. Operating margins were 2.1%,
compared to 3.0% for the corresponding six month period of fiscal 1996.
Interest expense increased by $5.3 million as compared to the first six months
of fiscal 1996. The increase was attributable to higher average outstanding
borrowings due to the recapitalization of the Company as of September 30, 1996
in anticipation of the Spin-off from Alco Standard Corporation. The $15.1
million of interest expense for the six month period of fiscal 1996 represents
an allocation of Alco's outside interest expense based on the relationship of
the Company's net assets to Alco's net assets, plus interest expense associated
with direct indebtedness of the Company, which was not significant. Interest
expense on a pro forma basis for the six month period of fiscal 1996 was $20.6
million, assuming that the Spin-off occurred on October 1, 1995.
-11-
<PAGE>
Foreign Operations
Revenues from foreign operations decreased $7.7 million to $435.0 million for
the six month period ended March 31, 1997, as compared to the same period of
fiscal 1996. Revenues from Canadian operations decreased $26.7 million to $362.7
million, while revenues from Mexican operations increased $18.8 million to $53.5
million. The decrease in Canadian revenues was attributable to declining paper
prices, while the increase in Mexico was the result of acquisitions, which was
partially mitigated by lower paper prices. Also, revenues from the foreign sales
offices (Vienna and Hong Kong) increased $.2 million to $18.8 million for the
six month period ended March 31, 1997.
Operating income from foreign operations decreased $3.3 million to $15.0 million
for the six month period, as compared to the same period of fiscal 1996.
Canadian operating income decreased $2.7 million to $12.7 million, primarily due
to lower paper prices. Mexican operating income was flat at $2.6 million, with
the increase from acquisitions being offset by a decline in paper prices. The
foreign sales offices operating income decreased by $.5 million for the six
month period ended March 31, 1997.
There was no material effect of foreign currency exchange rate fluctuations on
the results of operations during the first six months of fiscal 1997 compared to
the first six months of fiscal 1996.
Financial Condition and Liquidity
- ---------------------------------
Net cash provided by operating activities for the first six months of fiscal
1997 was $74.3 million. Included in operating activities were cash expenditures
of $8.4 million in connection with the Company's $50 million restructuring
program initiated in the third quarter of fiscal 1996. Remaining restructuring
cash expenditures are estimated at $21 million. During the same period $28.6
million in cash was used for investing activities which included deferred cost
expenditures of $25.6 million principally associated with the continuing
development of the Company's new information technology system, capital
expenditures of $13.1 million and expenditures for acquisitions of $16.8
million. Investing activity expenditures were partially offset by proceeds
received from the sale of property and the collection of notes receivable. Cash
used in financing activities of $19.2 million included net proceeds received
from borrowings under the Company's credit facility of $586.1 million offset by
a $553.2 million net debt repayment to IKON, $38.7 million of other third party
debt payments, and a dividend payment of $13.4 million.
On March 31, 1997, total debt of $608 million was outstanding. The Company had a
total of $1 billion in bank credit commitments as of March 31, 1997, of which
$413.9 million was unused and available.
The Company's shelf registration for 5 million shares of common stock was
effective as of May 8, 1997 and will be primarily used for acquisitions.
In May 1997, the Company declared a dividend on its Common Stock of $.20 per
share payable on June 10, 1997 to shareholders of record on May 21, 1997.
- 12 -
<PAGE>
The Company believes that its operating cash flow, together with financing
arrangements, will be sufficient to finance current operating requirements,
including capital and deferred cost expenditures, acquisitions, other cash
requirements, and future dividends.
The preceding sentence is a forward looking statement based upon management's
current plans and expectations and is subject to a number of uncertainties and
risks that could cause actual results to differ materially. Such uncertainties
and risks include changes in pulp and paper prices and market conditions within
the Company's businesses, delays or difficulties associated with systems
implementation programs, debt service requirements, and the availability of, and
ability to close, acquisition opportunities on terms acceptable to the Company.
For further detail and information concerning the foregoing, please consult the
"Forward-Looking Information" and "Risk Factors" sections of the Company's
Information Statement dated November 26, 1996 that is included as part of its
Registration Statement on Form 10.
- 13 -
<PAGE>
PART II. - OTHER INFORMATION
<TABLE>
<CAPTION>
Item 6. Exhibits and Reports on Form 8-K Page No.
- ----------------------------------------- --------
<S> <C>
(a) The following Exhibit is furnished pursuant to Item 601 of Regulation S-K:
Exhibit No. (27) Financial Data Schedule. 16
(b) Reports on Form 8-K
The following reports on Form 8-K were filed by the Company prior to -
the filing of this Form 10-Q:
Financial
Item Reported Statement Filed Date of Report File Date
------------- --------------- -------------- ---------
Press release disclosing comments on
preliminary financial results for the Not
second quarter of fiscal 1997 Applicable March 19, 1997 March 24, 1997
Press release disclosing second quarter Not
fiscal 1997 financial results Applicable April 15, 1997 April 18, 1997
</TABLE>
- 14 -
<PAGE>
SIGNATURES
- ----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized. This report has also been signed by the
undersigned in his capacity as the chief accounting officer of the Registrant.
UNISOURCE WORLDWIDE, INC.
Date: May 15, 1997 /s/ Robert M. McLaughlin
------------------------
Robert M. McLaughlin
Vice President and Controller
(Chief Accounting Officer)
-15-
<PAGE>
INDEX TO EXHIBITS
Exhibit Number
- --------------
(27) Financial Data Schedule.
-16-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
condensed consolidated financial statements of Unisource Worldwide, Inc. and
subsidiaries and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 41,081,000
<SECURITIES> 0
<RECEIVABLES> 775,368,000
<ALLOWANCES> 28,691,000
<INVENTORY> 463,079,000
<CURRENT-ASSETS> 1,301,062,000
<PP&E> 405,610,000
<DEPRECIATION> 188,478,000
<TOTAL-ASSETS> 2,169,415,000
<CURRENT-LIABILITIES> 523,961,000
<BONDS> 596,309,000
0
0
<COMMON> 67,000
<OTHER-SE> 947,733,000
<TOTAL-LIABILITY-AND-EQUITY> 2,169,415,000
<SALES> 3,444,441,000
<TOTAL-REVENUES> 3,444,441,000
<CGS> 2,852,358,000
<TOTAL-COSTS> 2,852,358,000
<OTHER-EXPENSES> 508,194,000
<LOSS-PROVISION> 9,846,000
<INTEREST-EXPENSE> 20,391,000
<INCOME-PRETAX> 53,652,000
<INCOME-TAX> 22,953,000
<INCOME-CONTINUING> 30,699,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,699,000
<EPS-PRIMARY> 0.45
<EPS-DILUTED> 0.45
</TABLE>
