United States
Securities and Exchange Commission
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 27, 1998
(April 27, 1998)
Commission file numbers: United Stationers Inc.: 0-10653
United Stationers Supply Co.: 33-59811
UNITED STATIONERS INC.
UNITED STATIONERS SUPPLY CO.
(Exact name of Registrant as specified in its charter)
United Stationers Inc.: Delaware 36-3141189
United Stationers Supply Co.: Illinois 36-2431718
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
2200 East Golf Road
Des Plaines, Illinois 60016-1267
(847) 699-5000
(Address, including zip code and telephone number, including
area code, of registrant's executive offices)
<PAGE>
United Stationers Inc. and United Stationers Supply Co.
This Form 8-K is filed for each of United Stationers Inc., a
Delaware corporation, and its wholly owned subsidiary,
United Stationers Supply Co., an Illinois corporation
(collectively the "Company"). United Stationers Inc. is a
holding company with no operations separate from its
operating subsidiary, United Stationers Supply Co. and its
subsidiaries. No separate financial information for United
Stationers Supply Co. and its subsidiaries has been provided
herein because management for the Company believes such
information would not be meaningful because (i) United
Stationers Supply Co. is the only direct subsidiary of
United Stationers Inc., which has no operations other than
those of United Stationers Supply Co. and (ii) all assets
and liabilities of United Stationers Inc. are recorded on
the books of United Stationers Supply Co.
Item 5. Other Events
On April 27, 1998 the registrant issued a press release
regarding 1st quarter 1998 earnings.
Item 7. Exhibits
Exhibit 99
Press release issued by the Company on April 27, 1998.
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.
United Stationers Inc.
United Stationers Supply Co.
Dated: April 27, 1998 By: /s/ Daniel H. Bushell
Daniel H. Bushell
Executive Vice President and
Chief Financial Officer
Exhibit 99
Kathleen S. Dvorak
Vice President, Investor Relations
or
Daniel H. Bushell
Executive Vice President and
Chief Financial Officer
United Stationers Inc.
(847) 699-5000
FOR IMMEDIATE RELEASE
UNITED STATIONERS REPORTS
SALES UP 12%, EARNINGS PER SHARE UP 35%
DES PLAINES, Ill., Apr. 27, 1998 -- United Stationers Inc.
(NASDAQ: USTR) reported record earnings per share on a diluted
basis of $0.88 for its first quarter ended March 31, 1998, up
35.4% compared with $0.65 in the first quarter of 1997. Net
income attributable to common stockholders for the first quarter
of 1998 was $15.1 million, up 58.0% from $9.6 million in the
comparable prior-year quarter. Net sales for the quarter were
$712.5 million, up 12.2% compared with sales of $635.0 million
for the first three months of 1997.
"Our consistent operational performance has allowed us to
deliver eight consecutive record quarters in both sales and
earnings. Each and every day we earn our customers' trust in our
ability to perform the warehousing and distribution function on
their behalf," said Randall W. Larrimore, president and chief
executive officer.
"Sales in the first quarter increased by 12.2%. Our sales
growth was broad-based - across all product segments, all
customer classes and all geographic regions. In addition, the
quarter benefited from the inclusion of the Good Friday holiday
in April 1998 versus March 1997," said Dan Bushell, executive
vice president and chief financial officer.
-more-
<PAGE>
United Stationers Reports
Sales Up 12%, Earnings Per Share Up 35%
Page two of four
"Our gross margin percentage for the quarter was 17.2%,
compared with 17.1% in 1997. Operating expenses were 11.9% of net
sales in 1998, compared with 12.1% in 1997. Operating margins
expanded to 5.3% in 1998, compared with 5.0% in 1997," stated
Bushell.
"We believe that the industry dynamics favorable to
wholesalers, such as outsourcing, will continue. This trend,
combined with the geographic expansion of Lagasse, integration of
the Azerty acquisition, and initiatives resulting from our
strategic planning process will provide the basis for future
growth," concluded Larrimore.
Certain information contained in this news release is
forward looking. These forward-looking statements may be
affected by the risks and uncertainties involved in the company's
business. This information is qualified in its entirety by the
cautionary statements contained in certain of United Stationers'
Securities and Exchange Commission filings.
United Stationers Inc. is North America's largest wholesaler
of business products to resellers. Through its computer-based
distribution system, it makes more than 30,000 items available to
over 15,000 resellers substantially within 24 hours of order
placement through 62 regional distribution centers.
United Stationers' common stock trades on The Nasdaq Stock
MarketSM under the symbol USTR.
-table follows-
<PAGE>
United Stationers Reports
Sales Up 12%, Earnings Per Share Up 35%
Page three of four
United Stationers and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
1998 1997
Net sales $ 712,517 $ 63
5,021
Cost of goods sold 589,455 526,279
Gross profit 123,062 108,742
Operating expenses 85,037 76,704
Income from operations 38,025 32,038
Interest expense 11,826 14,661
Income before income taxes 26,199 17,377
Income taxes 11,108 7,368
Net income 15,091 10,009
Preferred stock dividends issued and accrued -- 455
Net income attributable to
common stockholders $ 15,091 $ 9,554
Net income per common share -
assuming dilution $ 0.88 $ 0.65
Average number of common shares
(in thousands) 17,098 14,608
- table continues -
<PAGE>
United Stationers Reports
Sales Up 12%, Earnings Per Share Up 35%
Page four of four
United Stationers Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except share data)
(unaudited)
March 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 11,504 $ 17,584
Accounts receivable, net 282,237 255,854
Inventories 484,911 452,989
Other current assets
15,754 25,164
Total current assets 794,406 751,591
Property, plant and equipment, net 161,894 169,786
Goodwill, net 111,110 114,689
Other
20,282 29,106
Total assets $ 1,087,692 $ 1,065,172
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable $ 235,915 $ 223,552
Accrued liabilities 107,616 101,464
Current maturities of long-term debt
19,551 23,306
Total current liabilities 363,082 348,322
Deferred income taxes 19,208 36,347
Long-term obligations
468,773 551,087
Total liabilities 851,063 935,756
Redeemable preferred stock - 20,240
Redeemable warrants - 24,807
Stockholders' equity:
Common stock (voting), $0.10 par value;
40,000,000 authorized;
16,024,019 and 11,446,306, 1,602 1,145
respectively, issued and outstanding
Common stock (non-voting), $0.01 par
value; 5,000,000 authorized;
0 and 758,994, respectively, issued - 8
and outstanding
Additional paid-in capital 211,261 44,947
Retained earnings 23,766 38,269
Total stockholders' equity 236,629 84,369
Total liabilities and
stockholders' equity $ 1,087,692 $ 1,065,172
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