UNITED STATIONERS INC

CIK:0000355999|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Net sales

$ 1,294,530

$ 1,308,979

$ 3,788,907

$ 3,839,018

Cost of goods sold

1,113,251

1,100,000

3,313,246

3,300,000

Gross profit

181,279

475,661

Operating expenses:

Warehousing, marketing and administrative expenses

173,957

496,076

Restructuring charges

3,967

26,047

Impairment of goodwill

285,166

Operating income (loss)

3,355

(46,462)

Interest and other expense, net

8,678

25,751

Loss before income taxes

(5,323)

(89,000)

(72,213)

(272,400)

Income tax benefit

(828)

(7,100)

(16,181)

(6,900)

Net loss

$ (4,495)

$ (81,938)

$ (56,032)

$ (265,434)

Net loss per share - basic:

$ (0.12)

$ (2.23)

$ (1.52)

$ (7.23)

Average number of common shares outstanding - basic

37,026

36,750

36,940

36,692

Net loss per share - diluted:

^[1]

$ (0.12)

$ (2.23)

$ (1.52)

$ (7.23)

Average number of common shares outstanding - diluted

37,026

36,750

36,940

36,692

Dividends declared per share

$ 0.14

$ 0.42

Revised [Member]

Net sales

^[2]

$ 1,308,979

$ 3,839,018

Cost of goods sold

^[2]

1,137,025

3,303,832

Gross profit

^[2]

171,954

535,186

Operating expenses:

Warehousing, marketing and administrative expenses

^[2]

167,802

501,072

Impairment of goodwill

^[2]

86,339

285,166

Operating income (loss)

^[2]

(82,187)

(251,052)

Interest and other expense, net

^[2]

6,840

21,325

Loss before income taxes

^[2]

(89,027)

(272,377)

Income tax benefit

^[2]

(7,089)

(6,943)

Net loss

^[2]

$ (81,938)

$ (265,434)

Net loss per share - basic:

^[2]

$ (2.23)

$ (7.23)

Average number of common shares outstanding - basic

^[2]

36,750

36,692

Net loss per share - diluted:

^[2]

$ (2.23)

$ (7.23)

Average number of common shares outstanding - diluted

^[2]

36,750

36,692

Dividends declared per share

^[2]

$ 0.14

$ 0.42

[1]	As a result of the net loss in the three and nine months ended September 30, 2018 and 2017, the effect of potentially dilutive securities would have been anti-dilutive and have been omitted from the calculation of diluted earnings per share.
[2]	Revised for the impact of the adoption of a new pension accounting pronouncement (see Note 9 – “Pension and Post-Retirement Benefit Plans”) for further detail.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net loss	$ (56,032)	$ (265,434)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	31,412	32,567
Share-based compensation	6,612	6,115
Gain on the disposition of property, plant and equipment	(977)	(906)
Amortization of capitalized financing costs	1,101	1,065
Deferred income taxes	(11,340)	(15,887)
Change in contingent consideration	(700)	(4,457)
Impairment of goodwill		285,166
Changes in operating assets and liabilities:
Increase in accounts receivable, net	(49,180)	(10,611)
Decrease in inventory	68,725	123,870
Increase in other assets	(10,063)	(1,664)
Increase in accounts payable	45,871	60,706
Increase in accrued liabilities	30,530	2,349
Decrease in other liabilities	(9,020)	(7,886)
Net cash provided by operating activities	46,939	204,993
Cash Flows From Investing Activities:
Capital expenditures	(24,414)	(24,509)
Proceeds from the disposition of property, plant and equipment	510	46
Investment in independent reseller channel	(22,060)
Net cash used in investing activities	(45,964)	(24,463)
Cash Flows From Financing Activities:
Net borrowing under revolving credit facility	23,620	(19,122)
Borrowings under Term Loan		77,600
Repayments under Term Loan	(4,554)	(3,036)
Contingent consideration	(967)	(5,543)
Net repayments under Securitization Program		(200,000)
Net disbursements from share-based compensation arrangements	(837)	(1,273)
Payment of cash dividends	(15,655)	(15,518)
Payment of debt issuance costs		(6,317)
Net cash provided by (used in) financing activities	1,607	(173,209)
Effect of exchange rate changes on cash and cash equivalents	(79)	435
Net change in cash and cash equivalents	2,503	7,756
Cash and cash equivalents, beginning of period	28,802	21,329
Cash and cash equivalents, end of period	31,305	29,085
Other Cash Flow Information:
Income tax payments, net	1,281	23,165
Interest paid	23,493	$ 19,187
Non-cash investment	$ 1,560

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 31,305	$ 28,802
Accounts receivable, less allowance for doubtful accounts of $14,774 in 2018 and $17,102 in 2017	668,038	619,200
Inventories	752,599	821,683
Other current assets	52,882	43,044
Total current assets	1,504,824	1,512,729
Property, plant and equipment, net	128,975	132,793
Intangible assets, net	66,899	73,441
Goodwill	13,099	13,153
Other long-term assets	77,268	42,134
Total assets	1,791,065	1,774,250
Current liabilities:
Accounts payable	546,875	500,883
Accrued liabilities	213,767	189,916
Current maturities of long-term debt	7,632	6,079
Total current liabilities	768,274	696,878
Deferred income taxes	1,082	1,192
Long-term debt	512,316	492,044
Other long-term liabilities	76,226	89,222
Total liabilities	1,357,898	1,279,336
Stockholders’ equity:
Common stock, $0.10 par value; authorized - 100,000,000 shares, issued - 74,435,628 shares in 2018 and 2017	7,444	7,444
Additional paid-in capital	417,383	412,987
Treasury stock, at cost – 36,792,213 shares in 2018 and 36,811,366 shares in 2017	(1,092,315)	(1,093,813)
Retained earnings	1,147,169	1,219,309
Accumulated other comprehensive loss	(46,514)	(51,013)
Total stockholders’ equity	433,167	494,914
Total liabilities and stockholders’ equity	$ 1,791,065	$ 1,774,250