DEERFIELD, Ill., Feb. 16, 2016 /PRNewswire/ -- Essendant
Inc. (NASDAQ: ESND), a leading supplier of workplace essentials, today announced financial results for the fourth quarter and
year ended December 31, 2015. Key results were as follows:
- FY 2015 adjusted earnings per share of $3.08 (1)
- Q4 2015 adjusted earnings per share increased three cents to $0.81(1) year-over-year
- FY 2015 sales increased 0.7% year-over-year
- Q4 2015 sales declined 2.7% year-over-year
- FY 2015 GAAP net income (loss) declined to $(1.18) per share from $2.87 per share in 2014 due principally to goodwill impairments and restructuring actions
- Restructuring charges and industrial asset impairment drove Q4 2015 GAAP net loss of $95.8
million
- FY 2015 free cash flow increased by $79.7 million to $134.6
million
- Reached agreement with Staples to acquire more than $550 million in wholesale corporate
contract business contingent on the Office Depot merger
"In 2015 we took a series of actions to position the company for success, including renewing the focus on our core Office
Product and JanSan businesses, lowering our cost structure and rebranding to Essendant," said Robert B.
Aiken, Jr., president and chief executive officer of Essendant. "The impact of our actions was reflected in our
fourth quarter as the team executed well – delivering strong earnings per share in the face of macroeconomic headwinds. As
we look ahead, we are well-positioned to continue implementing our strategic initiatives and deliver revenue and earnings growth
in 2016 consistent with our previous guidance."
Management Perspective
- Management has placed significant focus on the transition to a common operating and IT platform to drive operating and cost
efficiencies, and expects the Office Product and JanSan categories to be on the common platform at the beginning of Q2
2016
- Essendant continued its efforts to exit non-strategic businesses (MBS Dev technology subsidiary in 2014, Mexico business in 2015) as part of its efforts to deliver long-term profitability and shareholder
value
- Management remains upbeat about the company's opportunity set regardless of outcome in the Staples-Office Depot merger, and
expects increased business in the core Office Product and JanSan categories to be a significant contributor to growth in
2016
Fourth Quarter Results
- Net sales declined 2.7% versus the prior year quarter. Organic sales declined across the portfolio and partly offset by
growth from acquisitions in the Automotive category, which contributed $46.4 million in sales
year-over-year. Excluding the impact of acquisitions and the sale of the Mexico business,
sales were down 4.2%.
- Adjusted operating income rose by $1.8 million to $54.1 million despite lower sales and gross
margin, due to acquisitions and a decrease in adjusted operating expense resulting from cost actions and lower variable
compensation expense. GAAP operating income (loss) fell by $123.3 million to $(79.2) million due
to charges.
- Adjusted EBITDA rose by $1.5 million to $66.1 million, due to higher adjusted operating
income.
- Adjusted net income fell by $0.3 million to $30.0 million due
to higher adjusted operating income, offset by higher interest. GAAP net income (loss) fell by $117.9
million to $(95.8) million due to goodwill impairment and restructuring actions.
- Adjusted earnings per share were $0.81(1), compared to $0.78 last year due to acquisitions and cost containment. GAAP net income (loss) amounted to $(2.61) per share due to industrial asset impairment and restructuring.
Impairment of ORS Industrial Business
One-time charges totaling $120.7 million related to the ORS Industrial business unit were
incurred in the fourth quarter of 2015. These charges are comprised of an impairment of goodwill and intangibles totaling
$115.8 million and a reserve increase for obsolete inventory of $4.9
million, and are a result of declines in the oilfield and energy sectors.
Under new leadership, the ORS Industrial business has revised its merchandising and sales strategy to diversify its offerings
and lessen dependencies on the oilfield and energy sectors as the environment in those sectors is expected to remain
challenging.
Cost Reduction Plan
As previously disclosed, during the fourth quarter Essendant executed a plan to reduce operating costs by approximately
$20 million on an annualized basis by the first quarter of 2016. This plan included steps to
de-layer the management structure and simplify the organization as it transitions to a common operating and IT platform through a
combination of voluntary retirement and involuntary workforce reductions. The company incurred on-time severance costs of
$11.9 million in the fourth quarter of 2015 related to this plan.
Agreement with Staples, Inc.
The company reached an agreement to purchase more than $550 million worth of annual contracts
with minority and woman-owned office supply resellers and their large corporate and other enterprise customers from Staples, Inc.
The transaction is subject to the successful completion of the proposed merger of Staples and Office Depot, as well as other
regulatory and customary closing conditions. Under the terms of the agreement, Essendant will pay Staples approximately
$22.5 million.
In the first year following closing, Essendant anticipates minimal impact to earnings per share and expects to make further
investments in working capital of approximately $100 million to support the business.
Guidance
The company reaffirms its previously announced 2016 outlook, and currently expects the following:
- Low to mid-single digit revenue growth compared to 2015, or total company revenue in the range of $5.4 billion to $5.6 billion;
- High single digit adjusted earnings per share growth compared to prior year, or EPS in the range of $3.20 to $3.40;
- Annual free cash flow equal to or greater than net income.
The guidance above excludes the impact of the enterprise account business that would be acquired in the Staples transaction,
any new acquisitions or unusual charges.
Conference Call
Essendant will hold a conference call followed by a question and answer session on Wednesday, February
17, 2016, at 7:30 a.m. CDT, to discuss fourth quarter 2015 results. To participate, callers
within the U.S. and Canada should dial (877) 358-2531 and international callers should dial
(412) 902-6623 approximately 10 minutes before the presentation. The conference ID is "10078476." To listen to the
webcast, participants should visit the Investors section of the company's website (investors.essendant.com), and click on the "Q4-15 Earnings Release" button on the right side
of the page, several minutes before the event is broadcast. Interested parties can access an archived version of the
call, this news release, a financial slide presentation and other information related to the call, also located on the quarterly results section of Essendant's
investor website, about two hours after the call ends.
Forward-Looking Statements
This news release 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: Essendant's reliance on key customers,
and the risks inherent in continuing or increased customer concentration and consolidations; end-user demand for products in the
office, technology, and furniture product categories may continue to decline; the impact of Essendant's repositioning activities
on Essendant's customers, suppliers, and operations; Essendant'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;
prevailing economic conditions and changes affecting the business products industry and the general economy; Essendant's ability
to maintain its existing information technology systems and to successfully procure, develop and implement new systems and
services without business disruption or other unanticipated difficulties or costs; the impact of price transparency, customer
consolidation, and changes in product sales mix on Essendant's margins; the impact on the company's reputation and relationships
of a breach of the company's information technology systems; the risks and expense associated with Essendant's obligations to
maintain the security of private information provided by Essendant's customers; Essendant's reliance on supplier allowances and
promotional incentives; the creditworthiness of Essendant's customers; continuing or increasing competitive activity and pricing
pressures within existing or expanded product categories, including competition from product manufacturers who sell directly to
Essendant's customers; the impact of supply chain disruptions or changes in key suppliers' distribution strategies; Essendant's
ability to manage inventory in order to maximize sales and supplier allowances while minimizing excess and obsolete inventory;
Essendant's success in effectively identifying, consummating and integrating acquisitions; the costs and risks related to
compliance with laws, regulations and industry standards affecting Essendant's business; the availability of financing sources to
meet Essendant's business needs; Essendant'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 Essendant's results, please see the company's Securities
and Exchange Commission filings. The forward-looking information in this news release 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 Essendant regarding the matters discussed in this news 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.
Company Overview
Essendant Inc. is a leading supplier of workplace essentials, with 2015 net sales of $5.4
billion. The company stocks a broad assortment of over 180,000 items, including technology products, traditional office
products, janitorial and breakroom supplies, office furniture, industrial supplies, and automotive aftermarket tools. The
Company's network of 74 distribution centers enables the Company to ship most products overnight to more than ninety percent of
the U.S. For more information, visit www.essendant.com.
Essendant common stock trades on the NASDAQ Global Select Market under the symbol ESND.
For Further Information Contact:
Kaveh Bakhtiari
investorrelations@essendant.com
(847) 627-2900
|
(1)
|
This is non-GAAP information. See the Reconciliation of Non-GAAP Financial
Measures section of this document for more information.
|
|
|
|
Note: All EPS numbers in this document are diluted unless stated
otherwise.
|
|
|
|
-tables follow-
|
|
Essendant Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share data)
|
|
|
For the Three Months Ended
|
|
For the Years Ended
|
|
December 31,
|
|
December 31,
|
|
2015
|
|
|
2014 (Revised)*
|
|
2015
|
|
|
2014 (Revised)*
|
|
Net sales
|
$
|
1,297,327
|
|
|
$
|
1,333,082
|
|
$
|
5,363,046
|
|
|
$
|
5,327,205
|
|
Cost of goods sold
|
|
1,096,489
|
|
|
|
1,123,684
|
|
|
4,526,551
|
|
|
|
4,524,676
|
|
Gross profit
|
|
200,838
|
|
|
|
209,398
|
|
|
836,495
|
|
|
|
802,529
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehousing, marketing and administrative expenses
|
|
162,773
|
|
|
|
157,135
|
|
|
675,913
|
|
|
|
595,673
|
|
Impairments of goodwill and intangible assets
|
|
115,825
|
|
|
|
9,034
|
|
|
129,338
|
|
|
|
9,034
|
|
Loss (gain) on disposition of business
|
|
1,461
|
|
|
|
(800)
|
|
|
1,461
|
|
|
|
(800)
|
|
Operating income (loss)
|
|
(79,221)
|
|
|
|
44,029
|
|
|
29,783
|
|
|
|
198,622
|
|
Interest expense, net
|
|
4,668
|
|
|
|
4,534
|
|
|
19,584
|
|
|
|
15,734
|
|
Income (loss) before income taxes
|
|
(83,889)
|
|
|
|
39,495
|
|
|
10,199
|
|
|
|
182,888
|
|
Income tax expense
|
|
11,947
|
|
|
|
17,425
|
|
|
54,541
|
|
|
|
70,773
|
|
Net income (loss)
|
$
|
(95,836)
|
|
|
$
|
22,070
|
|
$
|
(44,342)
|
|
|
$
|
112,115
|
|
Net income (loss) per share - diluted
|
$
|
(2.61)
|
|
|
$
|
0.57
|
|
$
|
(1.18)
|
|
|
$
|
2.87
|
|
Average number of common shares outstanding -
diluted
|
|
36,665
|
|
|
|
38,806
|
|
|
37,457
|
|
|
|
39,130
|
|
|
* Revised in the third quarter of 2015 for the impact of the changes in
accounting principle related to inventory accounting and debt transaction costs.
|
|
Essendant Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands, except share data)
|
|
|
|
As of December 31,
|
|
2015
|
|
|
2014 (Revised)*
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
29,983
|
|
|
$
|
20,812
|
|
Accounts receivable, less allowance for doubtful accounts of $17,810 in 2015
and $19,725 in 2014
|
|
716,537
|
|
|
|
702,527
|
|
Inventories
|
|
922,162
|
|
|
|
906,430
|
|
Other current assets
|
|
27,310
|
|
|
|
30,713
|
|
Total current assets
|
|
1,695,992
|
|
|
|
1,660,482
|
|
Property, plant and equipment, at cost
|
|
133,751
|
|
|
|
138,217
|
|
Intangible assets, net
|
|
96,413
|
|
|
|
111,958
|
|
Goodwill
|
|
299,355
|
|
|
|
398,042
|
|
Other long-term assets
|
|
37,348
|
|
|
|
38,669
|
|
Total assets
|
$
|
2,262,859
|
|
|
$
|
2,347,368
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
531,949
|
|
|
$
|
485,241
|
|
Accrued liabilities
|
|
177,472
|
|
|
|
185,535
|
|
Current maturities of long-term debt
|
|
51
|
|
|
|
851
|
|
Total current liabilities
|
|
709,472
|
|
|
|
671,627
|
|
Deferred income taxes
|
|
11,901
|
|
|
|
17,763
|
|
Long-term debt
|
|
716,264
|
|
|
|
709,917
|
|
Other long-term liabilities
|
|
101,488
|
|
|
|
104,394
|
|
Total liabilities
|
|
1,539,125
|
|
|
|
1,503,701
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock, $0.10 par value; authorized - 100,000,000 shares, issued -
74,435,628 shares in 2015 and 2014
|
|
7,444
|
|
|
|
7,444
|
|
Additional paid-in capital
|
|
410,927
|
|
|
|
412,291
|
|
Treasury stock, at cost – 37,178,394 shares in 2015 and 35,719,041 shares in
2014
|
|
(1,100,867)
|
|
|
|
(1,042,501)
|
|
Retained earnings
|
|
1,463,821
|
|
|
|
1,529,224
|
|
Accumulated other comprehensive loss
|
|
(57,591)
|
|
|
|
(62,791)
|
|
Total stockholders' equity
|
|
723,734
|
|
|
|
843,667
|
|
|
|
|
|
|
|
|
Essendant Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
|
|
|
Years Ended December 31,
|
|
2015
|
|
2014 (Revised)*
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(44,342)
|
|
$
|
112,115
|
|
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
33,532
|
|
|
32,381
|
|
Amortization of intangible assets
|
|
15,143
|
|
|
8,623
|
|
Share-based compensation
|
|
7,895
|
|
|
8,195
|
|
Loss (gain) on the disposition of property, plant and equipment
|
|
1,959
|
|
|
1,155
|
|
Amortization of capitalized financing costs
|
|
875
|
|
|
859
|
|
Excess tax benefits related to share-based compensation
|
|
(479)
|
|
|
(1,214)
|
|
Loss on disposition of business
|
|
-
|
|
|
8,234
|
|
Loss on sale of equity investment
|
|
33
|
|
|
-
|
|
Asset impairment charge
|
|
155,603
|
|
|
-
|
|
Deferred income taxes
|
|
(23,162)
|
|
|
(10,879)
|
|
Changes in operating assets and liabilities (net of
acquisitions):
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable, net
|
|
(9,986)
|
|
|
(16,529)
|
|
(Increase) decrease in inventory
|
|
(12,467)
|
|
|
(18,724)
|
|
(Increase) decrease in other assets
|
|
(5,313)
|
|
|
(2,898)
|
|
(Decrease) increase in accounts payable
|
|
57,416
|
|
|
(42,093)
|
|
Increase (decrease) in checks in-transit
|
|
(16,087)
|
|
|
1,368
|
|
Increase (decrease) in accrued liabilities
|
|
1,077
|
|
|
1,276
|
|
(Decrease) increase in other liabilities
|
|
1,037
|
|
|
(4,736)
|
|
Net cash provided by operating activities
|
|
162,734
|
|
|
77,133
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
Capital expenditures
|
|
(28,325)
|
|
|
(24,994)
|
|
Proceeds from the disposition of property, plant and equipment
|
|
153
|
|
|
2,767
|
|
Proceeds from the disposition of a subsidiary
|
|
146
|
|
|
-
|
|
Acquisitions, net of cash acquired
|
|
(40,515)
|
|
|
(161,406)
|
|
Sale of Equity Investment
|
|
612
|
|
|
-
|
|
Net cash used in investing activities
|
|
(67,929)
|
|
|
(183,633)
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
Net borrowings (repayments) under revolving credit facility
|
|
4,577
|
|
|
155,911
|
|
Borrowings under Receivables Securitization Program
|
|
-
|
|
|
9,300
|
|
Repayment of debt
|
|
-
|
|
|
(135,000)
|
|
Proceeds from the issuance of debt
|
|
-
|
|
|
150,000
|
|
Net (disbursements) proceeds from share-based compensation
arrangements
|
|
(770)
|
|
|
(2,863)
|
|
Acquisition of treasury stock, at cost
|
|
(68,055)
|
|
|
(49,982)
|
|
Payment of cash dividends
|
|
(21,185)
|
|
|
(21,789)
|
|
Excess tax benefits related to share-based compensation
|
|
479
|
|
|
1,214
|
|
Payment of debt issuance costs
|
|
(36)
|
|
|
(823)
|
|
Net cash provided by (used in) financing activities
|
|
(84,990)
|
|
|
105,968
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(644)
|
|
|
(982)
|
|
Net change in cash and cash equivalents
|
|
9,171
|
|
|
(1,514)
|
|
Cash and cash equivalents, beginning of period
|
|
20,812
|
|
|
22,326
|
|
Cash and cash equivalents, end of period
|
$
|
29,983
|
|
$
|
20,812
|
|
|
|
|
|
|
|
Essendant Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Adjusted Gross Profit, Operating Income, EBITDA, Net Income, and Diluted
Earnings Per Share
(unaudited)
(in thousands, except per share data)
|
|
|
For the Three Months Ended December 31,
|
|
2015
|
|
|
2014
|
|
Gross profit
|
$
|
200,838
|
|
|
$
|
209,398
|
|
ORS Industrial inventory obsolescence reserve
|
|
4,887
|
|
|
|
-
|
|
Adjusted gross profit
|
$
|
205,725
|
|
|
$
|
209,398
|
|
|
|
|
|
|
|
|
Operating expenses
|
$
|
280,059
|
|
|
$
|
165,369
|
|
Impairment of ORS Industrial goodwill and intangible assets
|
|
(115,825)
|
|
|
|
-
|
|
Workforce reduction and facility closure charge
|
|
(12,080)
|
|
|
|
-
|
|
Intangible asset impairment charge and accelerated amortization related to
rebranding
|
|
(495)
|
|
|
|
-
|
|
Loss on disposition of business and related impairment charges
|
|
-
|
|
|
|
(8,234)
|
|
Adjusted operating expenses
|
$
|
151,659
|
|
|
$
|
157,135
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
$
|
(79,221)
|
|
|
$
|
44,029
|
|
Gross profit and operating expense items noted above
|
|
133,287
|
|
|
|
8,234
|
|
Adjusted operating income
|
$
|
54,066
|
|
|
$
|
52,263
|
|
Depreciation and amortization
|
$
|
10,561
|
|
|
$
|
10,087
|
|
Equity compensation
|
|
1,448
|
|
|
|
2,264
|
|
Adjusted earnings before interest, taxes, depreciation and amortization
(EBITDA)
|
$
|
66,075
|
|
|
$
|
64,614
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(95,836)
|
|
|
$
|
22,070
|
|
Gross profit and operating expense items noted above, net of tax
|
|
125,872
|
|
|
|
8,234
|
|
Adjusted net income
|
$
|
30,036
|
|
|
$
|
30,304
|
|
|
|
|
|
|
|
|
Diluted earnings per share(2)
|
$
|
(2.59)
|
|
|
$
|
0.57
|
|
Per share gross profit and operating expense items noted above
|
|
3.40
|
|
|
|
0.21
|
|
Adjusted diluted earnings per share
|
$
|
0.81
|
|
|
$
|
0.78
|
|
|
Note: Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted
Operating Income, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share in the fourth quarter of 2015
exclude the effects of a $120.7 million write-down of industrial business, $0.5 million non-cash impairment of
intangibles and accelerated amortization related to rebranding, and $12.1 million of workforce reduction and facility
consolidation charges. The fourth quarter of 2014 excludes the effects of an $8.2 million loss on disposition of business
and related impairment charges. Generally Accepted Accounting Principles require that the effects of these items be
included in the Condensed Consolidated Statements of Income. Management believes that excluding these items is an
appropriate comparison of its ongoing operating results and to the results of the prior year. It is helpful to provide
readers of its financial statements with a reconciliation of these items to its Condensed Consolidated Statements of
Income reported in accordance with Generally Accepted Accounting Principles.
|
|
|
(2)
|
Diluted earnings per share for 2015 under GAAP reflect an adjustment to the
basic earnings per share due to the net loss. The diluted earnings per share shown here does not reflect this
adjustment.
|
|
Essendant Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Adjusted Gross Profit, Operating Income, EBITDA, Net Income, and Diluted
Earnings Per Share
(unaudited)
(in thousands, except per share data)
|
|
|
For the Years Ended December 31,
|
|
2015
|
|
|
2014 (Revised)
|
|
Gross profit
|
$
|
836,495
|
|
|
$
|
802,529
|
|
ORS Industrial inventory obsolescence reserve
|
|
4,887
|
|
|
|
-
|
|
Adjusted gross profit
|
|
841,382
|
|
|
|
802,529
|
|
|
|
|
|
|
|
|
Operating expenses
|
$
|
806,712
|
|
|
$
|
603,907
|
|
Impairment of ORS Industrial goodwill and intangible assets
|
|
(115,825)
|
|
|
|
-
|
|
Workforce reduction and facility closure charge
|
|
(18,575)
|
|
|
|
-
|
|
Intangible asset impairment charge and accelerated amortization related to
rebranding
|
|
(11,981)
|
|
|
|
-
|
|
Notes receivable impairment
|
|
(10,738)
|
|
|
|
-
|
|
Loss on disposition of business and related impairment charges
|
|
(16,999)
|
|
|
|
(8,234)
|
|
Adjusted operating expenses
|
$
|
632,594
|
|
|
$
|
595,673
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
29,783
|
|
|
$
|
198,622
|
|
Gross profit and operating expense items noted above
|
|
179,005
|
|
|
|
8,234
|
|
Adjusted operating income
|
$
|
208,788
|
|
|
$
|
206,856
|
|
Depreciation and amortization
|
$
|
41,917
|
|
|
$
|
36,227
|
|
Equity compensation
|
|
7,895
|
|
|
|
8,195
|
|
Adjusted earnings before interest, taxes, depreciation and amortization
(EBITDA)
|
$
|
258,600
|
|
|
$
|
251,278
|
|
|
|
|
|
|
|
|
Net income
|
$
|
(44,342)
|
|
|
$
|
112,115
|
|
Gross profit and operating expense items noted above, net of tax
|
|
160,727
|
|
|
|
8,234
|
|
Adjusted net income
|
$
|
116,385
|
|
|
$
|
120,349
|
|
|
|
|
|
|
|
|
Diluted earnings per share(2)
|
$
|
(1.17)
|
|
|
$
|
2.87
|
|
Per share gross profit and operating expense items noted above
|
|
4.25
|
|
|
|
0.21
|
|
Adjusted diluted earnings per share
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
Note: Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted
Operating Income, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share for the year ended December 31,
2015 exclude the effects of $120.7 million write-down of industrial business; a $18.6 million workforce reduction and
facility consolidation charges; $12.0 million non-cash impairment of intangibles and accelerated amortization related to
rebranding; $10.7 million notes receivable impairment charges; and $17.0 million loss and related expenses attributable
to the sale of the Mexico business. The 2014 year excludes the effects of an $8.2 million loss on disposition of business
and related impairment charges. Generally Accepted Accounting Principles require that the effects of these items be
included in the Condensed Consolidated Statements of Income. Management believes that excluding these items is an
appropriate comparison of its ongoing operating results and to the results of the prior year. It is helpful to provide
readers of its financial statements with a reconciliation of these items to its Condensed Consolidated Statements of
Income reported in accordance with Generally Accepted Accounting Principles.
|
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SOURCE Essendant Inc.