-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HE/C1HLpOTlbPdsxSKXzE+xzNSnAN/3njo6rQK90J2c7laJ0LsDkG7taXZ16aMy9 12mxRIbjqbRViz396xxuUg== 0001047469-98-031689.txt : 19980817 0001047469-98-031689.hdr.sgml : 19980817 ACCESSION NUMBER: 0001047469-98-031689 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATIONERS INC CENTRAL INDEX KEY: 0000355999 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 363141189 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-10653 FILM NUMBER: 98690609 BUSINESS ADDRESS: STREET 1: 2200 E GOLF RD CITY: DES PLAINES STATE: IL ZIP: 60016-1267 BUSINESS PHONE: 8476995000 MAIL ADDRESS: STREET 1: 2200 E GOLF ROAD STREET 2: 2200 E GOLF ROAD CITY: DES PLAINES STATE: IL ZIP: 600161267 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATIONERS SUPPLY CO CENTRAL INDEX KEY: 0000945633 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 362431718 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 033-59811 FILM NUMBER: 98690610 BUSINESS ADDRESS: STREET 1: 2200 E GOLF RD CITY: DES PLAINES STATE: IL ZIP: 60016-1267 BUSINESS PHONE: 7086995000 MAIL ADDRESS: STREET 1: 2200 E GOLF ROAD STREET 2: 2200 E GOLF ROAD CITY: DES PLAINES STATE: IL ZIP: 600161267 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 quarter ended June 30, 1998 ------------- 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 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 United Stationers Inc.: 36-3141189 United Stationers Supply Co.: Illinois United Stationers Supply Co.: 36-2431718 - -------------------------------------- ---------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization)
2200 East Golf Road, Des Plaines, Illinois 60016-1267 - ------------------------------------------ ---------- (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 699-5000 Indicate by check mark whether each 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 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. United Stationers Inc.: Yes (X) No ( ) United Stationers Supply Co.: Yes (X) No ( ) On July 30, 1998, United Stationers Inc. had outstanding 18,334,548 shares of Common Stock, par value $0.10 per share. On July 30, 1998, United Stationers Supply Co. had 880,000 shares of Common Stock, $1.00 par value per share, outstanding; United Stationers Inc. owns 100% of these shares. UNITED STATIONERS INC. AND SUBSIDIARIES FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1998 --------------------------------------------- INDEX -----
PART I - FINANCIAL INFORMATION PAGE - ------------------------------ ---- IMPORTANT EXPLANATORY NOTE 1 Independent Accountants' Review Report 2 Condensed Consolidated Balance Sheets as of June 30, 1998 and December 31, 1997 3 Condensed Consolidated Statements of Income for the Three Months and Six Months ended June 30, 1998 and 1997 4 Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 1998 and 1997 6 Notes to Condensed Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 13 PART II - OTHER INFORMATION 18 - --------------------------- SIGNATURE 20 - --------- INDEX TO EXHIBITS 21 - -----------------
UNITED STATIONERS INC. AND SUBSIDIARIES PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS IMPORTANT EXPLANATORY NOTE THIS INTEGRATED FORM 10-Q IS FILED PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, FOR EACH OF UNITED STATIONERS INC. ("UNITED"), A DELAWARE CORPORATION, AND ITS WHOLLY OWNED SUBSIDIARY, UNITED STATIONERS SUPPLY CO. ("USSC"), 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. THERE IS NO MATERIAL DIFFERENCE BETWEEN UNITED STATIONERS INC. AND UNITED STATIONERS SUPPLY CO. FOR THE DISCLOSURE REQUIRED BY THE INSTRUCTIONS TO FORM 10-Q AND THEREFORE, UNLESS OTHERWISE INDICATED, THE RESPONSES SET FORTH HEREIN APPLY TO EACH OF UNITED STATIONERS INC. AND UNITED STATIONERS SUPPLY CO. -1- INDEPENDENT ACCOUNTANTS' REVIEW REPORT The Board of Directors United Stationers Inc. We have reviewed the accompanying condensed consolidated balance sheet of United Stationers Inc. and Subsidiaries as of June 30, 1998, and the related condensed consolidated statements of income for the three-month and six-month periods ended June 30, 1998 and 1997, and the condensed consolidated statements of cash flows for the six-month periods ended June 30, 1998 and 1997. These financial statements are the responsibility of the Company's management. We conducted our reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our reviews, we are not aware of any material modifications that should be made to the accompanying condensed consolidated financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of United Stationers Inc. as of December 31, 1997, and the related consolidated statements of income, changes in stockholders' equity, and cash flows for the year then ended (not presented herein) and in our report dated January 27, 1998, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 1997, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. /s/Ernst & Young LLP Chicago, Illinois July 28, 1998 -2- UNITED STATIONERS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
(Unaudited) (Audited) June 30, December 31, 1998 1997 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 21,727 $ 12,367 Accounts receivable, net (see Note 7) 169,357 311,920 Inventories 498,300 511,555 Other current assets 16,730 14,845 ----------- ----------- Total current assets 706,114 850,687 Property, plant and equipment, net 163,081 164,543 Goodwill, net 183,631 111,852 Other 17,973 20,939 ----------- ----------- Total assets $1,070,799 $1,148,021 ----------- ----------- ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 270,394 $ 236,475 Accrued liabilities 99,087 118,496 Current maturities of long-term debt 5,233 44,267 ----------- ----------- Total current liabilities 374,714 399,238 Deferred income taxes 22,688 19,383 Long-term obligations 345,178 506,092 ----------- ----------- Total liabilities 742,580 924,713 Stockholders' equity: Common stock, $0.10 par value; 40,000,000 authorized; 18,326,449 and 15,905,273, respectively, issued and outstanding 1,832 1,591 Additional paid-in capital 301,300 213,042 Retained earnings 25,087 8,675 ----------- ----------- Total stockholders' equity 328,219 223,308 ----------- ----------- Total liabilities and stockholders' equity $1,070,799 $1,148,021 ----------- ----------- ----------- -----------
See notes to condensed consolidated financial statements. -3- UNITED STATIONERS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited)
Three Months Ended June 30, ------------------------ 1998 1997 -------- -------- Net sales $751,966 $610,041 Cost of goods sold 626,076 505,307 -------- -------- Gross profit 125,890 104,734 -------- -------- Operating expenses: Warehousing, marketing and administrative expenses 87,579 73,730 Non-recurring charge (see Note 10) 13,852 -- -------- -------- Total operating expenses 101,431 73,730 -------- -------- Income from operations 24,459 31,004 Interest expense 9,516 13,867 Other expense (see Note 7) 2,386 -- -------- -------- Income before income taxes and extraordinary item 12,557 17,137 Income taxes 5,328 7,267 -------- -------- Income before extraordinary item 7,229 9,870 Extraordinary item, loss on early retirement of debt, net of tax benefit of $3,971 (5,907) -- -------- -------- Net income 1,322 9,870 Preferred stock dividends issued and accrued -- 462 -------- -------- Net income attributable to common stockholders $ 1,322 $ 9,408 -------- -------- -------- -------- Net income per common share: Income before extraordinary item $ 0.44 $ 0.77 Extraordinary item (0.36) -- -------- -------- Net income per share $ 0.08 $ 0.77 -------- -------- -------- -------- Average number of common shares outstanding 16,499 12,205 Net income per common share - assuming dilution: Income before extraordinary item $ 0.42 $ 0.64 Extraordinary item (0.34) -- -------- -------- Net income per share $ 0.08 $ 0.64 -------- -------- -------- -------- Average number of common shares outstanding - assuming dilution 17,365 14,637
See notes to condensed consolidated financial statements. -4- UNITED STATIONERS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited)
Six Months Ended June 30, --------------------------- 1998 1997 ---------- ---------- Net sales $1,464,483 $1,245,062 Cost of goods sold 1,215,531 1,031,586 ---------- ---------- Gross profit 248,952 213,476 Operating expenses: Warehousing, marketing and administrative expenses 172,616 150,434 Non-recurring charge (see Note 10) 13,852 -- ---------- ---------- Total operating expenses 186,468 150,434 ---------- ---------- Income from operations 62,484 63,042 Interest expense 21,342 28,528 Other expense (see Note 7) 2,386 -- ---------- ---------- Income before income taxes and extraordinary item 38,756 34,514 Income taxes 16,436 14,635 ---------- ---------- Income before extraordinary item 22,320 19,879 Extraordinary item, loss on early retirement of debt, net of tax benefit of $3,971 (5,907) -- ---------- ---------- Net income 16,413 19,879 Preferred stock dividends issued and accrued -- 917 ---------- ---------- Net income attributable to common stockholders $ 16,413 $ 18,962 ---------- ---------- ---------- ---------- Net income per common share: Income before extraordinary item $ 1.37 $ 1.55 Extraordinary item (0.36) -- ---------- ---------- Net income per share $ 1.01 $ 1.55 ---------- ---------- ---------- ---------- Average number of common shares outstanding 16,249 12,205 Net income per common share - assuming dilution: Income before extraordinary item $ 1.29 $ 1.30 Extraordinary item (0.34) -- ---------- ---------- Net income per share $ 0.95 $ 1.30 ---------- ---------- ---------- ---------- Average number of common shares outstanding - assuming dilution 17,259 14,624
See notes to condensed consolidated financial statements. -5- UNITED STATIONERS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
Six Months Ended June 30, ----------------------- 1998 1997 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 16,413 $ 19,879 Depreciation and amortization 14,278 13,581 Amortization of capitalized financing costs 1,326 2,269 Extraordinary item - early retirement of debt 9,877 -- Changes in operating assets and liabilities (see Note 7) 222,703 57,175 --------- --------- Net cash provided by operating activities 264,597 92,904 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (8,500) (4,482) Proceeds from disposition of property, plant and equipment 20 31 Acquisition of Azerty, Inc., net of cash acquired of $2,575 (115,740) -- --------- --------- Net cash used in investing activities (124,220) (4,451) CASH FLOWS FROM FINANCING ACTIVITIES: Retirement and principal payments of debt (547,585) (34,808) Borrowings under financing agreements 350,000 -- Net repayments under revolver (11,000) (46,000) Issuance of common shares 97,024 -- Payment of employee withholding tax related to stock option exercises (14,411) -- Financing costs (4,526) -- Other (519) 49 --------- --------- Net cash used in financing activities (131,017) (80,759) --------- --------- Net change in cash and cash equivalents 9,360 7,694 Cash and cash equivalents, beginning of period 12,367 10,619 --------- --------- Cash and cash equivalents, end of period $ 21,727 $ 18,313 --------- --------- --------- --------- Other Cash Flow Information: Cash payments during the six months for: Income taxes paid $ 16,993 $ 8,936 Interest paid 19,553 24,007
See notes to condensed consolidated financial statements. -6- UNITED STATIONERS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited, except for the Consolidated Balance Sheet as of December 31, 1997. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company's management, the condensed consolidated financial statements for the unaudited interim periods presented include all adjustments necessary to fairly present the results of such interim periods and the financial position as of the end of said periods. Certain interim expense and inventory estimates are recognized throughout the year relating to marginal income tax rates, shrinkage, price changes and product mix. Any refinements to these estimates based on actual experience are recorded when known. 2. OPERATIONS The Company is a national wholesale distributor of business products. The Company offers approximately 35,000 items from more than 550 manufacturers. This includes a broad spectrum of office products, computer supplies, office furniture and facilities management supplies. The Company primarily serves commercial and contract office products dealers. Its customers include more than 20,000 resellers -- such as computer products resellers, office furniture dealers, mass merchandisers, sanitary supply distributors, warehouse clubs, mail order houses and office products superstores. The Company has a distribution network of 40 business products distribution centers, 19 janitorial and sanitation distribution centers and 5 computer consumables distribution centers. In addition to its broad product offering, the Company provides value-added marketing and logistics services for both manufacturers and resellers. 3. COMPREHENSIVE INCOME As of January 1, 1998, the Company adopted Financial Accounting Standards Statement 130, "Reporting Comprehensive Income." Statement 130 establishes new rules for the reporting and display of comprehensive income and its components; however, the adoption of this Statement had no impact on the Company's net income or stockholders' equity. Statement 130 requires foreign currency translation adjustments, which prior to adoption were included in stockholders' equity, to be included in other comprehensive income. For the three-month and six-month periods ended June 30, 1998 and 1997, total comprehensive income amounted to $931,300, $8,936,300, $15,899,000 and $18,918,000, respectively. -7- UNITED STATIONERS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 4. NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE Net income per common share is based on net income after preferred stock dividend requirements. Basic earnings per share is calculated on the weighted average number of common shares outstanding. Diluted earnings per share is calculated on the weighted average number of common and common equivalent shares outstanding during the period. Stock options and warrants are considered to be common equivalent shares. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):
Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 1998 1997 1998 1997 -------- -------- -------- -------- NUMERATOR: Income before extraordinary item $ 7,229 $ 9,870 $22,320 $19,879 Extraordinary item (5,907) -- (5,907) -- -------- -------- -------- -------- Net income 1,322 9,870 16,413 19,879 Preferred stock dividends issued and accrued -- 462 -- 917 -------- -------- -------- -------- Net income attributable to common stockholders $ 1,322 $ 9,408 $16,413 $18,962 -------- -------- -------- -------- -------- -------- -------- -------- DENOMINATOR: Denominator for basic earnings per share - Weighted average shares 16,499 12,205 16,249 12,205 Effect of dilutive securities: Employee stock options 866 1,029 1,010 1,016 Warrants -- 1,403 -- 1,403 -------- -------- -------- -------- Dilutive potential common shares 866 2,432 1,010 2,419 -------- -------- -------- -------- Denominator for diluted earnings per share - Adjusted weighted average shares and assumed conversions 17,365 14,637 17,259 14,624 -------- -------- -------- -------- -------- -------- -------- -------- Earnings per common share: Basic Income before extraordinary item $ 0.44 $ 0.77 $ 1.37 $ 1.55 Extraordinary item (0.36) -- (0.36) -- -------- -------- -------- -------- Net income per share $ 0.08 $ 0.77 $ 1.01 $ 1.55 -------- -------- -------- -------- -------- -------- -------- -------- Diluted Income before extraordinary item $ 0.42 $ 0.64 $ 1.29 $ 1.30 Extraordinary item (0.34) -- (0.34) -- -------- -------- -------- -------- Net income per share $ 0.08 $ 0.64 $ 0.95 $ 1.30 -------- -------- -------- -------- -------- -------- -------- --------
-8- UNITED STATIONERS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 5. AZERTY ACQUISITION On April 3, 1998, the Company completed the acquisition of all of the capital stock of Azerty Incorporated, Azerty de Mexico, S.A. de C.V., Positive ID Wholesale Inc., and AP Support Services Incorporated (collectively, the "Azerty Acquisition"), which together comprised substantially all of the United States and Mexican operations of the Office Products Division of Abitibi-Consolidated Inc. (collectively, the "Azerty Business"). The aggregate purchase price paid by the Company for the Azerty Business was approximately $115.7 million (including fees and expenses) following an initial post-closing adjustment, and subject to final audit and review by the Company. The purchase price for the Azerty Business was funded from borrowings under the Company's New Credit Facilities (as defined). The Azerty Business is primarily a specialty wholesaler of computer consumables, peripherals and accessories in the United States and Mexico. The Company's existing Micro United division will be integrated into the Azerty Business. 6. THE NEW CREDIT FACILITIES On April 3, 1998, in order to fund the purchase price of the Azerty Business, refinance borrowings under the Company's then-existing senior secured credit facilities, and pay related fees and expenses in connection therewith, the Company amended and restated its existing credit agreement (as amended and restated, the "New Credit Agreement") governing its senior secured credit facilities (the "New Credit Facilities"). The New Credit Facilities consisted initially of a $250.0 million six-year revolving credit facility (the "Revolving Credit Facility"), a $150 million six-year tranche A term loan facility (the "Tranche A Term Loan Facility"), and a $100.0 million six and three-quarter year tranche B term loan facility (the "Tranche B Term Loan Facility"). The net proceeds of the Notes Offering (as defined) were used to permanently repay a substantial portion of indebtedness outstanding under the Tranche B Term Loan Facility and the remainder of such facility was permanently repaid with proceeds from the sale of certain receivables, following which the Tranche B Term Loan Facility was terminated. As a result of the early retirement of the Existing Credit Facilities, approximately $9.9 million ($5.9 million net of tax benefit of $4.0 million) of unamortized financing fees were recorded as a non-cash extraordinary charge during the second quarter of 1998. 7. RECEIVABLES SECURITIZATION PROGRAM On April 3, 1998, in connection with the refinancing of its Existing Credit Facilities, the Company entered into a $163.0 million 364-day liquidity facility (the "Receivables Securitization Program"), pursuant to which the Company sells certain of its U.S. dollar trade receivables to a wholly-owned offshore bankruptcy-remote subsidiary of the Company (the "Receivables Company"). The Receivables Company then transfers the Eligible Receivables to a third-party, multi-seller asset-backed commercial paper program existing solely for the purpose of issuing commercial paper rated A-1/P-1 or higher. Costs related to this facility vary on a monthly basis and are generally related to certain interest rates. These costs are included in other expense. The condensed consolidated balance sheet at June 30, 1998 and the condensed consolidated statement of cash flows for the six months ended June 30, 1998 reflect the sale of approximately $159.0 million in trade accounts receivable. The proceeds to the Company were used to reduce borrowings under the New Credit Facilities. -9- UNITED STATIONERS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 8. THE NOTES OFFERING On April 15, 1998, USSC consummated the sale of $100.0 million of its 8.375% Senior Subordinated Notes due 2008 (the "8.375% Notes"). The aggregate net proceeds to the Company (aggregating approximately $97.0 million) from the sale of the 8.375% Notes were used to repay a substantial portion of indebtedness outstanding under the Tranche B Term Loan Facility. 9. JUNE EQUITY OFFERING In June 1998, United completed an offering of 2,005,507 shares of Common Stock (the "June Equity Offering"), consisting of 1,500,000 primary shares sold by United, and 505,507 secondary shares sold by certain selling stockholders. The aggregate net proceeds to United of approximately $77.1 million were delivered to USSC and used to repay a portion of indebtedness under the Tranche A Term Loan Facility which caused a permanent reduction of the amount borrowable thereunder. United did not receive any of the proceeds from the sale of the 505,507 shares of Common Stock offered by the selling stockholders, other than an aggregate of approximately $6.4 million paid by the selling stockholders upon exercise of employee stock options in connection with the June Equity Offering, which were delivered to USSC and applied to the repayment of indebtedness under the New Credit Facilities. Subsequent to the closing of the June Equity Offering, the underwriters for the offering exercised an overallotment option to purchase an additional 200,000 shares from United (the "Additional Shares"). The net proceeds to United of approximately $10.3 million from the sale of Additional Shares were delivered to USSC and used to repay an additional portion of the indebtedness outstanding under the Tranche A Term Loan Facility. 10. COMPUTER SERVICES CONTRACT WRITE-OFF -- NON RECURRING CHARGE Associated Stationers, Inc. ("ASI") entered into a Computer Services Contract with a third-party service provider to perform certain computer services. Upon completion of the systems integration between USSC and ASI, increasing differences in the operating processes and technical environment between the Company and the third party service provider became evident. The Computer Services Contract was modified to allow the Company, at its discretion, not to perform any processing at the third-party service provider's facilities. Accordingly, the related fees were reduced. Payments made to the third-party service provider subsequent to this final renegotiation were effectively for disaster recovery purposes only. The Company has recently consolidated its disaster recovery services under an agreement with another third-party service provider. In May 1998, the Company completed an assessment of the future utility of the Computer Services Contract. Based upon such assessment, the Company has determined that it is no longer feasible to use the prior third-party service provider for disaster recovery purposes. During the second quarter, the Company wrote off the remaining term of the Computer Services Contract. As a result, the Company recorded a non-recurring charge of $13.9 million ($8.3 million net of tax benefit of $5.6 million), which includes a $2.6 million prepaid expense and $11.3 million of future payments. -10- UNITED STATIONERS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 11. SUMMARIZED FINANCIAL DATA FOR GUARANTOR SUBSIDIARIES Azerty Incorporated, Positive ID Wholesale Inc., and AP Support Services Incorporated (collectively, the "Azerty Guarantor Subsidiaries") and Lagasse Bros., Inc. ("Lagasse") guarantee the 8.375% Senior Subordinated Notes due 2008 (the "Notes") issued by United Stationers Supply Co. ("USSC"). The Azerty Guarantor Subsidiaries and Azerty de Mexico, S.A. de C.V. (collectively, the "Azerty Business") were acquired on April 3, 1998. Set forth below is summarized combined financial data for Lagasse and the Azerty Business (subsequent to its acquisition by USSC). Summarized combined financial data as of June 30, 1998 and for the three months then ended reflects both Lagasse and the Azerty Business. The summarized combined income statement data for the six months ended June 30, 1998 reflects the operations of Lagasse for the six-month period and the Azerty Business for the three months ended June 30, 1998. Summarized financial data as of December 31, 1997 and for the three and six-month period ended June 30, 1997 reflect Lagasse only.
As of As of June 30, December 31, 1998 1997 -------- ------------ Balance Sheet Data: Current assets $130,562 $29,731 Total assets 247,882 68,766 Current liabilities 70,122 13,564 Total liabilities 72,532 18,490
Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------ 1998 1997 1998 1997 -------- ------- -------- ------- Income Statement Data: Net sales $121,447 $23,513 $148,372 $45,489 Gross margin 12,933 4,251 18,006 8,170 Operating income 4,370 2,086 6,525 3,912 Net income 2,104 1,166 3,176 2,147
Set forth below is summarized combined financial data for the Azerty Business for periods prior to its acquisition by USSC.
As of December 31, 1997 ------------ Balance Sheet Data: Current assets $ 83,986 Total assets 105,993 Current liabilities 51,678 Total liabilities 74,460
-11- UNITED STATIONERS INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Three Months Three Months Six Months Ended Ended Ended March 31, 1998 June 30, 1997 June 30, 1997 -------------- ------------- ------------- Income Statement Data: Net sales $99,723 $88,870 $177,237 Gross margin 8,673 7,561 15,538 Operating income 2,454 2,577 5,259 Net income 1,147 1,393 2,758
-12- UNITED STATIONERS INC. AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS COMMENTS ON FORWARD LOOKING INFORMATION With the exception of statements with regard to historical matters, the matters discussed in this Form 10-Q contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from the forward-looking information. Such risks and uncertainties include, but are not limited to, the highly-competitive environment in which the company operates, the integration of acquisitions, changes in end-users' traditional demands for business products, reliance by the company on certain key suppliers, and the effects on the Company of fluctuations in manufacturers' pricing and general economic conditions. A description of these factors, as well as other factors which could affect the Company's business, is set forth in filings by the Company with the Securities and Exchange Commission, including the Company's Prospectus dated June 10, 1998. NET SALES. Net sales were $752.0 million in the second quarter of 1998, a 23.3% increase over net sales of $610.0 million in the second quarter of 1997. The Company experienced sales strength in all geographic regions and across all product categories. Organic sales (excluding the impact of acquisitions) in the second quarter of 1998 increased by 8.3%. United Stationers' strategy is to create value in the supply chain for both resellers and manufacturers. By reducing the overall cost of distribution, the Company believes its role as a wholesaler will continue to expand and that it can achieve above industry-average growth rates. The Company believes that it has the opportunity to capture a portion of the sales of business products currently sold directly by manufacturers to resellers without wholesaler involvement. Currently, approximately 20% of manufacturers' shipments of business products move through wholesalers. The Company believes that as resellers intensify their focus on asset management, return on investment and inventory efficiency, they will continue de-stocking and increasingly rely on United Stationers' products and services to meet end-user requirements for a high order fill rate on a broad product assortment available on an overnight basis. The Company plans to continue to expand its customer base by: (i) maintaining and building its business with commercial dealers and contract stationers; (ii) developing additional programs for marketing and buying groups; (iii) continuing to focus on complementary markets, including specialty dealers; and (iv) expanding geographically, both within the United States and, potentially, internationally. The Company plans to expand its product line. These plans include developing its newer product categories, such as office furniture, computer supplies and peripherals, facilities management supplies and janitorial and sanitation supplies, as well as potentially offering new products or services. The Company also plans to continue to expand its line of private brand products. The Company believes that its various products and services are complementary and that there are significant opportunities to cross-sell to existing customers. By implementing this strategy, management believes the Company can enhance sales as resellers purchase a broader selection of products offered by the Company, thereby reducing end-user procurement costs and enhancing reseller profitability. -13- UNITED STATIONERS INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company intends to continue to invest in information systems enhancements and customer interfaces that management believes will allow it to capture a growing percentage of its customers' business. In addition, as the Internet becomes increasingly important as a marketing channel, the Company is positioned to participate in this trend with direct, on-line access by its resellers to its 25,000 SKU general line catalog. The Company believes it can enhance its growth by continuing to make strategic acquisitions. For example, the acquisition of Lagasse Bros., Inc. ("Lagasse") in 1996 substantially increased the Company's position in the janitorial and sanitation supplies product category. The April 1998 Azerty Acquisition has also expanded the Company's product offerings and made it one of the largest distributors of computer consumable supplies in the United States. The Company intends to continue, from time to time, to pursue acquisitions that expand its customer base, increase its geographic reach and/or broaden its product offering. GROSS MARGIN. Gross margin declined to 16.7% in the second quarter of 1998 compared with 17.2% in 1997. This decrease is primarily the result of blending lower-margin computer consumables into the Company's overall margin mix. Increases in vendor allowances in the first half of the year partially offset the margin decline due to change in product mix discussed above. OPERATING EXPENSES. Operating expenses as a percent of net sales, before the non-recurring charge, declined to 11.6% in 1998 compared with 12.1% in 1997. The non-recurring charge recorded in 1998 of $13.9 million ($8.3 million net of tax benefit of $5.6 million) relates to the write-off of a contract for computer services from a vendor. The reduction in the operating expense ratio represents the blending of the Azerty business, which operates at a lower expense ratio than USSC, into the Company's overall expense ratio. Operating expenses as a percent of net sales, including the aforementioned charges, was 13.5% in 1998. INCOME FROM OPERATIONS. Income from operations as a percent of net sales, before the non-recurring charge, remained flat at 5.1%. Including the non-recurring charge, income from operations as a percent of net sales was 3.2%. INTEREST EXPENSE. Interest expense as a percent of net sales was 1.3% compared with 2.3% in 1997. This reduction reflects the continued leveraging of fixed interest costs against higher sales and the repayment of indebtedness with the proceeds received from the June Equity Offering, the Receivables Securitization Program, and the October 1997 equity offering. These transactions were partially offset by the acquisition of Azerty for a purchase price of approximately $115.7 million and the placement of $100.0 million of Senior Subordinated Notes at 8.375%. OTHER EXPENSE. Other expense as a percent of net sales was 0.3% in 1998. This expense represents the ongoing costs associated with the sale of certain trade accounts receivable through an asset-backed securitization program. INCOME BEFORE INCOME TAXES AND EXTRAORDINARY ITEM. Income before income taxes and extraordinary item as a percent of net sales, excluding the impact of the non-recurring charge, increased to 3.5% from 2.8% in 1997. Including the non-recurring charge, income before income taxes and extraordinary item as a percent of net sales was 1.6%. NET INCOME. Net income in 1998 includes a non-recurring charge of $13.9 million ($8.3 million net of tax benefit of $5.6 million) and an extraordinary item, loss on the early retirement of debt of $9.9 million ($5.9 million net of tax benefit of $4.0 million). Net income as a percent of net sales, excluding the impact of the non-recurring charge and the extraordinary item, increased to 2.1% compared with 1.6% in 1997. Including the impact of the non-recurring charge and the extraordinary item, net income as a percent of net sales was 0.2% in 1998. -14- UNITED STATIONERS INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NET SALES. Net sales for the first six months of 1998 were $1.5 billion, up 17.6%, compared with $1.2 billion in 1997. The Company experienced sales strength in all geographic regions and across all product categories. GROSS MARGIN. Gross margin declined to 17.0% in the second quarter of 1998 compared with 17.2% in 1997. This decrease is primarily the result of blending lower-margin computer consumables into the Company's overall margin mix. Increases in vendor allowances in the first half of the year partially offset the margin decline due to change in product mix discussed above. OPERATING EXPENSES. Operating expenses as a percent of net sales, before the non-recurring charge, declined to 11.8% in 1998 compared with 12.1% in 1997. The non-recurring charge recorded in the second 1998 of $13.9 million ($8.3 million net of tax benefit of $5.6 million) relates to the write-off of a contract for computer services from a vendor. The reduction in the operating expense ratio represents the blending of the Azerty business, which operates at a lower expense ratio than USSC, into the Company's overall expense ratio. Operating expenses as a percent of net sales, including the aforementioned charges, was 12.7% in 1998. INCOME FROM OPERATIONS. Income from operations as a percent of net sales, before the non-recurring charge, remained relatively flat at 5.2% in 1998 compared with 5.1% in 1997. Including the non-recurring charge, income from operations as a percent of net sales was 4.3%. INTEREST EXPENSE. Interest expense as a percent of net sales was 1.5% compared with 2.3% in 1997. This reduction reflects the continued leveraging of fixed interest costs against higher sales and the repayment of indebtedness with the proceeds received from the June Equity Offering, the Receivables Securitization Program, and the October 1997 equity offering. These transactions were partially offset by the acquisition of Azerty for a purchase price of $115.7 million and the placement of $100.0 million of Senior Subordinated Notes at 8.375%. OTHER EXPENSE. Other expense as a percent of net sales was 0.2% in 1998. This expense represents the ongoing costs associated with the sale of certain trade accounts receivable through an asset-backed securitization program. INCOME BEFORE INCOME TAXES AND EXTRAORDINARY ITEM. Income before income taxes and extraordinary item as a percent of net sales, excluding the impact of the non-recurring charge, increased to 3.5% from 2.8% in 1997. Including the non-recurring charge, income before income taxes and extraordinary item as a percent of net sales was 2.6%. NET INCOME. Net income in 1998 includes a non-recurring charge of $13.9 million ($8.3 million net of tax benefit of $5.6 million) and an extraordinary item, loss on the early retirement of debt of $9.9 million ($5.9 million net of tax benefit of $4.0 million). Net income as a percent of net sales, excluding the impact of the non-recurring charge and the extraordinary item, increased to 2.1% compared with 1.6% in 1997. Including the impact of the non-recurring charge and the extraordinary item, net income as a percent of net sales was 1.1% in 1998. -15- UNITED STATIONERS INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES As of June 30, 1998, the credit facilities under the Amended and Restated Credit Agreement (the "New Credit Agreement") consisted of $61.5 million of term loan borrowings (the "Term Loan Facilities"), and $35.0 million of borrowings under a $250.0 million revolving credit facility (the "Revolving Credit Facility"). In addition, the Company has $100.0 million of 12.75% Senior Subordinated Notes due 2005, $100.0 million of 8.375% Senior Subordinated Notes due 2008, $29.8 million of industrial revenue bonds and a $1.9 million mortgage. The Term Loan Facilities consist of a $61.5 million tranche A term loan facility (the "Tranche A Term Loan Facility"), which is scheduled to mature on or about March 31, 2004. The term loans under the Tranche A Term Loan Facility are repayable in consecutive quarterly installments which began on June 30, 1998, the first four of which are each in the amount of $1.0 million, the next four of which are each in the amount of $1.5 million, the next four of which are each in the amount of $2.6 million, the next four of which are each in the amount of $3.1 million and the last eight of which are each in the amount of $3.7 million. The loans under the Tranche A Term Loan Facility and the Revolving Credit Facility generally bear interest as determined within a set range with the rate based on the ratio of total debt (which excludes the face amount of any undrawn letters of credit) of United and its subsidiaries to EBITDA (as defined in the New Credit Agreement). The Tranche A Term Loan Facility and the Revolving Credit Facility bear interest, at the option of the Company and based upon financial performance, at the base rate (i.e., the higher of the prime rate or federal funds plus 0.50%) plus 0% to 0.75% or LIBOR plus 1.00% to 2.00%. The Credit Agreement contains representations and warranties, affirmative and negative covenants and events of default customary for financings of this type. As of June 30, 1998, the Company was in compliance with all covenants contained in the Credit Agreement. Management believes that the Company's cash on hand, anticipated funds generated from operations and available borrowings under the Credit Agreement, will be sufficient to meet the short-term (less than twelve months) and long-term operating and capital needs of the Company, as well as to service its debt in accordance with its terms. There is, however, no assurance that this will be accomplished. United is a holding company and, as a result, its primary source of funds is cash generated from operating activities of its operating subsidiary, USSC, and bank borrowings by USSC. The New Credit Agreement, 8.375% Notes Indenture and the 12.75% Note Indenture contain restrictions on the ability of USSC to transfer cash to United. The statements of cash flows for the Company for the periods indicated are summarized below:
For the Six Months Ended June 30, ------------------------ 1998 1997 ---------- --------- (dollars in thousands) Net cash provided by operating activities $ 264,597 $ 92,904 Net cash used in investing activities (124,220) (4,451) Net cash used in financing activities (131,017) (80,759)
Net cash provided by operating activities during the first six months of 1998 increased to $264.6 million from $92.9 million in the comparable prior-year period. This increase was primarily the result of a decrease in accounts receivable resulting from the sale of certain trade accounts receivable through an asset-backed securitization program and a decrease in inventory. -16- UNITED STATIONERS INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES (CONTINUED) Net cash used in investing activities during the first six months of 1998 was $124.2 million compared with $4.5 million used in the first six months of 1997. The increase in cash used was primarily due to the acquisition of Azerty Inc. and an increase in capital expenditures. Net cash used in financing activities during the first six months of 1998 was $131.0 million compared with $80.8 million for the first six months of 1997. This increase was due primarily to the reduction of debt using proceeds received from the June Equity Offering and the sale of certain trade accounts receivable through an asset-backed securitization program. Receivables Securitization Program On April 3, 1998, in connection with the refinancing of its Existing Credit Facilities, the Company entered into the $163.0 million 364-day Receivables Securitization Program pursuant to which the Company sells its Eligible Receivables (except for certain excluded receivables, which initially includes all receivables from the Azerty Business and Lagasse) to the Receivables Company, a wholly-owned offshore, bankruptcy-remote special purpose limited liability company, which in turn ultimately transfers the Eligible Receivables to a third-party, multi-seller asset-backed commercial paper program existing solely for the purpose of issuing commercial paper rated A-1/P-1 or higher. The sale of trade receivables includes not only those Eligible Receivables that were existing on the closing date of the Receivables Securitization Program, but also Eligible Receivables created thereafter. The Chase Manhattan Bank acts as funding agent and, together with other commercial banks rated at least A-1/P-1, provides standby liquidity funding to support the purchase of the receivables by the Receivables Company. The proceeds from the Receivables Securitization Program were used to reduce borrowings under the Company's Revolving Credit Facility. The Receivables Company retains an interest in the Eligible Receivables transferred to the third party. The Receivables Securitization Program carries an effective interest rate of LIBOR plus 0.37%. As a result of the Receivables Securitization Program, actual balance sheet assets of the Company as of June 30, 1998 of approximately $159.0 million, consisting of accounts receivable, have been sold to the Receivables Company and do not secure the Company's obligations under the New Credit Facilities. -17- UNITED STATIONERS INC. AND SUBSIDIARIES PART II - OTHER INFORMATION ITEM 1 LEGAL PROCEEDINGS Not applicable ITEM 2 CHANGES IN SECURITIES Not applicable ITEM 3 DEFAULTS UPON SENIOR SECURITIES Not applicable ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS At the Annual Meeting of Stockholders of United Stationers Inc. held on May 13, 1998, the following matter was voted on: 1. ELECTION OF DIRECTORS Each of the following members of the Board of Directors was elected for the term listed below: Class III Directors - term expiring in May 2001: -- Randall W. Larrimore -- Benson P. Shapiro -- Roy W. Haley 2. NONEMPLOYEE DIRECTORS' DEFERRED STOCK COMPENSATION PLAN Approval of United Stationers Inc. Nonemployee Directors' Deferred Stock Compensation Plan
Number of Votes --------------------------------------------------- For Against Abstain 14,259,141 106,242 42,415
ITEM 5 OTHER INFORMATION Not applicable -18- ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit Number ------- 2 Not applicable 10 Not applicable 11 Not applicable 15.1 Letter regarding unaudited interim financial information 18 Not applicable 19 Not applicable 22 Not applicable 23 Not applicable 24 Not applicable 27.1 Financial Data Schedule - United Stationers Inc. (1997) 27.2 Financial Data Schedule - United Stationers Inc. (1998) 27.3 Financial Data Schedule - United Stationers Supply Co. (1997) 27.4 Financial Data Schedule - United Stationers Supply Co. (1998) 99 Not applicable
-19- UNITED STATIONERS INC. AND SUBSIDIARIES SIGNATURE 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. --------------------------------------- (Registrant) Date: August 12, 1998 /s/ Daniel H. Bushell --------------- --------------------------------------- Daniel H. Bushell Executive Vice President and Chief Financial Officer -20- UNITED STATIONERS INC. AND SUBSIDIARIES INDEX TO EXHIBITS
(a) Exhibit Number ------- 2 Not applicable 10 Not applicable 11 Not applicable 15.1 Letter regarding unaudited interim financial information 18 Not applicable 19 Not applicable 22 Not applicable 23 Not applicable 24 Not applicable 27.1 Financial Data Schedule - United Stationers Inc. (1997) 27.2 Financial Data Schedule - United Stationers Inc. (1998) 27.3 Financial Data Schedule - United Stationers Supply Co. (1997) 27.4 Financial Data Schedule - United Stationers Supply Co. (1998) 99 Not applicable
-21- EX-15 2 EXHIBIT 15 Exhibit 15 August 12, 1998 The Board of Directors United Stationers Inc. We are aware of the incorporation by reference in the Registration Statements on Forms S-3 (No. 333-02247) and S-8 of United Stationers Inc. for the registration of 2,035,243 and 4,100,000 shares of its common stock, respectively, and in the Registration Statement on Form S-4 of United Stationers Supply Co. for the registration of $100,000,000 of 8-3/8% Senior Subordinated Notes due 2008 of our report dated July 28, 1998 relating to the unaudited condensed consolidated interim financial statements of United Stationers Inc. which are included in its Form 10-Q for the quarter ended June 30, 1998. /s/Ernst & Young LLP EX-27.1 3 EXHIBIT 27.1
5 0000355999 UNITED STATIONERS INC. 1,000 3-MOS 6-MOS DEC-31-1997 DEC-31-1997 APR-01-1997 JAN-01-1997 JUN-30-1997 JUN-30-1997 18,313 18,313 0 0 255,826 255,826 7,061 7,061 262,887 282,887 730,660 730,660 229,268 229,268 62,385 62,385 1,039,125 1,039,125 353,660 353,660 0 0 20,702 20,702 0 0 1,153 1,153 86,551 86,551 1,039,125 1,039,125 610,041 1,245,062 610,041 1,245,062 505,307 1,031,586 505,307 1,031,586 73,638 148,756 92 1,678 13,867 28,528 17,137 34,514 7,267 14,635 9,870 19,879 0 0 0 0 0 0 9,870 18,879 0.77 1.55 0.64 1.30
EX-27.2 4 EXHIBIT 27.2
5 0000355999 UNITED STATIONERS, INC. 1,000 3-MOS 6-MOS DEC-31-1998 DEC-31-1998 APR-01-1998 JAN-01-1998 JUN-30-1998 JUN-30-1998 21,727 21,727 0 0 179,259 179,259 9,902 9,902 498,300 498,300 706,114 706,114 252,237 252,237 89,156 89,156 1,070,799 1,070,799 374,714 374,714 0 0 0 0 0 0 1,832 1,832 326,387 326,387 1,070,799 1,070,799 751,966 1,464,483 751,966 1,464,483 626,076 1,215,531 626,076 1,215,531 101,607 186,061 2,210 2,793 9,516 21,342 12,557 38,756 5,328 16,436 7,229 22,320 0 0 (5,907) (5,907) 0 0 1,322 16,413 .08 1.01 .08 .95
EX-27.3 5 EXHIBIT 27.3
5 0000945633 UNITED STATIONERS SUPPLY CO. 1,000 3-MOS 6-MOS DEC-31-1997 DEC-31-1997 APR-01-1997 JAN-01-1997 JUN-30-1997 JUN-30-1997 18,313 18,313 0 0 255,826 255,826 7,061 7,061 262,887 262,887 730,660 730,660 229,268 229,268 62,385 62,385 1,039,125 1,039,125 353,660 353,660 0 0 20,702 20,702 0 0 1,153 1,153 86,551 86,551 1,039,125 1,039,125 610,041 1,245,062 610,041 1,245,062 505,307 1,031,586 505,307 1,031,586 73,638 148,756 92 1,678 13,867 28,528 17,137 34,514 7,267 14,635 9,870 19,879 0 0 0 0 0 0 9,870 19,879 0.77 1.55 0.64 1.30
EX-27.4 6 EXHIBIT 27.4
5 0000945633 UNITED STATIONERS SUPPLY CO. 1,000 3-MOS 6-MOS DEC-31-1998 DEC-31-1998 APR-01-1998 JAN-01-1998 JUN-30-1998 JUN-30-1998 21,727 21,727 0 0 179,259 179,259 9,902 9,902 498,300 498,300 706,114 706,114 252,237 252,237 89,156 89,156 1,070,799 1,070,799 374,714 374,714 0 0 0 0 0 0 1,832 1,832 326,387 326,387 1,070,799 1,070,799 751,966 1,464,483 751,966 1,464,483 626,076 1,215,531 626,076 1,215,531 101,607 186,061 2,210 2,793 9,516 21,342 12,557 38,756 5,328 16,436 7,229 22,320 0 0 (5,907) (5,907) 0 0 1,322 16,413 .08 1.01 .08 .95
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