United Stationers Inc. (NASDAQ: USTR) reported second quarter 2012 results.
Second Quarter Financial Summary
- Net sales were up 1.5% to $1.28 billion compared with $1.26 billion in the prior-year quarter.
- Diluted earnings per share were $0.66 versus $0.54 in the prior-year quarter. Current period earnings per share were up 12% versus adjusted earnings per share in the prior-year quarter of $0.59 (1).
- Second quarter gross margin was $188.3 million, or 14.8% of sales, compared with $184.2 million, or 14.7% of sales, in the prior-year quarter.
- Operating expenses were $137.9 million, or 10.8% of sales, compared with $136.4 million, or 10.9% of sales in the prior-year quarter. Excluding a non-cash pre-tax equity compensation charge related to the former CEO’s retirement, second quarter 2011 adjusted operating expenses were $132.0 million (1) or 10.5% (1) of sales.
- Operating margin was $50.3 million, or 3.9% of sales, versus $47.8 million, or 3.8% of sales, in the prior-year quarter. Excluding the item noted above, adjusted operating margin in the prior-year quarter was $52.2 million (1) or 4.2% (1) of sales.
- Net income was $27.0 million compared with $24.8 million in the prior-year quarter. Excluding the non-cash item, adjusted net income in the prior-year quarter was $27.5 million (1).
- Net cash provided by operating activities for the six months ended June 30, 2012 totaled $48.3 million versus $73.3 million in the prior-year period.
- Cash paid for share repurchases totaled $54.3 million for approximately 1.8 million shares during the six months ended June 30, 2012.
“Our growth categories and channels continued to deliver strong performance and we are making progress on our efficiency initiatives,” said Cody Phipps, president and chief executive officer. “Our industrial and janitorial/breakroom areas showed solid growth and we are pleased with our progress in the e-retail and public sector channels. The office products environment is still challenging, but we continue to pursue opportunities here to drive specific category growth initiatives.”