NAPERVILLE, Ill., Feb. 19 /PRNewswire-FirstCall/ -- OfficeMax(R)
Incorporated (NYSE: OMX) today announced the results for its fourth quarter
and fiscal year ended December 29, 2007. Total sales decreased 2.6% in the
fourth quarter of 2007 to $2.2 billion compared to the fourth quarter of
2006, while total sales increased 1.3% for the full year 2007 to $9.1
billion compared to the full year 2006. Net income increased in the fourth
quarter of 2007 to $71.5 million, or $.92 per diluted share, from $58.0
million, or $.76 per diluted share, in the fourth quarter of 2006. Net
income for the full year 2007 increased to $207.4 million, or $2.66 per
diluted share, compared with net income of $91.7 million, or $1.19 per
diluted share, reported in 2006.
Results for the fourth quarter and full year 2007 included items which
are not expected to be ongoing. All financial measures designated in this
release as "adjusted" are non-GAAP financial measures that exclude the
effect of certain special items. A detailed description of these special
items, and a reconciliation to the company's GAAP financial results, are
included in this press release. Adjusted net income in the fourth quarter
of 2007 increased 37% to $51.1 million, or $.65 per diluted share, from
$37.2 million, or $.48 per diluted share, in the fourth quarter of 2006.
For the full year 2007, adjusted net income increased 18% to $188.1
million, or $2.41 per diluted share, from $159.1 million, or $2.10 per
diluted share, in 2006.
"We demonstrated progress on our turnaround plan in the fourth quarter
and for the full year 2007," said Sam Duncan, Chairman and CEO of
OfficeMax. "In the fourth quarter, we were able to generate further
operating income margin improvement, while we navigated a weaker economic
environment. In our Contract segment, we experienced declining gross margin
rates, but we lowered expenses. In our Retail segment, we adjusted our
promotional strategies for improved gross margin rates and invested in new
stores. For the full year 2007, by lowering costs and managing margins, we
enabled operating income margin expansion and bottom-line earnings growth."
Contract Segment Results
OfficeMax Contract segment sales decreased 0.8% to $1.2 billion in the
fourth quarter of 2007 compared to the fourth quarter of 2006, reflecting
U.S. Contract sales decline of 7.8%, partially offset by International
Contract operations sales growth of 20.4% in U.S. dollars, or 3.4% in local
currencies. U.S. Contract sales declined in the fourth quarter compared to
the prior year period primarily due to lower sales from existing customer
accounts, to the company's initiative to be more disciplined in account
acquisition and retention, and to lower sales from small market customers.
For the full year 2007, Contract segment sales increased 2.2% to $4.8
billion compared to the prior year, reflecting U.S. Contract sales decline
of 1.2%, offset by International Contract operations sales growth of 12.3%
in U.S. dollars, or 2.8% in local currencies.
Contract segment gross margin decreased to 21.7% in the fourth quarter
of 2007 from 22.5% in the fourth quarter of 2006, primarily due to lower
vendor income levels compared to the fourth quarter of 2006. For the full
year 2007, Contract segment gross margin decreased to 21.8% from 22.5% in
2006. Contract segment operating expense as a percent of sales in the
fourth quarter of 2007 improved to 17.3% from adjusted operating expense as
a percent of sales of 18.2% in the fourth quarter of 2006. The improvement
was primarily due to targeted cost controls, including the reorganization
of U.S. Contract, expense leverage in International Contract operations, as
well as reduced incentive compensation expense. For the full year 2007,
Contract segment operating expense as a percent of sales improved to 17.5%
from adjusted operating expense as a percent of sales of 18.1% in 2006.
Contract segment operating income increased to $52.0 million, or 4.4%
of sales, from adjusted operating income of $50.8 million, or 4.3% of
sales, in the fourth quarter of 2006. For the full year 2007, Contract
segment operating income of $207.9 million, or 4.3% of sales, was
consistent with adjusted operating income of $208.0 million, or 4.4% of
sales, in 2006.
Retail Segment Results
OfficeMax Retail segment sales decreased 4.5% to $1.03 billion in the
fourth quarter of 2007 compared to the fourth quarter of 2006, reflecting a
same-store sales decrease of 7.3% partially offset by sales from new
stores. Retail same-store sales for the fourth quarter of 2007 declined
across all major product categories due to weakness in consumer and small
business customer purchases, as well as the company's more targeted
promotional activity during the holiday season. For the full year 2007,
OfficeMax Retail segment sales increased 0.3% to $4.27 billion compared to
2006, reflecting a same-store sales decrease of 1.2% partially offset by
sales from new stores. Adjusted for the company's initiative to eliminate
mail-in rebates, and to provide instant rebates in lieu of national,
vendor-sponsored mail-in rebates, same-store sales decreased 0.5% for the
full year 2007.
Retail segment gross margin increased to 30.0% in the fourth quarter of
2007 from 29.1% in the fourth quarter of 2006, primarily due to more
effective promotional strategies that drove a sales mix shift to a higher
percentage of core office supplies category sales, partially offset by
occupancy costs for new stores. For the full year 2007, Retail segment
gross margin increased to 29.5% from 29.3% in 2006. Retail segment
operating expense as a percent of sales increased to 26.2% in the fourth
quarter of 2007 from 25.1% in the fourth quarter of 2006, primarily due to
expense deleveraging from new stores and the same-store sales decrease,
partially offset by reduced incentive compensation expense. For the full
year 2007, Retail segment operating expense as a percent of sales increased
to 25.4% from adjusted operating expense as a percent of sales of 25.2% in
2006.
Retail segment operating income decreased to $39.1 million, or 3.8% of
sales, from $42.3 million, or 3.9% of sales, in the fourth quarter of 2006.
For the full year 2007, Retail segment operating income decreased to $173.7
million, or 4.1% of sales, from adjusted operating income of $175.8
million, or 4.1% of sales, in 2006.
During the fourth quarter of 2007, OfficeMax opened 41 retail stores in
the U.S., closed 2 retail stores in the U.S., and opened 3 retail stores in
Mexico. During 2007, OfficeMax opened 59 new retail stores in the U.S. and
15 stores in Mexico. OfficeMax ended 2007 with a total of 976 retail
stores, consisting of 908 retail stores in the U.S. and 68 retail stores in
Mexico.
Corporate and Other Segment Results
The OfficeMax Corporate and Other segment includes support staff
services and certain other expenses that are not fully allocated to the
Retail and Contract segments. Corporate and Other segment operating expense
decreased to $3.2 million in the fourth quarter of 2007 from adjusted
operating expense of $17.0 million in the fourth quarter of 2006, primarily
due to lower incentive compensation costs, reduced legacy-related costs,
and targeted cost controls. For the full year 2007, Corporate and Other
segment operating expense decreased to $37.4 million from adjusted
operating expense of $71.6 million in 2006.
The company's effective tax rate was 35.4% in the fourth quarter and
37.1% for the full year 2007, both benefiting from the resolution of
certain tax matters.
As of December 29, 2007, OfficeMax reported total debt of $398.4
million, excluding $1.470 billion of timber securitization notes which have
recourse limited to the $1.635 billion of timber installment notes
receivable. During the fourth quarter of 2007, OfficeMax generated $39.2
million of cash from operations, an increase of $3.3 million from the
fourth quarter 2006. For the full year of 2007, OfficeMax generated $70.6
million of cash from operations, a decrease of $305.1 million from 2006,
primarily due to the termination of the company's accounts receivable
securitization program in July 2007 and a reduction in accounts payable.
OfficeMax invested $39.5 million and $140.8 million for capital
expenditures in the fourth quarter of 2007 and full year 2007,
respectively.
"In 2008, we look forward to continuing to implement our turnaround
plan initiatives and realizing benefits from our efforts even as we expect
to be impacted by a weaker U.S. economy," Mr. Duncan concluded. "We
continued to experience pressure on sales in January and early February
2008, but we expect to pursue margin and cost management initiatives
throughout 2008. Overall, we remain steadfast in pursuing additional
opportunities to create long-term shareholder value."
As previously announced, OfficeMax intends to hold its 2008 Investor
Day on Wednesday, March 19, 2008. The company plans to provide additional
details of initiatives driving its performance in 2008 and beyond at the
Investor Day. Details for accessing a webcast of the Investor Day will be
announced at a future date.
Forward-Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the company constitute "forward-looking
statements" within the meaning of the federal securities laws, including
statements regarding the company's future performance, as well as
management's expectations, beliefs, intentions, plans, estimates or
projections relating to the future. Management believes that these
forward-looking statements are reasonable. However, the company cannot
guarantee that it will successfully execute its turnaround plans or that
its actual results will be consistent with the forward-looking statements
and you should not place undue reliance on them. These statements are based
on current expectations and speak only as of the date they are made. The
company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of future events, new
information or otherwise. Important factors regarding the company which may
cause results to differ from expectations are included in the company's
Annual Report on Form 10-K for the year ended December 30, 2006, under Item
1A "Risk Factors", and in the company's other filings with the SEC.
Conference Call Information
OfficeMax will host a conference call with analysts and investors today
to discuss its fourth quarter 2007 financial results at 9:00 a.m. Eastern
Time (8:00 a.m. Central Time). To participate in the conference call, dial
(800) 374-0165; international callers should dial (706) 634-0995. An audio
webcast of the conference call can be accessed via the Internet by visiting
the Investors section of the OfficeMax website at
http://investor.officemax.com. The webcast will be archived and available
online for one year following the call and will be posted on the
"Presentations" page located within the Investors section of the OfficeMax
website.
About OfficeMax
OfficeMax Incorporated (NYSE: OMX) is a leader in both business-to-
business office products solutions and retail office products. The
OfficeMax mission is simple. We help our customers do their best work. The
company provides office supplies and paper, in-store print and document
services through OfficeMax ImPress(TM), technology products and solutions,
and furniture to consumers and to large, medium and small businesses.
OfficeMax customers are served by approximately 36,000 associates through
direct sales, catalogs, e-commerce and more than 900 stores. To find the
nearest OfficeMax, call 1-877-OFFICEMAX. For more information, visit
http://www.officemax.com.
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(thousands)
December 29, December 30,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $152,637 $282,070
Receivables, net 720,878 562,528
Inventories 1,088,312 1,071,486
Other current assets 242,874 180,760
Total current assets 2,204,701 2,096,844
Property and equipment:
Property and equipment 1,279,609 1,189,686
Accumulated depreciation (698,954) (610,061)
Property and equipment, net 580,655 579,625
Goodwill and intangible assets, net 1,416,524 1,417,336
Timber notes receivable 1,635,000 1,635,000
Other non-current assets 446,888 487,243
Total assets $6,283,768 $6,216,048
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $14,197 $-
Current portion of long-term debt 34,827 25,634
Accounts payable 861,285 997,700
Accrued liabilities and other 460,400 505,569
Total current liabilities 1,370,709 1,528,903
Long-term debt:
Long-term debt, less current portion 349,421 384,246
Timber notes securitized 1,470,000 1,470,000
Total long-term debt 1,819,421 1,854,246
Other long-term obligations:
Compensation and benefits 200,283 287,122
Other long-term liabilities 582,741 530,248
Total other long-term liabilities 783,024 817,370
Minority interest 32,042 29,885
Shareholders' equity:
Preferred stock 49,989 54,735
Common stock 188,481 187,226
Additional paid-in capital 922,414 893,848
Retained earnings 1,095,950 941,830
Accumulated other comprehensive income
(loss) 21,738 (91,995)
Total shareholders' equity 2,278,572 1,985,644
Total liabilities and shareholders' equity $6,283,768 $6,216,048
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(thousands, except per-share amounts)
Quarter Ended
December 29, December 30,
2007 2006
Sales $2,198,072 $2,256,805
Cost of goods sold and occupancy costs 1,634,848 1,678,157
Gross profit 563,224 578,648
Operating expenses:
Operating and selling 400,492 409,619
General and administrative 76,356 94,435
Other operating, net (1,521) 9,186
Operating income 87,897 65,408
Other income (expense):
Interest expense (29,976) (30,806)
Interest income 21,313 23,606
Other, net 32,546 36,174
23,883 28,974
Income from continuing operations before income
taxes and minority interest 111,780 94,382
Income tax expense (39,613) (39,201)
Income from continuing operations before
minority interest 72,167 55,181
Minority interest, net of income tax (698) (791)
Income from continuing operations 71,469 54,390
Discontinued operations:
Income tax benefit - 3,647
Income from discontinued operations - 3,647
Net income 71,469 58,037
Preferred dividends (1,014) (1,009)
Net income applicable to common shareholders $70,455 $57,028
Basic income per common share:
Continuing operations $0.93 $0.72
Discontinued operations - 0.04
Basic income per common share $0.93 $0.76
Diluted income per common share:
Continuing operations $0.92 $0.71
Discontinued operations - 0.05
Diluted income per common share $0.92 $0.76
Weighted Average Shares
Basic 75,385 74,625
Diluted 76,602 75,464
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(thousands, except per-share amounts)
Year Ended
December 29, December 30,
2007 2006
Sales $9,081,962 $8,965,707
Cost of goods sold and occupancy costs 6,771,657 6,656,497
Gross profit 2,310,305 2,309,210
Operating and other expenses:
Operating and selling 1,633,606 1,641,147
General and administrative 338,593 361,818
Other operating, net (6,065) 140,343
Operating income 344,171 165,902
Other income (expense):
Debt retirement expense - -
Interest expense (121,271) (123,082)
Interest income 87,940 89,723
Other, net 26,687 39,335
(6,644) 5,976
Income from continuing operations before
income taxes and minority interest 337,527 171,878
Income tax expense (125,282) (68,741)
Income from continuing operations before
minority interest 212,245 103,137
Minority interest, net of income tax (4,872) (4,083)
Income from continuing operations 207,373 99,054
Discontinued operations:
Operating loss - (17,972)
Income tax benefit - 10,639
Income (loss) from discontinued operations - (7,333)
Net income 207,373 91,721
Preferred dividends (3,961) (4,037)
Net income applicable to common shareholders $203,412 $87,684
Basic income (loss) per common share:
Continuing operations $2.70 $1.30
Discontinued operations - (0.10)
Basic income per common share $2.70 $1.20
Diluted income (loss) per common share:
Continuing operations $2.66 $1.29
Discontinued operations - (0.10)
Diluted income per common share $2.66 $1.19
Weighted Average Shares
Basic 75,274 73,142
Diluted 76,374 73,713
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(thousands)
Year Ended
December 29, December 30,
2007 2006
Cash provided by operations:
Net income $207,373 $91,721
Items in net income not using (providing)
cash:
Depreciation and amortization 131,573 127,812
Other 39,062 50,563
Changes other than from acquisitions of
business:
Receivables and inventory (142,705) 72,127
Accounts payable and accrued liabilities (228,269) 8,662
Income taxes and other 63,570 24,754
Cash provided by operations 70,604 375,639
Cash used for investment:
Expenditures for property and equipment (140,843) (174,769)
Other 1,909 10,833
Cash used for investment (138,934) (163,936)
Cash used for financing:
Cash dividends paid (49,103) (47,546)
Changes in debt, net (11,554) (84,276)
Proceeds from exercise of stock options 5,917 129,966
Other (7,885) (33)
Cash used for financing (62,625) (1,889)
Effect of exchange rates on cash and cash
equivalents 1,522 58
Increase (decrease) in cash and cash
equivalents (129,433) 209,872
Cash and cash equivalents at beginning of
period 282,070 72,198
Cash and cash equivalents at end of period $152,637 $282,070
OFFICEMAX INCORPORATED AND SUBSIDIARIES
SUPPLEMENTAL SEGMENT INFORMATION
(unaudited)
(millions, except per-share data)
Quarter Ended
December 29, 2007 December 30, 2006
As As
As Special Adjusted As Special Adjusted
Reported Items(a) (c) Reported Items(b) (c)
Segment Sales
OfficeMax,
Contract $1,168.7 $1,168.7 $1,178.7 $1,178.7
OfficeMax,
Retail 1,029.3 1,029.3 1,078.1 1,078.1
2,198.0 2,198.0 2,256.8 2,256.8
Segment income
(loss)
OfficeMax,
Contract $52.0 $- $52.0 $48.4 $2.4 $50.8
OfficeMax,
Retail 39.1 - 39.1 42.3 - 42.3
Corporate and
Other (3.2) - (3.2) (25.3) 8.3 (17.0)
Operating income 87.9 - 87.9 65.4 10.7 76.1
Operating income
margin 4.0% 4.0% 2.9% 3.4%
Interest expense (30.0) - (30.0) (30.8) - (30.8)
Interest income
and other 53.9 (32.4) 21.5 59.8 (38.8) 21.0
Income (loss)
from continuing
operations before
income taxes and
minority interest 111.8 (32.4) 79.4 94.4 (28.1) 66.3
Income taxes (39.6) 12.0 (27.6) (39.2) 10.9 (28.3)
Income (loss)
from continuing
operations before
minority interest 72.2 (20.4) 51.8 55.2 (17.2) 38.0
Minority interest,
net of income tax (0.7) - (0.7) (0.8) - (0.8)
Income (loss) from
continuing
operations 71.5 (20.4) 51.1 54.4 (17.2) 37.2
Discontinued
operations
Income tax
benefit - - - 3.6 (3.6) -
Income (loss) from
discontinued
operations - - - 3.6 (3.6) -
Net income (loss) $71.5 $(20.4) $51.1 $58.0 $(20.8) $37.2
Diluted income (loss)
per common share
Continuing
operations $0.92 $(0.27) $0.65 $0.71 $(0.23) $0.48
Discontinued
operations - - - 0.05 (0.05) -
Diluted income
(loss) per
common share $0.92 $(0.27) $0.65 $0.76 $(0.28) $0.48
Totals may not foot due to rounding.
(a) See Note 4 for a discussion of these special items.
(b) See Notes 3 and 5 for a discussion of these special items.
(c) For the purpose of evaluating our results, net of taxes, we have
presented the special items using an estimated effective annual tax
rate.
OFFICEMAX INCORPORATED AND SUBSIDIARIES
SUPPLEMENTAL SEGMENT INFORMATION
(unaudited)
(millions, except per-share data)
Year Ended
December 29, 2007 December 30, 2006
As As
As Special Adjusted As Special Adjusted
Reported Items(a) (c) Reported Items(b) (c)
Segment Sales
OfficeMax,
Contract $4,816.1 $4,816.1 $4,714.5 $4,714.5
OfficeMax,
Retail 4,265.9 4,265.9 4,251.2 4,251.2
9,082.0 9,082.0 8,965.7 8,965.7
Segment income
(loss)
OfficeMax,
Contract $207.9 $- $207.9 $197.7 $10.3 $208.0
OfficeMax,
Retail 173.7 - 173.7 86.3 89.5 175.8
Corporate and
Other (37.4) - (37.4) (118.0) 46.4 (71.6)
Operating income 344.2 - 344.2 166.0 146.2 312.2
Operating income
margin 3.8% 3.8% 1.9% 3.5%
Interest expense (121.3) - (121.3) (123.1) - (123.1)
Interest income
and other 114.6 (32.4) 82.2 129.1 (48.0) 81.1
Income (loss) from
continuing
operations before
income taxes and
minority interest 337.5 (32.4) 305.1 172.0 98.2 270.2
Income taxes (125.2) 12.0 (113.2) (68.8) (38.2) (107.0)
Income (loss)
from continuing
operations before
minority interest 212.3 (20.4) 191.9 103.2 60.0 163.2
Minority interest,
net of income tax (4.9) 1.1 (3.8) (4.1) - (4.1)
Income (loss)
from continuing
operations 207.4 (19.3) 188.1 99.1 60.0 159.1
Discontinued
operations
Operating loss - - - (18.0) 18.0 -
Income tax benefit - - - 10.6 (10.6) -
Loss from discontinued
operations - - - (7.4) 7.4 -
Net income (loss) $207.4 $(19.3) $188.1 $91.7 $67.4 $159.1
Diluted income
(loss) per common
share
Continuing
operations $2.66 $(0.25) $2.41 $1.29 $0.81 $2.10
Discontinued
operations - - - (0.10) 0.10 -
Diluted income
(loss) per common
share $2.66 $(0.25) $2.41 $1.19 $0.91 $2.10
Totals may not foot due to rounding.
(a) See Note 4 for a discussion of these special items.
(b) See Notes 3 and 5 for a discussion of these special items.
(c) For the purpose of evaluating our results, net of taxes, we have
presented the special items using an estimated effective annual tax
rate.
(1) Financial Information The quarterly and annual consolidated financial statements included in
this release are unaudited, and should be read in conjunction with the
audited financial statements in our 2006 Annual Report on Form 10-K. In all
periods presented, the measurement of net income (loss) involved estimates
and judgments.
(2) Reconciliation of non-GAAP Measures to GAAP Measures
We evaluate our results of operations both before and after certain
gains and losses that management believes are not indicative of our core
operating activities. We believe our presentation of financial measures
before, or excluding, these items, which are non-GAAP measures, enhances
our investors' overall understanding of our recurring operational
performance and provides useful information to both investors and
management to evaluate the ongoing operations and prospects of OfficeMax by
providing better comparisons. Whenever we use non-GAAP financial measures,
we designate these measures, which exclude the effect of certain special
items, as "adjusted" and provide a reconciliation of non-GAAP financial
measures to the most closely applicable GAAP financial measure. Investors
are encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most directly
comparable GAAP financial measure. In the preceding tables, we reconcile
our financial measures before special items to our reported GAAP financial
results for the fourth quarter and full year of both 2007 and 2006.
Although we believe the non-GAAP financial measures enhance an
investor's understanding of our performance, our management does not
itself, nor does it suggest that investors should, consider such non-GAAP
financial measures in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. The non-GAAP financial
measures we use may not be consistent with the presentation of similar
companies in our industry. However, we present such non-GAAP financial
measures in reporting our financial results to provide investors with an
additional tool to evaluate our operating results in a manner that focuses
on what we believe to be our ongoing business operations.
(3) 2006 Special Items
First Quarter 2006
During the first quarter of 2006, we closed 109 underperforming
domestic retail stores and recorded a charge of $98.6 million in our Retail
segment primarily for remaining lease obligations and we incurred $15.7
million of expenses in our Corporate and Other segment related to our
headquarters consolidation primarily for employee severance and retention.
Second Quarter 2006
During the second quarter of 2006, we recorded a $9.0 million pre-tax
benefit in our Retail segment from an adjustment to the reserve for closed
retail stores, and we incurred $10.9 million of expenses in our Corporate
and Other segment related to our headquarters consolidation, primarily for
employee severance and retention. Also during the second quarter of 2006,
we recognized a $9.2 million credit from an adjustment to the reserve for
the additional consideration agreement that was entered into in connection
with the October 2004 sale of our paper, forest products and timberland
assets. This adjustment is included in Other, income (expense) net.
Third Quarter 2006
During the third quarter of 2006, we incurred $11.5 million of expenses
in our Corporate and Other segment related to our headquarters
consolidation, and incurred $7.9 million of expenses in our Contract
segment related to our Contract reorganization primarily for severance.
Fourth Quarter 2006
During the fourth quarter of 2006, we incurred $8.3 million of expenses
in our Corporate and Other segment primarily related to our headquarters
consolidation, and we incurred $2.4 million of expenses in our Contract
segment related to a facility closure and severance. Also during the fourth
quarter of 2006, we recognized a $38.8 million credit from an adjustment to
the reserve for the additional consideration agreement that was entered
into in connection with the October 2004 sale of our paper, forest
products, and timberland assets. This adjustment is included in Other, net
income (expense).
(4) 2007 Special Items
First Quarter 2007
During the first quarter of 2007, we sold OfficeMax Contract's
operations in Mexico to OfficeMax de Mexico, our 51% owned joint venture,
resulting in a net loss of $1.1 million which is included in minority
interest, net of income tax in our Consolidated Statements of Income (Loss)
for 2007.
Fourth Quarter 2007
During the fourth quarter of 2007, we recognized income of $32.5
million from the additional consideration agreement that was entered into
in connection with the October 2004 sale of our paper, forest products, and
timberland assets. This income is included in Other, net income (expense).
(5) Discontinued Operations
In the first quarter of 2006, we ceased operations at the Company's
wood-polymer building materials facility near Elma, Washington. The costs
and expenses related to this business are reflected as discontinued
operations in our Consolidated Statements of Income (Loss) for 2006 and are
included as special items in our Segment Information tables.
SOURCE OfficeMax(R) Incorporated
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Related links:
http://www.officemax.com
CONTACT:
Media, Bill Bonner, +1-630-864-6066, or
Investor, John Jennings, +1-630-864-6820, both of OfficeMax
Incorporated
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