Staples, Inc. (Nasdaq: SPLS) ha annunciato oggi i risultati del terzo trimestre terminato il 27 ottobre 2012. Il fatturato aziendale globale del terzo trimestre 2012 è stato pari a 6,4 miliardi di dollari, diminuendo del 2% in dollari USA e dell’1% in valuta locale rispetto al terzo trimestre 2011. A seguito di oneri precedentemente annunciati, su base GAAP, l’azienda ha dichiarato una perdita netta di 569 milioni di dollari, ossia 0,85 dollari per azione, da attività continuative attribuibili a Staples, Inc., rispetto al reddito netto di 324 milioni di dollari, ossia 0,46 dollari per azione su base diluita, realizzato nel terzo trimestre 2011. Escludendo le rettifiche di valore dell’avviamento e di altre voci di attivo, nonché la ristrutturazione, l’ammortamento intensivo e i relativi oneri fiscali sostenuti nel terzo trimestre 2012, l’azienda ha dichiarato un reddito netto extra GAAP da attività continuative attribuibili a Staples, Inc. pari a 310 milioni di dollari, ossia 0,46 dollari per azione su base diluita. Riepilogo dei dati finanziari per il terzo trimestre 2012 (dollar amounts in millions, except per share data) Q3 2012 Q3 2011 Year over YearChange Total company sales $6,353 $6,481 -2.0% Total company sales growth on a local currency basis* -1.4% GAAP operating (loss) income ($357) $529 ($886) Non-GAAP operating income* $500 $529 ($29) GAAP operating (loss) income rate (5.62%) 8.17% (1,379 basis points) Non-GAAP operating income rate* 7.87% 8.17% (30 basis points) GAAP (loss) income per share from continuing operations attributable to Staples, Inc. ($0.85) $0.46 ($1.31) Non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc.* $0.46 $0.46 $0.00 *Indicates a non-GAAP measure. Refer to “Presentation of Non-GAAP Information” and the accompanying reconciliations for more detailed information about these non-GAAP measures. Non-GAAP operating income, non-GAAP operating income rate, and non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc. exclude the impact of Q3 2012 charges related to the impairment of goodwill and other assets, restructuring charges and accelerated tradename amortization. Non-GAAP earnings per diluted share from continuing operations attributable to Staples, Inc. also excludes Q3 2012 tax charges. In total, these charges negatively impacted Q3 2012 GAAP earnings per share from continuing operations attributable to Staples, Inc. by $1.31. “Nel terzo trimestre abbiamo avviato un nuovo piano strategico per divenire il punto di riferimento delle imprese per quanto riguarda i prodotti, abbiamo ristrutturato la nostra organizzazione e generato forti utili escludendo gli oneri”, ha dichiarato Ron Sargent, Presidente e CEO di Staples. “In futuro saremo assai meglio posizionati per cogliere le opportunità di crescita”. Il reddito operativo globale extra GAAP dell’azienda è diminuito di 30 punti base, raggiungendo il 7,87% dall’8,17% ottenuto nel terzo trimestre 2011. Questo calo è dovuto in primo luogo a margini sui prodotti inferiori nei segmenti North American Delivery e Attività internazionali, oltre che agli investimenti di stimolo alla crescita di Staples.com. Tale dato negativo è stato in parte controbilanciato da retribuzioni e spese per il marketing inferiori. L’azienda ha generato un flusso di cassa operazionale di 895 milioni di dollari e ha investito nell’ultimo anno 204 milioni di dollari in spese in conto capitale, ottenendo a oggi un flusso di cassa disponibile di 691 milioni di dollari. Nel terzo trimestre 2012 l’azienda ha riacquistato 9,4 milioni di azioni per 111 milioni di dollari, mentre nell’ultimo anno ne ha riacquistate 27,4 milioni per 362 milioni di dollari. L’azienda ha inoltre ripagato un prestito obbligazionario di 325 milioni di dollari che era giunto a scadenza l’1 ottobre 2012. Al termine del terzo trimestre, l’azienda disponeva di 2,2 miliardi di dollari in liquidità, inclusi 1,0 miliardi di disponibilità liquide e mezzi equivalenti. North American Delivery Nel terzo trimestre 2012, le vendite di North American Delivery sono state pari a 2,6 miliardi di dollari, dato in aumento dell’1% rispetto al terzo trimestre 2011. Tale risultato rispecchia essenzialmente la crescita delle vendite di attrezzature e forniture per caffetterie, nonché dei servizi di copia e stampa, parzialmente controbilanciata dalla perdita già annunciata di due clienti di grandi dimensioni del settore Contract nel terzo trimestre 2011. Rispetto al terzo trimestre 2011, il reddito operativo è sceso di 76 punti base raggiungendo l’8,73%. Tale calo risente inoltre dei minori margini sui prodotti e della riduzione degli investimenti effettuati per stimolare la crescita di Staples.com, compensati in parte da una riduzione delle spese di marketing. North American Retail Le vendite di North American Retail, pari a 2,6 miliardi di dollari, sono rimaste sostanzialmente invariate rispetto al terzo trimestre 2011. Il fatturato relativo ai punti vendita (stores) del terzo trimestre 2012 è sceso dell’1%, rispecchiando un calo del 2% del traffico clienti, mentre gli ordinativi medi sono cresciuti dell’1% rispetto all’anno precedente. La contrazione delle vendite nei settori computer e software è stata in parte controbilanciata dalla crescita dei servizi di copia e stampa e delle forniture di base per ufficio. Rispetto al terzo trimestre 2011, il reddito operativo è cresciuto di 9 punti base e ha raggiunto il 10,79%. Tale aumento rispecchia essenzialmente la riduzione delle spese di esercizio e il miglioramento delle efficienze distributive, ed è stato parzialmente controbilanciato dagli investimenti in attività promozionali. Operazioni internazionali Il fatturato delle operazioni internazionali per il terzo trimestre è stato pari a 1,1 miliardi di dollari, registrando una flessione del 12% in dollari USA e dell’8% in valuta locale rispetto al terzo trimestre 2011. Questi risultati rispecchiano un ristagno delle vendite in Europa e Australia. La debolezza dell’economia ha determinato un calo nei settori European Delivery dell’azienda, nonché una flessione del 6% del fatturato relativo ai punti vendita in Europa. Rispetto al terzo trimestre 2011, il reddito operativo è sceso di 302 punti base raggiungendo lo 0,15%. Escludendo i 16 milioni di dollari dell’ammortamento intensivo del nome commerciale australiano nel terzo trimestre, rispetto allo scorso anno il reddito operativo è diminuito di 160 punti base e ha raggiunto l’1,27%. Tale diminuzione rispecchia essenzialmente la riduzione della leva finanziaria delle spese fisse in Europa e Australia, nonché i margini inferiori ottenuti sui prodotti in Europa, ed è parzialmente controbilanciata dai risparmi ottenuti con le riduzioni di personale in Europa e Australia. Attività cessate Nel terzo trimestre 2012, l’azienda ha registrato una perdita al netto delle imposte da cessazioni di attività pari a 28 milioni di dollari relativa al settore dei sistemi di stampa in Europa, la quale comprende 23 milioni di dollari di oneri per spese di ristrutturazione e tassazione progressiva. A ciò fa riscontro il reddito netto di 3 milioni di dollari da cessazioni di attività realizzato nel terzo trimestre 2011. Scenario Il parametro finanziario dell’azienda tiene conto dell’effetto della 53ª settimana dell’anno fiscale 2012 e dell’effetto dei tassi di cambio esteri. L’azienda prevede che il fatturato dell’intero anno rimanga sostanzialmente invariato rispetto all’anno precedente. L’azienda prevede un modesto aumento degli utili per azione diluiti extra GAAP da attività continuative per l’intero anno, rispetto agli utili per azione diluiti extra GAAP da attività continuative pari a 1,37 dollari realizzati nel 2011. La stima degli utili per azione diluiti extra GAAP per l’intero anno non tiene conto degli oneri sostenuti nel terzo trimestre 2012, né degli oneri al lordo delle imposte già annunciati per circa 160–200 milioni di dollari legati alla ristrutturazione in Europa, alla chiusura di punti vendita negli Stati Uniti e all’ammortamento intensivo del nome commerciale australiano, che l’azienda prevede di registrare nel quarto trimestre 2012. Nel 2012 l’azienda prevede di generare un flusso di cassa disponibile di oltre 1 miliardo di dollari e intende continuare a riacquistare proprie azioni ordinarie mediante acquisti pubblici, per un ammontare complessivo presunto di circa 450 milioni di dollari. Presentation of Non-GAAP Information This press release presents certain results with and without the impact of charges incurred during the third quarter of 2012 related to the impairment of goodwill and other assets, restructuring charges, accelerated tradename amortization, and the establishment of valuation allowances, net of tax benefits. This press release also presents certain results for 2011 and 2012 both with and without the impact of fluctuations in foreign currency exchange rates, and the impact of a tax refund in 2011. The presentation of results that excludes these items, as well as the presentation of free cash flow, are non-GAAP financial measures that should be considered in addition to, and should not be considered superior to, or as a substitute for, the presentation of results determined in accordance with GAAP. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables of financial information. Management believes that the non-GAAP financial measures enable management and investors to understand and analyze the company’s performance by providing meaningful information relevant to certain events and foreign currency fluctuations that impact the comparability of underlying business results from period to period. Management has adjusted for impairment of goodwill and other assets, which relates to the company’s European retail and catalog businesses, and accelerated tradename amortization, which relates to rebranding of the company’s Australian business, because such charges are non-cash and because the timing and amount of such charges are inconsistent and cannot be predicted or planned for. Management has adjusted for restructuring charges, which relate to severance and other costs associated with European restructuring and the planned closure of retail stores in the U.S., and the establishment of valuation allowances, which relates to previously recorded deferred tax assets in the company’s European retail and catalog businesses, because the exclusion of such amounts facilitates the comparison of the company’s financial results to its historical operating results. Management uses these non-GAAP financial measures to evaluate the operating results of the company’s business against prior year results and its operating plan, and to forecast and analyze future periods. Management recognizes there are limitations associated with the use of non-GAAP financial measures as they may reduce comparability with other companies that use different methods to calculate similar non-GAAP measures. Management generally compensates for the limitations resulting from the exclusion of these items by considering the impact of these items separately in GAAP as well as non-GAAP results. In addition, management presents the most comparable GAAP measures ahead of non-GAAP measures and provides a reconciliation that indicates and describes the adjustments made. Conference Call in data odierna In data odierna, alle ore 8:00 (ora della costa orientale) la società terrà una conference call per l’analisi dei risultati e delle prospettive. Gli investitori potranno ascoltare la conference call all’indirizzo http://investor.staples.com. Informazioni su Staples Staples è la maggiore azienda al mondo di prodotti per ufficio, nonché fornitrice di fiducia di soluzioni per ufficio. L’azienda fornisce prodotti, servizi e know-how nei seguenti campi: forniture per ufficio, copia e stampa, tecnologia, attrezzature e break room, arredamento. Staples ha inventato il concetto di “supermarket” di forniture per ufficio nel 1986 e oggi si colloca al secondo posto nella classifica mondiale delle vendite e-commerce, con un fatturato annuo di 25 miliardi di dollari USA. Grazie a 88.000 collaboratori in tutto il mondo, Staples opera in 26 paesi in Nord America, America Latina, Europa, Asia ed Australia, dove è apprezzata dai consumatori e da aziende di tutte le dimensioni. La sede centrale dell’azienda si trova a Boston. Per ulteriori informazioni su Staples (Nasdaq: SPLS) visitare il sito www.staples.com/media. Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995 including, but not limited to, the information set forth under “Outlook” and other statements regarding our future business and financial performance. Any statements contained in this news release that are not statements of historical fact should be considered forward-looking statements. You can identify these forward-looking statements by the use of the words “believes”, “expects”, “anticipates”, “plans”, “may”, “will”, “would”, “intends”, “estimates”, and other similar expressions, whether in the negative or affirmative. Forward-looking statements are based on a series of expectations, assumptions, estimates and projections which involve substantial uncertainty and risk, including the review of our assessments by our outside auditor and changes in management’s assumptions and projections. Actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including but not limited to: global economic conditions could adversely affect our business and financial performance; we face uncertainties in connection with the implementation of our strategies to transform our business; we have recognized substantial goodwill impairment charges in the current period and may be required to recognize additional goodwill impairment charges in the future; our market is highly competitive and we may not be able to continue to compete successfully; if the products and services that we offer fail to meet our customer needs, our performance could be adversely affected; we may be unable to continue to enter new markets successfully; our international operations expose us to risks inherent in foreign operations; failure to manage growth and our operations successfully could adversely affect our financial results; our effective tax rate may fluctuate; fluctuations in foreign exchange rates could lead to lower earnings; we may be unable to attract, train, engage and retain qualified associates; our quarterly operating results are subject to significant fluctuation; our indebtedness could adversely affect us by reducing our flexibility to respond to changing business and economic conditions; our expanded offering of proprietary branded products may not improve our financial performance and may expose us to intellectual property liability, product liability, import/export liability, government investigations and claims, and other risks associated with global sourcing; problems in our information systems and technologies may disrupt our operations; compromises of our information systems or unauthorized access to confidential information or our customers’ or associates’ personal information may materially harm our business or damage our reputation; our business may be adversely affected by the actions of and risks associated with third-party vendors and service providers; various legal proceedings may adversely affect our business and financial performance; failure to comply with laws, rules and regulations could negatively affect our business operations and financial performance; and those factors discussed or referenced in our most recent quarterly report on Form 10-Q filed with the SEC, under the heading “Risk Factors” and elsewhere, and any subsequent periodic or current reports filed by us with the SEC. In addition, any forward-looking statements represent our estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Seguono informazioni finanziarie. STAPLES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Dollar Amounts in Thousands, Except Share Data) (Unaudited) October 27, 2012 January 28, 2012 ASSETS Current assets: Cash and cash equivalents $ 1,020,043 $ 1,264,149 Receivables, net 1,892,390 2,033,680 Merchandise inventories, net 2,417,366 2,431,845 Deferred income tax assets 281,481 305,611 Prepaid expenses and other current assets 286,119 255,535 Current assets of discontinued operations 185,949 — Total current assets 6,083,348 6,290,820 Property and equipment: Land and buildings 1,009,754 1,034,983 Leasehold improvements 1,332,450 1,330,373 Equipment 2,526,041 2,462,351 Furniture and fixtures 1,100,325 1,084,358 Total property and equipment 5,968,570 5,912,065 Less: Accumulated depreciation 4,052,158 3,831,704 Net property and equipment 1,916,412 2,080,361 Intangible assets, net of accumulated amortization 395,504 449,781 Goodwill 3,169,260 3,982,130 Other assets 587,461 627,530 Total assets $ 12,151,985 $ 13,430,622 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2,170,422 $ 2,220,414 Accrued expenses and other current liabilities 1,326,441 1,414,721 Debt maturing within one year 119,046 439,143 Current liabilities of discontinued operations 143,911 — Total current liabilities 3,759,820 4,074,278 Long-term debt 1,541,786 1,599,037 Other long-term obligations 671,650 735,094 Stockholders’ equity: Preferred stock, $.01 par value, 5,000,000 shares authorized; no shares issued — — Common stock, $.0006 par value, 2,100,000,000 shares authorized; issued and outstanding 929,838,181 and 674,178,263 shares at October 27, 2012 and 922,126,579 shares and 695,743,547 shares at January 28, 2012, respectfully 558 553 Additional paid-in capital 4,661,932 4,551,299 Accumulated other comprehensive loss (380,313 ) (319,743 ) Retained earnings 6,688,614 7,199,060 Less: Treasury stock at cost, 255,659,918 shares at October 27, 2012 and 226,383,032 shares at January 28, 2012 (4,799,238 ) (4,416,018 ) Total Staples, Inc. stockholders’ equity 6,171,553 7,015,151 Noncontrolling interests 7,176 7,062 Total stockholders’ equity 6,178,729 7,022,213 Total liabilities and stockholders’ equity $ 12,151,985 $ 13,430,622 STAPLES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Amounts in Thousands, Except Per Share Data) (Unaudited) 13 Weeks Ended 39 Weeks Ended October 27,2012 October 29,2011 October 27,2012 October 29,2011 Sales $ 6,353,140 $ 6,481,023 $ 17,812,530 $ 18,290,446 Cost of goods sold and occupancy costs 4,601,286 4,660,041 13,040,678 13,319,460 Gross profit 1,751,854 1,820,982 4,771,852 4,970,986 Operating expenses: Selling, general and administrative 1,237,196 1,275,785 3,673,598 3,756,593 Impairment of goodwill and long-lived assets 810,996 — 810,996 — Restructuring charges 30,396 — 30,396 — Amortization of intangibles 30,413 15,957 60,466 49,443 Total operating expenses 2,109,001 1,291,742 4,575,456 3,806,036 Operating (loss) income (357,147 ) 529,240 196,396 1,164,950 Other (expense) income: Interest income 1,249 1,774 4,251 5,662 Interest expense (40,343 ) (40,906 ) (124,195 ) (131,422 ) Other expense (1,788 ) (3,676 ) (3,469 ) (4,228 ) (Loss) income from continuing operations before income taxes (398,029 ) 486,432 72,983 1,034,962 Income tax expense 170,703 162,712 323,780 331,155 (Loss) income from continuing operations, including the portion attributable to the noncontrolling interests (568,732 ) 323,720 (250,797 ) 703,807 Discontinued Operations: (Loss) income from discontinued operations, net of income taxes (27,559 ) 2,610 (38,084 ) (3,495 ) Consolidated net (loss) income (596,291 ) 326,330 (288,881 ) 700,312 Loss attributed to the noncontrolling interests (39 ) (50 ) (119 ) (751 ) (Loss) income attributed to Staples, Inc. $ (596,252 ) $ 326,380 $ (288,762 ) $ 701,063 Amounts attributable to Staples, Inc. (Loss) income from continuing operations $ (568,693 ) $ 323,770 $ (250,678 ) $ 704,558 (Loss) income from discontinued operations (27,559 ) 2,610 (38,084 ) (3,495 ) (Loss) income attributed to Staples, Inc. $ (596,252 ) $ 326,380 $ (288,762 ) $ 701,063 Basic Earnings Per Common Share: Continuing operations attributed to Staples, Inc. $ (0.85 ) $ 0.47 $ (0.37 ) $ 1.01 Discontinued operations attributed to Staples, Inc. (0.04 ) — (0.06 ) (0.01 ) Net (loss) income attributed to Staples, Inc. $ (0.89 ) $ 0.47 $ (0.43 ) $ 1.00 Diluted Earnings Per Common Share: Continuing operations attributed to Staples, Inc. $ (0.85 ) $ 0.46 $ (0.37 ) $ 1.00 Discontinued operations attributed to Staples, Inc. (0.04 ) 0.01 (0.06 ) (0.01 ) Net (loss) income attributed to Staples, Inc. $ (0.89 ) $ 0.47 $ (0.43 ) $ 0.99 Dividends declared per common share $ 0.11 $ 0.10 $ 0.33 $ 0.30 Condensed Consolidated Statements of Comprehensive Income 13 Weeks Ended 39 Weeks Ended October 27,2012 October 29,2011 October 27,2012 October 29,2011 Comprehensive (loss) income from continuing operations $ (437,206 ) $ 241,953 $ (310,544 ) $ 804,720 Comprehensive (loss) income from discontinued operations (24,438 ) 1,553 (38,674 ) (37 ) Comprehensive (loss) income from consolidated operations $ (461,644 ) $ 243,506 $ (349,218 ) $ 804,683 Comprehensive income (loss) attributed to noncontrolling interests 128 96 114 (399 ) Comprehensive (loss) income attributed to Staples, Inc. $ (461,772 ) $ 243,410 $ (349,332 ) $ 805,082 Weighted Average Shares Outstanding: Basis $ 666,989 $ 691,205 $ 673,366 $ 698,813 Diluted $ 666,989 $ 698,009 $ 673,366 $ 708,028 STAPLES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Dollar Amounts in Thousands) (Unaudited) 39 Weeks Ended October 27,2012 October 29,2011 Operating Activities: Consolidated net (loss) income, including loss from the noncontrolling interests $ (288,881 ) $ 700,312 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 301,840 311,190 Amortization of intangible assets 60,466 49,443 Impairment of goodwill and long-lived assets 810,996 — Stock-based compensation 90,406 117,072 Excess tax benefits from stock-based compensation arrangements (179 ) (1,023 ) Deferred income tax expense 68,915 127,328 Other (932 ) 19,828 Changes in assets and liabilities: Decrease (increase) in receivables 10,622 (118,920 ) Increase in merchandise inventories (40,094 ) (146,023 ) (Increase) decrease in prepaid expenses and other assets (65,109 ) 58,692 Increase in accounts payable 31,188 103,474 Decrease in accrued expenses and other liabilities (40,855 ) (133,249 ) (Decrease) increase in other long-term obligations (42,997 ) 7,508 Net cash provided by operating activities 895,386 1,095,632 Investing Activities: Acquisition of property and equipment (204,163 ) (243,740 ) Proceeds from the sale of property and equipment 9,500 — Acquisition of businesses, net of cash acquired (1,941 ) — Net cash used in investing activities (196,604 ) (243,740 ) Financing Activities: Proceeds from the exercise of stock options 26,039 32,989 Proceeds from borrowings 70,031 214,669 Payments on borrowings (423,303 ) (789,931 ) Purchase of noncontrolling interest (5,651 ) (3,591 ) Cash dividends paid (221,682 ) (209,604 ) Excess tax benefits from stock-based compensation arrangements 179 1,023 Purchase of treasury stock, net (383,220 ) (512,496 ) Net cash used in financing activities (937,607 ) (1,266,941 ) Effect of exchange rate changes on cash and cash equivalents (4,640 ) 14,156 Net decrease in cash and cash equivalents (243,465 ) (400,893 ) Cash and cash equivalents at beginning of period 1,264,149 1,461,257 Cash and cash equivalents at end of period $ 1,020,684 $ 1,060,364 Less: Cash and cash equivalents attributed to discontinued operations (641 ) — Cash and cash equivalents at the end of the period attributed to continuing operations $ 1,020,043 $ 1,060,364 STAPLES, INC. AND SUBSIDIARIES Segment Reporting (Dollar Amounts in Thousands) (Unaudited) 13 Weeks Ended 39 Weeks Ended October 27, 2012 October 29, 2011 October 27, 2012 October 29, 2011 Sales North American Delivery $ 2,609,034 $ 2,582,729 $ 7,576,860 $ 7,527,592 North American Retail 2,646,554 2,656,612 6,959,524 7,029,840 International Operations 1,097,552 1,241,682 3,276,146 3,733,014 Total segment sales $ 6,353,140 $ 6,481,023 $ 17,812,530 $ 18,290,446 Business Unit Income (Loss) North American Delivery $ 227,736 $ 244,997 $ 614,462 $ 646,612 North American Retail 285,477 284,204 540,846 564,425 International Operations (1,692 ) 35,641 (27,114 ) 70,985 Business unit income 511,521 564,842 1,128,194 1,282,022 Stock-based compensation (27,276 ) (35,602 ) (90,406 ) (117,072 ) Impairment of goodwill and long-lived assets (810,996 ) — (810,996 ) — Restructuring charges (30,396 ) — (30,396 ) — Interest and other expense, net (40,882 ) (42,808 ) (123,413 ) (129,988 ) (Loss) income from continuing operations before income taxes $ (398,029 ) $ 486,432 $ 72,983 $ 1,034,962 STAPLES, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Income Statement Disclosures (Dollar Amounts in Thousands, Except Per Share Data) (Unaudited) 13 Weeks Ended October 27, 2012 Adjustments As Reported Impairment ofGoodwill andLong-LivedAssets (1) RestructuringCharges (2) Acceleratedtrade-nameamortization (3) Non-GAAP Operating (loss) income $ (357,147 ) $ 810,996 $ 30,396 $ 15,599 $ 499,844 Interest and other expense, net (40,882 ) (40,882 ) (Loss) income from continuing operations before income taxes $ (398,029 ) $ 458,962 Income tax expense $ 170,703 $ 170,703 Adjustments (4) — (21,541 ) Adjusted income tax $ 170,703 $ 149,162 (Loss) income from continuing operations $ (568,732 ) $ 309,800 Loss attributed to the noncontrolling interests (39 ) (39 ) (Loss) income from continuing operations attributed to Staples, Inc. $ (568,693 ) $ 309,839 Effective Tax Rate (42.9 )% 32.5 % Per share (loss) income from continuing operations attributed to Staples, Inc: Basic and diluted earnings per common share $ (0.85 ) $ 0.46 Weighted average common shares outstanding 666,989 666,989 Effect of dilutive securities — 4,354 Weighted average common shares outstanding assuming dilution 666,989 671,343 (1) Consists of goodwill impairment charges of $468.1 million and $303.3 million related to the Company’s Europe Catalog and Europe Retail reporting units, respectively, and $39.5 million for the write-down of fixed assets primarily related to the planned closure and consolidation of certain operations.(2) Restructuring charges include $19.2 million for severance and benefits and $11.2 million of other associated costs related to the planned closure of 46 retail stores and the consolidation of certain sub-scale delivery businesses in Europe.(3) Relates to a strategic decision to transition from using the legacy Corporate Express tradename in the Company’s Australian business to the exclusive use of the Staples tradename.(4) The $21.5 million adjustment to income tax expense in 2012 relates to the establishment of valuation allowances for previously recorded deferred tax assets as a result of the planned closure and consolidation of certain operations in the Company’s Europe Retail and Europe Catalog reporting units, net of tax benefits related to the impairment and restructuring charges and accelerated tradename amortization. STAPLES, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Income Statement Disclosures (Dollar Amounts in Thousands, Except Per Share Data) (Unaudited) 52 Weeks Ended January 28, 2012 As revised to presentdiscontinuedoperations Adjustments Non-GAAP Income from continuing operations before income taxes $ 1,464,644 $ — $ 1,464,644 Income tax expense 477,247 20,800 498,047 Income (loss) from continuing operations, including the portion attributable to the noncontrolling interests 987,397 (20,800 ) 966,597 Discontinued Operations: — Loss from discontinued operations, net of tax benefit (3,564 ) — (3,564 ) Consolidated net income (loss) 983,833 (20,800 ) 963,033 Loss attributed to the noncontrolling interests (823 ) — (823 ) Net income (loss) attributed to Staples, Inc. $ 984,656 $ (20,800 ) $ 963,856 Amounts attributable to Staples, Inc. Income (loss) from continuing operations $ 988,220 $ (20,800 ) $ 967,420 Loss from discontinued operations (3,564 ) (3,564 ) Net income (loss) attributed to Staples, Inc. $ 984,656 $ (20,800 ) $ 963,856 Diluted Earnings Per Common Share: Continuing operations attributed to Staples, Inc. $ 1.40 $ (0.03 ) $ 1.37 Discontinued operations attributed to Staples, Inc. — — — Net (loss) income attributed to Staples, Inc. $ 1.40 $ (0.03 ) $ 1.37 Number of shares used in computing earnings per share 704,019 STAPLES, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Sales Growth (Dollar Amounts in Thousands) (Unaudited) 13 Weeks Ended October 27, 2012 Sales Growth GAAP Impact of LocalCurrency Sales Growth on aLocal Currency Basis Sales: North American Delivery 1.0 % (0.1 )% 0.9 % North American Retail (0.4 )% (0.3 )% (0.7 )% International Operations (11.6 )% 4.0 % (7.6 )% Total sales (2.0 )% 0.6 % (1.4 )% 39 Weeks Ended October 27, 2012 Sales Growth GAAP Impact of LocalCurrency Sales Growth on aLocal Currency Basis Sales: North American Delivery 0.7 % 0.1 % 0.8 % North American Retail (1.0 )% 0.4 % (0.6 )% International Operations (12.2 )% 5.0 % (7.2 )% Total sales (2.6 )% 1.2 % (1.4 )% This presentation refers to growth rates in local currency so that business results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Staples’ business performance. To present this information, current period results for entities reporting in currencies other than U.S. dollars are converted into U.S. dollars at the prior year average monthly exchange rates. STAPLES, INC. AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Income Statement Disclosures (Dollar Amounts in Thousands) (Unaudited) 39 Weeks Ended October 27, 2012 October 29, 2011 Net cash provided by operating activities $ 895,386 $ 1,095,632 Acquisition of property and equipment (204,163 ) (243,740 ) Free cash flow $ 691,223 $ 851,892 Free cash flow is not defined under U.S. GAAP. Therefore, it should not be considered a substitute for income or cash flow data prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. The company defines free cash flow as net cash provided by operating activities less capital expenditures. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. The company believes free cash flow is a useful measure of performance and uses this measure as an indication of the company’s ability to generate cash and invest in its business.
Staples, Inc.Media Contact:Kirk Saville/Owen Davis, 508-253-8530/8468orInvestor Contact:Chris Powers/Kevin Barry, 508-253-4632/1487
