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Combined Office Depot, OfficeMax Sales Slip Slightly In Q3

For the third quarter ended September 27, Office Depot, Inc. has reported adjusted net income of $52 million, or 10 cents per share, versus combined pro forma adjusted net income of $27 million, or five cents per share, in the third quarter of 2013. Unadjusted net income available to common stockholders, which included the gain on sale of the Office Depot de Mexico joint venture, was $133 million, or 41 cents per diluted share.

The 10 cents per share of adjusted net income beat a Thomson Reuters average analyst estimate by a penny.

in the 2014 third quarter, GAAP operating income was $49 million versus a $52 million loss in the year-prior period. Non GAAP operating income was $126 million versus $62 million in the 2013 third quarter.

Office Depot reported total sales of $4.1 billion versus $2.6 billion in the third quarter of 2013. Total sales include OfficeMax revenues in 2014, and were 3% lower than combined pro forma sales of $4.2 billion last year’s period before the merger and consolidation of the two businesses.

North American Retail Division sales were $1.7 billion versus $1.1 billion in the prior year quarter, reflecting the inclusion of OfficeMax sales in the period, Office Depot related. On a combined pro forma basis, third quarter 2014 sales slid by 7%, hit by store closures in the fiscal twelve months through September 27. Comparable store sales declined 3% versus last year, primarily due to lower transaction counts, Office Depot maintained.

“Our third quarter results reflect excellence in execution against our critical priorities and merger integration objectives, and we are very pleased to have more than doubled our adjusted operating income from last year’s combined pro forma results,” said Roland Smith, chairman and CEO for Office Depot, in announcing the financial results. “We continue to make significant progress on merger integration and have exceeded our synergy targets for the quarter. Accordingly, we are raising our 2014 outlook for adjusted operating income to a range of $255 million to $265 million, which is more than 150% higher than pro forma 2013. Looking ahead, our preliminary estimate for 2015 adjusted operating income is approximately $475 million, which is an 80% increase from our 2014 outlook.”