OfficeMax income beats expectations
NAPERVILLE, Ill. — OfficeMax reported net income of $10.7 million for the second quarter, besting Wall Street predictions and representing a strong turnaround from last year’s $3 million loss stemming from store closures and severance expenses.
Revenue for the quarter slipped 2.7% to $1.6 billion, missing analysts’ forecasted $1.64 billion in revenue. The office supply retailer said it will reinstate its quarterly common stock dividend, which it suspended more than three years ago.
Based on the current environment, OfficeMax anticipates that total company sales for the third quarter will be approximately flat, to slightly higher than, the third quarter of 2011, including the projected unfavorable impact of foreign currency translation. Additionally, OfficeMax anticipates that for the third quarter of 2012, adjusted operating income margin will be approximately in line with the 2.3% for the prior year period.
For the full year 2012, OfficeMax anticipates that total company sales will be approximately in line with the prior year, including the projected unfavorable impact of foreign currency translation in 2012 and excluding the additional week in 2011, which generated $86 million in sales. For the full year 2012, OfficeMax anticipates that adjusted operating income margin will be approximately in line with, to slightly higher than, the 1.7% for the prior year.
"We have continued to streamline and contain costs in a challenging economic environment, which puts us in a better position to take steps to address our capital structure," said Bruce Besanko, EVP, CFO and chief administrative officer of OfficeMax. "We are also continuing to explore ways to simplify our balance sheet and to leverage the value of our operating and non-operating assets."
Poor comps, expenses widen loss at Hhgregg
INDIANAPOLIS — Hhgregg’s first quarter loss widened to $5.7 million, or 16 cents per diluted share, from a loss of $0.8 million, or 2 cents per diluted share, for the comparable prior year period, thanks to same-store sales decline of 5.1% and increased expenses.
Dennis May, president and CEO commented, “As we announced in our pre-release, our first fiscal quarter proved to be more challenging than anticipated with sales and earnings coming in below our original expectations. We reacted to the sales shortfall by making adjustments to our cost structure. We expect subsequent quarters to benefit from our cost cutting measures. We are looking at new ways to enhance our store sales productivity through the testing of new products and merchandise that leverage our consultative sales force, delivery and installation network and private label consumer credit card offering. During the company’s 57 year history, we have been successful in adapting our business to fit the changing needs of consumers, and remain confident in our ability to navigate through this difficult cycle.”
Net sales for the quarter increased 13.5% to $489.9 million compared with $431.5 million in the comparable prior year period. The increase in net sales for the three months ended June 30, 2012 was attributable to the net addition of 30 stores during the past 12 months partially offset by a comparable-store sales decrease of 5.1%.
The decrease in comparable-store sales for the three month period ended June 30 was driven primarily by a decrease in revenues in the video and other categories, partially offset by increases in revenues in the appliance and computing and mobile phones categories.
The company expects fiscal 2013 net income to range between 90 cents and $1.05 for fiscal 2013. Comparable-store sales are expected to increase 3% to 6% for the year.
Social marketing firm names new leadership
WASHINGTON, D.C. — NewBrandAnalytics , a global leader in social market intelligence, has appointed two celebrated names in the world of business service software – Kristin Muhlner and Barton Phillips.
Muhlner was named CEO and was appointed to the company’s board of directors to serve alongside investment giants, New Enterprise Associates (NEA) and Revolution LLC. Muhlner brings to NewBrandAnalytics 20 years of expertise in building mission critical technology solutions used by Fortune 500 companies.
In her previous role as CEO of RollStream, the leading provider of enterprise community management solutions, Muhlner spearheaded the growth of the company and its SaaS product, paving the way for RollStream’s successful acquisition by GXS. Before joining RollStream, Kristin served as EVP product development for WebMethods (acquired by Software AG), where she led the development and ongoing evolution of the company’s highly acclaimed software products. Prior, Kristin served as Senior Manager at Deloitte and Touche Consulting, where she led ERP implementation projects for key clients across North America. She holds a B.A. in economics from Rhodes College.
Phillips has joined the organization as EVP sales, and will drive the company’s sales and business development efforts worldwide.
Most recently, Phillips was area VP sales with Salesforce.com, a $2+ billion leader in cloud computing, where he was responsible for public sector sales in the United States. Prior, Phillips was a director of CRM Sales with Oracle and held leadership positions with Siebel Systems and American Management Systems. Phillips holds a B.S. degree from James Madison University and an M.S. degree from Carnegie Melon University.