Select Preliminary Unaudited Fourth Quarter 2017 Highlights • Gross revenue is expected to be between $303 million and $308 million in the fourth quarter, an increase of 12 to 14% compared with $270.4 million in the fourth quarter of 2016. • Gross profit (net revenue) is expected to be between $74 million and $75 million in the fourth quarter, an increase of 8 to 9% compared to $68.7 million in the same period of 2016. Select Preliminary Unaudited Full Year 2017 and Recent Highlights • Gross revenue is expected to be between $1,138 million and $1,143 million in 2017, an increase of 4 to 5% compared with $1,090.7 million in 2016. • Gross profit (net revenue) is expected to be between $281 million and $282 million, a 7% increase compared to $263.5 million in 2016. Click Read More below for additional information.
For the fourteen weeks ended February 3, 2018 ("the fourth quarter"), the Company reported net income of $28.0 million, or $0.22 per diluted share, compared to net income of $13.5 million, or $0.10 per diluted share, for the thirteen weeks ended January 28, 2017 ("last year's fourth quarter"). For the fourth quarter, gross margin was $221.6 million, or 37.7% of net sales, compared to $213.4 million, or 35.5% of net sales, in last year's fourth quarter. This 220 basis point increase primarily reflects a 170 basis point improvement in merchandise margin driven by lower average unit costs and a reduction in store occupancy costs. Click Read More below for additional information.
Total reported sales for the fourth quarter of 2017 were $2.6 billion compared to $2.7 billion in the fourth quarter of 2016, a decrease of 5%. Sales for the full year 2017 were $10.2 billion, a decline of 7% compared to the prior year. Fourth quarter and full year 2016 results benefited from an additional 53rd week sales of approximately $143 million and have been removed from our adjusted sales change below. In the fourth quarter of 2017, Office Depot reported operating income of $59 million. The Company recognized a net loss from continuing operations in the fourth quarter of 2017 of $48 million, or $0.09 per diluted share, resulting from a net tax expense of approximately $68 million associated with changes to the Company’s U.S. deferred tax assets and tax valuation allowance due to recent tax law reform. Click Read More below for additional information.
Net sales in the quarter were $1.93 billion, up $66.9 million or 3.6% from the fourth quarter of 2016. On an organic basis, consolidated net sales increased 2.6% driven by significant volume growth in the International segment. Gross profit in the fourth quarter of 2017 was $365.0 million or 19.0% of net sales versus $363.7 million or 19.6% of net sales in the prior year quarter. Income from operations was $104.6 million in the fourth quarter compared to a loss from operations of $466.9 million in the 2016 quarter. Net loss attributable to common stockholders from continuing operations of $52.8 million in the fourth quarter compared to a net loss of $488.6 million in the fourth quarter of 2016.
Total boxboard production decreased 0.8 percent when compared to January 2017 and decreased 1.2 percent from last month. Unbleached Kraft Boxboard production increased over the same month a year ago and was flat compared to last month. Total Solid Bleached Boxboard & Liner production decreased when compared to January 2017 and decreased compared to last month. The production of Recycled Boxboard decreased compared to January 2017, but increased when compared to last month.
Futures in New York were little changed, putting them on course for a 2.8 percent drop in February. An industry report was said to show U.S. oil inventories rose last week, which would be the fourth expansion in five weeks if confirmed in government data. The head of OPEC plans to dine with shale producers in Houston next week at a time when America is pumping at record levels and threatening the group’s efforts to curb a global glut. U.S. crude output is forecast to rise to a record level in February, stoking fears that shale producers may derail OPEC’s strategy of reducing output to clear a global glut. The producer group’s Secretary General Mohammad Barkindo said he will meet with U.S. shale company executives for dinner on Monday in Houston, the second time he has met with some of the cartel’s top rivals.
Forest Products Association of Canada (FPAC) sees some encouraging opportunities for Canada’s forest products sector in today’s federal budget including measures to support our transition to a low carbon economy, skills training, and expanding trade. In the budget tabled by Finance Minister Bill Morneau entitled “Equality & Growth a Strong Middle Class”, he earmarked: * Over $2 billion to support skills training to help build a workforce for the future * Commitment to protect and expand markets * Over $3 billion for environmental initiatives to help address climate change, support conservation and move to a low-carbon economy. “Budget 2018 sends some positive signals that support the forest sector’s priorities, with investments to build capacity to address climate change, skills training to build a workforce for the future, and supports the further diversification of our export markets,” said FPAC CEO Derek Nighbor. Click Read More below for additional information.
A few quick conversations with employees will confirm for anyone how these awards were earned at Huhtamaki. For all those who work to supply Walmart with the items they need for stores across the country, they all say the same thing — “It’s not just me.” Everyone including the employees who make the product, sales management and commercialization, product managers, finance professionals, operations managers, and the logistics team are excited to make sure that high quality product reaches its destination on time. Click Read More below for additional information.
Kotkamills Oy will launch the AEGLE™ Barrier Light in the show. AEGLE™ Barrier Light is an ideal packaging material, for example, for the needs of large fast-food chains. The products are also suited for short-term packaging of other greasy food-to-go products where a barrier is required. You are welcome to meet our sales representatives to learn more about our solutions for the packaging and food service industries, including the development of innovative, easily recyclable, barrier coated products. Click Read More below for additional information.
Sappi North America has joined on as a new funding partner of The Recycling Partnership, a national nonprofit that applies corporate funding to improve recycling efforts in communities across the country. In doing so, the company will be working to help transform recycling nationwide, increase materials recovery, and reduce the creation of greenhouse gases that add to climate change. Currently, still less than half of recyclables in U.S. homes are getting captured; just 22 million tons out of an available 46 million tons are recycled every year1. While the funding and management of recycling systems has fallen on the shoulders of cities and towns across the country, now, through The Recycling Partnership, nearly 40 companies, including Sappi are committing financial resources to work with the nonprofit and local governments to improve recycling systems. Click Read More below for additional information.