Michael Sacks has been named senior vice president of operations for Hearst Newspapers. The announcement was made by Hearst Newspapers President Mark Aldam and Houston Chronicle President and Publisher John McKeon. Sacks begins his new position immediately and will report to Aldam. “Mike’s leadership at Hearst’s Texas properties over the last four years has proved invaluable to the growth and strength of those newspapers,” Aldam said. “His experience bringing process improvements and data-driven discipline to operational strategies make him an excellent addition to the senior leadership team.” click Read More below for additional detail
Third Quarter 2018 Highlights
• Reported Sales of $2.9 Billion, Up 10%
• Business Solutions Division (BSD) Sales Up 6%; Up 1% Organically
• Service Revenues up 28% in BSD and up 11% in Retail Division(1)
• Retail sales down 6%; down 5% adjusted for new revenue recognition standard
• Operating Income of $105 Million Flat versus Prior Year, despite Disappointing Performance at CompuCom
• Operating Cash Flow of $304 Million; $555 Million Year-to-Date
• Free Cash Flow of $257 Million; $434 Million Year-to-Date
• Ending Cash Balance of $925 Million
• Raising 2018 Guidance and Issuing Guidance for 2019
“We’re making excellent progress on our strategy and we have again delivered strong top line growth and generated significant free cash flow,” said Gerry Smith, chief executive officer of Office Depot. “A primary focus during this phase of our transformation is to recapture top-line sales growth and strengthen our core, and I’m pleased to report that our Business Solutions Division delivered their best quarter in over a decade, with sales up 6% in total including recent acquisitions, and most importantly, up 1% organically. The investments that we are making in building our services capabilities are also continuing to pay off as service revenues again grew double digits in both our BSD and Retail divisions. Overall, we are making great progress on our transformation and remain confident that we have the right strategy in place to drive sustainable, profitable growth in the future.”
Total reported sales for the third quarter 2018 were $2.9 billion compared to $2.6 billion in the third quarter of 2017, an increase of 10.2%. Product sales in the third quarter were up 1.1%, while service revenues grew 123.7%, driven primarily by the service revenues contributed by the CompuCom acquisition. Service revenue excluding the CompuCom division and revenue recognition impacts, grew 17% in the third quarter. On a reported basis, services revenue represented approximately 15% of total Company sales, up from 7% of total Company sales in the prior year.
In the third quarter 2018, Office Depot reported operating income of $105 million, flat with the prior year period. Net income from continuing operations was $60 million, or $0.11 per share, compared to $98 million and $0.19 per share in the third quarter of 2017. The third quarter 2017 net income results included a benefit from a deferred tax asset positively impacting the prior year periods results. This benefit, along with higher net interest expense associated with the CompuCom acquisition, were the primary drivers of the decrease in net income year-over-year.
For the year-to-date 2018 period, Office Depot reported operating income of $230 million compared to an operating income of $272 million for year-to-date 2017. Net income from continuing operations for year-to-date 2018 was $113 million, or $0.20 per share, compared to net income from continuing operations of $195 million, or $0.37 per diluted share, for year-to-date 2017.
more detail at: http://investor.officedepot.com/phoenix.zhtml?c=94746&p=irol-newsArticle&ID=2375792