Staples 2003 Annual Report Download - page 51

APPENDIX A
STAPLES, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollar Amounts in Thousands, Except Per Share Amounts)
Fiscal Year Ended
February 1, February 2, February 3, January 29, January 30,
2003(1) 2002(2) 2001(3) 2000 1999(4)
(52 weeks) (52 weeks) (53 weeks) (52 weeks) (52 weeks)
Statement of Income Data:
Sales ...................................... $11,596,075 $10,744,373 $10,673,671 $8,936,809 $7,123,189
Gross profit ................................. 2,943,482 2,570,493 2,576,505 2,215,246 1,726,266
Net income ................................. 446,100 264,970 59,712 314,988 185,370
Basic earnings/(loss) per common share(5):
Staples, Inc. Stock .......................... 0.96 0.40 — 0.42 0.43
Staples RD Stock .......................... — 0.18 0.16 0.26 —
Staples.com Stock .......................... — 0.01 (0.84) (0.09) —
Diluted earnings/(loss) per common share(5):
Staples, Inc. Stock .......................... 0.94 0.40 — 0.41 0.41
Staples RD Stock .......................... — 0.17 0.15 0.26 —
Staples.com Stock .......................... — 0.01 (0.84) (0.09) —
Dividends ................................... — — — — —
Selected Operating Data (at period end):
Stores open .............................. 1,488 1,436 1,307 1,129 913
Balance Sheet Data:
Working capital ............................ $ 542,150 $ 807,128 $ 644,832 $ 738,547 $ 798,768
Total assets ............................... 5,721,388 4,093,035 3,983,923 3,846,076 3,179,266
Total long-term debt, less current portion .......... 732,041 350,225 441,257 500,903 205,015
Stockholders’ equity ......................... $2,658,892 $ 2,054,174 $ 1,749,424 $1,828,813 $1,656,886
(1) Results of operations for this period include a tax benefit of $29.0 million related to Staples Communications. In fiscal 2000, the
Company recognized an impairment loss related to the goodwill and fixed assets of Staples Communications, which was not
recorded as a deduction for tax purposes. In 2002, the Company received approval from the Internal Revenue Service to take an
ordinary deduction for the Company’s investment in, and advances to, Staples Communication (see Note I).
(2) Results of operations for this period include a store closure charge of $50.1 million ($30.8 million after taxes) related to the
closing of 31 underperforming stores (see Note D), a $7.4 million ($4.6 million after taxes) charge to gross profit related to
inventory write-downs to net realizable value for the closing stores and $10.7 million ($6.6 million after taxes) in other charges
related to workforce reductions and distribution and call center closures (see Note C).
(3) Results of operations for this period include $205.8 million of asset impairment and other charges related to the impairment of
goodwill and fixed assets associated with Staples Communications and the write-down of investment values in various
e-commerce companies (see Note C). These results also include a $7.3 million ($4.3 million after taxes) store closure credit (see
Note D).
(4) Results of operations for this period include a $41.0 million ($24.8 million after taxes) charge relating to costs incurred in
connection with the merger with Quill Corporation (‘‘Quill’’) and a $49.7 million ($30.1 million after taxes) charge relating to
store closure costs.
On May 21, 1998, the Company acquired Quill. This transaction has been accounted for using the pooling of interests method. As
a result, the financial information shown above has been restated to include the accounts and results of operations of Quill for all
periods prior to the merger.
(5) From the fourth quarter of fiscal year ending January 29, 2000 through the second quarter of fiscal year ending February 2, 2002,
historical earnings per share is omitted for Staples Inc. as a result of the approval of the Tracking Stock Proposal which changed
Staples’ capital structure by creating Staples.com Stock and reclassifying Staples, Inc. common stock (‘‘Staples, Inc. Stock’’) as
Staples RD Stock (see Note L). Staples.com’s net loss per share has also been retroactively restated to reflect the effect of a
recapitalization through a one-for-two reverse stock split approved by the Board on March 7, 2000 and effected on April 5, 2000.
The Company’s fiscal year is the 52 or 53 weeks ending the Saturday closest to January 31.
All earnings per share data has been restated to give retroactive effect to the three-for-two split of the Company’s
common stock effected in January 1999.
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