Staples 2003 Annual Report Download - page 95

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STAPLES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE O Quarterly Summary (Unaudited)
(In thousands, except per share amounts)
First Second Third Fourth
Quarter(1) Quarter(2) Quarter(2) Quarter(2)
Fiscal Year Ended February 1, 2003
Sales .......................................... $2,744,766 $2,426,475 $3,089,725 $3,335,109
Gross Profit ..................................... 659,918 597,962 802,814 882,788
Net income ...................................... 93,869 59,555 128,018 164,658
Basic earnings per common share ...................... $ 0.20 $ 0.13 $ 0.27 $ 0.35
Diluted earnings per share ........................... $ 0.20 $ 0.13 $ 0.27 $ 0.35
First Second Third Fourth
Quarter Quarter Quarter Quarter(3)
Fiscal Year Ended February 2, 2002
Sales .......................................... $2,667,076 $2,314,229 $2,833,861 $2,929,207
Gross Profit ..................................... 616,607 549,730 687,137 717,019
Net income ...................................... 39,507 40,353 91,312 93,798
Net income attributed to Staples, Inc. Stock .............. 91,312 93,798
Net income attributed to Staples RD Stock ............... 39,683 40,057
Net income (loss) attributed to Staples.com Stock .......... (176) 296
Basic earnings (loss) per common share(4):
Staples, Inc. Stock ............................... $ 0.20 $ 0.20
Staples RD Stock ................................ $ 0.09 $ 0.09
Staples.com Stock ............................... $ (0.02) $ 0.04
Diluted earnings (loss) per share(4):
Staples, Inc. Stock ............................... $ 0.20 $ 0.20
Staples RD Stock ................................ $ 0.09 $ 0.09
Staples.com Stock ............................... $ (0.02) $ 0.03
(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 the results of Medical Arts Press since its acquisition on July 17, 2002
and the result of the European mail order businesses since their acquisition on October 18, 2002 (see Note B).
(3) 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 center and call center closures (see
Note C).
(4) Historical earnings per share is omitted for the third and fourth quarter of fiscal year 2001 for Staples RD Stock and
Staples.com Stock as a result of the approval of the Recapitalization (see Note L).
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