NAPERVILLE, Ill., Nov. 6 /PRNewswire/ -- OfficeMax(R) Incorporated
(NYSE: OMX) today announced the results for its third quarter ended September
27, 2008. Total sales decreased 9.5% in the third quarter of 2008 to $2.1
billion compared to the third quarter of 2007. For the third quarter of 2008,
OfficeMax reported a net loss of $432.7 million, or $5.70 per diluted share.
The third quarter of 2008 included a non-cash charge of $735.8 million
(pre-tax) for impairment of the Lehman Brothers Holdings Inc. ("Lehman")
guaranteed installment note (the "Lehman Note") and a pre-tax charge of $18.2
million for impairment of the interest receivable related to the Lehman Note,
neither of which is considered indicative of core operating activities.
Excluding these two items, adjusted net income was $28.0 million, or $0.36 per
diluted share. This compares to net income of $49.0 million, or $0.64 per
diluted share in the third quarter of 2007. Adjusted income and earnings per
share are non-GAAP financial measures that exclude the effect of large and
unusual impairment charges. A reconciliation to the company's GAAP financial
results is included in this press release.
Sam Duncan, Chairman and CEO of OfficeMax, said, "In the third quarter, we
operated in a weaker selling environment than in the third quarter of 2007 for
both our Contract and Retail segments. The challenging environment, along
with our more disciplined approach to customer acquisition and retention in
Contract as well as promotional strategies that are focused on preserving
gross margin in Retail are reflected in our results. Nonetheless, our success
in continuing to lower expenses was offset by reduced sales volumes that
deleveraged fixed costs in both the Contract and Retail segments, resulting in
lower profitability. While we recorded a non-cash impairment charge related
to one-half of our timber installment notes, we continue to believe that there
will be no adverse impact on our operations or liquidity from the Lehman
bankruptcy. Our cash flow from operations and access to capital remain solid
and, we believe, will help us continue to pursue our turnaround plan
initiatives during the challenging economic environment."
Contract Segment Results
OfficeMax Contract segment sales decreased 11.5% to $1.05 billion in the
third quarter of 2008 compared to the third quarter of 2007, reflecting a U.S.
Contract operations sales decline of 14.6%, and an International Contract
operations sales decline of 3.1% in U.S. dollars (a sales decrease of 3.5% in
local currencies). U.S. Contract sales declined compared to the prior year
period primarily due to weaker sales from existing corporate accounts, our
continued discipline in large corporate account acquisition and retention, and
lower sales from small market customers.
Contract segment gross margin decreased to 21.8% in the third quarter of
2008 from 22.1% in the third quarter of 2007, primarily due to deleveraging of
fixed delivery and occupancy costs from lower sales, partially offset by
improved account profitability. Contract segment operating expense as a
percentage of sales increased to 18.4% in the third quarter of 2008 from 17.5%
in the third quarter of 2007, primarily due to deleveraging of fixed operating
and allocated general and administrative expenses from lower sales, partially
offset by targeted cost controls including reduced selling expenses. For the
third quarter of 2008, the Contract segment generated operating income of
$35.5 million, or 3.4% of sales, compared to operating income of $55.0
million, or 4.6% of sales, in the third quarter of 2007.
Retail Segment Results
OfficeMax Retail segment sales decreased 7.3% to $1.05 billion in the
third quarter of 2008 compared to the third quarter of 2007, reflecting a
same-store sales decrease of 11.1% partially offset by sales from new stores.
Retail same-store sales for the third quarter of 2008 declined across all
major product categories due to weaker small business and consumer spending.
Retail segment gross margin decreased to 28.5% in the third quarter of
2008 from 28.9% in the third quarter of 2007, primarily due to deleveraging of
fixed occupancy costs from the same-store sales decrease and new stores,
partially offset by improved merchandise margins and a sales mix shift to an
increased percentage of higher-margin office supplies category sales. Retail
segment operating expense as a percentage of sales increased to 25.7% in the
third quarter of 2008 from 24.9% in the third quarter of 2007, primarily due
to deleveraging of expenses from the same-store sales decrease and the
addition of new stores, partially offset by targeted cost controls, reduced
store payroll expense due in part to our recent reorganization and lower
levels of incentive compensation expense. For the third quarter of 2008, the
Retail segment generated operating income of $29.1 million, or 2.8% of sales,
compared to operating income of $45.3 million, or 4.0% of sales, in the third
quarter of 2007.
During the third quarter of 2008, OfficeMax opened 17 retail stores in the
U.S. and 5 retail stores in Mexico. OfficeMax ended the third quarter of 2008
with a total of 1,019 retail stores, consisting of 936 retail stores in the
U.S. and 83 retail stores in Mexico.
Corporate and Other Segment Results
During the third quarter of 2008, the Corporate and Other segment was
impacted by a $735.8 million pre-tax non-cash charge related to the impairment
of the Lehman Note. Including this item, operating expenses increased to
$746.1 million from $10.0 million in the third quarter of 2007. Excluding
this charge, Corporate and Other segment adjusted operating expenses totaled
$10.3 million in the third quarter of 2008, consistent with the prior year,
and included support staff services and certain other expenses that are not
fully allocated to the Retail and Contract segments.
As previously disclosed, Lehman's bankruptcy filing on September 15, 2008
constituted an event of default under the $817.5 million Lehman Note that
OfficeMax received in connection with the 2004 timberlands sale. The company
is required for accounting purposes to assess the carrying value of assets
whenever circumstances indicate that a decline in value may have occurred.
Accordingly, due to the uncertainty of collection of the Lehman Note as a
result of the Lehman bankruptcy, OfficeMax has deemed the carrying value of
the Lehman Note impaired and has recorded a pre-tax non-cash impairment charge
of $735.8 million in the third quarter of 2008.
As previously disclosed, in 2004 OfficeMax monetized the Lehman Note
through the issuance of securitization notes (the "Securitization Notes") by
its bankruptcy-remote special purpose entity. For accounting purposes, the
company is required to decouple the long-term liability related to the
Securitization Notes from the Lehman Note, even though recourse on the
Securitization Notes is limited to the Lehman guaranty and the Lehman Note as
collateral. Specifically, irrespective of the impairment of the Lehman Note,
the company is not permitted to reduce the amount of the liability associated
with the Securitization Notes until settlement occurs when the Lehman Note is
delivered to and accepted by the Securitization Note holders in satisfaction
of the underlying obligation. The result is that the current period non-cash
impairment charge is expected to be followed by a corresponding non-cash gain
in a later period when the liability is extinguished.
Although recognition of the non-cash impairment charge and offsetting gain
on extinguishment of debt will occur in separate accounting periods, as a
result of the limited recourse nature of the liability associated with the
Securitization Notes, the maximum economic loss to the company when the
liability is extinguished is expected to be $82.5 million, which is the
difference between the $817.5 million principal amount of the Lehman Note and
the $735 million principal amount of the Securitization Notes.
As of September 27, 2008, OfficeMax had total debt of $374.0 million,
excluding $1.470 billion of timber securitization notes, which have recourse
limited to the timber installment notes receivable and related guarantees. As
previously announced, OfficeMax believes the cash exposure from the Lehman
bankruptcy will not exceed approximately $50 million for an accelerated tax
payment related to one-half of the gain on the 2004 timberlands sale
transaction, and a loss of approximately $1 million related to the excess
interest income previously expected to be received on the Lehman Note over the
interest expense previously expected to be paid on the Securitization Notes.
OfficeMax continues to believe that the cash impact will be funded adequately
by OfficeMax's available excess cash and, if necessary, funds available under
its credit facility. At September 27, 2008, OfficeMax had $171 million in
available and invested cash, and $602 million in available (unused) borrowing
capacity under its $700 million revolving credit facility. The company's
unused borrowing capacity reflects an available borrowing base of $669
million, no outstanding borrowings, and $67 million of letters of credit
issued under the revolving credit facility as of September 27, 2008.
During the third quarter of 2008, OfficeMax generated $112.1 million of
cash from operations reflecting active and effective working capital
management. This is an increase of $122.8 million from the third quarter of
2007 primarily due to the termination of the company's accounts receivable
securitization program in the prior year period. OfficeMax invested $36.1
million for capital expenditures in the third quarter of 2008 compared to
$41.9 million in the third quarter of 2007. Based on the company's evaluation
of capital projects for the remainder of 2008, OfficeMax now expects capital
expenditures for full year 2008 to be in the range of $140 million to $160
million.
Given the expected weak economic outlook, OfficeMax is cautious in its
expectations about performance for the fourth quarter of 2008. The company
expects significant sales declines as a result of both the existing difficult
economic environment and a weaker 2008 holiday selling season than last year.
In addition, the company will be cycling significant expense reductions it
began generating in the fourth quarter of 2007. As a result of these factors,
and based on the current outlook, OfficeMax expects increased deleveraging of
costs and expenses in the fourth quarter of 2008 compared to the first nine
months of the year.
Mr. Duncan concluded, "Sales in both our Contract and Retail segments in
October trended in the negative low-double-digit range and we anticipate
negative sales trends will continue through the remainder of the year.
Despite the challenging economic environment, we remain focused on initiatives
integral to our turnaround plan that are strengthening our business. Further,
while we are committed to managing OfficeMax for the long-term and positioning
the Company for growth when the economic environment improves, in the near
term we are placing a premium on maintaining strong cash flow through
conservative working capital management."
Forward-Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the company constitute "forward-looking
statements" within the meaning of the federal securities laws, including
statements regarding the company's future performance, as well as management's
expectations, beliefs, intentions, plans, estimates or projections relating to
the future. Management believes that these forward-looking statements are
reasonable. However, the company cannot guarantee that the impact of the
Lehman bankruptcy on the company will be limited to the amounts described in
the release, that future events will not impact the company's access to cash
or the funds available under its revolving credit facility, it will
successfully execute its turnaround plans, or that its actual results will be
consistent with the forward-looking statements and you should not place undue
reliance on them. These statements are based on current expectations and speak
only as of the date they are made. The company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result
of future events, new information or otherwise. Important factors regarding
the company which may cause results to differ from expectations are included
in the company's Annual Report on Form 10-K for the year ended December 29,
2007, under Item 1A "Risk Factors", and in the company's other filings with
the SEC.
Conference Call Information
OfficeMax will host a conference call with analysts and investors to
discuss its third quarter 2008 financial results today at 9:00 a.m. Eastern
Time (8:00 a.m. Central Time). To participate in the conference call, dial
(800) 374-0165; international callers should dial (706) 634-0995. An audio
webcast of the conference call can be accessed via the Internet by visiting
the Investors section of the OfficeMax website at
http://investor.officemax.com. The webcast will be archived and available
online for one year following the call and will be posted on the
"Presentations" page located within the Investors section of the OfficeMax
website.
About OfficeMax
OfficeMax Incorporated (NYSE: OMX) is a leader in both business-to-
business office products solutions and retail office products. The OfficeMax
mission is simple. We help our customers do their best work. The company
provides office supplies and paper, in-store print and document services
through OfficeMax ImPress(TM), technology products and solutions, and
furniture to consumers and to large, medium and small businesses. OfficeMax
customers are served by over 30,000 associates through direct sales, catalogs,
e-commerce and more than 1,000 stores. To find the nearest OfficeMax, call
1-877-OFFICEMAX. For more information, visit http://www.officemax.com.
Media Contact Investor Relations Contact
Bill Bonner Mike Steele
630 864 6066 630 864 6826
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(thousands)
September 27, December 29,
2008 2007
ASSETS
Current assets:
Cash and cash equivalents $234,511 $152,637
Receivables, net 650,555 720,878
Inventories 990,468 1,088,312
Other current assets 189,189 242,874
Total current assets 2,064,723 2,204,701
Property and equipment:
Property and equipment 1,327,338 1,279,609
Accumulated depreciation (748,979) (698,954)
Property and equipment, net 578,359 580,655
Goodwill and intangible assets, net 458,576 1,416,524
Timber notes receivable 899,250 1,635,000
Other non-current assets and deferred
taxes 689,368 446,888
Total assets $4,690,276 $6,283,768
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $9,831 $14,197
Current portion of long-term debt 35,788 34,827
Income taxes payable 38,357 33,887
Accounts payable 820,683 861,285
Accrued liabilities and other 414,332 426,513
Total current liabilities 1,318,991 1,370,709
Long-term debt:
Long-term debt, less current
portion 328,373 349,421
Timber notes securitized 1,470,000 1,470,000
Total long-term debt 1,798,373 1,819,421
Other long-term obligations:
Compensation and benefits 180,155 200,283
Other long-term liabilities 424,403 582,741
Total other long-term liabilities 604,558 783,024
Minority interest 35,679 32,042
Shareholders' equity:
Preferred stock 44,653 49,989
Common stock 189,872 188,481
Additional paid-in capital 924,751 922,414
Retained earnings (204,813) 1,095,950
Accumulated other comprehensive
income (21,788) 21,738
Total shareholders' equity 932,675 2,278,572
Total liabilities and shareholders'
equity $4,690,276 $6,283,768
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(thousands, except per-share amounts)
Quarter Ended
September 27, September 29,
2008 2007
Sales $2,096,337 $2,315,219
Cost of goods sold and occupancy
costs 1,569,870 1,727,161
Gross profit 526,467 588,058
Operating and other expenses:
Operating and selling 394,590 419,765
General and administrative 77,664 78,060
Goodwill and other asset
impairments (a) 735,750 -
Operating income (loss) (681,537) 90,233
Other income (expense):
Interest expense (29,822) (31,220)
Interest income 3,318 21,814
Other, net (25) (179)
(26,529) (9,585)
Income (loss) before income taxes and
minority interest (708,066) 80,648
Income taxes 276,415 (29,080)
Income (loss) before minority
interest (431,651) 51,568
Minority interest, net of income tax (232) (1,639)
Net income (loss) (431,883) 49,929
Preferred dividends (812) (931)
Net income (loss) applicable to
common shareholders $(432,695) $48,998
Basic income (loss) per common share $(5.70) $0.65
Diluted income (loss) per common
share $(5.70) $0.64
Weighted Average Shares
Basic 75,931 75,376
Diluted 75,931 76,558
(a) Third quarter of 2008 includes a $735.8 million non-cash impairment
charge related to the timber installment notes receivable due from Lehman
(the Lehman Note), recorded in the Corporate and Other Segment. In
addition, the company recorded the ongoing interest expense on the
securitization notes payable but ceased the recognition of interest
income and impaired the interest receivable of $18.2 million related to
the Lehman Note. Together these items reduced net income by $460.7
million or $6.06 per diluted share.
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(thousands, except per-share amounts)
Nine Months Ended
September 27, September 29,
2008 2007
Sales $6,383,899 $6,883,890
Cost of goods sold and occupancy costs 4,786,026 5,136,809
Gross profit 1,597,873 1,747,081
Operating and other expenses:
Operating and selling 1,191,688 1,233,114
General and administrative 229,305 257,694
Other operating, net (c) 11,274 -
Goodwill and other asset
impairments (a) & (b) 1,671,090 -
Operating income (loss) (1,505,484) 256,273
Other income (expense):
Interest expense (89,144) (91,296)
Interest income 46,900 66,628
Other, net (d) 20,679 (5,858)
(21,565) (30,526)
Income (loss) before income taxes and
minority interest (1,527,049) 225,747
Income taxes 265,481 (85,669)
Income (loss) before minority
interest (1,261,568) 140,078
Minority interest, net of income tax (e) (1,191) (4,174)
Net income (loss) (1,262,759) 135,904
Preferred dividends (2,839) (2,947)
Net income (loss) applicable to
common shareholders $(1,265,598) $132,957
Basic income (loss) per common share $(16.69) $1.77
Diluted income (loss) per common share $(16.69) $1.74
Weighted Average Shares
Basic 75,831 75,237
Diluted 75,831 76,298
(a) Third quarter of 2008 includes a $735.8 million non-cash impairment
charge related to the timber installment notes receivable due from Lehman
(the Lehman Note), recorded in the Corporate and Other Segment. In
addition, the company recorded the ongoing interest expense on the
securitization notes payable but ceased the recognition of interest income
and impaired the interest receivable of $18.2 million related to the
Lehman Note. Together these items reduced net income by $460.7 million or
$6.06 per diluted share.
(b) Second quarter of 2008 includes a $935.3 million non-cash item related
to impairment of goodwill, trade names and fixed assets. These charges are
recorded by segment in the following manner: Contract $464.0 million and
Retail $471.3 million. This item reduced net income by $909.3 million or
$11.99 per diluted share.
(c) Second quarter of 2008 includes a $10.2 million unusual item related
to employee severance from the reorganization of Retail store management
and a $3.1 million unusual item related to the legacy Voyageur Panel
business sold in 2004. First quarter of 2008 includes a $2.4 million
unusual item related to the consolidation of the Contract segment's
manufacturing facilities in New Zealand, and a $1.8 million unusual item
related to reorganizing the Retail field and ImPress print and document
services management organization. The cumulative effect of these items was
a reduction in net income of $7.0 million, or $0.09 per diluted share.
(d) First quarter of 2008 includes a $20.5 million unusual item related to
the company's investment in Boise Cascade, L.L.C., primarily from their
sale of a majority interest in their paper and packaging and newsprint
business completed during the first quarter of 2008. This item increased
net income by $12.5 million, or $0.16 per diluted share.
(e) First quarter of 2007 includes a $1.1 million unusual item related to
the sale of OfficeMax's Contract operations in Mexico to Grupo OfficeMax,
our 51% owned joint venture. This item reduced net income by $1.1 million,
or $0.01 per diluted share.
OFFICEMAX INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(thousands)
Nine Months Ended
September 27, September 29,
2008 2007
Cash provided by operations:
Net income (loss) $(1,262,759) $135,904
Items in net income (loss) not using
(providing) cash:
Depreciation and amortization 105,235 97,512
Non-cash impairment charges 1,671,090 -
Non-cash deferred taxes on
impairment charges (319,363) -
Other (5,610) 29,174
Changes other than from acquisitions
of business:
Receivables and inventory 144,903 (87,239)
Accounts payable and accrued
liabilities (19,431) (205,878)
Income taxes and other (67,337) 61,980
Cash provided by operations 246,728 31,453
Cash used for investment:
Expenditures for property and
equipment (112,065) (101,339)
Other 9,440 (748)
Cash used for investment (102,625) (102,087)
Cash used for financing:
Cash dividends paid (34,359) (35,758)
Changes in debt, net (26,392) (25,482)
Proceeds from exercise of stock
options - 5,852
Other 130 (10,022)
Cash used for financing (60,621) (65,410)
Effect of exchange rates on cash and
cash equivalents (1,608) 1,325
Increase (decrease) in cash and cash
equivalents 81,874 (134,719)
Cash and cash equivalents at
beginning of period 152,637 282,070
Cash and cash equivalents at end of
period $234,511 $147,351
OFFICEMAX INCORPORATED AND SUBSIDIARIES
SUPPLEMENTAL SEGMENT INFORMATION
(unaudited)
(millions, except per-share data)
Quarter Ended
September 27, September 29,
2008 2007
Impairment
As Adjustments As As
Reported (a) Adjusted Reported
Segment Sales
OfficeMax, Contract $1,049.1 $1,049.1 $1,185.7
OfficeMax, Retail 1,047.2 1,047.2 1,129.5
2,096.3 2,096.3 2,315.2
Segment income (loss)
OfficeMax, Contract 35.5 35.5 55.0
OfficeMax, Retail 29.1 29.1 45.3
Corporate and Other (746.1) 735.8 (10.3) (10.0)
Operating income (681.5) 735.8 54.3 90.3
Operating income margin -32.5% 2.6% 3.9%
Interest expense (29.8) (29.8) (31.2)
Interest income and other 3.2 18.2 21.4 21.6
Income before income taxes
and minority interest (708.1) 754.0 45.9 80.7
Income taxes 276.4 (293.3) (16.9) (29.1)
Income before
minority interest (431.7) 460.7 29.0 51.6
Minority interest,
net of income tax (0.2) (0.2) (1.7)
Net income (loss) $(431.9) $460.7 $28.8 $49.9
Preferred dividends (0.8) (0.8) (0.9)
Net income (loss) applicable
to common shareholders $(432.7) $460.7 $28.0 $49.0
Diluted income (loss) per
common share $(5.70) $(6.06) $0.36 $0.64
(a) Third quarter of 2008 includes a $735.8 million non-cash impairment
charge related to the timber installment notes receivable due from Lehman
(the Lehman Note), recorded in the Corporate and Other Segment. In
addition, the company recorded the ongoing interest expense on the
securitization notes payable but ceased the recognition of interest income
and impaired the interest receivable of $18.2 million related to the
Lehman Note. Together these items reduced net income by $460.7 million or
$6.06 per diluted share.
OFFICEMAX INCORPORATED AND SUBSIDIARIES
SUPPLEMENTAL SEGMENT INFORMATION
(unaudited)
(millions, except per-share data)
Nine Months Ended
September 27, September 29,
2008 2007
Impairment
As Adjustments As As
Reported (a) (b) Adjusted Reported
Segment Sales
OfficeMax, Contract $3,356.1 $3,356.1 $3,647.3
OfficeMax, Retail 3,027.8 3,027.8 3,236.6
6,383.9 6,383.9 6,883.9
Segment income (loss)
OfficeMax, Contract (321.7) 464.0 142.3 155.9
OfficeMax, Retail (422.1) 471.3 49.2 134.6
Corporate and Other (761.7) 735.8 (25.9) (34.2)
Operating income (1,505.5) 1,671.1 165.6 256.3
Operating income margin -23.6% 2.6% 3.7%
Interest expense (89.1) (89.1) (91.3)
Interest income and other 67.6 18.2 85.8 60.8
Income before income taxes
and minority interest (1,527.0) 1,689.3 162.3 225.8
Income taxes 265.4 (319.3) (53.9) (85.7)
Income before minority
interest (1,261.6) 1,370.0 108.4 140.1
Minority interest, net of
income tax (1.2) (1.2) (4.2)
Net income (loss) $(1,262.8) $1,370.0 $107.2 $135.9
Preferred dividends (2.8) (2.8) (2.9)
Net income (loss) applicable
to common shareholders $(1,265.6) $1,370.0 $104.4 $133.0
Diluted income (loss) per
common share $(16.69) $(18.05) $1.36 $1.74
(a) Third quarter of 2008 includes a $735.8 million non-cash impairment
charge related to the timber installment notes receivable due from Lehman
(the Lehman Note), recorded in the Corporate and Other Segment. In
addition, the company recorded the ongoing interest expense on the
securitization notes payable but ceased the recognition of interest income
and impaired the interest receivable of $18.2 million related to the
Lehman Note. Together these items reduced net income by $460.7 million or
$6.06 per diluted share.
(b) Second quarter of 2008 includes a $935.3 million non-cash item related
to impairment of goodwill, trade names and fixed assets. These charges are
recorded by segment in the following manner: Contract $464.0 million and
Retail $471.3 million. This item reduced net income by $909.3 million or
$11.99 per diluted share.
Reconciliation of non-GAAP Measures to GAAP Measures
We evaluate our results of operations before impairment charges as they
are not indicative of our core operating activities. We believe our
presentation of financial measures before, or excluding, these items, which
are non-GAAP measures, enhances our investors' overall understanding of our
recurring operational performance and provides useful information to both
investors and management to evaluate the ongoing operations and prospects of
OfficeMax by providing better comparisons. Whenever we use non-GAAP financial
measures, we designate these measures, which exclude the effect of certain
impairment items, as "adjusted" and provide a reconciliation of non-GAAP
financial measures to the most closely applicable GAAP financial measure.
Investors are encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most directly
comparable GAAP financial measure. In the preceding tables, we reconcile our
financial measures before impairment items to our reported GAAP financial
results for the third quarter and first nine months of both 2008 and 2007.
Although we believe the non-GAAP financial measures enhance an investor's
understanding of our performance, our management does not itself, nor does it
suggest that investors should, consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information prepared in
accordance with GAAP. The non-GAAP financial measures we use may not be
consistent with the presentation of similar companies in our industry.
However, we present such non-GAAP financial measures in reporting our
financial results to provide investors with an additional tool to evaluate our
operating results in a manner that focuses on what we believe to be our
ongoing business operations.
