Essendant Inc (ESND) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Earnings Press Release
10-Q Quarterly Report
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Essendant Inc
Ticker: ESND CIK: 355999

Exhibit 99.1

Executive Offices

One Parkway North Blvd.

Suite 100

Deerfield, IL 60015-2559

For Further Information Contact:

investorrelations@essendant.com

(847) 627-2900

ESSENDANT REPORTS THIRD QUARTER 2018 RESULTS

DEERFIELD, Ill., October 25, 2018 – Essendant Inc. (NASDAQ: ESND), a leading national distributor of workplace items, today announced financial results for the third quarter ended September 30, 2018, as follows:

Third Quarter 2018 Summary

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Net sales declined 1.2% to $1.3 billion in the quarter, compared to the prior year quarter.

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Loss per share in the quarter was $(0.12) compared to $(2.23) in the prior year quarter. Net loss was $(4.5) million in the quarter compared to $(81.9) million in the prior year quarter.

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Adjusted diluted earnings per share⁽¹⁾ in the quarter was $0.14, compared to $0.03 in the prior year quarter. Adjusted net income⁽¹⁾ was $5.4 million in the quarter compared to $1.2 million in the third quarter of 2017.

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Free cash flow⁽¹⁾ was $23.0 million in the nine months ended September 30, 2018, including transaction costs of $13.1 million year-to-date.

“Essendant’s results in the third quarter were in line with our expectations, reflecting the team’s execution of our strategic drivers,” said Ric Phillips, President and Chief Executive Officer of Essendant. “We continue to expect the Staples transaction to close in the fourth quarter of this year and are confident in the clear benefits the transaction will enable us to deliver to our customers and the definitive value it provides our shareholders.”

Third Quarter Performance

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Net sales decreased 1.2% compared to the prior year quarter, driven by reduced sales in the national reseller channel being partially offset by higher sales in the industrial and automotive customer channels. Net sales by product category were:

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JanSan Products: decreased $0.5 million or 0.2% to $353.1 million.

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Technology Products: decreased $13.6 million or 4.1% to $317.2 million.

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Traditional Office Products: decreased $14.5 million or 6.9% to $194.9 million.

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Industrial Supplies: increased $17.2 million or 12.0% to $160.6 million.

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Cut-sheet Paper Products: increased $6.3 million or 5.5% to $120.1 million.

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Automotive Products: increased $2.2 million or 2.8% to $77.9 million.

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Office Furniture: decreased $9.7 million or 13.0% to $64.7 million.

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This is non-GAAP information. See the Reconciliation of Non-GAAP Financial Measures section of this document for more information.

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The following information was filed by Essendant Inc (ESND) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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