UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report October 22, 2002
Commission file number 1-10948
OFFICE DEPOT, INC.
(Exact name of registrant as specified in its charter)
Delaware 59-2663954
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2200 Old Germantown Road, Delray Beach, Florida 33445
(Address of principal executive offices) (Zip Code)
(561) 438-4800
(Registrant's telephone number, including area code)
Former name or former address, if changed since last report: N/A
ITEM 5. OTHER EVENTS
On October 22, 2002, Office Depot, Inc. issued a press release with a revised
statement of cash flows to correct an error contained in the statement in its
previously released earnings information for its fiscal third quarter of 2002.
The change in presentation has no impact on net increase in cash and cash
equivalents for the period, which were correctly stated, or on the consolidated
statements of income or balance sheets included with the release.
A copy of the press release is attached hereto as Exhibit 99.1 and incorporated
by reference herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press release dated October 22, 2002, with a revised statement of cash
flows to correct an error contained in the statement included as part of
the Company's previously released earnings information for its fiscal
third quarter of 2002. This correction has no impact on the net increase
in cash and cash equivalents for the period, which was correctly stated,
or on the consolidated statements of income or balance sheets included
with the release.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OFFICE DEPOT, INC.
Date: October 22, 2002 By: /S/ DAVID C. FANNIN
David C. Fannin
Executive Vice President and
General Counsel
OFFICE DEPOT
NEWS RELEASE
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CONTACT: Eileen H. Dunn
Vice President, Investor Relations/Public Relations
561/438-4930
edunn@officedepot.com
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OFFICE DEPOT ISSUES CORRECTED CASH FLOW STATEMENT IN CONNECTION
WITH THIRD QUARTER 2002 RESULTS
(Delray Beach, FL) October 22, 2002 - OFFICE DEPOT, INC. (NYSE: ODP), the
world's largest seller of office products, announced today that in reviewing its
financial performance for the quarter just ended, it has determined that there
is an error in the statements of cash flows attached to its third quarter press
release, dated October 16, 2002. A corrected statement of cash flows is attached
to this press release.
The error resulted from a failure to properly eliminate a line of credit
refinancing and related inter-company transfer of funds that occurred in the
second quarter of the year, resulting in an overstatement of net cash used in
financing activities and a corresponding overstatement of net cash provided by
operating activities. Net increase in cash and cash equivalents for the period
was correctly stated and is unaffected by the error.
There is no effect on the Company's consolidated statements of earnings or
consolidated balance sheets, or any change in its cash flow outlook for the
balance of 2002, nor upon any of the other information set forth in the
Company's October 16 earnings press release. The error was discovered in the
course of the Company's internal review processes in connection with the
preparation of its report on Form 10-Q for the third fiscal quarter of 2002. The
Company remains comfortable with the guidance outlined in its third quarter
press release on October 16, 2002 for free cash flow to exceed $400 million for
the full 2002 fiscal year.
No one sells more office products to more customers in more countries through
more channels than Office Depot. As the largest seller of office products around
the world, the Company operates under the Office Depot(R), Viking Office
Products(R), Viking Direct(R) and 4Sure.com(R) brand names. As of September 28,
2002, Office Depot operated 861 office supply superstores in the United States
and Canada, in addition to a national business-to-business delivery network
supported by 24 delivery centers, more than 60 local sales offices and 13
regional call centers. Furthermore, the Company sells products and services in
19 countries outside of the United States and Canada, including 32 office supply
stores in France and 12 in Japan that are owned and operated by the Company; and
115 additional office supply stores under joint venture and licensing agreements
operating under the Office Depot name in six foreign countries.
The Company operates an award-winning U.S. Office Depot brand Web site at
www.officedepot.com where customers can access Office Depot's low competitive
prices seven days a week, twenty-four hours a day, as well as a new Web site
that targets the school supply market at www.school.com. The Company also
operates eighteen additional Web sites, under the Office Depot and Viking Office
Products names, in the U.S., Canada and ten international countries including:
Austria, Australia, Belgium, France, Japan, Germany, Ireland, Italy, the
Netherlands and the United Kingdom.
Office Depot's common stock is traded on the New York Stock Exchange under the
symbol ODP and is included in the S&P 500 Index.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: Except for historical
information, the matters discussed in this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, as amended. Forward-looking statements, including without limitation all
of the projections and anticipated levels of future performance, involve risks
and uncertainties which may cause actual results to differ materially from those
discussed herein. These risks and uncertainties are detailed from time to time
by Office Depot in its filings with the United States Securities and Exchange
Commission ("SEC"), including without limitation its most recent filing on Form
10-K, filed on March 19, 2002 and subsequent filings on Forms 10-Q and 8K. You
are strongly urged to review all such filings for a more detailed discussion of
such risks and uncertainties. The Company's SEC filings are readily obtainable
at no charge at www.sec.gov and at www.freeEDGAR.com, as well as on a number of
other commercial Web sites.
OFFICE DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
39 Weeks Ended
September 28, September 29,
2002 2001
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CASH FLOW FROM OPERATING ACTIVITIES:
Net earnings $ 247,826 $160,763
Adjustments to reconcile net earnings to net cash provided by operating
activities:
Discontinued operations (1,763) (1,601)
Depreciation and amortization 149,324 145,948
Provision for losses on inventories and receivables 76,565 88,125
Changes in working capital 178,040 213,246
Other operating activities, net 27,263 62,394
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Net cash provided by operating activities 677,255 668,875
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments and other assets
--- (45,961)
Capital expenditures, net of proceeds from sales (131,040) (119,670)
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Net cash (used in) investing activities (131,040) (165,631)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and sale of stock
under employee stock purchase plans 83,484 20,681
Acquisition of treasury stock (36,380) ---
Proceeds from issuance of long-term debt --- 255,094
Payments on long- and short-term borrowings, net (250,951) (373,700)
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Net cash (used in) financing activities (203,847) (97,925)
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EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
32,431 (9,655)
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Net increase in cash and cash equivalents 374,799 395,664
Cash and cash equivalents at beginning of period 565,388 146,458
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Cash and cash equivalents at end of period $ 940,187 $ 542,122
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