United Stationers Reports Increased Sales and Earnings

United Stationers Inc. USTR, a leading North American wholesale distributor of business products, today reported second quarter 2010 results. Second Quarter Financial Highlights -- Diluted earnings per share were $1.10. Adjusted to exclude a non-cash $2.8 million pre-tax reversal of actuarially based liabilities resulting from the termination of a post-retirement medical plan, second quarter 2010 diluted earnings per share were $1.03(1), up 17%, compared with $0.88 a year ago. -- Net sales for the second quarter increased 5.3% to $1.22 billion, compared with $1.16 billion in the prior-year quarter. -- Gross margin in the second quarter of 2010 was 14.7% of sales, up 60 basis points, compared with 14.1% in the prior-year quarter. -- Operating expenses in 2010 were $128.9 million, or 10.6% of sales. Adjusted operating expenses in 2010 were $131.7 million(1), or 10.8%(1) of sales, compared with $122.2 million, or 10.5% of sales in the 2009 quarter. -- Operating income was $50.3 million, or 4.1% of sales. Adjusted operating income was $47.5 million(1), or 3.9%(1) of sales, versus $41.2 million, or 3.6% of sales, in the prior-year quarter. -- Net income was $27.0 million in 2010. Adjusted net income in the second quarter of 2010 was up 19% to $25.3 million versus $21.2 million in the prior-year quarter.