United Stationers Announces Sale Of MBS Dev
DEERFIELD, Ill., Dec. 17, 2014 /PRNewswire/ -- United Stationers Inc. (NASDAQ: USTR) today announced that its wholly-owned subsidiary, United Stationers Supply Co., sold MBS Dev, a subsidiary focused on software solutions for distribution companies. MBS Dev was purchased by Project AX (PAX), a newly-formed Microsoft Dynamics AX provider.
"As part of PAX, MBS Dev will be advanced to meet the specialized needs of distribution industries. This development will benefit our customers by supporting their online and ebusiness needs more thoroughly," said P. Cody Phipps, United Stationers' president and chief executive officer.
"Acquiring MBS Dev is the linchpin of our entire strategy," said PAX co-founder and chief executive officer Thomas Ajspur. "As one of the largest Dynamics AX providers in the U.S., we have the knowledge, scale and capability to support the Microsoft push into the enterprise space." PAX concurrently announced its purchase of MBS Dev and Celenia Software, a multinational Microsoft Dynamics Gold Certified partner.
For the nine months ended September 2014, MBS Dev's revenues totaled $13 million, and earnings were slightly dilutive to the company. In the fourth quarter of 2014, United expects to record a loss of an estimated $8-10 million related to MBS Dev.
Forward-Looking Statement
This news release contains forward-looking statements, including references to anticipated future performance, results or events and other statements that are not strictly historical in nature. These statements are based on management's current expectations, forecasts and assumptions. This means they involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied here. These risks and uncertainties include, but are not limited to the following: United's reliance on key customers, and the risks inherent in continuing or increased customer concentration; end-user demand for products in the office, technology, and furniture product categories may continue to decline; prevailing economic conditions and changes affecting the business products industry and the general economy; United's reliance on independent resellers for a significant percentage of its net sales and, therefore, the importance of the continued independence, viability and success of these resellers; continuing or increasing competitive activity and pricing pressures within existing or expanded product categories, including competition from product manufacturers who sell directly to United's customers; United's ability to maintain its existing information technology systems and the systems and e-commerce services that it provides to customers, and to successfully procure, develop and implement new systems and services without business disruption or other unanticipated difficulties or costs; the creditworthiness of United's customers; the risks and expense associated with United's obligations to maintain the security of private information provided by United's customers; and the costs and risks related to compliance with laws, regulations and industry standards affecting United's business;.
Shareholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For additional information about risks and uncertainties that could materially affect United's results, please see the company's Securities and Exchange Commission filings. The forward-looking information in this news release is made as of this date only, and the company does not undertake to update any forward-looking statement. Investors are advised to consult any further disclosure by United regarding the matters discussed in this release in its filings with the Securities and Exchange Commission and in other written statements it makes from time to time. It is not possible to anticipate or foresee all risks and uncertainties, and investors should not consider any list of risks and uncertainties to be exhaustive or complete.
Company Overview
United Stationers Inc. is a leading supplier of business essentials, with 2013 net sales of $5.1 billion. The company stocks a broad assortment of over 140,000 items, including technology products, traditional office products, janitorial and breakroom supplies, office furniture, and industrial supplies. The Company's network of 77 distribution centers allows it to deliver these products to approximately 25,000 reseller customers. This network, combined with United's breadth and depth of inventory, enables the Company to ship most products overnight to more than ninety percent of the U.S. and major cities in Mexico and Canada. For more information, visit unitedstationers.com.
United Stationers common stock trades on the NASDAQ Global Select Market under the symbol USTR.
For Further Information Contact:
Cody Phipps
President and Chief Executive Officer
or
Todd Shelton
Senior Vice President and Chief Financial Officer
847-627-7000
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SOURCE United Stationers Inc.
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