Avon 2013 Annual Report Download - page 39

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Results Of Operations - Consolidated
%/Point Change
2013 2012 2011
2013 vs.
2012
2012 vs.
2011
Total revenue $9,955.0 $10,561.4 $11,099.5 (6)% (5)%
Cost of sales 3,772.5 4,103.1 4,065.0 (8)% 1%
Selling, general and administrative expenses 5,713.2 5,889.3 5,942.5 (3)% (1)%
Impairment of goodwill and intangible asset 42.1 44.0 – (4)% *
Operating profit 427.2 525.0 1,092.0 (19)% (52)%
Interest expense 120.6 104.3 92.9 16% 12%
Loss on extinguishment of debt 86.0 – – * *
Interest income (25.9) (15.1) (16.4) 72% (8)%
Other expense, net 83.9 7.1 35.4 * (80)%
(Loss) income from continuing operations, net of tax (1.0) 93.3 675.6 * (86)%
Net (loss) income attributable to Avon $ (56.4) $ (42.5) $ 513.6 (33)% *
Diluted (loss) earnings per share from continuing operations $ (.01) $ .20 $ 1.54 * (87)%
Diluted (loss) earnings per share attributable to Avon $ (.13) $ (.10) $ 1.18 (30)% *
Advertising expenses(1) $ 201.9 $ 251.3 $ 308.9 (20)% (19)%
Gross margin 62.1% 61.2% 63.4% .9 (2.2)
CTI restructuring – – .1 – (.1)
Venezuelan special items .4 – – .4 –
Adjusted gross margin 62.5% 61.2% 63.5% 1.3 (2.3)
Selling, general and administrative expenses as a % of total
revenue 57.4% 55.8% 53.5% 1.6 2.3
CTI restructuring (.7) (1.1) (.3) .4 (.9)
Venezuelan special items (.1) – – (.1) –
FCPA accrual (.9) – – (.9) –
Asset impairment and other charges (1.2) (1.2) –
Adjusted selling, general and administrative expenses as a %
of total revenue 54.6% 54.6% 53.3% – 1.3
Operating profit $ 427.2 $ 525.0 $ 1,092.0 (19)% (52)%
CTI restructuring 65.9 124.7 40.0
Venezuelan special items 49.6 – –
FCPA accrual 89.0 – –
Asset impairment and other charges 159.3 44.0 –
Adjusted operating profit $ 791.0 $ 693.7 $ 1,132.0 14% (39)%
Operating margin 4.3% 5.0% 9.8% (.7) (4.9)
CTI restructuring .7 1.2 .4 (.5) .8
Venezuelan special items .5 – – .5 –
FCPA accrual .9 – – .9 –
Asset impairment and other charges 1.6 .4 – 1.2 .4
Adjusted operating margin 7.9% 6.6% 10.2% 1.3 (3.6)
Effective tax rate 100.6% 78.2% 31.1% 22.4 47.1
CTI restructuring .8 (.4) .1 1.2 (.5)
Venezuelan special items (27.1) .1 – (27.2) .1
FCPA accrual (6.2) – – (6.2) –
Asset impairment and other charges (39.0) (3.6) – (35.4) (3.6)
Loss on extinguishment of debt 1.2 – – 1.2 –
Special tax items – (39.3) – 39.3 (39.3)
Adjusted effective tax rate 30.3% 35.0% 31.2% (4.7) 3.8
Change in Active Representatives (2)% –%
Change in units sold (5)% –%
Amounts in the table above may not necessarily sum due to rounding.
* Calculation not meaningful
(1) Advertising expenses are included within selling, general and administrative expenses.
A V O N 2013 31