CompUSA 2013 Annual Report Download - page 22

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Item 6. Selected Financial Data.
The following selected financial information is qualified by reference to, and should be read in conjunction with, the Company’
s Consolidated
Financial Statements and the notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
contained elsewhere in this report. The selected statement of operations data, excluding discontinued operations, for fiscal years 2013, 2012 and
2011 and the selected balance sheet data as of December 2013 and 2012 are derived from the audited consolidated financial statements which are
included elsewhere in this report. The selected balance sheet data as of December 2011, 2010 and 2009 and the selected statement of operations
data for fiscal years 2010 and 2009 are derived from the audited consolidated financial statements of the Company which are not included in this
report.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Overview
Systemax is primarily a direct marketer of brand name and private label products. Our operations are organized in two reportable business
segments — Technology Products and Industrial Products.
Technology Products
Our Technology Products segment primarily sells ICT AND CE products. These products are marketed in North America, Puerto Rico and
Europe. Most of these products are manufactured by other companies; however, we do offer a selection of products that are manufactured for us
to our own design and marketed on a private label basis. Technology products accounted for 86%, 89% and 91% of our net sales in 2013, 2012
and 2011, respectively.
In the fourth quarter of 2013, certain subsidiaries of the Company sold CompUSA intellectual property assets (primarily domain names,
trademarks and certain historical customer information) and accordingly the Company discontinued using the CompUSA brand in Puerto Rico.
The Company wrote off approximately $2.9 million, pre-tax, related to the intangible assets of the CompUSA brand in Puerto Rico.
In the fourth quarter of 2012, the Company conducted an evaluation, in 2012, of its Technology Products multi-
brand United States consumer
strategy and the intangible assets used in that strategy and concluded that the Company’
s future North American consumer business would be
optimized by consolidating its United States consumer operations under TigerDirect, its leading and largest brand. This consolidation resulted in
a write off of the intangible assets and goodwill of CompUSA and Circuit City of approximately $35.3 million.
In the fourth quarter of 2012, the Company exited the PC manufacturing operations after conducting an evaluation of its operations and
concluded that the Company’
s North American technology results would be enhanced by exiting the computer manufacturing business. The exit
resulted in a write down of the carrying cost of the Company’
s computer manufacturing facilities, related equipment and inventory of
approximately $4.6 million. An additional asset write down of the Company’
s computer manufacturing facilities of approximately $1.2 million
was made during 2013.
19
Table of Contents
Years Ended December 31,
(In millions, except per share data)
2013
2012
2011
2010
2009
Statement of Operations Data
:
Net sales
$
3,352.3
$
3,544.3
$
3,680.6
$
3,589.0
$
3,163.0
Gross profit
$
486.7
$
488.1
$
530.5
$
489.5
$
453.4
Operating income (loss) from continuing operations
$
(20.6
)
$
(39.9
)
$
80.8
$
68.8
$
80.1
Net income (loss) from continuing operations
$
(43.8
)
$
(8.0
)
$
54.6
$
42.6
$
49.2
Per Share Amounts
:
Net income (loss)
—
diluted
$
(1.18
)
$
(0.22
)
$
1.47
$
1.13
$
1.32
Weighted average common shares
—
diluted
37.0
36.9
37.1
37.6
37.3
Cash dividends declared per common share
$
-
$
0.25
$
-
$
-
$
0.75
Balance Sheet Data :
Working capital
$
345.8
$
360.8
$
354.8
$
300.9
$
250.1
Total assets
$
942.4
$
962.3
$
889.7
$
894.1
$
816.9
Long
-
term debt, excluding current portion
$
2.9
$
5.4
$
7.1
$
7.4
$
1.2
Shareholders
’
equity
$
406.2
$
446.3
$
454.3
$
409.3
$
364.7