CompUSA 2013 Annual Report Download - page 30

Results of Operations
Key Performance Indicators* (in millions):
*excludes discontinued operations
** includes special charges (gains), net (See Note 7 of Notes to Consolidated Financial Statements).
NET SALES
SEGMENTS:
The Technology Products segment, which includes operations in both North America and Europe, had a net sales decrease in 2013 attributable to
general declines in most product categories within North America, with the largest decline being in the CE product category. The Company
believes the major drivers of the decline in North America net sales is attributable to web, television and retail store sales declines, resulting from
sales volume and selling price erosion in certain core product categories such as personal computers and televisions. The Company believes the
decline in sales and price pressures for consumer electronics are attributable to a variety of well publicized industry and market trends, including
consumer preferences for new generation tablets, which erode laptop and desktop PC sales, the market share for tablets held by a major
manufacturer, which does not sell to the Company for U.S. markets, the consolidation of prior generations of separate devices and functions into
a single integrated device (such as GPS and cameras being integrated with smart phones), the ongoing movement of traditional brick and mortar
store sales to online/ecommerce vendors, and the increasing influence of a dominant company in the online/ecommerce marketplace.
Additionally, in the fourth quarter of 2013 the Company made the decision to avoid lowering selling prices to match aggressive online retailers.
Strong computer and consumer electronic sales within European markets were more than offset by weak sales of computer accessories, software,
and computer components in Europe and the declines in North America. On a constant currency basis, sales declined 8.6% or $270.8 million.
26
Table of Contents
Years Ended December 31,
2013
2012
%
Change
2012
2011
%
Change
Net sales by segment:
Technology Products
$
2,873.3
$
3,137.6
(8.4
%)
$
3,137.6
$
3,357.4
(6.5
%)
Industrial Products
473.8
401.9
17.9
%
401.9
319.9
25.6
%
Corporate and other
5.2
4.8
8.3
%
4.8
3.3
45.5
%
Consolidated net sales
$
3,352.3
$
3,544.3
(5.4
%)
$
3,544.3
$
3,680.6
(3.7
%)
Net sales by channel:
B2B
$
2,158.4
$
2,109.7
2.3
%
$
2,109.7
$
1,984.4
6.3
%
B2C
1,193.9
1,434.6
(16.8
%)
1,434.6
1,696.2
(15.4
%)
Consolidated net sales
$
3,352.3
$
3,544.3
(5.4
%)
$
3,544.3
3,680.6
(3.7
%)
Consolidated gross margin
14.5
%
13.8
%
0.7
%
13.8
%
14.4
%
(0.6
%)
Consolidated SG&A costs**
$
507.3
$
528.0
(3.9
)%
$
528.0
$
449.7
17.4
%
Consolidated SG&A costs** as % of
sales
15.1
%
14.9
%
0.2
%
14.9
%
12.2
%
2.7
%
Operating income (loss) from
continuing operations by segment:**
Technology Products
$
(40.6
)
$
(46.9
)
(13.4
%)
$
(46.9
)
$
68.0
(169.0
%)
Industrial Products
40.0
29.9
33.8
%
29.9
35.1
(14.8
%)
Corporate and other
(20.0
)
(22.9
)
(12.7
%)
(22.9
)
(22.3
)
2.7
%
Consolidated operating income (loss)
$
(20.6
)
$
(39.9
)
(48.4
%)
$
(39.9
)
$
80.8
(149.4
%)
Operating margin from continuing
operations by segment
:**
Technology Products
(1.4
%)
(1.5
%)
0.1
%
(1.5
%)
2.0
%
(3.5
%)
Industrial Products
8.4
7.4
1.0
%
7.4
11.0
%
(3.6
%)
Consolidated operating margin from
continuing operations
(0.6
%)
(1.1
%)
0.5
%
(1.1
%)
2.2
%
(3.3
%)
Effective income tax rate
100.9
%
80.8
%
20.1
%
80.8
%
30.9
%
49.9
%
Net income (loss) from continuing
operations
$
(43.8
)
$
(8.0
)
447.5
%
$
(8.0
)
$
54.6
(114.7
%)
Net margin from continuing operations
(1.3
%)
(0.2
%)
(1.1
%)
(0.2
%)
1.5
%
(1.7
%)