Circuit City 2000 Annual Report Download

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SYSTEMAX INC
FORM 10-K
(Annual Report)
Filed 03/30/01 for the Period Ending 12/31/00
Address 11 HARBOR PARK DR
PORT WASHINGTON, NY 11050
Telephone 5166087000
CIK 0000945114
Symbol SYX
SIC Code 5961 - Catalog and Mail-Order Houses
Industry Retail (Catalog & Mail Order)
Sector Services
Fiscal Year 12/31
http://www.edgar-online.com
© Copyright 2008, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    ... FORM 10-K (Annual Report) Filed 03/30/01 for the Period Ending 12/31/00 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 11 HARBOR PARK DR PORT WASHINGTON, NY 11050 5166087000 0000945114 SYX 5961 - Catalog and Mail-Order Houses Retail (Catalog & Mail Order) Services 12/31 http...

  • Page 2
    ...New York (Address of principal executive offices) 11-3262067 (I.R.S. Employer Identification No.) 11050 (Zip Code) Registrant's telephone number, including area code: (516) 608-7000 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on which registered New York Stock...

  • Page 3
    ... Proxy Statement of Systemax Inc. relating to the 2001 Annual Meeting of Stockholders is incorporated by reference in Part III hereof. TABLE OF CONTENTS Part I Item 1. Business General Recent Developments Products Sales and Marketing Distribution Centers Suppliers Management Information Systems...

  • Page 4
    ... customer service and prompt order fulfillment. Computers and computer related products accounted for 88% of the Company's net sales in 2000. Systemax markets its products through an integrated system of distinctively branded, full-color direct mail catalogs, proprietary "e-commerce" Internet sites...

  • Page 5
    ... brand name and private label products. Computer sales include a wide array of private label PCs complemented by offerings of brand named PCs and notebook computers. The Company's computer related products include supplies such as laser printer toner cartridges, ink jet printer cartridges, and paper...

  • Page 6
    ...designated Systemax account manager. In the United States, Systemax also has the ability to provide such customers with electronic data interchange ("EDI") ordering and customized billing services, customer savings reports and stocking of specialty items specifically requested by customers. The goal...

  • Page 7
    ... or two business days of the order date. Customers are invoiced for merchandise, shipping and handling promptly after shipment. To better manage sales growth the Company has been working on upgrading its existing computer system for order entry and fulfillment and plans to install a new and improved...

  • Page 8
    .... The central office is responsible for marketing support, catalog production, financial reporting, logistics and computer programming support. In addition, each European branch has a full service sales and distribution center to process orders and reports to the respective country manager who has...

  • Page 9
    ... of computers throughout factory, business, engineering and office environments has made it increasingly difficult and expensive for many suppliers to use traditional direct sales methods to locate users, initiate sales contacts and effectively provide service to customers. Average order values also...

  • Page 10
    ...31, 2000, the Company employed a total of 4,019 employees, including 3,865 full-time and 154 part-time employees, of whom 2,661 were in North America and 1,358 were in Europe. None of the Company's employees is represented by a labor union, except for approximately 39 warehouse employees in New York...

  • Page 11
    ... PART II Item 5. Market for Registrant's Common Equity and Related Stockholder Matters. The Company's Common Stock is traded on the New York Stock Exchange under the symbol "SYX". The following table sets forth the high and low closing sales price of the Company's Common Stock as reported on the New...

  • Page 12
    ... sales...Gross profit...Selling, general and administrative expenses...Income (loss) from operations...Income taxes...Net income (loss)...Net income (loss) per common share: Basic...Diluted...Weighted average common shares outstanding: Basic...Diluted...Selected Operating Data: Active Orders Number...

  • Page 13
    ... million in 2000 from $314.5 million in 1999. The gross profit margin decreased to 12.4% in 2000 from 17.9% in 1999. Gross profit was significantly impacted by losses in the Company's PC assembly business, principally related to increased sales returns and losses on liquidation of excess inventory.

  • Page 14
    ... expenses. During the second quarter of 2000, the Company sold its internet auction subsidiary, EZBid Inc., and closed a small software sales subsidiary, which together eliminate approximately $5 million in operating losses on an annualized basis. Operating income in Europe, which increased to $17...

  • Page 15
    ... increased inventories, caused by a one-time buildup to service increased demand. Additionally, accounts receivable increased in 1999 as a result of the increase in sales and an increase in the average days sales outstanding due to a change in the mix of sales by location. In 2000 the Company used...

  • Page 16
    ... and growth through its available cash balances and funds generated by operations and secured lines of credit maintained with financial institutions but there can be no assurance that the Company will reach a satisfactory agreement for a new facility. The Company is party to certain litigation, as...

  • Page 17
    ...the PC, notebook computer, computer related products, industrial products and office products markets from superstores, direct response (mail order) distributors, mass merchants, value added resellers, the Internet and other retailers, (vii) the potential for expanded imposition of state sales taxes...

  • Page 18
    ... with Accountants on Accounting and Financial Disclosure. None. PART III Item 10. Directors and Executive Officers of the Registrant. The information required by Item 10 of Part III is hereby incorporated by reference from the Company's Proxy Statement for the 2001 Annual Meeting of Stockholders...

  • Page 19
    ... (Compton facility) 4 Build-to-Suit Lease Agreement dated April, 1995 among the Company, American National Bank and Trust Company of Chicago and Walsh, Higgins&Company (Naperville facility) 1 Lease Agreement dated September 17, 1998 between Tiger Direct, Inc. and Keystone Miami Property Holding Corp...

  • Page 20
    ... to Revolving Credit Agreement among the Company, certain subsidiaries of the Company, The Chase Manhattan Bank, as Agent, and The Bank of New York, as Documentation Agent, dated November 30, 2000 Specimen stock certificate of Registrant 14 Form of 1999 Long-Term Stock Incentive Plan 9* Subsidiaries...

  • Page 21
    ..., thereunto duly authorized in the City of New York, State of New York, on the 27th day of March, 2001. SYSTEMAX INC. By: /s/ RICHARD LEEDS Richard Leeds Chairman and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the...

  • Page 22
    ... balance sheets of Systemax Inc. and its subsidiaries, (the "Company"), as of December 31, 2000 and 1999 and the related consolidated statements of operations, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2000. These financial statements...

  • Page 23
    ... DEFERRED INCOME TAX BENEFIT OTHER ASSETS 25,486 8,781 --------389,036 74,749 70,672 3,224 337 --------$ 538,018 ========= 6,369 ---------426,777 46,839 73,684 4,190 322 ---------$ 551,812 ========== TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable to banks Current...

  • Page 24
    ... to consolidated financial statements. SYSTEMAX INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998 (IN THOUSANDS) Accumulated Other Comprehensive Income (Loss), Net of Tax 1,174) Common Stock Number Additional of Paid-in Retained Shares Amount...

  • Page 25
    ... and amortization, net 13,608 Charges associated with the impairment of certain long lived assets Provision for deferred income taxes 230 Provision for returns and doubtful accounts 12,721 Changes in certain assets and liabilities: Accounts receivable (3,263) Inventories 43,124 Prepaid expenses and...

  • Page 26
    ...The Company recognizes sales of products, including shipping revenue, at the time of shipment. Accounts receivable are shown in the consolidated balance sheets net of allowances for doubtful collections and subsequent customer returns of approximately $15,329,000 and $13,963,000 at December 31, 2000...

  • Page 27
    ...fair market value of the asset is recognized. During the second quarter of 1999, the Company wrote off $1.9 million of goodwill associated with a number of small acquisitions made during the previous few years. Net Income (Loss) Per Common Share - The Company accounts for net income (loss) per share...

  • Page 28
    ... December 31, 2000, the Company accepted a proposal from a financial institution for a three-year committed domestic borrowing facility to replace the existing Revolving Credit Agreement, secured principally by the Company's eligible accounts receivable and inventory balances. Closing is subject to...

  • Page 29
    ... of the Company or its affiliates. All options granted under this plan will have a ten year term from grant date and are immediately exercisable. A maximum of 100,000 shares may be granted for awards under this plan. This plan will terminate the day following the tenth annual stockholders meeting...

  • Page 30
    ... information for the three years ended December 31, 2000 concerning currently outstanding and exercisable options: 2000 1999 1998 Weighted-Average Weighted Average Weighted Average Fixed Options Shares Exercise Price Shares Exercise Price Shares Exercise Price Outstanding at beginning of year...

  • Page 31
    ... with Statement of Financial Accounting Standard 109 "Accounting for Income Taxes", the Company maintains valuation allowances against its foreign net operating loss carryforwards since, at this time, the realizability of the related deferred tax benefits can not be reasonably assured. The Company...

  • Page 32
    ...issued a guarantee to a U. K. financial institution to secure a line of credit for its European subsidiaries. Litigation - In December 1999 the Company settled its lawsuit with a bankrupt former supplier and its lenders. After the payment of a cash settlement, the Company's fourth quarter results of...

  • Page 33
    ... are marketed through an integrated system of direct mail catalogs, a network of major account sales representatives and proprietary e-commerce Internet web-sites. Financial information relating to the Company's operations by geographic area was as follows (in thousands): Net Sales 2000 1999...

  • Page 34
    ... the REVOLVING CREDIT AGREEMENT, dated as of November 30, 2000, among SYSTEMAX, INC., a Delaware corporation (" Systemax "), the subsidiaries of Systemax named therein (together with Systemax, collectively, the " Borrowers "), THE CHASE MANHATTAN BANK (" Chase "), The Bank of New York (" BNY "; and...

  • Page 35
    ... New THE CHASE MANHATTAN BANK, Individually and as Agent By: /s/ Robert Addea Title: VP THE BANK OF NEW YORK By: /s/ Edward J. DeSalvio Title: Vice President Exhibit 21 SUBSIDIARIES OF SYSTEMAX INC. DOMESTIC SUBSIDIARIES 1. 2. 3. 4. 5. Global Computer Supplies Inc. ( a New York corporation) Dartek...

  • Page 36
    .... ( a New York corporation) Misco Italy Computer Supplies S.P.A. ( an Italian corporation) H C S Global SA ( a French corporation) Systemax Europe Ltd. ( a U.K. corporation) Exhibit 23 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in Registration Statement No...