CompUSA 2009 Annual Report Download - page 79

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19
data presented is adjusted retrospectively (including interim financial statements, summaries of earnings, and selected financial data).
The Company adopted this authoritative guidance in January 2009 and it did not have a material impact on its condensed consolidated
financial statements.
Highlights from 2009
The discussion of our results of operations and financial condition that follows will provide information that will assist in
understanding our financial statements and information about how certain accounting principles and estimates affect the consolidated
financial statements. This discussion should be read in conjunction with the consolidated financial statements included herein.
Sales increase of 4.4% to $3.2 billion in 2009 over 2008.
Completed CircuitCity.com asset purchase and WStore Europe SA and Subsidiaries (“WStore”) stock purchase.
Opened five new retail stores.
Exited unprofitable Software Solutions segment.
Diluted earnings per share declined to $1.24 from $1.40 in 2008.
Movements in exchange rates negatively impacted European and Canadian sales by approximately $103.6 million and $17.3
million, respectively.
52 weeks in 2009 and 2007 vs. 53 weeks in 2008.
Results of Operations
Key Performance Indicators (in thousands):
Years Ended December 31,
2009 2008
%
Change 2008 2007
%
Change
Net sales by segment:
Technology products $ 2,967,896 $ 2,795,441 6.2% $ 2,795,441 $ 2,553,716 9.5%
Industrial products 196,129 237,027 (17.3)% 237,027 225,746 5.0%
Software solutions 1,970 493 299.6% 493 413 19.4%
Total net sales $ 3,165,995 $ 3,032,961 4.4% $ 3,032,961 $ 2,779,875 9.1%
Net sales by geography:
North America $ 2,317,475 $ 2,092,372 10.8% $ 2,092,372 $ 1,847,477 13.3%
Europe 848,520 940,589 (9.8)% 940,589 932,398 .9%
Total net sales $ 3,165,995 $ 3,032,961 4.4% $ 3,032,961 $ 2,779,875 9.1%
Consolidated gross profit $ 460,248 $ 458,559 .4% $ 458,559 $ 426,301 7.6%
Consolidated gross margin 14.5% 15.1% (.6)% 15.1% 15.3% (.2)%
Consolidated selling, general and
administrative costs $ 386,857 $ 375,192 3.1% $ 375,192 $ 332,359 12.9%
Consolidated selling, general and
administrative costs as % of
sales 12.2% 12.4% (.2)% 12.4% 12.0% .4%
Operating income (loss) by
segment:
Technology products $ 87,127 $ 96,177 (9.4)% $ 96,177 $ 100,958 (4.7)%
Industrial products 15,415 24,621 (37.4)% 24,621 20,595 19.5%
Software solutions (6,457) (17,948) 64.0% (17,948) (15,813) (13.5)%
Consolidated operating income $ 73,391 $ 83,367 (12.0)% $ 83,367 $ 93,942 (11.3)%
Operating margin by segment:
Technology products 2.7% 3.2% (.5)% 3.2% 3.6% (.4)%
Industrial products .5% .8% (.3)% .8% .7% .1%
Software solutions (.2)% (.6)% .4% (.6)% (.6)%
—
Consolidated operating margin 2.3% 2.7% (.4)% 2.7% 3.4% (.7)%
Effective income tax rate 36.8% 36.9% (.1)% 36.9% 30.5% 6.4%
Net income $ 46,185 $ 52,843 (12.6)% $ 52,843 $ 69,481 (23.9)%
Net margin 1.5% 1.7% (.2)% 1.7% 2.5% (.8)%