CompUSA 2011 Annual Report Download - page 19

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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 for fiscal years 2011, 2010 and 2009 and the selected balance sheet data as of
December 2011 and 2010 are derived from the audited consolidated financial statements which are included elsewhere in this report. The selected
balance sheet data as of December 2009, 2008 and 2007 and the selected statement of operations data for fiscal years 2008 and 2007 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.
Our Technology Products segment sells computers, computer supplies and consumer electronics which 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 91%, 93% and 94% of our net sales in 2011, 2010 and
2009, respectively.
Our Industrial Products segment sells a wide array of industrial products and supplies which are marketed in North America. Most of these products
are manufactured by other companies. Some products are manufactured for us to our own design and marketed under the trademarks Global™ ,
GlobalIndustrial.com™ and Nexel™. Industrial products accounted for 9%, 7% and
6% of our net sales in 2011, 2010 and 2009, respectively. In both
of these product groups, we offer our customers a broad selection of products, prompt order fulfillment and extensive customer service.
We announced plans to exit the Software Solutions segment during the second quarter of 2009. Substantially all of the third party business activities
of ProfitCenter Software have ended. Current and prior year results for Software Solutions are now included in “Corporate and other”. See Note 12 to
the Consolidated Financial Statements included in Item 15 of this Form 10-K
for additional financial information about our business segments as well
as information about our geographic operations.
The market for computer products and consumer electronics is subject to intense price competition and is characterized by narrow gross profit margins.
The North American industrial products market is highly fragmented and we compete against companies utilizing multiple distribution channels.
Distribution is working capital intensive, requiring us to incur significant costs associated with the warehousing of many products, including the costs
of leasing warehouse space, maintaining inventory and inventory management systems, and employing personnel to perform the associated tasks. We
supplement our on-hand product availability by maintaining relationships with major distributors and manufacturers, utilizing a combination of
stocking and drop-shipment fulfillment.
The primary component of our operating expenses historically has been employee related costs, which includes items such as wages, commissions,
bonuses, employee benefits and stock option expenses. We continually assess our operations to ensure that they are efficient, aligned with market
conditions and responsive to customer needs.
Table of Contents
Years Ended December 31,
(In millions, except per share data)
2011
2010
2009
2008
2007
Statement of Operations Data
:
Net sales
$
3,682.0
$
3,590.0
$
3,166.0
$
3,033.0
$
2,779.9
Gross profit
$
530.7
$
489.6
$
453.4
$
451.2
$
418.8
Operating income
$
80.5
$
68.7
$
73.6
$
83.6
$
94.2
Net income
$
54.4
$
42.6
$
46.2
$
52.8
$
69.5
Per Share Amounts
:
Net income
—
diluted
$
1.47
$
1.13
$
1.24
$
1.40
$
1.84
Weighted average common shares
—
diluted
37.1
37.6
37.3
37.7
37.8
Cash dividends declared per common share
$
-
$
-
$
.75
$
1.00
$
1.00
Balance Sheet Data
:
Working capital
$
354.7
$
300.9
$
250.1
$
253.1
$
274.4
Total assets
$
889.7
$
894.1
$
816.9
$
702.5
$
677.6
Long
-
term debt, excluding current portion
$
7.1
$
7.4
$
1.2
$
1.4
$
.3
Shareholders
’
equity
$
454.3
$
409.3
$
364.7
$
334.0
$
335.8
17