CompUSA 2011 Annual Report Download - page 25

Results of Operations
Key Performance Indicators (in millions):
*includes special (gains) charges. See Note 8 of Notes to Consolidated Financial Statements.
NET SALES
SEGMENTS:
The Technology Products net sales increase is attributable to the effect of currency movements and improved business to business sales offset by
decreased consumer channel sales. On a constant currency basis, sales declined 1.0% or $33.5 million. This decline is due to lower sales in certain
geographies, primarily North America and certain channels, primarily unassisted consumer web and television shopping.
The Industrial Products net sales increase in 2011 is attributable to more products offered on the Company’s websites and the addition of sales
personnel.
GEOGRAPHIES:
The North American sales increase resulted primarily from the Industrial Products segment’s additional new product lines partially offset by declining
consumer sales in the Technology Products segment. On a constant currency basis, North American sales would have grown 1.2%. The movement in
foreign exchange rates positively impacted sales by approximately $9.0 million.
The European sales increase resulted primarily from an increase in business to business sales. On a constant currency basis, European sales would have
increased 0.7%. Movement in foreign exchange rates positively impacted sales by approximately $45.6 million.
Table of Contents
Years Ended December 31,
2011
2010
%
Change
2010
2009
%
Change
Net sales by segment:
Technology products
$
3,358.7
$
3,337.7
0.6
%
$
3,337.7
$
2,966.7
12.5
%
Industrial products
319.9
250.0
28.0
%
250.0
196.1
27.5
%
Corporate and other
3.4
2.3
47.8
%
2.3
3.2
(28.1
)%
Consolidated net sales
$
3,682.0
$
3,590.0
2.6
%
$
3,590.0
$
3,166.0
13.4
%
Net sales by geography:
North America
$
2,582.2
$
2,543.0
1.5
%
$
2,543.0
$
2,317.5
9.7
%
Europe
1,099.8
1,047.0
5.0
%
1,047.0
848.5
23.4
%
Consolidated net sales
$
3,682.0
$
3,590.0
2.6
%
$
3,590.0
$
3,166.0
13.4
%
Net sales by channel:
Business to business
$
1,985.2
$
1,770.2
12.1
%
$
1,770.2
$
1,401.5
26.3
%
Consumer
1,696.8
1,819.8
(6.8
)%
1,819.8
1,764.5
3.1
%
Consolidated net sales
$
3,682.0
$
3,590.0
2.6
$
3,590.0
$
3,166.0
13.4
%
Consolidated gross margin
14.4
%
13.6
%
0.8
%
13.6
%
14.3
%
(0.7
)%
Consolidated SG&A costs*
$
450.1
$
420.9
6.9
%
$
420.9
$
379.7
10.9
%
Consolidated SG&A
costs* as % of sales
12.2
%
11.7
%
0.5
%
11.7
%
12.0
%
(0.3
)%
Operating income (loss) by segment:
Technology products
$
68.0
$
65.0
4.6
%
$
65.0
$
88.6
(26.6
)%
Industrial products
34.6
23.8
45.4
%
23.8
15.4
54.5
%
Corporate and other
(22.1
)
(20.1
)
10.0
%
(20.1
)
(30.4
)
(33.9
)%
Consolidated operating income
$
80.5
$
68.7
17.2
%
$
68.7
$
73.6
(6.7
)%
Operating margin by segment
:
Technology products
2.0
%
1.9
%
0.1
%
1.9
%
3.0
%
(1.1
)%
Industrial products
10.8
%
9.5
%
1.3
%
9.5
%
7.9
%
1.6
%
Consolidated operating margin
2.2
%
1.9
%
0.3
%
1.9
%
2.3
%
(0.4
)%
Effective income tax rate
30.9
%
35.6
%
(4.7
)%
35.6
%
36.8
%
(1.2
)%
Net income
$
54.4
$
42.6
27.7
%
$
42.6
$
46.2
(7.8
)%
Net margin
1.5
%
1.2
%
0.3
%
1.2
%
1.5
%
(0.3
)%
23