CompUSA 2012 Annual Report Download - page 20

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, excluding discontinued operations, for fiscal years 2012, 2011 and
2010 and the selected balance sheet data as of December 2012 and 2011 are derived from the audited consolidated financial statements which are
included elsewhere in this report. The selected balance sheet data as of December 2010, 2009 and 2008 and the selected statement of operations
data for fiscal years 2009 and 2008 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 89%, 91% and 93% of our net
sales in 2012, 2011 and 2010, respectively.
The Company conducted an evaluation of its Technology Products multi-
brand United States consumer strategy and the intangible assets used in
that strategy and concluded that the Company’
s future North American consumer business would be optimized by consolidating its United States
consumer operations under TigerDirect, its leading and largest brand. This consolidation was effected in the fourth quarter of 2012 resulting in a
write off of the intangible assets and goodwill of CompUSA and Circuit City of approximately $35.3 million.
The Company exited the PC manufacturing operations during the fourth quarter of 2012 after conducting an evaluation of its operations and
concluded that the Company’s North American technology results will be enhanced by exiting the computer manufacturing business. The exit
resulted in a fourth quarter of 2012 asset write down of the carrying cost of the Company’s computer manufacturing facilities, related equipment
and inventory of approximately $4.6 million.
The Company is opening a shared services center in Budapest, Hungary in 2013 to facilitate the continued growth of its European Technology
Products business. This new facility will provide certain administrative and back office services for the existing European business, will help
drive operational efficiencies and better serve the Company’s pan-European operating strategy, and will serve as the sales location for future
business in Eastern Europe. Exit, severance and start up costs to implement the facility together with other cost reduction initiatives in Europe,
aggregated to $4.7 million in the fourth quarter of 2012.
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 11%, 9% and 7% of our net sales in 2012, 2011 and 2010,
respectively. In both of these product groups, we offer our customers a broad selection of products, prompt order fulfillment and extensive
customer service.
Table of Contents
Years Ended December 31,
(In millions, except per share data)
2012
2011
2010
2009
2008
Statement of Operations Data
:
Net sales
$
3,544.6
$
3,680.6
$
3,589.1
$
3,163.0
$
3,031.2
Gross profit
$
488.1
$
530.5
$
489.5
$
453.4
$
456.3
Operating (loss) income from continuing operations
$
(39.9
)
$
80.8
$
68.8
$
80.1
$
101.6
Net income from continuing operations
$
(8.0
)
$
54.6
$
42.6
$
49.2
$
77.3
Per Share Amounts
:
Net income (loss)
—
diluted
$
(0.22
)
$
1.47
$
1.13
$
1.32
$
2.05
Weighted average common shares
—
diluted
36.9
37.1
37.6
37.3
37.7
Cash dividends declared per common share
$
0.25
$
-
$
-
$
0.75
$
1.00
Balance Sheet Data
:
Working capital
$
360.8
$
354.8
$
300.9
$
250.1
$
253.1
Total assets
$
962.3
$
889.7
$
894.1
$
816.9
$
702.5
Long
-
term debt, excluding current portion
$
5.3
$
7.1
$
7.4
$
1.2
$
1.4
Shareholders
’
equity
$
446.3
$
454.3
$
409.3
$
364.7
$
334.0
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