CompUSA 2014 Annual Report Download - page 24

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 2014, 2013 and
2012 and the selected balance sheet data as of December 2014 and 2013 are derived from the audited consolidated financial statements which are
included elsewhere in this report. The selected balance sheet data as of December 2012, 2011 and 2010 and the selected statement of operations
data for fiscal years 2011 and 2010 are derived from the audited consolidated financial statements of the Company which are not included in this
report.
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.
Technology Products
Our Technology Products segment primarily sells ICT and CE products. These products are marketed in North America, Puerto Rico and
Europe. Most of these products are manufactured by other companies; however, the Company does offer a selection of products that are
manufactured for our own design and marketed on a private label basis. Technology products accounted for 84%, 86% and 89% of our net sales
in 2014, 2013 and 2012, respectively.
On March 10, 2015 the Company announced that its Technology Products business segment would be exiting the retail store business in order to
accelerate its focus on its business to business (“B2B”) operations. This exit plan includes the closing of substantially all of its retail stores
,
closing a distribution center ,
and implementing a general workforce reduction to align available resources with a B2B focus as well as
transitioning retail customers to online consumer sales. The Company has engaged outside firms to assist with the retail store liquidation, as
well as the workforce reduction, and anticipates that all of these actions will be completed by the end of the second quarter of 2015. The
Company anticipates that one time exit charges will aggregate between $50 and $55 million (including approximately $4 million of severance
expenses, and $39 million in lease exit costs) substantially all of which will require cash expenditures. The Company expects these costs to be
paid out beginning in the first quarter of 2015 through the end of 2017
. After completion of these actions the Company will see a significant
decline in retail revenues, however the Company expects to realize improved profitability of between $18 and $22 million.
As a result of negative cash flows in its operations in the United States and Canada in 2014,
and a forecast for continued use of cash in future
periods, the Company conducted an evaluation of the long-lived and other
intangible assets in those operations and concluded that those assets
were impaired. Accordingly an impairment charge of approximately $ 10.0 million, pre-tax, was recorded in the fourth quarter of 2014.
21
Table of Contents
Item 6.
Selected Financial Data.
Years Ended December 31,
(In millions, except per share data)
2014
2013
2012
2011
2010
Statement of Operations Data:
Net sales
$
3,442.8
$
3,352.3
$
3,544.3
$
3,680.6
$
3,589.0
Gross profit
$
493.2
$
482.9
$
485.8
$
527.6
$
488.0
Operating income (loss) from continuing operations
$
(25.9
)
$
(20.6
)
$
(39.9
)
$
80.8
$
68.8
Net income (loss) from continuing operations
$
(37.5
)
$
(43.8
)
$
(8.0
)
$
54.6
$
42.6
Per Share Amounts
:
Net income (loss)
—
diluted
$
(1.01
)
$
(1.18
)
$
(0.22
)
$
1.47
$
1.13
Weighted average common shares
—
diluted
37.1
37.0
36.9
37.1
37.6
Cash dividends declared per common share
$
-
$
-
$
0.25
$
-
$
-
Balance Sheet Data:
Working capital
$
312.1
$
345.8
$
360.8
$
354.8
$
300.9
Total assets
$
894.9
$
942.2
$
962.3
$
889.7
$
894.1
Long
-
term debt, excluding current portion
$
0.9
$
2.9
$
5.4
$
7.1
$
7.4
Shareholders
’
equity
$
359.6
$
406.2
$
446.3
$
454.3
$
409.3
Item 7.
Management
’
s Discussion and Analysis of Financial Condition and Results of Operations.