CompUSA 2014 Annual Report Download - page 32

Results of Operations
Key Performance Indicators* (in millions):
*excludes discontinued operations
** includes special charges, net (See Note 8 of Notes to Consolidated Financial Statements).
NET SALES
SEGMENTS:
The Technology Products segment, which includes our European and North American technology operations, showed sales improvement,
benefiting from the June 2014 SCC Services acquisition, strong sales growth in France, improved B2B sales from certain markets in Europe and
North America and favorable movements in exchange rates. On a constant currency basis and excluding the SCC Services acquisition,
Technology Products net sales decreased 2.3%. However, sales in our consumer and retail business continued the trend of softness in the North
American consumer channels, principally internet and retail sales. The Company continues to believe the decline in sales and price pressures for
consumer electronics are attributable to a variety of well publicized industry and market trends, including consumer preferences for
new
generation tablets, which erode laptop and desktop PC sales, the market share for tablets held by a major manufacturer, which does not sell to the
Company for U.S. markets, the consolidation of prior generations of separate devices and functions into a single integrated device (such as GPS
and cameras being integrated with smart phones), the ongoing movement of traditional brick and mortar store sales to online/ecommerce
vendors, and the increasing influence of a dominant company in the online/ecommerce marketplace. The Company expects these trends to
continue for the foreseeable future and after an extensive review and planning process, the Company is taking actions that will include the exit of
substantially all retail store operations; closing a distribution center and implementing a general workforce reduction to realign available
resources with a B2B focus.
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Table of Contents
Years Ended December 31,
2014
2013
%
Change
2013
2012
%
Change
Net sales by segment:
Technology Products
$
2,880.9
$
2,873.3
0.3
%
$
2,873.3
$
3,137.6
(8.4
)%
Industrial Products
556.0
473.8
17.3
%
473.8
401.9
17.9
%
Corporate and other
5.9
5.2
13.5
%
5.2
4.8
8.3
%
Consolidated net sales
$
3,442.8
$
3,352.3
2.7
%
$
3,352.3
$
3,544.3
(5.4
)%
Net sales by channel:
Technology Products
-
EMEA
$
1,189.9
$
1,095.4
8.6
%
$
1,095.4
$
1,126.7
(2.8
)%
Technology Products
–
NA (B2B)
800.0
769.3
4.0
%
769.3
797.3
(3.5
)%
Industrial Products
556.0
473.8
17.3
%
473.8
401.9
17.9
%
Corporate and other
5.9
5.2
13.5
%
5.2
4.8
8.3
%
Total B2B
$
2,551.8
$
2,343.7
8.9
%
$
2,343.7
$
2,330.7
0.6
%
Technology Products –
NA (Consumer)
891.0
1,008.6
(11.7
)%
1,008.6
1,213.6
(16.9
)%
Consolidated net sales
$
3,442.8
$
3,352.3
2.7
%
$
3,352.3
$
3,544.3
(5.4
)%
Consolidated gross margin
14.3
%
14.4
%
(0.1
)%
14.4
%
13.7
%
0.7
%
Consolidated SG&A costs**
$
519.1
$
503.5
3.1
%
$
503.5
$
525.7
(4.2
)%
Consolidated SG&A costs** as % of
sales
15.1
%
15.0
%
0.1
%
15.0
%
14.8
%
0.2
%
Operating (loss) from continuing
operations by segment:**
Technology Products
$
(51.3
)
$
(40.6
)
26.4
%
$
(40.6
)
$
(46.9
)
(13.4
)%
Industrial Products
41.0
40.0
2.5
%
40.0
29.9
33.8
%
Corporate and other
(15.6
)
(20.0
)
(22.0
)%
(20.0
)
(22.9
)
(12.7
)%
Consolidated operating (loss)
$
(25.9
)
$
(20.6
)
(25.7
)%
$
(20.6
)
$
(39.9
)
(48.4
)%
Operating margin from continuing
operations by segment
:**
Technology Products
(1.8
)%
(1.4
)%
(0.4
)%
(1.4
)%
(1.5
)%
0.1
%
Industrial Products
7.4
%
8.4
%
(1.0
)%
8.4
%
7.4
%
1.0
%
Consolidated operating margin from
continuing operations
(0.8
)%
(0.6
)%
(0.2
)%
(0.6
)%
(1.1
)%
0.5
%
Effective income tax rate
15.0
%
100.9
%
(85.9
)%
100.9
%
80.8
%
20.1
%
Net (loss) from continuing operations
$
(37.5
)
$
(43.8
)
(14.4
)%
$
(43.8
)
$
(8.0
)
447.5
%
Net margin from continuing operations
(1.1
)%
(1.3
)%
0.2
%
(1.3
)%
(0.2
)%
(1.1
)%