Memorex 2005 Annual Report Download - page 9

1 4 IM ATION ANNUAL REPORT 1 5 IM ATION ANNUAL REPORT
In millions, except employee and per share data.
For the Years Ended December 31, 2005 2004 2003 2002 2001 2000 1999 1998
Statement of Operations Data
Net revenue $ 1,258.1 $ 1,173.7 $ 1,110.6 $ 1,013.6 $ 1,068.3 $ 1,171.3 $ 1,337.2 $ 1,236.4
Gross profi t 302.1 287.8 320.6 313.0 323.5 339.0 408.3 387.6
Selling, general and administrative 146.3 161.5 163.9 173.6 226.5 312.7 280.0 347.0
Research and development 51.3 56.5 56.4 50.5 61.8 64.1 72.5 77.2
Litigation – – (1.0) (6.4) – – – –
Restructuring and other 1.2 25.2 (0.7) (4.0) 48.0 21.8 – (16.6)
Gain on sale of businesses – – (11.1) – (1.9) – – –
Loan impairment – – 4.6 – – – – –
Operating income 103.3 44.6 108.5 99.3 (10.9) (59.6) 55.8 (19.9)
Income (loss) from continuing operations before
cumulative effect of accounting change and
discontinued operations 81.8 36.5 74.9 66.1 (4.6) (8.7) 37.6 (18.2)
Net income (loss) 87.9 29.9 82.0 75.1 (1.7) (4.4) 43.9 57.1
Earnings (loss) per common share from
continuing operations:
Basic 2.41 1.04 2.11 1.89 (0.13) (0.25) 1.01 (0.46)
Diluted 2.36 1.03 2.06 1.86 (0.13) (0.25) 1.00 (0.46)
Net earnings (loss) per common share:
Basic 2.59 0.85 2.31 2.15 (0.05) (0.13) 1.18 1.45
Diluted 2.54 0.84 2.26 2.11 (0.05) (0.13) 1.17 1.45
Number of Shares Outstanding 34.3 33.8 35.5 35.4 35.0 34.6 36.4 39.9
Balance Sheet Data
Working capital $ 643.1 $ 510.8 $ 541.2 $ 532.2 $ 409.7 $ 395.1 $ 414.2 $ 506.7
Cash and other cash investments (1) 507.6 439.6 424.8 474.7 389.8 269.7 194.6 64.2
Inventories 134.9 131.3 159.4 139.0 130.3 141.2 191.3 263.7
Property, plant and equipment, net 195.0 214.4 226.5 181.5 171.2 200.7 212.8 233.8
Total assets 1,146.2 1,110.6 1,172.8 1,119.9 1,053.7 987.6 1,127.6 1,313.3
Long-term debt – – – – – – 1.1 32.7
Total liabilities 290.9 323.8 352.5 381.4 398.0 325.4 402.3 552.2
Total shareholders’ equity 855.3 786.8 820.3 738.5 655.7 662.5 725.3 761.1
Other Information
Current ratio 3.6 2.9 2.8 2.7 2.2 2.4 2.2 2.2
Days sales outstanding (2) 46 45 46 43 48 48 59 77
Days of inventory supply (2) 56 53 71 70 67 63 76 97
Return on average assets (3) 7.2% 3.2% 6.5% 6.1% (0.5)% (0.8)% 3.1% (1.2)%
Return on average equity (3) 10.0% 4.5% 9.6% 9.5% (0.7)% (1.3)% 5.1% (2.5)%
Dividends per common share $ 0.46 $ 0.38 $ 0.24 $ – $ – $ – $ – $ –
Capital expenditures (4) 21.6 35.8 75.1 42.6 47.0 50.5 64.1 132.4
Number of employees 2,100 2,550 2,800 2,800 3,400 4,300 4,850 6,400
Book value per share 24.94 23.28 23.11 20.86 18.73 19.15 19.93 19.08
Debt to equity ratio -% -% -% -% -% -% 0.2% 4.3%
Tax rate 23.3% 16.9% 32.5% 34.7% 60.0% 77.6% 39.0% 41.1%
Operating income as percentage of net revenue 8.2% 3.8% 9.8% 9.8% (1.0% ) (5.1% ) 4.2% (1.6%)
* See Item 7 “ Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Form 10-K for a description of the basis of
presentation of the fi nancial information presented in this table and charts. Net income includes results of discontinued operations. Years prior to 2001 include the results of the
Specialty Papers Business, which was sold on June 30, 2005.
(1) Certain of the Company’s funds are in active cash management and are thus classifi ed in other current assets or other assets depending on remaining maturity.
These amounts included in the above cash and other cash investments represent $24.6 million as of December 31, 2005, $42.5 million as of December 31, 2004,
and $13.4 million as of December 31, 2003.
(2) 1998 excludes the impact of the Medical Imaging Business, which was sold on November 30, 1998. 1999 excludes the impact of the Photo Color Business, which was
sold on August 2, 1999. 2001 excludes the impact of the Color Proofi ng and Color Software Business, which was sold on December 31, 2001. 2002 excludes
the impact of the North American Digital Solutions and Services Business, which was sold on August 30, 2002. 2005 excludes the impact of the Specialty Paper Business,
which was sold on June 30, 2005.
(3) Return percentages are calculated using income (loss) from continuing operations before cumulative effect of accounting change.
(4) Capital expenditures in 1998 include $67.5 million for the purchase of the Company’s research and development facility previously under a synthetic lease.
selected consolidated fi nancial data*pillars of innovation
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