Tech Data 2013 Annual Report Download - page 28

Table of Contents
The following table sets forth our Consolidated Statement of Income as a percentage of net sales for each of the three most recent fiscal years:
Net Sales
Our consolidated net sales were $25.4 billion in fiscal 2013, a decrease of 1.1% when compared to fiscal 2012. The weakening of certain foreign
currencies against the U.S. dollar negatively impacted the year-over-year net sales comparison by approximately four percentage points. On a
regional basis, during fiscal 2013, net sales in the Americas decreased by 5.6% compared to fiscal 2012 and increased by 1.9% in Europe (an
increase of 9.3% on a euro basis). Fiscal 2013 net sales includes $617.4 million of net sales from SDG, which we acquired on November 1, 2012.
Included in fiscal 2012, are net sales of approximately $273.8 million related to the in-country operations of Brazil and Colombia, which we exited
at the end of fiscal 2012. We continue to serve both the Brazilian and Colombian markets through our Miami-based export business. Excluding the
net sales of SDG, the closure of our in-country operations in Brazil and Colombia and the negative impact of the weakening of certain foreign
currencies against the U.S. dollar in fiscal 2013, consolidated net sales increased by approximately two percent in comparison with the same period
of the prior fiscal year. The increase in net sales was primarily attributable to increased sales volume in tablets, our European mobile business, and
software, partially offset by the negative impact of general market conditions in the Americas and the loss of some market share in the U.S.
following the implementation of certain SAP modules during the second quarter of the fiscal year. During fiscal 2013, we experienced strong sales
performance in certain European markets, including the U.K., Germany, and France.
Our consolidated net sales were $25.6 billion in fiscal 2012, an increase of 8.6% when compared to fiscal 2011. The strengthening of certain
foreign currencies against the U.S. dollar positively impacted the year-over-
year net sales comparison by approximately three percentage points. On
a regional basis, during fiscal 2012, net sales in the Americas increased by 3.1% compared to fiscal 2011 and increased by 12.7% in Europe (an
increase of 7.7% on a euro basis). Throughout fiscal 2012, we were impacted by an overall slowing of the IT market and a challenging macro
economic environment within certain European countries. Despite these factors, net sales in both the Americas and Europe regions increased during
fiscal 2012 compared to fiscal 2011 primarily as a result of the flexibility of our business model to successfully navigate the changing IT market.
The increase in net sales in the Americas during fiscal 2012 was primarily attributable to a generally stable demand for technology products in the
region in comparison to the prior fiscal year, offset by the impact of lower sales in Brazil and Colombia during fiscal 2012 as a result of our
decision to close both of these operations. The reduction in net sales in Brazil and Colombia negatively impacted the Americas growth rate in fiscal
2012 by approximately one percentage point. The increase in net sales in Europe (on a euro basis) during fiscal 2012 was primarily attributable to
our acquisitions of Triade Holding B.V.’s (“Triade”) mobility, consumer electronics and IT distribution businesses in October 2010 and continued
demand in the European commercial sector and for mobility products in the region compared to the prior fiscal year. While difficult to quantify due
to the integration of certain components of the acquisition into our operations, we believe the fiscal 2011 Triade acquisitions contributed
approximately four percentage points to our European growth rates during fiscal 2012, on a euro basis. During fiscal 2012, we experienced lower
European demand for IT products in certain geographies resulting from weak economies in countries such as Spain and Portugal. This lower
demand,
25
2013 2012 2011
Net sales
100.00
%
100.00
%
100.00
%
Cost of products sold
94.86
94.63
94.59
Gross profit
5.14
5.37
5.41
Operating expenses:
Selling, general and administrative expenses
3.98
4.07
4.05
Loss on disposal of subsidiaries
0.00
0.11
0.00
Value added tax assessment
0.12
0.00
0.00
4.10
4.18
4.05
Operating income
1.04
1.19
1.36
Interest expense
0.12
0.12
0.13
Other expense/(income), net
0.02
0.01
(0.02
)
Income before income taxes
0.90
1.06
1.25
Provision for income taxes
0.18
0.28
0.35
Consolidated net income
0.72
0.78
0.90
Net income attributable to noncontrolling interest
(0.02
)
(0.04
)
(0.02
)
Net income attributable to shareholders of Tech Data Corporation
0.70
%
0.74
%
0.88
%