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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
JUNE 26, 1999
COMPUSA INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-11566 75-2261497
(STATE OR OTHER (COMMISSION IRS EMPLOYER
JURISDICTION OF FILE NUMBER) IDENTIFICATION NO.)
INCORPORATION)
14951 NORTH DALLAS PARKWAY, DALLAS, TEXAS 75240
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (972) 982-4000
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ITEM 5. OTHER EVENTS
The Registrant is filing certain unaudited supplemental quarterly
financial and operating data with respect to its results of operations for the
fiscal year ended June 26, 1999 ("Fiscal 1999"). Such unaudited supplemental
quarterly financial and operating data has been derived from the audited
consolidated financial statements of CompUSA Inc. (the "Company") for Fiscal
1999 to present (1) the results of operations of the Company's "core" operations
and (2) the consolidated results of operations of the Company's business
segments. These financial statements should be read in conjunction with the
Company's Annual Report on Form 10-K/A for Fiscal 1999 previously filed with the
Securities and Exchange Commission.
"CORE" OPERATING DATA
The Company's core operations consist of its retail, direct, and all
other sales operations. The financial and operating data presented herein with
respect to the Company's "core" operations exclude the non-recurring and
restructuring charges recorded by the Company in Fiscal 1999 in connection with
the Fiscal 1999 Initiatives, as more fully described in the Company's Annual
Report on Form 10-K/A for Fiscal 1999, as previously filed with the Securities
and Exchange Commission, as well as the results of operations of the Company's
wholly-owned subsidiary, CompUSA Net.com Inc. and its predecessor. In October
1999, the Company transferred CompUSA Net.com's Internet business to cozone.com
l.l.c., an indirect subsidiary of the Company. Another indirect subsidiary,
cozone.com inc., is the sole manager of cozone.com l.l.c.
The following table sets forth selected financial and operating data
for Fiscal 1999 for the Company's "core" operations:
<TABLE>
<CAPTION>
FIRST SECOND THIRD FOURTH FISCAL
QUARTER QUARTER QUARTER QUARTER YEAR
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(IN THOUSANDS, EXCEPT PER SHARE DATA AND SELECTED OPERATING DATA)
<S> <C> <C> <C> <C> <C>
SELECTED FINANCIAL DATA:
Net sales.................................. $ 1,314,124 $ 1,671,594 $1,604,700 $ 1,406,499 $ 5,996,917
Cost of sales and occupancy costs.......... 1,127,489 1,444,090 1,395,077 1,219,152 5,185,808
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Gross profit............................ 186,635 227,504 209,623 187,347 811,109
Operating expenses......................... 138,670 161,705 162,200 159,906 622,481
Pre-opening expenses....................... 1,366 2,095 392 608 4,461
General and administrative expenses........ 31,553 35,107 42,804 38,227 147,691
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Operating income (loss)................. 15,046 28,597 4,227 (11,394) 36,476
Other expense (income):
Interest expense........................ 4,365 6,972 7,167 7,290 25,794
Other income, net....................... (1,540) (3,504) (1,828) (1,319) (8,191)
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2,825 3,468 5,339 5,971 17,603
Income (loss) before income taxes.......... 12,221 25,129 (1,112) (17,365) 18,873
Income tax expense (benefit)............... 4,707 9,726 (554) (7,340) 6,539
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Net income (loss).......................... $ 7,514 $ 15,403 $ (558) $ (10,025) $ 12,334
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Basic earnings (loss) per share............ $ 0.08 $ 0.17 $ (0.01) $ (0.11) $ 0.13
Diluted earnings (loss) per share.......... $ 0.08 $ 0.17 $ (0.01) $ (0.11) $ 0.13
Weighted average common shares............. 91,243 91,408 91,553 91,755 91,490
Weighted average common shares assuming
dilution................................ 93,041 92,834 91,553 91,755 92,667
SELECTED OPERATING DATA:
Average net sales per gross square foot.... $ 278 $ 305 $ 291 $ 252 $ 1,126
Average net sales per Computer Superstore.. $ 7,484 $ 8,017 $ 7,631 $ 6,643 $ 29,775
Comparable store sales increase
(decrease)(1)........................... (2.7%) (4.4%) (8.8%) 2.6% (3.8%)
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Note on following page.
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NOTE FROM PRECEDING PAGE.
(1) Comparable store sales are net retail sales for the Computer Superstores
open the same number of months in both the indicated and previous periods,
including stores that were relocated or expanded during either period.
Beginning with the first quarter of fiscal 2000, the calculation of the
change in comparable store sales was changed to include only the net
retail sales of products and services through the Company's Computer
Superstores. As a result of the centralization of the Company's direct
sales organization and the outsourcing of its direct sales fulfillment
and configuration operations, direct sales to corporate, government, and
education customers are no longer included in the comparable store sales
calculation. The calculation of the change in comparable store sales for
the periods presented above has been restated to include only the net
retail sales of products and services generated from the Company's
Computer Superstores.
The following is a reconciliation of the net income (loss) of the
Company's "core" operations for Fiscal 1999 to the consolidated net income
(loss) of the Company for Fiscal 1999, as presented in the Company's Annual
Report on Form 10-K/A for Fiscal 1999 previously filed with the Securities and
Exchange Commission:
<TABLE>
<CAPTION>
FIRST SECOND THIRD FOURTH FISCAL
QUARTER QUARTER QUARTER QUARTER YEAR
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(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
CompUSA "core" operations.................. $ 7,514 $ 15,403 $ (558) $ (10,025) $ 12,334
CompUSA Net.com operations................. 340 286 (2,125) (4,966) (6,465)
Fiscal 1999 Initiatives non-recurring
and restructuring charges............... (1,622) (2,820) (3,940) (50,501) (58,883)
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Consolidated net income (loss)............. $ 6,232 $ 12,869 $ (6,623) $ (65,492) $ (53,014)
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</TABLE>
SEGMENT DATA
For a description of the Company's business segments, please refer to
Note 16 of Notes to Consolidated Financial Statements in the Company's Annual
Report on Form 10-K/A for Fiscal 1999 previously filed with the Securities and
Exchange Commission.
The following tables set forth selected financial data for Fiscal 1999
for the Company's business segments:
<TABLE>
<CAPTION>
FIRST SECOND THIRD FOURTH FISCAL
QUARTER QUARTER QUARTER QUARTER YEAR
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(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
NET SALES:
Retail.................................. $ 858,359 $ 1,199,764 $1,133,436 $ 936,145 $ 4,127,704
Direct.................................. 457,475 475,645 475,203 474,556 1,882,879
CompUSA PC.............................. 29,028 22,627 30,688 36,679 119,022
CompUSA Net.com......................... 61,315 82,182 67,779 40,325 251,601
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1,406,177 1,780,218 1,707,106 1,487,705 6,381,206
Intersegment sales...................... (30,738) (26,442) (34,627) (40,881) (132,688)
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$ 1,375,439 $ 1,753,776 $1,672,479 $ 1,446,824 $ 6,248,518
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OPERATING INCOME (LOSS):
Retail.................................. $ 42,708 $ 62,839 $ 50,627 $ 35,489 $ 191,663
Direct.................................. 5,436 2,183 (2,724) (7,811) (2,916)
CompUSA PC.............................. (1,545) (1,318) (869) (872) (4,604)
CompUSA Net.com......................... 1,581 1,680 (1,745) (5,105) (3,589)
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48,180 65,384 45,289 21,701 180,554
Unallocated:
General and administrative expenses,
excluding non-recurring and
restructuring charges.............. (32,591) (36,342) (44,315) (40,568) (153,816)
Non-recurring and restructuring
charges............................ (2,640) (4,587) (6,399) (78,956) (92,582)
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$ 12,949 $ 24,455 $ (5,425) $ (97,823) $ (65,844)
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</TABLE>
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CompUSA Inc.
Date: January 6, 2000 By: /s/ JAMES E. SKINNER
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James E. Skinner
Executive Vice President,
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
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