Fiscal Year 2011 and Recent Corporate Highlights
- Began trading on the NYSE Amex under the ticker symbol “SED” on March 1, 2011.
- Expanded and relocated Atlanta, GA area distribution center and corporate headquarters to meet capacity demands of growing business.
- Approved an additional $1.3 million for purchases under its stock repurchase program under which 410,307 shares of SED were repurchased in fiscal year 2011. This authorization brings the aggregate dollar amount authorized by SED’s Board of Directors to more than $1.5 million since the inception of the repurchase plan in August 2009, under which SED has repurchased a total of 461,915 shares at an average cost of $3.74 as of June 30, 2011.
- Acquired certain assets of ArchBrook Laguna LLC and subsidiary Lehrhoff & Co., Inc. to expand higher margin small appliances business, add a Northeast U.S. distribution center for both Lehrhoff and SED products, and enhance business in other areas of its operations.
In total in fiscal 2011, SED broadened its vendor scope with the
addition of new vendors in key line-card categories including:
- Significant expansion of computer product lines with Lenovo PC, ASUS motherboard, and several new tablet lines;
- Boosted consumer electronics business with addition of new strategic partnership agreements to distribute Polaroid, Pinnacle Speakers, and additional Canon products; and
- Enhanced Latin American offerings, highlighted by the additions of Acer Latin America and LG monitors, projectors and optical drives; and higher margin accessory lines, such as Intec batteries, Eaton electrical components, and Level One electronics products.
- Appointed new Chief Financial Officer Stan Baumgartner, a seasoned financial executive with an extensive Fortune 500 background.
- Strengthened executive team with key industry veteran appointments to support strategic growth initiatives in the U.S. and Latin America: Eddie Lageyre to Senior Vice President, U.S. Purchasing, Ronell Rivera to Senior Vice President for Latin America, and Mauricio Arcila to General Manager of SED Colombia.
“In fiscal 2011 we strengthened our operations, and progressed our strategic and financial objectives demonstrating a 64% annual increase in net income, on a normalized basis, and 12% annual revenue growth,” Elster continued. “There remains tremendous growth opportunity for SED in both the U.S. and Latin America where we can continue to expand our business while executing expense control, margin improvement and inventory management. The recent acquisition of assets from the established ArchBrook Laguna/Lehrhoff business positions SED in small appliances, expands sales to both new as well as existing SED customers, and also provides a Northeast U.S. hub to increase total SED sales. Opportunity to expand our sales across our business segments and strengthen our foothold in key geographies will provide the foundation for SED’s continued growth and accelerated profitability.”
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