This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SED International Holdings Reports Fiscal Year 2012 And Fourth Quarter Financial Results

Stocks in this article: SED

SED International Holdings, Inc. (Amex: SED), a multinational supply chain management provider and distributor of leading computer technology, consumer electronics, housewares, small appliances and personal care products, today announced financial results for the Company’s fourth quarter and fiscal year ended June 30, 2012.

Fiscal Year 2012 Financial Results, Year-over-year Comparisons:

  • Net sales for the fiscal year ended June 30, 2012 was $577.3 million, compared to $607.0 million for the fiscal year ended June 30, 2011, the decrease was due in large part to weakened technology and consumer electronics demand and an industry-wide disk drive shortage related to flooding in Thailand.
  • Gross margin increased to 6.3%, compared to 5.2% in the prior year. The increased gross profit percent is attributable to higher than normal sales prices on hard drives due to inventory supply constraints and an increase in higher margin housewares, small appliances and personal care sales.
  • Operating income was $1.8 million compared to $4.8 million for the prior year period. Total operating expenses were $34.9 million for the fiscal year ended June 30, 2012 compared to $26.8 million for the fiscal year ended June 30, 2011. Net income was $1.4 million or $0.29 income per basic and diluted share, compared to net income of $3.1 million, or $0.68 per basic and $0.63 per fully diluted share in the prior year period. Items impacting net income included: approximately $1.2 million in net loss related to the acquisition costs of certain Lehrhoff & Co. assets and its related operating loss; devaluation of approximately $0.6 million for foreign exchange losses related to Latin America; and employee separation costs of approximately $0.4 million.
  • EBITDA was $2.9 million compared to $5.6 million in the prior year.
  • The Company generated $8.0 million in operating cash flow for fiscal 2012, compared to cash used by operations of $16.3 million in the prior year period. Cash and cash equivalents were $4.7 million for fiscal year end 2012 and $4.8 million for 2011. Borrowings outstanding under SED’s revolving credit lines were $36.9 million at year ended June 30, 2012 compared with $38.4 million as of June 30, 2011.
  • Return on Invested Capital, or “ROIC”, for the 2012 fiscal year was 3.2%, compared with 6.6% in the 2011 fiscal year. SED’s ROIC metric is calculated on an annualized basis using operating income divided by an average of quarter-end stockholder’s equity and debt, net of cash.
  • Shareholders’ equity at the end of the year was $24.4 million, or $4.98 per diluted share.

“We are disappointed in our bottom-line results for the 2012 fiscal year and are undertaking several initiatives, including a transformation of certain elements of our business model, to deliver stronger results in 2013 and beyond,” said Jonathan Elster, President and Chief Executive Officer of SED International. “In the past year, our PC and Consumer Electronics business was challenged by weakened demand, while long-term investments in our business and devaluation of the peso in Latin America had additional negative impact on earnings.”

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs