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0.00
Jan-94


Mar-94


May-94


Jul-94


Sep-94


Nov-94


Jan-95


Mar-95


May-95


Jul-95


Sep-95


Nov-95


Jan-96


Mar-96


May-96


Jul-96


Sep-96
Data as of 9/30/96:
Beta 1.25
1-Year T-Bill 5.68%
10-Year T-Note 6.70%
CompUSA price $54.00
S&P 500 level 687.31
Source: Datastream International.
872 Case: CompUSA




142 Part 4 Additional Cases




EXHIBIT 2
Retail Statistics

COMPUTER SUPERSTORE MARKET SHARE

1995A 1996E 1997E 1998E 1999E CAGR
......................................................................................................................................
Computer Superstores $7.0 $10.0 $13.9 $17.3 $20.7 31.0%

Market Share 10.9% 12.5% 14.1% 15.1% 15.8%

Total Reseller Market $64.3 $80.2 $98.5 $114.5 $131.1 20.0%
......................................................................................................................................
Source: Merrin Information Services, Inc.
CompUSA




TOP TEN U.S. PC PRODUCT RETAILERS ($ millions)

Estimated PC Product
Ranking Retailer Revenue for 1995
......................................................................................
1 CompUSA $3,136
2 Best Buy $2,525
3 Computer City $1,801
4 Of¬ce Depot $1,275
5 Circuit City $1,270
6 Micro Center $975
7 Egghead $802
8 Sears $775
9 Of¬ce Max $636
10 Staples $625
......................................................................................
Source: Merrin Information Services.
873
Case: CompUSA




143
Part 4 Additional Cases




EXHIBIT 3
CompUSA Revenue and Profitability by Group for 1994“1998

(¬scal years ending June 30; in $ millions) 1994 1995 1996E 1997E 1998E
.........................................................................................................................................
Estimated Sales
Retail sales
Hardware $1,014 $1,262 $1,505 $1,919 $2,371
Software 275 359 449 596 766
Accessories/peripherals 159 221 292 392 511
Total retail sales $1,448 $1,843 $2,246 $2,907 $3,648

Corporate $279 $366 $453 $552 $683
Government and education 204 270 364 432 527
Mail order 150 225 335 469 608
Training 19 34 53 78 110




CompUSA
Technical services 24 39 57 83 116
Export 4 11 18 23 29
Warranties 17 25 39 55 69
Total $2,146 $2,813 $3,565 $4,600 $5,790

Percentage Analysis
Retail sales
Hardware 70.0% 68.5% 67.0% 66.0% 65.0%
Software 19.0 19.5 20.0 20.5 21.0
Accessories/peripherals 11.0 12.0 13.0 13.5 14.0
Total retail sales 100.0% 100.0% 100.0% 100.0% 100.0%

Retail as a % of total sales 67.5% 65.5% 63.0% 63.2% 63.0%
Corporate 13.0 13.0 12.7 12.0 11.8
Government and education 9.5 9.6 10.2 9.4 9.1
Mail order 7.0 8.0 9.4 10.2 10.5
Training 0.9 1.2 1.5 1.7 1.9
Technical services 1.1 1.4 1.6 1.8 2.0
Export 0.2 0.4 0.5 0.5 0.5
Warranties 0.8 0.9 1.1 1.2 1.2
Total 100.0% 100.0% 100.0% 100.0% 100.0%

Estimated Gross Margin
Total retail sales 10.9% 11.0% 11.9% 11.9% 11.8%
Corporate 7.7 7.6 8.0 8.0 8.0
Government and education 9.0 8.6 9.0 9.0 9.0
Mail order 10.0 10.0 10.3 10.0 9.7
Training 100.0 100.0 100.0 100.0 100.0
Technical services 60.0 60.0 60.0 60.0 60.0
Export 11.5 11.5 11.5 11.5 11.5
Warranties 60.0 60.0 60.0 60.0 60.0

Consolidated Gross Margin 12.0% 12.4% 13.6% 13.9% 14.1%
.........................................................................................................................................
Source: Gerard Klauer Mattison & C0., LLC estimates and corporate reports.
874 Case: CompUSA




144 Part 4 Additional Cases




EXHIBIT 3
CompUSA Revenue and Profitability by Group for 1994“1998 (continued)

(¬scal years ending June 30; in $ millions) 1994 1995 1996E 1997E 1998E
..............................................................................................................................................
Estimated Gross Pro¬t
Total retail sales $158 $203 $267 $345 $431
Corporate 21 28 36 44 54
Government and education 18 23 33 39 47
Mail order 15 23 34 47 59
Training 19 34 53 78 110
Technical services 14 24 34 50 69
Export 0 1 2 3 3
Warranties 10 15 24 33 42
Total gross pro¬t $257 $350 $484 $639 $816
CompUSA




As a Percent of Total Gross Pro¬t
Total retail sales 61.5% 57.9% 55.2% 54.0% 52.8%
Corporate 8.3 7.9 7.5 6.9 6.7
Government and education 7.1 6.6 6.8 6.1 5.8
Mail order 5.8 6.4 7.1 7.3 7.2
Training 7.5 9.6 11.0 12.2 13.5
Technical services 5.5 6.7 7.1 7.8 8.5
Export 0.2 0.4 0.4 0.4 0.4
Warranties 4.0 4.3 4.9 5.2 5.1
Total 100.0% 100.0% 100.0% 100.0% 100.0%
..............................................................................................................................................
Source: Gerard Klauer Mattison & Co., LLC estimates and corporate reports.
Note: Numbers may not add up to totals due to rounding.
875
Case: CompUSA




145
Part 4 Additional Cases




EXHIBIT 4
CompUSA, 1996 Abridged Annual Report

TO OUR STOCKHOLDERS:

1996 was a remarkable, exciting and gratifying year for CompUSA Inc. It was a year
punctuated by record sales and earnings, the addition of almost 600,000 square feet of
retail store space, the development of new store concepts and marketing channels, and
strategic growth through our acquisition of PCs Compleat, Inc. and our investment in Info-
Source, Inc. On behalf of CompUSA™s directors, of¬cers and more than 11,000 team mem-
bers, whose hard work and dedication made these achievements possible, it is our pleasure
to describe some of the highlights of the most successful year in CompUSA™s history:
• In fiscal 1996, earnings rose 146% to $59.7 million, or $1.31 per share, from $24.3
million, or $0.60 per share, in fiscal 1995. Sales climbed 30% to $3.8 billion from
$2.9 billion. Comparable-store sales, for the 83 stores open one year or more, were




CompUSA
up 12.6% for the year.
• The third quarter marked the first time in CompUSA™s history that we reached $1 bil-
lion in quarterly sales and surpassed a market capitalization of $1 billion.
• During the year we achieved several $100 million sales weeks, and our Computer
Superstore in Orange, Connecticut reported a remarkable $3 million in single-day
sales. Our Computer Superstores in Bloomington, Minnesota and Mesquite and Ad-
dison, Texas also achieved one-day sales over $1 million.
• In September 1995, we sold approximately two million shares of newly issued com-
mon stock that added nearly $77 million of equity to CompUSA™s balance sheet. Pro-
ceeds from the offering were used for store expansion, working capital requirements
and general corporate purposes. The combination of this offering and our strong
sales and earnings growth allowed CompUSA to end the year in the most solid finan-
cial position in the Company™s history.
• As a result of our continuing strong performance and broad acceptance in the finan-
cial markets, the Board of Directors approved a two-for-one stock split in March
1996, which was completed in April 1996, increasing the number of outstanding
shares at that time to approximately 42 million.
• In May 1996, we acquired PCs Compleat, Inc., a leading direct reseller of brand-
name personal computers and peripherals based in Marlborough, Massachusetts, for
approximately three million shares of CompUSA common stock. The addition of PCs
Compleat expands our presence in the direct channel, which is one of the fastest
growing areas in the personal computing industry. The combination of PCs Com-
pleat™s direct mail expertise with CompUSA™s financial and operational strength en-

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