MicroAge, Inc. is a leading franchiser of computer stores and distributor of microcomputer systems. The company is headquartered in Tempe, Arizona, incorporated in Delaware, and has a growing international network of outlets specializing in the sale, support and servicing of various office information and automation products. MicroAge distributes microcomputers, workstations, peripherals and software. The MicroAge Computer Store Network specializes in the sale, support and servicing of information technology products, consisting primarily of standalone and multi-user microcomputer systems and software, networking and telecommunications equipment and related services for business applications.
As of September 1992, MicroAge had 1,245 locations in operation, consisting of 585 domestic franchises, 167 international franchises, six company-owned locations and 487 affiliated resellers. These stores provide products and services to businesses of all sizes. Sales to large national business are developed through the combined efforts of company-owned sales locations, franchised locations and the company's National Accounts division.
The company's initial public stock offering was in 1987 when 1,150,000 common shares were issued at $10.625 per share. The company does not pay a cash dividend, and is prohibited from paying any dividend under its credit agreements without the bank's consent.
As illustrated by the following chart, the company's sales have risen steadily since 1988, while the earnings per share has been mixed. The chart is plotted on a logarithmic scale so that percentage changes can be illustrated.
The poor performance of earnings per share against the continued increase in sales suggests that the company has had difficulty in managing its resources. However, earnings have risen sharply during fiscal 1993, due in large part to increased sales to large accounts and at existing locations. Strict inventory and e...