[August 31, 2018] |
|
Ingram Micro Reports Second Quarter Financial Results
Ingram Micro (News - Alert) Inc. today announced financial results for the second
quarter ended June 30, 2018. Ingram Micro experienced strong global
demand, led by growth across all lines of business. Cash flow from
operations for the 2018 second quarter was also strong, improving by
more than $700 million when compared to the second quarter of 2017. The
company generated $580 million in cash flow from operations in the 2018
second quarter, compared to cash usage from operations of $135 million
in the year earlier period. Worldwide 2018 second quarter sales were
$11.80 billion, an increase of 9 percent in USD, with gross margin of
6.53 percent. This compares to sales of $10.83 billion and gross margin
of 6.54 percent in the 2017 second quarter. The translation of foreign
currencies versus last year had a positive impact of approximately 2.5
percentage points on worldwide sales. 2018 second quarter non-GAAP
operating income was $161 million, or 1.36 percent of revenue, and
non-GAAP net income was $94 million. This compares to 2017 second
quarter non-GAAP operating income of $156 million, or 1.44 percent of
revenue, and non-GAAP net income of $93 million. 2018 second quarter
GAAP operating income and net income was $110 million, or 0.93 percent
of revenue, and $67 million, respectively, including: the pre-tax
negative impact of $30 million in restructuring, acquisition and
transition costs primarily related to a global reorganization program
executed during the first quarter of 2018, and the pre-tax negative
impact of $23 million in amortization expense. This compares to 2017
second quarter GAAP operating income and net income of $91 million, or
0.84 percent of revenue, and $45 million, respectively.
Non-GAAP Disclosures
In addition to GAAP results, Ingram Micro is reporting non-GAAP
operating income, non-GAAP operating margin and non-GAAP net income for
the 2018 second quarter and the six months ended June 30, 2018. These
non-GAAP measures exclude charges associated with reorganization,
acquisitions, integration and transition costs, including those
associated with the company's cost savings programs, and the
amortization of intangible assets. These non-GAAP financial measures
also exclude a gain on the sale of affiliates. Non-GAAP net income also
excludes the impact of foreign exchange gains or losses related to the
translation effect on Euro-based inventory purchases in Ingram Micro's
pan-European entity. 2018 second quarter non-GAAP net income excludes a
non-cash tax benefit primarily related to the intercompany sale of
certain intangible assets. 2017 year to date non-GAAP operating income
further excludes merger costs and 2017 non-GAAP net income also excludes
a non-cash tax benefit primarily related to the reversal of a valuation
allowance against certain deferred tax assets in Australia. The non-GAAP
measures noted above are primary indicators that Ingram Micro's
management uses internally to conduct and measure its business and
evaluate the performance of its consolidated operations and operating
segments. Ingram Micro's management believes these non-GAAP financial
measures are useful because they provide meaningful comparisons to prior
periods and an alternate view of the impact of acquired businesses.
These non-GAAP financial measures are used in addition to and in
conjunction with results presented in accordance with GAAP. These
non-GAAP financial measures reflect an additional way of viewing aspects
of our operations that, when viewed with our GAAP results and the
accompanying reconciliations to corresponding GAAP financial measures,
provide a more complete understanding of factors and trends affecting
Ingram Micro's business. A material limitation associated with these
non-GAAP measures as compared to the GAAP measures is that they may not
be comparable to other companies with similarly titled items that
present related measures differently. The non-GAAP measures should be
considered as a supplement to, and not as a substitute for or superior
to, the corresponding measures calculated in accordance with GAAP. A
reconciliation of GAAP to non-GAAP financial measures for the periods
presented is attached to this press release.
About Ingram Micro Inc.
Ingram Micro helps businesses realize the promise of technology™. It
delivers a full spectrum of global technology and supply chain services
to businesses around the world. Deep expertise in technology solutions,
mobility, cloud, and supply chain solutions enables its business
partners to operate efficiently and successfully in the markets they
serve. More at www.ingrammicro.com.
© 2018 Ingram Micro Inc. All rights reserved. Ingram Micro and the
registered Ingram Micro logo are trademarks used under license by Ingram
Micro Inc.
|
|
|
|
|
|
Ingram Micro Inc.
|
Consolidated Balance Sheet
|
(Amounts in 000s)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 30,
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
514,474
|
|
|
$
|
549,558
|
Restricted cash
|
|
|
-
|
|
|
|
14,379
|
Trade accounts receivable, net
|
|
|
6,493,032
|
|
|
|
7,626,191
|
Inventory
|
|
|
4,183,652
|
|
|
|
4,471,440
|
Other current assets
|
|
|
696,221
|
|
|
|
618,733
|
|
|
|
|
|
|
Total current assets
|
|
|
11,887,379
|
|
|
|
13,280,301
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
413,363
|
|
|
|
417,439
|
Goodwill
|
|
|
946,522
|
|
|
|
990,372
|
Intangible assets, net
|
|
|
365,645
|
|
|
|
385,152
|
Other assets
|
|
|
284,330
|
|
|
|
299,879
|
|
|
|
|
|
|
Total assets
|
|
$
|
13,897,239
|
|
|
$
|
15,373,143
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER'S EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,324,496
|
|
|
$
|
7,760,380
|
Accrued expenses
|
|
|
746,604
|
|
|
|
881,672
|
Short-term debt and current maturities of long-term debt
|
|
|
147,419
|
|
|
|
127,512
|
|
|
|
|
|
|
Total current liabilities
|
|
|
8,218,519
|
|
|
|
8,769,564
|
|
|
|
|
|
|
Long-term debt, less current maturities
|
|
|
1,151,405
|
|
|
|
1,982,118
|
Other liabilities
|
|
|
199,194
|
|
|
|
298,904
|
|
|
|
|
|
|
Total liabilities
|
|
|
9,569,118
|
|
|
|
11,050,586
|
|
|
|
|
|
|
Stockholder's equity
|
|
|
4,328,121
|
|
|
|
4,322,557
|
|
|
|
|
|
|
Total liabilities and stockholder's equity
|
|
$
|
13,897,239
|
|
|
$
|
15,373,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ingram Micro Inc.
|
Consolidated Statement of Income
|
(Amounts in 000s)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
June 30, 2018
|
|
|
July 1, 2017
|
|
|
|
|
|
|
Net sales
|
|
$
|
11,800,698
|
|
|
|
$
|
10,826,707
|
|
Cost of sales
|
|
|
11,030,469
|
|
|
|
|
10,118,321
|
|
Gross profit
|
|
|
770,229
|
|
|
|
|
708,386
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Selling, general and administrative
|
|
|
618,418
|
|
|
|
|
558,683
|
|
Amortization of intangible assets
|
|
|
23,344
|
|
|
|
|
22,907
|
|
Reorganization costs
|
|
|
20,438
|
|
|
|
|
4,882
|
|
Gain on sale of affiliates
|
|
|
(1,940
|
)
|
|
|
|
-
|
|
Merger related costs
|
|
|
-
|
|
|
|
|
30,783
|
|
|
|
|
660,260
|
|
|
|
|
617,255
|
|
|
|
|
|
|
|
Income from operations
|
|
|
109,969
|
|
|
|
|
91,131
|
|
|
|
|
|
|
|
Other expense (income):
|
|
|
|
|
|
Interest income
|
|
|
(4,610
|
)
|
|
|
|
(3,256
|
)
|
Interest expense
|
|
|
26,394
|
|
|
|
|
25,237
|
|
Net foreign currency exchange (gain) loss
|
|
|
(403
|
)
|
|
|
|
1,770
|
|
Other
|
|
|
4,337
|
|
|
|
|
4,810
|
|
|
|
|
25,718
|
|
|
|
|
28,561
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
84,251
|
|
|
|
|
62,570
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
16,903
|
|
|
|
|
18,013
|
|
|
|
|
|
|
|
Net income
|
|
$
|
67,348
|
|
|
|
$
|
44,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ingram Micro Inc.
|
Consolidated Statement of Income
|
(Amounts in 000s)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks Ended
|
|
|
June 30, 2018
|
|
|
July 1, 2017
|
|
|
|
|
|
|
Net sales
|
|
$
|
23,562,838
|
|
|
|
$
|
21,229,646
|
|
Cost of sales
|
|
|
22,048,048
|
|
|
|
|
19,862,632
|
|
Gross profit
|
|
|
1,514,790
|
|
|
|
|
1,367,014
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Selling, general and administrative
|
|
|
1,236,664
|
|
|
|
|
1,116,306
|
|
Amortization of intangible assets
|
|
|
48,077
|
|
|
|
|
45,266
|
|
Reorganization costs
|
|
|
35,354
|
|
|
|
|
9,350
|
|
Gain on sale of affiliates
|
|
|
(1,940
|
)
|
|
|
|
-
|
|
Merger related costs
|
|
|
-
|
|
|
|
|
64,457
|
|
|
|
|
1,318,155
|
|
|
|
|
1,235,379
|
|
|
|
|
|
|
|
Income from operations
|
|
|
196,635
|
|
|
|
|
131,635
|
|
|
|
|
|
|
|
Other expense (income):
|
|
|
|
|
|
Interest income
|
|
|
(9,732
|
)
|
|
|
|
(5,335
|
)
|
Interest expense
|
|
|
53,453
|
|
|
|
|
51,400
|
|
Net foreign currency exchange gain
|
|
|
(5,480
|
)
|
|
|
|
(1,557
|
)
|
Other
|
|
|
10,422
|
|
|
|
|
9,426
|
|
|
|
|
48,663
|
|
|
|
|
53,934
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
147,972
|
|
|
|
|
77,701
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes
|
|
|
34,031
|
|
|
|
|
(4,709
|
)
|
|
|
|
|
|
|
Net income
|
|
$
|
113,941
|
|
|
|
$
|
82,410
|
|
|
|
|
|
|
|
|
|
|
|
Ingram Micro Inc.
|
Consolidated Statement of Cash Flows
|
(Amounts in 000s)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks Ended
|
|
|
|
|
|
June 30, 2018
|
|
July 1, 2017
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
Net income
|
$ 113,941
|
|
$ 82,410
|
Adjustments to reconcile net income to cash provided (used) by
operating activities:
|
|
|
|
Depreciation and amortization
|
103,303
|
|
99,585
|
Share-based compensation
|
14,073
|
|
11,961
|
Unpaid merger related costs
|
-
|
|
64,457
|
Gain on marketable securities, net
|
(2,541)
|
|
(3,073)
|
Gain on sale of property and equipment
|
(754)
|
|
(956)
|
Gain on sale of affiliates
|
(1,940)
|
|
-
|
Noncash charges for interest and bond discount amortization
|
1,929
|
|
2,305
|
Deferred income taxes
|
(3,074)
|
|
(38,626)
|
Changes in operating assets and liabilities, net of effects of
acquisitions:
|
|
|
|
Trade accounts receivable
|
1,006,509
|
|
684,629
|
Inventory
|
202,766
|
|
(325,735)
|
Other current assets
|
(90,246)
|
|
46,606
|
Accounts payable
|
(354,385)
|
|
(942,351)
|
Change in book overdrafts
|
72,701
|
|
(150,898)
|
Accrued expenses
|
(191,982)
|
|
(102,480)
|
Cash provided (used) by operating activities
|
870,300
|
|
(572,166)
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
Capital expenditures
|
(59,374)
|
|
(66,506)
|
Movements from restricted cash
|
14,379
|
|
51,021
|
Sale of marketable securities, net
|
3,968
|
|
-
|
Realized gain on marketable securities, net
|
-
|
|
(415)
|
Proceeds from sale of property and equipment
|
1,755
|
|
719
|
Proceeds from sale of affiliates
|
1,318
|
|
-
|
Return of investment
|
163
|
|
-
|
Acquisitions, net of cash acquired
|
(3,153)
|
|
(20,737)
|
Cash used by investing activities
|
(40,944)
|
|
(35,918)
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
Equity contribution from Parent
|
-
|
|
37,500
|
Settlement of stock-based awards due to Merger
|
(13,520)
|
|
(34,779)
|
Other consideration for acquisitions
|
(6,001)
|
|
(14,164)
|
Dividends paid to shareholder
|
(44,242)
|
|
-
|
Net (repayments of) proceeds from revolving and other credit
facilities
|
(786,389)
|
|
347,162
|
Cash (used) provided by financing activities
|
(850,152)
|
|
335,719
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
(14,288)
|
|
9,165
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
(35,084)
|
|
(263,200)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
549,558
|
|
796,164
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
$ 514,474
|
|
$ 532,964
|
|
|
|
|
|
|
|
|
|
|
|
Ingram Micro Inc.
|
Supplementary Information
|
Income from Operations - Reconciliation of GAAP to Non-GAAP
Information
|
(Amounts in Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
|
June 30, 2018
|
|
|
July 1, 2017
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
|
11,800.7
|
|
|
|
$
|
10,826.7
|
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
|
$
|
110.0
|
|
|
|
$
|
91.1
|
|
Reorganization, integration and transition costs
|
|
|
|
29.7
|
|
|
|
|
11.3
|
|
Amortization of intangible assets
|
|
|
|
23.3
|
|
|
|
|
22.9
|
|
Gain on sale of affiliates
|
|
|
|
(1.9
|
)
|
|
|
|
-
|
|
Merger related costs
|
|
|
|
-
|
|
|
|
|
30.8
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
|
$
|
161.1
|
|
|
|
$
|
156.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
|
|
|
|
0.93
|
%
|
|
|
|
0.84
|
%
|
Non-GAAP Operating Margin
|
|
|
|
1.36
|
%
|
|
|
|
1.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks Ended
|
|
|
|
June 30, 2018
|
|
|
July 1, 2017
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
|
23,562.8
|
|
|
|
$
|
21,229.6
|
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
|
$
|
196.6
|
|
|
|
$
|
131.6
|
|
Reorganization, integration and transition costs
|
|
|
|
53.2
|
|
|
|
|
17.0
|
|
Amortization of intangible assets
|
|
|
|
48.1
|
|
|
|
|
45.3
|
|
Gain on sale of affiliates
|
|
|
|
(1.9
|
)
|
|
|
|
-
|
|
Merger related costs
|
|
|
|
-
|
|
|
|
|
64.5
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
|
$
|
296.0
|
|
|
|
$
|
258.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Margin
|
|
|
|
0.83
|
%
|
|
|
|
0.62
|
%
|
Non-GAAP Operating Margin
|
|
|
|
1.26
|
%
|
|
|
|
1.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ingram Micro Inc.
|
Supplementary Information
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
(Amounts in Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
June 30, 2018
|
|
|
July 1, 2017
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
Net Income
|
|
|
|
|
|
|
As Reported Under GAAP
|
|
$
|
67.3
|
|
|
|
$
|
44.6
|
|
Reorganization, integration and transition costs
|
|
|
22.6
|
|
|
|
|
7.8
|
|
Amortization of intangible assets
|
|
|
17.7
|
|
|
|
|
15.8
|
|
Gain on sale of affiliates
|
|
|
(1.5
|
)
|
|
|
|
-
|
|
Merger related costs
|
|
|
-
|
|
|
|
|
21.2
|
|
Pan-Europe foreign currency exchange (gain) loss
|
|
|
(3.4
|
)
|
|
|
|
3.9
|
|
Tax impact on intercompany sale of certain intangible assets
|
|
|
(8.5
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Financial Measure
|
|
$
|
94.2
|
|
|
|
$
|
93.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks Ended
|
|
|
June 30, 2018
|
|
|
July 1, 2017
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
Net Income
|
|
|
|
|
|
|
As Reported Under GAAP
|
|
$
|
113.9
|
|
|
|
$
|
82.4
|
|
Reorganization, integration and transition costs
|
|
|
39.2
|
|
|
|
|
12.1
|
|
Amortization of intangible assets
|
|
|
35.2
|
|
|
|
|
32.6
|
|
Gain on sale of affiliates
|
|
|
(1.5
|
)
|
|
|
|
-
|
|
Merger related costs
|
|
|
-
|
|
|
|
|
46.6
|
|
Pan-Europe foreign currency exchange (gain) loss
|
|
|
(2.4
|
)
|
|
|
|
5.7
|
|
Reversal of a valuation allowance against certain deferred tax
assets in Australia
|
|
|
-
|
|
|
|
|
(30.6
|
)
|
Tax impact on intercompany sale of certain intangible assets
|
|
|
(8.5
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Financial Measure
|
|
$
|
175.9
|
|
|
|
$
|
148.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts above are net of applicable income taxes.
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180831005359/en/
[ Back To TMCnet.com's Homepage ]
|