Ingram Micro Reports 2021 First Quarter Financial Results
Ingram Micro Inc. today announced financial results for the 2021 first quarter ended Apr. 3, 2021. The company said its business is benefiting from strong demand for the technology products and services necessary to support the "next normal" with new and innovative solutions to facilitate hybrid working, learning and general everyday living environments. This continued demand, along with the global shift to greater reliance on e-commerce related activities and heightened demand for cloud-based platforms and offerings, helped drive strong double-digit growth in net sales and gross and operating profitability across all lines of business.
Worldwide 2021 first quarter net sales were $13.4 billion, an increase of nearly $2.5 billion, or 23 percent in USD. The translation of foreign currencies compared to 2020 had a positive impact on 2021 first quarter net sales of 4.3 percent. 2021 first quarter gross profit increased by $189 million, or 24 percent, to $984 million, with gross margin growing to 7.32 percent. This compares to net sales of $11 billion, gross profit of $795 million and gross margin of 7.26 percent for the 2020 first quarter. 2021 first quarter non-GAAP operating income increased by more than $100 million to $264 million, or 1.96 percent of net sales, up 51 basis-points over last year, with non-GAAP net income for the 2021 first quarter increasing more than $75 million to $178 million. This compares to 2020 first quarter non-GAAP operating income of $158 million, or 1.45 percent of net sales, and non-GAAP net income of $101 million. 2021 first quarter GAAP operating income was $246 million, or 1.83 percent of net sales, and GAAP net income was $173 million (with the primary GAAP to non-GAAP difference made up of pre-tax amortization expense of $16 million and our Pan-European entity's foreign currency exchange gain of $8 million). This compares to 2020 first quarter GAAP operating income and net income of $140 million, or 1.28 percent of net sales, and $91 million, respectively.
The company said Platinum Equity's acquisition of Ingram Micro from HNA Technology Co., Ltd. is expected to close at the end of the 2021 second quarter.
In addition to GAAP results, Ingram Micro is reporting non-GAAP operating income, non-GAAP operating margin and non-GAAP net income for the periods covered in this release. 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 tax benefits related to research and development credit in 2020. Non-GAAP net income also excludes the impact of foreign currency exchange gains or losses related to the translation effect on Euro-based inventory purchases in Ingram Micro's pan-European entity. 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.
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