Attached files
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| 8-K - 8-K - INGRAM MICRO INC | earnings8kq22014.htm |
Exhibit 99.1
For More Information Contact:
Investors:
Damon Wright
(714) 382-5013
damon.wright@ingrammicro.com
INGRAM MICRO REPORTS SECOND QUARTER EARNINGS
Record Second Quarter Revenue Driven by
Strength in North America, Europe and Latin America
SANTA ANA, Calif., July 24, 2014 - Ingram Micro Inc. (NYSE: IM) today announced financial results for the second quarter ended June 28, 2014.
Second Quarter Ended | |||||||||
June 28, 2014 | June 29, 2013 | ||||||||
Net Sales | $ | 10,909 | $ | 10,308 | |||||
Non-GAAP operating income | $ | 146 | $ | 136 | |||||
Non-GAAP operating margin | 1.34 | % | 1.32 | % | |||||
Operating income | $ | 98 | $ | 114 | |||||
Operating margin | 0.90 | % | 1.10 | % | |||||
Non-GAAP earnings per diluted share | $ | 0.54 | $ | 0.55 | * | ||||
Earnings per diluted share | $ | 0.32 | $ | 0.45 | * | ||||
Diluted shares outstanding (millions) | 159.2 | 154.9 | |||||||
*2013 second quarter earnings per diluted share included discrete tax benefits of approximately 3 cents per diluted share. A reconciliation of GAAP financial measures to non-GAAP financial measures is presented in the Supplementary information section in this press release.
Alain Monié, Ingram Micro CEO, commented, “Worldwide revenue increased by $600 million, or 6 percent, to a second quarter record. Revenue growth was driven by new mobility wins, robust networking sales and solid systems revenue in North America, which benefited from the PC refresh cycle; strengthening retail and consumer markets in Europe; and better demand in much of Latin America. Non-GAAP operating margin expanded year-over-year for the fifth quarter in a row and we delivered non-GAAP EPS of 54 cents, which was also up after excluding one-time discrete tax items that benefited the 2013 second quarter.
“The global demand environment continued to improve and we remained disciplined in our approach to sales, while selectively making share gains,” Monié said, “We are executing well across each of our business lines and I am pleased with our second quarter results, which not only continue to show growth and increased profitability, but are also well aligned with the longer-term goals we set forth at our investor day on June 25th.”
Beginning in the second quarter of 2014, the company is reporting four segments - North America, Europe, Asia-Pacific and Latin America. As the company has continued to integrate its acquired mobility business, it is combining formerly discrete operations including warehouses, systems and back office functions, making it increasingly difficult to separate the businesses.
2014 Second Quarter Business Drivers:
• | North America and Europe revenues benefited from robust mobility distribution sales, strong sales of networking products and an uptick in demand for systems products, including PCs. |
• | Latin America revenue growth was driven by strong sales of advanced solutions in Brazil and strength in tablets in Mexico. |
• | Strong revenue growth in North America, Europe and Latin America was partially offset by declines in Asia Pacific driven primarily by lower handset sales in Indonesia and continued sales weakness in China related to lower sales of tablets and softer demand for some of the products and vendors the company carries. |
• | Gross margin and non-GAAP operating margin grew respectively by 3 and 2 basis points year-over-year, benefiting from a better overall mix of higher value business, which more than offset lower margin volume growth in consumer and retail markets in Europe and new mobility distribution wins in North America. |
Worldwide sales increased by $600 million to a second quarter record of $10.9 billion, up 6 percent in U.S. dollars, when compared with $10.3 billion in the second quarter last year. The translation of foreign currencies had no meaningful impact on consolidated revenues.
Worldwide gross profit was $634 million (5.81 percent of total sales), compared with $596 million (5.78 percent of total sales) in the 2013 second quarter.
Non-GAAP operating income for the 2014 second quarter was $146 million (1.34 percent of total sales). This compares with non-GAAP operating income for the 2013 second quarter of $136 million (1.32 percent of total sales).
2014 second quarter non-GAAP net income was $86 million, or 54 cents per diluted share, compared with non-GAAP net income of $86 million, or 55 cents per diluted share, in the 2013 second quarter. 2013 second quarter net income and non-GAAP net income benefited from discrete tax benefits of $5.8 million, which benefited earnings per diluted share by 3 cents.
On a GAAP basis, operating income was $98 million (0.90 percent of total sales), compared with 2013 second quarter operating income of $114 million (1.10 percent of total sales). 2014 second quarter net income was $51 million, or 32 cents per diluted share. This compares with 2013 second quarter net income of $70 million, or 45 cents per diluted share. 2014 second quarter operating income was affected by $34 million of pre-tax charges for reorganization, integration and transition costs. This compares to 2013 second quarter reorganization, integration and transition costs of $11 million pre-tax.
Interest and other expenses for the 2014 second quarter was $21 million, compared to interest and other expenses of $20 million in the year-earlier period.
The effective tax rate for the 2014 second quarter was 34.2 percent. The 2014 second quarter effective tax rate was negatively affected by approximately 4 percentage points related to a portion of restructuring charges recorded in jurisdictions where there was no tax benefit realized.
Key 2014 second quarter business highlights:
• | As part of its strategic initiatives to build out faster growing, higher margin service-focused businesses, Ingram Micro launched a new company brand identity, signaling the company's leadership in technology, supply chain, Cloud and mobility. With recent investments in growth, this new brand reflects the company’s creation of a platform of new capabilities and services whereby Ingram Micro helps businesses fully realize the promise of technology. |
• | Ingram Micro was selected as the partner of choice for three of Verizon Wireless’ largest retailer partners, further cementing the company’s role as the go-to provider of global mobility services and solutions. The company grew second quarter mobility revenue in the low double-digits year-over-year aided by these wins, as well as its win in April 2014 to serve as the preferred Verizon Wireless handset distributor and services provider for the 360 Group. |
• | Ingram Micro expanded its mobility services offerings acquiring Global Mobility Products, Inc. (GMP), a Canadian-based leading provider of mobile reverse logistics, repair and asset recovery services. GMP is expected to provide the business with a superior, end-to-end forward and reverse logistics value proposition, enhancing the company's ability to provide a full suite of wireless device lifecycle services in Canada. |
• | While launching a new Cloud Marketplace, the company also announced the general availability of three new, Ingram Micro-branded and Ingram Micro-hosted cloud solutions: Ingram Micro Hosted Exchange, Ingram Micro Virtual Private Servers (VPS) and Ingram Micro Web Hosting. The company currently offers more than 200 cloud-based solutions from over 70 vendor partners. |
• | Building on its worldwide technical services and training expertise, Ingram Micro announced it was selected as an authorized IBM Global Training Provider, one of five companies authorized to provide the complete portfolio of software and systems courses from IBM Training. In addition, Ingram Micro was named a Premier VMware Authorized Training Center (“VATC”). The win differentiates Ingram Micro as one of four Premier VATCs within North America and the only provider offering "After Dark" VMware technical training courses and the Public Sector Smart Enablement Program. |
• | The company’s CloudBlue IT asset disposal operation was awarded additional product categories from a major e-tailer, which has the potential to significantly increase CloudBlue’s North America volume. |
CloudBlue is also opening a new state-of-the-art repair facility in Indianapolis that will produce certified pre-owned retail-ready electronics for sale via ecommerce and the Ingram Micro channel.
• | Since Ingram Micro acquired Shipwire in December of last year, the business has continued to grow in all regions where it offers services and is rapidly expanding its capabilities internationally. The company is currently integrating Shipwire capabilities into its Australian and Canadian facilities to better enable emerging companies to easily leverage global, world class logistics. |
• | Ingram Micro was named OEM Distributor of the Year for North America by Microsoft Corp., North American Distributor of the Year by EMC Corporation, 2013 U.S. Distributor of the Year by Emerson Network Power, a business of Emerson, and 2013 Distributor of the Year by security vendor Trend Micro. The company was also named “Best Microsoft Distributor” for the “Highest Distribution Revenue Growth” for its Middle East and Africa business. |
• | Ingram Micro was ranked 69th in the 2014 Fortune 100 list of largest U.S. companies. |
Outlook
The company currently expects 2014 third quarter worldwide revenue to increase year-over-year in the high single digits. Gross margin is expected to improve solidly over the 2014 second quarter, and be relatively flat with the prior year third quarter. 2014 third quarter non-GAAP operating expense as a percentage of revenue is expected to continue to benefit sequentially over the 2014 second quarter from incremental cost savings related to implementation of the company’s global organizational effectiveness program, and year-over-year from revenue leverage.
Non-GAAP Disclosures
In addition to GAAP results, Ingram Micro is reporting non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per diluted share. These non-GAAP measures exclude the amortization of intangible assets, and charges associated with reorganization, integration and transition costs and other expense reduction programs, including those associated with the company’s previously announced organizational effectiveness programs. These non-GAAP financial measures also exclude a benefit related to the receipt of an LCD flat panel class action settlement in certain historical periods. Non-GAAP net income and non-GAAP earnings per diluted share also exclude 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.
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 similar 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 and may not be comparable to similarly titled measures used by other companies.
Reconciliation of GAAP to non-GAAP financial measures for the periods presented are attached to the press release.
Conference Call and Webcast
Additional information about Ingram Micro's financial results will be presented in a conference call with presentation slides today at 5 p.m. ET. To listen to the conference call webcast and view the accompanying presentation slides, visit the company’s website at www.ingrammicro.com (Investor Relations section). The conference call is also accessible by telephone at (888) 461-2024 (toll-free within the United States and Canada) or (719) 457-2083 (other countries), passcode “5233861.”
The replay of the conference call with presentation slides will be available for one week at www.ingrammicro.com (Investor Relations section) or by calling (888) 203-1112 or (719) 457-0820 outside the United States and Canada, passcode “5233861.”
About Ingram Micro Inc.
Ingram Micro helps businesses realize the promise of technology. We deliver a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, supply chain services, cloud and mobility enables our business partners to operate efficiently and successfully in the markets they serve. Unrivaled agility, deep market insights and the trust and dependability that comes from decades of proven relationships, set Ingram Micro apart and ahead. Discover how Ingram Micro can help you realize the promise of technology.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
The matters in this press release that are forward-looking statements, including statements relating to the expected benefits of acquisitions and the financial performance of the combined company, are based on current management expectations. Certain risks may cause such expectations to not be achieved and, in turn, may have a material adverse effect on Ingram Micro's business, financial condition and results of operations. Ingram Micro disclaims any duty to update any forward-looking statements. Important risk factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, without limitation: (1) we have made and expect to continue to make investments in new businesses and initiatives, including acquisitions, which could disrupt our business and have an adverse effect on our operating results; (2) we are dependent on a variety of information systems, which, if not properly functioning, or unavailable, or if we experience system security
breaches, data protection breaches or other cyber-attacks, could adversely disrupt our business and harm our reputation and earnings; (3) changes in macro-economic conditions may negatively impact a number of risk factors which, individually or in the aggregate, could adversely affect our results of operations, financial condition and cash flows; (4) we continually experience intense competition across all markets for our products and services; (5) we operate a global business that exposes us to risks associated with conducting business in multiple jurisdictions; (6) our failure to adequately adapt to IT industry changes could negatively impact our future operating results; (7) terminations of a supply or services agreement or a significant change in supplier terms or conditions of sale could negatively affect our operating margins, revenue or the level of capital required to fund our operations; (8) substantial defaults by our customers or the loss of significant customers could have a negative impact on our business, results of operations, financial condition or liquidity; (9) changes in, or interpretations of, tax rules and regulations, changes in the mix of our business amongst different tax jurisdictions, and deterioration of the performance of our business may adversely affect our effective income tax rates or operating margins and we may be required to pay additional taxes and/or tax assessments, as well as record valuation allowances relating to our deferred tax assets; (10) changes in our credit rating or other market factors such as adverse capital and credit market conditions or reductions in cash flow from operations may affect our ability to meet liquidity needs, reduce access to capital, and/or increase our costs of borrowing; (11) failure to retain and recruit key personnel would harm our ability to meet key objectives; (12) we cannot predict with certainty what losses we may incur as a result of litigation matters and contingencies that we may be involved with from time to time; (13) we may incur material litigation, regulatory or operational costs or expenses, and may be frustrated in our marketing efforts, as a result of environmental regulations or private intellectual property enforcement disputes; (14) we face a variety of risks in our reliance on third-party service companies, including shipping companies for the delivery of our products and outsourcing arrangements; (15) changes in accounting rules could adversely affect our future operating results; and (16) our quarterly results have fluctuated significantly. We also face a variety of risks associated with our acquisitions and any other acquisitions we may make, including: management’s ability to execute its plans, strategies and objectives for future operations, including the execution of integration plans and our organizational effectiveness programs, and to realize the expected benefits of our acquisitions or our organizational effectiveness programs; growth of the mobility industry, the government contracts business, and in new and untapped markets in geographies outside the U.S.; and other uncertainties or unknown, underestimated and/or undisclosed commitments or liabilities; and our ability to achieve the expected benefits and manage the costs of the integrations of our acquisitions.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and seek to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given that Ingram Micro will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning Ingram Micro, reference is made to Item 1A Risk Factors of Ingram Micro's Annual Report on Form 10-K for the fiscal year ended Dec. 28, 2013; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings.
# # #
© 2014 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 28, 2014 | December 28, 2013 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 470,691 | $ | 674,390 | ||||
Trade accounts receivable, net | 4,881,336 | 5,454,832 | ||||||
Inventory | 4,205,002 | 3,724,447 | ||||||
Other current assets | 572,905 | 521,902 | ||||||
Total current assets | 10,129,934 | 10,375,571 | ||||||
Property and equipment, net | 488,012 | 488,699 | ||||||
Goodwill | 532,037 | 527,526 | ||||||
Intangible assets, net | 354,567 | 375,423 | ||||||
Other assets | 46,157 | 23,976 | ||||||
Total assets | $ | 11,550,707 | $ | 11,791,195 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,704,082 | $ | 6,175,604 | ||||
Accrued expenses | 530,818 | 710,040 | ||||||
Short-term debt and current maturities of long-term debt | 106,622 | 48,772 | ||||||
Total current liabilities | 6,341,522 | 6,934,416 | ||||||
Long-term debt, less current maturities | 1,053,602 | 797,454 | ||||||
Other liabilities | 106,153 | 109,700 | ||||||
Total liabilities | 7,501,277 | 7,841,570 | ||||||
Stockholders’ equity | 4,049,430 | 3,949,625 | ||||||
Total liabilities and stockholders’ equity | $ | 11,550,707 | $ | 11,791,195 | ||||
Page 1
Ingram Micro Inc.
Consolidated Statement of Income
(Amounts in 000s, except per share data)
(Unaudited)
Thirteen Weeks Ended | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Net sales | $ | 10,909,379 | $ | 10,308,015 | ||||
Cost of sales | 10,275,634 | 9,712,261 | ||||||
Gross profit | 633,745 | 595,754 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 497,592 | 465,325 | ||||||
Amortization of intangible assets | 14,421 | 11,997 | ||||||
Reorganization costs | 23,513 | 4,636 | ||||||
535,526 | 481,958 | |||||||
Income from operations | 98,219 | 113,796 | ||||||
Other expense (income): | ||||||||
Interest income | (1,312 | ) | (2,026 | ) | ||||
Interest expense | 18,425 | 14,303 | ||||||
Net foreign currency exchange loss | 582 | 3,682 | ||||||
Other | 3,561 | 4,211 | ||||||
21,256 | 20,170 | |||||||
Income before income taxes | 76,963 | 93,626 | ||||||
Provision for income taxes | 26,350 | 23,940 | ||||||
Net income | $ | 50,613 | $ | 69,686 | ||||
Diluted earnings per share | $ | 0.32 | $ | 0.45 | ||||
Diluted weighted average shares outstanding | 159,186 | 154,864 | ||||||
Page 2
Ingram Micro Inc.
Consolidated Statement of Income
(Amounts in 000s, except per share data)
(Unaudited)
Twenty-six Weeks Ended | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Net sales | $ | 21,293,368 | $ | 20,570,459 | ||||
Cost of sales | 20,049,043 | 19,389,400 | ||||||
Gross profit | 1,244,325 | 1,181,059 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 987,236 | 939,403 | ||||||
Amortization of intangible assets | 28,573 | 23,762 | ||||||
Reorganization costs | 61,937 | 13,302 | ||||||
1,077,746 | 976,467 | |||||||
Income from operations | 166,579 | 204,592 | ||||||
Other expense (income): | ||||||||
Interest income | (2,737 | ) | (3,855 | ) | ||||
Interest expense | 37,747 | 29,941 | ||||||
Net foreign currency exchange loss | 2,170 | 1,748 | ||||||
Other | 8,544 | 7,080 | ||||||
45,724 | 34,914 | |||||||
Income before income taxes | 120,855 | 169,678 | ||||||
Provision for income taxes | 45,409 | 50,233 | ||||||
Net income | $ | 75,446 | $ | 119,445 | ||||
Diluted earnings per share | $ | 0.47 | $ | 0.77 | ||||
Diluted weighted average shares outstanding | 158,962 | 154,739 | ||||||
Page 3
Ingram Micro Inc.
Consolidated Statement of Cash Flows
(Amounts in 000s)
(Unaudited)
Twenty-six Weeks Ended | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 75,446 | $ | 119,445 | ||||
Adjustments to reconcile net income to cash provided (used) by operating activities: | ||||||||
Depreciation and amortization | 71,089 | 62,558 | ||||||
Stock-based compensation | 16,460 | 13,957 | ||||||
Excess tax benefit from stock-based compensation | (3,703 | ) | (1,135 | ) | ||||
Write-off of assets | 8,302 | 2,277 | ||||||
Gain on sale of land and building | — | (1,045 | ) | |||||
Noncash charges for interest and bond discount amortization | 1,181 | 1,131 | ||||||
Deferred income taxes | (5,767 | ) | 2,429 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||
Trade accounts receivable | 593,179 | 980,723 | ||||||
Inventory | (466,876 | ) | (161,272 | ) | ||||
Other current assets | (49,659 | ) | (20,321 | ) | ||||
Accounts payable | (568,496 | ) | (650,770 | ) | ||||
Change in book overdrafts | 78,263 | (15,552 | ) | |||||
Accrued expenses | (201,703 | ) | (4,410 | ) | ||||
Cash provided (used) by operating activities | (452,284 | ) | 328,015 | |||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (40,897 | ) | (39,457 | ) | ||||
Sales of marketable securities, net | 1,100 | 1,042 | ||||||
Proceeds from sale of land and building | — | 1,169 | ||||||
Cost-based investment | (10,000 | ) | — | |||||
Acquisition and earn-out payment, net of cash acquired | (17,367 | ) | (325 | ) | ||||
Cash used by investing activities | (67,164 | ) | (37,571 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 11,511 | 15,693 | ||||||
Excess tax benefit from stock-based compensation | 3,703 | 1,135 | ||||||
Net proceeds from (repayments of) revolving credit facilities | 311,187 | (165,263 | ) | |||||
Cash provided (used) by financing activities | 326,401 | (148,435 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (10,652 | ) | (10,264 | ) | ||||
Increase (decrease) in cash and cash equivalents | (203,699 | ) | 131,745 | |||||
Cash and cash equivalents, beginning of period | 674,390 | 595,147 | ||||||
Cash and cash equivalents, end of period | $ | 470,691 | $ | 726,892 | ||||
Page 4
Ingram Micro Inc.
Supplementary Information
Income from Operations - Reconciliation of GAAP to Non-GAAP Information
(Amounts in Millions)
(Unaudited)
Thirteen Weeks Ended June 28, 2014 | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based compensation | Consolidated Total | ||||||||||||||||||
Net Sales | $ | 4,611.0 | $ | 3,417.7 | $ | 2,359.1 | $ | 521.6 | $ | — | $ | 10,909.4 | |||||||||||
GAAP Operating Income | $ | 72.1 | $ | 3.1 | $ | 23.7 | $ | 8.0 | $ | (8.6 | ) | $ | 98.2 | ||||||||||
Reorganization, integration and transition costs | 16.8 | 15.4 | 1.2 | 0.1 | — | 33.5 | |||||||||||||||||
Amortization of intangible assets | 9.9 | 2.9 | 1.4 | 0.2 | — | 14.4 | |||||||||||||||||
Non-GAAP Operating Income | $ | 98.7 | $ | 21.4 | $ | 26.3 | $ | 8.3 | $ | (8.6 | ) | $ | 146.2 | ||||||||||
GAAP Operating Margin | 1.56 | % | 0.09 | % | 1.00 | % | 1.53 | % | 0.90 | % | |||||||||||||
Non-GAAP Operating Margin | 2.14 | % | 0.63 | % | 1.12 | % | 1.59 | % | 1.34 | % | |||||||||||||
Thirteen Weeks Ended June 29, 2013 | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based compensation | Consolidated Total | ||||||||||||||||||
Net Sales | $ | 4,267.9 | $ | 3,030.5 | $ | 2,549.8 | $ | 459.8 | $ | — | $ | 10,308.0 | |||||||||||
GAAP Operating Income | $ | 70.0 | $ | 14.8 | $ | 26.0 | $ | 9.5 | $ | (6.5 | ) | $ | 113.8 | ||||||||||
Reorganization, integration and transition costs | 7.1 | 1.7 | 1.7 | 0.0 | — | 10.6 | |||||||||||||||||
Amortization of intangible assets | 7.3 | 3.0 | 1.5 | 0.2 | — | 12.0 | |||||||||||||||||
Non-GAAP Operating Income | $ | 84.4 | $ | 19.5 | $ | 29.2 | $ | 9.7 | $ | (6.5 | ) | $ | 136.4 | ||||||||||
GAAP Operating Margin | 1.64 | % | 0.49 | % | 1.02 | % | 2.07 | % | 1.10 | % | |||||||||||||
Non-GAAP Operating Margin | 1.98 | % | 0.64 | % | 1.15 | % | 2.12 | % | 1.32 | % | |||||||||||||
Page 5
Ingram Micro Inc.
Supplementary Information
Income from Operations - Reconciliation of GAAP to Non-GAAP Information
(Amounts in Millions)
(Unaudited)
Twenty-six Weeks Ended June 28, 2014 | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based compensation | Consolidated Total | ||||||||||||||||||
Net Sales | $ | 8,753.1 | $ | 6,877.0 | $ | 4,648.2 | $ | 1,015.1 | $ | — | $ | 21,293.4 | |||||||||||
GAAP Operating Income | $ | 133.8 | $ | (8.1 | ) | $ | 40.5 | $ | 17.0 | $ | (16.5 | ) | $ | 166.6 | |||||||||
Reorganization, integration and transition costs | 29.9 | 46.2 | 3.8 | 0.6 | — | 80.5 | |||||||||||||||||
Amortization of intangible assets | 19.6 | 5.7 | 2.8 | 0.4 | — | 28.6 | |||||||||||||||||
LCD class action settlement | (6.6 | ) | — | — | — | — | (6.6 | ) | |||||||||||||||
Non-GAAP Operating Income | $ | 176.7 | $ | 43.8 | $ | 47.1 | $ | 18.0 | $ | (16.5 | ) | $ | 269.1 | ||||||||||
GAAP Operating Margin | 1.53 | % | (0.12 | )% | 0.87 | % | 1.67 | % | 0.78 | % | |||||||||||||
Non-GAAP Operating Margin | 2.02 | % | 0.64 | % | 1.01 | % | 1.77 | % | 1.26 | % | |||||||||||||
Twenty-six Weeks Ended June 29, 2013 | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based compensation | Consolidated Total | ||||||||||||||||||
Net Sales | $ | 8,341.8 | $ | 6,209.9 | $ | 5,097.0 | $ | 921.8 | $ | — | $ | 20,570.5 | |||||||||||
GAAP Operating Income | $ | 136.7 | $ | 24.5 | $ | 42.3 | $ | 15.1 | $ | (14.0 | ) | $ | 204.6 | ||||||||||
Reorganization, integration and transition costs | 11.1 | 7.4 | 5.3 | 0.0 | — | 23.8 | |||||||||||||||||
Amortization of intangible assets | 14.6 | 5.8 | 3.0 | 0.4 | — | 23.8 | |||||||||||||||||
Non-GAAP Operating Income | $ | 162.4 | $ | 37.7 | $ | 50.6 | $ | 15.5 | $ | (14.0 | ) | $ | 252.2 | ||||||||||
GAAP Operating Margin | 1.64 | % | 0.39 | % | 0.83 | % | 1.64 | % | 0.99 | % | |||||||||||||
Non-GAAP Operating Margin | 1.95 | % | 0.61 | % | 0.99 | % | 1.68 | % | 1.23 | % | |||||||||||||
Page 6
Ingram Micro Inc.
Supplementary Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts in Millions, except per share data)
(Unaudited)
Thirteen Weeks Ended June 28, 2014 | ||||||||
Net Income | Diluted Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 50.6 | $ | 0.32 | ||||
Reorganization, integration and transition costs | 25.9 | 0.16 | ||||||
Amortization of intangible assets | 10.3 | 0.06 | ||||||
Pan-Europe foreign exchange gain | (0.4 | ) | 0.00 | |||||
Non-GAAP Financial Measure | $ | 86.4 | $ | 0.54 | ||||
Thirteen Weeks Ended June 29, 2013 | ||||||||
Net Income | Diluted Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 69.7 | $ | 0.45 | ||||
Reorganization, integration and transition costs | 7.2 | 0.05 | ||||||
Amortization of intangible assets | 8.2 | 0.05 | ||||||
Pan-Europe foreign exchange loss | 0.6 | 0.00 | ||||||
Non-GAAP Financial Measure | $ | 85.7 | $ | 0.55 | ||||
(a) | Per share impact is calculated by dividing net income amount by the diluted weighted average shares outstanding of 159,185,922 and 154,864,425 for the thirteen weeks ended June 28, 2014 and June 29, 2013, respectively. |
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Ingram Micro Inc.
Supplementary Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts in Millions, except per share data)
(Unaudited)
Twenty-six Weeks Ended June 28, 2014 | ||||||||
Net Income | Diluted Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 75.4 | $ | 0.47 | ||||
Reorganization, integration and transition costs | 64.8 | 0.41 | ||||||
Amortization of intangible assets | 20.4 | 0.13 | ||||||
LCD class action settlement | (4.7 | ) | (0.03 | ) | ||||
Pan-Europe foreign exchange gain | (1.6 | ) | (0.01 | ) | ||||
Non-GAAP Financial Measure | $ | 154.3 | $ | 0.97 | ||||
Twenty-six Weeks Ended June 29, 2013 | ||||||||
Net Income | Diluted Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 119.4 | $ | 0.77 | ||||
Reorganization, integration and transition costs | 16.0 | 0.10 | ||||||
Amortization of intangible assets | 15.9 | 0.10 | ||||||
Pan-Europe foreign exchange gain | (2.4 | ) | (0.01 | ) | ||||
Non-GAAP Financial Measure | $ | 148.9 | $ | 0.96 | ||||
(a) | Per share impact is calculated by dividing net income amount by the diluted weighted average shares outstanding of 158,962,173 and 154,739,367 for the twenty-six weeks ended June 28, 2014 and June 29, 2013, respectively. |
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Ingram Micro Inc.
Addendum to Supplementary Information
Income from Operations - Reconciliation of GAAP to Non-GAAP Information
(Amounts in Millions)
(Unaudited)
In connection with the Company's change in reportable segments, the following tables provide a summary of historical data to conform to the current presentation:
Thirteen Weeks Ended March 29, 2014 | ||||||||||||||||||||||||
Stock-based | Consolidated | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | compensation | Total | |||||||||||||||||||
Net Sales | $ | 4,142.1 | $ | 3,459.3 | $ | 2,289.1 | $ | 493.5 | $ | — | $ | 10,384.0 | ||||||||||||
GAAP Operating Income | $ | 61.7 | $ | (11.2 | ) | $ | 16.7 | $ | 9.0 | $ | (7.9 | ) | $ | 68.4 | ||||||||||
Reorganization, integration and transition costs | 13.2 | 30.7 | 2.7 | 0.5 | — | 47.0 | ||||||||||||||||||
Amortization of intangible assets | 9.6 | 2.9 | 1.4 | 0.2 | — | 14.1 | ||||||||||||||||||
LCD settlement | (6.6 | ) | — | — | — | — | (6.6 | ) | ||||||||||||||||
Non-GAAP Operating Income | $ | 77.9 | $ | 22.4 | $ | 20.8 | $ | 9.7 | $ | (7.9 | ) | $ | 122.9 | |||||||||||
GAAP Operating Margin | 1.49 | % | (0.32 | )% | 0.73 | % | 1.82 | % | 0.66 | % | ||||||||||||||
Non-GAAP Operating Margin | 1.88 | % | 0.65 | % | 0.91 | % | 1.97 | % | 1.18 | % | ||||||||||||||
Thirteen Weeks Ended December 28, 2013 | ||||||||||||||||||||||||
Stock-based | Consolidated | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | compensation | Total | |||||||||||||||||||
Net Sales | $ | 4,719.9 | $ | 4,047.1 | $ | 2,384.3 | $ | 681.5 | $ | — | $ | 11,832.8 | ||||||||||||
GAAP Operating Income | $ | 85.5 | $ | 62.1 | $ | 15.3 | $ | 18.4 | $ | (8.7 | ) | $ | 172.6 | |||||||||||
Reorganization, integration and transition costs | 8.6 | 10.9 | 5.6 | — | — | 25.1 | ||||||||||||||||||
Amortization of intangible assets | 8.6 | 2.9 | 1.4 | 0.2 | — | 13.1 | ||||||||||||||||||
Non-GAAP Operating Income | $ | 102.7 | $ | 75.9 | $ | 22.3 | $ | 18.6 | $ | (8.7 | ) | $ | 210.8 | |||||||||||
GAAP Operating Margin | 1.81 | % | 1.53 | % | 0.64 | % | 2.70 | % | 1.46 | % | ||||||||||||||
Non-GAAP Operating Margin | 2.18 | % | 1.88 | % | 0.94 | % | 2.74 | % | 1.78 | % | ||||||||||||||
Thirteen Weeks Ended September 28, 2013 | ||||||||||||||||||||||||
Stock-based | Consolidated | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | compensation | Total | |||||||||||||||||||
Net Sales | $ | 4,305.3 | $ | 2,927.3 | $ | 2,469.4 | $ | 448.6 | $ | — | $ | 10,150.6 | ||||||||||||
GAAP Operating Income | $ | 107.2 | $ | 6.2 | $ | 22.4 | $ | 9.6 | $ | (7.7 | ) | $ | 137.7 | |||||||||||
Reorganization, integration and transition costs | 4.1 | 5.0 | 1.5 | — | — | 10.6 | ||||||||||||||||||
Amortization of intangible assets | 7.3 | 2.7 | 1.4 | 0.2 | — | 11.6 | ||||||||||||||||||
European indirect tax declarations charge | — | 5.0 | — | — | — | 5.0 | ||||||||||||||||||
LCD settlement | (28.5 | ) | — | — | (1.0 | ) | — | (29.5 | ) | |||||||||||||||
Non-GAAP Operating Income | $ | 90.1 | $ | 18.9 | $ | 25.3 | $ | 8.8 | $ | (7.7 | ) | $ | 135.4 | |||||||||||
GAAP Operating Margin | 2.49 | % | 0.21 | % | 0.91 | % | 2.14 | % | 1.36 | % | ||||||||||||||
Non-GAAP Operating Margin | 2.09 | % | 0.65 | % | 1.02 | % | 1.96 | % | 1.33 | % | ||||||||||||||
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Thirteen Weeks Ended June 29, 2013 | ||||||||||||||||||||||||
Stock-based | Consolidated | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | compensation | Total | |||||||||||||||||||
Net Sales | $ | 4,267.9 | $ | 3,030.5 | $ | 2,549.8 | $ | 459.8 | $ | — | $ | 10,308.0 | ||||||||||||
GAAP Operating Income | $ | 70.0 | $ | 14.8 | $ | 26.0 | $ | 9.5 | $ | (6.5 | ) | $ | 113.8 | |||||||||||
Reorganization, integration and transition costs | 7.1 | 1.7 | 1.7 | — | — | 10.6 | ||||||||||||||||||
Amortization of intangible assets | 7.3 | 3.0 | 1.5 | 0.2 | — | 12.0 | ||||||||||||||||||
Non-GAAP Operating Income | $ | 84.4 | $ | 19.5 | $ | 29.2 | $ | 9.7 | $ | (6.5 | ) | $ | 136.4 | |||||||||||
GAAP Operating Margin | 1.64 | % | 0.49 | % | 1.02 | % | 2.07 | % | 1.10 | % | ||||||||||||||
Non-GAAP Operating Margin | 1.98 | % | 0.64 | % | 1.15 | % | 2.12 | % | 1.32 | % | ||||||||||||||
Thirteen Weeks Ended March 30, 2013 | ||||||||||||||||||||||||
Stock-based | Consolidated | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | compensation | Total | |||||||||||||||||||
Net Sales | $ | 4,073.8 | $ | 3,179.4 | $ | 2,547.2 | $ | 462.0 | $ | — | $ | 10,262.4 | ||||||||||||
GAAP Operating Income | $ | 66.6 | $ | 9.8 | $ | 16.2 | $ | 5.6 | $ | (7.4 | ) | $ | 90.8 | |||||||||||
Reorganization, integration and transition costs | 4.0 | 5.6 | 3.6 | — | — | 13.2 | ||||||||||||||||||
Amortization of intangible assets | 7.3 | 2.8 | 1.5 | 0.2 | — | 11.8 | ||||||||||||||||||
Non-GAAP Operating Income | $ | 77.9 | $ | 18.2 | $ | 21.3 | $ | 5.8 | $ | (7.4 | ) | $ | 115.8 | |||||||||||
GAAP Operating Margin | 1.63 | % | 0.31 | % | 0.64 | % | 1.21 | % | 0.88 | % | ||||||||||||||
Non-GAAP Operating Margin | 1.91 | % | 0.57 | % | 0.84 | % | 1.26 | % | 1.13 | % | ||||||||||||||
Thirteen Weeks Ended December 29, 2012 | ||||||||||||||||||||||||
Stock-based | Consolidated | |||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | compensation | Total | |||||||||||||||||||
Net Sales | $ | 4,656.2 | $ | 3,658.8 | $ | 2,462.2 | $ | 602.7 | $ | — | $ | 11,379.9 | ||||||||||||
GAAP Operating Income | $ | 79.5 | $ | 57.5 | $ | 19.8 | $ | 16.6 | $ | (5.4 | ) | $ | 167.9 | |||||||||||
Reorganization, integration and transition costs | 7.2 | 1.4 | 0.1 | — | — | 8.7 | ||||||||||||||||||
Amortization of intangible assets | 7.3 | 4.0 | 1.0 | 0.2 | — | 12.5 | ||||||||||||||||||
Non-GAAP Operating Income | $ | 94.0 | $ | 62.9 | $ | 20.9 | $ | 16.8 | $ | (5.4 | ) | $ | 189.1 | |||||||||||
GAAP Operating Margin | 1.71 | % | 1.57 | % | 0.80 | % | 2.75 | % | 1.48 | % | ||||||||||||||
Non-GAAP Operating Margin | 2.02 | % | 1.72 | % | 0.85 | % | 2.79 | % | 1.66 | % | ||||||||||||||
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