SANTA ANA, Calif., June 25, 2014 /PRNewswire/ -- Ingram Micro
Inc. (NYSE: IM) held an investor briefing today in New York City that was also webcast live.
During the presentations, company executives outlined the company's
ongoing strategy to extract more value from its core technology
solutions business, while accelerating growth in higher margin
business lines including mobility, cloud and supply chain
solutions. The company said it was on-track to meet or exceed its
2015 financial targets1 and also set 2016 financial
targets for the first time, which included:
- Consolidated revenue expected to increase at a compound annual
growth rate of 4% to 6% through 2016;
- Non-GAAP operating margins expectations of 175 to 200 basis
points of revenue in 2016;
- Operating cash flow generation of $1.0
to $1.2 billion between 2014 to 2016; and
- $3.40 to $3.70 in non-GAAP
earnings per diluted share in 2016.
- Returns on invested capital are targeted to be 300 basis points
above the company's weighted average cost of capital.
Alain Monie, Ingram Micro CEO,
commented, "As outlined over the course of today's presentations,
we are executing well against our strategic initiatives, which is
resulting in much stronger profitability accompanied by solid
revenue increases across all lines of business. We are driving
productivity and efficiencies across the company, while organically
investing in, and also acquiring, key strategic capabilities to
accelerate growth and increase the mix of higher margin services
revenues. We are resolute in our on focus on execution and we will
continue to demand more from our businesses, which will enable us
to continue to deliver even better future financial
performance."
A replay of the audio webcast of the investor briefing, along
with the accompanying presentation slides, is available on the
company's website at www.ingrammicro.com (Investor Relations
section).
1. 2015 financial targets and current expectations.
|
2015
Financial Targets
|
Current
Expectations for
2015
|
Revenue
|
4% – 6% CAGR
|
Exceed
|
Gross
Margin
|
5.40% –
5.60%
|
Exceed
|
Operating
Margin
|
155bps –
175bps
|
Within range
|
Non-GAAP
EPS
|
$2.60-$3.10
|
Toward high end of
range
|
Return on
invested capital
|
300-500bps
above weighted average cost of
capital
|
Toward low end of
range
|
About Ingram Micro Inc.
Ingram Micro helps businesses
realize the promise of technology. No other company delivers
the full spectrum of global technology and supply chain services to
businesses around the world. Ingram Micro's global infrastructure
and deep expertise in technology solutions, supply chain, cloud and
mobility enable its 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 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.
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