SANTA ANA, Calif., July 24, 2014 /PRNewswire/ -- Ingram Micro Inc.
(NYSE: IM) today announced financial results for the second quarter
ended June 28, 2014.
|
|
(US$ in millions,
except EPS)
|
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 beneifts
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 Monie, 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," Monie 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,
|
|
December
28,
|
|
2014
|
|
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
|
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
|
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
|
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)
|
|
-
|
|
Acquisitions 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
|
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%
|
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%
|
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.
|
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.
|
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
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based
compensation
|
|
Consolidated
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
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based compensation
|
|
Consolidated
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
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based compensation
|
|
Consolidated
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%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
-
|
|
-
|
|
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
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based compensation
|
|
Consolidated 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
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based compensation
|
|
Consolidated
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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SOURCE Ingram Micro Inc.