SANTA ANA, Calif., July 30, 2015 /PRNewswire/ -- Ingram Micro Inc.
(NYSE: IM) today announced financial results for the second quarter
ended July 4, 2015.
|
|
|
|
|
|
|
|
(US$ in millions,
except EPS)
|
Second Quarter
Ended
|
|
|
|
|
July
4,
|
|
June
28,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$10,553
|
1
|
$10,909
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
$151
|
|
$146
|
|
|
|
Non-GAAP operating
margin
|
1.43%
|
|
1.34%
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$2
|
2
|
$98
|
|
|
|
Operating
margin
|
0.02%
|
|
0.90%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
$88
|
|
$86
|
|
|
|
Net income
(loss)
|
($34)
|
|
$51
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
diluted share
|
$0.55
|
1
|
$0.54
|
|
|
|
Earnings per diluted
share
|
($0.22)
|
2
|
$0.32
|
|
|
|
|
|
|
|
|
|
|
1. The translation
of foreign currencies negatively impacted 2015 second quarter net
sales by 8%
|
|
|
|
|
|
|
and non-GAAP
earnings by 6 cents per diluted share, when compared to the 2014
second quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. GAAP operating
income and EPS for the 2015 second quarter was impacted by a
non-cash impairment of
|
|
|
|
|
|
|
internally
developed software related to the company's decision to stop its
global ERP deployment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, "Our teams are doing a
great job delivering increasingly rich and innovative products and
services to our customers and vendor partners through product and
macro-economic cycles. The results are evident in our second
quarter performance, as we grew revenue 5 percent in local
currencies, strongly leveraged our cost basis to improve non-GAAP
operating margin by 9 basis points and at the same time generated
excellent operating cash flow."
Monié continued, "Over the past three years, we have
successfully deployed capital to make important investments in
acquisitions, building organic capabilities, improving our
go-to-market motion and broadening our global presence. And
our efforts have been rewarded by increasing profitability and
earnings growth. From a liquidity standpoint, we also have
sufficient access to capital to run and grow our business, and we
will continue to make investments that evolve our model to deliver
greater profitability, especially from service offerings. Based on
our solid performance and confidence in our ability to deliver our
long term targets, we have decided to implement a new capital
allocation strategy that targets a return of one-third of our free
cash flow to shareholders on an annual basis. This will be done
through two vehicles: first, we are initiating a quarterly dividend
of 10 cents, beginning this third
quarter, which we intend to grow over time. Second, we will
fulfill the balance of our new capital allocation strategy through
share repurchases, both opportunistically and to offset dilution.
Accordingly, our board has approved an additional $300 million, three-year share repurchase
authorization."
Monié concluded, "As illustrated by our second quarter results
and our guidance for the third quarter, our strategies are working,
our performance is increasing and our commitment to deliver on our
longer term targets is only stronger."
The Ingram Micro Board of Directors has declared a quarterly
cash dividend of $0.10 per share of
the company's common stock. The dividend payment will be made on
September 15, 2015, to stockholders
of record at the close of market on September 1, 2015.
Second Quarter Results of Operations
Worldwide second quarter sales were $10.6
billion, down 3 percent in U.S. dollars and up 5 percent on
a currency neutral basis. Non-GAAP operating income of $151 million was up 3 percent, or up 12 percent
on a currency neutral basis, over last year. Non-GAAP operating
margin of 1.43 percent grew 9 basis points over last year.
North America, Europe and Asia
Pacific all delivered solid operating leverage, benefiting
from increased sales of higher value product categories in the
company's core business, including in networking, data security,
infrastructure software, unified communications and virtualization.
Additionally, operating margin benefited from softer demand in
lower margin retail and consumer markets, particularly for desktop
PCs in North America and
Europe. Strong leverage in
North America was offset by lower
profit contribution from the mobility distribution business.
Latin America profitability was
impacted by a greater mix of volume sales from acquired businesses
in Peru and Chile, where cost synergies are not expected
to be fully realized until the 2015 fourth quarter.
2015 second quarter non-GAAP net income was $88 million, with non-GAAP earnings of
55 cents per diluted share, up 2
percent when compared to the 2014 second quarter, and up 13 percent
on a currency neutral basis. Compared to the same period of 2014,
the translation of foreign currencies negatively impacted 2015
second quarter non-GAAP earnings by 6
cents per diluted share. This amount was 2 cents higher than the company anticipated when
it provided its initial earnings outlook for the 2015 second
quarter.
In addition to excluding reorganization, integration and other
transition costs associated with the implementation of cost savings
plans and recent acquisitions, non-GAAP operating income and
non-GAAP earnings exclude a non-cash, pre-tax charge of
$116 million related to an impairment
of internally developed software, which is covered in more detail
below in the business highlights section.
Key 2015 second quarter business highlights:
- Cash provided by operations for the 2015 second quarter was
nearly $570 million.
- Working capital days at the end of the quarter were 27, a 4 day
sequential decrease from the 2015 first quarter and in-line with
last year.
- Since the announcement of the resumption of the company's share
repurchase program in early May 2015
through July 28, 2015, Ingram Micro
has repurchased 4.7 million shares for a total cost of $119 million dollars.
- In July 2015, Ingram Micro began
taking actions globally on its previously announced cost savings
program, including implementing lean corporate initiatives and
further empowering individual countries where much of the actual
business motion occurs. These actions are expected to enable the
organization to get closer to customers and partners and support
more rapid decision making at the country level, while producing
additional efficiency and productivity gains. The company continues
to expect to deliver annual global cost savings of $100 million in 2016. The company notified the
majority of its impacted associates in July and expects to realize
approximately $5 million of cost
savings in the 2015 third quarter and $10
million of cost savings in the 2015 fourth quarter. Costs
associated with these actions are now expected to be in the range
of $50 to $60 million.
- The company began its program to deploy a new global ERP system
7 years ago. Over that period, the business has significantly
diversified and new technologies allow legacy systems and diverse
applications to easily be connected in a modular way, which allows
these legacy systems to be part of a flexible, powerful and
efficient solution. After careful evaluation, the company has
concluded that this combined systems strategy is more flexible and
economical and better aligned with its evolving business model than
a single global system. Accordingly, the company has stopped its
global ERP deployment and recorded a non-cash, pre-tax charge
related to an impairment of internally developed
software.
- Ingram Micro continued its expansion into the Middle East's high growth IT market through
the acquisition of a 75 percent interest in the business assets of
Arabian Applied Technology, the largest value-added technology
solutions distributor in Saudi
Arabia. The addition is expected to contribute revenue of
approximately $200 million on a full year basis and the
partial contribution this year is expected to be modestly accretive
to Ingram Micro's earnings in 2015.
- Ingram Micro continued to broaden its mobility services
expertise with the acquisition of CANAI Group and Clarity
Technology, adding services including retail, carrier and web-based
trade-in processes, sustainable recovery, and reuse and recycling
of electronic products, reverse logistics, repairs, parts and
accessory management and diagnostics and repair avoidance. Revenue
and earnings from these acquisitions are not expected to be
material in 2015.
- Ingram Micro significantly expanded its global cloud presence
in Europe and Asia Pacific, launching its latest cloud
marketplace in Australia,
Belgium, Germany, Italy, New
Zealand, Spain and
Sweden. The company's automated
Cloud Marketplace is now available for vendor partners and
customers in 13 countries worldwide. The Ingram Micro Cloud
Marketplace is an ecosystem of buyers, sellers and solutions that
empowers channel partners and IT professionals to configure,
provision and manage cloud technologies with confidence and ease.
The Cloud Marketplace enables efficient management of the complete
end-customer cloud subscription lifecycle from a single, automated
platform, and offers an end-to-end portfolio of vetted cloud
solutions that covers all major business categories including
infrastructure, security, communication and collaboration, business
applications and platform, and cloud management services.
- Ingram Micro companies received a number of vendor partner and
industry awards including:
- The company's Armada business, the largest value-added
technology distributor in Turkey,
received the Cisco Distribution Partner of the Year Award. Armada
was recognized for its high sales volumes, business developments in
small and medium-sized enterprises and contributions to the
development of IT sector in 2014.
- Ingram Micro's Aptec business in the Middle East, Turkey and Africa received the VMware Distributor of the
Year Award.
- Ingram Micro's Promark Technology business, one of the premier
value added distributors in the United States, was named the 2014-2015
Distributor of the Year by Nutanix.
- Ingram Micro Canada earned two distinct honors from Staples,
Inc. for its service excellence and new business contributions
around the Staples Advantage Marketplace and Mobility: The Staples
Advantage Technology Vendor Award and Staples Category Development
Award.
- Additionally, Ingram Micro was named a multiple
2015 ChannelPro Readers' Choice Award winner,
receiving four gold awards in the categories of Distributors for
Best Cloud/MSP Service Offerings, Best Financing Options, Best
Sales Support, and Best Training Programs; as well as one silver
award for Best Hardware/Software. The wins represent the fourth
consecutive year Ingram Micro has outperformed its
competition to capture top honors across multiple categories.
Outlook
The following statements are based on the company's current
expectations for the 2015 third quarter and exclude the
amortization of intangible assets, charges associated with
acquisition-related costs, reorganization, integration and
transition costs and charges associated with expense reduction
programs and 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. These statements are
forward-looking and actual results may differ materially.
For the 2015 third quarter, Ingram Micro currently expects
consolidated sales in the range of $10.5 to
$11.0 billion. Non-GAAP earnings per diluted share for the
2015 third quarter are expected to be in the range of 60 to 68 cents, which includes a negative impact
of 6 cents related to currency movement, when compared with
the third quarter last year. The company also said that it expects
to generate approximately $700
million in cash flow from operations for the 2015 full
year.
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 charges associated with reorganization,
acquisitions, integration and transition costs, including those
associated with the company's previously announced cost savings
programs, and the amortization of intangible assets. These non-GAAP
financial measures also exclude a charge related to an impairment
of internally developed software in the second quarter of 2015
resulting from the company's decision to stop its global ERP
deployment. 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. Non-GAAP earnings per
diluted share for the thirteen weeks ended July 4, 2015 also reflects the impact of 3.2
million common stock equivalents that are excluded from GAAP
diluted weighted average shares because they are antidilutive with
respect to the GAAP net loss.
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 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 is 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
(877) 869-3847 (toll-free within the
United States and Canada)
or (201) 689-8261 (other countries).
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 (877) 660-6853 or (201) 612-7415,
conference ID "13611356."
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.
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 within the meaning of the Private Securities Litigation
Reform Act, including statements relating to the expected benefits
from acquisitions and our ability to enhance earnings power and the
impact of foreign currency rates, 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) changes in
macro-economic conditions, including from currency movements, can
affect our business and results of operations; (2) our acquisition
and investment strategies may not produce the expected benefits and
our cost reduction programs may not produce the anticipated
benefits, each of which may adversely affect results of
operations; (3) failure to declare and pay our quarterly
dividend as planned; (4) we are dependent on a variety of
information systems, which, if not properly functioning, and
available, or if we experience system security breaches,
data protection breaches or other cyber-attacks, could
adversely disrupt our business and harm our reputation and net
sales; (5) failure to retain and recruit key personnel would harm
our ability to meet key objectives; (6) we operate a global
business that exposes us to risks associated with conducting
business in multiple jurisdictions; (7) our failure to adequately
adapt to industry changes could negatively impact our future
operating results; (8) we continually experience intense
competition across all markets for our products and services; (9)
termination of a key 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; (10) substantial defaults by our
customers or the loss of significant customers could negatively
impact our business, results of operations, financial condition or
liquidity; (11) 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; (12) our goodwill,
identifiable intangible assets, and other long-lived assets
could become impaired, which could reduce the value of our assets
and reduce our net income in the year in which the write-off
occurs; (13) 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; (14) we cannot predict the
outcome of litigation matters and other contingencies that we may
be involved with from time to time; (15) we may become
involved in intellectual property disputes that could cause us to
incur substantial costs, divert the efforts of management or
require us to pay substantial damages or licensing fees;
(16) our failure to comply with the requirements of
environmental regulations could adversely affect our business;
(17) 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; (18)
changes in accounting rules could adversely affect our future
operating results; and (19) our quarterly results have fluctuated
significantly. There are additional contingencies
associated with each of the above identified risks. For
example, in connection with our acquisition strategy, we risk
failing to realize the anticipated benefits of an acquisition due
to, among other things, the unsuccessful integration of an acquired
business. Despite its global presence, Ingram Micro may fail to
proactively identify and tap into emerging markets and
geographies. We have historically instituted, and will
continue to institute, changes to our strategies, operations and
processes in an effort to address and mitigate risks; however,
there are no assurances 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 our SEC filings, and
specifically to Item 1A-Risk Factors, of our latest Annual
Report on Form 10K.
© 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)
|
|
|
|
|
|
|
|
|
|
July
4,
|
|
January
3,
|
|
2015
|
|
2015
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 766,492
|
|
$ 692,777
|
Trade accounts
receivable, net
|
4,921,884
|
|
6,115,328
|
Inventory
|
3,796,176
|
|
4,145,012
|
Other current
assets
|
646,761
|
|
532,406
|
|
|
|
|
Total current
assets
|
10,131,313
|
|
11,485,523
|
|
|
|
|
Property and
equipment, net
|
333,756
|
|
432,430
|
Goodwill
|
555,927
|
|
532,483
|
Intangible assets,
net
|
328,678
|
|
318,689
|
Other
assets
|
64,235
|
|
62,318
|
|
|
|
|
Total
assets
|
$11,413,909
|
|
$12,831,443
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 5,464,524
|
|
$ 6,522,369
|
Accrued
expenses
|
565,012
|
|
542,038
|
Short-term debt and
current maturities of long-term debt
|
86,204
|
|
372,026
|
|
|
|
|
Total current
liabilities
|
6,115,740
|
|
7,436,433
|
|
|
|
|
Long-term debt, less
current maturities
|
1,097,102
|
|
1,096,889
|
Other
liabilities
|
124,373
|
|
132,295
|
|
|
|
|
Total
liabilities
|
7,337,215
|
|
8,665,617
|
|
|
|
|
Stockholders'
equity
|
4,076,694
|
|
4,165,826
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$11,413,909
|
|
$12,831,443
|
Ingram Micro
Inc.
|
Consolidated
Statement of Income (Loss)
|
(Amounts in 000s,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Thirteen
Weeks Ended
|
|
July 4,
2015
|
|
June 28,
2014
|
|
|
|
|
Net sales
|
$10,553,278
|
|
$ 10,909,379
|
Cost of
sales
|
9,896,453
|
|
10,275,634
|
Gross
profit
|
656,825
|
|
633,745
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling, general and
administrative
|
515,575
|
|
497,592
|
Amortization of
intangible assets
|
17,089
|
|
14,421
|
Reorganization
costs
|
6,236
|
|
23,513
|
Impairment of
internally developed software
|
115,856
|
|
-
|
|
654,756
|
|
535,526
|
|
|
|
|
Income from
operations
|
2,069
|
|
98,219
|
|
|
|
|
Other expense
(income):
|
|
|
|
Interest
income
|
(1,201)
|
|
(1,312)
|
Interest
expense
|
21,212
|
|
18,425
|
Net foreign currency
exchange loss
|
6,738
|
|
582
|
Other
|
3,481
|
|
3,561
|
|
30,230
|
|
21,256
|
|
|
|
|
Income (loss) before
income taxes
|
(28,161)
|
|
76,963
|
|
|
|
|
Provision for income
taxes
|
6,132
|
|
26,350
|
|
|
|
|
Net income
(loss)
|
$ (34,293)
|
|
$ 50,613
|
|
|
|
|
Diluted earnings per
share
|
$
(0.22)
|
|
$
0.32
|
|
|
|
|
Diluted weighted
average shares
outstanding
|
156,329
|
|
159,186
|
Ingram Micro
Inc.
|
Consolidated
Statement of Income
|
(Amounts in 000s,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Twenty-six
Weeks Ended
|
|
July 4,
2015
|
|
June 28,
2014
|
|
|
|
|
Net sales
|
$ 21,197,704
|
|
$ 21,293,368
|
Cost of
sales
|
19,923,418
|
|
20,049,043
|
Gross
profit
|
1,274,286
|
|
1,244,325
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling, general and
administrative
|
1,015,350
|
|
987,236
|
Amortization of
intangible assets
|
33,020
|
|
28,573
|
Reorganization
costs
|
10,276
|
|
61,937
|
Impairment of
internally developed software
|
115,856
|
|
-
|
|
1,174,502
|
|
1,077,746
|
|
|
|
|
Income from
operations
|
99,784
|
|
166,579
|
|
|
|
|
Other expense
(income):
|
|
|
|
Interest
income
|
(1,659)
|
|
(2,737)
|
Interest
expense
|
43,370
|
|
37,747
|
Net foreign currency
exchange loss
|
14,276
|
|
2,170
|
Other
|
6,943
|
|
8,544
|
|
62,930
|
|
45,724
|
|
|
|
|
Income before income
taxes
|
36,854
|
|
120,855
|
|
|
|
|
Provision for income
taxes
|
27,872
|
|
45,409
|
|
|
|
|
Net income
|
$
8,982
|
|
$
75,446
|
|
|
|
|
Diluted earnings per
share
|
$
0.06
|
|
$
0.47
|
|
|
|
|
Diluted weighted
average shares
outstanding
|
159,549
|
|
158,962
|
Ingram Micro
Inc.
|
Consolidated
Statement of Cash Flows
|
(Amounts in
000s)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks
Ended
|
|
|
|
|
|
July 4,
2015
|
|
June 28,
2014
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$ 8,982
|
|
$ 75,446
|
|
Adjustments to
reconcile net income to cash provided (used) by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
76,499
|
|
71,089
|
|
|
Stock-based
compensation
|
17,529
|
|
16,460
|
|
|
Excess tax benefit
from stock-based compensation
|
(4,149)
|
|
(3,703)
|
|
|
Loss on write-off of
assets
|
-
|
|
8,302
|
|
|
Gain on sale of
property and equipment
|
(146)
|
|
-
|
|
|
Impairment of
internally developed software
|
115,856
|
|
-
|
|
|
Noncash charges for
interest and bond discount amortization
|
1,510
|
|
1,181
|
|
|
Deferred income
taxes
|
6,117
|
|
(5,767)
|
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
Trade accounts
receivable
|
1,173,852
|
|
593,179
|
|
|
Inventory
|
328,530
|
|
(466,876)
|
|
|
Other current
assets
|
(129,910)
|
|
(49,659)
|
|
|
Accounts
payable
|
(860,437)
|
|
(568,496)
|
|
|
Change in book
overdrafts
|
(84,010)
|
|
78,263
|
|
|
Accrued
expenses
|
(23,299)
|
|
(201,703)
|
|
|
|
|
Cash provided (used)
by operating activities
|
626,924
|
|
(452,284)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(56,573)
|
|
(40,897)
|
|
Sale of marketable
securities, net
|
-
|
|
1,100
|
|
Proceeds from sale of
property and equipment
|
359
|
|
-
|
|
Cost-based
investment
|
-
|
|
(10,000)
|
|
Acquisitions, net of
cash acquired
|
(94,255)
|
|
(17,367)
|
|
|
|
|
Cash used by
investing activities
|
(150,469)
|
|
(67,164)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
exercise of stock options
|
6,267
|
|
11,511
|
|
Repurchase of Class A
Common Stock
|
(44,208)
|
|
-
|
|
Excess tax benefit
from stock-based compensation
|
4,149
|
|
3,703
|
|
Other consideration
for acquisitions
|
(2,358)
|
|
-
|
|
Net proceeds from
(repayments of) revolving credit facilities
|
(353,784)
|
|
311,187
|
|
|
|
|
Cash provided (used)
by financing activities
|
(389,934)
|
|
326,401
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(12,806)
|
|
(10,652)
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
73,715
|
|
(203,699)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
692,777
|
|
674,390
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$ 766,492
|
|
$ 470,691
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Income from
Operations - Reconciliation of GAAP to Non-GAAP
Information
|
(Amounts in
Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended July 4, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internally
|
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based Compensation
|
|
Developed
Software
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
4,618.5
|
|
$ 2,855.0
|
|
$ 2,481.5
|
|
$ 598.3
|
|
$
-
|
|
$
-
|
|
$ 10,553.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
80.6
|
|
$ 11.4
|
|
$ 30.9
|
|
$
6.1
|
|
$
(11.0)
|
|
$
(115.9)
|
|
$
2.1
|
Reorganization,
integration and transition costs
|
8.6
|
|
4.7
|
|
0.4
|
|
1.7
|
|
-
|
|
-
|
|
15.4
|
Amortization of
intangible assets
|
10.3
|
|
4.8
|
|
1.8
|
|
0.2
|
|
-
|
|
-
|
|
17.1
|
Impairment of
internally developed software
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
115.9
|
|
115.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
$
99.5
|
|
$ 20.9
|
|
$ 33.1
|
|
$ 8.0
|
|
$
(11.0)
|
|
$
-
|
|
$ 150.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
1.75%
|
|
0.40%
|
|
1.25%
|
|
1.01%
|
|
|
|
|
|
0.02%
|
Non-GAAP Operating
Margin
|
2.15%
|
|
0.73%
|
|
1.33%
|
|
1.33%
|
|
|
|
|
|
1.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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%
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Income from
Operations - Reconciliation of GAAP to Non-GAAP
Information
|
(Amounts in
Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks
Ended July 4, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internally
|
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based Compensation
|
|
Developed
Software
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
9,060.1
|
|
$5,929.2
|
|
$ 5,025.7
|
|
$
1,182.7
|
|
$
-
|
|
$
-
|
|
$ 21,197.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
$
134.9
|
|
$ 18.3
|
|
$ 62.6
|
|
$
17.4
|
|
$
(17.5)
|
|
$
(115.9)
|
|
$
99.8
|
Reorganization,
integration and transition costs
|
14.3
|
|
8.2
|
|
2.3
|
|
2.3
|
|
-
|
|
-
|
|
27.1
|
Amortization of
intangible assets
|
20.7
|
|
8.1
|
|
3.7
|
|
0.4
|
|
-
|
|
-
|
|
32.9
|
Impairment of
internally developed software
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
115.9
|
|
115.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
$
169.9
|
|
$ 34.6
|
|
$ 68.6
|
|
$
20.1
|
|
$
(17.5)
|
|
$
-
|
|
$ 275.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
1.49%
|
|
0.31%
|
|
1.25%
|
|
1.47%
|
|
|
|
|
|
0.47%
|
Non-GAAP Operating
Margin
|
1.88%
|
|
0.58%
|
|
1.36%
|
|
1.70%
|
|
|
|
|
|
1.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(Loss)
|
$
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%
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Amounts in
Millions, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended July 4, 2015
|
|
|
|
Diluted
|
|
Net Income
(Loss)
|
|
Earnings per Share
(a)
|
|
|
|
|
As Reported Under
GAAP
|
$
(34.3)
|
|
$
(0.22)
|
Reorganization,
integration and transition costs
|
8.9
|
|
0.06
|
Amortization of
intangible assets
|
12.6
|
|
0.08
|
Impairment of
internally developed software
|
99.7
|
|
0.64
|
Pan-Europe foreign
exchange loss
|
0.8
|
|
0.00
|
Share dilution
(b)
|
-
|
|
(0.01)
|
|
|
|
|
Non-GAAP Financial
Measure
|
$
87.7
|
|
$
0.55
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended June 28, 2014
|
|
|
|
Diluted
|
|
Net
Income
|
|
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
|
|
|
(a)
|
Per share impact is
calculated by dividing net income amount by the diluted weighted
average shares outstanding of
156.3 and 159.2 for the thirteen weeks ended July 4, 2015 and June
28, 2014, respectively.
|
|
|
(b)
|
Share dilution
reflects impact of 3.2 common stock equivalents that are excluded
from GAAP diluted weighted
average shares
because they are antidilutive with respect to the GAAP net
loss.
|
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 July 4, 2015
|
|
|
|
Diluted
|
|
Net
Income
|
|
Earnings per Share
(a)
|
|
|
|
|
As Reported Under
GAAP
|
$
9.0
|
|
$
0.06
|
Reorganization,
integration and transition costs
|
19.9
|
|
0.13
|
Amortization of
intangible assets
|
23.9
|
|
0.15
|
Impairment of
internally developed software
|
99.7
|
|
0.62
|
Pan-Europe foreign
exchange loss
|
3.4
|
|
0.02
|
|
|
|
|
Non-GAAP Financial
Measure
|
$ 155.9
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
Twenty-six Weeks
Ended June 28, 2014
|
|
|
|
Diluted
|
|
Net
Income
|
|
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
|
|
|
(a)
|
Per share impact is
calculated by dividing net income amount by the diluted weighted
average shares outstanding of 159.5 and 159.0 for the twenty-six
weeks ended July 4, 2015 and June 28, 2014,
respectively.
|
Logo - http://photos.prnewswire.com/prnh/20140625/121642
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ingram-micro-reports-second-quarter-financial-results-300121480.html
SOURCE Ingram Micro Inc.