Insight Enterprises, Inc. Reports Third Quarter 2015 Results
October 28 2015 - 4:00PM
Insight Enterprises, Inc. (Nasdaq:NSIT) (the
“Company”) today reported results of operations for the quarter
ended September 30, 2015.
- Consolidated net sales of $1.34 billion for the third quarter
of 2015 increased 8% compared to the third quarter of 2014, up 13%
year over year excluding the effects of foreign currency movements.
- Net sales in North America of $1.0 billion increased 15%;
- Net sales in EMEA of $293.6 million decreased 6%, but increased
6% excluding the effects of foreign currency movements; and
- Net sales in APAC of $26.1 million decreased 20%, down 7%
excluding the effects of foreign currency movements.
- Consolidated gross profit of $182.3 million increased 6%
compared to the third quarter of 2014, up 11% year over year
excluding the effects of foreign currency movements.
Consolidated gross margin decreased approximately 30 basis points
to 13.6% of net sales.
- Gross profit in North America of $136.0 million (13.3% gross
margin) increased 13% year over year;
- Gross profit in EMEA of $40.9 million (13.9% gross margin) was
down 9% year to year, but increased 3% year over year excluding the
effects of foreign currency movements; and
- Gross profit in APAC of $5.3 million (20.3% gross margin) was
down 21% year to year, down 5% excluding the effects of foreign
currency movements.
- Consolidated earnings from operations increased 15% compared to
the third quarter of 2014 to $32.6 million, or 2.4% of net
sales. Excluding the effects of foreign currency movements,
the increase in consolidated earnings from operations was 17% year
over year.
- Earnings from operations in North America increased 23% year
over year to $31.6 million, or 3.1% of net sales;
- Earnings from operations in EMEA decreased 49% year to year to
$1.0 million, or 0.4% of net sales, down 46% excluding the effects
of foreign currency movements; and
- Earnings from operations in APAC decreased 97% year to year to
$22,000, or 0.1% of net sales. Excluding the effects of
foreign currency movements, the decrease in APAC’s earnings from
operations was 96% year to year.
- Non-GAAP consolidated earnings from operations for the third
quarter of 2015, which exclude severance and restructuring expenses
in both periods and a non-cash real estate impairment charge of
$800,000 in the 2015 period, increased 19% year over year to $34.3
million, or 2.6% of net sales.*
- Consolidated net earnings and diluted earnings per share for
the third quarter of 2015 were $20.8 million and $0.56,
respectively, at an effective tax rate of 35.0%.
- Non-GAAP consolidated net earnings and diluted earnings per
share for the third quarter of 2015, which exclude severance and
restructuring expenses and a non-cash real estate impairment charge
and the tax effect of these charges, were $21.9 million and $0.59,
respectively.*
- During the three months ended September 30, 2015, the Company
repurchased approximately 194,000 shares of its common stock, which
represented the remaining $5.9 million authorized under previously
approved repurchase programs.
“In the third quarter, our team delivered double digit sales and
gross profit growth in constant currency and controlled
discretionary expenses, which resulted in strong earnings
growth year over year,” stated Ken Lamneck, President and Chief
Executive Officer. “We are pleased with our sales and
operational execution in the first nine months of 2015.
Despite currency headwinds, we have delivered solid financial
results this year while growing our sales force globally, and most
recently we enhanced our services expertise with the
acquisition of BlueMetal on October 1st. We believe our
actions so far this year will serve us well as we close out 2015
and head into 2016,” added Lamneck.
The Company refers to changes in net sales, gross profit and
earnings from operations on a consolidated basis and in EMEA and
APAC excluding the effects of foreign currency movements. In
computing these changes and percentages, the Company compares the
current year amount as translated into U.S. dollars under the
applicable accounting standards to the prior year amount in local
currency translated into U.S. dollars utilizing the weighted
average translation rate for the current period.
Net of tax amounts referenced herein were computed using the
statutory tax rate for the taxing jurisdictions in the operating
segment in which the related expenses were recorded, adjusted for
the effects of valuation allowances on net operating losses in
certain jurisdictions.
* A tabular reconciliation of financial measures prepared in
accordance with United States generally accepted accounting
principles (“GAAP”) to non-GAAP financial measures is included at
the end of this press release.
GUIDANCE
For the full year 2015, the Company continues to expect top line
growth in the low single digits in U.S. dollar terms. In the
fourth quarter, the Company expects diluted earnings per share to
be between $0.56 and $0.61 and, for the full year, diluted earnings
per share is expected to be between $2.10 and $2.15.
This outlook reflects:
- the adverse effect on gross profit of previously announced
partner program changes in the software category, which the Company
expects to be approximately $8 million for the full year 2015;
- an effective tax rate of 38% for the fourth quarter; and
- average common shares outstanding of approximately 38.3 million
for the full year 2015.
This outlook excludes severance and restructuring expenses
incurred during the year and the non-cash real estate impairment
charge recorded in the third quarter.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live web cast today
at 5:00 p.m. ET to discuss third quarter 2015 results of
operations. A live web cast of the conference call (in
listen-only mode) will be available on the Company’s web site
at http://nsit.client.shareholder.com/events.cfm, and a replay
of the web cast will be available on the Company’s web site for a
limited time following the call. To listen to the live web
cast by telephone, call 1-877-402-8904 if located in the U.S.,
678-809-1029 for international callers, and enter the access code
61039037. NSIT-F
USE OF NON-GAAP FINANCIAL
MEASURES
The non-GAAP financial measures exclude severance and
restructuring expenses, non-cash real estate impairment and
accelerated depreciation charges and the tax effect of these
charges. The Company excludes these charges when internally
evaluating earnings from operations, tax expense, net earnings and
diluted earnings per share for the Company and earnings from
operations for each of the Company’s operating segments.
These non-GAAP measures are used to evaluate financial performance
against budgeted amounts, to calculate incentive compensation, to
assist in forecasting future performance and to compare the
Company’s results to those of the Company’s competitors. The
Company believes that these non-GAAP financial measures are useful
to investors because they allow for greater transparency,
facilitate comparisons to prior periods and the Company’s
competitors’ results and assist in forecasting performance for
future periods. These non-GAAP financial measures are not
prepared in accordance with GAAP and may be different from non-GAAP
financial measures presented by other companies. Non-GAAP
financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP.
| |
| FINANCIAL
SUMMARY TABLE |
| (DOLLARS IN
THOUSANDS, EXCEPT PER SHARE DATA) |
|
(UNAUDITED) |
| |
|
|
| |
Three Months Ended September 30, |
Nine
Months Ended September 30, |
| Insight
Enterprises, Inc. |
|
2015 |
|
|
2014 |
|
change |
|
2015 |
|
|
2014 |
|
change |
| Net sales |
$ |
1,342,195 |
|
$ |
1,237,668 |
|
|
8 |
% |
$ |
3,985,905 |
|
$ |
3,870,095 |
|
|
3 |
% |
| Gross profit |
$ |
182,251 |
|
$ |
171,820 |
|
|
6 |
% |
$ |
535,479 |
|
$ |
530,164 |
|
|
1 |
% |
| Gross margin |
|
13.6 |
% |
|
13.9 |
% |
(30 bps) |
|
13.4 |
% |
|
13.7 |
% |
(30 bps) |
| Selling and administrative
expenses |
$ |
148,796 |
|
$ |
143,134 |
|
|
4 |
% |
$ |
437,596 |
|
$ |
433,373 |
|
|
1 |
% |
| Severance and
restructuring expenses |
$ |
817 |
|
$ |
308 |
|
|
165 |
% |
$ |
1,912 |
|
$ |
955 |
|
|
100 |
% |
| Earnings from
operations |
$ |
32,638 |
|
$ |
28,378 |
|
|
15 |
% |
$ |
95,971 |
|
$ |
95,836 |
|
|
- |
|
| Net earnings |
$ |
20,825 |
|
$ |
17,402 |
|
|
20 |
% |
$ |
57,275 |
|
$ |
56,201 |
|
|
2 |
% |
| Diluted earnings per
share |
$ |
0.56 |
|
$ |
0.42 |
|
|
33 |
% |
$ |
1.49 |
|
$ |
1.36 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
| North
America |
|
|
|
|
|
|
| Net sales |
$ |
1,022,432 |
|
$ |
891,345 |
|
|
15 |
% |
$ |
2,823,791 |
|
$ |
2,561,279 |
|
|
10 |
% |
| Gross profit |
$ |
135,998 |
|
$ |
120,214 |
|
|
13 |
% |
$ |
375,730 |
|
$ |
352,665 |
|
|
7 |
% |
| Gross margin |
|
13.3 |
% |
|
13.5 |
% |
(20 bps) |
|
13.3 |
% |
|
13.8 |
% |
(50 bps) |
| Selling and administrative
expenses |
$ |
103,793 |
|
$ |
94,382 |
|
|
10 |
% |
$ |
295,228 |
|
$ |
278,121 |
|
|
6 |
% |
| Severance and
restructuring expenses |
$ |
618 |
|
$ |
102 |
|
|
506 |
% |
$ |
873 |
|
$ |
165 |
|
|
429 |
% |
| Earnings from
operations |
$ |
31,587 |
|
$ |
25,730 |
|
|
23 |
% |
$ |
79,629 |
|
$ |
74,379 |
|
|
7 |
% |
|
|
|
|
|
|
|
|
| EMEA |
|
|
|
|
|
|
| Net sales |
$ |
293,635 |
|
$ |
313,644 |
|
|
(6 |
%) |
$ |
1,029,103 |
|
$ |
1,148,444 |
|
|
(10 |
%) |
| Gross profit |
$ |
40,949 |
|
$ |
44,895 |
|
|
(9 |
%) |
$ |
138,575 |
|
$ |
150,302 |
|
|
(8 |
%) |
| Gross margin |
|
13.9 |
% |
|
14.3 |
% |
(40 bps) |
|
13.5 |
% |
|
13.1 |
% |
40 bps |
| Selling and administrative
expenses |
$ |
39,721 |
|
$ |
42,684 |
|
|
(7 |
%) |
$ |
125,232 |
|
$ |
135,819 |
|
|
(8 |
%) |
| Severance and
restructuring expenses |
$ |
199 |
|
$ |
209 |
|
|
(5 |
%) |
$ |
1,039 |
|
$ |
684 |
|
|
52 |
% |
| Earnings from
operations |
$ |
1,029 |
|
$ |
2,002 |
|
|
(49 |
%) |
$ |
12,304 |
|
$ |
13,799 |
|
|
(11 |
%) |
|
|
|
|
|
|
|
|
| APAC |
|
|
|
|
|
|
| Net sales |
$ |
26,128 |
|
$ |
32,679 |
|
|
(20 |
%) |
$ |
133,011 |
|
$ |
160,372 |
|
|
(17 |
%) |
| Gross profit |
$ |
5,304 |
|
$ |
6,711 |
|
|
(21 |
%) |
$ |
21,174 |
|
$ |
27,197 |
|
|
(22 |
%) |
| Gross margin |
|
20.3 |
% |
|
20.5 |
% |
(20 bps) |
|
15.9 |
% |
|
17.0 |
% |
(110 bps) |
| Selling and administrative
expenses |
$ |
5,282 |
|
$ |
6,068 |
|
|
(13 |
%) |
$ |
17,136 |
|
$ |
19,433 |
|
|
(12 |
%) |
| Severance and
restructuring expenses |
$ |
- |
|
$ |
(3 |
) |
** |
$ |
- |
|
$ |
106 |
|
** |
| Earnings from
operations |
$ |
22 |
|
$ |
646 |
|
|
(97 |
%) |
$ |
4,038 |
|
$ |
7,658 |
|
|
(47 |
%) |
| |
|
|
|
| |
North
America |
EMEA |
APAC |
|
|
Three Months Ended September
30, |
Three Months Ended September
30, |
Three Months Ended September
30, |
|
Sales Mix |
|
2015 |
|
|
2014 |
|
% change* |
|
2015 |
|
|
2014 |
|
% change* |
|
2015 |
|
|
2014 |
|
% change* |
| Hardware |
|
63 |
% |
|
63 |
% |
|
14 |
% |
|
46 |
% |
|
45 |
% |
|
(5 |
%) |
|
13 |
% |
|
10 |
% |
|
11 |
% |
| Software |
|
30 |
% |
|
31 |
% |
|
15 |
% |
|
51 |
% |
|
52 |
% |
|
(8 |
%) |
|
82 |
% |
|
86 |
% |
|
(24 |
%) |
| Services |
|
7 |
% |
|
6 |
% |
|
24 |
% |
|
3 |
% |
|
3 |
% |
|
1 |
% |
|
5 |
% |
|
4 |
% |
|
(10 |
%) |
| |
|
100 |
% |
|
100 |
% |
|
15 |
% |
|
100 |
% |
|
100 |
% |
|
(6 |
%) |
|
100 |
% |
|
100 |
% |
|
(20 |
%) |
| |
|
|
|
|
|
|
|
|
|
* Represents growth/decline in category net sales on a U.S.
dollar basis and does not exclude the effects of foreign currency
movements.
** Percentage change not considered meaningful.
FORWARD-LOOKING INFORMATION
Certain statements in this release and the related conference
call and web cast are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements, including the Company’s
expected fourth quarter and full year 2015 financial results,
including top line growth rates and diluted earnings per share, and
the assumptions relating thereto, including the effect on gross
profit of partner program changes, the Company’s effective tax
rate, the expected average outstanding share count for 2015 and
trends and opportunities relating to the IT industry, are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified. Future events and actual results
could differ materially from those set forth in, contemplated by,
or underlying the forward-looking statements. There can be no
assurances that the results discussed by the forward-looking
statements will be achieved, and actual results may differ
materially from those set forth in the forward-looking
statements. Some of the important factors that could cause
the Company’s actual results to differ materially from those
projected in any forward-looking statements, include, but are not
limited to, the following, which are discussed in “Risk Factors” in
Part I, Item 1A of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2014:
- the Company’s reliance on partners for product availability and
competitive products to sell as well as the Company’s competition
with its partners;
- the Company’s reliance on partners for marketing funds and
purchasing incentives;
- changes in the IT industry and/or rapid changes in
technology;
- actions of the Company’s competitors, including manufacturers
and publishers of products the Company sells;
- failure to comply with the terms and conditions of the
Company’s commercial and public sector contracts;
- disruptions in the Company’s IT systems and voice and data
networks;
- the security of the Company’s electronic and other confidential
information;
- general economic conditions;
- the Company’s reliance on commercial delivery services;
- the Company’s dependence on certain personnel;
- the variability of the Company’s net sales and gross
profit;
- the risks associated with the Company’s international
operations;
- exposure to changes in, interpretations of, or enforcement
trends related to tax rules and regulations; and
- intellectual property infringement claims and challenges to the
Company’s registered trademarks and trade names.
Additionally, there may be other risks that are otherwise
described from time to time in the reports that the Company files
with the Securities and Exchange Commission. Any
forward-looking statements in this release should be considered in
light of various important factors, including the risks and
uncertainties listed above, as well as others. The Company
assumes no obligation to update, and, except as may be required by
law, does not intend to update, any forward-looking
statements. The Company does not endorse any projections
regarding future performance that may be made by third parties.
| |
| INSIGHT ENTERPRISES, INC. AND
SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (IN THOUSANDS, EXCEPT PER SHARE DATA) |
| (UNAUDITED) |
|
|
|
|
|
|
Three
Months Ended September
30, |
Nine Months
Ended September
30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Net sales |
$ |
1,342,195 |
|
$ |
1,237,668 |
|
$ |
3,985,905 |
|
$ |
3,870,095 |
|
| Costs of goods sold |
|
1,159,944 |
|
|
1,065,848 |
|
|
3,450,426 |
|
|
3,339,931 |
|
| Gross profit. |
|
182,251 |
|
|
171,820 |
|
|
535,479 |
|
|
530,164 |
|
| Operating expenses: |
|
|
|
|
| Selling and administrative
expenses |
|
148,796 |
|
|
143,134 |
|
|
437,596 |
|
|
433,373 |
|
| Severance and restructuring
expenses |
|
817 |
|
|
308 |
|
|
1,912 |
|
|
955 |
|
| Earnings from operations |
|
32,638 |
|
|
28,378 |
|
|
95,971 |
|
|
95,836 |
|
| Non-operating (income)
expense: |
|
|
|
|
| Interest income |
|
(265 |
) |
|
(229 |
) |
|
(611 |
) |
|
(811 |
) |
| Interest expense |
|
2,062 |
|
|
1,594 |
|
|
5,518 |
|
|
4,553 |
|
| Net foreign currency exchange
(gain) loss |
|
(1,561 |
) |
|
238 |
|
|
(928 |
) |
|
1,195 |
|
| Other expense, net. |
|
357 |
|
|
369 |
|
|
969 |
|
|
1,061 |
|
| Earnings before income taxes |
|
32,045 |
|
|
26,406 |
|
|
91,023 |
|
|
89,838 |
|
| Income tax expense |
|
11,220 |
|
|
9,004 |
|
|
33,748 |
|
|
33,637 |
|
| Net earnings |
$ |
20,825 |
|
$ |
17,402 |
|
$ |
57,275 |
|
$ |
56,201 |
|
| |
|
|
|
|
| |
|
|
|
|
| Net earnings per
share: |
|
|
|
|
| Basic |
$ |
0.56 |
|
$ |
0.42 |
|
$ |
1.50 |
|
$ |
1.36 |
|
| Diluted |
$ |
0.56 |
|
$ |
0.42 |
|
$ |
1.49 |
|
$ |
1.36 |
|
| |
|
|
|
|
| |
|
|
|
|
| Shares used in per share
calculations: |
|
|
|
|
| Basic |
|
37,095 |
|
|
40,972 |
|
|
38,279 |
|
|
41,185 |
|
| Diluted |
|
37,351 |
|
|
41,270 |
|
|
38,557 |
|
|
41,472 |
|
| |
| INSIGHT ENTERPRISES, INC. AND
SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (IN THOUSANDS) |
| (UNAUDITED) |
| |
|
|
| |
September
30, 2015 |
December
31, 2014 |
|
ASSETS |
|
|
| Current assets: |
|
|
| Cash and cash equivalents |
$ |
148,134 |
|
$ |
164,524 |
|
| Accounts receivable, net |
|
1,106,231 |
|
|
1,309,209 |
|
| Inventories |
|
131,459 |
|
|
122,573 |
|
| Inventories not available for
sale |
|
46,180 |
|
|
45,261 |
|
| Deferred income taxes |
|
12,134 |
|
|
13,385 |
|
| Other current assets |
|
58,359 |
|
|
62,920 |
|
| Total current assets |
|
1,502,497 |
|
|
1,717,872 |
|
| |
|
|
| Property and equipment,
net |
|
92,864 |
|
|
104,181 |
|
| Goodwill |
|
26,257 |
|
|
26,257 |
|
| Intangible assets,
net |
|
15,073 |
|
|
23,567 |
|
| Deferred income taxes |
|
57,141 |
|
|
58,620 |
|
| Other assets |
|
22,764 |
|
|
17,626 |
|
| |
$ |
1,716,596 |
|
$ |
1,948,123 |
|
|
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
| Current liabilities: |
|
|
| Accounts payable – trade |
$ |
587,130 |
|
$ |
819,916 |
|
| Accounts payable – inventory
financing facility |
|
176,489 |
|
|
122,781 |
|
| Accrued expenses and other current
liabilities |
|
122,049 |
|
|
144,561 |
|
| Current portion of long-term
debt |
|
1,534 |
|
|
766 |
|
| Deferred revenue |
|
46,555 |
|
|
50,904 |
|
| Total current liabilities |
|
933,757 |
|
|
1,138,928 |
|
| |
|
|
| Long-term debt |
|
85,057 |
|
|
62,535 |
|
| Deferred income taxes |
|
592 |
|
|
940 |
|
| Other liabilities |
|
27,906 |
|
|
24,489 |
|
| |
|
1,047,312 |
|
|
1,226,892 |
|
| Stockholders’ equity: |
|
|
| Preferred stock |
|
- |
|
|
- |
|
| Common stock |
|
371 |
|
|
401 |
|
| Additional paid-in capital |
|
314,533 |
|
|
337,167 |
|
| Retained earnings |
|
390,145 |
|
|
396,992 |
|
| Accumulated other comprehensive
loss – foreign currency translation adjustments |
|
(35,765 |
) |
|
(13,329 |
) |
| Total stockholders’ equity |
|
669,284 |
|
|
721,231 |
|
|
|
$ |
1,716,596 |
|
$ |
1,948,123 |
|
| |
|
| INSIGHT ENTERPRISES, INC. AND
SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (IN THOUSANDS) |
| (UNAUDITED) |
| |
|
|
|
Nine
Months Ended September 30, |
|
|
|
2015 |
|
|
2014 |
|
| Cash flows from operating
activities: |
|
|
| Net earnings |
$ |
57,275 |
|
$ |
56,201 |
|
| Adjustments to reconcile net
earnings to net cash provided by operating activities: |
|
|
| Depreciation and amortization |
|
28,426 |
|
|
30,648 |
|
| Non-cash real estate
impairment |
|
800 |
|
|
4,558 |
|
| Provision for losses on accounts
receivable |
|
4,139 |
|
|
3,235 |
|
| Write-downs of inventories |
|
2,834 |
|
|
2,028 |
|
| Write-off of property and
equipment |
|
72 |
|
|
531 |
|
| Non-cash stock-based
compensation |
|
6,685 |
|
|
5,861 |
|
| Excess tax benefit from employee
gains on stock-based compensation |
|
(544 |
) |
|
(438 |
) |
| Deferred income taxes |
|
2,463 |
|
|
447 |
|
| Changes in assets and
liabilities: |
|
|
| Decrease in accounts
receivable |
|
168,781 |
|
|
201,258 |
|
| Increase in inventories |
|
(13,508 |
) |
|
(34,628 |
) |
| Decrease (increase) in other
current assets |
|
2,354 |
|
|
(9,056 |
) |
| (Increase) decrease in other
assets |
|
(5,431 |
) |
|
3,203 |
|
| Decrease in accounts payable |
|
(212,289 |
) |
|
(177,627 |
) |
| (Decrease) increase in deferred
revenue |
|
(4,181 |
) |
|
8,986 |
|
| Decrease in accrued expenses and
other liabilities |
|
(13,234 |
) |
|
(47,411 |
) |
| Net cash provided by operating
activities |
|
24,642 |
|
|
47,796 |
|
| Cash flows from investing
activities: |
|
|
| Purchases of property and
equipment |
|
(10,804 |
) |
|
(7,983 |
) |
| Net cash used in investing
activities |
|
(10,804 |
) |
|
(7,983 |
) |
| Cash flows from financing
activities: |
|
|
| Borrowings on senior revolving
credit facility |
|
511,410 |
|
|
399,492 |
|
| Repayments on senior revolving
credit facility |
|
(511,410 |
) |
|
(398,992 |
) |
| Borrowings on accounts receivable
securitization financing facility |
|
1,388,100 |
|
|
708,070 |
|
| Repayments on accounts receivable
securitization financing facility |
|
(1,364,100 |
) |
|
(723,070 |
) |
| Borrowings under other financing
agreements |
|
- |
|
|
2,002 |
|
| Repayments under other financing
agreements |
|
(543 |
) |
|
- |
|
| Payments on capital lease
obligation |
|
(167 |
) |
|
(163 |
) |
| Net borrowings under inventory
financing facility |
|
53,708 |
|
|
10,408 |
|
| Payment of deferred financing
fees |
|
- |
|
|
(277 |
) |
| Excess tax benefit from employee
gains on stock-based compensation |
|
544 |
|
|
438 |
|
| Payment of payroll taxes on
stock-based compensation through shares withheld. |
|
(2,137 |
) |
|
(1,662 |
) |
| Repurchases of common stock |
|
(91,843 |
) |
|
(29,652 |
) |
| Net cash used in financing
activities |
|
(16,438 |
) |
|
(33,406 |
) |
| Foreign currency exchange
effect on cash and cash equivalent balances |
|
(13,790 |
) |
|
(6,122 |
) |
| (Decrease) increase in
cash and cash equivalents |
|
(16,390 |
) |
|
285 |
|
| Cash and cash equivalents
at beginning of period |
|
164,524 |
|
|
126,817 |
|
| Cash and cash equivalents
at end of period |
$ |
148,134 |
|
$ |
127,102 |
|
| |
|
| INSIGHT ENTERPRISES, INC. AND
SUBSIDIARIES |
|
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
|
| (IN THOUSANDS, EXCEPT PER SHARE
DATA) |
|
| (UNAUDITED) |
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
|
|
September
30, |
September
30, |
|
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
| Consolidated
Earnings from Operations: |
|
|
|
|
|
| GAAP |
$ |
32,638 |
|
$ |
28,378 |
|
$ |
95,971 |
|
$ |
95,836 |
|
|
| Non-cash
real estate impairment and accelerated depreciation |
|
800 |
|
|
- |
|
|
800 |
|
|
5,178 |
|
|
| Severance and
restructuring expenses |
|
817 |
|
|
308 |
|
|
1,912 |
|
|
955 |
|
|
| Non-GAAP |
$ |
34,255 |
|
$ |
28,686 |
|
$ |
98,683 |
|
$ |
101,969 |
|
|
|
|
|
|
|
|
|
|
Consolidated Net Earnings: |
|
|
|
|
|
| GAAP |
$ |
20,825 |
|
$ |
17,402 |
|
$ |
57,275 |
|
$ |
56,201 |
|
|
| Non-cash
real estate impairment and accelerated depreciation, net of
tax |
|
499 |
|
|
- |
|
|
499 |
|
|
3,174 |
|
|
|
Severance and restructuring expenses, net of tax |
|
559 |
|
|
195 |
|
|
1,523 |
|
|
598 |
|
|
|
Non-GAAP |
$ |
21,883 |
|
$ |
17,597 |
|
$ |
59,297 |
|
$ |
59,973 |
|
|
|
|
|
|
|
|
|
|
Consolidated Diluted EPS: |
|
|
|
|
|
| GAAP |
$ |
0.56 |
|
$ |
0.42 |
|
$ |
1.49 |
|
$ |
1.36 |
|
|
| Non-cash
real estate impairment and accelerated depreciation, net of
tax |
|
0.01 |
|
|
- |
|
|
0.01 |
|
|
0.08 |
|
|
| Severance and
restructuring expenses, net of tax |
|
0.02 |
|
|
0.01 |
|
|
0.04 |
|
|
0.01 |
|
|
|
Non-GAAP |
$ |
0.59 |
|
$ |
0.43 |
|
$ |
1.54 |
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
North America Earnings from Operations: |
|
|
|
|
|
| GAAP |
$ |
31,587 |
|
$ |
25,730 |
|
$ |
79,629 |
|
$ |
74,379 |
|
|
| Non-cash
real estate impairment and accelerated depreciation |
|
800 |
|
|
- |
|
|
800 |
|
|
5,178 |
|
|
| Severance and
restructuring expenses |
|
618 |
|
|
102 |
|
|
873 |
|
|
165 |
|
|
| Non-GAAP |
$ |
33,005 |
|
$ |
25,832 |
|
$ |
81,302 |
|
$ |
79,722 |
|
|
| |
|
|
|
|
|
| EMEA Earnings
from Operations: |
|
|
|
|
|
| GAAP |
$ |
1,029 |
|
$ |
2,002 |
|
$ |
12,304 |
|
$ |
13,799 |
|
|
| Severance and
restructuring expenses |
|
199 |
|
|
209 |
|
|
1,039 |
|
|
684 |
|
|
| Non-GAAP |
$ |
1,228 |
|
$ |
2,211 |
|
$ |
13,343 |
|
$ |
14,483 |
|
|
| |
|
|
|
|
|
| APAC Earnings
from Operations: |
|
|
|
|
|
| GAAP |
$ |
22 |
|
$ |
646 |
|
$ |
4,038 |
|
$ |
7,658 |
|
|
| Severance and
restructuring expenses |
|
- |
|
|
(3 |
) |
|
- |
|
|
106 |
|
|
| Non-GAAP |
$ |
22 |
|
$ |
643 |
|
$ |
4,038 |
|
$ |
7,764 |
|
|
| |
|
|
|
|
|
GLYNIS BRYAN
CHIEF FINANCIAL OFFICER
TEL. 480.333.3390
EMAIL glynis.bryan@insight.com
HELEN JOHNSON
SENIOR VP, FINANCE
TEL. 480.333.3234
EMAIL helen.johnson@insight.com
Insight Enterprises (NASDAQ:NSIT)
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