IRVINE, Calif., Oct. 29, 2015 /PRNewswire/ -- Ingram Micro
Inc. (NYSE: IM) today announced financial results for the third
quarter ended Oct. 3, 2015.
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(US$ in millions,
except per share data)
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Third Quarter
Ended
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Oct.
3,
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Sept.
27,
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USD
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FX
Neutral
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2015
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2014
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Change
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Change
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Net
sales
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$10,516
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$11,238
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-6%
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2%
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Non-GAAP operating
income
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$169
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$161
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5%
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15%
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Non-GAAP operating
margin
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1.60%
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1.43%
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17 bps
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NA
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Operating
income
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$119
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$120
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0%
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NA
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Operating
margin
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1.14%
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1.07%
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7 bps
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NA
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Non-GAAP net
income
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$103
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$98
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5%
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17%
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Net
income
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$65
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$72
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-10%
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NA
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Non-GAAP earnings per
diluted share
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$0.67
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$0.62
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8%
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21%
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Earnings per diluted
share
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$0.42
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$0.45
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-7%
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NA
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A reconciliation
of GAAP financial measures to non-GAAP financial
measures is presented
in the Supplementary Information section in this press
release.
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"We had a great quarter, reflecting continued execution on our
strategy," said Alain Monie, Ingram
Micro CEO. "We drove strong operating leverage while continuing to
build our capabilities in key strategic areas such as advanced
solutions, lifecycle services, commerce and fulfillment solutions
and cloud. Our teams remained focused on generating strong returns
on capital, which resulted in expanded margins, with non-GAAP
operating margin reaching the highest level for a third quarter in
more than a decade, a 21% increase in non-GAAP earnings per share
on a currency neutral basis versus last year and $340 million in operating cash flow for the
quarter. Our focus on structurally improving our cash conversion
cycle is yielding results and we now expect to generate more than
$1 billion in operating cash flow for
the full year, even as we deploy capital to support revenue growth
in our seasonally strongest fourth quarter.
"Consistent with our strategy to expand in higher value and
services areas," Monie said, "we recently announced our intent to
acquire the commerce solutions business of DOCDATA N.V. and
value-add IT solutions provider Grupo ACAO. We expect to leverage
our global infrastructure and world-class partnerships to
accelerate growth and profitability in these businesses and, upon
close, each is expected to immediately contribute to further margin
expansion and non-GAAP earnings.
"In addition to strong execution across the business," Monie
continued, "this quarter we continued to deliver on our commitment
to return capital to shareholders, paying our first ever quarterly
dividend and repurchasing more than $160
million in stock during the third quarter, bringing total
repurchases to $206 million since we
resumed our program this May."
Third Quarter Results of Operations
Worldwide third quarter sales were $10.5
billion, down 6 percent in U.S. dollars and up 2 percent on
a currency neutral basis. Excluding the negative impact related to
the company exiting portions of its North American mobility
distribution business, as previously disclosed, worldwide third
quarter sales were up approximately 5 percent on a currency neutral
basis.
Non-GAAP operating income of $169
million was up 5 percent in U.S. dollars, or up 15 percent
on a currency neutral basis, over last year. Non-GAAP operating
margin of 1.60 percent grew 17 basis points over last year, the
highest level for a third quarter in more than a decade.
North America delivered strong
profitability with a 42 basis point increase in non-GAAP operating
margin, as the region benefited from robust sales of advanced and
specialty solutions and higher volumes in mobility lifecycle
services. North America revenue
was down 13 percent, or down 11 percent on a currency neutral
basis, primarily due to exiting portions of the region's mobility
distribution business that did not meet the company's profitability
requirements, as well as lower sales of PCs and tablets, especially
when compared to robust PC growth last year.
Asia Pacific delivered strong
operating leverage, as non-GAAP operating income growth of 23
percent was more than triple the region's 6 percent revenue growth
rate. On a currency neutral basis, the region's revenue grew 16
percent, largely due to continued solid growth in India, Australia and China, as well as contribution from recent
value-focused acquisitions in Turkey and Saudi
Arabia.
Europe revenue declined 8
percent in U.S. dollars, but was up 8 percent on a currency neutral
basis, in part due to the recent acquisition of Anovo and strong
smart phone sales, as well as modest growth in technology
solutions. Non-GAAP operating margin declined 2 basis points, as
strong year-over-year improvement with expanding gross and
operating margins in the company's European technology solutions
business was more than offset by efforts to build out higher margin
strategic businesses, including in mobility and to expand the
company's cloud marketplace throughout the region.
Latin America had robust
revenue growth in excess of 30 percent on a currency neutral basis
(11 percent in U.S. dollars), resulting from strong growth in
Mexico and Brazil, as well as the contribution from
recent acquisitions. Profitability in the region remains solid.
2015 third quarter non-GAAP net income was $103 million, with non-GAAP earnings of
67 cents per diluted share, up 8
percent when compared to the 2014 third quarter, and up 21 percent
on a currency neutral basis. Compared to the same period in 2014,
the translation of foreign currencies negatively impacted 2015
third quarter non-GAAP earnings by 8
cents per diluted share. This amount was 2 cents greater than the foreign exchange impact
the company anticipated when it provided its earnings outlook for
the 2015 third quarter.
Key 2015 third quarter business highlights:
- Ingram Micro's commerce and fulfillment sales grew by double
digits in the 2015 third quarter on a currency neutral basis.
Following the close of the 2015 third quarter, the company
announced its intention to significantly broaden its commerce and
fulfillment solutions footprint in Europe with the acquisition of Docdata, one of
the leading European providers of order fulfillment, returns
logistics and online payment services. Docdata provides critical
commerce solutions to major retailers, brands and promising
start-ups and currently handles between 125,000 and 250,000 orders
on a daily basis, with major operations in Germany, Netherlands and the United Kingdom. Docdata is expected to
contribute in excess of $150 million in annual services
revenue to Ingram Micro and to contribute 5
to 7 cents to 2016 non-GAAP earnings per share. Closing is
expected toward the end of 2015 and is subject to customary closing
conditions including regulatory approval and DOCDATA N.V.
shareholder approval.
- Last week, the company announced its intention to acquire
Sao Paulo, Brazil-based Grupo ACAO
(ACAO), one of Latin America's
leading providers of critical value-add IT solutions. In addition
to a portfolio of higher value products, including those from
strategic vendors such as IBM, Oracle, Red Hat, EMC and VMware,
ACAO also provides integration services, sales support and
financial services, with major operations in Brazil, Colombia and Argentina. ACAO is expected to contribute in
excess of $300 million in annual
value-add solutions revenue to Ingram Micro and contribute
approximately 4 cents to 2016 full
year non-GAAP earnings per share. The transaction, which is subject
to customary regulatory and other closing conditions, is expected
to close late in the 2015 fourth quarter.
- Ingram Micro grew its Cloud business by more than 100 percent
year-over-year on a constant currency basis in the 2015 third
quarter, benefiting from the continued global expansion of its
cloud marketplace. The company has recently expanded into
India, Singapore and Malaysia and Ingram Micro's automated Cloud
Marketplace is now available for vendor partners and customers in
16 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 in one single integrated place. 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.
- Working capital days at the end of the quarter were 25 days, a
2 day improvement both from the 2015 second quarter and last year's
third quarter, resulting from the company's global working capital
improvement program.
- Ingram Micro repurchased 6.4 million shares during the 2015
third quarter for a total cost of $161
million. Since May 2015, when
the company resumed its repurchase program, it has repurchased more
than 8 million shares for a total cost of $206 million.
- The company realized approximately $5
million in cost savings during the 2015 third quarter
related to its previously announced cost savings program, which has
included implementing lean corporate initiatives. The company
continues to expect to realize $10
million ($40 million annual
run rate) of total cost savings in the 2015 fourth quarter and is
on-track to deliver annual global cost savings of $100 million in 2016.
- Ingram Micro expanded its strategic relationship with Dell, as
it was named an authorized Dell Federal distribution partner.
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 will be paid on
November 24, 2015 to stockholders of
record at the close of market on November
10, 2015.
Outlook
The following statements are based on the company's current
expectations for the 2015 fourth 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 fourth quarter, foreign exchange headwinds are
expected to negatively impact worldwide revenue by approximately 6
percent, or by more than $800
million, and to negatively impact non-GAAP earnings per
diluted share by 10 cents when
compared to the 2014 fourth quarter. Ingram Micro currently expects
2015 fourth quarter revenue to reflect a historic seasonal
sequential increase in the mid- to high teens over the 2015 third
quarter and to be between $12.0 billion and
$12.6 billion. Non-GAAP earnings per diluted share for the
2015 fourth quarter are expected to be in the range of $1.00 to $1.07, which includes the negative
impact of 10 cents related to currency movement when compared
with the fourth quarter last year, and reflects an increase of 12
percent to 19 percent over the 2014 fourth quarter on a currency
neutral basis. The company also now expects to generate more than
$1 billion in cash flow from
operations for the 2015 full year, up from earlier expectations of
$700 million in cash flow from
operations for the 2015 full year, even as the company deploys
capital to support revenue growth in its seasonally strongest
fourth quarter.
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, a charge in the third quarter of 2015 for an estimated
settlement of employee related taxes assessed in Europe, and a benefit related to the receipt
of an LCD flat panel class action settlement in 2014. 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
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 "13619338."
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 and geopolitical conditions can affect our business
and results of operations; (2) our acquisition and investment
strategies may not produce the expected benefits, which may
adversely affect results of operations; (3) 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; (4) the validity, subsistence and enforceability of the
patent portfolio that we currently hold or acquire may be
challenged, and we have a risk of being 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; (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 and identifiable intangible 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) future cash dividends
and share repurchases, or whether such dividends or repurchases
will be made, may be affected by, among other factors: our views on
potential future capital requirements for investments in
acquisitions or other business needs, legal risks, changes in tax
or corporate laws, contractual restrictions, or board
determination; (15) we cannot predict the outcome of litigation
matters and other contingencies that we may be involved with from
time to time; (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, the Docdata and ACAO
transactions may not be consummated for several reasons, including
failure to receive approval by competent Competition
authorities. Additionally, we risk failing to realize the
anticipated benefits of an acquisition due to, among other things,
the unsuccessful integration of the acquired business.
Further, 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 10-K.
© 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
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(Amounts in
000s)
|
(Unaudited)
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October
3,
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January
3,
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2015
|
|
2015
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ASSETS
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Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 945,317
|
|
$ 692,777
|
Trade accounts
receivable, net
|
4,938,021
|
|
6,115,328
|
Inventory
|
3,668,590
|
|
4,145,012
|
Other current
assets
|
627,286
|
|
532,406
|
|
|
|
|
Total current
assets
|
10,179,214
|
|
11,485,523
|
|
|
|
|
Property and
equipment, net
|
356,665
|
|
432,430
|
Goodwill
|
543,366
|
|
532,483
|
Intangible assets,
net
|
326,734
|
|
318,689
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Other
assets
|
55,770
|
|
62,318
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|
|
|
|
Total
assets
|
$11,461,749
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|
$12,831,443
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
|
$ 5,622,480
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|
$ 6,522,369
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Accrued
expenses
|
585,950
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|
542,038
|
Short-term debt and
current maturities of long-term debt
|
127,245
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|
372,026
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|
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|
Total current
liabilities
|
6,335,675
|
|
7,436,433
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|
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|
Long-term debt, less
current maturities
|
1,097,189
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|
1,096,889
|
Other
liabilities
|
113,219
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|
132,295
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|
|
|
|
Total
liabilities
|
7,546,083
|
|
8,665,617
|
|
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|
Stockholders'
equity
|
3,915,666
|
|
4,165,826
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$11,461,749
|
|
$12,831,443
|
Ingram Micro
Inc.
|
Consolidated
Statement of Income
|
(Amounts in 000s,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
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|
|
Thirteen
Weeks Ended
|
|
October 3,
2015
|
|
September 27,
2014
|
|
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|
Net sales
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$ 10,515,880
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$
11,237,840
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Cost of
sales
|
9,852,297
|
|
10,591,751
|
Gross
profit
|
663,583
|
|
646,089
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling, general and
administrative
|
510,990
|
|
494,507
|
Amortization of
intangible assets
|
14,206
|
|
14,567
|
Reorganization
costs
|
18,958
|
|
17,300
|
|
544,154
|
|
526,374
|
|
|
|
|
Income from
operations
|
119,429
|
|
119,715
|
|
|
|
|
Other expense
(income):
|
|
|
|
Interest
income
|
(991)
|
|
(1,045)
|
Interest
expense
|
18,429
|
|
16,659
|
Net foreign exchange
loss (gain)
|
12,264
|
|
(3,323)
|
Other
|
313
|
|
4,467
|
|
30,015
|
|
16,758
|
|
|
|
|
Income before income
taxes
|
89,414
|
|
102,957
|
|
|
|
|
Provision for income
taxes
|
24,492
|
|
30,723
|
|
|
|
|
Net income
|
$
64,922
|
|
$
72,234
|
|
|
|
|
Diluted earnings per
share
|
$
0.42
|
|
$
0.45
|
|
|
|
|
Diluted weighted
average shares
outstanding
|
154,742
|
|
159,543
|
Ingram Micro
Inc.
|
Consolidated
Statement of Income
|
(Amounts in 000s,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Thirty-nine
Weeks Ended
|
|
October 3,
2015
|
|
September 27,
2014
|
|
|
|
|
Net sales
|
$ 31,713,584
|
|
$
32,531,208
|
Cost of
sales
|
29,775,715
|
|
30,640,794
|
Gross
profit
|
1,937,869
|
|
1,890,414
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling, general and
administrative
|
1,526,340
|
|
1,481,743
|
Amortization of
intangible assets
|
47,226
|
|
43,140
|
Reorganization
costs
|
29,234
|
|
79,237
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Impairment of
internally developed software
|
115,856
|
|
-
|
|
1,718,656
|
|
1,604,120
|
|
|
|
|
Income from
operations
|
219,213
|
|
286,294
|
|
|
|
|
Other expense
(income):
|
|
|
|
Interest
income
|
(2,650)
|
|
(3,782)
|
Interest
expense
|
61,799
|
|
54,406
|
Net foreign exchange
loss (gain)
|
26,540
|
|
(1,153)
|
Other
|
7,256
|
|
13,011
|
|
92,945
|
|
62,482
|
|
|
|
|
Income before income
taxes
|
126,268
|
|
223,812
|
|
|
|
|
Provision for income
taxes
|
52,364
|
|
76,132
|
|
|
|
|
Net income
|
$
73,904
|
|
$
147,680
|
|
|
|
|
Diluted earnings per
share
|
$
0.47
|
|
$
0.93
|
|
|
|
|
Diluted weighted
average shares
outstanding
|
158,016
|
|
159,181
|
Ingram Micro
Inc.
|
Consolidated
Statement of Cash Flows
|
(Amounts in
000s)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks
Ended
|
|
|
|
|
|
October 3,
2015
|
|
September 27,
2014
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
73,904
|
|
$
147,680
|
|
Adjustments to
reconcile net income to cash
|
|
|
|
|
provided (used)
by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
113,435
|
|
108,202
|
|
|
Stock-based
compensation
|
28,291
|
|
24,761
|
|
|
Excess tax benefit
from stock-based compensation
|
(4,334)
|
|
(4,338)
|
|
|
Loss on write-off of
assets
|
-
|
|
8,302
|
|
|
Gain on sale of
property and equipment
|
(272)
|
|
-
|
|
|
Impairment of
internally developed software
|
115,856
|
|
-
|
|
|
Noncash charges for
interest and bond discount amortization
|
2,212
|
|
1,769
|
|
|
Deferred income
taxes
|
1,553
|
|
(30,973)
|
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
Trade accounts
receivable
|
1,078,501
|
|
566,097
|
|
|
Inventory
|
400,880
|
|
(551,609)
|
|
|
Other current
assets
|
(107,241)
|
|
(30,350)
|
|
|
Accounts
payable
|
(663,616)
|
|
(603,481)
|
|
|
Change in book
overdrafts
|
(70,825)
|
|
166,361
|
|
|
Accrued
expenses
|
(2,463)
|
|
(196,364)
|
|
|
|
|
Cash provided (used)
by operating activities
|
965,881
|
|
(393,943)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(99,022)
|
|
(52,369)
|
|
Sale of marketable
securities, net
|
5,000
|
|
1,100
|
|
Proceeds from sale of
property and equipment
|
1,145
|
|
-
|
|
Cost-based
investment
|
-
|
|
(10,000)
|
|
Acquisitions, net of
cash acquired
|
(100,855)
|
|
(18,880)
|
|
|
|
|
Cash used by
investing activities
|
(193,732)
|
|
(80,149)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
exercise of stock options
|
10,279
|
|
16,943
|
|
Repurchase of Class A
Common Stock
|
(205,608)
|
|
-
|
|
Excess tax benefit
from stock-based compensation
|
4,334
|
|
4,338
|
|
Other consideration
for acquisitions
|
(2,358)
|
|
-
|
|
Dividends paid to
shareholders
|
(15,196)
|
|
-
|
|
Net proceeds from
(repayments of) revolving credit facilities
|
(301,156)
|
|
283,133
|
|
|
|
|
Cash provided (used)
by financing activities
|
(509,705)
|
|
304,414
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(9,904)
|
|
(6,892)
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
252,540
|
|
(176,570)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
692,777
|
|
674,390
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
945,317
|
|
$
497,820
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Income from
Operations - Reconciliation of GAAP to Non-GAAP
Information
|
(Amounts in
Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended October 3, 2015
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based
Compensation
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
4,477.1
|
|
$2,928.5
|
|
$ 2,528.1
|
|
$
582.2
|
|
$
-
|
|
$ 10,515.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
|
$
88.7
|
|
$ 2.6
|
|
$ 31.8
|
|
$
7.1
|
|
$
(10.8)
|
|
$
119.4
|
Reorganization,
integration and transition costs
|
|
14.3
|
|
7.7
|
|
7.0
|
|
1.3
|
|
-
|
|
30.3
|
Amortization of
intangible assets
|
|
8.1
|
|
3.2
|
|
2.0
|
|
0.9
|
|
-
|
|
14.2
|
Estimated settlement
of employee related taxes
|
|
-
|
|
4.7
|
|
-
|
|
-
|
|
-
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
|
$
111.1
|
|
$ 18.2
|
|
$ 40.8
|
|
$
9.3
|
|
$
(10.8)
|
|
$ 168.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
1.98%
|
|
0.09%
|
|
1.26%
|
|
1.21%
|
|
|
|
1.14%
|
Non-GAAP Operating
Margin
|
|
2.48%
|
|
0.62%
|
|
1.61%
|
|
1.59%
|
|
|
|
1.60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended September 27, 2014
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based Compensation
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
5,134.3
|
|
$3,200.4
|
|
$ 2,378.2
|
|
$
524.9
|
|
$
-
|
|
$ 11,237.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
|
$
85.7
|
|
$ 2.1
|
|
$ 31.0
|
|
$
9.2
|
|
$
(8.3)
|
|
$
119.7
|
Reorganization,
integration and transition costs
|
|
9.9
|
|
15.4
|
|
0.7
|
|
0.5
|
|
-
|
|
26.5
|
Amortization of
intangible assets
|
|
10.0
|
|
3.0
|
|
1.4
|
|
0.2
|
|
-
|
|
14.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
|
$
105.6
|
|
$ 20.5
|
|
$ 33.1
|
|
$
9.9
|
|
$
(8.3)
|
|
$ 160.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
1.67%
|
|
0.07%
|
|
1.30%
|
|
1.75%
|
|
|
|
1.07%
|
Non-GAAP Operating
Margin
|
|
2.06%
|
|
0.64%
|
|
1.39%
|
|
1.89%
|
|
|
|
1.43%
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Income from
Operations - Reconciliation of GAAP to Non-GAAP
Information
|
(Amounts in
Millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks
Ended October 3, 2015
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based Compensation
|
|
Impairment of
Internally
Developed Software
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 13,537.2
|
|
$ 8,857.8
|
|
$ 7,553.9
|
|
$
1,764.7
|
|
$
-
|
|
$
-
|
|
$ 31,713.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income
|
|
$
223.6
|
|
$ 20.9
|
|
$ 94.4
|
|
$
24.5
|
|
$
(28.3)
|
|
$
(115.9)
|
|
$ 219.2
|
Reorganization,
integration and transition costs
|
|
28.6
|
|
15.9
|
|
9.3
|
|
3.5
|
|
-
|
|
-
|
|
57.3
|
Amortization of
intangible assets
|
|
28.9
|
|
11.3
|
|
5.7
|
|
1.3
|
|
-
|
|
-
|
|
47.2
|
Estimated settlement
of employee related taxes
|
|
-
|
|
4.7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4.7
|
Impairment of
internally developed software
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
115.9
|
|
115.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
|
$
281.1
|
|
$ 52.8
|
|
$ 109.4
|
|
$
29.3
|
|
$
(28.3)
|
|
$
-
|
|
$ 444.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
1.65%
|
|
0.24%
|
|
1.25%
|
|
1.39%
|
|
|
|
|
|
0.69%
|
Non-GAAP Operating
Margin
|
|
2.08%
|
|
0.60%
|
|
1.45%
|
|
1.66%
|
|
|
|
|
|
1.40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks
Ended September 27, 2014
|
|
|
North
America
|
|
Europe
|
|
Asia-Pacific
|
|
Latin
America
|
|
Stock-based Compensation
|
|
|
|
Consolidated Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$ 13,887.4
|
|
$10,077.4
|
|
$ 7,026.5
|
|
$
1,539.9
|
|
$
-
|
|
|
|
$ 32,531.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss)
|
|
$
219.5
|
|
$ (6.0)
|
|
$ 71.4
|
|
$
26.2
|
|
$
(24.8)
|
|
|
|
$ 286.3
|
Reorganization,
integration and transition costs
|
|
39.7
|
|
61.6
|
|
4.5
|
|
1.1
|
|
-
|
|
|
|
106.9
|
Amortization of
intangible assets
|
|
29.6
|
|
8.7
|
|
4.3
|
|
0.6
|
|
-
|
|
|
|
43.2
|
LCD class action
settlement
|
|
(6.6)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
(6.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income
|
|
$
282.2
|
|
$ 64.3
|
|
$ 80.2
|
|
$
27.9
|
|
$
(24.8)
|
|
|
|
$ 429.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Margin
|
|
1.58%
|
|
(0.06%)
|
|
1.02%
|
|
1.70%
|
|
|
|
|
|
0.88%
|
Non-GAAP Operating
Margin
|
|
2.03%
|
|
0.64%
|
|
1.14%
|
|
1.81%
|
|
|
|
|
|
1.32%
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Amounts in
Millions, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended October 3, 2015
|
|
|
|
|
|
Diluted
|
|
|
|
Net
Income
|
|
Earnings per Share
(a)
|
|
|
|
|
|
|
|
As Reported Under
GAAP
|
|
$ 64.9
|
|
$
0.42
|
|
Reorganization,
integration and transition costs
|
|
22.4
|
|
0.15
|
|
Amortization of
intangible assets
|
|
10.5
|
|
0.07
|
|
Estimated settlement
of employee related taxes
|
|
3.5
|
|
0.02
|
|
Pan-Europe foreign
exchange loss
|
|
1.7
|
|
0.01
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measure
|
|
$ 103.0
|
|
$
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended September 27, 2014
|
|
|
|
|
|
Diluted
|
|
|
|
Net
Income
|
|
Earnings per Share
(a)
|
|
|
|
|
|
|
|
As Reported Under
GAAP
|
|
$ 72.2
|
|
$
0.45
|
|
Reorganization,
integration and transition costs
|
|
20.3
|
|
0.13
|
|
Amortization of
intangible assets
|
|
10.2
|
|
0.06
|
|
Pan-Europe foreign
exchange gain
|
|
(4.4)
|
|
(0.02)
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measure
|
|
$ 98.3
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Per share impact is
calculated by dividing net income amount by the diluted weighted
average shares outstanding of
154.7 and 159.5 for the thirteen weeks ended October 3, 2015 and
September 27, 2014, respectively.
|
Ingram Micro
Inc.
|
Supplementary
Information
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Amounts in
Millions, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks
Ended October 3, 2015
|
|
|
|
|
|
Diluted
|
|
|
|
Net
Income
|
|
Earnings per Share
(a)
|
|
|
|
|
|
|
|
As Reported Under
GAAP
|
|
$ 73.9
|
|
$
0.47
|
|
Reorganization,
integration and transition costs
|
|
42.1
|
|
0.27
|
|
Amortization of
intangible assets
|
|
34.4
|
|
0.22
|
|
Estimated settlement
of employee related taxes
|
|
3.5
|
|
0.02
|
|
Impairment of
internally developed software
|
|
99.7
|
|
0.63
|
|
Pan-Europe foreign
exchange loss
|
|
5.2
|
|
0.03
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measure
|
|
$ 258.8
|
|
$
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine Weeks
Ended September 27, 2014
|
|
|
|
|
|
Diluted
|
|
|
|
Net
Income
|
|
Earnings per Share
(a)
|
|
|
|
|
|
|
|
As Reported Under
GAAP
|
|
$ 147.7
|
|
$
0.93
|
|
Reorganization,
integration and transition costs
|
|
85.1
|
|
0.54
|
|
Amortization of
intangible assets
|
|
30.6
|
|
0.19
|
|
LCD class action
settlement
|
|
(4.7)
|
|
(0.03)
|
|
Pan-Europe foreign
exchange gain
|
|
(6.1)
|
|
(0.04)
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measure
|
|
$ 252.6
|
|
$
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Per share impact is
calculated by dividing net income amount by the diluted weighted
average shares outstanding of
158.0 and 159.2 for the thirty-nine weeks ended October 3, 2015 and
September 27, 2014, respectively.
|
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SOURCE Ingram Micro Inc.