SANTA ANA, Calif.,
Worldwide sales of
Worldwide gross profit was
2012 first quarter net income increased to
- A net discrete tax benefit of
$28.5 million , or18 cents per diluted share, substantially all of which relates to the write-off of the historical tax basis the company has maintained in one of its Latin American subsidiary holding companies, which was realized in the quarter; - A negative impact from charges totaling
$3.1 million pretax, or1 cent per diluted share, in costs associated with the transition of the company's chief executive officer and implementation of various cost-cutting initiatives during the quarter; and - Losses of
$4.8 million pretax, or2 cents per diluted share, due to the foreign-currency translation impact on Euro-based inventory purchases in the company's pan-European entity, which designatesthe United States dollar as its functional currency. The foreign-currency related charge is a function of the timing of currency fluctuations within the quarter and should be recovered as the inventory is sold subsequent to the first quarter. This is similar to the company's experience in previous years, including the 2011 first quarter when the company incurred$4.9 million in foreign currency losses for the same reason.
2011 first quarter net income was
Further detail can be found in the financial statements and schedules attached to this news release or at www.ingrammicro.com.
Key 2012 first quarter highlights:
North America demonstrated strong leverage with operating income increasing 18 percent on a 3 percent increase in sales, driven in-part by additional benefit from favorable hard disk drive pricing, double digit sales growth in the company's specialty business portfolio and improvements in the fee-for-service logistics business. 2012 first quarter North American results also include costs of$2.5 million , or 7 basis points of North American sales, associated with the company's CEO transition.- Sales in
Latin America hit an all-time high for a first quarter and the region increased its already solid operating profitability. Asia Pacific sales hit an all-time first quarter high, led by double digit growth inChina andIndia .Australia improved gross margins and reduced its operating loss compared with the 2011 first quarter.
Europe 's year-over-year decrease in sales was tempered by relative strength inGermany and theUnited Kingdom , both of which experienced modest sales growth versus the 2011 first quarter.- Working capital days were 25, within the company's targeted range of 22 to 26 days.
"We continued the positive momentum with which we exited 2011, delivering solid first quarter results highlighted by improved profitability and strong sales in our higher margin businesses," said
Outlook
For the 2012 second quarter, sales are expected to be flat to slightly up sequentially. 2012 second quarter gross margin is expected to trend down sequentially, reflecting the removal of the residual benefit from hard disk drive pricing realized in the 2012 first quarter, as well as normal seasonal declines such as lower fee-based logistics business.
Conference Call and Webcast
Additional information about
The replay of the conference call with presentation slides will be available for one week at http://www.ingrammicro.com/ (Investor Relations section) or by calling (866) 465-0333 or (203) 369-1415 outside
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 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
About
As a vital link in the technology value chain,
© 2012
Ingram Micro Inc. | |||
Consolidated Balance Sheet | |||
(Amounts in 000s) | |||
(Unaudited) | |||
March 31, |
December 31, | ||
2012 |
2011 | ||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$991,159 |
$891,403 | |
Trade accounts receivable, net |
3,880,991 |
4,465,329 | |
Inventory |
3,180,233 |
2,942,164 | |
Other current assets |
348,293 |
319,506 | |
Total current assets |
8,400,676 |
8,618,402 | |
Property and equipment, net |
337,798 |
323,261 | |
Intangible assets, net |
71,107 |
73,330 | |
Other assets |
118,465 |
131,523 | |
Total assets |
$8,928,046 |
$9,146,516 | |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$4,625,686 |
$4,893,437 | |
Accrued expenses |
394,484 |
524,010 | |
Short-term debt and current maturities of long-term debt |
88,286 |
92,428 | |
Total current liabilities |
5,108,456 |
5,509,875 | |
Long-term debt, less current maturities |
300,000 |
300,000 | |
Other liabilities |
83,345 |
63,864 | |
Total liabilities |
5,491,801 |
5,873,739 | |
Stockholders' equity |
3,436,245 |
3,272,777 | |
Total liabilities and stockholders' equity |
$8,928,046 |
$9,146,516 | |
Ingram Micro Inc. | |||
Consolidated Statement of Income | |||
(Amounts in 000s, except per share data) | |||
(Unaudited) | |||
Thirteen Weeks Ended | |||
March 31, 2012 |
April 2, 2011 | ||
Net sales |
$8,635,381 |
$8,723,712 | |
Cost of sales |
8,167,824 |
8,269,640 | |
Gross profit |
467,557 |
454,072 | |
Operating expenses: |
|||
Selling, general and administrative |
362,949 |
354,287 | |
Reorganization costs (credits) |
557 |
(269) | |
363,506 |
(a) |
354,018 | |
Income from operations |
104,051 |
100,054 | |
Interest and other: |
|||
Interest income |
(3,766) |
(1,373) | |
Interest expense |
11,729 |
13,195 | |
Net foreign currency exchange loss |
5,566 |
3,009 | |
Other |
1,932 |
3,818 | |
15,461 |
18,649 | ||
Income before income taxes |
88,590 |
81,405 | |
Provision for (benefit from) income taxes |
(1,383) |
(b) |
25,095 |
Net income |
$89,973 |
$56,310 | |
Diluted earnings per share |
$0.58 |
$0.34 | |
Diluted weighted average |
|||
shares outstanding |
154,584 |
164,444 | |
(a) The thirteen weeks ended March 31, 2012 included net reorganization costs of $557 (0.01% of consolidated net sales) comprised of $301 in Asia-Pacific (0.02% of Asia-Pacific net sales), $224 in Latin America (0.05% of Latin America net sales), and $32 in North America, primarily for employee termination for workforce reductions. Also included in SG&A expenses and recorded as part of the North America results was $2,500 (0.03% of consolidated net sales and 0.07% of North America net sales) of costs associated with the transition of our chief executive officer. These charges aggregate to approximately $0.01 per diluted share. | |||
| |||
(b) The benefit from income taxes in the thirteen weeks ended March 31, 2012 included net discrete benefits of approximately $28,500, or $0.18 per diluted share, primarily related to the write-off of the historical tax basis of the investment we have maintained in one of our Latin American subsidiary holding companies, realized in the current period. | |||
| |||
| |||
Ingram Micro Inc. | ||||||
Supplementary Information | ||||||
Income from Operations | ||||||
(Amounts in 000s) | ||||||
(Unaudited) | ||||||
Thirteen Weeks Ended March 31, 2012 | ||||||
Operating |
Operating | |||||
Net Sales |
Income (a) |
Margin | ||||
North America |
$3,606,947 |
$69,649 |
1.93% | |||
Europe |
2,647,056 |
22,000 |
0.83% | |||
Asia-Pacific |
1,949,752 |
14,420 |
0.74% | |||
Latin America |
431,626 |
7,428 |
1.72% | |||
Stock-based compensation expense |
- |
(9,446) |
- | |||
Consolidated Total |
$8,635,381 |
$104,051 |
1.20% | |||
Thirteen Weeks Ended April 2, 2011 | ||||||
Operating |
Operating | |||||
Net Sales |
Income |
Margin | ||||
North America |
$3,506,433 |
$59,148 |
1.69% | |||
Europe |
2,876,233 |
32,082 |
1.12% | |||
Asia-Pacific |
1,933,996 |
8,214 |
0.42% | |||
Latin America |
407,050 |
6,267 |
1.54% | |||
Stock-based compensation expense |
- |
(5,657) |
- | |||
Consolidated Total |
$8,723,712 |
$100,054 |
1.15% | |||
(a) See note (a) on the consolidated statement of income. |
||||||
SOURCE
Investors, Damon Wright, +1-714-382-5013, damon.wright@ingrammicro.com, or Media, Lisa Zwick, +1-949-230-8794, lisa.zwick@ingrammicro.com