Worldwide sales, which were essentially flat in U.S. dollars at
Worldwide gross profit was
2012 second quarter net income was
- A negative impact from acquisition-related costs totaling approximately
$4.0 million pretax, or2 cents per diluted share; - A negative impact from charges totaling
$2.1 million pretax, or1 cent per diluted share, primarily related to asset impairments associated with the closure of our operations inArgentina ; - A positive impact from a net gain of
$1.6 million pretax, or1 cent per diluted share, due to the foreign-currency translation impact on Euro-based inventory purchases in the company's pan-European purchasing entity, which designatesthe United States dollar as its functional currency; and - A positive impact from a net discrete tax benefit totaling approximately
$4.4 million , or3 cents per diluted share, recognized in the quarter as a result of the lapse of the statute of limitations and its impact on a tax-related reserve inAustralia , and positive adjustments resulting from the resolution of portions of anInternal Revenue Service audit in the U.S.
2011 second 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 second quarter highlights:
North America 's sales grew year-over-year for the 10th consecutive quarter, up 2 percent versus the year earlier period, driven in part by double-digit growth in the region's specialty businesses of DBL accessories, data capture/point of sale and physical security, as well as solid sales increases in the company's higher value enterprise technology offerings.- Sales in
Latin America hit an all-time high for a second quarter growing 14 percent, despite a 13 percentage point negative impact to sales growth from the translation impact of weaker local currencies. Asia Pacific sales were up 4 percent in U.S. dollars, but were much stronger in local currencies, considering the negative 5 percent impact to sales growth from the translation of weaker local currencies. Sales for the region reached an all-time second quarter high, driven by strong double-digit growth inChina andIndia .- In
Europe , while sales were down in U.S. dollars by 7 percent, demand was solid in local currencies led by double-digit growth inGermany and theUnited Kingdom . The translation impact of weaker local currencies negatively affected growth by 10 percentage points. - During the second quarter, the company purchased 2.7 million shares of
Ingram Micro stock for an aggregate of$50 million . Since the 3-year,$400 million repurchase program was announced onOct. 28, 2010 , 15.2 million shares have been purchased for an aggregate of$275.9 million . - Working capital days were 25, within the company's targeted range of 22 to 26 days.
"We had another solid quarter, with strong sales in many countries, particularly relative to overall IT spending," said
Six-Month Period
For the six months ended
Outlook
Given the current macroeconomic environment, the company expects sales for the 2012 third quarter to be flat sequentially with the 2012 second quarter and expects gross margins to remain under pressure. The company will also incur incremental interest costs of approximately
Conference Call and Webcast
Additional information about
The replay of the conference call with presentation slides will be available for one week at www.ingrammicro.com (Investor Relations section) or by calling (888) 562-2781 or (402) 998-1437 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) |
|||
June 30, |
December 31, |
||
2012 |
2011 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 981,244 |
$ 891,403 |
|
Trade accounts receivable, net |
3,689,677 |
4,465,329 |
|
Inventory |
3,194,271 |
2,942,164 |
|
Other current assets |
336,398 |
319,506 |
|
Total current assets |
8,201,590 |
8,618,402 |
|
Property and equipment, net |
344,287 |
323,261 |
|
Intangible assets, net |
67,521 |
73,330 |
|
Other assets |
139,443 |
131,523 |
|
Total assets |
$ 8,752,841 |
$ 9,146,516 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 4,408,717 |
$ 4,893,437 |
|
Accrued expenses |
422,176 |
524,010 |
|
Short-term debt and current maturities of long-term debt |
143,437 |
92,428 |
|
Total current liabilities |
4,974,330 |
5,509,875 |
|
Long-term debt, less current maturities |
320,470 |
300,000 |
|
Other liabilities |
79,583 |
63,864 |
|
Total liabilities |
5,374,383 |
5,873,739 |
|
Stockholders' equity |
3,378,458 |
3,272,777 |
|
Total liabilities and stockholders' equity |
$ 8,752,841 |
$ 9,146,516 |
Ingram Micro Inc. |
|||
Consolidated Statement of Income |
|||
(Amounts in 000s, except per share data) |
|||
(Unaudited) |
|||
Thirteen Weeks Ended |
|||
June 30, 2012 |
July 2, 2011 |
||
Net sales |
$ 8,777,895 |
$ 8,749,025 |
|
Cost of sales |
8,325,165 |
8,289,793 |
|
Gross profit |
452,730 |
459,232 |
|
Operating expenses: |
|||
Selling, general and administrative |
354,106 |
362,084 |
|
Reorganization costs |
839 |
- |
|
354,945 |
362,084 |
||
Income from operations |
97,785 |
97,148 |
|
Interest and other: |
|||
Interest income |
(2,200) |
(1,251) |
|
Interest expense |
11,577 |
14,318 |
|
Net foreign currency exchange loss (gain) |
1,794 |
(2,974) |
|
Other |
3,156 |
3,233 |
|
14,327 |
13,326 |
||
Income before income taxes |
83,458 |
83,822 |
|
Provision for income taxes |
22,184 |
24,091 |
|
Net income |
$ 61,274 |
$ 59,731 |
|
Diluted earnings per share |
$ 0.40 |
$ 0.37 |
|
Diluted weighted average |
|||
shares outstanding |
154,020 |
162,673 |
Ingram Micro Inc. |
|||
Consolidated Statement of Income |
|||
(Amounts in 000s, except per share data) |
|||
(Unaudited) |
|||
Twenty-six Weeks Ended |
|||
June 30, 2012 |
July 2, 2011 |
||
Net sales |
$ 17,413,276 |
$ 17,472,737 |
|
Cost of sales |
16,492,989 |
16,559,433 |
|
Gross profit |
920,287 |
913,304 |
|
Operating expenses: |
|||
Selling, general and administrative |
717,055 |
716,371 |
|
Reorganization costs (credits) |
1,396 |
(269) |
|
718,451 |
716,102 |
||
Income from operations |
201,836 |
197,202 |
|
Interest and other: |
|||
Interest income |
(5,966) |
(2,624) |
|
Interest expense |
23,306 |
27,513 |
|
Net foreign currency exchange loss |
7,360 |
35 |
|
Other |
5,088 |
7,051 |
|
29,788 |
31,975 |
||
Income before income taxes |
172,048 |
165,227 |
|
Provision for income taxes |
20,801 |
49,186 |
|
Net income |
$ 151,247 |
$ 116,041 |
|
Diluted earnings per share |
$ 0.98 |
$ 0.71 |
|
Diluted weighted average |
|||
shares outstanding |
154,435 |
163,828 |
Ingram Micro Inc. |
||||||
Supplementary Information |
||||||
Income from Operations |
||||||
(Amounts in 000s) |
||||||
(Unaudited) |
||||||
Thirteen Weeks Ended June 30, 2012 |
||||||
Operating |
Operating |
|||||
Net Sales |
Income |
Margin |
||||
North America |
$ 3,837,244 |
$ 68,729 |
1.79% |
|||
Europe |
2,460,141 |
14,913 |
0.61% |
|||
Asia-Pacific |
2,038,112 |
14,835 |
0.73% |
|||
Latin America |
442,398 |
4,437 |
1.00% |
|||
Stock-based compensation expense |
- |
(5,129) |
- |
|||
Consolidated Total |
$ 8,777,895 |
$ 97,785 |
1.11% |
|||
Thirteen Weeks Ended July 2, 2011 |
||||||
Operating |
Operating |
|||||
Net Sales |
Income |
Margin |
||||
North America |
$ 3,760,429 |
$ 67,589 |
1.80% |
|||
Europe |
2,640,120 |
16,914 |
0.64% |
|||
Asia-Pacific |
1,961,844 |
16,496 |
0.84% |
|||
Latin America |
386,632 |
6,480 |
1.68% |
|||
Stock-based compensation expense |
- |
(10,331) |
- |
|||
Consolidated Total |
$ 8,749,025 |
$ 97,148 |
1.11% |
Ingram Micro Inc. |
||||||
Supplementary Information |
||||||
Income from Operations |
||||||
(Amounts in 000s) |
||||||
(Unaudited) |
||||||
Twenty-six Weeks Ended June 30, 2012 |
||||||
Operating |
Operating |
|||||
Net Sales |
Income |
Margin |
||||
North America |
$ 7,444,191 |
$ 138,377 |
1.86% |
|||
Europe |
5,107,197 |
36,914 |
0.72% |
|||
Asia-Pacific |
3,987,864 |
29,255 |
0.73% |
|||
Latin America |
874,024 |
11,865 |
1.36% |
|||
Stock-based compensation expense |
- |
(14,575) |
- |
|||
Consolidated Total |
$ 17,413,276 |
$ 201,836 |
1.16% |
|||
Twenty-six Weeks Ended July 2, 2011 |
||||||
Operating |
Operating |
|||||
Net Sales |
Income |
Margin |
||||
North America |
$ 7,266,862 |
$ 126,736 |
1.74% |
|||
Europe |
5,516,354 |
48,997 |
0.89% |
|||
Asia-Pacific |
3,895,840 |
24,710 |
0.63% |
|||
Latin America |
793,681 |
12,747 |
1.61% |
|||
Stock-based compensation expense |
- |
(15,988) |
- |
|||
Consolidated Total |
$ 17,472,737 |
$ 197,202 |
1.13% |
(Logo: http://photos.prnewswire.com/prnh/20100107/IMLOGO)
SOURCE
Investors, Damon Wright, +1-714-382-5013, damon.wright@ingrammicro.com, or Media, Lisa Zwick, +1-949-230-8794, lisa.zwick@ingrammicro.com