Worldwide sales of
Worldwide gross profit was
2012 third quarter net income was
- A negative impact totaling approximately
$5.3 million pretax, or3 cents per diluted share, primarily related to restructuring inAustralia ,New Zealand and inEurope . In conjunction with these cost cutting actions, the company has also expanded its capabilities in lower cost shared services centers serving each region. The combination of these actions taken in the third quarter are expected to result in annualized cost savings of more than$10 million in 2013, more than half of which will benefitAustralia 's operating expense run rate; - A negative impact from acquisition costs totaling approximately
$2.3 million pretax, or1 cent per diluted share, consisting primarily of legal and other consultative services, associated with the acquisition ofBrightpoint, Inc. ; and - A negative impact from a net loss of
$2.8 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.
2011 third 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 third quarter highlights:
North America 's sales grew by 5 percent, increasing year-over-year for the 11th consecutive quarter, driven by growth in all U.S. divisions, including solid growth in the U.S. broadline business, as well as double-digit increases in the higher margin businesses of DBL, physical security and Ingram Micro Logistics. While growing share, the Canadian business declined modestly when compared to the 2011 third quarter, primarily due to soft market conditions and the non-recurrence of a special promotional program by a large vendor that drove strong Canadian sales last year.Latin America delivered all-time record third quarter revenues, growing sales 11 percent in U.S. dollars versus the prior year period, despite foreign exchange headwinds of 8 percent.Asia Pacific performed well, as the two largest contributors –China andIndia – each delivered double-digit growth in local currencies. Total sales for the region were up 6 percent in U.S. dollars and 10 percent in local currencies.- In
Europe , the company's three anchor countries ofGermany , theUK andFrance all experienced solid year-over-year sales growth in local currencies, offset somewhat by continued weakness in other countries as the region as a whole continues to experience challenging economic conditions. Although 2012 third quarter sales forEurope were down in U.S. dollars by 9 percent, sales grew by 1 percent in local currencies. - During the third quarter, the company issued a 10-year,
$300 million bond with a 5 percent annual coupon. The bridge financing commitment letter entered into onJune 29, 2012 was automatically terminated when these bonds were issued. - Working capital days were 26, within the company's targeted range of 22 to 26 days.
The Company also completed the following acquisitions at the beginning of the fourth quarter in support of its long-term growth strategy to expand the company's business in high growth markets, while increasing its services and solutions capabilities:
- On
October 15, 2012 ,Ingram Micro closed the BrightPoint acquisition and established itself as a leading global provider of device lifecycle services and solutions for the mobile industry; and - The company broadened its geographic reach into the
Middle East andNorth Africa with the acquisition of certain IT businesses ofDubai -basedAptec Holdings Ltd , a leading value-added distributor in theMiddle East andAfrica , with products and solutions covering data center, storage, security, networking and software categories, including technical services.
"It is clear that the macroeconomic environment and mid-term perspective are difficult, however, we executed well during the quarter, with every region growing revenues in local currencies," said
"Our position as the world's largest technology distributor provides valuable differentiation, giving us the ability to execute on our financial objectives despite challenging conditions," Monie said. "Our industry-leading reach covers more than 145 countries with the world's most comprehensive portfolio of IT products and services, which enables us to capture revenue opportunities in better performing regions such as
"In addition to our financial execution," Monie continued, "we are also executing on several of our stated strategic initiatives: building out our mobility business through adding scale and high value services with BrightPoint, while also expanding our reach into the
Nine-Month Period
For the nine months ended
Outlook
For the traditional
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) 203-1112 or (719) 457-0820 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
© 2012
Ingram Micro Inc. |
|||
Consolidated Balance Sheet |
|||
(Amounts in 000s) |
|||
(Unaudited) |
|||
September 29, |
December 31, |
||
2012 |
2011 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 1,156,076 |
$ 891,403 |
|
Trade accounts receivable, net |
3,784,098 |
4,465,329 |
|
Inventory |
3,338,513 |
2,942,164 |
|
Other current assets |
363,417 |
319,506 |
|
Total current assets |
8,642,104 |
8,618,402 |
|
Property and equipment, net |
353,353 |
323,261 |
|
Intangible assets, net |
65,374 |
73,330 |
|
Other assets |
133,755 |
131,523 |
|
Total assets |
$ 9,194,586 |
$ 9,146,516 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 4,411,990 |
$ 4,893,437 |
|
Accrued expenses |
441,024 |
524,010 |
|
Short-term debt and current maturities of long-term debt |
159,979 |
92,428 |
|
Total current liabilities |
5,012,993 |
5,509,875 |
|
Long-term debt, less current maturities |
610,693 |
300,000 |
|
Other liabilities |
83,051 |
63,864 |
|
Total liabilities |
5,706,737 |
5,873,739 |
|
Stockholders' equity |
3,487,849 |
3,272,777 |
|
Total liabilities and stockholders' equity |
$ 9,194,586 |
$ 9,146,516 |
Ingram Micro Inc. |
|||
Consolidated Statement of Income |
|||
(Amounts in 000s, except per share data) |
|||
(Unaudited) |
|||
Thirteen Weeks Ended |
|||
September 29, 2012 |
October 1, 2011 |
||
Net sales |
$ 9,034,141 |
$ 8,903,020 |
|
Cost of sales |
8,580,249 |
8,462,300 |
|
Gross profit |
453,892 |
440,720 |
|
Operating expenses: |
|||
Selling, general and administrative |
355,975 |
354,185 |
|
Reorganization costs |
5,268 |
1,156 |
|
361,243 |
355,341 |
||
Income from operations |
92,649 |
85,379 |
|
Interest and other: |
|||
Interest income |
(1,445) |
(1,432) |
|
Interest expense |
14,946 |
13,048 |
|
Net foreign currency exchange loss (gain) |
2,204 |
(1,348) |
|
Loss from settlement of interest rate swap |
|||
and senior unsecured term loan |
- |
5,624 |
|
Other |
1,918 |
2,393 |
|
17,623 |
18,285 |
||
Income before income taxes |
75,026 |
67,094 |
|
Provision for income taxes |
21,715 |
43,768 |
|
Net income |
$ 53,311 |
$ 23,326 |
|
Diluted earnings per share |
$ 0.35 |
$ 0.15 |
|
Diluted weighted average |
|||
shares outstanding |
152,816 |
156,767 |
Ingram Micro Inc. |
|||
Consolidated Statement of Income |
|||
(Amounts in 000s, except per share data) |
|||
(Unaudited) |
|||
Thirty-nine Weeks Ended |
|||
September 29, 2012 |
October 1, 2011 |
||
Net sales |
$ 26,447,417 |
$ 26,375,757 |
|
Cost of sales |
25,073,238 |
25,021,733 |
|
Gross profit |
1,374,179 |
1,354,024 |
|
Operating expenses: |
|||
Selling, general and administrative |
1,073,030 |
1,070,556 |
|
Reorganization costs |
6,664 |
887 |
|
1,079,694 |
1,071,443 |
||
Income from operations |
294,485 |
282,581 |
|
Interest and other: |
|||
Interest income |
(7,411) |
(4,056) |
|
Interest expense |
38,252 |
40,561 |
|
Net foreign currency exchange loss (gain) |
9,564 |
(1,313) |
|
Loss from settlement of interest rate swap |
|||
and senior unsecured term loan |
- |
5,624 |
|
Other |
7,006 |
9,444 |
|
47,411 |
50,260 |
||
Income before income taxes |
247,074 |
232,321 |
|
Provision for income taxes |
42,516 |
92,954 |
|
Net income |
$ 204,558 |
$ 139,367 |
|
Diluted earnings per share |
$ 1.33 |
$ 0.86 |
|
Diluted weighted average |
|||
shares outstanding |
153,871 |
161,543 |
Ingram Micro Inc. |
|||||||
Supplementary Information |
|||||||
Income from Operations |
|||||||
(Amounts in 000s) |
|||||||
(Unaudited) |
|||||||
Thirteen Weeks Ended September 29, 2012 |
|||||||
Operating |
Operating |
||||||
Net Sales |
Income |
Margin |
|||||
North America |
$ 3,972,208 |
$ 66,935 |
1.69% |
||||
Europe |
2,420,425 |
14,498 |
0.60% |
||||
Asia-Pacific |
2,174,409 |
9,193 |
0.42% |
||||
Latin America |
467,099 |
9,263 |
1.98% |
||||
Stock-based compensation expense |
- |
(7,240) |
- |
||||
Consolidated Total |
$ 9,034,141 |
$ 92,649 |
1.03% |
||||
Thirteen Weeks Ended October 1, 2011 |
|||||||
Operating |
Operating |
||||||
Net Sales |
Income |
Margin |
|||||
North America |
$ 3,769,733 |
$ 64,247 |
1.70% |
||||
Europe |
2,653,054 |
16,198 |
0.61% |
||||
Asia-Pacific |
2,059,944 |
7,773 |
0.38% |
||||
Latin America |
420,289 |
6,241 |
1.48% |
||||
Stock-based compensation expense |
- |
(9,080) |
- |
||||
Consolidated Total |
$ 8,903,020 |
$ 85,379 |
0.96% |
Ingram Micro Inc. |
|||||||
Supplementary Information |
|||||||
Income from Operations |
|||||||
(Amounts in 000s) |
|||||||
(Unaudited) |
|||||||
Thirty-nine Weeks Ended September 29, 2012 |
|||||||
Operating |
Operating |
||||||
Net Sales |
Income |
Margin |
|||||
North America |
$ 11,416,399 |
$ 205,313 |
1.80% |
||||
Europe |
7,527,622 |
51,412 |
0.68% |
||||
Asia-Pacific |
6,162,273 |
38,447 |
0.62% |
||||
Latin America |
1,341,123 |
21,128 |
1.58% |
||||
Stock-based compensation expense |
- |
(21,815) |
- |
||||
Consolidated Total |
$ 26,447,417 |
$ 294,485 |
1.11% |
||||
Thirty-nine Weeks Ended October 1, 2011 |
|||||||
Operating |
Operating |
||||||
Net Sales |
Income |
Margin |
|||||
North America |
$ 11,036,595 |
$ 190,984 |
1.73% |
||||
Europe |
8,169,408 |
65,195 |
0.80% |
||||
Asia-Pacific |
5,955,784 |
32,482 |
0.55% |
||||
Latin America |
1,213,970 |
18,988 |
1.56% |
||||
Stock-based compensation expense |
- |
(25,068) |
- |
||||
Consolidated Total |
$ 26,375,757 |
$ 282,581 |
1.07% |
(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