"We had a solid close to a strong year of execution, and we are pleased with the progress we are making against our strategic initiatives," said Alain Monié,
Fourth Quarter Results of Operations
Worldwide fourth quarter sales were
Cash flow from operations for the 2015 fourth quarter was
2015 fourth quarter non-GAAP operating margin was 2.11 percent, up from 1.77 percent last year. 2015 fourth quarter non-GAAP operating income of
2015 fourth quarter non-GAAP earnings were
Key 2015 fourth quarter business highlights:
North America revenue was$4.7 billion with non-GAAP operating margin of 2.62 percent and GAAP operating margin of 2.14 percent.Europe revenue was$3.4 billion with non-GAAP operating margin of 1.58 percent and GAAP operating margin of 1.33 percent.Asia Pacific revenue was$2.5 billion with non-GAAP operating margin of 2.20 percent and GAAP operating margin of 2.01 percent.Latin America revenue was$0.8 billion with non-GAAP operating margin of 2.58 percent and GAAP operating margin of 2.36 percent.- Return on invested capital for the 2015 full year was 10.7 percent on a non-GAAP basis, nearly 300 basis points above the company weighted average cost of capital. Return on invested capital on a GAAP basis was 6.9 percent.
- During the quarter,
Ingram Micro added to its expertise and capabilities across its key strategic initiatives, closing the following acquisitions:- Commerce and fulfillment solutions provider
DocData , one of the leading European providers of order fulfillment, returns logistics and online payment services; Sao Paulo, Brazil -based Grupo AÇÃO, one ofLatin America's leading providers of critical value-add IT solutions with a portfolio of higher value products, including those from strategic vendors such asIBM ,Oracle ,Red Hat ,EMC andVMware , and solutions offerings including integration services, sales support and financial services; and- Cloud-focused Parallels Odin Service Automation platform.
- Commerce and fulfillment solutions provider
Ingram Micro repurchased 1.7 million shares during the 2015 fourth quarter for a total cost of$53 million .Ingram Micro's U.S. operations raised nearly$700,000 for local charities resulting from fund-raising events inNew York andCalifornia .
As noted in the press release issued on
Conference Call and Webcast
As noted in the press release issued on
Non-GAAP Disclosures
In addition to GAAP results,
The non-GAAP measures noted above are primary indicators that
A reconciliation of GAAP to non-GAAP financial measures for the periods presented is attached to this press release.
About
Additional Information
In connection with the proposed merger,
Participants in the Solicitation
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
The matters in this communication that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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
(C) 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 | ||||||||
(Amounts in 000s) | ||||||||
(Unaudited) | ||||||||
January 2, | January 3, | |||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 935,267 | $ | 692,777 | ||||
Trade accounts receivable, net | 5,663,754 | 6,115,328 | ||||||
Inventory | 3,457,016 | 4,145,012 | ||||||
Other current assets | 475,813 | 532,406 | ||||||
Total current assets | 10,531,850 | 11,485,523 | ||||||
Property and equipment, net | 381,414 | 432,430 | ||||||
Goodwill | 843,001 | 532,483 | ||||||
Intangible assets, net | 374,674 | 318,689 | ||||||
Other assets | 176,321 | 62,318 | ||||||
Total assets | $ | 12,307,260 | $ | 12,831,443 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,353,511 | $ | 6,522,369 | ||||
Accrued expenses | 620,501 | 542,038 | ||||||
Short-term debt and current maturities of long-term debt | 134,103 | 372,026 | ||||||
Total current liabilities | 7,108,115 | 7,436,433 | ||||||
Long-term debt, less current maturities | 1,097,273 | 1,096,889 | ||||||
Other liabilities | 134,086 | 132,295 | ||||||
Total liabilities | 8,339,474 | 8,665,617 | ||||||
Stockholders' equity | 3,967,786 | 4,165,826 | ||||||
Total liabilities and stockholders' equity | $ | 12,307,260 | $ | 12,831,443 | ||||
Ingram Micro Inc. | ||||||||
Consolidated Statement of Income | ||||||||
(Amounts in 000s, except per share data) | ||||||||
(Unaudited) | ||||||||
Thirteen Weeks Ended | Fourteen Weeks Ended | |||||||
January 2, 2016 | January 3, 2015 | |||||||
Net sales | $ | 11,312,268 | $ | 13,956,218 | ||||
Cost of sales | 10,538,845 | 13,180,915 | ||||||
Gross profit | 773,423 | 775,303 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 550,188 | 544,205 | ||||||
Amortization of intangible assets | 14,912 | 15,822 | ||||||
Reorganization costs | 7,075 | 14,308 | ||||||
Impairment of internally developed software | 5,145 | - | ||||||
577,320 | 574,335 | |||||||
Income from operations | 196,103 | 200,968 | ||||||
Other expense (income): | ||||||||
Interest income | (479 | ) | (1,100 | ) | ||||
Interest expense | 20,067 | 23,322 | ||||||
Net foreign currency exchange loss | 590 | 5,413 | ||||||
Other | 5,767 | 2,394 | ||||||
25,945 | 30,029 | |||||||
Income before income taxes | 170,158 | 170,939 | ||||||
Provision for income taxes | 28,957 | 51,928 | ||||||
Net income | $ | 141,201 | $ | 119,011 | ||||
Diluted earnings per share | $ | 0.93 | $ | 0.74 | ||||
Diluted weighted average shares outstanding | 151,826 | 159,948 | ||||||
Ingram Micro Inc. | ||||||||
Consolidated Statement of Income | ||||||||
(Amounts in 000s, except per share data) | ||||||||
(Unaudited) | ||||||||
Fifty-two Weeks Ended | Fifty-three Weeks Ended | |||||||
January 2, 2016 | January 3, 2015 | |||||||
Net sales | $ | 43,025,852 | $ | 46,487,426 | ||||
Cost of sales | 40,314,560 | 43,821,709 | ||||||
Gross profit | 2,711,292 | 2,665,717 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 2,076,528 | 2,025,948 | ||||||
Amortization of intangible assets | 62,138 | 58,962 | ||||||
Reorganization costs | 36,309 | 93,545 | ||||||
Impairment of internally developed software | 121,001 | - | ||||||
2,295,976 | 2,178,455 | |||||||
Income from operations | 415,316 | 487,262 | ||||||
Other expense (income): | ||||||||
Interest income | (3,129 | ) | (4,882 | ) | ||||
Interest expense | 81,866 | 77,728 | ||||||
Net foreign currency exchange loss | 27,130 | 4,260 | ||||||
Other | 13,023 | 15,405 | ||||||
118,890 | 92,511 | |||||||
Income before income taxes | 296,426 | 394,751 | ||||||
Provision for income taxes | 81,321 | 128,060 | ||||||
Net income | $ | 215,105 | $ | 266,691 | ||||
Diluted earnings per share | $ | 1.37 | $ | 1.67 | ||||
Diluted weighted average shares outstanding | 156,596 | 159,452 | ||||||
Ingram Micro Inc. | |||||||||||
Consolidated Statement of Cash Flows | |||||||||||
(Amounts in 000s) | |||||||||||
(Unaudited) | |||||||||||
Fifty-two Weeks Ended | Fifty-three Weeks Ended | ||||||||||
January 2, 2016 | January 3, 2015 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 215,105 | $ | 266,691 | |||||||
Adjustments to reconcile net income to cash provided (used) by operating activities: | |||||||||||
Depreciation and amortization | 153,144 | 146,028 | |||||||||
Stock-based compensation | 39,893 | 36,022 | |||||||||
Excess tax benefit from stock-based compensation | (5,154 | ) | (5,572 | ) | |||||||
Write-off of assets | - | 12,855 | |||||||||
Gain on sale of property and equipment | (2,222 | ) | (1,684 | ) | |||||||
Impairment of internally developed software | 121,001 | - | |||||||||
Noncash charges for interest and bond discount amortization | 2,917 | 2,425 | |||||||||
Deferred income taxes | (29,158 | ) | (29,282 | ) | |||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Trade accounts receivable | 399,538 | (601,083 | ) | ||||||||
Inventory | 596,493 | (405,611 | ) | ||||||||
Other current assets | (40,879 | ) | (24,268 | ) | |||||||
Accounts payable | 3,950 | 252,977 | |||||||||
Change in book overdrafts | (28,305 | ) | 52,486 | ||||||||
Accrued expenses | 29,630 | (192,086 | ) | ||||||||
Cash provided (used) by operating activities | 1,455,953 | (490,102 | ) | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (122,918 | ) | (88,651 | ) | |||||||
Sale (purchase) of marketable securities, net | 5,000 | (187 | ) | ||||||||
Proceeds from sale of property and equipment | 1,223 | 67,470 | |||||||||
Cost-based investment | - | (10,000 | ) | ||||||||
Acquisitions and earn-out payments, net of cash acquired | (479,348 | ) | (40,924 | ) | |||||||
Cash used by investing activities | (596,043 | ) | (72,292 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from exercise of stock options | 17,115 | 19,334 | |||||||||
Repurchase of Class A Common Stock | (259,027 | ) | - | ||||||||
Excess tax benefit from stock-based compensation | 5,154 | 5,572 | |||||||||
Net proceeds from issuance of senior unsecured notes, net of issuance costs | - | 494,995 | |||||||||
Other consideration for acquisitions | (2,358 | ) | - | ||||||||
Dividends paid to shareholders | (30,182 | ) | - | ||||||||
Net proceeds from (repayments of) revolving credit facilities | (307,886 | ) | 99,789 | ||||||||
Cash provided (used) by financing activities | (577,184 | ) | 619,690 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (40,236 | ) | (38,909 | ) | |||||||
Increase in cash and cash equivalents | 242,490 | 18,387 | |||||||||
Cash and cash equivalents, beginning of year | 692,777 | 674,390 | |||||||||
Cash and cash equivalents, end of year | $ | 935,267 | $ | 692,777 | |||||||
Ingram Micro Inc. |
Supplementary Information |
Income from Operations - Reconciliation of GAAP to Non-GAAP Information |
(Amounts in Millions) |
(Unaudited) |
Thirteen Weeks Ended January 2, 2016 | ||||||||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based Compensation |
Impairment of Internally Developed Software |
Consolidated Total |
||||||||||||||||||||||
Net Sales | $ | 4,663.5 | $ | 3,378.7 | $ | 2,512.2 | $ | 757.9 | $ | - | $ | - | $ | 11,312.3 | ||||||||||||||
GAAP Operating Income | $ | 99.7 | $ | 44.8 | $ | 50.4 | $ | 17.9 | $ | (11.6 | ) | $ | (5.1 | ) | $ | 196.1 | ||||||||||||
Reorganization, integration and transition costs | 14.3 | 4.7 | 2.9 | 1.2 | - | - | 23.1 | |||||||||||||||||||||
Amortization of intangible assets | 8.4 | 4.0 | 2.0 | 0.5 | - | - | 14.9 | |||||||||||||||||||||
Impairment of internally developed software | - | - | - | - | - | 5.1 | 5.1 | |||||||||||||||||||||
Non-GAAP Operating Income | $ | 122.4 | $ | 53.5 | $ | 55.3 | $ | 19.6 | $ | (11.6 | ) | $ | - | $ | 239.2 | |||||||||||||
GAAP Operating Margin | 2.14 | % | 1.33 | % | 2.01 | % | 2.36 | % | 1.73 | % | ||||||||||||||||||
Non-GAAP Operating Margin | 2.62 | % | 1.58 | % | 2.20 | % | 2.58 | % | 2.11 | % | ||||||||||||||||||
Fourteen Weeks Ended January 3, 2015 | ||||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based Compensation |
Consolidated Total |
|||||||||||||||||||
Net Sales | $ | 6,041.7 | $ | 4,186.0 | $ | 2,964.8 | $ | 763.7 | $ | - | $ | 13,956.2 | ||||||||||||
GAAP Operating Income | $ | 124.2 | $ | 34.2 | $ | 37.3 | $ | 16.6 | $ | (11.3 | ) | $ | 201.0 | |||||||||||
Reorganization, integration and transition costs | 12.3 | 16.4 | 2.4 | 1.4 | - | 32.5 | ||||||||||||||||||
Amortization of intangible assets | 11.5 | 2.7 | 1.4 | 0.2 | - | 15.8 | ||||||||||||||||||
LCD class action settlement | (2.8 | ) | - | - | - | - | (2.8 | ) | ||||||||||||||||
Non-GAAP Operating Income | $ | 145.2 | $ | 53.3 | $ | 41.1 | $ | 18.2 | $ | (11.3 | ) | $ | 246.5 | |||||||||||
GAAP Operating Margin | 2.06 | % | 0.82 | % | 1.26 | % | 2.17 | % | 1.44 | % | ||||||||||||||
Non-GAAP Operating Margin | 2.40 | % | 1.27 | % | 1.39 | % | 2.38 | % | 1.77 | % | ||||||||||||||
Ingram Micro Inc. |
Supplementary Information |
Income from Operations - Reconciliation of GAAP to Non-GAAP Information |
(Amounts in Millions) |
(Unaudited) |
Fifty-two Weeks Ended January 2, 2016 | ||||||||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based Compensation |
Impairment of Internally Developed Software |
Consolidated Total |
||||||||||||||||||||||
Net Sales | $ | 18,200.7 | $ | 12,236.5 | $ | 10,066.1 | $ | 2,522.6 | $ | - | $ | - | $ | 43,025.9 | ||||||||||||||
GAAP Operating Income | $ | 323.3 | $ | 65.7 | $ | 144.8 | $ | 42.4 | $ | (39.9 | ) | $ | (121.0 | ) | $ | 415.3 | ||||||||||||
Reorganization, integration and transition costs | 42.9 | 20.6 | 12.2 | 4.7 | - | - | 80.4 | |||||||||||||||||||||
Amortization of intangible assets | 37.3 | 15.3 | 7.7 | 1.8 | - | - | 62.1 | |||||||||||||||||||||
Impairment of internally developed software | - | - | - | - | - | 121.0 | 121.0 | |||||||||||||||||||||
Estimated settlement of employee related taxes | - | 4.7 | - | - | - | - | 4.7 | |||||||||||||||||||||
Non-GAAP Operating Income | $ | 403.5 | $ | 106.3 | $ | 164.7 | $ | 48.9 | $ | (39.9 | ) | $ | - | $ | 683.5 | |||||||||||||
GAAP Operating Margin | 1.78 | % | 0.54 | % | 1.44 | % | 1.68 | % | 0.97 | % | ||||||||||||||||||
Non-GAAP Operating Margin | 2.22 | % | 0.87 | % | 1.64 | % | 1.94 | % | 1.59 | % | ||||||||||||||||||
Fifty-three Weeks Ended January 3, 2015 | ||||||||||||||||||||||||
North America | Europe | Asia-Pacific | Latin America | Stock-based Compensation |
Consolidated Total |
|||||||||||||||||||
Net Sales | $ | 19,929.1 | $ | 14,263.4 | $ | 9,991.2 | $ | 2,303.7 | $ | - | $ | 46,487.4 | ||||||||||||
GAAP Operating Income | $ | 343.5 | $ | 28.2 | $ | 108.8 | $ | 42.8 | $ | (36.0 | ) | $ | 487.3 | |||||||||||
Reorganization, integration and transition costs | 52.2 | 78.0 | 6.9 | 2.5 | - | 139.6 | ||||||||||||||||||
Amortization of intangible assets | 41.1 | 11.4 | 5.6 | 0.8 | - | 58.9 | ||||||||||||||||||
LCD class action settlement | (9.4 | ) | - | - | - | - | (9.4 | ) | ||||||||||||||||
Non-GAAP Operating Income | $ | 427.4 | $ | 117.6 | $ | 121.3 | $ | 46.1 | $ | (36.0 | ) | $ | 676.4 | |||||||||||
GAAP Operating Margin | 1.72 | % | 0.20 | % | 1.09 | % | 1.86 | % | 1.05 | % | ||||||||||||||
Non-GAAP Operating Margin | 2.14 | % | 0.82 | % | 1.21 | % | 2.00 | % | 1.46 | % | ||||||||||||||
Ingram Micro Inc. | ||||||||
Supplementary Information | ||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||
(Amounts in Millions, except per share data) | ||||||||
(Unaudited) | ||||||||
Thirteen Weeks Ended January 2, 2016 | ||||||||
Diluted | ||||||||
Net Income | Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 141.2 | $ | 0.93 | ||||
Reorganization, integration and transition costs | 13.1 | 0.09 | ||||||
Amortization of intangible assets | 11.1 | 0.07 | ||||||
Impairment of internally developed software | 3.1 | 0.02 | ||||||
Pan-Europe foreign exchange gain | (1.5 | ) | (0.01 | ) | ||||
Release of Brazil valuation allowance | (14.3 | ) | (0.09 | ) | ||||
Non-GAAP Financial Measure | $ | 152.7 | $ | 1.01 | ||||
Fourteen Weeks Ended January 3, 2015 | ||||||||
Diluted | ||||||||
Net Income | Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 119.0 | $ | 0.74 | ||||
Reorganization, integration and transition costs | 27.3 | 0.17 | ||||||
Amortization of intangible assets | 11.2 | 0.07 | ||||||
LCD class action settlement | (2.0 | ) | (0.01 | ) | ||||
Pan-Europe foreign exchange loss | 0.5 | 0.01 | ||||||
Non-GAAP Financial Measure | $ | 156.0 | $ | 0.98 | ||||
(a) | Amounts above are net of applicable income taxes and per share impacts are calculated by dividing net income amount by the diluted weighted average shares outstanding of 151.8 and 159.9 for the thirteen weeks ended January 2, 2016 and fourteen weeks ended January 3, 2015, respectively. |
Ingram Micro Inc. | ||||||||
Supplementary Information | ||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||
(Amounts in Millions, except per share data) | ||||||||
(Unaudited) | ||||||||
Fifty-two Weeks Ended January 2, 2016 | ||||||||
Diluted | ||||||||
Net Income | Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 215.1 | $ | 1.37 | ||||
Reorganization, integration and transition costs | 55.2 | 0.36 | ||||||
Amortization of intangible assets | 45.5 | 0.29 | ||||||
Impairment of internally developed software | 102.8 | 0.66 | ||||||
Estimated settlement of employee related taxes | 3.5 | 0.02 | ||||||
Pan-Europe foreign exchange loss | 3.7 | 0.02 | ||||||
Release of Brazil valuation allowance | (14.3 | ) | (0.09 | ) | ||||
Non-GAAP Financial Measure | $ | 411.5 | $ | 2.63 | ||||
Fifty-three Weeks Ended January 3, 2015 | ||||||||
Diluted | ||||||||
Net Income | Earnings per Share (a) | |||||||
As Reported Under GAAP | $ | 266.7 | $ | 1.67 | ||||
Reorganization, integration and transition costs | 112.4 | 0.71 | ||||||
Amortization of intangible assets | 41.8 | 0.26 | ||||||
LCD class action settlement | (6.7 | ) | (0.04 | ) | ||||
Pan-Europe foreign exchange gain | (5.6 | ) | (0.04 | ) | ||||
Non-GAAP Financial Measure | $ | 408.6 | $ | 2.56 | ||||
(a) | Amounts above are net of applicable income taxes and per share impacts are calculated by dividing net income amount by the diluted weighted average shares outstanding of 156.6 and 159.5 for the fifty-two weeks ended January 2, 2016 and fifty-three weeks ended January 3, 2015, respectively. |
Ingram Micro Inc. | |||||||||||
Supplementary Information | |||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||
(Amounts in Millions) | |||||||||||
(Unaudited) | |||||||||||
Fifty-two Weeks Ended January 2, 2016 | |||||||||||
As Reported Under GAAP |
Special Items* |
Non-GAAP Financial Measure |
|||||||||
Income from operations | $ | 415.3 | $ | 268.2 | $ | 683.5 | |||||
Effective tax rate | 27.4 | % | 34.2 | % | 27.8 | % | |||||
NOPAT (a) | $ | 317.0 | $ | 176.4 | $ | 493.4 | |||||
Average invested capital (b) | $ | 4,594.7 | $ | 4,594.7 | |||||||
Return on invested capital (c) | 6.9 | % | 10.7 | % | |||||||
(a) | NOPAT is net operating profit after tax for the trailing twelve month period ended January 2, 2016, and is calculated by reducing income from operations by the effective tax rate for the period (provision for income taxes divided by income before income taxes). |
(b) | Average invested capital equals the average of equity plus debt less cash as of the beginning and end of each quarter in the period. |
(c) | Return on invested capital is defined as the trailing twelve months net operating profit after tax divided by the average invested capital. |
* Special items include reorganization, acquisitions, integration and transition costs, including those associated with the company's previously announced cost savings programs, and the amortization of intangible assets. They also include a charge of $121 million related to an impairment of internally developed software resulting from the company's decision to stop its global ERP deployment and a charge of $4.7 million for an estimated settlement of employee benefit taxes assessed in Europe. |
For More Information Contact:
Investors:
(714) 382-5013
damon.wright@ingrammicro.com
Source: