Annual Revenues Surpass $25 Billion
Fourth-Quarter Sales, Operating Margins Hit Four-Year Highs;
Quarterly Operating Income Increases More Than 20 Percent
SANTA ANA, Calif., Feb. 24 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE: IM), the world's largest technology distributor, today announced financial results for the fourth quarter and fiscal year of 2004 (ended Jan. 1, 2005).
Worldwide sales for the fourth quarter were $7.45 billion, a 10.2-percent increase over sales of $6.76 billion in the comparable period last year. This includes approximately $400 million in sales from the former Tech Pacific, which was acquired by the company on Nov. 10, 2004.
Fourth-quarter net income based on generally accepted accounting principles (GAAP) was $79.2 million or $0.48 per diluted share, which includes benefits of $19.3 million ($14.2 million net of tax or $0.08 per diluted share), primarily comprised of a foreign-exchange gain related to currency hedging of the company's Australian dollar-denominated purchase of Tech Pacific. In the year-ago period, net income was $46.4 million or $0.30 per diluted share, which included $8.7 million (approximately $5.9 million net of tax or $0.04 per diluted share) of major-program costs associated with the company's profit-enhancement program.
Net income on a non-GAAP basis, which excludes the benefits described above, was $65.0 million or $0.40 per share. This compares to year-ago net income excluding major-program costs of $52.3 million or $0.34 per diluted share. The company reports net income on a non-GAAP basis in order to enhance investors' understanding of operating performance and present meaningful comparisons.
"I congratulate our associates in every region for a strong finish to a historic year," said Kent B. Foster, chairman and chief executive officer, Ingram Micro Inc. "In the fourth quarter, we posted the highest operating margins in four years and exceeded our guidance range for sales and net income, while closing the largest acquisition in the company's history. We are particularly pleased to deliver sales growth over last year's 14-week fourth quarter, which was extraordinarily strong due to explosive European demand and extra selling days."
Additional Fourth-Quarter Highlights
For additional detail regarding the results outlined below, please refer to the financial statements and schedules attached to this news release or visit www.ingrammicro.com.
* Regional Sales:
* North American sales were 42 percent of the total or
$3.14 billion, an increase of 2 percent versus year-ago sales
of $3.08 billion.
* European sales were 40 percent of the total or $2.99 billion
versus $2.77 billion in the year-ago quarter. The growth was
driven by the strengthening European currencies; in local
currencies, sales were approximately flat with the
extraordinarily strong quarter in the prior year.
* Asia-Pacific sales were 13 percent of the total or $986 million,
approximately $400 million of which was generated by the former
Tech Pacific. Excluding the acquired revenues, sales in
Asia-Pacific declined 2 percent versus sales of $599 million in
the prior-year period, the result of the company's focus on
strengthening the business model, emphasizing sales discipline
and optimizing profitability.
* Latin American sales were 5 percent of the total or $337 million,
an increase of 7 percent versus year-ago sales of $315 million.
* Gross margin improved 26 basis points -- to 5.63 percent versus
5.37 percent in the year-ago quarter. Increased seasonal activity
in the Ingram Micro Logistics division had a favorable impact on
gross margin. In the year-ago quarter, gross margin was adversely
affected by inventory losses in Asia-Pacific and the underperformance
of the company's German-based networking business.
* Operating expenses were $310.8 million or 4.17 percent of revenues
versus $282.3 million or 4.18 percent of revenues in the year-ago
period, which had additional expenses due to the 14-week quarter. The
acquired Tech Pacific operations and the translation impact of the
strengthening European currencies added approximately $15 million and
$9 million, respectively, to the quarter's operating expenses compared
to the prior-year period. In addition, increased seasonal activity in
the Ingram Micro Logistics division and higher performance-based
compensation costs had an unfavorable impact compared to the prior
year. For comparison purposes, non-GAAP operating expenses excluding
benefits relating to the favorable resolution of lease termination
costs in 2004 and major-program costs in 2003 were $311.2 million or
4.18 percent of revenues versus $273.6 million or 4.05 percent of
revenues, respectively.
* Operating income was $108.7 million or 1.46 percent of revenues versus
$81.0 million or 1.20 percent of revenues in the year-ago period. For
comparison purposes, non-GAAP operating income excluding benefits
relating to the favorable resolution of lease termination costs in
2004 and major-program costs in 2003 was $108.3 million or 1.45
percent of revenues versus $89.7 million or 1.33 percent of revenues,
respectively.
* North American operating income was $37.9 million or 1.21 percent
of revenues versus $45.7 million or 1.48 percent of revenues in
the year-ago quarter. For comparison purposes, North American
operating income on a non-GAAP basis, which excludes
major-program costs, was $38.1 million or 1.21 percent of
revenues versus $51.6 million or 1.68 percent of revenues in the
prior-year period.
* European operating income was $57.9 million or 1.94 percent of
revenues versus $44.8 million or 1.62 percent of revenues in the
year-ago quarter. For comparison purposes, European operating
income on a non-GAAP basis, which excludes a reorganization
benefit in 2004 and major-program costs in 2003, was $57.2
million or 1.91 percent of revenues versus $46.7 million or
1.69 percent of revenues, respectively.
* Asia-Pacific operating income was $7.2 million or 0.73 percent of
revenues versus an operating loss of $7.9 million posted in the
year-ago quarter. Operating margins for the Tech Pacific
business since the acquisition closed on Nov. 10, 2004, were
approximately 2 percent of revenues.
* Latin American operating income was $5.8 million or 1.71 percent
of revenues versus an operating loss of $1.6 million in the
year-ago quarter, which included $768,000 in major-program costs.
* Other income for the quarter was $6.4 million, which includes the
currency-hedge gain.
* Excluding this gain, other expenses were $12.4 million, slightly
less than the $12.8 million posted a year ago despite the
10-percent increase in sales and cash used in the Tech Pacific
operation, primarily due to continued strong working capital
management.
* Total depreciation was $14.1 million.
* Capital expenditures were approximately $10.8 million.
Balance Sheet
* The cash balance at the end of the quarter was $398 million, a
43-percent increase over the $280 million balance at the end of 2003
despite the cash acquisition of Tech Pacific.
* Inventory was $2.18 billion or 28 days on hand compared to
$1.92 billion or 29 days on hand at the end of the prior year.
* Working capital days were 19 compared to 22 at the end of the prior
year. On a non-GAAP basis, which includes off-balance sheet financing
related to the Company's accounts receivables financing facilities,
working capital days were 23 at the end of the prior year.
* Total debt was $515 million or 19 percent of capitalization, slightly
higher than a year ago due to greater sales volume and the acquisition
of Tech Pacific.
"Our performance for the quarter and the year was driven by the strength of our regions, all of which ended 2004 with solid operating profits," said Thomas A. Madden, executive vice president and chief financial officer, Ingram Micro Inc. "Despite the challenging comparisons to the fourth quarter of last year, the European region significantly improved operating margins while making the final investment in improving its German-based networking business. North America also faced a tough prior-year comparison in an intensely competitive market, but improved sales over last year and delivered strong results in its logistics business, continuing its steady progress toward its operating margin goals. In Asia-Pacific, process improvements and stronger management drove significant improvements in profitability, even without the benefits of the Tech Pacific acquisition. And, Latin America has become one of our star performers, emerging from last year's operating loss to deliver operating margins that are more than 200 basis points higher than the year-ago period."
Fiscal Year Results
For the 52 weeks ended Jan. 1, 2005, worldwide sales were $25.46 billion versus $22.61 billion in 2004 -- a 12.6-percent increase, of which the translation impact of the strengthening European currencies contributed approximately four percentage points. Regionally, North America generated 46 percent of total annual revenues at $11.78 billion (a 7-percent increase); Europe generated 39 percent of revenues at $9.84 billion (a 19-percent increase, of which the translation impact of the strengthening European currencies contributed approximately 11 percentage points); Asia-Pacific generated 11 percent of revenues at $2.74 billion (an 18-percent increase, which primarily reflects the addition of Tech Pacific) and Latin America generated 4 percent of revenues at $1.10 billion (a 4-percent increase). The full-year gross margin was 5.51 percent, an increase of 10 basis points versus 2003.
Operating income was $283.4 million or 1.11 percent of revenues versus $156.2 million or 0.69 percent of revenues for 2003. Operating income on a non-GAAP basis in 2004 -- which excludes a credit of $2.9 million related primarily to the favorable resolution of lease termination costs from our profit-enhancement program -- was $280.5 million or 1.10 percent of revenues. In 2003, operating income on a non-GAAP basis, which excludes $45.4 million in major-program costs, was $201.6 million or 0.89 percent of revenues.
Net income based on GAAP was $219.9 million or $1.38 per diluted share versus $149.2 million or $0.98 per diluted share in 2003. For 2004, net income based on GAAP includes the following benefits totaling $58.8 million or $0.37 per diluted share: $41.1 million or $0.26 per diluted share for the reversal of previously accrued income taxes related to the gains realized on the sale of securities; foreign-exchange gains of $23.1 million ($15.7 million after tax or $0.10 per diluted share) related to currency hedging of the company's Australian dollar-denominated purchase of Tech Pacific; and $2.9 million ($2.0 million net of tax or $0.01 per diluted share) primarily related to the favorable resolution of lease termination costs reserved under the profit-enhancement program. For 2003, net income based on GAAP includes a benefit of $70.5 million (or $0.46 per diluted share) for the reversal of previously accrued income taxes related to the gain on the sale of securities, as well as $45.4 million ($30.9 million net of taxes or $0.20 per diluted share) in major-program costs associated with the company's profit-enhancement program.
Non-GAAP net income, which excludes the special items listed above, was $161.1 million -- a 47-percent increase over the $109.6 million in 2003 -- while earnings per share were $1.01 in 2004 versus $0.72 in 2003.
Capital expenditures for the full year were $37.0 million, while depreciation was $57.7 million.
Outlook for the First Quarter
The following statements are based on the company's current expectations and internal forecasts. These statements are forward looking and actual results may differ materially, as outlined in the company's periodic filings with the Securities and Exchange Commission.
According to the company's forecast for the first quarter ending April 2, 2005, sales are expected to range from $7.0 billion to $7.2 billion, with net income ranging from $47 million to $50 million, or $0.28 to $0.30 per diluted share based on approximately 164 million weighted average shares outstanding. Net income and earnings guidance excludes any reorganization costs, special items or integration expenses, which the company is unable to reasonably estimate at this time.
"Driving the year-over-year sales growth of 12 to 15 percent are additional revenues from the former Tech Pacific business, coupled with organic growth in our existing operations," said Foster. "The sequential decline of 3 to 6 percent reflects historical seasonal norms offset by a full quarter of Tech Pacific revenues. Historically, our fourth quarter is our strongest, followed by our first, with second and third quarters seasonally softer. As we disclosed in November, Tech Pacific is expected to add approximately $0.10 per share before integration costs for the full year, fairly evenly distributed among the four quarters."
Foster added: "Demand continues to be generally solid throughout the world, with some pockets of increasing competition and economic softness in specific markets. We expect to maintain or enhance market share through strategic initiatives to spur both sales and income, while expanding our reach into new technologies and markets."
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. EST. To listen to the conference call and view the accompanying presentation slides, visit the company's Web site at www.ingrammicro.com (Investor Relations section). The conference call is also accessible by telephone at (888) 455-0750 (toll-free within the United States and Canada) or (630) 395-0019 (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 (800) 678-3180 or (402) 220-3063 outside the United States and Canada.
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, including but not limited to statements about future revenues, sales levels, operating income, margins, integration costs, cost synergies, operating efficiencies, profitability, market share and rates of return, are based on current management expectations that involve certain risks which, if realized, in whole or in part, could cause such expectations to fail to be achieved and have a material adverse effect on Ingram Micro's business, financial condition and results of operations, including, without limitation: (1) intense competition, regionally and internationally, including competition from alternative business models, such as manufacturer-to-end-user selling, which may lead to reduced prices, lower sales or reduced sales growth, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) integration of our acquired businesses and similar transactions involve various risks and difficulties -- our operations may be adversely impacted by an acquisition that (i) is not suited for us, (ii) is improperly executed, or (iii) substantially increases our debt; (3) foreign exchange rate fluctuations, devaluation of a foreign currency, adverse governmental controls or actions, political or economic instability, or disruption of a foreign market, and other related risks of our international operations may adversely impact our operations in that country or globally; (4) we may not achieve the objectives of our process improvement efforts or be able to adequately adjust our cost structure in a timely fashion to remain competitive, which may cause our profitability to suffer; (5) our failure to attract new sources of profitable business from expansion of products or services or entry into new markets could negatively impact our future operating results; (6) an interruption or failure of our information systems or subversion of access or other system controls may result in a significant loss of business, assets, or competitive information; (7) significant changes in supplier terms, such as higher thresholds on sales volume before distributors may qualify for discounts and/or rebates, the overall reduction in the amount of incentives available, reduction or termination of price protection, return levels, or other inventory management programs, or reductions in payment terms, may adversely impact our results of operations or financial condition; (8) termination of a supply or services agreement with a major supplier or product supply shortages may adversely impact our results of operations; (9) changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates or may we may be required to pay additional tax assessments; (10) we cannot predict with certainty, the outcome of an informal inquiry from the SEC; (11) if there is a downturn in economic conditions for an extended period of time, it will likely have an adverse impact on our business; (12) we may experience loss of business from one or more significant customers, and an increased risk of credit loss as a result of reseller customers' businesses being negatively impacted by dramatic changes in the information technology products and services industry as well as intense competition among resellers -- increased losses, if any, may not be covered by credit insurance or we may not be able to obtain credit insurance at reasonable rates or at all; (13) rapid product improvement and technological change resulting in inventory obsolescence or changes in demand may result in a decline in value of a portion of our inventory; (14) future terrorist or military actions could result in disruption to our operations or loss of assets, in certain markets or globally; (15) the loss of a key executive officer or other key employees, or changes affecting the work force such as government regulations, collective bargaining agreements or the limited availability of qualified personnel, could disrupt operations or increase our cost structure; (16) changes in our credit rating or other market factors may increase our interest expense or other costs of capital, or capital may not be available to us on acceptable terms to fund our working capital needs; (17) our failure to adequately adapt to industry changes and to manage potential growth and/or contractions could negatively impact our future operating results; (18) future periodic assessments required by current or new accounting standards such as those relating to long-lived assets, goodwill and other intangible assets and expensing of stock options may result in additional non-cash charges; (19) seasonal variations in the demand for products and services, as well as the introduction of new products, may cause variations in our quarterly results; and (20) the failure of certain shipping companies to deliver product to us, or from us to our customers, may adversely impact our results of operations.
Ingram Micro has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Ingram Micro's results of operations and financial condition. However, no assurances can be given 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 Exhibit 99.01 of Ingram Micro's Annual Report on Form 10-K for the year ended January 3, 2004; other risks or uncertainties may be detailed from time to time in Ingram Micro's future SEC filings. Ingram Micro disclaims any duty to update any forward-looking statements.
About Ingram Micro Inc.
As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services, and product aggregation and distribution. The company serves 100 countries and is the only global IT distributor with operations in Asia. Visit www.ingrammicro.com.
(C) 2005 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
(Dollars in 000s)
(Unaudited)
January 1, January 3,
2005 2004
ASSETS
Current assets:
Cash $398,423 $279,587
Accounts receivable, including retained
interest in securitized receivables, net 3,037,417 2,455,902
Inventories 2,175,185 1,915,403
Other current assets 471,137 317,201
Total current assets 6,082,162 4,968,093
Property and equipment, net 199,133 210,722
Goodwill and other assets 645,442 295,347
Total assets $6,926,737 $5,474,162
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,536,880 $2,821,518
Accrued expenses 607,684 390,244
Current maturities of long-term debt 168,649 128,346
Total current liabilities 4,313,213 3,340,108
Long-term debt, less current maturities 346,183 239,909
Deferred income taxes and other liabilities 26,531 21,196
Total liabilities 4,685,927 3,601,213
Stockholders' equity 2,240,810 1,872,949
Total liabilities and stockholders'
equity $6,926,737 $5,474,162
Ingram Micro Inc.
Consolidated Statement of Income
(Dollars in 000s, except per share data)
(Unaudited)
Thirteen Weeks Ended January 1, 2005
Non-GAAP
As Reported Financial
Under GAAP Special Items (a) Measure
Net sales $7,453,423 $-- $7,453,423
Costs of sales 7,033,900 -- 7,033,900
Gross profit 419,523 -- 419,523
Operating expenses:
Selling, general and
administrative 311,229 -- 311,229
Reorganization costs (440) 440 --
310,789 440 311,229
Income from operations 108,734 (440) 108,294
Interest and other (6,416) 18,843 12,427
Income before income taxes 115,150 (19,283) 95,867
Provision for income taxes 35,952 (5,070) 30,882
Net income $79,198 $(14,213) $64,985
Diluted earnings per share:
Net income $0.48 $(0.08) $0.40
Diluted weighted average
shares outstanding 163,423,394 163,423,394 163,423,394
Fourteen Weeks Ended January 3, 2004
Non-GAAP
As Reported Financial
Under GAAP Special Items (b) Measure
Net sales $6,760,718 $-- $6,760,718
Costs of sales 6,397,400 -- 6,397,400
Gross profit 363,318 -- 363,318
Operating expenses:
Selling, general and
administrative 275,455 (1,826) 273,629
Reorganization costs 6,849 (6,849) --
282,304 (8,675) 273,629
Income from operations 81,014 8,675 89,689
Interest and other 12,797 -- 12,797
Income before income taxes 68,217 8,675 76,892
Provision for income taxes 21,829 2,776 24,605
Net income $46,388 $5,899 $52,287
Diluted earnings per share:
Net income $0.30 $0.04 $0.34
Diluted weighted average
shares outstanding 155,029,400 155,029,400 155,029,400
(a) Special items in 2004 include net adjustments to reorganization costs
of $440 primarily for favorable resolution of lease termination costs
related to actions taken in prior years and a pre-tax foreign-exchange
gain of $18,843 related to the forward currency exchange contract of
the Company's Australian-dollar denominated purchase of Tech Pacific.
In addition, income taxes include a benefit of $1,100 for the reversal
of previously accrued federal and state income taxes related to the
gain on the sale of securities in 1999 and 2000.
(b) Special items in 2003 include reorganization costs of $6,849 primarily
for workforce reductions worldwide and facility consolidations,
primarily in North America and Europe and $1,826 charged to selling,
general and administrative expenses, primarily comprised of
accelerated depreciation of fixed assets associated with the planned
exit of facilities and outsourcing of the Company's IT infrastructure,
as well as consulting, relocation, transition, and other related
costs.
Ingram Micro Inc.
Consolidated Statement of Income
(Dollars in 000s, except per share data)
(Unaudited)
Fifty-two Weeks Ended January 1, 2005
Non-GAAP
As Reported Financial
Under GAAP Special Items (a) Measure
Net sales $25,462,071 $-- $25,462,071
Costs of sales 24,060,029 -- 24,060,029
Gross profit 1,402,042 -- 1,402,042
Operating expenses:
Selling, general and
administrative 1,121,571 -- 1,121,571
Reorganization costs (2,896) 2,896 --
1,118,675 2,896 1,121,571
Income from operations 283,367 (2,896) 280,471
Interest and other 20,091 23,120 43,211
Income before income taxes 263,276 (26,016) 237,260
Provision for income taxes 43,375 32,753 76,128
Net income $219,901 $(58,769) $161,132
Diluted earnings per share:
Net income $1.38 $(0.37) $1.01
Diluted weighted average
shares outstanding 159,680,040 159,680,040 159,680,040
Fifty-three Weeks Ended January 3, 2004
Non-GAAP
As Reported Financial
Under GAAP Special Items (b) Measure
Net sales $22,613,017 $-- $22,613,017
Costs of sales 21,389,529 (443) 21,389,086
Gross profit 1,223,488 443 1,223,931
Operating expenses:
Selling, general and
administrative 1,045,725 (23,363) 1,022,362
Reorganization costs 21,570 (21,570) --
1,067,295 (44,933) 1,022,362
Income from operations 156,193 45,376 201,569
Interest and other 40,399 -- 40,399
Income before income taxes 115,794 45,376 161,170
Provision for (benefit from)
income taxes (33,407) 84,982 51,575
Net income $149,201 $(39,606) $109,595
Diluted earnings per share:
Net income $0.98 $(0.26) $0.72
Diluted weighted average
shares outstanding 152,308,394 152,308,394 152,308,394
(a) Special items in 2004 include net adjustments to reorganization costs
of $2,896 primarily for favorable resolution of lease termination
costs related to actions taken in prior years and a pre-tax
foreign-exchange gain of $23,120 related to the forward currency
exchange contract of the Company's Australian-dollar denominated
purchase of Tech Pacific. In addition, income taxes include a benefit
of $41,078 for the reversal of previously accrued federal and state
income taxes related to the gain on the sale of securities in 1999 and
2000.
(b) Special items in 2003 include major program costs of $45,376 and an
income tax benefit of $70,461 for the reversal of previously accrued
federal income taxes related to the gain on sale of securities in
1999. Major program costs consist of reorganization costs of $21,570
for workforce reductions worldwide and facility consolidations in
North America and Europe; $23,363 charged to selling, general and
administrative expenses, primarily comprised of accelerated
depreciation of fixed assets associated with the planned exit of
facilities, outsourcing of the company's IT infrastructure, and
software replaced by a more efficient solution, as well as a loss on
the sale of a German semiconductor equipment distribution business,
relocation, transition, and other related costs, partially offset by a
gain on sale of excess land near the Company's corporate headquarters
in Southern California; and $443 recorded as cost of sales in Europe,
comprised of incremental inventory losses caused by the exit of
certain markets.
Ingram Micro Inc.
Supplementary Information
(Dollars in 000s)
(Unaudited)
Thirteen Weeks Ended January 1, 2005
Income from operations
Non-GAAP
As Reported Financial
Net Sales Under GAAP Special Items (a) Measure
North America $3,140,906 $37,891 $259 $38,150
Europe 2,989,144 57,867 (699) 57,168
Asia-Pacific 986,176 7,215 -- 7,215
Latin America 337,197 5,761 -- 5,761
$7,453,423 $108,734 $(440) $108,294
Fourteen Weeks Ended January 3, 2004
Income (Loss) from operations
Non-GAAP
As Reported Financial
Net Sales Under GAAP Special Items (b) Measure
North America $3,079,858 $45,706 $5,886 $51,592
Europe 2,766,595 44,758 1,980 46,738
Asia-Pacific 599,486 (7,857) 41 (7,816)
Latin America 314,779 (1,593) 768 (825)
$6,760,718 $81,014 $8,675 $89,689
(a) Special items in 2004 represent net adjustments to reorganization
costs of $440 (credit of $699 in Europe, partially offset by a charge
of $259 in North America), primarily related to actions taken in prior
years for lower than expected costs associated with facility
consolidations.
(b) Special items in 2003 include reorganization costs of $6,849 ($4,060
in North America, $1,980 in Europe, $41 in Asia-Pacific and $768 in
Latin America) primarily for workforce reductions worldwide and
facility consolidations, primarily in North America and Europe; and
$1,826 charged to selling, general and administrative expenses in
North America, primarily comprised of accelerated depreciation of
fixed assets associated with the planned exit of facilities and
outsourcing of the Company's IT infrastructure, as well as consulting,
relocation, transition and other related costs.
Ingram Micro Inc.
Supplementary Information
(Dollars in 000s)
(Unaudited)
Fifty-two Weeks Ended January 1, 2005
Income from operations
Non-GAAP
As Reported Financial
Net Sales Under GAAP Special Items (a) Measure
North America $11,776,679 $130,321 $(2,234) $128,086
Europe 9,839,185 129,754 (978) 128,776
Asia-Pacific 2,741,608 9,796 316 10,112
Latin America 1,104,599 13,496 -- 13,496
$25,462,071 $283,367 $(2,896) $280,471
Fifty-three Weeks Ended January 3, 2004
Income (Loss) from operations
Non-GAAP
As Reported Financial
Net Sales Under GAAP Special Items (b) Measure
North America $10,964,761 $94,501 $28,633 $123,134
Europe 8,267,000 73,248 15,610 88,858
Asia-Pacific 2,319,982 (10,335) 74 (10,261)
Latin America 1,061,274 (1,221) 1,059 (162)
$22,613,017 $156,193 $45,376 $201,569
(a) Special items in 2004 represent net adjustments to reorganization
costs of $2,896 (credit of $2,234 in North America and $978 in Europe,
partially offset by a charge of $316 in Asia-Pacific) primarily
related to actions taken in prior years for lower than expected costs
associated with facility consolidations.
(b) Special items in 2003 include reorganization costs of $21,570 ($11,234
in North America, $9,203 in Europe, $74 in Asia-Pacific and $1,059 in
Latin America) for workforce reductions worldwide and facility
consolidations in North America and Europe; $23,363 charged to
selling, general and administrative expenses ($17,399 in North America
and $5,964 in Europe), primarily comprised of accelerated depreciation
of fixed assets associated with the planned exit of facilities,
outsourcing of the Company's IT infrastructure, and software replaced
by a more efficient solution, as well as a loss on the sale of a
German semiconductor equipment distribution business, relocation,
transition, and other related costs, partially offset by a gain on
sale of excess land near the Company's corporate headquarters in
Southern California; and $443 recorded as cost of sales in Europe,
comprised of incremental inventory losses caused by the exit of
certain markets.
SOURCE Ingram Micro Inc.
-0- 02/24/2005
/CONTACT: Investors and Worldwide Media, Ria Marie Carlson,
+1-714-382-4400, ria.carlson@ingrammicro.com, or North American Media, Marie
Meoli, +1-714-382-2190, marie.meoli@ingrammicro.com, or Investors, Kay Leyba,
+1-714-382-4175, kay.leyba@ingrammicro.com, all of Ingram Micro Inc./
/Web site: http://www.ingrammicro.com /
(IM)
CO: Ingram Micro Inc.
ST: California
IN: CPR STW
SU: ERN ERP CCA
LP-MS
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1236 02/24/2005 16:14 EST http://www.prnewswire.com