Worldwide sales grew to
Worldwide gross profit was
Net income was
Further detail can be found in the financial statements and schedules attached to this news release or at www.ingrammicro.com.
Other key drivers of 2011 fourth quarter results:
North America operating margin of 214 basis points of sales was the highest in more than a decade, benefiting from solid execution across the business.- EMEA operating income reached an all-time high of
$71.1 million , or 222 basis points of sales, driven in part by a favorable hard disk drive pricing and strength in the company's SMB market. - Management's continued diligent focus on driving productivity and efficiencies throughout the business resulted in the lowest level of operating expense as a percentage of revenue in more than a decade at 380 basis points of sales. As noted previously, operating expense includes a negative impact of 4 basis points from reorganization charges.
- The tax rate for the 2011 fourth quarter was 32.6 percent, compared with 27.0 percent in the prior year quarter, reflecting a change in mix of profits among different tax jurisdictions. Furthermore, the prior year quarter's effective tax rate included an approximate 2 percentage point benefit from the release of commercial tax reserves in
Brazil , for which no income tax was applied. - Working capital days were 22, at the low end of the company's targeted range of 22 to 26 days.
- Return on invested capital was 17.3 percent for the quarter, significantly exceeding the company's weighted average cost of capital.
"We had an excellent finish to 2011, driven by solid performance worldwide," said
2011 Fiscal Year
For the year ended
Outlook
For the full year 2012, the company currently expects revenue growth in-line with current IT spending forecasts of low to mid-single digit growth over 2011. For the 2012 first quarter, revenues are currently expected to be flat to slightly down compared to the year earlier period due to expected year-over-year declines in EMEA revenues driven primarily by continued uncertainty surrounding the European economy and current expectations for a year-over-year decline in
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 (800) 678-3180 or (402) 220-3063 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) |
||||
December 31, |
January 1, |
|||
2011 |
2011 |
|||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 891,403 |
$ 1,155,551 |
||
Trade accounts receivable, net |
4,465,329 |
4,138,629 |
||
Inventory |
2,942,164 |
2,914,525 |
||
Other current assets |
319,506 |
381,383 |
||
Total current assets |
8,618,402 |
8,590,088 |
||
Property and equipment, net |
323,261 |
247,395 |
||
Intangible assets, net |
73,330 |
81,992 |
||
Other assets |
131,523 |
164,557 |
||
Total assets |
$ 9,146,516 |
$ 9,084,032 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities: |
||||
Accounts payable |
$ 4,893,437 |
$ 4,593,694 |
||
Accrued expenses |
524,010 |
536,218 |
||
Short-term debt and current maturities of long-term debt |
92,428 |
105,274 |
||
Total current liabilities |
5,509,875 |
5,235,186 |
||
Long-term debt, less current maturities |
300,000 |
531,127 |
||
Other liabilities |
63,864 |
76,537 |
||
Total liabilities |
5,873,739 |
5,842,850 |
||
Stockholders' equity |
3,272,777 |
3,241,182 |
||
Total liabilities and stockholders' equity |
$ 9,146,516 |
$ 9,084,032 |
||
Ingram Micro Inc. |
|||||
Consolidated Statement of Income |
|||||
(Amounts in 000s, except per share data) |
|||||
(Unaudited) |
|||||
Thirteen Weeks Ended |
|||||
December 31, 2011 |
January 1, 2011 |
||||
Net sales |
$ 9,952,944 |
$ 9,882,867 |
|||
Cost of sales |
9,398,686 |
9,323,016 |
(b) |
||
Gross profit |
554,258 |
559,851 |
|||
Operating expenses: |
|||||
Selling, general and administrative |
373,949 |
391,099 |
|||
Reorganization costs |
4,244 |
1,495 |
|||
378,193 |
(a) |
392,594 |
|||
Income from operations |
176,065 |
167,257 |
|||
Interest and other: |
|||||
Interest income |
(1,617) |
(1,411) |
|||
Interest expense |
11,948 |
14,244 |
|||
Net foreign currency exchange loss (gain) |
6,102 |
(7,000) |
|||
Other |
4,082 |
3,880 |
|||
20,515 |
9,713 |
||||
Income before income taxes |
155,550 |
157,544 |
|||
Provision for income taxes |
50,677 |
42,528 |
|||
Net income |
$ 104,873 |
$ 115,016 |
|||
Diluted earnings per share |
$ 0.68 |
$ 0.71 |
|||
Diluted weighted average |
|||||
shares outstanding |
153,399 |
161,560 |
|||
(a) The thirteen weeks ended December 31, 2011 includes reorganization costs of $4,244 (0.04% of consolidated net |
|||||
sales and $0.02 per diluted share) comprised of $517 in North America (0.01% of North America net sales), |
|||||
$1,722 in EMEA (0.05% of EMEA net sales), $1,806 in Asia-Pacific (0.09% of Asia-Pacific net sales), and |
|||||
$199 in Latin America (0.03% of Latin America net sales) primarily for employee termination benefits for workforce |
|||||
reductions. |
|||||
(b) The thirteen weeks ended January 1, 2011 includes a benefit of $9,112 (0.09% of consolidated net sales, 1.84% of |
|||||
Latin America net sales and $0.05 per diluted share) recorded in cost of sales related to the release of a portion |
|||||
of the reserve for Brazilian commercial taxes for which the statute of limitations has expired. We did not recognize |
|||||
an income tax impact related to this reversal consistent with the initial Brazilian commercial tax charge in 2007 for |
|||||
which we did not recognize an income tax benefit. |
|||||
Ingram Micro Inc. |
|||||
Consolidated Statement of Income |
|||||
(Amounts in 000s, except per share data) |
|||||
(Unaudited) |
|||||
Fifty-two Weeks Ended |
|||||
December 31, 2011 |
January 1, 2011 |
||||
Net sales |
$ 36,328,701 |
$ 34,588,984 |
|||
Cost of sales |
34,420,419 |
32,696,693 |
(f) |
||
Gross profit |
1,908,282 |
1,892,291 |
|||
Operating expenses: |
|||||
Selling, general and administrative |
1,444,505 |
1,406,721 |
|||
Reorganization costs |
5,131 |
1,137 |
|||
1,449,636 |
(c) |
1,407,858 |
|||
Income from operations |
458,646 |
484,433 |
|||
Interest and other: |
|||||
Interest income |
(5,673) |
(4,858) |
|||
Interest expense |
52,509 |
39,259 |
|||
Net foreign currency exchange loss (gain) |
4,789 |
(424) |
|||
Loss from settlement of interest rate swap |
|||||
and senior unsecured term loan |
5,624 |
(d) |
- |
||
Other |
13,526 |
12,395 |
|||
70,775 |
46,372 |
||||
Income before income taxes |
387,871 |
438,061 |
|||
Provision for income taxes |
143,631 |
(e) |
120,001 |
||
Net income |
$ 244,240 |
$ 318,060 |
|||
Diluted earnings per share |
$ 1.53 |
$ 1.94 |
|||
Diluted weighted average |
|||||
shares outstanding |
159,588 |
163,861 |
|||
(c) The fifty-two weeks ended December 31, 2011 includes reorganization costs of $5,131 (0.01% of consolidated net |
|||||
sales and $0.02 per diluted share) recorded primarily during the second half of the year, comprised of $749 in North America |
|||||
(less than 0.01% of North America net sales), $1,453 in EMEA (0.01% of EMEA net sales), $2,730 in Asia-Pacific |
|||||
(0.03% of Asia-Pacific net sales), and $199 in Latin America (0.01% of Latin America net sales) primarily for employee |
|||||
termination benefits for workforce reductions. |
|||||
(d) The fifty-two weeks ended December 31, 2011 includes a charge of $5,624 ($0.02 per diluted share) related to the |
|||||
termination of our interest rate swap associated with the repayment of our term loan in September 2011. |
|||||
(e) The fifty-two weeks ended December 31, 2011 includes an income tax charge of $24,810 ($0.16 per diluted share) |
|||||
related to a non-cash valuation allowance recorded against our deferred tax assets in Brazil. |
|||||
(f) The fifty-two weeks ended January 1, 2011 includes a benefit of $9,112 (0.03% of consolidated net sales, 0.57% of |
|||||
Latin America net sales and $0.05 per diluted share) recorded in cost of sales related to the release of a portion |
|||||
of the reserve for Brazilian commercial taxes for which the statute of limitations has expired. We did not recognize |
|||||
an income tax impact related to this reversal consistent with the initial Brazilian commercial tax charge in 2007 for |
|||||
which we did not recognize an income tax benefit. |
|||||
Ingram Micro Inc. |
||||||||
Supplementary Information |
||||||||
Income from Operations |
||||||||
(Amounts in 000s) |
||||||||
(Unaudited) |
||||||||
Thirteen Weeks Ended December 31, 2011 |
||||||||
Operating |
Operating |
|||||||
Net Sales |
Income |
Margin |
||||||
North America |
$ 4,213,965 |
$ 90,171 |
2.14% |
|||||
EMEA |
3,201,636 |
71,112 |
2.22% |
|||||
Asia-Pacific |
1,964,865 |
14,025 |
0.71% |
|||||
Latin America |
572,478 |
6,500 |
1.14% |
|||||
Stock-based compensation expense |
- |
(5,743) |
- |
|||||
Consolidated Total |
$ 9,952,944 |
$ 176,065 |
1.77% |
|||||
Thirteen Weeks Ended January 1, 2011 |
||||||||
Operating |
Operating |
|||||||
Net Sales |
Income |
Margin |
||||||
North America |
$ 4,050,031 |
$ 70,327 |
1.74% |
|||||
EMEA |
3,354,700 |
59,699 |
1.78% |
|||||
Asia-Pacific |
1,981,699 |
28,509 |
1.44% |
|||||
Latin America |
496,437 |
17,570 |
3.54% |
|||||
Stock-based compensation expense |
- |
(8,848) |
- |
|||||
Consolidated Total |
$ 9,882,867 |
$ 167,257 |
1.69% |
|||||
See notes (a) and (b) on the consolidated statement of income. |
||||||||
Ingram Micro Inc. |
||||||||
Supplementary Information |
||||||||
Income from Operations |
||||||||
(Amounts in 000s) |
||||||||
(Unaudited) |
||||||||
Fifty-two Weeks Ended December 31, 2011 |
||||||||
Operating |
Operating |
|||||||
Net Sales |
Income |
Margin |
||||||
North America |
$ 15,250,560 |
$ 281,155 |
1.84% |
|||||
EMEA |
11,371,043 |
136,306 |
1.20% |
|||||
Asia-Pacific |
7,920,649 |
46,508 |
0.59% |
|||||
Latin America |
1,786,449 |
25,488 |
1.43% |
|||||
Stock-based compensation expense |
- |
(30,811) |
- |
|||||
Consolidated Total |
$ 36,328,701 |
$ 458,646 |
1.26% |
|||||
Fifty-two Weeks Ended January 1, 2011 |
||||||||
Operating |
Operating |
|||||||
Net Sales |
Income |
Margin |
||||||
North America |
$ 14,549,103 |
$ 230,458 |
1.58% |
|||||
EMEA |
10,871,237 |
135,681 |
1.25% |
|||||
Asia-Pacific |
7,570,403 |
113,003 |
1.49% |
|||||
Latin America |
1,598,241 |
32,353 |
2.02% |
|||||
Stock-based compensation expense |
- |
(27,062) |
- |
|||||
Consolidated Total |
$ 34,588,984 |
$ 484,433 |
1.40% |
|||||
See notes (c) and (f) on the consolidated statement of income. |
||||||||
(Logo: http://photos.prnewswire.com/prnh/20100107/IMLOGO)
SOURCE
Investors, Ria Marie Carlson, +1-714-382-4400, ria.carlson@ingrammicro.com, or Damon Wright, +1-714-382-5013, damon.wright@ingrammicro.com; or Media, Lisa Zwick, +1-949-230-8794, lisa.zwick@ingrammicro.com, all of Ingram Micro Inc.