$INGM #ingrammicro--Ingram Micro Holding Corporation (NYSE: INGM): Consolidated Fiscal Third Quarter 2024 Results(1) Thirteen Weeks Ended September 28, 2024 Thirteen Weeks Ended Septe...
Autore: Business Wire
IRVINE, Calif.: $INGM #ingrammicro--Ingram Micro Holding Corporation (NYSE: INGM):
Consolidated Fiscal Third Quarter 2024 Results(1) | ||||||||||||||
Thirteen Weeks Ended September 28, 2024 | Thirteen Weeks Ended September 30, 2023 | |||||||||||||
($ in thousands, except per share data) | Amount | % of Net Sales |
| Amount | % of Net Sales | 2024 vs. 2023 | ||||||||
Net sales | $ | 11,762,628 |
|
| $ | 11,925,373 |
| $ | (162,745 | ) | ||||
Gross profit |
| 845,492 |
| 7.19 | % |
|
| 854,844 |
| 7.17 | % |
| (9,352 | ) |
Income from operations |
| 218,174 |
| 1.85 | % |
|
| 212,402 |
| 1.78 | % |
| 5,772 |
|
Net income |
| 76,969 |
| 0.65 | % |
|
| 86,783 |
| 0.73 | % |
| (9,814 | ) |
Adjusted Income from Operations |
| 253,949 |
| 2.16 | % |
|
| 265,481 |
| 2.23 | % |
| (11,532 | ) |
Adjusted EBITDA |
| 331,574 |
| 2.82 | % |
|
| 313,971 |
| 2.63 | % |
| 17,603 |
|
Non-GAAP Net Income |
| 159,162 |
| 1.35 | % |
|
| 148,611 |
| 1.25 | % |
| 10,551 |
|
EPS: |
|
|
|
|
|
| ||||||||
Basic | $ | 0.35 |
|
|
| $ | 0.39 |
|
|
| ||||
Diluted | $ | 0.35 |
|
|
| $ | 0.39 |
|
|
| ||||
Non-GAAP EPS: | ||||||||||||||
Basic | $ | 0.72 |
|
| $ | 0.67 |
| |||||||
Diluted | $ | 0.72 |
|
| $ | 0.67 |
| |||||||
Thirty-Nine Weeks Ended September 28, 2024 |
| Thirty-Nine Weeks Ended September 30, 2023 |
| |||||||||||
($ in thousands, except per share data) | Amount | % of Net Sales |
| Amount | % of Net Sales |
2024 vs. 2023 | ||||||||
Net sales | $ | 34,639,001 |
|
| $ | 35,020,863 |
| $ | (381,862 | ) | ||||
Gross profit |
| 2,508,860 |
| 7.24 | % |
|
| 2,568,477 |
| 7.33 | % |
| (59,617 | ) |
Income from operations |
| 569,423 |
| 1.64 | % |
|
| 613,412 |
| 1.75 | % |
| (43,989 | ) |
Net income |
| 181,106 |
| 0.52 | % |
|
| 216,188 |
| 0.62 | % |
| (35,082 | ) |
Adjusted Income from Operations |
| 694,424 |
| 2.00 | % |
|
| 730,730 |
| 2.09 | % |
| (36,306 | ) |
Adjusted EBITDA |
| 900,573 |
| 2.60 | % |
|
| 917,702 |
| 2.62 | % |
| (17,129 | ) |
Non-GAAP Net Income |
| 414,789 |
| 1.20 | % |
|
| 417,216 |
| 1.19 | % |
| (2,427 | ) |
EPS: |
|
|
|
|
|
| ||||||||
Basic | $ | 0.81 |
|
|
| $ | 0.97 |
|
|
| ||||
Diluted | $ | 0.81 |
|
|
| $ | 0.97 |
|
|
| ||||
Non-GAAP EPS: | ||||||||||||||
Basic | $ | 1.87 |
|
| $ | 1.88 |
| |||||||
Diluted | $ | 1.87 |
| $ | 1.88 |
| ||||||||
Ingram Micro Holding Corporation (NYSE: INGM) (“Ingram Micro” or the “Company”) today reported fiscal third quarter results for the period ended September 28, 2024. The Company reported third-quarter net sales of $11.8 billion, net income on a GAAP basis of $77.0 million or $0.35 per share, and non-GAAP net income of $159.2 million or $0.72 per share.(1)
“We are grateful to our associates, partners, and customers who supported our return to the public markets in October, building upon our 45-year legacy of powering the world’s leading technology brands,” said Paul Bay, Ingram Micro’s Chief Executive Officer. “As a public company, we expect to continue delivering measurable business outcomes to our customers while we expand our technical reach and scope, bolstered by our revolutionary Xvantage platform. We are eager to continue redefining the value of distribution with our increased visibility in the public markets.”
“The third quarter results reflect the success of our focus while we were private, including our increased geographic reach, expanded product and service offerings, and shift towards Advanced Solutions and Cloud offering products,” said Mike Zilis, Ingram Micro’s Chief Financial Officer. “Going forward, we are focused on the quality of our net sales as we continue our track record of profitable growth and investment in our highly differentiated Xvantage platform.”
Consolidated Fiscal Third Quarter 2024 Financial Highlights
Regional Fiscal Third Quarter 2024 Financial Highlights
North America
Net sales were $4.3 billion, compared to $4.6 billion in the prior fiscal third quarter. The year-over-year decrease in North American net sales was primarily driven by a decline in net sales of client and endpoint solutions, particularly smartphones, application software, and components in the United States.
Income from operations was $83.3 million, compared to $79.2 million in the prior fiscal third quarter.
Income from operations margin was 1.95%, compared to 1.74% in the prior fiscal third quarter. The year-over-year increase in income from operations margin was primarily due to a shift in sales mix towards our higher-margin cloud-based solutions and Other services, as well as continued optimization of our operating expenses, including restructuring actions taken in 2023 and early 2024.
EMEA
Net sales were $3.5 billion, a decrease of 0.1% compared to the prior fiscal third quarter. The slight year-over-year decrease in EMEA net sales was primarily a result of a decrease in our Reverse Logistics and Repair business, partially offset by modest growth in other categories.
Income from operations was $66.9 million, compared to $72.2 million in the prior fiscal third quarter.
Income from operations margin was 1.93%, compared to 2.08% in the prior fiscal third quarter. The year-over-year decrease in income from operations margin was primarily due to an increase in SG&A expenses as a percentage of net sales in the region driven by inflationary and other factors.
Asia-Pacific
Net sales were $3.2 billion, compared to $2.9 billion in the prior fiscal third quarter. The increase in Asia-Pacific net sales was driven by net sales of client and endpoint solutions, led by growth in mobility distribution, particularly smartphones and consumer electronics.
Income from operations was $58.2 million, compared to $55.9 million in the prior fiscal third quarter.
Income from operations margin was 1.84%, compared to 1.93% in the prior fiscal third quarter. The year-over-year decrease in income from operations margin was primarily the result of a mix towards lower-margin client and endpoint solutions offset partially by improved operating expense leverage.
Latin America
Net sales were $0.9 billion, compared to $1.0 billion in the prior fiscal third quarter. The decrease in Latin American net sales was primarily driven by a decrease in net sales of client and endpoint solutions, attributed primarily to declines in mobility distribution, notebooks and consumer electronics.
Income from operations was $27.7 million, compared to $20.0 million in the prior fiscal third quarter.
Income from operations margin was 3.25%, compared to 2.00% in the prior fiscal third quarter. The year-over-year increase in income from operations margin was a result of the region's mix shift toward net sales of higher-margin cloud-based solutions.
Fiscal Fourth Quarter 2024 Outlook
The following outlook is forward-looking, based on the Company’s current expectations for the fiscal fourth quarter 2024, and actual results may differ materially from what is indicated. We provide EPS guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control.(1)
Thirteen Weeks Ended December 28, 2024 | ||||||
($ in millions, except per share data) | Low | High | ||||
Net sales | $ | 13,000 | $ | 13,500 | ||
Gross profit |
| 935 |
|
| 985 |
|
Non-GAAP Diluted EPS | $ | 0.85 |
| $ | 0.98 |
|
Our fiscal fourth quarter 2024 guidance assumes an effective tax rate of approximately 43% on a GAAP basis and 34% on a non-GAAP basis, and 231.8 million diluted shares outstanding. The non-GAAP tax rate is inflated by approximately three percentage points as a result of certain one-time compensation impacts with limited deductibility under Section 162(m), as well as our expected level and mix of profits during the quarter. This tax rate impact will decrease non-GAAP diluted EPS by approximately $0.04 for the quarter.
Fiscal Third Quarter 2024 Earnings Call Details:
Ingram Micro’s management will host a call to discuss its results on Tuesday, November 12, 2024 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time).
A live webcast of the conference call will be accessible from the Ingram Micro investor relations website at https://ir.ingrammicro.com. The call can also be accessed domestically at 877-407-9781 and internationally at 201-689-8796.
A telephonic replay will be available through Tuesday, November 26, 2024 at 877-660-6853 or 201-612-7415, access code 13749774. A replay of the webcast will also be available at https://ir.ingrammicro.com.
About Ingram Micro
Ingram Micro (NYSE: INGM) is a leading technology company for the global information technology ecosystem. With the ability to reach nearly 90% of the global population, we play a vital role in the worldwide IT sales channel, bringing products and services from technology manufacturers and cloud providers to business-to-business technology experts. Through Ingram Micro Xvantage™, our AI-powered digital platform, we deliver a singular business-to-consumer-like experience. We also provide a broad range of technology services, including financing, specialized marketing, and lifecycle management, as well as technical pre- and post-sales professional support. For more information, please visit www.ingrammicro.com.
(1) Use of Non-GAAP Financial Measures
In addition to presenting financial results that have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), we have included in this release some or all of the following non-GAAP financial measures—adjusted income from operations, EBITDA, adjusted EBITDA, return on invested capital (“ROIC”), adjusted ROIC, non-GAAP net income, adjusted free cash flow, and non-GAAP EPS—which are financial measures that are not required by, or presented in accordance with GAAP. We believe that these non-GAAP financial measures are useful in evaluating our business and the underlying trends that are affecting our performance. These non-GAAP measures are primary indicators that our management uses internally to conduct and measure its business and evaluate the performance of its consolidated operations, ongoing results, and trends. Our management believes these non-GAAP financial measures are useful as they provide meaningful comparisons to prior periods and an alternate view of the impact of acquired businesses. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business. A material limitation associated with these non-GAAP measures as compared to the GAAP measures is that they may not be comparable to other companies with similarly titled items that present related measures differently. The non-GAAP measures should be considered as a supplement to, and not as a substitute for or superior to, the corresponding measures calculated in accordance with GAAP. See the “Supplemental Information” section further below for reconciliations of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP.
Safe Harbor Statement
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements are included throughout this release and relate to matters such as our industry, growth strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
There are a number of risks, uncertainties, and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this release. Such risks, uncertainties, and other important factors include, among others, the risks, uncertainties, and factors included within the filings we make with the SEC from time to time and the following: general economic conditions; our estimates of the size of the markets for our products and services; our ability to identify and integrate acquisitions and technologies into our platform; our plans to continue to expand; the provision of transition services to the buyer in the sale of a substantial portion of our Commerce & Lifecycle Services business and our ability to adjust our cost base as those transition service agreements expire; our ability to continue to successfully develop and deploy Ingram Micro Xvantage™; the effect of the COVID-19 pandemic on our business; our ability to retain and recruit key personnel; the competition our products and services face and our ability to adapt to industry changes, including supply constraints for many categories of technology; current and potential litigation involving us; the global nature of our business, including the various laws and regulations applicable to us; the effect of various political, geopolitical, and economic issues and our ability to comply with laws and regulations we are subject to, both in the United States and internationally; various environmental, social, and governance initiatives; our financing efforts; our relationships with our customers, OEMs, and suppliers; our ability to maintain and protect our intellectual property; the performance and security of our services, including information processing and cybersecurity provided by third parties; our ownership structure; our dependence upon Ingram Micro Inc. and its controlled subsidiaries for our results of op