Press release

Ingram Micro Reports 2020 Fiscal Year Financial Results

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Ingram Micro Inc. today announced financial results for the 2020 fiscal year ended Jan. 2, 2021. Led by growth in Cloud, e-commerce services and work- and learn-from-home technology solutions, Ingram Micro delivered robust sales and record profits for the year. The company was able to adapt quickly to support global business and consumer shifts in demand created by the global pandemic, helping keep the global supply chain functioning.

Worldwide 2020 fiscal year net sales were $49.1 billion, an increase of nearly $2 billion, or 4 percent in USD. The translation of foreign currencies compared to 2019 had a de minimis negative impact on 2020 fiscal year net sales. 2020 fiscal year gross profit increased by more than $260 million to $3.6 billion, with gross margin growing by 26 basis points to 7.35 percent. This compares to net sales of $47.2 billion, gross profit of $3.3 billion and gross margin of 7.09 percent for the 2019 fiscal year. 2020 fiscal year non-GAAP operating income increased by more than $160 million to $979 million, or 1.99 percent of net sales, a 26 basis-point increase over last year, with non-GAAP net income for the 2020 fiscal year up nearly $150 million to $676 million. This compares to 2019 fiscal year non-GAAP operating income of $816 million, or 1.73 percent of net sales, and non-GAAP net income of $529 million. 2020 fiscal year GAAP operating income was $896 million, or 1.82 percent of net sales, (with the primary GAAP to non-GAAP difference made up of pre-tax amortization expense of $63 million), and GAAP net income was $644 million. This compares to 2019 fiscal year GAAP operating income and net income of $700 million, or 1.48 percent of net sales, and $505 million, respectively.

The company also said Platinum Equity’s acquisition of Ingram Micro from HNA Technology Co., Ltd. remains on-track to close at the end of the 2021 second quarter.

Non-GAAP Disclosures

In addition to GAAP results, Ingram Micro is reporting non-GAAP operating income, non-GAAP operating margin and non-GAAP net income for the two years covered in this release. These non-GAAP measures exclude charges associated with reorganization, acquisitions, integration and transition costs, including those associated with the company’s cost savings programs, and the amortization of intangible assets. These non-GAAP financial measures also exclude tax benefits related to research and development credit, foreign tax credit utilization, net uncertain tax position release and others. Non-GAAP net income also excludes the impact of foreign exchange gains or losses related to the translation effect on Euro-based inventory purchases in Ingram Micro’s pan-European entity. 2019 fiscal year non-GAAP operating and net income also excludes the benefit from the receipt of an LCD flat panel class action settlement, as well as tax benefit related to a worthless stock deduction. The non-GAAP measures noted above are primary indicators that Ingram Micro’s management uses internally to conduct and measure its business and evaluate the performance of its consolidated operations and operating segments. Ingram Micro’s management believes these non-GAAP financial measures are useful because they provide meaningful comparisons to prior periods and an alternate view of the impact of acquired businesses. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. 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 Ingram Micro’s 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. A reconciliation of GAAP to non-GAAP financial measures for the periods presented is attached to this press release.

About Ingram Micro Inc.

Ingram Micro helps businesses realize the promise of technology™. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables its business partners to operate efficiently and successfully in the markets they serve. More at www.ingrammicro.com.

© 2021 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 Sheets

(Amounts in 000s)

(Unaudited)

 

 

 

 

 

 

 

 

 

January 2,

 

December 28,

 

2021

 

2019

 
ASSETS
Current assets:
Cash and cash equivalents

$ 1,410,468

$ 671,821

Trade accounts receivable, net

8,478,281

7,903,900

Inventory

4,645,902

4,193,232

Other current assets

607,999

688,627

 
Total current assets

15,142,650

13,457,580

 
Property and equipment, net

459,308

455,440

Goodwill

975,375

946,953

Intangible assets, net

210,206

253,179

Other assets

397,374

360,296

 
Total assets

$ 17,184,913

$ 15,473,448

 
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Accounts payable

$ 9,687,427

$ 8,088,974

Accrued expenses

1,272,145

1,065,307

Short-term debt and current maturities of long-term debt

79,032

142,437

 
Total current liabilities

11,038,604

9,296,718

 
Long-term debt, less current maturities

931,579

1,337,788

Other liabilities

193,970

169,289

 
Total liabilities

12,164,153

10,803,795

 
Stockholder’s equity

5,020,760

4,669,653

 
Total liabilities and stockholder’s equity

$ 17,184,913

$ 15,473,448

Ingram Micro Inc.
Consolidated Statements of Income
(Amounts in 000s)
(Unaudited)
 
 
Fourteen Weeks Ended Thirteen Weeks Ended
January 2, 2021 December 28, 2019
 
Net sales

$ 15,563,306

 

$ 12,213,912

 

Cost of sales

14,453,133

 

11,248,182

 

Gross profit

1,110,173

 

965,730

 

 
Operating expenses:
Selling, general and administrative

792,536

 

691,366

 

Amortization of intangible assets

15,745

 

16,577

 

808,281

 

707,943

 

 
Income from operations

301,892

 

257,787

 

 
Other (income) expense:
Interest income

(7,426

)

(5,190

)

Interest expense

19,667

 

26,998

 

Net foreign currency exchange loss (gain)

175

 

(1,900

)

Other

(6,191

)

4,581

 

6,225

 

24,489

 

 
Income before income taxes

295,667

 

233,298

 

 
Provision for income taxes

69,615

 

3,144

 

 
Net income

$ 226,052

 

$ 230,154

 

Ingram Micro Inc.
Consolidated Statements of Income
(Amounts in 000s)
(Unaudited)
 
 
Fifty-three Weeks Ended Fifty-two Weeks Ended
January 2, 2021 December 28, 2019
 
Net sales

$ 49,120,453

 

$ 47,196,948

 

Cost of sales

45,510,256

 

43,850,676

 

Gross profit

3,610,197

 

3,346,272

 

 
Operating expenses:
Selling, general and administrative

2,650,999

 

2,573,609

 

Amortization of intangible assets

62,807

 

72,860

 

2,713,806

 

2,646,469

 

 
Income from operations

896,391

 

699,803

 

 
Other (income) expense:
Interest income

(22,773

)

(11,946

)

Interest expense

86,693

 

107,487

 

Net foreign currency exchange gain

(9,001

)

(24,257

)

Other

(2,263

)

21,160

 

52,656

 

92,444

 

 
Income before income taxes

843,735

 

607,359

 

 
Provision for income taxes

199,516

 

102,220

 

 
Net income

$ 644,219

 

$ 505,139

 

Ingram Micro Inc.
Consolidated Statements of Cash Flows
(Amounts in 000s)
(Unaudited)
 
 
Fifty-three Weeks Ended Fifty-two Weeks Ended
January 2, 2021 December 28, 2019
 
Cash flows from operating activities:
Net income

$ 644,219

 

$ 505,139

 

Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization

194,541

 

194,731

 

Gain on marketable securities, net

(7,215

)

(11,734

)

Gain on sale of property and equipment

(1,700

)

(788

)

Revaluation of other consideration for acquisitions

1,329

 

(2,775

)

Noncash charges for interest and bond discount amortization

2,668

 

2,123

 

Deferred income taxes

7,841

 

(14,459

)

Changes in operating assets and liabilities, net of effects of acquisitions:
Trade accounts receivable

(407,592

)

56,629

 

Inventory

(376,193

)

225,398

 

Other assets

40,055

 

(40,248

)

Accounts payable

1,299,991

 

(398,086

)

Change in book overdrafts

38,286

 

(63,570

)

Accrued expenses

192,342

 

109,315

 

Cash provided by operating activities

1,628,572

 

561,675

 

 
Cash flows from investing activities:
Capital expenditures

(135,125

)

(168,782

)

Sale (purchase) of marketable securities, net

868

 

(2,250

)

Proceeds from sale of property and equipment

4,332

 

3,333

 

Acquisitions, net of cash acquired

(25,169

)

(5,701

)

Cash used by investing activities

(155,094

)

(173,400

)

 
Cash flows from financing activities:
Other consideration for acquisitions

(124

)

(2,582

)

Dividends paid to shareholders

(359,938

)

(248,665

)

Net repayments of revolving and other credit facilities

(477,413

)

(1,178

)

Cash used by financing activities

(837,475

)

(252,425

)

 
Effect of exchange rate changes on cash and cash equivalents

102,644

 

2,022

 

 
Increase in cash and cash equivalents

738,647

 

137,872

 

 
Cash and cash equivalents, beginning of year

671,821

 

533,949

 

 
Cash and cash equivalents, end of year

$ 1,410,468

 

$ 671,821

 

Ingram Micro Inc.
Supplementary Information
Income from Operations – Reconciliation of GAAP to Non-GAAP Information
(Amounts in Millions)
(Unaudited)
 
 
Fourteen Weeks Ended Thirteen Weeks Ended
January 2, 2021 December 28, 2019
 
Net Sales

$ 15,563.3

 

$ 12,213.9

 

 
GAAP Operating Income

$ 301.9

 

$ 257.8

 

Reorganization, integration and transition costs

15.2

 

18.0

 

Amortization of intangible assets

15.7

 

16.6

 

 
Non-GAAP Operating Income

$ 332.8

 

$ 292.4

 

 
 
 
GAAP Operating Margin

1.94

%

2.11

%

Non-GAAP Operating Margin

2.14

%

2.39

%

 
 
 
Fifty-three Weeks Ended Fifty-two Weeks Ended
January 2, 2021 December 28, 2019
 
Net Sales

$ 49,120.5

 

$ 47,196.9

 

 
GAAP Operating Income

$ 896.4

 

$ 699.8

 

Reorganization, integration and transition costs

19.8

 

47.5

 

Amortization of intangible assets

62.8

 

72.9

 

Settlement of a class action lawsuit

 

(4.2

)

 
Non-GAAP Operating Income

$ 979.0

 

$ 816.0

 

 
 
 
GAAP Operating Margin

1.82

%

1.48

%

Non-GAAP Operating Margin

1.99

%

1.73

%

Ingram Micro Inc.
Supplementary Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts in Millions)
(Unaudited)
 
 
Fourteen Weeks Ended Thirteen Weeks Ended
January 2, 2021 December 28, 2019
 
Net Income Net Income
 
As Reported Under GAAP

$ 226.1

 

$ 230.2

 

Reorganization, integration and transition costs

9.1

 

12.2

 

Amortization of intangible assets

9.5

 

11.3

 

Pan-Europe foreign currency exchange loss

1.2

 

3.5

 

Tax benefit on worthless stock deduction

 

(57.9

)

Tax benefit on foreign tax credit utilization, net uncertain tax position release and various other tax benefits

(6.1

)

 

 
Non-GAAP Financial Measure

$ 239.8

 

$ 199.3

 

 
 
 
Fifty-three Weeks Ended Fifty-two Weeks Ended
January 2, 2021 December 28, 2019
 
Net Income Net Income
 
As Reported Under GAAP

$ 644.2

 

$ 505.1

 

Reorganization, integration and transition costs

12.2

 

33.1

 

Amortization of intangible assets

40.7

 

51.0

 

Settlement of a class action lawsuit

 

(2.9

)

Pan-Europe foreign currency exchange (gain) loss

(0.9

)

0.8

 

Tax benefit on worthless stock deduction

 

(57.9

)

Tax benefit on research and development credit

(3.2

)

 

Tax benefit on foreign tax credit utilization, net uncertain tax position release and various other tax benefits

(17.3

)

 

 
Non-GAAP Financial Measure

$ 675.7

 

$ 529.2

 

 
 
 
Note: Amounts above are net of applicable income taxes.