Ingram Micro Reports Second Quarter Financial Results

August 31, 2018

IRVINE, Calif.--(BUSINESS WIRE)--Aug 31, 2018--Ingram Micro Inc. today announced financial results for the second quarter ended June 30, 2018. Ingram Micro experienced strong global demand, led by growth across all lines of business. Cash flow from operations for the 2018 second quarter was also strong, improving by more than $700 million when compared to the second quarter of 2017. The company generated $580 million in cash flow from operations in the 2018 second quarter, compared to cash usage from operations of $135 million in the year earlier period. Worldwide 2018 second quarter sales were $11.80 billion, an increase of 9 percent in USD, with gross margin of 6.53 percent. This compares to sales of $10.83 billion and gross margin of 6.54 percent in the 2017 second quarter. The translation of foreign currencies versus last year had a positive impact of approximately 2.5 percentage points on worldwide sales. 2018 second quarter non-GAAP operating income was $161 million, or 1.36 percent of revenue, and non-GAAP net income was $94 million. This compares to 2017 second quarter non-GAAP operating income of $156 million, or 1.44 percent of revenue, and non-GAAP net income of $93 million. 2018 second quarter GAAP operating income and net income was $110 million, or 0.93 percent of revenue, and $67 million, respectively, including: the pre-tax negative impact of $30 million in restructuring, acquisition and transition costs primarily related to a global reorganization program executed during the first quarter of 2018, and the pre-tax negative impact of $23 million in amortization expense. This compares to 2017 second quarter GAAP operating income and net income of $91 million, or 0.84 percent of revenue, and $45 million, respectively.

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 2018 second quarter and the six months ended June 30, 2018. 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 a gain on the sale of affiliates. 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. 2018 second quarter non-GAAP net income excludes a non-cash tax benefit primarily related to the intercompany sale of certain intangible assets. 2017 year to date non-GAAP operating income further excludes merger costs and 2017 non-GAAP net income also excludes a non-cash tax benefit primarily related to the reversal of a valuation allowance against certain deferred tax assets in Australia. 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.

© 2018 Ingram Micro Inc. All rights reserved. Ingram Micro and the registered Ingram Micro logo are trademarks used under license by Ingram Micro Inc.

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