10/31/2024 | Press release | Distributed by Public on 10/31/2024 06:05
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
2024 | 2023 | change | 2024 | 2023 | change | |||||
Insight Enterprises, Inc. | ||||||||||
Net sales: | ||||||||||
Products | $ | 1,673,779 | $ | 1,890,154 | (11%) | $ | 5,364,169 | $ | 5,803,408 | (8%) |
Services | $ | 414,107 | $ | 376,132 | 10% | $ | 1,264,864 | $ | 1,136,421 | 11% |
Total net sales | $ | 2,087,886 | $ | 2,266,286 | (8%) | $ | 6,629,033 | $ | 6,939,829 | (4%) |
Gross profit | $ | 432,085 | $ | 408,870 | 6% | $ | 1,326,378 | $ | 1,233,375 | 8% |
Gross margin | 20.7% | 18.0% | 270 bps | 20.0% | 17.8% | 220 bps | ||||
Selling and administrative expenses | $ | 329,996 | $ | 309,793 | 7% | $ | 984,664 | $ | 938,037 | 5% |
Severance and restructuring expenses, net | $ | 8,543 | $ | 2,923 | > 100% | $ | 15,638 | $ | 2,955 | > 100% |
Acquisition and integration related expenses | $ | 695 | $ | 4,292 | (84%) | $ | 2,166 | $ | 4,449 | (51%) |
Earnings from operations | $ | 92,851 | $ | 91,862 | 1% | $ | 323,910 | $ | 287,934 | 12% |
Net earnings | $ | 58,208 | $ | 60,247 | (3%) | $ | 212,679 | $ | 190,701 | 12% |
Diluted earnings per share | $ | 1.52 | $ | 1.62 | (6%) | $ | 5.53 | $ | 5.13 | 8% |
Sales Mix | ** | ** | ||||||||
Hardware | 54 | % | 57 | % | (13%) | 52 | % | 57 | % | (13%) |
Software | 26 | % | 26 | % | (9%) | 29 | % | 27 | % | 3% |
Services | 20 | % | 17 | % | 10% | 19 | % | 16 | % | 11% |
100 | % | 100 | % | (8%) | 100 | % | 100 | % | (4%) | |
North America | ||||||||||
Net sales: | ||||||||||
Products | $ | 1,391,176 | $ | 1,562,861 | (11%) | $ | 4,380,214 | $ | 4,695,751 | (7%) |
Services | $ | 325,407 | $ | 298,011 | 9% | $ | 973,548 | $ | 896,251 | 9% |
Total net sales | $ | 1,716,583 | $ | 1,860,872 | (8%) | $ | 5,353,762 | $ | 5,592,002 | (4%) |
Gross profit | $ | 348,057 | $ | 333,857 | 4% | $ | 1,052,007 | $ | 992,143 | 6% |
Gross margin | 20.3% | 17.9% | 240 bps | 19.6% | 17.7% | 190 bps | ||||
Selling and administrative expenses | $ | 259,954 | $ | 244,154 | 6% | $ | 771,066 | $ | 745,259 | 3% |
Severance and restructuring expenses, net | $ | 7,242 | $ | 2,650 | > 100% | $ | 12,783 | $ | 1,052 | > 100% |
Acquisition and integration related expenses | $ | 25 | $ | 970 | (97%) | $ | 1,486 | $ | 1,127 | 32% |
Earnings from operations | $ | 80,836 | $ | 86,083 | (6%) | $ | 266,672 | $ | 244,705 | 9% |
Sales Mix | ** | ** | ||||||||
Hardware | 58 | % | 62 | % | (13%) | 57 | % | 62 | % | (13%) |
Software | 23 | % | 22 | % | (5%) | 25 | % | 22 | % | 11% |
Services | 19 | % | 16 | % | 9% | 18 | % | 16 | % | 9% |
100 | % | 100 | % | (8%) | 100 | % | 100 | % | (4%) | |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
2024 | 2023 | change | 2024 | 2023 | change | |||||
EMEA | ||||||||||
Net sales: | ||||||||||
Products | $ | 249,642 | $ | 300,485 | (17%) | $ | 881,464 | $ | 1,006,216 | (12%) |
Services | $ | 62,964 | $ | 53,911 | 17% | $ | 212,856 | $ | 166,910 | 28% |
Total net sales | $ | 312,606 | $ | 354,396 | (12%) | $ | 1,094,320 | $ | 1,173,126 | (7%) |
Gross profit | $ | 66,381 | $ | 59,709 | 11% | $ | 220,556 | $ | 192,644 | 14% |
Gross margin | 21.2% | 16.8% | 440 bps | 20.2% | 16.4% | 380 bps | ||||
Selling and administrative expenses | $ | 57,808 | $ | 54,435 | 6% | $ | 178,377 | $ | 159,253 | 12% |
Severance and restructuring expenses | $ | 1,240 | $ | 271 | > 100% | $ | 2,639 | $ | 1,840 | 43% |
Acquisition and integration related expenses | $ | 668 | $ | 3,322 | (80%) | $ | 678 | $ | 3,322 | (80%) |
Earnings from operations | $ | 6,665 | $ | 1,681 | > 100% | $ | 38,862 | $ | 28,229 | 38% |
Sales Mix | ** | ** | ||||||||
Hardware | 40 | % | 39 | % | (8%) | 35 | % | 37 | % | (10%) |
Software | 40 | % | 46 | % | (24%) | 45 | % | 49 | % | (14%) |
Services | 20 | % | 15 | % | 17% | 20 | % | 14 | % | 28% |
100 | % | 100 | % | (12%) | 100 | % | 100 | % | (7%) | |
APAC | ||||||||||
Net sales: | ||||||||||
Products | $ | 32,961 | $ | 26,808 | 23% | $ | 102,491 | $ | 101,441 | 1% |
Services | $ | 25,736 | $ | 24,210 | 6% | $ | 78,460 | $ | 73,260 | 7% |
Total net sales | $ | 58,697 | $ | 51,018 | 15% | $ | 180,951 | $ | 174,701 | 4% |
Gross profit | $ | 17,647 | $ | 15,304 | 15% | $ | 53,815 | $ | 48,588 | 11% |
Gross margin | 30.1% | 30.0% | 10 bps | 29.7% | 27.8% | 190 bps | ||||
Selling and administrative expenses | $ | 12,234 | $ | 11,204 | 9% | $ | 35,221 | $ | 33,525 | 5% |
Severance and restructuring expenses | $ | 61 | $ | 2 | > 100% | $ | 216 | $ | 63 | > 100% |
Acquisition and integration related expenses | $ | 2 | $ | - | * | $ | 2 | $ | - | * |
Earnings from operations | $ | 5,350 | $ | 4,098 | 31% | $ | 18,376 | $ | 15,000 | 23% |
Sales Mix | ** | ** | ||||||||
Hardware | 18 | % | 21 | % | (3%) | 16 | % | 19 | % | (18)% |
Software | 38 | % | 31 | % | 41% | 41 | % | 39 | % | 11% |
Services | 44 | % | 48 | % | 6% | 43 | % | 42 | % | 7% |
100 | % | 100 | % | 15% | 100 | % | 100 | % | 4% |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
CONTACT: | GLYNIS BRYAN |
CHIEF FINANCIAL OFFICER | |
TEL. 480.333.3390 | |
EMAIL [email protected]
|
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Net sales: | ||||||||
Products | $ | 1,673,779 | $ | 1,890,154 | $ | 5,364,169 | $ | 5,803,408 |
Services | 414,107 | 376,132 | 1,264,864 | 1,136,421 | ||||
Total net sales | 2,087,886 | 2,266,286 | 6,629,033 | 6,939,829 | ||||
Costs of goods sold: | ||||||||
Products | 1,486,271 | 1,697,543 | 4,794,125 | 5,219,720 | ||||
Services | 169,530 | 159,873 | 508,530 | 486,734 | ||||
Total costs of goods sold | 1,655,801 | 1,857,416 | 5,302,655 | 5,706,454 | ||||
Gross profit | 432,085 | 408,870 | 1,326,378 | 1,233,375 | ||||
Operating expenses: | ||||||||
Selling and administrative expenses | 329,996 | 309,793 | 984,664 | 938,037 | ||||
Severance and restructuring expenses, net | 8,543 | 2,923 | 15,638 | 2,955 | ||||
Acquisition and integration related expenses | 695 | 4,292 | 2,166 | 4,449 | ||||
Earnings from operations | 92,851 | 91,862 | 323,910 | 287,934 | ||||
Non-operating expense (income): | ||||||||
Interest expense, net | 16,629 | 12,013 | 43,376 | 31,766 | ||||
Other expense (income), net
|
1,104 | (203) | (128) | 489 | ||||
Earnings before income taxes | 75,118 | 80,052 | 280,662 | 255,679 | ||||
Income tax expense | 16,910 | 19,805 | 67,983 | 64,978 | ||||
Net earnings | $ | 58,208 | $ | 60,247 | $ | 212,679 | $ | 190,701 |
Net earnings per share: | ||||||||
Basic | $ | 1.81 | $ | 1.85 | $ | 6.55 | $ | 5.76 |
Diluted | $ | 1.52 | $ | 1.62 | $ | 5.53 | $ | 5.13 |
Shares used in per share calculations: | ||||||||
Basic | 32,216 | 32,574 | 32,459 | 33,127 | ||||
Diluted | 38,331 | 37,203 | 38,445 | 37,149 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
September 30, 2024 |
December 31, 2023 |
|||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 317,449 | $ | 268,730 |
Accounts receivable, net | 3,897,481 | 3,568,290 | ||
Inventories | 151,013 | 184,605 | ||
Contract assets, net | 85,767 | 120,518 | ||
Other current assets | 208,798 | 189,158 | ||
Total current assets | 4,660,508 | 4,331,301 | ||
Long-term contract assets, net | 105,273 | 132,780 | ||
Property and equipment, net | 214,878 | 210,061 | ||
Goodwill | 888,808 | 684,345 | ||
Intangible assets, net | 448,680 | 369,687 | ||
Long-term accounts receivable | 828,465 | 412,666 | ||
Other assets | 139,831 | 145,510 | ||
$ | 7,286,443 | $ | 6,286,350 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable - trade | $ | 2,683,323 | $ | 2,255,183 |
Accounts payable - inventory financing facilities | 235,192 | 231,850 | ||
Accrued expenses and other current liabilities | 493,175 | 538,346 | ||
Current portion of long-term debt | 332,439 | 348,004 | ||
Total current liabilities | 3,744,129 | 3,373,383 | ||
Long-term debt | 754,377 | 592,517 | ||
Deferred income taxes | 72,849 | 27,588 | ||
Long-term accounts payable | 788,078 | 353,794 | ||
Other liabilities | 160,710 | 203,335 | ||
5,520,143 | 4,550,617 | |||
Stockholders' equity: | ||||
Preferred stock | - | - | ||
Common stock | 318 | 326 | ||
Additional paid-in capital | 334,337 | 328,607 | ||
Retained earnings | 1,471,546 | 1,448,412 | ||
Accumulated other comprehensive loss - foreign currency translation adjustments
|
(39,901) | (41,612) | ||
Total stockholders' equity | 1,766,300 | 1,735,733 | ||
$ | 7,286,443 | $ | 6,286,350 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Nine Months Ended September 30, |
||||
2024 | 2023 | |||
Cash flows from operating activities: | ||||
Net earnings | $ | 212,679 | $ | 190,701 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 72,357 | 44,698 | ||
Provision for losses on accounts receivable | 7,440 | 3,754 | ||
Provision for losses on contract assets | 2,474 | - | ||
Non-cash stock-based compensation | 26,216 | 26,211 | ||
Gain on revaluation of earnout liabilities | (30,648) | - | ||
Deferred income taxes | 16,342 | (9,062) | ||
Amortization of debt issuance costs | 4,090 | 3,649 | ||
Other adjustments | (3,155) | (1,356) | ||
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable | (291,692) | 201,628 | ||
Decrease in inventories | 28,407 | 75,124 | ||
Decrease (increase) in contract assets | 49,798 | (1,810) | ||
Increase in long-term accounts receivable | (434,966) | (73,451) | ||
Decrease in other assets | 13,626 | 5,392 | ||
Increase (decrease) in accounts payable | 374,166 | (57,882) | ||
Increase in long-term accounts payable | 428,081 | 52,479 | ||
Decrease in accrued expenses and other liabilities | (57,484) | (46,333) | ||
Net cash provided by operating activities: | 417,731 | 413,742 | ||
Cash flows from investing activities: | ||||
Proceeds from sale of assets | 13,751 | 15,515 | ||
Purchases of property and equipment | (32,371) | (29,070) | ||
Acquisitions, net of cash and cash equivalents acquired | (270,248) | (82,875) | ||
Net cash used in investing activities: | (288,868) | (96,430) | ||
Cash flows from financing activities: | ||||
Borrowings on ABL revolving credit facility | 3,631,660 | 3,416,737 | ||
Repayments on ABL revolving credit facility | (3,964,940) | (3,382,444) | ||
Net borrowings (repayments) under inventory financing facilities | 3,102 | (32,451) | ||
Proceeds from issuance of senior unsecured notes | 500,000 | - | ||
Payment of debt issuance costs | (8,647) | - | ||
Repurchases of common stock | (200,020) | (217,108) | ||
Repayment of principal on the Convertible Notes | (16,895) | - | ||
Earnout and acquisition related payments | (18,297) | (10,748) | ||
Other payments | (8,486) | (9,614) | ||
Net cash used in financing activities: | (82,523) | (235,628) | ||
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances | 2,660 | (1,074) | ||
Increase in cash, cash equivalents and restricted cash | 49,000 | 80,610 | ||
Cash, cash equivalents and restricted cash at beginning of period | 270,785 | 165,718 | ||
Cash, cash equivalents and restricted cash at end of period | $ | 319,785 | $ | 246,328 |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Adjusted Consolidated Earnings from Operations: | ||||||||
GAAP consolidated EFO | $ | 92,851 | $ | 91,862 | $ | 323,910 | $ | 287,934 |
Amortization of intangible assets | 18,702 | 8,648 | 50,984 | 25,243 | ||||
Gain on revaluation of earnout liabilities | (6,442) | - | (30,649) | - | ||||
Other* | 15,006 | 19,280 | 28,714 | 30,278 | ||||
Adjusted non-GAAP consolidated EFO | $ | 120,117 | $ | 119,790 | $ | 372,959 | $ | 343,455 |
GAAP EFO as a percentage of net sales | 4.4% | 4.1% | 4.9% | 4.1% | ||||
Adjusted non-GAAP EFO as a percentage of net sales | 5.8% | 5.3% | 5.6% | 4.9% | ||||
Adjusted Consolidated Net Earnings: | ||||||||
GAAP consolidated net earnings | $ | 58,208 | $ | 60,247 | $ | 212,679 | $ | 190,701 |
Amortization of intangible assets | 18,702 | 8,648 | 50,984 | 25,243 | ||||
Gain on revaluation of earnout liabilities | (6,442) | - | (30,649) | - | - | |||
Other* | 15,006 | 19,280 | 28,714 | 30,278 | ||||
Income taxes on non-GAAP adjustments | (8,505) | (6,496) | (14,678) | (13,729) | ||||
Adjusted non-GAAP consolidated net earnings | $ | 76,969 | $ | 81,679 | $ | 247,050 | $ | 232,493 |
GAAP net earnings as a percentage of net sales | 2.8% | 2.7% | 3.2% | 2.7% | ||||
Adjusted non-GAAP net earnings as a percentage of net sales | 3.7% | 3.6% | 3.7% | 3.4% | ||||
Adjusted Diluted Earnings Per Share: | ||||||||
GAAP diluted EPS | $ | 1.52 | $ | 1.62 | $ | 5.53 | $ | 5.13 |
Amortization of intangible assets | 0.49 | 0.23 | 1.33 | 0.68 | ||||
Gain on revaluation of earnout liabilities | (0.17) | - | (0.80) | - | ||||
Other | 0.39 | 0.52 | 0.75 | 0.82 | ||||
Income taxes on non-GAAP adjustments | (0.22) | (0.17) | (0.38) | (0.37) | ||||
Impact of benefit from note hedge | 0.18 | 0.17 | 0.59 | 0.46 | ||||
Adjusted non-GAAP diluted EPS | $ | 2.19 | $ | 2.37 | $ | 7.02 | $ | 6.72 |
Shares used in diluted EPS calculation | 38,331 | 37,203 | 38,445 | 37,149 | ||||
Impact of benefit from note hedge
|
(3,258) | (2,774) | (3,269) | (2,533) | ||||
Shares used in Adjusted non-GAAP diluted EPS calculation | 35,073 | 34,429 | 35,176 | 34,616 | ||||
Adjusted North America Earnings from Operations: | ||||||||
GAAP EFO from North America segment | $ | 80,836 | $ | 86,083 | $ | 266,672 | $ | 244,705 |
Amortization of intangible assets | 16,823 | 7,718 | 45,557 | 23,269 | ||||
Gain on revaluation of earnout liabilities | (4,000) | - | (24,219) | - | ||||
Other* | 12,891 | 15,547 | 24,753 | 24,641 | ||||
Adjusted non-GAAP EFO from North America segment | $ | 106,550 | $ | 109,348 | $ | 312,763 | $ | 292,615 |
GAAP EFO as a percentage of net sales | 4.7 | % | 4.6 | % | 5.0 | % | 4.4 | % |
Adjusted non-GAAP EFO as a percentage of net sales | 6.2 | % | 5.9 | % | 5.8 | % | 5.2 | % |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Adjusted EMEA Earnings from Operations: | ||||||||
GAAP EFO from EMEA segment | $ | 6,665 | $ | 1,681 | $ | 38,862 | $ | 28,229 |
Amortization of intangible assets | 1,805 | 822 | 5,135 | 1,642 | ||||
Gain on revaluation of earnout liabilities | (2,442) | - | (6,430) | - | ||||
Other | 2,052 | 3,731 | 3,743 | 5,574 | ||||
Adjusted non-GAAP EFO from EMEA segment | $ | 8,080 | $ | 6,234 | $ | 41,310 | $ | 35,445 |
GAAP EFO as a percentage of net sales | 2.1 | % | 0.5 | % | 3.6 | % | 2.4 | % |
Adjusted non-GAAP EFO as a percentage of net sales | 2.6 | % | 1.8 | % | 3.8 | % | 3.0 | % |
Adjusted APAC Earnings from Operations: | ||||||||
GAAP EFO from APAC segment | $ | 5,350 | $ | 4,098 | $ | 18,376 | $ | 15,000 |
Amortization of intangible assets | 74 | 108 | 292 | 332 | ||||
Other | 63 | 2 | 218 | 63 | ||||
Adjusted non-GAAP EFO from APAC segment | $ | 5,487 | $ | 4,208 | $ | 18,886 | $ | 15,395 |
GAAP EFO as a percentage of net sales | 9.1 | % | 8.0 | % | 10.2 | % | 8.6 | % |
Adjusted non-GAAP EFO as a percentage of net sales | 9.3 | % | 8.2 | % | 10.4 | % | 8.8 | % |
Adjusted EBITDA: | ||||||||
GAAP consolidated net earnings | $ | 58,208 | $ | 60,247 | $ | 212,679 | $ | 190,701 |
Interest expense | 19,184 | 13,874 | 51,312 | 36,618 | ||||
Income tax expense | 16,910 | 19,805 | 67,983 | 64,978 | ||||
Depreciation and amortization of property and equipment | 7,204 | 6,902 | 21,373 | 19,455 | ||||
Amortization of intangible assets | 18,702 | 8,648 | 50,984 | 25,243 | ||||
Gain on revaluation of earnout liabilities | (6,442) | - | (30,649) | - | ||||
Other* | 15,006 | 19,280 | 28,714 | 30,278 | ||||
Adjusted non-GAAP EBITDA | $ | 128,772 | $ | 128,756 | $ | 402,396 | $ | 367,273 |
GAAP consolidated net earnings as a percentage of net sales | 2.8% | 2.7% | 3.2% | 2.7% | ||||
Adjusted non-GAAP EBITDA as a percentage of net sales | 6.2% | 5.7% | 6.1% | 5.3% |
- MORE -
|
||||
Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 |
Twelve Months Ended
September 30,
|
||||
2024 | 2023 | |||
Adjusted return on invested capital: | ||||
GAAP consolidated EFO | $ | 455,771 | $ | 401,950 |
Amortization of intangible assets | 61,972 | 33,320 | ||
Gain on revaluation of earnout liabilities | (30,649) | - | ||
Other5
|
34,537 | 36,450 | ||
Adjusted non-GAAP consolidated EFO | 521,631 | 471,720 | ||
Income tax expense1
|
135,624 | 122,647 | ||
Adjusted non-GAAP consolidated EFO, net of tax | $ | 386,007 | $ | 349,073 |
Average stockholders' equity2
|
$ | 1,746,223 | $ | 1,605,492 |
Average debt2
|
915,391 | 659,161 | ||
Average cash2
|
(293,184) | (183,259) | ||
Invested Capital | $ | 2,368,430 | $ | 2,081,394 |
Adjusted non-GAAP ROIC (from GAAP consolidated EFO)3
|
14.24 | % | 14.29 | % |
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO)4
|
16.30 | % | 16.77 | % |