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Ingram Micro Inc. (IM) filed Quarterly Report for the period ended 2010-10-02.
Ingram Micro Inc. has a market cap of $2.83 billion; its shares were traded at around $18.06 with a P/E ratio of 9.6 and P/S ratio of 0.1. Ingram Micro Inc. had an annual average earning growth of 7.3% over the past 10 years.
This is the annual revenues and earnings per share of IM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of IM.
Highlight of Business Operations:
Our income from operations for the thirteen and thirty-nine weeks ended October 3, 2009 included net charges of $8,399 and $29,976, respectively, comprised of $7,120 and $18,591, respectively, of net charges in North America, $622 and $8,226, respectively, of net charges in EMEA, and $657 and $2,923, respectively, of charges in Asia Pacific related to our reorganization and expense-reduction programs. There were also charges totaling $236 for the thirty-nine weeks ended October 3, 2009 in Latin America related to these same programs. See Note 9 to our consolidated financial statements for further discussion of these programs and related net charges. In addition, the thirty-nine weeks ended October 3, 2009 include a goodwill impairment charge of $2,490 in Asia Pacific as discussed in Note 8 to our consolidated financial statements.
Our consolidated net sales increased 14.5% to $8,453,835 for the thirteen weeks ended October 2, 2010, or third quarter of 2010, from $7,384,574 for the thirteen weeks ended October 3, 2009, or third quarter of 2009. Net sales from our North American operations increased 13.3% to $3,648,297 in the third quarter of 2010 from $3,219,252 in the third quarter of 2009. Net sales from our EMEA operations increased 15.1% to $2,479,622 in the third quarter of 2010 from $2,154,260 in the third quarter of 2009. Net sales from our Asia Pacific operations increased 19.3% to $1,954,164 in the third quarter of 2010 from $1,638,252 in the third quarter of 2009. Net sales from our Latin American operations were relatively flat at $371,752 in the third quarter of 2010 compared to $372,810 in the third quarter of 2009. The significant year-over-year increase in our consolidated net sales, as well as our net sales in North America, EMEA and Asia Pacific regions, was primarily due to solid demand for technology products and services, as well as our continued efforts to enhance our share of the IT distribution market. The relatively flat year-over-year net sales in Latin America primarily reflects lower net sales in our Brazilian operation as we make infrastructure and process improvements for better growth opportunities in the future, and some relative weakness in components sales from our Miami export division. The translation impact of strengthening Asia Pacific and Latin American currencies relative to the U.S. dollar contributed approximately five and three percentage points of the year-over-year increase in the respective regions’ net sales, while the translation impact of relatively weaker European currencies had a negative effect on EMEA’s net sales of approximately 11 percentage points. The combined translation impacts of these foreign currencies had a negative effect of approximately two percentage points to our consolidated net sales. Our acquisitions of CCD and Albora contributed approximately two percentage points of growth in EMEA and the acquisition of Asiasoft contributed less than one percentage point of growth in Asia Pacific. These acquisitions combined to contribute approximately one percentage point of growth to consolidated net sales.
In the third quarter of 2009, we incurred reorganization costs of $7,004, or nine basis points of our consolidated net sales, associated with various actions we took as part of our cost reduction initiatives in each of our regions as follows: $5,883 or 18 basis points of regional net sales in North America, $622 or three basis points of regional net sales in EMEA and $499 or three basis points of regional net sales in Asia Pacific. In connection with these actions, we also incurred $1,395, or two basis points of consolidated net sales, ($1,237 or four basis points of regional net sales in North America, and $158 or one basis point of regional net sales in Asia Pacific) in program costs such as retention costs and consulting expenses, which are recorded in SG&A expenses. See Note 9 to our consolidated financial statements for further discussion of these programs and related charges.
Our consolidated net sales increased 19.3% to $24,706,117 for the thirty-nine weeks ended October 2, 2010, or first nine months of 2010, from $20,708,256 for the thirty-nine weeks ended October 3, 2009, or first nine months of 2009. Net sales from our North American operations increased 20.2% to $10,499,072 in the first nine months of 2010 from $8,735,872 in the first nine months of 2009. Net sales from our EMEA operations increased 16.9% to $7,516,537 in the first nine months of 2010 from $6,432,034 in the first nine months of 2009. Net sales from our Asia Pacific operations increased 23.5% to $5,588,704 in the first nine months of 2010 from $4,524,077 in the first nine months of 2009. Net sales from our Latin American operations increased 8.4% to $1,101,804 in the first nine months of 2010 from $1,016,273 in the first nine months of 2009. The translation impact of strengthening Asia Pacific and Latin American currencies relative to the U.S. dollar contributed approximately nine and seven percentage points of the year-over-year increase in the respective regions’ net sales, while the translation impact of relatively weaker European currencies had a negative effect on EMEA’s net sales of approximately two percentage points. The combined translation impacts of these foreign currencies had a positive effect of approximately two percentage points to our consolidated net sales. Beyond these currency impacts, the increases in our consolidated net sales, North American, EMEA and Asia Pacific net sales and the modest net sales growth in Latin America were primarily attributable to the same factors discussed above for the third quarter of 2010 compared to the third quarter of 2009. Our acquisitions of CCD and Albora contributed approximately two percentage points of growth in EMEA and the acquisition of VAD, Vantex and Asiasoft contributed approximately one percentage point of growth in Asia Pacific. These acquisitions combined to contribute approximately one percentage point of growth to our consolidated net sales.
Total SG&A expenses increased 2.6% to $1,015,622 in the first nine months of 2010 from $989,985 in the first nine months of 2009, but improved by 68 basis points, as a percentage of consolidated net sales, to 4.11% in the first nine months of 2010 from 4.79% in the first nine months of 2009. The year-over-year increase in SG&A dollars was mostly due to: incremental variable costs on the higher sales volume; additional expenses of $8,000 resulting from our acquisitions over the last year; and an increase in stock-based compensation expense of $3,429 associated with our long-term incentive plans; partially offset by savings from our expense-reduction initiatives implemented in 2008 and 2009; savings of approximately $9,000 from our exit of the broad line distribution business in EMEA’s Nordic region during the second quarter of 2009; and a benefit of $2,380 related to the gain on the sale of land and a building in EMEA in the first quarter of 2010. The translation impacts of foreign currencies contributed approximately $12,000 to the year-over-year increase in our SG&A expenses. The modest increase in SG&A dollars was considerably outpaced by growth in revenues, generating the 68 basis point year-over-year reduction in SG&A as a percentage of net sales.
In the first nine months of 2009, we incurred reorganization costs of $27,124, or 13 basis points of consolidated net sales, associated with various actions as part of our cost reduction initiatives in each of our regions as follows: $16,208 or 19 basis points of regional net sales in North America, $7,915 or 12 basis points of regional net sales in EMEA, $2,765 or six basis points of regional net sales in Asia Pacific, and $236 or two basis points of regional net sales in Latin America. In connection with these actions, we also incurred $2,852, or one basis point of consolidated net sales ($2,383, or three basis points of North America net sales, $311, or less than one basis point of EMEA net sales, and $158, or less than one basis point of Asia Pacific net sales) in program costs such as retention costs and consulting expenses, which are recorded in SG&A expenses. See Note 9 to our consolidated financial statements for further discussion of these programs and related charges.
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