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INSIGHt ENTERPRISES, INC. 公司报告
第三季度财报。
亚利桑那州钱德勒– 2024年10月31日 – Insight Enterprises, Inc. (纳斯达克: NSIT)（以下简称“公司”）今天报告了截至2024年9月30日的季度财务业绩。重点包括：
•毛利润同比增长6%，达到43210万美元，毛利率扩大270个基点至20.7%
•Insight Core服务的毛利润同比增长14%
•云毛利润同比增长33%
•合并净利润年比下降3%，至5820万美元
•调整后的息税折旧及摊销前（EBITDA）年度同比维持在12880万美元不变
•每股摊薄收益为1.52美元，同比减少6%
•每股调整稀释盈利为2.19美元，同比下降8%
2024年第三季度，净销售额同比下降8％至21亿美元，而毛利润同比增长6％至43210万美元。毛利率扩大至27%，较上年同期增长270个基点。 相较于2023年第三季度的20.7％，运营利润为9290万美元，较2023年第三季度的9190万美元增长1％。调整后的运营利润为12010万美元，与2023年第三季度的11980万美元基本持平。2024年第三季度，综合净收入为5820万美元，占净销售额的2.8％，调整后的综合净收入为7700万美元，占净销售额的3.7％。当季每股摊薄收益为1.52美元，同比下降6％，而调整后的每股摊薄收益为2.19美元，同比下降8％。
“我们对业务的长期健康持乐观态度；然而，第三季度未达到我们的预期，我们预计信息技术支出环境在短期内仍将保持谨慎，”总裁兼首席执行官乔伊斯·默伦表示。“我们继续执行我们的解决方案集成策略，通过收购推动强劲的云增长和稳固的Insight核心服务业绩，”默伦表示。
由于在建筑和矿业行业中的多用途使用，中型挖掘机领域在2023年占据了巴西履带挖掘机市场的最大份额。政府在提升农村地区互联互通的基础设施升级和交通项目方面的投资预计将支持巴西市场对中型挖掘机的需求。
季度业绩：
•2024年第三季度合并净销售额为21亿美元，较2023年第三季度下降8%。产品净销售额同比下降11%，而服务净销售额同比增长10%。
•北美地区净销售额同比下降8%，达到17亿美元；
◦控制支出，同时继续在我们认为对长期成功至关重要的领域进行投资。产品净销售额同比下降11%，至14亿美元;
◦控制支出，同时继续在我们认为对长期成功至关重要的领域进行投资。服务净销售额同比增长9%，达到32540万美元；
•欧洲、中东、非洲地区的净销售额同比下降12%，至31260万美元；而
•亚太地区的净销售额同比增长15%，达5870万美元。
•除汇率波动因素外，综合净销售额同比下降8％，其中北美和欧洲、中东、非洲的净销售额同比分别下降8％和13％，而亚太地区的净销售额同比增长13％。
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, 亚利桑那州 85286 | 800.467.4448 | 传真 480.760.8958 | ||||||||||
•综合毛利润较2023年第三季度增长6%，至43210万美元，综合毛利率扩大 相比去年同期，产品毛利润下降了3％，服务毛利润增长了13％。云毛利润同比增长了33％，洞察核心服务毛利润同比增长了14％。按业务板块划分，毛利润：
•同比增长4%，达到34810万美元（毛利率20.3%）；
•在欧洲、中东、非洲地区，同比增长了11%，达到6640万美元（毛利率21.2%）；和
•亚太地区同比增长15%，达到1760万美元（毛利率30.1%）。
•在排除波动的外币汇率影响后，毛利润合并增长了5%，同比增长，其中北美、欧洲、中东、非洲和APAC的毛利润增长分别为4%、9%和13%，同比增长。
•与2023年第三季度相比，运营收入增长1%，达到9290万美元，占净销售额的4.4%。按部分计算，运营收入：
•北美销售额同比下降6％，达到8080万美元，占净销售额的4.7％；
•在欧洲、中东、非洲地区，年同比增长超过100%，达到670万美元，占净销售额的2.1%；并且
•亚太地区的销售额同比增加了31％，达到540万美元，相当于净销售额的9.1％。
•除了波动的外币汇率影响外，合并经营收益也同比增长1%，其中欧洲、中东、非洲和亚太地区的经营收益同比增长超过100%和28%，分别，部分抵消了北美地区经营收益同比下降6%。
•2023年第三季度经营调整后盈利相对平稳，为12010万美元，占净销售额的5.8%。按部门来看，经营调整后盈利为：
•北美地区年同比减少3%，至10660万美元，占净销售额的6.2%；
•欧洲、中东、非洲地区的销售年同比增长30%，达到810万美元，占净销售额的2.6%；
•亚太地区的销售额同比增长30%，达到550万美元，占净销售额的9.3%。
•除了波动的外币汇率影响之外，调整后的合并营运收益与2023年第三季度持平，欧洲、中东、非洲和亚太地区的调整后营运收益分别同比增长25%和28%，而北美地区的调整后营运收益同比减少2%。
•2024年第三季度合并净利润和每股摊薄收益分别为5820万美元和1.52美元，有效税率为22.5%。
•2024年第三季度调整后的合并净利润为7700万美元，调整后的每股摊薄收益为2.19美元。排除外汇汇率波动的影响，调整后的每股摊薄收益同比下降8%。
在本新闻稿中讨论截至2024年和2023年9月30日三个月和九个月的财务业绩时，公司提及了某些根据美国通用会计准则（“GAAP”）调整的财务指标。涉及非GAAP指标时，公司将其称为“调整后”。有关更多信息，请参阅“非GAAP财务指标的使用”。按照GAAP准备的财务指标与非GAAP财务指标的表格对照在本新闻稿末尾。
在某些情况下，公司提到净销售额、毛利润、经营收入利润和调整后的经营收入利润方面的变化合并以及在北美地区、欧洲、中东、非洲和亚太地区排除汇率波动的影响。此外，公司在调整后的每股稀释收益方面也提到了在合并基础上排除汇率波动的影响。这些也被视为非GAAP指标。公司认为提供排除汇率波动影响的信息，为投资者提供关于其基本业务和经营业绩的有价值的补充信息，与公司及其管理层评估公司绩效的方式一致。在计算这些变化和百分比时，公司将当年金额按照适用会计准则转换为美元与先前年份金额作比较，先前年份金额以本地货币转换为美元，利用当前期间的加权平均汇率。排除汇率波动影响的绩效指标不应被视为制定根据GAAP编制的财务业绩指标的替代品或更优的替代品。
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.
GUIDANCE
For the full year 2024, we now expect Adjusted diluted earnings per share to be between $9.40 and $9.70. We also now expect to deliver mid single-digit gross profit growth and continue to expect that our gross margin will be in the 19% to 20% range.
This outlook assumes:
•interest expense of $58 to $60 million;
•an effective tax rate of approximately 25.5% for the full year;
•capital expenditures of $35 to $40 million; and
•an average share count for the full year of 35.1 million shares.
This outlook excludes acquisition-related intangibles amortization expense of approximately $70 million, assumes no acquisition or integration related expenses, transformation or severance and restructuring expenses, net and no significant change in our debt instruments or the macroeconomic environment. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings, diluted earnings per share and selling and administrative expenses, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings, diluted earnings per share and selling and administrative expenses. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2024 forecast.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss third quarter 2024 results of operations. A live webcast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the webcast will be available on the Company’s web site for a limited time following the call. To access the live conference call, please register in advance using the event link on the Company's web site. Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call.
USE OF NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures are referred to as “Adjusted”. Adjusted earnings from operations, Adjusted net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) gains and losses from revaluation of acquisition related earnout liabilities, (vii) certain third-party data center service outage related expenses and recoveries, and (viii) the tax effects of each of these items, as applicable. Transformation costs represent costs we are incurring to transform our business, to help us achieve our strategic objectives, including becoming a leading solutions integrator. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company’s average stock price for the third quarter of 2024 was in excess of $68.32, which is the initial conversion price of our convertible senior notes (the “Convertible Notes”). Adjusted EBITDA excludes (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangible assets, (v) severance and restructuring expenses, net, (vi) certain executive recruitment and hiring related expenses, (vii) transformation costs (viii) certain acquisition and integration related expenses, (ix) certain third-party data center service outage related expenses and recoveries, and (x) gains and losses from revaluation of acquisition related earnout liabilities. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, net, (ii) certain executive recruitment and hiring related expenses, (iii) amortization of intangible assets, (iv) transformation costs, (v) certain acquisition and integration related expenses, (vi) certain third-party data center service outage related expenses and recoveries, (vii) gains and losses from revaluation of acquisition related earnout liabilities, and (viii) the tax effects of each of these items, as applicable.
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
These non-GAAP measures are used by the Company and its management to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
FINANCIAL SUMMARY TABLE
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| 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%) | |||||||||||||||||||||||||||||
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
FINANCIAL SUMMARY TABLE (CONTINUED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| 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% | |||||||||||||||||||||||||||||
* Percentage change not considered meaningful
** Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
FORWARD-LOOKING INFORMATION
Certain statements in this release and the related conference call, webcast and presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those related to the impact of inflation and higher interest rates, the Company’s future financial performance and results of operations, including gross profit growth, Adjusted diluted earnings per share, gross margin, and Adjusted selling and administrative expenses, as well as the Company’s other key performance indicators, the Company’s anticipated effective tax rate, capital expenditures, and expected average share count, the Company’s expectations regarding cash flow, the Company’s expectations regarding supply constraints and shipment of backlog, future trends in the IT market, the Company’s business strategy and strategic initiatives, which are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements include, but are not limited to, the following, which are discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” sections of the Company’s most recently filed periodic report on Form 10-K and subsequent filings with the SEC:
•actions of our competitors, including manufacturers and publishers of products we sell;
•our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can change significantly in the amounts made available and in the requirements year over year;
•our ability to keep pace with rapidly evolving technological advances and the evolving competitive marketplace;
•general economic conditions, economic uncertainties and changes in geopolitical conditions, including the possibility of a recession or a decline in market activity as a result of the ongoing conflicts in Ukraine and Gaza;
•changes in the IT industry and/or rapid changes in technology;
•our ability to provide high quality services to our clients;
•our reliance on independent shipping companies;
•the risks associated with our international operations;
•supply constraints for products;
•natural disasters or other adverse occurrences, including public health issues such as pandemics or epidemics;
•disruptions in our IT systems and voice and data networks;
•cyberattacks, outages, or third-party breaches of data privacy as well as related breaches of government regulations;
•intellectual property infringement claims and challenges to our registered patents, trademarks and trade names;
•potential liability and competitive risk based on the development, adoption, and use of Generative Artificial Intelligence;
•legal proceedings, client audits and failure to comply with laws and regulations;
•risks of termination, delays in payment, audits and investigations related to our public sector contracts;
•exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;
•our potential to draw down a substantial amount of indebtedness;
•the conditional conversion feature of the Convertible Notes, which has been triggered, and may adversely affect the Company’s financial condition and operating results;
•the Company is subject to counterparty risk with respect to certain hedge and warrant transactions entered into in connection with the issuance of the Convertible Notes;
•increased debt and interest expense and the possibility of decreased availability of funds under our financing facilities;
•possible significant fluctuations in our future operating results as well as seasonality and variability in client demands;
•potential contractual disputes with our clients and third-party suppliers;
•our dependence on certain key personnel and our ability to attract, train and retain skilled teammates;
•risks associated with the integration and operation of acquired businesses, including achievement of expected synergies and benefits; and
•future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock.
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties.
| CONTACT: | GLYNIS BRYAN | |||||||
| CHIEF FINANCIAL OFFICER | ||||||||
| TEL. 480.333.3390 | ||||||||
EMAIL glynis.bryan@insight.com | ||||||||
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| 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 | |||||||||||||||||||
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In THOUSANDS)
(UNAUDITED)
| 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 | ||||||||
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
| 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 | |||||||
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| 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 | % | ||||||||||||||||||
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
| 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% | ||||||||||||||||||||||
* Includes transformation costs of $5.1 million and $3.7 million for the three months ended September 30, 2024 and 2023, respectively and $13.0 million and $14.0 million for the nine months ended September 30, 2024 and 2023, respectively. Includes certain third-party data center service outage expenses of $8.0 million for both the three and nine months ended September 30, 2023 and related recoveries of $3.4 million for the nine months ended September 30, 2024.
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| Insight Enterprises, Inc. | 2701 E. Insight Way | Chandler, Arizona 85286 | 800.467.4448 | FAX 480.760.8958 | ||||||||||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
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 | % | ||||||||||
1 Assumed tax rate of 26.0%.
2 Average of previous five quarters.
3 Computed as GAAP consolidated EFO, net of tax of $118,500 and $104,507 for the twelve months ended September 30, 2024 and 2023, respectively, divided by invested capital.
4 Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital.
5 Includes transformation costs of $15.6 million and $18.1 million for the twelve months ended September 30, 2024 and 2023, respectively. Includes certain third-party data center service outage related expenses of $8.0 million for the twelve months ended September 30, 2023 and related recoveries of $6.4 million for the twelve months ended September 30, 2024. Includes severance and restructuring costs of $18.8 million and $4.4 million for the twelve months ended September 30, 2024 and 2023, respectively.
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