Insight Enterprises, Inc. Reports Third Quarter Results
Insight Enterprises (NSIT) reported Q3 2024 results with mixed performance. Net sales decreased 8% to $2.1 billion, while gross profit increased 6% to $432.1 million with margin expanding 270 basis points to 20.7%. Cloud gross profit grew 33% and Core services grew 14% year over year. However, consolidated net earnings decreased 3% to $58.2 million, and diluted EPS fell 6% to $1.52. The company revised its full-year 2024 guidance, now expecting Adjusted diluted EPS between $9.40 and $9.70 with mid single-digit gross profit growth.
Insight Enterprises (NSIT) ha riportato i risultati del terzo trimestre del 2024 con performance miste. Le vendite nette sono diminuite dell'8% a 2,1 miliardi di dollari, mentre il profitto lordo è aumentato del 6% a 432,1 milioni di dollari con un margine in espansione di 270 punti base al 20,7%. Il profitto lordo del Cloud è cresciuto del 33% e i servizi Core sono aumentati del 14% anno su anno. Tuttavia, gli utili netti consolidati sono diminuiti del 3% a 58,2 milioni di dollari e l'EPS diluito è sceso del 6% a 1,52 dollari. L'azienda ha rivisto le previsioni per l'intero anno 2024, ora aspettandosi un EPS diluito rettificato tra 9,40 e 9,70 dollari con una crescita del profitto lordo a singolo cifra nel medio termine.
Insight Enterprises (NSIT) reportó resultados del tercer trimestre de 2024 con un rendimiento mixto. Las ventas netas disminuyeron un 8% a 2.1 mil millones de dólares, mientras que el beneficio bruto aumentó un 6% a 432.1 millones de dólares con un margen que se expandió en 270 puntos básicos al 20.7%. El beneficio bruto en la nube creció un 33% y los servicios básicos crecieron un 14% interanual. Sin embargo, las ganancias netas consolidadas disminuyeron un 3% a 58.2 millones de dólares, y el EPS diluido cayó un 6% a 1.52 dólares. La compañía revisó su guía para el año completo 2024, ahora esperando un EPS diluido ajustado entre 9.40 y 9.70 dólares con un crecimiento del beneficio bruto de cifras individuales en el medio plazo.
인사이트 엔터프라이즈 (NSIT)는 2024년 3분기 결과를 발표하며 혼합된 성과를 보였습니다. 순매출은 21억 달러로 8% 감소하였고, 총 이익은 4억 3,210만 달러로 6% 증가하며 270 베이시스 포인트 증가하여 20.7%의 마진을 기록했습니다. 클라우드 총 이익은 33% 성장하였고, 핵심 서비스는 전년 대비 14% 성장했습니다. 그러나, 통합 순이익은 5820만 달러로 3% 감소하였으며, 희석 주당순이익(EPS)은 1.52달러로 6% 하락했습니다. 회사는 2024년 전체 연도 가이드를 수정하였으며, 이제 조정된 희석 EPS를 9.40달러에서 9.70달러 사이로 예상하고 중간 단일 자릿수의 총 이익 성장을 기대하고 있습니다.
Insight Enterprises (NSIT) a publié ses résultats du troisième trimestre 2024 avec des performances mixtes. Les ventes nettes ont diminué de 8% à 2,1 milliards de dollars, tandis que le bénéfice brut a augmenté de 6% à 432,1 millions de dollars avec une marge passant à 20,7%, soit une expansion de 270 points de base. Le bénéfice brut du Cloud a crû de 33% et les services de base ont augmenté de 14% d'une année sur l'autre. Cependant, le bénéfice net consolidé a diminué de 3% à 58,2 millions de dollars, et le BPA dilué a chuté de 6% à 1,52 dollar. L'entreprise a révisé ses prévisions pour l'année 2024, s'attendant désormais à un BPA dilué ajusté compris entre 9,40 et 9,70 dollars, avec une croissance du bénéfice brut à un chiffre unique au milieu de la fourchette.
Insight Enterprises (NSIT) hat die Ergebnisse des dritten Quartals 2024 mit gemischter Leistung veröffentlicht. Der Nettoumsatz ging um 8% auf 2,1 Milliarden Dollar zurück, während der Bruttogewinn um 6% auf 432,1 Millionen Dollar anstieg und die Marge um 270 Basispunkte auf 20,7% erweiterte. Der Bruttogewinn aus der Cloud wuchs um 33% und die Kernservices wuchsen um 14% im Vergleich zum Vorjahr. Allerdings gingen die konsolidierten Nettogewinne um 3% auf 58,2 Millionen Dollar zurück, und das verwässerte EPS fiel um 6% auf 1,52 Dollar. Das Unternehmen hat seine Prognose für das gesamte Jahr 2024 überarbeitet und erwartet nun ein bereinigtes verwässertes EPS zwischen 9,40 und 9,70 Dollar mit einem mittleren einstelligen Wachstum des Bruttogewinns.
- Gross profit increased 6% to $432.1 million
- Gross margin expanded 270 basis points to 20.7%
- Cloud gross profit grew 33% year over year
- Core services gross profit increased 14% year over year
- Services net sales increased 10% year over year
- Net sales decreased 8% to $2.1 billion
- Consolidated net earnings decreased 3% to $58.2 million
- Diluted earnings per share decreased 6% to $1.52
- Product net sales decreased 11% year over year
- Adjusted diluted earnings per share decreased 8% to $2.19
Insights
-
Gross profit increased
6% year over year to with gross margin expanding 270 basis points to$432.1 million 20.7% -
Insight Core services gross profit grew
14% year over year -
Cloud gross profit grew
33% year over year
-
Insight Core services gross profit grew
-
Consolidated net earnings decreased
3% to , year to year$58.2 million -
Adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) was flat at
, year over year$128.8 million -
Diluted earnings per share of
decreased$1.52 6% year to year -
Adjusted diluted earnings per share of
decreased$2.19 8% year to year
In the third quarter of 2024, net sales decreased
“We are optimistic about the business’s long-term health; however, the third quarter did not meet our expectations, and we anticipate the information technology spending environment will remain cautious in the near term,” stated Joyce Mullen, President and Chief Executive Officer. “We continue to execute on our solutions integrator strategy, delivering strong cloud growth and solid Insight Core Services results fueled by our acquisitions,” Mullen stated.
KEY HIGHLIGHTS
Results for the Quarter:
-
Consolidated net sales for the third quarter of 2024 of
decreased$2.1 billion 8% , year to year, when compared to the third quarter of 2023. Product net sales decreased11% , year to year, while services net sales increased10% , year over year.-
Net sales in
North America decreased8% , year to year, to ;$1.7 billion -
Product net sales decreased
11% , year to year, to ;$1.4 billion -
Services net sales increased
9% , year over year, to ;$325.4 million
-
Product net sales decreased
-
Net sales in EMEA decreased
12% , year to year, to ; and$312.6 million -
Net sales in APAC increased
15% , year over year, to .$58.7 million
-
Net sales in
-
Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales also decreased
8% , year to year, with decreases in net sales inNorth America and EMEA of8% and13% year to year, respectively, while net sales in APAC increased13% , year over year. -
Consolidated gross profit increased
6% compared to the third quarter of 2023 to , with consolidated gross margin expanding 270 basis points to$432.1 million 20.7% of net sales. Product gross profit decreased3% , year to year, and services gross profit increased13% , year over year. Cloud gross profit grew33% , year over year, and Insight Core services gross profit increased14% , year over year. By segment, gross profit:-
increased
4% inNorth America , year over year, to ($348.1 million 20.3% gross margin); -
increased
11% in EMEA, year over year, to ($66.4 million 21.2% gross margin); and -
increased
15% in APAC, year over year, to ($17.6 million 30.1% gross margin).
-
increased
-
Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit was up
5% , year over year, with gross profit growth inNorth America , EMEA and APAC of4% ,9% and13% , respectively, year over year. -
Consolidated earnings from operations increased
1% compared to the third quarter of 2023 to , or$92.9 million 4.4% of net sales. By segment, earnings from operations:-
decreased
6% inNorth America , year to year, to , or$80.8 million 4.7% of net sales; -
increased by more than
100% in EMEA, year over year, to , or$6.7 million 2.1% of net sales; and -
increased
31% in APAC, year over year, to , or$5.4 million 9.1% of net sales.
-
decreased
-
Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations were also up
1% , year over year, with increased earnings from operations in EMEA and APAC of over100% and28% , year over year, respectively, partially offset by a decrease in earnings from operations inNorth America of6% , year to year. -
Adjusted earnings from operations was relatively flat compared to the third quarter of 2023 at
, or$120.1 million 5.8% of net sales. By segment, Adjusted earnings from operations:-
decreased
3% inNorth America , year to year, to , or$106.6 million 6.2% of net sales; -
increased
30% in EMEA, year over year, to , or$8.1 million 2.6% of net sales; and -
increased
30% in APAC, year over year, to , or$5.5 million 9.3% of net sales.
-
decreased
-
Excluding the effects of fluctuating foreign currency exchange rates, Adjusted consolidated earnings from operations was flat compared to the third quarter of 2023, with increased Adjusted earnings from operations in EMEA and APAC of
25% and28% , year over year, respectively, offset by a decrease in Adjusted earnings from operations inNorth America of2% , year to year. -
Consolidated net earnings and diluted earnings per share for the third quarter of 2024 were
and$58.2 million , respectively, at an effective tax rate of$1.52 22.5% . -
Adjusted consolidated net earnings and Adjusted diluted earnings per share for the third quarter of 2024 were
and$77.0 million , respectively. Excluding the effects of fluctuating foreign currency exchange rates, Adjusted diluted earnings per share decreased$2.19 8% year to year.
In discussing financial results for the three and nine months ended September 30, 2024 and 2023 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with
In some instances, the Company refers to changes in net sales, gross profit, earnings from operations and Adjusted earnings from operations on a consolidated basis and in
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
This outlook assumes:
-
interest expense of
to$58 ;$60 million -
an effective tax rate of approximately
25.5% for the full year; -
capital expenditures of
to$35 ; and$40 million - an average share count for the full year of 35.1 million shares.
This outlook excludes acquisition-related intangibles amortization expense of approximately
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
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.
FINANCIAL SUMMARY TABLE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) |
||||||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
change |
|
|
2024 |
|
|
|
2023 |
|
|
change |
Insight Enterprises, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
|
|
( |
Gross profit |
|
$ |
432,085 |
|
|
$ |
408,870 |
|
|
|
|
$ |
1,326,378 |
|
|
$ |
1,233,375 |
|
|
|
Gross margin |
|
|
20.7 |
% |
|
|
18.0 |
% |
|
270 bps |
|
|
20.0 |
% |
|
|
17.8 |
% |
|
220 bps |
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 |
|
|
|
Net earnings |
|
$ |
58,208 |
|
|
$ |
60,247 |
|
|
( |
|
$ |
212,679 |
|
|
$ |
190,701 |
|
|
|
Diluted earnings per share |
|
$ |
1.52 |
|
|
$ |
1.62 |
|
|
( |
|
$ |
5.53 |
|
|
$ |
5.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales Mix |
|
|
|
|
|
** |
|
|
|
|
|
** |
||||||||
Hardware |
|
|
54 |
% |
|
|
57 |
% |
|
( |
|
|
52 |
% |
|
|
57 |
% |
|
( |
Software |
|
|
26 |
% |
|
|
26 |
% |
|
( |
|
|
29 |
% |
|
|
27 |
% |
|
|
Services |
|
|
20 |
% |
|
|
17 |
% |
|
|
|
|
19 |
% |
|
|
16 |
% |
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
( |
|
|
100 |
% |
|
|
100 |
% |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Products |
|
$ |
1,391,176 |
|
|
$ |
1,562,861 |
|
|
( |
|
$ |
4,380,214 |
|
|
$ |
4,695,751 |
|
|
( |
Services |
|
$ |
325,407 |
|
|
$ |
298,011 |
|
|
|
|
$ |
973,548 |
|
|
$ |
896,251 |
|
|
|
Total net sales |
|
$ |
1,716,583 |
|
|
$ |
1,860,872 |
|
|
( |
|
$ |
5,353,762 |
|
|
$ |
5,592,002 |
|
|
( |
Gross profit |
|
$ |
348,057 |
|
|
$ |
333,857 |
|
|
|
|
$ |
1,052,007 |
|
|
$ |
992,143 |
|
|
|
Gross margin |
|
|
20.3 |
% |
|
|
17.9 |
% |
|
240 bps |
|
|
19.6 |
% |
|
|
17.7 |
% |
|
190 bps |
Selling and administrative expenses |
|
$ |
259,954 |
|
|
$ |
244,154 |
|
|
|
|
$ |
771,066 |
|
|
$ |
745,259 |
|
|
|
Severance and restructuring expenses, net |
|
$ |
7,242 |
|
|
$ |
2,650 |
|
|
> |
|
$ |
12,783 |
|
|
$ |
1,052 |
|
|
> |
Acquisition and integration related expenses |
|
$ |
25 |
|
|
$ |
970 |
|
|
( |
|
$ |
1,486 |
|
|
$ |
1,127 |
|
|
|
Earnings from operations |
|
$ |
80,836 |
|
|
$ |
86,083 |
|
|
( |
|
$ |
266,672 |
|
|
$ |
244,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales Mix |
|
|
|
|
|
** |
|
|
|
|
|
** |
||||||||
Hardware |
|
|
58 |
% |
|
|
62 |
% |
|
( |
|
|
57 |
% |
|
|
62 |
% |
|
( |
Software |
|
|
23 |
% |
|
|
22 |
% |
|
( |
|
|
25 |
% |
|
|
22 |
% |
|
|
Services |
|
|
19 |
% |
|
|
16 |
% |
|
|
|
|
18 |
% |
|
|
16 |
% |
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
( |
|
|
100 |
% |
|
|
100 |
% |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Products |
|
$ |
249,642 |
|
|
$ |
300,485 |
|
|
( |
|
$ |
881,464 |
|
|
$ |
1,006,216 |
|
|
( |
Services |
|
$ |
62,964 |
|
|
$ |
53,911 |
|
|
|
|
$ |
212,856 |
|
|
$ |
166,910 |
|
|
|
Total net sales |
|
$ |
312,606 |
|
|
$ |
354,396 |
|
|
( |
|
$ |
1,094,320 |
|
|
$ |
1,173,126 |
|
|
( |
Gross profit |
|
$ |
66,381 |
|
|
$ |
59,709 |
|
|
|
|
$ |
220,556 |
|
|
$ |
192,644 |
|
|
|
Gross margin |
|
|
21.2 |
% |
|
|
16.8 |
% |
|
440 bps |
|
|
20.2 |
% |
|
|
16.4 |
% |
|
380 bps |
Selling and administrative expenses |
|
$ |
57,808 |
|
|
$ |
54,435 |
|
|
|
|
$ |
178,377 |
|
|
$ |
159,253 |
|
|
|
Severance and restructuring expenses |
|
$ |
1,240 |
|
|
$ |
271 |
|
|
> |
|
$ |
2,639 |
|
|
$ |
1,840 |
|
|
|
Acquisition and integration related expenses |
|
$ |
668 |
|
|
$ |
3,322 |
|
|
( |
|
$ |
678 |
|
|
$ |
3,322 |
|
|
( |
Earnings from operations |
|
$ |
6,665 |
|
|
$ |
1,681 |
|
|
> |
|
$ |
38,862 |
|
|
$ |
28,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales Mix |
|
|
|
|
|
** |
|
|
|
|
|
** |
||||||||
Hardware |
|
|
40 |
% |
|
|
39 |
% |
|
( |
|
|
35 |
% |
|
|
37 |
% |
|
( |
Software |
|
|
40 |
% |
|
|
46 |
% |
|
( |
|
|
45 |
% |
|
|
49 |
% |
|
( |
Services |
|
|
20 |
% |
|
|
15 |
% |
|
|
|
|
20 |
% |
|
|
14 |
% |
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
( |
|
|
100 |
% |
|
|
100 |
% |
|
( |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
APAC |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Products |
|
$ |
32,961 |
|
|
$ |
26,808 |
|
|
|
|
$ |
102,491 |
|
|
$ |
101,441 |
|
|
|
Services |
|
$ |
25,736 |
|
|
$ |
24,210 |
|
|
|
|
$ |
78,460 |
|
|
$ |
73,260 |
|
|
|
Total net sales |
|
$ |
58,697 |
|
|
$ |
51,018 |
|
|
|
|
$ |
180,951 |
|
|
$ |
174,701 |
|
|
|
Gross profit |
|
$ |
17,647 |
|
|
$ |
15,304 |
|
|
|
|
$ |
53,815 |
|
|
$ |
48,588 |
|
|
|
Gross margin |
|
|
30.1 |
% |
|
|
30.0 |
% |
|
10 bps |
|
|
29.7 |
% |
|
|
27.8 |
% |
|
190 bps |
Selling and administrative expenses |
|
$ |
12,234 |
|
|
$ |
11,204 |
|
|
|
|
$ |
35,221 |
|
|
$ |
33,525 |
|
|
|
Severance and restructuring expenses |
|
$ |
61 |
|
|
$ |
2 |
|
|
> |
|
$ |
216 |
|
|
$ |
63 |
|
|
> |
Acquisition and integration related expenses |
|
$ |
2 |
|
|
$ |
— |
|
|
* |
|
$ |
2 |
|
|
$ |
— |
|
|
* |
Earnings from operations |
|
$ |
5,350 |
|
|
$ |
4,098 |
|
|
|
|
$ |
18,376 |
|
|
$ |
15,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales Mix |
|
|
|
|
|
** |
|
|
|
|
|
** |
||||||||
Hardware |
|
|
18 |
% |
|
|
21 |
% |
|
( |
|
|
16 |
% |
|
|
19 |
% |
|
(18)% |
Software |
|
|
38 |
% |
|
|
31 |
% |
|
|
|
|
41 |
% |
|
|
39 |
% |
|
|
Services |
|
|
44 |
% |
|
|
48 |
% |
|
|
|
|
43 |
% |
|
|
42 |
% |
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
* |
Percentage change not considered meaningful |
** |
Change in sales mix represents growth/decline in category net sales on a |
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 andGaza ; - 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.
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.
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 |
||
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In THOUSANDS) (UNAUDITED) |
|||||||
|
September 30,
|
|
December 31,
|
||||
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 |
|
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 |
|
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
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 |
|
$ |
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 |
|
$ |
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 |
% |
|
|
|
|
|
|
|
|
|
||||||||
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 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (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 |
2 |
Average of previous five quarters. |
3 |
Computed as GAAP consolidated EFO, net of tax of |
4 |
Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital. |
5 |
Includes transformation costs of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031036211/en/
GLYNIS BRYAN
CHIEF FINANCIAL OFFICER
TEL. 480.333.3390
EMAIL glynis.bryan@insight.com
Source: Insight Enterprises Inc.
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