Ingram Micro Reports 2020 Fiscal Year Financial Results

Ingram Micro Inc. today announced financial results for the 2020 fiscal year ended Jan. 2, 2021. Led by growth in Cloud, e-commerce services and work- and learn-from-home technology solutions, Ingram Micro delivered robust sales and record profits for the year. The company was able to adapt quickly to support global business and consumer shifts in demand created by the global pandemic, helping keep the global supply chain functioning.

Worldwide 2020 fiscal year net sales were $49.1 billion, an increase of nearly $2 billion, or 4 percent in USD. The translation of foreign currencies compared to 2019 had a de minimis negative impact on 2020 fiscal year net sales. 2020 fiscal year gross profit increased by more than $260 million to $3.6 billion, with gross margin growing by 26 basis points to 7.35 percent. This compares to net sales of $47.2 billion, gross profit of $3.3 billion and gross margin of 7.09 percent for the 2019 fiscal year. 2020 fiscal year non-GAAP operating income increased by more than $160 million to $979 million, or 1.99 percent of net sales, a 26 basis-point increase over last year, with non-GAAP net income for the 2020 fiscal year up nearly $150 million to $676 million. This compares to 2019 fiscal year non-GAAP operating income of $816 million, or 1.73 percent of net sales, and non-GAAP net income of $529 million. 2020 fiscal year GAAP operating income was $896 million, or 1.82 percent of net sales, (with the primary GAAP to non-GAAP difference made up of pre-tax amortization expense of $63 million), and GAAP net income was $644 million. This compares to 2019 fiscal year GAAP operating income and net income of $700 million, or 1.48 percent of net sales, and $505 million, respectively.

The company also said Platinum Equity’s acquisition of Ingram Micro from HNA Technology Co., Ltd. remains on-track to close at the end of the 2021 second quarter.

Non-GAAP Disclosures

In addition to GAAP results, Ingram Micro is reporting non-GAAP operating income, non-GAAP operating margin and non-GAAP net income for the two years covered in this release. These non-GAAP measures exclude charges associated with reorganization, acquisitions, integration and transition costs, including those associated with the company’s cost savings programs, and the amortization of intangible assets. These non-GAAP financial measures also exclude tax benefits related to research and development credit, foreign tax credit utilization, net uncertain tax position release and others. Non-GAAP net income also excludes the impact of foreign exchange gains or losses related to the translation effect on Euro-based inventory purchases in Ingram Micro’s pan-European entity. 2019 fiscal year non-GAAP operating and net income also excludes the benefit from the receipt of an LCD flat panel class action settlement, as well as tax benefit related to a worthless stock deduction. The non-GAAP measures noted above are primary indicators that Ingram Micro’s management uses internally to conduct and measure its business and evaluate the performance of its consolidated operations and operating segments. Ingram Micro’s management believes these non-GAAP financial measures are useful because they provide meaningful comparisons to prior periods and an alternate view of the impact of acquired businesses. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Ingram Micro’s business. A material limitation associated with these non-GAAP measures as compared to the GAAP measures is that they may not be comparable to other companies with similarly titled items that present related measures differently. The non-GAAP measures should be considered as a supplement to, and not as a substitute for or superior to, the corresponding measures calculated in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures for the periods presented is attached to this press release.

About Ingram Micro Inc.

Ingram Micro helps businesses realize the promise of technology™. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables its business partners to operate efficiently and successfully in the markets they serve. More at www.ingrammicro.com.

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