Ingram Micro (INGM) FY Conference June 04, 2025 04:20 PM ET Speaker0 Thank you. Hi. Thank you all for joining. I'm Maggie Nolan. I'm the IT services analyst here at William Blair, and I cover a number of stocks including Ingram Micro. I'm required to inform you that for a complete list of research disclosures or potential conflicts of interest please visit our website at williamblair.com. So we're excited to have Ingram Micro with us today and to have the CFO Mike Zilis, thank you for joining us. He's going ...

Ingram Micro (INGM) FY Conference May 14, 2025 08:40 AM ET Speaker0 With the hardware and IT companies at Chief Morgan. So the next session of the pleasure of hosting Ingram, Mike Wilkinson. Please have with us Mike Dillard, who's the EVP and Chief Financial Officer. Mike, thank you for coming to the conference. Thank you for the audience as well. We are starting off every company with a question on the macro side and do the things with you. Sure. It's more just to your latest pieces on the macro based on t ...

Ingram Micro (INGM) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Willa Mcmanmon - Investor RelationsPaul Bay - CEOMichael Zilis - Executive VP & CFOSamik Chatterjee - Managing DirectorAdam Tindle - Managing Director Conference Call Participants Erik Woodring - AnalystAnanda Baruah - Stock AnalystRuplu Bhattacharya - AnalystKarl Ackerman - AnalystMatt Niknam - AnalystMaggie Nolan - Research Analyst - Technology, Media & Communications Willa Mcmanmon Thank you, operator. I'm here today ...

Ingram Micro (INGM) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Thank you, operator. I'm here today with Paul Bay, Ingram Micro's CEO and Mike Silas, our CFO. Before I turn the call over to Paul, let me remind you that today's discussion contains forward looking statements within the meaning of the federal securities laws, including predictions, estimates, projections or other statements about future events, statements about our strategy, demand plans and positioning, growth, cash flow, capital ...

There are a number of risks, uncertainties, and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this presentation. Such risks, uncertainties, and other important factors include, among others, the risks, uncertainties, and factors included within the filings we make with the SEC from time to time and the following: general economic conditions; our estimates of the size of the markets for our products and services; our ability ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | - ...

"We were very pleased with our first quarter performance, in which net sales were up 11% year-over-year on a constant currency basis, with earnings per share at the high end of our guidance. Our proven execution during periods of market volatility gives us confidence in our long-term strategy, which is playing out in the traction on our Xvantage platform," said Paul Bay, Ingram Micro's Chief Executive Officer. "We believe that our global reach and decades of experience enabling growth for our trusted partne ...

Core Insights - Kirby McInerney LLP is investigating potential claims against Ingram Micro Holding Corporation regarding possible violations of federal securities laws and unlawful business practices [1] Financial Performance - Ingram conducted its initial public offering on October 24, 2024, with shares priced at $22.00 each [3] - On March 4, 2025, Ingram reported its fourth quarter and full year 2024 financial results, indicating a material impact from two charges exceeding $20 million, including over $9 million for inventory write-offs [4] - Following the financial results announcement, Ingram's share price fell by $1.16, closing at $19.82 on March 5, 2025, down from $20.98 the previous day [4]

IPO and Financial Performance - The company completed an initial public offering (IPO) in October 2024, issuing 11,600,000 shares at a public offering price of $22.00 per share, with an additional 2,790,000 shares sold by the selling stockholder[23]. - For Fiscal Year 2024, 66% of consolidated net sales were generated from international operations, compared to 64% in Fiscal Year 2023 and 62% in Fiscal Year 2022[38]. - The company generated approximately 19% of consolidated net sales in Fiscal Year 2024 from products purchased from Apple Inc., and 10% from HP Inc.[28]. - The company categorizes its offerings into Technology Solutions, Cloud, and Other, with less than 5% of net sales coming from ITAD and reverse logistics solutions[33]. - The company has declared a quarterly cash dividend of $0.074 per share, to be paid on March 25, 2025[199]. - The company may change its dividend policy at any time, and there is no guarantee of future dividends[199]. - The stock price may experience significant volatility due to various factors, including operational results and market conditions[197]. Cloud and Technology Solutions - The company supports over 200 cloud solutions and manages more than 36 million seats through its cloud marketplace, with its CloudBlue platform managing over 52 million seats[29]. - The company has invested heavily in robotics and automation within its advanced logistics centers to enhance delivery capabilities and improve customer experience through its Ingram Micro Xvantage platform[25]. - The introduction of AI and ML capabilities into the company's Ingram Micro Xvantage platform aims to enhance competitive positioning, but faces risks from regulatory scrutiny and potential data breaches[176]. Operational and Market Challenges - The company recognizes seasonal fluctuations in demand, particularly lower demand in Europe during summer months and increased demand in the fourth quarter[39]. - The company faces competition from both global and local distributors, including TD Synnex and Arrow Electronics, but believes it is well-equipped to outperform competitors due to its comprehensive offerings and global reach[40]. - A significant percentage of the company's net sales is dependent on a few key vendors, and any adverse changes in vendor relationships could negatively impact operating margins and revenues[149]. - Vendor consolidation has resulted in fewer sources for products, increasing the bargaining power of larger vendors, which could adversely affect the company's revenues and operating results[153]. - The company faces risks related to supply shortages and customer order backlogs, which can significantly impact pricing and availability of products[151]. Workforce and Talent Development - As of December 28, 2024, the company had approximately 23,500 full-time associates and utilized about 5,250 full-time equivalent temporary or contract workers at peak[44]. - In 2024, approximately 77% of executive positions were filled with internal candidates, indicating a strong focus on internal talent development[50]. Sustainability and Compliance - The company aims to reduce absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2030, using a 2022 base year[52]. - The company received a Platinum medal rating from EcoVadis, recognizing its sustainability efforts and placing it in the top 1% of over 125,000 assessed companies[54]. - The company has established targets for reducing waste in its operations as part of its sustainable impact program[52]. - The company is subject to various data privacy and protection laws, including the California Consumer Privacy Act and the General Data Protection Regulation (GDPR)[41]. - The company monitors changes in laws and regulations to ensure compliance, which may generate additional costs or impact financial condition[42]. Risk Management and Internal Controls - Material weaknesses in internal control over financial reporting have resulted in restatements of financial statements from 2021 to 2023[191]. - The company identified a material weakness in risk assessment processes, contributing to misstatements in financial statements[192]. - Remediation measures for material weaknesses include strengthening controllership functions and revising policies and procedures[195]. - The company may incur significant costs and management time to implement necessary changes to internal controls[195]. - Material weaknesses could lead to further misstatements and additional risks, including legal proceedings and reputational harm[194]. Cybersecurity and Data Protection - The company has implemented data security measures, including physical, technical, and administrative safeguards, to mitigate risks associated with cyberattacks, but cannot guarantee that breaches will not occur in the future[166]. - Compliance with new cybersecurity rules adopted by the SEC requires the company to disclose material cybersecurity incidents within four business days, effective December 18, 2023[174]. - The company faces increased compliance costs due to changing data transfer regulations, particularly regarding cross-border transfers of personal data under GDPR[169]. - The company is actively managing risks associated with third-party data processors through contractual arrangements, but cannot assure complete protection from potential violations[170]. Corporate Governance and Control - Platinum controls approximately 90% of the voting power of the outstanding Common Stock, allowing it to influence the election and removal of directors[180]. - Platinum has the right to nominate a majority of the board of directors as long as it owns at least 50% of the voting power of the outstanding stock[181]. - The company is classified as a "controlled company" under NYSE rules, which exempts it from certain corporate governance requirements[183]. - Anti-takeover provisions may delay or prevent a change of control, potentially affecting stockholder opportunities for premiums on shares[184]. Financial Risks and Liabilities - Each one-eighth percentage point change in interest rates would result in a change of approximately $5.53 million in annual interest expense on the company's variable rate indebtedness[139]. - The company transitioned from LIBOR to the Secured Overnight Financing Rate (SOFR) for its interest reference rate, establishing a 5.317% upper limit on the SOFR interest rate[139]. - The company has experienced credit risks from customers, including a loss of less than $10 million from a customer in receivership in 2022, highlighting potential vulnerabilities in customer payment obligations[156]. - The company is subject to indemnification claims that may reduce available funds for third-party claims, impacting financial stability[209].

Financial Data and Key Metrics Changes - In Q4 2024, the company achieved a year-over-year top-line growth of nearly 3.5% on an FX-neutral basis, with net sales of $13.34 billion, up 2.5% year-over-year in US dollars [6][32] - Full-year 2024 net sales were $48.0 billion, roughly flat versus 2023, and up 0.3% on an FX-neutral basis [25] - Non-GAAP net income for Q4 was $113.1 million, compared to $220.9 million in the same period last year, with non-GAAP diluted EPS at $0.92 [41][42] Business Line Data and Key Metrics Changes - Client and endpoint solutions saw growth both year-over-year and quarter-over-quarter, while Advanced Solutions was impacted by slowness in networking [7][9] - Advanced Solutions experienced solid momentum in server and storage, but networking remained soft [32] - The company recorded restructuring costs equaling 8 basis points of net sales in 2024, reflecting efforts to enhance organizational efficiency [28] Market Data and Key Metrics Changes - North America net sales were $4.767 billion, up 3.0% in US dollars, driven by strength across all lines of business [35] - EMEA net sales were down 1.5% year-over-year, primarily due to weakness in advanced solutions [36] - Asia Pacific net sales were $3.60 billion, up 7.8% year-over-year, driven by strength in client endpoint solutions [36] Company Strategy and Development Direction - The company aims to be a leader in digital transformation, focusing on high-margin and complex solutions in advanced solutions and cloud businesses [19][20] - Continued investment in the Xvantage platform, which has been rolled out in 16 countries, is a key part of the strategy to enhance customer experience and operational efficiency [13][14] - The company is committed to driving quality of revenue and optimizing working capital while achieving operational excellence [22][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining top-line growth in 2025, despite challenges in certain markets like India [22][47] - The company noted a competitive environment impacting margins, particularly in India, but remains focused on profitable growth [49][50] - Management highlighted the importance of adapting to macroeconomic conditions and maintaining a strong balance sheet [43][46] Other Important Information - The company plans to pay a quarterly cash dividend of $0.074 per share in Q1 2025 [45] - The board approved a one-year share repurchase plan for up to $75 million of common stock [45] - The company has repaid $483 million of its term loan balance in 2024, with a total repayment of $1.56 billion since early 2022 [46] Q&A Session Summary Question: What is driving the momentum in large enterprise sales? - Management indicated that growth in large enterprise sales was observed across all regions, not just North America, with a notable refresh cycle in notebooks and desktops [55][56] Question: What gives confidence for top-line growth in 2025? - Management cited strong momentum in endpoint solutions and signs of recovery in networking, along with positive indicators from large vendors [64][65] Question: Are there any one-time costs affecting Q1 profitability guidance? - Management clarified that the guidance reflects margin factors, particularly competitive pressures in India, rather than notable one-time costs [67][69] Question: How is the company addressing the competitive pricing environment in India? - Management emphasized a focus on quality of revenue and selective participation in deals that meet profitability expectations [101][106] Question: What is the outlook for the SMB market? - Management noted that the SMB market was down but expected a recovery as advanced solutions and networking improve [114][115] Question: What is the status of the public sector business? - Management indicated that public sector sales were down globally but expected a return to growth as conditions stabilize [123][124] Question: How is working capital expected to be managed in Q1? - Management highlighted a seasonal pattern in working capital, with a focus on collections from Q4 sales and maintaining free cash flow [125][128]