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Ingram Micro (INGM) Update / Briefing Transcript
2025-07-17 19:00
Ingram Micro (INGM) Update Summary Company Overview - Ingram Micro is a platform company focused on reimagining distribution, particularly in the B2B IT industry, with a significant emphasis on its Xvantage platform [3][4][5] Industry Insights - The B2B IT distribution industry is complex, characterized by longer sales cycles and a demand for consumer-like experiences [5][6] - The total addressable market (TAM) for the IT industry is approximately $5 trillion [7] Xvantage Platform - Xvantage is designed to connect demand and supply in the B2B ecosystem, integrating various services such as hardware, software, and cloud solutions into a single platform [11][12][87] - The platform aims to reduce operational inefficiencies, allowing for complex quotes to be generated in minutes rather than days [22][93] - Xvantage utilizes AI and a real-time data mesh to enhance operational efficiency and provide personalized experiences for users [19][20][21] Key Features and Innovations - The platform incorporates a comprehensive ecosystem that includes integrations with various systems (e.g., Salesforce) to streamline operations [63][65] - Xvantage has filed over 30 patents related to its architecture and AI capabilities, showcasing its innovative approach [18] - The platform supports real-time data processing, enabling quick decision-making and insights for partners [17][21] Customer Benefits - Partners using Xvantage have reported significant time savings, with some saving 10 to 15 hours per person per week [30] - The platform provides insights into sales performance, inventory management, and customer engagement, helping partners optimize their operations [37][74] - Xvantage allows for seamless management of multiple service models, including subscriptions and as-a-service solutions [104][105] Competitive Differentiation - Xvantage differentiates itself from other distribution platforms by not merely modernizing distribution but by creating a holistic ecosystem that addresses the complexities of the entire B2B IT industry [87][88] - The platform's ability to integrate various functionalities into one cohesive system sets it apart from traditional distribution models [89][90] Future Outlook - Ingram Micro is focused on expanding the capabilities of Xvantage and enhancing its AI-driven features to further support its partners and drive growth [96][104] - The company aims to continue building a platform that not only serves as a distribution tool but as a comprehensive business solution for the IT ecosystem [83][84] Conclusion - Ingram Micro's Xvantage platform represents a significant evolution in the B2B distribution landscape, leveraging technology and data to create a more efficient and integrated ecosystem for its partners and customers [85][106]
Ingram Micro (INGM) FY Conference Transcript
2025-06-04 21:22
Summary of Ingram Micro Conference Call Company Overview - **Company**: Ingram Micro - **Industry**: Technology Distribution and Services - **Revenue**: $48 billion, with a presence in 57 countries, servicing over 160,000 customers globally [6][7] Core Points and Arguments - **Evolution of Business Model**: Ingram Micro has transitioned from a traditional tech distribution company to a service provider and is moving towards becoming a platform company [6][9] - **Market Growth**: The company reported nearly 11% growth in Q1 on an FX neutral basis, driven by demand for PC refreshes, mobility sales, and growth in cybersecurity and cloud services [12][41] - **Financial Performance**: Q1 results exceeded guidance, with revenues well over the top end of the range and EPS at the top end of guidance [13][41] - **Product Categories**: - **Client and Endpoint Solutions**: Represents over 60% of revenues but has low to mid single-digit margins [45] - **Advanced Solutions and Cloud**: More than a third of the business, with higher margins due to bundled services [46][48] - **Cloud Services**: Accounts for 15% of gross profit, growing rapidly as more services move to an "as a service" model [48] Strategic Initiatives - **Xvantage Platform**: A digital platform that enhances customer experience and operational efficiency, currently deployed in 20 out of 57 countries [27][35] - **Cost Management**: The company has removed over $200 million in annualized operating expenses through operational efficiencies [36] - **Acquisitions**: Over 40 acquisitions totaling approximately $2 billion in the last 12-14 years to enhance service offerings, particularly in cybersecurity and cloud [24] Market Dynamics - **Customer Segmentation**: The SMB segment is crucial for profitability, despite being a smaller share of revenues compared to larger enterprises [15][17] - **Geographic Performance**: Asia Pacific region saw 23% growth in Q1, contributing to overall revenue growth but with lower margins [49][50] - **Tariff Impact**: Tariffs are affecting the SMB space, leading to cautious buying behavior [42][44] Future Outlook - **Guidance for Q2**: Expected growth of approximately 4%, with all categories anticipated to grow [54][55] - **Investment Focus**: Continued investment in high-margin complex solutions and digital transformation to solidify the company's position as a platform leader [56] Additional Insights - **Customer Engagement**: The revival of dormant customers has been significant, with a run rate of 2,000 new active customers per quarter [38] - **Operational Efficiency**: The Xvantage platform has enabled a significant increase in self-service orders, enhancing customer autonomy and reducing operational burdens [37][39] This summary encapsulates the key points discussed during the Ingram Micro conference call, highlighting the company's strategic direction, financial performance, and market dynamics.
Ingram Micro (INGM) FY Conference Transcript
2025-05-14 13:40
Summary of Conference Call Company and Industry - The conference call involves Ingram Micro, a company operating in the hardware and IT distribution sector, focusing on technology solutions and services. Core Insights and Arguments 1. **Macro Economic Outlook**: There are concerns about a potential slowdown in the macro environment in the latter half of the year, with growth expectations set at mid-single digits for Q2 [2][4][8]. 2. **Product Performance**: Strong double-digit growth was observed in the PC desktop and notebook categories, while networking is starting to rebound into modest growth [5][7][10]. 3. **Tariff Impact**: The uncertainty surrounding tariffs is a significant concern, particularly for small and medium-sized businesses (SMBs), which are more sensitive to inflationary pressures [7][8][13]. 4. **Demand Trends**: There is a noted difference in demand between SMBs and large enterprises, with large enterprises showing more resilience [9][37]. 5. **Investment in Advanced Solutions**: Over $600 million has been invested in cloud marketplace and advanced solutions, which are expected to drive future growth [17][21]. 6. **AI Integration**: AI is seen as a long-term value proposition, with investments primarily in larger enterprises, but it is still early in terms of widespread impact [39][40]. 7. **Cloud Business Growth**: The cloud segment has been growing at double digits, contributing significantly to gross profit, with expectations for continued growth [50][52]. 8. **Gross Margin Dynamics**: Recent gross margin declines are attributed to product and customer mix, with lower-margin sales in mobility devices and increased competition in certain markets like India [54][56][58]. Other Important Insights 1. **Geographic Expansion**: The Asia Pacific and Latin America regions now account for over a third of the business, indicating a strategic focus on emerging markets [14][15]. 2. **Cost Synergies**: Automation and improved processes have led to the removal of over $200 million in annualized costs, allowing for reinvestment in proactive sales efforts [22][23]. 3. **Customer Experience Enhancements**: The introduction of AI-enabled tools for sales agents is aimed at improving customer engagement and sales efficiency [26][27]. 4. **Pricing Strategies**: Price increases due to tariffs have been modest, with single-digit percentage impacts observed [31][33]. 5. **Competitive Landscape**: The company is focused on maintaining a competitive edge through technological advancements and strategic partnerships with over 1,500 tech vendors [15][18]. This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market challenges, and growth opportunities.
Ingram Micro Holding Corporation(INGM) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:02
Financial Data and Key Metrics Changes - Net revenue for the first quarter was $12.3 billion, up 11% year over year on an FX neutral basis and 4% above the high end of guidance provided in the previous quarter [3] - Gross profit reached $829 million, exceeding the midpoint of guidance by more than 2% [3] - Non-GAAP EPS was $0.61, at the high end of guidance [3][30] Business Line Data and Key Metrics Changes - Client and endpoint solutions saw robust growth of nearly 15% on an FX neutral basis [22] - Advanced solutions and cloud businesses also contributed to growth, with cloud accounting for nearly 15% of total gross profit, up from 13% a year ago [24][30] - Networking returned to low single-digit growth after previous declines [22] Market Data and Key Metrics Changes - North America net sales were $4.43 billion, up 10.4% year over year on an FX neutral basis [25] - EMEA net sales were $3.42 billion, up 0.6% year over year, but up 3% on an FX neutral basis [26] - Asia Pacific experienced the strongest growth with net sales of $3.62 billion, up 20.1% year over year in U.S. dollars and 23.2% on an FX neutral basis [26] - Latin America net sales decreased by 8.5% in U.S. dollars but were down only 0.3% in constant currency [28] Company Strategy and Development Direction - The company is focused on evolving into a platform company, investing over $600 million in cloud capabilities and the XVantage platform [5][13] - The XVantage platform aims to enhance customer experience by automating tasks and providing real-time insights [6][12] - The company remains committed to innovation and execution, believing it is in a stronger position to navigate market volatility [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite macroeconomic uncertainties, citing strong demand in large enterprise sales [4][13] - The company expects continued overall growth in the second quarter, with guidance reflecting potential impacts from tariffs and macro conditions [35][36] - Management noted that while SMB sales remain muted, large corporate sales are expected to continue performing well [41][47] Other Important Information - The company paid down $125 million of its term loan balance, reducing net debt to adjusted EBITDA ratio to 2.0 times [34] - A quarterly dividend of $17.4 million was paid, with a 2.7% increase announced for the next quarter [34] Q&A Session Questions and Answers Question: Can you elaborate on the macro-related comments and the outlook for large enterprises? - Management noted that while SMBs face headwinds, large enterprise demand remains strong, with ongoing projects and budgets intact [40][42] Question: How did the mix between Client Solutions and Advanced Solutions track in Q1? - The company reported strong performance in client endpoint solutions, with expectations for continued growth in Advanced Solutions and cloud [43][45] Question: Can you size the pull forward seen in Q1 and its impact on Q2 guidance? - Management indicated that there was a slight pull forward primarily related to PC refresh, but it was not material enough to define a trend [50][52] Question: What is the pricing environment like currently? - Management stated that there has been minimal pricing impact, with only minor changes in peripherals and accessories [58][60] Question: Can you discuss the progress of the XVantage platform and its impact on revenue? - The company is deploying XVantage in 20 of 57 countries, with metrics showing increased user engagement and self-service orders [67][70]
Ingram Micro Holding Corporation(INGM) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:00
Financial Data and Key Metrics Changes - Net revenue for the first quarter was $12.3 billion, an increase of 11% year over year on an FX neutral basis and 4% above the high end of guidance provided in the previous quarter [3] - Gross profit reached $829 million, exceeding the midpoint of guidance by more than 2% [3] - Non-GAAP EPS was $0.61, at the high end of guidance [3][31] Business Line Data and Key Metrics Changes - Client and endpoint solutions saw robust growth of nearly 15% on an FX neutral basis [22] - Advanced solutions and cloud categories also experienced year-over-year growth, with cloud contributing nearly 15% of total gross profit, up from 13% a year ago [24][31] - Networking returned to low single-digit growth after previous declines [24] Market Data and Key Metrics Changes - North America net sales were $4.43 billion, up 10.4% year over year on an FX neutral basis [25] - EMEA net sales were $3.42 billion, up 0.6% year over year, but up 3% on an FX neutral basis [26] - Asia Pacific had the strongest growth with net sales of $3.62 billion, up 20.1% year over year in U.S. dollars and 23.2% on an FX neutral basis [27] - Latin America net sales decreased by 8.5% in U.S. dollars but were down only 0.3% in constant currency [29] Company Strategy and Development Direction - The company is focused on evolving into a platform company, investing over $600 million in cloud capabilities and the XVantage platform [5][13] - The strategy includes enhancing customer experience through automation and AI, with the goal of improving operational efficiency and driving revenue growth [6][12] - The company aims to maintain a competitive edge through its global reach and experience, while navigating macroeconomic uncertainties [4][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite macroeconomic volatility, citing strong demand in advanced solutions and cloud [4][35] - The company expects continued overall growth in the second quarter, with guidance reflecting potential impacts from tariffs and macro conditions [35][36] - Management noted that while SMB sales remain muted, large corporate and enterprise sales are expected to continue performing well [40][46] Other Important Information - The company paid down $125 million of its term loan balance, reducing net debt to adjusted EBITDA ratio to 2.0 times [34] - A quarterly dividend of $17.4 million was paid, with a 2.7% increase announced for the next quarter [34] - The company is focused on maintaining working capital efficiency, with working capital days improving to 29 from 33 year over year [32] Q&A Session Summary Question: Insights on macro-related comments and enterprise project intentions - Management noted that while SMB sales faced headwinds, large enterprise demand remains strong, with ongoing projects and budgets intact [39][42] Question: Mix between Client Solutions and Advanced Solutions - The company indicated that while client endpoint solutions performed well, advanced solutions are expected to grow, with no dramatic shifts in product mix anticipated for Q2 [43][46] Question: Understanding pull forward in Q1 and its impact on Q2 guidance - Management acknowledged slight pull forwards primarily in PC refresh, but emphasized that it was not material enough to define a trend [49][54] Question: Pricing environment and vendor price increases - Management reported minimal pricing impact, with some changes in peripherals and accessories, but overall stability in pricing observed [58][60] Question: Progress and metrics for XVantage platform - The company is deploying XVantage in 20 of 57 countries, focusing on user engagement and operational efficiency, with significant increases in self-service orders [66][70] Question: Outlook for gross margin and working capital dynamics - Management expects gross margins to remain pressured due to product mix, but anticipates potential improvements if advanced solutions and cloud growth continue [82][84]
Ingram Micro Holding Corporation(INGM) - 2025 Q1 - Earnings Call Presentation
2025-05-08 21:23
Q1 2025 Performance Highlights - Net sales reached $123 billion, up 108% year-over-year on an FX neutral basis, exceeding guidance by 56%[14, 10] - Adjusted income from operations was $229 million, a 66% increase year-over-year[14] - Non-GAAP net income increased by 66% year-over-year to $144 million[14] - Adjusted EBITDA was $291 million, a 01% increase year-over-year[14] - Non-GAAP diluted EPS was $061, exceeding guidance by $005[14] Financial Position - The company repaid $125 million of debt in Q1 2025, bringing the total repayment to $169 billion since 2022[10, 32] - Available liquidity under the Revolving Credit Facility is $35 billion[33] - Net Debt / Q1 2025 TTM Adjusted EBITDA decreased to 20x, down from 23x in Q1 2024[33] Xvantage Digital Platform - The platform facilitated 12 million searches for hardware, software, cloud, and services[20] - Self-serve orders more than tripled year-over-year[21] - Thousands of dormant customers were reactivated through the platform[22] Q2 2025 Guidance - Net revenue is projected to be between $11765 billion and $12165 billion, representing year-over-year growth of 19% to 54%[35] - Non-GAAP diluted EPS is expected to be between $053 and $063[35]
Ingram Micro Holding Corporation(INGM) - 2025 Q1 - Quarterly Report
2025-05-08 20:17
Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited statements show an 8.3% YoY net sales increase to $12.3 billion and revisions to prior period financials [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to $18.63 billion while stockholders' equity increased to $3.86 billion Key Balance Sheet Accounts | Account | March 29, 2025 ($ thousands) | December 28, 2024 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 15,648,116 | 15,801,177 | | **Total Assets** | **18,628,470** | **18,779,690** | | **Total Current Liabilities** | 11,166,283 | 11,306,531 | | **Total Liabilities** | **14,765,767** | **15,045,815** | | **Total Stockholders' Equity** | **3,862,703** | **3,733,875** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales grew to $12.28 billion, driving net income up to $69.2 million from $49.6 million YoY Key Income Statement Metrics | Metric | Thirteen Weeks Ended March 29, 2025 ($ thousands) | Thirteen Weeks Ended March 30, 2024 ($ thousands) | | :--- | :--- | :--- | | **Net Sales** | 12,280,843 | 11,334,934 | | **Gross Profit** | 828,762 | 834,938 | | **Income from Operations** | 200,864 | 170,121 | | **Net Income** | **69,189** | **49,552** | | **Diluted EPS** | $0.29 | $0.22 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income reached $143.4 million, reversing a $34.5 million loss from the prior year Comprehensive Income (Loss) Summary | Metric | Thirteen Weeks Ended March 29, 2025 ($ thousands) | Thirteen Weeks Ended March 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Net Income | 69,189 | 49,552 | | Foreign currency translation adjustment | 74,423 | (83,899) | | **Comprehensive Income (Loss)** | **143,441** | **(34,518)** | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity rose to $3.86 billion, driven by net income and positive currency adjustments - Key changes in stockholders' equity for Q1 2025 include **net income of $69.2 million**, dividends declared of $17.4 million, and a positive foreign currency translation adjustment of $74.4 million[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operations was $200.4 million, reflecting increased investment in working capital Key Cash Flow Activities | Cash Flow Activity | Thirteen Weeks Ended March 29, 2025 ($ thousands) | Thirteen Weeks Ended March 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash used in operating activities | (200,430) | (100,266) | | Cash provided by investing activities | 58,291 | 24,107 | | Cash provided by financing activities | 96,759 | 3,516 | | **Decrease in cash and cash equivalents** | **(36,764)** | **(90,913)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, contingencies, and revisions to prior statements due to fraudulent activity - Previously issued financial statements for Q1 2024 were revised due to fraudulent activity, resulting in a **$10.6M reduction in Net Sales** and a **$4.4M reduction in Net Income**[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - Total debt stood at **$3.48 billion** as of March 29, 2025, following a voluntary repayment of **$125 million** on its Term Loan Credit Facility[68](index=68&type=chunk) - The company faces potential losses from legal proceedings, including **$147.7 million in Brazil** and **$115.5 million in Saudi Arabia**[82](index=82&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - A cash dividend of **$0.074 per share** ($17.4 million total) was paid in March 2025, with a subsequent dividend of **$0.076 per share** declared in May[41](index=41&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales grew 8.3% to $12.3 billion, with operating margin improving to 1.64% despite lower gross margin [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Sales growth was driven by Asia-Pacific and North America, while operating margin improved on cost control Net Sales by Region | Region | Net Sales Q1 2025 ($M) | YoY % Change | | :--- | :--- | :--- | | North America | 4,434.6 | 9.8% | | EMEA | 3,424.7 | 0.6% | | Asia-Pacific | 3,618.2 | 20.1% | | Latin America | 803.4 | (8.5)% | | **Total** | **12,280.8** | **8.3%** | - **Gross margin decreased by 62 basis points** YoY, driven by a shift in product and geographic mix towards lower-margin categories[120](index=120&type=chunk) - **Operating income margin increased by 14 basis points** YoY to 1.64%, primarily due to lower SG&A expenses and reduced restructuring costs[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - **Asia-Pacific operating margin decreased 40 basis points** due to geographic mix, a higher concentration of mobility sales, and a competitive market in India[126](index=126&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 with $881.6 million in cash after increased working capital investment and debt repayment Key Liquidity Metrics | Metric | March 29, 2025 ($ thousands) | December 28, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 881,637 | 918,401 | | Working Capital Dollars | 4,312,934 | 4,142,013 | - Cash used in operating activities was **$200.4 million** in Q1 2025, primarily reflecting investment in working capital, particularly inventory[135](index=135&type=chunk) - Financing activities provided net cash of **$96.8 million**, driven by net proceeds from credit facilities, partially offset by a **$125 million** term loan repayment[137](index=137&type=chunk) - The company has total financing capacity of approximately **$7.5 billion**, of which **$3.5 billion** was outstanding at quarter-end[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency and interest rate risks, with key interest rate cap agreements expiring - The Value-at-Risk (VaR) for foreign exchange risk indicates a maximum potential one-day loss of **$2.42 million** as of March 29, 2025[158](index=158&type=chunk) - A **1% change in interest rates** would impact annual interest expense by approximately **$8.2 million** on variable-rate debt[159](index=159&type=chunk) - **Interest rate cap agreements** used to mitigate risk on the Term Loan Credit Facility expired on March 31, 2025, and have not been renewed[160](index=160&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed not effective due to previously disclosed material weaknesses - Management concluded that disclosure controls and procedures were **not effective** as of March 29, 2025[161](index=161&type=chunk) - The ineffectiveness is due to previously identified material weaknesses in the **risk assessment process** and controls over **software license accounting**[163](index=163&type=chunk) - A remediation plan is ongoing, but **no material changes** to internal controls were made during the quarter[165](index=165&type=chunk)[166](index=166&type=chunk) Part II. Other Information [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates information on legal matters from Note 10 of the financial statements - Information on legal proceedings is incorporated by reference from **Note 10, 'Commitments and Contingencies'**[167](index=167&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from its latest Annual Report - There have been **no material changes** to risk factors since the last Annual Report[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - **None reported** for the period[169](index=169&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - **None reported**[170](index=170&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[171](index=171&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No director or executive officer trading arrangements were adopted, modified, or terminated during the quarter - No director or executive officer trading plans (Rule 10b5-1) were **adopted, modified, or terminated** in Q1 2025[172](index=172&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required certifications and data files - Lists filed exhibits, including **CEO/CFO certifications** and XBRL data[173](index=173&type=chunk)
Ingram Micro Holding Corporation(INGM) - 2025 Q1 - Quarterly Results
2025-05-08 20:13
[First Quarter 2025 Financial Highlights](index=1&type=section&id=Ingram%20Micro%20Reports%20Fiscal%20First%20Quarter%202025%20Financial%20Results) [Overview & Management Commentary](index=1&type=section&id=1.1%20Overview%20%26%20Management%20Commentary) Ingram Micro reported strong Q1 2025 results with **$12.3 billion** net sales and **$0.61** non-GAAP EPS, reflecting strategic execution Q1 2025 Performance vs. Guidance | Metric | Actual Result | Guidance Range | | :--- | :--- | :--- | | Net Sales (Millions) | $12,281 | $11,425 - $11,825 | | Gross Profit (Millions) | $828.8 | $785 - $835 | | Non-GAAP Diluted EPS ($) | $0.61 | $0.51 - $0.61 | - Management attributes the strong performance to proven execution during market volatility and targeted investments in automation and the AI-powered Xvantage platform[2](index=2&type=chunk) - The company repaid an incremental **$125 million** of its term loan during the quarter[3](index=3&type=chunk) - The quarterly dividend was increased by **2.7%** to **$0.076** per share[3](index=3&type=chunk) [Consolidated Financial Results](index=2&type=section&id=1.2%20Consolidated%20Fiscal%20First%20Quarter%202025%20Financial%20Highlights) Consolidated net sales rose **8.3%** to **$12.3 billion**, with gross margin declining to **6.75%** but operating income increasing to **$200.9 million** Consolidated Financials (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Millions) | $12,280.8 | $11,334.9 | +8.3% | | Gross Profit (Millions) | $828.8 | $834.9 | -0.7% | | Gross Margin (%) | 6.75% | 7.37% | -62 bps | | Income from Operations (Millions) | $200.9 | $170.1 | +18.1% | | Net Income (Millions) | $69.2 | $49.6 | +39.5% | | Non-GAAP Net Income (Millions) | $144.2 | $135.2 | +6.6% | | Diluted EPS ($) | $0.29 | $0.22 | +31.8% | | Non-GAAP Diluted EPS ($) | $0.61 | $0.61 | 0.0% | - The year-over-year decrease in gross margin was driven by a sales mix shift towards lower-margin client/endpoint solutions, large enterprise customers, and the lower-margin Asia-Pacific region[5](index=5&type=chunk) - Foreign currency translation had a negative impact of approximately **2.4%** on the year-over-year net sales comparison[5](index=5&type=chunk) - Cash used in operations was **$200.4 million**, compared to **$100.3 million** in the prior year, partly due to a strategic investment in inventory ahead of potential cost increases[6](index=6&type=chunk) [Regional Performance](index=3&type=section&id=Regional%20Fiscal%20First%20Quarter%202025%20Financial%20Highlights) [North America](index=3&type=section&id=2.1%20North%20America) North America net sales grew **9.8%** to **$4.4 billion**, with operating income increasing to **$84.4 million** and margin improving to **1.90%** North America Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales (Billions) | $4.4 | $4.0 | | Income from Operations (Millions) | $84.4 | $59.9 | | Operating Margin (%) | 1.90% | 1.48% | - Sales growth was driven by client and endpoint solutions (PCs, tablets) and advanced solutions (server, infrastructure software, cybersecurity), as well as cloud-based solutions[7](index=7&type=chunk) [EMEA](index=3&type=section&id=2.2%20EMEA) EMEA net sales increased **0.6%** to **$3.4 billion**, with operating income rising to **$57.3 million** and margin improving to **1.67%** EMEA Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales (Billions) | $3.4 | $3.4 | | Income from Operations (Millions) | $57.3 | $49.0 | | Operating Margin (%) | 1.67% | 1.44% | - Foreign currency translation had an approximate **2%** negative impact on year-over-year net sales[9](index=9&type=chunk) [Asia-Pacific](index=3&type=section&id=2.3%20Asia-Pacific) Asia-Pacific net sales grew **20.1%** to **$3.6 billion**, but operating income declined to **$46.3 million** due to mix shift and competition Asia-Pacific Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales (Billions) | $3.6 | $3.0 | | Income from Operations (Millions) | $46.3 | $50.6 | | Operating Margin (%) | 1.28% | 1.68% | - The decrease in operating margin was primarily due to a mix shift towards the lower-margin China market, a higher concentration of mobility sales, and a competitive market in India[12](index=12&type=chunk) [Latin America](index=4&type=section&id=2.4%20Latin%20America) Latin America net sales decreased **8.5%** to **$0.8 billion** due to currency, while operating income remained stable at **$23.0 million** Latin America Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales (Billions) | $0.8 | $0.9 | | Income from Operations (Millions) | $23.0 | $24.5 | | Operating Margin (%) | 2.86% | 2.78% | - The **8.5%** decrease in net sales was primarily driven by an **8.2%** negative impact from currency translation rates[13](index=13&type=chunk) [Business Outlook and Shareholder Returns](index=4&type=section&id=Business%20Outlook%20and%20Shareholder%20Returns) [Fiscal Second Quarter 2025 Outlook](index=4&type=section&id=3.1%20Fiscal%20Second%20Quarter%202025%20Outlook) Q2 2025 outlook projects net sales between **$11.765 billion** and **$12.165 billion**, with non-GAAP diluted EPS between **$0.53** and **$0.63** Q2 2025 Guidance | Metric | Low | High | | :--- | :--- | :--- | | Net sales (Millions) | $11,765 | $12,165 | | Gross profit (Millions) | $800 | $850 | | Non-GAAP Diluted EPS ($) | $0.53 | $0.63 | - The Q2 2025 guidance assumes an effective non-GAAP tax rate of approximately **29%** and **235.2 million** diluted shares outstanding[16](index=16&type=chunk) [Dividend](index=4&type=section&id=3.2%20Dividend) The board approved a **2.7%** increase in quarterly cash dividend to **$0.076** per share, payable June 3, 2025 - The Board of Directors declared a cash dividend of **$0.076** per share, a **2.7%** increase from the prior quarterly dividend of **$0.074**[17](index=17&type=chunk) - The dividend is payable on June 3, 2025, to stockholders of record as of May 20, 2025[17](index=17&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=4.1%20Condensed%20Consolidated%20Balance%20Sheets) Total assets were **$18.63 billion** as of March 29, 2025, with liabilities decreasing to **$14.77 billion** and equity increasing to **$3.86 billion** Key Balance Sheet Items | Account | March 29, 2025 (Thousands) | December 28, 2024 (Thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $881,637 | $918,401 | | Inventory | $5,036,283 | $4,699,483 | | Total current assets | $15,648,116 | $15,801,177 | | Total assets | $18,628,470 | $18,779,690 | | Accounts payable | $9,616,860 | $10,005,824 | | Long-term debt | $3,031,637 | $3,168,280 | | Total liabilities | $14,765,767 | $15,045,815 | | Total stockholders' equity | $3,862,703 | $3,733,875 | [Condensed Consolidated Statements of Income](index=8&type=section&id=4.2%20Condensed%20Consolidated%20Statements%20of%20Income) Net sales reached **$12.28 billion**, with gross profit at **$828.8 million**; operating income rose to **$200.9 million**, and net income increased **39.5%** Income Statement Summary (Thirteen Weeks Ended) | Account | March 29, 2025 (Thousands) | March 30, 2024 (Thousands) | | :--- | :--- | :--- | | Net sales | $12,280,843 | $11,334,934 | | Gross profit | $828,762 | $834,938 | | Income from operations | $200,864 | $170,121 | | Income before income taxes | $100,403 | $76,681 | | Net income | $69,189 | $49,552 | | Diluted earnings per share ($) | $0.29 | $0.22 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=4.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operations was **$200.4 million**, primarily due to working capital changes, while financing activities provided **$96.8 million** Cash Flow Summary (Thirteen Weeks Ended) | Activity | March 29, 2025 (Thousands) | March 30, 2024 (Thousands) | | :--- | :--- | :--- | | Cash used in operating activities | ($200,430) | ($100,266) | | Cash provided by investing activities | $58,291 | $24,107 | | Cash provided by financing activities | $96,759 | $3,516 | | Decrease in cash and cash equivalents | ($36,764) | ($90,913) | - Key financing activities included a **$125 million** repayment of Term Loans and paying **$17.4 million** in dividends[32](index=32&type=chunk) [Supplemental Information](index=10&type=section&id=Supplemental%20Information) [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=5.1%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, showing adjustments for items like amortization and restructuring costs Reconciliation of Net Income to Non-GAAP Net Income (Q1 2025) | Description | Amount (Thousands) | | :--- | :--- | | **Net income (GAAP)** | **$69,189** | | Amortization of intangibles | $21,430 | | Restructuring costs | $1,933 | | Net foreign currency exchange loss | $23,717 | | Integration, transition and operational improvement costs | $34,083 | | Other adjustments (compensation, etc.) | $19,582 | | Tax impact of adjustments | ($25,754) | | **Non-GAAP Net Income** | **$144,180** | Reconciliation of GAAP EPS to Non-GAAP EPS (Q1 2025) | Description | Per Share Amount ($) | | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.29** | | Amortization of intangibles | $0.09 | | Restructuring costs | $0.01 | | Net foreign currency exchange loss | $0.10 | | Integration, transition and operational improvement costs | $0.15 | | Other adjustments (compensation, etc.) | $0.08 | | Tax impact of adjustments | ($0.11) | | **Non-GAAP Diluted EPS** | **$0.61** | - The company states it is unable to provide a reconciliation for its forward-looking non-GAAP EPS guidance because certain items are difficult to predict and estimate[41](index=41&type=chunk)
Kirby McInerney LLP Announces Investigation Against Ingram Micro Holding Corporation (INGM) on Behalf of Investors
NewsfilterĀ· 2025-03-08 01:00
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]
Ingram Micro Holding Corporation(INGM) - 2024 Q4 - Annual Report
2025-03-05 16:10
Part I [Business Overview](index=5&type=section&id=Item%201.%20Business) Ingram Micro is a global IT solutions provider focused on digital transformation, emerging technologies, and operational efficiency, with international operations generating **66% of FY2024 net sales** - Ingram Micro is a leading global IT solutions provider with four reportable geographic segments: North America, EMEA, Asia-Pacific, and Latin America[22](index=22&type=chunk) - The company's strategic priorities focus on digital transformation through its Xvantage platform, growth in emerging technologies like cybersecurity and AI, and enhancing profitability via operational improvements and automation[26](index=26&type=chunk) - International operations are a significant part of the business, generating approximately **66% of consolidated net sales** in Fiscal Year 2024[38](index=38&type=chunk) Key Supplier Concentration (FY2024) | Vendor | Percentage of Consolidated Net Sales | | :--- | :--- | | Apple Inc. | ~19% | | HP Inc. | ~10% | - As of December 28, 2024, the company had approximately **23,500 full-time associates** and utilized about **5,250 temporary workers**[44](index=44&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from internal control weaknesses, Xvantage platform development, substantial indebtedness, geopolitical tensions, and the influence of its controlling shareholder - The company has identified **material weaknesses in its internal control over financial reporting**, which could adversely affect investor confidence and the stock price[59](index=59&type=chunk)[191](index=191&type=chunk) - Significant resources are being invested in the Ingram Micro Xvantage digital platform; its success is critical, and failure could adversely impact the business[61](index=61&type=chunk) - The company's **substantial indebtedness** requires a significant portion of cash flows for debt service, potentially limiting operational funding and strategic acquisitions[127](index=127&type=chunk)[128](index=128&type=chunk) - Platinum Equity controls approximately **90% of the voting power**, making Ingram Micro a "controlled company" exempt from certain NYSE corporate governance requirements, which may create conflicts of interest[180](index=180&type=chunk)[183](index=183&type=chunk) - The business is exposed to geopolitical risks, including U.S.-China trade tensions and tariffs, which could increase product prices and impact demand; net sales in China were **$4.0 billion** in Fiscal Year 2024[97](index=97&type=chunk)[110](index=110&type=chunk) [Cybersecurity](index=48&type=section&id=Item%201C.%20Cybersecurity) The company maintains a formal data protection program aligned with NIST and ISO 27001, overseen by the board and Audit Committee, with no material cybersecurity incidents reported - The company has a formal data protection program based on the NIST Cybersecurity Framework and ISO 27001, which is regularly reviewed and audited[218](index=218&type=chunk) - Cybersecurity governance includes oversight from the full board of directors and the Audit Committee, with a CISO leading the program and reporting directly to the board as needed[223](index=223&type=chunk) - No cybersecurity threats or incidents, individually or in aggregate, have materially affected the company during the periods covered by this report[222](index=222&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) The company occupies **281 facilities globally**, totaling **12.6 million square feet**, primarily leased, with its corporate headquarters in Irvine, California - The company occupies **281 facilities** totaling **12.6 million square feet**, with the vast majority being leased[223](index=223&type=chunk) - Facilities are distributed across its geographic regions: North America (**35**), EMEA (**98**), Asia-Pacific (**116**), and Latin America (**32**)[223](index=223&type=chunk) [Legal Proceedings](index=49&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings, none of which are expected to have a material adverse effect beyond financial statement disclosures - The company is involved in routine legal proceedings but does not expect them to have a material adverse effect, beyond what is disclosed in the financial statement notes[225](index=225&type=chunk) Part II [Market for Common Equity and Related Matters](index=50&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ingram Micro's common stock began trading on the NYSE in October 2024, with its IPO raising **$233.1 million** for debt repayment and a **$0.074 per share** quarterly dividend declared - The company's common stock began trading on the NYSE under the symbol "INGM" on **October 24, 2024**[227](index=227&type=chunk)[228](index=228&type=chunk) - On **March 4, 2025**, the board declared a quarterly cash dividend of **$0.074 per share**[231](index=231&type=chunk) - Net proceeds from the October 2024 IPO were approximately **$233.1 million**, which were used to repay **$233.1 million** of debt outstanding under the Term Loan Credit Facility[234](index=234&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=52&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2024 consolidated net sales were **$48.0 billion**, a **0.1% decrease**, with gross margin declining to **7.18%** and income from operations falling to **$817.9 million**, while cash from operations significantly increased to **$333.8 million** [Results of Operations](index=57&type=section&id=Results%20of%20Operations) FY2024 net sales decreased to **$48.0 billion**, with gross margin declining to **7.18%** and income from operations falling to **$817.9 million**, primarily due to mix shifts and higher restructuring costs Consolidated Financial Performance (FY2024 vs. FY2023) | Metric | Fiscal Year 2024 | Fiscal Year 2023 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $47,983.7M | $48,040.4M | ($56.7M) | (0.1)% | | Gross Profit | $3,444.9M | $3,547.1M | ($102.2M) | (2.9)% | | Gross Margin | 7.18% | 7.38% | (20 bps) | N/A | | Income from Operations | $817.9M | $944.3M | ($126.4M) | (13.4)% | | Operating Margin | 1.70% | 1.97% | (27 bps) | N/A | | Net Income | $264.2M | $352.7M | ($88.5M) | (25.1)% | Net Sales by Segment (FY2024 vs. FY2023) | Segment | FY2024 Sales | FY2023 Sales | Change (%) | | :--- | :--- | :--- | :--- | | North America | $17,373.0M | $18,195.7M | (4.5)% | | EMEA | $14,260.3M | $14,481.1M | (1.5)% | | Asia-Pacific | $12,756.8M | $11,573.5M | 10.2% | | Latin America | $3,593.6M | $3,790.2M | (5.2)% | - The decrease in gross margin was driven by a sales mix shift from higher-margin advanced solutions to lower-margin client and endpoint solutions, particularly in North America and EMEA, and a geographic shift towards the lower-margin Asia-Pacific region[276](index=276&type=chunk) - Restructuring costs increased to **$38.4 million** in FY2024 from **$18.8 million** in FY2023, related to efforts to enhance organizational efficiency[278](index=278&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) FY2024 cash from operations significantly increased to **$333.8 million**, total debt decreased to **$3.35 billion**, and the company maintained strong liquidity with a **$3.5 billion** undrawn ABL facility Cash Flow Summary (FY2024 vs. FY2023) | Cash Flow Activity | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Operating Activities | $333.8M | $58.8M | | Investing Activities | $105.5M | ($17.7M) | | Financing Activities | ($391.3M) | ($477.9M) | - Total debt was **$3.35 billion** as of December 28, 2024, down from **$3.92 billion** at the end of the prior year[452](index=452&type=chunk) - The company has a **$3.5 billion** ABL Revolving Credit Facility, which was undrawn as of December 28, 2024, with its maturity extended to September 2029[301](index=301&type=chunk)[456](index=456&type=chunk) - As of December 28, 2024, cash and cash equivalents totaled **$918.4 million**, with approximately **93%** residing in operations outside of the United States[295](index=295&type=chunk) [Critical Accounting Estimates](index=65&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgments in revenue recognition, inventory valuation, business combinations, goodwill impairment, and income tax estimations - Key critical accounting estimates include revenue recognition, inventory valuation, business combinations, goodwill impairment, and income taxes[311](index=311&type=chunk)[312](index=312&type=chunk) - Revenue is recognized when control of products transfers to customers, with service revenues, including from the CloudBlue platform, representing less than **10% of total net sales**[314](index=314&type=chunk)[315](index=315&type=chunk) - Goodwill is tested for impairment annually in the fourth quarter, with no impairment charges recorded in FY2024 or FY2023[322](index=322&type=chunk)[324](index=324&type=chunk) [Market Risk Disclosures](index=68&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency and interest rate risks through derivatives, with a VaR of **$551,000** for currency risk and a **$9.1 million to $9.3 million** impact for a 1% interest rate change - The company uses forward contracts to manage foreign currency exchange risk, with a Value-at-Risk (VaR) model estimating the maximum potential one-day loss in fair value at **$551,000** as of December 28, 2024[331](index=331&type=chunk)[332](index=332&type=chunk) - A hypothetical **1% change in interest rates** would impact annual interest expense by approximately **$9.1 million to $9.3 million** due to variable-rate debt exposure[333](index=333&type=chunk) - To mitigate interest rate risk, the company has entered into interest rate cap agreements to establish an upper limit on the SOFR interest rate for a substantial portion of its Term Loan Credit Facility borrowings[334](index=334&type=chunk) [Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited consolidated financial statements are presented under U.S. GAAP, with key notes detailing policies, debt, segments, and contingencies, including a disclosed fraudulent activity in India leading to Q1 2024 revisions Consolidated Financial Highlights | (In thousands) | Dec 28, 2024 | Dec 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | $15,801,177 | $15,354,317 | | Total Assets | $18,779,690 | $18,420,314 | | **Liabilities & Equity** | | | | Total Current Liabilities | $11,306,531 | $10,663,131 | | Total Liabilities | $15,045,815 | $14,914,025 | | Total Stockholders' Equity | $3,733,875 | $3,506,289 | - Note 17 discloses fraudulent activity within the India Professional Services business, which resulted in misstatements of net sales, cost of sales, and other accounts, leading to a revision of the Q1 2024 statements[538](index=538&type=chunk)[539](index=539&type=chunk) - Note 8 details restructuring costs of **$38.4 million** in FY2024, primarily for employee termination benefits related to headcount reductions aimed at enhancing organizational efficiency[479](index=479&type=chunk)[480](index=480&type=chunk) - Note 9 outlines significant contingent liabilities, including tax assessments in Brazil totaling a reasonably possible loss of **R$843 million ($136 million)** and a tax assessment in Saudi Arabia with a reasonably possible loss of **SAR 160 million ($42.6 million)**[485](index=485&type=chunk)[490](index=490&type=chunk) [Controls and Procedures](index=114&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of December 28, 2024, due to two material weaknesses in internal control over financial reporting, with a remediation plan underway - Management identified **two material weaknesses** in internal control over financial reporting as of December 28, 2024[558](index=558&type=chunk) - The weaknesses are: 1) an ineffective risk assessment process for evolving business areas, and 2) inadequate controls for identifying and accounting for multi-period software license agreements[558](index=558&type=chunk) - Due to these material weaknesses, the principal executive and financial officers concluded that disclosure controls and procedures were not effective[555](index=555&type=chunk) - A remediation plan is underway, involving policy revisions and additional training, to address the identified weaknesses[560](index=560&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=116&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company's leadership includes CEO Paul Bay, with Platinum Equity's majority ownership classifying it as a "controlled company" and exempting it from certain NYSE governance requirements - The company's leadership includes CEO Paul Bay and Chairperson of the Board Alain MoniƩ[566](index=566&type=chunk) - Ingram Micro is a "controlled company" under NYSE rules because Platinum Equity holds a majority of the voting power, exempting it from certain governance requirements[607](index=607&type=chunk)[613](index=613&type=chunk) - The board has determined that directors Felicia Alvaro, Jakki Haussler, Leslie Heisz, and Sharon Wienbar are independent[608](index=608&type=chunk) [Executive Compensation](index=126&type=section&id=Item%2011.%20Executive%20Compensation) FY2024 executive compensation was performance-based, with the EIP funded at **74.19% of target**, and new equity awards granted under the 2024 Stock Incentive Plan following the IPO NEO Summary Compensation (FY2024) | Name | Position | Total Compensation ($) | | :--- | :--- | :--- | | Paul Bay | CEO | 17,463,003 | | Michael Zilis | CFO | 12,235,825 | | Scott Sherman | EVP, Human Resources | 8,687,935 | | Augusto Aragone | EVP, Secretary & General Counsel | 7,934,258 | | Alain MoniƩ | Former Executive Chairman | 2,377,159 | - The 2024 Annual Executive Incentive Program (EIP) was funded at **74.19% of target**, based on achieving non-GAAP EBITDAR of **$1.301 billion** against a target of **$1.410 billion**[655](index=655&type=chunk)[657](index=657&type=chunk) - In connection with the IPO, the company terminated its 2021 Participation Plan and granted new time-based (RSUs) and performance-based (PSUs) restricted stock units under the new 2024 Stock Incentive Plan[637](index=637&type=chunk)[662](index=662&type=chunk) - The company maintains an Executive Change in Control Severance Plan with "double-trigger" benefits and an Executive Officer Severance Policy for terminations without cause outside of a change-in-control context[674](index=674&type=chunk)[678](index=678&type=chunk) [Security Ownership](index=151&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of February 25, 2025, Platinum Equity, LLC affiliates beneficially owned **89.8%** of the company's common stock, while executive officers and directors as a group owned less than **1%** - As of February 25, 2025, investment vehicles affiliated with Platinum Equity, LLC beneficially own **210,952,854 shares**, representing **89.8%** of the company's common stock[722](index=722&type=chunk)[725](index=725&type=chunk) - All executive officers and directors as a group beneficially own **2,045,955 shares**, representing less than **1%** of the class[722](index=722&type=chunk) - Under the 2024 Stock Incentive Plan, **3,601,768 securities** are to be issued upon vesting of outstanding awards, and **15,920,477 securities** remain available for future issuance as of December 28, 2024[723](index=723&type=chunk) [Related Party Transactions](index=153&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company has key agreements with controlling stockholder Platinum Equity, including an Investor Rights Agreement and a terminated Corporate Advisory Services Agreement, with related party transactions reviewed by the Audit Committee - The company has an Investor Rights Agreement with Platinum, granting it the right to nominate a majority of the board of directors as long as it owns at least **50%** of the stock[726](index=726&type=chunk) - A Corporate Advisory Services Agreement with Platinum Advisors was terminated upon the IPO, with the company paying **$20.4 million** in fees under this agreement in Fiscal Year 2024[728](index=728&type=chunk) - The company has adopted a written policy requiring the Audit Committee to review and approve or ratify related person transactions[735](index=735&type=chunk) [Principal Accountant Fees and Services](index=155&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) PricewaterhouseCoopers LLP billed **$16.8 million** in total fees for FY2024, a significant increase driven by **$15.3 million** in audit fees related to IPO and registration services Accountant Fees (FY2024 vs. FY2023) | Service Type | 2024 Fees | 2023 Fees | | :--- | :--- | :--- | | Audit | $15,305,635 | $9,539,540 | | Audit-Related | $250,000 | $143,505 | | Tax | $1,246,644 | $1,381,428 | | **Total** | **$16,802,279** | **$11,064,473** | - The Audit Committee has established policies for pre-approving all audit and non-audit services provided by the independent accounting firm[740](index=740&type=chunk)