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Ingram Micro Holding Corporation(INGM) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net sales reached 13.3billion,a2.513.3 billion, a 2.5% increase year-over-year, with a 3.3% increase on an FX neutral basis[3] - Fourth quarter net income was 83.1 million, with non-GAAP net income of 213.1million,resultingindilutedEPSof213.1 million, resulting in diluted EPS of 0.36 and non-GAAP diluted EPS of 0.92[3]Fullyearnetsalestotaled0.92[3] - Full year net sales totaled 48.0 billion, a slight decrease of 0.1% from the prior fiscal year, impacted by foreign currency translation[20] - Net sales for fiscal year 2024 were 47,983,671,adecreaseof2.247,983,671, a decrease of 2.2% compared to 48,040,364 in 2023[45] - Net income for fiscal year 2024 was 264,222,adeclineof25264,222, a decline of 25% from 352,712 in 2023[45] - Basic and diluted earnings per share for fiscal year 2024 were both 1.18,comparedto1.18, compared to 1.59 in 2023, representing a decrease of 26%[45] - The company reported a net income of 83,116,000forthethirteenweeksendedDecember28,2024,downfrom83,116,000 for the thirteen weeks ended December 28, 2024, down from 136,524,000 in the same period of 2023[55] Cash Flow and Capital Expenditures - Full year adjusted free cash flow was 443.3million,withcashprovidedbyoperationstotaling443.3 million, with cash provided by operations totaling 333.8 million[3] - Cash provided by operations increased significantly to 333.8millionfrom333.8 million from 58.8 million in the prior fiscal year[25] - Capital expenditures for fiscal year 2024 were 142,703,downfrom142,703, down from 201,535 in 2023[48] - Capital expenditures for the fiscal year ended December 28, 2024, were 142,703,000,comparedto142,703,000, compared to 201,535,000 in 2023[57] Profitability Metrics - Gross profit for the fourth quarter was 936.1million,withagrossmarginof7.01936.1 million, with a gross margin of 7.01%, down from 7.52% in the prior year[6] - Income from operations for the fourth quarter was 248.5 million, with an income from operations margin of 1.86%, down from 2.54% in the prior year[6] - Adjusted EBITDA for the fourth quarter was 418.1million,comparedto418.1 million, compared to 435.4 million in the prior year[6] - Adjusted EBITDA was 1,318.6million,downfrom1,318.6 million, down from 1,353.1 million in the prior year[25] - Income from operations margin decreased to 1.70% from 1.97% in the prior fiscal year, primarily due to a shift towards lower-margin solutions[25] - Adjusted EBITDA for the fiscal year ended December 28, 2024, was 1,318,634,000,down2.51,318,634,000, down 2.5% from 1,353,092,000 in the previous year[52] Regional Sales Performance - North America net sales increased to 4.7billion,drivenbystrengthinPCs,server,andstorage,whileEMEAnetsalesdecreasedby1.54.7 billion, driven by strength in PCs, server, and storage, while EMEA net sales decreased by 1.5% to 4.1 billion[7][10] - Asia-Pacific net sales increased to 12.8billionfrom12.8 billion from 11.6 billion year-over-year, driven by growth in smartphones and consumer electronics[25] - Latin America net sales decreased to 3.6billionfrom3.6 billion from 3.8 billion, impacted by declines in advanced solutions[28] - Income from operations margin in Latin America improved to 3.33% from 2.47% due to stronger gross margins and effective expense management[30] Shareholder Returns - The company declared a cash dividend of 0.074pershare,payableonMarch25,2025[3]Asharerepurchaseplanofupto0.074 per share, payable on March 25, 2025[3] - A share repurchase plan of up to 75 million has been approved, expiring on February 26, 2026[33] Guidance and Future Outlook - Fiscal first quarter 2025 guidance for net sales is projected between 11,425millionand11,425 million and 11,825 million, with non-GAAP diluted EPS guidance of 0.51to0.51 to 0.61[31] - The company plans to focus on restructuring costs and integration initiatives to align its cost structure in certain markets moving forward[50] - The company is unable to provide a reconciliation of forward-looking GAAP diluted EPS to non-GAAP diluted EPS for fiscal first quarter 2025 due to unpredictability of certain information[60] - The forward-looking estimates of both GAAP and non-GAAP measures may differ materially from actual results, indicating potential volatility in future financial performance[60] Restructuring and Costs - The company incurred restructuring costs of 38,354,000forthefiscalyearendedDecember28,2024,comparedto38,354,000 for the fiscal year ended December 28, 2024, compared to 18,797,000 in 2023[52] - Integration, transition, and operational improvement costs contributed 0.26toGAAPEPSforthethirteenweeksendedDecember28,2024[58]TaximpactofpretaxadjustmentsreducedEPSby0.26 to GAAP EPS for the thirteen weeks ended December 28, 2024[58] - Tax impact of pre-tax adjustments reduced EPS by 0.14 for the thirteen weeks ended December 28, 2024[58] Foreign Currency Impact - The company reported a net foreign currency exchange loss of 22,901infiscalyear2024,comparedtoalossof22,901 in fiscal year 2024, compared to a loss of 42,070 in 2023[45] - The company reported a net foreign currency exchange loss of $0.03 for the thirteen weeks ended December 28, 2024[58]