Financial Performance - Net sales for the thirteen weeks ended September 28, 2024, were $11,762,628, a decrease of 1.4% compared to $11,925,373 for the same period in 2023[9] - Gross profit for the thirteen weeks ended September 28, 2024, was $845,492, down from $854,844 in the prior year, reflecting a gross margin of approximately 7.2%[9] - Net income for the thirteen weeks ended September 28, 2024, was $76,969, a decrease of 11.3% from $86,783 in the same period last year[11] - Basic and diluted earnings per share for the thirteen weeks ended September 28, 2024, were $0.35, compared to $0.39 for the same period in 2023[9] - Operating expenses for the thirteen weeks ended September 28, 2024, were $627,318, slightly up from $623,352 in the prior year[9] - Income from operations for the thirteen weeks ended September 28, 2024, was $218,174, up from $212,402 in 2023, representing a 2.0% increase[82] Equity and Liabilities - Total stockholders' equity increased to $3,613,905 as of September 28, 2024, from $3,506,289 at December 30, 2023[7] - The company reported total liabilities and stockholders' equity of $18,562,723 as of September 28, 2024, compared to $18,420,314 at December 30, 2023[7] - Total debt decreased to $3,838,451 million from $3,923,608 million, with a significant repayment of $150,000 million on the Term Loan Credit Facility[65] Cash Flow and Capital Expenditures - Cash provided by operating activities for the quarter was $23,878,000, a decrease from $59,764,000 in the prior year, indicating a decline of approximately 60%[20] - Total capital expenditures for the quarter were $106,643,000, down from $164,986,000 in the same period last year, showing a reduction of about 35%[20] - Capital expenditures for the thirteen weeks ended September 28, 2024, totaled $36,972, a decrease of 39.2% from $60,779 in the same period of 2023[82] Foreign Currency and Adjustments - The company experienced a foreign currency translation adjustment gain of $85,371 for the thirteen weeks ended September 28, 2024, compared to a loss of $107,689 in the same period last year[11] - The company reported a foreign currency translation adjustment loss of $107,689,000 for the quarter ended September 30, 2023[16] - The company recorded a net foreign currency exchange loss of $9,322 for the thirteen weeks ended September 28, 2024, compared to a loss of $10,033 for the same period in 2023[51] Tax and Legal Matters - The effective tax rate for the Thirteen Weeks Ended September 28, 2024, was 35.4%, up from 27.9% for the same period in 2023[70] - The Brazilian subsidiary faces tax assessments totaling Brazilian Reais 40,606 ($7,460) in principal and penalties, with a reasonably possible loss of Brazilian Reais 764,917 ($140,530)[75] - The company has recorded a contingent liability related to a fine of €19,500 imposed by the French Competition Authority, with approximately $20,000 already paid[75] - The company is involved in various ongoing legal claims and investigations, which may materially affect its financial condition and results of operations[73] Market Strategy and Operations - The company plans to continue expanding its market presence and integrating new technologies into its platform[5] - The company is focused on retaining key personnel and adapting to industry changes, including supply constraints in technology categories[5] - The company operates in four geographic segments: North America, EMEA, Asia-Pacific, and Latin America, with segment profit measured by income from operations[78] Shareholder Returns - The company declared dividends of $10,462,000 in the previous year, which decreased to $6,174,000 in the current year, indicating a reduction of about 41%[20] - Cash dividends paid to minority interest stockholders were $6,174 for the thirty-nine weeks ended September 28, 2024, compared to $10,462 for the same period in 2023[34] Employee Compensation and Awards - The company recognized compensation expense for cash awards amounting to $6,087 for the thirteen weeks ended September 28, 2024, compared to $6,057 for the same period in 2023[44] - As of September 28, 2024, the unrecognized compensation costs related to cash awards were $39,328, expected to be recognized over a remaining weighted-average period of approximately 1.6 years[44] - Ingram Micro reported a total of 67,598 cash awards non-vested as of December 30, 2023, with 1,895 granted and 851 vested by March 30, 2024, resulting in 67,316 non-vested awards[43] Interest Rate Exposure - Company is exposed to interest rate changes on long-term debt, with a potential annual expense increase of approximately $8,817 or decrease of $12,600 for a 1% change in interest rates[143] - Each one-eighth percentage point change in interest rates would result in a change of approximately $5,825 in annual interest expense under the Term Loan Credit Facility and ABL Credit Facilities[143] - Company aims to finance its business at competitive interest rates while moderating exposure to interest cost volatility[143] - Following the cessation of LIBOR on June 30, 2023, the company amended agreements to establish a 5.317% upper limit on SOFR interest rates[143] Miscellaneous - The company revised its cash flow statement for the thirty-nine weeks ended September 30, 2023, to correct previously identified errors[39] - The company completed an IPO on October 25, 2024, issuing 11,600,000 shares at $22.00 per share, resulting in net proceeds of approximately $233,110 after expenses[87]
Ingram Micro Holding Corporation(INGM) - 2024 Q3 - Quarterly Report