Part I. Financial Information Item 1. Financial Statements (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 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 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) 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 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 million21 Condensed Consolidated Statements of Cash Flows 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 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 Income454648 - Total debt stood at $3.48 billion as of March 29, 2025, following a voluntary repayment of $125 million on its Term Loan Credit Facility68 - The company faces potential losses from legal proceedings, including $147.7 million in Brazil and $115.5 million in Saudi Arabia828385 - 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 May41100 Management's Discussion and Analysis of Financial Condition and Results of Operations Net sales grew 8.3% to $12.3 billion, with operating margin improving to 1.64% despite lower gross margin Results of Operations Sales growth was driven by Asia-Pacific and North America, while operating margin improved on cost control Net Sales by Region | Region | Net Sales Q1 2025 ($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 categories120 - Operating income margin increased by 14 basis points YoY to 1.64%, primarily due to lower SG&A expenses and reduced restructuring costs121122123 - Asia-Pacific operating margin decreased 40 basis points due to geographic mix, a higher concentration of mobility sales, and a competitive market in India126 Liquidity and Capital Resources 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 inventory135 - Financing activities provided net cash of $96.8 million, driven by net proceeds from credit facilities, partially offset by a $125 million term loan repayment137 - The company has total financing capacity of approximately $7.5 billion, of which $3.5 billion was outstanding at quarter-end138 Quantitative and Qualitative Disclosures About Market Risk 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, 2025158 - A 1% change in interest rates would impact annual interest expense by approximately $8.2 million on variable-rate debt159 - Interest rate cap agreements used to mitigate risk on the Term Loan Credit Facility expired on March 31, 2025, and have not been renewed160 Controls and Procedures 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, 2025161 - The ineffectiveness is due to previously identified material weaknesses in the risk assessment process and controls over software license accounting163 - A remediation plan is ongoing, but no material changes to internal controls were made during the quarter165166 Part II. Other Information Legal Proceedings 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 Risk Factors 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 Report168 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None reported for the period169 Defaults Upon Senior Securities The company reported no defaults upon senior securities - None reported170 Mine Safety Disclosures This item is not applicable to the company - Not applicable171 Other Information 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 2025172 Exhibits 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 data173
Ingram Micro Holding Corporation(INGM) - 2025 Q1 - Quarterly Report