Insight Enterprises(US:NSIT)2021-11-04 16:22Financial Performance - Total net sales for the three months ended September 30, 2021, were $2,447,521, an increase of 26.4% compared to $1,936,478 for the same period in 2020[17] - Net earnings for the three months ended September 30, 2021, were $55,483, up 42.5% from $38,906 in the same period of 2020[17] - Basic net earnings per share for the three months ended September 30, 2021, were $1.59, compared to $1.11 for the same period in 2020, reflecting a 43.2% increase[17] - Total comprehensive income for the nine months ended September 30, 2021, was $150,984 thousand, up from $121,532 thousand in 2020, reflecting a growth of 24.2%[20] - For the nine months ended September 30, 2021, total consolidated revenue was $6,870,090,000, up from $6,049,264,000 in 2020, marking a growth of about 13.6%[82] Profitability - Gross profit for the nine months ended September 30, 2021, was $1,062,702, representing a 10.9% increase from $957,288 in the same period of 2020[17] - Gross profit for the three months ended September 30, 2021, was $364,545,000, compared to $323,282,000 in 2020, indicating a growth of approximately 13%[84] - Earnings from operations for the three months ended September 30, 2021, were $83,151,000, compared to $74,269,000 in 2020, representing an increase of approximately 12%[84] - The gross margin for the third quarter of 2021 contracted approximately 100 basis points to 14.9% of net sales[90] - Gross profit margin for Q3 2021 was 14.9%, down from 15.9% in Q3 2020, primarily due to increased costs of goods sold[103] Assets and Liabilities - Total current assets increased to $3,322,992 as of September 30, 2021, from $3,176,450 as of December 31, 2020, marking a growth of 4.6%[15] - Total liabilities decreased slightly to $2,986,456 as of September 30, 2021, from $2,968,303 as of December 31, 2020[15] - Total long-term debt as of September 30, 2021, was $527,499,000, up from $437,581,000 as of December 31, 2020, indicating an increase of about 20.5%[45] - The company reported an increase in accounts receivable to $2,754,153 as of September 30, 2021, from $2,685,448 as of December 31, 2020, indicating a rise of 2.6%[15] - Cash, cash equivalents, and restricted cash at the end of the period were $109,495 thousand, an increase from $77,147 thousand at the end of the same period in 2020[27] Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2021, showed a net cash used of $117,788 thousand, a significant decrease compared to $462,094 thousand provided in the same period of 2020[27] - Capital expenditures were $28.0 million for the nine months ended September 30, 2021, compared to $20.7 million for the same period in 2020[153] - The company had net borrowings under its ABL facility of $82.0 million during the nine months ended September 30, 2021, compared to net repayments of $570.9 million during the same period in 2020[153] Strategic Initiatives - The company anticipates continued growth in its global cloud business and scalable solutions as part of its strategic initiatives[10] - The company plans to utilize cash flow from operations for working capital, debt repayment, capital expenditures, and acquisitions[10] - The company expects significant impacts on its consolidated financial statements following the adoption of new accounting standards effective January 1, 2022[38] - The company expects to manage inflation effects and interest rate increases while continuing to focus on acquisitions and market expansion[10] Market Performance - North America accounted for $5,434,286,000 of total revenue for the nine months ended September 30, 2021, which is approximately 79% of the consolidated revenue[82] - The large enterprise/corporate client group generated $4,788,357,000 in revenue for the nine months ended September 30, 2021, representing a significant portion of total sales[82] - In North America, net sales increased 30% to $2.02 billion in Q3 2021, driven by a 38% increase in hardware sales[106] - EMEA net sales increased 12% to $381.4 million in Q3 2021, with hardware sales up 16% year-over-year[109] - APAC net sales increased 25% to $46.2 million in Q3 2021, with hardware sales surging 110%[112] Stock and Financing Activities - The company repurchased common stock amounting to $50,000 thousand during the nine months ended September 30, 2021, compared to $25,000 thousand in the same period of 2020[27] - The ABL revolving credit facility had an outstanding balance of $222,000,000 as of September 30, 2021, with a maximum borrowing capacity of $1,200,000,000[46] - The company sold warrants to purchase 5,123,160 shares at a price of $103.12 per share, receiving approximately $34,440,000 in proceeds[56] - The company entered into an unsecured inventory financing facility in Canada with a maximum borrowing capacity of $25,000,000[58] Other Financial Metrics - The effective interest rate on the liability component of the notes is 4.325%[53] - The company has unrecognized tax benefits of approximately $11,579,000 as of September 30, 2021[63] - The company has made a policy election to settle the par value of the Notes in cash, with only the conversion spread settled in shares[50] - Interest expense related to the Notes includes contractual coupon interest and amortization of debt discount and issuance costs for the three and nine months ended September 30, 2021[54]