TEMPE, Ariz.--(BUSINESS WIRE)--Insight Enterprises, Inc. (Nasdaq: NSIT) (the “Company”) today reported financial results for the quarter ended September 30, 2019 and compared the results to the quarter ended September 30, 2018:



  • Net sales increased 9% to $1.91 billion


  • Gross profit increased 18% to $276.2 million


  • Gross margin increased 100 basis points to 14.4%


  • Earnings from operations decreased 11% to $44.4 million


  • Adjusted earnings from operations increased 7% to $58.9 million


  • Diluted earnings per share of $0.76 decreased 15% year to year


  • Adjusted diluted earnings per share of $1.10 increased 10% year over year

In the third quarter of 2019, net sales increased 9%, gross profit increased 18% and gross margin increased 100 basis points compared to the third quarter of 2018. The increase in net sales is primarily the result of our acquisition of PCM, Inc. (“PCM”) on August 30, 2019. The increase in gross profit and gross margin primarily reflects an increase in higher margin services net sales, including cloud solutions, reported in the Company’s legacy business and higher margins from PCM net sales. Earnings from operations decreased 11% and diluted earnings per share decreased 15%, year to year, as a result of acquisition-related and restructuring expenses incurred in the quarter compared to the same period in the prior year.

“Our third quarter results reflect our strategy to leverage our four solution areas to optimize our business mix in higher margin categories, including cloud solutions and services, which led to a 100 basis point improvement in gross margin in the quarter. We also closed the PCM acquisition on August 30th which expands our reach into higher margin end markets which we expect will provide opportunity to scale our business and drive additional margin improvement in the future,” stated Ken Lamneck, President and Chief Executive Officer. “Our differentiated solutions and disciplined operating model combined with PCM’s reach into the middle market will position us well to drive growth and deliver on our financial commitments as we head into 2020,” stated Lamneck.

KEY HIGHLIGHTS



  • Consolidated net sales for the third quarter of 2019 of $1.91 billion increased 9% year over year compared to the third quarter of 2018, primarily as a result of our acquisition of PCM.


    • Net sales in North America increased 10% year over year to $1.52 billion;


    • Net sales in EMEA increased 3% year over year to $355.7 million; and


    • Net sales in APAC increased 34% year over year to $41.7 million.




  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales increased 11% year over year, with an increase in net sales in North America, EMEA and APAC of 11%, 9% and 40%, respectively, year over year.


  • Consolidated gross profit increased 18% to $276.2 million compared to the third quarter of 2018, with consolidated gross margin expanding 100 basis points to 14.4% of net sales.


    • Gross profit in North America increased 22% year over year to $218.6 million (14.4% gross margin);


    • Gross profit in EMEA increased 1% year over year to $47.9 million (13.5% gross margin); and


    • Gross profit in APAC increased 16% year over year to $9.7 million (23.2% gross margin).




  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 19% year over year, with gross profit growth in North America, EMEA and APAC of 22%, 7% and 21%, respectively, year over year.


  • Consolidated earnings from operations decreased 11% compared to the third quarter of 2018 to $44.4 million, or 2.3% of net sales.


    • Earnings from operations in North America decreased 11% year to year to $39.3 million, or 2.6% of net sales, primarily as a result of acquisition-related and restructuring expenses incurred in the quarter;


    • Earnings from operations in EMEA decreased 32% year to year to $3.1 million, or 0.9% of net sales; and


    • Earnings from operations in APAC increased 60% year over year to $2.0 million, or 4.8% of net sales.




  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations decreased 10% year to year, with a decline in earnings from operations in North America and EMEA of 11% and 28%, respectively, year to year, partially offset by earnings from operations growth in APAC of 64% year over year.


  • Consolidated net earnings and diluted earnings per share for the third quarter of 2019 were $27.1 million and $0.76, respectively, at an effective tax rate of 27.2%.


  • Adjusted consolidated net earnings and Adjusted diluted earnings per share for the third quarter of 2019 were $39.6 million and $1.10, respectively.

In discussing financial results for the three months ended September 30, 2019 and 2018 in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles (“GAAP”). When referring to non-GAAP measures, the Company refers to such measures as “Adjusted.” See “Use of Non-GAAP Financial Measures” for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

In some instances the Company refers to changes in net sales, gross profit and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period.

The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.

GUIDANCE

For the full year 2019, the Company expects to deliver net sales growth between 9% and 11% compared to 2018, reflecting the acquisition of PCM for the last four months of the year. The Company’s Adjusted diluted earnings per share outlook for the full year of 2019 is between $5.45 and $5.50.

This outlook assumes:



  • an effective tax rate of 25% to 26% for Q4 2019;


  • capital expenditures of $70 to $75 million for the full year, including the planned purchase of real estate in the fourth quarter of approximately $48 million; and


  • an average share count for the full year of approximately 36.0 million shares.

This outlook does not reflect the repurchase of any further shares of the Company’s common stock, excludes acquisition-related expenses, excludes severance and restructuring expenses incurred, excludes amortization of intangible assets, and excludes amortization of convertible debt discount and issuance costs during the first nine months of 2019 and those that may be incurred during the balance of 2019. Due to the inherent difficulty of forecasting all of these types of expenses, which impact net earnings and diluted earnings per share, the Company is unable to reasonably estimate the impact of such expenses, if any, to net earnings and diluted earnings per share. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2019 forecast.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live web cast today at 9:00 a.m. ET to discuss third quarter 2019 results of operations. A live web cast of the conference call (in listen-only mode) will be available on the Company’s web site at http://investor.insight.com/, and a replay of the web cast will be available on the Company’s web site for a limited time following the call. To listen to the live web cast by telephone, call 1-877-524-8416 if located in the U.S., 412-902-1028 for international callers, and enter the access code 13695651.

USE OF NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures are referred to as “Adjusted.” Adjusted consolidated earnings from operations, Adjusted consolidated net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain acquisition-related expenses, (iii) amortization of intangible assets, and (iv) the tax effects of each of these items, as applicable. Adjusted consolidated net earnings and Adjusted diluted earnings per share also exclude amortization of debt discount and issuance costs associated with the issuance of the Company’s convertible senior notes due 2025. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company’s operating segments. Adjusted free cash flow is the Company’s net cash provided or used by operating activities adjusted for (i) purchases of property and equipment and (ii) the net borrowings or repayments under the inventory financing facilities. Adjusted return on invested capital (“ROIC”) excludes (i) severance and restructuring expenses, (ii) certain acquisition-related expenses, and (iii) the tax effects of each of these items, as applicable.

Insight has incurred amortization of intangible assets, included in its GAAP financial statements, related to various acquisitions Insight has made. The amount of an acquisition’s purchase price allocated to intangible assets and term of its related amortization can vary significantly and are unique to each acquisition; therefore Insight is excluding amortization of acquired intangible assets from its non-GAAP financial measures, as indicated above, to provide investors with a more consistent basis for comparing pre- and post-acquisition operating results.

These non-GAAP measures are used to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company’s results to those of the Company’s competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company’s competitors’ results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.


Financial Summary Table



(dollars in thousands, except per share data)



(Unaudited)


 


 



 



Three Months Ended September 30,



 



 



Nine Months Ended September 30,



 



 



 



2019



 



 



2018



 



 



change



 



 



2019



 



 



2018



 



 



change



 



Insight Enterprises, Inc.



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Net sales:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Products



 



$



1,668,880



 



 



$



1,548,273



 



 



8%



 



 



$



4,729,887



 



 



$



4,724,888



 



 






 



Services



 



$



243,667



 



 



$



199,453



 



 



22%



 



 



$



704,147



 



 



$



606,202



 



 



16%



 



Total net sales



 



$



1,912,547



 



 



$



1,747,726



 



 



9%



 



 



$



5,434,034



 



 



$



5,331,090



 



 



2%



 



Gross profit



 



$



276,195



 



 



$



234,914



 



 



18%



 



 



$



800,116



 



 



$



739,554



 



 



8%



 



Gross margin



 



 



14.4



%



 



 



13.4



%



 



100 bps



 



 



 



14.7



%



 



 



13.9



%



 



80 bps



 



Selling and administrative expenses



 



$



223,215



 



 



$



184,095



 



 



21%



 



 



$



613,767



 



 



$



561,739



 



 



9%



 



Severance and restructuring expenses



 



$



2,662



 



 



$



683



 



 



> 100%



 



 



$



3,712



 



 



$



2,709



 



 



37%



 



Acquisition-related expenses



 



$



5,896



 



 



$



188



 



 



> 100%



 



 



$



9,059



 



 



$



282



 



 



> 100%



 



Earnings from operations



 



$



44,422



 



 



$



49,948



 



 



(11%)



 



 



$



173,578



 



 



$



174,824



 



 



(1%)



 



Net earnings



 



$



27,132



 



 



$



32,154



 



 



(16%)



 



 



$



116,457



 



 



$



116,636



 



 






 



Diluted earnings per share



 



$



0.76



 



 



$



0.89



 



 



(15%)



 



 



$



3.23



 



 



$



3.24



 



 






 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



North America



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Net sales:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Products



 



$



1,315,813



 



 



$



1,213,033



 



 



8%



 



 



$



3,611,895



 



 



$



3,553,147



 



 



2%



 



Services



 



$



199,349



 



 



$



158,426



 



 



26%



 



 



$



551,215



 



 



$



465,458



 



 



18%



 



Total net sales



 



$



1,515,162



 



 



$



1,371,459



 



 



10%



 



 



$



4,163,110



 



 



$



4,018,605



 



 



4%



 



Gross profit



 



$



218,644



 



 



$



179,327



 



 



22%



 



 



$



600,310



 



 



$



545,215



 



 



10%



 



Gross margin



 



 



14.4



%



 



 



13.1



%



 



130 bps



 



 



 



14.4



%



 



 



13.6



%



 



80 bps



 



Selling and administrative expenses



 



$



170,993



 



 



$



134,792



 



 



27%



 



 



$



452,441



 



 



$



402,638



 



 



12%



 



Severance and restructuring expenses



 



$



2,449



 



 



$



253



 



 



> 100%



 



 



$



3,260



 



 



$



1,034



 



 



> 100%



 



Acquisition-related expenses



 



$



5,896



 



 



$



188



 



 



> 100%



 



 



$



9,059



 



 



$



282



 



 



> 100%



 



Earnings from operations



 



$



39,306



 



 



$



44,094



 



 



(11%)



 



 



$



135,550



 



 



$



141,261



 



 



(4%)



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Sales Mix



 



 



 



 



 



 



 



 



 



**



 



 



 



 



 



 



 



 



 



 



**



 



Hardware



 



 



67



%



 



 



69



%



 



7%



 



 



 



65



%



 



 



68



%



 



(1%)



 



Software



 



 



20



%



 



 



19



%



 



14%



 



 



 



22



%



 



 



21



%



 



10%



 



Services



 



 



13



%



 



 



12



%



 



26%



 



 



 



13



%



 



 



11



%



 



18%



 



 



 



 



100



%



 



 



100



%



 



10%



 



 



 



100



%



 



 



100



%



 



4%



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



EMEA



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Net sales:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Products



 



$



324,255



 



 



$



316,100



 



 



3%



 



 



$



1,011,965



 



 



$



1,057,764



 



 



(4%)



 



Services



 



$



31,453



 



 



$



29,080



 



 



8%



 



 



$



113,092



 



 



$



104,086



 



 



9%



 



Total net sales



 



$



355,708



 



 



$



345,180



 



 



3%



 



 



$



1,125,057



 



 



$



1,161,850



 



 



(3%)



 



Gross profit



 



$



47,891



 



 



$



47,234



 



 



1%



 



 



$



169,324



 



 



$



165,248



 



 



2%



 



Gross margin



 



 



13.5



%



 



 



13.7



%



 



(20 bps)



 



 



 



15.1



%



 



 



14.2



%



 



90 bps



 



Selling and administrative expenses



 



$



44,568



 



 



$



42,206



 



 



6%



 



 



$



139,365



 



 



$



137,383



 



 



1%



 



Severance and restructuring expenses



 



$



213



 



 



$



430



 



 



(50%)



 



 



$



328



 



 



$



1,545



 



 



(79%)



 



Earnings from operations



 



$



3,110



 



 



$



4,598



 



 



(32%)



 



 



$



29,631



 



 



$



26,320



 



 



13%



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Sales Mix



 



 



 



 



 



 



 



 



 



**



 



 



 



 



 



 



 



 



 



 



**



 



Hardware



 



 



39



%



 



 



43



%



 



(7%)



 



 



 



40



%



 



 



44



%



 



(11%)



 



Software



 



 



52



%



 



 



49



%



 



11%



 



 



 



50



%



 



 



48



%



 



1%



 



Services



 



 



9



%



 



 



8



%



 



8%



 



 



 



10



%



 



 



8



%



 



9%



 



 



 



 



100



%



 



 



100



%



 



3%



 



 



 



100



%



 



 



100



%



 



(3%)



 



**



 



Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates.



Financial Summary Table (continued)



(dollars in thousands, except per share data)



(Unaudited)


 


 



 



Three Months Ended September 30,



 



 



Nine Months Ended September 30,



 



 



 



2019



 



 



2018



 



 



change



 



 



2019



 



 



2018



 



 



change



 



APAC



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Net sales:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Products



 



$



28,812



 



 



$



19,140



 



 



51%



 



 



$



106,027



 



 



$



113,977



 



 



(7%)



 



Services



 



$



12,865



 



 



$



11,947



 



 



8%



 



 



$



39,840



 



 



$



36,658



 



 



9%



 



Total net sales



 



$



41,677



 



 



$



31,087



 



 



34%



 



 



$



145,867



 



 



$



150,635



 



 



(3%)



 



Gross profit



 



$



9,660



 



 



$



8,353



 



 



16%



 



 



$



30,482



 



 



$



29,091



 



 



5%



 



Gross margin



 



 



23.2



%



 



 



26.9



%



 



(370 bps)



 



 



 



20.9



%



 



 



19.3



%



 



160 bps



 



Selling and administrative



expenses



 



$



7,654



 



 



$



7,097



 



 



8%



 



 



$



21,961



 



 



$



21,718



 



 



1%



 



Severance and restructuring



expenses



 



$






 



 



$






 



 






 



 



$



124



 



 



$



130



 



 



(5%)



 



Earnings from operations



 



$



2,006



 



 



$



1,256



 



 



60%



 



 



$



8,397



 



 



$



7,243



 



 



16%



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Sales Mix



 



 



 



 



 



 



 



 



 



**



 



 



 



 



 



 



 



 



 



 



**



 



Hardware



 



 



22



%



 



 



20



%



 



53%



 



 



 



18



%



 



 



15



%



 



14%



 



Software



 



 



47



%



 



 



42



%



 



49%



 



 



 



55



%



 



 



61



%



 



(12%)



 



Services



 



 



31



%



 



 



38



%



 



8%



 



 



 



27



%



 



 



24



%



 



9%



 



 



 



 



100



%



 



 



100



%



 



34%



 



 



 



100



%



 



 



100



%



 



(3%)



 



**



 



Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates.


FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call and web cast are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including the Company’s expected 2019 financial results, sales growth and Adjusted diluted earnings per share for the full year 2019, and the assumptions relating thereto, as well as the Company’s anticipated effective tax rate, capital expenditures and plans concerning repurchases of the Company’s common stock, the Company’s expectations regarding cash flow, and the Company’s expectations about future benefits relating to the PCM acquisition, are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements, include, but are not limited to, the following, which are discussed in “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, in “Cautionary Note Regarding Forward-looking Statements” in the Company’s Current Report on Form 8-K filed on June 24, 2019, and in the Company’s subsequent filings with the Securities and Exchange Commission:



  • actions of our competitors, including manufacturers and publishers of products we sell;


  • our reliance on our partners for product availability, competitive products to sell and marketing funds and purchasing incentives, which can change significantly in the amounts made available and the requirements year over year;


  • changes in the IT industry and/or rapid changes in technology;


  • risks associated with the integration and operation of acquired businesses, including PCM;


  • possible significant fluctuations in our future operating results as well as seasonality and variability of customer demands;


  • the risks associated with our international operations;


  • general economic conditions, economic uncertainties and changes in geopolitical conditions;


  • increased debt and interest expense and decreased availability of funds under our financing facilities;


  • the security of our electronic and other confidential information;


  • disruptions in our IT systems and voice and data networks;


  • failure to comply with the terms and conditions of our commercial and public sector contracts;


  • legal proceedings, including PCM related litigation, client audits and failure to comply with laws and regulations;


  • accounts receivable risks, including increased credit loss experience or extended payment terms with our clients;


  • our reliance on independent shipping companies;


  • our dependence on certain key personnel;


  • natural disasters or other adverse occurrences;


  • exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;


  • intellectual property infringement claims and challenges to our registered trademarks and trade names;


  • unexpected costs or liabilities in connection with the acquisition of PCM;


  • the Company’s inability to achieve expected synergies and operating efficiencies as a result of the acquisition of PCM, whether within the expected time frames, without undue difficulty, cost or expense, or at all;


  • the Company’s ability to successfully integrate PCM’s operations into its own, whether within expected time frames, without undue difficulty, cost or expense, or at all;


  • the level of revenues following the acquisition of PCM, which may be lower than expected;


  • operating costs, customer loss and business disruptions arising from the acquisition of PCM (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers), which may be greater than expected;


  • cyber attacks or breaches of data privacy and security regulations;


  • uncertainties surrounding the acquisition of PCM;


  • the outcome of any legal proceedings related to the acquisition of PCM;


  • other adverse economic, business, and/or competitive factors;


  • risks that the acquisition of PCM distracts management of the Company or PCM or disrupts current plans and operations;


  • the Company’s ability to retain key PCM and Company employees;


  • the senior convertible notes (the “notes”) are effectively subordinated to the Company’s secured debt and are structurally subordinated to any liabilities of our subsidiaries, other than the subsidiary guarantor;


  • the debt may restrict the Company’s future operations and impair its ability to meet business obligations under the notes;


  • the conditional conversion feature of the notes, if triggered, may adversely affect the Company’s financial condition and operating results;


  • the accounting method for convertible debt securities that may be settled in cash, such as the notes, could have a material effect on the Company’s reported financial results;


  • future sales of the Company’s common stock or equity-linked securities in the public market could lower the market price for our common stock and adversely impact the trading price of the notes; and


  • the Company is subject to counterparty risk with respect to the convertible note hedge transactions.

Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the Securities and Exchange Commission. Any forward-looking statements in this release should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties.


INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES



Consolidated Statements of Operations



(In thousands, except per share data)



(Unaudited)


 


 



 



Three Months Ended



September 30,



 



 



Nine Months Ended



September 30,



 



 



 



2019



 



 



2018



 



 



2019



 



 



2018



 



Net sales:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Products



 



$



1,668,880



 



 



$



1,548,273



 



 



$



4,729,887



 



 



$



4,724,888



 



Services



 



 



243,667



 



 



 



199,453



 



 



 



704,147



 



 



 



606,202



 



Total net sales



 



 



1,912,547



 



 



 



1,747,726



 



 



 



5,434,034



 



 



 



5,331,090



 



Costs of goods sold:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Products



 



 



1,519,240



 



 



 



1,415,808



 



 



 



4,315,464



 



 



 



4,319,181



 



Services



 



 



117,112



 



 



 



97,004



 



 



 



318,454



 



 



 



272,355



 



Total costs of goods sold



 



 



1,636,352



 



 



 



1,512,812



 



 



 



4,633,918



 



 



 



4,591,536



 



Gross profit



 



 



276,195



 



 



 



234,914



 



 



 



800,116



 



 



 



739,554



 



Operating expenses:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Selling and administrative expenses



 



 



223,215



 



 



 



184,095



 



 



 



613,767



 



 



 



561,739



 



Severance and restructuring expenses, net



 



 



2,662



 



 



 



683



 



 



 



3,712



 



 



 



2,709



 



Acquisition-related expenses



 



 



5,896



 



 



 



188



 



 



 



9,059



 



 



 



282



 



Earnings from operations



 



 



44,422



 



 



 



49,948



 



 



 



173,578



 



 



 



174,824



 



Non-operating (income) expense:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Interest income



 



 



(393



)



 



 



(330



)



 



 



(930



)



 



 



(653



)



Interest expense



 



 



8,087



 



 



 



6,132



 



 



 



17,511



 



 



 



17,249



 



Net foreign currency exchange (gain) loss



 



 



(391



)



 



 



539



 



 



 



(10



)



 



 



19



 



Other (income) expense, net



 



 



(147



)



 



 



393



 



 



 



868



 



 



 



1,019



 



Earnings before income taxes



 



 



37,266



 



 



 



43,214



 



 



 



156,139



 



 



 



157,190



 



Income tax expense



 



 



10,134



 



 



 



11,060



 



 



 



39,682



 



 



 



40,554



 



Net earnings



 



$



27,132



 



 



$



32,154



 



 



$



116,457



 



 



$



116,636



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Net earnings per share:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Basic



 



$



0.76



 



 



$



0.91



 



 



$



3.27



 



 



$



3.27



 



Diluted



 



$



0.76



 



 



$



0.89



 



 



$



3.23



 



 



$



3.24



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Shares used in per share calculations:



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



Basic



 



 



35,512



 



 



 



35,468



 



 



 



35,631



 



 



 



35,622



 



Diluted



 



 



35,868



 



 



 



35,957



 



 



 



36,027



 



 



 



36,012



 



INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES



Consolidated Balance Sheets



(In thousands)



(Unaudited)


 


 



 



September 30,



2019



 



 



December 31,



2018



 



ASSETS



 



 



 



 



 



 



 



 



Current assets:



 



 



 



 



 



 



 



 



Cash and cash equivalents



 



$



140,549



 



 



$



142,655



 



Accounts receivable, net



 



 



2,320,681



 



 



 



1,931,736



 



Inventories



 



 



219,932



 



 



 



148,503



 



Other current assets



 



 



120,972



 



 



 



115,683



 



Total current assets



 



 



2,802,134



 



 



 



2,338,577



 



 



 



 



 



 



 



 



 



 



Property and equipment, net



 



 



169,996



 



 



 



72,954



 



Goodwill



 



 



358,384



 



 



 



166,841



 



Intangible assets, net



 



 



350,342



 



 



 



112,179



 



Deferred income taxes



 



 



3,027



 



 



 



7,967



 



Other assets



 



 



298,477



 



 



 



77,429



 



 



 



$



3,982,360



 



 



$



2,775,947



 



 



 



 



 



 



 



 



 



 



LIABILITIES AND STOCKHOLDERS’ EQUITY



 



 



 



 



 



 



 



 



Current liabilities:



 



 



 



 



 



 



 



 



Accounts payable – trade



 



$



1,220,678



 



 



$



978,104



 



Accounts payable – inventory financing facilities



 



 



207,658



 



 



 



304,130



 



Accrued expenses and other current liabilities



 



 



254,677



 



 



 



190,733



 



Current portion of long-term debt



 



 



1,142



 



 



 



1,395



 



Deferred revenue



 



 



67,819



 



 



 



62,300



 



Total current liabilities



 



 



1,751,974



 



 



 



1,536,662



 



 



 



 



 



 



 



 



 



 



Long-term debt



 



 



835,714



 



 



 



195,525



 



Deferred income taxes



 



 



58,665



 



 



 



683



 



Other liabilities



 



 



233,369



 



 



 



56,088



 



 



 



 



2,879,722



 



 



 



1,788,958



 



Stockholders’ equity:



 



 



 



 



 



 



 



 



Preferred stock



 



 






 



 



 






 



Common stock



 



 



353



 



 



 



355



 



Additional paid-in capital



 



 



353,069



 



 



 



323,622



 



Retained earnings



 



 



798,147



 



 



 



704,665



 



Accumulated other comprehensive loss – foreign currency translation adjustments



 



 



(48,931



)



 



 



(41,653



)



Total stockholders’ equity



 



 



1,102,638



 



 



 



986,989



 



 



 



$



3,982,360



 



 



$



2,775,947



 


Contacts

Glynis Bryan

Chief Financial Officer

Tel. 480.333.3390

Helen Johnson

Senior VP, Finance

Tel. 480.333.3234