Exhibit 99.1
| | |
FOR IMMEDIATE RELEASE | | NASDAQ: NSIT |
INSIGHT ENTERPRISES, INC. REPORTS SECOND QUARTER 2013 RESULTS
TEMPE, AZ – August 8, 2013 – Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today reported results of operations for the quarter ended June 30, 2013.
For the second quarter of 2013:
| • | | Net sales decreased 7% compared to the second quarter of 2012 to $1.4 billion. |
| • | | Gross profit declined 5% compared to the second quarter of 2012 to $190.9 million, with gross margin increasing approximately 30 basis points to 13.5% of net sales. |
| • | | Earnings from operations were down 19% compared to the second quarter of 2012 to $44.6 million, or 3.1% of net sales. |
| • | | Net earnings and diluted earnings per share were $26.5 million and $0.62, respectively, in the second quarter of 2013, at an effective tax rate of 39.6%. |
| • | | Excluding severance and restructuring expenses, net earnings and diluted earnings per share on a non-GAAP basis were $29.1 million and $0.68, respectively, in the second quarter of 2013.* |
| • | | The Company generated $87.8 million of cash from operations in the six months ended June 30, 2013, compared to $11.2 million during the first six months of 2012. |
| • | | The Company completed a $50 million share repurchase program by purchasing and retiring approximately 2.3 million shares of its common stock during the quarter. |
* | A tabular reconciliation of financial measures prepared in accordance with United States generally accepted accounting principles (“GAAP”) to non-GAAP financial measures is included at the end of this press release. |
“During the second quarter, we continued to see soft top line performance, but we drove gross margin expansion through higher services sales and a strategic focus on more profitable product sales. We also maintained strict discipline around the costs in our business,” stated Ken Lamneck, President and Chief Executive Officer, “We are continuing to focus on growing our solutions-selling expertise around key technologies and in select markets and verticals and believe that this will bring value to our clients and shareholders over time,” added Lamneck.
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480.760.8958 |
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Insight Q2 2013 Results, Page 2 | | | | August 8, 2013 |
SEGMENT OVERVIEW
In North America, net sales were $923.1 million for the second quarter of 2013, down 7% compared to net sales of $993.0 million for the second quarter of 2012. Net sales of hardware and software decreased 10% and 4%, respectively, year to year, while net sales of services remained flat year over year. Gross profit of $124.7 million was down 4% year to year, with gross margin increasing to 13.5% from 13.1% in the second quarter of 2012. Selling and administrative expenses in North America in the second quarter of 2013 remained flat year over year. The year over year comparison was affected by a prior year gain of $1.2 million on the sale of a portfolio of non-core service contracts as a reduction of selling and administrative expenses in the second quarter of 2012. During the second quarter of 2013, North America recorded severance and restructuring expenses, net of adjustments, of $967,000, $638,000 net of tax, compared to $894,000, $552,000 net of tax, during the second quarter of 2012. As a result, earnings from operations in North America decreased 15% year to year to $33.4 million, or 3.6% of net sales, in the second quarter of 2013, compared to $39.1 million, or 3.9% of net sales, in the second quarter of 2012.
The Company’s EMEA operating segment reported net sales of $421.1 million for the second quarter of 2013, a decrease of 8% in U.S. dollars compared to the second quarter of 2012. Excluding the effects of foreign currency movements, net sales decreased 9% year to year. Net sales of services were up 42% year over year, while net sales of hardware and software declined 21% and 4%, respectively, year to year, all in U.S. dollars. Excluding the effects of foreign currency movements, net sales of services increased 41%, while net sales of hardware and software declined 19% and 6%, respectively, compared to the second quarter of 2012. Gross profit of $54.2 million was also down 8% year to year in U.S. dollars, 9% excluding the effects of foreign currency movements, with gross margin remaining flat at 12.9% in both periods. Selling and administrative expenses in EMEA in the second quarter of 2013 decreased 1%, or $623,000, compared to the second quarter of 2012 in U.S. dollars and, excluding the effects of foreign currency movements, were also down 1% compared to the prior year period. During the second quarter of 2013, EMEA recorded severance and restructuring expenses, net of adjustments, of $2.2 million, $1.9 million net of tax, compared to $1.5 million, $1.0 million net of tax, during the second quarter of 2012. As a result, earnings from operations in EMEA decreased 47% year to year to $5.7 million, or 1.4% of net sales, in the second quarter of 2013 compared to $10.8 million, or 2.4% of net sales, in the second quarter of 2012.
The Company’s APAC operating segment reported net sales of $72.4 million for the second quarter of 2013, a decrease of 5% compared to the second quarter of 2012 in U.S. dollars, a decrease of 2% excluding the effects of foreign currency movements. Gross profit was $12.0 million, an increase of 3% year over year in U.S. dollars, 5% excluding the effects of foreign currency movements, with gross margin increasing to 16.6% for the second quarter of 2013 from 15.3% in the second quarter of 2012. Selling and administrative expenses in APAC increased 4%, or $227,000, compared to the second quarter of 2012 in U.S. dollars. Excluding the effects of foreign currency movements, selling and administrative expenses increased 5% compared to the second quarter of last year. As a result, earnings from operations in APAC increased 2% year over year to $5.5 million, or 7.6% of net sales, in the second quarter of 2013 compared to $5.4 million, or 7.0% of net sales, in the second quarter of 2012.
Throughout this “Segment Overview” section, the Company refers to changes in net sales, gross profit and selling and administrative expenses in EMEA and APAC excluding the effects of foreign currency movements. 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 average translation rate for the current period.
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 3 | | | | August 8, 2013 |
Net of tax amounts referenced above 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.
UPDATED GUIDANCE
The Company currently expects diluted earnings per share for the full year of 2013 to be between $1.70 and $1.85.
This outlook includes the following assumptions:
| • | | The remaining 2013 adverse effect on gross profit of previously announced partner program changes in the Company’s software category, which is estimated to be between $5 and $8 million in the back half of 2013; and |
| • | | an effective tax rate of 39% for the balance of the year. |
This outlook excludes severance and restructuring expenses incurred during 2013.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live web cast today at 5:00 p.m. ET to discuss second quarter 2013 results of operations. A live web cast of the conference call (in listen-only mode) will be accessible online through the investor relations section of the Company’s web site, www.insight.com, at http://nsit.client.shareholder.com/events.cfm, 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 1-877-402-8904 if located in the U.S., 678-809-1029 for international callers, and enter the access code 20607805.
USE OF NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures exclude severance and restructuring expenses in 2013 and 2012, a gain on bargain purchase in 2012 and the tax effect of these items. The Company excludes these charges 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. 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.
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 4 | | | | August 8, 2013 |
FINANCIAL SUMMARY TABLE
(DOLLARSINTHOUSANDS,EXCEPTPERSHAREDATA)
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | 2013 | | | 2012 | | | % change | | | 2013 | | | 2012 | | | % change | |
Insight Enterprises, Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 1,416,547 | | | $ | 1,529,175 | | | | (7 | %) | | $ | 2,598,169 | | | $ | 2,773,357 | | | | (6%) | |
Gross profit | | $ | 190,927 | | | $ | 201,286 | | | | (5 | %) | | $ | 349,064 | | | $ | 371,658 | | | | (6%) | |
Earnings from operations | | $ | 44,598 | | | $ | 55,308 | | | | (19 | %) | | $ | 59,015 | | | $ | 80,912 | | | | (27%) | |
Net earnings | | $ | 26,513 | | | $ | 35,250 | | | | (25 | %) | | $ | 35,589 | | | $ | 52,642 | | | | (32%) | |
Diluted earnings per share | | $ | 0.62 | | | $ | 0.79 | | | | (22 | %) | | $ | 0.81 | | | $ | 1.18 | | | | (31%) | |
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North America | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 923,063 | | | $ | 992,970 | | | | (7 | %) | | $ | 1,670,067 | | | $ | 1,849,297 | | | | (10%) | |
Gross profit | | $ | 124,664 | | | $ | 130,357 | | | | (4 | %) | | $ | 227,191 | | | $ | 243,993 | | | | (7%) | |
Earnings from operations | | $ | 33,402 | | | $ | 39,121 | | | | (15 | %) | | $ | 45,676 | | | $ | 60,284 | | | | (24%) | |
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EMEA | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 421,116 | | | $ | 459,714 | | | | (8 | %) | | $ | 808,027 | | | $ | 808,548 | | | | — | |
Gross profit | | $ | 54,238 | | | $ | 59,249 | | | | (8 | %) | | $ | 102,848 | | | $ | 109,663 | | | | (6%) | |
Earnings from operations | | $ | 5,725 | | | $ | 10,834 | | | | (47 | %) | | $ | 6,904 | | | $ | 14,971 | | | | (54%) | |
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APAC | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 72,368 | | | $ | 76,491 | | | | (5 | %) | | $ | 120,075 | | | $ | 115,512 | | | | 4% | |
Gross profit | | $ | 12,025 | | | $ | 11,680 | | | | 3 | % | | $ | 19,025 | | | $ | 18,002 | | | | 6% | |
Earnings from operations | | $ | 5,471 | | | $ | 5,353 | | | | 2 | % | | $ | 6,435 | | | $ | 5,657 | | | | 14% | |
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| | North America | | | EMEA | | | APAC | |
| | Three Months Ended June 30, | | | Three Months Ended June 30, | | | Three Months Ended June 30, | |
| | 2013 | | | 2012 | | | % change* | | | 2013 | | | 2012 | | | % change* | | | 2013 | | | 2012 | | | % change* | |
Sales Mix | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hardware | | | 58 | % | | | 59 | % | | | (10 | %) | | | 26 | % | | | 30 | % | | | (21 | %) | | | 3 | % | | | 2 | % | | | 36 | % |
Software | | | 36 | % | | | 35 | % | | | (4 | %) | | | 72 | % | | | 69 | % | | | (4 | %) | | | 95 | % | | | 96 | % | | | (7 | %) |
Services | | | 6 | % | | | 6 | % | | | — | | | | 2 | % | | | 1 | % | | | 42 | % | | | 2 | % | | | 2 | % | | | 16 | % |
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| | | 100 | % | | | 100 | % | | | (7 | %) | | | 100 | % | | | 100 | % | | | (8 | %) | | | 100 | % | | | 100 | % | | | (5 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
* | Represents growth/decline in category net sales on a U.S. dollar basis. |
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 5 | | | | August 8, 2013 |
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 2013 net sales, financial results, earnings performance and diluted earnings per share, and the assumptions relating thereto, including the gross profit effect of partner program changes and the effective tax rate, 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, 2012:
| • | | the Company’s reliance on partners for product availability and competitive products to sell as well as the Company’s competition with its partners; |
| • | | the Company’s reliance on partners for marketing funds and purchasing incentives; |
| • | | changes in the IT industry and/or rapid changes in technology; |
| • | | disruptions in the Company’s IT systems and voice and data networks, including risks and costs associated with the integration and upgrade of the Company’s IT systems; |
| • | | actions of the Company’s competitors, including manufacturers and publishers of products the Company sells; |
| • | | general economic conditions; |
| • | | failure to comply with the terms and conditions of the Company’s commercial and public sector contracts; |
| • | | the security of the Company’s electronic and other confidential information; |
| • | | the integration and operation of acquired businesses, including the Company’s ability to achieve expected benefits of the acquisitions; |
| • | | the Company’s dependence on certain personnel; |
| • | | the variability of the Company’s net sales and gross profit; |
| • | | the risks associated with the Company’s international operations; |
| • | | exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations; and |
| • | | intellectual property infringement claims and challenges to the Company’s registered trademarks and trade names. |
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 does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance made by third parties.
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CONTACTS: | | GLYNIS BRYAN | | HELEN JOHNSON |
| | CHIEF FINANCIAL OFFICER | | SENIOR VP, TREASURER |
| | TEL. 480-333-3390 | | TEL. 480-333-3234 |
| | EMAILglynis.bryan@insight.com | | EMAILhelen.johnson@insight.com |
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 6 | | | | August 8, 2013 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTSOF OPERATIONS
(INTHOUSANDS,EXCEPTPERSHAREDATA)
(UNAUDITED)
| | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Net sales | | $ | 1,416,547 | | | $ | 1,529,175 | | | $ | 2,598,169 | | | $ | 2,773,357 | |
Costs of goods sold | | | 1,225,620 | | | | 1,327,889 | | | | 2,249,105 | | | | 2,401,699 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 190,927 | | | | 201,286 | | | | 349,064 | | | | 371,658 | |
Operating expenses: | | | | | | | | | | | | | | | | |
Selling and administrative expenses | | | 143,158 | | | | 143,601 | | | | 284,146 | | | | 286,995 | |
Severance and restructuring expenses | | | 3,171 | | | | 2,377 | | | | 5,903 | | | | 3,751 | |
| | | | | | | | | | | | | | | | |
Earnings from operations | | | 44,598 | | | | 55,308 | | | | 59,015 | | | | 80,912 | |
Non-operating (income) expense: | | | | | | | | | | | | | | | | |
Interest income | | | (337 | ) | | | (288 | ) | | | (649 | ) | | | (639 | ) |
Interest expense | | | 1,556 | | | | 1,490 | | | | 3,174 | | | | 3,048 | |
Gain on bargain purchase | | | — | | | | — | | | | — | | | | (2,022 | ) |
Net foreign currency exchange gain | | | (886 | ) | | | (470 | ) | | | (725 | ) | | | (1,298 | ) |
Other expense, net | | | 342 | | | | 389 | | | | 716 | | | | 633 | |
| | | | | | | | | | | | | | | | |
Earnings before income taxes | | | 43,923 | | | | 54,187 | | | | 56,499 | | | | 81,190 | |
Income tax expense | | | 17,410 | | | | 18,937 | | | | 20,910 | | | | 28,548 | |
| | | | | | | | | | | | | | | | |
Net earnings | | $ | 26,513 | | | $ | 35,250 | | | $ | 35,589 | | | $ | 52,642 | |
| | | | | | | | | | | | | | | | |
Net earnings per share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.62 | | | $ | 0.79 | | | $ | 0.81 | | | $ | 1.19 | |
| | | | | | | | | | | | | | | | |
Diluted | | $ | 0.62 | | | $ | 0.79 | | | $ | 0.81 | | | $ | 1.18 | |
| | | | | | | | | | | | | | | | |
Shares used in per share calculations: | | | | | | | | | | | | | | | | |
Basic | | | 42,862 | | | | 44,420 | | | | 43,766 | | | | 44,285 | |
| | | | | | | | | | | | | | | | |
Diluted | | | 43,024 | | | | 44,708 | | | | 44,044 | | | | 44,731 | |
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 7 | | | | August 8, 2013 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(INTHOUSANDS)
(UNAUDITED)
| | | | | | | | |
| | June 30, 2013 | | | December 31, 2012 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 142,165 | | | $ | 152,119 | |
Accounts receivable, net | | | 1,318,967 | | | | 1,371,356 | |
Inventories | | | 125,705 | | | | 100,896 | |
Inventories not available for sale | | | 25,847 | | | | 31,249 | |
Deferred income taxes | | | 16,070 | | | | 16,387 | |
Other current assets | | | 50,389 | | | | 29,543 | |
| | | | | | | | |
Total current assets | | | 1,679,143 | | | | 1,701,550 | |
Property and equipment, net | | | 136,992 | | | | 143,513 | |
Goodwill | | | 26,257 | | | | 26,257 | |
Intangible assets, net | | | 41,067 | | | | 47,405 | |
Deferred income taxes | | | 60,547 | | | | 64,013 | |
Other assets | | | 23,229 | | | | 18,765 | |
| | | | | | | | |
| | $ | 1,967,235 | | | $ | 2,001,503 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 1,016,519 | | | $ | 982,611 | |
Accrued expenses and other current liabilities | | | 149,856 | | | | 158,621 | |
Current portion of long-term debt | | | 86 | | | | 602 | |
Deferred revenue | | | 32,928 | | | | 40,287 | |
| | | | | | | | |
Total current liabilities | | | 1,199,389 | | | | 1,182,121 | |
Long-term debt | | | 53,000 | | | | 80,000 | |
Deferred income taxes | | | 1,527 | | | | 2,312 | |
Other liabilities | | | 34,992 | | | | 31,779 | |
| | | | | | | | |
| | | 1,288,908 | | | | 1,296,212 | |
| | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Preferred stock | | | — | | | | — | |
Common stock | | | 423 | | | | 446 | |
Additional paid-in capital | | | 348,999 | | | | 369,300 | |
Retained earnings | | | 323,270 | | | | 315,888 | |
Accumulated other comprehensive income – foreign currency translation adjustments | | | 5,635 | | | | 19,657 | |
| | | | | | | | |
Total stockholders’ equity | | | 678,327 | | | | 705,291 | |
| | | | | | | | |
| | $ | 1,967,235 | | | $ | 2,001,503 | |
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 8 | | | | August 8, 2013 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTSOF CASH FLOWS
(INTHOUSANDS)
(UNAUDITED)
| | | | | | | | |
| | Six Months Ended June 30, | |
| | 2013 | | | 2012 | |
Cash flows from operating activities: | | | | | | | | |
Net earnings | | $ | 35,589 | | | $ | 52,642 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 20,870 | | | | 20,497 | |
Provision for losses on accounts receivable | | | 2,489 | | | | 2,159 | |
Write-downs of inventories | | | 2,502 | | | | 2,035 | |
Write-off of property and equipment | | | 51 | | | | 34 | |
Non-cash stock-based compensation | | | 3,595 | | | | 4,449 | |
Gain on bargain purchase | | | — | | | | (2,022 | ) |
Excess tax benefit from employee gains on stock-based compensation | | | (757 | ) | | | (1,939 | ) |
Deferred income taxes | | | 2,995 | | | | 4,334 | |
Changes in assets and liabilities: | | | | | | | | |
Decrease (increase) in accounts receivable | | | 25,499 | | | | (142,125 | ) |
(Increase) decrease in inventories | | | (22,913 | ) | | | 1,916 | |
Increase in other current assets | | | (21,607 | ) | | | (5,100 | ) |
(Increase) decrease in other assets | | | (4,469 | ) | | | 2,529 | |
Increase in accounts payable | | | 52,458 | | | | 84,383 | |
Decrease in deferred revenue | | | (8,387 | ) | | | (8,333 | ) |
Decrease in accrued expenses and other liabilities | | | (165 | ) | | | (4,293 | ) |
| | | | | | | | |
Net cash provided by operating activities | | | 87,750 | | | | 11,166 | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Acquisition, net of cash acquired | | | — | | | | (3,831 | ) |
Purchases of property and equipment | | | (10,529 | ) | | | (15,943 | ) |
| | | | | | | | |
Net cash used in investing activities | | | (10,529 | ) | | | (19,774 | ) |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Borrowings on senior revolving credit facility | | | 541,035 | | | | 520,603 | |
Repayments on senior revolving credit facility | | | (571,035 | ) | | | (635,603 | ) |
Borrowings on accounts receivable securitization financing facility | | | 434,000 | | | | 355,000 | |
Repayments on accounts receivable securitization financing facility | | | (431,000 | ) | | | (235,000 | ) |
Payments on capital lease obligation | | | (516 | ) | | | (507 | ) |
Net borrowings under inventory financing facility | | | 362 | | | | 6,465 | |
Payment of deferred financing fees | | | — | | | | (2,554 | ) |
Proceeds from sales of common stock under employee stock plans | | | — | | | | 889 | |
Excess tax benefit from employee gains on stock-based compensation | | | 757 | | | | 1,939 | |
Payment of payroll taxes on stock-based compensation through shares withheld | | | (2,729 | ) | | | (3,027 | ) |
Repurchases of common stock | | | (50,000 | ) | | | — | |
| | | | | | | | |
Net cash (used in) provided by financing activities | | | (79,126 | ) | | | 8,205 | |
| | | | | | | | |
Foreign currency exchange effect on cash flows | | | (8,049 | ) | | | 1,080 | |
| | | | | | | | |
(Decrease) increase in cash and cash equivalents | | | (9,954 | ) | | | 677 | |
Cash and cash equivalents at beginning of period | | | 152,119 | | | | 128,336 | |
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Cash and cash equivalents at end of period | | $ | 142,165 | | | $ | 129,013 | |
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |
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Insight Q2 2013 Results, Page 9 | | | | August 8, 2013 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
RECONCILIATIONOF GAAPTO NON-GAAP FINANCIAL MEASURES
(INTHOUSANDS,EXCEPTPERSHAREDATA)
(UNAUDITED)
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| | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Consolidated Earnings from Operations: | | | | | | | | | | | | | | | | |
GAAP | | $ | 44,598 | | | $ | 55,308 | | | $ | 59,015 | | | $ | 80,912 | |
Severance and restructuring expenses | | | 3,171 | | | | 2,377 | | | | 5,903 | | | | 3,751 | |
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Non-GAAP | | $ | 47,769 | | | $ | 57,685 | | | $ | 64,918 | | | $ | 84,663 | |
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Consolidated Net Earnings: | | | | | | | | | | | | | | | | |
GAAP | | $ | 26,513 | | | $ | 35,250 | | | $ | 35,589 | | | $ | 52,642 | |
Severance and restructuring expenses, net of tax | | | 2,558 | | | | 1,588 | | | | 4,426 | | | | 2,509 | |
Gain on bargain purchase, net of tax | | | — | | | | — | | | | — | | | | (1,699 | ) |
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Non-GAAP | | $ | 29,071 | | | $ | 36,838 | | | $ | 40,015 | | | $ | 53,452 | |
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Consolidated Diluted EPS: | | | | | | | | | | | | | | | | |
GAAP | | $ | 0.62 | | | $ | 0.79 | | | $ | 0.81 | | | $ | 1.18 | |
Severance and restructuring expenses, net of tax | | | 0.06 | | | | 0.03 | | | | 0.10 | | | | 0.05 | |
Gain on bargain purchase, net of tax | | | — | | | | — | | | | — | | | | (0.04 | ) |
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Non-GAAP | | $ | 0.68 | | | $ | 0.82 | | | $ | 0.91 | | | $ | 1.19 | |
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North America Earnings from Operations: | | | | | | | | | | | | | | | | |
GAAP | | $ | 33,402 | | | $ | 39,121 | | | $ | 45,676 | | | $ | 60,284 | |
Severance and restructuring expenses | | | 967 | | | | 894 | | | | 2,024 | | | | 1,383 | |
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Non-GAAP | | $ | 34,369 | | | $ | 40,015 | | | $ | 47,700 | | | $ | 61,667 | |
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EMEA Earnings from Operations: | | | | | | | | | | | | | | | | |
GAAP | | $ | 5,725 | | | $ | 10,834 | | | $ | 6,904 | | | $ | 14,971 | |
Severance and restructuring expenses | | | 2,204 | | | | 1,483 | | | | 3,879 | | | | 2,368 | |
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Non-GAAP | | $ | 7,929 | | | $ | 12,317 | | | $ | 10,783 | | | $ | 17,339 | |
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Insight Enterprises, Inc. | | 6820 South Harl Avenue | | Tempe, Arizona 85283 | | 800.467.4448 | | FAX 480-760-8958 |