Insight Enterprises, Inc. Reports Strong Fourth Quarter and Record Full Year 2018 Results

TEMPE, Ariz.–(BUSINESS WIRE)–Insight Enterprises, Inc. (NASDAQ: NSIT) (the “Company”) today
reported financial results for the quarter and full year ended December
31, 2018. Highlights include:

  • Gross profit up 9% year over year to $254.2 million for the fourth
    quarter and up 8% for the full year
  • Earnings from operations up 29% to $58.7 million for the fourth
    quarter and up 30% for the full year
  • Diluted earnings per share of $1.31 increased more than 100% for the
    fourth quarter year over year and record diluted earnings per share of
    $4.55 increased 82% for the full year
  • Cash flows provided by operations of $292.6 million in 2018 compared
    to cash used in operations of $307.1 million in 2017

In the fourth quarter of 2018, consolidated net sales were $1.75
billion, which was down 2%, year to year, reflecting a decline in
software net sales offset by strong growth in services net sales. The
decline in software net sales was due primarily to the adoption of ASC
606, which resulted in more software sales being recorded net and a
higher mix of cloud and maintenance service offerings which are recorded
net in services. Gross profit increased 9%, year over year, with gross
margins increasing 140 basis points to 14.5% for the quarter. Earnings
from operations grew 29%, year over year.

“Our fourth quarter results reflect a strong close to another great year
for our company. We focused on sales in higher margin categories,
including cloud subscription, maintenance and professional services
offerings, which drove up gross margins 140 basis points and earnings
from operations up double digits for the quarter,” stated Ken Lamneck,
president and CEO.

For the full year 2018, consolidated net sales were $7.1 billion, up 6%
year over year, reflecting strong growth in services including an
increase in sales of cloud offerings and software maintenance. Gross
profit increased 8%, year over year, with gross margins increasing 30
basis points to 14.0% for the full year. Earnings from operations grew
30%, year over year, with each of our geographic segments generating
double digit growth in earnings from operations.

“We are happy to report another year of record results for Insight. Our
global team delivered a third consecutive year of double-digit earnings
growth while accelerating cash flow generation, expanding our services
offerings and integrating strategic acquisitions,” stated Lamneck. ”Our
solution area go-to-market strategy, deep technical talent and
consistent focus on operational excellence have accelerated our
financial performance and uniquely position us to compete in the
marketplace in 2019 and beyond,” stated Lamneck.

KEY HIGHLIGHTS

Results for the Quarter:

  • Consolidated net sales of $1.75 billion for the fourth quarter of 2018
    decreased 2% year to year when compared to the fourth quarter of 2017.

    • Net sales in North America decreased 2% year to year to $1.34
      billion;
    • Net sales in EMEA increased less than 1% year over year to $368.4
      million; and
    • Net sales in APAC decreased 7% year to year to $36.3 million.
  • Excluding the effects of fluctuating foreign currency exchange rates,
    consolidated net sales for the fourth quarter decreased 1% year to
    year, with declines in net sales in North America and APAC of 2% each
    year to year, offset by growth in net sales in EMEA of 4%, year over
    year.
  • Consolidated gross profit of $254.2 million increased 9% compared to
    the fourth quarter of 2017, with consolidated gross margin expanding
    140 basis points to 14.5% of net sales.

    • Gross profit in North America increased 7% year over year to
      $187.5 million (13.9% gross margin);
    • Gross profit in EMEA increased 12% year over year to $56.2 million
      (15.3% gross margin); and
    • Gross profit in APAC increased 32% year over year to $10.5 million
      (28.8% gross margin).
  • Excluding the effects of fluctuating foreign currency exchange rates,
    consolidated gross profit for the fourth quarter increased 10% year
    over year, with gross profit growth in North America, EMEA and APAC of
    8%, 16% and 40%, respectively, year over year.
  • Consolidated earnings from operations of $58.7 million, or 3.4% of net
    sales, increased 29% compared to the fourth quarter of 2017.

    • Earnings from operations in North America increased 19% year over
      year to $44.4 million, or 3.3% of net sales;
    • Earnings from operations in EMEA increased 54% year over year to
      $11.0 million, or 3.0% of net sales; and
    • Earnings from operations in APAC increased more than 100% year
      over year to $3.2 million, or 8.9% of net sales.
  • Excluding the effects of fluctuating foreign currency exchange rates,
    for the fourth quarter, consolidated earnings from operations
    increased 30% year over year, with earnings from operations growth in
    North America, EMEA and APAC of 20%, 61% and more than 100%,
    respectively, year over year.
  • Adjusted consolidated earnings from operations increased 23% year over
    year to $59.4 million, or 3.4% of net sales for the fourth quarter of
    2018. Adjusted earnings from operations grew in North America, EMEA
    and APAC by 15%, 40% and more than 100%, respectively, year over year.
  • Consolidated net earnings and diluted earnings per share for the
    fourth quarter of 2018 were $47.0 million and $1.31, respectively, at
    an effective tax rate of 14.0%.
  • Adjusted consolidated net earnings and Adjusted diluted earnings per
    share for the fourth quarter of 2018 were $47.6 million and $1.32,
    respectively.

Results for the Year:

  • Consolidated net sales of $7.1 billion for 2018 increased 6% compared
    to 2017.

    • Net sales in North America increased 3% year over year to $5.4
      billion;
    • Net sales in EMEA increased 13% year over year to $1.5 billion; and
    • Net sales in APAC increased 12% year over year to $186.9 million.
  • Excluding the effects of fluctuating foreign currency exchange rates,
    consolidated net sales increased 5% year over year, with growth in net
    sales in North America, EMEA and APAC of 4%, 9% and 13%, respectively,
    year over year.
  • Consolidated gross profit of $993.7 million increased 8% compared to
    2017, with consolidated gross margin expanding 30 basis points to
    14.0% of net sales.

    • Gross profit in North America increased 6% year over year to
      $732.7 million (13.7% gross margin);
    • Gross profit in EMEA increased 16% year over year to $221.5
      million (14.5% gross margin); and
    • Gross profit in APAC increased 8% year over year to $39.6 million
      (21.2% gross margin).
  • Excluding the effects of fluctuating foreign currency exchange rates,
    consolidated gross profit increased 7% year over year, with gross
    profit growth in North America, EMEA and APAC of 6%, 12% and 9%,
    respectively, year over year.
  • Consolidated earnings from operations increased 30% compared to 2017
    to $233.5 million, or 3.3% of net sales.

    • Earnings from operations in North America increased 21% year over
      year to $185.7 million, or 3.5% of net sales;
    • Earnings from operations in EMEA increased more than 100% year
      over year to $37.3 million, or 2.4% of net sales; and
    • Earnings from operations in APAC increased 27% year over year to
      $10.5 million, or 5.6% of net sales.
  • Excluding the effects of fluctuating foreign currency exchange rates,
    consolidated earnings from operations also increased 30% year over
    year, with earnings from operations growth in North America, EMEA and
    APAC of 21%, more than 100% and 27%, respectively, year over year.
  • Adjusted consolidated earnings from operations increased 21% year over
    year to $237.2 million, or 3.4% of net sales for 2018. Adjusted
    earnings from operations grew in North America, EMEA and APAC by 17%,
    50% and 27%, respectively, year over year.
  • Consolidated net earnings and diluted earnings per share for 2018 were
    $163.7 million and $4.55, respectively, at an effective tax rate of
    22.8%.
  • Adjusted consolidated net earnings and Adjusted diluted earnings per
    share for 2018 were $166.6 million and $4.63, respectively.

In discussing financial results for the three and twelve months ended
December 31, 2018 and 2017 in this press release, the Company refers to
certain financial measures that are not 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 sales growth in
the mid-single digit range in U.S. dollar terms and diluted earnings per
share is expected to be between $4.75 and $4.85.

This outlook assumes:

  • an effective tax rate of 25% to 26% for the full year 2019;
  • capital expenditures of $20 to $25 million for the full year; and
  • an average share count for the full year of approximately 36.2 million
    shares.

This outlook does not reflect the repurchase of any shares under the
Company’s currently authorized share repurchase program and assumes no
severance and restructuring or acquisition-related expenses. Due to the
inherent difficulty of forecasting these types of expenses, which impact
net earnings and diluted earnings per share, the Company is unable to
reasonably estimate the related impact of such expenses, if any, to net
earnings and diluted earnings per share.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live web cast today at 9:00
a.m. ET to discuss fourth quarter and full year 2018 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., or 412-902-1028
for international callers, and enter the access code 13687122.

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) loss on sale of the Company’s Russia
business in the 2017 period, (iii) certain acquisition-related expenses,
and (iv) the tax effects of each of these items, as applicable. 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 facility. Adjusted return on invested capital
(“ROIC”) excludes (i) severance and restructuring expenses, (ii) loss on
sale of the Company’s Russia business in the 2017 period, and (iii)
certain acquisition-related expenses.

These non-GAAP measures are used by management 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 December 31,     Twelve Months Ended December 31,
2018   2017   change 2018   2017   change
Insight Enterprises, Inc.  
Net sales:
Products $ 1,525,050 $ 1,612,338 (5 %) $ 6,249,938 $ 6,038,744 3 %
Services $ 223,996 $ 171,737 30 % $ 830,198 $ 664,879 25 %
Total net sales $ 1,749,046 $ 1,784,075 (2 %) $ 7,080,136 $ 6,703,623 6 %
Gross profit $ 254,164 $ 232,883 9 % $ 993,718 $ 918,570 8 %
Gross margin 14.5 % 13.1 % 140 bps 14.0 % 13.7 % 30 bps
Selling and administrative expenses $ 194,790 $ 184,554 6 % $ 756,529 $ 723,328 5 %
Severance and restructuring expenses $ 715 $ 2,791 (74 %) $ 3,424 $ 9,002 (62 %)
Loss on sale of foreign entity $ $ $ $ 3,646 *
Acquisition-related expenses $ $ $ 282 $ 3,329 (92 %)
Earnings from operations $ 58,659 $ 45,538 29 % $ 233,483 $ 179,265 30 %
Net earnings $ 47,041 $ 14,168 > 100% $ 163,677 $ 90,683 80 %
Diluted earnings per share $ 1.31 $ 0.39 > 100% $ 4.55 $ 2.50 82 %
 
North America
Net sales:
Products $ 1,169,924 $ 1,249,420 (6 %) $ 4,723,071 $ 4,662,473 1 %
Services $ 174,452 $ 128,971 35 % $ 639,910 $ 519,261 23 %
Total net sales $ 1,344,376 $ 1,378,391 (2 %) $ 5,362,981 $ 5,181,734 3 %
Gross profit $ 187,480 $ 174,569 7 % $ 732,695 $ 691,677 6 %
Gross margin 13.9 % 12.7 % 120 bps 13.7 % 13.3 % 40 bps
Selling and administrative expenses $ 142,453 $ 135,369 5 % $ 545,091 $ 530,792 3 %
Severance and restructuring expenses $ 583 $ 1,965 (70 %) $ 1,617 $ 4,010 (60 %)
Acquisition-related expenses $ $ $ 282 $ 3,223 (91 %)
Earnings from operations $ 44,444 $ 37,235 19 % $ 185,705 $ 153,652 21 %
 
Sales Mix ** **
Hardware 66 % 64 % 1 % 67 % 65 % 8 %
Software 21 % 27 % (24 %) 21 % 25 % (15 %)
Services   13 %   9 % 35 %   12 %   10 % 23 %
  100 %   100 % (2 %)   100 %   100 % 3 %
 
EMEA
Net sales:
Products $ 332,244 $ 333,540 $ 1,390,008 $ 1,246,952 11 %
Services $ 36,147 $ 33,267 9 % $ 140,233 $ 108,464 29 %
Total net sales $ 368,391 $ 366,807 $ 1,530,241 $ 1,355,416 13 %
Gross profit $ 56,219 $ 50,413 12 % $ 221,467 $ 190,310 16 %
Gross margin 15.3 % 13.7 % 160 bps 14.5 % 14.0 % 50 bps
Selling and administrative expenses $ 45,087 $ 42,442 6 % $ 182,470 $ 164,305 11 %
Severance and restructuring expenses $ 132 $ 826 (84 %) $ 1,677 $ 4,888 (66 %)
Loss on sale of foreign entity $ $ $ $ 3,646 *
Acquisition-related expenses $ $ $ $ 106 *
Earnings from operations $ 11,000 $ 7,145 54 % $ 37,320 $ 17,365 > 100%
 
Sales Mix ** **
Hardware 40 % 37 % 8 % 43 % 40 % 22 %
Software 50 % 54 % (6 %) 48 % 52 % 4 %
Services   10 %   9 % 9 %   9 %   8 % 29 %
  100 %   100 %   100 %   100 % 13 %
 
 
* Percentage change not considered meaningful.
** 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 December 31,     Twelve Months Ended December 31,
2018   2017   change 2018   2017   change
APAC  
Net sales:
Products $ 22,882 $ 29,378 (22 %) $ 136,859 $ 129,319 6 %
Services $ 13,397 $ 9,499 41 % $ 50,055 $ 37,154 35 %
Total net sales $ 36,279 $ 38,877 (7 %) $ 186,914 $ 166,473 12 %
Gross profit $ 10,465 $ 7,901 32 % $ 39,556 $ 36,583 8 %
Gross margin 28.8 % 20.3 % 850 bps 21.2 % 22.0 % (80 bps)
Selling and administrative expenses $ 7,250 $ 6,743 8 % $ 28,968 $ 28,231 3 %
Severance and restructuring expenses $ $ $ 130 $ 104 25 %
Earnings from operations $ 3,215 $ 1,158 > 100% $ 10,458 $ 8,248 27 %
 
Sales Mix ** **
Hardware 19 % 25 % (26 %) 16 % 17 % 6 %
Software 44 % 51 % (20 %) 57 % 61 % 6 %
Services   37 %   24 % 41 %   27 %   22 % 35 %
  100 %   100 % (7 %)   100 %   100 % 12 %
 
 
* Percentage change not considered meaningful.
** 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 diluted earnings per share for the full year 2019, and
the assumptions relating thereto, as well as the Company’s anticipated
effective tax rate and capital expenditures, expected average share
count, and the Company’s expectations regarding cash flow, 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, 2017 and in other of the Company’s subsequent filings
with the Securities and Exchange Commission:

  • actions of the Company’s competitors, including manufacturers and
    publishers of products the Company sells;
  • the Company’s reliance on 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 information technology (“IT”) industry and/or rapid
    changes in technology;
  • risks associated with the integration and operation of acquired
    businesses;
  • possible significant fluctuations in the Company’s future operating
    results;
  • the risks associated with the Company’s international operations;
  • general economic conditions;
  • increased debt and interest expense and decreased availability of
    funds under the Company’s financing facilities;
  • the security of the Company’s electronic and other confidential
    information;
  • disruptions in the Company’s IT systems and voice and data networks;
  • failure to comply with the terms and conditions of the Company’s
    commercial and public sector contracts;
  • legal proceedings and the results of client and public sector audits
    and failure to comply with laws and regulations;
  • accounts receivable risks, including increased credit loss experience
    or extended payment terms with the Company’s clients;
  • the Company’s reliance on independent shipping companies;
  • the Company’s 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; 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, 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

December 31,

  Twelve Months Ended

December 31,

2018   2017 2018   2017
Net sales:
Products $ 1,525,050 $ 1,612,338 $ 6,249,938 $ 6,038,744
Services   223,996   171,737   830,198   664,879
Total net sales   1,749,046   1,784,075   7,080,136   6,703,623
Costs of goods sold:
Products 1,392,219 1,475,916 5,711,400 5,512,402
Services   102,663   75,276   375,018   272,651
Total costs of goods sold   1,494,882   1,551,192   6,086,418   5,785,053
Gross profit 254,164 232,883 993,718 918,570
Operating expenses:
Selling and administrative expenses 194,790 184,554 756,529 723,328
Severance and restructuring expenses 715 2,791 3,424 9,002
Loss on sale of foreign entity 3,646
Acquisition-related expenses       282   3,329
Earnings from operations 58,659 45,538 233,483 179,265
Non-operating (income) expense:
Interest income (422 ) (346 ) (1,075 ) (1,209 )
Interest expense 5,563 5,360 22,812 19,174
Net foreign currency exchange (gain) loss (1,517 ) (117 ) (1,498 ) 855
Other expense, net   323   367   1,342   1,347
Earnings before income taxes 54,712 40,274 211,902 159,098
Income tax expense   7,671   26,106   48,225   68,415
Net earnings $ 47,041 $ 14,168 $ 163,677 $ 90,683
 
Net earnings per share:
Basic $ 1.33 $ 0.40 $ 4.60 $ 2.54
Diluted $ 1.31 $ 0.39 $ 4.55 $ 2.50
 
Shares used in per share calculations:
Basic   35,480   35,809   35,586   35,741
Diluted   35,999   36,272   36,009   36,207
 
 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

(UNAUDITED)

 
    December 31,

2018

  December 31,

2017

ASSETS
Current assets:
Cash and cash equivalents $ 142,655 $ 105,831
Accounts receivable, net 1,931,736 1,814,560
Inventories 148,503 194,529
Inventories not available for sale 36,956
Other current assets   115,683   152,467
Total current assets 2,338,577 2,304,343
 
Property and equipment, net 72,954 75,252
Goodwill 166,841 131,431
Intangible assets, net 112,179 100,778
Deferred income taxes 7,967 17,064
Other assets   77,429   56,783
$ 2,775,947 $ 2,685,651
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable – trade $ 978,104 $ 899,075
Accounts payable – inventory financing facility 304,130 319,468
Accrued expenses and other current liabilities 190,733 175,860
Current portion of long-term debt 1,395 16,592
Deferred revenue   62,300   88,979
Total current liabilities 1,536,662 1,499,974
 
Long-term debt 195,525 296,576
Deferred income taxes 683 717
Other liabilities   56,088   44,915
  1,788,958   1,842,182
Stockholders’ equity:
Preferred stock
Common stock 355 358
Additional paid-in capital 323,622 317,155
Retained earnings 704,665 550,220
Accumulated other comprehensive loss – foreign currency

translation adjustments

  (41,653 )   (24,264 )
Total stockholders’ equity   986,989   843,469
$ 2,775,947 $ 2,685,651
 
 

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

 
    Twelve Months Ended

December 31,

2018   2017
Cash flows from operating activities:
Net earnings $ 163,677 $ 90,683
Adjustments to reconcile net earnings to net cash provided by

(used in) operating activities:

Depreciation and amortization of property and equipment 21,721 25,787
Amortization of intangible assets 15,737 16,812
Provision for losses on accounts receivable 4,776 5,245
Write-downs of inventories 2,912 2,776
Write-off of property and equipment 393 418
Non-cash stock-based compensation 15,355 12,826
Deferred income taxes 9,126 19,139
Loss on sale of foreign entity 3,646
Loss on extinguishment of debt 624
Changes in assets and liabilities:
Increase in accounts receivable (46,883 ) (208,065 )
Decrease (increase) in inventories 46,534 (14,046 )
Decrease in other assets 12,424 3,342
Increase (decrease) in accounts payable 29,844 (237,457 )
Increase (decrease) in deferred revenue 9,178 (27,184 )
Increase (decrease) in accrued expenses and other liabilities   7,229   (988 )
Net cash provided by (used in) operating activities   292,647   (307,066 )
Cash flows from investing activities:
Acquisitions, net of cash and cash equivalents acquired (74,938 ) (186,932 )
Purchases of property and equipment (17,251 ) (19,230 )
Proceeds from sale of foreign entity   479   1,517
Net cash used in investing activities   (91,710 )   (204,645 )
Cash flows from financing activities:
Borrowings on senior revolving credit facility 569,232 1,151,216
Repayments on senior revolving credit facility (686,732 ) (1,033,716 )
Borrowings on accounts receivable securitization financing facility 3,357,000 3,961,389
Repayments on accounts receivable securitization financing facility (3,188,000 ) (3,975,889 )
Borrowings under Term Loan A 175,000
Repayments under Term Loan A (166,250 ) (8,750 )
Repayments under other financing agreements (2,372 ) (5,636 )
Payments on capital lease obligations (999 ) (1,089 )
Net (repayments) borrowings under inventory financing facility (15,338 ) 141,037
Payment of debt issuance costs (270 ) (1,123 )
Payment of payroll taxes on stock-based compensation through

shares withheld

(3,230 ) (5,318 )
Repurchases of common stock   (22,069 )  
Net cash (used in) provided by financing activities   (159,028 )   397,121
Foreign currency exchange effect on cash, cash equivalents and

restricted cash balances

  (5,061 )   16,089
Increase (decrease) in cash, cash equivalents and restricted cash 36,848 (98,501 )
Cash, cash equivalents and restricted cash at beginning of period   107,445   205,946
Cash, cash equivalents and restricted cash at end of period $ 144,293 $ 107,445
 

Contacts

GLYNIS BRYAN
CHIEF FINANCIAL OFFICER
480.333.3390
glynis.bryan@insight.com

HELEN JOHNSON
SENIOR VP, FINANCE
480.333.3234
helen.johnson@insight.com

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