BusinessWire

Insight Enterprises, Inc. Reports Second Quarter 2020 Results

TEMPE, Ariz.--(BUSINESS WIRE)--#earnings--Insight Enterprises, Inc. (Nasdaq: NSIT) (the “Company”) today reported financial results for the quarter ended June 30, 2020. Highlights include:

  • Record cash flows from operating activities
  • Net sales increased 7% year over year to $1.97 billion
  • Gross profit increased 18% year over year to $324.4 million
  • Earnings from operations increased 3% to $74.2 million
  • Adjusted earnings from operations increased 15% to $91.8 million
  • Diluted earnings per share of $1.32 decreased 5% year to year
  • Adjusted diluted earnings per share of $1.75 increased 11% year over year

In the second quarter of 2020, net sales increased 7%, year over year, primarily as a result of our acquisition of PCM, Inc. (“PCM”) on August 30, 2019. Excluding PCM, net sales in our core business would have been down due to the negative impact of the COVID-19 pandemic. Gross profit increased 18%, year over year, and gross margin increased 150 basis points compared to the second quarter of 2019. The increase in gross profit and gross margin reflects our continued emphasis on growing our higher margin cloud and services business. Diluted earnings per share was $1.32, down 5%, year to year, and adjusted diluted earnings per share was $1.75, up 11%, year over year.

In a challenging demand environment our operating priorities for the quarter were clear. We tightened the health and safety standards in our warehouses and mobilized most of our teammates to work from home, which allowed us to continue to support our clients’ most pressing IT needs,” stated Ken Lamneck, President and Chief Executive Officer. “We also reduced our discretionary operating expenses sequentially and delivered strong cash flow results, all while driving double digit adjusted earnings growth year over year,” stated Lamneck.

KEY HIGHLIGHTS

  • We continued to support clients with their changing needs in response to the COVID-19 global pandemic. Through our four solution areas, we have accelerated the use of digital marketing platforms to bring relevant solutions to our clients through webinars, ecommerce demonstrations and market intelligence and research.
  • We maintained our focus on successfully integrating the PCM business and are nearing completion with the onboarding of almost all PCM clients to our systems. We aligned our go-to-market structure in North America and EMEA and believe we are well positioned to compete as a single brand in the marketplace. We are currently ahead of our first-year expectations in annualized run-rate cost savings based on our previously disclosed total commitment of $70 million over two years.
  • Cash flow from operations for the first half of 2020 of $497.5 million increased more than 100% year over year when compared to the first half of 2019.
  • We believe that we have a strong balance sheet and healthy liquidity position, including amounts available under our ABL facility with current capacity of up to $1.2 billion, of which $144.0 million in loans were outstanding at June 30, 2020.
  • Consolidated net sales for the second quarter of 2020 of $1.97 billion increased 7% year over year when compared to the second quarter of 2019.
    • Net sales in North America increased 10% year over year to $1.54 billion;
    • Net sales in EMEA increased 3% year over year to $392.0 million; and
    • Net sales in APAC decreased 27% year to year to $37.6 million.
  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales increased 8% year over year, with growth in net sales in North America and EMEA of 10% and 6%, respectively, year over year partially offset by a decline in APAC of 23%, year to year.
  • Consolidated gross profit increased to $324.4 million, an increase of 18% compared to the second quarter of 2019, with consolidated gross margin expanding 150 basis points to 16.5% of net sales.
    • Gross profit in North America increased 23% year over year to $244.9 million (15.9% gross margin);
    • Gross profit in EMEA increased 6% year over year to $68.2 million (17.4% gross margin); and
    • Gross profit in APAC decreased 5% year to year to $11.3 million (30.1% 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 and EMEA of 23% and 8%, respectively, year over year. Gross profit in APAC was flat year over year.
  • Consolidated earnings from operations increased 3% compared to the second quarter of 2019 to $74.2 million, or 3.8% of net sales.
    • Earnings from operations in North America increased 2% year over year to $52.1 million, or 3.4% of net sales;
    • Earnings from operations in EMEA increased 8% year over year to $17.9 million, or 4.6% of net sales; and
    • Earnings from operations in APAC decreased 8% year to year to $4.2 million, or 11.2% of net sales.
  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 4% year over year, with increased earnings from operations in North America and EMEA of 3% and 10%, respectively, year over year, partially offset by decreased earnings from operations in APAC of 4%, year to year.
  • Adjusted earnings from operations increased 15% compared to the second quarter of 2019 to $91.8 million, or 4.7% of net sales.
    • Adjusted earnings from operations in North America increased 15% year over year to $67.0 million, or 4.4% of net sales;
    • Adjusted earnings from operations in EMEA increased 22% year over year to $20.5 million, or 5.2% of net sales; and
    • Adjusted earnings from operations in APAC decreased 8% year to year to $4.3 million, or 11.5% of net sales.
  • Consolidated net earnings and diluted earnings per share for the second quarter of 2020 were $46.4 million and $1.32, respectively, at an effective tax rate of 26.2%.
  • Adjusted consolidated net earnings and Adjusted diluted earnings per share for the second quarter of 2020 were $61.8 million and $1.75, respectively.

In discussing financial results for the three and six months ended June 30, 2020 and 2019 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 AND ANTICIPATED COVID-19 IMPACT

When reporting its first quarter financial results, the Company withdrew its 2020 guidance for net sales and Adjusted diluted earnings per share due to the high level of economic uncertainty and disruption caused by COVID-19. We observed a pronounced impact of COVID-19 on our second quarter financial results compared to internal budgets and we anticipate demand for our products and services will continue to be down in the third quarter of 2020, as clients continue to evaluate the impact of COVID-19 on their businesses, their profitability and their liquidity. The ultimate extent of the impact of the COVID-19 pandemic on our business operations, financial performance and results of operations, including our ability to execute our business strategies and initiatives in the expected time frame, is currently unknown and will depend on future developments, which are highly uncertain, continuously evolving and cannot be predicted. This includes, but is not limited to, the duration and spread of the COVID-19 pandemic, its severity, the actions taken to contain the virus or treat its impact, such as restrictions on travel and transportation, and how quickly and to what extent normal economic and operating conditions can resume.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live web cast today at 9:00 a.m. ET to discuss second quarter 2020 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 1-833-922-2056 if located in the U.S., 409-330-8713 for international callers, and enter the access code 1769399.

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 and integration 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 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 and integration related expenses, (iii) impairment of construction in progress, and (iv) the tax effects of each of these items, as applicable.

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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

2019

 

change

 

 

2020

 

2019

 

change

Insight Enterprises, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

1,672,933

 

$

1,594,335

 

5

%

 

 

$

3,521,249

 

$

3,061,007

 

15

%

Services

 

$

295,802

 

$

241,686

 

22

%

 

 

$

591,537

 

$

460,480

 

28

%

Total net sales

 

$

1,968,735

 

$

1,836,021

 

7

%

 

 

$

4,112,786

 

$

3,521,487

 

17

%

Gross profit

 

$

324,389

 

$

275,449

 

18

%

 

 

$

649,725

 

$

523,921

 

24

%

Gross margin

 

 

16.5%

 

 

15.0%

 

150 bps

 

 

 

15.8%

 

 

14.9%

 

90 bps

Selling and administrative expenses

 

$

242,580

 

$

199,489

 

22

%

 

 

$

511,443

 

$

390,552

 

31

%

Severance and restructuring expenses

 

$

7,010

 

$

680

 

> 100%

 

 

$

9,154

 

$

1,050

 

> 100%

Acquisition and integration related expenses

 

$

611

 

$

3,163

 

(81

%)

 

 

$

2,077

 

$

3,163

 

(34

%)

Earnings from operations

 

$

74,188

 

$

72,117

 

3

%

 

 

$

127,051

 

$

129,156

 

(2

%)

Net earnings

 

$

46,385

 

$

49,998

 

(7

%)

 

 

$

80,346

 

$

89,325

 

(10

%)

Diluted earnings per share

 

$

1.32

 

$

1.38

 

(5

%)

 

 

$

2.27

 

$

2.47

 

(8

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

1,310,172

 

$

1,225,666

 

7

%

 

 

$

2,743,821

 

$

2,296,082

 

20

%

Services

 

$

228,975

 

$

179,841

 

27

%

 

 

$

469,707

 

$

351,866

 

33

%

Total net sales

 

$

1,539,147

 

$

1,405,507

 

10

%

 

 

$

3,213,528

 

$

2,647,948

 

21

%

Gross profit

 

$

244,896

 

$

199,059

 

23

%

 

 

$

501,824

 

$

381,666

 

31

%

Gross margin

 

 

15.9%

 

 

14.2%

 

170 bps

 

 

 

15.6%

 

 

14.4%

 

120 bps

Selling and administrative expenses

 

$

187,313

 

$

144,498

 

30

%

 

 

$

398,516

 

$

281,448

 

42

%

Severance and restructuring expenses

 

$

4,904

 

$

480

 

> 100%

 

 

$

7,026

 

$

811

 

> 100%

Acquisition and integration related expenses

 

$

611

 

$

3,163

 

(81

%)

 

 

$

1,873

 

$

3,163

 

(41

%)

Earnings from operations

 

$

52,068

 

$

50,918

 

2

%

 

 

$

94,409

 

$

96,244

 

(2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

 

 

**

 

 

 

 

 

 

 

 

 

**

 

Hardware

 

 

66%

 

 

67%

 

9

%

 

 

 

67%

 

 

64%

 

28

%

Software

 

 

19%

 

 

20%

 

(1

%)

 

 

 

18%

 

 

23%

 

(3

%)

Services

 

 

15%

 

 

13%

 

27

%

 

 

 

15%

 

 

13%

 

33

%

 

 

 

100%

 

 

100%

 

10

%

 

 

 

100%

 

 

100%

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

340,036

 

$

333,037

 

2

%

 

 

$

716,087

 

$

687,710

 

4

%

Services

 

$

51,981

 

$

46,137

 

13

%

 

 

$

94,816

 

$

81,639

 

16

%

Total net sales

 

$

392,017

 

$

379,174

 

3

%

 

 

$

810,903

 

$

769,349

 

5

%

Gross profit

 

$

68,180

 

$

64,450

 

6

%

 

 

$

126,954

 

$

121,433

 

5

%

Gross margin

 

 

17.4%

 

 

17.0%

 

40 bps

 

 

 

15.7%

 

 

15.8%

 

(10 bps)

Selling and administrative expenses

 

$

48,177

 

$

47,652

 

1

%

 

 

$

98,421

 

$

94,797

 

4

%

Severance and restructuring expenses

 

$

2,093

 

$

200

 

> 100%

 

 

$

2,099

 

$

115

 

> 100%

Acquisition and integration related expenses

 

$

 

$

 

 

 

 

 

$

204

 

$

 

*

Earnings from operations

 

$

17,910

 

$

16,598

 

8

%

 

 

$

26,230

 

$

26,521

 

(1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

 

 

**

 

 

 

 

 

 

 

 

 

**

Hardware

 

 

39%

 

 

38%

 

7

%

 

 

 

40%

 

 

41%

 

4

%

Software

 

 

48%

 

 

50%

 

(2

%)

 

 

 

48%

 

 

48%

 

4

%

Services

 

 

13%

 

 

12%

 

13

%

 

 

 

12%

 

 

11%

 

16

%

 

 

 

100%

 

 

100%

 

3

%

 

 

 

100%

 

 

100%

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

2019

 

change

 

 

2020

 

2019

 

change

APAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

22,725

 

$

35,632

 

(36

%)

 

 

$

61,341

 

$

77,215

 

(21

%)

Services

 

$

14,846

 

$

15,708

 

(5

%)

 

 

$

27,014

 

$

26,975

 

 

 

Total net sales

 

$

37,571

 

$

51,340

 

(27

%)

 

 

$

88,355

 

$

104,190

 

(15

%)

Gross profit

 

$

11,313

 

$

11,940

 

(5

%)

 

 

$

20,947

 

$

20,822

 

1

%

Gross margin

 

 

30.1%

 

 

23.3%

 

680 bps

 

 

 

23.7%

 

 

20.0%

 

370 bps

Selling and administrative expenses

 

$

7,090

 

$

7,339

 

(3

%)

 

 

$

14,506

 

$

14,307

 

1

%

Severance and restructuring expenses

 

$

13

 

$

 

*

 

 

$

29

 

$

124

 

(77

%)

Earnings from operations

 

$

4,210

 

$

4,601

 

(8

%)

 

 

$

6,412

 

$

6,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Mix

 

 

 

 

 

 

 

**

 

 

 

 

 

 

 

 

**

Hardware

 

 

18%

 

 

19%

 

(32

%)

 

 

 

16%

 

 

16%

 

(12

%)

Software

 

 

42%

 

 

50%

 

(38

%)

 

 

 

53%

 

 

58%

 

(23

%)

Services

 

 

40%

 

 

31%

 

(5

%)

 

 

 

31%

 

 

26%

 

 

 

 

 

 

100%

 

 

100%

 

(27

%)

 

 

 

100%

 

 

100%

 

(15

%)

* 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 those related to our future responses to and the potential impact of coronavirus strain COVID-19 (“COVID-19”) on our Company, the Company’s future financial performance and results of operations, the Company’s anticipated effective tax rate, capital expenditures, expected average share count, the Company’s expectations regarding cash flow, the Company’s expectations about future benefits relating to the PCM integration, including expected synergies, future trends in the IT market, including due to COVID-19, our business strategy and our strategic initiatives, and the completion of the sale of certain real estate, 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, 2019, and in “Risk Factors” in Part II, Item 1A of the Company’s Quarterly Report on form 10-Q for the quarter ended June 30, 2020:

  • the duration and severity of the COVID-19 pandemic and its effects on our business, results of operations and financial condition, as well as the widespread outbreak of any other illnesses or communicable diseases;
  • 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 in 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 and the achievement of expected synergies and benefits;
  • possible significant fluctuations in our future operating results as well as seasonality and variability in 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;
  • cyberattacks or breaches of data privacy and security regulations;
  • 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;
  • our substantial indebtedness;
  • the conditional conversion feature of the convertible notes, which 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 convertible 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;
  • the Company is subject to counterparty risk with respect to the convertible note hedge transactions; and
  • risks associated with the discontinuation of LIBOR as a benchmark rate.

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, the related conference call and webcast speak only as of the date on which they are made and 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

June 30,

 

Six Months Ended

June 30,

 

 

2020

 

2019

 

2020

 

2019

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

1,672,933

 

$

1,594,335

 

$

3,521,249

 

$

3,061,007

Services

 

 

295,802

 

 

241,686

 

 

591,537

 

 

460,480

Total net sales

 

 

1,968,735

 

 

1,836,021

 

 

4,112,786

 

 

3,521,487

Costs of goods sold:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

 

1,517,947

 

 

1,458,916

 

 

3,188,185

 

 

2,796,224

Services

 

 

126,399

 

 

101,656

 

 

274,876

 

 

201,342

Total costs of goods sold

 

 

1,644,346

 

 

1,560,572

 

 

3,463,061

 

 

2,997,566

Gross profit

 

 

324,389

 

 

275,449

 

 

649,725

 

 

523,921

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative expenses

 

 

242,580

 

 

199,489

 

 

511,443

 

 

390,552

Severance and restructuring expenses, net

 

 

7,010

 

 

680

 

 

9,154

 

 

1,050

Acquisition and integration related expenses

 

 

611

 

 

3,163

 

 

2,077

 

 

3,163

Earnings from operations

 

 

74,188

 

 

72,117

 

 

127,051

 

 

129,156

Non-operating (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

10,219

 

 

4,335

 

 

22,045

 

 

8,887

Other (income) expense, net

 

 

1,098

 

 

346

 

 

(465)

 

 

1,396

Earnings before income taxes

 

 

62,871

 

 

67,436

 

 

105,471

 

 

118,873

Income tax expense

 

 

16,486

 

 

17,438

 

 

25,125

 

 

29,548

Net earnings

 

$

46,385

 

$

49,998

 

$

80,346

 

$

89,325

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.32

 

$

1.40

 

$

2.29

 

$

2.50

Diluted

 

$

1.32

 

$

1.38

 

$

2.27

 

$

2.47

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,060

 

 

35,772

 

 

35,147

 

 

35,691

Diluted

 

 

35,260

 

 

36,111

 

 

35,453

 

 

36,107

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

June 30,

2020

 

December 31,

2019

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

153,866

 

 

$

114,668

 

Accounts receivable, net

 

 

2,677,564

 

 

 

2,511,383

 

Inventories

 

 

212,980

 

 

 

190,833

 

Other current assets

 

 

220,080

 

 

 

231,148

 

Total current assets

 

 

3,264,490

 

 

 

3,048,032

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

127,490

 

 

 

130,907

 

Goodwill

 

 

415,897

 

 

 

415,149

 

Intangible assets, net

 

 

261,254

 

 

 

278,584

 

Other assets

 

 

272,347

 

 

 

305,507

 

 

 

$

4,341,478

 

 

$

4,178,179

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable – trade

 

$

1,796,918

 

 

$

1,275,957

 

Accounts payable – inventory financing facilities

 

 

261,133

 

 

 

253,676

 

Accrued expenses and other current liabilities

 

 

371,401

 

 

 

352,204

 

Current portion of long-term debt

 

 

1,509

 

 

 

1,691

 

Total current liabilities

 

 

2,430,961

 

 

 

1,883,528

 

 

 

 

 

 

 

 

Long-term debt

 

 

435,955

 

 

 

857,673

 

Deferred income taxes

 

 

43,880

 

 

 

44,633

 

Other liabilities

 

 

223,326

 

 

 

232,027

 

 

 

 

3,134,122

 

 

 

3,017,861

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

351

 

 

 

353

 

Additional paid-in capital

 

 

354,431

 

 

 

357,032

 

Retained earnings

 

 

900,950

 

 

 

841,097

 

Accumulated other comprehensive loss – foreign currency

translation adjustments

 

 

(48,376

)

 

 

(38,164

)

Total stockholders’ equity

 

 

1,207,356

 

 

 

1,160,318

 

 

 

$

4,341,478

 

 

$

4,178,179

 


Contacts

Glynis Bryan
Chief Financial Officer
Tel. 480.333.3390
Email glynis.bryan@insight.com

Helen Johnson
Senior VP, Finance
Tel. 480.333.3234
Email helen.johnson@insight.com


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