•Net sales of $11.8 billion

•Gross margin up 2 basis points year-over-year

•Net income of $77.0 million and non-GAAP net income of $159.2 million

•Diluted earnings per share (“EPS”) of $0.35 and non-GAAP diluted EPS of $0.72

•Cash used in operations of $277.0 million and adjusted free cash flow of $(254.6) million

•On a year-to-date basis, cash provided by operations of $23.9 million and adjusted free cash flow of $106.1 million

Consolidated Fiscal Third Quarter 2024 Results(1)

IRVINE, Calif.— (BUSINESS WIRE) —Nov. 12, 2024—Ingram Micro Holding Corporation (NYSE: INGM) (“Ingram Micro” or the “Company”) today reported fiscal third quarter results for the period ended September 28, 2024. The Company reported third-quarter net sales of $11.8 billion, net income on a GAAP basis of $77.0 million or $0.35 per share, and non-GAAP net income of $159.2 million or $0.72 per share.(1)

•Net sales totaled $11.8 billion, compared to $11.9 billion in the prior fiscal third quarter, representing a decrease of 1.4%. The year-over-year decrease was primarily a result of lower net sales in our North America and Latin America regions, partially offset by net sales growth in our Asia-Pacific region.

•Gross profit was $845.5 million, compared to $854.8 million in the prior fiscal third quarter.

•Gross margin was 7.19%, compared to 7.17% in the prior fiscal third quarter. The year-over-year increase in gross margin was driven by a shift in sales mix towards our higher-margin cloud-based solutions and Other services net sales particularly in North America.

•Income from Operations was $218.2 million, compared to $212.4 million in the prior fiscal third quarter. Adjusted income from operations was $253.9 million, compared to $265.5 million in the prior fiscal third quarter. Included in the results for the fiscal third quarter of 2024 are $8.8 million of costs, or seven basis points of net sales, associated with the September 2024 refinancing of our Term Loan B and Asset Backed Lending facility. This extended the maturities of these facilities to 2031 and 2029 respectively, while also reducing the interest rate spread on the Term Loan B by twenty-five basis points.

•Income from operations margin was 1.85%, compared to 1.78% in the prior fiscal third quarter. This year-over-year increase was primarily due to restructuring costs incurred in the prior fiscal third quarter, as well as the increase in gross margin year-over-year.

•Adjusted EBITDA was $331.6 million, compared to $314.0 million in the prior fiscal third quarter.

•Diluted EPS was $0.35, compared to $0.39 in the prior fiscal third quarter. Non-GAAP diluted EPS was $0.72, compared to $0.67 in the prior fiscal third quarter.

•Cash used in operations was $277.0 million, compared to $256.0 million in the prior fiscal third quarter, and adjusted free cash flow was $(254.6) million, compared to $(281.5) million in the prior fiscal third quarter. We typically invest in inventory during our fiscal third quarter to serve higher seasonal sales in our fiscal fourth quarter.

•Year-to-date cash provided by operations is $23.9 million and adjusted free cash flow is a positive $106.1 million, compared to $59.8 million and $6.5 million in the same period in 2023. We continue to manage our balance sheet with a focus on return on investment, profitable growth, and quality of net sales over time.

North America

EMEA

The following outlook is forward-looking, based on the Company’s current expectations for the fiscal fourth quarter 2024, and actual results may differ materially from what is indicated. We provide EPS guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control.(1)

(1) Use of Non-GAAP Financial Measures

Results of Operations

INGRAM MICRO HOLDING CORPORATION

(Unaudited)

			September 28, 2024						December 30, 2023
ASSETS
Current assets:
Cash and cash equivalents			$	849,472					$	948,490
Trade accounts receivable (less allowances of $173,209 and $163,727, respectively)			8,873,468						8,988,799
Inventory			4,939,438						4,659,624
Other current assets			819,476						757,404
Total current assets			15,481,854						15,354,317
Property and equipment, net			484,575						452,613
Operating lease right-of-use assets			419,866						430,705
Goodwill			850,065						851,780
Intangible assets, net			814,850						880,433
Other assets			511,513						450,466
Total assets			$	18,562,723					$	18,420,314
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	9,468,084					$	9,230,439
Accrued expenses and other			970,954						1,061,409
Short-term debt and current maturities of long-term debt			494,418						265,719
Short-term operating lease liabilities			104,258						105,564
Total current liabilities			11,037,714						10,663,131
Long-term debt, less current maturities			3,344,033						3,657,889
Long-term operating lease liabilities, net of current portion			359,244						366,139
Other liabilities			207,827						226,866
Total liabilities			14,948,818						14,914,025
Commitments and contingencies
Stockholders’ equity:
Class A Common Stock, par value $0.01, 251,015,810 shares authorized at September 28, 2024 and December 30, 2023, respectively; and 220,742,854 shares issued and outstanding at September 28, 2024 and December 30, 2023, respectively			2,207						2,207
Class B Common Stock, par value $0.01, 2,510,158 shares authorized at September 28, 2024 and December 30, 2023, respectively; and 1,657,146 shares issued and outstanding September 28, 2024 and December 30, 2023, respectively			17						17
Additional paid-in capital			2,643,807						2,655,776
Retained earnings			1,254,283						1,079,776
Accumulated other comprehensive loss			(286,409)						(231,487)
Total stockholders’ equity			3,613,905						3,506,289
Total liabilities and stockholders’ equity			$	18,562,723					$	18,420,314

•Adjusted Income from Operations means income from operations plus (i) amortization of intangibles, (ii) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (iii) integration and transition costs and (iv) the advisory fees paid to Platinum Advisors under a corporate advisory services agreement (which has been terminated as a result of our initial public offering (“IPO”)) (such terminated agreement, the “CASA”).

•We define Adjusted EBITDA as EBITDA (calculated as net income before net interest expense, income taxes, depreciation and amortization expenses) adjusted to give effect to (i) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (ii) net realized and unrealized foreign currency exchange gains and losses including net gains and losses on derivative instruments not receiving hedge accounting treatment, (iii) costs of integration, transition, and operational improvement initiatives, as well as consulting, retention and transition costs associated with our organizational effectiveness programs charged to selling, general and administrative expenses, (iv) the advisory fees paid to Platinum Advisors under the CASA, (v) cash-based compensation expense associated with our cash-based long-term incentive program for certain employees in lieu of equity-based compensation and (vi) certain other items as defined in our credit agreements.

•Return on Invested Capital is defined as net income divided by the invested capital for the period. Invested capital is equal to stockholders’ equity plus long-term debt plus short-term debt and the current maturities of long-term debt less cash and cash equivalents at the end of each period.

•Adjusted Return on Invested Capital is defined as Adjusted Net Income divided by the invested capital for the period. Adjusted Net Income for a particular period is defined as net income plus (i) other income/expense, (ii) amortization of intangibles, (iii) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (iv) integration and transition costs, (v) the advisory fees paid to Platinum Advisors under the CASA, plus (vi) the GAAP tax provisions for and/or valuation allowances on items (i), (ii), (iii), (iv) and (v) plus (vii) the GAAP tax provisions for and/or valuation allowances on large non-recurring or discrete items.

•We define Non-GAAP Net Income as Net Income adjusted to give effect to (i) amortization of intangibles, (ii) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (iii) net realized and unrealized foreign currency exchange gains and losses including net gains and losses on derivative instruments not receiving hedge accounting treatment, (iv) costs of integration, transition, and operational improvement initiatives, as well as consulting, retention and transition costs associated with our organizational effectiveness programs charged to selling, general and administrative expenses, (v) the advisory fees paid to Platinum Advisors under the CASA, (vi) cash-based compensation expense associated with our cash-based long-term incentive program for certain employees in lieu of equity-based compensation, (vii) certain other items as defined in our credit agreements, (viii) the GAAP tax provisions for and/or valuation allowances on items (i), (ii), (iii), (iv), (v), (vi) and (vii), and (ix) the GAAP tax provisions for and/or valuation allowances on large non-recurring or discrete items. This metric differs from Adjusted Net Income, which is a component of Adjusted ROIC as shown below.

•We define non-GAAP basic EPS as Non-GAAP Net Income divided by the weighted-average shares outstanding during the period presented. Non-GAAP diluted EPS is calculated by dividing Non-GAAP Net Income by the weighted-average shares outstanding during the period presented, inclusive of the dilutive effect of participating securities, of which there were none outstanding for the period presented below.