Ingram Micro Reports Third Quarter 1999 Results In Line With Earlier Estimates

SANTA ANA, Calif. (PROTEXT) - Ingram Micro Inc. (NYSE: IM), the world's largest wholesale provider of technology products and services, today announced its financial results for the third quarter ended Oct. 2, 1999, in line with previous estimates the company made on Sept. 8, 1999. For the quarter, the company posted net sales of $6.71 billion, up 18 percent over the same period a year ago. Net income was $17.6 million, or $0.12 per share, excluding $2.7 million pre-tax in reorganization costs incurred during the period related to streamlining plans the company outlined in March of this year. These results compare with the company's previously announced estimates of net income for the quarter of $15 to $21 million, or $0.10 to $0.14 per diluted share. Including the reorganization costs, net income for the quarter, was $15.8 million, or $0.11 per diluted share. In the third quarter of 1998, the company reported net income of $59.8 million, or $0.40 per diluted share. "As expected, Ingram Micro's third quarter results were negatively affected by the difficult market conditions that are being experienced throughout our industry, including intense competitive pricing and increased reductions in vendor rebates and incentives, primarily in the United States," said Jerre L. Stead, chairman and chief executive officer. "Despite these short-term issues, Ingram Micro continues to be well- positioned strategically," he said. "We continue to experience solid demand for our core products and services and pursue emerging opportunities in areas such as logistics outsourcing for our business partners. Increasing numbers of resellers, manufacturers and Internet retailers are aligning with Ingram Micro and other industry leaders in distribution to form strategic relationships to serve the technology market. Our experienced management team is focused on providing value-added services to our customers, increasing the efficiencies of our operations, and pursuing new growth opportunities during this industry transition." For the first three quarters of 1999, net sales for the company grew 28 percent to $20.24 billion. Year-to-date through the third quarter of 1999, net income was $108.4 million, or $0.73 per diluted share, and compares to $172.0 million or $1.15 per diluted share for the same period in 1998. About Ingram Micro Ingram Micro Inc. (NYSE: IM), headquartered in Santa Ana, Calif., is the world's largest wholesale provider of technology products and services, and a leader of assembly and integration services with sales of $26.5 billion for the past four reported quarters. The company and its subsidiaries operate in 34 countries and distribute more than 225,000 products to more than 140,000 resellers in 130 countries. Ingram Micro can be found at ingrammicro.com. INGRAM MICRO INC. CONSOLIDATED BALANCE SHEET (Dollars in 000s, except per share data) (Unaudited) October 2, January 2, 1999 1999 ASSETS Current assets: Cash $134,963 $96,682 Trade accounts receivable, net 2,738,539 2,562,050 Inventories 2,735,175 3,094,227 Other current assets 351,949 278,591 Total current assets 5,960,626 6,031,550 Property and equipment, net 298,792 254,718 Goodwill, net 455,732 232,112 Other 485,457 215,024 Total assets $7,200,607 $6,733,404 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,419,738 $3,306,045 Accrued expenses 327,044 254,627 Current maturities of long-term debt 31,615 38,978 Total current liabilities 3,778,397 3,599,650 Convertible debentures 434,433 473,475 Other long-term debt 1,037,616 1,208,003 Other 90,259 53,019 Total liabilities 5,340,705 5,334,147 Stockholders' equity 1,859,902 1,399,257 Total liabilities and stockholders' equity $7,200,607 $6,733,404 CONSOLIDATED STATEMENT OF INCOME (Dollars in 000s, exceptper share data) (Unaudited) Thirteen Weeks Ended Thirty-nine Weeks Ended October 2, October 3, October 2, October 3, 1999 1998 1999 1998 Net sales $6,710,093 $5,707,974 $20,240,181 $15,814,183 Cost of sales 6,388,205 5,350,176 19,191,211 14,810,993 Gross profit 321,888 357,798 1,048,970 1,003,190 Selling, general and administrative expenses 266,447 239,370 792,131 657,808 Income from operations before reorganization costs 55,441 118,428 256,839 345,382 Reorganization costs 2,675 -- 10,959 -- Income from operations 52,766 118,428 245,880 345,382 Interest and other expense 28,015 19,106 80,364 59,433 Income before income taxes 24,751 99,322 165,516 285,949 Provision for income taxes 8,913 39,530 60,863 113,996 Income before extraordinary items 15,838 59,792 104,653 171,953 Extraordinary gain on repurchase of debentures ($6,183, net of $2,405 in income taxes) -- -- 3,778 -- Net income $15,838 $59,792 $108,431 $171,953 Diluted earnings per share $0.11 $0.40 $0.73 $1.15 Diluted weighted average shares outstanding 148,042,324 150,660,080 148,098,240 149,591,271 ots Original Text Service: Ingram Micro Inc. Internet: http://www.newsaktuell.de Contact: investor relations, Kim Strohm, 714-382-4400, or media relations, Cara Stewart, 714-382- 1404, both of Ingram Micro Inc. Web site: http://www.ingrammicro.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT