Ingram Micro Reports 2012 Fourth Quarter Financial Results

          Ingram Micro Reports 2012 Fourth Quarter Financial Results

Achieves Record Quarterly Revenue and Gross Profit

BrightPoint Contributes $1 Billion to Revenues and is 4 Cents Accretive to
EPS, Excluding Acquisition Related Costs

PR Newswire

SANTA ANA, Calif., Feb. 13, 2013

SANTA ANA, Calif., Feb. 13, 2013 /PRNewswire/ --Ingram Micro Inc. (NYSE: IM),
the world's largest wholesale technology distributor and a global leader in IT
supply-chain, mobile device lifecycle services and logistics solutions, today
announced financial results for the fourth quarter ended December 29, 2012.

Worldwide sales of $11.38 billion were an all-time quarterly record,
increasing 14 percent in U.S. dollars when compared with $9.95 billion in the
fourth quarter last year. The translation effect of foreign currencies had a
negative impact of one percent on worldwide sales growth as compared with the
prior year. The company's recently completed acquisitions of BrightPoint, Inc.
and Aptec Holdings Ltd. contributed approximately $1 billion and $75 million,
respectively, to the quarter's revenues. BrightPoint's contribution to the
company's fourth quarter revenues is for the period of October 16, 2012
through the end of the quarter, reflecting BrightPoint's acquisition by Ingram
Micro on October 15, 2012.

Worldwide gross profit also hit an all-time quarterly record of $661.2 million
(5.81 percent of total sales), compared with $554.3 million (5.57 percent of
total sales) in the 2011 fourth quarter. BrightPoint was accretive to 2012
fourth quarter gross profit as a percentage of revenue by approximately 45
basis points. 2011 fourth quarter gross profit as a percentage of revenue
benefited by approximately 30 basis points from favorable pricing on hard disk
drives.

Operating income was $167.9 million (1.48 percent of total sales), which
includes $8.6 million, or 8 basis points, in restructuring and
acquisition-related costs as discussed below, as well as an additional $8.2
million, or 7 basis points, in amortization of intangibles related to the
acquisition of BrightPoint. This compares to 2011 fourth quarter operating
income of $176.1 million (1.77 percent of total sales), which benefited by
approximately 30 basis points from favorable pricing on hard disk drives.

2012 fourth quarter net income was $101.4 million, or 66 cents per diluted
share, which includes an aggregate net negative impact of 7 cents per diluted
share resulting from the following items:

  oA negative impact from acquisition costs totaling approximately $8.6
    million pretax, or 4 cents per diluted share, consisting primarily of
    legal, consulting and due diligence costs associated with the acquisition
    and integration of BrightPoint, as well as restructuring costs associated
    with other expense reduction programs; and
  oA net negative after tax charge of $4.7 million, or 3 cents per diluted
    share, related to:

       oA charge of $41.8 million for a valuation allowance recorded against
         deferred tax assets in Australia driven by the continuing losses
         generated in that business unit;
       oA benefit of $30.0 million related to the partial release of a
         valuation allowance that had previously been recorded against foreign
         tax credit carryforwards maintained in the U.S., which the company
         now believes will be realized based on inclusion of new foreign
         earnings, including BrightPoint's cumulative non-U.S. earnings;
       oA benefit of $4.9 million in Spain where the operation has generated
         cumulative pre-tax profits over the last three years and has now
         released the valuation allowance that had previously been recorded
         against our deferred tax assets in that country; and
       oA benefit of $2.2 million, driven largely by the realization of
         previously unrecognized tax benefits due to the expiry of the
         respective statutes of limitation in the jurisdictions in which the
         benefits were claimed.

2011 fourth quarter net income was $104.9 million, or 68 cents per diluted
share, including the $0.02 per diluted share negative impact of reorganization
charges recorded in the quarter. Net income for the fourth quarter of the
prior year benefited from favorable pricing on hard disk drives.

Further detail can be found in the financial statements and schedules attached
to this news release or at www.ingrammicro.com.

Key 2012 fourth quarter highlights:

  oNorth America revenues were up 6 percent, the highest sales in more than a
    decade, led by double digit growth in the company's key SMB market and
    very strong sales in the company's higher margin specialty divisions.
  oLatin America delivered all-time record fourth quarter revenues on growth
    of 5 percent in U.S. dollars and led the company in operating income as a
    percentage of sales, which came in at 275 basis points.
  oAsia Pacific achieved a fourth quarter sales record, increasing revenue 11
    percent over last year, as India and China continued to deliver double
    digit growth. The acquisition of Aptec contributed approximately 4
    percentage points of the growth.
  oEurope had a strong close to the quarter, with the region performing
    relatively well given the continued uncertainty surrounding the
    macro-economic environment and a highly competitive selling environment.
    European quarterly revenues were down 4 percent in U.S. dollars and 1
    percent in local currencies, when compared to last year.
  oBrightPoint had solid revenues and delivered accretion contribution above
    the company's expectations entering the quarter. The integration team
    quickly captured near-term cost synergy opportunities helping lead to
    accretion to earnings per diluted share of $0.04, excluding acquisition
    related costs.
  oWorking capital days were 23, towards the lower end of the company's
    targeted range of 22 to 26 days.

"Our fourth quarter financial performance confirmed our improved execution, as
the entire company responded well to the challenge to drive a sense of
urgency, better execution and increased profitability across the
organization," said Alain Monie, president and chief executive officer, Ingram
Micro Inc. "We are clearly executing better against our key strategic
initiatives and we are beginning to see early returns from our organic
investments into areas such as enterprise computing and IM Logistics, as well
as from our acquisitions to drive growth in higher value markets.

"While we are entering 2013 well-positioned to drive better returns on capital
and reasonable revenue growth across the business, there are several key
objectives on which we must deliver," Monie said. "We must return Australia to
a profitable, growing business. We also must continue to execute on the
integration of BrightPoint and realization of cost and revenue synergies. We
will maintain our historic focus on operational excellence, while combining
improvements in returns on invested capital with revenue growth. Additionally,
we will continue to examine opportunities to free up and reallocate capital
from underperforming businesses into areas of better returns. Our overriding
objective is to drive sustainable, long-term shareholder returns."

Bill Humes, chief operating and financial officer, commented: "Our associates
around the world – including those joining us from recent acquisitions – did a
great job responding to challenging market dynamics and delivered strong
financial results for the quarter, including solid management of working
capital. The integration of BrightPoint is progressing well and we were
successful in rapidly capturing early cost synergies, which helped drive
fourth quarter accretion to earnings from that business above our expectations
entering the quarter. We continue to expect to drive annual cost synergies
from the BrightPoint acquisition of at least $55 million for 2014 and
accretion to non-GAAP earnings per diluted share of at least $0.18 in 2013 and
$0.35 in 2014, excluding one-time charges and integration costs, but including
additional amortization of intangibles of approximately $37 million."

Twelve-Month Period

For the twelve months ended December 29, 2012, worldwide sales were $37.8
billion, with gross profit of $2.04 billion (5.38 percent of total sales),
compared with worldwide sales of $36.3 billion, with gross profit of $1.91
billion (5.25 percent of total sales) for last year's twelve-month period.
Twelve-month net income for 2012 was $306.0 million, or $1.99 per diluted
share, versus $244.2 million, or $1.53 per diluted share, for the 2011
twelve-month period.

Outlook 

For the 2013 year, the company currently expects worldwide consolidated
revenue growth in the low teens, which includes the contribution of
BrightPoint. The company affirms its expectations for BrightPoint to be
accretive to 2013 earnings by at least 18 cents per diluted share, which
includes absorbing approximately $37 million, or 17 cents per diluted share,
in additional amortization of intangibles, but excludes integration costs.

For the 2013 first quarter, the company currently expects to experience a
seasonal sequential decline in worldwide consolidated revenue consistent with
the past two years and expects a seasonal sequential decline in gross margin
due primarily to lower contribution from Ingram Micro logistics services.

Conference Call and Webcast

Additional information about Ingram Micro's financial results will be
presented in a conference call with presentation slides today at 5 p.m. ET.
To listen to the conference call webcast and view the accompanying
presentation slides, visit the company's website at www.ingrammicro.com
(Investor Relations section). The conference call is also accessible by
telephone at (888) 455-2260 (toll-free within the United States and Canada) or
(719) 325-2494 (other countries), passcode "3928426."

The replay of the conference call with presentation slides will be available
for one week at www.ingrammicro.com (Investor Relations section) or by calling
(888) 203-1112 or (719) 457-0820 outside the United States and Canada,
passcode "3928426."

Cautionary Statement for the Purpose of the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995

The matters in this press release that are forward-looking statements are
based on current management expectations. Certain risks may cause such
expectations to not be achieved and, in turn, may have a material adverse
effect on Ingram Micro's business, financial condition and results of
operations. Ingram Micro disclaims any duty to update any forward-looking
statements. Important risk factors that could cause actual results to differ
materially from those discussed in the forward-looking statements include,
without limitation: (1) we have made and expect to continue to make
investments in new businesses and initiatives, including acquisitions, which
could disrupt our business and have an adverse effect on our operating
results; (2) we are dependent on a variety of information systems, which, if
not properly functioning, or unavailable, could adversely disrupt our business
and harm our reputation and earnings; (3) changes in macro-economic conditions
may negatively impact a number of risk factors which, individually or in the
aggregate, could adversely affect our results of operations, financial
condition and cash flows; (4) we continually experience intense competition
across all markets for our products and services; (5) we operate a global
business that exposes us to risks associated with conducting business in
multiple jurisdictions; (6) our failure to adequately adapt to IT industry
changes could negatively impact our future operating results; (7) terminations
of a supply or services agreement or a significant change in supplier terms or
conditions of sale could negatively affect our operating margins, revenue or
the level of capital required to fund our operations; (8) substantial defaults
by our customers or the loss of significant customers could have a negative
impact on our business, results of operations, financial condition or
liquidity; (9) changes in, or interpretations of, tax rules and regulations,
changes in the mix of our business amongst different tax jurisdictions, and
deterioration of the performance of our business may adversely affect our
effective income tax rates or operating margins and we may be required to pay
additional taxes and/or tax assessments, as well as record valuation
allowances relating to our deferred tax assets; (10) changes in our credit
rating or other market factors such as adverse capital and credit market
conditions or reductions in cash flow from operations may affect our ability
to meet liquidity needs, reduce access to capital, and/or increase our costs
of borrowing; (11) failure to retain and recruit key personnel would harm our
ability to meet key objectives; (12) we cannot predict with certainty what
loss we might incur as a result of litigation matters and contingencies that
we may be involved with from time to time; (13) we may incur material
litigation, regulatory or operational costs or expenses, and may be frustrated
in our marketing efforts, as a result of environmental regulations or private
intellectual property enforcement disputes; (14) we face a variety of risks in
our reliance on third-party service companies, including shipping companies
for the delivery of our products and outsourcing arrangements; (15) changes in
accounting rules could adversely affect our future operating results; and (16)
our quarterly results have fluctuated significantly.  We also face a variety
of risks associated with our recently completed acquisition of Brightpoint,
Inc., Aptec and Promark, including: management's ability to execute its plans,
strategies and objectives for future operations, including the execution of
integration plans; growth of the mobility industry, the government contracts
business, and in new and untapped markets in geographies outside the U.S.; and
other uncertainties or unknown, underestimated and/or undisclosed commitments
or liabilities; and our ability to achieve the expected benefits and manage
the costs of the integrations of recent acquisitions.

Ingram Micro has instituted in the past and continues to institute changes to
its strategies, operations and processes to address these risk factors and to
mitigate their impact on Ingram Micro's results of operations and financial
condition. However, no assurances can be given that Ingram Micro will be
successful in these efforts. For a further discussion of significant factors
to consider in connection with forward-looking statements concerning Ingram
Micro, reference is made to Item 1A Risk Factors of Ingram Micro's Annual
Report on Form 10-K for the fiscal year ended December 31, 2011 and Form 10-Q
for the fiscal quarter ended September 29, 2012; other risks or uncertainties
may be detailed from time to time in Ingram Micro's future SEC filings.

About Ingram Micro Inc.

Ingram Micro is the world's largest wholesale technology distributor and a
global leader in IT supply-chain, mobile device lifecycle services and
logistics solutions. As a vital link in the technology value chain, Ingram
Micro creates sales and profitability opportunities for vendors and resellers
through unique marketing programs, outsourced logistics and mobile solutions,
technical support, financial services and product aggregation and
distribution. The company is the only global broad-based IT distributor,
serving 145 countries on six continents with the world's most comprehensive
portfolio of IT products and services. Visit www.ingrammicro.com.

© 2013 Ingram Micro Inc. All rights reserved. Ingram Micro and the registered
Ingram Micro logo are trademarks used under license by Ingram Micro Inc.



Ingram Micro Inc.
Consolidated Balance Sheet
(Amounts in 000s)
(Unaudited)
                                December 29,             December 31,
                                2012                     2011
ASSETS
Current assets:
Cash and cash equivalents       $             $          
                                 595,147                 891,403
Trade accounts receivable, net  5,457,299                4,465,329
Inventory                       3,591,543                2,942,164
Other current assets            522,390                  319,506
Total current assets            10,166,379               8,618,402
Property and equipment, net     481,324                  323,261
Goodwill                        428,401                  -
Intangible assets, net          372,482                  73,330
Other assets                    31,862                   131,523
Total assets                    $              $          
                                11,480,448               9,146,516
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable                $             $          
                                6,065,159                4,893,437
Accrued expenses                585,404                  524,010
Short-term debt and current     111,268                  92,428
maturities of long-term debt
Total current liabilities       6,761,831                5,509,875
Long-term debt, less current    943,275                  300,000
maturities
Other liabilities               164,089                  63,864
Total liabilities               7,869,195                5,873,739
Stockholders' equity            3,611,253                3,272,777
Total liabilities and           $              $          
stockholders' equity            11,480,448               9,146,516



Ingram Micro Inc.
Consolidated Statement of Income
(Amounts in 000s, except per share data)
(Unaudited)
                           Thirteen Weeks Ended
                           December 29, 2012           December 31, 2011
Net sales                  $                 $           
                           11,379,882                 9,952,944
Cost of sales              10,718,672                  9,398,686
Gross profit               661,210                     554,258
Operating expenses:
Selling, general and       477,797                     370,830
administrative
Amortization of intangible 12,534                      3,119
assets
Reorganization costs       3,012                       4,244
                           493,343                     378,193
Income from operations     167,867                     176,065
Interest and other:
Interest income            (2,805)                     (1,617)
Interest expense           17,438                      11,948
Net foreign currency       982                         6,102
exchange loss
Other                      3,142                       4,082
                           18,757                      20,515
Income before income taxes 149,110                     155,550
Provision for income taxes 47,759                      50,677
Net income                 $               $           
                           101,351                     104,873
Diluted earnings per share $               $           
                              0.66                     0.68
Diluted weighted average
shares outstanding         153,280                     153,399

Ingram Micro Inc.
Consolidated Statement of Income
(Amounts in 000s, except per share data)
(Unaudited)
                              Fifty-two Weeks Ended
                              December 29, 2012        December 31, 2011
Net sales                     $              $          
                              37,827,299              36,328,701
Cost of sales                 35,791,910               34,420,419
Gross profit                  2,035,389                1,908,282
Operating expenses:
Selling, general and          1,542,650                1,431,955
administrative
Amortization of intangible    20,711                   12,550
assets
Reorganization costs          9,676                    5,131
                              1,573,037                1,449,636
Income from operations        462,352                  458,646
Interest and other:
Interest income               (10,216)                 (5,673)
Interest expense              55,690                   52,509
Net foreign currency exchange 10,546                   4,789
loss
Loss from settlement of
interest rate swap
 and senior unsecured    -                        5,624
term loan
Other                         10,148                   13,526
                              66,168                   70,775
Income before income taxes    396,184                  387,871
Provision for income taxes    90,275                   143,631
Net income                    $             $           
                               305,909                244,240
Diluted earnings per share    $             $           
                                   1.99                1.53
Diluted weighted average
shares outstanding            153,717                  159,588

Ingram Micro Inc.
Supplementary Information
Income from Operations
(Amounts in 000s)
(Unaudited)
                           Thirteen Weeks Ended December 29, 2012
                                                 Operating           Operating
                           Net Sales             Income              Margin
North America              $                $            1.76%
                           4,463,704             78,376
Europe                     3,087,189             51,867              1.68%
Asia-Pacific               2,184,897             15,166              0.69%
Latin America              602,718               16,572              2.75%
BrightPoint                1,041,374             11,290              1.08%
Stock-based compensation   -                     (5,404)             -
expense
Consolidated Total         $                 $             1.48%
                           11,379,882           167,867
                           Thirteen Weeks Ended December 31, 2011
                                                 Operating           Operating
                           Net Sales             Income              Margin
North America              $                $            2.14%
                           4,213,965             90,171
Europe                     3,201,636             71,112              2.22%
Asia-Pacific               1,964,865             14,025              0.71%
Latin America              572,478               6,500               1.14%
Stock-based compensation   -                     (5,743)             -
expense
Consolidated Total         $                $             1.77%
                           9,952,944             176,065

Ingram Micro Inc.
Supplementary Information
Income from Operations
(Amounts in 000s)
(Unaudited)
                           Fifty-two Weeks Ended December 29, 2012
                                                 Operating           Operating
                           Net Sales             Income              Margin
North America              $                 $             1.79%
                           15,880,103           283,689
Europe                     10,614,811            103,278             0.97%
Asia-Pacific               8,347,170             53,613              0.64%
Latin America              1,943,841             37,700              1.94%
BrightPoint                1,041,374             11,290              1.08%
Stock-based compensation   -                     (27,218)            -
expense
Consolidated Total         $                 $             1.22%
                           37,827,299           462,352
                           Fifty-two Weeks Ended December 31, 2011
                                                 Operating           Operating
                           Net Sales             Income              Margin
North America              $                 $             1.84%
                           15,250,560           281,155
Europe                     11,371,043            136,306             1.20%
Asia-Pacific               7,920,649             46,508              0.59%
Latin America              1,786,449             25,488              1.43%
Stock-based compensation   -                     (30,811)            -
expense
Consolidated Total         $                 $             1.26%
                           36,328,701           458,646

(Logo: http://photos.prnewswire.com/prnh/20100107/IMLOGO)



SOURCE Ingram Micro Inc.

Website: http://www.ingrammicro.com
Contact: Investors, Damon Wright (714) 382-5013, damon.wright@ingrammicro.com,
or Media, Lisa Zwick (949) 230-8794, lisa.zwick@ingrammicro.com