Ingram Micro 2000 Annual Report Download - page 32

C o n s o l i d a t e d q u a r t e r l y i n f o r m at i o n
D i l u te d D i l u te d
I n co m e I n co m e Earnings Pe r E a r n i n g s
I n co m e B efo re B efo re S h a re Befo re Per Share
N e t G ro s s Fro m I n co m e Ex t ra o rd i n a r y N et E xt ra o rd i n a r y on Net
S a l e s P ro f i t O p e rat i o n s T axe s I te m I n co m e I te m I n co m e
(In mill i o n s, exce pt per share dat a )
F i s cal Year Ended January 1, 2000
T h i r teen Weeks Ended: ( 1)
April 3, 1999 $ 6, 7 2 5 . 3 $ 3 5 9 . 3 $ 8 5 . 5 $ 6 1 . 1 $ 3 8 . 5 $ 4 2 . 3 $ 0 . 2 6 $ 0 . 2 9
July 3, 1999 6, 8 0 4 . 8 3 6 7 . 8 1 0 7 . 6 7 9 . 6 5 0 . 3 5 0 . 3 0 . 3 4 0 . 3 4
O c tober 2, 1999 6, 7 1 0 . 1 3 2 1 . 9 5 2 . 8 2 4 . 8 1 5 . 8 1 5 . 8 0 . 1 1 0 . 1 1
January 1, 2000 ( 2 ) 7, 8 2 8 . 5 2 8 7 . 2 ( 4 5 . 9 ) 1 2 5 . 0 7 5 . 0 7 5 . 0 0 . 5 1 0 . 5 1
F i s cal Year Ended December 30, 2000
T h i r teen Weeks Ended:
April 1, 2000 ( 3 ) $ 7, 7 9 6 . 3 $ 3 6 6 . 2 $ 7 0 . 5 $ 1 5 2 . 0 $ 9 4 . 0 $ 9 6 . 1 $ 0 . 6 4 $ 0 . 6 5
July 1, 2000 7, 2 9 5 . 0 3 6 1 . 5 7 6 . 4 5 3 . 5 3 3 . 1 3 3 . 3 0 . 2 2 0 . 2 2
S e p tember 30, 2000 7, 5 5 8 . 7 3 8 7 . 9 8 7 . 2 6 2 . 9 3 8 . 8 3 8 . 9 0 . 2 6 0 . 2 6
D e cember 30, 2000 8, 0 6 5 . 1 4 4 0 . 7 1 1 9 . 3 9 4 . 1 5 7 . 9 5 7 . 9 0 . 3 9 0 . 3 9
(1) Reflects charges related to a reorganization plan initiated to streamline operations and reorganize resources. Quarterly charges were recorded as follows: first quarter, $6.2 million; second quarter,
$2.1 million; third quarter, $2.7 million; fourth quarter, $9.3 million.
(2) For the quarter ended January 1, 2000, the Company recorded larger-than-historical provisions of $48.4 million for excess and obsolete inventory, $53.6 million for losses on vendor-sponsored
programs, and $40.6 million for doubtful accounts, primarily resulting from rapid industry changes and changes in vendor terms and conditions. In addition, income before income taxes included a
pre-tax gain of approximately $201.3 million, net of related costs, realized from the sale of Softbank common stock.
(3) For the quarter ended April 1, 2000, income before income taxes included a pre-tax gain of approximately $111.5 million, net of related costs, realized from the sale of Softbank common stock.
As indicated in the table above, the Company’s net sales in the fourth quarter of each fiscal year have generally been higher
than those in the other three quarters in the same fiscal year.The trend of higher fourth quarter net sales is attributable to calendar
year-end business purchases and holiday period purchases made by customers.
L i q u i d i t y a n d c a p i t a l r e s o u rc e s
Cash flows
The Company has financed its growth and cash needs largely through income from operations,borrowings,sales of accounts
receivable through established accounts receivable facilities, trade and supplier credit,its initial public stock offering in November
1996, the sale of Zero Coupon Convertible Senior Debentures in June 1998, and the sale of Softbank common stock in December
1999 and January 2000.
In 2000 and 1999, one of the Company’s objectives has been to improve the utilization of working capital and put assets to
work through increasing inventory turns and steady management of vendor payables and customer receivables.The Company’s
success in this regard can be best demonstrated by the Company’s ability to repurchase convertible debentures and reduce overall
debt levels, thereby lowering its debt-to-capitalization ratio, including off-balance sheet debt, to 43.7% and 45.0% at December
30, 2000 and January 1, 2000, respectively, compared to 56.5% at January 2, 1999.Although the Company has realized improve-
ments in working capital management and debt reduction in 2000 and 1999, and will continue to strive for further improvements
for the foreseeable future, no assurance can be made that the Company will be able to maintain its current debt levels.The follow-
ing is a detailed discussion of the Company’s cash flows for 2000,1999 and 1998:
Net cash provided by operating activities was $836.4 million in 2000 and $573.0 million in 1999 compared to cash used of
$278.5 million in 1998.The significant increase in cash provided by operating activities in 2000 compared to 1999 was primarily
|.2 5
INGRAM MICRO