Slide 1: Second-Quarter 2013 CFO Commentary
Exhibit 99.2 Second-Quarter 2013 CFO Commentary As reflected in our earnings release, there are a number of items that impact the comparability of our results with those in the trailing quarter and the second quarter of last year. Any discussion of our results will exclude these items to give you a
Slide 2: Enterprise computing solutions commentary
Our enterprise computing solutions business continues to outperform the markets we serve, with our 14th consecutive quarter of organic growth. Sales of $1.9 billion were up 12% year over year with strong contributions from both regions. In the Americas, sales grew 10% year over year and were slightl
Slide 3: Consolidated Overview – Second Quarter
Consolidated Overview – Second Quarter Y/Y Change Y/Y Q/Q P&L Highlights* Q2 2013 Adjusted for Change Change Acquisitions Sales $5,306 +3% +1% +9% Gross Profit Margin 13.0% -30bps -40bps -20bps Operating Expense/Sales 9.5% +10bps Flat -50bps Operating Income $186.1 -8% -8% +17% Operating Margin 3.5%
Slide 4: Operating income, tax rate, net income and EPS
· Operating income as a percentage of sales was 3.5% o Decreased 40 basis points year over year as reported and 30 basis points adjusted for the impact of acquisitions o Increased 20 basis points sequentially · Effective tax rate for the quarter was 26.3% · Net income was $116.9 million o Decreased
Slide 5: Global Components
Global Components Sales ($ in millions) · Sales decreased 2% year over year and increased 6% sequentially · Gross margin declined 30 basis points year over year due primarily to a change in geographic mix, as Asia Pacific growth continues to outpace the other regions o Sequentially, gross margin dec
Slide 6: Americas Components Region
Americas Components Region Sales ($ in millions) · Sales decreased 4% year over year and increased 4% sequentially o Sales above normal seasonality on a sequential basis · Lighting growth continues to be very robust, increasing 21% year over year and 15% sequentially · PEMCO initiatives continue to
Slide 7: Europe Components Region
Europe Components Region Sales ($ in millions) · Sales declined 9% year over year and increased 2% sequentially o Adjusted for the impact of foreign currency, sales declined 11% year over year and increased 3% sequentially o Sales in our core business were significantly ahead of normal seasonality ·
Slide 8: Asia Pacific Components Region
Asia Pacific Components Region Sales ($ in millions) · Sales increased 10% year over year and 15% sequentially o Sales in our core Asia business well above normal seasonality § Core Asia sales increased 13% year over year, driven by broad-based strength across the region · PEMCO sales increased 6% y
Slide 9: Global Enterprise Computing Solutions
Global Enterprise Computing Solutions Sales ($ in millions) · Sales increased 12% year over year and 15% sequentially o Record level revenue for any second quarter o Adjusted for the impact of acquisitions and foreign currency, sales increased 7% year over year § 14th consecutive quarter of year-ove
Slide 10: ECS America
ECS America Sales ($ in millions) · Sales increased 10% year over year and 20% sequentially o Sales in our core value-added distribution business in line with normal seasonality · Robust double-digit year-over-year growth in storage (+20%), industry-standard servers (+15%), software (+12%), and serv
Slide 11: ECS Europe
ECS Europe Sales ($ in millions) · Sales increased 18% year over year and 6% sequentially o Adjusted for the impact of acquisitions and foreign currency, sales increased 1% year over year § Organic sales growth at high end of normal seasonality on a sequential basis o Broad based strength across reg
Slide 12: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights · Cash Flow from Operations Cash generated from operating activities in the second quarter was $334 million and $519 million on a trailing twelve month basis. We converted more than 116% of GAAP net income to cash over the last twelve months, far exceeding our
Slide 13: Third-Quarter 2013 Guidance
Third-Quarter 2013 Guidance Consolidated Sales $4.9 billion to $5.3 billion Global Components $3.35 billion to $3.55 billion Global ECS $1.55 billion to $1.75 billion Diluted Earnings per Share* $1.14 to $1.26 * Third quarter guidance assumes average diluted shares outstanding of 101.7 million and e
Slide 14: Risk Factors
Risk Factors The discussion of the company’s business and operations should be read together with the risk factors contained in Item 1A of its 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission, which describe various risks and uncertainties to which the company is or
Slide 15: Earnings Reconciliation
Earnings Reconciliation ($ in thousands, except per share data) Q2 2013 Q1 2013 Q2 2012 Operating income, as Reported $ 155,875 $ 137,552 $ 188,689 Restructuring, integration, and other charges 30,224 21,610 13,347 Operating income, as Adjusted $ 186,099 $ 159,162 $ 202,036 Net income attributable t
Slide 16: Notes on prior period charges
Q1-13 Loss on Prepayment of Debt: During the first quarter of 2013, the company recorded a loss on prepayment of debt of $4.3 million ($2.6 million net of related taxes or $.02 per share on both a basic and diluted basis). Q2-12 Restructuring, Integration, and Other Charges: During the second quarte