Insight Enterprises, Inc. · NASDAQ:NSIT
Insight Enterprises — Q4 2018 Earnings Presentation
19 slides from Insight Enterprises's earnings presentation, Feb 14, 2019
Slide 1: Fourth Quarter and Full Year 2018 Earnings Conference Call and Webcast
Insight Enterprises, Inc. Fourth Quarter and Full Year 2018 Earnings Conference Call and Webcast Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 1
Slide 2: Agenda
Agenda • Opening Comments • CEO Commentary • Fourth Quarter 2018 Consolidated Financials • Full Year 2018 Consolidated Financials • 2018 Highlights • 2019 Priorities • CFO Commentary • Financial results by region • Taxes and cash flow • Closing Comments & 2019 Guidance Insight Proprietary & Confiden
Slide 3: Disclosures
Disclosures • Safe harbor statement This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 related to Insight’s plans and expectations. Statements that are not historical facts, including statements about future trends in th
Slide 4: Q4 2018 Year over Year
Q4 2018 Year over Year Results Net Sales Gross Profit Gross Margin -2% YoY +9% YoY +140 bps YoY $254.2M 14.5% $1.75B 2017 2018 2017 2018 2017 2018 Three Months Ended 12/31 Three Months Ended 12/31 Three Months Ended 12/31 Adjusted Earnings from operations* Adjusted Diluted EPS* SG&A as a % of Gross
Slide 5: FY 2018 Year over Year
FY 2018 Year over Year Results Net Sales Gross Profit Gross Margin +6% YoY +8% YoY +30 bps YoY $993.7M 14.0% $7.08B 2017 2018 2017 2018 2017 2018 Twelve Months Ended 12/31 Twelve Months Ended 12/31 Twelve Months Ended 12/31 SG&A as a % of Gross Profit Adjusted Earnings from operations* Adjusted Dilu
Slide 6: FY 2018 Highlights
FY 2018 Highlights • Teammate Development • Fortune Top 100 Best Companies for Diversity • Fortune Best Workplaces in Technology, ranked #23 • Strong Financial Performance • 3rd consecutive year of double-digit earnings growth • Improved cash management • Adjusted ROIC +300bps YoY to 16.9% • Gross p
Slide 7: Our go-to market strategy
Our go-to market strategy Supply Chain Connected Cloud + Data Center Digital Innovation Optimization Workforce Transformation Client Conversation Client Conversation Client Conversation Client Conversation Operational Excellence Workforce enablement Infrastructure optimization Customer engagement Cl
Slide 8: CFO Commentary
CFO Commentary • Financial results by region • Taxes and cash flow Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2019 Insight Direct USA, Inc. All Rights Reserved. 8
Slide 9: Q4 North America | Financial Results
Q4 North America | Financial Results Net Sales Gross Profit Gross Margin -2% YoY +7% YoY +120 bps YoY $187.5M 13.9% $1.34B 2017 2018 2017 2018 2017 2018 Three Months Ended 12/31 Three Months Ended 12/31 Three Months Ended 12/31 SG&A as a % of Gross Profit Adjusted Earnings from operations* -150 bps
Slide 10: FY 2018 North America | Financial Results
FY 2018 North America | Financial Results Net Sales Gross Profit Gross Margin +3% YoY +6% YoY +40 bps YoY 13.7% $5.4B $732.7M 2017 2018 2017 2018 2017 2018 Twelve Months Ended 12/31 Twelve Months Ended 12/31 Twelve Months Ended 12/31 SG&A as a % of Gross Profit Adjusted Earnings from operations* -23
Slide 11: Q4 EMEA | Financial Results
Q4 EMEA | Financial Results Net Sales Gross Profit Gross Margin +4% YoY constant currency** +16% YoY constant currency** +160 bps YoY 15.3% $368.4M $56.2M 2017 2018 2017 2018 2017 2018 Three Months Ended 12/31 Three Months Ended 12/31 Three Months Ended 12/31 SG&A as a % Gross Profit Adjusted Earnin
Slide 12: FY 2018 EMEA | Financial Results
FY 2018 EMEA | Financial Results Net Sales Gross Profit Gross Margin +9% YoY constant currency** +12% YoY constant currency** +50 bps YoY $221.5M 14.5% $1.53B 2017 2018 2017 2018 2017 2018 Twelve Months Ended 12/31 Twelve Months Ended 12/31 Twelve Months Ended 12/31 SG&A as a % of Gross Profit Adjus
Slide 13: Q4 APAC | Financial Results
Q4 APAC | Financial Results Net Sales Gross Profit Gross Margin -2% YoY constant currency** +40% YoY constant currency** +850 bps YoY $36.3M $10.5M 28.8% 2017 2018 2017 2018 2017 2018 Three Months Ended 12/31 Three Months Ended 12/31 Three Months Ended 12/31 SG&A as a % of Gross Profit Adjusted Earn
Slide 14: FY 2018 APAC | Financial Results
FY 2018 APAC | Financial Results Net Sales Gross Profit Gross Margin +13% YoY constant currency** +9% YoY constant currency** -80 bps YoY 21.2% $186.9M $39.6M 2017 2018 2017 2018 2017 2018 Twelve Months Ended 12/31 Twelve Months Ended 12/31 Twelve Months Ended 12/31 SG&A as a % of Gross Profit Adjus
Slide 15: Cash Flows and Cash Cycle
Cash Flows and Cash Cycle Net cash from operations Adjusted free cash flow* Cash conversion cycle +$600M YoY +$445M YoY -2 days YoY $260.0M 33 days $292.6M 2017 2018 2017 2018 2017 2018 Twelve Months Ended 12/31 Twelve Months Ended 12/31 Twelve Months Ended 12/31 Days sales outstanding (“DSOs”) Days
Slide 16: Closing Comments
Closing Comments • 2019 sales expected to grow in the mid-single digit range • Diluted earnings per share are expected to be between $4.75 and $4.85 per share for the full year 2019 • Effective tax rate expected between 25% and 26% for the full year 2019 Insight Proprietary & Confidential. Do Not Co
Slide 17: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended Twelve Months Ended December 31, December 31, US Dollar in $000s 2018 2017 2018 2017 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 58,659 $ 45,538 $ 233,483 $ 179,265 Severance and restructu
Slide 18: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended Twelve Months Ended December 31, December 31, US Dollar in $000s 2018 2017 2018 2017 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 44,444 $ 37,235 $ 185,705 $ 153,
Slide 19: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Twelve Months Ended December 31, US Dollar in $000s 2018 2017 Adjusted free cash flow: Net cash provided by (used in) operating activities $ 292,647 $ (307,066) Purchases of property and equipment (17,251) (19,230) Net (rep