Insight Enterprises, Inc. · NASDAQ:NSIT
Insight Enterprises — Q3 2018 Earnings Presentation
16 slides from Insight Enterprises's earnings presentation, Nov 7, 2018
Slide 1: Insight Enterprises, Inc. Third Quarter 2018 Earnings Conference Call
Insight Enterprises, Inc. Third Quarter 2018 Earnings Conference Call and Webcast Insight Presentation Insight’s Tagline Would Go Here Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 1
Slide 2: Agenda
Agenda Opening Comments CEO Commentary • Third Quarter 2018 Results • Consolidated Financials • ROIC and Free Cash Flow • North America Financial Results • EMEA Financial Results • APAC Financial Results • Connected Workforce Update CFO Commentary • Year to Date Financial Results • Cash Flows and Ca
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 the
Slide 4: Consolidated Financial Results
Consolidated Financial Results Three Months Ended September 30, Nine Months Ended September 30, US Dollar in $M 2018 2017 change 2018 2017 change Insight Enterprises, Inc. Net sales: Products $ 1,548.3 $ 1,599.0 (3%) $ 4,724.9 $ 4,426.4 7% Services 199.4 159.0 25% 606.2 493.1 23% Total net sales 1,7
Slide 5: ROIC and Free Cash Flow
ROIC and Free Cash Flow TTM Quarter Ended September 30, 2018 US Dollar in $M 2018 2017 change Return on invested capital - Adjusted Earnings from operations (net of tax)(2 ) $ 158.7 $ 109.9 $ 48.8 Adjusted Earnings from operations(1 ) (net $ 162.8 $ 121.5 $ 41.3 of tax)(2 ) Average Equity (avg 5 qua
Slide 6: Insight North America | Financial Results
Insight North America | Financial Results Three Months Ended September 30, Nine Months Ended September 30, US Dollar in $M 2018 2017 change 2018 2017 change North America Net sales: Products $ 1,213.1 $ 1,283.2 (5%) $ 3,553.1 $ 3,413.0 4% Services 158.4 127.9 24% 465.5 390.3 19% Total net sales 1,37
Slide 7: Insight EMEA | Financial Results
Insight EMEA | Financial Results Three Months Ended September 30, Nine Months Ended September 30, US Dollar in $M 2018 2017 change 2018 2017 change EMEA Net sales: Products $ 316.1 $ 291.1 9% $ 1,057.8 $ 913.4 16% Services 29.1 21.1 38% 104.1 75.2 38% Total net sales 345.2 312.2 11% 1,161.9 988.6 18
Slide 8: Insight APAC | Financial Results
Insight APAC | Financial Results Three Months Ended September 30, Nine Months Ended September 30, US Dollar in $M 2018 2017 change 2018 2017 change APAC Net sales: Products $ 19.1 $ 24.7 (22%) $ 114.0 $ 99.9 14% Services 12.0 10.0 20% 36.6 27.7 33% Total net sales 31.1 34.7 (10%) 150.6 127.6 18% Gro
Slide 9: Connected Workforce
Connected Workforce Business Need • Secure integrated platform to support global desktop environment • Required upgrades for systems management software and operating platform Microsoft Modern Desktop Solution • Designed plan to migrate client to Microsoft Cloud to enhance security • Global deployme
Slide 10: CFO Commentary
CFO Commentary • Year to Date Financial Results • Cash Flows and Cash Conversion Cycle Insight Presentation Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2017 Insight Direct USA, Inc. All Rights Reserved. 10
Slide 11: Year to Date Financial Results
Year to Date Financial Results Nine Months Ended September 30, US Dollar in $M 2018 2017 change Insight Enterprises, Inc. Net sales $ 5,331.1 $ 4,919.5 8% North America 4,018.6 3,803.3 6% EMEA 1,161.9 988.6 18% APAC 150.6 127.6 18% Gross profit $ 739.5 $ 685.7 8% North America 545.2 517.1 5% EMEA 16
Slide 12: Cash Flows & Cash Cycle
Cash Flows & Cash Cycle Nine Months Ended September 30, US Dollar in $M 2018 2017 change Statement of cash flows Net cash provided by operating activities $ 247.2 $ (323.5) $ 570.7 Acquisitions, net of cash and cash equivalents (74.9) (186.9) 112.0 acquired Purchases of property and equipment (13.0)
Slide 13: Closing Comments – 2018 Outlook
Closing Comments – 2018 Outlook • 2018 sales expected to grow in the mid single digit range • Adjusted diluted earnings per share are expected to be between $4.40 and $4.45 per share for the full year • Effective tax rate expected between 15% and 18% for the balance of the year • Cash flow from oper
Slide 14: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended Nine Months Ended September 30, September 30, US Dollar in $000s 2018 2017 2016 2018 2017 Adjusted Consolidated Earnings from Operations: GAAP consolidated EFO $ 49,948 $ 41,445 $ 36,407 $ 174,824 $ 133,727 Severance
Slide 15: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Three Months Ended Nine Months Ended September 30, September 30, US Dollar in $000s 2018 2017 2016 2018 2017 Adjusted North America Earnings from Operations: GAAP EFO from North America segment $ 44,094 $ 42,770 $ 35,755 $
Slide 16: Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Appendix – Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Nine Months Ended September 30, US Dollar in $000s 2018 2017 Adjusted free cash flow: Net cash provided by (used in) operating activities $ 247,241 $ (323,560) Purchases of property and equipment (13,046) (15,906) Net (repa