Press Release

Insight Enterprises, Inc. Reports Record Third Quarter 2017 Results and Confirms 2017 Guidance

November 7, 2017 2:45 PM EST

Insight Enterprises, Inc. (NASDAQ: NSIT) (the "Company") today reported results of operations for the quarter ended September 30, 2017.

  • Net sales up 26% to $1.76 billion
  • Gross profit up 24% to $226.1 million
  • Earnings from operations up 14% to $41.4 million
    • Adjusted earnings from operations up 20%
  • Diluted earnings per share were up 3% to $0.62
    • Adjusted diluted earnings per share were up 16% to $0.73
  • The Company acquired Dutch cloud service provider Caase.com

In the third quarter of 2017, consolidated net sales were up 26% year over year. Strong growth in the core business in North America was complemented by the addition of Datalink, which the Company acquired on January 6, 2017, and double-digit net sales growth in APAC. Gross profit grew 24% year over year, while gross margins contracted 20 basis points in the quarter due to wins in North America with large enterprise clients, which generally transact at lower margins. Selling and administrative expenses increased 25% year over year, including a 7% increase in the core business. As a result, earnings from operations increased 14% year over year and Adjusted earnings from operations increased 20% year over year.

"Our third quarter results reflect another quarter of solid execution in each of our operating segments. Our core business continued to drive profitable growth and, at the same time, we began to realize the earnings accretion we expected from the Datalink acquisition," stated Ken Lamneck, President and Chief Executive Officer. "Our business is healthy. We have gained market share organically in 2017 and added strategic skills and capabilities to our portfolio with the addition of Datalink that will be critical to our continued success," stated Lamneck.

For the nine months ended September 30, 2017, consolidated net sales were $4.9 billion, up 22% year over year, including growth of 13% in the core business, and the addition of Datalink. Gross profit grew 24% in the first nine months of 2017 reflecting the stronger gross margins of the Datalink business while selling and administrative expenses grew only 3% year over year driven by strong operating leverage in the core business. This combination drove earnings from operations up 24% year over year and Adjusted earnings from operations up more than 30% year over year.

"We are very pleased with our execution globally in the first nine months of 2017. Our strategy and related solutions areas focus on helping clients efficiently manage their IT assets today and transform their business for tomorrow," stated Ken Lamneck. "Amid a stable demand environment, we believe our extensive supply chain, cloud, data center and software capabilities combined with disciplined execution will serve us well in closing out a record year in 2017 and heading into 2018," stated Lamneck.

KEY HIGHLIGHTS

  • Consolidated net sales of $1.76 billion for the third quarter of 2017 increased 26% compared to the third quarter of 2016.
    • Net sales in North America of $1.4 billion were up 34% year over year;
    • Net sales in EMEA of $312.2 million were flat; and
    • Net sales in APAC of $34.7 million increased 17% year over year.
  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated net sales increased 25% year over year, with net sales growth in North America and APAC of 34% and 14%, respectively, and a decline in EMEA of 2% year to year.
  • Consolidated gross profit of $226.1 million increased 24% compared to the third quarter of 2016, with consolidated gross margin decreasing to 12.9% of net sales.
    • Gross profit in North America of $176.0 million (12.5% gross margin) increased 29% year over year;
    • Gross profit in EMEA of $41.6 million (13.3% gross margin) increased 9% year over year; and
    • Gross profit in APAC of $8.4 million (24.3% gross margin) increased 26% year over year.
  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated gross profit increased 24% year over year, and gross profit in North America, EMEA and APAC increased 28%, 6% and 23%, respectively, year over year.
  • Consolidated earnings from operations increased 14% compared to the third quarter of 2016 to $41.4 million, or 2.4% of net sales.
    • Earnings from operations in North America increased 20% year over year to $42.8 million, or 3.0% of net sales;
    • As a result of the $3.6 million loss on the sale of the Company's Russia business in the third quarter of 2017, EMEA reported a loss from operations of $2.1 million in the third quarter of 2017 compared to earnings from operations of $270,000 in the third quarter of 2016; and
    • Earnings from operations in APAC increased 112% year over year to $810,000, or 2.3% of net sales.
  • Excluding the effects of fluctuating foreign currency exchange rates, consolidated earnings from operations increased 14% year over year, and earnings from operations in North America and APAC increased 19% and 118%, respectively, year over year.
  • Consolidated net earnings and diluted earnings per share for the third quarter of 2017 were $22.4 million and $0.62, respectively, at an effective tax rate of 36.8%.
  • Adjusted consolidated net earnings and Adjusted diluted earnings per share for the third quarter of 2017 were $26.5 million and $0.73, respectively, at an effective tax rate of 33.2%.*

* In discussing financial results for the three and nine months ended September 30, 2017 and 2016 in this press release, the Company refers to certain financial measures that are not prepared in accordance with United States generally accepted accounting principles ("GAAP"). When referring to non-GAAP measures, the Company refers to such measures as "Adjusted." Adjusted measures exclude (i) severance and restructuring expenses, (ii) certain acquisition-related expenses, (iii) the loss on sale of the Company's Russia business in the 2017 periods, (iv) a gain on sale of real estate in the nine months ended September 30, 2016 and (v) the tax effects of these items. See "Use of Non-GAAP Financial Measures" for additional information. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

The Company refers to changes in net sales, gross profit and earnings from operations on a consolidated basis and in North America, EMEA and APAC excluding the effects of fluctuating foreign currency exchange rates. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the weighted average translation rate for the current period.

The tax effect of Adjusted amounts referenced herein were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded, adjusted for the effects of valuation allowances on net operating losses in certain jurisdictions.

GUIDANCE

For the full year 2017, the Company now expects the business to deliver net sales growth of 20% to 22% compared to 2016. The Company is maintaining its Adjusted diluted earnings per share outlook for the full year 2017 of $3.15 to $3.25.

This outlook assumes an effective tax rate of approximately 38% for the balance of 2017.

This outlook also excludes severance and restructuring and acquisition-related expenses incurred during the nine months ended September 30, 2017 and those that may be incurred during the balance of 2017, as well as the $3.6 million loss on the sale of the Company's Russia business in the third quarter of 2017. Due to the inherent difficulty of forecasting severance and restructuring and acquisition-related expenses, which impact net earnings and diluted earnings per share, the Company is unable to reasonably estimate the future impact of such expenses, if any, to net earnings and diluted earnings per share. Accordingly, the Company is unable to provide a reconciliation of GAAP to non-GAAP diluted earnings per share for the full year 2017 forecast.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live web cast today at 5:00 p.m. ET to discuss third quarter 2017 results of operations. A live web cast of the conference call (in listen-only mode) will be available on the Company's web site at http://nsit.client.shareholder.com/events.cfm, and a replay of the web cast will be available on the Company's web site for a limited time following the call. To listen to the live web cast by telephone, call 1-877-402-8904 if located in the U.S., 678-809-1029 for international callers, and enter the access code 7096467.

USE OF NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures (referred to as Adjusted consolidated earnings from operations, Adjusted consolidated net earnings and Adjusted diluted earnings per share) exclude (i) severance and restructuring expenses, (ii) certain acquisition-related expenses, (iii) a loss on sale of the Company's Russia business in the 2017 periods, (iv) a gain on sale of real estate in the nine months ended September 30, 2016 and (v) the tax effects of these items. The Company excludes these items when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for each of the Company's operating segments. These non-GAAP measures are used to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare the Company's results to those of the Company's competitors. The Company believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and the Company's competitors' results and assist in forecasting performance for future periods. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

 
Financial Summary Table
(dollars in thousands, except per share data)
(Unaudited)
 
                                               
      Three Months Ended September 30,   Nine Months Ended September 30,
      2017   2016   change     2017   2016   change
Insight Enterprises, Inc.                                            
Net sales     $ 1,757,973     $ 1,392,716     26 %   $ 4,919,548     $ 4,017,932     22 %
Gross profit   $ 226,081     $ 181,808     24 %   $ 685,687     $ 552,133     24 %

Gross margin

    12.9 %     13.1 %  

(20 bps

)

    13.9 %     13.7 %   20 bps  
Selling and administrative expenses   $ 180,390     $ 143,872     25 %   $ 538,774     $ 440,177     22 %
Severance and restructuring expenses   $ 494     $ 788     (37 %)   $ 6,211     $ 3,053     103 %
Loss on sale of foreign entity   $ 3,646     $ -     *     $ 3,646     $ -     *  
Acquisition-related expenses   $ 106     $ 741     (86 %)   $ 3,329     $ 741     349 %
Earnings from operations   $ 41,445     $ 36,407     14 %   $ 133,727     $ 108,162     24 %
Net earnings   $ 22,412     $ 21,635     4 %   $ 76,515     $ 63,590     20 %
Diluted earnings per share   $ 0.62     $ 0.6     3 %   $ 2.11     $ 1.74     21 %
                                               
                                               
North America                                            
Net sales     $ 1,411,079     $ 1,051,333     34 %   $ 3,803,343     $ 2,914,475     30 %
Gross profit   $ 176,021     $ 136,818     29 %   $ 517,108     $ 391,929     32 %
Gross margin     12.5 %     13 %   (50 bps )     13.6 %     13.4 %   20 bps  
Selling and administrative expenses   $ 132,853     $ 99,845     33 %   $ 395,423     $ 301,147     31 %
Severance and restructuring expenses   $ 398     $ 643     (38 %)   $ 2,045     $ 2,451     (17 %)
Acquisition-related expenses   $ -     $ 575     *     $ 3,223     $ 575     461 %
Earnings from operations   $ 42,770     $ 35,755     20 %   $ 116,417     $ 87,756     33 %
                                               
Sales Mix                     **                     **  
Hardware       68 %     62 %   48 %     65 %     62 %   37 %
Software       24 %     31 %   6 %     27 %     31 %   13 %
Services       8 %     7 %   39 %     8 %     7 %   46 %
        100 %     100 %   34 %     100 %     100 %   30 %
                                               
                                               
EMEA                                              
Net sales     $ 312,194     $ 311,732     -     $ 988,609     $ 976,800     1 %
Gross profit   $ 41,618     $ 38,308     9 %   $ 139,897     $ 136,810     2 %

Gross margin

 

 

13.3

%

    12.3 %

 

100 bps

 

    14.2 %     14 %   20 bps

 

Selling and administrative expenses   $ 39,948     $ 37,893     5 %   $ 121,863     $ 121,663     -  
Severance and restructuring expenses   $ 53     $ 145     (63 %)   $ 4,062     $ 487     734 %
Loss on sale of foreign entity   $ 3,646     $ -     *     $ 3,646     $ -     *  
Acquisition-related expenses   $ 106     $ -     *     $ 106     $ -     *  
(Loss) earnings from operations   $ (2,135 )   $ 270     *     $ 10,220     $ 14,660     (30 %)
                                               
Sales Mix                     **                     **  
Hardware       44 %     41 %   7 %     40 %     37 %   11 %
Software       52 %     56 %   (6 %)     56 %     60 %   (6 %)
Services       4 %     3 %   23 %     4 %     3 %   15 %
        100 %     100 %   -       100 %     100 %   1 %
                                               
* Percentage change not considered meaningful.
** Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates.
 
Financial Summary Table (continued)
(dollars in thousands, except per share data)
(Unaudited)
                                               
      Three Months Ended September 30,   Nine Months Ended September 30,
      2017   2016   change   2017   2016   change
APAC                                              
Net sales     $ 34,700     $ 29,651     17 %   $ 127,596     $ 126,657     1 %
Gross profit   $ 8,442     $ 6,682     26 %   $ 28,682     $ 23,394     23 %
Gross margin     24.3 %     22.5 %   180 bps       22.5 %     18.5 %   400 bps  
Selling and administrative expenses   $ 7,589     $ 6,134     24 %   $ 21,488     $ 17,367     24 %
Severance and restructuring expenses   $ 43     $ -     *     $ 104     $ 115     (10 %)
Acquisition-related expenses   $ -     $ 166     *     $ -     $ 166     *  
Earnings from operations   $ 810     $ 382     112 %   $ 7,090     $ 5,746     23 %
                                               
Sales Mix                     **                     **  
Hardware       21 %     16 %   61 %     14 %     11 %   34 %
Software       58 %     75 %   (9 %)     72 %     84 %   (14 %)
Services       21 %     9 %   151 %     14 %     5 %   173 %
        100 %     100 %   17 %     100 %     100 %   1 %

* Percentage change not considered meaningful.

** Change in sales mix represents growth/decline in category net sales on a U.S. dollar basis and does not exclude the effects of fluctuating foreign currency exchange rates.

FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call and web cast are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including the Company's expected 2017 financial results, including net sales growth rates and Adjusted diluted earnings per share, and the assumptions relating thereto, including the Company's effective tax rate for the balance of 2017, anticipated capital expenditures and operating cash flows and the Company's expectations of how its capabilities and execution will affect results in closing out 2017 and heading into 2018 are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurances that the results discussed by the forward-looking statements will be achieved, and actual results may differ materially from those set forth in the forward-looking statements. Some of the important factors that could cause the Company's actual results to differ materially from those projected in any forward-looking statements, include, but are not limited to, the following, which are discussed in "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and in other of the Company's filings with the Securities and Exchange Commission:

  • actions of the Company's competitors, including manufacturers and publishers of products the Company sells;
  • the Company's reliance on partners for product availability, competitive products to sell and related marketing funds and purchasing incentives, the amounts and terms of which can fluctuate significantly year over year;
  • changes in the information technology ("IT") industry and/or rapid changes in technology;
  • risks associated with the integration and operation of acquired businesses;
  • possible significant fluctuations in the Company's future operating results;
  • the risks associated with the Company's international operations;
  • general economic conditions;
  • increased debt and interest expense and decreased availability of funds under the Company's financing facilities;
  • the security of the Company's electronic and other confidential information;
  • disruptions in the Company's IT systems and voice and data networks;
  • failure to comply with the terms and conditions of the Company's commercial and public sector contracts;
  • accounts receivable risks, including increased credit loss experience or extended payment terms with the Company's clients;
  • the Company's reliance on independent shipping companies;
  • the Company's dependence on certain personnel;
  • natural disasters or other adverse occurrences;
  • exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;
  • intellectual property infringement claims and challenges to the Company's registered trademarks and trade names; and
  • legal proceedings and audits and failure to comply with laws and regulations.

Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the Securities and Exchange Commission. Any forward-looking statements in this release should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and, except as may be required by law, does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance that may be made by third parties.

                                       
                                       
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                       
            Three Months Ended     Nine Months Ended
            September 30,     September 30,
            2017     2016     2017     2016
Net sales         $ 1,757,973     $ 1,392,716     $ 4,919,548     $ 4,017,932
Costs of goods sold         1,531,892       1,210,908       4,233,861       3,465,799
      Gross profit     226,081       181,808       685,687       552,133
Operating expenses:                                  
  Selling and administrative expenses     180,390       143,872       538,774       440,177
  Severance and restructuring expenses     494       788       6,211       3,053
  Loss on sale of foreign entity       3,646       -       3,646       -
  Acquisition-related expenses       106       741       3,329       741
    Earnings from operations     41,445       36,407       133,727       108,162
Non-operating (income) expense:                                
  Interest income         (227 )     (318 )     (863 )     (784
  Interest expense         5,555       2,517       13,814       6,357
  Net foreign currency exchange loss     341       579       972       1,042
  Other expense, net         339       352       980       979
    Earnings before income taxes     35,437       33,277       118,824       100,568
Income tax expense         13,025       11,642       42,309       36,978
    Net earnings     $ 22,412     $ 21,635     $ 76,515     $ 63,590
                                       
                                       
Net earnings per share:                                  
    Basic       $ 0.63     $ 0.61     $ 2.14     $ 1.75
    Diluted       $ 0.62     $ 0.6     $ 2.11     $ 1.74
                                       
                                       
Shares used in per share calculations:                                
    Basic         35,787       35,474       35,718       36,310
    Diluted         36,203       35,790       36,186       36,596
                   
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
                   
                   

 

   

September 30,

 

December 31,

        2017   2016
ASSETS                  
Current assets:                
Cash and cash equivalents   $ 236,411     $ 202,882
  Accounts receivable, net     1,483,234       1,436,742
  Inventories     235,313       148,203
  Inventories not available for sale     56,322       68,619
  Other current assets     151,032       127,159
    Total current assets     2,162,312       1,983,605
Property and equipment, net     77,530       70,910
Goodwill         131,552       62,645
Intangible assets, net     105,140       20,707
Deferred income taxes     40,175       52,347
Other assets       62,583       29,086
        $ 2,579,292     $ 2,219,300
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities:                
  Accounts payable - trade   $ 682,946     $ 1,070,259
  Accounts payable - inventory financing facility     224,072       154,930
  Accrued expenses and other current liabilities     151,206       151,895
  Current portion of long-term debt     15,344       480
  Deferred revenue     99,338       61,098
    Total current liabilities     1,172,906       1,438,662
                   
Long-term debt       534,385       40,251
Deferred income taxes     915       900
Other liabilities       44,336       26,044
          1,752,542       1,505,857
Stockholders' equity:              
  Preferred stock     -       -
  Common stock     358       355
  Additional paid-in capital     315,078       309,650
  Retained earnings     536,052       459,537
  Accumulated other comprehensive loss - foreign currency translation adjustments     (24,738 )     (56,099
    Total stockholders' equity     826,750       713,443
        $ 2,579,292     $ 2,219,300
 
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

     

Nine Months Ended September 30,

 
              2017     2016  
Cash flows from operating activities:                    
  Net earnings         $   76,515     $   63,590  
  Adjustments to reconcile net earnings to net cash used in operating activities:            
    Depreciation and amortization of property and equipment       19,430         20,785  
    Amortization of intangible assets       12,643         9,312  
    Provision for losses on accounts receivable       3,429         1,401  
    Write-downs of inventories         1,991         2,297  
    Write-off of property and equipment       378         -  
    Non-cash stock-based compensation       10,134         8,308  
    Deferred income taxes         (209 )       3,424  
    Loss on sale of foreign entity         3,646         -  
    Gain on sale of real estate         -         (338 )
  Changes in assets and liabilities, net of acquisitions and sale of foreign entity:            
      Decrease in accounts receivable       108,284         133,289  
      Increase in inventories       (73,186 )       (59,707 )
      Decrease (increase) in other assets       320         (22,713 )
      Decrease in accounts payable       (442,328 )       (278,097 )
      Decrease in deferred revenue       (13,871 )       (6,645 )
      (Decrease) increase in accrued expenses and other liabilities       (30,736 )       244  
        Net cash used in operating activities       (323,560 )       (124,850 )
Cash flows from investing activities:                
    Purchases of property and equipment       (15,906 )       (9,714 )
    Proceeds from sale of foreign entity       1,517         -  
    Proceeds from sale of real estate, net       -         1,378  
    Acquisitions, net of cash and cash equivalents acquired       (186,932 )       (10,297 )
        Net cash used in investing activities       (201,321 )       (18,633 )
Cash flows from financing activities:                
    Borrowings on senior revolving credit facility       923,216         534,920  
    Repayments on senior revolving credit facility       (707,216 )       (506,420 )
    Borrowings on accounts receivable securitization financing facility       2,844,389         1,947,000  
    Repayments on accounts receivable securitization financing facility.       (2,723,889 )       (1,822,000 )
    Borrowings under Term Loan A       175,000         -  
    Repayments under Term Loan A       (6,562 )       -  
    Repayments under other financing agreements       (5,176 )       (1,309 )
    Payments on capital lease obligations       (614 )       (270 )
    Net borrowings under inventory financing facility       45,641         29,456  
    Payment of debt issuance costs       (1,123 )       (3,360 )
    Payment of payroll taxes on stock-based compensation through shares withheld       (4,703 )       (2,159 )
    Repurchases of common stock       -         (50,000 )
        Net cash provided by financing activities       538,963         125,858  
Foreign currency exchange effect on cash and cash equivalent balances       19,447         5,342  
Increase (decrease) in cash and cash equivalents       33,529         (12,283 )
Cash and cash equivalents at beginning of period       202,882         187,978  

Cash and cash equivalents at end of period

   

$

236,411

     

$

175,695

 
 
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(unaudited)
 

 

 

Three Months Ended

  Nine Months Ended
 

 

 

September 30,

  September 30,
      2017   2016     2017   2016
Adjusted Consolidated Earnings from Operations:                            
GAAP consolidated EFO   $ 41,445     $ 36,407       $ 133,727     $ 108,162  
Severance and restructuring expenses     494       788         6,211       3,053  
Loss on sale of foreign entity     3,646       -         3,646       -  
Gain on sale of real estate for which a non-cash impairment charge was previously reported     -       -         -       (338 )
Acquisition-related expenses     106       741         3,329       741  
Adjusted non-GAAP consolidated EFO   $ 45,691     $ 37,936       $ 146,913     $ 111,618  
                                     
Adjusted Consolidated Net Earnings:                                
GAAP consolidated net earnings   $ 22,412     $ 21,635       $ 76,515     $ 63,590  
Severance and restructuring expenses     494       788         6,211       3,053  
Loss on sale of foreign entity     3,646       -         3,646       -  
Gain on sale of real estate for which a non-cash impairment charge was previously reported     -       -         -       (338 )
Acquisition-related expenses     106       741         3,329       741  
Income taxes on non-GAAP adjustments     (149 )     (439 )       (1,746 )     (977 )
Adjusted non-GAAP consolidated net earnings   $ 26,509     $ 22,725       $ 87,955     $ 66,069  
Adjusted Consolidated Diluted EPS:                                
GAAP consolidated diluted EPS   $ 0.62     $ 0.6       $ 2.11     $ 1.74  
Severance and restructuring expenses     0.01       0.02         0.17       0.08  
Loss on sale of foreign entity     0.1       -         0.1       -  
Gain on sale of real estate for which a non-cash impairment charge was previously reported     -       -         -       (0.01 )
Acquisition-related expenses     -       0.02         0.09       0.02  
Income taxes on non-GAAP adjustments     -       (0.01 )       (0.04 )     (0.02 )
Adjusted non-GAAP consolidated diluted EPS   $ 0.73     $ 0.63       $ 2.43     $ 1.81  
                                     
                                     
Adjusted North America Earnings from Operations:                            
GAAP EFO from North America segment   $ 42,770     $ 35,755       $ 116,417     $ 87,756  
Severance and restructuring expenses     398       643         2,045       2,451  
Gain on sale of real estate for which a non-cash impairment charge was previously reported     -       -         -       (338 )
Acquisition-related expenses     -       575         3,223       575  
Adjusted non-GAAP EFO from North America segment   $ 43,168     $ 36,973       $ 121,685     $ 90,444  
                                     
Adjusted EMEA Earnings from Operations:                              
GAAP EFO from EMEA segment   $ (2,135 )   $ 270       $ 10,220     $ 14,660  
Severance and restructuring expenses     53       145         4,062       487  
Loss on sale of foreign entity     3,646       -         3,646       -  
Acquisition-related expenses     106       -         106       -  
Adjusted non-GAAP EFO from EMEA segment   $ 1,670     $ 415       $ 18,034     $ 15,147  
 
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
(In thousands, except per share data)
(unaudited)
 

 

 

Three Months Ended

  Nine Months Ended

 

 

September 30,

  September 30,
    2017   2016   2017   2016
Adjusted APAC Earnings from Operations:                    
GAAP EFO from APAC segment   $ 810   $ 382   $ 7,090   $ 5,746
Severance and restructuring expenses     43     -       104       115
Acquisition-related expenses     -     166       -       166

Adjusted non-GAAP EFO from APAC segment

 

$

853

 

$

548

 

$

7,194

 

$

6,027

Contacts

Glynis Bryan
Chief Financial Officer
Tel. 480.333.3390
Email glynis.bryan@insight.com
or
Helen Johnson
Senior VP, Finance
Tel. 480.333.3234
Email helen.johnson@insight.com