Insight Enterprises(NSIT)2024-08-01 18:00Financial Performance - Total net sales for Q2 2024 were 2,349,596 in Q2 2023[11] - Gross profit increased to 433,190 in Q2 2023[11] - Net earnings for Q2 2024 were 80,482 in Q2 2023[11] - Earnings from operations rose to 118,611 in Q2 2023, marking an increase of 10.3%[11] - The company reported a gross margin improvement, with gross profit as a percentage of total net sales increasing to 20.9% in Q2 2024 from 18.4% in Q2 2023[11] - Services net sales increased by 7.7% to 403,987 in Q2 2023[11] - Net earnings for the quarter ending June 30, 2024, were reported at 80,482 for the same period in 2023, representing an increase of 8.4% year-over-year[15] - Net earnings for the second quarter of 2024 reached 130,454,000 in the same period of 2023, representing a growth of approximately 18.4%[17] Cash Flow and Liquidity - Net cash provided by operating activities was 187,960,000 for the same period in 2023, indicating a significant increase of about 55.7%[17] - Cash and cash equivalents at the end of the period on June 30, 2024 was 270,785,000 at the beginning of the period[140] - The company reported a decrease in cash, cash equivalents, and restricted cash of 258,350,000[17] - Operating activities generated 188.0 million in the same period of 2023, reflecting a 56% increase[141] Equity and Stock Repurchases - As of June 30, 2024, total stockholders' equity increased to 1,755,491 at March 31, 2024, reflecting a growth of approximately 5.2%[15] - The company repurchased treasury stock worth 35,000,000 during the six months ended June 30, 2024, at an average price of 99,980,000 at an average price of 995,072,000, with a long-term debt portion of 500,000,000 of 6.625% Senior Notes due 2032, with net proceeds used to repay a portion of outstanding borrowings under the ABL facility[36] - Borrowings on the ABL revolving credit facility amounted to 2,872,410,000 during the financing activities[17] - The company has a maximum borrowing amount under the ABL facility of 171,283,000 outstanding as of June 30, 2024[35] Segment Performance - The company is organized into three operating segments: North America, EMEA, and APAC, focusing on hardware, software, and services including cloud solutions[19] - For the three months ended June 30, 2024, total revenue was 1,732,357,000, EMEA 60,432,000[60] - Net sales in North America decreased by 9%, or 22.9 million, for the three months ended June 30, 2024, compared to the same period in 2023, with software and hardware sales decreasing by 15% and 5%, respectively[108] - In APAC, net sales were relatively flat for the three months ended June 30, 2024, with a slight increase of 1% year over year, driven by a 12% increase in services net sales[110] Operational Efficiency and Future Outlook - The company expects to continue facing supply constraints but believes they have normalized back to near historic levels[5] - Future capital expenditures are projected to increase as the company continues to evolve its IT systems and expand its cloud business[5] - The company aims to enhance operational efficiency through shared services and infrastructure to realize economies of scale[66] - The company expects continued higher interest rates due to inflation, which may impact financial condition and liquidity into the second half of 2024[97] Tax and Compliance - The effective tax rate is expected to return to more typical levels in the foreseeable future[5] - Effective tax rates for the three and six months ended June 30, 2024 were 25.5% and 24.8%, respectively, compared to 26.3% and 25.7% for the same periods in 2023[6][7] - As of June 30, 2024, the company had approximately 13,947,000 as of December 31, 2023[7] Acquisitions - The acquisition of Infocenter.io Corporation was completed for a cash purchase price of 24,200,000 based on EBITDA performance through April 2026[75] - The acquisition of SADA Systems, LLC was finalized for a cash purchase price of 390,000,000 based on performance through 2026[79] - Amdaris Group Limited was acquired for a preliminary cash purchase price of approximately 0 to $54,391,000 through 2026[88]