Form 8-K INSIGHT ENTERPRISES INC For: Oct 29

October 29, 2014 4:21 PM

�

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

�

FORM 8-K

�

CURRENT REPORT

Pursuant to Section�13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report: October�29, 2014

�

INSIGHT ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

�


Delaware	�	0-25092	�	86-0766246
(State or other jurisdiction	�	(Commission	�	(I.R.S. Employer
of incorporation)	�	File Number)	�	Identification No.)

�


6820 South Harl Avenue, Tempe, Arizona	�	85283
(Address of principal executive offices)	�	(Zip Code)

Registrant�s telephone number, including area code: (480) 333-3000

Not Applicable

(Former name or former address, if changed since last report)

�

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

�

�	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

�

�	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

�

�	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

�

�	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

�

Item�2.02.

Results of Operations and Financial Condition.

On October�29, 2014, Insight Enterprises, Inc. announced by press release its results of operations for the third quarter ended September�30, 2014. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information disclosed under this Item�2.02, including Exhibit 99.1 hereto, shall not be deemed �filed� for purposes of Section�18 of the Securities Exchange Act of 1934, as amended (the �Exchange Act�), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

�

Item�9.01.

Financial Statements and Exhibits.

(d) Exhibits.

�


Exhibit Number	��	Description

99.1	��	Press release dated October 29, 2014.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

�


	�	�	Insight Enterprises, Inc.

Date: October�29, 2014	�	�	By:	�	/s/ Glynis A. Bryan
	�	�		�	Glynis A. Bryan
	�	�		�	Chief Financial Officer

Exhibit 99.1

�

LOGO

�


FOR IMMEDIATE RELEASE	��	Nasdaq: NSIT

INSIGHT ENTERPRISES, INC. REPORTS THIRD QUARTER 2014 RESULTS

TEMPE, AZ � October�29, 2014 � Insight Enterprises, Inc. (NASDAQ: NSIT) (the �Company�) today reported results of operations for the quarter ended September�30, 2014.

�

Consolidated net sales increased 8% compared to the third quarter of 2013 to $1.24 billion.

�

Net sales in North America increased 4% to $891.3 million,

�

Net sales in EMEA increased 19% to $313.6 million, and

�

Net sales in APAC increased 11% to $32.7 million.

�

Excluding the effects of foreign currency movements, net sales in EMEA and APAC increased 15% and 10%, respectively, for the third quarter of 2014 compared to the third quarter of 2013.

�

Consolidated gross profit increased 2% compared to the third quarter of 2013 to $171.8 million, with consolidated gross margin decreasing approximately 80 basis points to 13.9% of net sales.

�

Gross profit in North America of $120.2 million decreased 2% year to year, at 13.5% gross margin,

�

Gross profit in EMEA of $44.9 million was up 14% year over year, at 14.3% gross margin, and

�

Gross profit in APAC of $6.7 million was up 5% year over year, at 20.5% gross margin.

�

Excluding the effects of foreign currency movements, gross profit in EMEA and APAC increased 11% and 4%, respectively, for the third quarter of 2014 compared to the third quarter of 2013.

�

Earnings from operations increased 8% compared to the third quarter of 2013 to $28.4 million, or 2.3% of net sales.

�

Earnings from operations in North America decreased 12% year to year to $25.7 million, or 2.9% of net sales,

�

EMEA reported earnings from operations of $2.0 million, or 0.6% of net sales, compared to a loss from operations of $3.8 million reported in the third quarter of 2013, and

�

Earnings from operations in APAC decreased 12% year to year to $646,000, or 2.0% of net sales.

�

Non-GAAP earnings from operations, which exclude severance and restructuring expenses, were flat year over year at $28.7 million.*

�

Net earnings and diluted earnings per share for the third quarter of 2014 were $17.4 million and $0.42, respectively, at an effective tax rate of 34.1%.

- MORE -

Insight Enterprises, Inc.�� 6820 South Harl Avenue�� Tempe, Arizona 85283�� 800.467.4448�� FAX 480.760.8958


Insight Q3 2014 Results, Page 2	��	October 29, 2014

�

Non-GAAP net earnings and diluted earnings per share for the third quarter of 2014, which exclude severance and restructuring expenses and the tax effect of these charges, were $17.6 million and $0.43, respectively.*

�We are pleased to report that we saw top line growth in the third quarter in each of our geographic operating segments and in each of our major product categories of hardware, software and services,� stated Ken Lamneck, President and Chief Executive Officer. �Strong gross profit growth and cost management discipline in our EMEA business drove a significant improvement in earnings from operations year over year in that segment, which offset the effects of lower gross margins and increased investments in our sales force in North America.�In the fourth quarter, we will continue to invest in our sales force to position us well to capitalize on market growth opportunities heading into 2015,� added Lamneck.

The Company refers to changes in net sales and gross profit in EMEA and APAC excluding the effects of foreign currency movements. 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.

Net of tax 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 and net operating losses in certain jurisdictions.

* A tabular reconciliation of financial measures prepared in accordance with United States generally accepted accounting principles (�GAAP�) to non-GAAP financial measures is included at the end of this press release.

UPDATED GUIDANCE

The Company currently expects diluted earnings per share to be between $0.54 and $0.60 in the fourth quarter.�For the full year 2014 earnings per share is expected to be between $1.99 and $2.05.�This outlook includes an effective tax rate of 38% for the fourth quarter.�This outlook does not reflect severance and restructuring expenses incurred during the year or the non-cash charge related to the Company�s Illinois real estate recorded in the second quarter.

STOCK REPURCHASE PROGRAM

The Company�s Board of Directors has approved an additional authorization to repurchase up to $25�million of the Company�s common stock. This $25 million is in addition to the $12.6 million remaining under a previous authorization. The Company�s share repurchases will be made on the open market, subject to Rule 10b-18 or in privately negotiated transactions, through block trades, through 10b5-1 plans or otherwise, at management�s discretion. The amount of shares purchased and the timing of the purchases will be based on market conditions, working capital requirements, general business conditions and other factors. The Company intends to retire the repurchased shares.

�

- MORE -

Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 3	��	October 29, 2014

�

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 2014 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 14757076.

USE OF NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures exclude severance and restructuring expenses in 2014 and 2013, non-cash impairment and accelerated depreciation charges related to our Illinois real estate assets held for sale in the nine months ended September�30, 2014 and the tax effect of these charges. The Company excludes these charges 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.

�

- MORE -

Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 4	��	October 29, 2014

�

FINANCIAL SUMMARY TABLE

(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

�

��

Three Months Ended September�30,

�

Nine Months Ended September�30,

�

��

2014

�

2013

�

change

�

2014

�

2013

�

change

�

Insight Enterprises, Inc.

��

�

Net sales

��

1,237,668

��

�

1,151,020

��

�

%�

�

3,870,095

��

�

3,749,189

��

�

%�

Gross profit

��

171,820

��

�

168,668

��

�

%�

�

530,164

��

�

517,732

��

�

%�

Gross margin

��

�

13.9

%�

�

14.7

%�

�

(80

�bps)�

�

13.7

%�

�

13.8

%�

�

(10

�bps)�

Selling and administrative expenses

��

143,134

��

�

139,965

��

�

%�

�

433,373

��

�

424,111

��

�

%�

Severance and restructuring expenses

��

308

��

�

2,424

��

�

(87

%)�

�

955

��

�

8,327

��

�

(89

%)�

Earnings from operations

��

28,378

��

�

26,279

��

�

%�

�

95,836

��

�

85,294

��

�

%�

Net earnings

��

17,402

��

�

15,025

��

�

%�

�

56,201

��

�

50,614

��

�

%�

Diluted earnings per share

��

0.42

��

�

0.35

��

�

%�

�

1.36

��

�

1.16

��

�

%�

North America

��

�

Net sales

��

891,345

��

�

857,935

��

�

%�

�

2,561,279

��

�

2,528,002

��

�

%�

Gross profit

��

120,214

��

�

122,944

��

�

%)�

�

352,665

��

�

350,135

��

�

%�

Gross margin

��

�

13.5

%�

�

14.3

%�

�

(80

�bps)�

�

13.8

%�

�

13.9

%�

�

(10

�bps)�

Selling and administrative expenses

��

94,382

��

�

93,082

��

�

%�

�

278,121

��

�

272,573

��

�

%�

Severance and restructuring expenses

��

102

��

�

530

��

�

(81

%)�

�

165

��

�

2,554

��

�

(94

%)�

Earnings from operations

��

25,730

��

�

29,332

��

�

(12

%)�

�

74,379

��

�

75,008

��

�

%)�

EMEA

��

�

Net sales

��

313,644

��

�

263,551

��

�

%�

�

1,148,444

��

�

1,071,578

��

�

%�

Gross profit

��

44,895

��

�

39,343

��

�

%�

�

150,302

��

�

142,191

��

�

%�

Gross margin

��

�

14.3

%�

�

14.9

%�

�

(60

�bps)�

�

13.1

%�

�

13.3

%�

�

(20

�bps)�

Selling and administrative expenses

��

42,684

��

�

41,232

��

�

%�

�

135,819

��

�

133,297

��

�

%�

Severance and restructuring expenses

��

209

��

�

1,894

��

�

(89

%)�

�

684

��

�

5,773

��

�

(88

%)�

Earnings (loss) from operations

��

2,002

��

�

(3,783

)�

�

153

%�

�

13,799

��

�

3,121

��

�

342

%�

APAC

��

�

Net sales

��

32,679

��

�

29,534

��

�

%�

�

160,372

��

�

149,609

��

�

%�

Gross profit

��

6,711

��

�

6,381

��

�

%�

�

27,197

��

�

25,406

��

�

%�

Gross margin

��

�

20.5

%�

�

21.6

%�

�

(110

�bps)�

�

17.0

%�

�

17.0

%�

�

��

Selling and administrative expenses

��

6,068

��

�

5,651

��

�

%�

�

19,433

��

�

18,241

��

�

%�

Severance and restructuring expenses

��

)�

�

��

�

N/A

��

�

106

��

�

��

�

N/A

��

Earnings from operations

��

646

��

�

730

��

�

(12

%)�

�

7,658

��

�

7,165

��

�

%�

�

��

North America

�

EMEA

�

APAC

�

��

Three Months Ended
September�30,

�

Three Months Ended
September�30,

�

Three Months Ended
September�30,

�

Sales Mix

��

2014

�

2013

�

%�change*

�

2014

�

2013

�

%�change*

�

2014

�

2013

�

%�change*

�

Hardware

��

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

142

%�

Software

��

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

Services

��

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

�

%�

��

�

��

�

100

%�

�

100

%�

�

%�

�

100

%�

�

100

%�

�

%�

�

100

%�

�

100

%�

�

%�

��

�

*	Represents growth/decline in category net sales on a U.S. dollar basis.

�

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Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 5	��	October 29, 2014

�

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 expectations relative to its expected fourth quarter and full year 2014 financial results, including diluted earnings per share, and the assumptions relating thereto, including the effective tax rate and the Company�s plans to continue to invest in its sales force, 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, 2013:

�

the Company�s reliance on partners for product availability and competitive products to sell as well as the Company�s competition with its partners;

�

the Company�s reliance on partners for marketing funds and purchasing incentives;

�

changes in the IT industry and/or rapid changes in technology;

�

disruptions in the Company�s IT systems and voice and data networks, including risks and costs associated with the integration and upgrade of the Company�s IT systems;

�

actions of the Company�s competitors, including manufacturers and publishers of products the Company sells;

�

failure to comply with the terms and conditions of the Company�s commercial and public sector contracts;

�

the security of the Company�s electronic and other confidential information;

�

general economic conditions;

�

the Company�s dependence on certain personnel;

�

the variability of the Company�s net sales and gross profit;

�

the integration and operation of acquired businesses, including the Company�s ability to achieve expected benefits of the acquisitions;

�

the risks associated with the Company�s international operations;

�

exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations; and

�

intellectual property infringement claims and challenges to the Company�s registered trademarks and trade names.

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.

�


CONTACTS:	��	GLYNIS BRYAN	��	HELEN JOHNSON
	��	CHIEF FINANCIAL OFFICER	��	SENIOR VP, TREASURER
	��	TEL. 480.333.3390	��	TEL. 480.333.3234
	��	EMAIL [email protected]	��	EMAIL [email protected]

�

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Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 6	��	October 29, 2014

�

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

�

��

Three Months Ended
September�30,

�

Nine Months Ended
September�30,

�

��

2014

�

2013

�

2014

�

2013

�

Net sales

��

1,237,668

��

�

1,151,020

��

�

3,870,095

��

�

3,749,189

��

Costs of goods sold

��

�

1,065,848

��

�

982,352

��

�

3,339,931

��

�

3,231,457

��

�

Gross profit

��

�

171,820

��

�

168,668

��

�

530,164

��

�

517,732

��

Operating expenses:

��

�

Selling and administrative expenses

��

�

143,134

��

�

139,965

��

�

433,373

��

�

424,111

��

Severance and restructuring expenses

��

�

308

��

�

2,424

��

�

955

��

�

8,327

��

�

Earnings from operations

��

�

28,378

��

�

26,279

��

�

95,836

��

�

85,294

��

Non-operating (income) expense:

��

�

Interest income

��

�

(229

)�

�

(322

)�

�

(811

)�

�

(971

)�

Interest expense

��

�

1,594

��

�

1,603

��

�

4,553

��

�

4,777

��

Net foreign currency exchange loss (gain)

��

�

238

��

�

474

��

�

1,195

��

�

(251

)�

Other expense, net

��

�

369

��

�

364

��

�

1,061

��

�

1,080

��

�

Earnings before income taxes

��

�

26,406

��

�

24,160

��

�

89,838

��

�

80,659

��

Income tax expense

��

�

9,004

��

�

9,135

��

�

33,637

��

�

30,045

��

�

Net earnings

��

17,402

��

�

15,025

��

�

56,201

��

�

50,614

��

�

Net earnings per share:

��

�

Basic

��

0.42

��

�

0.35

��

�

1.36

��

�

1.17

��

�

Diluted

��

0.42

��

�

0.35

��

�

1.36

��

�

1.16

��

�

Shares used in per share calculations:

��

�

Basic

��

�

40,972

��

�

42,334

��

�

41,185

��

�

43,289

��

�

Diluted

��

�

41,270

��

�

42,577

��

�

41,472

��

�

43,555

��

�

- MORE -

Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 7	��	October 29, 2014

�

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

(UNAUDITED)

�


�	��	September�30,		�	��	December�31,		�
�	��	2014		�	��	2013		�
ASSETS	��				��
Current assets:	��				��
Cash and cash equivalents	��	$	127,102	��	��	$	126,817	��
Accounts receivable, net	��	�	1,037,173	��	��	�	1,257,910	��
Inventories	��	�	128,983	��	��	�	97,268	��
Inventories not available for sale	��	�	39,046	��	��	�	38,705	��
Deferred income taxes	��	�	16,600	��	��	�	16,436	��
Other current assets	��	�	67,974	��	��	�	57,528	��
	��	�	�	�	��	�	�	�
Total current assets	��	�	1,416,878	��	��	�	1,594,664	��
Property and equipment, net	��	�	110,965	��	��	�	132,820	��
Goodwill	��	�	26,257	��	��	�	26,257	��
Intangible assets, net	��	�	26,700	��	��	�	35,765	��
Deferred income taxes	��	�	58,589	��	��	�	58,651	��
Other assets	��	�	16,219	��	��	�	19,561	��
	��	�	�	�	��	�	�	�
	��	$	1,655,608	��	��	$	1,867,718	��
	��	�	�	�	��	�	�	�
LIABILITIES AND STOCKHOLDERS� EQUITY	��				��
Current liabilities:	��				��
Accounts payable	��	$	673,528	��	��	$	850,951	��
Accrued expenses and other current liabilities	��	�	115,286	��	��	�	156,491	��
Current portion of long-term debt	��	�	914	��	��	�	217	��
Deferred revenue	��	�	52,327	��	��	�	44,146	��
	��	�	�	�	��	�	�	�
Total current liabilities	��	�	842,055	��	��	�	1,051,805	��
Long-term debt	��	�	53,591	��	��	�	66,949	��
Deferred income taxes	��	�	959	��	��	�	443	��
Other liabilities	��	�	22,884	��	��	�	31,603	��
	��	�	�	�	��	�	�	�
	��	�	919,489	��	��	�	1,150,800	��
	��	�	�	�	��	�	�	�
Stockholders� equity:	��				��
Preferred stock	��	�	��	��	��	�	��	��
Common stock	��	�	410	��	��	�	420	��
Additional paid-in capital	��	�	342,772	��	��	�	348,703	��
Retained earnings	��	�	390,971	��	��	�	353,854	��
Accumulated other comprehensive income � foreign currency translation adjustments	��	�	1,966	��	��	�	13,941	��
	��	�	�	�	��	�	�	�
Total stockholders� equity	��	�	736,119	��	��	�	716,918	��
	��	�	�	�	��	�	�	�
	��	$	1,655,608	��	��	$	1,867,718	��
	��	�	�	�	��	�	�	�

�

- MORE -

Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 8	��	October 29, 2014

�

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

�


�	��	Nine�Months�Ended�September�30,						�
�	��	2014		�	�	2013		�
Cash flows from operating activities:	��				�
Net earnings	��	$	56,201	��	�	$	50,614	��
Adjustments to reconcile net earnings to net cash provided by operating activities:	��				�
Depreciation and amortization	��	�	30,648	��	�	�	31,337	��
Non-cash real estate impairment	��	�	4,558	��	�	�	��	��
Provision for losses on accounts receivable	��	�	3,235	��	�	�	4,118	��
Write-downs of inventories	��	�	2,028	��	�	�	3,120	��
Write-off of property and equipment	��	�	531	��	�	�	338	��
Non-cash stock-based compensation	��	�	5,861	��	�	�	4,911	��
Excess tax benefit from employee gains on stock-based compensation	��	�	(438	)�	�	�	(763	)�
Deferred income taxes	��	�	447	��	�	�	4,676	��
Changes in assets and liabilities:	��				�
Decrease in accounts receivable	��	�	201,258	��	�	�	367,799	��
Increase in inventories	��	�	(34,628	)�	�	�	(16,270	)�
Increase in other current assets	��	�	(9,056	)�	�	�	(20,702	)�
Decrease (increase) in other assets	��	�	3,203	��	�	�	(2,998	)�
Decrease in accounts payable	��	�	(177,627	)�	�	�	(329,428	)�
Increase in deferred revenue	��	�	8,986	��	�	�	3,583	��
Decrease in accrued expenses and other liabilities	��	�	(47,411	)�	�	�	(33,759	)�
	��	�	�	�	�	�	�	�
Net cash provided by operating activities	��	�	47,796	��	�	�	66,576	��
	��	�	�	�	�	�	�	�
Cash flows from investing activities:	��				�
Purchases of property and equipment	��	�	(7,983	)�	�	�	(14,145	)�
	��	�	�	�	�	�	�	�
Net cash used in investing activities	��	�	(7,983	)�	�	�	(14,145	)�
	��	�	�	�	�	�	�	�
Cash flows from financing activities:	��				�
Borrowings on senior revolving credit facility	��	�	399,492	��	�	�	778,828	��
Repayments on senior revolving credit facility	��	�	(398,992	)�	�	�	(801,828	)�
Borrowings on accounts receivable securitization financing facility	��	�	708,070	��	�	�	637,000	��
Repayments on accounts receivable securitization financing facility	��	�	(723,070	)�	�	�	(606,000	)�
Borrowings under other financing agreements	��	�	2,002	��	�	�	��	��
Payments on capital lease obligation	��	�	(163	)�	�	�	(617	)�
Net borrowings (repayments) under inventory financing facility	��	�	10,408	��	�	�	(19,946	)�
Payment of deferred financing fees	��	�	(277	)�	�	�	��	��
Excess tax benefit from employee gains on stock-based compensation	��	�	438	��	�	�	763	��
Payment of payroll taxes on stock-based compensation through shares withheld	��	�	(1,662	)�	�	�	(2,756	)�
Repurchases of common stock	��	�	(29,652	)�	�	�	(50,000	)�
	��	�	�	�	�	�	�	�
Net cash used in financing activities	��	�	(33,406	)�	�	�	(64,556	)�
	��	�	�	�	�	�	�	�
Foreign currency exchange effect on cash balances	��	�	(6,122	)�	�	�	(4,962	)�
	��	�	�	�	�	�	�	�
Increase (decrease) in cash and cash equivalents	��	�	285	��	�	�	(17,087	)�
Cash and cash equivalents at beginning of period	��	�	126,817	��	�	�	152,119	��
	��	�	�	�	�	�	�	�
Cash and cash equivalents at end of period	��	$	127,102	��	�	$	135,032	��
	��	�	�	�	�	�	�	�

�

- MORE -

Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958


Insight Q3 2014 Results, Page 9	��	October 29, 2014

�

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

�

��

Three Months Ended
September�30,

�

Nine Months Ended
September�30,

�

��

2014

�

2013

�

2014

�

��

2013

�

Consolidated Earnings from Operations:

��

�

GAAP

��

28,378

��

�

26,279

��

�

95,836

��

85,294

��

Non-cash real estate impairment and accelerated depreciation

��

�

��

�

��

�

5,178

��

�

��

Severance and restructuring expenses

��

�

308

��

�

2,424

��

�

955

��

�

8,327

��

�

��

�

Non-GAAP

��

28,686

��

�

28,703

��

�

101,969

��

93,621

��

�

��

�

Consolidated Net Earnings:

��

�

GAAP

��

17,402

��

�

15,025

��

�

56,201

��

50,614

��

Non-cash real estate impairment and accelerated depreciation, net of tax

��

�

��

�

��

�

3,174

��

�

��

Severance and restructuring expenses, net of tax

��

�

195

��

�

1,709

��

�

598

��

�

6,135

��

�

��

�

Non-GAAP

��

17,597

��

�

16,734

��

�

59,973

��

56,749

��

�

��

�

Consolidated Diluted EPS:

��

�

GAAP

��

0.42

��

�

0.35

��

�

1.36

��

1.16

��

Non-cash real estate impairment and accelerated depreciation, net of tax

��

�

��

�

��

�

0.08

��

�

��

Severance and restructuring expenses, net of tax

��

�

0.01

��

�

0.04

��

�

0.01

��

�

0.14

��

�

��

�

Non-GAAP

��

0.43

��

�

0.39

��

�

1.45

��

1.30

��

�

��

�

North America Earnings from Operations:

��

�

GAAP

��

25,730

��

�

29,332

��

�

74,379

��

75,008

��

Non-cash real estate impairment and accelerated depreciation

��

�

��

�

��

�

5,178

��

�

��

Severance and restructuring (income) expenses

��

�

102

��

�

530

��

�

165

��

�

2,554

��

�

��

�

Non-GAAP

��

25,832

��

�

29,862

��

�

79,722

��

77,562

��

�

��

�

EMEA Earnings (Loss) from Operations:

��

�

GAAP

��

2,002

��

�

(3,783

)�

�

13,799

��

3,121

��

Severance and restructuring expenses

��

�

209

��

�

1,894

��

�

684

��

�

5,773

��

�

��

�

Non-GAAP

��

2,211

��

�

(1,889

)�

�

14,483

��

8,894

��

�

��

�

APAC Earnings from Operations:

��

�

GAAP

��

646

��

�

730

��

�

7,658

��

7,165

��

Severance and restructuring expenses

��

�

)�

�

��

�

106

��

�

��

�

��

�

Non-GAAP

��

643

��

�

730

��

�

7,764

��

7,165

��

�

��

�

- ### -

Insight Enterprises, Inc. ��6820 South Harl Avenue ��Tempe, Arizona 85283 ��800.467.4448 ��FAX 480.760.8958

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