05/06/2021 | Press release | Distributed by Public on 05/06/2021 06:03
TEMPE, Ariz.--(BUSINESS WIRE)-- Insight Enterprises, Inc. (Nasdaq: NSIT) (the 'Company') today reported financial results for the quarter ended March 31, 2021. Highlights include:
In the first quarter of 2021, net sales increased 2%, year over year. Gross profit also increased 2%, while gross margin contracted 10 basis points compared to the first quarter of 2020. Earnings from operations of $67.0 million increased 27% compared to $52.9 million in the first quarter of 2020. Adjusted earnings from operations of $68.3 million increased 3% compared to $66.6 million in the first quarter of 2020. Diluted earnings per share for the quarter was $1.18, up 24%, year over year, and adjusted diluted earnings per share was $1.30, flat year to year.
'In the first quarter, with the launch of COVID-19 vaccines, parts of the world began to awaken from the year-long quarantine and economic pause. I'm happy to report that our business returned to organic top line growth year over year in the first quarter,' stated Ken Lamneck, President and Chief Executive Officer. 'Largely consistent gross margins, year over year, combined with operating leverage, drove earnings from operations up 27% and Adjusted earnings from operations up 3%. Our performance for the quarter sets a good base for what we expect will be a strong year.' stated Lamneck.
KEY HIGHLIGHTS
In discussing financial results for the three months ended March 31, 2021 and 2020 in this press release, the Company refers to certain financial measures that are adjusted from the financial results 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.' 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.
In some instances, 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.
STOCK REPURCHASE
On May 3, 2021, the Company's Board of Directors authorized the Company to increase amounts available under the existing stock repurchase program, pursuant to which the Company may purchase up to an aggregate of $125 million of the Company's common stock, including $25 million that was previously authorized in February 2020. The Company's share repurchases will be made on the open market, through block trades, through 10b5-1 plans or otherwise. The number of shares purchased, and the timing of the purchases will be based on working capital requirements, general business conditions and other factors. The Company intends to retire the repurchased shares.
GUIDANCE
For the full year 2021, the Company expects to deliver net sales growth in the 4% to 8% range and Adjusted diluted earnings per share is expected to be between $6.60 and $6.80. This forecast is unchanged from the previously communicated outlook.
This outlook assumes
This outlook excludes acquisition-related intangibles amortization expense of approximately $32 million and the non-cash convertible debt discount and issuance costs, reported as part of interest expense, of approximately $12 million and assumes no acquisition-related or severance and restructuring expenses. Due to the inherent difficulty of forecasting some of these types of expenses, which impact net earnings and diluted earnings per share, the Company is unable to reasonably estimate the 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 2021 forecast.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live webcast today at 9:00 a.m. ET to discuss first quarter 2021 results of operations. A live webcast of the conference call (in listen-only mode) will be available on the Company's web site at http://investor.insight.com/, and a replay of the webcast will be available on the Company's web site for a limited time following the call. To access the live conference call, please register in advance using this event link. Upon registering, participants will receive dial-in information via email, as well as a unique registrant ID, event passcode, and detailed instructions regarding how to join the call.
USE OF NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures are referred to as 'Adjusted'. Adjusted consolidated earnings from operations, Adjusted consolidated net earnings and Adjusted diluted earnings per share exclude (i) severance and restructuring expenses, (ii) certain acquisition and integration related expenses, (iii) amortization of intangible assets, and (iv) the tax effects of each of these items, as applicable. Adjusted consolidated net earnings and Adjusted diluted earnings per share also exclude amortization of debt discount and issuance costs associated with the issuance of the Company's convertible senior notes due 2025. 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. Adjusted diluted earnings per share also includes the impact of the benefit from the note hedge where the Company's average stock price for the first quarter of 2021 was in excess of $68.32, which is the initial conversion price of the convertible senior notes. Adjusted EBITDA adds back (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization of property and equipment, (iv) amortization of intangibles, (v) non-cash stock based compensation (vi) severance and restructuring expenses and (vii) certain acquisition and integration related expenses. Adjusted free cash flow is the Company's net cash provided by operating activities adjusted for (i) purchases of property and equipment and (ii) the net borrowings or repayments under the inventory financing facilities. Adjusted return on invested capital ('ROIC') excludes (i) severance and restructuring expenses, (ii) certain acquisition and integration related expenses, (iii) impairment of construction in progress, (iv) loss on sale of property, (v) litigation settlement proceeds, and (vi) the tax effects of each of these items, as applicable.
These non-GAAP measures are used by the Company and its management 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 |
|||||||||||||
Three Months Ended March 31, |
|||||||||||||
2021 |
2020 |
change |
|||||||||||
Insight Enterprises, Inc. |
|||||||||||||
Net sales: |
|||||||||||||
Products |
$ |
1,893,020 |
$ |
1,848,316 |
2 |
% |
|||||||
Services |
$ |
300,048 |
$ |
295,735 |
1 |
% |
|||||||
Total net sales |
$ |
2,193,068 |
$ |
2,144,051 |
2 |
% |
|||||||
Gross profit |
$ |
331,474 |
$ |
325,336 |
2 |
% |
|||||||
Gross margin |
15.1 |
% |
15.2 |
% |
(10 bps) |
||||||||
Selling and administrative expenses |
$ |
271,190 |
$ |
268,863 |
1 |
% |
|||||||
Severance and restructuring expenses |
$ |
(6,740 |
) |
$ |
2,144 |
(> 100%) |
|||||||
Acquisition and integration related expenses |
$ |
- |
$ |
1,466 |
* |
||||||||
Earnings from operations |
$ |
67,024 |
$ |
52,863 |
27 |
% |
|||||||
Net earnings |
$ |
43,168 |
$ |
33,961 |
27 |
% |
|||||||
Diluted earnings per share |
$ |
1.18 |
$ |
0.95 |
24 |
% |
|||||||
North America |
|||||||||||||
Net sales: |
|||||||||||||
Products |
$ |
1,418,227 |
$ |
1,433,649 |
(1 |
%) |
|||||||
Services |
$ |
236,554 |
$ |
240,732 |
(2 |
%) |
|||||||
Total net sales |
$ |
1,654,781 |
$ |
1,674,381 |
(1 |
%) |
|||||||
Gross profit |
$ |
253,489 |
$ |
256,928 |
(1 |
%) |
|||||||
Gross margin |
15.3 |
% |
15.3 |
% |
- |
||||||||
Selling and administrative expenses |
$ |
206,806 |
$ |
211,203 |
(2 |
%) |
|||||||
Severance and restructuring expenses |
$ |
(7,238 |
) |
$ |
2,122 |
(> 100%) |
|||||||
Acquisition and integration related expenses |
$ |
- |
$ |
1,262 |
* |
||||||||
Earnings from operations |
$ |
53,921 |
$ |
42,341 |
27 |
% |
|||||||
Sales Mix |
** |
||||||||||||
Hardware |
67 |
% |
68 |
% |
(2 |
%) |
|||||||
Software |
19 |
% |
18 |
% |
1 |
% |
|||||||
Services |
14 |
% |
14 |
% |
(2 |
%) |
|||||||
100 |
% |
100 |
% |
(1 |
%) |
||||||||
EMEA |
|||||||||||||
Net sales: |
|||||||||||||
Products |
$ |
430,394 |
$ |
376,051 |
14 |
% |
|||||||
Services |
$ |
48,442 |
$ |
42,835 |
13 |
% |
|||||||
Total net sales |
$ |
478,836 |
$ |
418,886 |
14 |
% |
|||||||
Gross profit |
$ |
66,035 |
$ |
58,774 |
12 |
% |
|||||||
Gross margin |
13.8 |
% |
14.0 |
% |
(20 bps) |
||||||||
Selling and administrative expenses |
$ |
55,447 |
$ |
50,244 |
10 |
% |
|||||||
Severance and restructuring expenses |
$ |
498 |
$ |
6 |
> 100% |
||||||||
Acquisition and integration related expenses |
$ |
- |
$ |
204 |
* |
||||||||
Earnings from operations |
$ |
10,090 |
$ |
8,320 |
21 |
% |
|||||||
Sales Mix |
** |
||||||||||||
Hardware |
41 |
% |
42 |
% |
12 |
% |
|||||||
Software |
49 |
% |
48 |
% |
17 |
% |
|||||||
Services |
10 |
% |
10 |
% |
13 |
% |
|||||||
100 |
% |
100 |
% |
14 |
% |
||||||||
* |
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) |
||||||||||||
Three Months Ended March 31, |
||||||||||||
2021 |
2020 |
change |
||||||||||
APAC |
||||||||||||
Net sales: |
||||||||||||
Products |
$ |
44,399 |
$ |
38,616 |
15 |
% |
||||||
Services |
$ |
15,052 |
$ |
12,168 |
24 |
% |
||||||
Total net sales |
$ |
59,451 |
$ |
50,784 |
17 |
% |
||||||
Gross profit |
$ |
11,950 |
$ |
9,634 |
24 |
% |
||||||
Gross margin |
20.1 |
% |
19.0 |
% |
110 bps |
|||||||
Selling and administrative expenses |
$ |
8,937 |
$ |
7,416 |
21 |
% |
||||||
Severance and restructuring expenses |
$ |
- |
$ |
16 |
* |
|||||||
Earnings from operations |
$ |
3,013 |
$ |
2,202 |
37 |
% |
||||||
Sales Mix |
** |
|||||||||||
Hardware |
16 |
% |
15 |
% |
23 |
% |
||||||
Software |
59 |
% |
61 |
% |
13 |
% |
||||||
Services |
25 |
% |
24 |
% |
24 |
% |
||||||
100 |
% |
100 |
% |
17 |
% |
* |
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, webcast and presentation are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those related to our future responses to and the potential impact of coronavirus strain COVID-19 ('COVID-19') on our Company, the Company's future financial performance and results of operations, the Company's anticipated effective tax rate, capital expenditures, expected average share count, the Company's expectations regarding cash flow, the Company's expectations regarding current supply constraints, future trends in the IT market, including due to COVID-19, our business strategy and our strategic initiatives, 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 the Company's filings with the Securities and Exchange Commission (the 'SEC'), including in 'Risk Factors' in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2020:
Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the SEC. Any forward-looking statements in this release, the related conference call, webcast and presentation speak only as of the date on which they are made and 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 |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Net sales: |
||||||||
Products |
1,893,020 |
$ |
1,848,316 |
|||||
Services |
300,048 |
295,735 |
||||||
Total net sales |
2,193,068 |
2,144,051 |
||||||
Costs of goods sold: |
||||||||
Products |
1,721,258 |
1,670,238 |
||||||
Services |
140,336 |
148,477 |
||||||
Total costs of goods sold |
1,861,594 |
1,818,715 |
||||||
Gross profit |
331,474 |
325,336 |
||||||
Operating expenses: |
||||||||
Selling and administrative expenses |
271,190 |
268,863 |
||||||
Severance and restructuring expenses, net |
(6,740 |
) |
2,144 |
|||||
Acquisition and integration related expenses |
- |
1,466 |
||||||
Earnings from operations |
67,024 |
52,863 |
||||||
Non-operating (income) expense: |
||||||||
Interest expense, net |
9,969 |
11,826 |
||||||
Other expense (income), net |
388 |
(1,563 |
) |
|||||
Earnings before income taxes |
56,667 |
42,600 |
||||||
Income tax expense |
13,499 |
8,639 |
||||||
Net earnings |
$ |
43,168 |
$ |
33,961 |
||||
Net earnings per share: |
||||||||
Basic |
$ |
1.23 |
$ |
0.96 |
||||
Diluted |
$ |
1.18 |
$ |
0.95 |
||||
Shares used in per share calculations: |
||||||||
Basic |
35,199 |
35,233 |
||||||
Diluted |
36,699 |
35,646 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES |
||||||||
March 31, |
December 31, |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
138,753 |
$ |
128,313 |
||||
Accounts receivable, net |
2,583,716 |
2,685,448 |
||||||
Inventories |
253,297 |
185,650 |
||||||
Other current assets |
177,927 |
177,039 |
||||||
Total current assets |
3,153,693 |
3,176,450 |
||||||
Property and equipment, net |
148,531 |
146,016 |
||||||
Goodwill |
429,757 |
429,368 |
||||||
Intangible assets, net |
239,833 |
246,915 |
||||||
Other assets |
282,793 |
311,983 |
||||||
$ |
4,254,607 |
$ |
4,310,732 |
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable - trade |
$ |
1,460,172 |
$ |
1,461,312 |
||||
Accounts payable - inventory financing facilities |
309,075 |
356,930 |
||||||
Accrued expenses and other current liabilities |
404,995 |
408,117 |
||||||
Current portion of long-term debt |
830 |
1,105 |
||||||
Total current liabilities |
2,175,072 |
2,227,464 |
||||||
Long-term debt |
416,401 |
437,581 |
||||||
Deferred income taxes |
33,963 |
33,209 |
||||||
Other liabilities |
246,005 |
270,049 |
||||||
2,871,441 |
2,968,303 |
|||||||
Stockholders' equity: |
||||||||
Preferred stock |
- |
- |
||||||
Common stock |
353 |
351 |
||||||
Additional paid-in capital |
361,935 |
364,288 |
||||||
Retained earnings |
1,036,413 |
993,245 |
||||||
Accumulated other comprehensive loss - foreign currency translation adjustments |
(15,535 |
) |
(15,455 |
) |
||||
Total stockholders' equity |
1,383,166 |
1,342,429 |
||||||
$ |
4,254,607 |
$ |
4,310,732 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net earnings |
$ |
43,168 |
$ |
33,961 |
||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
14,222 |
17,397 |
||||||
Provision for losses on accounts receivable |
2,178 |
3,136 |
||||||
Non-cash stock-based compensation |
4,716 |
4,409 |
||||||
Deferred income taxes |
643 |
(509 |
) |
|||||
Amortization of debt discount and issuance costs |
4,172 |
3,965 |
||||||
Other adjustments |
(7,617 |
) |
1,297 |
|||||
Changes in assets and liabilities: |
||||||||
Decrease in accounts receivable |
93,485 |
22,648 |
||||||
Increase in inventories |
(67,946 |
) |
(48,332 |
) |
||||
Decrease in other assets |
16,759 |
57,241 |
||||||
(Decrease) increase in accounts payable |
(25,315 |
) |
23,277 |
|||||
Decrease in accrued expenses and other liabilities |
(35,759 |
) |
(25,364 |
) |
||||
Net cash provided by operating activities |
42,706 |
93,126 |
||||||
Cash flows from investing activities: |
||||||||
Proceeds from sale of assets held for sale |
27,211 |
14,218 |
||||||
Purchases of property and equipment |
(7,847 |
) |
(7,382 |
) |
||||
Acquisitions, net of cash and cash equivalents acquired |
- |
(6,406 |
) |
|||||
Net cash provided by investing activities |
19,364 |
430 |
||||||
Cash flows from financing activities: |
||||||||
Borrowings on ABL revolving credit facility |
897,848 |
678,197 |
||||||
Repayments on ABL revolving credit facility |
(921,848 |
) |
(788,443 |
) |
||||
Net repayments under inventory financing facilities |
(17,782 |
) |
(764 |
) |
||||
Repurchases of treasury stock |
- |
(25,000 |
) |
|||||
Other payments |
(7,485 |
) |
(5,756 |
) |
||||
Net cash used in financing activities |
(49,267 |
) |
(141,766 |
) |
||||
Foreign currency exchange effect on cash, cash equivalents and restricted cash balances |
(2,445 |
) |
(3,615 |
) |
||||
Increase (decrease) in cash, cash equivalents and restricted cash |
10,358 |
(51,825 |
) |
|||||
Cash, cash equivalents and restricted cash at beginning of period |
130,582 |
116,297 |
||||||
Cash, cash equivalents and restricted cash at end of period |
$ |
140,940 |
$ |
64,472 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Adjusted Consolidated Earnings from Operations: |
||||||||
GAAP consolidated EFO |
$ |
67,024 |
$ |
52,863 |
||||
Amortization of intangible assets |
8,041 |
10,108 |
||||||
Other |
(6,740 |
) |
3,610 |
|||||
Adjusted non-GAAP consolidated EFO |
$ |
68,325 |
$ |
66,581 |
||||
Adjusted Consolidated Net Earnings: |
||||||||
GAAP consolidated net earnings |
$ |
43,168 |
$ |
33,961 |
||||
Amortization of intangible assets |
8,041 |
10,108 |
||||||
Amortization of debt discount and issuance costs |
2,983 |
2,831 |
||||||
Other |
(6,740 |
) |
3,610 |
|||||
Income taxes on non-GAAP adjustments |
(919 |
) |
(4,160 |
) |
||||
Adjusted non-GAAP consolidated net earnings |
$ |
46,533 |
$ |
46,350 |
||||
Adjusted Diluted Earnings Per Share: |
||||||||
GAAP diluted EPS |
$ |
1.18 |
$ |
0.95 |
||||
Amortization of intangible assets |
0.22 |
0.28 |
||||||
Amortization of debt discount and issuance costs |
0.08 |
0.08 |
||||||
Other |
(0.18 |
) |
0.10 |
|||||
Income taxes on non-GAAP adjustments |
(0.03 |
) |
(0.11 |
) |
||||
Impact of benefit from note hedge |
0.03 |
- |
||||||
Adjusted non-GAAP diluted EPS |
$ |
1.30 |
$ |
1.30 |
||||
Shares used in diluted EPS calculation |
36,699 |
35,646 |
||||||
Impact of benefit from note hedge |
(1,039 |
) |
- |
|||||
Shares used in Adjusted non-GAAP diluted EPS calculation |
35,660 |
35,646 |
||||||
Adjusted North America Earnings from Operations: |
||||||||
GAAP EFO from North America segment |
$ |
53,921 |
$ |
42,341 |
||||
Amortization of intangible assets |
7,417 |
9,493 |
||||||
Other |
(7,238 |
) |
3,384 |
|||||
Adjusted non-GAAP EFO from North America segment |
$ |
54,100 |
$ |
55,218 |
||||
Adjusted EMEA Earnings from Operations: |
||||||||
GAAP EFO from EMEA segment |
$ |
10,090 |
$ |
8,320 |
||||
Amortization of intangible assets |
496 |
506 |
||||||
Other |
498 |
210 |
||||||
Adjusted non-GAAP EFO from EMEA segment |
$ |
11,084 |
$ |
9,036 |
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Adjusted APAC Earnings from Operations: |
||||||||
GAAP EFO from APAC segment |
$ |
3,013 |
$ |
2,202 |
||||
Amortization of intangible assets |
128 |
109 |
||||||
Other |
- |
16 |
||||||
Adjusted non-GAAP EFO from APAC segment |
$ |
3,141 |
$ |
2,327 |
||||
Adjusted EBITDA: |
||||||||
GAAP consolidated net earnings |
$ |
43,168 |
$ |
33,961 |
||||
Interest expense |
10,086 |
11,918 |
||||||
Income tax expense |
13,499 |
8,639 |
||||||
Depreciation and amortization of property and equipment |
6,181 |
7,289 |
||||||
Amortization of intangible assets |
8,041 |
10,108 |
||||||
Non-cash stock-based compensation |
4,716 |
4,409 |
||||||
Other |
(6,740 |
) |
3,610 |
|||||
Adjusted non-GAAP EBITDA |
$ |
78,951 |
$ |
79,934 |
||||
GAAP consolidated net earnings as a percentage of net sales |
2.0 |
% |
1.6 |
% |
||||
Adjusted non-GAAP EBITDA as a percentage of net sales |
3.6 |
% |
3.7 |
% |
Twelve Months Ended March 31, |
||||||||
2021 |
2020 |
|||||||
Adjusted return on invested capital: |
||||||||
GAAP consolidated EFO |
$ |
285,736 |
$ |
236,418 |
||||
Other |
2,928 |
21,508 |
||||||
Adjusted non-GAAP consolidated EFO* |
288,664 |
257,926 |
||||||
Income tax expense** |
75,053 |
67,061 |
||||||
Adjusted non-GAAP consolidated EFO, net of tax |
$ |
213,611 |
$ |
190,865 |
||||
Average stockholders' equity*** |
$ |
1,269,282 |
$ |
1,103,865 |
||||
Average debt*** |
468,330 |
522,016 |
||||||
Average cash*** |
(111,766 |
) |
(110,957 |
) |
||||
Invested Capital |
$ |
1,625,846 |
$ |
1,514,924 |
||||
Adjusted non-GAAP ROIC (from GAAP consolidated EFO) **** |
13.01 |
% |
11.55 |
% |
||||
Adjusted non-GAAP ROIC (from non-GAAP consolidated EFO) ***** |
13.14 |
% |
12.60 |
% |
* |
The adjusted non-GAAP consolidated EFO amount used for the Adjusted non-GAAP ROIC calculation does not exclude amortization of intangible assets. This calculation remains consistent with the metric utilized in management's compensation plan. |
** |
Assumed tax rate of 26.0%. |
*** |
Average of previous five quarters. |
**** |
Computed as GAAP consolidated EFO, net of tax of $74,291 and $61,469 for the twelve months ended March 31, 2021 and 2020, respectively, divided by invested capital. |
***** |
Computed as Adjusted non-GAAP consolidated EFO, net of tax, divided by invested capital. |
NSIT-F
Glynis Bryan
Chief Financial Officer
Tel. 480.333.3390
Email [email protected]