Ingram Micro (INGM) Registration Filing summary

Company overview and business model

• Operates as a leading global IT distributor, providing technology products, cloud solutions, and value-added services to over 161,000 customers in 57 countries.

• Offers a broad portfolio including client and endpoint solutions, advanced solutions, and cloud-based services, with a focus on digital transformation and XaaS models.

• Proprietary digital platform, Ingram Micro Xvantage, leverages AI/ML for automation, efficiency, and personalized customer experiences.

• Key vendor relationships include Apple, HP Inc., Cisco, Microsoft, and others, with no single customer accounting for more than 10% of sales.

• Environmental, social, and governance (ESG) initiatives are integrated, targeting zero waste and emissions by 2030.

Financial performance and metrics

• 2023 net sales: $48.0B; net income: $352.7M; Adjusted EBITDA: $1.35B; 2022 net sales: $50.8B; net income: $2.39B (includes $2.28B gain from CLS Sale).

• Q2 2024 (26 weeks): net sales $22.9B, net income $104.1M, Adjusted EBITDA $569M.

• Gross margin for 2023: 7.4%; income from operations margin: 1.97%.

• Cash and cash equivalents as of June 29, 2024: $928.8M; total debt: $3.63B.

• Working capital at June 29, 2024: $3.94B; strong liquidity with $3.5B available under ABL facility.

Use of proceeds and capital allocation

• Net proceeds of ~$227.6M from IPO (at $21.50/share) to repay a portion of the Term Loan Credit Facility.

• No proceeds from shares sold by the selling stockholder; company pays all underwriting discounts and commissions.

• Dividend policy: plans to pay $0.074/share quarterly starting Q1 2025, targeting $70M annual payout (1.4% yield at IPO price).

• Recent capital allocation includes significant voluntary debt repayments and investments in digital platforms and acquisitions.