Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our common stock trades under the symbol “NSIT” on The Nasdaq Global Select Market. As of February 12, 2021, we had 35,103,074 shares of common stock outstanding held by 46 stockholders of record. This figure does not include an estimate of the number of beneficial holders whose shares are held of record by brokerage firms and clearing agencies.
We have never paid a cash dividend on our common stock, and we currently do not intend to pay any cash dividends in the foreseeable future. Our senior secured revolving credit facility contains restrictions on the payment of cash dividends.
Issuer Purchases of Equity Securities
We did not repurchase shares of our common stock during the quarter ended December 31, 2020.
See further information on our share repurchase programs in Note 15 to the Consolidated Financial Statements in Part II, Item 8 of this report.
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INSIGHT ENTERPRISES, INC.
Stock Price Performance Graph
Set forth below is a graph comparing the percentage change in the cumulative total stockholder return on our common stock with the cumulative total return of the Nasdaq US Benchmark TR Index (Market Index) and the Nasdaq US Benchmark Computer Hardware TR Index (Industry Index). The graph assumes that $100 was invested on December 31, 2015 in our common stock and in each of the two Nasdaq indices, and that, as to such indices, dividends were reinvested. We have not, since our inception, paid any cash dividends on our common stock. Historical stock price performance shown on the graph is not necessarily in dicative of future price performance.
Dec. 31,
2015
Dec. 31,
2016
Dec. 31,
2017
Dec. 31,
2018
Dec. 31,
2019
Dec. 31,
2020
Insight Enterprises, Inc. Common
Stock (NSIT)
$
100.00
$
161.00
$
152.00
$
162.00
$
280.00
$
303.00
Nasdaq US Benchmark TR Index
(Market Index)
100.00
113.00
137.00
130.00
170.00
206.00
Nasdaq US Benchmark Computer
Hardware TR Index (Industry Index)
100.00
115.00
166.00
155.00
285.00
505.00
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INSIGHT ENTERPRISES, INC.
Item 6. Selected Financial Data
The following selected consolidated financial data should be read in conjunction with our Consolidated Financial Statements and the Notes thereto in Part II, Item 8 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this report. The selected consolidated financial data presented below under the captions “Consolidated Statements of Operations Data” and “Consolidated Balance Sheet Data” as of and for each of the years in the five-year period ended December 31, 2020 is derived from our audited consolidated financial statements. The consolidated financial statements as of December 31, 2020 and 2019, and for each of the years in the three-year period ended December 31, 2020, which have been audited by KPMG LLP, our independent registered public accounting firm, are included in Part II, Item 8 of this report.
Years Ended December 31,
2020
2019
2018
2017
2016
(in thousands, except per share data)
Consolidated Statements of
Operations Data (1)(2)(3)
Net sales
$
8,340,579
$
7,731,190
$
7,080,136
$
6,703,623
$
5,485,515
Costs of goods sold
7,040,637
6,593,092
6,086,418
5,785,053
4,742,413
Gross profit
1,299,942
1,138,098
993,718
918,570
743,102
Operating expenses:
Selling and administrative
expenses
1,013,765
880,737
756,529
723,328
585,243
Severance and restructuring
expenses
12,394
5,425
3,424
9,002
4,580
Loss on sale of foreign entity
—
—
—
3,646
—
Acquisition-related expenses
2,208
11,342
282
3,329
4,447
Earnings from operations
271,575
240,594
233,483
179,265
148,832
Non-operating (income) expense:
Interest expense, net
41,594
28,478
21,737
17,965
7,562
Other expense (income)
1,529
400
(156
)
2,202
1,812
Earnings before income taxes
228,452
211,716
211,902
159,098
139,458
Income tax expense
55,812
52,309
48,225
68,415
54,768
Net earnings
$
172,640
$
159,407
$
163,677
$
90,683
$
84,690
Net earnings per share:
Basic
$
4.92
$
4.49
$
4.60
$
2.54
$
2.35
Diluted
$
4.87
$
4.43
$
4.55
$
2.50
$
2.32
Shares used in per share
calculations:
Basic
35,117
35,538
35,586
35,741
36,102
Diluted
35,444
35,959
36,009
36,207
36,438
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INSIGHT ENTERPRISES, INC.
December 31,
2020
2019
2018
2017
2016
(in thousands)
Consolidated Balance Sheet Data
Working capital
$
948,986
$
1,164,504
$
801,915
$
804,369
$
544,943
Total assets
4,310,732
4,178,179
2,775,947
2,685,651
2,219,300
Short-term debt, including finance leases
and other financing obligations (4)
1,105
1,691
1,395
16,592
480
Long-term debt, including finance leases
and other financing obligations (4)
437,581
857,673
195,525
296,576
40,251
Stockholders’ equity
1,342,429
1,160,318
986,989
843,469
713,443
Cash dividends declared per common
share
—
—
—
—
—
(1) Our consolidated statements of operations data includes results of the following acquisitions from their respective dates of acquisition: vNext from February 28, 2020, PCM from August 30, 2019, Cardinal from August 1, 2018, Caase.com from September 26, 2017, Datalink from January 6, 2017, Ignia from September 1, 2016 and BlueMetal from October 1, 2015.
(2) Our consolidated statement of operations for 2020, 2019 and 2018 includes the impact of adopting ASU No. 2014-09, “Revenue from Contracts with Customers,” which created FASB Topic 606 (“Topic 606”).
(3) Our consolidated statements of operations for 2017 through 2020 include the impact of U.S federal tax reform that was enacted in December 2017 as part of the U.S Tax Cuts and Jobs Act. See Note 11 to the Consolidated Financial Statements in Part II, Item 8 of this report.
(4) Excludes obligations under our inventory financing facilities of $356.9 million, $253.7 million, $304.1 million, $319.5 million and $154.9 million as of December 31, 2020, 2019, 2018, 2017 and 2016, respectively. We do not include these obligations in total debt because we have not in the past incurred, and in the future do not expect to incur, any interest payments due under these facilities. These amounts are classified separately as accounts payable-inventory financing facilities on our consolidated balance sheets. See Note 7 to the Consolidated Financial Statements in Part II, Item 8 of this report.
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INSIGHT ENTERPRISES, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS