SCSC ScanSource Inc

ScanSource, Inc. (NASDAQ:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced complete financial results for its fourth quarter and fiscal year ended June 30, 2009.

Quarter Ended June 30, 2009:

 

Fiscal Year Ended June 30, 2009:

 

Net sales

 

$441 million

Net sales

 

$1,848 million

Net income

$12.5 million

Net income

$47.7 million

Diluted EPS

$0.47 per share

Diluted EPS

$1.79 per share

“In our fourth quarter, we had excellent results in certain areas of our business, specifically our Security and Communications sales units,” said Mike Baur, CEO, ScanSource, Inc. “Overall, we are pleased with our North American sales results, which are improving. And while our International business remains flat, we continue to be cautiously optimistic.”

For the quarter ended June 30, 2009, net sales decreased 20.4% to $441 million compared to $554 million for the quarter ended June 30, 2008. Quarterly operating income also decreased 17.4% to $20.0 million from $24.2 million for the comparable prior year quarter. Net income decreased 13.6% to $12.5 million for the quarter ended June 30, 2009 versus $14.5 million for the quarter ended June 30, 2008. The effective tax rate for the quarter was 37.4%, compared to 39.0% for the prior year quarter. Diluted earnings per share decreased 13.0% to $0.47 compared to $0.54 in the prior year quarter.

For the year ended June 30, 2009, net sales decreased 15.1% to $1.85 billion, compared to $2.18 billion for the prior year ended June 30, 2008. Fiscal year operating income also decreased 21.1% to $74.1 million from $94.0 million for the comparable prior fiscal year. Net income decreased 14.3% to $47.7 million compared to $55.6 million for the prior fiscal year ended June 30, 2008. The effective tax rate for the year was 37.0% compared to 38.3% for the prior fiscal year. Diluted earnings per share decreased 14.8% to $1.79 compared to $2.10 in the prior year.

Forecast for Next Quarter

The Company announced its revenue forecast for the first quarter of fiscal 2010. ScanSource expects net revenues for the September 2009 quarter could range from $445 million to $465 million.

Safe Harbor Statement

This press release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results including but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2008 filed with, and the Company’s annual report on Form 10-K for the year ended June 30, 2009 to be filed with, the Securities and Exchange Commission.

About ScanSource

ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #854 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

  SCANSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands)   June 30, June 30, 2009 2008* Assets Current assets: Cash and cash equivalents $ 127,664 $ 15,224 Trade & notes receivable 291,037 360,154 Other receivables 7,676 8,052 Inventories 216,829 280,077 Prepaid expenses and other assets 5,486 5,556 Deferred income taxes   8,735   11,428 Total current assets 657,427 680,491   Property and equipment, net 21,035 22,420 Goodwill 34,087 36,121 Other assets, including identifiable intangible assets   36,082   33,174 Total assets $ 748,631 $ 772,206   Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt $ - $ - Short-term borrowings - 7,649 Trade accounts payable 228,408 265,284 Accrued expenses and other liabilities 30,443 34,337 Income taxes payable   3,799   4,585 Total current liabilities 262,650 311,855   Deferred income taxes - - Long-term debt 30,429 29,576 Borrowings under revolving credit facility - 27,047 Other long-term liabilities   10,106   7,975 Total liabilities   303,185   376,453   Shareholder's equity: Common stock 104,461 96,097 Retained earnings 337,822 290,134 Accumulated other comprehensive income   3,163   9,522 Total shareholders' equity   445,446   395,753 Total liabilities and shareholders' equity $ 748,631 $ 772,206  

* Derived from audited financial statements at June 30, 2008.

SCANSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED) (In thousands, except per share information)         Quarter ended Fiscal year ended June 30, June 30,   2009     2008     2009     2008     Net sales $ 441,236 $ 554,030 $ 1,847,969 $ 2,175,485 Cost of goods sold   387,753     495,432     1,639,121     1,947,867   Gross profit   53,483     58,598     208,848     227,618     Operating expenses: Selling, general and administrative expenses   33,505     34,415     134,730     133,653   Operating income 19,978 24,183 74,118 93,965   Other expense (income): Interest expense 366 974 2,176 5,471 Interest income (286 ) (404 ) (1,405 ) (1,512 ) Other, net   (78 )   (93 )   (2,307 )   (212 ) Other expense (income)   2     477     (1,536 )   3,747   Income before income taxes 19,976 23,706 75,654 90,218 Provision for income taxes   7,473     9,239     27,966     34,586   Net income $ 12,503   $ 14,467   $ 47,688   $ 55,632     Per share data: Net income per common share, basic $ 0.47   $ 0.55   $ 1.80   $ 2.13   Weighted-average shares outstanding, basic   26,542     26,307     26,445     26,098     Net income per common share, diluted $ 0.47   $ 0.54   $ 1.79   $ 2.10   Weighted-average shares outstanding, diluted   26,704     26,549     26,588     26,445