Profitability for the Quarter Exceeds
Expectations
ScanSource, Inc. (NASDAQ:SCSC), a leading global provider of
technology products and solutions, today announced financial
results for fiscal year 2016 first quarter ended September 30,
2015.
Quarter ended September 30, 2015
2014 Change (in millions, except per
share data) Net sales $ 870.8 $ 791.7 10 %
Operating income 24.4 29.0 (16 )%
Non-GAAP
operating income(1) 28.4 31.8 (11 )%
GAAP net
income 16.0 19.2 (17 )%
Non-GAAP net
income(1) 18.9 21.6 (12 )%
GAAP diluted
EPS $ 0.57 $ 0.67 (15 )%
Non-GAAP diluted
EPS(1) $ 0.68 $ 0.75 (9 )%
(1) A reconciliation of non-GAAP financial information to GAAP
financial information is presented in the following Supplementary
Information (Unaudited) table.
Net sales for the quarter ended September 30, 2015 totaled
$870.8 million, a 10% increase over net sales of $791.7 million for
the quarter ended September 30, 2014. Net sales increased 15%
year-over-year in constant currency. The increase in net sales
includes a full quarter of results from the acquisitions of Imago
and Network1 and approximately a month of results from the
acquisition of KBZ.
"We completed our first fiscal quarter with profitability ahead
of our expectations in a quarter where we executed well on our
strategic initiatives,” said Mike Baur, CEO, ScanSource, Inc. “We
implemented our SAP ERP in North America with minimal disruption to
our customers and vendors due to the tireless dedication of our
employees. Our three acquisitions during the past year, Imago,
Network1, and KBZ, contributed positively to our growth and strong
operating performance.”
Operating income for the quarter ended September 30, 2015
totaled $24.4 million, compared with $29.0 million in the prior
year quarter. Non-GAAP operating income for the quarter ended
September 30, 2015 of $28.4 million decreased from $31.8
million in the prior year quarter.
On a GAAP basis, net income for the quarter ended
September 30, 2015 totaled $16.0 million, or $0.57 per diluted
share, compared with net income of $19.2 million, or $0.67 per
diluted share, for the prior year quarter. Non-GAAP net income for
the quarter ended September 30, 2015 totaled $18.9 million, or
$0.68 per diluted share, compared with $21.6 million, or $0.75 per
diluted share in the prior year quarter. Average diluted shares for
first quarter 2016 totaled 27.9 million, down 3% from 28.8 million
shares for the prior year quarter.
Completion of the Acquisition of KBZ
On September 4, 2015, ScanSource completed its acquisition of
KBZ, an award-winning Cisco Authorized Distributor specializing in
video conferencing, services, and cloud. Founded in 1987 and based
in Doylestown, Pennsylvania, KBZ operates in the United States and
has approximately 75 employees. ScanSource's first quarter results
included KBZ from the September 4, 2015 acquisition date.
Share Repurchase Update
Under the Company's $120 million share repurchase authorization
through September 30, 2015, the Company has repurchased
approximately 1.6 million shares for approximately $61 million,
having executed over 50% of the total authorization. During the
quarter ended September 30, 2015, the Company repurchased
approximately 1.15 million shares for approximately $42
million.
Forecast for Next Quarter
The Company announced its current expectations for the second
quarter of fiscal year 2016. ScanSource expects net sales for the
quarter ending December 31, 2015 to range from $900 million to $980
million and non-GAAP diluted earnings per share to range from $0.72
to $0.80 per share. Non-GAAP diluted earnings per share exclude
amortization of intangibles, change in fair value of contingent
consideration and acquisition costs.
Webcast Details
ScanSource will present additional information about its
financial results and outlook in a conference call with
presentation slides today, October 29, 2015 at 5:00 p.m. (ET).
A webcast of the call and accompanying presentation slides will be
available for all interested parties and can be accessed at
www.scansource.com (Investor Relations section). The webcast will
be available for replay for 60 days.
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 or
forecasted results, including, but not limited to, utilization and
further implementation of the Company's new ERP system; risks in
connection with our growth which includes strategic acquisitions;
expanded international operations that expose the Company to
greater risks than its operations in domestic markets; risks
associated with consolidation of the Company's vendors; risks in
connection with compliance with laws and regulations governing the
Company's international business; macroeconomic circumstances that
could impact the business, such as currency fluctuations, credit
market conditions, and an economic downturn; the ability to
forecast volatility in earnings resulting from the quarterly
revaluation of the Company's earnout obligations; the timing and
amount of any share repurchases; the exercise of discretion by the
Company to make any repurchase or continue the share repurchase
authorization; and changes to the source of funds for any
repurchases. 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,
2015, filed with the Securities and Exchange Commission. Except as
may be required by law, the Company expressly disclaims any
obligation to update these forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events.
Non-GAAP Financial Information
In addition to disclosing results that are determined in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), the Company also discloses certain non-GAAP
financial measures, which are summarized below. Non-GAAP financial
measures are used to better understand and evaluate performance,
including comparisons from period to period. Non-GAAP results
exclude amortization of intangible assets related to acquisitions
and change in fair value of contingent consideration.
Net sales on a constant currency basis: The Company discusses
the percentage change in net sales excluding the translation impact
from changes in foreign currency exchange rates between reporting
periods. This measure enhances comparability between periods to
help analyze underlying trends.
Non-GAAP operating income, non-GAAP net income and non-GAAP EPS:
To evaluate current period performance on a clearer and more
consistent basis with prior periods, the Company discloses non-GAAP
operating income, non-GAAP net income and non-GAAP diluted earnings
per share. Non-GAAP results exclude amortization of intangible
assets related to acquisitions, change in the fair value of
contingent consideration, and other non-GAAP adjustments. Non-GAAP
operating income, non-GAAP net income, and non-GAAP EPS measures
are useful in better assessing and understanding the Company's
operating performance, especially when comparing results with
previous periods or forecasting performance for future periods.
Return on invested capital ("ROIC"): Management uses ROIC as a
performance measurement to assess efficiency in allocating capital
under the Company's control to generate returns. Management
believes this metric balances the Company's operating results with
asset and liability management, is not impacted by capitalization
decisions and is considered to have a strong correlation with
shareholder value creation. In addition, it is easily computed,
communicated and understood. ROIC also provides management a
measure of the Company's profitability on a basis more comparable
to historical or future periods.
ROIC assists management in comparing the Company's performance
over various reporting periods on a consistent basis because it
removes from operating results the impact of items that do not
reflect core operating performance. Adjusted earnings before
interest expense, income taxes, depreciation and amortization
("EBITDA") excludes the change in fair value of contingent
consideration, in addition to other non-GAAP adjustments.
Management believes the calculation of ROIC provides useful
information to investors and is an additional relevant comparison
of the Company's performance during the year. In addition, the
Company's Board of Directors uses ROIC in evaluating business and
management performance. Certain management incentive compensation
targets are set and measured relative to ROIC.
These non-GAAP financial measures have limitations as analytical
tools, and the non-GAAP financial measures that the Company reports
may not be comparable to similarly titled amounts reported by other
companies. Analysis of results and outlook on a non-GAAP basis
should be considered in addition to, and not in substitution for or
as superior to, measurements of financial performance prepared in
accordance with GAAP. A reconciliation of the Company's non-GAAP
financial information to GAAP is set forth in the following
Supplementary Information (Unaudited) tables.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is a leading global provider of
technology products and solutions, focusing on point-of-sale (POS),
barcode, physical security, video, voice, and data networking.
ScanSource's teams provide value-added solutions and operate from
two technology segments, Worldwide Barcode & Security and
Worldwide Communications & Services. ScanSource is committed to
helping its reseller customers choose, configure and deliver the
industry's best products across almost every vertical market in
North America, Latin America and Europe. Founded in 1992, the
Company is headquartered in Greenville, South Carolina and was
named one of the 2015 Best Places to Work in South Carolina.
ScanSource ranks #775 on the Fortune 1000. For more information,
visit www.scansource.com.
ScanSource, Inc. and Subsidiaries Condensed Consolidated
Balance Sheets (Unaudited) (in thousands)
September 30, 2015
June 30, 2015*
Assets Current assets: Cash and cash equivalents $ 41,239 $
121,646
Accounts receivable, less allowance of
$31,149 at September 30, 2015
588,008 522,532 and $32,589 at June 30, 2015 Inventories 588,195
553,063 Prepaid expenses and other current assets 69,602 46,917
Deferred income taxes 19,787 20,556 Total current
assets 1,306,831 1,264,714 Property and equipment, net 45,461
46,574 Goodwill 83,251 66,509 Net identifiable intangible assets
57,459 46,272 Other non-current assets 50,265 52,872
Total assets $ 1,543,267 $ 1,476,941
Liabilities and Shareholders' Equity Current liabilities:
Current debt $ 1,700 $ 2,860 Accounts payable 516,146 501,329
Accrued expenses and other current liabilities 87,747 81,000
Current portion of contingent consideration 15,456 9,391 Income
taxes payable 11,190 4,180 Total current liabilities
632,239 598,760 Deferred income taxes 3,559 3,773 Long-term debt
5,769 5,966 Borrowings under revolving credit facility 87,000 —
Long-term portion of contingent consideration 13,601 24,569 Other
long-term liabilities 36,406 34,888 Total liabilities
778,574 667,956 Shareholders' equity: Common stock 116,849 157,172
Retained earnings 732,311 716,315 Accumulated other comprehensive
income (loss) (84,467 ) (64,502 ) Total shareholders' equity
764,693 808,985 Total liabilities and shareholders'
equity $ 1,543,267 $ 1,476,941 * Derived from audited
financial statements.
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited) (in
thousands, except per share data)
Quarter ended September 30, 2015 2014
Net sales $ 870,829 $ 791,720 Cost of goods sold 783,277
714,075 Gross profit 87,552 77,645 Selling, general and
administrative expenses 61,547 48,155 Change in fair value of
contingent consideration 1,564 513 Operating income
24,441 28,977 Interest expense 281 190 Interest income (942 ) (835
) Other, net 680 386 Income before income taxes
24,422 29,236 Provision for income taxes 8,426 10,028
Net income $ 15,996 $ 19,208 Per share data: Net
income per common share, basic $ 0.58 $ 0.67
Weighted-average shares outstanding, basic 27,702 28,544
Net income per common share, diluted $ 0.57 $
0.67 Weighted-average shares outstanding, diluted 27,929
28,794
ScanSource, Inc. and
Subsidiaries Supplementary Information (Unaudited)
(in thousands) Net Sales by Segment:
Quarter ended
September 30,
Non-GAAP % Change 2015 2014 %
Change Constant Currency(a) Worldwide Barcode
& Security $ 515,669 $ 500,960 2.9 % 9.8 % Worldwide
Communications & Services 355,160 290,760 22.1 %
23.1 % Consolidated $ 870,829 $ 791,720 10.0 % 14.7 %
Net Sales by
Geography: Quarter ended
September 30,
Non-GAAP % Change 2015 2014 % Change
Constant Currency(b) North American (U.S. and Canada)
$ 641,931 $ 595,791 7.7 % 7.7 % International 228,898
195,929 16.8 % 35.8 % Consolidated $ 870,829 $
791,720 10.0 % 14.7 % Notes: (a)
Year-over-year net sales growth rate excluding the translation
impact of changes in foreign currency exchange rates. Calculated by
translating the net sales for the quarter ended September 30, 2015
into U.S. dollars using the weighted average foreign exchange rates
for the quarter ended September 30, 2014. Worldwide Barcode &
Security net sales excluding the translation impact of foreign
currencies for the quarter ended September 30, 2015, as adjusted,
totaled $549.9 million. Worldwide Communications & Services net
sales excluding the translation impact of foreign currencies for
the quarter ended September 30, 2015, as adjusted, totaled $358
million. (b) Year-over-year net sales growth rate excluding the
translation impact of changes in foreign currency exchange rates.
Calculated by translating the net sales for the quarter ended
September 30, 2015 into U.S. dollars using the weighted average
foreign exchange rates for the quarter ended September 30, 2014.
International net sales excluding the translation impact of foreign
currencies for the quarter ended September 30, 2015 totaled $266
million.
ScanSource, Inc. and
Subsidiaries Supplementary Information (Unaudited)
(in thousands) Non-GAAP Financial Information:
Quarter ended September 30, 2015 Operating income
Pre-tax income Net income Diluted EPS GAAP
measure $ 24,441 $ 24,422 $ 15,996 $ 0.57 Adjustments: Amortization
of intangible assets 2,185 2,185 1,597 0.06 Change in fair value of
contingent consideration 1,564 1,564 1,080 0.04 Acquisition costs
(a) 220 220 220 0.01 Non-GAAP measure $ 28,410
$ 28,391 $ 18,893 $ 0.68
Quarter
ended September 30, 2014 Operating income Pre-tax
income Net income Diluted EPS GAAP measure $
28,977 $ 29,236 $ 19,208 $ 0.67 Adjustments: Amortization of
intangible assets 992 992 660 0.02 Change in fair value of
contingent consideration 513 513 341 0.01 Acquisition costs (a)
1,350 1,350 1,350 0.05 Non-GAAP measure $
31,832 $ 32,091 $ 21,559 $ 0.75 (a)
Acquisition costs are non-deductible for tax purposes.
ScanSource, Inc. and Subsidiaries Supplementary
Information (Unaudited) (in thousands)
Non-GAAP Financial Information: Quarter ended
September 30,
2015 2014 Return on invested capital (ROIC),
annualized (a) 14.6 % 16.2 %
Reconciliation of
Net Income to Adjusted EBITDA
Net income - GAAP $ 15,996 $ 19,208 Plus: Income taxes 8,426 10,028
Plus: Interest expense 281 190 Plus: Depreciation and amortization
3,938 1,897 EBITDA 28,641 31,323 Adjustments: Change
in fair value of contingent consideration 1,564 513 Acquisition
costs 220 1,350 Adjusted EBITDA (numerator for ROIC)
(non-GAAP) $ 30,425 $ 33,186
Invested Capital
Calculation
Equity - beginning of quarter/year $ 808,985 $ 802,643 Equity - end
of quarter/year 764,693 810,265 Adjustments: Change in fair value
of contingent consideration, net of tax 1,080 341 Acquisition
costs, net of tax 220 1,350 Average equity 787,489
807,300 Average funded debt (b) 39,124 6,205 Invested
capital (denominator for ROIC) (non-GAAP) $ 826,613 $
813,505 Notes: (a) Calculated as net
income plus interest expense, income taxes, depreciation and
amortization (EBITDA), plus change in fair value of contingent
consideration and other adjustments, annualized and divided by
invested capital for the period. Invested capital is defined as
average equity plus average daily funded interest-bearing debt for
the period. (b) Average funded debt is calculated as the average
daily amounts outstanding on short-term and long-term
interest-bearing debt.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151029006642/en/
ScanSource, Inc.Charles A. MathisExecutive Vice President and
Chief Financial Officer864-286-4975orMary M. GentryVice President,
Treasurer and Investor Relations864-286-4892
ScanSource (NASDAQ:SCSC)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
ScanSource (NASDAQ:SCSC)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024