FREMONT, Calif., June 22,
2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading
business process services company, today announced financial
results for the fiscal second quarter ended May 31, 2017.
|
Q2
FY17
|
Q2
FY16
|
Net
change
|
Revenue
($M)
|
$3,936
|
$3,379
|
16.5%
|
Operating income
($M)
|
$125.1
|
$75.3
|
66.2%
|
Non-GAAP operating
income ($M)(1)
|
$141.2
|
$91.7
|
54.0%
|
Operating
margin
|
3.18%
|
2.23%
|
95 bps
|
Non-GAAP operating
margin(1)
|
3.59%
|
2.71%
|
88 bps
|
Net income
attributable to SYNNEX Corporation ($M)
|
$73.1
|
$44.4
|
64.9%
|
Non-GAAP net income
attributable to SYNNEX Corporation
($M)(1)
|
$83.2
|
$54.8
|
51.9%
|
Diluted
EPS
|
$1.83
|
$1.11
|
64.9%
|
Non-GAAP Diluted
EPS(1)
|
$2.08
|
$1.37
|
51.8%
|
|
(1) Non-GAAP
financial measures exclude the impact of acquisition-related and
integration expenses, restructuring costs, the amortization of
intangible assets and the related tax effects thereon. A
reconciliation of GAAP to Non-GAAP financial information is
presented in the supplementary information section at the end of
this press release.
|
"Our record Q2 results reflect solid execution by the SYNNEX
team," said Kevin Murai, President
and Chief Executive Officer, SYNNEX Corporation. "Both our
Technology Solutions and Concentrix business segments exceeded our
expectations in revenue and margin."
Fiscal 2017 Second Quarter Highlights:
- Technology Solutions: Revenue was $3.5 billion, up 13.5% from the prior fiscal year
quarter. Adjusting for the translation effect of foreign
currencies, the Technology Solutions business increased by 14.0%
compared with last year. Technology Solutions generated operating
income of $101.7 million, or 2.94% of
segment revenue, compared with $75.8
million, or 2.49% of segment revenue, in the fiscal second
quarter of 2016.
- Concentrix: Revenue was $481.7
million, an increase of 43.4% from the $335.9 million in revenue generated during the
second quarter of last year. Adjusting for the translation effect
of currencies, Concentrix revenue increased 44.6% compared with
last year. Operating income was $23.4
million, or 4.86% of Concentrix revenue, compared with an
operating loss of $0.6 million in the
prior fiscal year quarter. Non-GAAP operating income was
$38.8 million, or 8.06% of segment
revenue, for fiscal second quarter of 2017, compared with
$15.1 million, or 4.50% of segment
revenue, in the fiscal second quarter of 2016.
- The trailing fiscal four quarters Return on Invested Capital
("ROIC") was 11.0% compared with 9.4% in the prior year fiscal
second quarter. The adjusted trailing fiscal four quarters
ROIC was 12.0%.
- The debt to capitalization ratio was 33.9%, up from 27.3% in
the prior fiscal year second quarter.
- Depreciation and amortization were $19.4
million and $16.1 million,
respectively.
- Cash generated from operations was approximately $40 million for the quarter.
Fiscal 2017 Third Quarter Outlook:
The following statements are based on SYNNEX's current
expectations for the fiscal 2017 third quarter. Non-GAAP financial
measures exclude the impact of the amortization of intangibles and
the related tax effect thereon. These statements are
forward-looking and actual results may differ materially.
- Revenue is expected to be in the range of $3.90 billion to $4.10 billion.
- Net income is expected to be in the range of $67.7 million to $70.7 million and on a Non-GAAP
basis net income is expected to be in the range of $78.1 million to $81.1 million.
- Diluted earnings per share is expected to be in the range of
$1.68 to $1.76 and on a Non-GAAP
basis diluted earnings per share is expected to be in the range of
$1.94 to $2.02.
- After-tax amortization of intangibles is expected to be
$10.4 million, or $0.26 per share.
Share Repurchase Announcement
SYNNEX announced today that its Board of Directors has approved
an anti-dilution repurchase program of up to $300 million of its Common Stock over a period of
up to three years effective July 1,
2107. Any stock repurchases may be made through open market
and privately negotiated transactions, at times and in such amounts
as management deems appropriate, including pursuant to one or more
Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of
the Securities Exchange Act of 1934.
Dividend Announcement
SYNNEX announced today that its Board of Directors has declared
a quarterly cash dividend of $0.25
per common share. The dividend will be payable on July 28, 2017 to stockholders of record as of the
close of business on July 14,
2017.
Conference Call and Webcast
SYNNEX will be discussing its financial results and outlook on a
conference call today at 2:00 p.m.
(PT). A webcast of the call will be available at
http://ir.synnex.com. The conference call will also be available
via telephone by dialing (800) 369-1162 in North America or (415) 228-5007 outside North
America. The passcode for the call is "SNX." A replay of the
webcast will be available at
http://ir.synnex.com approximately two hours after the
conference call has concluded where it will be archived for one
year.
About SYNNEX Corporation
SYNNEX Corporation (NYSE:SNX) is a Fortune 500 corporation and a
leading business process services company, providing a
comprehensive range of distribution, logistics and integration
services for the technology industry and providing outsourced
services focused on customer engagement strategy to a broad range
of enterprises. SYNNEX distributes a broad range of
information technology systems and products, and also provides
systems design and integration solutions. Concentrix, a
wholly-owned subsidiary of SYNNEX Corporation, offers a portfolio
of strategic solutions and end-to-end business services around
customer engagement strategy, process optimization, technology
innovation, front and back-office automation and business
transformation to clients in ten identified industry verticals.
Founded in 1980, SYNNEX Corporation operates in numerous countries
throughout North and South
America, Asia-Pacific and
Europe. Additional information about SYNNEX may be found
online at www.synnex.com.
Use of Non-GAAP Financial Information
SYNNEX refers to growth rates at constant currency or adjusting
for the translation effect of foreign currencies so that certain
financial results can be viewed without the impact of fluctuations
in foreign currency exchange rates, thereby facilitating
period-to-period comparisons of the Company's business performance.
Financial results adjusted for currency are calculated by
translating current period activity in local currency using the
comparable prior year periods' currency conversion rate. Generally,
when the dollar either strengthens or weakens against other
currencies, the growth at constant currency rates or adjusting for
currency will be higher or lower than growth reported at actual
exchange rates.
To supplement the financial results presented in accordance with
GAAP, SYNNEX uses adjusted selling, general and administrative
expenses, non-GAAP operating income, non-GAAP operating margin,
adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA"), non-GAAP net income attributable
to SYNNEX Corporation, non-GAAP diluted earnings per share and
adjusted ROIC, which are non-GAAP financial measures that exclude
acquisition-related and integration expenses, restructuring costs,
the amortization of intangible assets and the related tax effects
thereon.
These non-GAAP financial measures provide investors with an
additional tool to evaluate operating results. Because these
non-GAAP financial measures are not calculated in accordance with
GAAP, they may not necessarily be comparable to similarly titled
measures employed by other companies. These non-GAAP financial
measures should not be considered in isolation or as a substitute
for the comparable GAAP measures, and should be read only in
conjunction with the Company's consolidated financial statements
prepared in accordance with GAAP.
SYNNEX management uses non-GAAP financial measures internally to
understand, manage and evaluate the business to establish
operational goals, and in some cases for measuring performance for
compensation purposes. SYNNEX management believes it is useful for
the Company and investors to review, as applicable, both GAAP
information and non-GAAP financial measures in order to assess the
performance of SYNNEX' continuing businesses and for planning and
forecasting in future periods. These non-GAAP measures are intended
to provide investors with an understanding of SYNNEX' operational
results and trends that more readily enable investors to analyze
SYNNEX' base financial and operating performance and to facilitate
period-to-period comparisons and analysis of operational trends.
The management of SYNNEX believes the non-GAAP financial measures
are useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision-making. A reconciliation of
SYNNEX' non-GAAP financial information to GAAP is set forth in the
supplemental information table at the end of this press
release.
Safe Harbor Statement
Statements in this news release regarding SYNNEX Corporation,
which are not historical facts, are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements may be identified by terms such as
believe, foresee, expect, may, will, provide, could and should and
the negative of these terms or other similar expressions. These
statements, including statements regarding SYNNEX' expectations and
outlook for the fiscal 2017 third quarter as to revenue, net
income, non-GAAP net income, diluted earnings per share, non-GAAP
diluted earnings per share, after-tax amortization of intangibles,
currency impact, the anticipated amount, duration, method timing
and other aspects of our stock repurchase program, the
frequency and occurrence of dividend declarations, and the
anticipated benefits of the non-GAAP financial measures, are
subject to risks and uncertainties that could cause actual results
to differ materially from those discussed in the forward-looking
statements. These risks and uncertainties include, but are not
limited to: general economic conditions and any weakness in
information technology and consumer electronics spending; the
timing of the close and estimated financial impact of the
Westcon-Comstor transaction; the loss or consolidation of one or
more of our significant original equipment manufacturer, or OEM,
suppliers or customers; market acceptance and product life of the
products we assemble and distribute; competitive conditions in our
industry and their impact on our margins; pricing, margin and other
terms with our OEM suppliers; our ability to gain market share;
variations in supplier-sponsored programs; changes in our costs and
operating expenses; changes in foreign currency exchange rates;
changes in tax laws; risks associated with our international
operations; uncertainties and variability in demand by our reseller
and integration customers; supply shortages or delays; any
termination or reduction in our floor plan financing arrangements;
credit exposure to our reseller customers and negative trends in
their businesses; any future incidents of theft; and other risks
and uncertainties detailed in our Form 10-K for the fiscal year
ended November 30, 2016 and subsequent SEC filings. Statements
included in this press release are based upon information known to
SYNNEX Corporation as of the date of this release, and SYNNEX
Corporation assumes no obligation to update information contained
in this press release.
Copyright 2017 SYNNEX Corporation. All rights reserved. SYNNEX,
the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product
and services names and slogans are trademarks or registered
trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo,
and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and
marks are the property of their respective owners.
SNX-F
SYNNEX
Corporation
|
Consolidated
Balance Sheets
|
(currency in
thousands)
|
(unaudited)
|
|
|
May 31,
2017
|
|
November 30,
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
305,566
|
|
|
$
|
380,717
|
|
Restricted
cash
|
4,127
|
|
|
6,265
|
|
Short-term
investments
|
5,287
|
|
|
5,109
|
|
Accounts receivable,
net
|
1,787,381
|
|
|
1,756,494
|
|
Receivable from
related parties
|
56
|
|
|
102
|
|
Inventories
|
2,112,590
|
|
|
1,741,734
|
|
Other current
assets
|
110,502
|
|
|
104,609
|
|
Total current
assets
|
4,325,509
|
|
|
3,995,030
|
|
Property and
equipment, net
|
320,950
|
|
|
312,716
|
|
Goodwill
|
485,627
|
|
|
486,239
|
|
Intangible assets,
net
|
266,532
|
|
|
298,550
|
|
Deferred tax
assets
|
60,394
|
|
|
58,564
|
|
Other
assets
|
69,910
|
|
|
64,182
|
|
Total
assets
|
$
|
5,528,922
|
|
|
$
|
5,215,281
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Borrowings,
current
|
$
|
510,717
|
|
|
$
|
362,889
|
|
Accounts
payable
|
1,686,977
|
|
|
1,683,155
|
|
Payable to related
parties
|
19,431
|
|
|
30,679
|
|
Accrued compensation
and benefits
|
152,486
|
|
|
165,585
|
|
Other accrued
liabilities
|
278,836
|
|
|
217,127
|
|
Income taxes
payable
|
16,796
|
|
|
17,097
|
|
Total current
liabilities
|
2,665,243
|
|
|
2,476,532
|
|
Long-term
borrowings
|
579,032
|
|
|
601,095
|
|
Other long-term
liabilities
|
109,321
|
|
|
103,217
|
|
Deferred tax
liabilities
|
59,116
|
|
|
58,639
|
|
Total
liabilities
|
3,412,712
|
|
|
3,239,483
|
|
SYNNEX Corporation
stockholders' equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
41
|
|
|
41
|
|
Additional paid-in
capital
|
452,812
|
|
|
440,713
|
|
Treasury
stock
|
(70,873)
|
|
|
(67,262)
|
|
Accumulated other
comprehensive income (loss)
|
(76,210)
|
|
|
(93,116)
|
|
Retained
earnings
|
1,810,440
|
|
|
1,695,400
|
|
Total SYNNEX
Corporation stockholders' equity
|
2,116,210
|
|
|
1,975,776
|
|
Noncontrolling
interest
|
—
|
|
|
22
|
|
Total
equity
|
2,116,210
|
|
|
1,975,798
|
|
Total liabilities and
equity
|
$
|
5,528,922
|
|
|
$
|
5,215,281
|
|
SYNNEX
Corporation
|
Consolidated
Statements of Operations
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2017
|
|
May 31,
2016
|
Revenue:
|
|
|
|
|
|
|
|
Products
|
$
|
3,458,243
|
|
|
$
|
3,047,638
|
|
|
$
|
6,504,864
|
|
|
$
|
5,832,475
|
|
Services
|
478,025
|
|
|
331,861
|
|
|
952,273
|
|
|
672,646
|
|
Total
revenue
|
3,936,268
|
|
|
3,379,499
|
|
|
7,457,137
|
|
|
6,505,121
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Products
|
(3,265,630)
|
|
|
(2,880,859)
|
|
|
(6,146,183)
|
|
|
(5,511,989)
|
|
Services
|
(298,393)
|
|
|
(204,610)
|
|
|
(596,926)
|
|
|
(414,910)
|
|
Gross
profit
|
372,245
|
|
|
294,030
|
|
|
714,028
|
|
|
578,222
|
|
Selling, general and
administrative expenses
|
(247,115)
|
|
|
(218,724)
|
|
|
(487,139)
|
|
|
(427,290)
|
|
Operating
income
|
125,130
|
|
|
75,306
|
|
|
226,889
|
|
|
150,932
|
|
Interest expense and
finance charges, net
|
(8,962)
|
|
|
(6,512)
|
|
|
(17,144)
|
|
|
(12,728)
|
|
Other income
(expense), net
|
(206)
|
|
|
949
|
|
|
(529)
|
|
|
4,983
|
|
Income before income
taxes
|
115,962
|
|
|
69,743
|
|
|
209,216
|
|
|
143,187
|
|
Provision for income
taxes
|
(42,814)
|
|
|
(25,386)
|
|
|
(74,279)
|
|
|
(52,193)
|
|
Net income
|
73,148
|
|
|
44,357
|
|
|
134,937
|
|
|
90,994
|
|
Net (income) loss
attributable to noncontrolling interest
|
—
|
|
|
5
|
|
|
—
|
|
|
(70)
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
73,148
|
|
|
$
|
44,362
|
|
|
$
|
134,937
|
|
|
$
|
90,924
|
|
Earnings per share
attributable to SYNNEX Corporation:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.83
|
|
|
$
|
1.12
|
|
|
$
|
3.38
|
|
|
$
|
2.29
|
|
Diluted
|
$
|
1.83
|
|
|
$
|
1.11
|
|
|
$
|
3.37
|
|
|
$
|
2.28
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
39,533
|
|
|
39,283
|
|
|
39,513
|
|
|
39,254
|
|
Diluted
|
39,711
|
|
|
39,477
|
|
|
39,708
|
|
|
39,470
|
|
Cash dividends
declared per share
|
$
|
0.25
|
|
|
$
|
0.20
|
|
|
$
|
0.50
|
|
|
$
|
0.40
|
|
SYNNEX
Corporation
|
Segment
Information
|
(currency in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2017
|
|
May 31,
2016
|
Revenue:
|
|
|
|
|
|
|
|
Technology
Solutions
|
$
|
3,458,320
|
|
|
$
|
3,047,708
|
|
|
$
|
6,505,016
|
|
|
$
|
5,832,615
|
|
Concentrix
|
481,679
|
|
|
335,925
|
|
|
959,843
|
|
|
680,617
|
|
Inter-segment
elimination
|
(3,731)
|
|
|
(4,134)
|
|
|
(7,722)
|
|
|
(8,111)
|
|
Consolidated
|
$
|
3,936,268
|
|
|
$
|
3,379,499
|
|
|
$
|
7,457,137
|
|
|
$
|
6,505,121
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
Technology
Solutions
|
$
|
101,705
|
|
|
$
|
75,815
|
|
|
$
|
182,126
|
|
|
$
|
143,486
|
|
Concentrix
|
23,425
|
|
|
(570)
|
|
|
44,741
|
|
|
7,291
|
|
Inter-segment
elimination
|
—
|
|
|
61
|
|
|
22
|
|
|
155
|
|
Consolidated
|
$
|
125,130
|
|
|
$
|
75,306
|
|
|
$
|
226,889
|
|
|
$
|
150,932
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2017
|
|
May 31,
2016
|
Revenue in
Constant Currency
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Revenue
|
$
|
3,936,268
|
|
|
$
|
3,379,499
|
|
|
$
|
7,457,137
|
|
|
$
|
6,505,121
|
|
Foreign currency
translation
|
19,169
|
|
|
|
|
166
|
|
|
|
Revenue in constant
currency
|
$
|
3,955,437
|
|
|
$
|
3,379,499
|
|
|
$
|
7,457,303
|
|
|
$
|
6,505,121
|
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
Revenue
|
$
|
3,458,320
|
|
|
$
|
3,047,708
|
|
|
$
|
6,505,016
|
|
|
$
|
5,832,615
|
|
Foreign currency
translation
|
15,054
|
|
|
|
|
(6,522)
|
|
|
|
Revenue in constant
currency
|
$
|
3,473,374
|
|
|
$
|
3,047,708
|
|
|
$
|
6,498,494
|
|
|
$
|
5,832,615
|
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
Revenue
|
$
|
481,679
|
|
|
$
|
335,925
|
|
|
$
|
959,843
|
|
|
$
|
680,617
|
|
Foreign currency
translation
|
4,115
|
|
|
|
|
6,688
|
|
|
|
Revenue in constant
currency
|
$
|
485,794
|
|
|
$
|
335,925
|
|
|
$
|
966,531
|
|
|
$
|
680,617
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2017
|
|
May 31,
2016
|
Selling, general
and administrative expenses
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
247,115
|
|
|
$
|
218,724
|
|
|
$
|
487,139
|
|
|
$
|
427,290
|
|
Acquisition-related
and integration expenses
|
—
|
|
|
568
|
|
|
611
|
|
|
1,570
|
|
Restructuring
costs
|
—
|
|
|
3,997
|
|
|
—
|
|
|
3,997
|
|
Amortization of
intangibles
|
15,649
|
|
|
11,362
|
|
|
31,716
|
|
|
22,750
|
|
Adjusted selling,
general and administrative expenses
|
$
|
231,466
|
|
|
$
|
202,797
|
|
|
$
|
454,812
|
|
|
$
|
398,973
|
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
90,983
|
|
|
$
|
91,034
|
|
|
$
|
176,705
|
|
|
$
|
177,140
|
|
Amortization of
intangibles
|
651
|
|
|
662
|
|
|
1,305
|
|
|
1,313
|
|
Adjusted selling,
general and administrative expenses
|
$
|
90,332
|
|
|
$
|
90,372
|
|
|
$
|
175,400
|
|
|
$
|
175,827
|
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
158,034
|
|
|
$
|
129,637
|
|
|
$
|
314,404
|
|
|
$
|
253,959
|
|
Acquisition-related
and integration expenses
|
—
|
|
|
568
|
|
|
611
|
|
|
1,570
|
|
Restructuring
costs
|
—
|
|
|
3,997
|
|
|
—
|
|
|
3,997
|
|
Amortization of
intangibles
|
14,998
|
|
|
10,700
|
|
|
30,411
|
|
|
21,437
|
|
Adjusted selling,
general and administrative expenses
|
$
|
143,036
|
|
|
$
|
114,372
|
|
|
$
|
283,382
|
|
|
$
|
226,955
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(continued)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2017
|
|
May 31,
2016
|
Operating income
and Operating margin
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Revenue
|
$
|
3,936,268
|
|
|
$
|
3,379,499
|
|
|
$
|
7,457,137
|
|
|
$
|
6,505,121
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
125,130
|
|
|
$
|
75,306
|
|
|
$
|
226,889
|
|
|
$
|
150,932
|
|
Acquisition-related
and integration expenses
|
—
|
|
|
568
|
|
|
611
|
|
|
1,570
|
|
Restructuring
costs
|
—
|
|
|
3,997
|
|
|
—
|
|
|
3,997
|
|
Amortization of
intangibles
|
16,069
|
|
|
11,794
|
|
|
32,556
|
|
|
23,498
|
|
Non-GAAP operating
income
|
$
|
141,199
|
|
|
$
|
91,665
|
|
|
$
|
260,056
|
|
|
$
|
179,997
|
|
Depreciation
|
19,413
|
|
|
16,700
|
|
|
38,873
|
|
|
31,174
|
|
Adjusted
EBITDA
|
$
|
160,612
|
|
|
$
|
108,365
|
|
|
$
|
298,929
|
|
|
$
|
211,171
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
3.18
|
%
|
|
2.23
|
%
|
|
3.04
|
%
|
|
2.32
|
%
|
Non-GAAP operating
margin
|
3.59
|
%
|
|
2.71
|
%
|
|
3.49
|
%
|
|
2.77
|
%
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
Revenue
|
$
|
3,458,320
|
|
|
$
|
3,047,708
|
|
|
$
|
6,505,016
|
|
|
$
|
5,832,615
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
101,705
|
|
|
$
|
75,815
|
|
|
$
|
182,126
|
|
|
$
|
143,486
|
|
Amortization of
intangibles
|
651
|
|
|
662
|
|
|
1,305
|
|
|
1,313
|
|
Non-GAAP operating
income
|
$
|
102,356
|
|
|
$
|
76,477
|
|
|
$
|
183,431
|
|
|
$
|
144,799
|
|
Depreciation
|
3,402
|
|
|
3,575
|
|
|
6,878
|
|
|
6,888
|
|
Adjusted
EBITDA
|
$
|
105,758
|
|
|
$
|
80,052
|
|
|
$
|
190,309
|
|
|
$
|
151,687
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
2.94
|
%
|
|
2.49
|
%
|
|
2.80
|
%
|
|
2.46
|
%
|
Non-GAAP operating
margin
|
2.96
|
%
|
|
2.51
|
%
|
|
2.82
|
%
|
|
2.48
|
%
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
Revenue
|
$
|
481,679
|
|
|
$
|
335,925
|
|
|
$
|
959,843
|
|
|
$
|
680,617
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
|
23,425
|
|
|
$
|
(570)
|
|
|
$
|
44,741
|
|
|
$
|
7,291
|
|
Acquisition-related
and integration expenses
|
—
|
|
|
568
|
|
|
611
|
|
|
1,570
|
|
Restructuring
costs
|
—
|
|
|
3,997
|
|
|
—
|
|
|
3,997
|
|
Amortization of
intangibles
|
15,418
|
|
|
11,132
|
|
|
31,251
|
|
|
22,185
|
|
Non-GAAP operating
income
|
$
|
38,843
|
|
|
$
|
15,127
|
|
|
$
|
76,603
|
|
|
$
|
35,043
|
|
Depreciation
|
16,011
|
|
|
13,185
|
|
|
32,018
|
|
|
24,440
|
|
Adjusted
EBITDA
|
$
|
54,854
|
|
|
$
|
28,312
|
|
|
$
|
108,621
|
|
|
$
|
59,483
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
4.86
|
%
|
|
(0.17)
|
%
|
|
4.66
|
%
|
|
1.07
|
%
|
Non-GAAP operating
margin
|
8.06
|
%
|
|
4.50
|
%
|
|
7.98
|
%
|
|
5.15
|
%
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(continued)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2017
|
|
May 31,
2016
|
Net
income
|
|
|
|
|
|
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
73,148
|
|
|
$
|
44,362
|
|
|
$
|
134,937
|
|
|
$
|
90,924
|
|
Acquisition-related
and integration expenses
|
—
|
|
|
568
|
|
|
611
|
|
|
1,570
|
|
Restructuring
costs
|
—
|
|
|
3,997
|
|
|
—
|
|
|
3,997
|
|
Amortization of
intangibles
|
16,069
|
|
|
11,794
|
|
|
32,556
|
|
|
23,498
|
|
Income taxes related
to the above(1)
|
(6,006)
|
|
|
(5,956)
|
|
|
(11,775)
|
|
|
(10,594)
|
|
Non-GAAP net income
attributable to SYNNEX Corporation
|
$
|
83,211
|
|
|
$
|
54,765
|
|
|
$
|
156,329
|
|
|
$
|
109,395
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share ("EPS")(2)
|
|
|
|
|
|
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
73,148
|
|
|
$
|
44,362
|
|
|
$
|
134,937
|
|
|
$
|
90,924
|
|
Less: net income
allocated to participating securities
|
(672)
|
|
|
(466)
|
|
|
(1,250)
|
|
|
(965)
|
|
Net income
attributable to SYNNEX Corporation common stockholders
|
72,476
|
|
|
43,896
|
|
|
133,687
|
|
|
89,959
|
|
Acquisition-related
and integration expenses attributable to SYNNEX
Corporation common stockholders
|
—
|
|
|
564
|
|
|
605
|
|
|
1,557
|
|
Restructuring costs
attributable to SYNNEX Corporation common stockholders
|
—
|
|
|
3,957
|
|
|
—
|
|
|
3,959
|
|
Amortization of
intangibles attributable to SYNNEX Corporation common
stockholders
|
15,921
|
|
|
11,665
|
|
|
32,254
|
|
|
23,236
|
|
Income taxes related
to the above attributable to SYNNEX Corporation common
stockholders(1)
|
(5,949)
|
|
|
(5,892)
|
|
|
(11,664)
|
|
|
(10,477)
|
|
Non-GAAP net income
attributable to SYNNEX Corporation common stockholders
|
$
|
82,448
|
|
|
$
|
54,190
|
|
|
$
|
154,882
|
|
|
$
|
108,234
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares - diluted:
|
39,711
|
|
|
39,477
|
|
|
39,708
|
|
|
39,470
|
|
|
|
|
|
|
|
|
|
Diluted
EPS(2)
|
$
|
1.83
|
|
|
$
|
1.11
|
|
|
$
|
3.37
|
|
|
$
|
2.28
|
|
Acquisition-related
and integration expenses
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
0.04
|
|
Restructuring
costs
|
—
|
|
|
0.10
|
|
|
—
|
|
|
0.10
|
|
Amortization of
intangibles
|
0.40
|
|
|
0.30
|
|
|
0.81
|
|
|
0.59
|
|
Income taxes related
to the above(1)
|
(0.15)
|
|
|
(0.15)
|
|
|
(0.29)
|
|
|
(0.27)
|
|
Non-GAAP Diluted
EPS(3)
|
$
|
2.08
|
|
|
$
|
1.37
|
|
|
$
|
3.90
|
|
|
$
|
2.74
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(amounts in
millions, except for per share amounts)
|
(continued)
|
|
|
Forecast
|
|
Three Months
Ending August 31, 2017
|
|
Low
|
|
High
|
Net
income
|
|
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
67.7
|
|
|
$
|
70.7
|
|
Amortization of
intangibles
|
16.1
|
|
|
16.1
|
|
Income taxes related
to the above(1)
|
(5.7)
|
|
|
(5.7)
|
|
Non-GAAP net income
attributable to SYNNEX Corporation
|
$
|
78.1
|
|
|
$
|
81.1
|
|
|
|
|
|
Diluted
EPS(2)
|
$
|
1.68
|
|
|
$
|
1.76
|
|
Amortization of
intangibles
|
0.40
|
|
|
0.40
|
|
Income taxes related
to the above(1)
|
(0.14)
|
|
|
(0.14)
|
|
Non-GAAP Diluted
EPS(3)
|
$
|
1.94
|
|
|
$
|
2.02
|
|
(1)
|
The tax effect of the
non-GAAP adjustments was calculated using the effective
year-to-date tax rate during the respective periods.
|
|
|
(2)
|
Diluted EPS for all
periods presented is calculated using the two-class
method. Unvested restricted stock awards granted to employees
and non-employee directors are considered participating
securities. For purposes of calculating Diluted EPS, Net
income allocated to participating securities was approximately 0.9%
of the Net income attributable to SYNNEX Corporation for both the
three and six months ended May 31, 2017, and 1.0% and 1.1% for
the three and six months ended May 31, 2016, respectively. Net
income allocated to participating securities is approximately 0.9%
of the Net income attributable to SYNNEX Corporation for the three
months ending August 31, 2017.
|
|
|
(3)
|
The sum of the
components of Non-GAAP Diluted EPS may not agree to totals, as
presented, due to rounding.
|
SYNNEX
Corporation
|
Calculation of
Financial Metrics
|
(currency in
thousands)
|
Return on Invested
Capital ("ROIC")
|
|
|
May 31,
2017
|
|
May 31,
2016
|
ROIC
|
|
|
|
Operating income
(Trailing fiscal four quarters)
|
$
|
455,553
|
|
|
$
|
337,176
|
|
Income taxes on
operating income(1)
|
(154,573)
|
|
|
(122,175)
|
|
Operating income
after taxes
|
$
|
300,980
|
|
|
$
|
215,001
|
|
|
|
|
|
Total borrowings,
excluding book overdraft (last five quarters average)
|
$
|
913,007
|
|
|
$
|
722,294
|
|
Total equity (last
five quarters average)
|
1,986,402
|
|
|
1,794,895
|
|
Less: U.S. cash and
cash equivalents (last five quarters average)
|
(161,559)
|
|
|
(224,869)
|
|
Total invested
capital
|
$
|
2,737,850
|
|
|
$
|
2,292,320
|
|
|
|
|
|
ROIC
|
11.0
|
%
|
|
9.4
|
%
|
|
|
|
|
Adjusted
ROIC
|
|
|
|
Non-GAAP operating
income (Trailing fiscal four quarters)
|
$
|
529,790
|
|
|
$
|
397,019
|
|
Income taxes on
Non-GAAP operating income(1)
|
(179,555)
|
|
|
(143,856)
|
|
Non-GAAP operating
income after taxes
|
$
|
350,235
|
|
|
$
|
253,163
|
|
|
|
|
|
Total invested
capital
|
$
|
2,737,850
|
|
|
$
|
2,292,320
|
|
Tax effected impact
of cumulative non-GAAP adjustments (last five quarters
average)
|
182,015
|
|
|
137,720
|
|
Total Non-GAAP
invested capital
|
$
|
2,919,865
|
|
|
$
|
2,430,040
|
|
|
|
|
|
Adjusted
ROIC
|
12.0
|
%
|
|
10.4
|
%
|
|
(1) Income
taxes on operating income was calculated using the effective
year-to-date tax rates during the respective periods.
|
Debt to
Capitalization
|
|
|
|
May 31,
2017
|
|
May 31,
2016
|
Total borrowings,
excluding book overdraft
|
(a)
|
$
|
1,087,703
|
|
|
$
|
704,219
|
|
Total
equity
|
(b)
|
2,116,210
|
|
|
1,875,001
|
|
Debt to
capitalization
|
(a)/((a)+(b))
|
33.9
|
%
|
|
27.3
|
%
|
SYNNEX
Corporation
|
Calculation of
Financial Metrics
|
(currency in
thousands)
|
(continued)
|
|
Cash Conversion
Cycle
|
|
|
|
Three Months
Ended
|
|
|
May 31,
2017
|
|
May 31,
2016
|
Days sales
outstanding
|
|
|
|
|
Revenue (products and
services)
|
(a)
|
$
|
3,936,268
|
|
|
$
|
3,379,499
|
|
Accounts receivable,
including receivable from related parties
|
(b)
|
1,787,437
|
|
|
1,512,760
|
|
Days sales
outstanding
|
(b)/((a)/the number
of days during the period)
|
42
|
|
|
41
|
|
|
|
|
|
|
Days inventory
outstanding
|
|
|
|
|
Cost of revenue
(products and services)
|
(c)
|
$
|
3,564,023
|
|
|
$
|
3,085,469
|
|
Inventories
|
(d)
|
2,112,590
|
|
|
1,378,055
|
|
Days inventory
outstanding
|
(d)/((c)/the number
of days during the period)
|
55
|
|
|
41
|
|
|
|
|
|
|
Days payable
outstanding
|
|
|
|
|
Cost of revenue
(products and services)
|
(c)
|
$
|
3,564,023
|
|
|
$
|
3,085,469
|
|
Accounts payable,
including payable to related parties
|
(e)
|
1,706,408
|
|
|
1,389,600
|
|
Days payable
outstanding
|
(e)/((c)/the number
of days during the period)
|
44
|
|
|
41
|
|
|
|
|
|
|
Cash conversion
cycle
|
|
53
|
|
|
41
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2017-second-quarter-results-300478612.html
SOURCE SYNNEX Corporation