CLEARWATER, Fla., Aug. 31, 2017 /PRNewswire/ -- Tech Data (NASDAQ:
TECD) (the "Company") today announced its financial results for the
second quarter ended July 31,
2017.
|
Second
quarter ended July 31,
|
Six months ended
July 31,
|
($ in
millions, except
per share amounts)
|
2017
|
2016
|
Y/Y
Change
|
2017
|
2016
|
Y/Y
Change
|
Net
Sales
|
$8,882.7
|
$6,353.7
|
40%
|
$16,546.8
|
$12,317.1
|
34%
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
$103.5
|
$73.4
|
41%
|
$178.6
|
$125.9
|
42%
|
Operating margin
(GAAP)
|
1.17%
|
1.15%
|
2 bps
|
1.08%
|
1.02%
|
6 bps
|
|
|
|
|
|
|
|
Operating income
(Non-GAAP)
|
$127.8
|
$78.1
|
64%
|
$251.1
|
$135.7
|
85%
|
Operating margin
(Non-GAAP)
|
1.44%
|
1.23%
|
21 bps
|
1.52%
|
1.10%
|
42 bps
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$47.5
|
$46.4
|
2%
|
$78.1
|
$79.8
|
-2%
|
Net income
(Non-GAAP)
|
$66.7
|
$50.3
|
33%
|
$136.8
|
$87.3
|
57%
|
|
|
|
|
|
|
|
EPS - diluted
(GAAP)
|
$1.24
|
$1.31
|
-5%
|
$2.06
|
$2.26
|
-9%
|
EPS - diluted
(Non-GAAP)
|
$1.74
|
$1.42
|
23%
|
$3.61
|
$2.47
|
46%
|
|
A reconciliation of
GAAP to non-GAAP financial measures is presented in the financial
tables of this press release. This information is also available on the Investor
Relations section of Tech Data's website at
www.techdata.com/investor.
|
Financial Highlights for the Second Quarter Ended
July 31, 2017:
- Net sales were $8.9 billion, an
increase of 40 percent compared to the prior-year quarter. The
increase in net sales is primarily due to the addition of the
Technology Solutions business acquired from Avnet, Inc. on
February 27, 2017 ("Technology
Solutions"). On a constant currency basis, net sales increased 41
percent.
- Americas: Net sales were $4.2
billion (47 percent of worldwide net sales), an increase of
57 percent compared to the prior-year quarter. The increase in net
sales is primarily attributed to the addition of Technology
Solutions.
- Europe: Net sales were
$4.4 billion (50 percent of worldwide
net sales), an increase of 20 percent compared to the prior-year
quarter. The increase in net sales is primarily attributed to the
addition of Technology Solutions. On a constant currency basis, net
sales increased 21 percent.
- Asia Pacific: Net sales were
$0.3 billion (3 percent of worldwide
net sales). Asia Pacific net sales
are attributed to the addition of Technology Solutions.
- Gross profit was $515.6 million,
an increase of $199.1 million, or 63
percent compared to the prior-year quarter. As a percentage of net
sales, gross profit was 5.80 percent compared to 4.98 percent in
the prior-year quarter. The increase in gross profit and gross
margin percentage is primarily attributable to the addition of
Technology Solutions.
- Selling, general and administrative expenses ("SG&A") were
$410.6 million, or 4.62 percent of
net sales, compared to $243.8
million, or 3.84 percent of net sales in the prior-year
quarter. Non-GAAP SG&A was $387.7
million, an increase of $149.4
million, or 63 percent, compared to the prior-year quarter.
As a percentage of net sales, non-GAAP SG&A was 4.37 percent,
compared to 3.75 percent in the prior-year quarter. The increase in
both dollars and percentage of net sales, on a GAAP and non-GAAP
basis, is primarily attributable to the addition of Technology
Solutions.
- Worldwide operating income was $103.5
million, or 1.17 percent of net sales compared to
$73.4 million or 1.15 percent of net
sales in the prior-year quarter. Non-GAAP operating income was
$127.8 million, an increase of
$49.8 million, or 64 percent,
compared to the prior-year quarter. As a percentage of net sales,
non-GAAP operating income was 1.44 percent, an improvement of 21
basis points over the prior-year quarter.
- Americas: Operating income was $88.0
million, or 2.10 percent of net sales, compared to
$41.2 million, or 1.54 percent of net
sales in the prior-year quarter. Non-GAAP operating income was
$84.7 million, an increase of
$45.9 million, or 118 percent,
compared to the prior-year quarter. As a percentage of net sales,
non-GAAP operating income was 2.02 percent, an improvement of 57
basis points over the prior-year quarter.
- Europe: Operating income was
$18.5 million, or 0.42 percent of net
sales, compared to $35.9 million, or
0.98 percent of net sales in the prior-year quarter. Non-GAAP
operating income was $43.4 million,
an increase of $0.3 million, or 1
percent, compared to the prior-year quarter. As a percentage of net
sales, non-GAAP operating income was 0.99 percent compared to 1.17
percent in the prior-year quarter.
- Asia Pacific: Operating income
was $5.1 million, or 1.76 percent of
net sales. Non-GAAP operating income was $6.7 million, or 2.32 percent of net sales.
- Stock-based compensation expense was $8.0 million, an increase of $4.2 million, compared to the prior-year quarter.
This includes $1.0 million of
acquisition and integration-related stock compensation expense.
These expenses are excluded from the regional operating results and
presented as a separate line item in the company's segment
reporting (see the GAAP to non-GAAP reconciliation in the financial
tables of this press release).
- Net income was $47.5 million,
compared to $46.4 million in the
prior-year quarter. Non-GAAP net income was $66.7 million, an increase of $16.4 million, or 33 percent, compared to the
prior-year quarter.
- Earnings per share on a diluted basis ("EPS") were $1.24, compared to $1.31 in the prior year quarter. Non-GAAP EPS was
$1.74, an increase of $0.32, or 23 percent compared to the prior-year
quarter.
- Net cash generated by operations during the quarter was
$146 million.
- Return on invested capital for the trailing twelve months was
10 percent, compared to 14 percent in the prior year period. The
adjusted return on invested capital for the trailing twelve months
was 12 percent, compared to 14 percent in the prior year
period.
"Our fiscal 2018 first-half results clearly show the enhanced
earnings and cash-generating power of the new Tech Data. In Q2,
worldwide sales exceeded plan and our teams maintained disciplined
cost controls; however, we did not deliver the earnings we expected
in the quarter," said Robert M.
Dutkowsky, chairman and chief executive officer. "Tech Data
is a stronger company today than it was a year ago. With the
addition of Technology Solutions, we now have a richer portfolio of
advanced technology vendors and customers, along with deeper skills
to serve them. At the same time, we continue to accelerate the
expansion of our capabilities in next-generation technologies. Our
integration is progressing as planned and we are on track to
deliver our synergy and debt reduction targets."
Business Outlook
- For the quarter ending October 31,
2017, the Company anticipates worldwide net sales to be in
the range of $9.0 billion to $9.35
billion.
- For the quarter ending October 31,
2017, the Company anticipates EPS to be in the range of
$0.80 to $1.00 and non-GAAP EPS to be
in the range of $1.84 to $2.04.
- This guidance assumes weighted average diluted shares
outstanding of 38.5 million and an effective tax rate in the range
of 30 percent to 32 percent.
- This guidance also assumes an average U.S. dollar to euro
exchange rate of $1.16 to
€1.00.
Webcast Details
Tech Data will hold a conference call today at 5:00 p.m. (ET) to discuss its financial results
for the second quarter ended July 31,
2017. A webcast of the call, including supplemental
schedules, will be available to all interested parties and can be
obtained at www.techdata.com/investor. The webcast will be
available for replay for three months.
Investor Day Event
The Company also announced it will host an Investor Day in
New York City beginning at
8:30 a.m. on Tuesday, October 10, 2017. Chairman and CEO
Bob Dutkowsky, COO Rich Hume, and CFO Chuck
Dannewitz, along with other members of the management team,
will review the company's strategy, highlight its performance and
outline the company's financial goals. A live webcast of the
investor day event, including slides and supplemental schedules,
will be available to all interested parties and can be obtained at
www.techdata.com/investor. The webcast will be available for replay
for three months.
Non-GAAP Financial Information
The non-GAAP financial information contained in this release
is included with the intention of providing investors a more
complete understanding of the Company's operational results and
trends, but should only be used in conjunction with results
reported in accordance with Generally Accepted Accounting
Principles ("GAAP"). Certain non-GAAP measures presented in this
release or other releases, presentations and similar documents
issued by the Company include sales, income or expense items as
adjusted for the impact of changes in foreign currencies (referred
to as "constant currency"), non-GAAP operating income, non-GAAP
operating margin, non-GAAP net income, non-GAAP earnings per
diluted share and Adjusted Return on Invested Capital. Certain
non-GAAP measures also exclude acquisition-related intangible
assets amortization expense, benefits associated with legal
settlements, acquisition, integration and restructuring
expenses, value-added tax assessments and acquisition-related
financing expenses. A detailed reconciliation of the adjustments
between results calculated using GAAP and non-GAAP in this release
is contained in the attached financial schedules. This information
can also be obtained from the Company's Investor Relations website
at www.techdata.com/investor.
Forward-Looking Statements
Certain statements in this communication may contain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements,
including statements regarding Tech Data's plans, objectives,
expectations and intentions, which may relate to the Technology
Solutions business, Tech Data's financial results and estimates
and/or business prospects, involve a number of risks and
uncertainties and actual results could differ materially from those
projected. These forward looking statements are based on current
expectations, estimates, forecasts, and projections about the
operating environment, economies and markets in which Tech Data
operates and the beliefs and assumptions of our management. Words
such as "expects," "anticipates," "targets," "goals," "projects,"
"intends," "plans," "believes," "seeks," "estimates," variations of
such words, and similar expressions are intended to identify such
forward looking statements. In addition, any statements that refer
to projections of Tech Data's future financial performance, our
anticipated growth and trends in our businesses, and other
characterizations of future events or circumstances, are forward
looking statements. These forward looking statements are only
predictions and are subject to risks, uncertainties, and
assumptions. Therefore, actual results may differ materially and
adversely from those expressed in any forward looking
statements.
For additional information with respect to risks and other
factors which could occur, see Tech Data's Annual Report on Form
10-K for the year ended January 31,
2017, including Part I, Item 1A, "Risk Factors" therein,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
other securities filings with the Securities and Exchange
Commission (the "SEC") that are available at the SEC's website at
www.sec.gov and other securities regulators. Readers are cautioned
not to place undue reliance upon any such forward-looking
statements, which speak only as of the date made. Many of these
factors are beyond Tech Data's control. Unless otherwise required
by applicable securities laws, Tech Data disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Tech Data undertakes no duty to update any forward looking
statements contained herein to reflect actual results or changes in
Tech Data's expectations.
About Tech Data
Tech Data Corporation is one of the world's largest wholesale
distributors of technology products, services and solutions. Its
advanced logistics capabilities and value added services enable
115,000 resellers to efficiently and cost effectively support the
diverse technology needs of end users in more than 100
countries. Tech Data generated $26.2
billion in net sales for the fiscal year ended January 31, 2017. It is ranked No. 107 on the
Fortune 500® and one of Fortune's "World's Most Admired
Companies." To learn more, visit www.techdata.com, or follow
us on Facebook and Twitter.
Contacts:
Charles V. Dannewitz, Executive
Vice President, Chief Financial Officer
727-532-8028 (chuck.dannewitz@techdata.com)
Arleen Quiñones, Corporate Vice President, Investor Relations
and Corporate Communications
727-532-8866 (arleen.quinones@techdata.com)
TECH DATA
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
July 31,
|
|
July 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net sales
|
$8,882,691
|
|
$6,353,739
|
|
$16,546,754
|
|
$12,317,101
|
Cost of products
sold
|
8,367,100
|
|
6,037,289
|
|
15,574,075
|
|
11,702,040
|
Gross
profit
|
515,591
|
|
316,450
|
|
972,679
|
|
615,061
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
410,598
|
|
243,763
|
|
763,230
|
|
490,259
|
Acquisition,
integration and restructuring expenses
|
30,117
|
|
1,982
|
|
72,183
|
|
1,982
|
LCD settlements and
other, net
|
(28,655)
|
|
(3,699)
|
|
(41,343)
|
|
(4,142)
|
Value added tax
assessments
|
-
|
|
1,049
|
|
-
|
|
1,049
|
|
412,060
|
|
243,095
|
|
794,070
|
|
489,148
|
Operating
income
|
103,531
|
|
73,355
|
|
178,609
|
|
125,913
|
Interest
expense
|
28,272
|
|
6,288
|
|
59,280
|
|
11,889
|
Other expense
(income), net
|
284
|
|
(1,230)
|
|
(131)
|
|
(2,264)
|
Income before income
taxes
|
74,975
|
|
68,297
|
|
119,460
|
|
116,288
|
Provision for income
taxes
|
27,516
|
|
21,903
|
|
41,347
|
|
36,521
|
Net income
|
$
47,459
|
|
$
46,394
|
|
$
78,113
|
|
$
79,767
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.24
|
|
$
1.32
|
|
$
2.07
|
|
$
2.27
|
Diluted
|
$
1.24
|
|
$
1.31
|
|
$
2.06
|
|
$
2.26
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
38,174
|
|
35,207
|
|
37,720
|
|
35,167
|
Diluted
|
38,388
|
|
35,378
|
|
37,935
|
|
35,373
|
TECH DATA
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEET
|
(In thousands, except
par value and share amounts)
|
|
|
|
|
|
July 31,
|
January
31,
|
|
2017
|
|
2017
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,033,267
|
|
$
2,125,591
|
Accounts receivable,
net
|
4,981,866
|
|
3,047,927
|
Inventories
|
2,703,763
|
|
2,118,902
|
Prepaid expenses and
other assets
|
247,504
|
|
119,906
|
Total current
assets
|
8,966,400
|
|
7,412,326
|
Property and
equipment, net
|
136,577
|
|
74,239
|
Goodwill
|
853,767
|
|
199,021
|
Intangible assets,
net
|
1,149,530
|
|
130,676
|
Other assets,
net
|
267,651
|
|
115,604
|
Total
assets
|
$
11,373,925
|
|
$
7,931,866
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
5,465,428
|
|
$
3,844,532
|
Accrued expenses and
other liabilities
|
742,815
|
|
493,199
|
Revolving credit loans
and current maturities of long-term debt, net
|
465,407
|
|
373,123
|
Total current
liabilities
|
6,673,650
|
|
4,710,854
|
Long-term debt, less
current maturities
|
1,802,618
|
|
989,924
|
Other long-term
liabilities
|
165,425
|
|
61,200
|
Total
liabilities
|
$
8,641,693
|
|
$
5,761,978
|
Shareholders'
equity:
|
|
|
|
Common stock, par
value $0.0015; 200,000,000 shares authorized; 59,245,585
shares issued at July 31, 2017 and January 31, 2017
|
$
89
|
|
$
89
|
Additional paid-in
capital
|
811,046
|
|
686,042
|
Treasury stock, at
cost (21,100,662 and 24,018,983 shares at July 31, 2017
and January 31, 2017)
|
(940,868)
|
|
(1,070,994)
|
Retained
earnings
|
2,707,406
|
|
2,629,293
|
Accumulated other
comprehensive income (loss)
|
154,559
|
|
(74,542)
|
Total shareholders'
equity
|
2,732,232
|
|
2,169,888
|
Total liabilities and
shareholders' equity
|
$
11,373,925
|
|
$
7,931,866
|
TECH DATA
CORPORATION AND SUBSIDIARIES
|
GAAP TO NON-GAAP
RECONCILIATION
|
(In
thousands)
|
|
|
|
|
|
Three months
ended July 31, 2017
|
|
Americas⁽¹⁾
|
|
Europe⁽¹⁾
|
|
APAC⁽¹⁾
|
|
Stock
Compensation Expense
|
|
Consolidated
|
Net
Sales
|
$
4,192,475
|
|
$
4,402,054
|
|
$
288,162
|
|
|
|
$
8,882,691
|
GAAP operating
income⁽¹⁾
|
$
87,975
|
|
$
18,464
|
|
$
5,066
|
|
$
(7,974)
|
|
$
103,531
|
LCD settlements and
other, net
|
(29,971)
|
|
1,316
|
|
-
|
|
|
|
(28,655)
|
Acquisition,
integration and
restructuring expenses
|
14,242
|
|
14,685
|
|
145
|
|
1,045
|
|
30,117
|
Acquisition-related
intangible
assets amortization expense
|
12,413
|
|
8,965
|
|
1,477
|
|
|
|
22,855
|
Total non-GAAP
operating income
adjustments
|
$
(3,316)
|
|
$
24,966
|
|
$
1,622
|
|
$
1,045
|
|
$
24,317
|
Non-GAAP operating
income
|
$
84,659
|
|
$
43,430
|
|
$
6,688
|
|
$
(6,929)
|
|
$
127,848
|
GAAP operating
margin
|
2.10%
|
|
0.42%
|
|
1.76%
|
|
|
|
1.17%
|
Non-GAAP operating
margin
|
2.02%
|
|
0.99%
|
|
2.32%
|
|
|
|
1.44%
|
⁽¹⁾ GAAP
operating income does not include stock compensation expense at the
regional level.
|
|
Three months ended
July 31, 2016
|
|
Americas⁽¹⁾
|
|
Europe⁽¹⁾
|
|
|
Stock
Compensation
Expense
|
|
Consolidated
|
Net
Sales
|
$
2,674,886
|
|
$
3,678,853
|
|
|
|
|
$
6,353,739
|
GAAP operating
income⁽¹⁾
|
$
41,241
|
|
$
35,927
|
|
|
$
(3,813)
|
|
$
73,355
|
Value added tax
assessments
|
(407)
|
|
1,456
|
|
|
|
|
1,049
|
Acquisition,
integration and restructuring expenses
|
1,046
|
|
936
|
|
|
|
|
1,982
|
Acquisition-related
intangible assets amortization expense
|
580
|
|
4,828
|
|
|
|
|
5,408
|
LCD settlements and
other, net
|
(3,699)
|
|
-
|
|
|
|
|
(3,699)
|
Total non-GAAP
operating income adjustments
|
$
(2,480)
|
|
$
7,220
|
|
|
|
|
$
4,740
|
Non-GAAP operating
income
|
$
38,761
|
|
$
43,147
|
|
|
$
(3,813)
|
|
$
78,095
|
GAAP operating
margin
|
1.54%
|
|
0.98%
|
|
|
|
|
1.15%
|
Non-GAAP operating
margin
|
1.45%
|
|
1.17%
|
|
|
|
|
1.23%
|
⁽¹⁾ GAAP
operating income does not include stock compensation expense at the
regional level.
|
TECH DATA
CORPORATION AND SUBSIDIARIES
|
GAAP TO NON-GAAP
RECONCILIATION
|
(In
thousands)
|
|
|
|
Six months ended
July 31, 2017
|
|
Americas⁽¹⁾
|
|
Europe⁽¹⁾
|
|
APAC⁽¹⁾
|
|
Stock
Compensation
Expense
|
|
Consolidated
|
Net
Sales
|
$
7,661,312
|
|
$
8,408,974
|
|
$
476,468
|
|
|
|
$
16,546,754
|
GAAP operating
income⁽¹⁾
|
$
138,875
|
|
$
43,263
|
|
$
9,363
|
|
$
(12,892)
|
|
$
178,609
|
LCD settlements and
other, net
|
(42,659)
|
|
1,316
|
|
-
|
|
|
|
(41,343)
|
Acquisition,
integration and
restructuring expenses
|
44,424
|
|
26,257
|
|
145
|
|
1,357
|
|
72,183
|
Acquisition-related
intangible
assets amortization expense
|
22,514
|
|
16,713
|
|
2,377
|
|
|
|
41,604
|
Total non-GAAP
operating income
adjustments
|
$
24,279
|
|
$
44,286
|
|
$
2,522
|
|
$
1,357
|
|
$
72,444
|
Non-GAAP operating
income
|
$
163,154
|
|
$
87,549
|
|
$
11,885
|
|
$
(11,535)
|
|
$
251,053
|
GAAP operating
margin
|
1.81%
|
|
0.51%
|
|
1.97%
|
|
|
|
1.08%
|
Non-GAAP operating
margin
|
2.13%
|
|
1.04%
|
|
2.49%
|
|
|
|
1.52%
|
⁽¹⁾ GAAP
operating income does not include stock compensation expense at the
regional level.
|
|
Six months ended
July 31, 2016
|
|
Americas⁽¹⁾
|
|
Europe⁽¹⁾
|
|
|
Stock
Compensation
Expense
|
|
Consolidated
|
Net
Sales
|
$
5,062,890
|
|
$
7,254,211
|
|
|
|
|
$
12,317,101
|
GAAP operating
income⁽¹⁾
|
$
72,516
|
|
$
60,867
|
|
|
$
(7,470)
|
|
$
125,913
|
Value added tax
assessments
|
(407)
|
|
1,456
|
|
|
|
|
1,049
|
Acquisition,
integration and restructuring
expenses
|
1,046
|
|
936
|
|
|
|
|
1,982
|
Acquisition-related
intangible assets
amortization expense
|
1,160
|
|
9,693
|
|
|
|
|
10,853
|
LCD settlements and
other, net
|
(4,142)
|
|
-
|
|
|
|
|
(4,142)
|
Total non-GAAP
operating income adjustments
|
$
(2,343)
|
|
$
12,085
|
|
|
|
|
$
9,742
|
Non-GAAP operating
income
|
$
70,173
|
|
$
72,952
|
|
|
$
(7,470)
|
|
$
135,655
|
GAAP operating
margin
|
1.43%
|
|
0.84%
|
|
|
|
|
1.02%
|
Non-GAAP operating
margin
|
1.39%
|
|
1.01%
|
|
|
|
|
1.10%
|
⁽¹⁾ GAAP
operating income does not include stock compensation expense at the
regional level.
|
Selling, general
and administrative expenses ("SG&A")
|
Three months ended
July 31,
|
2017
|
|
2016
|
Net
Sales
|
$
8,882,691
|
|
$
6,353,739
|
GAAP
SG&A
|
410,598
|
|
243,763
|
Acquisition-related
intangible assets amortization expense
|
(22,855)
|
|
(5,408)
|
Non-GAAP
SG&A
|
$
387,743
|
|
$
238,355
|
|
|
|
|
GAAP SG&A
percentage of net sales
|
4.62%
|
|
3.84%
|
Non- GAAP SG&A
percentage of net sales
|
4.37%
|
|
3.75%
|
|
|
|
|
|
|
|
|
|
Six months ended
July 31,
|
|
2017
|
|
2016
|
Net
Sales
|
$
16,546,754
|
|
$
12,317,101
|
GAAP
SG&A
|
763,230
|
|
490,259
|
Acquisition-related
intangible assets amortization expense
|
(41,604)
|
|
(10,853)
|
Non-GAAP
SG&A
|
$
721,626
|
|
$
479,406
|
|
|
|
|
GAAP SG&A
percentage of net sales
|
4.61%
|
|
3.98%
|
Non- GAAP SG&A
percentage of net sales
|
4.36%
|
|
3.89%
|
|
Three months ended
July 31,
|
|
2017
|
|
2016
|
|
Net
Income
|
Diluted
EPS
|
|
Net
Income
|
Diluted
EPS
|
GAAP
Results
|
$47,459
|
$1.24
|
|
$46,394
|
$1.31
|
LCD settlements and
other, net
|
(28,332)
|
(0.74)
|
|
(3,699)
|
(0.10)
|
Value added tax
assessments
|
-
|
-
|
|
1,386
|
0.04
|
Acquisition,
integration and restructuring
expenses
|
30,117
|
0.78
|
|
1,982
|
0.05
|
Acquisition-related
intangible assets
amortization expense
|
22,855
|
0.60
|
|
5,408
|
0.15
|
Income tax effect of
the above adjustments
|
(5,367)
|
(0.14)
|
|
(1,178)
|
(0.03)
|
Non-GAAP
results
|
$66,732
|
$1.74
|
|
$50,293
|
$1.42
|
|
|
|
|
|
|
|
Six months ended
July 31,
|
|
2017
|
|
2016
|
|
Net
Income
|
Diluted
EPS
|
|
Net
Income
|
Diluted
EPS
|
GAAP
Results
|
$78,113
|
$2.06
|
|
$79,767
|
$2.26
|
LCD settlements and
other, net
|
(41,020)
|
(1.08)
|
|
(4,142)
|
(0.12)
|
Value added tax
assessments
|
-
|
-
|
|
1,386
|
0.04
|
Acquisition,
integration and restructuring expenses
|
72,183
|
1.90
|
|
1,982
|
0.05
|
Acquisition-related
intangible assets amortization expense
|
41,604
|
1.10
|
|
10,853
|
0.31
|
Acquisition-related
financing expenses
|
8,807
|
0.23
|
|
-
|
-
|
Income tax effect of
the above adjustments
|
(22,896)
|
(0.60)
|
|
(2,511)
|
(0.07)
|
Non-GAAP
results
|
$136,791
|
$3.61
|
|
$87,335
|
$2.47
|
Return on Invested
Capital (ROIC)
|
|
|
|
Twelve months
ended July 31,
|
|
2017
|
|
2016
|
TTM Net Operating
Profit After Tax (NOPAT)*:
|
|
|
|
Operating
income
|
$
344,598
|
|
$
339,168
|
Income taxes on
operating income⁽¹⁾
|
(88,150)
|
|
(103,254)
|
NOPAT
|
$
256,448
|
|
$
235,914
|
|
|
|
|
Average Invested
Capital:
|
|
|
|
Short-term debt
(5-qtr average)
|
$
340,608
|
|
$
16,796
|
Long-term debt (5-qtr
average)
|
988,243
|
|
349,316
|
Shareholders' Equity
(5-qtr average)
|
2,316,790
|
|
2,036,086
|
Total average
capital
|
3,645,641
|
|
2,402,198
|
Less: Cash (5-qtr
average)
|
(1,081,802)
|
|
(669,836)
|
Average invested
capital less average cash
|
$
2,563,839
|
|
$
1,732,362
|
ROIC
|
10%
|
|
14%
|
|
|
|
|
* Trailing Twelve
Months is abbreviated as TTM.
|
|
|
|
⁽¹⁾ Income taxes on
operating income was calculated using the trailing 12 months
effective tax rate during the respective periods.
|
Adjusted Return on
Invested Capital (ROIC)
|
|
|
|
Twelve months
ended July 31,
|
|
2017
|
|
2016
|
TTM Net Operating
Profit After Tax (NOPAT), as adjusted *:
|
|
|
|
Non-GAAP operating
income⁽¹⁾
|
$
454,332
|
|
$
323,366
|
Income taxes on
non-GAAP operating income⁽²⁾
|
(134,878)
|
|
(91,519)
|
NOPAT, as
adjusted
|
$
319,454
|
|
$
231,847
|
|
|
|
|
Average Invested
Capital, as adjusted:
|
|
|
|
Short-term debt
(5-qtr average)
|
$
340,608
|
|
$
16,796
|
Long-term debt (5-qtr
average)
|
988,243
|
|
349,316
|
Shareholders' Equity
(5-qtr average)
|
2,316,790
|
|
2,036,086
|
Tax effected impact
of non-GAAP adjustments⁽³⁾
|
31,842
|
|
(27,154)
|
Total average
capital, as adjusted
|
3,677,483
|
|
2,375,044
|
Less: Cash (5-qtr
average)
|
(1,081,802)
|
|
(669,836)
|
Average invested
capital less average cash
|
$
2,595,681
|
|
$
1,705,208
|
Adjusted
ROIC
|
12%
|
|
14%
|
|
|
|
|
* Trailing Twelve
Months is abbreviated as TTM.
|
|
|
|
⁽¹⁾ Represents
operating income as adjusted to exclude acquisition, integration
and restructuring expenses, LCD settlements and other, net, value
added tax assessments and acquisition-related intangible assets
amortization expense.
|
⁽²⁾ Income taxes on
non-GAAP operating income was calculated using the trailing 12
months effective tax rate adjusted for the impact of non-GAAP
adjustments during the respective periods.
|
⁽³⁾ Represents the 5
quarter average of the year-to-date impact of non-GAAP
adjustments.
|
Guidance
Reconciliation
|
|
|
|
Three months ended
October 31, 2017
|
|
Low end of
guidance range
|
|
High end of
guidance range
|
Earnings per share
- diluted
|
$0.80
|
|
$1.00
|
Acquisition,
integration and restructuring expenses
|
0.85
|
|
0.85
|
Acquisition-related
intangible assets amortization expense
|
0.62
|
|
0.62
|
Income tax effect of
the above adjustments
|
(0.43)
|
|
(0.43)
|
Non-GAAP earnings
per share - diluted
|
$1.84
|
|
$2.04
|
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SOURCE Tech Data Corporation