Tech Data (NASDAQ: TECD) (the “Company”) today announced its
financial results for the second quarter ended July 31, 2019.
Second quarter ended July
31,
Six months ended July
31,
($ in millions,except per share amounts)
2019
2018
Y/Y Change
2019
2018
Y/Y Change
Net Sales
$9,092.2
$8,886.1
2%
$17,498.7
$17,434.4
0%
Gross profit
$561.7
$527.0
7%
$1,071.0
$1,050.1
2%
Gross margin
6.18%
5.93%
25 bps
6.12%
6.02%
10 bps
SG&A expenses (GAAP)
$431.7
$415.3
4%
$837.5
$837.7
0%
% of net sales
4.75%
4.67%
8 bps
4.79%
4.80%
-1 bps
SG&A expenses (Non-GAAP)
$410.2
$392.1
5%
$794.9
$791.1
0%
% of net sales
4.51%
4.41%
10 bps
4.54%
4.54%
0 bps
Operating income (GAAP)
$124.7
$110.4
13%
$222.4
$180.9
23%
Operating margin (GAAP)
1.37%
1.24%
13 bps
1.27%
1.04%
23 bps
Operating income (Non-GAAP)
$151.4
$135.0
12%
$276.2
$259.0
7%
Operating margin (Non-GAAP)
1.67%
1.52%
15 bps
1.58%
1.49%
9 bps
Net income (GAAP)
$79.3
$75.9
4%
$134.7
$109.6
23%
Net income (Non-GAAP)
$98.6
$77.7
27%
$174.5
$148.5
18%
EPS - diluted (GAAP)
$2.16
$1.97
10%
$3.64
$2.84
28%
EPS - diluted (Non-GAAP)
$2.69
$2.01
34%
$4.72
$3.85
23%
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.
“We are pleased to report that Tech Data delivered an
outstanding second quarter performance marked by broad-based
improvement across our geographies. A stable demand environment,
combined with strong execution by our teams, resulted in a number
of key achievements, including: solid sales growth in constant
currency, double-digit growth in operating income and earnings per
share, positive cash flow, and an industry-leading return on
invested capital,” said Rich Hume, chief executive officer. “We
achieved all of this while continuing to advance our strategy,
invest for the future and return cash to our shareholders in the
form of share repurchases. The Board’s authorization of an
additional $200 million share repurchase reflects our continued
confidence in our business and commitment to creating value for our
shareholders.”
Regional Financial Highlights for the Second Quarter Ended
July 31, 2019:
Second quarter ended July 31, Six months ended July
31, ($ in millions)
2019
2018
Y/Y Change
2019
2018
Y/Y Change
AMERICAS Net
Sales
$4,316.7
$4,043.3
7%
$8,105.9
$7,661.5
6%
% of WW net sales
47%
46%
46%
44%
Operating income (GAAP)
$93.1
$87.9
6%
$161.7
$149.3
8%
% of net sales
2.16%
2.17%
-1 bps
2.00%
1.95%
5 bps
Operating income (Non-GAAP)
$107.9
$95.4
13%
$192.6
$181.4
6%
% of net sales
2.50%
2.36%
14 bps
2.38%
2.37%
1 bps
EUROPE
Net Sales
$4,439.6
$4,549.1
-2%
$8,749.1
$9,210.8
-5%
% of WW net sales
49%
51%
50%
53%
Operating income (GAAP)
$37.6
$29.1
29%
$74.1
$46.4
60%
% of net sales
0.85%
0.64%
21 bps
0.85%
0.50%
35 bps
Operating income (Non-GAAP)
$47.3
$44.3
7%
$92.9
$88.0
6%
% of net sales
1.07%
0.97%
10 bps
1.06%
0.96%
10 bps
ASIA PACIFIC
Net Sales
$335.9
$293.6
14%
$643.6
$562.1
15%
% of WW net sales
4%
3%
4%
3%
Operating income (GAAP)
$2.1
$1.3
57%
$2.9
$0.7
297%
% of net sales
0.62%
0.45%
17 bps
0.46%
0.13%
33 bps
Operating income (Non-GAAP)
$4.3
$2.5
71%
$7.1
$3.6
98%
% of net sales
1.28%
0.86%
42 bps
1.10%
0.64%
46 bps
Note: WW = worldwide Stock-based compensation expense was $8.1
million, an increase of $0.1 million, compared to the prior-year
quarter. 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 sales were $9.1 billion, an increase of 2 percent compared
to the prior-year quarter. On a constant currency basis, net sales
increased 5 percent.
- Americas: Net sales were $4.3 billion, an increase of 7 percent
compared to the prior-year quarter. On a constant currency basis,
net sales also increased 7 percent.
- Europe: Net sales were $4.4 billion, a decrease of 2 percent
compared to the prior-year quarter. On a constant currency basis,
net sales increased 2 percent.
- Asia Pacific: Net sales were $0.3 billion, an increase of 14
percent compared to the prior-year quarter. On a constant currency
basis, net sales increased 17 percent.
- Net cash generated by operations during the quarter was $40
million.
- Return on invested capital for the trailing twelve months was
13 percent, compared to 5 percent in the prior year. Adjusted
return on invested capital for the trailing twelve months was 15
percent, compared to 11 percent in the comparable period.
- “Year to date, we generated $103 million in cash from
operations, returned $118 million to our shareholders through share
repurchases, and for the trailing twelve month period earned an
adjusted return on invested capital of 15 percent,” said Chuck
Dannewitz, executive vice president, chief financial officer. “We
also took steps to optimize our liquidity and financial profile, as
we continue to rigorously review our capital structure to enhance
shareholder value.”
- Business Outlook
- For the quarter ending October 31, 2019, the Company
anticipates:
- Worldwide net sales to be in the range of $9.2 billion to $9.5
billion
- EPS to be in the range of $2.33 to $2.63 and non-GAAP EPS to be
in the range of $2.85 to $3.15
- An effective tax rate in the range of 24 percent to 25
percent
- This guidance assumes an average U.S. dollar to euro exchange
rate of $1.12 to €1.00 which compares to $1.16 to €1.00 in the
year-ago period.
Webcast Details
Tech Data will hold a conference call today at 9:00 a.m. (ET) to
discuss its financial results for the second quarter ended July 31,
2019. 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.
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 related interest expense, gain on disposal of subsidiary, tax
indemnifications and changes in deferred tax valuation allowances.
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, 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,
2019, 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 connects the world with the power of technology. Our
end-to-end portfolio of products, services and solutions, highly
specialized skills, and expertise in next-generation technologies
enable channel partners to bring to market the products and
solutions the world needs to connect, grow and advance. Tech Data
is ranked No. 88 on the Fortune 500® and has been named one of
Fortune’s World’s Most Admired Companies for 10 straight years. To
find out more, visit www.techdata.com or follow us on Twitter,
LinkedIn, Facebook and Instagram.
TECH DATA CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF
OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
Three months ended July 31, Six months ended July 31,
2019
2018
2019
2018
Net sales
$ 9,092,244
$ 8,886,101
$ 17,498,668
$ 17,434,420
Cost of products sold
8,530,594
8,359,071
16,427,639
16,384,273
Gross profit
561,650
527,030
1,071,029
1,050,147
Operating expenses: Selling, general and administrative expenses
431,694
415,319
837,510
837,680
Acquisition, integration, and restructuring expenses
5,209
13,297
11,430
46,522
Legal settlements and other, net —
(5,234)
(282)
(8,199)
Gain on disposal of subsidiary —
(6,717)
—
(6,717)
436,903
416,665
848,658
869,286
Operating income
124,747
110,365
222,371
180,861
Interest expense
20,986
28,053
47,243
53,975
Other expense, net
2,896
901
2,203
2,818
Income before income taxes
100,865
81,411
172,925
124,068
Provision for income taxes
21,615
5,545
38,275
14,503
Net income
$ 79,250
$ 75,866
$ 134,650
$ 109,565
Earnings per share: Basic
$ 2.17
$ 1.97
$ 3.67
$ 2.86
Diluted
$ 2.16
$ 1.97
$ 3.64
$ 2.84
Weighted average common shares outstanding: Basic
36,476
38,428
36,739
38,356
Diluted
36,661
38,566
36,964
38,565
TECH DATA CORPORATION AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except par value and share
amounts)
July 31, January 31,
2019
2019
ASSETS (unaudited) Current assets: Cash and cash equivalents
$ 738,265
$ 799,123
Accounts receivable, net
5,390,102
6,241,740
Inventories
3,115,899
3,297,385
Prepaid expenses and other assets
360,027
354,601
Total current assets
9,604,293
10,692,849
Property and equipment, net
273,128
274,917
Goodwill
880,657
892,990
Intangible assets, net
899,076
950,858
Other assets, net
397,901
174,938
Total assets
$ 12,055,055
$ 12,986,552
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Accounts payable
$ 6,459,858
$ 7,496,466
Accrued expenses and other liabilities
987,418
1,000,126
Revolving credit loans and current maturities of long-term debt,
net
128,453
110,368
Total current liabilities
7,575,729
8,606,960
Long-term debt, less current maturities
1,297,212
1,300,554
Other long-term liabilities
292,492
142,315
Total liabilities
$ 9,165,433
$ 10,049,829
Shareholders’ equity: Common stock, par value $0.0015;
200,000,000 shares authorized; 59,245,585
$ 89
$ 89
shares issued at July 31, 2019 and January 31, 2019 Additional
paid-in capital
843,159
844,206
Treasury stock, at cost (23,288,420 and 22,305,464 shares at July
31, 2019 and January 31, 2019)
(1,146,289)
(1,037,872)
Retained earnings
3,221,164
3,086,514
Accumulated other comprehensive (loss) income
(28,501)
43,786
Total shareholders' equity
2,889,622
2,936,723
Total liabilities and shareholders' equity
$ 12,055,055
$ 12,986,552
TECH DATA CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH
FLOWS
(In thousands)
(Unaudited)
Six months ended July 31,
2019
2018
Cash flows from operating activities: Cash received from customers
$ 23,717,345
$ 22,873,693
Cash paid to vendors and employees
(23,530,536)
(22,793,148)
Interest paid, net
(46,204)
(48,829)
Income taxes paid
(37,767)
(37,179)
Net cash provided by (used in) operating activities
102,838
(5,463)
Cash flows from investing activities: Proceeds from sale of
business, net of cash divested —
8,985
Acquisition of businesses, net of cash acquired —
(2,818)
Expenditures for property and equipment
(18,806)
(14,131)
Software and software development costs
(14,704)
(8,592)
Other
117
1,096
Net cash used in investing activities
(33,393)
(15,460)
Cash flows from financing activities: Principal payments on
long-term debt
(7,368)
(105,845)
Cash paid for debt issuance costs
(3,909)
— Net borrowings (repayments) on revolving credit loans
19,786
(8,700)
Payments for employee tax withholdings on equity awards
(9,134)
(6,702)
Proceeds from the reissuance of treasury stock
1,002
920
Repurchases of common stock
(117,692)
— Net cash used in financing activities
(117,315)
(120,327)
Effect of exchange rate changes on cash and cash equivalents
(12,988)
(21,519)
Net decrease in cash and cash equivalents
(60,858)
(162,769)
Cash and cash equivalents at beginning of year
799,123
955,628
Cash and cash equivalents at end of period
$ 738,265
$ 792,859
Reconciliation of net income to net cash provided by (used in)
operating activities: Net income
$ 134,650
$ 109,565
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: Gain on disposal of subsidiary —
(6,717)
Depreciation and amortization
74,759
80,399
Provision for losses on accounts receivable
14,432
6,270
Stock-based compensation expense
16,360
15,555
Accretion of debt discount and debt issuance costs
1,700
1,805
Deferred income taxes
(1,879)
(11,396)
Changes in operating assets and liabilities, net of acquisitions
and disposition: Accounts receivable
737,724
602,579
Inventories
139,997
(166,800)
Prepaid expenses and other assets
(10,535)
(40,180)
Accounts payable
(923,917)
(486,900)
Accrued expenses and other liabilities
(80,453)
(109,643)
Total adjustments
(31,812)
(115,028)
Net cash provided by (used in) operating activities
$ 102,838
$ (5,463)
TECH DATA CORPORATION AND
SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
Three months ended July 31,
2019
Americas(1)
Europe(1)
Asia Pacific(1)
Stock Compensation
Expense
Consolidated
Net Sales
$ 4,316,731
$ 4,439,627
$ 335,886
$ 9,092,244
Operating income (GAAP) (1)
$ 93,085
$ 37,649
$ 2,068
$ (8,055)
$ 124,747
Acquisition, integration and restructuring expenses
1,341
3,229
639
-
5,209
Acquisition-related intangible assets amortization expense
13,440
6,430
1,312
21,182
Tax indemnifications
-
-
265
265
Total non-GAAP operating income adjustments
$ 14,781
$ 9,659
$ 2,216
$ -
$ 26,656
Operating income (non-GAAP)
$ 107,866
$ 47,308
$ 4,284
$ (8,055)
$ 151,403
Operating margin (GAAP)
2.16%
0.85%
0.62%
1.37%
Operating margin (non-GAAP)
2.50%
1.07%
1.28%
1.67%
(1) GAAP operating income does not include stock
compensation expense at the regional level.
Three months ended July 31,
2018
Americas(1)
Europe(1)
Asia Pacific(1)
Stock Compensation
Expense
Consolidated
Net Sales
$ 4,043,331
$ 4,549,127
$ 293,643
$ 8,886,101
Operating income (GAAP) (1)
$ 87,930
$ 29,085
$ 1,318
$ (7,968)
$ 110,365
Acquisition, integration and restructuring expenses
(844)
13,342
131
668
13,297
Legal settlements and other, net
(5,234)
-
-
(5,234)
Acquisition-related intangible assets amortization expense
13,570
7,727
1,418
22,715
Gain on disposal of subsidiary
-
(6,717)
-
(6,717)
Tax indemnifications
-
910
(356)
554
Total non-GAAP operating income adjustments
$ 7,492
$ 15,262
$ 1,193
$ 668
$ 24,615
Operating income (non-GAAP)
$ 95,422
$ 44,347
$ 2,511
$ (7,300)
$ 134,980
Operating margin (GAAP)
2.17%
0.64%
0.45%
1.24%
Operating margin (non-GAAP)
2.36%
0.97%
0.86%
1.52%
(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,
2019
Americas (1)
Europe (1)
Asia Pacific (1)
Stock Compensation
Expense
Consolidated
Net Sales
$ 8,105,929
$ 8,749,127
$ 643,612
$ 17,498,668
Operating income (GAAP) (1)
$ 161,718
$ 74,069
$ 2,944
$ (16,360)
$ 222,371
Acquisition, integration and restructuring expenses
4,252
6,253
925
-
11,430
Legal settlements and other, net
(282)
-
-
(282)
Acquisition-related intangible assets amortization expense
26,880
12,545
2,636
42,061
Tax indemnifications
-
-
585
585
Total non-GAAP operating income adjustments
$ 30,850
$ 18,798
$ 4,146
$ -
$ 53,794
Operating income (non-GAAP)
$ 192,568
$ 92,867
$ 7,090
$ (16,360)
$ 276,165
Operating margin (GAAP)
2.00%
0.85%
0.46%
1.27%
Operating margin (non-GAAP)
2.38%
1.06%
1.10%
1.58%
(1) GAAP operating income does not include stock
compensation expense at the regional level.
Six months ended July 31,
2018
Americas (1)
Europe (1)
Asia Pacific (1)
Stock Compensation
Expense
Consolidated
Net Sales
$ 7,661,537
$ 9,210,829
$ 562,054
$ 17,434,420
Operating income (GAAP) (1)
$ 149,272
$ 46,403
$ 741
$ (15,555)
$ 180,861
Acquisition, integration and restructuring expenses
13,072
31,330
452
1,668
46,522
Legal settlements and other, net
(8,199)
-
-
(8,199)
Acquisition-related intangible assets amortization expense
27,213
16,056
2,750
46,019
Gain on disposal of subsidiary
-
(6,717)
-
(6,717)
Tax indemnifications
-
910
(356)
554
Total non-GAAP operating income adjustments
$ 32,086
$ 41,579
$ 2,846
$ 1,668
$ 78,179
Operating income (non-GAAP)
$ 181,358
$ 87,982
$ 3,587
$ (13,887)
$ 259,040
Operating margin (GAAP)
1.95%
0.50%
0.13%
1.04%
Operating margin (non-GAAP)
2.37%
0.96%
0.64%
1.49%
(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)
Selling, general and administrative
expenses ("SG&A") Three months ended July
31,
2019
2018
Net Sales
$ 9,092,244
$ 8,886,101
SG&A Expenses (GAAP)
$ 431,694
$ 415,319
Tax indemnifications
(265)
(554)
Acquisition-related intangible assets amortization expense
(21,182)
(22,715)
SG&A Expenses (non-GAAP)
$ 410,247
$ 392,050
SG&A Expenses (GAAP) %
4.75%
4.67%
SG&A Expenses (non-GAAP) %
4.51%
4.41%
Six
months ended July 31,
2019
2018
Net Sales
$ 17,498,668
$ 17,434,420
SG&A Expenses (GAAP)
$ 837,510
$ 837,680
Tax indemnifications
(585)
(554)
Acquisition-related intangible assets amortization expense
(42,061)
(46,019)
SG&A Expenses (non-GAAP)
$ 794,864
$ 791,107
SG&A Expenses (GAAP) %
4.79%
4.80%
SG&A Expenses (non-GAAP) %
4.54%
4.54%
TECH DATA CORPORATION AND
SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
Three months ended July 31,
2019
2018
Net Income Diluted EPS Net
Income Diluted EPS GAAP Results
$79,250
$2.16
$75,866
$1.97
Acquisition, integration and restructuring expenses
5,209
0.14
13,297
0.34
Legal settlements and other, net
-
-
(5,234)
(0.13)
Acquisition-related intangible assets amortization expense
21,182
0.58
22,715
0.59
Gain on disposal of subsidiary
-
-
(6,717)
(0.17)
Tax indemnifications
265
0.01
554
0.01
Income tax effect of tax indemnifications
(265)
(0.01)
(554)
(0.01)
Income tax effect of other adjustments above
(7,015)
(0.19)
(9,404)
(0.25)
Income tax benefit from acquisition settlement
-
-
(12,839)
(0.34)
Non-GAAP Results
$98,626
$2.69
$77,684
$2.01
Six months ended July 31,
2019
2018
Net Income Diluted EPS Net
Income Diluted EPS GAAP Results
$134,650
$3.64
$109,565
$2.84
Acquisition, integration and restructuring expenses
11,430
0.31
46,522
1.21
Legal settlements and other, net
(282)
(0.01)
(8,199)
(0.21)
Acquisition-related intangible assets amortization expense
42,061
1.14
46,019
1.19
Gain on disposal of subsidiary
-
-
(6,717)
(0.17)
Tax indemnifications
585
0.02
554
0.01
Value added tax assessments and related interest expense
-
-
(928)
(0.02)
Income tax effect of tax indemnifications
(585)
(0.02)
(554)
(0.01)
Income tax effect of other adjustments above
(13,336)
(0.36)
(22,312)
(0.58)
Income tax benefit from acquisition settlement
-
-
(12,839)
(0.34)
Change in deferred tax valuation allowances
-
-
(2,600)
(0.07)
Non-GAAP Results
$174,523
$4.72
$148,511
$3.85
TECH DATA CORPORATION AND
SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
Return on Invested Capital
(ROIC)
Twelve months ended July 31, TTM Net Operating
Profit After Tax (NOPAT)*:
2019
2018
Operating income
$ 535,312
$ 412,331
Income taxes on operating income (1)
(71,618)
(211,261)
NOPAT
$ 463,694
$ 201,070
Average Invested Capital: Short-term debt (5-qtr end
average)
$ 117,825
$ 188,558
Long-term debt (5-qtr end average)
1,319,914
1,604,359
Shareholders' Equity (5-qtr end average)
2,886,150
2,819,394
Total average capital
4,323,889
4,612,311
Less: Cash (5-qtr end average)
(754,845)
(737,995)
Average invested capital less average cash
$ 3,569,044
$ 3,874,316
ROIC
13%
5%
* Trailing Twelve Months is abbreviated as TTM. (1) Income
taxes on operating income was calculated using the trailing twelve
months effective tax rate.
Adjusted Return on Invested Capital
(ROIC)
Twelve months ended July 31, TTM Net Operating Profit
After Tax (NOPAT), as adjusted*:
2019
2018
Non-GAAP operating income (1)
$ 725,011
$ 610,691
Income taxes on non-GAAP operating income (2)
(177,649)
(172,797)
NOPAT, as adjusted
$ 547,362
$ 437,894
Average Invested Capital, as adjusted: Short-term
debt (5-qtr end average)
$ 117,825
$ 188,558
Long-term debt (5-qtr end average)
1,319,914
1,604,359
Shareholders' Equity (5-qtr end average)
2,886,150
2,819,394
Tax effected impact of non-GAAP adjustments (3)
45,223
95,231
Total average capital, as adjusted
4,369,112
4,707,542
Less: Cash (5-qtr end average)
(754,845)
(737,995)
Average invested capital less average cash
$ 3,614,267
$ 3,969,547
Adjusted ROIC
15%
11%
*
Trailing Twelve Months is abbreviated as
TTM.
(1)
Represents operating income as adjusted to
exclude acquisition, integration and restructuring expenses, legal
settlements and other, net, gain on disposal of subsidiary, value
added tax assessments, acquisition-related intangible assets
amortization expense, goodwill impairment and tax
indemnifications.
(2)
Income taxes on non-GAAP operating income
was calculated using the trailing twelve 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.
TECH DATA CORPORATION AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
Guidance Reconciliation
Three months ending October
31, 2019
Low end of guidance
range
High end of guidance
range
Earnings per share - diluted
$2.33
$2.63
Acquisition-related amortization of intangibles
0.58
0.58
Acquisition, integration and restructuring expenses
0.12
0.12
Income tax effect of the above adjustments
(0.18)
(0.18)
Non-GAAP earnings per share - diluted
$2.85
$3.15
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190829005103/en/
Investor Contact Tania Almond Investor Relations Director
+1 727.538.7064 tania.almond@techdata.com
Media Contact Bobby Eagle Director, External
Communications +1 727.538.5864 bobby.eagle@techdata.com
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