Strategic Initiatives Underway to Enhance Value
to Sales Channel and Suppliers
ScanSource, Inc. (NASDAQ: SCSC), a leading provider of
technology products and solutions, today announced financial
results for the fourth quarter and fiscal year ended June 30,
2019.
Quarter ended June 30,
Fiscal year ended June
30,
2019
2018
Change
2019
2018
Change
(in millions, except per share
data)
(in millions, except per share
data)
Net sales
$
960.8
$
993.9
(3
)%
$
3,873
$
3,846
1
%
Operating income
20.0
19.8
1
%
90.0
67.6
33
%
Non-GAAP operating income(1)
29.4
30.8
(4
)%
128.5
124.0
4
%
GAAP net income
11.6
10.4
11
%
57.6
33.2
74
%
Non-GAAP net income(1)
18.3
19.9
(8
)%
86.4
79.8
8
%
GAAP diluted EPS
$
0.45
$
0.40
13
%
$
2.24
$
1.29
74
%
Non-GAAP diluted EPS(1)
$
0.71
$
0.77
(8
)%
$
3.36
$
3.11
8
%
(1) Non-GAAP results exclude amortization
of intangible assets related to acquisitions, change in fair value
of contingent consideration and other non-GAAP items. A
reconciliation of non-GAAP financial information to GAAP financial
information is presented in the Supplementary Information
(Unaudited) below.
“While we did not finish our fiscal year as strongly as we
started, we delivered record net sales of $3.9 billion for fiscal
year 2019,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “In
North America, we are executing on our strategic initiatives to
offer technology solutions, services and recurring revenue as One
ScanSource. Earlier today, we announced plans to divest of certain
businesses outside of the United States, Canada and Brazil to align
our investments with higher-growth, higher-margin businesses.”
Quarterly Results
Net sales for the fourth quarter of fiscal year 2019 decreased
3% year-over-year to $960.8 million. Organic sales, which exclude
the impact of foreign currency translation and recent acquisitions,
decreased 2% year-over-year, primarily in the Worldwide Barcode,
Security and Networking segment. Operating income increased 1% to
$20.0 million year-over-year. Non-GAAP operating income decreased
4% to $29.4 million, primarily from lower sales volumes.
On a GAAP basis, net income for the fourth quarter of fiscal
year 2019 totaled $11.6 million, or $0.45 per diluted share,
compared with net income of $10.4 million, or $0.40 per diluted
share, for the prior-year quarter. Non-GAAP net income totaled
$18.3 million, or $0.71 per diluted share, compared to $19.9
million, or $0.77 per diluted share, for the prior-year
quarter.
Full-Year Results
For fiscal year 2019, net sales increased 1% to $3.9 billion.
Organic sales for fiscal year 2019 increased 2% year-over-year,
driven by 9% sales growth in the Worldwide Communications and
Services segment. Operating income increased 33% to $90.0 million,
largely from decreased expense for the change in fair value of
contingent consideration. Non-GAAP operating income increased 4% to
$128.5 million, driven by higher gross profit and higher
margins.
On a GAAP basis, net income for fiscal year 2019 totaled $57.6
million, or $2.24 per diluted share, compared to net income of
$33.2 million, or $1.29 per diluted share, for the prior-year.
Non-GAAP net income increased 8% to $86.4 million, or $3.36 per
diluted share, compared to $79.8 million, or $3.11 per diluted
share, for the prior-year.
Acquisition of intY
On July 1, 2019, ScanSource announced the acquisition of intY
and its award-winning CASCADE cloud services distribution platform.
As an additional element of ScanSource’s cloud and digital
strategy, intY’s CASCADE solution provides ScanSource channel
partners with another route-to-market to enable key strategic cloud
services, including Microsoft, Symantec, and Acronis. Founded in
1997 and based in Bristol, UK, intY has 65 employees. The
acquisition closed on July 1, 2019, and the terms of the agreement
were not disclosed.
Plan to Divest Certain Businesses Outside of US, Canada and
Brazil
Earlier today, ScanSource announced plans to divest certain
businesses outside of the United States, Canada and Brazil (the
“Planned Divestitures”). ScanSource will continue to operate and
invest in its digital distribution business in these geographies,
including its recent acquisitions of intY, Canpango and Intelisys
Global. These plans are part of a strategic portfolio repositioning
to align investments with higher-growth, higher-margin businesses.
The Planned Divestitures, comprised of physical product businesses
in Europe, UK, Mexico, Colombia, Chile, Peru and the Miami-based
export operations, had net sales of $623 million for fiscal year
2019 and at June 30, 2019 had working capital of $205 million.
Forecast for Next Quarter
ScanSource is providing the forecast for next quarter, excluding
the Planned Divestitures. For the first quarter of fiscal year
2020, ScanSource expects GAAP net sales to range from $970 million
to $1.03 billion and non-GAAP net sales excluding the Planned
Divestitures to range from $830 million to $890 million. For the
first quarter of fiscal year 2020, ScanSource expects diluted
earnings per share to range from $0.47 to $0.52 and non-GAAP
diluted earnings per share to range from $0.70 to $0.75. Non-GAAP
diluted earnings per share exclude operating results for the
Planned Divestitures, amortization of intangible assets related to
acquisitions and change in fair value of contingent
consideration.
Webcast Details and CFO Commentary
At approximately 4:15 p.m. ET today, a CFO commentary, as a
supplement to this press release and the Company's conference call,
will be available on ScanSource's website, www.scansource.com
(Investor Relations section). ScanSource will present additional
information about its financial results and outlook in a conference
call today, August 20, 2019, at 5:00 p.m. ET. A webcast of the call
will be available for all interested parties and can be assessed at
www.scansource.com (Investor Relations section). The webcast will
be available for replay for 60 days.
Safe Harbor Statement
This press release contains “forward-looking” statements,
including the forecast of sales and earnings per share for next
quarter and plans to divest certain businesses outside of the US,
Canada and Brazil, that involve risks and uncertainties. Any number
of factors could cause actual results to differ materially from
anticipated or forecasted results, including, but not limited to,
changes in interest and exchange rates and regulatory regimes
impacting the Company's international operations, the impact of tax
reform laws, the failure of acquisitions to meet the Company's
expectations, the failure to manage and implement the Company's
organic growth strategy, credit risks involving the Company's
larger customers and vendors, termination of the Company's
relationship with key vendors or a significant modification of the
terms under which it operates with a key vendor, the decline in
demand for the products and services that the Company provides,
reduced prices for the products and services that the Company
provides due both to competitor and customer action, the Company's
ability to find a buyer for the Planned Divestitures on acceptable
terms or to otherwise dispose of the operations, changes in the
Company's operating strategy and other factors set forth in the
"Risk Factors" contained in the Company's annual report on Form
10-K for the year ended June 30, 2018, 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 understand and evaluate performance, including
comparisons from period to period. Non-GAAP results exclude
amortization of intangible assets related to acquisitions, change
in fair value of contingent consideration, acquisition costs,
restructuring costs and other non-GAAP adjustments.
Net sales on a constant currency basis, excluding acquisitions:
The Company discloses the percentage change in net sales excluding
the translation impact from changes in foreign currency exchange
rates between reporting periods and excluding the net sales from
acquisitions prior to the first full year from the acquisition
date. This measure enhances the comparability between periods to
help analyze underlying trends on an organic basis.
Non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net
income and non-GAAP diluted earnings per share: To evaluate current
period performance on a more consistent basis with prior periods,
the Company discloses non-GAAP operating income, non-GAAP pre-tax
income, non-GAAP net income and non-GAAP diluted earnings per share
(non-GAAP diluted "EPS"). These non-GAAP results exclude
amortization of intangible assets related to acquisitions, change
in the fair value of contingent consideration, acquisition costs,
restructuring costs and other non-GAAP adjustments. Non-GAAP
operating income, non-GAAP pre-tax income, non-GAAP net income, and
non-GAAP diluted EPS measures are useful in 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 correlates 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. ROIC is calculated as adjusted
EBITDA over invested capital. Adjusted earnings before interest
expense, income taxes, depreciation and amortization ("Adjusted
EBITDA") excludes the change in fair value of contingent
consideration and acquisition costs, in addition to other non-GAAP
adjustments. Invested capital is defined as average equity plus
average daily funded interest-bearing debt for the period.
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.
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 Supplementary
Information (Unaudited) below.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is at the center of the
technology solution delivery channel, connecting businesses and
providing solutions for their complex needs. ScanSource sells
through multiple, specialized routes-to-market with digital,
physical and services offerings from the world’s leading suppliers
of point-of-sale (POS), payments, barcode, physical security,
unified communications and collaboration, telecom and cloud
services. ScanSource enables its sales partners to create, deliver
and manage solutions for end-customers across almost every vertical
market. Founded in 1992 and headquartered in Greenville, South
Carolina, ScanSource was named one of the 2019 Best Places to Work
in South Carolina and on FORTUNE magazine’s 2019 List of World’s
Most Admired Companies. ScanSource ranks #643 on the Fortune 1000.
For more information, visit www.scansource.com.
ScanSource, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
(in thousands)
June 30, 2019
June 30, 2018
Assets
Current assets:
Cash and cash equivalents
$
23,818
$
25,530
Accounts receivable, less allowance of
$38,849 at June 30, 2019 and $45,561 at June 30, 2018
654,983
646,086
Inventories
697,343
595,948
Prepaid expenses and other current
assets
101,171
94,598
Total current assets
1,477,315
1,362,162
Property and equipment, net
63,363
73,042
Goodwill
319,538
298,174
Identifiable intangible assets, net
127,939
136,806
Deferred income taxes
24,724
22,199
Other non-current assets
54,382
52,912
Total assets
$
2,067,261
$
1,945,295
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable
$
558,101
$
562,564
Accrued expenses and other current
liabilities
91,407
90,873
Current portion of contingent
consideration
38,393
42,975
Income taxes payable
4,310
13,348
Short-term borrowings
4,590
—
Current portion of long-term debt
4,085
551
Total current liabilities
700,886
710,311
Deferred income taxes
1,395
1,769
Long-term debt, net of current portion
151,014
4,878
Borrowings under revolving credit
facility
200,817
244,000
Long-term portion of contingent
consideration
39,532
65,258
Other long-term liabilities
59,488
52,703
Total liabilities
1,153,132
1,078,919
Shareholders' equity:
Common stock
64,287
68,220
Retained earnings
939,930
882,333
Accumulated other comprehensive income
(loss)
(90,088
)
(84,177
)
Total shareholders' equity
914,129
866,376
Total liabilities and shareholders'
equity
$
2,067,261
$
1,945,295
ScanSource, Inc. and
Subsidiaries
Condensed Consolidated Income
Statements (Unaudited)
(in thousands, except per
share data)
Quarter ended June 30,
Fiscal year ended June
30,
2019
2018
2019
2018
Net sales
$
960,833
$
993,852
$
3,873,111
$
3,846,260
Cost of goods sold
850,969
880,503
3,420,539
3,410,135
Gross profit
109,864
113,349
452,572
436,125
Selling, general and administrative
expenses
77,952
76,834
314,521
297,475
Depreciation expense
3,201
3,252
13,155
13,311
Intangible amortization expense
5,024
5,056
19,732
20,657
Change in fair value of contingent
consideration
3,665
8,448
15,200
37,043
Operating income
20,022
19,759
89,964
67,639
Interest expense
3,966
2,494
13,382
9,149
Interest income
(447
)
(1,365
)
(1,843
)
(3,713
)
Other expense, net
265
587
517
1,278
Income before income taxes
16,238
18,043
77,908
60,925
Provision for income taxes
4,660
7,655
20,311
27,772
Net income
$
11,578
$
10,388
$
57,597
$
33,153
Per share data:
Net income per common share, basic
$
0.45
$
0.41
$
2.25
$
1.30
Weighted-average shares outstanding,
basic
25,627
25,577
25,642
25,522
Net income per common share, diluted
$
0.45
$
0.40
$
2.24
$
1.29
Weighted-average shares outstanding,
diluted
25,691
25,675
25,734
25,624
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Segment:
Quarter ended June 30,
2019
2018
% Change
Worldwide Barcode, Networking &
Security:
(in thousands)
Net sales, as reported
$
636,172
$
684,552
(7.1
)%
Foreign exchange impact (a)
7,199
—
Net sales, constant currency
(non-GAAP)
643,371
684,552
(6.0
)%
Less: Acquisitions
—
—
Net sales, constant currency excluding
acquisitions (non-GAAP)
$
643,371
$
684,552
(6.0
)%
Worldwide Communications &
Services:
Net sales, as reported
$
324,661
$
309,300
5.0
%
Foreign exchange impact (a)
7,489
—
Net sales, constant currency
(non-GAAP)
332,150
309,300
7.4
%
Less: Acquisitions
(2,042
)
—
Net sales, constant currency excluding
acquisitions (non-GAAP)
$
330,108
$
309,300
6.7
%
Consolidated:
Net sales, as reported
$
960,833
$
993,852
(3.3
)%
Foreign exchange impact (a)
14,688
—
Net sales, constant currency
(non-GAAP)
975,521
993,852
(1.8
)%
Less: Acquisitions
(2,042
)
—
Net sales, constant currency excluding
acquisitions (non-GAAP)
$
973,479
$
993,852
(2.0
)%
(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 June 30, 2019 into U.S. dollars using the average
foreign exchange rates for the quarter ended June 30, 2018.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Segment:
Fiscal year ended June
30,
Worldwide Barcode, Networking &
Security:
2019
2018
% Change
(in thousands)
Net sales, as reported
$
2,589,837
$
2,628,988
(1.5
)%
Foreign exchange impact (a)
33,318
—
Net sales, constant currency
2,623,155
2,628,988
(0.2
)%
Less: Acquisitions
(23,465
)
(14,553
)
Net sales, constant currency excluding
acquisitions
$
2,599,690
$
2,614,435
(0.6
)%
Worldwide Communications &
Services:
Net sales, as reported
$
1,283,274
$
1,217,272
5.4
%
Foreign exchange impact (a)
45,655
—
Net sales, constant currency
1,328,929
1,217,272
9.2
%
Less: Acquisitions
(7,261
)
—
Net sales, constant currency excluding
acquisitions
$
1,321,668
$
1,217,272
8.6
%
Consolidated:
Net sales, as reported
$
3,873,111
$
3,846,260
0.7
%
Foreign exchange impact (a)
78,973
—
Net sales, constant currency
3,952,084
3,846,260
2.8
%
Less: Acquisitions
(30,726
)
(14,553
)
Net sales, constant currency excluding
acquisitions
$
3,921,358
$
3,831,707
2.3
%
(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
year ended June 30, 2019 into U.S. dollars using the average
foreign exchange rates for the year ended June 30, 2018.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Geography:
Quarter ended June 30,
2019
2018
% Change
United States and Canada:
(in thousands)
Net sales, as reported
$
728,213
$
751,678
(3.1
)%
Less: Acquisitions
(2,042
)
—
Net sales, excluding acquisitions
(non-GAAP)
$
726,171
$
751,678
(3.4
)%
International:
Net sales, as reported
$
232,620
$
242,174
(3.9
)%
Foreign exchange impact (a)
14,688
—
Net sales, constant currency
(non-GAAP)
247,308
242,174
2.1
%
Less: Acquisitions
—
—
Net sales, constant currency excluding
acquisitions (non-GAAP)
$
247,308
$
242,174
2.1
%
Consolidated:
Net sales, as reported
$
960,833
$
993,852
(3.3
)%
Foreign exchange impact (a)
14,688
—
Net sales, constant currency
(non-GAAP)
975,521
993,852
(1.8
)%
Less: Acquisitions
(2,042
)
—
Net sales, constant currency excluding
acquisitions (non-GAAP)
$
973,479
$
993,852
(2.0
)%
(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 June 30, 2019 into U.S. dollars using the average
foreign exchange rates for the quarter ended June 30, 2018.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Geography:
Fiscal year ended June
30,
2019
2018
% Change
United States and Canada:
(in thousands)
Net sales, as reported
$
2,917,780
$
2,847,197
2.5
%
Less: Acquisitions
(30,726
)
(14,553
)
Net sales, excluding acquisitions
$
2,887,054
$
2,832,644
1.9
%
International:
Net sales, as reported
$
955,331
$
999,063
(4.4
)%
Foreign exchange impact (a)
78,973
—
Net sales, constant currency
1,034,304
999,063
3.5
%
Less: Acquisitions
—
—
Net sales, constant currency excluding
acquisitions
$
1,034,304
$
999,063
3.5
%
Consolidated:
Net sales, as reported
$
3,873,111
$
3,846,260
0.7
%
Foreign exchange impact (a)
78,973
—
Net sales, constant currency
3,952,084
3,846,260
2.8
%
Less: Acquisitions
(30,726
)
(14,553
)
Net sales, constant currency excluding
acquisitions
$
3,921,358
$
3,831,707
2.3
%
(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
year ended June 30, 2019 into U.S. dollars using the average
foreign exchange rates for the year ended June 30, 2018.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands, except per
share data)
Non-GAAP Financial Information:
Quarter ended June 30,
2019
Operating income
Pre-tax income
Net income
Diluted EPS
GAAP measure
$
20,022
$
16,238
$
11,578
$
0.45
Adjustments:
Amortization of intangible assets
5,024
5,024
3,802
0.15
Change in fair value of contingent
consideration
3,665
3,665
2,780
0.11
Acquisition costs (a)
230
230
230
0.01
Restructuring costs
483
483
342
0.01
Tax recovery, net
—
—
(387
)
(0.02
)
Non-GAAP measure
$
29,424
$
25,640
$
18,345
$
0.71
Quarter ended June 30,
2018
Operating income
Pre-tax income
Net income
Diluted EPS
GAAP measure
$
19,759
$
18,043
$
10,388
$
0.40
Adjustments:
Amortization of intangible assets
5,056
5,056
3,521
0.14
Change in fair value of contingent
consideration
8,448
8,448
5,679
0.22
Tax recovery and related interest
income
(2,466
)
(3,119
)
(2,058
)
(0.08
)
Tax reform charges
—
—
2,345
0.09
Non-GAAP measure
$
30,797
$
28,428
$
19,875
$
0.77
(a) Acquisition costs are generally
non-deductible for tax purposes.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands, except per
share data)
Non-GAAP Financial Information:
Fiscal year ended June 30,
2019
Operating income
Pre-tax income
Net income
Diluted EPS
GAAP measure
$
89,964
$
77,908
$
57,597
$
2.24
Adjustments:
Amortization of intangible assets
19,732
19,732
14,956
0.58
Change in fair value of contingent
consideration
15,200
15,200
11,294
0.44
Acquisition costs (a)
1,218
1,218
1,218
0.05
Restructuring costs
2,402
2,402
1,740
0.07
Tax recovery, net
—
—
(387
)
(0.02
)
Non-GAAP measure
$
128,516
$
116,460
$
86,418
$
3.36
Fiscal year ended June 30,
2018
Operating income
Pre-tax income
Net income
Diluted EPS
GAAP measure
$
67,639
$
60,925
$
33,153
$
1.29
Adjustments:
Amortization of intangible assets
20,657
20,657
14,021
0.55
Change in fair value of contingent
consideration
37,043
37,043
24,697
0.96
Acquisition costs (a)
172
172
172
0.01
Legal settlement, net of attorney fees
952
952
771
0.03
Tax recovery and related interest
income
(2,466
)
(3,119
)
(2,058
)
(0.08
)
Tax reform charges
—
—
9,034
0.35
Non-GAAP measure
$
123,997
$
116,630
$
79,790
$
3.11
(a) Acquisition costs are generally
non-deductible for tax purposes.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands, except
percentages)
Non-GAAP Financial Information:
Quarter ended June 30,
Fiscal year ended June
30,
2019
2018
2019
2018
Return on invested capital (ROIC),
annualized (a)
10.6
%
12.5
%
12.0
%
12.5
%
Reconciliation of
Net Income to Adjusted EBITDA
Net income (GAAP)
$
11,578
$
10,388
$
57,597
$
33,153
Plus: Interest expense
3,966
2,494
13,382
9,149
Plus: Income taxes
4,660
7,655
20,311
27,772
Plus: Depreciation and amortization
(b)
9,053
9,291
36,619
37,495
EBITDA (non-GAAP)
29,257
29,828
127,909
107,569
Adjustments:
Change in fair value of contingent
consideration
3,665
8,448
15,200
37,043
Acquisition costs
230
—
1,218
172
Restructuring costs (b)
483
—
2,267
—
Tax recovery and related interest
income
—
(3,119
)
—
(3,119
)
Legal settlement, net of attorney fees
—
—
—
952
Adjusted EBITDA (numerator for ROIC)
(non-GAAP)
$
33,635
$
35,157
$
146,594
$
142,617
Invested Capital
Calculation
Equity - beginning of the quarter
$
911,063
$
877,796
$
866,376
$
837,145
Equity - end of the quarter
914,129
866,376
914,129
866,376
Adjustments:
Change in fair value of contingent
consideration, net of tax
2,780
5,679
11,294
24,697
Acquisition costs
230
—
1,218
172
Restructuring costs, net of tax (b)
342
—
1,631
—
Tax recovery and related interest income,
net of tax
(387
)
(2,058
)
(387
)
(2,058
)
Tax reform charges
—
2,345
—
9,034
Legal settlement, net of attorney fees,
net of tax
—
—
—
771
Average equity
914,079
875,069
897,131
868,069
Average funded debt (c)
355,932
253,393
329,473
276,233
Invested capital (denominator for ROIC)
(non-GAAP)
$
1,270,011
$
1,128,462
$
1,226,604
$
1,144,302
(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) Accelerated depreciation expense on
certain European facilities in connection with restructuring in the
third quarter of fiscal 2019 are classified as depreciation expense
above rather that restructuring costs.
(c) Average funded debt is calculated as
the average daily amounts outstanding on short-term and long-term
interest-bearing debt.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands, except per
share data)
Non-GAAP Financial Information:
Forecast for Quarter ending
September 30, 2019
Range Low
Range High
GAAP net sales, reported
$
970,000
$
1,030,000
Adjustments:
Net sales for planned divestitures
(140,000
)
(140,000
)
Non-GAAP net sales, excluding planned
divestitures
$
830,000
$
890,000
GAAP diluted EPS
$
0.47
$
0.52
Adjustments:
Amortization of intangible assets
0.13
0.13
Change in fair value of contingent
consideration
0.05
0.05
Results of planned divestitures (a)
0.05
0.05
Non-GAAP diluted EPS
$
0.70
$
0.75
(a) Reflects operating results for planned
divestitures and does not include any non-cash charges from
write-downs or costs associated with a sale or liquidation of the
businesses and their assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190820005701/en/
Gerald Lyons Executive Vice President, Chief Financial Officer
ScanSource, Inc. (864) 286-4854 - or - Mary M. Gentry Vice
President, Treasurer and Investor Relations ScanSource, Inc. (864)
286-4892
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