TD SYNNEX (NYSE: SNX) today announced financial results for the
fiscal fourth quarter and fiscal year ended November 30, 2021.
Q4
FY21
Q4
FY20
Net
change
Revenue ($M)
$
15,611
$
6,119
155.1%
Operating income ($M)
$
185.4
$
200.4
-7.5%
Non-GAAP operating income
($M)(1)
$
407.9
$
220.6
84.9%
Operating margin
1.19
%
3.27
%
-208 bps
Non-GAAP operating margin(1)
2.61
%
3.61
%
-100 bps
Income from continuing operations
($M)
$
119.4
$
130.1
-8.2%
Non-GAAP income from continuing
operations ($M)(1)
$
275.8
$
146.5
88.2%
Diluted EPS from continuing
operations
$
1.24
$
2.51
-50.6%
Non-GAAP Diluted EPS from
continuing operations(1)
$
2.86
$
2.82
1.4%
“Fiscal Q4 represents our first 90 days together as TD SYNNEX.
The team responded to the ongoing supply chain challenges with an
unwavering focus, strong execution and collaboration, leading to
results ahead of expectations,” said Rich Hume, CEO of TD SYNNEX.
“The potential of this company is significant, and we look forward
to accelerating growth and value for our customers and partners
across the ecosystem, while also making progress on our integration
and strategic initiatives.”
Fiscal 2021 Fourth Quarter Highlights
- Revenue was $15.6 billion, up 155.1% from the prior fiscal
fourth quarter primarily due to the impact of the completion of the
merger with Tech Data on September 1, 2021. Operating income was
$185 million, compared to $200 million, in the prior fiscal fourth
quarter. Non-GAAP operating income was $408 million, in fiscal year
fourth quarter 2021, compared to $221 million, in the prior fiscal
fourth quarter.
- The trailing fiscal four quarters Return on Invested Capital
(“ROIC”) was 13.1% compared to 14.6% in the prior fiscal year
fourth quarter. The adjusted trailing fiscal four quarters ROIC was
16.0%.
- Cash generated from operations was $561 million for the
quarter.
- Prior period financial results of Concentrix (earlier “customer
experience services” business of SYNNEX) are excluded from income
from continuing operations and presented as discontinued
operations.
FY21
FY20
Net
change
Revenue ($M)
$
31,614
$
19,977
58.3%
Operating income ($M)
$
623.2
$
521.3
19.5%
Non-GAAP operating income
($M)(1)
$
902.1
$
586.5
53.8%
Operating margin
1.97
%
2.61
%
-64 bps
Non-GAAP operating margin(1)
2.85
%
2.94
%
-9 bps
Income from continuing operations
($M)
$
395.1
$
334.5
18.1%
Non-GAAP income from continuing
operations ($M)(1)
$
595.7
$
382.4
55.8%
Diluted EPS from continuing
operations
$
6.24
$
6.46
-3.4%
Non-GAAP Diluted EPS from
continuing operations(1)
$
9.40
$
7.38
27.4%
Fiscal 2021 Highlights
- Revenue was $31.6 billion, up 58.3% from the prior fiscal year.
Operating income was $623 million, compared to $521 million, in the
prior fiscal year. Non-GAAP operating income was $902 million, in
fiscal year 2021, compared to $587 million, in the prior fiscal
year.
- Cash generated from operations was $810 million for the
year.
The following statements are based on TD SYNNEX’ current
expectations for the fiscal 2022 first quarter and full fiscal year
2022. Non-GAAP financial measures exclude the impact of
acquisition, integration and restructuring costs, amortization of
intangible assets, share-based compensation, purchase accounting
adjustments, and the related tax effects thereon. These statements
are forward-looking and actual results may differ materially.
First Quarter Fiscal 2022 Outlook
- Revenue is expected to be in the range of $14.75 billion to
$15.75 billion.
- Net income is expected to be in the range of $74 million to
$134 million and on a non-GAAP basis, net income is expected to be
in the range of $245 million to $275 million.
- Diluted earnings per share is expected to be in the range of
$0.77 to $1.39 and on a non-GAAP basis, diluted earnings per share
is expected to be in the range of $2.55 to $2.85, based on
estimated outstanding diluted weighted average shares of 95.9
million.
Full Year Fiscal 2022 Outlook
- Diluted earnings per share is expected to be in the range of
$4.83 to $5.90 and on a non-GAAP basis, diluted earnings per share
is expected to be in the range of $10.80 to $11.20, based on
estimated outstanding diluted weighted average shares of 95.9
million. This result represents non-GAAP earnings per share
accretion of 30% from legacy SYNNEX standalone results, improved
from the initial expectation of 25% at the time of the merger
announcement.
Capital Allocation
We are committed to maintaining our investment grade credit
ratings, and over the next two to three years, expect to return
approximately 50% of our free cash flow to shareholders, balanced
between dividends and share repurchases. Our existing $400 million
share repurchase authorization remains in place and available for
our use.
TD SYNNEX announced today that its Board of Directors declared a
quarterly cash dividend of $0.30 per common share, an increase of
50% over the prior quarter. The dividend is payable on January 28,
2022 to stockholders of record as of the close of business on
January 21, 2022.
Conference Call and Webcast
TD SYNNEX will host a conference call today to discuss the
fiscal 2021 fourth quarter results at 6:00 AM (PT)/9:00 AM
(ET).
A live audio webcast of the earnings call will be accessible at
ir.synnex.com and a replay of the webcast will be available
following the call.
About TD SYNNEX
TD SYNNEX (NYSE: SNX) is a leading global distributor and
solutions aggregator for the IT ecosystem. We’re an innovative
partner helping more than 150,000 customers in 100+ countries to
maximize the value of technology investments, demonstrate business
outcomes and unlock growth opportunities. Headquartered in
Clearwater, Florida, and Fremont, California, TD SYNNEX’ 22,000
co-workers are dedicated to uniting compelling IT products,
services and solutions from 1,500+ best-in-class technology
vendors. Our edge-to-cloud portfolio is anchored in some of the
highest-growth technology segments including cloud, cybersecurity,
big data/analytics, IoT, mobility and everything as a service. TD
SYNNEX is committed to serving customers and communities, and we
believe we can have a positive impact on our people and our planet,
intentionally acting as a respected corporate citizen. We aspire to
be a diverse and inclusive employer of choice for talent across the
IT ecosystem. For more information, visit TDSYNNEX.com.
(1)Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance
with GAAP, TD SYNNEX also uses adjusted selling, general and
administrative expenses, non-GAAP operating income, non-GAAP
operating margin, non-GAAP income from continuing operations,
non-GAAP net income, and non-GAAP diluted earnings per share, which
are non-GAAP financial measures that exclude acquisition,
integration and restructuring costs, the amortization of intangible
assets, share-based compensation expense, purchase accounting
adjustments and the related tax effects thereon. The Company also
uses adjusted earnings before interest, taxes, depreciation and
amortization (“Adjusted EBITDA”) which excludes other income
(expense), net, acquisition, integration and restructuring costs,
share-based compensation expense, purchase accounting adjustments
and income from discontinued operations. In prior periods, TD
SYNNEX has excluded other items relevant to those periods for
purposes of its non-GAAP financial measures.
Acquisition, integration and restructuring costs typically
consist of acquisition, integration, restructuring and divestiture
related costs and are expensed as incurred. These expenses
primarily represent costs for legal, banking, consulting and
advisory services, and debt extinguishment fees. From time to time,
this category may also include transaction-related gains/losses on
divestitures/spin-off of businesses.
TD SYNNEX’ acquisition activities have resulted in the
recognition of intangible assets which consist primarily of
customer relationships, vendor lists and trade names.
Definite-lived intangible assets are amortized over their estimated
useful lives and are tested for impairment when events indicate
that the carrying value may not be recoverable. The amortization of
intangible assets is reflected in the Company’s statements of
operations. Although intangible assets contribute to the Company’s
revenue generation, the amortization of intangible assets does not
directly relate to the sale of the Company’s products.
Additionally, intangible asset amortization expense typically
fluctuates based on the size and timing of the Company’s
acquisition activity. Accordingly, the Company believes excluding
the amortization of intangible assets, along with the other
non-GAAP adjustments which neither relate to the ordinary course of
the Company’s business nor reflect the Company’s underlying
business performance, enhances the Company’s and investors’ ability
to compare the Company’s past financial performance with its
current performance and to analyze underlying business performance
and trends. Intangible asset amortization excluded from the related
non-GAAP financial measure represents the entire amount recorded
within the Company’s GAAP financial statements, and the revenue
generated by the associated intangible assets has not been excluded
from the related non-GAAP financial measure. Intangible asset
amortization is excluded from the related non-GAAP financial
measure because the amortization, unlike the related revenue, is
not affected by operations of any particular period unless an
intangible asset becomes impaired or the estimated useful life of
an intangible asset is revised.
Share-based compensation expense is a non-cash expense arising
from the grant of equity awards to employees based on the estimated
fair value of those awards. Although share-based compensation is an
important aspect of the compensation of our employees, the fair
value of the share-based awards may bear little resemblance to the
actual value realized upon the vesting or future exercise of the
related share-based awards and the expense can vary significantly
between periods as a result of the timing of grants of new
stock-based awards, including grants in connection with
acquisitions. Given the variety and timing of awards and the
subjective assumptions that are necessary when calculating
share-based compensation expense, TD SYNNEX believes this
additional information allows investors to make additional
comparisons between our operating results from period to
period.
Purchase accounting adjustments are primarily related to the
impact of purchase accounting on the recognition of certain
consideration received from vendors related to the merger with Tech
Data.
Trailing fiscal four quarters ROIC is defined as the last four
quarters’ tax effected operating income divided by the average of
the last five quarterly balances of borrowings (excluding book
overdraft) and equity, net of cash. Adjusted ROIC is calculated by
excluding the tax effected impact of non-GAAP adjustments from
operating income and by excluding the cumulative tax effected
impact of current and prior period non-GAAP adjustments on
equity.
TD SYNNEX also uses free cash flow, which is cash flow from
operating activities, reduced by purchases of property and
equipment. TD SYNNEX uses free cash flow to conduct and evaluate
its business because, although it is similar to cash flow from
operations, TD SYNNEX believes it is an additional useful measure
of cash flows since purchases of fixed assets are a necessary
component of ongoing operations. Free cash flow reflects an
additional way of viewing TD SYNNEX’ liquidity that, when viewed
with its GAAP results, provides a more complete understanding of
factors and trends affecting its cash flows. Free cash flow has
limitations due to the fact that it does not represent the residual
cash flow available for discretionary expenditures. For example,
free cash flow does not incorporate payments for business
acquisitions. Therefore, TD SYNNEX believes it is important to view
free cash flow as a complement to its entire consolidated
statements of cash flows.
TD 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. These non-GAAP measures are intended to
provide investors with an understanding of TD SYNNEX’ operational
results and trends that more readily enable investors to analyze TD
SYNNEX’ base financial and operating performance and to facilitate
period-to-period comparisons and analysis of operational trends, as
well as for planning and forecasting in future periods. Management
believes these 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. As 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 TD SYNNEX’
consolidated financial statements prepared in accordance with GAAP.
A reconciliation of TD SYNNEX’ GAAP to non-GAAP financial
information is set forth in the supplemental tables at the end of
this press release.
Safe Harbor Statement
Statements in this news release regarding TD SYNNEX that 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 forward-looking
statements include, but are not limited to, statements regarding
strategies and objectives of TD SYNNEX for future operations; our
expectations and outlook for the fiscal 2022 first quarter as to
revenue, net income, non-GAAP net income, diluted earnings per
share, non-GAAP diluted earnings per share, and outstanding diluted
weighted average shares; our expectations and outlook for the full
year fiscal 2022 as to diluted earnings per share, non-GAAP diluted
earnings per share, and outstanding diluted weighted average
shares; and the anticipated benefits of the non-GAAP financial
measures.
The forward-looking statements 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: the risk that
the legacy SYNNEX and legacy Tech Data businesses will not be
integrated successfully or realize the anticipated benefits of the
combined company; new or ongoing effects of the COVID-19 pandemic;
the unfavorable outcome of any legal proceedings that have been or
may be instituted against us; the ability to retain key personnel;
general economic conditions and any weakness in information
technology and consumer electronics spending; 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; the declaration, timing and payment of
dividends, and the Board’s reassessment thereof; and other risks
and uncertainties detailed in our Form 10-K for the fiscal year
ended November 30, 2020 and subsequent SEC filings. Statements
included in this press release are based upon information known to
TD SYNNEX as of the date of this release, and TD SYNNEX assumes no
obligation to update information contained in this press
release.
Copyright 2022 TD SYNNEX CORPORATION. All rights
reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX
company, product and services names and slogans are trademarks or
registered trademarks of TD SYNNEX Corporation. Other names and
marks are the property of their respective owners.
TD SYNNEX Corporation
Consolidated Balance
Sheets
(currency and share amounts in
thousands, except par value)
(Amounts may not add due to
rounding)
(unaudited)
November 30, 2021
November 30, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
993,973
$
1,412,016
Accounts receivable, net
8,310,032
2,791,703
Receivables from vendors, net
1,118,963
286,327
Inventories
6,642,915
2,684,076
Other current assets
668,261
173,940
Current assets of discontinued
operations
—
1,421,065
Total current assets
17,734,144
8,769,127
Property and equipment, net
483,443
157,645
Goodwill
3,917,276
423,885
Intangible assets, net
4,913,124
186,047
Other assets, net
618,393
177,706
Noncurrent assets of discontinued
operations
—
3,754,180
Total assets
$
27,666,380
$
13,468,590
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current
$
181,256
$
124,958
Accounts payable
12,034,946
3,751,240
Other accrued liabilities
2,017,253
768,054
Current liabilities of discontinued
operations
—
985,840
Total current liabilities
14,233,455
5,630,092
Long-term borrowings
3,955,176
1,496,700
Other long-term liabilities
556,134
130,296
Deferred tax liabilities
1,015,640
5,836
Noncurrent liabilities of discontinued
operations
—
1,866,807
Total liabilities
19,760,405
9,129,730
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000
shares authorized, no shares issued or outstanding
—
—
Common stock, $0.001 par value, 200,000
shares authorized, 98,204 and 53,671 shares issued as of November
30, 2021 and 2020, respectively
98
54
Additional paid-in capital
7,271,337
1,591,536
Treasury stock, 2,633 and 2,538 shares as
of November 30, 2021 and 2020, respectively
(201,139
)
(191,216
)
Accumulated other comprehensive loss
(336,194
)
(194,571
)
Retained earnings
1,171,873
3,133,058
Total stockholders' equity
7,905,975
4,338,860
Total liabilities and equity
$
27,666,380
$
13,468,590
TD SYNNEX Corporation
Consolidated Statements of
Operations
(currency and share amounts in
thousands, except per share amounts)
(Amounts may not add due to
rounding)
(unaudited)
Three Months Ended
Fiscal Year Ended
November 30,
2021
November 30,
2020
November 30,
2021
November 30,
2020
Revenue
$
15,611,266
$
6,118,836
$
31,614,169
$
19,977,150
Cost of revenue
(14,668,096
)
(5,752,179
)
(29,724,635
)
(18,783,292
)
Gross profit
943,170
366,657
1,889,534
1,193,858
Acquisition, integration and restructuring
costs
(102,086
)
(5,782
)
(112,150
)
(7,414
)
Selling, general and administrative
expenses
(655,719
)
(160,495
)
(1,154,166
)
(665,102
)
Operating income
185,365
200,380
623,218
521,341
Interest expense and finance charges,
net
(86,066
)
(19,491
)
(157,835
)
(79,023
)
Other income (expense), net
(1,608
)
(5,167
)
1,102
(6,172
)
Income from continuing operations before
income taxes
97,691
175,721
466,485
436,146
Benefit (provision) for income taxes
21,749
(45,586
)
(71,416
)
(101,609
)
Income from continuing operations
119,440
130,135
395,069
334,538
Income from discontinued operations, net
of taxes
—
85,017
—
194,622
Net Income
$
119,440
$
215,152
$
395,069
$
529,160
Earnings per common share:
Basic
Continuing operations
$
1.24
$
2.52
$
6.28
$
6.50
Discontinued operations
—
1.65
—
3.78
Net income
$
1.24
$
4.17
$
6.28
$
10.28
Diluted
Continuing operations
$
1.24
$
2.51
$
6.24
$
6.46
Discontinued operations
—
1.64
—
3.76
Net income
$
1.24
$
4.14
$
6.24
$
10.21
Weighted-average common shares
outstanding:
Basic
95,464
51,048
62,239
50,900
Diluted
95,873
51,432
62,698
51,237
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(currency in
thousands)
(Amounts may not add due to
rounding)
Three Months Ended
Fiscal Year Ended
November 30,
2021
November 30,
2020
November 30,
2021
November 30,
2020
Selling, general and administrative
expenses
GAAP selling, general and administrative
expenses
$
757,805
$
166,277
$
1,266,316
$
672,516
Acquisition, integration and restructuring
costs
102,082
5,782
112,150
7,414
Amortization of intangibles
77,204
10,018
105,332
40,148
Share-based compensation
14,932
4,410
33,078
17,631
Purchase accounting adjustments
4,876
—
4,876
—
Adjusted selling, general and
administrative expenses
$
558,711
$
146,067
$
1,010,880
$
607,323
Three Months Ended
Fiscal Year Ended
November 30,
2021
November 30,
2020
November 30,
2021
November 30,
2020
Operating income and Operating
margin
Consolidated
Revenue
$
15,611,266
$
6,118,836
$
31,614,169
$
19,977,150
GAAP operating income
$
185,365
$
200,380
$
623,218
$
521,341
Acquisition, integration and restructuring
costs
102,082
5,782
112,150
7,414
Amortization of intangibles
77,204
10,018
105,332
40,148
Share-based compensation
14,932
4,410
33,078
17,631
Purchase accounting adjustments
28,353
—
28,353
—
Non-GAAP operating income
$
407,936
$
220,590
$
902,131
$
586,534
GAAP operating margin
1.19
%
3.27
%
1.97
%
2.61
%
Non-GAAP operating margin
2.61
%
3.61
%
2.85
%
2.94
%
Three Months Ended
Fiscal Year Ended
November 30,
2021
November 30,
2020
November 30,
2021
November 30,
2020
Adjusted EBITDA
Net income
$
119,440
$
215,152
$
395,069
$
529,160
Interest expense and finance charges,
net
86,066
19,491
157,835
79,023
(Benefit) provision for income taxes
(21,749
)
45,586
71,416
101,609
Depreciation
27,432
7,273
44,232
24,923
Amortization of intangibles
77,204
10,018
105,332
40,148
EBITDA
$
288,393
$
297,520
$
773,884
$
774,863
Other (income) expense, net
1,608
5,167
(1,102
)
6,172
Acquisition, integration and restructuring
costs
102,082
8,035
112,150
9,667
Share-based compensation
14,932
4,410
33,078
17,631
Purchase accounting adjustments
28,353
—
28,353
—
Income from discontinued operations
—
(85,017
)
—
(194,622
)
Adjusted EBITDA
$
435,368
$
230,115
$
946,363
$
613,711
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(currency and share amounts in
thousands, except per share amounts)
(Amounts may not add due to
rounding)
(continued)
Three Months Ended
Fiscal Year Ended
November 30,
2021
November 30,
2020
November 30,
2021
November 30,
2020
Income from continuing
operations
Income from continuing operations
$
119,440
$
130,135
$
395,069
$
334,538
Acquisition, integration and restructuring
costs
146,001
8,035
159,194
9,667
Amortization of intangibles
77,204
10,018
105,332
40,148
Share-based compensation
14,932
4,410
33,078
17,631
Purchase accounting adjustments
28,353
—
28,353
—
Income taxes related to the above
(65,184
)
(6,056
)
(80,375
)
(19,557
)
Income tax capital loss carryback
(44,968
)
—
(44,968
)
—
Non-GAAP income from continuing
operations
$
275,778
$
146,542
$
595,683
$
382,427
Diluted earnings per common share
("EPS")(1)
Income from continuing operations
$
119,440
$
130,135
$
395,069
$
334,538
Less: income from continuing operations
allocated to participating securities
(825
)
(1,243
)
(4,018
)
(3,736
)
Income from continuing operations
attributable to common stockholders
118,615
128,892
391,051
330,802
Acquisition, integration and restructuring
costs attributable to common stockholders
144,947
7,958
157,568
9,562
Amortization of intangibles attributable
to common stockholders
76,646
9,922
104,256
39,712
Share-based compensation attributable to
common stockholders
14,824
4,368
32,740
17,440
Purchase accounting adjustments
attributable to common stockholders
28,148
—
28,063
—
Income taxes related to the above
attributable to common stockholders
(64,713
)
(5,998
)
(79,554
)
(19,345
)
Income tax capital loss carryback
attributable to common stockholders
(44,643
)
—
(44,509
)
—
Non-GAAP income from continuing operations
attributable to common stockholders
$
273,824
$
145,142
$
589,616
$
378,172
Weighted-average number of common shares -
diluted:
95,873
51,432
62,698
51,237
Diluted EPS from continuing
operations(1)
$
1.24
$
2.51
$
6.24
$
6.46
Acquisition, integration and restructuring
costs
1.51
0.15
2.51
0.19
Amortization of intangibles
0.80
0.19
1.66
0.78
Share-based compensation
0.15
0.08
0.52
0.34
Purchase accounting adjustments
0.29
—
0.45
—
Income taxes related to the above
(0.67
)
(0.12
)
(1.27
)
(0.38
)
Income tax capital loss carryback
(0.47
)
—
(0.71
)
—
Non-GAAP Diluted EPS from continuing
operations(1)
$
2.86
$
2.82
$
9.40
$
7.38
TD SYNNEX Corporation
Reconciliation of GAAP to
Non-GAAP financial measures
(Amounts may not add due to
rounding)
(continued)
Three Months Ended
Fiscal Year Ended
(Currency in thousands)
November 30,
2021
November 30,
2020
November 30,
2021
November 30,
2020
Net cash provided by operating activities
[Continuing operations]
$
560,993
$
219,198
$
809,787
$
1,378,925
Purchases of property and equipment
[Continuing operations]
(40,781
)
(5,534
)
(54,892
)
(26,633
)
Free cash flow [Continuing operations]
$
520,211
$
213,664
$
754,895
$
1,352,292
Forecast
Three Months Ending February
28, 2022
(Amounts in millions, except per share
amounts)
Low
High
Net income
$
74
$
134
Acquisition, integration and restructuring
costs
100
80
Amortization of intangibles
85
75
Share-based compensation
8
8
Purchase accounting adjustments(2)
35
25
Income taxes related to the above
(57
)
(47
)
Non-GAAP net income
$
245
$
275
Diluted EPS(1)
$
0.77
$
1.39
Acquisition, integration and restructuring
costs
1.04
0.83
Amortization of intangibles
0.88
0.78
Share-based compensation
0.08
0.08
Purchase accounting adjustments(2)
0.36
0.26
Income taxes related to the above
(0.59
)
(0.49
)
Non-GAAP Diluted EPS
$
2.55
$
2.85
Forecast
Fiscal Year Ending November
30, 2022
Low
High
Diluted EPS(1)
$
4.83
$
5.90
Acquisition, integration and restructuring
costs
2.76
2.35
Amortization of intangibles
3.42
3.21
Share-based compensation
0.43
0.38
Purchase accounting adjustments(2)
1.24
1.04
Income taxes related to the above
(1.89
)
(1.67
)
Non-GAAP Diluted EPS
$
10.80
$
11.20
(1) Diluted EPS is calculated using the two-class method.
Unvested restricted stock awards granted to employees are
considered participating securities. For purposes of calculating
Diluted EPS, income from continuing operations allocated to
participating securities was approximately 0.7% and 1.0% of income
from continuing operations for the three months ended November 30,
2021 and 2020, and approximately 1.0% and 1.1% of income from
continuing operations for the years ended November 30, 2021 and
2020, respectively. Net income allocable to participating
securities is estimated to be approximately 0.7% of the forecast
Net income for the three months ending February 28, 2022 and the
fiscal year ending November 30, 2022.
(2) Purchase accounting adjustments are primarily related to
certain consideration received from vendors.
TD SYNNEX Corporation
Calculation of Financial
Metrics
(currency in
thousands)
(Amounts may not add or
compute due to rounding)
Return on Invested Capital
("ROIC")
November 30, 2021
November 30, 2020
ROIC
Operating income (trailing fiscal four
quarters)
$
623,218
$
521,342
Income taxes on operating income(1)
(95,415
)
(120,378
)
Operating income after taxes
$
527,803
$
400,964
Total invested capital comprising equity
and borrowings, less cash (last five quarters average)(2)
$
4,015,586
$
2,751,296
ROIC
13.1
%
14.6
%
Adjusted ROIC
Non-GAAP operating income (trailing fiscal
four quarters)
$
902,131
$
586,535
Income taxes on Non-GAAP operating
income(1)
(223,999
)
(140,065
)
Non-GAAP operating income after taxes
$
678,132
$
446,470
Total invested capital comprising equity
and borrowings, less cash (last five quarters average)(2)
$
4,015,586
$
2,751,296
Tax effected impact of cumulative non-GAAP
adjustments (last five
quarters average)
212,535
128,989
Total Non-GAAP invested capital (last five
quarters average)(2)
$
4,228,121
$
2,880,285
Adjusted ROIC
16.0
%
15.5
%
(1) Income taxes on GAAP operating income was calculated using
the effective year-to-date tax rates during the respective periods.
Income taxes on non-GAAP operating income was calculated by
excluding the tax effect of taxable and deductible non-GAAP
adjustments using the effective year-to-date tax rate during the
respective periods.
(2) Invested capital for the fiscal quarters preceding the
quarter ended February 28, 2021 are based on pro forma presentation
to reflect the separation of the Company’s erstwhile Concentrix
reportable segment into an independent public company on December
1, 2020.
TD SYNNEX Corporation
Calculation of Financial
Metrics
(currency in
thousands)
(Amounts may not add or
compute due to rounding)
(continued)
Cash Conversion Cycle
Three Months Ended
November 30,
2021
November 30,
2020
Days sales outstanding
Revenue
(a)
$
15,611,266
$
6,118,836
Accounts receivable, net
(b)
8,310,032
2,791,703
Days sales outstanding
(c) = (b)/((a)/the number of days
during the period)
48
42
Days inventory outstanding
Cost of revenue
(d)
$
14,668,096
$
5,752,179
Inventories
(e)
6,642,915
2,684,076
Days inventory outstanding
(f) = (e)/((d)/the number of days
during the period)
41
42
Days payable outstanding
Cost of revenue
(g)
$
14,668,096
$
5,752,179
Accounts payable
(h)
12,034,946
3,751,240
Days payable outstanding
(i) = (h)/((g)/the number of days
during the period)
75
59
Cash conversion cycle
(j) = (c)+(f)-(i)
14
25
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220110006116/en/
Liz Morali Investor Relations 510-668-8436 ir@synnex.com
Bobby Eagle Global Corporate Communications 727-538-5864
bobby.eagle@techdata.com
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