FREMONT, Calif., Jan. 9,
2018 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading
business process services company, today announced financial
results for the fiscal fourth quarter and fiscal year ended
November 30, 2017.
|
Q4
FY17
|
Q4
FY16
|
Net
change
|
Revenue
($M)
|
$5,312
|
$3,887
|
36.7%
|
Operating income
($M)
|
$159.9
|
$130.6
|
22.4%
|
Non-GAAP operating
income ($M)(1)
|
$192.9
|
$156.1
|
23.6%
|
Operating
margin
|
3.01%
|
3.36%
|
(35) bps
|
Non-GAAP operating
margin(1)
|
3.63%
|
4.02%
|
(39) bps
|
Net income
attributable to SYNNEX Corporation ($M)
|
$91.1
|
$85.3
|
6.7%
|
Non-GAAP net income
attributable to SYNNEX Corporation
($M)(1)
|
$112.4
|
$102.9
|
9.2%
|
Diluted
EPS
|
$2.26
|
$2.13
|
6.1%
|
Non-GAAP Diluted
EPS(1)
|
$2.79
|
$2.57
|
8.6%
|
|
(1) Non-GAAP
financial measures exclude the impact of acquisition-related and
integration expenses, the amortization of intangible assets and the
related tax effects thereon. A reconciliation of GAAP to Non-GAAP
financial information is presented in the supplementary information
section at the end of this press release.
|
"Our record financial performance continued in the fourth
quarter, driven by strong demand in both segments. The
organic investments and strategic acquisitions we made throughout
2017 enhanced our capabilities and offerings and enabled us to grow
market share," said Kevin Murai,
President and Chief Executive Officer.
Fiscal 2017 Fourth Quarter Highlights:
- Technology Solutions: Revenue was $4.8 billion, up 41.0% from the prior fiscal year
quarter. Adjusting for the Westcon-Comstor acquisition and the
translation effect of foreign currencies, the Technology Solutions
business grew by 22.0% over the prior year. Technology Solutions
generated operating income of $112.2
million, or 2.35% of segment revenue, compared to
$92.6 million, or 2.73% of segment
revenue, in the fiscal fourth quarter of 2016. Non-GAAP operating
income was $128.2 million, or 2.68%
of segment revenue, in the fiscal fourth quarter of 2017, compared
to $93.3 million, or 2.75% of segment
revenue, in the fiscal fourth quarter of 2016.
- Concentrix: Revenue was $534.4
million, an increase of 6.8% over the fiscal fourth quarter
of the prior year. Adjusting for the translation effect of foreign
currencies, Concentrix revenue increased by 5.8% over the prior
year. Operating income was $47.6
million, or 8.91% of segment revenue, compared to
$38.0 million, or 7.60% of segment
revenue in the prior fiscal year quarter. Non-GAAP operating income
was $64.7 million, or 12.11% of
segment revenue, in the fiscal fourth quarter of 2017, compared to
$62.8 million, or 12.55% of segment
revenue, in the fiscal fourth quarter of 2016.
- The trailing fiscal four quarters Return on Invested Capital
("ROIC") was 10.3% consistent with the prior fiscal year fourth
quarter. The adjusted trailing fiscal four quarters ROIC was
11.3%.
- The debt to capitalization ratio was 45.9%, up from 32.7% in
the prior fiscal year fourth quarter, primarily as a result of the
Westcon-Comstor acquisition.
- Depreciation and amortization were $21.6
million and $29.9 million,
respectively.
- Cash generated from operations was approximately $250 million for the quarter.
|
FY17
|
FY16
|
Net
change
|
Revenue
($M)
|
$17,046
|
$14,062
|
21.2%
|
Operating income
($M)
|
$509.0
|
$379.6
|
34.1%
|
Non-GAAP operating
income ($M)(1)
|
$592.9
|
$449.7
|
31.8%
|
Operating
margin
|
2.99%
|
2.70%
|
29 bps
|
Non-GAAP operating
margin(1)
|
3.48%
|
3.20%
|
28 bps
|
Net income
attributable to SYNNEX Corporation ($M)
|
$301.2
|
$234.9
|
28.2%
|
Non-GAAP net income
attributable to SYNNEX Corporation
($M)(1)
|
$355.6
|
$281.2
|
26.4%
|
Diluted
EPS
|
$7.51
|
$5.88
|
27.7%
|
Non-GAAP Diluted
EPS(1)
|
$8.86
|
$7.04
|
25.9%
|
|
(1) Non-GAAP
financial measures exclude the impact of acquisition-related and
integration expenses, restructuring costs, the amortization of
intangible assets and the related tax effects thereon. A
reconciliation of GAAP to Non-GAAP financial information is
presented in the supplementary information section at the end of
this press release.
|
Fiscal 2017 Highlights:
- Technology Solutions: Revenue was $15.1 billion, up 20.7% from the prior fiscal
year. Adjusting for the Westcon-Comstor acquisition and the
translation effect of foreign currencies, the Technology Solutions
business grew by 15.5% over the prior fiscal year. Technology
Solutions operating income was $394.3
million, or 2.62% of segment revenue compared to
$315.5 million, or 2.53% of segment
revenue, in fiscal 2016. Non-GAAP operating income was $413.0 million, or 2.74% of segment revenue, in
fiscal 2017, compared to $318.1
million, or 2.55% of segment revenue, in fiscal 2016.
- Concentrix: Revenue was $2.0
billion, an increase of 25.3% over the prior fiscal year.
Adjusting for the translation effect of foreign currencies,
Concentrix revenue grew 25.5% over the prior fiscal year. Operating
income was $114.6 million, or 5.76%
of segment revenue, compared to $63.9
million, or 4.02% of segment revenue in the prior fiscal
year. Non-GAAP operating income was $179.9
million, or 9.04% of segment revenue, in fiscal 2017,
compared to $131.4 million, or 8.27%
of segment revenue, in fiscal 2016.
- Depreciation and amortization were $80.7
million and $79.2 million,
respectively.
- Cash generated from operations was approximately $170 million for the year.
Fiscal 2018 First Quarter Outlook:
The following statements are based on SYNNEX's current
expectations for the fiscal 2018 first quarter. Non-GAAP financial
measures exclude the impact of acquisition-related and integration
expenses, the amortization of intangibles and the related tax
effects thereon. These statements are forward-looking and actual
results may differ materially.
- Revenue is expected to be in the range of $4.35 billion to $4.55
billion.
- Net income is expected to be in the range of $64.0 million to $67.8
million and on a Non-GAAP basis, net income is expected to
be in the range of $83.2 million to
$87.0 million.
- Diluted earnings per share is expected to be in the range of
$1.58 to $1.68 and on a Non-GAAP basis, diluted earnings
per share is expected to be in the range of $2.06 to $2.15.
- After-tax amortization of intangibles is expected to be
$19.2 million, or $0.48 per share.
- The tax rate is expected to be in the range of 30% to 31%.
Dividend Announcement
SYNNEX announced today that its Board of Directors declared a
quarterly cash dividend of $0.35 per
common share. The dividend is payable on January 31, 2018 to stockholders of record as of
the close of business on January 19,
2018. The SYNNEX Board of Directors will assess the dividend
on an annual basis each January. In addition to the increased
dividend, SYNNEX expects that the anticipated benefit associated
with the 2017 US tax reform law will be utilized for business
investment and debt reduction.
Conference Call and Webcast
SYNNEX will be discussing its financial results and outlook on a
conference call today at 2:00 p.m.
(PT). A webcast of the call will be available at
http://ir.synnex.com. The conference call will also be available
via telephone by dialing (800) 369-1162 in North America or (415) 228-5007 outside North
America. The passcode for the call is "SNX." A replay of the
webcast will be available at http://ir.synnex.com approximately two
hours after the conference call has concluded where it will be
archived for one year.
About SYNNEX Corporation
SYNNEX Corporation (NYSE:SNX) is a Fortune 500 corporation and a
leading business process services company, providing a
comprehensive range of distribution, logistics and integration
services for the technology industry and providing outsourced
services focused on customer engagement strategy to a broad range
of enterprises. SYNNEX distributes a broad range of
information technology systems and products, and also provides
systems design and integration solutions. Concentrix, a
wholly-owned subsidiary of SYNNEX Corporation, offers a portfolio
of strategic solutions and end-to-end business services around
customer engagement strategy, process optimization, technology
innovation, front and back-office automation and business
transformation to clients in ten identified industry verticals.
Founded in 1980, SYNNEX Corporation operates in numerous countries
throughout North and South
America, Asia-Pacific and
Europe. Additional information about SYNNEX may be found
online at www.synnex.com.
Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance
with GAAP, SYNNEX also uses adjusted selling, general and
administrative expenses, non-GAAP operating income, non-GAAP
operating margin, adjusted earnings before interest, taxes,
depreciation and amortization ("Adjusted EBITDA"), non-GAAP net
income attributable to SYNNEX Corporation, and non-GAAP diluted
earnings per share, which are non-GAAP financial measures that
exclude acquisition-related and integration expenses, restructuring
costs, the amortization of intangible assets and the related tax
effects thereon.
Additionally, SYNNEX refers to growth rates at constant currency
or adjusting for the translation effect of foreign currencies so
that certain financial results can be viewed without the impact of
fluctuations in foreign currency exchange rates, thereby
facilitating period-to-period comparisons of the Company's business
performance. Financial results adjusted for currency are calculated
by translating current period activity in the transaction currency
using the comparable prior year periods' currency conversion rate.
Generally, when the dollar either strengthens or weakens against
other currencies, the growth at constant currency rates or
adjusting for currency will be higher or lower than growth reported
at actual exchange rates.
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 and cash equivalents in
the United States. Adjusted ROIC
is calculated by excluding the tax effected impact of
acquisition-related and integration expenses, restructuring costs
and the amortization of intangibles from operating income and
equity.
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 SYNNEX' operational
results and trends that more readily enable investors to analyze
SYNNEX' base financial and operating performance and to facilitate
period-to-period comparisons and analysis of operational trends, 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 the Company's
consolidated financial statements prepared in accordance with GAAP.
A reconciliation of SYNNEX' non-GAAP financial information to GAAP
is set forth in the supplemental information section at the end of
this press release.
Safe Harbor Statement
Statements in this news release regarding SYNNEX Corporation,
which are not historical facts, are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements may be identified by terms such as
believe, foresee, expect, may, will, provide, could and should and
the negative of these terms or other similar expressions. These
statements, including statements regarding SYNNEX' expectations and
outlook for the fiscal 2018 first quarter as to revenue, net
income, non-GAAP net income, diluted earnings per share, non-GAAP
diluted earnings per share, tax rate, after-tax amortization of
intangibles and acquisition-related and integration expenses,
currency impact, the frequency and occurrence of dividend
declarations and assessments, the anticipated benefits of recent
acquisitions, and the anticipated benefits of the non-GAAP
financial measures, and anticipated tax savings due to the 2017 US
tax reform law and use for dividends, business investment and debt
reduction, are subject to risks and uncertainties that could cause
actual results to differ materially from those discussed in the
forward-looking statements. These risks and uncertainties include,
but are not limited to: general economic conditions and any
weakness in information technology and consumer electronics
spending; the loss or consolidation of one or more of our
significant original equipment manufacturer, or OEM, suppliers or
customers; market acceptance and product life of the products we
assemble and distribute; competitive conditions in our industry and
their impact on our margins; pricing, margin and other terms with
our OEM suppliers; our ability to gain market share; variations in
supplier-sponsored programs; changes in our costs and operating
expenses; changes in foreign currency exchange rates; changes in
tax laws; risks associated with our international operations;
uncertainties and variability in demand by our reseller and
integration customers; supply shortages or delays; any termination
or reduction in our floor plan financing arrangements; credit
exposure to our reseller customers and negative trends in their
businesses; any future incidents of theft; and other risks and
uncertainties detailed in our Form 10-K for the fiscal year ended
November 30, 2016 and subsequent SEC filings. Statements
included in this press release are based upon information known to
SYNNEX Corporation as of the date of this release, and SYNNEX
Corporation assumes no obligation to update information contained
in this press release.
Copyright 2018 SYNNEX Corporation. All rights reserved. SYNNEX,
the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product
and services names and slogans are trademarks or registered
trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, and
CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are
the property of their respective owners.
SNX-F
SYNNEX
Corporation
|
Consolidated
Balance Sheets
|
(currency in
thousands)
|
(unaudited)
|
|
|
November
30, 2017
|
|
November
30, 2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
550,688
|
|
|
$
|
380,717
|
|
Restricted
cash
|
5,837
|
|
|
6,265
|
|
Short-term
investments
|
5,475
|
|
|
5,109
|
|
Accounts receivable,
net
|
2,846,371
|
|
|
1,756,494
|
|
Receivable from
related parties
|
77
|
|
|
102
|
|
Inventories
|
2,162,626
|
|
|
1,741,734
|
|
Other current
assets
|
168,704
|
|
|
104,609
|
|
Total current
assets
|
5,739,778
|
|
|
3,995,030
|
|
Property and
equipment, net
|
346,589
|
|
|
312,716
|
|
Goodwill
|
872,641
|
|
|
486,239
|
|
Intangible assets,
net
|
583,051
|
|
|
298,550
|
|
Deferred tax
assets
|
31,687
|
|
|
58,564
|
|
Other
assets
|
124,780
|
|
|
64,182
|
|
Total
assets
|
$
|
7,698,526
|
|
|
$
|
5,215,281
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Borrowings,
current
|
$
|
805,471
|
|
|
$
|
362,889
|
|
Accounts
payable
|
2,626,720
|
|
|
1,683,155
|
|
Payable to related
parties
|
16,888
|
|
|
30,679
|
|
Accrued compensation
and benefits
|
204,665
|
|
|
165,585
|
|
Other accrued
liabilities
|
354,104
|
|
|
217,127
|
|
Income taxes
payable
|
33,359
|
|
|
17,097
|
|
Total current
liabilities
|
4,041,207
|
|
|
2,476,532
|
|
Long-term
borrowings
|
1,136,089
|
|
|
601,095
|
|
Other long-term
liabilities
|
124,008
|
|
|
103,217
|
|
Deferred tax
liabilities
|
113,527
|
|
|
58,639
|
|
Total
liabilities
|
5,414,831
|
|
|
3,239,483
|
|
SYNNEX Corporation
stockholders' equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
41
|
|
|
41
|
|
Additional paid-in
capital
|
467,948
|
|
|
440,713
|
|
Treasury
stock
|
(77,133)
|
|
|
(67,262)
|
|
Accumulated other
comprehensive income (loss)
|
(61,919)
|
|
|
(93,116)
|
|
Retained
earnings
|
1,954,758
|
|
|
1,695,400
|
|
Total SYNNEX
Corporation stockholders' equity
|
2,283,695
|
|
|
1,975,776
|
|
Noncontrolling
interest
|
—
|
|
|
22
|
|
Total
equity
|
2,283,695
|
|
|
1,975,798
|
|
Total liabilities and
equity
|
$
|
7,698,526
|
|
|
$
|
5,215,281
|
|
SYNNEX
Corporation
|
Consolidated
Statements of Operations
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2017
|
|
November 30,
2016
|
|
November 30,
2017
|
|
November 30,
2016
|
Revenue:
|
|
|
|
|
|
|
|
Products
|
$
|
4,781,408
|
|
|
$
|
3,390,665
|
|
|
$
|
15,070,871
|
|
|
$
|
12,490,427
|
|
Services
|
530,469
|
|
|
496,237
|
|
|
1,974,829
|
|
|
1,571,410
|
|
Total
revenue
|
5,311,877
|
|
|
3,886,902
|
|
|
17,045,700
|
|
|
14,061,837
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Products
|
(4,525,904)
|
|
|
(3,206,961)
|
|
|
(14,262,094)
|
|
|
(11,815,479)
|
|
Services
|
(324,005)
|
|
|
(301,155)
|
|
|
(1,232,666)
|
|
|
(963,393)
|
|
Gross
profit
|
461,968
|
|
|
378,786
|
|
|
1,550,940
|
|
|
1,282,965
|
|
Selling, general and
administrative expenses
|
(302,108)
|
|
|
(248,144)
|
|
|
(1,041,975)
|
|
|
(903,369)
|
|
Operating
income
|
159,860
|
|
|
130,642
|
|
|
508,965
|
|
|
379,596
|
|
Interest expense and
finance charges, net
|
(18,459)
|
|
|
(8,748)
|
|
|
(45,357)
|
|
|
(28,993)
|
|
Other income
(expense), net
|
(202)
|
|
|
856
|
|
|
1,123
|
|
|
5,461
|
|
Income before income
taxes
|
141,199
|
|
|
122,750
|
|
|
464,731
|
|
|
356,064
|
|
Provision for income
taxes
|
(50,126)
|
|
|
(37,440)
|
|
|
(163,558)
|
|
|
(121,059)
|
|
Net income
|
91,073
|
|
|
85,310
|
|
|
301,173
|
|
|
235,005
|
|
Net (income) loss
attributable to noncontrolling interest
|
—
|
|
|
8
|
|
|
—
|
|
|
(59)
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
91,073
|
|
|
$
|
85,318
|
|
|
$
|
301,173
|
|
|
$
|
234,946
|
|
Earnings attributable
to SYNNEX Corporation per common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
2.28
|
|
|
$
|
2.14
|
|
|
$
|
7.54
|
|
|
$
|
5.91
|
|
Diluted
|
$
|
2.26
|
|
|
$
|
2.13
|
|
|
$
|
7.51
|
|
|
$
|
5.88
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
39,635
|
|
|
39,431
|
|
|
39,556
|
|
|
39,321
|
|
Diluted
|
39,867
|
|
|
39,647
|
|
|
39,758
|
|
|
39,530
|
|
Cash dividends
declared per share
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
$
|
1.05
|
|
|
$
|
0.85
|
|
SYNNEX
Corporation
|
Segment
Information
|
(currency in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2017
|
|
November 30,
2016
|
|
November 30,
2017
|
|
November 30,
2016
|
Revenue:
|
|
|
|
|
|
|
|
Technology
Solutions
|
$
|
4,781,491
|
|
|
$
|
3,390,749
|
|
|
$
|
15,071,185
|
|
|
$
|
12,490,718
|
|
Concentrix
|
534,363
|
|
|
500,404
|
|
|
1,990,180
|
|
|
1,587,736
|
|
Inter-segment
elimination
|
(3,977)
|
|
|
(4,251)
|
|
|
(15,665)
|
|
|
(16,617)
|
|
Consolidated
|
$
|
5,311,877
|
|
|
$
|
3,886,902
|
|
|
$
|
17,045,700
|
|
|
$
|
14,061,837
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Technology
Solutions
|
$
|
112,226
|
|
|
$
|
92,589
|
|
|
$
|
394,320
|
|
|
$
|
315,485
|
|
Concentrix
|
47,634
|
|
|
38,022
|
|
|
114,623
|
|
|
63,877
|
|
Inter-segment
elimination
|
—
|
|
|
31
|
|
|
22
|
|
|
234
|
|
Consolidated
|
$
|
159,860
|
|
|
$
|
130,642
|
|
|
$
|
508,965
|
|
|
$
|
379,596
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency in
thousands)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2017
|
|
November 30,
2016
|
|
November 30,
2017
|
|
November 30,
2016
|
Revenue in
Constant Currency
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Revenue
|
$
|
5,311,877
|
|
|
$
|
3,886,902
|
|
|
$
|
17,045,700
|
|
|
$
|
14,061,837
|
|
Foreign currency
translation
|
(13,906)
|
|
|
|
|
(4,609)
|
|
|
|
Revenue in constant
currency
|
$
|
5,297,971
|
|
|
$
|
3,886,902
|
|
|
$
|
17,041,091
|
|
|
$
|
14,061,837
|
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
4,781,491
|
|
|
$
|
3,390,749
|
|
|
$
|
15,071,185
|
|
|
$
|
12,490,718
|
|
Foreign currency
translation
|
(8,893)
|
|
|
|
|
(6,588)
|
|
|
|
Revenue in constant
currency
|
$
|
4,772,598
|
|
|
$
|
3,390,749
|
|
|
$
|
15,064,597
|
|
|
$
|
12,490,718
|
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
534,363
|
|
|
$
|
500,404
|
|
|
$
|
1,990,180
|
|
|
$
|
1,587,736
|
|
Foreign currency
translation
|
(5,013)
|
|
|
|
|
1,979
|
|
|
|
Revenue in constant
currency
|
$
|
529,350
|
|
|
$
|
500,404
|
|
|
$
|
1,992,159
|
|
|
$
|
1,587,736
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2017
|
|
November 30,
2016
|
|
November 30,
2017
|
|
November 30,
2016
|
Selling, general
and administrative expenses
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
302,108
|
|
|
$
|
248,144
|
|
|
$
|
1,041,975
|
|
|
$
|
903,369
|
|
Acquisition-related
and integration expenses
|
3,144
|
|
|
6,465
|
|
|
4,781
|
|
|
10,393
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
4,255
|
|
Amortization of
intangibles
|
29,516
|
|
|
18,504
|
|
|
77,500
|
|
|
54,250
|
|
Adjusted selling,
general and administrative expenses
|
$
|
269,448
|
|
|
$
|
223,175
|
|
|
$
|
959,694
|
|
|
$
|
834,471
|
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
143,356
|
|
|
$
|
91,200
|
|
|
$
|
414,763
|
|
|
$
|
359,754
|
|
Acquisition-related
and integration expenses
|
3,019
|
|
|
—
|
|
|
3,724
|
|
|
—
|
|
Amortization of
intangibles
|
12,968
|
|
|
670
|
|
|
14,929
|
|
|
2,657
|
|
Adjusted selling,
general and administrative expenses
|
$
|
127,369
|
|
|
$
|
90,530
|
|
|
$
|
396,110
|
|
|
$
|
357,097
|
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
160,398
|
|
|
$
|
159,007
|
|
|
$
|
634,530
|
|
|
$
|
551,570
|
|
Acquisition-related
and integration expenses
|
125
|
|
|
6,465
|
|
|
1,057
|
|
|
10,393
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
4,255
|
|
Amortization of
intangibles
|
16,548
|
|
|
17,834
|
|
|
62,571
|
|
|
51,593
|
|
Adjusted selling,
general and administrative expenses
|
$
|
143,725
|
|
|
$
|
134,708
|
|
|
$
|
570,902
|
|
|
$
|
485,329
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency in
thousands)
|
(continued)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2017
|
|
November 30,
2016
|
|
November 30,
2017
|
|
November 30,
2016
|
Operating income
and Operating margin
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Revenue
|
$
|
5,311,877
|
|
|
$
|
3,886,902
|
|
|
$
|
17,045,700
|
|
|
$
|
14,061,837
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
159,860
|
|
|
$
|
130,642
|
|
|
$
|
508,965
|
|
|
$
|
379,596
|
|
Acquisition-related
and integration expenses
|
3,144
|
|
|
6,465
|
|
|
4,781
|
|
|
10,393
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
4,255
|
|
Amortization of
intangibles
|
29,937
|
|
|
18,981
|
|
|
79,181
|
|
|
55,490
|
|
Non-GAAP operating
income
|
$
|
192,941
|
|
|
$
|
156,088
|
|
|
$
|
592,927
|
|
|
$
|
449,734
|
|
Depreciation
|
21,647
|
|
|
19,254
|
|
|
80,705
|
|
|
65,803
|
|
Adjusted
EBITDA
|
$
|
214,588
|
|
|
$
|
175,342
|
|
|
$
|
673,632
|
|
|
$
|
515,537
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
3.01
|
%
|
|
3.36
|
%
|
|
2.99
|
%
|
|
2.70
|
%
|
Non-GAAP operating
margin
|
3.63
|
%
|
|
4.02
|
%
|
|
3.48
|
%
|
|
3.20
|
%
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
4,781,491
|
|
|
$
|
3,390,749
|
|
|
$
|
15,071,185
|
|
|
$
|
12,490,718
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
112,226
|
|
|
$
|
92,589
|
|
|
$
|
394,320
|
|
|
$
|
315,485
|
|
Acquisition-related
and integration expenses
|
3,019
|
|
|
—
|
|
|
3,724
|
|
|
—
|
|
Amortization of
intangibles
|
12,968
|
|
|
670
|
|
|
14,929
|
|
|
2,657
|
|
Non-GAAP operating
income
|
$
|
128,213
|
|
|
$
|
93,259
|
|
|
$
|
412,973
|
|
|
$
|
318,142
|
|
Depreciation
|
4,703
|
|
|
3,489
|
|
|
15,111
|
|
|
13,935
|
|
Adjusted
EBITDA
|
$
|
132,916
|
|
|
$
|
96,748
|
|
|
$
|
428,084
|
|
|
$
|
332,077
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
2.35
|
%
|
|
2.73
|
%
|
|
2.62
|
%
|
|
2.53
|
%
|
Non-GAAP operating
margin
|
2.68
|
%
|
|
2.75
|
%
|
|
2.74
|
%
|
|
2.55
|
%
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
534,363
|
|
|
$
|
500,404
|
|
|
$
|
1,990,180
|
|
|
$
|
1,587,736
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
47,634
|
|
|
$
|
38,022
|
|
|
$
|
114,623
|
|
|
$
|
63,877
|
|
Acquisition-related
and integration expenses
|
125
|
|
|
6,465
|
|
|
1,057
|
|
|
10,393
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
4,255
|
|
Amortization of
intangibles
|
16,969
|
|
|
18,311
|
|
|
64,252
|
|
|
52,833
|
|
Non-GAAP operating
income
|
$
|
64,728
|
|
|
$
|
62,798
|
|
|
$
|
179,932
|
|
|
$
|
131,358
|
|
Depreciation
|
16,944
|
|
|
15,796
|
|
|
65,617
|
|
|
52,102
|
|
Adjusted
EBITDA
|
$
|
81,672
|
|
|
$
|
78,594
|
|
|
$
|
245,549
|
|
|
$
|
183,460
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
8.91
|
%
|
|
7.60
|
%
|
|
5.76
|
%
|
|
4.02
|
%
|
Non-GAAP operating
margin
|
12.11
|
%
|
|
12.55
|
%
|
|
9.04
|
%
|
|
8.27
|
%
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(continued)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2017
|
|
November 30,
2016
|
|
November 30,
2017
|
|
November 30,
2016
|
Net
income
|
|
|
|
|
|
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
91,073
|
|
|
$
|
85,318
|
|
|
$
|
301,173
|
|
|
$
|
234,946
|
|
Acquisition-related
and integration expenses
|
3,144
|
|
|
6,465
|
|
|
4,781
|
|
|
10,393
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
4,255
|
|
Amortization of
intangibles
|
29,937
|
|
|
18,981
|
|
|
79,181
|
|
|
55,490
|
|
Income taxes related
to the above(1)
|
(11,711)
|
|
|
(7,829)
|
|
|
(29,550)
|
|
|
(23,846)
|
|
Non-GAAP net income
attributable to SYNNEX Corporation
|
$
|
112,443
|
|
|
$
|
102,935
|
|
|
$
|
355,585
|
|
|
$
|
281,238
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share ("EPS")(2)
|
|
|
|
|
|
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
91,073
|
|
|
$
|
85,318
|
|
|
$
|
301,173
|
|
|
$
|
234,946
|
|
Less: net income
allocated to participating securities
|
(836)
|
|
|
(834)
|
|
|
(2,778)
|
|
|
(2,408)
|
|
Net income
attributable to SYNNEX Corporation common stockholders
|
90,237
|
|
|
84,484
|
|
|
298,395
|
|
|
232,538
|
|
Acquisition-related
and integration expenses attributable to SYNNEX
Corporation common stockholders
|
3,115
|
|
|
6,405
|
|
|
4,737
|
|
|
10,297
|
|
Restructuring costs
attributable to SYNNEX Corporation common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
4,217
|
|
Amortization of
intangibles attributable to SYNNEX Corporation common
stockholders
|
29,661
|
|
|
18,787
|
|
|
78,448
|
|
|
54,891
|
|
Income taxes related
to the above attributable to SYNNEX Corporation common
stockholders(1)
|
(11,603)
|
|
|
(7,749)
|
|
|
(29,277)
|
|
|
(23,590)
|
|
Non-GAAP net income
attributable to SYNNEX Corporation common stockholders
|
$
|
111,410
|
|
|
$
|
101,927
|
|
|
$
|
352,303
|
|
|
$
|
278,353
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares - diluted:
|
39,867
|
|
|
39,647
|
|
|
39,758
|
|
|
39,530
|
|
|
|
|
|
|
|
|
|
Diluted
EPS(2)
|
$
|
2.26
|
|
|
$
|
2.13
|
|
|
$
|
7.51
|
|
|
$
|
5.88
|
|
Acquisition-related
and integration expenses
|
0.08
|
|
|
0.16
|
|
|
0.12
|
|
|
0.26
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
0.11
|
|
Amortization of
intangibles
|
0.74
|
|
|
0.47
|
|
|
1.97
|
|
|
1.39
|
|
Income taxes related
to the above(1)
|
(0.29)
|
|
|
(0.20)
|
|
|
(0.74)
|
|
|
(0.60)
|
|
Non-GAAP Diluted
EPS(3)
|
$
|
2.79
|
|
|
$
|
2.57
|
|
|
$
|
8.86
|
|
|
$
|
7.04
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(amounts in
millions, except for per share amounts)
|
(continued)
|
|
|
Forecast
|
|
Three Months
Ending February 28, 2018
|
|
Low
|
|
High
|
Net
income
|
|
|
|
Net income
attributable to SYNNEX Corporation
|
$
|
64.0
|
|
|
$
|
67.8
|
|
Amortization of
intangibles
|
27.7
|
|
|
27.7
|
|
Income taxes related
to the above(1)
|
(8.5)
|
|
|
(8.5)
|
|
Non-GAAP net income
attributable to SYNNEX Corporation
|
$
|
83.2
|
|
|
$
|
87.0
|
|
|
|
|
|
Diluted
EPS(2)
|
$
|
1.58
|
|
|
$
|
1.68
|
|
Amortization of
intangibles
|
0.69
|
|
|
0.69
|
|
Income taxes related
to the above(1)
|
(0.21)
|
|
|
(0.21)
|
|
Non-GAAP Diluted
EPS(3)
|
$
|
2.06
|
|
|
$
|
2.15
|
|
|
(1) The tax
effect of the non-GAAP adjustments was calculated using the
effective year-to-date tax rate during the respective
periods.
|
|
(2) Diluted
EPS for all periods presented is calculated using the two-class
method. Unvested restricted stock awards granted to employees
are considered participating securities. For purposes of
calculating Diluted EPS, Net income allocated to participating
securities was approximately 0.9% of the Net income attributable to
SYNNEX Corporation for both the three months and the year ended
November 30, 2017, and approximately 1.0% for both the three
months and the year ended November 30, 2016. Net income
allocated to participating securities is approximately 0.9% of the
Net income attributable to SYNNEX Corporation for the three months
ending February 28, 2018.
|
|
(3) The sum of
the components of Non-GAAP Diluted EPS may not agree to totals, as
presented, due to rounding.
|
SYNNEX
Corporation
|
Calculation of
Financial Metrics
|
(currency in
thousands)
|
|
Return on Invested
Capital ("ROIC")
|
|
|
November 30,
2017
|
|
November 30,
2016
|
ROIC
|
|
|
|
Operating income
(Trailing fiscal four quarters)
|
$
|
508,965
|
|
|
$
|
379,596
|
|
Income taxes on
operating income(1)
|
(179,105)
|
|
|
(129,042)
|
|
Operating income
after taxes
|
329,860
|
|
|
250,554
|
|
|
|
|
|
Total borrowings,
excluding book overdraft (last five quarters average)
|
$
|
1,208,330
|
|
|
$
|
780,972
|
|
Total equity (last
five quarters average)
|
2,126,159
|
|
|
1,879,777
|
|
Less: U.S. cash and
cash equivalents (last five quarters average)
|
(132,881)
|
|
|
(229,940)
|
|
Total invested
capital
|
3,201,608
|
|
|
2,430,809
|
|
|
|
|
|
ROIC
|
10.3
|
%
|
|
10.3
|
%
|
|
|
|
|
Adjusted
ROIC
|
|
|
|
Non-GAAP operating
income (Trailing fiscal four quarters)
|
$
|
592,927
|
|
|
$
|
449,734
|
|
Income taxes on
Non-GAAP operating income(1)
|
(208,652)
|
|
|
(152,846)
|
|
Non-GAAP operating
income after taxes
|
384,275
|
|
|
296,888
|
|
|
|
|
|
Total invested
capital
|
$
|
3,201,608
|
|
|
$
|
2,430,809
|
|
Tax effected impact
of cumulative non-GAAP adjustments (last five quarters
average)
|
208,615
|
|
|
158,550
|
|
Total Non-GAAP
invested capital
|
3,410,223
|
|
|
2,589,358
|
|
|
|
|
|
Adjusted
ROIC
|
11.3
|
%
|
|
11.5
|
%
|
|
(1) Income
taxes on GAAP and non-GAAP operating income was calculated using
the effective year-to-date tax rates during the respective
periods.
|
|
|
Debt to
Capitalization
|
|
|
|
November 30,
2017
|
|
November 30,
2016
|
Total borrowings,
excluding book overdraft
|
(a)
|
$
|
1,937,253
|
|
|
$
|
960,602
|
|
Total
equity
|
(b)
|
2,283,695
|
|
|
1,975,798
|
|
Debt to
capitalization
|
(a)/((a)+(b))
|
45.9
|
%
|
|
32.7
|
%
|
SYNNEX
Corporation
|
Calculation of
Financial Metrics
|
(currency in
thousands)
|
(continued)
|
|
Cash Conversion
Cycle
|
|
|
|
Three Months
Ended
|
|
|
November 30,
2017
|
|
November 30,
2016
|
Days sales
outstanding
|
|
|
|
|
Revenue (products and
services)
|
(a)
|
$
|
5,311,877
|
|
|
$
|
3,886,902
|
|
Accounts receivable,
including receivable from related parties
|
(b)
|
2,846,448
|
|
|
1,756,596
|
|
Days sales
outstanding
|
(c) = (b)/((a)/the
number of days during the period)
|
49
|
|
|
41
|
|
|
|
|
|
|
Days inventory
outstanding
|
|
|
|
|
Cost of revenue
(products and services)
|
(d)
|
$
|
4,849,909
|
|
|
$
|
3,508,116
|
|
Inventories
|
(e)
|
2,162,626
|
|
|
1,741,734
|
|
Days inventory
outstanding
|
(f) = (e)/((d)/the
number of days during the period)
|
41
|
|
|
45
|
|
|
|
|
|
|
Days payable
outstanding
|
|
|
|
|
Cost of revenue
(products and services)
|
(g)
|
$
|
4,849,909
|
|
|
$
|
3,508,116
|
|
Accounts payable,
including payable to related parties
|
(h)
|
2,643,608
|
|
|
1,713,834
|
|
Days payable
outstanding
|
(i) = (h)/((g)/the
number of days during the period)
|
50
|
|
|
44
|
|
|
|
|
|
|
Cash conversion
cycle
|
(j) =
(c)+(f)-(i)
|
40
|
|
|
42
|
|
View original
content:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2017-fourth-quarter-and-full-year-results-300580299.html
SOURCE SYNNEX Corporation