Tech Data (NASDAQ: TECD) (the “Company”) today announced its
financial results for the third quarter ended October 31, 2019.
Third quarter ended October 31, Nine months ended
October 31, ($ in millions,except per share amounts)
2019
2018
Y/YChange
2019
2018
Y/YChange Net Sales
$9,118.9
$9,340.0
-2%
$26,617.6
$26,774.4
-1%
Gross profit
$560.4
$556.6
1%
$1,631.4
$1,606.8
2%
Gross margin
6.15%
5.96%
19 bps
6.13%
6.00%
13 bps
SG&A expenses (GAAP)*
$415.2
$396.7
5%
$1,252.8
$1,234.4
1%
% of net sales
4.55%
4.25%
30 bps
4.71%
4.61%
10 bps
SG&A expenses (Non-GAAP)*
$394.1
$368.6
7%
$1,189.0
$1,159.7
3%
% of net sales
4.32%
3.95%
37 bps
4.47%
4.33%
14 bps
Operating income (GAAP)*
$141.9
$146.9
-3%
$364.3
$327.7
11%
Operating margin (GAAP)*
1.56%
1.57%
-1 bps
1.37%
1.22%
15 bps
Operating income (Non-GAAP)*
$166.3
$188.0
-12%
$442.4
$447.0
-1%
Operating margin (Non-GAAP)*
1.82%
2.01%
-19 bps
1.66%
1.67%
-1 bps
Net income (GAAP)*
$90.8
$114.2
-21%
$225.4
$223.8
1%
Net income (Non-GAAP)*
$108.8
$116.3
-6%
$283.3
$264.8
7%
EPS - diluted (GAAP)*
$2.52
$2.96
-15%
$6.15
$5.80
6%
EPS - diluted (Non-GAAP)*
$3.02
$3.02
0%
$7.73
$6.87
13%
* Third quarter ended October 31, 2018 includes a $25 million
benefit ($18 million net of tax; $0.47 cents per diluted share)
from the collection of an accounts receivable balance previously
considered uncollectible.
A reconciliation of GAAP to non-GAAP financial measures is
presented in the financial tables of this press release.
This information is also available on the Investor Relations
section of Tech Data’s website at www.techdata.com/investor.
Third quarter ended October 31, Nine months ended
October 31, ($ in millions)
2019
2018
Y/Y Change
2019
2018
Y/Y Change
AMERICAS
Net Sales
$4,202.3
$4,137.9
2%
$12,308.2
$11,799.4
4%
% of WW net sales
46%
44%
46%
44%
Operating income (GAAP)*
$82.4
$112.4
-27%
$244.1
$261.7
-7%
% of net sales
1.96%
2.72%
-76 bps
1.98%
2.22%
-24 bps
Operating income (Non-GAAP)*
$99.4
$124.8
-20%
$292.0
$306.1
-5%
% of net sales
2.37%
3.01%
-64 bps
2.37%
2.59%
-22 bps
EUROPE
Net Sales
$4,622.3
$4,920.2
-6%
$13,371.4
$14,131.0
-5%
% of WW net sales
51%
53%
50%
53%
Operating income (GAAP)
$66.5
$39.9
67%
$140.6
$86.3
63%
% of net sales
1.44%
0.81%
63 bps
1.05%
0.61%
44 bps
Operating income (Non-GAAP)
$72.4
$66.2
9%
$165.3
$154.1
7%
% of net sales
1.57%
1.34%
23 bps
1.24%
1.09%
15 bps
ASIA PACIFIC
Net Sales
$294.4
$282.0
4%
$938.0
$844.1
11%
% of WW net sales
3%
3%
4%
3%
Operating income (GAAP)
$0.3
$2.7
-90%
$3.2
$3.5
-7%
% of net sales
0.09%
0.97%
-88 bps
0.34%
0.41%
-7 bps
Operating income (Non-GAAP)
$1.8
$4.6
-62%
$8.8
$8.2
8%
% of net sales
0.60%
1.64%
-104 bps
0.94%
0.97%
-3 bps
Regional Financial Highlights:
* Third quarter ended October 31, 2018 includes a $25 million
benefit from the collection of an accounts receivable balance
previously considered uncollectible.
Note: WW = worldwide Stock-based compensation expense was $7.3
million, a decrease of $0.8 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).
- Worldwide net sales were $9.1 billion, a decrease of 2 percent
compared to the prior-year quarter. On a constant currency basis,
net sales were flat.
- Americas: Net sales were $4.2 billion, an increase of 2 percent
compared to the prior-year quarter. On a constant currency basis,
net sales increased 2 percent.
- Europe: Net sales were $4.6 billion, a decrease of 6 percent
compared to the prior-year quarter. On a constant currency basis,
net sales decreased 2 percent.
- Asia Pacific: Net sales were $0.3 billion, an increase of 4
percent compared to the prior-year quarter. On a constant currency
basis, net sales increased 4 percent.
- Three vendors represented 10 percent or more of worldwide net
sales: Apple Inc. 17%; Cisco Systems 11%; and HP Inc. 10%.
- Net cash generated by operations during the quarter was $310
million. The cash conversion cycle improved by one day to 17 days,
compared to the year-ago period.
- At October 31, 2019, the company had approximately $1.6 billion
of goodwill and acquired intangibles.
- Return on invested capital for the trailing twelve months was
12 percent, compared to 8 percent in the prior year. Adjusted
return on invested capital for the trailing twelve months was 15
percent, compared to 12 percent in the year-ago period.
- In the quarter, the company repurchased 518,433 shares for $49
million at an average purchase price of $95.09 per share. In
connection with the subsequent events described below, the company
has suspended its share repurchase program.
“We delivered solid third quarter results while continuing to
execute on our strategy and portfolio optimization actions,” said
Rich Hume, chief executive officer. “In Q3, we also announced our
intention to acquire DLT Solutions, a premier software and cloud
solutions aggregator focused on the U.S. public sector. This
acquisition reflects our strategy of delivering higher value –
strengthening our end-to-end portfolio and accelerating our
capabilities in next-generation technologies.”
Subsequent Events
On November 13, 2019, Tech Data announced it had entered into a
definitive agreement (the “Merger Agreement”) to be acquired by
Tiger Midco, LLC, an affiliate of funds managed by affiliates of
Apollo Global Management, Inc. (NYSE: APO), a leading global
alternative investment manager (“Apollo”). The Merger Agreement
provides that Tiger Midco, LLC will acquire all of the outstanding
shares of Tech Data common stock for $130 per share in cash. Tech
Data filed a Current Report on Form 8-K on November 13, 2019
providing further information with respect to the Merger Agreement.
As previously announced, due to the pending acquisition by
affiliates of the Apollo Funds, Tech Data does not plan to host an
earnings conference call nor provide forward-looking guidance.
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, changes in deferred tax valuation allowances and
the impact of U.S. tax reform. 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
This communication includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.
Such forward-looking statements are inherently uncertain, and
shareholders and other potential investors must recognize that
actual results may differ materially from Tech Data’s expectations
as a result of a variety of factors. Such forward-looking
statements are based upon management’s current expectations and
include known and unknown risks, uncertainties and other factors,
many of which Tech Data is unable to predict or control, that may
cause Tech Data’s actual results, performance, or plans to differ
materially from any future results, performance or plans expressed
or implied by such forward-looking statements. Risks and
uncertainties related to the proposed merger include, but are not
limited to, the occurrence of any event, change or other
circumstance that could give rise to the termination of the merger
agreement; the failure of the parties to satisfy conditions to
completion of the proposed merger, including the failure of Tech
Data’s shareholders to approve the proposed merger or the failure
of the parties to obtain required regulatory approvals; the risk
that regulatory or other approvals are delayed or are subject to
terms and conditions that are not anticipated; and the risks,
uncertainties, and other factors detailed from time to time in Tech
Data’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K filed or furnished with the
Securities and Exchange Commission (the “SEC”).
Many of these factors are beyond Tech Data’s control. Tech Data
cautions investors that any forward-looking statements made by Tech
Data are not guarantees of future performance. Tech Data disclaims
any obligation to update any such factors or to announce publicly
the results of any revisions to any of the forward-looking
statements to reflect future events or developments.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
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 October 31, Nine months ended October 31,
2019
2018
2019
2018
Net sales
$
9,118,944
$
9,340,029
$
26,617,612
$
26,774,449
Cost of products sold
8,558,557
8,783,425
24,986,196
25,167,698
Gross profit
560,387
556,604
1,631,416
1,606,751
Operating expenses: Selling, general and administrative expenses
415,242
396,675
1,252,752
1,234,355
Acquisition, integration, and restructuring expenses
4,647
20,277
16,077
66,799
Legal settlements and other, net
—
(7,207
)
(282
)
(15,406
)
Gain on disposal of subsidiary
(1,390
)
(29
)
(1,390
)
(6,746
)
418,499
409,716
1,267,157
1,279,002
Operating income
141,888
146,888
364,259
327,749
Interest expense
21,033
25,405
68,276
79,380
Other expense, net
4,348
4,961
6,551
7,779
Income before income taxes
116,507
116,522
289,432
240,590
Provision for income taxes
25,737
2,306
64,012
16,809
Net income
$
90,770
$
114,216
$
225,420
$
223,781
Earnings per share: Basic
$
2.54
$
2.98
$
6.19
$
5.83
Diluted
$
2.52
$
2.96
$
6.15
$
5.80
Weighted average common shares outstanding: Basic
35,720
38,358
36,395
38,357
Diluted
35,968
38,526
36,630
38,559
TECH DATA CORPORATION AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except par value and share
amounts)
October 31, January 31,
2019
2019
ASSETS (unaudited) Current assets: Cash
and cash equivalents
$
964,146
$
799,123
Accounts receivable, net
5,768,940
6,241,740
Inventories
3,145,381
3,297,385
Prepaid expenses and other assets
341,075
354,601
Total current assets
10,219,542
10,692,849
Property and equipment, net
275,013
274,917
Goodwill
888,165
892,990
Intangible assets, net
884,560
950,858
Other assets, net
427,456
174,938
Total assets
$
12,694,736
$
12,986,552
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Accounts payable
$
6,963,941
$
7,496,466
Accrued expenses and other liabilities
1,030,457
1,000,126
Revolving credit loans and current maturities of long-term debt,
net
123,271
110,368
Total current liabilities
8,117,669
8,606,960
Long-term debt, less current maturities
1,294,186
1,300,554
Other long-term liabilities
314,596
142,315
Total liabilities
$
9,726,451
$
10,049,829
Shareholders’ equity: Common stock, par value
$0.0015; 200,000,000 shares authorized; 59,245,585shares issued at
October 31, 2019 and January 31, 2019
$
89
$
89
Additional paid-in capital
846,636
844,206
Treasury stock, at cost (23,798,037 and 22,305,464 shares at
October 31, 2019 and January 31, 2019)
(1,195,148
)
(1,037,872
)
Retained earnings
3,311,934
3,086,514
Accumulated other comprehensive income
4,774
43,786
Total shareholders' equity
2,968,285
2,936,723
Total liabilities and shareholders' equity
$
12,694,736
$
12,986,552
TECH DATA CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH
FLOWS
(In thousands)
(Unaudited)
Nine months ended October 31,
2019
2018
Cash flows from operating activities: Cash received from customers
$
35,335,867
$
34,190,821
Cash paid to vendors and employees
(34,774,608
)
(33,891,567
)
Interest paid, net
(79,482
)
(82,829
)
Income taxes paid
(69,174
)
(67,107
)
Net cash provided by operating activities
412,603
149,318
Cash flows from investing activities: Proceeds from sale of
business, net of cash divested
—
8,985
Acquisition of businesses, net of cash acquired
—
(124,223
)
Expenditures for property and equipment
(30,503
)
(24,830
)
Software and software development costs
(21,147
)
(15,323
)
Other
315
1,105
Net cash used in investing activities
(51,335
)
(154,286
)
Cash flows from financing activities: Borrowings on long-term debt
300,000
—
Principal payments on long-term debt
(311,925
)
(207,854
)
Cash paid for debt issuance costs
(4,341
)
—
Net borrowings (repayments) on revolving credit loans
15,035
(9,274
)
Payments for employee tax withholdings on equity awards
(9,337
)
(6,988
)
Proceeds from the reissuance of treasury stock
1,450
1,322
Acquisition of noncontrolling interest
(7,553
)
—
Repurchases of common stock
(166,992
)
(43,798
)
Other
529
—
Net cash used in financing activities
(183,134
)
(266,592
)
Effect of exchange rate changes on cash and cash equivalents
(13,111
)
(37,589
)
Net increase (decrease) in cash and cash equivalents
165,023
(309,149
)
Cash and cash equivalents at beginning of year
799,123
955,628
Cash and cash equivalents at end of period
$
964,146
$
646,479
Reconciliation of net income to net cash provided by operating
activities: Net income
$
225,420
$
223,781
Adjustments to reconcile net income to net cash provided by
operating activities: Gain on disposal of subsidiary
(1,390
)
(6,746
)
Depreciation and amortization
112,726
119,641
Provision for losses on accounts receivable
19,176
11,545
Stock-based compensation expense
23,707
23,694
Accretion of debt discount and debt issuance costs
3,195
2,983
Deferred income taxes
4,577
(11,567
)
Changes in operating assets and liabilities, net of acquisitions
and disposition: Accounts receivable
372,594
(309,390
)
Inventories
113,168
(397,692
)
Prepaid expenses and other assets
38,991
(3,720
)
Accounts payable
(443,413
)
474,214
Accrued expenses and other liabilities
(56,148
)
22,575
Total adjustments
187,183
(74,463
)
Net cash provided by operating activities
$
412,603
$
149,318
TECH DATA CORPORATION AND
SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
Three months ended October 31,
2019
Americas(1)
Europe (1)
Asia Pacific (1)
StockCompensationExpense Consolidated Net
Sales
$
4,202,320
$
4,622,270
$
294,354
$
9,118,944
Operating income (GAAP) (1)
$
82,420
$
66,536
$
279
$
(7,347
)
$
141,888
Acquisition, integration and restructuring expenses
3,551
975
121
-
4,647
Acquisition-related intangible assets amortization expense
13,438
6,312
1,294
21,044
Gain on disposal of subsidiary
-
(1,390
)
-
(1,390
)
Tax indemnifications
-
-
62
62
Total non-GAAP operating income adjustments
$
16,989
$
5,897
$
1,477
$
-
$
24,363
Operating income (non-GAAP)
$
99,409
$
72,433
$
1,756
$
(7,347
)
$
166,251
Operating margin (GAAP)
1.96
%
1.44
%
0.09
%
1.56
%
Operating margin (non-GAAP)
2.37
%
1.57
%
0.60
%
1.82
%
(1) GAAP operating income does not include stock
compensation expense at the regional level.
Three months ended October 31,
2018
Americas (1) Europe (1) Asia Pacific (1)
StockCompensationExpense Consolidated Net
Sales
$
4,137,852
$
4,920,156
$
282,021
$
9,340,029
Operating income (GAAP) (1)
$
112,399
$
39,889
$
2,739
$
(8,139
)
$
146,888
Acquisition, integration and restructuring expenses
5,989
13,132
578
578
20,277
Legal settlements and other, net
(7,207
)
-
-
(7,207
)
Acquisition-related intangible assets amortization expense
13,569
7,640
1,314
22,523
Gain on disposal of subsidiary
-
(29
)
-
(29
)
Tax indemnifications
-
5,541
-
5,541
Total non-GAAP operating income adjustments
$
12,351
$
26,284
$
1,892
$
578
$
41,105
Operating income (non-GAAP)
$
124,750
$
66,173
$
4,631
$
(7,561
)
$
187,993
Operating margin (GAAP)
2.72
%
0.81
%
0.97
%
1.57
%
Operating margin (non-GAAP)
3.01
%
1.34
%
1.64
%
2.01
%
(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)
Nine months ended October 31,
2019
Americas (1) Europe (1) Asia Pacific (1)
StockCompensationExpense Consolidated Net
Sales
$
12,308,249
$
13,371,397
$
937,966
$
26,617,612
Operating income (GAAP) (1)
$
244,138
$
140,605
$
3,223
$
(23,707
)
$
364,259
Acquisition, integration and restructuring expenses
7,803
7,228
1,046
-
16,077
Legal settlements and other, net
(282
)
-
-
(282
)
Acquisition-related intangible assets amortization expense
40,318
18,857
3,930
63,105
Gain on disposal of subsidiary
-
(1,390
)
-
(1,390
)
Tax indemnifications
-
-
647
647
Total non-GAAP operating income adjustments
$
47,839
$
24,695
$
5,623
$
-
$
78,157
Operating income (non-GAAP)
$
291,977
$
165,300
$
8,846
$
(23,707
)
$
442,416
Operating margin (GAAP)
1.98
%
1.05
%
0.34
%
1.37
%
Operating margin (non-GAAP)
2.37
%
1.24
%
0.94
%
1.66
%
(1) GAAP operating income does not include stock
compensation expense at the regional level.
Nine months ended October 31,
2018
Americas (1) Europe (1) Asia Pacific (1)
StockCompensationExpense Consolidated Net
Sales
$
11,799,389
$
14,130,985
$
844,075
$
26,774,449
Operating income (GAAP) (1)
$
261,671
$
86,292
$
3,480
$
(23,694
)
$
327,749
Acquisition, integration and restructuring expenses
19,061
44,462
1,030
2,246
66,799
Legal settlements and other, net
(15,406
)
-
-
(15,406
)
Acquisition-related intangible assets amortization expense
40,782
23,696
4,064
68,542
Gain on disposal of subsidiary
-
(6,746
)
-
(6,746
)
Tax indemnifications
-
6,451
(356
)
6,095
Total non-GAAP operating income adjustments
$
44,437
$
67,863
$
4,738
$
2,246
$
119,284
Operating income (non-GAAP)
$
306,108
$
154,155
$
8,218
$
(21,448
)
$
447,033
Operating margin (GAAP)
2.22
%
0.61
%
0.41
%
1.22
%
Operating margin (non-GAAP)
2.59
%
1.09
%
0.97
%
1.67
%
(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 October
31,
2019
2018
Net Sales
$
9,118,944
$
9,340,029
SG&A Expenses (GAAP)
$
415,242
$
396,675
Tax indemnifications
(62
)
(5,541
)
Acquisition-related intangible assets amortization expense
(21,044
)
(22,523
)
SG&A Expenses (non-GAAP)
$
394,136
$
368,611
SG&A Expenses (GAAP) %
4.55
%
4.25
%
SG&A Expenses (non-GAAP) %
4.32
%
3.95
%
Nine
months ended October 31,
2019
2018
Net Sales
$
26,617,612
$
26,774,449
SG&A Expenses (GAAP)
$
1,252,752
$
1,234,355
Tax indemnifications
(647
)
(6,095
)
Acquisition-related intangible assets amortization expense
(63,105
)
(68,542
)
SG&A Expenses (non-GAAP)
$
1,189,000
$
1,159,718
SG&A Expenses (GAAP) %
4.71
%
4.61
%
SG&A Expenses (non-GAAP) %
4.47
%
4.33
%
TECH DATA CORPORATION AND
SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(In thousands)
Three months ended October 31,
2019
2018
Net Income Diluted EPS Net
Income Diluted EPS GAAP Results
$90,770
$2.52
$114,216
$2.96
Acquisition, integration and restructuring expenses
4,647
0.13
20,277
0.53
Legal settlements and other, net
-
-
(7,207)
(0.19)
Acquisition-related intangible assets amortization expense
21,044
0.59
22,523
0.58
Gain on disposal of subsidiary
(1,390)
(0.04)
(29)
-
Tax indemnifications
62
-
5,541
0.14
Income tax effect of tax indemnifications
(62)
-
(5,541)
(0.14)
Income tax effect of other adjustments above
(6,306)
(0.18)
(8,798)
(0.23)
Income tax benefit from acquisition settlement
-
-
(207)
-
Change in deferred tax valuation allowances
-
-
(473)
(0.01)
Impact of US tax reform
-
-
(24,000)
(0.62)
Non-GAAP Results
$108,765
$3.02
$116,302
$3.02
Nine months ended
October 31,
2019
2018
Net Income Diluted EPS Net
Income Diluted EPS GAAP Results
$225,420
$6.15
$223,781
$5.80
Acquisition, integration and restructuring expenses
16,077
0.44
66,799
1.73
Legal settlements and other, net
(282)
(0.01)
(15,406)
(0.40)
Acquisition-related intangible assets amortization expense
63,105
1.72
68,542
1.78
Gain on disposal of subsidiary
(1,390)
(0.04)
(6,746)
(0.17)
Tax indemnifications
647
0.02
6,095
0.16
Value added tax assessments and related interest expense
-
-
(928)
(0.02)
Income tax effect of tax indemnifications
(647)
(0.02)
(6,095)
(0.16)
Income tax effect of other adjustments above
(19,642)
(0.53)
(31,110)
(0.81)
Income tax benefit from acquisition settlement
-
-
(13,046)
(0.34)
Change in deferred tax valuation allowances
-
-
(3,073)
(0.08)
Impact of US tax reform
-
-
(24,000)
(0.62)
Non-GAAP Results
$283,288
$7.73
$264,813
$6.87
TECH DATA CORPORATION AND SUBSIDIARIES GAAP
TO NON-GAAP RECONCILIATION
(In thousands)
Return on Invested Capital (ROIC)
Twelve months ended October 31, TTM Net
Operating Profit After Tax (NOPAT)*:
2019
2018
Operating income
$
530,312
$
479,652
Income taxes on operating income (1)
(100,387
)
(184,189
)
NOPAT
$
429,925
$
295,463
Average Invested Capital:
Short-term debt (5-qtr end average)
$
119,103
$
117,542
Long-term debt (5-qtr end average)
1,298,291
1,504,148
Shareholders' Equity (5-qtr end average)
2,909,665
2,840,505
Total average capital
4,327,059
4,462,195
Less: Cash (5-qtr end average)
(789,103
)
(660,638
)
Average invested capital less average cash
$
3,537,956
$
3,801,557
ROIC
12
%
8
%
* 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 October 31, TTM
Net Operating Profit After Tax (NOPAT), as adjusted*:
2019
2018
Non-GAAP operating income (1)
$
703,269
$
662,984
Income taxes on non-GAAP operating income (2)
(166,278
)
(180,184
)
NOPAT, as adjusted
$
536,991
$
482,800
Average Invested Capital, as adjusted:
Short-term debt (5-qtr end average)
$
119,103
$
117,542
Long-term debt (5-qtr end average)
1,298,291
1,504,148
Shareholders' Equity (5-qtr end average)
2,909,665
2,840,505
Tax effected impact of non-GAAP adjustments (3)
48,846
90,378
Total average capital, as adjusted
4,375,905
4,552,573
Less: Cash (5-qtr end average)
(789,103
)
(660,638
)
Average invested capital less average cash
$
3,586,802
$
3,891,935
Adjusted ROIC
15
%
12
%
* 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191126005298/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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