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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

ScanSource Delivers Strong First Quarter Performance

November 9, 2021 GMT

GREENVILLE, S.C.--(BUSINESS WIRE)--Nov 9, 2021--

ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the first quarter ended September 30, 2021. All results in this release reflect continuing operations only unless otherwise noted.

First Quarter Summary:

Quarter ended September 30,

 

 

2021

 

 

 

2020

 

 

Change

 

(in thousands, except per share data)

Select reported measures:

 

 

 

 

 

Net sales

$

857,311

 

 

$

757,342

 

 

13.2

%

Gross profit

$

101,300

 

 

$

80,779

 

 

25.4

%

Gross profit margin %

 

11.82

%

 

 

10.67

%

 

115bp

Operating income

$

30,328

 

 

$

1,634

 

 

n/m

GAAP net income

$

22,073

 

 

$

(115

)

 

n/m

GAAP diluted EPS

$

0.86

 

 

$

(0.01

)

 

n/m

Select Non-GAAP measures:

 

 

 

 

 

Adjusted EBITDA

$

41,394

 

 

$

20,911

 

 

98.0

%

Adjusted EBITDA margin %

 

4.83

%

 

 

2.76

%

 

207bp

Non-GAAP net income

$

25,550

 

 

$

10,698

 

 

138.8

%

Non-GAAP diluted EPS

$

0.99

 

 

$

0.42

 

 

135.7

%

n/m - percentages are not meaningful

 

 

 

 

 

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“Excellent top-line growth driven by strong demand proves our hybrid distribution strategy is winning,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “Our business is built for top-line growth, and we realized operational leverage from this growth in our outstanding bottom-line results.”

Quarterly Results

Net sales for the first quarter of fiscal year 2022 totaled $857.3 million, up 13.2% year-over-year, or 12.9% year-over-year for organic growth. First quarter fiscal year 2022 net sales in the Specialty Technology Solutions segment increased 22.7% to $501.7 million, driven by broad-based growth across technologies. First quarter fiscal year 2022 net sales in Modern Communications & Cloud increased 2.0% to $355.6 million, reflecting the shift to cloud and subscriptions. For the Intelisys agency business, first quarter fiscal year 2022 net sales increased 13.7% year-over-year.

Gross profit for the first quarter of fiscal year 2022 totaled $101.3 million, up 25.4% year-over-year. Gross profit margin increased to 11.8% for the first quarter of fiscal year 2022, up from 10.7% for the prior year period. The increase is primarily due to a higher margin sales mix and higher vendor program recognition from higher sales.

For the first quarter of fiscal year 2022, operating income increased to $30.3 million from $1.6 million for the prior-year quarter. First quarter fiscal year 2022 non-GAAP operating income increased to $34.9 million for a 4.07% non-GAAP operating income margin, up from $15.8 million for the prior-year quarter.

On a GAAP basis, net income for the first quarter of fiscal year 2022 totaled $22.1 million, or $0.86 per diluted share, compared to net loss of $(0.1) million, or $(0.01) per diluted share, for the prior-year quarter. First quarter non-GAAP net income totaled $25.6 million, or $0.99 per diluted share, up from $10.7 million, or $0.42 per diluted share, for the prior-year quarter.

Adjusted EBITDA for the first quarter of fiscal year 2022 increased to $41.4 million, or 4.8% of net sales, compared to $20.9 million, or 2.8% of net sales in the prior-year quarter, primarily due to higher gross profits and operating leverage. Return on invested capital increased to 17.5% for first quarter fiscal year 2022.

Segment Changes

Effective with the first quarter of fiscal year 2022, the Company renamed its operating segments and aligned technologies with its hybrid distribution strategy across hardware, software, connectivity and cloud. The Company’s segments follow:

  • Specialty Technology Solutions (formerly Worldwide Barcode, Networking & Security)
  • Modern Communications & Cloud (formerly Worldwide Communications & Services)

This change better aligns the Company’s segment reporting with its go-to-market strategy. The reason the Company is making the change now is to reflect a supplier’s business transition between the Company’s technology segments. Both of the new segments include hardware, services, and recurring revenue opportunities. The Company reclassified certain prior year amounts in the segment results to conform with the current year presentation.

Annual Financial Outlook for Fiscal Year 2022

ScanSource reaffirms its previously provided guidance set forth below for the full fiscal year ended June 30, 2022.

 

 

FY22 Annual Outlook

Net sales growth, year-over-year

 

At least 5.5%

Adjusted EBITDA (non-GAAP)

 

At least $135 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash share-based compensation expense (effective with the first quarter of fiscal year 2022). For comparison, fiscal year 2021 Adjusted EBITDA, excluding share-based compensation totaled $118 million. ScanSource’s outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments, or other significant transactions that may be completed after the date hereof. These statements are forward-looking, and actual results may differ materially.

Webcast Details and Earnings Infographic

At approximately 4:15 p.m. ET today, an Earnings Infographic, 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 in a conference call today, November 9, 2021, at 5:00 p.m. ET. A webcast of the call will be available for all interested parties and can be accessed 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 Company’s FY22 outlook, operating strategy, supply chain challenges, capital allocation plans, growth opportunities and the impact of the COVID-19 pandemic, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, failure to hire and retain quality employees, risk to the Company’s business from a cyber-security attack, the failure to manage and implement the Company’s organic growth strategy, the impact of the COVID-19 pandemic on the Company’s operations and financial condition and the potential prolonged economic weakness brought on by COVID-19, a failure of the Company’s IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting the Company’s international operations, credit risks involving the Company’s larger customers and suppliers, loss of the Company’s major customers, termination of the Company’s relationship with key suppliers or a significant modification of the terms under which it operates with a key supplier, 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, 2021, 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 (organic growth): 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.

Income Statement Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, the Company discloses non-GAAP net sales, non-GAAP gross profit, non-GAAP operating income, non-GAAP other expense, net, non-GAAP pre-tax income, non-GAAP net income and non-GAAP diluted earnings per share (non-GAAP diluted “EPS”). Non-GAAP results exclude amortization of intangible assets related to acquisitions, changes in fair value of contingent consideration, acquisition and divestiture costs, impairment charges, restructuring costs, and other non-GAAP adjustments. These year-over-year metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding the Company’s operating performance, especially when comparing results with previous periods or forecasting performance for future periods.

Adjusted earnings before interest expense, income taxes, depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, changes in fair value of contingent considerations, and other non-GAAP adjustments, including acquisition and divestiture costs, impairment charges, and restructuring costs. Effective with the first quarter of fiscal year 2022, non-cash share-based compensation expense will also be added back in calculating Adjusted EBITDA. Since Adjusted EBITDA excludes some non-cash costs of investing in our business and people, management believes that Adjusted EBITDA shows the profitability from our business operations more clearly.

Return on invested capital (“ROIC”): ROIC assists management in comparing the Company’s performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance. We believe the calculation of ROIC provides useful information to investors and is an additional relevant comparison of our performance. ROIC is calculated as Adjusted EBITDA over invested capital. 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 a leading hybrid distributor connecting devices to the cloud and accelerating growth for partners across hardware, software, connectivity and cloud. ScanSource enables partners to deliver solutions for their customers to address changing end-user buying and consumption patterns. ScanSource sells through multiple, specialized routes-to-market with hardware, software, connectivity and cloud 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. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2021 Best Places to Work in South Carolina and on FORTUNE magazine’s 2021 List of World’s Most Admired Companies. ScanSource ranks #655 on the Fortune 1000. For more information, visit www.scansource.com.

 

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

September 30, 2021

 

June 30, 2021*

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

55,491

 

 

$

62,718

 

Accounts receivable, less allowance of $17,620 at September 30, 2021

and $19,341 at June 30, 2021

 

589,532

 

 

 

568,984

 

Inventories

 

493,541

 

 

 

470,081

 

Prepaid expenses and other current assets

 

117,849

 

 

 

117,860

 

Total current assets

 

1,256,413

 

 

 

1,219,643

 

Property and equipment, net

 

40,763

 

 

 

42,836

 

Goodwill

 

216,948

 

 

 

218,877

 

Identifiable intangible assets, net

 

99,496

 

 

 

104,860

 

Deferred income taxes

 

21,806

 

 

 

21,853

 

Other non-current assets

 

61,925

 

 

 

63,615

 

Non-current assets held for sale

 

 

 

 

 

Total assets

$

1,697,351

 

 

$

1,671,684

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

602,229

 

 

$

634,805

 

Accrued expenses and other current liabilities

 

72,362

 

 

 

87,790

 

Income taxes payable

 

9,039

 

 

 

2,501

 

Current portion of long-term debt

 

8,785

 

 

 

7,843

 

Total current liabilities

 

692,415

 

 

 

732,939

 

Deferred income taxes

 

3,846

 

 

 

3,954

 

Long-term debt, net of current portion

 

132,171

 

 

 

135,331

 

Borrowings under revolving credit facility

 

56,400

 

 

 

 

Other long-term liabilities

 

66,425

 

 

 

68,269

 

Total liabilities

 

951,257

 

 

 

940,493

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Preferred stock, no par value; 3,000,000 shares authorized, none issued

 

 

 

 

 

Common stock, no par value; 45,000,000 shares authorized, 25,528,551 and 25,499,465 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively

 

74,817

 

 

 

71,253

 

Retained earnings

 

780,144

 

 

 

758,071

 

Accumulated other comprehensive loss

 

(108,867

)

 

 

(98,133

)

Total shareholders’ equity

 

746,094

 

 

 

731,191

 

Total liabilities and shareholders’ equity

$

1,697,351

 

 

$

1,671,684

 

 

*Derived from audited financial statements.

 

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share data)

 

 

 

 

 

Quarter ended September 30,

 

 

2021

 

 

 

2020

 

Net sales

$

857,311

 

 

$

757,342

 

Cost of goods sold

 

756,011

 

 

 

676,563

 

Gross profit

101,300

80,779

 

Selling, general and administrative expenses

 

63,582

 

 

 

62,112

 

Depreciation expense

 

2,880

 

 

 

3,396

 

Intangible amortization expense

 

4,510

 

 

 

4,853

 

Restructuring and other charges

 

 

 

 

8,268

 

Change in fair value of contingent consideration

 

 

 

 

516

 

Operating income

 

30,328

 

 

 

1,634

 

Interest expense

 

1,660

 

 

 

1,913

 

Interest income

 

(1,026

)

 

 

(481

)

Other expense (income), net

 

263

 

 

 

364

 

Income before income taxes

 

29,431

 

 

 

(162

)

Provision for income taxes

 

7,358

 

 

 

(47

)

Net income (loss) from continuing operations

 

22,073

 

 

 

(115

)

Net loss from discontinued operations

 

 

 

 

(11,704

)

Net income (loss)

$

22,073

 

 

$

(11,819

)

Per share data:

 

 

 

 

 

 

 

Net income (loss) from continuing operations per common share, basic

$

0.87

 

 

$

(0.01

)

Net loss from discontinued operations per common share, basic

 

 

 

 

(0.46

)

Net income (loss) per common share, basic

$

0.87

 

 

$

(0.47

)

Weighted-average shares outstanding, basic

 

25,512

 

 

 

25,361

 

 

 

 

 

Net income (loss) from continuing operations per common share, diluted

$

0.86

 

 

$

(0.01

)

Net loss from discontinued operations per common share, diluted

 

 

 

 

(0.46

)

Net income (loss) per common share, diluted

$

0.86

 

 

$

(0.47

)

Weighted-average shares outstanding, diluted

 

25,696

 

 

 

25,361

 

 

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

Quarter ended September 30,

 

 

2021

 

 

 

2020

 

Cash flows from operating activities:

 

 

 

Net income (loss)

$

22,073

 

 

$

(11,819

)

Net loss from discontinued operations

 

 

 

 

(11,704

)

Net income (loss) from continuing operations

 

22,073

 

 

 

(115

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations:

 

 

 

Depreciation and amortization

 

7,650

 

 

 

8,710

 

Amortization of debt issue costs

 

104

 

 

 

104

 

Provision for doubtful accounts

 

(1,027

)

 

 

(8

)

Share-based compensation

 

2,570

 

 

 

1,168

 

Deferred income taxes

 

(183

)

 

 

139

 

Change in fair value of contingent consideration

 

 

 

 

516

 

Finance lease interest

 

17

 

 

 

37

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(26,714

)

 

 

(68,726

)

Inventories

 

(25,879

)

 

 

31,155

 

Prepaid expenses and other assets

 

(1,174

)

 

 

2,369

 

Other non-current assets

 

691

 

 

 

(274

)

Accounts payable

 

(26,962

)

 

 

92,419

 

Accrued expenses and other liabilities

 

(14,683

)

 

 

7,827

 

Income taxes payable

 

6,558

 

 

 

(4,096

)

Net cash (used in) provided by operating activities of continuing operations

 

(56,959

)

 

 

71,225

 

Cash flows from investing activities of continuing operations:

 

 

 

Capital expenditures

 

(1,090

)

 

 

(748

)

Net cash used in investing activities of continuing operations

 

(1,090

)

 

 

(748

)

Cash flows from financing activities of continuing operations:

 

 

 

Borrowings on revolving credit, net of expenses

 

526,637

 

 

 

477,381

 

Repayments on revolving credit, net of expenses

 

(470,237

)

 

 

(545,095

)

Borrowings on long-term debt, net

 

(2,218

)

 

 

(2,214

)

Repayments of finance lease obligations

 

(316

)

 

 

(327

)

Exercise of stock options

 

994

 

 

 

 

Net cash provided by (used in) financing activities of continuing operations

 

54,860

 

 

 

(70,255

)

 

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited), continued

(in thousands)

 

 

 

 

Cash flows from discontinued operations:

 

 

 

Net cash flows provided by operating activities of discontinued operations

 

 

 

 

31,853

 

Net cash flows used in investing activities of discontinued operations

 

 

 

 

(36

)

Net cash flows used in financing activities of discontinued operations

 

 

 

 

(9,488

)

Net cash flows provided by discontinued operations

 

 

 

 

22,329

 

Effect of exchange rate changes on cash and cash equivalents

 

(4,038

)

 

 

(1,439

)

(Decrease) Increase in cash and cash equivalents

 

(7,227

)

 

 

21,112

 

Consolidated cash and cash equivalents at beginning of period

 

62,718

 

 

 

34,455

 

Consolidated cash and cash equivalents at end of period

 

55,491

 

 

 

55,567

 

Cash and cash equivalents of discontinued operations

 

 

 

 

5,678

 

Cash and cash equivalents of continuing operations

$

55,491

 

 

$

49,889

 

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

(in thousands, except percentages)

 

 

 

 

Non-GAAP Financial Information:

 

Quarter ended September 30,

 

 

2021

 

 

 

2020

 

Return on invested capital ratio (ROIC), annualized (a)

 

17.5

%

 

 

8.9

%

 

 

 

 

Reconciliation of net income to adjusted EBITDA:

 

 

 

Net income (loss) from continuing operations (GAAP)

$

22,073

 

 

$

(115

)

Plus: Interest expense

 

1,660

 

 

 

1,913

 

Plus: Income taxes

 

7,358

 

 

 

(47

)

Plus: Depreciation and amortization

 

7,650

 

 

 

8,710

 

EBITDA (non-GAAP)

 

38,741

 

 

 

10,461

 

Plus: Change in fair value of contingent consideration

 

 

 

 

516

 

Plus: Share-based compensation

 

2,570

 

 

 

1,168

 

Plus: Acquisition and divestiture costs (b)

 

83

 

 

 

498

 

Plus: Restructuring costs

 

 

 

 

8,268

 

Adjusted EBITDA (numerator for ROIC) (non-GAAP)

$

41,394

 

 

$

20,911

 

 

 

 

 

Invested Capital Calculations:

 

 

 

Equity – beginning of the quarter

$

731,191

 

 

$

678,246

 

Equity – end of the quarter

 

746,094

 

 

 

671,227

 

Plus: Change in fair value of contingent consideration, net of tax

 

 

 

 

390

 

Plus: Share-based compensation, net

 

1,922

 

 

 

878

 

Plus: Acquisition and divestiture costs (b)

 

83

 

 

 

498

 

Plus: Restructuring, net

 

 

 

 

6,250

 

Plus: Discontinued operations net loss

 

 

 

 

11,704

 

Average equity

 

739,645

 

 

 

684,597

 

Average funded debt (c)

 

197,406

 

 

 

243,268

 

Invested capital (denominator for ROIC) (non-GAAP)

$

937,051

 

 

$

927,865

 

 

 

 

 

(a) The annualized adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 92 days in the current and prior-year quarter.

(b) Acquisition and divestiture costs are generally nondeductible for tax purposes.

(c) Average funded debt, which includes both continuing and discontinued operations, is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

Net Sales by Segment:

 

 

 

 

Quarter ended September 30,

 

 

 

 

2021

 

 

 

2020

 

 

% Change

Specialty Technology Solutions:

(in thousands)

 

 

Net sales, reported

$

501,711

 

 

$

408,777

 

22.7

%

Foreign exchange impact (a)

 

(467

)

 

 

 

 

 

Non-GAAP net sales, constant currency

$

501,244

 

 

$

408,777

 

 

22.6

%

 

 

 

 

 

 

Modern Communications & Cloud:

 

 

 

 

 

Net sales, reported

$

355,600

 

 

$

348,565

 

 

2.0

%

Foreign exchange impact (a)

 

(1,970

)

 

 

 

 

 

Non-GAAP net sales, constant currency

$

353,630

 

 

$

348,565

 

 

1.5

%

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

Net sales, reported

$

857,311

 

 

$

757,342

 

 

13.2

%

Foreign exchange impact (a)

 

(2,437

)

 

 

 

 

 

Non-GAAP net sales, constant currency

$

854,874

 

 

$

757,342

 

 

12.9

%

 

 

 

 

 

 

(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 September 30, 2021 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2020.

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

 

 

Net Sales by Geography:

 

 

 

 

Quarter ended September 30,

 

 

 

 

2021

 

 

 

2020

 

 

% Change

United States and Canada:

(in thousands)

 

 

Net sales, as reported

$

769,499

 

 

$

683,603

 

12.6

%

 

 

 

 

 

 

International:

 

 

 

 

 

Net sales, reported

$

87,812

 

 

$

73,739

 

 

19.1

%

Foreign exchange impact (a)

 

(2,437

)

 

 

 

 

 

Non-GAAP net sales, constant currency

$

85,375

 

 

$

73,739

 

 

15.8

%

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

Net sales, reported

$

857,311

 

 

$

757,342

 

 

13.2

%

Foreign exchange impact (a)

 

(2,437

)

 

 

 

 

 

Non-GAAP net sales, constant currency

$

854,874

 

 

$

757,342

 

 

12.9

%

 

 

 

 

 

 

(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 September 30, 2021 into U.S. dollars using the average foreign exchange rates for the quarter ended September 30, 2020.

 

 

Quarter ended September 30, 2021

 

GAAP Measure

 

Intangible amortization expense

 

Change in fair value of contingent consideration

 

Acquisition and divestiture costs

 

Restructuring costs

 

Non-GAAP measure

 

(in thousands, except per share data)

Net sales

$

857,311

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

857,311

 

Gross profit

101,300

 

 

 

 

 

 

 

 

 

 

101,300

 

Operating income

30,328

 

 

4,510

 

 

 

 

83

 

 

 

 

34,921

 

Other expense, net

897

 

 

 

 

 

 

 

 

 

 

897

 

Pre-tax income

29,431

 

 

4,510

 

 

 

 

83

 

 

 

 

34,024

 

Net income

22,073

 

 

3,394

 

 

 

 

83

 

 

 

 

25,550

 

Diluted EPS

$

0.86

 

 

$

0.13

 

 

$

 

 

$

 

 

$

 

 

$

0.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended September 30, 2020

 

GAAP Measure

 

Intangible amortization expense

 

Change in fair value of contingent consideration

 

Acquisition and divestiture costs

 

Restructuring costs

 

Non-GAAP measure

 

(in thousands, except per share data)

Net sales

$

757,342

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

757,342

 

Gross profit

80,779

 

 

 

 

 

 

 

 

 

 

80,779

 

Operating (loss) income

1,634

 

 

4,853

 

 

516

 

 

498

 

 

8,268

 

 

15,769

 

Other expense, net

1,796

 

 

 

 

 

 

 

 

 

 

1,796

 

Pre-tax (loss) income

(162

)

 

4,853

 

 

516

 

 

498

 

 

8,268

 

 

13,973

 

Net (loss) income

(115

)

 

3,675

 

 

390

 

 

498

 

 

6,250

 

 

10,698

 

Diluted EPS

$

(0.01

)

 

$

0.14

 

 

$

0.02

 

 

$

0.02

 

 

$

0.25

 

 

$

0.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Forward-Looking Information (Unaudited)

 

 

 

 

 

Annual Financial Outlook for Fiscal Year 2022:

 

 

 

 

 

 

 

 

 

 

FY22 Outlook

 

GAAP, Operating Income

 

At least $92 million

Intangible amortization

 

$18 million

Depreciation expense

 

$14 million

Share-based compensation expense

 

$11 million

Adjusted EBITDA (non-GAAP)

 

At least $135 million

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

(in thousands, except per share data)

 

Segment Information:

 

Quarter Ended

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

September 30, 2020

Sales:

 

 

 

 

 

 

 

 

 

Specialty Technology Solutions

$

501,711

 

 

$

515,445

 

 

$

436,462

 

 

$

455,248

 

 

$

408,777

 

Modern Communications & Cloud

 

355,600

 

 

 

337,249

 

 

 

293,411

 

 

 

355,649

 

 

 

348,565

 

 

$

857,311

 

 

$

852,694

 

 

$

729,873

 

 

$

810,897

 

 

$

757,342

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

Specialty Technology Solutions

$

2,969

 

 

$

3,139

 

 

$

3,200

 

 

$

3,308

 

 

$

3,545

 

Modern Communications & Cloud

 

3,962

 

 

 

4,233

 

 

 

4,439

 

 

 

4,246

 

 

 

4,370

 

Corporate

 

719

 

 

 

719

 

 

 

719

 

 

 

794

 

 

 

795

 

 

$

7,650

 

 

$

8,091

 

 

$

8,358

 

 

$

8,348

 

 

$

8,710

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

Specialty Technology Solutions

$

14,104

 

 

$

12,011

 

 

$

8,713

 

 

$

7,160

 

 

$

1,684

 

Modern Communications & Cloud

 

16,307

 

 

 

11,466

 

 

 

11,555

 

 

 

11,814

 

 

 

8,716

 

Corporate

 

(83

)

 

 

(191

)

 

 

(832

)

 

 

(1,844

)

 

 

(8,766

)

 

$

30,328

 

 

$

23,286

 

 

$

19,436

 

 

$

17,130

 

 

$

1,634

 

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211109006489/en/

CONTACT: Steve Jones

Senior EVP, Chief Financial Officer

ScanSource, Inc.

(864) 286-4302Mary M. Gentry

SVP, Treasurer and Investor Relations

ScanSource, Inc.

(864) 286-4892

KEYWORD: SOUTH CAROLINA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: SOFTWARE TECHNOLOGY NETWORKS HARDWARE

SOURCE: ScanSource, Inc.

Copyright Business Wire 2021.

PUB: 11/09/2021 04:05 PM/DISC: 11/09/2021 04:06 PM

http://www.businesswire.com/news/home/20211109006489/en