ScanSource Delivers Strong Fourth Quarter Sales and Profitability Growth
ScanSource (NASDAQ: SCSC) reported a robust fourth quarter for fiscal year 2021, with net sales reaching $852.7 million, representing a 34% increase year-over-year. The gross profit also increased by 29% to $95.8 million. Non-GAAP operating income surged 245% year-over-year to $28.4 million, while net income from continuing operations amounted to $20.7 million, or $0.80 per diluted share. The company announced a new $100 million share repurchase authorization and projected at least 5.5% growth in net sales for FY22.
- Net sales increased to $852.7 million, up 34% year-over-year.
- Gross profit improved to $95.8 million, a 29% increase from the previous year.
- Non-GAAP operating income rose 245% to $28.4 million.
- Net income from continuing operations was $20.7 million, compared to a net loss of $108.9 million in the previous year.
- Announced a new $100 million share repurchase authorization.
- None.
Outstanding execution of growth opportunities; quarterly net sales up
Initiates annual financial outlook for FY22
Announces new
Fourth Quarter Summary:
-
Net sales:
$852.7 million 34% year-over-year -
Gross profit:
$95.8 million 29% year-over-year -
GAAP operating income of
$23.3 million 2.73% operating income margin -
Non-GAAP operating income of
$28.4 million 245% year-over-year, for a3.33% non-GAAP operating
income margin -
Net income from continuing operations of
$20.7 million -
GAAP diluted EPS of
$0.80 $0.96 -
Generated strong operating cash flow of
$61.3 million $116.8 million -
Return on invested capital increased to
14.9% for the quarter
“Our employees delivered strong fourth quarter net sales and profitability growth with operational excellence across our business,” said
Quarterly Results
Net sales for the fourth quarter of fiscal year 2021 totaled
For the fourth quarter of fiscal year 2021, operating income increased to
On a GAAP basis, net income for the fourth quarter of fiscal year 2021 totaled
Full-Year Results
For fiscal year 2021, net sales increased
On a GAAP basis, net income for fiscal year 2021 totaled
Share Repurchase Authorization
"In setting our capital allocation priorities, our top priority is reinvestment in the growth of our business and driving value creation for our shareholders," said
Repurchases may be made in the open market or through privately negotiated transactions, and
Annual Financial Outlook for Fiscal Year 2022
The following statements are based on
|
|
FY22 Annual Outlook |
Net sales growth, year-over-year |
|
At least |
Adjusted EBITDA (non-GAAP) |
|
At least |
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
Webcast Details and CFO Commentary
At approximately
Safe Harbor Statement
This press release contains “forward-looking” statements, including regarding the Company's FY22 outlook, 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
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
|
|||||||
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
(in thousands) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
62,718 |
|
|
$ |
29,485 |
|
Accounts receivable, less allowance of
and |
568,984 |
|
|
443,185 |
|
||
Inventories |
470,081 |
|
|
454,885 |
|
||
Prepaid expenses and other current assets |
117,860 |
|
|
94,681 |
|
||
Current assets held for sale |
— |
|
|
181,231 |
|
||
Total current assets |
1,219,643 |
|
|
1,203,467 |
|
||
Property and equipment, net |
42,836 |
|
|
55,641 |
|
||
|
218,877 |
|
|
214,288 |
|
||
Identifiable intangible assets, net |
104,860 |
|
|
121,547 |
|
||
Deferred income taxes |
21,853 |
|
|
24,630 |
|
||
Other non-current assets |
63,615 |
|
|
72,521 |
|
||
Total assets |
$ |
1,671,684 |
|
|
$ |
1,692,094 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
634,805 |
|
|
$ |
454,240 |
|
Accrued expenses and other current liabilities |
87,790 |
|
|
76,686 |
|
||
Current portion of contingent consideration |
— |
|
|
46,334 |
|
||
Income taxes payable |
2,501 |
|
|
5,886 |
|
||
Current portion of long-term debt |
7,843 |
|
|
7,839 |
|
||
Current liabilities held for sale |
— |
|
|
128,022 |
|
||
Total current liabilities |
732,939 |
|
|
719,007 |
|
||
Deferred income taxes |
3,954 |
|
|
3,884 |
|
||
Long-term debt, net of current portion |
135,331 |
|
|
143,175 |
|
||
Borrowings under revolving credit facility |
— |
|
|
67,714 |
|
||
Other long-term liabilities |
68,269 |
|
|
80,068 |
|
||
Total liabilities |
940,493 |
|
|
1,013,848 |
|
||
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, 25,499,465 and 25,361,298 shares issued and outstanding at |
71,253 |
|
|
63,765 |
|
||
Retained earnings |
758,071 |
|
|
747,276 |
|
||
Accumulated other comprehensive loss |
(98,133) |
|
|
(132,795) |
|
||
Total shareholders’ equity |
731,191 |
|
|
678,246 |
|
||
Total liabilities and shareholders’ equity |
$ |
1,671,684 |
|
|
$ |
1,692,094 |
|
*Derived from audited financial statements. |
|||||||
|
|||||||||||||||
Condensed Consolidated Income Statements (Unaudited) |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Quarter ended |
|
Fiscal year ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net sales |
$ |
852,694 |
|
|
$ |
636,450 |
|
|
$ |
3,150,806 |
|
|
$ |
3,047,734 |
|
Cost of goods sold |
756,916 |
|
|
562,303 |
|
|
2,800,090 |
|
|
2,692,165 |
|
||||
Gross profit |
95,778 |
|
|
74,147 |
|
|
350,716 |
|
|
355,569 |
|
||||
Selling, general and administrative expenses |
64,758 |
|
|
58,192 |
|
|
247,438 |
|
|
259,535 |
|
||||
Depreciation expense |
2,898 |
|
|
3,304 |
|
|
12,533 |
|
|
13,033 |
|
||||
Intangible amortization expense |
4,893 |
|
|
4,946 |
|
|
19,488 |
|
|
19,953 |
|
||||
Restructuring and other charges |
(54) |
|
|
— |
|
|
9,258 |
|
|
604 |
|
||||
Impairment charges |
— |
|
|
120,470 |
|
|
— |
|
|
120,470 |
|
||||
Change in fair value of contingent consideration |
— |
|
|
674 |
|
|
516 |
|
|
6,941 |
|
||||
Operating income (loss) |
23,283 |
|
|
(113,439) |
|
|
61,483 |
|
|
(64,967) |
|
||||
Interest expense |
1,643 |
|
|
2,497 |
|
|
6,929 |
|
|
12,224 |
|
||||
Interest income |
(1,341) |
|
|
(3,199) |
|
|
(3,097) |
|
|
(5,826) |
|
||||
Other expense (income), net |
(65) |
|
|
213 |
|
|
116 |
|
|
411 |
|
||||
Income before income taxes |
23,046 |
|
|
(112,950) |
|
|
57,535 |
|
|
(71,776) |
|
||||
Provision for income taxes |
2,389 |
|
|
(4,091) |
|
|
12,146 |
|
|
7,451 |
|
||||
Net income (loss) from continuing operations |
20,657 |
|
|
(108,859) |
|
|
45,389 |
|
|
(79,227) |
|
||||
Net income (loss) from discontinued operations |
3,053 |
|
|
(108,403) |
|
|
(34,594) |
|
|
(113,427) |
|
||||
Net income (loss) |
$ |
23,710 |
|
|
$ |
(217,262) |
|
|
$ |
10,795 |
|
|
$ |
(192,654) |
|
Per share data: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations per common share, basic |
$ |
0.81 |
|
|
$ |
(4.29) |
|
|
$ |
1.79 |
|
|
$ |
(3.12) |
|
Net income (loss) from discontinued operations per common share, basic |
0.12 |
|
|
(4.28) |
|
|
(1.36) |
|
|
(4.47) |
|
||||
Net income (loss) per common share, basic |
$ |
0.93 |
|
|
$ |
(8.57) |
|
|
$ |
0.42 |
|
|
$ |
(7.59) |
|
Weighted-average shares outstanding, basic |
25,482 |
|
|
25,353 |
|
|
25,423 |
|
|
25,378 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations per common share, diluted |
$ |
0.80 |
|
|
$ |
(4.29) |
|
|
$ |
1.78 |
|
|
$ |
(3.12) |
|
Net income (loss) from discontinued operations per common share, diluted |
0.12 |
|
|
(4.28) |
|
|
(1.36) |
|
|
(4.47) |
|
||||
Net income (loss) per common share, diluted |
$ |
0.92 |
|
|
$ |
(8.57) |
|
|
$ |
0.42 |
|
|
$ |
(7.59) |
|
Weighted-average shares outstanding, diluted |
25,664 |
|
|
25,353 |
|
|
25,518 |
|
|
25,378 |
|
||||
|
|||||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
Quarter ended |
|
Fiscal year ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
23,710 |
|
|
$ |
(217,262) |
|
|
$ |
10,795 |
|
|
$ |
(192,654) |
|
Net income (loss) from discontinued operations |
3,053 |
|
|
(108,403) |
|
|
(34,594) |
|
|
(113,427) |
|
||||
Net income (loss) from continuing operations |
20,657 |
|
|
(108,859) |
|
|
45,389 |
|
|
(79,227) |
|
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
8,090 |
|
|
8,743 |
|
|
33,507 |
|
|
35,328 |
|
||||
Amortization of debt issue costs |
104 |
|
|
104 |
|
|
417 |
|
|
417 |
|
||||
Provision for doubtful accounts |
112 |
|
|
222 |
|
|
338 |
|
|
1,621 |
|
||||
Share-based compensation |
2,328 |
|
|
1,425 |
|
|
8,039 |
|
|
5,478 |
|
||||
Impairment charges |
— |
|
|
120,470 |
|
|
— |
|
|
120,470 |
|
||||
Deferred income taxes |
2,941 |
|
|
(10,714) |
|
|
2,916 |
|
|
(12,193) |
|
||||
Change in fair value of contingent consideration |
— |
|
|
674 |
|
|
516 |
|
|
6,941 |
|
||||
Contingent consideration payments excess |
— |
|
|
— |
|
|
(5,457) |
|
|
(3,050) |
|
||||
Finance lease interest |
23 |
|
|
21 |
|
|
119 |
|
|
85 |
|
||||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
(50,204) |
|
|
57,562 |
|
|
(118,859) |
|
|
57,477 |
|
||||
Inventories |
(6,394) |
|
|
93,623 |
|
|
(12,301) |
|
|
86,177 |
|
||||
Prepaid expenses and other assets |
(17,111) |
|
|
(2,903) |
|
|
(18,753) |
|
|
(13,880) |
|
||||
Other non-current assets |
7,102 |
|
|
(12,534) |
|
|
9,948 |
|
|
(13,563) |
|
||||
Accounts payable |
105,511 |
|
|
(76,224) |
|
|
175,120 |
|
|
(20,846) |
|
||||
Accrued expenses and other liabilities |
(8,928) |
|
|
(1,992) |
|
|
(493) |
|
|
11,239 |
|
||||
Income taxes payable |
(2,886) |
|
|
4,334 |
|
|
(3,679) |
|
|
(441) |
|
||||
Net cash provided by operating activities of continuing operations |
61,345 |
|
|
73,952 |
|
|
116,767 |
|
|
182,033 |
|
||||
Cash flows from investing activities of continuing operations: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
(80) |
|
|
188 |
|
|
(2,363) |
|
|
(6,387) |
|
||||
Cash paid for business acquisitions, net of cash acquired |
— |
|
|
— |
|
|
— |
|
|
(48,921) |
|
||||
Cash received for business disposal |
— |
|
|
— |
|
|
34,356 |
|
|
— |
|
||||
Net cash (used in) provided by investing activities of continuing operations |
(80) |
|
|
188 |
|
|
31,993 |
|
|
(55,308) |
|
||||
Cash flows from financing activities of continuing operations: |
|
|
|
|
|
|
|
||||||||
Borrowings on revolving credit, net of expenses |
395,215 |
|
|
477,446 |
|
|
1,881,679 |
|
|
2,085,918 |
|
||||
Repayments on revolving credit, net of expenses |
(449,017) |
|
|
(539,732) |
|
|
(1,949,392) |
|
|
(2,190,595) |
|
||||
Borrowings on long-term debt, net |
(1,875) |
|
|
(938) |
|
|
(7,839) |
|
|
(4,085) |
|
||||
Repayments of finance lease obligations |
(320) |
|
|
(1,105) |
|
|
(1,294) |
|
|
(1,765) |
|
||||
Contingent consideration payments |
— |
|
|
— |
|
|
(41,393) |
|
|
(35,482) |
|
||||
Exercise of stock options |
12 |
|
|
— |
|
|
451 |
|
|
754 |
|
||||
Taxes paid on settlement of equity awards |
— |
|
|
— |
|
|
(1,036) |
|
|
(1,353) |
|
||||
Repurchase of common stock |
— |
|
|
— |
|
|
— |
|
|
(6,078) |
|
||||
Net cash used in financing activities of continuing operations |
(55,985) |
|
|
(64,329) |
|
|
(118,824) |
|
|
(152,686) |
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
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 |
2,469 |
|
|
2,235 |
|
|
24,173 |
|
|
44,238 |
|
||||
Net cash flows used in investing activities of discontinued operations |
— |
|
|
(35) |
|
|
(58) |
|
|
(77) |
|
||||
Net cash flows used in financing activities of discontinued operations |
— |
|
|
(10,663) |
|
|
(29,494) |
|
|
(3,921) |
|
||||
Net cash flows provided by (used in) discontinued operations |
2,469 |
|
|
(8,463) |
|
|
(5,379) |
|
|
40,240 |
|
||||
Effect of exchange rate changes on cash and cash equivalents |
5,648 |
|
|
(1,489) |
|
|
3,706 |
|
|
(3,642) |
|
||||
Increase (decrease) in cash and cash equivalents |
13,397 |
|
|
(141) |
|
|
28,263 |
|
|
10,637 |
|
||||
Consolidated cash and cash equivalents at beginning of period |
49,321 |
|
|
34,596 |
|
|
34,455 |
|
|
23,818 |
|
||||
Consolidated cash and cash equivalents at end of period |
62,718 |
|
|
34,455 |
|
|
62,718 |
|
|
34,455 |
|
||||
Cash and cash equivalents of discontinued operations |
— |
|
|
— |
|
|
— |
|
|
4,970 |
|
||||
Cash and cash equivalents of continuing operations |
$ |
62,718 |
|
|
$ |
34,455 |
|
|
$ |
62,718 |
|
|
$ |
29,485 |
|
|
|||||||||||||||||||
Supplementary Information (Unaudited) |
|||||||||||||||||||
(in thousands, except percentages) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP Financial Information: |
|
|
|
||||||||||||||||
|
Quarter ended |
|
Fiscal year ended |
||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
Return on invested capital ratio (ROIC), annualized (a) |
14.9 |
% |
|
4.0 |
% |
|
11.8 |
% |
|
7.5 |
% |
||||||||
|
|
|
|
|
|
|
|
||||||||||||
Reconciliation of net income to EBITDA: |
|
|
|
|
|
|
|
||||||||||||
Net income (loss) from continuing operations (GAAP) |
$ |
20,657 |
|
|
$ |
(108,859 |
) |
|
$ |
45,389 |
|
|
$ |
(79,227 |
) |
||||
Plus: Interest expense |
1,643 |
|
|
2,497 |
|
|
6,929 |
|
|
12,224 |
|
||||||||
Plus: Income taxes |
2,389 |
|
|
(4,091 |
) |
|
12,146 |
|
|
7,451 |
|
||||||||
Plus: Depreciation and amortization |
8,090 |
|
|
8,743 |
|
|
33,507 |
|
|
35,328 |
|
||||||||
EBITDA (non-GAAP) |
32,779 |
|
|
(101,710 |
) |
|
97,971 |
|
|
(24,224 |
) |
||||||||
Plus: Change in fair value of contingent consideration |
— |
|
|
674 |
|
|
516 |
|
|
6,941 |
|
||||||||
Plus: Acquisition and divestiture costs(b) |
246 |
|
|
1,311 |
|
|
2,376 |
|
|
4,000 |
|
||||||||
Plus: Restructuring costs |
(54 |
) |
|
— |
|
|
9,047 |
|
|
604 |
|
||||||||
Plus: Impairment charges |
— |
|
|
120,470 |
|
|
— |
|
|
120,470 |
|
||||||||
Plus: Tax recovery |
— |
|
|
(8,424 |
) |
|
— |
|
|
(10,744 |
) |
||||||||
Adjusted EBITDA (numerator for ROIC) (non-GAAP) |
$ |
32,971 |
|
|
$ |
12,321 |
|
|
$ |
109,910 |
|
|
$ |
97,047 |
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Invested Capital Calculations: |
|
|
|
|
|
|
|
||||||||||||
Equity – beginning of the quarter (c) |
$ |
690,575 |
|
|
$ |
897,678 |
|
|
$ |
678,246 |
|
|
$ |
914,129 |
|
||||
Equity – end of the quarter (c) |
731,191 |
|
|
678,246 |
|
|
731,191 |
|
|
678,246 |
|
||||||||
Plus: Change in fair value of contingent consideration, net of tax |
— |
|
|
510 |
|
|
390 |
|
|
5,247 |
|
||||||||
Plus: Acquisition and divestiture costs(b) |
207 |
|
|
1,311 |
|
|
2,337 |
|
|
4,000 |
|
||||||||
Plus: Restructuring, net |
(40 |
) |
|
— |
|
|
6,840 |
|
|
449 |
|
||||||||
Plus: Impact of discontinued operations, net |
(3,053 |
) |
|
108,403 |
|
|
34,594 |
|
|
113,427 |
|
||||||||
Plus: Impairment charges, net |
— |
|
|
114,398 |
|
|
— |
|
|
114,398 |
|
||||||||
Plus: Tax recovery, net |
— |
|
|
(6,247 |
) |
|
— |
|
|
(8,001 |
) |
||||||||
Average equity |
709,440 |
|
|
897,150 |
|
|
726,799 |
|
|
910,948 |
|
||||||||
Average funded debt (d) |
177,074 |
|
|
337,973 |
|
|
202,869 |
|
|
390,709 |
|
||||||||
Invested capital (denominator for ROIC) (non-GAAP) |
$ |
886,514 |
|
|
$ |
1,235,123 |
|
|
$ |
929,668 |
|
|
$ |
1,301,657 |
|
||||
|
|
|
|
|
|
|
|
||||||||||||
(a) The annualized EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for |
|||||||||||||||||||
(b) Acquisition and divestiture costs are generally nondeductible for tax purposes. |
|||||||||||||||||||
(c) In the quarter ending |
|||||||||||||||||||
(d) 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. |
|||||||||||||||||||
|
||||||||||
Supplementary Information (Unaudited) |
||||||||||
|
|
|
|
|||||||
|
|
|
|
|||||||
|
Quarter ended |
|
|
|||||||
|
2021 |
|
2020 |
|
% Change |
|||||
Worldwide Barcode, Networking & Security: |
(in thousands) |
|
|
|||||||
Net sales, reported |
$ |
597,943 |
|
|
$ |
447,812 |
|
|
33.5 |
% |
Foreign exchange impact (a) |
(447) |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
597,496 |
|
|
$ |
447,812 |
|
|
33.4 |
% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Net sales, reported |
$ |
254,751 |
|
|
$ |
188,638 |
|
|
35.0 |
% |
Foreign exchange impact (a) |
(1,224) |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
253,527 |
|
|
$ |
188,638 |
|
|
34.4 |
% |
|
|
|
|
|
|
|||||
Consolidated: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
852,694 |
|
|
$ |
636,450 |
|
|
34.0 |
% |
Foreign exchange impact (a) |
(1,671) |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
851,023 |
|
|
$ |
636,450 |
|
|
33.7 |
% |
|
|
|
|
|
|
|||||
(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 |
||||||||||
|
|
|
|
|
|
|||||
|
||||||||||
Supplementary Information (Unaudited) |
||||||||||
|
|
|
|
|||||||
|
|
|
|
|||||||
|
Fiscal year ended |
|
|
|||||||
|
2021 |
|
2020 |
|
% Change |
|||||
Worldwide Barcode, Networking & Security: |
(in thousands) |
|
|
|||||||
Net sales, reported |
$ |
2,175,141 |
|
|
$ |
2,093,217 |
|
|
3.9 |
% |
Foreign exchange impact (a) |
19,311 |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
2,194,452 |
|
|
$ |
2,093,217 |
|
|
4.8 |
% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Net sales, reported |
$ |
975,665 |
|
|
$ |
954,517 |
|
|
2.2 |
% |
Foreign exchange impact (a) |
46,470 |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
1,022,135 |
|
|
$ |
954,517 |
|
|
7.1 |
% |
|
|
|
|
|
|
|||||
Consolidated: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
3,150,806 |
|
|
$ |
3,047,734 |
|
|
3.4 |
% |
Foreign exchange impact (a) |
65,781 |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
3,216,587 |
|
|
$ |
3,047,734 |
|
|
5.5 |
% |
|
|
|
|
|
|
|||||
(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 fiscal year ended |
||||||||||
|
||||||||||
Supplementary Information (Unaudited) |
||||||||||
|
|
|
|
|
|
|||||
|
|
|
|
|||||||
|
Quarter ended |
|
|
|||||||
|
2021 |
|
2020 |
|
% Change |
|||||
|
(in thousands) |
|
|
|||||||
Net sales, as reported |
$ |
771,403 |
|
|
$ |
581,619 |
|
|
32.6 |
% |
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
81,291 |
|
|
$ |
54,831 |
|
|
48.3 |
% |
Foreign exchange impact(a) |
(1,671) |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
79,620 |
|
|
$ |
54,831 |
|
|
45.2 |
% |
|
|
|
|
|
|
|||||
Consolidated: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
852,694 |
|
|
$ |
636,450 |
|
|
34.0 |
% |
Foreign exchange impact(a) |
(1,671) |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
851,023 |
|
|
$ |
636,450 |
|
|
33.7 |
% |
|
|
|
|
|
|
|||||
(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 |
||||||||||
|
|
|
|
|
|
|||||
|
||||||||||
Supplementary Information (Unaudited) |
||||||||||
|
|
|
|
|
|
|||||
|
|
|
|
|||||||
|
Fiscal year ended |
|
|
|||||||
|
2021 |
|
2020 |
|
% Change |
|||||
|
(in thousands) |
|
|
|||||||
Net sales, as reported |
$ |
2,840,731 |
|
|
$ |
2,755,134 |
|
|
3.1 |
% |
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
310,075 |
|
|
$ |
292,600 |
|
|
6.0 |
% |
Foreign exchange impact(a) |
65,781 |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
375,856 |
|
|
$ |
292,600 |
|
|
28.5 |
% |
|
|
|
|
|
|
|||||
Consolidated: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
3,150,806 |
|
|
$ |
3,047,734 |
|
|
3.4 |
% |
Foreign exchange impact(a) |
65,781 |
|
|
— |
|
|
|
|||
Non-GAAP net sales, constant currency |
$ |
3,216,587 |
|
|
$ |
3,047,734 |
|
|
5.5 |
% |
|
|
|
|
|
|
|||||
(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 fiscal year ended |
||||||||||
|
|
Quarter ended |
||||||||||||||||||||||||||
|
GAAP Measure |
|
Intangible amortization expense |
|
Change in fair value of contingent consideration |
|
Acquisition, divestiture, and restructuring costs(a) |
|
Tax recovery, net |
|
Impairment charges |
|
Non-GAAP measure |
||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||
Net sales |
$ |
852,694 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
852,694 |
|
Gross profit |
95,778 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
95,778 |
|
|||||||
Operating income |
23,283 |
|
|
4,893 |
|
|
— |
|
|
192 |
|
|
— |
|
|
— |
|
|
28,368 |
|
|||||||
Other expense, net |
237 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
237 |
|
|||||||
Pre-tax income |
23,046 |
|
|
4,893 |
|
|
— |
|
|
192 |
|
|
— |
|
|
— |
|
|
28,131 |
|
|||||||
Net income from continuing operations |
20,657 |
|
|
3,698 |
|
|
— |
|
|
167 |
|
|
— |
|
|
— |
|
|
24,522 |
|
|||||||
Diluted EPS from continuing operations |
$ |
0.80 |
|
|
$ |
0.14 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(a) Acquisition and divestiture costs totaled |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Quarter ended |
||||||||||||||||||||||||||
|
GAAP Measure |
|
Intangible amortization expense |
|
Change in fair value of contingent consideration |
|
Acquisition, divestiture, and restructuring costs(a) |
|
Tax recovery, net |
|
Impairment charges |
|
Non-GAAP measure |
||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||
Net sales |
$ |
636,450 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
636,450 |
|
Gross profit |
74,147 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
74,147 |
|
|||||||
Operating (loss) income |
(113,439) |
|
|
4,946 |
|
|
674 |
|
|
1,311 |
|
|
(5,743) |
|
|
120,470 |
|
|
8,219 |
|
|||||||
Other expense, net |
(489) |
|
|
— |
|
|
— |
|
|
— |
|
|
2,681 |
|
|
— |
|
|
2,192 |
|
|||||||
Pre-tax (loss) income |
(112,950) |
|
|
4,946 |
|
|
674 |
|
|
1,311 |
|
|
(8,424) |
|
|
120,470 |
|
|
6,027 |
|
|||||||
Net (loss) income from continuing operations |
(108,859) |
|
|
3,744 |
|
|
510 |
|
|
1,311 |
|
|
(6,247) |
|
|
114,398 |
|
|
4,857 |
|
|||||||
Diluted EPS from continuing operations |
$ |
(4.29) |
|
|
$ |
0.15 |
|
|
$ |
0.02 |
|
|
$ |
0.05 |
|
|
$ |
(0.25) |
|
|
$ |
4.51 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(a) Acquisition and divestiture costs totaled xx for the quarter ended |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Year ended |
||||||||||||||||||||||||||
|
Reported GAAP Measure |
|
Intangible amortization expense |
|
Change in fair value of contingent consideration |
|
Acquisition, divestiture, and restructuring costs(a) |
|
Tax recovery, net |
|
Impairment charges |
|
Non-GAAP measure |
||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||
Net sales |
$ |
3,150,806 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,150,806 |
|
Gross profit |
350,716 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
350,716 |
|
|||||||
Operating income |
61,483 |
|
|
19,488 |
|
|
516 |
|
|
11,634 |
|
|
— |
|
|
— |
|
|
93,121 |
|
|||||||
Other expense, net |
3,948 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,948 |
|
|||||||
Pre-tax income |
57,535 |
|
|
19,488 |
|
|
516 |
|
|
11,634 |
|
|
— |
|
|
— |
|
|
89,173 |
|
|||||||
Net income from continuing operations |
45,389 |
|
|
14,753 |
|
|
390 |
|
|
9,336 |
|
|
— |
|
|
— |
|
|
69,868 |
|
|||||||
Diluted EPS from continuing operations |
$ |
1.78 |
|
|
$ |
0.58 |
|
|
$ |
0.02 |
|
|
$ |
0.36 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(a) Acquisition and divestiture costs totaled |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Year ended |
||||||||||||||||||||||||||
|
Reported GAAP Measure |
|
Intangible amortization expense |
|
Change in fair value of contingent consideration |
|
Acquisition, divestiture, and restructuring costs |
|
Tax recovery, net |
|
Impairment charges |
|
Non-GAAP measure |
||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||
Net sales |
$ |
3,047,734 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,047,734 |
|
Gross profit |
355,569 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
355,569 |
|
|||||||
Operating (loss) income |
(64,967) |
|
|
19,953 |
|
|
6,941 |
|
|
4,604 |
|
|
(8,063) |
|
|
120,470 |
|
|
78,938 |
|
|||||||
Other expense, net |
6,809 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,681 |
|
|
— |
|
|
9,490 |
|
|||||||
Pre-tax (loss) income |
(71,776) |
|
|
19,953 |
|
|
6,941 |
|
|
4,604 |
|
|
(10,744) |
|
|
120,470 |
|
|
69,448 |
|
|||||||
Net (loss) income from continuing operations |
(79,227) |
|
|
15,091 |
|
|
5,247 |
|
|
4,449 |
|
|
(8,001) |
|
|
114,398 |
|
|
51,957 |
|
|||||||
Diluted EPS from continuing operations |
$ |
(3.12) |
|
|
$ |
0.59 |
|
|
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
(0.32) |
|
|
$ |
4.51 |
|
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(a) Acquisition and divestiture costs totaled |
|||||||||||||||||||||||||||
|
|||||||||||||||
Supplementary Information (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Discontinued Operations - Financial Results: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Quarter ended |
|
Fiscal year ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands) |
||||||||||||||
Net sales |
$ |
— |
|
|
$ |
121,969 |
|
|
$ |
213,373 |
|
|
$ |
561,496 |
|
Cost of goods sold |
— |
|
|
112,846 |
|
|
198,512 |
|
|
513,003 |
|
||||
Gross profit |
— |
|
|
9,123 |
|
|
14,861 |
|
|
48,493 |
|
||||
Selling, general and administrative expenses |
— |
|
|
11,337 |
|
|
17,291 |
|
|
53,946 |
|
||||
Depreciation expense |
— |
|
|
205 |
|
|
— |
|
|
975 |
|
||||
Intangible amortization expense |
— |
|
|
330 |
|
|
— |
|
|
1,403 |
|
||||
Operating loss |
— |
|
|
(16,496) |
|
|
(2,430) |
|
|
(21,578) |
|
||||
Interest expense, net |
— |
|
|
163 |
|
|
394 |
|
|
1,399 |
|
||||
Loss on disposal group |
101 |
|
|
88,923 |
|
|
34,597 |
|
|
88,923 |
|
||||
Other expense, net |
— |
|
|
1,221 |
|
|
310 |
|
|
1,124 |
|
||||
Loss from discontinued operations before taxes |
(101) |
|
|
(106,803) |
|
|
(37,731) |
|
|
(113,024) |
|
||||
Income tax (benefit) expense |
(3,154) |
|
|
1,600 |
|
|
(3,137) |
|
|
403 |
|
||||
Net income (loss) from discontinued operations |
$ |
3,053 |
|
|
$ |
(108,403) |
|
|
$ |
(34,594) |
|
|
$ |
(113,427) |
|
|
|||||||
Supplementary Information (Unaudited) |
|||||||
|
|
|
|
||||
Discontinued Operations - Assets and Liabilities: |
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
(in thousands) |
||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
— |
|
|
$ |
4,970 |
|
Accounts receivable, net |
— |
|
|
117,200 |
|
||
Inventories, net |
— |
|
|
106,779 |
|
||
Prepaid expenses and other current assets |
— |
|
|
23,808 |
|
||
Total current assets |
— |
|
|
252,757 |
|
||
Property and equipment, net |
— |
|
|
1,833 |
|
||
Deferred income taxes |
— |
|
|
9,349 |
|
||
Other non-current assets |
— |
|
|
6,215 |
|
||
Total assets, before valuation allowance |
— |
|
|
270,154 |
|
||
Less: valuation allowance |
— |
|
|
(88,923) |
|
||
Total assets, net of valuation allowance (a) |
$ |
— |
|
|
$ |
181,231 |
|
Liabilities |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
— |
|
|
$ |
56,098 |
|
Accrued expenses and other current liabilities |
— |
|
|
14,815 |
|
||
Other taxes payable |
— |
|
|
20,378 |
|
||
Short-term borrowings |
— |
|
|
3,524 |
|
||
Income tax payable |
— |
|
|
1,085 |
|
||
Total current liabilities |
— |
|
|
95,900 |
|
||
Borrowings under revolving credit facility |
— |
|
|
24,704 |
|
||
Other long-term liabilities |
— |
|
|
7,418 |
|
||
Total liabilities(1) |
$ |
— |
|
|
$ |
128,022 |
|
|
|
|
|
||||
(a) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company's consolidated balance sheet as of |
|||||||
|
||||
Supplementary Forward-Looking Information (Unaudited) |
||||
Annual Financial Outlook for Fiscal Year 2022: |
|
|
||
|
|
|
|
|
|
|
|
FY22 Outlook |
|
GAAP, Operating Income |
|
At least |
||
Intangible amortization |
|
|
||
Depreciation expense |
|
|
||
Share-based compensation expense |
|
|
||
Adjusted EBITDA (non-GAAP) |
|
At least |
||
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2021 Adjusted EBITDA, excluding Share-Based Compensation Expense: |
||||
|
|
|
|
|
|
|
|
FY21 |
|
Adjusted EBITDA, as reported (non-GAAP) |
|
|
||
Add: Share-based compensation expense |
|
|
||
Adjusted EBITDA, excluding share-based compensation expense |
|
|
||
|
|
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210824005812/en/
Senior EVP, Chief Financial Officer
(864) 286-4302
- or -
SVP, Treasurer and Investor Relations
(864) 286-4892
Source:
FAQ
What were ScanSource's net sales for the fourth quarter of fiscal year 2021?
How much did ScanSource's gross profit increase in Q4 FY21?
What is the new share repurchase authorization amount for ScanSource?
What is ScanSource's financial outlook for fiscal year 2022?
What was ScanSource's operating income in Q4 FY21?
