ScanSource Reports Second Quarter Results
ScanSource (NASDAQ: SCSC) reported Q2 FY25 financial results with mixed performance. Net sales decreased 15.5% year-over-year to $747.5 million, while gross profit increased 1.0% to $101.7 million. The company's gross profit margin improved to 13.6% from 11.4% in the prior year.
Notable highlights include a 31.2% increase in recurring revenue, though product and services sales declined 17.0%. Specialty Technology Solutions saw a 16.0% decrease in sales to $723.3 million, while Intelisys & Advisory sales grew 4.0% to $24.2 million. GAAP net income was $17.1 million ($0.70 per diluted share), down from $32.7 million ($1.29 per diluted share) year-over-year.
The company maintains its FY25 guidance with projected net sales of $3.1-3.5 billion and Adjusted EBITDA of $140-160 million.
ScanSource (NASDAQ: SCSC) ha riportato i risultati finanziari del Q2 FY25 con performance miste. Le vendite nette sono diminuite del 15,5% su base annua a $747,5 milioni, mentre il profitto lordo è aumentato dell'1,0% a $101,7 milioni. Il margine di profitto lordo dell'azienda è migliorato al 13,6% rispetto all'11,4% dell'anno precedente.
Tra i principali risultati si segnala un aumento del 31,2% delle entrate ricorrenti, anche se le vendite di prodotti e servizi sono calate del 17,0%. Le Soluzioni Tecnologiche Speciali hanno visto una diminuzione delle vendite del 16,0% a $723,3 milioni, mentre le vendite di Intelisys & Advisory sono cresciute del 4,0% a $24,2 milioni. L'utile netto GAAP è stato di $17,1 milioni ($0,70 per azione diluita), in calo rispetto ai $32,7 milioni ($1,29 per azione diluita) dell'anno precedente.
L'azienda mantiene la sua previsione per FY25, con vendite nette previste tra $3,1 e $3,5 miliardi e un EBITDA Adjusted di $140-160 milioni.
ScanSource (NASDAQ: SCSC) informó resultados financieros del Q2 FY25 con un desempeño mixto. Las ventas netas disminuyeron un 15,5% en comparación con el año anterior, alcanzando $747,5 millones, mientras que el beneficio bruto aumentó un 1,0% a $101,7 millones. El margen de beneficio bruto de la empresa mejoró al 13,6% desde el 11,4% del año anterior.
Entre los aspectos destacados se incluye un aumento del 31,2% en ingresos recurrentes, aunque las ventas de productos y servicios cayeron un 17,0%. Las Soluciones Tecnológicas Especializadas experimentaron una disminución en las ventas del 16,0% a $723,3 millones, mientras que las ventas de Intelisys & Advisory crecieron un 4,0% a $24,2 millones. El ingreso neto GAAP fue de $17,1 millones ($0,70 por acción diluida), una disminución con respecto a los $32,7 millones ($1,29 por acción diluida) del año anterior.
La empresa mantiene su guía para FY25 con ventas netas proyectadas de $3,1-3,5 mil millones y un EBITDA Ajustado de $140-160 millones.
ScanSource (NASDAQ: SCSC)는 FY25 2분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 순매출은 전년 대비 15.5% 감소한 $747.5 백만이었으며, 총 이익은 1.0% 증가하여 $101.7 백만에 도달했습니다. 회사의 총 이익률은 이전 년도의 11.4%에서 13.6%로 개선되었습니다.
주요 하이라이트에는 반복 수익의 31.2% 증가가 포함되지만, 제품 및 서비스 매출은 17.0% 감소했습니다. 전문 기술 솔루션은 $723.3 백만으로 16.0% 감소했으며, Intelisys & Advisory 판매는 $24.2 백만으로 4.0% 성장했습니다. GAAP 순이익은 $17.1 백만($0.70 희석 주당)에 달하며, 전년 대비 $32.7 백만($1.29 희석 주당)에서 감소했습니다.
회사는 FY25 수익 가이드를 유지하며 $3.1-3.5 억의 순매출과 $140-160 백만의 조정 EBITDA를 예상하고 있습니다.
ScanSource (NASDAQ: SCSC) a publié des résultats financiers pour le 2ème trimestre FY25 avec des performances mixtes. Le chiffre d'affaires net a diminué de 15,5 % par rapport à l'année précédente, atteignant $747,5 millions, tandis que le bénéfice brut a augmenté de 1,0 %, soit $101,7 millions. La marge brute de l'entreprise s'est améliorée, passant de 11,4 % à 13,6 % par rapport à l'année précédente.
Les faits marquants incluent une augmentation de 31,2 % des revenus récurrents, bien que les ventes de produits et services aient chuté de 17,0 %. Les Solutions Technologiques Spécialisées ont connu une baisse de 16,0 % de leurs ventes, atteignant $723,3 millions, tandis que les ventes d'Intelisys & Advisory ont augmenté de 4,0 % à $24,2 millions. Le bénéfice net GAAP était de $17,1 millions ($0,70 par action diluée), en baisse par rapport à $32,7 millions ($1,29 par action diluée) de l'année précédente.
L'entreprise maintient ses prévisions pour FY25, avec des ventes nettes projetées entre $3,1 et $3,5 milliards et un EBITDA ajusté de $140-160 millions.
ScanSource (NASDAQ: SCSC) hat die finanziellen Ergebnisse für das 2. Quartal FY25 mit gemischten Leistungen veröffentlicht. Die Nettoumsätze sanken um 15,5% im Vergleich zum Vorjahr auf $747,5 Millionen, während der Bruttogewinn um 1,0% auf $101,7 Millionen anstieg. Die Bruttomarge des Unternehmens verbesserte sich von 11,4% im Vorjahr auf 13,6%.
Bemerkenswerte Höhepunkte sind der Anstieg der wiederkehrenden Einnahmen um 31,2%, während die Verkäufe von Produkten und Dienstleistungen um 17,0% zurückgingen. Die Spezialtechnologielösungen verzeichneten einen Rückgang der Verkäufe um 16,0% auf $723,3 Millionen, während die Verkäufe von Intelisys & Advisory um 4,0% auf $24,2 Millionen stiegen. Der GAAP-Nettogewinn betrug $17,1 Millionen ($0,70 pro verwässerter Aktie) und fiel im Vergleich zu $32,7 Millionen ($1,29 pro verwässerter Aktie) im Vorjahr.
Das Unternehmen hält an seiner Prognose für FY25 fest und erwartet Nettoumsätze zwischen $3,1 und $3,5 Milliarden sowie ein bereinigtes EBITDA von $140-160 Millionen.
- Gross profit increased 1.0% to $101.7 million
- Gross profit margin improved by 222 basis points to 13.6%
- Recurring revenue grew 31.2% year-over-year
- Generated $38.6 million operating cash flow in first six months
- Strong free cash flow of $34.3 million in first six months
- Net sales declined 15.5% to $747.5 million
- Operating income decreased 31.2% to $18.4 million
- GAAP net income fell 47.9% to $17.1 million
- GAAP diluted EPS dropped 45.7% to $0.70
- Specialty Technology Solutions sales decreased 16.0%
Insights
ScanSource's Q2 FY25 results reveal a strategic transformation in progress, marked by a deliberate shift toward higher-margin recurring revenue streams. While the
The
The company's robust cash management is evident in the
The reaffirmed annual guidance of
While the soft technology spending environment presents near-term challenges, ScanSource's strategic acquisitions and focus on recurring revenue position it well for long-term margin expansion and more stable earnings growth. The company's healthy balance sheet, with
Recurring Revenue Growth Opportunities Fueled by Recent Acquisitions
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Second Quarter Summary |
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Q2 FY25 |
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Q2 FY24 |
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Change |
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||||
|
(in thousands, except percentages and per share data) |
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Select reported measures: |
|
|
|
|
|
|
||||
Net sales |
$ |
747,497 |
|
|
$ |
884,792 |
|
|
- |
|
Gross profit |
$ |
101,723 |
|
|
$ |
100,748 |
|
|
|
|
Gross profit margin % |
|
13.6 |
% |
|
|
11.4 |
% |
|
222bp |
|
Operating income |
$ |
18,444 |
|
|
$ |
26,826 |
|
|
- |
|
GAAP net income |
$ |
17,053 |
|
|
$ |
32,726 |
|
|
- |
|
GAAP diluted EPS |
$ |
0.70 |
|
|
$ |
1.29 |
|
|
- |
|
Select Non-GAAP measures*: |
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
35,299 |
|
|
$ |
38,459 |
|
|
- |
|
Adjusted EBITDA margin % |
|
4.72 |
% |
|
|
4.35 |
% |
|
37bp |
|
Non-GAAP net income |
$ |
20,698 |
|
|
$ |
21,587 |
|
|
- |
|
Non-GAAP diluted EPS |
$ |
0.85 |
|
|
$ |
0.85 |
|
|
—% |
|
Note: Margin % reflects measure as a percentage of sales. |
|
|
|
|
|
|
||||
* Represents non-GAAP financial measures. For more information and a reconciliation to the most directly comparable GAAP financial measure, see "Non-GAAP Financial Information" below as well as the accompanying Supplementary Information. |
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“In a soft demand environment, our team delivered second quarter gross profit growth and a strong gross profit margin,” said Mike Baur, Chair and CEO, ScanSource, Inc. “Our recent acquisitions are expanding recurring revenue opportunities for our channel partners.”
Quarterly Results
Net sales for the second quarter of fiscal year 2025 totaled
Gross profit for the second quarter of fiscal year 2025 increased
For the second quarter of fiscal year 2025, operating income was
On a GAAP basis, net income for the second quarter of fiscal year 2025 totaled
Balance Sheet and Cash Flow
As of December 31, 2024, ScanSource had cash and cash equivalents of
For the first six months of fiscal year 2025, ScanSource generated
Annual Financial Outlook for Fiscal Year 2025
ScanSource reaffirms previously provided guidance set forth below for the full fiscal year ended June 30, 2025.
|
|
FY25 Annual Outlook |
|
Net sales |
|
|
|
Adjusted EBITDA (non-GAAP) |
|
|
|
Free cash flow (non-GAAP) |
|
At least |
|
Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash shared-based compensation expense. Free cash flow is a non-GAAP measure, which excludes the effect of estimated capital expenditures from estimated operating cash flow. These measures are forward-looking, and actual results may differ materially.
ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measures cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward-looking information to the most directly comparable GAAP financial measures is not provided.
Mike Baur Appointed to Additional Role of President
Effective January 27, 2025, ScanSource appointed Chair and Chief Executive Officer Mike Baur to the additional role of President of ScanSource.
Webcast Details and Earnings Infographic
At approximately 8:45 a.m. ET today, an Earnings Infographic, as a supplement to this press release and the earnings conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, January 30, 2025, at 10:30 a.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 ScanSource's FY25 annual outlook, which involve risks and uncertainties, many of which are beyond ScanSource's control. No undue reliance should be placed on such statements, as any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, the failure to manage and implement ScanSource's growth strategy, the ability for ScanSource to realize the synergies or other benefits from acquisitions, credit risks involving ScanSource's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major customers, relationships with key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers and customers, changes in ScanSource's operating strategy, and other factors set forth in the "Risk Factors" contained in ScanSource's annual report on Form 10-K for the year ended June 30, 2024. Except as may be required by law, ScanSource expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or otherwise.
Non-GAAP Financial Information
In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), ScanSource 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 items such as amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain on sale of business, and restructuring costs and include other non-GAAP adjustments.
Net sales on a constant currency basis excluding acquisitions and divestitures to calculate organic growth ("non-GAAP net sales"): ScanSource 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 and divestitures prior to the first full year from the transaction date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.
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, gain/loss on sale of business, restructuring costs, cyberattack restoration costs, tax recovery, legal settlement, and non-cash share-based compensation expense. Since Adjusted EBITDA excludes some non-cash costs of investing in ScanSource’s business and people, management believes that Adjusted EBITDA shows the profitability from the business operations more clearly. The Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.
Adjusted return on invested capital ("Adjusted ROIC"): Adjusted ROIC assists management in comparing ScanSource's performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that do not reflect core operating performance. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of its performance. Adjusted 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 Adjusted ROIC provides useful information to investors and is an additional relevant comparison of ScanSource's performance during the year.
Free cash flow: ScanSource presents free cash flow as it is a measure used by management to measure our business. ScanSource believes this measure provides more information regarding liquidity and capital resources. Free cash flow is defined as cash flows from operating activities less capital expenditures.
Net debt: Net debt includes total balance sheet debt less cash and cash equivalents. ScanSource believes this measure is useful in assessing its borrowing capacity.
Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, ScanSource discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income, and non-GAAP diluted earnings per share (non-GAAP diluted EPS). These non-GAAP results exclude amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain on sale of business, restructuring costs, and other non-GAAP adjustments. These metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding ScanSource's performance especially when comparing results with previous periods or forecasting performance for future periods.
These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that ScanSource 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 ScanSource'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 channel partners across hardware, software as a service (SaaS), connectivity and cloud. ScanSource enables channel partners to deliver solutions for their end customers to address changing buying and consumption patterns. ScanSource uses multiple sales models to offer hybrid distribution solutions from leading suppliers of specialty technologies, connectivity and cloud. Founded in 1992 and headquartered in
ScanSource, Inc. and Subsidiaries |
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Condensed Consolidated Balance Sheets (Unaudited) |
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(in thousands, except share data) |
|||||||
|
December 31, 2024 |
|
June 30, 2024* |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
110,520 |
|
|
$ |
185,460 |
|
Accounts receivable, less allowance of
and |
|
549,112 |
|
|
|
581,523 |
|
Inventories |
|
491,978 |
|
|
|
512,634 |
|
Prepaid expenses and other current assets |
|
132,155 |
|
|
|
125,082 |
|
Total current assets |
|
1,283,765 |
|
|
|
1,404,699 |
|
Property and equipment, net |
|
30,152 |
|
|
|
33,501 |
|
Goodwill |
|
227,932 |
|
|
|
206,301 |
|
Identifiable intangible assets, net |
|
72,691 |
|
|
|
37,634 |
|
Deferred income taxes |
|
17,541 |
|
|
|
19,902 |
|
Other non-current assets |
|
70,448 |
|
|
|
76,995 |
|
Total assets |
$ |
1,702,529 |
|
|
$ |
1,779,032 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
520,408 |
|
|
$ |
587,984 |
|
Accrued expenses and other current liabilities |
|
70,985 |
|
|
|
65,616 |
|
Current portion of contingent consideration |
|
2,039 |
|
|
|
— |
|
Income taxes payable |
|
8,330 |
|
|
|
7,895 |
|
Current portion of long-term debt |
|
7,861 |
|
|
|
7,857 |
|
Total current liabilities |
|
609,623 |
|
|
|
669,352 |
|
Long-term debt, net of current portion |
|
132,038 |
|
|
|
136,149 |
|
Borrowings under revolving credit facility |
|
— |
|
|
|
50 |
|
Long-term portion of contingent consideration |
|
16,304 |
|
|
|
— |
|
Other long-term liabilities |
|
43,902 |
|
|
|
49,226 |
|
Total liabilities |
|
801,867 |
|
|
|
854,777 |
|
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, 23,612,543 and 24,243,848 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively |
|
— |
|
|
|
26,370 |
|
Retained earnings |
|
1,031,934 |
|
|
|
1,013,738 |
|
Accumulated other comprehensive loss |
|
(131,272 |
) |
|
|
(115,853 |
) |
Total shareholders’ equity |
|
900,662 |
|
|
|
924,255 |
|
Total liabilities and shareholders’ equity |
$ |
1,702,529 |
|
|
$ |
1,779,032 |
|
|
|
|
|
||||
*Derived from audited financial statements. |
|
|
|
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ScanSource, Inc. and Subsidiaries |
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Condensed Consolidated Income Statements (Unaudited) |
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(in thousands, except per share data) |
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|
|
|
|
|
|
|
|
||||||||
|
Quarter ended December 31, 2024 |
|
Six months ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
747,497 |
|
|
$ |
884,792 |
|
|
$ |
1,523,077 |
|
|
$ |
1,761,098 |
|
Cost of goods sold |
|
645,774 |
|
|
|
784,044 |
|
|
|
1,319,735 |
|
|
|
1,553,842 |
|
Gross profit |
|
101,723 |
|
|
|
100,748 |
|
|
|
203,342 |
|
|
|
207,256 |
|
Selling, general and administrative expenses |
|
73,920 |
|
|
|
66,921 |
|
|
|
145,626 |
|
|
|
142,356 |
|
Depreciation expense |
|
2,902 |
|
|
|
2,964 |
|
|
|
5,759 |
|
|
|
5,759 |
|
Intangible amortization expense |
|
5,001 |
|
|
|
4,037 |
|
|
|
9,359 |
|
|
|
8,230 |
|
Restructuring and other charges |
|
313 |
|
|
|
— |
|
|
|
5,381 |
|
|
|
— |
|
Change in fair value of contingent consideration |
|
1,143 |
|
|
|
— |
|
|
|
1,143 |
|
|
|
— |
|
Operating income |
|
18,444 |
|
|
|
26,826 |
|
|
|
36,074 |
|
|
|
50,911 |
|
Interest expense |
|
1,970 |
|
|
|
3,359 |
|
|
|
4,078 |
|
|
|
8,945 |
|
Interest income |
|
(2,693 |
) |
|
|
(2,119 |
) |
|
|
(5,352 |
) |
|
|
(3,444 |
) |
Loss (gain) on sale of business |
|
— |
|
|
|
(14,533 |
) |
|
|
— |
|
|
|
(14,533 |
) |
Other (income) expense, net |
|
(543 |
) |
|
|
73 |
|
|
|
(5,325 |
) |
|
|
750 |
|
Income before income taxes |
|
19,710 |
|
|
|
40,046 |
|
|
|
42,673 |
|
|
|
59,193 |
|
Provision for income taxes |
|
2,657 |
|
|
|
7,320 |
|
|
|
8,645 |
|
|
|
11,035 |
|
Net income |
$ |
17,053 |
|
|
$ |
32,726 |
|
|
$ |
34,028 |
|
|
$ |
48,158 |
|
|
|
|
|
|
|
|
|
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Per share data: |
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|
|
|
|
|
|
||||||||
Net income per common share, basic |
$ |
0.72 |
|
|
$ |
1.31 |
|
|
$ |
1.42 |
|
|
$ |
1.93 |
|
Weighted-average shares outstanding, basic |
|
23,806 |
|
|
|
25,035 |
|
|
|
23,976 |
|
|
|
24,961 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share, diluted |
$ |
0.70 |
|
|
$ |
1.29 |
|
|
$ |
1.39 |
|
|
$ |
1.91 |
|
Weighted-average shares outstanding, diluted |
|
24,217 |
|
|
|
25,334 |
|
|
|
24,450 |
|
|
|
25,235 |
|
ScanSource, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Cash Flows (Unaudited) |
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(in thousands) |
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|
Six months ended December 31, |
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|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
34,028 |
|
|
$ |
48,158 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
||||
Gain on sale of business |
|
— |
|
|
|
(14,533 |
) |
Depreciation and amortization |
|
15,603 |
|
|
|
14,475 |
|
Amortization of debt issue costs |
|
193 |
|
|
|
193 |
|
Provision for doubtful accounts |
|
5,925 |
|
|
|
4,472 |
|
Share-based compensation |
|
5,492 |
|
|
|
5,340 |
|
Deferred income taxes |
|
2,306 |
|
|
|
(1,703 |
) |
Change in fair value of contingent consideration |
|
1,143 |
|
|
|
— |
|
Finance lease interest |
|
48 |
|
|
|
46 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
21,110 |
|
|
|
75,579 |
|
Inventories |
|
16,316 |
|
|
|
182,168 |
|
Prepaid expenses and other assets |
|
(380 |
) |
|
|
(11,576 |
) |
Other non-current assets |
|
3,145 |
|
|
|
3,208 |
|
Accounts payable |
|
(64,915 |
) |
|
|
(135,138 |
) |
Accrued expenses and other liabilities |
|
(1,834 |
) |
|
|
(7,678 |
) |
Income taxes payable |
|
462 |
|
|
|
(6,254 |
) |
Net cash provided by (used in) operating activities |
|
38,642 |
|
|
|
156,757 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(4,348 |
) |
|
|
(4,865 |
) |
Cash paid for business acquisitions, net of cash acquired |
|
(56,673 |
) |
|
|
— |
|
Proceeds from sale of business, net of cash transferred |
|
2,569 |
|
|
|
17,978 |
|
Net cash provided by (used in) investing activities |
|
(58,452 |
) |
|
|
13,113 |
|
Cash flows from financing activities: |
|
|
|
||||
Borrowings on revolving credit |
|
26,587 |
|
|
|
1,134,629 |
|
Repayments on revolving credit |
|
(26,636 |
) |
|
|
(1,292,729 |
) |
Repayments on long-term debt, net |
|
(4,107 |
) |
|
|
(3,165 |
) |
Borrowings (repayments) on finance lease obligation |
|
(547 |
) |
|
|
(442 |
) |
Exercise of stock options |
|
9,489 |
|
|
|
4,309 |
|
Taxes paid on settlement of equity awards |
|
(4,805 |
) |
|
|
(2,657 |
) |
Common stock repurchased |
|
(52,342 |
) |
|
|
(1,251 |
) |
Net cash (used in) provided by financing activities |
|
(52,361 |
) |
|
|
(161,306 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(2,769 |
) |
|
|
245 |
|
Increase in cash and cash equivalents |
|
(74,940 |
) |
|
|
8,809 |
|
Cash and cash equivalents at beginning of period |
|
185,460 |
|
|
|
36,178 |
|
Cash and cash equivalents at period end |
$ |
110,520 |
|
|
$ |
44,987 |
|
ScanSource, Inc. and Subsidiaries |
|||||||
Supplementary Information (Unaudited) |
|||||||
(in thousands, except percentages) |
|||||||
|
|
|
|
||||
Non-GAAP Financial Information: |
|||||||
|
Quarter ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
||||
Net income (GAAP) |
$ |
17,053 |
|
|
$ |
32,726 |
|
Plus: Interest expense |
|
1,970 |
|
|
|
3,359 |
|
Plus: Income taxes |
|
2,657 |
|
|
|
7,320 |
|
Plus: Depreciation and amortization |
|
8,132 |
|
|
|
7,258 |
|
EBITDA (non-GAAP) |
|
29,812 |
|
|
|
50,663 |
|
Plus: Change in fair value of contingent consideration |
|
1,143 |
|
|
|
— |
|
Plus: Share-based compensation |
|
3,021 |
|
|
|
2,571 |
|
Plus: Acquisition and divestiture costs |
|
151 |
|
|
|
703 |
|
Plus: Cyberattack restoration costs |
|
30 |
|
|
|
441 |
|
Plus: Restructuring costs |
|
313 |
|
|
|
— |
|
Plus: Legal settlement |
|
1,579 |
|
|
|
— |
|
Plus: Tax recovery |
|
(750 |
) |
|
|
(1,386 |
) |
Plus: Gain on sale of business |
|
— |
|
|
|
(14,533 |
) |
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) |
$ |
35,299 |
|
|
$ |
38,459 |
|
|
|
|
|
||||
Invested Capital Calculations: |
|
|
|
||||
Equity – beginning of the period |
$ |
920,893 |
|
|
$ |
915,253 |
|
Equity – end of the period |
|
900,662 |
|
|
|
953,601 |
|
Plus: Change in fair value of contingent consideration, net |
|
861 |
|
|
|
— |
|
Plus: Share-based compensation, net |
|
2,271 |
|
|
|
1,919 |
|
Plus: Acquisition and divestiture costs |
|
151 |
|
|
|
703 |
|
Plus: Cyberattack restoration costs, net |
|
23 |
|
|
|
329 |
|
Plus: Restructuring costs, net |
|
236 |
|
|
|
— |
|
Plus: Legal settlement, net |
|
1,189 |
|
|
|
— |
|
Plus: Tax recovery, net |
|
(2,560 |
) |
|
|
(640 |
) |
Plus: Gain on sale of business |
|
— |
|
|
|
(14,533 |
) |
Average equity |
|
911,863 |
|
|
|
928,316 |
|
Average funded debt (a) |
|
142,143 |
|
|
|
227,688 |
|
Invested capital (denominator for Adjusted ROIC) (non-GAAP) |
$ |
1,054,006 |
|
|
$ |
1,156,004 |
|
|
|
|
|
||||
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(b) |
|
13.3 |
% |
|
|
13.2 |
% |
|
|
|
|
||||
(a) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt. |
|||||||
(b) 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. |
|||||||
ScanSource, Inc. and Subsidiaries |
||||||||||
Supplementary Information (Unaudited) |
||||||||||
|
|
|
|
|||||||
Net Sales by Segment: |
|
|
|
|||||||
|
Quarter ended December 31, |
|
|
|||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Specialty Technology Solutions: |
(in thousands) |
|
|
|||||||
Net sales, reported |
$ |
723,277 |
|
|
$ |
861,514 |
|
|
(16.0 |
)% |
Foreign exchange impact (a) |
|
10,723 |
|
|
|
— |
|
|
|
|
Less: Divestitures |
|
— |
|
|
|
(1,737 |
) |
|
|
|
Less: Acquisitions |
|
(6,888 |
) |
|
|
— |
|
|
|
|
Non-GAAP net sales |
$ |
727,112 |
|
|
$ |
859,777 |
|
|
(15.4 |
)% |
|
|
|
|
|
|
|||||
Intelisys & Advisory: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
24,220 |
|
|
$ |
23,278 |
|
|
4.0 |
% |
Foreign exchange impact (a) |
|
(5 |
) |
|
|
— |
|
|
|
|
Less: Acquisitions |
|
(1,685 |
) |
|
|
— |
|
|
|
|
Non-GAAP net sales |
$ |
22,530 |
|
|
$ |
23,278 |
|
|
(3.2 |
)% |
|
|
|
|
|
|
|||||
Consolidated: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
747,497 |
|
|
$ |
884,792 |
|
|
(15.5 |
)% |
Foreign exchange impact (a) |
|
10,718 |
|
|
|
— |
|
|
|
|
Less: Divestitures |
|
— |
|
|
|
(1,737 |
) |
|
|
|
Less: Acquisitions |
|
(8,573 |
) |
|
|
— |
|
|
|
|
Non-GAAP net sales |
$ |
749,642 |
|
|
$ |
883,055 |
|
|
(15.1 |
)% |
|
|
|
|
|
|
|||||
(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 December 31, 2024 into |
||||||||||
ScanSource, Inc. and Subsidiaries |
|||||||||||
Supplementary Information (Unaudited) |
|||||||||||
Net Sales by Revenue Type: |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
|
|
Quarter ended December 31, |
|
|
|||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
|
(in thousands) |
|
|
|||||||
Revenue by product/service: |
|
|
|
|
|
|
|||||
Products and services |
|
$ |
711,235 |
|
$ |
857,154 |
|
(17.0 |
)% |
||
Recurring revenue(a) |
|
|
36,262 |
|
|
|
27,638 |
|
|
31.2 |
% |
|
|
$ |
747,497 |
|
|
$ |
884,792 |
|
|
(15.5 |
)% |
(a) Recurring revenue represents primarily agency commissions, SaaS, subscriptions, and hardware rentals. |
|||||||||||
ScanSource, Inc. and Subsidiaries |
||||||||||
Supplementary Information (Unaudited) |
||||||||||
|
|
|
|
|
|
|||||
Net Sales by Geography: |
|
|
|
|||||||
|
Quarter ended December 31, |
|
|
|||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
(in thousands) |
|
|
|||||||
Net sales, as reported |
$ |
687,111 |
|
|
$ |
795,382 |
|
|
(13.6 |
)% |
Less: Acquisitions |
|
(8,573 |
) |
|
|
— |
|
|
|
|
Non-GAAP net sales |
$ |
678,538 |
|
|
$ |
795,382 |
|
|
(14.7 |
)% |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Net sales, reported(a) |
$ |
60,386 |
|
|
$ |
89,410 |
|
|
(32.5 |
)% |
Foreign exchange impact(b) |
|
10,718 |
|
|
|
— |
|
|
|
|
Less: Divestitures |
|
— |
|
|
|
(1,737 |
) |
|
|
|
Non-GAAP net sales |
$ |
71,104 |
|
|
$ |
87,673 |
|
|
(18.9 |
)% |
|
|
|
|
|
|
|||||
Consolidated: |
|
|
|
|
|
|||||
Net sales, reported |
$ |
747,497 |
|
|
$ |
884,792 |
|
|
(15.5 |
)% |
Foreign exchange impact(b) |
|
10,718 |
|
|
|
— |
|
|
|
|
Less: Divestitures |
|
— |
|
|
|
(1,737 |
) |
|
|
|
Less: Acquisitions |
|
(8,573 |
) |
|
|
— |
|
|
|
|
Non-GAAP net sales |
$ |
749,642 |
|
|
$ |
883,055 |
|
|
(15.1 |
)% |
|
|
|
|
|
|
|||||
(a) Countries outside of |
||||||||||
(b) 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 December 31, 2024 into |
||||||||||
Free Cash Flow: |
|
|
|
|
|
||||||||||
|
Quarter ended December 31, |
|
Six months ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP operating cash flow |
$ |
(6,190 |
) |
|
$ |
63,224 |
|
|
$ |
38,642 |
|
|
$ |
156,757 |
|
Less: Capital expenditures |
|
(1,974 |
) |
|
|
(2,549 |
) |
|
|
(4,348 |
) |
|
|
(4,865 |
) |
Free cash flow (non-GAAP) |
$ |
(8,164 |
) |
|
$ |
60,675 |
|
|
$ |
34,294 |
|
|
$ |
151,892 |
|
ScanSource, Inc. and Subsidiaries |
||||||||||||||||||
Supplementary Information (Unaudited) |
||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Other Non-GAAP Financial Information: |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, 2024 |
|||||||||||||||||
|
|
GAAP
|
|
Intangible
|
|
Change in fair
|
|
Acquisition &
|
|
Restructuring
|
|
Tax recovery |
|
Cyberattack
|
|
Legal
|
|
Non-GAAP
|
|
(in thousands, except per share data) |
|||||||||||||||||
SG&A expenses |
|
|
|
$— |
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
Operating income |
|
18,444 |
|
5,001 |
|
1,143 |
|
151 |
|
313 |
|
(750) |
|
30 |
|
1,579 |
|
25,911 |
Pre-tax income |
|
19,710 |
|
5,001 |
|
1,143 |
|
151 |
|
313 |
|
(750) |
|
30 |
|
1,579 |
|
27,177 |
Net income |
|
17,053 |
|
3,745 |
|
861 |
|
151 |
|
236 |
|
(2,560) |
|
23 |
|
1,189 |
|
20,698 |
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, 2023 |
|||||||||||||||||
|
|
GAAP
|
|
Intangible
|
|
Change in fair
|
|
Acquisition &
|
|
Restructuring
|
|
Tax recovery |
|
Cyberattack
|
|
Gain on sale
|
|
Non-GAAP
|
|
(in thousands, except per share data) |
|||||||||||||||||
SG&A expense |
|
|
|
$— |
|
$— |
|
|
|
$— |
|
|
|
|
|
$— |
|
|
Operating income |
|
26,826 |
|
4,037 |
|
— |
|
703 |
|
— |
|
(1,386) |
|
441 |
|
— |
|
30,621 |
Pre-tax income |
|
40,046 |
|
4,037 |
|
— |
|
703 |
|
— |
|
(1,386) |
|
441 |
|
(14,533) |
|
29,308 |
Net income |
|
32,726 |
|
3,002 |
|
— |
|
703 |
|
— |
|
(640) |
|
329 |
|
(14,533) |
|
21,587 |
Diluted EPS |
|
|
|
|
|
$— |
|
|
|
$— |
|
|
|
|
|
|
|
|
(a) Acquisition and divestiture costs for the quarters ended December 31, 2024 and December 31, 2023 are generally nondeductible for tax purposes. |
(b) Reflects gain on the sale of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130060122/en/
Steve Jones
Senior EVP, Chief Financial Officer
ScanSource, Inc.
(864) 286-4302
Mary M. Gentry
SVP, Finance and Treasurer
ScanSource, Inc.
(864) 286-4892
Source: ScanSource, Inc.
FAQ
What was ScanSource's (SCSC) revenue performance in Q2 FY25?
How much did SCSC's recurring revenue grow in Q2 FY25?
What is ScanSource's (SCSC) revenue guidance for fiscal year 2025?
How much cash did SCSC have on its balance sheet as of December 31, 2024?
What was SCSC's share repurchase activity in the first half of FY25?
