TD SYNNEX Reports Fiscal 2025 First Quarter Results
TD SYNNEX (NYSE: SNX) reported strong fiscal 2025 first quarter results with revenue reaching $14.5 billion, up 4.0% year-over-year (6.0% in constant currency). Non-GAAP gross billings increased by 7.5% to $20.7 billion.
Key financial metrics include diluted EPS of $1.98 and non-GAAP diluted EPS of $2.80. The company returned $138 million to stockholders through $101 million in share repurchases and $37 million in dividends. The quarterly dividend was increased by 10% to $0.44 per share.
Regional performance showed Americas revenue up 6.2% to $8.4 billion, Europe revenue up 0.4% to $5.1 billion, and Asia-Pacific and Japan revenue growing 5.2% to $1.0 billion. However, gross margin decreased to 6.9% from 7.2% due to higher margins in the prior year in strategic technologies and product mix.
TD SYNNEX (NYSE: SNX) ha riportato risultati solidi per il primo trimestre fiscale 2025, con ricavi che hanno raggiunto 14,5 miliardi di dollari, in aumento del 4,0% rispetto all'anno precedente (6,0% a cambi costanti). Le fatturazioni lorde non-GAAP sono aumentate del 7,5% a 20,7 miliardi di dollari.
I principali indicatori finanziari includono un utile per azione diluito di 1,98 dollari e un utile per azione diluito non-GAAP di 2,80 dollari. L'azienda ha restituito 138 milioni di dollari agli azionisti attraverso 101 milioni di dollari in riacquisti di azioni e 37 milioni di dollari in dividendi. Il dividendo trimestrale è stato aumentato del 10% a 0,44 dollari per azione.
Le performance regionali hanno mostrato un aumento dei ricavi delle Americhe del 6,2% a 8,4 miliardi di dollari, un aumento dei ricavi in Europa dello 0,4% a 5,1 miliardi di dollari e una crescita dei ricavi nell'Asia-Pacifico e in Giappone del 5,2% a 1,0 miliardi di dollari. Tuttavia, il margine lordo è diminuito al 6,9% rispetto al 7,2% a causa di margini più elevati nell'anno precedente nelle tecnologie strategiche e nel mix di prodotti.
TD SYNNEX (NYSE: SNX) reportó resultados sólidos para el primer trimestre fiscal 2025, con ingresos que alcanzaron 14.5 mil millones de dólares, un aumento del 4.0% en comparación con el año anterior (6.0% en moneda constante). Las facturaciones brutas no-GAAP aumentaron un 7.5% a 20.7 mil millones de dólares.
Las métricas financieras clave incluyen un EPS diluido de 1.98 dólares y un EPS diluido no-GAAP de 2.80 dólares. La compañía devolvió 138 millones de dólares a los accionistas a través de 101 millones de dólares en recompra de acciones y 37 millones de dólares en dividendos. El dividendo trimestral se incrementó en un 10% a 0.44 dólares por acción.
El rendimiento regional mostró que los ingresos de las Américas aumentaron un 6.2% a 8.4 mil millones de dólares, los ingresos de Europa aumentaron un 0.4% a 5.1 mil millones de dólares, y los ingresos de Asia-Pacífico y Japón crecieron un 5.2% a 1.0 mil millones de dólares. Sin embargo, el margen bruto disminuyó al 6.9% desde el 7.2% debido a márgenes más altos en el año anterior en tecnologías estratégicas y mezcla de productos.
TD SYNNEX (NYSE: SNX)는 2025 회계연도 1분기 실적을 발표하며 매출이 145억 달러에 달해 전년 대비 4.0% 증가했다고 보고했습니다 (상수 통화 기준 6.0% 증가). 비-GAAP 총 청구액은 7.5% 증가하여 207억 달러에 이르렀습니다.
주요 재무 지표로는 희석 주당순이익이 1.98달러, 비-GAAP 희석 주당순이익이 2.80달러입니다. 회사는 1억 3천8백만 달러를 주주에게 반환했으며, 이 중 1억 1백만 달러는 자사주 매입, 3천7백만 달러는 배당금으로 지급되었습니다. 분기 배당금은 10% 증가하여 주당 0.44달러가 되었습니다.
지역별 실적은 아메리카 매출이 6.2% 증가하여 84억 달러, 유럽 매출이 0.4% 증가하여 51억 달러, 아시아-태평양 및 일본 매출이 5.2% 증가하여 10억 달러에 도달했습니다. 그러나 총 마진은 전략 기술 및 제품 믹스에서 지난해보다 높은 마진으로 인해 7.2%에서 6.9%로 감소했습니다.
TD SYNNEX (NYSE: SNX) a annoncé des résultats solides pour le premier trimestre de l'exercice 2025, avec des revenus atteignant 14,5 milliards de dollars, en hausse de 4,0% par rapport à l'année précédente (6,0% à taux de change constant). Les facturations brutes non-GAAP ont augmenté de 7,5% pour atteindre 20,7 milliards de dollars.
Les indicateurs financiers clés comprennent un BPA dilué de 1,98 dollar et un BPA dilué non-GAAP de 2,80 dollars. L'entreprise a retourné 138 millions de dollars aux actionnaires par le biais de rachats d'actions de 101 millions de dollars et de dividendes de 37 millions de dollars. Le dividende trimestriel a été augmenté de 10% à 0,44 dollar par action.
Les performances régionales ont montré que les revenus des Amériques ont augmenté de 6,2% pour atteindre 8,4 milliards de dollars, les revenus en Europe ont augmenté de 0,4% pour atteindre 5,1 milliards de dollars, et les revenus en Asie-Pacifique et au Japon ont crû de 5,2% pour atteindre 1,0 milliard de dollars. Cependant, la marge brute a diminué à 6,9% contre 7,2% en raison de marges plus élevées l'année précédente dans les technologies stratégiques et le mix de produits.
TD SYNNEX (NYSE: SNX) hat im ersten Quartal des Geschäftsjahres 2025 starke Ergebnisse gemeldet, mit einem Umsatz von 14,5 Milliarden Dollar, was einem Anstieg von 4,0% im Vergleich zum Vorjahr entspricht (6,0% bei konstanten Währungen). Die Non-GAAP-Bruttorechnungen stiegen um 7,5% auf 20,7 Milliarden Dollar.
Wichtige Finanzkennzahlen umfassen einen verwässerten Gewinn pro Aktie von 1,98 Dollar und einen nicht-GAAP verwässerten Gewinn pro Aktie von 2,80 Dollar. Das Unternehmen gab 138 Millionen Dollar an die Aktionäre zurück, darunter 101 Millionen Dollar durch Aktienrückkäufe und 37 Millionen Dollar in Dividenden. Die vierteljährliche Dividende wurde um 10% auf 0,44 Dollar pro Aktie erhöht.
Die regionale Leistung zeigte, dass die Umsätze in den Amerikas um 6,2% auf 8,4 Milliarden Dollar gestiegen sind, die Umsätze in Europa um 0,4% auf 5,1 Milliarden Dollar zugenommen haben und die Umsätze in Asien-Pazifik und Japan um 5,2% auf 1,0 Milliarden Dollar gewachsen sind. Der Bruttomarge fiel jedoch von 7,2% auf 6,9% aufgrund höherer Margen im Vorjahr in strategischen Technologien und Produktmix.
- Revenue growth of 4.0% YoY to $14.5 billion
- Non-GAAP gross billings increased 7.5% to $20.7 billion
- 10% increase in quarterly dividend to $0.44 per share
- Strong regional growth with Americas revenue up 6.2%
- Gross margin declined to 6.9% from 7.2% YoY
- Non-GAAP diluted EPS decreased to $2.80 from $2.99 YoY
- Cash used in operations of $748M vs cash provided of $385M in prior year
- Non-GAAP operating margin declined to 2.7% from 3.0% YoY
Insights
TD SYNNEX's Q1 results present a mixed financial picture with strong topline growth counterbalanced by margin pressures. The company delivered $14.5 billion in revenue, growing 4.0% year-over-year (or 6.0% on constant currency), while non-GAAP gross billings reached $20.7 billion, increasing 7.5% (or 9.5% on constant currency).
While revenue growth is impressive and exceeding market rates, profitability metrics show concerning trends. Gross margin contracted from 7.2% to 6.9% year-over-year, primarily due to lower margins in strategic technologies and product mix shifts. Similarly, non-GAAP operating margin declined from 3.0% to 2.7%, and non-GAAP EPS fell from $2.99 to $2.80.
The cash flow situation raises red flags, with operations consuming $748 million compared to generating $385 million in the prior year period. This resulted in negative free cash flow of $790 million versus positive $344 million previously – a significant swing that warrants monitoring.
Regional performance was uneven: Americas showed operating margin improvement (non-GAAP operating margin holding steady at 3.0%), while Europe and Asia-Pacific both experienced margin contractions despite revenue growth. The 10% dividend increase to $0.44 per share signals management's confidence in long-term cash generation despite current pressures.
In summary, TD SYNNEX is successfully growing its business across all regions, but facing challenges maintaining profitability levels and generating cash flow amid competitive market dynamics.
-
Revenue of
$14.5 billion 4.0% from the prior fiscal first quarter. On a constant currency(1) basis, revenue increased by6.0% compared to the prior fiscal first quarter. -
Non-GAAP gross billings(1) of
$20.7 billion 7.5% from the prior fiscal first quarter and at the top end of our outlook. On a constant currency(1) basis, non-GAAP gross billings(1) increased by9.5% compared to the prior fiscal first quarter. -
Diluted earnings per share (“EPS”) of
$1.98 $2.80 -
Returned
$138 million $101 million $37 million -
Announced a quarterly cash dividend of
$0.44 10% from the prior fiscal first quarter.
“The strength of our business model allowed us to grow ahead of the market in Q1. Our end-to-end strategy, global reach and specialist go to market approach continues to empower us to capture a wide range of IT spend,” said Patrick Zammit, CEO of TD SYNNEX. “Gross billings in constant currency grew by
Consolidated Financial Highlights for the Fiscal 2025 First Quarter:
GAAP |
|||||||||||
($ in millions, except earnings per share) |
|
|
|
|
|
|
|||||
|
|
Q1 FY25 |
|
Q1 FY24 |
|
Net Change from
|
|||||
Revenue |
|
$ |
14,531.7 |
|
|
$ |
13,975.3 |
|
|
4.0 |
% |
Gross profit |
|
$ |
998.0 |
|
|
$ |
1,005.8 |
|
|
(0.8 |
)% |
Gross margin |
|
|
6.87 |
% |
|
|
7.20 |
% |
|
(33) bps |
|
Operating income |
|
$ |
304.5 |
|
|
$ |
302.6 |
|
|
0.6 |
% |
Operating margin |
|
|
2.10 |
% |
|
|
2.17 |
% |
|
(7) bps |
|
Net income |
|
$ |
167.5 |
|
|
$ |
172.1 |
|
|
(2.7 |
)% |
Diluted EPS |
|
$ |
1.98 |
|
|
$ |
1.93 |
|
|
2.6 |
% |
Non-GAAP |
|||||||||||
($ in millions, except earnings per share) |
|
|
|
|
|
|
|||||
|
|
Q1 FY25 |
|
Q1 FY24 |
|
Net Change from
|
|||||
Gross billings(1) |
|
$ |
20,718.2 |
|
|
$ |
19,266.7 |
|
|
7.5 |
% |
Gross to net %(1) |
|
|
(29.9 |
)% |
|
|
(27.5 |
)% |
|
(240) bps |
|
Revenue |
|
$ |
14,531.7 |
|
|
$ |
13,975.3 |
|
|
4.0 |
% |
Gross profit |
|
$ |
998.0 |
|
|
$ |
1,005.8 |
|
|
(0.8 |
)% |
Gross margin |
|
|
6.87 |
% |
|
|
7.20 |
% |
|
(33) bps |
|
Operating income(1) |
|
$ |
398.8 |
|
|
$ |
424.6 |
|
|
(6.1 |
)% |
Operating margin(1) |
|
|
2.74 |
% |
|
|
3.04 |
% |
|
(30) bps |
|
Net income(1) |
|
$ |
237.4 |
|
|
$ |
266.2 |
|
|
(10.8 |
)% |
Diluted EPS(1) |
|
$ |
2.80 |
|
|
$ |
2.99 |
|
|
(6.4 |
)% |
Consolidated Fiscal 2025 First Quarter Highlights
-
Revenue was
$14.5 billion $14.0 billion 4.0% . On a constant currency(1) basis, revenue increased by6.0% compared to the prior fiscal first quarter driven by growth in both our Endpoint Solutions and Advanced Solutions portfolios. A greater percentage of our sales were presented on a net basis, which negatively impacted our revenue compared to the prior fiscal first quarter by approximately4% . -
Non-GAAP gross billings(1) were
$20.7 billion $19.3 billion 7.5% and at the top end of our outlook. On a constant currency(1) basis, non-GAAP gross billings(1) increased by9.5% compared to the prior fiscal first quarter. -
Gross profit was
$998 million $1,006 million -
Gross margin was
6.9% , compared to7.2% in the prior fiscal first quarter, primarily due to higher margins in the prior year in strategic technologies and product mix. The presentation of additional revenues on a net basis positively impacted our gross margin by approximately 23 basis points. -
Operating income was
$305 million $303 million $399 million $425 million -
Operating margin was
2.1% , compared to2.2% in the prior fiscal first quarter. Non-GAAP operating margin(1) was2.7% , compared to3.0% in the prior fiscal first quarter. -
Diluted EPS was
$1.98 $1.93 $2.80 $2.99 -
Cash used in operations of
$748 million $385 million $790 million $344 million -
We returned
$138 million $235 million
Regional Fiscal 2025 First Quarter Highlights
-
Americas :-
Revenue was
$8.4 billion $7.9 billion 6.2% . On a constant currency(1) basis, revenue increased by7.0% compared to the prior fiscal first quarter. A greater percentage of our sales were presented on a net basis, which negatively impacted our revenue compared to the prior fiscal first quarter by approximately2% . -
Non-GAAP gross billings(1) were
$12.4 billion $11.5 billion 8.2% . On a constant currency(1) basis, non-GAAP gross billings(1) increased by9.1% compared to the prior fiscal first quarter. -
Operating income was
$194 million $160 million $248 million $240 million -
Operating margin was
2.3% , compared to2.0% in the prior fiscal first quarter. Non-GAAP operating margin(1) was3.0% , consistent with the prior fiscal first quarter.
-
Revenue was
-
Europe :-
Revenue was
$5.1 billion 0.4% compared to the prior fiscal first quarter. On a constant currency(1) basis, revenue increased by4.3% . A greater percentage of our sales were presented on a net basis, which negatively impacted our revenue compared to the prior fiscal first quarter by approximately4% . -
Non-GAAP gross billings(1) were
$6.9 billion $6.6 billion 4.3% . On a constant currency(1) basis, non-GAAP gross billings(1) increased by8.1% compared to the prior fiscal first quarter. -
Operating income was
$86 million $108 million $124 million $148 million -
Operating margin was
1.7% , compared to2.1% in the prior fiscal first quarter. Non-GAAP operating margin(1) was2.4% , compared to2.9% in the prior fiscal first quarter.
-
Revenue was
-
Asia-Pacific andJapan :-
Revenue was
$1.0 billion $955 million 5.2% . On a constant currency(1) basis, revenue increased by7.2% compared to the prior fiscal first quarter. A greater percentage of our sales were presented on a net basis, which negatively impacted our revenue compared to the prior fiscal first quarter by approximately14% . -
Non-GAAP gross billings(1) were
$1.4 billion $1.2 billion 19.5% . On a constant currency(1) basis, non-GAAP gross billings(1) increased by21.6% compared to the prior fiscal first quarter. -
Operating income was
$25 million $35 million $27 million $36 million -
Operating margin was
2.5% , compared to3.6% in the prior fiscal first quarter. Non-GAAP operating margin(1) was2.7% , compared to3.8% in the prior fiscal first quarter.
-
Revenue was
Fiscal 2025 Second Quarter Outlook
The following statements are based on TD SYNNEX’s current expectations for the fiscal 2025 second quarter. These statements are forward-looking and actual results may differ materially. Non-GAAP gross billings(1) include the impact of costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts, and the remaining non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, and the related tax effects thereon.
|
|
Q2 2025 Outlook |
Revenue |
|
|
Non-GAAP gross billings(1) |
|
|
Net income |
|
|
Non-GAAP net income(1) |
|
|
Diluted earnings per share |
|
|
Non-GAAP diluted earnings per share(1) |
|
|
Estimated outstanding diluted weighted average shares |
|
83.2 million |
Dividend
TD SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of
Conference Call and Webcast
TD SYNNEX will host a conference call today to discuss the 2025 fiscal first quarter results at 6:00 AM (PT)/9:00 AM (ET).
A live audio webcast of the earnings call will be accessible at ir.tdsynnex.com and a replay of the webcast will be available following the call.
About TD SYNNEX
TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We’re an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in
TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit TDSYNNEX.com, follow our newsroom or find us on LinkedIn, Facebook and Instagram.
(1)Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance with GAAP, TD SYNNEX uses and refers to:
- Non-GAAP gross billings, which adjusts revenues to exclude costs related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts. Non-GAAP gross billings are a useful non-GAAP metric in understanding the volume of our business activity and serve as an important performance metric in internally managing our operations.
- Revenue and non-GAAP gross billings in constant currency, which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our performance. Financial results adjusted for constant currency are calculated by translating current period activity using the comparable prior year periods’ currency conversion rate.
- “Gross to net %” refers to the percentage of adjustments made to non-GAAP gross billings for costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts.
- Adjusted selling, general and administrative expenses, which excludes acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. TD SYNNEX also uses adjusted selling, general and administrative expenses as a percentage of non-GAAP gross billings, which is a useful metric in considering our selling, general and administrative expenses without the impact of gross to net revenue adjustments to gross billings. Furthermore, TD SYNNEX uses adjusted selling, general and administrative expenses as a percentage of gross profit, which is a useful metric in considering the portion of gross profit retained after selling, general and administrative expenses.
- Non-GAAP operating income and non-GAAP operating margin, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense.
- Earnings before interest, taxes, depreciation and amortization (“EBITDA”), which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, and amortization of intangibles. TD SYNNEX also uses adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, amortization of intangibles, other income (expense), net, acquisition, integration and restructuring costs, and share-based compensation expense.
- Non-GAAP net income and non-GAAP diluted earnings per share, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, and the related tax effects thereon.
- Free cash flow, which is cash flow from operating activities reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because although it is similar to cash flows from operating activities, TD SYNNEX believes free cash flow is an additional useful measure of cash flows since purchases of property and equipment are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX’s liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations as it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire Consolidated Statements of Cash Flows.
- Trailing fiscal four quarters return on invested capital (“ROIC”), which is defined as the last four quarters’ tax effected operating income divided by the average of the last five quarterly balances of borrowings and equity, net of cash. Adjusted ROIC is calculated by excluding the tax effected impact of non-GAAP adjustments from operating income and by excluding the cumulative tax effected impact of current and prior period non-GAAP adjustments on equity.
In prior periods, TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures.
Acquisition, integration and restructuring costs, which are expensed as incurred, primarily represent professional services costs for legal, banking, consulting and advisory services, severance and other personnel-related costs, share-based compensation expense and debt extinguishment fees that are incurred in connection with acquisition, integration, restructuring, and divestiture activities. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses, costs related to long-lived assets including impairment charges and accelerated depreciation and amortization expense due to changes in asset useful lives, as well as various other costs associated with the acquisition or divestiture.
TD SYNNEX’s acquisition activities have resulted in the recognition of finite-lived intangible assets which consist primarily of customer relationships and vendor lists. Finite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company’s Statements of Operations. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company’s products. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees and non-employee members of the Company’s Board of Directors based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period.
TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX’s operational results and trends that more readily enable investors to analyze TD SYNNEX’s base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX’s Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release.
Safe Harbor Statement
Statements in this news release regarding TD SYNNEX that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of factors. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements about our strategy, demand, plans and positioning, capital allocation, as well as guidance related to the second quarter of 2025. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which TD SYNNEX is unable to predict or control, that may cause TD SYNNEX actual results, performance, or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to: the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; general economic and political conditions; weakness in information technology spending; seasonality; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; the timing and amount of returns to our stockholders via repurchases of our common stock and dividends; changes in foreign currency exchange rates; increased inflation; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our supplier finance programs; credit exposure to our reseller customers and negative trends in their businesses; any incidents of theft; the declaration, timing and payment of dividends, and the Board’s reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2024 and subsequent SEC filings. Statements included in this press release are based upon information known to TD SYNNEX as of the date of this release, and TD SYNNEX assumes no obligation to update information contained in this press release unless otherwise required by law.
Copyright 2025 TD SYNNEX CORPORATION. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks or registered trademarks of TD SYNNEX Corporation. Other names and marks are the property of their respective owners.
TD SYNNEX Corporation Consolidated Balance Sheets (Currency and share amounts in thousands, except par value) (Amounts may not add or compute due to rounding) (Unaudited) |
||||||||
|
|
February 28, 2025 |
|
November 30, 2024 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
541,863 |
|
|
$ |
1,059,378 |
|
Accounts receivable, net |
|
|
9,424,100 |
|
|
|
10,341,625 |
|
Receivables from vendors, net |
|
|
969,784 |
|
|
|
958,105 |
|
Inventories |
|
|
8,359,741 |
|
|
|
8,287,048 |
|
Other current assets |
|
|
663,385 |
|
|
|
678,540 |
|
Total current assets |
|
|
19,958,873 |
|
|
|
21,324,696 |
|
Property and equipment, net |
|
|
468,389 |
|
|
|
457,024 |
|
Goodwill |
|
|
3,877,529 |
|
|
|
3,895,077 |
|
Intangible assets, net |
|
|
3,819,180 |
|
|
|
3,912,267 |
|
Other assets, net |
|
|
672,095 |
|
|
|
685,415 |
|
Total assets |
|
$ |
28,796,066 |
|
|
$ |
30,274,479 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Borrowings, current |
|
$ |
590,956 |
|
|
$ |
171,092 |
|
Accounts payable |
|
|
13,037,467 |
|
|
|
15,084,107 |
|
Other accrued liabilities |
|
|
2,105,434 |
|
|
|
1,966,036 |
|
Total current liabilities |
|
|
15,733,857 |
|
|
|
17,221,235 |
|
Long-term borrowings |
|
|
3,737,009 |
|
|
|
3,736,399 |
|
Other long-term liabilities |
|
|
462,547 |
|
|
|
468,648 |
|
Deferred tax liabilities |
|
|
812,258 |
|
|
|
812,763 |
|
Total liabilities |
|
|
20,745,671 |
|
|
|
22,239,045 |
|
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
99 |
|
|
|
99 |
|
Additional paid-in capital |
|
|
7,446,315 |
|
|
|
7,437,688 |
|
Treasury stock, 15,796 and 15,289 shares as of February 28, 2025 and November 30, 2024, respectively |
|
|
(1,595,512 |
) |
|
|
(1,513,017 |
) |
Accumulated other comprehensive loss |
|
|
(686,605 |
) |
|
|
(645,117 |
) |
Retained earnings |
|
|
2,886,098 |
|
|
|
2,755,781 |
|
Total stockholders' equity |
|
|
8,050,395 |
|
|
|
8,035,434 |
|
Total liabilities and equity |
|
$ |
28,796,066 |
|
|
$ |
30,274,479 |
|
TD SYNNEX Corporation Consolidated Statements of Operations (Currency and share amounts in thousands, except per share amounts) (Amounts may not add or compute due to rounding) (Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Revenue |
|
$ |
14,531,707 |
|
|
$ |
13,975,253 |
|
Cost of revenue |
|
|
(13,533,701 |
) |
|
|
(12,969,487 |
) |
Gross profit |
|
|
998,006 |
|
|
|
1,005,766 |
|
Selling, general and administrative expenses |
|
|
(692,485 |
) |
|
|
(671,545 |
) |
Acquisition, integration and restructuring costs |
|
|
(1,062 |
) |
|
|
(31,649 |
) |
Operating income |
|
|
304,459 |
|
|
|
302,572 |
|
Interest expense and finance charges, net |
|
|
(87,880 |
) |
|
|
(75,891 |
) |
Other expense, net |
|
|
(1,696 |
) |
|
|
(2,884 |
) |
Income before income taxes |
|
|
214,883 |
|
|
|
223,797 |
|
Provision for income taxes |
|
|
(47,346 |
) |
|
|
(51,669 |
) |
Net income |
|
$ |
167,537 |
|
|
$ |
172,128 |
|
Earnings per common share: |
|
|
|
|
||||
Basic |
|
$ |
1.98 |
|
|
$ |
1.94 |
|
Diluted |
|
$ |
1.98 |
|
|
$ |
1.93 |
|
Weighted-average common shares outstanding: |
|
|
|
|
||||
Basic |
|
|
83,615 |
|
|
|
87,891 |
|
Diluted |
|
|
83,970 |
|
|
|
88,203 |
|
TD SYNNEX Corporation Consolidated Statements of Cash Flows (Currency amounts in thousands) (Amounts may not add or compute due to rounding) (Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
167,537 |
|
|
$ |
172,128 |
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
99,710 |
|
|
|
100,619 |
|
Share-based compensation |
|
|
21,861 |
|
|
|
17,490 |
|
Provision for doubtful accounts |
|
|
6,366 |
|
|
|
11,194 |
|
Other |
|
|
4,373 |
|
|
|
1,170 |
|
Changes in operating assets and liabilities, net of acquisition of businesses: |
|
|
|
|
||||
Accounts receivable, net |
|
|
854,220 |
|
|
|
1,343,075 |
|
Receivables from vendors, net |
|
|
(16,640 |
) |
|
|
46,380 |
|
Inventories |
|
|
(102,861 |
) |
|
|
42,176 |
|
Accounts payable |
|
|
(1,970,112 |
) |
|
|
(926,836 |
) |
Other operating assets and liabilities |
|
|
187,549 |
|
|
|
(422,687 |
) |
Net cash (used in) provided by operating activities |
|
|
(747,997 |
) |
|
|
384,709 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(41,525 |
) |
|
|
(41,088 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(3,793 |
) |
|
|
(28,443 |
) |
Other |
|
|
786 |
|
|
|
1,621 |
|
Net cash used in investing activities |
|
|
(44,532 |
) |
|
|
(67,910 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Dividends paid |
|
|
(37,220 |
) |
|
|
(35,652 |
) |
Proceeds from reissuance of treasury stock |
|
|
9,781 |
|
|
|
2,727 |
|
Repurchases of common stock |
|
|
(100,510 |
) |
|
|
(199,225 |
) |
Repurchases of common stock for tax withholdings on equity awards |
|
|
(4,250 |
) |
|
|
(4,798 |
) |
Net borrowings (repayments) on revolving credit loans |
|
|
421,422 |
|
|
|
(56,055 |
) |
Principal payments on long-term debt |
|
|
(627 |
) |
|
|
(18,204 |
) |
Net cash provided by (used in) financing activities |
|
|
288,596 |
|
|
|
(311,207 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(13,582 |
) |
|
|
(8,422 |
) |
Net decrease in cash and cash equivalents |
|
|
(517,515 |
) |
|
|
(2,830 |
) |
Cash and cash equivalents at beginning of period |
|
|
1,059,378 |
|
|
|
1,033,776 |
|
Cash and cash equivalents at end of period |
|
$ |
541,863 |
|
|
$ |
1,030,946 |
|
TD SYNNEX Corporation Regional Financial Highlights - Fiscal 2025 First Quarter (Currency in millions) (Amounts may not add or compute due to rounding) |
|||||||||||
|
|
Q1 FY25 |
|
Q1 FY24 |
|
Net Change from
|
|||||
|
|
|
|
|
|
|
|||||
Revenue |
|
$ |
8,389.3 |
|
|
$ |
7,903.1 |
|
|
6.2 |
% |
Non-GAAP gross billings(1) |
|
$ |
12,445.8 |
|
|
$ |
11,506.3 |
|
|
8.2 |
% |
Operating income |
|
$ |
193.7 |
|
|
$ |
159.7 |
|
|
21.3 |
% |
Non-GAAP operating income(1) |
|
$ |
248.1 |
|
|
$ |
240.3 |
|
|
3.2 |
% |
Operating margin |
|
|
2.31 |
% |
|
|
2.02 |
% |
|
29 bps |
|
Non-GAAP operating margin(1) |
|
|
2.96 |
% |
|
|
3.04 |
% |
|
(8) bps |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Revenue |
|
$ |
5,137.8 |
|
|
$ |
5,117.3 |
|
|
0.4 |
% |
Non-GAAP gross billings(1) |
|
$ |
6,887.2 |
|
|
$ |
6,601.4 |
|
|
4.3 |
% |
Operating income |
|
$ |
85.9 |
|
|
$ |
108.3 |
|
|
(20.7 |
)% |
Non-GAAP operating income(1) |
|
$ |
123.6 |
|
|
$ |
147.8 |
|
|
(16.4 |
)% |
Operating margin |
|
|
1.67 |
% |
|
|
2.12 |
% |
|
(45) bps |
|
Non-GAAP operating margin(1) |
|
|
2.41 |
% |
|
|
2.89 |
% |
|
(48) bps |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Revenue |
|
$ |
1,004.6 |
|
|
$ |
954.9 |
|
|
5.2 |
% |
Non-GAAP gross billings(1) |
|
$ |
1,385.2 |
|
|
$ |
1,159.0 |
|
|
19.5 |
% |
Operating income |
|
$ |
24.8 |
|
|
$ |
34.6 |
|
|
(28.3 |
)% |
Non-GAAP operating income(1) |
|
$ |
27.1 |
|
|
$ |
36.4 |
|
|
(25.5 |
)% |
Operating margin |
|
|
2.47 |
% |
|
|
3.62 |
% |
|
(115) bps |
|
Non-GAAP operating margin(1) |
|
|
2.70 |
% |
|
|
3.82 |
% |
|
(112) bps |
|
(1) A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release. |
|||||||||||
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||
|
|
Three Months Ended |
||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||
Revenue in constant currency |
|
|
|
|
||
Consolidated |
|
|
|
|
||
Revenue |
|
$ |
14,531,707 |
|
$ |
13,975,253 |
Impact of changes in foreign currencies |
|
|
283,697 |
|
|
— |
Revenue in constant currency |
|
$ |
14,815,404 |
|
$ |
13,975,253 |
|
|
|
|
|
||
|
|
|
|
|
||
Revenue |
|
$ |
8,389,338 |
|
$ |
7,903,096 |
Impact of changes in foreign currencies |
|
|
66,239 |
|
|
— |
Revenue in constant currency |
|
$ |
8,455,577 |
|
$ |
7,903,096 |
|
|
|
|
|
||
|
|
|
|
|
||
Revenue |
|
$ |
5,137,765 |
|
$ |
5,117,252 |
Impact of changes in foreign currencies |
|
|
198,678 |
|
|
— |
Revenue in constant currency |
|
$ |
5,336,443 |
|
$ |
5,117,252 |
|
|
|
|
|
||
|
|
|
|
|
||
Revenue |
|
$ |
1,004,604 |
|
$ |
954,905 |
Impact of changes in foreign currencies |
|
|
18,780 |
|
|
— |
Revenue in constant currency |
|
$ |
1,023,384 |
|
$ |
954,905 |
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||
|
|
Three Months Ended |
||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||
Non-GAAP gross billings |
|
|
|
|
||
Consolidated |
|
|
|
|
||
Revenue |
|
$ |
14,531,707 |
|
$ |
13,975,253 |
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
6,186,489 |
|
|
5,291,480 |
Non-GAAP gross billings |
|
$ |
20,718,196 |
|
$ |
19,266,733 |
Impact of changes in foreign currencies |
|
|
381,353 |
|
|
— |
Non-GAAP gross billings in constant currency |
|
$ |
21,099,549 |
|
$ |
19,266,733 |
|
|
|
|
|
||
|
|
|
|
|
||
Revenue |
|
$ |
8,389,338 |
|
$ |
7,903,096 |
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
4,056,479 |
|
|
3,603,247 |
Non-GAAP gross billings |
|
$ |
12,445,817 |
|
$ |
11,506,343 |
Impact of changes in foreign currencies |
|
|
106,143 |
|
|
— |
Non-GAAP gross billings in constant currency |
|
$ |
12,551,960 |
|
$ |
11,506,343 |
|
|
|
|
|
||
|
|
|
|
|
||
Revenue |
|
$ |
5,137,765 |
|
$ |
5,117,252 |
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
1,749,413 |
|
|
1,484,128 |
Non-GAAP gross billings |
|
$ |
6,887,178 |
|
$ |
6,601,380 |
Impact of changes in foreign currencies |
|
|
251,631 |
|
|
— |
Non-GAAP gross billings in constant currency |
|
$ |
7,138,809 |
|
$ |
6,601,380 |
|
|
|
|
|
||
|
|
|
|
|
||
Revenue |
|
$ |
1,004,604 |
|
$ |
954,905 |
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
380,597 |
|
|
204,105 |
Non-GAAP gross billings |
|
$ |
1,385,201 |
|
$ |
1,159,010 |
Impact of changes in foreign currencies |
|
|
23,579 |
|
|
— |
Non-GAAP gross billings in constant currency |
|
$ |
1,408,780 |
|
$ |
1,159,010 |
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||||
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Adjusted selling, general and administrative expenses |
|
|
|
|
||||
Revenue |
|
$ |
14,531,707 |
|
|
$ |
13,975,253 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
6,186,489 |
|
|
|
5,291,480 |
|
Non-GAAP gross billings |
|
$ |
20,718,196 |
|
|
$ |
19,266,733 |
|
|
|
|
|
|
||||
Gross profit |
|
$ |
998,006 |
|
|
$ |
1,005,766 |
|
|
|
|
|
|
||||
Selling, general and administrative expenses(1) |
|
$ |
693,547 |
|
|
$ |
703,194 |
|
Acquisition, integration and restructuring costs |
|
|
(1,062 |
) |
|
|
(31,649 |
) |
Amortization of intangibles |
|
|
(71,407 |
) |
|
|
(72,877 |
) |
Share-based compensation |
|
|
(21,861 |
) |
|
|
(17,490 |
) |
Adjusted selling, general and administrative expenses |
|
$ |
599,217 |
|
|
$ |
581,178 |
|
|
|
|
|
|
||||
Selling, general and administrative expenses(1) as a percentage of revenue |
|
|
4.77 |
% |
|
|
5.03 |
% |
Adjusted selling, general and administrative expenses as a percentage of non-GAAP gross billings |
|
|
2.89 |
% |
|
|
3.02 |
% |
Selling, general and administrative expenses(1) as a percentage of gross profit |
|
|
69.5 |
% |
|
|
69.9 |
% |
Adjusted selling, general and administrative expenses as a percentage of gross profit |
|
|
60.0 |
% |
|
|
57.8 |
% |
(1) Includes acquisition, integration and restructuring costs, which are presented separately on the Consolidated Statements of Operations. |
||||||||
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||||
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Non-GAAP operating income & non-GAAP operating margin - Consolidated |
|
|
|
|
||||
Revenue |
|
$ |
14,531,707 |
|
|
$ |
13,975,253 |
|
|
|
|
|
|
||||
Operating income |
|
$ |
304,459 |
|
|
$ |
302,572 |
|
Acquisition, integration and restructuring costs |
|
|
1,062 |
|
|
|
31,649 |
|
Amortization of intangibles |
|
|
71,407 |
|
|
|
72,877 |
|
Share-based compensation |
|
|
21,861 |
|
|
|
17,490 |
|
Non-GAAP operating income |
|
$ |
398,789 |
|
|
$ |
424,588 |
|
|
|
|
|
|
||||
Operating margin |
|
|
2.10 |
% |
|
|
2.17 |
% |
Non-GAAP operating margin |
|
|
2.74 |
% |
|
|
3.04 |
% |
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Non-GAAP operating income & non-GAAP operating margin - |
|
|
|
|
||||
Revenue |
|
$ |
8,389,338 |
|
|
$ |
7,903,096 |
|
|
|
|
|
|
||||
Operating income |
|
$ |
193,722 |
|
|
$ |
159,682 |
|
Acquisition, integration and restructuring costs |
|
|
324 |
|
|
|
27,372 |
|
Amortization of intangibles |
|
|
40,417 |
|
|
|
41,453 |
|
Share-based compensation |
|
|
13,651 |
|
|
|
11,798 |
|
Non-GAAP operating income |
|
$ |
248,114 |
|
|
$ |
240,305 |
|
|
|
|
|
|
||||
Operating margin |
|
|
2.31 |
% |
|
|
2.02 |
% |
Non-GAAP operating margin |
|
|
2.96 |
% |
|
|
3.04 |
% |
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Non-GAAP operating income & non-GAAP operating margin - |
|
|
|
|
||||
Revenue |
|
$ |
5,137,765 |
|
|
$ |
5,117,252 |
|
|
|
|
|
|
||||
Operating income |
|
$ |
85,892 |
|
|
$ |
108,325 |
|
Acquisition, integration and restructuring costs |
|
|
626 |
|
|
|
3,952 |
|
Amortization of intangibles |
|
|
30,189 |
|
|
|
30,802 |
|
Share-based compensation |
|
|
6,860 |
|
|
|
4,763 |
|
Non-GAAP operating income |
|
$ |
123,567 |
|
|
$ |
147,842 |
|
|
|
|
|
|
||||
Operating margin |
|
|
1.67 |
% |
|
|
2.12 |
% |
Non-GAAP operating margin |
|
|
2.41 |
% |
|
|
2.89 |
% |
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||||
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Non-GAAP operating income & non-GAAP operating margin - |
|
|
|
|
||||
Revenue |
|
$ |
1,004,604 |
|
|
$ |
954,905 |
|
|
|
|
|
|
||||
Operating income |
|
$ |
24,845 |
|
|
$ |
34,565 |
|
Acquisition, integration and restructuring costs |
|
|
112 |
|
|
|
325 |
|
Amortization of intangibles |
|
|
801 |
|
|
|
622 |
|
Share-based compensation |
|
|
1,350 |
|
|
|
929 |
|
Non-GAAP operating income |
|
$ |
27,108 |
|
|
$ |
36,441 |
|
|
|
|
|
|
||||
Operating margin |
|
|
2.47 |
% |
|
|
3.62 |
% |
Non-GAAP operating margin |
|
|
2.70 |
% |
|
|
3.82 |
% |
|
|
Three Months Ended |
||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||
EBITDA & adjusted EBITDA |
|
|
|
|
||
Net income |
|
$ |
167,537 |
|
$ |
172,128 |
Interest expense and finance charges, net |
|
|
87,880 |
|
|
75,891 |
Provision for income taxes |
|
|
47,346 |
|
|
51,669 |
Depreciation(1) |
|
|
28,303 |
|
|
27,742 |
Amortization of intangibles |
|
|
71,407 |
|
|
72,877 |
EBITDA |
|
$ |
402,473 |
|
$ |
400,307 |
Other expense, net |
|
|
1,696 |
|
|
2,884 |
Acquisition, integration and restructuring costs |
|
|
1,062 |
|
|
31,254 |
Share-based compensation |
|
|
21,861 |
|
|
17,490 |
Adjusted EBITDA |
|
$ |
427,092 |
|
$ |
451,935 |
(1) Includes depreciation recorded in acquisition, integration, and restructuring costs. |
||||||
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands, except per share amounts) (Amounts may not add or compute due to rounding) |
||||||||
|
|
Three Months Ended |
||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
Non-GAAP net income & non-GAAP diluted EPS(1) |
|
|
|
|
||||
Net income |
|
$ |
167,537 |
|
|
$ |
172,128 |
|
Acquisition, integration and restructuring costs |
|
|
1,062 |
|
|
|
31,649 |
|
Amortization of intangibles |
|
|
71,407 |
|
|
|
72,877 |
|
Share-based compensation |
|
|
21,861 |
|
|
|
17,490 |
|
Income taxes related to the above |
|
|
(24,496 |
) |
|
|
(27,921 |
) |
Non-GAAP net income |
|
$ |
237,371 |
|
|
$ |
266,223 |
|
|
|
|
|
|
||||
Diluted EPS(1) |
|
$ |
1.98 |
|
|
$ |
1.93 |
|
Acquisition, integration and restructuring costs |
|
|
0.01 |
|
|
|
0.36 |
|
Amortization of intangibles |
|
|
0.84 |
|
|
|
0.81 |
|
Share-based compensation |
|
|
0.26 |
|
|
|
0.20 |
|
Income taxes related to the above |
|
|
(0.29 |
) |
|
|
(0.31 |
) |
Non-GAAP Diluted EPS(1) |
|
$ |
2.80 |
|
|
$ |
2.99 |
|
(1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For purposes of calculating Diluted EPS, net income allocated to participating securities was approximately |
||||||||
TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Amounts may not add or compute due to rounding) |
||||||||
|
|
Three Months Ended |
||||||
(Currency in thousands) |
|
February 28, 2025 |
|
February 29, 2024 |
||||
Free cash flow |
|
|
|
|
||||
Net cash (used in) provided by operating activities |
|
$ |
(747,997 |
) |
|
$ |
384,709 |
|
Purchases of property and equipment |
|
|
(41,525 |
) |
|
|
(41,088 |
) |
Free cash flow |
|
$ |
(789,522 |
) |
|
$ |
343,621 |
|
|
|
Forecast |
||||||
|
|
Three Months Ending |
||||||
(Currency in millions, except per share amounts) |
|
May 31, 2025 |
||||||
Non-GAAP net income and non-GAAP Diluted EPS |
|
Low |
|
High |
||||
Net income |
|
$ |
137 |
|
|
$ |
179 |
|
Amortization of intangibles |
|
|
75 |
|
|
|
75 |
|
Share-based compensation |
|
|
13 |
|
|
|
13 |
|
Income taxes related to the above |
|
|
(20 |
) |
|
|
(20 |
) |
Non-GAAP net income |
|
$ |
205 |
|
|
$ |
247 |
|
|
|
|
|
|
||||
Diluted EPS(1) |
|
$ |
1.64 |
|
|
$ |
2.14 |
|
Amortization of intangibles |
|
|
0.89 |
|
|
|
0.89 |
|
Share-based compensation |
|
|
0.16 |
|
|
|
0.16 |
|
Income taxes related to the above |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
Non-GAAP Diluted EPS(1) |
|
$ |
2.45 |
|
|
$ |
2.95 |
|
(1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. Net income allocable to participating securities is estimated to be approximately |
||||||||
|
|
Forecast |
||||
|
|
Three Months Ending |
||||
(Currency in billions) |
|
May 31, 2025 |
||||
Non-GAAP gross billings |
|
Low |
|
High |
||
Revenue |
|
$ |
13.9 |
|
$ |
14.7 |
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
5.8 |
|
|
6.0 |
Non-GAAP gross billings |
|
$ |
19.7 |
|
$ |
20.7 |
TD SYNNEX Corporation Calculation of Financial Metrics Return on Invested Capital (“ROIC”) (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||||
|
|
February 28, 2025 |
|
February 29, 2024 |
||||
ROIC |
|
|
|
|
||||
Operating income (trailing fiscal four quarters) |
|
$ |
1,196,098 |
|
|
$ |
1,082,442 |
|
Income taxes on operating income(1) |
|
|
(241,222 |
) |
|
|
(222,351 |
) |
Operating income after taxes |
|
$ |
954,876 |
|
|
$ |
860,091 |
|
|
|
|
|
|
||||
Total invested capital comprising equity and borrowings, less cash (last five quarters average) |
|
$ |
11,307,850 |
|
|
$ |
11,405,681 |
|
|
|
|
|
|
||||
ROIC |
|
|
8.4 |
% |
|
|
7.5 |
% |
|
|
|
|
|
||||
Adjusted ROIC |
|
|
|
|
||||
Non-GAAP operating income (trailing fiscal four quarters) |
|
$ |
1,601,231 |
|
|
$ |
1,624,021 |
|
Income taxes on non-GAAP operating income(1) |
|
|
(354,345 |
) |
|
|
(364,991 |
) |
Non-GAAP operating income after taxes |
|
$ |
1,246,886 |
|
|
$ |
1,259,030 |
|
|
|
|
|
|
||||
Total invested capital comprising equity and borrowings, less cash (last five quarters average) |
|
$ |
11,307,850 |
|
|
$ |
11,405,681 |
|
Tax effected impact of cumulative non-GAAP adjustments (last five quarters average) |
|
|
1,530,137 |
|
|
|
1,172,514 |
|
Total non-GAAP invested capital (last five quarters average) |
|
$ |
12,837,987 |
|
|
$ |
12,578,195 |
|
|
|
|
|
|
||||
Adjusted ROIC |
|
|
9.7 |
% |
|
|
10.0 |
% |
(1) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods. |
||||||||
TD SYNNEX Corporation Calculation of Financial Metrics Cash Conversion Cycle (Currency in thousands) (Amounts may not add or compute due to rounding) |
||||||||
|
|
|
|
Three Months Ended |
||||
|
|
|
|
February 28, 2025 |
|
February 29, 2024 |
||
Days sales outstanding |
|
|
|
|
|
|
||
Revenue |
|
(a) |
|
$ |
14,531,707 |
|
$ |
13,975,253 |
Accounts receivable, net |
|
(b) |
|
|
9,424,100 |
|
|
8,902,803 |
Days sales outstanding |
|
(c) = ((b)/(a))*the number of days during the period |
|
|
58 |
|
|
58 |
|
|
|
|
|
|
|
||
Days inventory outstanding |
|
|
|
|
|
|
||
Cost of revenue |
|
(d) |
|
$ |
13,533,701 |
|
$ |
12,969,487 |
Inventories |
|
(e) |
|
|
8,359,741 |
|
|
7,091,146 |
Days inventory outstanding |
|
(f) = ((e)/(d))*the number of days during the period |
|
|
56 |
|
|
50 |
|
|
|
|
|
|
|
||
Days payable outstanding |
|
|
|
|
|
|
||
Cost of revenue |
|
(g) |
|
$ |
13,533,701 |
|
$ |
12,969,487 |
Accounts payable |
|
(h) |
|
|
13,037,467 |
|
|
12,372,749 |
Days payable outstanding |
|
(i) = ((h)/(g))*the number of days during the period |
|
|
87 |
|
|
87 |
|
|
|
|
|
|
|
||
Cash conversion cycle |
|
(j) = (c)+(f)-(i) |
|
|
27 |
|
|
21 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250327973757/en/
David
Investor Relations
510-668-8436
IR@tdsynnex.com
Emily Moseley
Global Corporate Communications
727-538-5864
emily.moseley@tdsynnex.com
Source: TD SYNNEX
FAQ
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