Home Business Wire ScanSource Delivers Outstanding Second Quarter Performance

ScanSource Delivers Outstanding Second Quarter Performance

Exceeds Expectations and Raises Full Year Outlook Following Another Quarter of Strong Demand

Named to FORTUNE Magazine’s List of World’s Most Admired Companies for Sixth Consecutive Year

GREENVILLE, S.C.–(BUSINESS WIRE)–ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the second quarter ended December 31, 2021. All results in this release reflect continuing operations only unless otherwise noted.

Second Quarter Summary:

Quarter ended December 31,

 

2021

 

2020

 

Change

 

(in thousands, except per share data)

Select reported measures:

 

 

 

 

 

Net sales

$

864,351

 

 

$

810,897

 

 

6.6%

Gross profit

$

107,925

 

 

$

86,043

 

 

25.4%

Gross profit margin %

 

12.49

%

 

 

10.61

%

 

188bp

Operating income

$

31,498

 

 

$

17,130

 

 

83.9%

GAAP net income

$

23,152

 

 

$

11,061

 

 

109.3%

GAAP diluted EPS

$

0.89

 

 

$

0.43

 

 

107.0%

Select Non-GAAP measures:

 

 

 

 

 

Adjusted EBITDA

$

42,542

 

 

$

29,739

 

 

43.1%

Adjusted EBITDA margin %

 

4.92

%

 

 

3.67

%

 

125bp

Non-GAAP net income

$

26,446

 

 

$

16,469

 

 

60.6%

Non-GAAP diluted EPS

$

1.02

 

 

$

0.65

 

 

56.9%

“Strong demand drove top-line growth with profitability ahead of expectations, as our team successfully navigated ongoing supply chain challenges,” said Mike Baur, Chairman and CEO, ScanSource, Inc. “This demand from channel partners across our technologies and operational excellence by our employees lead us to raise our full year 2022 outlook for both net sales growth and adjusted EBITDA.”

Quarterly Results

Net sales for the second quarter of fiscal year 2022 totaled $864.4 million, up 6.6% year-over-year, or 7.0% year-over-year for organic growth. Second quarter fiscal year 2022 net sales in the Specialty Technology Solutions segment increased 9.2% year-over-year to $496.9 million, driven by broad-based demand across technologies. Second quarter fiscal year 2022 net sales in Modern Communications & Cloud increased 3.3% year-over-year, or 3.9% year-over-year for organic growth, to $367.4 million, with Intelisys connectivity and cloud business net sales increasing 14.1% year-over-year.

Gross profit for the second quarter of fiscal year 2022 totaled $107.9 million, up 25.4% year-over-year. Gross profit margin increased to 12.5% for the second quarter of fiscal year 2022, up from 10.6% in the prior-year quarter. The increase is primarily due to sales volume, sales mix and higher supplier sales incentives compared to the prior-year quarter.

For the second quarter of fiscal year 2022, operating income increased to $31.5 million from $17.1 million in the prior-year quarter. Second quarter fiscal year 2022 non-GAAP operating income increased to $35.9 million for a 4.15% non-GAAP operating income margin, up from $23.8 million for the prior-year quarter.

On a GAAP basis, net income for the second quarter of fiscal year 2022 totaled $23.2 million, or $0.89 per diluted share, compared to net income of $11.1 million, or $0.43 per diluted share, for the prior-year quarter. Second quarter fiscal year 2022 non-GAAP net income totaled $26.4 million, or $1.02 per diluted share, up from $16.5 million, or $0.65 per diluted share, for the prior-year quarter.

Adjusted EBITDA for the second quarter of fiscal year 2022 increased to $42.5 million, or 4.92% of net sales, compared to $29.7 million, or 3.67% of net sales in the prior-year quarter, primarily due to higher gross profits and operating leverage. Return on invested capital increased to 17.6% for second quarter fiscal year 2022, compared to 13.3% in the prior-year quarter.

Naming to FORTUNE Magazine’s List of World’s Most Admired Companies

In February, ScanSource announced its naming to FORTUNE magazine’s 2022 list of World’s Most Admired Companies. ScanSource’s inclusion in this year’s list marks the sixth consecutive year the Company has received the recognition. The annual survey, which is given to thousands of senior executives, directors and financial analysts from more than 600 global companies, identifies the organizations with the strongest reputations within their industries and across other industries.

Annual Financial Outlook for Fiscal Year 2022

ScanSource raises its expectations for the full fiscal year ended June 30, 2022 and replaces previously provided guidance.

 

 

FY22 Annual Outlook

Net sales growth, year-over-year

 

At least 7%

Adjusted EBITDA (non-GAAP)

 

At least $148 million

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

Webcast Details and Earnings Infographic

At approximately 4:15 p.m. ET today, an Earnings Infographic, as a supplement to this press release and the Company’s conference call, will be available on ScanSource’s website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, February 8, 2022, at 5:00 p.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains “forward-looking” statements, including the Company’s FY22 outlook, operating strategy, supply chain challenges, capital allocation plans, growth opportunities and the impact of the COVID-19 pandemic, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, failure to hire and retain quality employees, risk to the Company’s business from a cyber-security attack, the failure to manage and implement the Company’s organic growth strategy, the impact of the COVID-19 pandemic on the Company’s operations and financial condition and the potential prolonged economic weakness brought on by COVID-19, a failure of the Company’s IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting the Company’s international operations, credit risks involving the Company’s larger customers and suppliers, loss of the Company’s major customers, termination of the Company’s relationship with key suppliers or a significant modification of the terms under which it operates with a key supplier, changes in the Company’s operating strategy, and other factors set forth in the “Risk Factors” contained in the Company’s annual report on Form 10-K for the year ended June 30, 2021, filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition costs, restructuring costs and other non-GAAP adjustments.

Net sales on a constant currency basis, excluding acquisitions (organic growth): The Company discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions prior to the first full year from the acquisition date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

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

Adjusted earnings before interest expense, income taxes, depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, changes in fair value of contingent considerations, and other non-GAAP adjustments, including acquisition and divestiture costs, impairment charges, and restructuring costs. Effective with the first quarter of fiscal year 2022, non-cash share-based compensation expense is also 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. The presentation for Adjusted EBITDA for all periods presented has been recast to reflect this change to enhance comparability between periods.

Return on invested capital (“ROIC”): ROIC assists management in comparing the Company’s performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance. We believe the calculation of ROIC provides useful information to investors and is an additional relevant comparison of our performance. ROIC is calculated as Adjusted EBITDA over invested capital. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of ROIC provides useful information to investors and is an additional relevant comparison of the Company’s performance during the year.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that the Company reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of the Company’s non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for partners across hardware, SaaS, connectivity and cloud. ScanSource enables partners to deliver solutions for their customers to address changing end-user buying and consumption patterns. ScanSource sells through multiple, specialized routes-to-market with hardware, SaaS, connectivity and cloud services offerings from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2021 Best Places to Work in South Carolina and on FORTUNE magazine’s 2022 List of World’s Most Admired Companies. ScanSource ranks #655 on the Fortune 1000. For more information, visit www.scansource.com.

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

December 31, 2021

 

June 30, 2021*

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

34,123

 

 

$

62,718

 

Accounts receivable, less allowance of $17,393 at December 31, 2021 and $19,341 at June 30, 2021

 

613,186

 

 

 

568,984

 

Inventories

 

562,397

 

 

 

470,081

 

Prepaid expenses and other current assets

 

124,633

 

 

 

117,860

 

Total current assets

 

1,334,339

 

 

 

1,219,643

 

Property and equipment, net

 

39,239

 

 

 

42,836

 

Goodwill

 

216,755

 

 

 

218,877

 

Identifiable intangible assets, net

 

95,045

 

 

 

104,860

 

Deferred income taxes

 

21,668

 

 

 

21,853

 

Other non-current assets

 

63,824

 

 

 

63,615

 

Total assets

$

1,770,870

 

 

$

1,671,684

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

653,190

 

 

$

634,805

 

Accrued expenses and other current liabilities

 

81,570

 

 

 

87,790

 

Income taxes payable

 

2,283

 

 

 

2,501

 

Current portion of long-term debt

 

9,723

 

 

 

7,843

 

Total current liabilities

 

746,766

 

 

 

732,939

 

Deferred income taxes

 

3,862

 

 

 

3,954

 

Long-term debt, net of current portion

 

129,358

 

 

 

135,331

 

Borrowings under revolving credit facility

 

57,785

 

 

 

 

Other long-term liabilities

 

64,574

 

 

 

68,269

 

Total liabilities

 

1,002,345

 

 

 

940,493

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

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

 

 

 

 

 

Common stock, no par value; 45,000,000 shares authorized, 25,657,545 and 25,499,465 shares issued and outstanding at December 31, 2021 and June 30, 2021, respectively

 

75,583

 

 

 

71,253

 

Retained earnings

 

803,396

 

 

 

758,071

 

Accumulated other comprehensive loss

 

(110,454

)

 

 

(98,133

)

Total shareholders’ equity

 

768,525

 

 

 

731,191

 

Total liabilities and shareholders’ equity

$

1,770,870

 

 

$

1,671,684

 

 

*Derived from audited financial statements.

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

Quarter ended December 31,

 

Six months ended December 31,

 

2021

 

2020

 

2021

 

2020

Net sales

$

864,351

 

 

$

810,897

 

 

$

1,721,662

 

 

$

1,568,238

 

Cost of goods sold

 

756,426

 

 

 

724,854

 

 

 

1,512,437

 

 

 

1,401,415

 

Gross profit

 

107,925

 

 

 

86,043

 

 

 

209,225

 

 

 

166,823

 

Selling, general and administrative expenses

 

69,433

 

 

 

60,470

 

 

 

133,016

 

 

 

122,580

 

Depreciation expense

 

2,547

 

 

 

3,097

 

 

 

5,427

 

 

 

6,494

 

Intangible amortization expense

 

4,447

 

 

 

4,862

 

 

 

8,956

 

 

 

9,716

 

Restructuring and other charges

 

 

 

 

484

 

 

 

 

 

 

8,753

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

 

 

516

 

Operating income

 

31,498

 

 

 

17,130

 

 

 

61,826

 

 

 

18,764

 

Interest expense

 

1,493

 

 

 

1,796

 

 

 

3,153

 

 

 

3,709

 

Interest income

 

(947

)

 

 

(531

)

 

 

(1,973

)

 

 

(1,011

)

Other expense, net

 

543

 

 

 

121

 

 

 

807

 

 

 

484

 

Income before income taxes

 

30,409

 

 

 

15,744

 

 

 

59,839

 

 

 

15,582

 

Provision for income taxes

 

7,257

 

 

 

4,683

 

 

 

14,614

 

 

 

4,636

 

Net income from continuing operations

 

23,152

 

 

 

11,061

 

 

 

45,225

 

 

 

10,946

 

Net income (loss) from discontinued operations

 

100

 

 

 

(25,255

)

 

 

100

 

 

 

(36,959

)

Net income (loss)

$

23,252

 

 

$

(14,194

)

 

$

45,325

 

 

$

(26,013

)

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

 

Net income from continuing operations per common share, basic

$

0.91

 

 

$

0.44

 

 

$

1.77

 

 

$

0.43

 

Net loss from discontinued operations per common share, basic

 

 

 

 

(1.00

)

 

 

 

 

 

(1.46

)

Net income (loss) per common share, basic

$

0.91

 

 

$

(0.56

)

 

$

1.77

 

 

$

(1.03

)

Weighted-average shares outstanding, basic

 

25,585

 

 

 

25,395

 

 

 

25,549

 

 

 

25,378

 

 

 

 

 

 

 

 

 

Net income from continuing operations per common share, diluted

$

0.89

 

 

$

0.43

 

 

$

1.75

 

 

$

0.43

 

Net loss from discontinued operations per common share, diluted

 

 

 

 

(0.99

)

 

 

 

 

 

(1.45

)

Net income (loss) per common share, diluted

$

0.90

 

 

$

(0.56

)

 

$

1.76

 

 

$

(1.02

)

Weighted-average shares outstanding, diluted

 

25,895

 

 

 

25,475

 

 

 

25,806

 

 

 

25,458

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

Six months ended December 31,

 

2021

 

2020

Cash flows from operating activities:

 

 

 

Net income (loss)

$

45,325

 

 

$

(26,013

)

Net income (loss) from discontinued operations

 

100

 

 

 

(36,959

)

Net income from continuing operations

 

45,225

 

 

 

10,946

 

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

 

 

 

Depreciation and amortization

 

14,879

 

 

 

17,059

 

Amortization of debt issue costs

 

209

 

 

 

209

 

Provision for doubtful accounts

 

921

 

 

 

(180

)

Share-based compensation

 

6,032

 

 

 

3,174

 

Deferred income taxes

 

(109

)

 

 

(694

)

Change in fair value of contingent consideration

 

 

 

 

516

 

Contingent consideration payments excess

 

 

 

 

(5,457

)

Finance lease interest

 

26

 

 

 

70

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(54,370

)

 

 

(86,683

)

Inventories

 

(95,531

)

 

 

35,124

 

Prepaid expenses and other assets

 

(11,236

)

 

 

2,256

 

Other non-current assets

 

(1,561

)

 

 

1,328

 

Accounts payable

 

25,444

 

 

 

132,074

 

Accrued expenses and other liabilities

 

(5,130

)

 

 

11,150

 

Income taxes payable

 

(177

)

 

 

(5,218

)

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

 

(75,378

)

 

 

115,674

 

Cash flows from investing activities of continuing operations:

 

 

 

Capital expenditures

 

(2,645

)

 

 

(1,454

)

Cash received for business disposal

 

3,125

 

 

 

34,356

 

Net cash provided by investing activities of continuing operations

 

480

 

 

 

32,902

 

Cash flows from financing activities of continuing operations:

 

 

 

Borrowings on revolving credit, net of expenses

 

1,115,161

 

 

 

959,848

 

Repayments on revolving credit, net of expenses

 

(1,057,376

)

 

 

(1,022,561

)

Repayments on long-term debt, net

 

(4,093

)

 

 

(4,089

)

Repayments of finance lease obligations

 

(624

)

 

 

(652

)

Contingent consideration payments

 

 

 

 

(41,393

)

Exercise of stock options

 

1,114

 

 

 

 

Taxes paid on settlement of equity awards

 

(2,634

)

 

 

(1,036

)

Common stock repurchased

 

(183

)

 

 

 

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

 

51,365

 

 

 

(109,883

)

 

 

 

 

 

 

 

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited), continued

(in thousands)

 

 

 

 

Cash flows from discontinued operations:

 

 

 

Net cash flows provided by operating activities of discontinued operations

 

 

 

 

21,704

 

Net cash flows used in investing activities of discontinued operations

 

 

 

 

(58

)

Net cash flows used in financing activities of discontinued operations

 

 

 

 

(29,494

)

Net cash flows used in discontinued operations

 

 

 

 

(7,848

)

Effect of exchange rate changes on cash and cash equivalents

 

(5,062

)

 

 

1,887

 

(Decrease) Increase in cash and cash equivalents

 

(28,595

)

 

 

32,732

 

Consolidated cash and cash equivalents at beginning of period

 

62,718

 

 

 

34,455

 

Consolidated cash and cash equivalents at end of period

 

34,123

 

 

 

67,187

 

Cash and cash equivalents of discontinued operations

 

 

 

 

 

Cash and cash equivalents of continuing operations

$

34,123

 

 

$

67,187

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

(in thousands, except percentages)

 

 

 

 

Non-GAAP Financial Information:

 

Quarter ended December 31,

 

2021

 

2020

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

 

17.6

%

 

 

13.3

%

 

 

 

 

Reconciliation of Net Income to Adjusted EBITDA:

 

 

 

Net income from continuing operations (GAAP)

$

23,152

 

 

$

11,061

 

Plus: Interest expense

 

1,493

 

 

 

1,796

 

Plus: Income taxes

 

7,257

 

 

 

4,683

 

Plus: Depreciation and amortization

 

7,229

 

 

 

8,349

 

EBITDA (non-GAAP)

 

39,131

 

 

 

25,889

 

Plus: Share-based compensation

 

3,464

 

 

 

2,006

 

Plus: Acquisition and divestiture costs(b)

 

(53

)

 

 

1,360

 

Plus: Restructuring costs

 

 

 

 

484

 

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

$

42,542

 

 

$

29,739

 

 

 

 

 

Invested Capital Calculations:

 

 

 

Equity – beginning of the quarter

$

746,094

 

 

$

671,227

 

Equity – end of the quarter

 

768,525

 

 

 

682,139

 

Plus: Share-based compensation, net

 

2,590

 

 

 

1,510

 

Plus: Acquisition and divestiture costs(b)

 

(53

)

 

 

1,360

 

Plus: Restructuring, net

 

 

 

 

366

 

Plus: Discontinued operations net (income) loss

 

(100

)

 

 

25,255

 

Average equity

 

758,528

 

 

 

690,929

 

Average funded debt (c)

 

200,708

 

 

 

198,620

 

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

$

959,236

 

 

$

889,549

 

 

 

 

 

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

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

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

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

Net Sales by Segment:

 

 

 

 

Quarter ended December 31,

 

 

 

2021

 

2020

 

% Change

Specialty Technology Solutions:

(in thousands)

 

 

Net sales, reported

$

496,920

 

$

455,248

 

9.2

%

Foreign exchange impact (a)

 

1,011

 

 

 

 

Non-GAAP net sales, constant currency

$

497,931

 

$

455,248

 

9.4

%

 

 

 

 

 

 

Modern Communications & Cloud:

 

 

 

 

 

Net sales, reported

$

367,431

 

$

355,649

 

3.3

%

Foreign exchange impact (a)

 

1,961

 

 

 

 

Non-GAAP net sales, constant currency

$

369,392

 

$

355,649

 

3.9

%

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

Net sales, reported

$

864,351

 

$

810,897

 

6.6

%

Foreign exchange impact (a)

 

2,972

 

 

 

 

Non-GAAP net sales, constant currency

$

867,323

 

$

810,897

 

7.0

%

 

 

 

 

 

 

(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, 2021 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2020.

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

 

 

Net Sales by Geography:

 

 

 

 

Quarter ended December 31,

 

 

 

2021

 

2020

 

% Change

United States and Canada:

(in thousands)

 

 

Net sales, as reported

$

773,932

 

$

720,004

 

7.5

%

 

 

 

 

 

 

International:

 

 

 

 

 

Net sales, reported

$

90,419

 

$

90,893

 

(0.5

) %

Foreign exchange impact(a)

 

2,972

 

 

 

 

Non-GAAP net sales, constant currency

$

93,391

 

$

90,893

 

2.7

%

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

Net sales, reported

$

864,351

 

$

810,897

 

6.6

%

Foreign exchange impact(a)

 

2,972

 

 

 

 

Non-GAAP net sales, constant currency

$

867,323

 

$

810,897

 

7.0

%

 

 

 

 

 

 

(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, 2021 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2020.

 

Quarter ended December 31, 2021

 

GAAP Measure

 

Intangible

amortization

expense

 

Change in fair

value of

contingent

consideration

 

Acquisition and

divestiture

costs

 

Restructuring

costs

 

Non-GAAP

measure

 

(in thousands, except per share data)

Net sales

$

864,351

 

$

 

$

 

$

 

 

$

 

$

864,351

Gross profit

 

107,925

 

 

 

 

 

 

 

 

 

 

 

107,925

Operating income

 

31,498

 

 

4,447

 

 

 

 

(53

)

 

 

 

 

35,892

Other expense, net

 

1,089

 

 

 

 

 

 

 

 

 

 

 

1,089

Pre-tax income

 

30,409

 

 

4,447

 

 

 

 

(53

)

 

 

 

 

34,803

Net income

 

23,152

 

 

3,347

 

 

 

 

(53

)

 

 

 

 

26,446

Diluted EPS

$

0.89

 

$

0.13

 

$

 

$

 

 

$

 

$

1.02

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended December 31, 2020

 

GAAP Measure

 

Intangible

amortization

expense

 

Change in fair

value of

contingent

consideration

 

Acquisition and

divestiture

costs

 

Restructuring

costs

 

Non-GAAP

measure

 

(in thousands, except per share data)

Net sales

$

810,897

 

$

 

$

 

$

 

 

$

 

$

810,897

Gross profit

 

86,043

 

 

 

 

 

 

 

 

 

 

 

86,043

Operating income

 

17,130

 

 

4,862

 

 

 

 

1,360

 

 

 

484

 

 

23,836

Other expense, net

 

1,386

 

 

 

 

 

 

 

 

 

 

 

1,386

Pre-tax income

 

15,744

 

 

4,862

 

 

 

 

1,360

 

 

 

484

 

 

22,450

Net income

 

11,061

 

 

3,682

 

 

 

 

1,360

 

 

 

366

 

 

16,469

Diluted EPS

$

0.43

 

$

0.15

 

$

 

$

0.06

 

 

$

0.01

 

$

0.65

 

 

 

 

 

 

 

 

 

 

 

 

Contacts

Steve Jones

Senior EVP, Chief Financial Officer

ScanSource, Inc.

(864) 286-4302

Mary M. Gentry

SVP, Treasurer and Investor Relations

ScanSource, Inc.

(864) 286-4892

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