SC | 00-26926 | 57-0965380 | ||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, no par value | SCSC | NASDAQ Global Select Market |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company | ☐ |
Exhibit Number |
Description | ||||
99.1 | |||||
99.2 | |||||
99.3 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ScanSource, Inc. | |||||||||||||||||||||||
Date: | August 22, 2023 | /s/ STEVE JONES | |||||||||||||||||||||
Steve Jones | |||||||||||||||||||||||
Senior Executive Vice President and Chief Financial Officer |
Contact: | ||||||||
Steve Jones | Mary M. Gentry | |||||||
Senior EVP, Chief Financial Officer | SVP, Treasurer and Investor Relations | |||||||
ScanSource, Inc. | ScanSource, Inc. | |||||||
(864) 286-4302 | (864) 286-4892 |
Fourth Quarter Summary | Fiscal Year Summary | ||||||||||||||||||||||||||||||||||
Q4 FY23 | Q4 FY22 | Change | FY23 | FY22 | Change | ||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||||
Select reported measures: |
|||||||||||||||||||||||||||||||||||
Net sales | $ | 947,149 | $ | 962,283 | -1.6% | $ | 3,787,721 | $ | 3,529,935 | 7.3% | |||||||||||||||||||||||||
Gross profit | $ | 108,659 | $ | 110,792 | -1.9% | $ | 449,239 | $ | 426,524 | 5.3% | |||||||||||||||||||||||||
Gross profit margin % | 11.47 | % | 11.51 | % | -4bp | 11.86 | % | 12.08 | % | -22bp | |||||||||||||||||||||||||
Operating income | $ | 27,289 | $ | 27,424 | -0.5% | $ | 135,886 | $ | 122,167 | 11.2% | |||||||||||||||||||||||||
GAAP net income | $ | 17,095 | $ | 19,947 | -14.3% | $ | 88,092 | $ | 88,698 | -0.7% | |||||||||||||||||||||||||
GAAP diluted EPS | $ | 0.68 | $ | 0.78 | -12.8% | $ | 3.47 | $ | 3.44 | 0.9% | |||||||||||||||||||||||||
Select Non-GAAP measures: | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 40,199 | $ | 38,672 | 3.9% | $ | 179,943 | $ | 166,723 | 7.9% | |||||||||||||||||||||||||
Adjusted EBITDA margin % | 4.24 | % | 4.02 | % | 22bp | 4.75 | % | 4.72 | % | 3bp | |||||||||||||||||||||||||
Non-GAAP net income | $ | 19,213 | $ | 23,266 | -17.4% | $ | 97,688 | $ | 102,140 | -4.4% | |||||||||||||||||||||||||
Non-GAAP diluted EPS | $ | 0.76 | $ | 0.91 | -16.5% | $ | 3.85 | $ | 3.97 | -3.0% |
FY24 Annual Outlook | ||||||||
Net sales growth, year-over-year | At least 3% | |||||||
Adjusted EBITDA (Non-GAAP) | At least $180 million | |||||||
Free cash flow | At least $150 million | |||||||
ScanSource, Inc. and Subsidiaries | |||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||
(in thousands) | |||||||||||
June 30, 2023 | June 30, 2022* | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 36,178 | $ | 37,987 | |||||||
Accounts receivable, less allowance of $15,480 at June 30, 2023
and $16,806 at June 30, 2022
|
753,236 | 729,442 | |||||||||
Inventories | 757,574 | 614,814 | |||||||||
Prepaid expenses and other current assets | 110,087 | 141,562 | |||||||||
Total current assets | 1,657,075 | 1,523,805 | |||||||||
Property and equipment, net | 37,379 | 37,477 | |||||||||
Goodwill | 216,706 | 214,435 | |||||||||
Identifiable intangible assets, net | 68,495 | 84,427 | |||||||||
Deferred income taxes | 17,764 | 15,668 | |||||||||
Other non-current assets | 70,750 | 61,616 | |||||||||
Total assets | $ | 2,068,169 | $ | 1,937,428 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 691,119 | $ | 714,177 | |||||||
Accrued expenses and other current liabilities | 78,892 | 88,455 | |||||||||
Income taxes payable | 9,875 | 34 | |||||||||
Current portion of long-term debt | 6,915 | 11,598 | |||||||||
Total current liabilities | 786,801 | 814,264 | |||||||||
Deferred income taxes | 3,816 | 3,144 | |||||||||
Long-term debt, net of current portion | 144,006 | 123,733 | |||||||||
Borrowings under revolving credit facility | 178,980 | 135,839 | |||||||||
Other long-term liabilities | 49,268 | 53,920 | |||||||||
Total liabilities | 1,162,871 | 1,130,900 | |||||||||
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, 24,844,203 and 25,187,351 shares issued and outstanding at June 30, 2023 and June 30, 2022, respectively |
58,241 | 64,297 | |||||||||
Retained earnings | 936,678 | 846,869 | |||||||||
Accumulated other comprehensive loss | (89,621) | (104,638) | |||||||||
Total shareholders’ equity | 905,298 | 806,528 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,068,169 | $ | 1,937,428 |
ScanSource, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidated Income Statements (Unaudited) | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Quarter ended June 30, | Fiscal year ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net sales | $ | 947,149 | $ | 962,283 | $ | 3,787,721 | $ | 3,529,935 | |||||||||||||||
Cost of goods sold | 838,490 | 851,491 | 3,338,482 | 3,103,411 | |||||||||||||||||||
Gross profit | 108,659 | 110,792 | 449,239 | 426,524 | |||||||||||||||||||
Selling, general and administrative expenses | 74,358 | 75,905 | 285,695 | 275,442 | |||||||||||||||||||
Depreciation expense | 2,827 | 3,023 | 10,912 | 11,062 | |||||||||||||||||||
Intangible amortization expense | 4,185 | 4,440 | 16,746 | 17,853 | |||||||||||||||||||
Operating income | 27,289 | 27,424 | 135,886 | 122,167 | |||||||||||||||||||
Interest expense | 5,564 | 1,886 | 19,786 | 6,523 | |||||||||||||||||||
Interest income | (2,085) | (1,360) | (7,414) | (4,333) | |||||||||||||||||||
Other expense, net | 348 | 684 | 1,664 | 1,354 | |||||||||||||||||||
Income before income taxes | 23,462 | 26,214 | 121,850 | 118,623 | |||||||||||||||||||
Provision for income taxes | 6,367 | 6,267 | 33,758 | 29,925 | |||||||||||||||||||
Net income from continuing operations | 17,095 | 19,947 | 88,092 | 88,698 | |||||||||||||||||||
Net income from discontinued operations | 1,717 | — | 1,717 | 100 | |||||||||||||||||||
Net income | $ | 18,812 | $ | 19,947 | $ | 89,809 | $ | 88,798 | |||||||||||||||
Per share data: | |||||||||||||||||||||||
Net income from continuing operations per common share, basic | $ | 0.69 | $ | 0.79 | $ | 3.50 | $ | 3.48 | |||||||||||||||
Net income from discontinued operations per common share, basic | 0.07 | — | 0.07 | — | |||||||||||||||||||
Net income per common share, basic | $ | 0.76 | $ | 0.79 | $ | 3.57 | $ | 3.48 | |||||||||||||||
Weighted-average shares outstanding, basic | 24,883 | 25,286 | 25,142 | 25,504 | |||||||||||||||||||
Net income from continuing operations per common share, diluted | $ | 0.68 | $ | 0.78 | $ | 3.47 | $ | 3.44 | |||||||||||||||
Net income from discontinued operations per common share, diluted | 0.07 | — | 0.07 | — | |||||||||||||||||||
Net income per common share, diluted | $ | 0.75 | $ | 0.78 | $ | 3.54 | $ | 3.45 | |||||||||||||||
Weighted-average shares outstanding, diluted | 25,139 | 25,584 | 25,362 | 25,758 |
ScanSource, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Quarter ended June 30, | Fiscal year ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 18,812 | $ | 19,947 | $ | 89,809 | $ | 88,798 | |||||||||||||||
Net income (loss) from discontinued operations | 1,717 | — | 1,717 | 100 | |||||||||||||||||||
Net income from continuing operations | 17,095 | 19,947 | 88,092 | 88,698 | |||||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 7,256 | 7,701 | 28,614 | 29,884 | |||||||||||||||||||
Amortization of debt issue costs | 96 | 104 | 577 | 417 | |||||||||||||||||||
Provision for doubtful accounts | 933 | 1,357 | 2,785 | 1,514 | |||||||||||||||||||
Share-based compensation | 2,586 | 2,872 | 11,219 | 11,663 | |||||||||||||||||||
Deferred income taxes | (2,905) | 3,742 | (1,496) | 5,737 | |||||||||||||||||||
Finance lease interest | 12 | 1 | 44 | 34 | |||||||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||||||||||
Accounts receivable | (64,020) | (98,535) | (17,368) | (165,939) | |||||||||||||||||||
Inventories | (2,057) | (27,613) | (138,313) | (145,962) | |||||||||||||||||||
Prepaid expenses and other assets | (6,526) | (12,369) | 32,653 | (27,371) | |||||||||||||||||||
Other non-current assets | (5,810) | 3,914 | (7,582) | 1,123 | |||||||||||||||||||
Accounts payable | 30,061 | 15,434 | (30,656) | 82,969 | |||||||||||||||||||
Accrued expenses and other liabilities | 2,587 | 7,876 | (14,195) | (4,869) | |||||||||||||||||||
Income taxes payable | 5,431 | (3,115) | 9,857 | (2,252) | |||||||||||||||||||
Net cash used in operating activities | (15,261) | (78,684) | (35,769) | (124,354) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (3,431) | (3,523) | (9,979) | (6,849) | |||||||||||||||||||
Cash received for business disposal | 1,717 | — | 1,717 | 3,125 | |||||||||||||||||||
Net cash used in investing activities | (1,714) | (3,523) | (8,262) | (3,724) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Borrowings on revolving credit, net of expenses | 627,257 | 569,139 | 2,499,166 | 2,166,409 | |||||||||||||||||||
Repayments on revolving credit, net of expenses | (607,470) | (477,593) | (2,456,025) | (2,030,569) | |||||||||||||||||||
Borrowings (repayments) on long-term debt, net | (938) | (1,875) | 15,590 | (7,843) | |||||||||||||||||||
Repayments on finance lease obligation | 23 | (306) | (589) | (1,238) | |||||||||||||||||||
Debt issuance costs | — | — | (1,407) | — | |||||||||||||||||||
Exercise of stock options | 57 | 712 | 910 | 2,304 | |||||||||||||||||||
Taxes paid on settlement of equity awards | (30) | (26) | (2,463) | (2,754) | |||||||||||||||||||
Common stock repurchased | (4,933) | (9,676) | (15,651) | (18,203) | |||||||||||||||||||
Net cash provided by financing activities | 13,966 | 80,375 | 39,531 | 108,106 | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,813 | (3,721) | 2,691 | (4,759) | |||||||||||||||||||
Decrease in cash and cash equivalents | (1,196) | (5,553) | (1,809) | (24,731) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 37,374 | 43,539 | 37,987 | 62,718 | |||||||||||||||||||
Cash and cash equivalents at period end | $ | 36,178 | $ | 37,986 | $ | 36,178 | $ | 37,987 |
ScanSource, Inc. and Subsidiaries | |||||||||||||||||||||||
Supplementary Information (Unaudited) | |||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
Non-GAAP Financial Information: | |||||||||||||||||||||||
Quarter ended June 30, | Fiscal year ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(a) |
12.9 | % | 14.9 | % | 14.6 | % | 17.0 | % | |||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA: | |||||||||||||||||||||||
Net income (GAAP) | $ | 17,095 | $ | 19,947 | $ | 88,092 | $ | 88,698 | |||||||||||||||
Plus: Interest expense | 5,564 | 1,886 | 19,786 | 6,523 | |||||||||||||||||||
Plus: Income taxes | 6,367 | 6,267 | 33,758 | 29,925 | |||||||||||||||||||
Plus: Depreciation and amortization | 7,255 | 7,700 | 28,614 | 29,884 | |||||||||||||||||||
EBITDA (non-GAAP) | 36,281 | 35,800 | 170,250 | 155,030 | |||||||||||||||||||
Plus: Share-based compensation | 2,586 | 2,872 | 11,219 | 11,663 | |||||||||||||||||||
Plus: Tax recovery | (128) | — | (2,986) | — | |||||||||||||||||||
Plus: Cyberattack restoration costs | 1,460 | — | 1,460 | — | |||||||||||||||||||
Plus: Acquisition and divestiture costs | — | — | — | 30 | |||||||||||||||||||
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) | $ | 40,199 | $ | 38,672 | $ | 179,943 | $ | 166,723 | |||||||||||||||
Invested Capital Calculations: | |||||||||||||||||||||||
Equity – beginning of the quarter | $ | 878,895 | $ | 806,654 | $ | 806,528 | $ | 731,191 | |||||||||||||||
Equity – end of the quarter | 905,298 | 806,528 | 905,298 | 806,528 | |||||||||||||||||||
Plus: Share-based compensation, net | 1,921 | 2,134 | 8,326 | 8,709 | |||||||||||||||||||
Plus: Cyberattack restoration costs | 1,092 | — | 1,092 | — | |||||||||||||||||||
Plus: Divestiture costs | — | — | — | 30 | |||||||||||||||||||
Plus: Discontinued operations net income | (1,717) | — | (1,717) | (100) | |||||||||||||||||||
Plus: Tax recovery, net | (2,100) | — | (3,985) | — | |||||||||||||||||||
Average equity | 891,695 | 807,658 | 857,771 | 773,179 | |||||||||||||||||||
Average funded debt (b) |
361,792 | 233,445 | 372,235 | 209,114 | |||||||||||||||||||
Invested capital (denominator for Adjusted ROIC) (non-GAAP) | $ | 1,253,487 | $ | 1,041,103 | $ | 1,230,006 | $ | 982,293 | |||||||||||||||
(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 91 days in the current and prior-year quarter. | |||||||||||||||||||||||
(b) Average funded debt 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 June 30, | |||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||
Specialty Technology Solutions: | (in thousands) | ||||||||||||||||
Net sales, reported | $ | 561,501 | $ | 580,619 | (3.3) | % | |||||||||||
Foreign exchange impact (a) |
76 | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 561,577 | $ | 580,619 | (3.3) | % | |||||||||||
Modern Communications & Cloud: | |||||||||||||||||
Net sales, reported | $ | 385,648 | $ | 381,664 | 1.0 | % | |||||||||||
Foreign exchange impact (a) |
139 | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 385,787 | $ | 381,664 | 1.1 | % | |||||||||||
Consolidated: | |||||||||||||||||
Net sales, reported | $ | 947,149 | $ | 962,283 | (1.6) | % | |||||||||||
Foreign exchange impact (a) |
215 | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 947,364 | $ | 962,283 | (1.6) | % | |||||||||||
(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 June 30, 2023 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2022. |
ScanSource, Inc. and Subsidiaries | |||||||||||||||||
Supplementary Information (Unaudited) | |||||||||||||||||
Net Sales by Segment: | |||||||||||||||||
Fiscal year ended June 30, | |||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||
Specialty Technology Solutions | (in thousands) | ||||||||||||||||
Net sales, reported | $ | 2,331,030 | $ | 2,082,321 | 11.9 | % | |||||||||||
Foreign exchange impact (a) |
(923) | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 2,330,107 | $ | 2,082,321 | 11.9 | % | |||||||||||
Modern Communications & Cloud | |||||||||||||||||
Net sales, reported | $ | 1,456,691 | $ | 1,447,614 | 0.6 | % | |||||||||||
Foreign exchange impact (a) |
(3,492) | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 1,453,199 | $ | 1,447,614 | 0.4 | % | |||||||||||
Consolidated: | |||||||||||||||||
Net sales, reported | $ | 3,787,721 | $ | 3,529,935 | 7.3 | % | |||||||||||
Foreign exchange impact (a) |
(4,415) | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 3,783,306 | $ | 3,529,935 | 7.2 | % | |||||||||||
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the fiscal year ended June 30, 2023 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2022. |
ScanSource, Inc. and Subsidiaries | |||||||||||||||||
Supplementary Information (Unaudited) | |||||||||||||||||
Net Sales by Geography: | |||||||||||||||||
Quarter ended June 30, | |||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||
United States and Canada: | (in thousands) | ||||||||||||||||
Net sales, as reported | $ | 854,521 | $ | 865,736 | (1.3) | % | |||||||||||
International: | |||||||||||||||||
Net sales, reported | $ | 92,628 | $ | 96,547 | (4.1) | % | |||||||||||
Foreign exchange impact(a) |
215 | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 92,843 | $ | 96,547 | (3.8) | % | |||||||||||
Consolidated: | |||||||||||||||||
Net sales, reported | $ | 947,149 | $ | 962,283 | (1.6) | % | |||||||||||
Foreign exchange impact(a) |
215 | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 947,364 | $ | 962,283 | (1.6) | % | |||||||||||
(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 June 30, 2023 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2022. |
ScanSource, Inc. and Subsidiaries | |||||||||||||||||
Supplementary Information (Unaudited) | |||||||||||||||||
Net Sales by Geography: | |||||||||||||||||
Fiscal year ended June 30, | |||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||
United States and Canada: | (in thousands) | ||||||||||||||||
Net sales, as reported | $ | 3,432,074 | $ | 3,173,694 | 8.1 | % | |||||||||||
International: | |||||||||||||||||
Net sales, reported | $ | 355,647 | $ | 356,241 | (0.2) | % | |||||||||||
Foreign exchange impact(a) |
(4,415) | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 351,232 | $ | 356,241 | (1.4) | % | |||||||||||
Consolidated: | |||||||||||||||||
Net sales, reported | $ | 3,787,721 | $ | 3,529,935 | 7.3 | % | |||||||||||
Foreign exchange impact(a) |
(4,415) | — | |||||||||||||||
Non-GAAP net sales, constant currency | $ | 3,783,306 | $ | 3,529,935 | 7.2 | % | |||||||||||
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the fiscal year ended June 30, 2023 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2022. |
ScanSource, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
Supplementary Information (Unaudited) | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Non-GAAP Financial Information: | ||||||||||||||||||||||||||||||||
Quarter ended June 30, 2023 | ||||||||||||||||||||||||||||||||
GAAP Measure | Intangible amortization expense | Tax recovery | Cyberattack restoration costs | Non-GAAP measure | ||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
SG&A expenses | $74,358 | — | $128 | $(1,460) | $73,026 | |||||||||||||||||||||||||||
Operating income | 27,289 | 4,185 | (128) | 1,460 | 32,806 | |||||||||||||||||||||||||||
Operating income margin | 2.88% | 0.44% | (0.01)% | 0.15% | 3.46% | |||||||||||||||||||||||||||
Net income | 17,095 | 3,126 | (2,100) | 1,092 | 19,213 | |||||||||||||||||||||||||||
Diluted EPS | $0.68 | $0.12 | $(0.08) | $0.04 | $0.76 | |||||||||||||||||||||||||||
Quarter ended June 30, 2022 | ||||||||||||||||||||||||||||||||
GAAP Measure | Intangible amortization expense | Tax recovery | Cyberattack restoration costs | Non-GAAP measure | ||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
SG&A expense | $75,905 | — | — | — | $75,905 | |||||||||||||||||||||||||||
Operating income | 27,424 | 4,440 | — | — | 31,864 | |||||||||||||||||||||||||||
Operating income margin | 2.85% | 0.46% | —% | —% | 3.31% | |||||||||||||||||||||||||||
Net income | 19,947 | 3,319 | — | — | 23,266 | |||||||||||||||||||||||||||
Diluted EPS | $0.78 | $0.13 | — | — | $0.91 |
ScanSource, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
Supplementary Information (Unaudited) | ||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Non-GAAP Financial Information: | ||||||||||||||||||||||||||||||||
Year ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Reported GAAP measure | Intangible amortization expense | Acquisition, divestiture and restructuring costs | Tax recovery, net | Cyberattack restoration costs | Non-GAAP measure | |||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
SG&A expenses | $285,695 | — | — | $2,986 | $(1,460) | $287,221 | ||||||||||||||||||||||||||
Operating income | 135,886 | 16,746 | — | (2,986) | 1,460 | 151,106 | ||||||||||||||||||||||||||
Operating income margin | 3.59% | 0.44% | —% | (0.08)% | 0.04% | 3.99% | ||||||||||||||||||||||||||
Net income | 88,092 | 12,489 | — | (3,985) | 1,092 | 97,688 | ||||||||||||||||||||||||||
Diluted EPS | $3.47 | $0.49 | — | $(0.16) | $0.04 | $3.85 | ||||||||||||||||||||||||||
Year ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Reported GAAP measure | Intangible amortization expense | Acquisition, divestiture and restructuring costs(a) | Tax recovery, net | Cyberattack restoration costs | Non-GAAP measure | |||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
SG&A expenses | $275,442 | — | $(30) | — | — | $275,412 | ||||||||||||||||||||||||||
Operating income | 122,167 | 17,853 | 30 | — | — | 140,050 | ||||||||||||||||||||||||||
Operating income margin | 3.46% | 0.51% | —% | —% | —% | 3.97% | ||||||||||||||||||||||||||
Net income | 88,698 | 13,412 | 30 | — | — | 102,140 | ||||||||||||||||||||||||||
Diluted EPS | $3.44 | $0.52 | — | — | — | $3.97 | ||||||||||||||||||||||||||
(a) Divestiture costs totaled less than $0.1 million for the fiscal year ended June 30, 2022 and are generally nondeductible for tax purposes. |
FY 24 Outlook | |||||
GAAP operating income | At least $134 million | ||||
Intangible amortization | $17 million | ||||
Depreciation expense | $12 million | ||||
Share-based compensation expense | $12 million | ||||
Interest income and income (expense), net | $5 million | ||||
Adjusted EBITDA (non-GAAP) | At least $180 million | ||||
GAAP operating cash flow | At least $160 million | ||||
Less: Capital expenditures | $10 million | ||||
Free cash flow | At least $150 million | ||||