スキャンソースの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2024

ScanSource, Inc.

(Exact name of registrant as specified in its charter)

00-26926

57-0965380

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

6 Logue Court, Greenville, SC 29615

(Address of principal executive offices, including zip code)

864-288-2432

(Registrant’s telephone number, including area code)

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, no par value

SCSC

NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On February 6, 2024, ScanSource, Inc. (the "Company") issued a press release announcing its financial results for its second quarter ended December 31, 2023. A copy of the press release and accompanying Earnings Infographic are attached as Exhibits 99.1 and 99.2 hereto and incorporated herein by reference and also made available through the Company’s website at www.scansource.com. An updated investor presentation will be made available on the Company's website within approximately two weeks.

The information in Item 2.02 of this Report, including the exhibits, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any other filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 – Press release issued by ScanSource, Inc. on February 6, 2024. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.2 – Earnings Infographic for the financial results conference call held on February 6, 2024. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Company’s annual and quarterly reports filed with the Securities and Exchange Commission.


Exhibit Number			Description

99.1			Press release
99.2			Earnings Infographic

104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ScanSource, Inc.

Date:

February 6, 2024

/s/ STEVE JONES

Steve Jones

Senior Executive Vice President and Chief Financial Officer

EX-99.1 2 scscexhibit99112312023.htm EX-99.1 Document

Exhibit 99.1

FOR IMMEDIATE RELEASE


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

SCANSOURCE REPORTS SECOND QUARTER RESULTS

Achieves Strong Q2 Cash Flow and Intelisys Growth

GREENVILLE, SC -- February 6, 2024 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the second quarter ended December 31, 2023.


	Second Quarter Summary
	Q2 FY24			Q2 FY23			Change
	(in thousands, except per share data)
Select reported measures:
Net sales	$	884,792		$	1,011,241		-12.5%
Gross profit	$	100,748		$	115,334		-12.6%
Gross profit margin %	11.39		%	11.41		%	-2bp
Operating income	$	26,826		$	39,432		-32.0%
GAAP net income	$	32,726		$	25,734		27.2%
GAAP diluted EPS	$	1.29		$	1.01		27.7%
Operating cash flow	$	63,224		$	(26,885)		n/m
Select Non-GAAP measures:
Adjusted EBITDA	$	38,459		$	48,815		-21.2%
Adjusted EBITDA margin %	4.35		%	4.83		%	-48bp
Non-GAAP net income	$	21,587		$	26,941		-19.9%
Non-GAAP diluted EPS	$	0.85		$	1.06		-19.8%
Free cash flow	$	60,675		$	(29,389)		n/m
n/m - not meaningful

“Strong cash flow and Intelisys recurring revenue growth are the highlights for our second quarter results,” said Mike Baur, Chair and CEO, ScanSource, Inc.“Our teams are navigating well through the challenging industry demand cycles.”

Quarterly Results

Net sales for the second quarter of fiscal year 2024 totaled $884.8 million, down 12.5% year-over-year. Specialty Technology Solutions net sales for the second quarter decreased 17.0% year-over-year to $520.7 million. Soft demand in barcode, mobility and point of sale was partially offset by growth in networking. Modern Communications & Cloud net sales for the second quarter decreased 5.1% year-over-year to $364.1 million due to lower sales volumes in communications hardware, partially offset by growth in Cisco products. Intelisys net billings increased to approximately $2.64 billion annualized, and Intelisys net sales for the second quarter increased 7.5%.

Gross profit for the second quarter of fiscal year 2024 decreased 12.6% year-over-year to $100.7 million. Gross profit margin for the second quarter was 11.39%, compared to 11.41% for the prior-year quarter.

For the second quarter of fiscal year 2024, operating income was $26.8 million compared to $39.4 million in the prior-year quarter. Second quarter fiscal year 2024 non-GAAP operating income decreased to $30.6 million down from $40.7 million for the prior-year quarter.

On a GAAP basis, net income for the second quarter of fiscal year 2024 totaled $32.7 million, or $1.29 per diluted share, compared to net income of $25.7 million, or $1.01 per diluted share, for the prior-year quarter. Second quarter fiscal year 2024 non-GAAP net income totaled $21.6 million, or $0.85 per diluted share, down from $26.9 million, or $1.06 per diluted share, for the prior-year quarter. Interest expense for the quarter decreased to $3.4 million, down from $5.1 million for the prior-year quarter, reflecting lower borrowings.

Adjusted EBITDA for the second quarter of fiscal year 2024 decreased 21.2% to $38.5 million, or 4.35% of net sales, compared to $48.8 million, or 4.83% of net sales, for the prior-year quarter.

ScanSource generated $156.8 million of operating cash flow and $151.9 million of free cash flow in the first six months of fiscal year 2024.

Updated Annual Financial Outlook for Fiscal Year 2024

ScanSource updates its expectations for net sales and adjusted EBITDA for the full fiscal year ending June 30, 2024 and replaces previously provided guidance:

FY24 Annual Outlook

Prior FY24 Annual Outlook

Net sales

At least $3.5 billion

At least $3.8 billion

Adjusted EBITDA (Non-GAAP)

At least $155 million

At least $170 million

Free cash flow

At least $200 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash shared-based compensation expense. 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 8:45 a.m. ET today, an Earnings Infographic, as a supplement to this press release and the earnings conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, February 6, 2024, at 10:30 a.m. ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains “forward-looking” statements, including ScanSource's FY24 outlook, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, the failure to manage and implement ScanSource's organic growth strategy, credit risks involving ScanSource's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting ScanSource's international operations, economic weakness and inflation, risk to the business from a cyberattack, a failure of IT systems, failure to hire and retain quality employees, loss of ScanSource's major customers, relationships with key suppliers and customers or a termination or a modification of the terms under which it operates with these key suppliers, changes in ScanSource's operating strategy, and other factors set forth in the "Risk Factors" contained in ScanSource's annual report on Form 10-K for the year ended June 30, 2023. Except as may be required by law, ScanSource expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or 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"), ScanSource also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain on sale of business, restructuring costs and other non-GAAP adjustments.

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

Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, ScanSource discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP operating income margin, and non-GAAP diluted earnings per share (non-GAAP diluted EPS). Non-GAAP results exclude amortization of intangible assets related to acquisitions, acquisition and divestiture costs, gain on sale of business, restructuring costs, and other non-GAAP adjustments. These year-over-year metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding ScanSource'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, gain on sale of business, restructuring costs, cyberattack restoration costs, tax recovery, and non-cash share-based compensation expense. Since Adjusted EBITDA excludes some non-cash costs of investing in ScanSource’s business and people, management believes that Adjusted EBITDA shows the profitability from the business operations more clearly. The presentation for Adjusted EBITDA for all periods presented has been recast to reflect this change to enhance comparability between periods. The Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.

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

Free cash flow: ScanSource presents free cash flow as it believes this measure provides more information regarding liquidity and capital resources. Free cash flow is defined as cash flows from operating activities less capital expenditures.

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

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for customers across hardware, software as a service ("SaaS"), connectivity and cloud. ScanSource enables customers to deliver solutions for their end users to address changing 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 mobility and barcode, point-of-sale (POS), payments, networking, 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 2023 Best Places to Work in South Carolina and on FORTUNE magazine’s 2024 List of World’s Most Admired Companies. ScanSource ranks #817 on the Fortune 1000. For more information, visit www.scansource.com.

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	December 31, 2023		June 30, 2023*
Assets
Current assets:
Cash and cash equivalents	$	44,987	$	36,178
Accounts receivable, less allowance of $19,243 at December 31, 2023 and $15,480 at June 30, 2023	662,799		753,236
Inventories	575,137		757,574
Prepaid expenses and other current assets	122,272		110,087
Total current assets	1,405,195		1,657,075
Property and equipment, net	36,546		37,379
Goodwill	208,214		216,706
Identifiable intangible assets, net	45,313		68,495
Deferred income taxes	19,478		17,764
Other non-current assets	66,059		70,750

Total assets	$	1,780,805	$	2,068,169
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	540,642	$	691,119
Accrued expenses and other current liabilities	58,460		78,892

Income taxes payable	3,653		9,875

Current portion of long-term debt	7,857		6,915

Total current liabilities	610,612		786,801
Deferred income taxes	—		3,816
Long-term debt, net of current portion	139,899		144,006
Borrowings under revolving credit facility	20,878		178,980

Other long-term liabilities	55,815		49,268
Total liabilities	827,204		1,162,871
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, 25,154,469 and 24,844,203 shares issued and outstanding at December 31, 2023 and June 30, 2023, respectively	63,983		58,241
Retained earnings	984,836		936,678
Accumulated other comprehensive loss	(95,218)		(89,621)
Total shareholders’ equity	953,601		905,298
Total liabilities and shareholders’ equity	$	1,780,805	$	2,068,169

*Derived from audited financial statements.

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)

	Quarter ended December 31,				Six months ended December 31,
	2023		2022		2023		2022
Net sales	$	884,792	$	1,011,241	$	1,761,098	$	1,955,054
Cost of goods sold	784,044		895,907		1,553,842		1,726,236
Gross profit	100,748		115,334		207,256		228,818
Selling, general and administrative expenses	66,921		69,074		142,356		140,667
Depreciation expense	2,964		2,678		5,759		5,441
Intangible amortization expense	4,037		4,150		8,230		8,391



Operating income	26,826		39,432		50,911		74,319
Interest expense	3,359		5,060		8,945		8,507
Interest income	(2,119)		(2,027)		(3,444)		(3,618)
Gain on sale of business	(14,533)		—		(14,533)		—
Other expense, net	73		207		750		955
Income before income taxes	40,046		36,192		59,193		68,475
Provision for income taxes	7,320		10,458		11,035		18,699


Net income	$	32,726	$	25,734	$	48,158	$	49,776

Per share data:


Net income per common share, basic	$	1.31	$	1.02	$	1.93	$	1.97
Weighted-average shares outstanding, basic	25,035		25,287		24,961		25,244



Net income per common share, diluted	$	1.29	$	1.01	$	1.91	$	1.96
Weighted-average shares outstanding, diluted	25,334		25,502		25,235		25,454

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
	Six months ended December 31,
	2023		2022
Cash flows from operating activities:
Net income	$	48,158	$	49,776


Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gain on sale of business	(14,533)		—
Depreciation and amortization	14,475		14,285
Amortization of debt issue costs	193		385
Provision for doubtful accounts	4,472		33
Share-based compensation	5,340		5,679

Deferred income taxes	(1,703)		932


Finance lease interest	46		24
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	75,579		(49,541)
Inventories	182,168		(146,826)
Prepaid expenses and other assets	(11,576)		30,487
Other non-current assets	3,208		(7,168)
Accounts payable	(135,138)		33,820
Accrued expenses and other liabilities	(7,678)		(13,268)
Income taxes payable	(6,254)		6,036
Net cash provided by (used in) operating activities	156,757		(75,346)
Cash flows from investing activities:
Capital expenditures	(4,865)		(4,262)

Proceeds from sale of business, net of cash transferred	17,978		—

Net cash provided by (used in) investing activities	13,113		(4,262)
Cash flows from financing activities:

Borrowings on revolving credit, net of expenses	1,134,629		1,232,058
Repayments on revolving credit, net of expenses	(1,292,729)		(1,137,897)
Repayments on long-term debt, net	(3,165)		(1,407)
Borrowings (repayments) on finance lease obligation	(442)		17,465
Debt issuance costs	—		(492)

Exercise of stock options	4,309		634
Taxes paid on settlement of equity awards	(2,657)		(2,332)
Common stock repurchased	(1,251)		—

Net cash (used in) provided by financing activities	(161,306)		108,029













Effect of exchange rate changes on cash and cash equivalents	245		37
Increase in cash and cash equivalents	8,809		28,458
Cash and cash equivalents at beginning of period	36,178		37,987
Cash and cash equivalents at period end	44,987		$	66,445

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)

Non-GAAP Financial Information:
	Quarter ended December 31,
	2023			2022
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(a)	13.2		%	15.6		%

Reconciliation of Net Income to Adjusted EBITDA:
Net income (GAAP)	$	32,726		$	25,734
Plus: Interest expense	3,359			5,060
Plus: Income taxes	7,320			10,458
Plus: Depreciation and amortization	7,258			7,057
EBITDA (non-GAAP)	50,663			48,309
Plus: Tax recovery	(1,386)			(2,858)
Plus: Share-based compensation	2,571			3,364
Plus: Acquisition and divestiture costs	703			—
Plus: Cyberattack restoration costs	441			—

Plus: Gain on sale of business	(14,533)			—
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)	$	38,459		$	48,815

Invested Capital Calculations:
Equity – beginning of the quarter	$	915,253		$	827,004
Equity – end of the quarter	953,601			862,386

Plus: Share-based compensation, net	1,919			2,496
Plus: Cyberattack restoration costs, net	329			—
Plus: Divestiture costs	703			—

Plus: Tax recovery, net	(640)			(1,886)
Plus: Gain on sale of business	(14,533)			—
Average equity	928,316			845,000
Average funded debt (b)	227,688			392,853
Invested capital (denominator for Adjusted ROIC) (non-GAAP)	$	1,156,004		$	1,237,853

(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) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.


	Quarter ended December 31,				Six months ended December 31,
	2023		2022		2023		2022
GAAP operating cash flow	$	63,224	$	(26,885)	$	156,757	$	(75,346)
Less: Capital Expenditures	(2,549)		(2,504)		(4,865)		(4,262)
Free cash flow (non-GAAP)	$	60,675	$	(29,389)	$	151,892	$	(79,608)

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)

Net Sales by Segment:
	Quarter ended December 31,
	2023		2022		% Change
Specialty Technology Solutions:	(in thousands)


Net sales, reported	$	520,651	627,548		(17.0)	%
Foreign exchange impact (a)	(886)		—

Non-GAAP net sales	$	519,765	$	627,548	(17.2)	%

Modern Communications & Cloud:


Net sales, reported	$	364,141	$	383,693	(5.1)	%
Foreign exchange impact (a)	(4,323)		—
Less: Divestitures	$	(1,628)	$	(2,170)
Non-GAAP net sales	$	358,190	$	381,523	(6.1)	%

Consolidated:


Net sales, reported	$	884,792	$	1,011,241	(12.5)	%
Foreign exchange impact (a)	(5,209)		—
Less: Divestitures	$	(1,628)	$	(2,170)
Non-GAAP net sales	$	877,955	$	1,009,071	(13.0)	%

(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, 2023 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2022.

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)

Net Sales by Geography:
	Quarter ended December 31,
	2023		2022		% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	795,382	$	909,221	(12.5)	%



International:


Net sales, reported	$	89,410	$	102,020	(12.4)	%
Foreign exchange impact(a)	(5,209)		—
Less: Divestitures	(1,628)		(2,170)
Non-GAAP net sales	$	82,573	$	99,850	(17.3)	%

Consolidated:


Net sales, reported	$	884,792	$	1,011,241	(12.5)	%
Foreign exchange impact(a)	(5,209)		—
Less: Divestitures	(1,628)		(2,170)
Non-GAAP net sales	$	877,955	$	1,009,071	(13.0)	%

(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, 2023 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2022.

SCANSOURCE REPORTS SECOND QUARTER RESULTS


ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)

Non-GAAP Financial Information:

	Quarter ended December 31, 2023
		GAAP Measure	Intangible amortization expense	Divestiture costs	Tax recovery	Cyberattack restoration costs	Gain on sale of business (a)	Non-GAAP measure
	(in thousands, except per share data)


SG&A expenses		$66,921	—	$(703)	$1,386	$(441)	—	$67,163
Operating income		26,826	4,037	703	(1,386)	441	—	30,621


Pre-tax income		40,046	4,037	703	(1,386)	441	(14,533)	29,308
Net income		32,726	3,002	703	(640)	329	(14,533)	21,587
Diluted EPS		$1.29	$0.12	$0.03	$(0.03)	$0.01	$(0.57)	$0.85

	Quarter ended December 31, 2022
		GAAP Measure	Intangible amortization expense	Divestiture costs	Tax recovery	Cyberattack restoration costs	Gain on sale of business (a)	Non-GAAP measure
	(in thousands, except per share data)


SG&A expense		$69,074	—	—	$2,858	—	—	$71,932
Operating income		39,432	4,150	—	(2,858)	—	—	40,724


Pre-tax income		36,192	4,150	—	(2,858)	—	—	37,484
Net income		25,734	3,093	—	(1,886)	—	—	26,941
Diluted EPS		$1.01	$0.12	—	$(0.07)	—	—	$1.06

(a) Reflects gain on the sale of the UK-based intY business. This transaction resulted in a capital loss for tax purposes. ScanSource did not record a tax provision on the capital loss since there were no offsetting capital gains.

SCANSOURCE REPORTS SECOND QUARTER RESULTS

Annual Financial Outlook for Fiscal Year 2024:



			FY 24 Outlook
GAAP operating income			At least $111 million
Intangible amortization			$17 million
Depreciation expense			$12 million
Share-based compensation expense			$11 million
Interest income and income (expense), net			$4 million
Adjusted EBITDA (non-GAAP)			At least $155 million




GAAP operating cash flow			At least $210 million
Less: Capital expenditures			$10 million
Free cash flow (non-GAAP)			At least $200 million

EX-99.2 3 scansourceearningsinfogr.htm EX-99.2 scansourceearningsinfogr

Fiscal Second Quarter 2024 Earnings Strong cash flow and Intelisys recurring revenue growth are the highlights for our second quarter results. Our teams are navigating well through the challenging industry demand cycles.” Mike Baur Chair and CEO, ScanSource, Inc. Key Highlights Diverse Portfolio of Technologies Reflect Mixed Demand Focus on Working Capital Efficiency Improvements Intelisys Recurring Revenue Opportunity is Compelling Net Sales -13% Y/Y $885M Achieved Strong Cash Flow in Q2 and YTD © ScanSource 2024 Consolidated Specialty Technology Solutions Segment Gross Profit -13% Y/Y $101M, 11.4% margin Modern Communications & Cloud Segment STS, Net Sales -17% Y/Y $521M MC&C, Net Sales -5% Y/Y $364M STS, Gross Profit -17% Y/Y $47M, 9.1% margin MC&C, Gross Profit -9% Y/Y $54M, 14.7% margin

* Non‐GAAP measure; adjusted ROIC represents return on invested capital ** Accelerate organic growth with strategic acquisitions For further financial data, non‐GAAP financial disclosures and cautionary language regarding forward‐looking statements, please refer to the following pages and ScanSource’s second quarter fiscal year 2024 news release issued on February 6, 2024, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. Second Quarter Operating Metrics Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2024 Annual Outlook updated February 6, 2024 $1.29 per share GAAP Diluted EPS +28% Y/Y $63M QTR Operating Cash Flow $61M QTR Free Cash Flow* 13.2% Adjusted ROIC* $1.3M in share repurchases 0.8x Net Debt to TTM Adjusted EBITDA © ScanSource 2024 2 $0.85 per share Non-GAAP Diluted EPS* -20% Y/Y Net Sales At least $3.5 billion Adjusted EBITDA At least $155 million Free Cash Flow At least $200 million Recurring Revenue as % of Gross Profits Adjusted ROIC Adjusted EBITDA Margin Net Sales Growth per year Building to 30%+** Mid Teens4.5%-5%5%-7.5% $38.5M, -21%Y/Y Adjusted EBITDA* 4.35% Adjusted EBITDA Margin* Focus on Working Capital Efficiency Improvements

Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY24 outlook, mid-term goals, growth opportunities and our operating strategies that involve plans, strategies, economic performance and trends, projections, expectations, costs or beliefs about future events and other statements that are not descriptions of historical facts. Forward-looking information is inherently subject to risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including but not limited to, the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation, the failure to manage and implement our organic growth strategy, credit risks involving our larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting our international operations, economic weakness and inflation, risk to our business from a cyberattack, a failure of our IT systems, failure to hire and retain quality employees, loss of our major customers, relationships with our key suppliers and customers or a termination or a modification of the terms under which we operate with these key suppliers and customers, changes in our operating strategy, and other factors set forth in the “Risk Factors” contained in our annual report on Form 10-K for the year ended June 30, 2023, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission. Although ScanSource believes the expectations in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement. ScanSource disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. 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 measures, including non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non-GAAP diluted EPS, non-GAAP SG&A expenses, adjusted EBITDA, adjusted EBITDA margin, net debt, adjusted ROIC, free cash flow and net sales in constant currency excluding acquisitions and divestitures (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 3

Consolidated, 5-Quarter Financial Summary ($ in thousands, except per share data) Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q/Q Y/Y Select reported GAAP measures: Net sales $ 884,792 $ 876,305 $ 947,149 $ 885,519 $ 1,011,241 1% (13)% Gross profit $ 100,748 $ 106,508 $ 108,659 $ 111,762 $ 115,334 (5)% (13)% Gross profit margin % 11.4 % 12.2 % 11.5 % 12.6 % 11.4 % (77) bp (2) bp SG&A expenses $ 66,921 $ 75,436 $ 74,358 $ 70,669 $ 69,074 (11)% (3)% Operating income $ 26,826 $ 24,084 $ 27,289 $ 34,279 $ 39,432 11% (32)% Operating income margin % 3.03 % 2.75 % 2.88 % 3.87 % 3.90 % 28 bp (87) bp Net income $ 32,726 $ 15,432 $ 17,095 $ 21,221 $ 25,734 112% 27% Diluted EPS $ 1.29 $ 0.61 $ 0.68 $ 0.83 $ 1.01 111% 28% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 30,621 $ 28,478 $ 32,806 $ 38,449 $ 40,724 8% (25)% Non-GAAP operating income margin % 3.46 % 3.25 % 3.46 % 4.34 % 4.03 % 21 bp (57) bp Non-GAAP net income $ 21,587 $ 18,728 $ 19,213 $ 24,330 $ 26,941 15% (20)% Non-GAAP diluted EPS $ 0.85 $ 0.74 $ 0.76 $ 0.96 $ 1.06 15% (20)% Adjusted EBITDA $ 38,459 $ 34,919 $ 40,199 $ 45,656 $ 48,815 10% (21)% Adjusted EBITDA margin % 4.35 % 3.98 % 4.24 % 5.16 % 4.83 % 36 bp (48) bp Adjusted ROIC 13.2 % 11.1 % 12.9 % 14.6 % 15.6 % 210 bp (240) bp Operating cash flow (QTR) $ 63,224 $ 93,533 $ (15,261) $ 54,837 $ (26,885) Less: Capital expenditures $ (2,549) $ (2,315) $ (3,431) $ (2,286) $ (2,504) Free cash flow (QTR) (Non-GAAP) $ 60,675 $ 91,218 $ (18,692) $ 52,551 $ (29,389) Free cash flow (TTM) (Non-GAAP) $ 185,752 $ 95,688 $ (44,673) $ (108,189) $ (131,715) (a) See pages 11 through 12 for the calculation of non-GAAP measures and reconciliations to GAAP measures. ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 February 6, 2024

Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q/Q Y/Y Net sales $ 520,651 $ 509,570 $ 561,501 $ 565,652 $ 627,548 2% (17)% Gross profit $ 47,133 $ 49,183 $ 51,440 $ 57,664 $ 56,732 (4)% (17)% Gross profit margin % 9.1 % 9.7 % 9.2 % 10.2 % 9.0 % (60) bp 1 bp GAAP operating income $ 13,368 $ 11,872 $ 14,343 $ 19,811 $ 19,682 13% (32)% GAAP operating income % 2.57 % 2.33 % 2.55 % 3.50 % 3.14 % 24 bp (57) bp Add: Intangible amortization expense $ 1,261 $ 1,261 $ 1,261 $ 1,266 $ 1,266 Non-GAAP operating income $ 14,629 $ 13,133 $ 15,604 $ 21,077 $ 20,948 11% (30)% Non-GAAP operating income % 2.81 % 2.58 % 2.78 % 3.73 % 3.34 % 23 bp (53) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 13,368 $ 11,872 $ 14,343 $ 19,811 $ 19,682 13% (32)% Plus: Depreciation expense 2,144 1,931 1,954 1,862 1,873 Intangible amortization expense 1,261 1,261 1,261 1,266 1,266 Interest income 709 164 776 354 194 Other income/(expense), net 135 (132) (40) (54) 71 EBITDA 17,617 15,096 18,294 23,239 23,086 17% (24)% Adjustments: Share-based compensation expense 1,657 1,512 1,586 1,867 2,203 10% (25)% Adjusted EBITDA (non-GAAP) $ 19,274 $ 16,608 $ 19,880 $ 25,106 $ 25,289 16% (24)% Adjusted EBITDA (non-GAAP) % 3.70 % 3.26 % 3.54 % 4.44 % 4.03 % 44 bp (33) bp ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 February 6, 2024

Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q/Q Y/Y Net sales $ 364,141 $ 366,735 $ 385,648 $ 319,867 $ 383,693 (1)% (5)% Gross profit $ 53,615 $ 57,235 $ 57,219 $ 54,098 $ 58,602 (6)% (9)% Gross profit margin % 14.7 % 15.6 % 14.8 % 16.9 % 15.3 % (90) bp (60) bp GAAP operating income $ 14,602 $ 12,413 $ 14,406 $ 14,468 $ 19,750 18% (26)% GAAP operating income % 4.01 % 3.38 % 3.74 % 4.52 % 5.15 % 63 bp (114) bp Add: Intangible amortization expense $ 2,776 $ 2,932 $ 2,924 $ 2,904 $ 2,884 Add: Tax recovery(a) $ (1,386) $ — $ (128) $ — $ (2,858) Non-GAAP operating income $ 15,992 $ 15,345 $ 17,202 $ 17,372 $ 19,776 4% (19)% Non-GAAP operating income % 4.39 % 4.18 % 4.46 % 5.43 % 5.15 % 20 bp (80) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,602 $ 12,413 $ 14,406 $ 14,468 $ 19,750 18% (26)% Plus: Depreciation expense 1,077 1,093 1,117 1,042 1,034 Intangible amortization expense 2,776 2,932 2,924 2,904 2,884 Interest income 1,409 1,161 1,309 1,356 1,834 Other income/(expense), net 14,325 (549) (309) (307) (280) EBITDA 34,189 17,050 19,447 19,463 25,222 101% 36% Adjustments: Share-based compensation expense 914 1,258 1,000 1,087 1,161 Tax recovery(a) (1,386) — (128) — (2,858) Gain on disposal of a business (14,533) — — — — Adjusted EBITDA (non-GAAP) $ 19,184 $ 18,308 $ 20,319 $ 20,550 $ 23,525 5% (18)% Adjusted EBITDA (non-GAAP) % 5.27 % 4.99 % 5.27 % 6.42 % 6.13 % 28 bp (86) bp (a) Recovery of prior period withholding taxes in Brazil ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 February 6, 2024

Net Sales, Constant Currency Excluding Acquisitions and Divestitures (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q2 FY24 Q2 FY23 % Change Specialty Technology Solutions: Net sales, as reported $ 520,651 $ 627,548 (17.0) % Foreign exchange impact (a) (886) — Net sales, constant currency excluding divestitures (non-GAAP) $ 519,765 $ 627,548 (17.2) % Modern Communications & Cloud: Net sales, as reported $ 364,141 $ 383,693 (5.1) % Foreign exchange impact (a) (4,323) — Less: Divestitures (1,628) (2,170) Net sales, constant currency excluding divestitures (non-GAAP) $ 358,190 $ 381,523 (6.1) % Consolidated: Net sales, as reported $ 884,792 $ 1,011,241 (12.5) % Foreign exchange impact (a) (5,209) — Less: Divestitures (1,628) (2,170) Net sales, constant currency excluding divestitures (non-GAAP) $ 877,955 $ 1,009,071 (13.0) % Net Sales by Geography: Q2 FY24 Q2 FY23 % Change United States and Canada: Net sales, as reported $ 795,382 $ 909,221 (12.5) % International: Net sales, as reported $ 89,410 $ 102,020 (12.4) % Foreign exchange impact (a) (5,209) — Less: Divestitures $ (1,628) $ (2,170) Net sales, constant currency excluding divestitures (non-GAAP) $ 82,573 $ 99,850 (17.3) % Consolidated: Net sales, as reported $ 884,792 $ 1,011,241 (12.5) % Foreign exchange impact (a) (5,209) — Less: Divestitures $ (1,628) $ (2,170) Net sales, constant currency excluding divestitures (non-GAAP) $ 877,955 $ 1,009,071 (13.0) % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended December 31, 2023 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended December 31, 2022. ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 February 6, 2024

Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Adjusted return on invested capital (ROIC), annualized (a) 13.2 % 11.0 % 12.9 % 14.6 % 15.6 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 32,726 $ 15,432 $ 17,095 $ 21,221 $ 25,734 Plus: Interest expense 3,359 5,585 5,564 5,715 5,060 Income taxes 7,320 3,715 6,367 8,692 10,458 Depreciation and amortization 7,258 7,217 7,255 7,074 7,057 EBITDA 50,663 31,949 36,281 42,702 48,309 Adjustments: Tax recovery (b) (1,386) — (128) — (2,858) Divestiture costs 703 — — — — Cyberattack restoration costs 441 201 1,460 — — Share-based compensation 2,571 2,769 2,586 2,954 3,364 Gain on sale of business (14,533) — — — — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 38,459 $ 34,919 $ 40,199 $ 45,656 $ 48,815 Invested Capital Calculation Equity - beginning of the quarter $ 915,253 $ 905,298 $ 878,895 $ 862,386 $ 827,004 Equity - end of quarter 953,601 915,253 905,298 878,895 862,386 Adjustments: Tax recovery, net (640) — (2,100) — (1,886) Share-based compensation, net 1,919 2,068 1,921 2,191 2,496 Acquisition and divestiture costs 703 — — — — Cyberattack restoration costs, net 329 150 1,092 — — Gain on sale of business (14,533) — — — Discontinued operations net income — — (1,717) — — Average equity 928,316 911,385 891,695 871,736 845,000 Average funded debt (c) 227,688 352,897 361,792 398,318 392,853 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,156,004 $ 1,264,282 $ 1,253,487 $ 1,270,054 $ 1,237,853 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) Recovery of prior period withholding taxes in Brazil (c) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 February 6, 2024

Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Consolidated debt (Q/E) $ 168,634 $ 248,108 $ 329,901 $ 311,052 $ 382,796 Less: Cash and cash equivalents of continuing operations (Q/E) (44,987) (42,647) (36,178) (37,374) (66,445) Net debt (Q/E) $ 123,647 $ 205,461 $ 293,723 $ 273,678 $ 316,351 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 32,726 $ 15,432 $ 17,095 $ 21,221 $ 25,734 Plus: Interest expense 3,359 5,585 5,564 5,715 5,060 Income taxes 7,320 3,715 6,367 8,692 10,458 Depreciation and amortization 7,258 7,217 7,255 7,074 7,057 EBITDA 50,663 31,949 36,281 42,702 48,309 Adjustments: Acquisition and divestiture costs 703 — — — — Tax recovery (a) (1,386) — (128) — (2,858) Cyberattack restoration costs 441 201 1,460 — — Share-based compensation 2,571 2,769 2,586 2,954 3,364 Gain on sale of business (14,533) — — — — Adjusted EBITDA (non-GAAP) $ 38,459 $ 34,919 $ 40,199 $ 45,656 $ 48,815 Adjusted EBITDA, TTM (b) $ 159,233 $ 169,589 $ 179,945 $ 178,418 $ 176,877 Net Debt / Adjusted EBITDA, TTM 0.8 x 1.2 x 1.6 x 1.5 x 1.8 x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 February 6, 2024

Working Capital, 5-Quarter Summary ($ in thousands) Q2 FY24 Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Accounts Receivable (Q/E) $ 662,799 $ 691,669 $ 753,236 $ 684,458 $ 779,562 Days sales outstanding in receivables 68 71 72 70 69 Inventory (Q/E) $ 575,137 $ 656,170 $ 757,574 $ 752,763 $ 761,936 Inventory turns 5.1 4.4 4.4 4.1 5.0 Accounts payable (Q/E) $ 540,642 $ 617,594 $ 691,119 $ 656,688 $ 748,662 Paid for inventory days* 15.7 16.8 17.5 22.7 10.9 Working Capital (Q/E) (AR+INV-AP) $ 697,294 $ 730,245 $ 819,691 $ 780,533 $ 792,836 Cash conversion cycle 84 88 90 93 80 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 February 6, 2024

Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended December 31, 2023 Reported GAAP measure Intangible amortization expense Divestiture costs Tax recovery, net Gain on sale of business (a) Cyberattack restoration costs Non-GAAP measure SG&A expenses $66,921 — $(703) $1,386 — $(441) $67,163 Operating income 26,826 4,037 703 (1,386) — 441 30,621 Pre-tax income 40,046 4,037 703 (1,386) (14,533) 441 29,308 Net income 32,726 3,002 703 (640) (14,533) 329 21,587 Diluted EPS $1.29 $0.12 $0.03 $(0.03) $(0.57) $0.01 $0.85 ($ in thousands) Quarter ended September 30, 2023 Reported GAAP measure Intangible amortization expense Divestiture costs Tax recovery, net Gain on sale of business (a) Cyberattack restoration costs Non-GAAP measure SG&A expenses $75,436 — — — — (201) $75,235 Operating income 24,084 4,193 — — — 201 28,478 Pre-tax income 19,147 4,193 — — — 201 23,541 Net income 15,432 3,146 — — — 150 18,728 Diluted EPS $0.61 $0.12 — — — $0.01 $0.74 (a) Reflects gain on the sale of the UK-based intY business. This transaction resulted in a capital loss for tax purposes. ScanSource did not record a tax provision on the capital loss since there were no offsetting capital gains. ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 February 6, 2024

Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended June 30, 2023 Reported GAAP measure Intangible amortization expense Divestiture costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $74,358 — — 128 — (1,460) $73,026 Operating income 27,289 4,185 — (128) — 1,460 32,806 Pre-tax income 23,462 4,185 — (128) — 1,460 28,979 Net income 17,095 3,126 — (2,100) — 1,092 19,213 Diluted EPS $0.68 $0.12 — $(0.08) — $0.04 $0.76 ($ in thousands) Quarter ended March 31, 2023 Reported GAAP measure Intangible amortization expense Divestiture costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $70,669 — — — — — $70,669 Operating income 34,279 4,170 — — — — 38,449 Pre-tax income 29,913 4,170 — — — — 34,083 Net income 21,221 3,109 — — — — 24,330 Diluted EPS $0.83 $0.12 — — — — $0.96 ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 February 6, 2024

($ in thousands) Quarter ended December 31, 2022 Reported GAAP measure Intangible amortization expense Divestiture costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $69,074 — — $2,858 — — $71,932 Operating income 39,432 4,150 — (2,858) — — 40,724 Pre-tax income 36,192 4,150 — (2,858) — — 37,484 Net income 25,734 3,093 — (1,886) — — 26,941 Diluted EPS $1.01 $0.12 — $(0.07) — — $1.06 ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 February 6, 2024

FY24 Annual Financial Outlook Reconciliation FY 24 Outlook GAAP operating income At least $111 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $11 million Interest income and income (expense), net $4 million Adjusted EBITDA (non-GAAP) At least $155 million GAAP operating cash flow At least $210 million Less: Capital expenditures $10 million Free cash flow (non-GAAP) At least $200 million ScanSource, Inc. Earnings Infographic Q2 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 February 6, 2024