-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, EaFqhOpZDQ0Jp6tp3yh1ZdLf+sx/ICTjAf1wfFXlQnSqS1UyGNEyagydE9OtuXZ/ zU5SgZtD9WLhJZHsSlLVUQ== 0000950144-95-001699.txt : 19950615 0000950144-95-001699.hdr.sgml : 19950615 ACCESSION NUMBER: 0000950144-95-001699 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950614 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: TECH DATA CORP CENTRAL INDEX KEY: 0000790703 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045] IRS NUMBER: 591578329 STATE OF INCORPORATION: FL FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14625 FILM NUMBER: 95547125 BUSINESS ADDRESS: STREET 1: 5350 TECH DATA DR CITY: CLEARWATER STATE: FL ZIP: 34620 BUSINESS PHONE: 8135397429 MAIL ADDRESS: STREET 1: 5350 TECH DATA DRIVE CITY: CLEARWATER STATE: FL ZIP: 34620 10-Q 1 TECH DATA FORM 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended April 30, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------- ----------- Commission file number 0-14625 --------- TECH DATA CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Florida No. 59-1578329 - ----------------------------------------- ------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 5350 Tech Data Drive, Clearwater, Florida 34620 - ----------------------------------------- ------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code:(813) 539-7429 -------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Outstanding at CLASS May 31, 1995 - ---------------------------------------- ------------ Common stock, par value $.0015 per share 37,815,794 2 TECH DATA CORPORATION Form 10-Q For The Quarter Ended April 30, 1995 INDEX PART I. FINANCIAL INFORMATION PAGE ---- Item 1. Financial Statements Consolidated Balance Sheet as of April 30, 1995 (unaudited) and January 31, 1995 3 Consolidated Statement of Income (unaudited) for the three months ended April 30, 1995 and 1994 4 Consolidated Statement of Cash Flows (unaudited) for the three months ended April 30, 1995 and 1994 5 Notes to Consolidated Financial Statements (unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7-8 PART II. OTHER INFORMATION All items required in Part II have been previously filed, have been included in Part I of this report or are not applicable for the quarter ended April 30, 1995. SIGNATURES 9
2 3 TECH DATA CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (In thousands, except share amounts)
April 30, January 31, 1995 1995 ---------- ----------- ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 562 $ 496 Accounts receivable, less allowance for doubtful accounts of $19,018 and $16,580 323,924 309,846 Inventories 335,794 364,531 Prepaid and other assets 36,984 21,850 -------- -------- Total current assets 697,264 696,723 Property and equipment, net 53,034 51,042 Excess of cost over acquired net assets, net 9,891 10,061 Other assets 26,894 26,603 -------- -------- $787,083 $784,429 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Revolving credit loans $283,650 $304,784 Current portion of long-term debt 544 542 Accounts payable 211,908 194,213 Accrued expenses 16,452 14,382 -------- -------- Total current liabilities 512,554 513,921 Long-term debt 9,504 9,682 -------- -------- 522,058 523,603 -------- -------- Commitments and contingencies Shareholders' equity: Preferred stock, par value $.02; 226,500 shares authorized and issued; liquidation preference $.20 per share 5 5 Common stock, par value $.0015; 100,000,000 shares authorized; 37,815,794 and 37,807,794 issued and outstanding 57 57 Additional paid-in capital 128,720 127,947 Retained earnings 133,618 131,769 Cumulative translation adjustment 2,625 1,048 -------- -------- Total shareholders' equity 265,025 260,826 -------- -------- $787,083 $784,429 ======== ========
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 3 4 TECH DATA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (In thousands, except per share amounts)
Three months ended April 30, -------------------------- 1995 1994 -------- -------- Net sales $633,460 $530,469 -------- -------- Cost and expenses: Cost of products sold 587,244 485,312 Selling, general and administrative expenses 38,061 27,452 -------- -------- 625,305 512,764 -------- -------- Operating profit 8,155 17,705 Interest expense 5,057 2,489 -------- -------- Income before income taxes 3,098 15,216 Provision for income taxes 1,249 5,991 -------- -------- Net income $ 1,849 $ 9,225 ======== ======== Net income per common share $ 0.05 $ 0.24 ======== ======== Weighted average common shares outstanding 38,063 38,318 ======== ========
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 4 5 TECH DATA CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (In thousands)
Three months ended April 30, --------- 1995 1994 -------- --------- Cash flows from operating activities: Cash received from customers $615,340 $ 518,338 Cash paid to suppliers and employees (585,490) (522,936) Interest paid (5,112) (2,366) Income tax refunds received (taxes paid) 591 (9,611) -------- --------- Net cash provided by (used in) operating activities 25,329 (16,575) -------- --------- Cash flows from investing activities: Capital expenditures (4,726) (7,325) -------- --------- Cash flows from financing activities: Proceeds from issuance of common stock 773 865 Net (repayments) borrowings under revolving credit loans (21,134) 23,507 Principal payments on long-term debt (176) (43) -------- --------- Net cash (used in) provided by financing activities (20,537) 24,329 -------- --------- Net increase in cash and cash equivalents 66 429 Cash and cash equivalents at beginning of period 496 678 -------- --------- Cash and cash equivalents at end of period $ 562 $ 1,107 ======== ========= Reconciliation of net income to net cash provided by (used in) operating activities: Net income $ 1,849 $ 9,225 -------- --------- Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 3,954 1,682 Provision for losses on accounts receivable 4,042 4,002 (Increase) decrease in assets: Accounts receivable (18,120) (10,934) Inventories 28,737 (17,565) Prepaid and other assets (14,898) (9,447) Increase (decrease) in liabilities: Accounts payable 17,695 7,492 Accrued expenses 2,070 (1,030) -------- --------- Total adjustments 23,480 (25,800) -------- --------- Net cash provided by (used in) operating activities $ 25,329 $ (16,575) ======== =========
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 5 6 TECH DATA CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Basis of presentation The consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the financial position of Tech Data Corporation and subsidiaries (the "Company") as of April 30, 1995, and the results of their operations and cash flows for the three months ended April 30, 1995 and 1994. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended April 30, 1995 are not necessarily indicative of the results that can be expected for the entire fiscal year ending January 31, 1996. Net income per common share Net income per share of common stock is based on the weighted average number of shares of common stock and common stock equivalents outstanding during each period. 6 7 TECH DATA CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Three Months Ended April 30, 1995 and 1994 Net sales increased 19.4% to $633.5 million in the first quarter of fiscal 1996 compared to $530.5 million in the first quarter last year. This increase is attributable to the addition of new product lines and the expansion of existing product lines combined with an increase in the Company's customer base. The rate of growth in first quarter fiscal 1996 sales is lower than the rate of growth in the prior year, which is attributable to business interruptions caused by the conversion to a new computer system in December 1994. The Company's international sales grew 36% in the first quarter of fiscal 1996 compared to the prior year first quarter and were approximately 15% of fiscal 1996 first quarter consolidated net sales. The cost of products sold as a percentage of net sales increased to 92.7% in the first quarter of fiscal 1996 from 91.5% in the prior year. This increase is a result of the Company's strategy of lowering selling prices in order to gain market share. In addition, the increase is also attributable to certain freight concessions made with customers during the first quarter of fiscal 1996 in order to ensure timely delivery of product. Selling, general and administrative expenses increased by 38.6% to $38.1 million in the first quarter of fiscal 1996 compared to $27.5 million in the prior year and increased as a percentage of net sales to 6.0% of net sales in the first quarter of fiscal 1996 compared to 5.2% in the first quarter last year. The increase is primarily the result of expanded employment and increases in other administrative expenses, including expenses associated with the new computer system. Additionally, the increase in selling, general and administrative expenses as a percentage of sales in the first quarter of fiscal 1996 is attributable to the reduced rate of sales growth resulting from business interruptions caused by the December 1994 computer system conversion. As a result of the factors discussed above, operating profit decreased 53.9% to $8.2 million, or 1.3% of net sales, in the first quarter of fiscal 1996, compared to $17.7 million, or 3.3% of net sales for the first quarter last year. Interest expense increased in the first quarter of fiscal 1996 due to an increase in the Company's average outstanding indebtedness, combined with increases in short-term interest rates on the Company's floating rate indebtedness. As a result of the factors discussed above, net income decreased 80.0% to $1.8 million, or $.05 per share, in the first quarter of fiscal 1996 compared to $9.2 million, or $.24 per share, in the prior year comparable quarter. 7 8 Liquidity and Capital Resources Net cash provided by operating activities of $25.3 million during the first quarter of fiscal 1996 was primarily attributable to the Company's efforts to reduce inventory levels consistent with the lower rate of sales growth. Net cash used in investing activities of $4.7 million during the first quarter of fiscal 1996 was a result of the Company making capital expenditures to expand the capacity of its systems, office and warehouse facilities. The Company expects to make capital expenditures of approximately $25 million during fiscal 1996 to further expand its office and warehouse facilities. Net cash used in financing activities of $20.5 million during the first quarter of fiscal 1996 was primarily used to reduce borrowings under the Company's revolving credit loans. The Company currently maintains domestic and foreign revolving credit agreements which provide maximum short-term borrowings of approximately $400 million, of which $284 million was outstanding at April 30, 1995. The Company believes that cash from operations, available and obtainable bank credit lines and trade credit from its vendors will be sufficient to satisfy its working capital and capital expenditure needs during fiscal 1996. Asset Management The Company manages its inventories by maintaining sufficient quantities to achieve high order fill rates while at the same time attempting to stock only those products in high demand with a rapid turnover rate. Inventory balances will fluctuate as the Company adds new product lines and when appropriate, makes large purchases from manufacturers when the terms of such purchases are considered advantageous. The Company's contracts with most of its vendors provide price protection and stock return privileges to reduce the risk of loss to the Company due to manufacturer price reductions and slow moving or obsolete inventory. In the event of a vendor price reduction, the Company generally receives a credit for products in inventory. In addition, the Company has the right to return a certain percentage of purchases, subject to certain limitations. Historically, price protection and stock return privileges, as well as the Company's inventory management procedures, have helped to reduce the risk of loss of carrying inventory. The Company attempts to control losses on credit sales by closely monitoring customers' creditworthiness through its on-line computer system which contains detailed information on the customer's payment history and other relevant information. In addition, the Company participates in a national credit association which exchanges credit rating information on mutual customers. Customers who qualify for credit terms are typically granted net 20 or 30 day payment terms. The Company also sells product on a prepay, credit card or cash on delivery basis. 8 9 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 thereunto duly authorized. TECH DATA CORPORATION --------------------- (Registrant)
Signature Title Date - --------- ----- ---- /s/ Steven A. Raymund Chairman of the Board of June 13, 1995 - --------------------- Directors and Chief Steven A. Raymund Executive Officer /s/ Jeffery P. Howells Senior Vice President of Finance June 13, 1995 - ---------------------- and Chief Financial Officer Jeffery P. Howells (principal financial officer) /s/ Joseph B. Trepani Vice President and Worldwide June 13, 1995 - --------------------- Controller (principal accounting officer) Joseph B. Trepani
9 10 INDEX TO EXHIBITS ----------------- EXHIBIT NO. DESCRIPTION - ------- ----------- 27 Financial Data Schedule (for SEC use only) EX-27 2 FINANCIAL DATA SCHEDULE TECH DATA
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF TECH DATA CORPORATION FOR THE PERIOD ENDED APRIL 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS JAN-31-1996 FEB-01-1995 APR-30-1995 562 0 342,942 19,018 335,794 697,264 53,034 0 787,083 512,554 0 57 0 5 264,963 787,083 633,460 633,460 587,244 587,244 0 0 5,057 3,098 1,249 1,849 0 0 0 1,849 .05 .05
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