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): November 22, 2016
Tech Data Corporation
(Exact Name of Registrant as Specified in Charter)
FLORIDA | 0-14625 | 59-1578329 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
5350 Tech Data Drive, Clearwater, Florida 33760 |
(Address of Principal Executive Offices) (Zip Code) |
727-539-7429
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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)) |
Item 2.02. Results of Operations and Financial Condition.
On November 22, 2016, Tech Data Corporation (the “Company”) issued a press release, furnished as Exhibit 99.1 and incorporated herein by reference, announcing its financial results for the three months ended October 31, 2016. The information in this Form 8-K, including Exhibit 99.1, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. GAAP to Non-GAAP Reconciliation The disclosures of financial results for the three months ended October 31, 2016, contained herein are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) and are accompanied by disclosures and financial measures that are not prepared in conformity with GAAP. These non-GAAP disclosures include certain adjustments as noted below and the related tax effect not reflected in the GAAP presentations. In addition to GAAP results, Company management believes that the presentation of non-GAAP financial measures is useful to investors because it provides investors with a more complete understanding of our operational results and a meaningful comparison of our performance between periods. The non-GAAP results should only be used in conjunction with results reported in accordance with GAAP and are not intended to be a substitute for results reported in accordance with GAAP. Non-GAAP financial measures presented in the press release, supplemental slide presentation and similar documents issued by the Company include but are not limited to net sales, income or expense items as adjusted for the impact of changes in foreign currencies (referred to as “constant currency”) and the impact of the exit of certain country operations, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share and Return on Invested Capital. These non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by comparable companies. Management may also use these non-GAAP financial measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. The press release and supplemental slide presentation provide a detailed reconciliation between results reported in accordance with GAAP and non-GAAP financial measures.
For the three months ended October 31, 2016, non-GAAP selling, general and administrative expenses (“SG&A”), non-GAAP operating income and non-GAAP operating margin exclude acquisition and integration expenses of $13.0 million. For the three months ended October 31, 2016, non-GAAP net income and non-GAAP net income per diluted share exclude this item, net of the tax impact.
For the three months ended October 31, 2016, non-GAAP SG&A, non-GAAP operating income and non-GAAP operating margin exclude acquisition-related intangible assets amortization expense of $5.2 million. For the three months ended October 31, 2016, non-GAAP net income and non-GAAP net income per diluted share exclude this item, net of the tax impact.
For the three months ended October 31, 2016, non-GAAP net income and non-GAAP net income per diluted share exclude acquisition-related financing expenses of $3.4 million, net of the tax impact.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following materials are attached as exhibits to this Current Report on Form 8-K:Exhibit
Number Description 99.1 Press Release, dated November 22, 2016. 99.2 Supplemental slide presentation dated November 22, 2016.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Tech Data Corporation | ||
Date: November 22, 2016 | By: | /s/ Charles V. Dannewitz |
Charles V. Dannewitz | ||
Executive Vice President, & Chief Financial Officer | ||
EXHIBIT 99.1
Tech Data Corporation Reports Third Quarter Fiscal Year 2017 Results
CLEARWATER, Fla., Nov. 22, 2016 (GLOBE NEWSWIRE) -- Tech Data Corporation (NASDAQ:TECD) (the “Company”) today announced its financial results for the third quarter ended October 31, 2016.
Third quarter ended October 31, | Nine months ended October 31, | ||||||||||||||||||
($ in millions, except per share amounts) | 2016 | 2015 | Y/Y Change | 2016 | 2015 | Y/Y Change | |||||||||||||
Net Sales | $ | 6,490.3 | $ | 6,428.5 | 1 | % | $ | 18,807.4 | $ | 18,896.2 | 0 | % | |||||||
Operating income (GAAP) | $ | 62.9 | $ | 68.1 | -8 | % | $ | 188.8 | $ | 256.2 | -26 | % | |||||||
Operating margin (GAAP) | 0.97 | % | 1.06 | % | -9 | bps | 1.00 | % | 1.36 | % | -36 | bps | |||||||
Operating income (Non-GAAP) | $ | 81.1 | $ | 70.9 | 14 | % | $ | 216.8 | $ | 202.3 | 7 | % | |||||||
Operating margin (Non-GAAP) | 1.25 | % | 1.10 | % | 15 | bps | 1.15 | % | 1.07 | % | 8 | bps | |||||||
Net income (GAAP) | $ | 36.5 | $ | 41.9 | -13 | % | $ | 116.3 | $ | 169.6 | -31 | % | |||||||
Net income (Non-GAAP) | $ | 50.9 | $ | 45.2 | 13 | % | $ | 138.2 | $ | 127.3 | 9 | % | |||||||
EPS - diluted (GAAP) | $ | 1.03 | $ | 1.18 | -13 | % | $ | 3.29 | $ | 4.66 | -29 | % | |||||||
EPS - diluted (Non-GAAP) | $ | 1.44 | $ | 1.28 | 13 | % | $ | 3.91 | $ | 3.50 | 12 | % |
A reconciliation of GAAP to non-GAAP financial measures is presented in the financial tables of this press release.
This information is also available on the Investor Relations section of Tech Data’s website at www.techdata.com/investor.
Financial Highlights for the Third Quarter Ended October 31, 2016:
“We are pleased to report that Tech Data delivered a strong performance in Q3. While the overall IT demand environment remained challenging in both regions, our teams proved they were up to the task, turning in top line growth and excellent earnings improvement,” said Robert M. Dutkowsky, chief executive officer. “Higher sales, coupled with excellent expense management, delivered double-digit growth in non-GAAP operating income, double-digit growth in non-GAAP net income, and double-digit growth in non-GAAP earnings per share to a record Q3 level. During the quarter we announced that we entered into a definitive agreement to acquire Avnet’s Technology Solutions business. We believe the strategic and financial benefits resulting from this transformative combination are compelling for our customers, vendor partners, employees and shareholders, and we are excited about the future opportunities ahead.”
Business Outlook
Webcast Details
Tech Data will hold a conference call today at 9:00 a.m. (ET) to discuss its financial results for the third quarter ended October 31, 2016. A webcast of the call, including supplemental schedules, will be available to all interested parties and can be obtained at www.techdata.com/investor. The webcast will be available for replay for three months.
Non-GAAP Financial Information
The non-GAAP financial information contained in this release is included with the intention of providing investors a more complete understanding of the Company’s operational results and trends, but should only be used in conjunction with results reported in accordance with Generally Accepted Accounting Principles (“GAAP”). Certain non-GAAP measures presented in this release or other releases, presentations and similar documents issued by the Company include sales, income or expense items as adjusted for the impact of changes in foreign currencies (referred to as “constant currency”) and the impact of the exit of certain country operations. Certain non-GAAP measures also exclude acquisition-related intangible assets amortization expense, benefits associated with legal settlements, value-added tax assessment matters, a loss on disposal of subsidiaries, acquisition and integration-related expenses, and restatement and remediation related expenses. A detailed reconciliation of the adjustments between results calculated using GAAP and non-GAAP in this release is contained in the attached financial schedules. This information can also be obtained from the Company’s Investor Relations website at www.techdata.com/investor.
Forward-Looking Statements
Certain statements in this communication may contain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data’s business outlook, its plans, objectives, expectations and intentions relating to the proposed acquisition of Avnet’s Technology Solutions business (“Acquisition” or “Acquired Business”), the proposed Acquisition’s expected contribution to Tech Data’s results, financing and closing of the proposed Acquisition, the expected timing and benefits of the proposed Acquisition, Tech Data’s, Avnet’s and the Acquired Business’ financial results and estimates and/or business prospects involve a number of risks and uncertainties and actual results could differ materially from those projected. These forward looking statements are based on current expectations, estimates, forecasts, and projections about the proposed Acquisition and the operating environment, economies and markets in which Tech Data and the Acquired Business operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words, and similar expressions are intended to identify such forward looking statements. In addition, any statements that refer to projections of Tech Data or the Acquired Business’ future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward looking statements. These forward looking statements are only predictions and are subject to risks, uncertainties, and assumptions. Therefore, actual results may differ materially and adversely from those expressed in any forward looking statements.
For additional information with respect to risks and other factors which could occur, see Tech Data’s Annual Report on Form 10-K filed on March 24, 2016, including Part I, Item 1A, “Risk Factors” therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the “SEC”) that are available at the SEC’s website at www.sec.gov and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Many of these factors are beyond Tech Data’s control. Unless otherwise required by applicable securities laws, Tech Data disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Tech Data undertakes no duty to update any forward looking statements contained herein to reflect actual results or changes in Tech Data’s expectations.
About Tech Data
Tech Data Corporation is one of the world’s largest wholesale distributors of technology products, services and solutions. Its advanced logistics capabilities and value added services enable 105,000 resellers to efficiently and cost effectively support the diverse technology needs of end users in more than 100 countries. Tech Data generated $26.4 billion in net sales for the fiscal year ended January 31, 2016. It is ranked No. 108 on the Fortune 500® and one of Fortune’s “World’s Most Admired Companies.” To learn more, visit www.techdata.com, or follow us on Facebook and Twitter.
TECH DATA CORPORATION AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net sales | $ | 6,490,265 | $ | 6,428,540 | $ | 18,807,366 | $ | 18,896,162 | ||||||||
Cost of products sold | 6,174,426 | 6,113,696 | 17,876,466 | 17,964,150 | ||||||||||||
Gross profit | 315,839 | 314,844 | 930,900 | 932,012 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 239,952 | 249,840 | 730,211 | 748,436 | ||||||||||||
Acquisition and integration expenses | 13,015 | - | 14,997 | - | ||||||||||||
LCD settlements and other, net | - | (3,049 | ) | (4,142 | ) | (63,087 | ) | |||||||||
Value added tax assessments | - | - | 1,049 | (9,563 | ) | |||||||||||
252,967 | 246,791 | 742,115 | 675,786 | |||||||||||||
Operating income | 62,872 | 68,053 | 188,785 | 256,226 | ||||||||||||
Interest expense | 9,475 | 5,619 | 21,364 | 8,021 | ||||||||||||
Other expense (income), net | 1,747 | 898 | (517 | ) | 1,110 | |||||||||||
Income before income taxes | 51,650 | 61,536 | 167,938 | 247,095 | ||||||||||||
Provision for income taxes | 15,144 | 19,636 | 51,665 | 77,506 | ||||||||||||
Net income | $ | 36,506 | $ | 41,900 | $ | 116,273 | $ | 169,589 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.04 | $ | 1.19 | $ | 3.30 | $ | 4.69 | ||||||||
Diluted | $ | 1.03 | $ | 1.18 | $ | 3.29 | $ | 4.66 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 35,218 | 35,214 | 35,184 | 36,174 | ||||||||||||
Diluted | 35,449 | 35,397 | 35,393 | 36,354 | ||||||||||||
TECH DATA CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEET | |||||||
(In thousands, except par value and share amounts) | |||||||
October 31, | January 31, | ||||||
2016 | 2016 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 691,565 | $ | 531,169 | |||
Accounts receivable, less allowances of $41,400 and $45,875 | 2,866,028 | 2,995,114 | |||||
Inventories | 2,253,962 | 2,117,384 | |||||
Prepaid expenses and other assets | 129,227 | 178,394 | |||||
Total current assets | 5,940,782 | 5,822,061 | |||||
Property and equipment, net | 72,700 | 66,028 | |||||
Goodwill | 199,079 | 204,114 | |||||
Intangible assets, net | 137,390 | 159,386 | |||||
Other assets, net | 112,713 | 106,699 | |||||
Total assets | $ | 6,462,664 | $ | 6,358,288 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,495,096 | $ | 3,427,580 | |||
Accrued expenses and other liabilities | 432,661 | 487,003 | |||||
Revolving credit loans and current maturities of long-term debt, net | 365,417 | 18,063 | |||||
Total current liabilities | 4,293,174 | 3,932,646 | |||||
Long-term debt, less current maturities | - | 348,608 | |||||
Other long-term liabilities | 77,051 | 71,279 | |||||
Total liabilities | $ | 4,370,225 | $ | 4,352,533 | |||
Shareholders' equity: | |||||||
Common stock, par value $0.0015; 200,000,000 shares authorized; 59,245,585 shares issued at October 31, 2016 and January 31, 2016 | $ | 89 | $ | 89 | |||
Additional paid-in capital | 683,211 | 682,227 | |||||
Treasury stock, at cost (24,024,441 and 24,163,402 shares at October 31, 2016 and January 31, 2016) | (1,071,238 | ) | (1,077,434 | ) | |||
Retained earnings | 2,550,471 | 2,434,198 | |||||
Accumulated other comprehensive loss | (70,094 | ) | (33,325 | ) | |||
Total shareholders' equity | 2,092,439 | 2,005,755 | |||||
Total liabilities and shareholders' equity | $ | 6,462,664 | $ | 6,358,288 | |||
TECH DATA CORPORATION AND SUBSIDIARIES | ||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
(In thousands) | ||||||||||||||||
Q3 FY17 - Three months ended October 31, 2016 | ||||||||||||||||
Americas⁽⁾ | Europe⁽⁾ | Stock Compensation Expense | Consolidated | |||||||||||||
Net Sales | $ | 2,614,347 | $ | 3,875,918 | $ | 6,490,265 | ||||||||||
GAAP operating income⁽⁾ | $ | 32,414 | $ | 34,008 | $ | (3,550 | ) | $ | 62,872 | |||||||
Acquisition and integration expenses | 9,456 | 3,559 | 13,015 | |||||||||||||
Acquisition-related amortization of intangibles | 580 | 4,663 | 5,243 | |||||||||||||
Total non-GAAP operating income adjustments | $ | 10,036 | $ | 8,222 | $ | 18,258 | ||||||||||
Non-GAAP operating income | $ | 42,450 | $ | 42,230 | $ | (3,550 | ) | $ | 81,130 | |||||||
GAAP operating margin | 1.24 | % | 0.88 | % | 0.97 | % | ||||||||||
Non-GAAP operating margin | 1.62 | % | 1.09 | % | 1.25 | % | ||||||||||
⁽⁾ GAAP operating income does not include stock compensation expense at the regional level. |
Q3 FY16 - Three months ended October 31, 2015 | ||||||||||||||||
Americas⁽⁾ | Europe⁽⁾ | Stock Compensation Expense | Consolidated | |||||||||||||
Net Sales | $ | 2,572,751 | $ | 3,855,789 | $ | 6,428,540 | ||||||||||
GAAP operating income⁽⁾ | $ | 38,857 | $ | 32,817 | $ | (3,621 | ) | $ | 68,053 | |||||||
Restatement and remediation related expenses | 34 | 13 | 47 | |||||||||||||
Loss on disposal of subsidiaries | 182 | - | 182 | |||||||||||||
Acquisition-related amortization of intangibles | 583 | 5,088 | 5,671 | |||||||||||||
LCD settlements and other, net | (3,049 | ) | - | (3,049 | ) | |||||||||||
Total non-GAAP operating income adjustments | $ | (2,250 | ) | $ | 5,101 | $ | 2,851 | |||||||||
Non-GAAP operating income | $ | 36,607 | $ | 37,918 | $ | (3,621 | ) | $ | 70,904 | |||||||
GAAP operating margin | 1.51 | % | 0.85 | % | 1.06 | % | ||||||||||
Non-GAAP operating margin | 1.42 | % | 0.98 | % | 1.10 | % | ||||||||||
⁽⁾ GAAP operating income does not include stock compensation expense at the regional level. |
TECH DATA CORPORATION AND SUBSIDIARIES | ||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||
(In thousands) | ||||||||||||||||
Q3 FY17 - Nine months ended October 31, 2016 | ||||||||||||||||
Americas⁽⁾ | Europe⁽⁾ | Stock Compensation Expense | Consolidated | |||||||||||||
Net Sales | $ | 7,677,237 | $ | 11,130,129 | $ | 18,807,366 | ||||||||||
GAAP operating income⁽⁾ | $ | 104,930 | $ | 94,875 | $ | (11,020 | ) | $ | 188,785 | |||||||
Value added tax assessments | (407 | ) | 1,456 | 1,049 | ||||||||||||
Acquisition and integration costs | 10,502 | 4,495 | 14,997 | |||||||||||||
Acquisition-related amortization of intangibles | 1,740 | 14,356 | 16,096 | |||||||||||||
LCD settlements and other, net | (4,142 | ) | - | (4,142 | ) | |||||||||||
Total non-GAAP operating income adjustments | $ | 7,693 | $ | 20,307 | $ | 28,000 | ||||||||||
Non-GAAP operating income | $ | 112,623 | $ | 115,182 | $ | (11,020 | ) | $ | 216,785 | |||||||
GAAP operating margin | 1.37 | % | 0.85 | % | 1.00 | % | ||||||||||
Non-GAAP operating margin | 1.47 | % | 1.03 | % | 1.15 | % | ||||||||||
⁽⁾ GAAP operating income does not include stock compensation expense at the regional level. |
Q3 FY16 - Nine months ended October 31, 2015 | ||||||||||||||||
Americas⁽⁾ | Europe⁽⁾ | Stock Compensation Expense | Consolidated | |||||||||||||
Net Sales | $ | 7,657,440 | $ | 11,238,722 | $ | 18,896,162 | ||||||||||
GAAP operating income⁽⁾ | $ | 161,968 | $ | 105,657 | $ | (11,399 | ) | $ | 256,226 | |||||||
Restatement and remediation related expenses | 218 | 611 | 829 | |||||||||||||
Value added tax assessments | - | (9,563 | ) | (9,563 | ) | |||||||||||
Loss on disposal of subsidiaries | 699 | - | 699 | |||||||||||||
Acquisition-related amortization of intangibles | 1,198 | 15,960 | 17,158 | |||||||||||||
LCD settlements and other, net | (63,087 | ) | - | (63,087 | ) | |||||||||||
Total non-GAAP operating income adjustments | $ | (60,972 | ) | $ | 7,008 | $ | (53,964 | ) | ||||||||
Non-GAAP operating income | $ | 100,996 | $ | 112,665 | $ | (11,399 | ) | $ | 202,262 | |||||||
GAAP operating margin | 2.12 | % | 0.94 | % | 1.36 | % | ||||||||||
Non-GAAP operating margin | 1.32 | % | 1.00 | % | 1.07 | % | ||||||||||
⁽⁾ GAAP operating income does not include stock compensation expense at the regional level. |
TECH DATA CORPORATION AND SUBSIDIARIES | ||||||||
GAAP TO NON-GAAP RECONCILIATION | ||||||||
(In thousands, except per share amounts) | ||||||||
Selling, general and administrative expenses ("SG&A") | Three months ended October 31, | |||||||
2016 | 2015 | |||||||
Net Sales | $ | 6,490,265 | $ | 6,428,540 | ||||
GAAP SG&A | 239,952 | 249,840 | ||||||
Acquisition-related amortization of intangibles | (5,243 | ) | (5,671 | ) | ||||
Restatement and remediation related expenses | - | (47 | ) | |||||
Loss on disposal of subsidiaries | - | (182 | ) | |||||
Non-GAAP SG&A | $ | 234,709 | $ | 243,940 | ||||
GAAP SG&A percentage of net sales | 3.70 | % | 3.89 | % | ||||
Non- GAAP SG&A percentage of net sales | 3.62 | % | 3.79 | % | ||||
Nine months ended October 31, | ||||||||
2016 | 2015 | |||||||
Net Sales | $ | 18,807,366 | $ | 18,896,162 | ||||
GAAP SG&A | 730,211 | 748,436 | ||||||
Acquisition-related amortization of intangibles | (16,096 | ) | (17,158 | ) | ||||
Restatement and remediation related expenses | - | (829 | ) | |||||
Loss on disposal of subsidiaries | - | (699 | ) | |||||
Non-GAAP SG&A | $ | 714,115 | $ | 729,750 | ||||
GAAP SG&A percentage of net sales | 3.88 | % | 3.96 | % | ||||
Non- GAAP SG&A percentage of net sales | 3.80 | % | 3.86 | % | ||||
Three months ended October 31, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | |||||||||||||
GAAP Results | $ | 36,506 | $ | 1.03 | $ | 41,900 | $ | 1.18 | ||||||||
LCD settlements and other, net | - | - | (3,049 | ) | (0.08 | ) | ||||||||||
Restatement and remediation related expenses | - | - | 47 | - | ||||||||||||
Acquisition and integration expenses | 13,015 | 0.37 | - | - | ||||||||||||
Loss on disposal of subsidiaries | - | - | 182 | 0.01 | ||||||||||||
Acquisition-related intangible assets amortization expense | 5,243 | 0.15 | 5,671 | 0.16 | ||||||||||||
Acquisition-related financing expenses | 3,414 | 0.10 | - | - | ||||||||||||
Income tax effect of the above adjustments | (7,277 | ) | (0.21 | ) | 443 | 0.01 | ||||||||||
Non-GAAP results | $ | 50,901 | $ | 1.44 | $ | 45,194 | $ | 1.28 | ||||||||
Nine months ended October 31, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | |||||||||||||
GAAP Results | $ | 116,273 | $ | 3.29 | $ | 169,589 | $ | 4.66 | ||||||||
LCD settlements and other, net | (4,142 | ) | (0.12 | ) | (63,087 | ) | (1.73 | ) | ||||||||
Value-added tax assessments and related interest expense | 1,386 | 0.04 | (18,559 | ) | (0.51 | ) | ||||||||||
Restatement and remediation related expenses | - | - | 829 | 0.02 | ||||||||||||
Acquisition and integration expenses | 14,997 | 0.42 | - | - | ||||||||||||
Loss on disposal of subsidiaries | - | - | 699 | 0.02 | ||||||||||||
Acquisition-related intangible assets amortization expense | 16,096 | 0.45 | 17,158 | 0.47 | ||||||||||||
Acquisition-related financing expenses | 3,414 | 0.10 | - | - | ||||||||||||
Income tax effect of the above adjustments | (9,788 | ) | (0.27 | ) | 20,639 | 0.57 | ||||||||||
Non-GAAP results | $ | 138,236 | $ | 3.91 | $ | 127,268 | $ | 3.50 | ||||||||
TECH DATA CORPORATION AND SUBSIDIARIES | |||||||
GAAP TO NON-GAAP RECONCILIATION | |||||||
(In thousands) | |||||||
Return on Invested Capital (ROIC) | |||||||
Twelve months ended | |||||||
October 31, 2016 | October 31, 2015 | ||||||
TTM Non-GAAP Net Operating Profit After Tax (NOPAT)*: | |||||||
Non-GAAP Operating Income | $ | 333,593 | $ | 313,996 | |||
Non-GAAP effective tax rate | 28.5 | % | 30.0 | % | |||
Non-GAAP NOPAT (Non-GAAP operating income x (1 - non-GAAP effective tax rate)) | $ | 238,419 | $ | 219,750 | |||
Average Invested Capital: | |||||||
Short-term debt (5-qtr average) | $ | 86,220 | $ | 22,219 | |||
Long-term debt (5-qtr average) | 278,970 | 351,050 | |||||
Non-GAAP Shareholders' Equity (5-qtr average) | 2,048,458 | 1,975,455 | |||||
Total average capital | 2,413,648 | 2,348,724 | |||||
Less: Cash (5-qtr average) | (666,295 | ) | (584,629 | ) | |||
Average invested capital less average cash | $ | 1,747,353 | $ | 1,764,095 | |||
ROIC | 14 | % | 12 | % | |||
* Trailing Twelve Months is abbreviated as TTM. | |||||||
Contacts:
Charles V. Dannewitz, Executive Vice President and Chief Financial Officer
727-532-8028 (chuck.dannewitz@techdata.com); or
Arleen Quiñones, Vice President, Investor Relations and Corporate Communications
727-532-8866 (arleen.quinones@techdata.com)
EXHIBIT 99.2
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