SC | 57-0965380 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
¨ | 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)) |
ScanSource, Inc. | ||||||
Date: August 16, 2012 | By: | /s/ Richard P. Cleys | ||||
Name: | Richard P. Cleys | |||||
Its: | Vice President and Chief Financial Officer |
Contact: | ||
Richard P. Cleys | Mary M. Gentry | |
Chief Financial Officer | - or - | Treasurer and Director, Investor Relations |
ScanSource, Inc. | ScanSource, Inc. | |
(864) 286-4358 | (864) 286-4892 |
Quarter ended June 30, 2012: | Fiscal Year ended June 30, 2012: | |||
Net sales | $ 754.5 million | Net sales | $ 3,015.3 million | |
Net income | $ 19.8 million | Net income | $ 74.3 million | |
Diluted EPS | $ 0.71 per share | Diluted EPS | $ 2.68 per share |
ScanSource, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(in thousands) | ||||||||
June 30, 2012 | June 30, 2011* | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 29,173 | $ | 28,747 | ||||
Accounts receivable, less allowance of | 470,808 | 462,102 | ||||||
$27,349 at June 30, 2012 | ||||||||
$26,562 at June 30, 2011 | ||||||||
Inventories | 475,479 | 467,350 | ||||||
Prepaid expenses and other assets | 41,846 | 35,421 | ||||||
Deferred income taxes | 14,624 | 15,894 | ||||||
Total current assets | 1,031,930 | 1,009,514 | ||||||
Property and equipment, net | 48,785 | 36,819 | ||||||
Goodwill | 53,885 | 59,090 | ||||||
Other assets, including identifiable intangible assets | 67,206 | 76,765 | ||||||
Total assets | $ | 1,201,806 | $ | 1,182,188 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | 4,268 | $ | 3,164 | ||||
Current portion of contingent consideration | 4,976 | 2,398 | ||||||
Accounts payable | 419,683 | 406,453 | ||||||
Accrued expenses and other liabilities | 67,776 | 60,157 | ||||||
Income taxes payable | 1,698 | 5,175 | ||||||
Total current liabilities | 498,401 | 477,347 | ||||||
Long-term debt | 5,429 | 30,429 | ||||||
Borrowings under revolving credit facility | — | 26,513 | ||||||
Long-term portion of contingent consideration | 11,677 | 21,396 | ||||||
Other long-term liabilities | 33,988 | 39,109 | ||||||
Total liabilities | 549,495 | 594,794 | ||||||
Shareholders' equity: | ||||||||
Common stock | 139,557 | 123,608 | ||||||
Retained earnings | 534,445 | 460,157 | ||||||
Accumulated other comprehensive income (loss) | (21,691 | ) | 3,629 | |||||
Total shareholders' equity | 652,311 | 587,394 | ||||||
Total liabilities and shareholders' equity | $ | 1,201,806 | $ | 1,182,188 |
* | Derived from audited financial statements at June 30, 2011. |
ScanSource, Inc. and Subsidiaries | ||||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Quarter ended June 30, | Year ended June 30, | |||||||||||||||
2012 | 2011* | 2012 | 2011* | |||||||||||||
Net sales | $ | 754,470 | $ | 734,891 | $ | 3,015,296 | $ | 2,666,531 | ||||||||
Cost of goods sold | 680,643 | 660,520 | 2,713,272 | 2,392,224 | ||||||||||||
Gross profit | 73,827 | 74,371 | 302,024 | 274,307 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 46,634 | 45,256 | 188,388 | 161,326 | ||||||||||||
Change in fair value of contingent consideration | (1,123 | ) | (128 | ) | 120 | (128 | ) | |||||||||
Operating income | 28,316 | 29,243 | 113,516 | 113,109 | ||||||||||||
Other expense (income): | ||||||||||||||||
Interest expense | 150 | 541 | 1,639 | 1,723 | ||||||||||||
Interest income | (653 | ) | (294 | ) | (2,886 | ) | (1,212 | ) | ||||||||
Other, net | 188 | 220 | 3,552 | 712 | ||||||||||||
Income before income taxes | 28,631 | 28,776 | 111,211 | 111,886 | ||||||||||||
Provision for income taxes | 8,846 | 9,115 | 36,923 | 38,363 | ||||||||||||
Net income | $ | 19,785 | $ | 19,661 | $ | 74,288 | $ | 73,523 | ||||||||
Per share data: | ||||||||||||||||
Net income per common share, basic | $ | 0.72 | $ | 0.73 | $ | 2.72 | $ | 2.74 | ||||||||
Weighted-average shares outstanding, basic | 27,579 | 27,056 | 27,362 | 26,872 | ||||||||||||
Net income per common share, diluted | $ | 0.71 | $ | 0.71 | $ | 2.68 | $ | 2.70 | ||||||||
Weighted-average shares outstanding, diluted | 27,886 | 27,515 | 27,751 | 27,246 |
* | Derived from audited financial statements at June 30, 2011 |
ScanSource, Inc. and Subsidiaries | ||||||||||||||||
Supplementary Information (Unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Net Sales by Geographic Segment: | Quarter ended June 30, | |||||||||||||||
2012 | 2011 | % Change | ||||||||||||||
North American (U.S. and Canada) | $ | 570,219 | $ | 543,422 | 4.9 | % | ||||||||||
International | 184,251 | 191,469 | (3.8 | )% | ||||||||||||
Consolidated | $ | 754,470 | $ | 734,891 | 2.7 | % | ||||||||||
Year ended June 30, | ||||||||||||||||
2012 | 2011 | % Change | ||||||||||||||
North American (U.S. and Canada) | $ | 2,236,459 | $ | 2,022,668 | 10.6 | % | ||||||||||
International | 778,837 | 643,863 | 21.0 | % | ||||||||||||
Consolidated | $ | 3,015,296 | $ | 2,666,531 | 13.1 | % | ||||||||||
Non-GAAP Financial Information: | Quarter ended June 30, | |||||||||||||||
2012 | 2011 | |||||||||||||||
Return on invested capital (ROIC), annualized (a) | 18.2 | % | 19.9 | % | ||||||||||||
Reconciliation of EBITDA to Net Income | ||||||||||||||||
Net income - GAAP | $ | 19,785 | $ | 19,661 | ||||||||||||
Plus: Income taxes | 8,846 | 9,115 | ||||||||||||||
Plus: Interest expense | 150 | 541 | ||||||||||||||
Plus: Depreciation and amortization | 2,328 | 2,312 | ||||||||||||||
EBITDA (numerator for ROIC) | $ | 31,109 | $ | 31,629 | ||||||||||||
Invested Capital Calculation | ||||||||||||||||
Equity - beginning of quarter | $ | 642,450 | $ | 562,071 | ||||||||||||
Equity - end of quarter | 652,311 | 587,394 | ||||||||||||||
Average equity | 647,381 | 574,733 | ||||||||||||||
Average funded debt (b) | 41,324 | 61,310 | ||||||||||||||
Invested capital (denominator for ROIC) | $ | 688,705 | $ | 636,043 | ||||||||||||
Year ended June 30, | ||||||||||||||||
2012 | 2011 | |||||||||||||||
Return on invested capital (ROIC) (a) | 17.2 | % | 20.6 | % | ||||||||||||
Reconciliation of EBITDA to Net Income | ||||||||||||||||
Net income - GAAP | $ | 74,288 | $ | 73,523 | ||||||||||||
Plus: Income taxes | 36,923 | 38,363 | ||||||||||||||
Plus: Interest expense | 1,639 | 1,723 | ||||||||||||||
Plus: Depreciation and amortization | 9,922 | 6,662 | ||||||||||||||
EBITDA (numerator for ROIC) | $ | 122,772 | $ | 120,271 | ||||||||||||
Invested Capital Calculation | ||||||||||||||||
Equity - beginning of year | $ | 587,394 | $ | 486,851 | ||||||||||||
Equity - end of year | 652,311 | 587,394 | ||||||||||||||
Average equity | 619,853 | 537,123 | ||||||||||||||
Average funded debt (b) | 92,125 | 46,186 | ||||||||||||||
Invested capital (denominator for ROIC) | $ | 711,978 | $ | 583,309 | ||||||||||||
Notes: | ||||||||||||||||
(a) Calculated as net income plus income taxes, interest expense, depreciation and amortization (EBITDA), annualized and divided by invested capital for the period | ||||||||||||||||
(b) Daily average interest-bearing debt |