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: October 25, 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 September 30, 2012: | |
Net sales | $733.6 million |
Net income | $17.6 million |
Diluted EPS | $0.63 per share |
ScanSource, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(in thousands) | ||||||||
September 30, 2012 | June 30, 2012* | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 38,731 | $ | 29,173 | ||||
Accounts receivable, less allowance of | 468,718 | 470,808 | ||||||
$28,744 at September 30, 2012 | ||||||||
$27,349 at June 30, 2012 | ||||||||
Inventories | 471,014 | 475,479 | ||||||
Prepaid expenses and other current assets | 38,730 | 41,846 | ||||||
Deferred income taxes | 15,138 | 14,624 | ||||||
Total current assets | 1,032,331 | 1,031,930 | ||||||
Property and equipment, net | 48,328 | 48,785 | ||||||
Goodwill | 54,187 | 53,885 | ||||||
Other non-current assets, including identifiable intangible assets | 73,244 | 67,206 | ||||||
Total assets | $ | 1,208,090 | $ | 1,201,806 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Short-term borrowings | $ | — | $ | 4,268 | ||||
Current portion of contingent consideration | 9,816 | 4,976 | ||||||
Accounts payable | 384,111 | 419,683 | ||||||
Accrued expenses and other current liabilities | 62,210 | 67,776 | ||||||
Income taxes payable | 10,058 | 1,698 | ||||||
Total current liabilities | 466,195 | 498,401 | ||||||
Deferred income taxes | 3,318 | — | ||||||
Long-term debt | 5,429 | 5,429 | ||||||
Borrowings under revolving credit facility | 12,215 | — | ||||||
Long-term portion of contingent consideration | 7,526 | 11,677 | ||||||
Other long-term liabilities | 37,271 | 33,988 | ||||||
Total liabilities | 531,954 | 549,495 | ||||||
Shareholders' equity: | ||||||||
Common stock | 142,604 | 139,557 | ||||||
Retained earnings | 552,086 | 534,445 | ||||||
Accumulated other comprehensive income (loss) | (18,554 | ) | (21,691 | ) | ||||
Total shareholders' equity | 676,136 | 652,311 | ||||||
Total liabilities and shareholders' equity | $ | 1,208,090 | $ | 1,201,806 |
* | Derived from audited financial statements. |
ScanSource, Inc. and Subsidiaries | |||||||
Condensed Consolidated Income Statements (Unaudited) | |||||||
(in thousands) | |||||||
Quarter ended September 30, | |||||||
2012 | 2011 | ||||||
Net sales | $ | 733,605 | $ | 770,259 | |||
Cost of goods sold | 659,565 | 691,169 | |||||
Gross profit | 74,040 | 79,090 | |||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 47,061 | 46,569 | |||||
Change in fair value of contingent consideration | 764 | 894 | |||||
Operating income | 26,215 | 31,627 | |||||
Other expense (income): | |||||||
Interest expense | 124 | 486 | |||||
Interest income | (633 | ) | (450 | ) | |||
Other, net | (15 | ) | 3,530 | ||||
Income before income taxes | 26,739 | 28,061 | |||||
Provision for income taxes | 9,097 | 9,681 | |||||
Net income | $ | 17,642 | $ | 18,380 | |||
Per share data: | |||||||
Weighted-average shares outstanding, basic | 27,618 | 27,138 | |||||
Net income per common share, basic | $ | 0.64 | $ | 0.68 | |||
Weighted-average shares outstanding, diluted | 27,901 | 27,551 | |||||
Net income per common share, diluted | $ | 0.63 | $ | 0.67 |
ScanSource, Inc. and Subsidiaries | |||||||||||||
Supplementary Information (Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
Non-GAAP | |||||||||||||
Net Sales by Geographic Segment: | Quarter ended September 30, | % Change | |||||||||||
2012 | 2011 | % Change | Excluding FX(a) | ||||||||||
North American (U.S. and Canada) | $ | 545,813 | $ | 573,472 | (4.8 | )% | (4.8 | )% | |||||
International | 187,792 | 196,787 | (4.6 | )% | 7.8 | % | |||||||
Consolidated | $ | 733,605 | $ | 770,259 | (4.8 | )% | (1.6 | )% | |||||
Non-GAAP Financial Information: | Quarter ended September 30, | ||||||||||||
2012 | 2011 | ||||||||||||
Return on invested capital (ROIC), annualized (b) | 17.0 | % | 18.2 | % | |||||||||
Reconciliation of EBITDA to Net Income | |||||||||||||
Net income - GAAP | $ | 17,642 | $ | 18,380 | |||||||||
Plus: Income taxes | 9,097 | 9,681 | |||||||||||
Plus: Interest expense | 124 | 486 | |||||||||||
Plus: Depreciation and amortization | 2,314 | 2,582 | |||||||||||
EBITDA (numerator for ROIC) | $ | 29,177 | $ | 31,129 | |||||||||
Invested Capital Calculation | |||||||||||||
Equity - beginning of quarter | $ | 652,311 | $ | 587,394 | |||||||||
Equity - end of quarter | 676,136 | 597,658 | |||||||||||
Average equity | 664,224 | 592,526 | |||||||||||
Average funded debt (c) | 16,563 | 86,780 | |||||||||||
Invested capital (denominator for ROIC) | $ | 680,787 | $ | 679,306 | |||||||||
Notes: | |||||||||||||
(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 September 30, 2012 into U.S. dollars using the weighted average foreign exchange rates for the quarter ended September 30, 2011. International net sales excluding the translation impact of foreign currencies for the quarter ended September 30, 2012, as adjusted, totaled $212.2 million. | |||||||||||||
(b) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized and divided by invested capital for the period. | |||||||||||||
(c) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. |