EX-99.2 3 scansourceearningsinfogr.htm EX-99.2 scansourceearningsinfogr
Fiscal Fourth Quarter and Full Year 2024 Earnings Our results for the year reflect a soft demand environment; however, we delivered strong margins and robust cash flow. We are executing well on our capital allocation plan to invest in strategic acquisitions and share repurchases.” Mike Baur Chair and CEO, ScanSource, Inc. Key Highlights FY24 Net Sales and Gross Profit Announced Acquisitions of High Margin, Recurring Revenue Businesses Strong Margins Reflect Strength of Business Fundamentals and Recurring Revenue Net Sales -14% Y/Y $3.3B Achieved Robust Cash Flow in FY24 © ScanSource 2024 Consolidated Specialty Technology Solutions Segment Gross Profit -11% Y/Y $399M, 12.2% margin Modern Communications & Cloud Segment STS, Net Sales -14% Y/Y $2.0B MC&C, Net Sales -13% Y/Y $1.3B STS, Gross Profit -16% Y/Y $188M, 9.4% margin MC&C, Gross Profit -6% Y/Y $211M, 16.8% margin


 
* Non-GAAP measure; adjusted ROIC represents return on invested capital For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s fourth quarter fiscal year 2024 news release issued on August 27, 2024, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section [click here]. Operating Metrics Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2025 Annual Outlook as of August 27, 2024 $0.64 per share Q4 -6%Y/Y $3.06 per share FY24 -12%Y/Y GAAP Diluted EPS $372M FY24 Operating Cash Flow $363M FY24 Free Cash Flow* 12.7% Q4 12.4% FY24 Adjusted ROIC* $43M share repurchases in FY24 © ScanSource 2024 2 $0.80 per share Q4 +5% Y/Y $3.08 per share FY24 -20% Y/Y Non-GAAP Diluted EPS* Net Sales $3.1 billion to $3.5 billion Adjusted EBITDA* $140 million to $160 million Free Cash Flow* At least $70 million Net Sales Growth per year Adjusted EBITDA Margin* Adjusted ROIC* Recurring Revenue as % of Gross Profits 5%-7.5% 4.5%-5% Mid Teens Building to 30%+ 4.58% Q4 4.31% FY24 Adjusted EBITDA Margin* Focus on Working Capital Efficiency Improvements $34.2M Q4 -15% Y/Y $140.7M FY24 -22% Y/Y Adjusted EBITDA*


 
Forward-Looking Statements This Earnings Infographic and supporting materials contain “forward-looking” statements, including ScanSource's FY25 annual outlook and mid-term goals, which involve risks and uncertainties, many of which are beyond ScanSource’s control. No undue reliance should be placed on such statements, as 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 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, 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 and customers, 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, 2024. 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 Earnings Infographic or otherwise. 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 measures, including non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP operating income margin, non-GAAP pre-tax income, non-GAAP net income, non-GAAP diluted EPS, 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. Please see the “Non-GAAP Financial Information” section in the quarterly earnings press release for additional description of ScanSource’s non-GAAP measures. ScanSource discloses forward-looking information that is not presented in accordance with GAAP with respect to adjusted EBITDA, adjusted EBITDA margin, adjusted ROIC, and free cash flow. ScanSource believes that a quantitative reconciliation of such forward-looking information to the most directly comparable GAAP financial measure cannot be made without unreasonable efforts, because a reconciliation of these non-GAAP financial measures would require an estimate of future non-operating items such as acquisitions and divestitures, restructuring costs, impairment charges and other unusual or non-recurring items. Neither the timing nor likelihood of these events, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of such forward- looking information to the most directly comparable GAAP financial measure is not provided. 3


 
Consolidated, 5-Quarter Financial Summary - for continuing operations ($ in thousands, except per share data) Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q/Q Y/Y Select reported GAAP measures: Net sales $ 746,113 $ 752,599 $ 884,792 $ 876,305 $ 947,149 (1)% (21)% Gross profit $ 97,315 $ 94,481 $ 100,748 $ 106,508 $ 108,659 3% (10)% Gross profit margin % 13.0 % 12.6 % 11.4 % 12.2 % 11.5 % 49 bp 157 bp SG&A expenses $ 68,498 $ 66,574 $ 66,921 $ 75,436 $ 74,358 3% (8)% Operating income $ 21,871 $ 17,542 $ 26,826 $ 24,084 $ 27,289 25% (20)% Operating income margin % 2.93 % 2.33 % 3.03 % 2.75 % 2.88 % 60 bp 5 bp Net income $ 16,097 $ 12,806 $ 32,726 $ 15,432 $ 17,095 26% (6)% Diluted EPS $ 0.64 $ 0.50 $ 1.29 $ 0.61 $ 0.68 28% (6)% Select reported non-GAAP measures: (a) Non-GAAP operating income $ 26,034 $ 25,306 $ 30,621 $ 28,478 $ 32,806 3% (21)% Non-GAAP operating income margin % 3.49 % 3.36 % 3.46 % 3.25 % 3.46 % 13 bp 3 bp Non-GAAP net income $ 19,921 $ 17,461 $ 21,587 $ 18,728 $ 19,213 14% 4% Non-GAAP diluted EPS $ 0.80 $ 0.69 $ 0.85 $ 0.74 $ 0.76 16% 5% Adjusted EBITDA (non-GAAP) $ 34,181 $ 33,095 $ 38,459 $ 34,919 $ 40,199 3% (15)% Adjusted EBITDA margin % (non-GAAP) 4.58 % 4.40 % 4.35 % 3.98 % 4.24 % 18 bp 34 bp Adjusted ROIC (non-GAAP) 12.7 % 12.1 % 13.2 % 11.0 % 12.9 % 60 bp (20) bp Operating cash flow (QTR) $ 54,738 $ 160,152 $ 63,224 $ 93,533 $ (15,261) Less: Capital expenditures (QTR) $ (1,270) $ (2,420) $ (2,549) $ (2,315) $ (3,431) Free cash flow (QTR) (Non-GAAP) $ 53,468 $ 157,732 $ 60,675 $ 91,218 $ (18,692) Operating cash flow (TTM) $ 371,647 $ 301,647 $ 196,333 $ 106,224 $ (35,769) Less: Capital expenditures (TTM) $ (8,555) $ (10,715) $ (10,581) $ (10,537) $ (9,979) Free cash flow (TTM) (Non-GAAP) $ 363,092 $ 290,932 $ 185,752 $ 95,687 $ (45,748) Noted: Margin % reflects measure as a percentage of net sales. ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 August 27, 2024


 
Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q/Q Y/Y Net sales $ 484,710 $ 483,704 $ 520,651 $ 509,570 $ 561,501 —% (14)% Gross profit $ 46,346 $ 45,077 $ 47,133 $ 49,183 $ 51,440 3% (10)% Gross profit margin % 9.6 % 9.3 % 9.1 % 9.7 % 9.2 % 24 bp 40 bp GAAP operating income $ 10,405 $ 9,080 $ 13,368 $ 11,872 $ 14,343 15% (27)% GAAP operating income margin % 2.15 % 1.88 % 2.57 % 2.33 % 2.55 % 27 bp (41) bp Add: Intangible amortization expense $ 1,261 $ 1,261 $ 1,261 $ 1,261 $ 1,261 Non-GAAP operating income $ 11,666 $ 10,341 $ 14,629 $ 13,133 $ 15,604 13% (25)% Non-GAAP operating income margin % 2.41 % 2.14 % 2.81 % 2.58 % 2.78 % 27 bp (37) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 10,405 $ 9,080 $ 13,368 $ 11,872 $ 14,343 15% (27)% Plus: Depreciation expense 2,019 1,953 2,144 1,931 1,954 Intangible amortization expense 1,261 1,261 1,261 1,261 1,261 Interest income 1,758 1,096 709 164 776 Other income/(expense), net 53 (57) 135 (132) (40) EBITDA (non-GAAP) 15,496 13,333 17,617 15,096 18,294 16% (15)% Adjustments: Share-based compensation expense 1,081 1,421 1,657 1,512 1,586 (24)% (32)% Adjusted EBITDA (non-GAAP) $ 16,577 $ 14,754 $ 19,274 $ 16,608 $ 19,880 12% (17)% Adjusted EBITDA margin % (non-GAAP) 3.42 % 3.05 % 3.70 % 3.26 % 3.54 % 37 bp (12) bp ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 August 27, 2024


 
Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Q/Q Y/Y Net sales $ 261,403 $ 268,895 $ 364,141 $ 366,735 $ 385,648 (3)% (32)% Gross profit $ 50,969 $ 49,404 $ 53,615 $ 57,235 $ 57,219 3% (11)% Gross profit margin % 19.5 % 18.4 % 14.7 % 15.6 % 14.8 % 110 bp 470 bp GAAP operating income $ 12,543 $ 12,989 $ 14,602 $ 12,413 $ 14,406 (3)% (13)% GAAP operating income margin % 4.80 % 4.83 % 4.01 % 3.38 % 3.74 % (3) bp 106 bp Add: Intangible amortization expense $ 2,480 $ 2,491 $ 2,776 $ 2,932 $ 2,924 Add: Tax recovery(a) $ (657) $ (515) $ (1,386) $ — $ (128) Non-GAAP operating income $ 14,366 $ 14,965 $ 15,992 $ 15,345 $ 17,202 (4)% (16)% Non-GAAP operating income margin % 5.50 % 5.57 % 4.39 % 4.18 % 4.46 % (10) bp 100 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 12,543 $ 12,989 $ 14,602 $ 12,413 $ 14,406 (3)% (13)% Plus: Depreciation expense 1,032 1,037 1,077 1,093 1,117 Intangible amortization expense 2,480 2,491 2,776 2,932 2,924 Interest income 1,527 1,557 1,409 1,161 1,309 Other income/(expense), net (427) (186) 14,325 (549) (309) EBITDA (non-GAAP) 17,155 17,888 34,189 17,050 19,447 (4)% (12)% Adjustments: Share-based compensation expense 728 968 914 1,258 1,000 Tax recovery(a) (657) (515) (1,386) — (128) Loss (gain) on sale of a business 378 — (14,533) — — Adjusted EBITDA (non-GAAP) $ 17,604 $ 18,341 $ 19,184 $ 18,308 $ 20,319 (4)% (13)% Adjusted EBITDA margin % (non-GAAP) 6.73 % 6.82 % 5.27 % 4.99 % 5.27 % (9) bp 147 bp (a) Recovery of prior period withholding taxes in Brazil ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 August 27, 2024


 
Net Sales, Constant Currency Excluding Acquisitions and Divestitures (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q4 FY24 Q4 FY23 % Change Specialty Technology Solutions: Net sales, as reported $ 484,710 $ 561,501 (13.7) % Foreign exchange impact (a) 1,099 — Net sales, constant currency excluding divestitures (non-GAAP) $ 485,809 $ 561,501 (13.5) % Modern Communications & Cloud: Net sales, as reported $ 261,403 $ 385,648 (32.2) % Foreign exchange impact (a) 3,635 — Less: Divestitures — (2,403) Net sales, constant currency excluding divestitures (non-GAAP) $ 265,038 $ 383,245 (30.8) % Consolidated: Net sales, as reported $ 746,113 $ 947,149 (21.2) % Foreign exchange impact (a) 4,734 — Less: Divestitures — (2,403) Net sales, constant currency excluding divestitures (non-GAAP) $ 750,847 $ 944,746 (20.5) % Net Sales by Geography: Q4 FY24 Q4 FY23 % Change United States and Canada: Net sales, as reported $ 663,542 $ 854,521 (22.3) % International: Net sales, as reported $ 82,571 $ 92,628 (10.9) % Foreign exchange impact (a) 4,734 — Less: Divestitures — (2,403) Net sales, constant currency excluding divestitures (non-GAAP) $ 87,305 $ 90,225 (3.2) % Consolidated: Net sales, as reported $ 746,113 $ 947,149 (21.2) % Foreign exchange impact (a) 4,734 — Less: Divestitures — (2,403) Net sales, constant currency excluding divestitures (non-GAAP) $ 750,847 $ 944,746 (20.5) % (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 June 30, 2024 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2023. ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 August 27, 2024


 
Net Sales, Constant Currency Excluding Acquisitions and Divestitures (Organic Growth) - FY ($ in thousands) Net Sales by Segment: Fiscal year ended June 30, 2024 2023 % Change Specialty Technology Solutions: Net sales, as reported $ 1,998,636 $ 2,331,030 (14.3) % Foreign exchange impact (a) (1,341) — Net sales, constant currency excluding divestitures (non-GAAP) $ 1,997,295 $ 2,331,030 (14.3) % Modern Communications & Cloud: Net sales, as reported $ 1,261,173 $ 1,456,691 (13.4) % Foreign exchange impact (a) (8,542) — Less: Divestitures (3,747) (9,140) Net sales, constant currency excluding divestitures (non-GAAP) $ 1,248,884 $ 1,447,551 (13.7) % Consolidated: Net sales, as reported $ 3,259,809 $ 3,787,721 (13.9) % Foreign exchange impact (a) (9,883) — Less: Divestitures (3,747) (9,140) Net sales, constant currency excluding divestitures (non-GAAP) $ 3,246,179 $ 3,778,581 (14.1) % Net Sales by Geography: Fiscal year ended June 30, 2024 2023 % Change United States and Canada: Net sales, as reported $ 2,921,172 $ 3,432,074 (14.9) % International: Net sales, as reported $ 338,637 $ 355,647 (4.8) % Foreign exchange impact (a) (9,883) — Less: Divestitures (3,747) (9,140) Net sales, constant currency excluding divestitures (non-GAAP) $ 325,007 $ 346,507 (6.2) % Consolidated: Net sales, as reported $ 3,259,809 $ 3,787,721 (13.9) % Foreign exchange impact (a) (9,883) — Less: Divestitures (3,747) (9,140) Net sales, constant currency excluding divestitures (non-GAAP) $ 3,246,179 $ 3,778,581 (14.1) % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the fiscal year ended June 30, 2024 into U.S. dollars using the weighted-average foreign exchange rates for the fiscal year ended June 30, 2023. ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 August 27, 2024


 
Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Adjusted return on invested capital (ROIC), annualized (a) 12.7 % 12.1 % 13.2 % 11.0 % 12.9 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 16,097 $ 12,806 $ 32,726 $ 15,432 $ 17,095 Plus: Interest expense 2,084 2,001 3,359 5,585 5,564 Income taxes 6,600 5,146 7,320 3,715 6,367 Depreciation and amortization 6,792 6,742 7,258 7,217 7,255 EBITDA (non-GAAP) 31,573 26,695 50,663 31,949 36,281 Adjustments: Tax recovery (b) (657) (515) (1,386) — (128) Acquisition and divestiture costs 503 511 703 — — Restructuring costs 435 3,923 — — — Cyberattack restoration costs 141 93 441 201 1,460 Share-based compensation 1,808 2,388 2,571 2,769 2,586 Gain on sale of business 378 — (14,533) — — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 34,181 $ 33,095 $ 38,459 $ 34,919 $ 40,199 Invested Capital Calculation Equity - beginning of quarter $ 944,053 $ 953,601 $ 915,253 $ 905,298 $ 878,895 Equity - end of quarter 924,255 944,051 953,601 915,253 905,298 Adjustments: Tax recovery, net (278) (1,648) (640) — (2,100) Share-based compensation, net 1,350 1,784 1,919 2,068 1,921 Acquisition and divestiture costs 503 511 703 — — Restructuring, net of tax 327 2,935 — — — Cyberattack restoration costs, net 106 69 329 150 1,092 Gain on sale of business 378 — (14,533) — Discontinued operations net income — — — — (1,717) Average equity 935,347 950,652 928,316 911,385 891,695 Average funded debt (c) 146,121 153,131 227,688 352,897 361,792 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,081,468 $ 1,103,783 $ 1,156,004 $ 1,264,282 $ 1,253,487 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA) with other non-GAAP adjustments (Adjusted EBITDA), annualized, divided by invested capital for the period. The annualized Adjusted EBTIDA amount is divided by days in the quarter times 365 days per year, or 366 days for a leap year. (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 Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 August 27, 2024


 
Average Adjusted Return on Invested Capital - FY ($ in thousands) Fiscal year ended June 30, 2024 2023 Adjusted return on invested capital (ROIC), annualized (a) 12.4 % 14.6 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 77,060 $ 88,092 Plus: Interest expense 13,031 19,786 Income taxes 22,781 33,758 Depreciation and amortization 28,009 28,614 EBITDA (non-GAAP) 140,881 170,250 Adjustments: Tax recovery (b) 4,358 — Acquisition and divestiture costs 1,717 — Restructuring costs (2,558) (2,986) Cyberattack restoration costs 874 1,460 Share-based compensation 9,537 11,219 Gain on sale of business (14,155) — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 140,654 $ 179,943 Invested Capital Calculation Equity - beginning of year $ 905,298 $ 806,528 Equity - end of year 924,255 905,298 Adjustments: Tax recovery, net (2,566) (3,985) Share-based compensation, net 7,120 8,326 Acquisition and divestiture costs 1,717 — Restructuring, net of tax 3,262 — Cyberattack restoration costs, net 655 1,092 Gain on sale of business (14,155) — Discontinued operations net income — (1,717) Average equity 912,793 857,771 Average funded debt (c) 220,528 372,235 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,133,321 $ 1,230,006 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA) with other non-GAAP adjustments (Adjusted EBITDA), annualized, divided by invested capital for the period. (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 Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 August 27, 2024


 
Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Consolidated debt (Q/E) $ 144,056 $ 145,881 $ 168,634 $ 248,108 $ 329,901 Less: Cash and cash equivalents of continuing operations (Q/E) (185,460) (159,050) (44,987) (42,647) (36,178) Net debt (Q/E) (non-GAAP) $ (41,404) $ (13,169) $ 123,647 $ 205,461 $ 293,723 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 16,097 $ 12,806 $ 32,726 $ 15,432 $ 17,095 Plus: Interest expense 2,084 2,001 3,359 5,585 5,564 Income taxes 6,600 5,146 7,320 3,715 6,367 Depreciation and amortization 6,792 6,742 7,258 7,217 7,255 EBITDA (non-GAAP) 31,573 26,695 50,663 31,949 36,281 Adjustments: Acquisition and divestiture costs 503 511 703 — — Tax recovery (a) (657) (515) (1,386) — (128) Cyberattack restoration costs 141 93 441 201 1,460 Share-based compensation 1,808 2,388 2,571 2,769 2,586 Loss (gain) on sale of business 378 — (14,533) — — Restructuring costs 435 3,923 — — — Adjusted EBITDA (non-GAAP) $ 34,181 $ 33,095 $ 38,459 $ 34,919 $ 40,199 Adjusted EBITDA, TTM (non-GAAP) (b) $ 140,654 $ 146,672 Net Debt / Adjusted EBITDA, TTM (non-GAAP) (0.3) x (0.1) x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 August 27, 2024


 
Working Capital, 5-Quarter Summary ($ in thousands) Q4 FY24 Q3 FY24 Q2 FY24 Q1 FY24 Q4 FY23 Accounts Receivable (Q/E) $ 581,523 $ 589,847 $ 662,799 $ 691,669 $ 753,236 Days sales outstanding in receivables 71 71 68 71 72 Inventory (Q/E) $ 512,634 $ 529,163 $ 575,137 $ 656,170 $ 757,574 Inventory turns 5.0 4.8 5.1 4.4 4.4 Accounts payable (Q/E) $ 587,984 $ 555,733 $ 540,642 $ 617,594 $ 691,119 Paid for inventory days* 4.2 11.2 15.7 16.8 17.5 Working Capital (Q/E) (AR+INV-AP) $ 506,173 $ 563,277 $ 697,294 $ 730,245 $ 819,691 Cash conversion cycle 75 82 84 88 90 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 August 27, 2024


 
Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended June 30, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business(a) Cyberattack restoration costs Non-GAAP measure SG&A expenses $68,498 $— $(503) $(435) $657 $— $(141) $68,076 Operating income 21,871 3,741 503 435 (657) — 141 26,034 Pre-tax income 22,697 3,741 503 435 (657) 378 141 27,238 Net income 16,097 2,788 503 327 (278) 378 106 19,921 Diluted EPS $0.64 $0.11 $0.02 $0.01 $(0.01) $0.02 $— $0.80 (a) Reflects adjustment to the gain on the sale of the UK-based intY business. ($ in thousands) Quarter ended March 31, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $66,574 $— $(511) $(3,923) $515 $— $(93) $62,562 Operating income 17,542 3,752 511 3,923 (515) — 93 25,306 Pre-tax income 17,952 3,752 511 3,923 (515) — 93 25,716 Net income 12,806 2,788 511 2,935 (1,648) — 69 17,461 Diluted EPS $0.50 $0.11 $0.02 $0.12 $(0.06) $— $— $0.69 ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 August 27, 2024


 
Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended December 31, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business 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) $(0.50) $(0.01) $0.85 ($ in thousands) Quarter ended September 30, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business 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 ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 August 27, 2024


 
Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended June 30, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring 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 ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 15 August 27, 2024


 
Operating Income, Net Income & EPS - FY ($ in thousands) Year ended June 30, 2024 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs (a) Restructuring costs Tax recovery, net Gain on sale of business (b) Cyberattack restoration costs Non-GAAP measure SG&A expenses $277,428 $— $(1,717) $— $2,558 $— $(874) $277,395 Operating income 90,324 15,723 1,717 4,358 (2,558) — 874 110,438 Pre-tax income 99,841 15,723 1,717 4,358 (2,558) (14,155) 874 105,800 Net income 77,060 11,697 1,717 3,262 (2,566) (14,155) 655 77,670 Diluted EPS $3.06 $0.46 $0.07 $0.13 $(0.10) $(0.56) $0.03 $3.08 ($ in thousands) Year ended June 30, 2023 Reported GAAP measure Intangible amortization expense Acquisition & divestiture costs Restructuring costs Tax recovery, net Gain on sale of business Cyberattack restoration costs Non-GAAP measure SG&A expenses $285,695 — $— $— $2,986 $— $(1,460) $287,221 Operating income 135,886 16,746 — — (2,986) — 1,460 151,106 Pre-tax income 121,850 16,746 — — (2,986) — 1,460 137,070 Net income 88,092 12,489 — — (3,985) — 1,092 97,688 Diluted EPS $3.47 $0.49 $— $— $(0.16) $— $0.04 $3.85 (a) Acquisition and divestiture costs for the fiscal year June 30, 2024 are generally non-deductible for tax purposes. (b) Reflects gain on the sale of the UK-based intY business. This transaction resulted in a capital loss for tax purposes. The Company did not record a tax provision on the capital loss since there were no offsetting capital gains. ScanSource, Inc. Earnings Infographic Q4 FY2024 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 16 August 27, 2024