-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O5jLOw0fbXzy2MyiSEUyvwnv8AbX76/sJkEh5VVYl1vo+sQEAE85h30qkF6XeanY QCOWI6IeDUDsw+S9L46GRQ== 0000931763-99-000441.txt : 19990217 0000931763-99-000441.hdr.sgml : 19990217 ACCESSION NUMBER: 0000931763-99-000441 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCANSOURCE INC CENTRAL INDEX KEY: 0000918965 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045] IRS NUMBER: 570965380 STATE OF INCORPORATION: SC FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-26926 FILM NUMBER: 99539644 BUSINESS ADDRESS: STREET 1: 6 LOGUE COURT STE G CITY: GREENVILLE STATE: SC ZIP: 29615 BUSINESS PHONE: 8032882432 MAIL ADDRESS: STREET 1: 6 LOGUE COURT STE G CITY: GREENVILLE STATE: SC ZIP: 29615 10-Q 1 FORM 10-Q Securities and Exchange Commission Washington, D.C. 20549 Form 10-Q (Mark One) [x] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended December 31, 1998 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 1-12842 ScanSource, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) South Carolina 57-0965380 - -------------------------------- ------------------------------------ (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporated or organization) 6 Logue Court, Suite G Greenville, SC 29615 - ---------------------------------- ------------------------------------ (Address of principal executive (Zip Code) offices) (864) 288-2432 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) 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 for 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 ------- -------- As of December 31, 1998, 5,475,810 shares of the registrant's common stock, no par value, were outstanding. SCANSOURCE, INC. INDEX FORM 10-Q December 31, 1998
PART I. FINANCIAL INFORMATION Page No. -------- Item 1. Consolidated Financial Statements (Unaudited)........... 2 Condensed Balance Sheets................................ 2 Condensed Income Statements............................. 4 Condensed Statements of Cash Flows...................... 5 Notes to Condensed Financial Statements................. 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.................... 8 Item 3. Quantitative and Qualitative Disclosures About Market Risk................................................... 12 PART II. OTHER INFORMATION Item 1. Legal Proceedings....................................... 13 Item 2. Changes in Securities................................... 13 Item 3. Defaults Upon Senior Securities......................... 13 Item 4. Submission of Matters to a Vote of Security-Holders..... 13 Item 5. Other Information....................................... 14 Item 6. Exhibits and Reports on Form 8-K........................ 14 SIGNATURES................................................................. 15
1 PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements SCANSOURCE, INC. CONDENSED BALANCE SHEETS June 30, December 31, 1998 1998 ------- ------- (Note 1) (Note 1) (Unaudited) Assets (In thousands) ------ Current assets: Cash............................................. $ 88 2,007 Receivables: Trade, less allowance for doubtful accounts of $2,045,000 at June 30, 1998 and $2,709,000 at December 31, 1998................. 28,198 35,346 Other............................................... 1,524 1,299 ------- ------- 29,722 36,645 Inventories......................................... 31,444 45,264 Prepaid expenses and other assets................... 268 306 Deferred income taxes............................... 2,381 2,381 ------- ------- Total current assets............................ 63,903 86,603 ------- ------- Property and equipment, net.......................... 6,491 6,786 Intangible assets, net............................... 1,532 1,466 Other assets......................................... 186 329 ------- ------- Total assets.................................... $72,112 $95,184 ======= ======= See notes to condensed financial statements. 2 SCANSOURCE, INC. CONDENSED BALANCE SHEETS (Continued) June 30, December 31, Liabilities and Shareholders' Equity 1998 1998 ------------------------------------ -------- ------------ (Note 1) (Note 1) (Unaudited) (In thousands) Current liabilities: Current portion of long-term debt........................ $ 22 $ 22 Trade accounts payable................................... 14,029 37,643 Accrued compensation..................................... 456 875 Accrued expenses and other liabilities................... 1,242 1,387 Income taxes payable..................................... --- 90 ------- ------- Total current liabilities............................... 15,749 40,017 Deferred income taxes.................................... 24 24 Long-term debt........................................... 1,697 1,686 Line of credit........................................... 4,861 --- ------- ------- Total liabilities...................................... 22,331 41,727 ------- ------- Shareholders' equity: Preferred stock, no par value; 3,000,000 shares authorized, none issued and outstanding................ --- --- Common stock, no par value; 10,000,000 shares authorized, 5,353,310 and 5,475,810 shares issued and outstanding at June 30, 1998 and December 31, 1998, respectively........................ 38,710 39,113 Retained earnings........................................ 11,071 14,344 ------- ------- Total shareholders' equity............................. 49,781 53,457 ------- ------- Total liabilities and shareholders' equity............. $72,112 $95,184 ======= ======= See notes to condensed financial statements. 3 SCANSOURCE, INC. CONDENSED INCOME STATEMENTS (UNAUDITED)
Quarter Ended Six Months Ended December 31, December 31, 1997 1998 1997 1998 ---- ---- ---- ---- (In thousands except per share data) Net sales..................................... $41,677 65,543 79,610 126,262 Cost of goods sold............................ 36,149 57,931 69,509 111,664 ------- ------ ------ ------- Gross profit................................ 5,528 7,612 10,101 14,598 Selling, general and administrative expenses.................................... 3,750 4,854 6,708 9,313 Amortization of intangibles................... 30 34 50 67 ------- ------ ------ ------- Total operating expenses...................... 3,780 4,888 6,758 9,380 ------- ------ ------ ------- Operating income............................ 1,748 2,724 3,343 5,218 Other income (expense): Interest income (expense), net.............. 214 10 111 (32) Other income (expense), net................. (4) 8 (34) 10 ------- ------ ------ ------- Total other income (expense)............. 210 18 77 (22) ------- ------ ------ ------- Income before income taxes.................... 1,958 2,742 3,420 5,196 Income taxes................................ 728 1,015 1,263 1,923 ------- ------ ------ ------- Net income.................................... $ 1,230 1,727 2,157 3,273 ======= ====== ====== ======= Basic EPS Net income per share......................... $ .25 .32 .51 .60 ======= ====== ====== ======= Weighted average shares outstanding.......... 4,904 5,464 4,199 5,448 ======= ====== ====== ======= Diluted EPS Net income per share......................... $ .24 .31 .48 .58 ======= ====== ====== ======= Weighted average shares outstanding.......... 5,209 5,624 4,466 5,604 ======= ====== ====== =======
See notes to condensed financial statements. 4 SCANSOURCE, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended December 31, 1997 1998 ------- ------- (In thousands) Cash flows from operating activities: Net income...................................................... $ 2,157 3,273 Adjustments to reconcile net income to cash (used in) provided by operating activities: Depreciation............................................. 321 516 Amortization of intangible assets........................ 50 66 Changes in operating assets and liabilities: Trade receivables........................................ (6,787) (7,148) Other receivables........................................ (425) 225 Inventories.............................................. (8,621) (13,820) Prepaid expenses and other............................... (104) (38) Trade accounts payable................................... 3,852 23,614 Accrued compensation..................................... 103 419 Accrued expenses and other liabilities................... 553 145 Income tax payable....................................... (257) 90 Other noncurrent assets.................................. 199 (143) ------- ------- Net cash (used in) provided by operating activities............. (8,959) 7,199 Cash flows from investing activities: Capital expenditures, net....................................... (686) (811) Cash paid in business acquisition............................... (700) --- ------- ------- Net cash used in investing activities........................... (1,386) (811) Cash flows from financing activities: Borrowings (payments) on line of credit......................... (5,391) (4,861) Proceeds from option exercises.................................. 67 403 Payments on building loan....................................... --- (11) Proceeds from stock offering.................................... 26,212 --- ------- ------- Net cash provided by (used in) financing activities............. 20,888 (4,469) Increase in cash................................................ 10,543 1,919 Cash at beginning of period.............................................. 429 88 ------- ------- Cash at end of period.................................................... $10,972 2,007 ======= =======
5 SCANSOURCE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (1) Basis of Presentation The interim financial information included herein is unaudited. Certain information and footnote disclosures normally included in the financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), although the Company believes that the disclosures made are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements and related notes contained in the Company's annual report on Form 10-K for the period ended June 30, 1998. Other than as indicated herein, there have been no significant changes from the financial data published in that report. In the opinion of management, such unaudited information reflects all adjustments, consisting only of normal recurring accruals and other adjustments as disclosed herein, necessary for a fair presentation of the unaudited information. In February 1998, the Company merged with The CTI Authority, Inc. ("CTI") in a stock-for-stock transaction accounted for as a pooling-of-interest. Accordingly, the consolidated financial statements for the periods prior to the combination have been restated to include the accounts and results of CTI. Results for interim periods are not necessarily indicative of results expected for the full year, or for any subsequent period. The balance sheet for June 30, 1998 has been derived from the audited balance sheet for that date. (2) Significant Accounting Policies Revenue Recognition - The Company records revenue when products are shipped. Inventories - Inventories consisting of point of sale and bar code equipment are stated at the lower of cost (first-in, first-out method) or market. Net Income Per Share - Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of common and potential common shares outstanding. Diluted weighted average common and potential common shares include common shares and stock options using the treasury stock method. Basic and diluted weighted average shares differed only by the effect of dilutive stock options. There were no differences between the net income 6 used to calculate basic and diluted net income per share for the three and six months ended December 31, 1997 and 1998. (3) Line of Credit In January 1999 the Company amended its bank line of credit extending its term to October 31, 2001 and raising its borrowing limit to $35 million, based upon 80% of eligible accounts receivable and 40% of eligible inventory at the 30 day LIBOR rate of interest plus a rate varying from 1.50% to 2.00% tied to the Company's debt-to-net worth ratio ranging from .75:1 to 2:1. Since there were no borrowings on the line of credit, $35 million was available at December 31, 1998. (4) Recent Accounting Pronouncements In June 1998, the FASB issued Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS No. 133") SFAS No. 133 requires that an enterprise recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. SFAS No. 133 is effective for all fiscal quarters and all fiscal years beginning after June 15, 1999. The Company is currently assessing the potential effects of SFAS No. 133 on its financial position. 7 PART I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Net Sales. Net sales for the quarter ended December 31, 1998 increased 57.1% to $65.5 million from $41.7 million for the comparable prior year quarter. Net sales increased 58.7% to $126.3 million for the six months ended December 31, 1998 from $79.6 million for the comparable prior year period. Growth of net sales resulted primarily from additions to the Company's sales force, competitive product pricing, selective expansion of its product line, and increased marketing efforts to specialty technology resellers. Gross Profit. Gross profit for the quarter ended December 31, 1998 increased 38.2% to $7.6 million from $5.5 million for the comparable prior year quarter. Gross profit increased 44.6% to $14.6 million for the six months ended December 31, 1998 from $10.1 million for the comparable prior year period. Gross profit as a percentage of sales for both the quarter and six months ended December 31, 1998 was 11.6% compared to 13.2% and 12.7%, respectively, for the comparable prior year periods. The decrease in gross profit as a percentage of sales is the result of a change in the mix of sales of more lower-margin products and the volume discounts provided to resellers on large orders. Operating Expenses. Operating expenses, which include selling, general and administrative expenses and amortization, for the quarter ended December 31, 1998 increased 28.9% to $4.9 million compared to $3.8 million for the comparable prior year period. Operating expenses for the six months ended December 31, 1998 increased 38.2% to $9.4 million from $6.8 million for the comparable prior year period. Operating expenses as a percentage of sales was 7.5% and 7.4%, respectively, for the quarter and six months ended December 31, 1998, compared to 9.1% and 8.5%, respectively, for the comparable prior year periods. Generally, lower gross margin sales require the Company to provide fewer value- added services causing a corresponding decrease in operating expenses. The general and administrative portion of operating expenses also decreased as a percentage of sales due to efficiencies gained through increased sales volume. Operating Income. Operating income for the quarter ended December 31, 1998 increased 58.8% to $2.7 million from $1.7 million for the same period in 1997, driven by the improvement in gross profit as described above. Operating income increased 57.6% to $5.2 million for the six months ended December 31, 1998 from $3.3 million for the comparable prior year period. Operating income as a percentage of sales was 4.1% for both the quarter and six months ended December 31, 1998, compared to 4.1% for both of the comparable prior year periods. Other Income (Expense). Total other income (expense) net consists of interest income (expense), net, and other expense, net. Net interest income for the quarters ended December 31, 1998 and 1997 was $10,000 and $214,000, respectively, resulting from interest income from 8 invested cash. The 1998 amount was offset by interest expense of approximately $40,000 paid on the building loan. Net interest expense for the six months ended December 31, 1998 was $32,000 resulting from interest expense on the Company's line of credit and the building loan of $107,000 offset by interest income of $75,000. Income Taxes. Tax expense was provided at a 37% effective rate for both periods presented, and represented the state and federal tax expected to be due after annualizing income to the fiscal year end. Net Income. Improved operating income resulted in net income increasing 41.7% to $1.7 million for the quarter ended December 31, 1998 from $1.2 million for the year-earlier quarter. Net income for the six months ended December 31, 1998 increased 50.0% to $3.3 million from $2.2 million for the comparable prior year period. Net income as a percentage of sales was 2.6% for both the quarter and six months ended December 31, 1998 compared to 2.9% and 2.8%, respectively, for the quarter and six months ended December 31, 1997. Liquidity and Capital Resources The Company's primary sources of liquidity are results of operations, borrowings under its revolving credit facility, and proceeds from the sales of securities. In October 1997 the Company completed a secondary offering of stock which provided the Company approximately $26.2 million for general corporate purposes. In January 1999 the Company amended its bank revolving credit facility extending its term to October 31, 2001 and raising its borrowing limit to $35.0 million at an interest rate equal to the 30 day LIBOR, plus a rate varying from 1.50% to 2.00% tied to the Company's debt-to-net worth ratio ranging from .75:1 to 2:1. The borrowing base available under the credit facility is limited to 80% of eligible accounts receivable and 40% of eligible inventory. The revolving credit is secured by accounts receivable and inventory. Since there were no borrowings on the line of credit, $35 million was available at December 31, 1998. In June 1998 the Company assumed a non-recourse loan for $1,719,000 in connection with the purchase of its office building. The loan's fixed interest rate is 9.19%. The loan matures in October 2006 and is collateralized by the land and building acquired. For the six months ended December 31, 1998 net cash of $7.2 million was provided by operating activities compared to $9.0 million used in operations for the six months ended December 31, 1997. Cash provided by operations was primarily from an increase in accounts payable which exceeded the amount needed to pay for increases in receivables and inventory. Cash used in investing activities of $811,000 for the quarter ended December 31, 1998 was for capital expenditures. Cash used in investing activities for the six months ended December 31, 1997 included $700,000 for cash paid in business combination and $686,000 for capital expenditures, including $170,000 for the Company's computer conversion to a UNIX-based operating system. Cash used in financing activities for the six months ended December 31, 1998 was $4.5 million, primarily from payments on the Company's line of credit. Cash provided by financing 9 activities for the six months ended December 31, 1997 was $20.9 million. For 1997, cash of $26.2 million and $67,000 was provided from the sale of common stock in an October 1997 public offering and from the exercise of stock options, respectively. Approximately $6.6 million of this cash was used to pay down the outstanding balance under the company's line of credit, compared to $1.3 million borrowed on the line of credit from the same period. The Company's current ratios at December 31, 1998 and at June 30, 1998 were 2.16 and 4.06, respectively. Year 2000 It is possible that the Company's currently installed computer systems, software products or other business systems, or those of the Company's vendors or resellers, working either alone or in conjunction with other software or systems, will not accept input of, store, manipulate and output dates in the years 1999, 2000 or thereafter without error of interruption (commonly known as the "Y2K" problem). Following is a summary of the initiatives the Company has taken to address this issue. The Company has conducted a review of its computer systems, including its primary business software, and believes that such software is Y2K compliant. The Company is also querying its vendors and resellers as to their progress in identifying and addressing problems that their computer systems may face in correctly processing date information as the year 2000 approaches and is reached. Since early 1996, ScanSource, in support of its long-term plans, has significantly upgraded and continues to upgrade its information technology (IT) and communication systems. These upgrades include: enterprise-wide application system, a Digital Alpha Server, personal computers "PC's", PC software (standardized on Windows NT, Windows 9x, Microsoft Office Suite and Lotus Notes), local area networks (LAN's), LAN software (Novell NetWare, Windows NT), wide area networks (WAN's) and network integration of advanced fax, printer, and copier systems. As a result, a large portion of ScanSource's IT and non-voice communication systems, along with many of its voice communication systems, are now Y2K compliant. ScanSource's exceptions to the Y2K compliance are: certain PC's require BIOS and/or operating system and application system upgrades; certain network operating systems need to be upgraded; other intelligent office equipment in a stand alone mode such as fax machines, copiers, printers, etc. may not be Y2K compliant. These issues are anticipated to be remediated by the end of the first calendar quarter of 1999 at a cost not expected to be material. The IT System software upgrades are being executed under agreements with software vendors, and the BIOS upgrades to certain hardware are being executed under similar arrangements with hardware vendors. The replacement cost of non- remediable PC's, network hardware components, copiers and fax machines is not expected to be material. ScanSource is not yet in a position to estimate the cost of Non-IT system and third party compliance issues, but has no reason to believe, based upon its evaluations done to date, that such 10 There can be no assurance that the Company's systems will address all Y2K problems, that its current and ongoing efforts will identify all such problems in its own computer systems or those of its vendors or resellers in advance of their occurrence, or that the Company will be able to successfully remedy any problems that are discovered. To date the expenses of the Company's efforts to identify and address such problems have not been material. However, the expenses or liabilities to which the Company may become subject as a result of any such problems that may arise could have a material adverse effect on the Company's business, financial condition, and results of operations. In addition, the purchasing patterns of existing and potential customers may be affected by Y2K problems, which could cause fluctuations in the Company's sales volumes. Maintenance or modification costs have been and will continue to be expensed as incurred. Forward Looking Statements Certain of the statements contained in this report to shareholders as well as in the Company's other filings with the Securities and Exchange Commission that are not historical facts are forward-looking statements subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. The Company cautions readers of this report that a number of important factors could cause the Company's activities and/or actual results in fiscal 1999 and beyond to differ materially from those expressed in any such forward-looking statements. These factors include, without limitation, the Company's dependence on vendors, product supply, senior management, centralized functions, and third- party shippers, the Company's ability to compete successfully in a highly competitive market and manage significant additions in personnel and increases in working capital, the Company's entry into new products markets in which it has no prior experience, the Company's susceptibility to quarterly fluctuations in net sales and operations results, the Company's ability to manage successfully price protection or stock rotation opportunities associated with inventory value decreases, and other factors described in other reports and documents filed by the Company with the Securities and Exchange Commission. 11 Item 3. Quantitative and Qualitative Disclosures About Market Risk The Company is exposed to changes in financial market conditions in the normal course of its business as a result of its selective use of bank debt as well as transacting in Canadian currency in connection with its Canadian operations. The Company is exposed to changes in interest rates primarily as a result of its borrowing activities, which includes a revolving credit facility with a bank used to maintain liquidity and fund the Company's business operations. The nature and amount of the Company's debt may vary as a result of future business requirements, market conditions and other factors. The definitive extent of the Company's interest rate risk is not quantifiable or predictable because of the variability of future interest rates and business financing requirements, but the Company does not believe such risk is material. The Company does not currently use derivative instruments to adjust the Company's interest rate risk profile. The table below presents principal amounts and related weighted average rates by year of maturity for the Company's debt obligations at December 31, 1998:
(In thousands) 1999 2000 2001 2002 2003 Thereafter Total Fair Value ---- ---- ---- ---- ---- ---------- ----- ---------- Long-term debt 11 24 26 29 31 1,587 1,708 1,864 Average interest rate (fixed) 9.19% 9.19% 9.19% 9.19% 9.19% 9.19% 9.19%
The Company is exposed to changes in foreign exchange rates in connection with its Canadian operations. It is the Company's policy to enter into foreign currency transactions only to the extent considered necessary to support its Canadian operations. The amount of the Company's cash deposits denominated in Canadian currency has not been, and is not expected to be, material. Furthermore, the Company has no capital expenditure or other purchase commitments denominated in foreign currency. The Company does not utilize forward exchange contracts, currency options or other traditional hedging vehicles to adjust the Company's foreign exchange rate risk profile. The Company does not enter into foreign currency transactions for speculative purposes. The Company does not utilize financial instruments for trading or other speculative purposes, nor does it utilize leveraged financial instruments. On the basis of the fair value of the Company's market sensitive instruments at December 31, 1998, the Company does not consider the potential near-term losses in future earnings, fair values and cash flows from reasonable possible near- term changes in interest rates and exchange rates to be material. 12 PART II. OTHER INFORMATION Item 1. Legal Proceedings. Not applicable Item 2. Changes in Securities. Not applicable Item 3. Defaults Upon Senior Securities. Not applicable Item 4. Submission of Matters to a Vote of Security-Holders. (a) The Company's annual meeting of shareholders was held on December 3, 1998. (b) The four directors listed in subsection (c) below were elected at the meeting. The Company has no other directors whose term of office continued after the meeting. (c) (i) Election of Directors. Number of Shares ---------------- Withhold Nominees For Authority -------- --- --------- Michael L. Baur 4,399,506 2725 Steven H. Owings 4,399,506 2725 Steven R. Fischer 4,398,206 4025 James G. Foody 4,397,706 4525 (ii) Proposal to ratify the amendment to the Company's 1997 Stock Incentive Plan. Number of Shares ---------------- For 4,286,012 Against 90,650 Abstain 25,569 Not voted 0 (iii) Proposal to ratify the appointment of KPMG Peat Marwick LLP as the Company's independent auditors for the fiscal year ending June 30, 1999. Number of Shares ---------------- For 4,398,556 Against 2,450 Abstain 1,225 Not voted 0 13 Item 5. Other information. Not applicable. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit 27 -- Financial Data Schedule (b) Reports on Form 8-K None 14 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. SCANSOURCE, INC. /s/ Steven H. Owings ----------------------- STEVEN H. OWINGS Chief Executive Officer /s/ Jeffery A. Bryson ------------------------ JEFFERY A. BRYSON Chief Financial Officer Date: February 12, 1999 15
EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BALANCE SHEET & INCOME STATEMENT FOR PERIOD ENDED 12/31/98. 1,000 6-MOS JUN-30-1999 JUL-01-1998 DEC-31-1998 2,007 0 35,346 2,709 45,264 86,603 8,835 2,049 95,184 40,017 0 0 0 39,113 0 95,184 126,262 126,262 111,664 9,380 67 0 0 5,196 1,923 3,273 0 0 0 3,273 .60 .58
-----END PRIVACY-ENHANCED MESSAGE-----