EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

Contact:    Richard P. Cleys
   VP and CFO
   ScanSource, Inc.
   (864) 286-4358

SCANSOURCE REPORTS FIRST QUARTER SALES RESULTS

GREENVILLE, SC — October 23, 2008—ScanSource, Inc. (NASDAQ:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced complete financial results for its first quarter ended September 30, 2008.

 

  QE 9/30/08 capsule:     
  Net sales   $539.8 million   
  Net income   $12.4 million   
  Diluted EPS   $0.47 per share   

“As expected, our first quarter results were negatively impacted by specific vendor issues in our Catalyst Telecom business unit,” said Mike Baur, CEO, ScanSource, Inc. “In addition, we experienced overall slower revenue growth in most of our business units. While this is disappointing, ScanSource continues to deliver strong profits and cash flow in this challenging economic environment. Our proven business model and strong balance sheet will allow us to continue investing in specific growth areas.”


ScanSource Reports First Quarter Sales Results

For the quarter ended September 30, 2008, net sales decreased 3% to $539.8 million compared to $553.7 million for the quarter ended September 30, 2007. Quarterly operating income decreased 19% to $20.6 million from $25.4 million for the comparable prior year quarter. Our effective tax rate for the quarter was 38.2% compared to 38.0% for the prior year quarter. Net income decreased 15% to $12.4 million for the quarter ended September 30, 2008 versus $14.7 million for the quarter ended September 30, 2007. Diluted earnings per share decreased 16% to $0.47 per share compared to $0.56 per share in the prior year quarter.

Forecast for Next Quarter

The Company announced its revenue forecast for the second quarter of fiscal 2009. ScanSource expects net revenues for the December 2008 quarter could range from $515 million to $535 million.

Safe Harbor Statement

This news release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2008 filed with the Securities and Exchange Commission.

About ScanSource

ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

 

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ScanSource Reports First Quarter Sales Results

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers electronic security solutions. Founded in 1992, the company ranks #901 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

 

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ScanSource Reports First Quarter Sales Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     September 30,
2008
(unaudited)
   June 30,
2008 *

Assets

     

Current Assets

     

Cash and cash equivalents

   $ 16,208    $ 15,224

Trade & notes receivable, net

     344,115      360,154

Other receivables

     9,378      8,052

Inventories

     283,960      280,077

Prepaid expenses and other assets

     6,463      5,556

Deferred income taxes

     11,746      11,428
             

Total current assets

     671,870      680,491

Property and equipment, net

     23,473      22,420

Goodwill

     34,852      36,121

Other assets, including identifiable intangible assets

     32,362      33,174
             

Total assets

   $ 762,557    $ 772,206
             

Liabilities and Shareholders’ Equity

     

Current Liabilities

     

Current portion of long-term debt

   $ —      $ —  

Short-term borrowings

     2,043      7,649

Trade accounts payable

     279,399      265,284

Accrued expenses and other liabilities

     35,701      38,922
             

Total current liabilities

     317,143      311,855

Long-term debt

     30,369      29,576

Borrowings under revolving credit facility

     —        27,047

Other long-term liabilities

     8,342      7,975
             

Total liabilities

     355,854      376,453
             

Shareholders’ Equity

     

Common stock

     99,372      96,097

Retained earnings

     302,564      290,134

Accumulated other comprehensive income

     4,767      9,522
             

Total shareholders’ equity

     406,703      395,753
             

Total liabilities and shareholders’ equity

   $ 762,557    $ 772,206
             

* Derived from audited financial statements at June 30, 2008.

 

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ScanSource Reports First Quarter Sales Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share data)

 

    

Quarter ended

 
     September 30,  
     2008     2007  

Net sales

   $ 539,825     $ 553,691  

Cost of goods sold

     484,323       495,567  
                

Gross profit

     55,502       58,124  
                

Selling, general and administrative expenses

     34,874       32,771  
                

Operating income

     20,628       25,353  

Other expense (income):

    

Interest expense

     579       2,125  

Interest income

     (351 )     (303 )

Other expense (income)

     277       (152 )
                

Other expense, net

     505       1,670  
                

Income before income taxes and minority interest

     20,123       23,683  

Provision for income taxes

     7,693       8,997  
                

Net income

   $ 12,430     $ 14,686  
                

Per share data:

    

Net income per common share, basic

   $ 0.47     $ 0.57  
                

Weighted-average shares outstanding, basic

     26,364       25,866  
                

Net income per common share, assuming dilution

   $ 0.47     $ 0.56  
                

Weighted-average shares outstanding, assuming dilution

     26,611       26,276  
                

 

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