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 THIRD QUARTER RESULTS

GREENVILLE, SC – April 23, 2009 – 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 third quarter ended March 31, 2009.

 

   Quarter End 3/31/09 capsule:   
   Net sales    $390 million   
   Net income    $9.2 million   
   Diluted EPS    $0.35 per share   

“Although we are disappointed in the weak sales results across all of our businesses,” said Mike Baur, CEO, ScanSource, Inc., “we are satisfied with our overall operating results.”

For the quarter ended March 31, 2009, net sales decreased 24.2% to $390 million compared to $514 million for the quarter ended March 31, 2008. Quarterly operating income decreased 20.4% to $15.1 million from $19.0 million for the comparable prior year quarter. The effective tax rate for the quarter was 37.6%, compared to 38.8% for the prior year quarter. Net income decreased 16.3% to $9.2


ScanSource Reports Third Quarter Results

million for the quarter ended March 31, 2009 versus $11.0 million for the quarter ended March 31, 2008.

Forecast for Next Quarter

The Company announced its revenue forecast for the fourth quarter of fiscal 2009. ScanSource expects net revenues for the June 2009 quarter could range from $390 million to $430 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 including but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. 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.

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 physical security solutions. Founded in 1992, the company ranks #854 on the

 

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ScanSource Reports Third Quarter Results

Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     March 31,
2009
(unaudited)
    June 30,
2008 *
Assets     

Current Assets

    

Cash and cash equivalents

   $ 114,391     $ 15,224

Trade & notes receivable, net

     252,919       360,154

Other receivables

     5,837       8,052

Inventories

     218,407       280,077

Prepaid expenses and other assets

     5,539       5,556

Deferred income taxes

     11,593       11,428
              

Total current assets

     608,686       680,491

Property and equipment, net

     22,516       22,420

Goodwill

     32,705       36,121

Other assets, including identifiable intangible assets

     30,645       33,174
              

Total assets

   $ 694,552     $ 772,206
              
Liabilities and Shareholders’ Equity     

Current Liabilities

    

Current portion of long-term debt

   $ —       $ —  

Short-term borrowings

     —         7,649

Trade accounts payable

     197,907       265,284

Accrued expenses and other liabilities

     29,530       38,922
              

Total current liabilities

     227,437       311,855

Long-term debt

     30,429       29,576

Borrowings under revolving credit facility

     —         27,047

Other long-term liabilities

     9,332       7,975
              

Total liabilities

     267,198       376,453
              

Shareholders’ Equity

    

Common stock

     102,888       96,097

Retained earnings

     325,318       290,134

Accumulated other comprehensive income (loss)

     (852 )     9,522
              

Total shareholders’ equity

     427,354       395,753
              

Total liabilities and shareholders’ equity

   $ 694,552     $ 772,206
              

 

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

 

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ScanSource Reports Third Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share data)

 

     Quarter ended
March 31,
    Nine months ended
March 31,
 
     2009     2008     2009     2008  

Net sales

   $ 389,815     $ 514,420     $ 1,406,733     $ 1,621,455  

Cost of goods sold

     342,280       462,701       1,251,368       1,452,435  
                                

Gross profit

     47,535       51,719       155,365       169,020  
                                

Selling, general and administrative expenses

     32,418       32,723       101,225       99,238  
                                

Operating income

     15,117       18,996       54,140       69,782  

Other expense (income):

        

Interest expense

     609       1,097       1,810       4,496  

Interest income

     (344 )     (401 )     (1,119 )     (1,108 )

Other expense (income)

     54       286       (2,228 )     (118 )
                                

Other expense (income), net

     319       982       (1,537 )     3,270  
                                

Income before income taxes

     14,798       18,014       55,677       66,512  

Provision for income taxes

     5,569       6,986       20,492       25,347  
                                

Net income

   $ 9,229     $ 11,028     $ 35,185     $ 41,165  
                                

Per share data:

        

Net income per common share, basic

   $ 0.35     $ 0.42     $ 1.33     $ 1.59  
                                

Weighted-average shares outstanding, basic

     26,463       26,038       26,412       25,934  
                                

Net income per common share, diluted

   $ 0.35     $ 0.42     $ 1.32     $ 1.56  
                                

Weighted-average shares outstanding, diluted

     26,565       26,423       26,572       26,325  
                                

 

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