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 FOURTH QUARTER AND YEAR-END RESULTS

 

GREENVILLE, SC — August 20, 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 fourth quarter and fiscal year ended June 30, 2009.

 

Quarter ended June 30, 2009:

      Fiscal Year ended June 30, 2009:

Net Sales

   $441 million       Net Sales    $1,848 million

Net Income

   $12.5 Million       Net Income    $47.7 million

Diluted EPS

   $0.47 per share       Diluted EPS    $1.79 per share

“In our fourth quarter, we had excellent results in certain areas of our business, specifically our Security and Communications sales units,” said Mike Baur, CEO, ScanSource, Inc. “Overall, we are pleased with our North American sales results, which are improving. And while our International business remains flat, we continue to be cautiously optimistic.”

For the quarter ended June 30, 2009, net sales decreased 20.4% to $441 million compared to $554 million for the quarter ended June 30, 2008. Quarterly operating income also decreased 17.4% to $20.0 million from $24.2 million for the comparable prior year quarter. Net income decreased 13.6% to $12.5 million for the quarter ended June 30, 2009 versus $14.5 million for the quarter ended


ScanSource Reports Fourth Quarter and Year End Results

June 30, 2008. The effective tax rate for the quarter was 37.4%, compared to 39.0% for the prior year quarter. Diluted earnings per share decreased 13.0% to $0.47 compared to $0.54 in the prior year quarter.

For the year ended June 30, 2009, net sales decreased 15.1% to $1.85 billion, compared to $2.18 billion for the prior year ended June 30, 2008. Fiscal year operating income also decreased 21.1% to $74.1 million from $94.0 million for the comparable prior fiscal year. Net income decreased 14.3% to $47.7 million compared to $55.6 million for the prior fiscal year ended June 30, 2008. The effective tax rate for the year was 37.0% compared to 38.3% for the prior fiscal year. Diluted earnings per share decreased 14.8% to $1.79 compared to $2.10 in the prior year.

Forecast for Next Quarter

The Company announced its revenue forecast for the first quarter of fiscal 2010. ScanSource expects net revenues for the September 2009 quarter could range from $445 million to $465 million.

Safe Harbor Statement

This press 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, and the Company’s annual report on Form 10-K for the year ended June 30, 2009 to be filed with, the Securities and Exchange Commission.

 

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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 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 Fourth Quarter and Year End Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)

 

     June 30,
2009
   June 30,
2008*
Assets          

Current assets:

     

Cash and cash equivalents

   $ 127,664    $ 15,224

Trade & notes receivable

     291,037      360,154

Other receivables

     7,676      8,052

Inventories

     216,829      280,077

Prepaid expenses and other assets

     5,486      5,556

Deferred income taxes

     8,735      11,428
             

Total current assets

     657,427      680,491

Property and equipment, net

     21,035      22,420

Goodwill

     34,087      36,121

Other assets, including identifiable intangible assets

     36,082      33,174
             

Total assets

   $ 748,631    $ 772,206
             
Liabilities and Shareholders’ Equity      

Current liabilities:

     

Current portion of long-term debt

   $ —      $ —  

Short-term borrowings

     —        7,649

Trade accounts payable

     228,408      265,284

Accrued expenses and other liabilities

     30,443      34,337

Income taxes payable

     3,799      4,585
             

Total current liabilities

     262,650      311,855

Deferred income taxes

     —        —  

Long-term debt

     30,429      29,576

Borrowings under revolving credit facility

     —        27,047

Other long-term liabilities

     10,106      7,975
             

Total liabilities

     303,185      376,453
             

Shareholder’s equity:

     

Common stock

     104,461      96,097

Retained earnings

     337,822      290,134

Accumulated other comprehensive income

     3,163      9,522
             

Total shareholders’ equity

     445,446      395,753
             

Total liabilities and shareholders’ equity

   $ 748,631    $ 772,206
             

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

 

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ScanSource Reports Fourth Quarter and Year End Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share information)

 

     Quarter ended
June 30,
    Fiscal year ended
June 30,
 
     2009     2008     2009     2008  

Net sales

   $ 441,236      $ 554,030      $ 1,847,969      $ 2,175,485   

Cost of goods sold

     387,753        495,432        1,639,121        1,947,867   
                                

Gross profit

     53,483        58,598        208,848        227,618   
                                

Operating expenses:

        

Selling, general and administrative expenses

     33,505        34,415        134,730        133,653   
                                

Operating income

     19,978        24,183        74,118        93,965   

Other expense (income):

        

Interest expense

     366        974        2,176        5,471   

Interest income

     (286     (404     (1,405     (1,512

Other, net

     (78     (93     (2,307     (212
                                

Other expense (income)

     2        477        (1,536     3,747   
                                

Income before income taxes

     19,976        23,706        75,654        90,218   

Provision for income taxes

     7,473        9,239        27,966        34,586   
                                

Net income

   $ 12,503      $ 14,467      $ 47,688      $ 55,632   
                                

Per share data:

        

Net income per common share, basic

   $ 0.47      $ 0.55      $ 1.80      $ 2.13   
                                

Weighted-average shares outstanding, basic

     26,542        26,307        26,445        26,098   
                                

Net income per common share, diluted

   $ 0.47      $ 0.54      $ 1.79      $ 2.10   
                                

Weighted-average shares outstanding, diluted

     26,704        26,549        26,588        26,445   
                                

 

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