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

Specialty distributor achieves 27% revenue growth

GREENVILLE, SC — April 22, 2010—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, 2010.

Quarter ended March 31, 2010:

 

Net sales

   $ 496 million

Net income

   $ 12.0 million

Diluted EPS

   $ 0.45 per share

“We were pleased with the improving widespread demand in our POS/AIDC business; however, revenues were less than expected due to product shortages,” said Mike Baur, CEO, ScanSource, Inc. “Although our Communications business had significant year over year revenue growth, the March quarter demand was weaker than expected.”

For the quarter ended March 31, 2010, net sales increased 27.3% to $496 million compared to $390 million for the quarter ended March 31, 2009. Operating income also increased by 25.5% to $19.0 million from $15.1 million in the comparable prior year quarter. Net income increased 30.2% to $12.0 million for the quarter ended March 31, 2010 versus $9.2 million for the quarter ended

 

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ScanSource Reports Third Quarter Results

March 31, 2009. The effective tax rate for the quarter was 36.5%, compared to 37.6% for the prior year quarter. Diluted earnings per share increased 28.6% to $0.45 in the current quarter compared to $0.35 in the prior year quarter.

Outlook for Next Quarter

The Company announced its net revenue outlook for the fourth quarter of fiscal 2010. ScanSource expects net revenues for the June 2010 quarter could range from $530 million to $550 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. The statements in this press release are made as of the date hereof even if subsequently made available on ScanSource’s website or otherwise. ScanSource does not assume any obligation to update the forward looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. 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, 2009 filed with the Securities and Exchange Commission.

 

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ScanSource Reports Third Quarter Results

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 Third Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

     March 31,     June 30,
     2010     2009*
Assets     

Current assets:

    

Cash and cash equivalents

   $ 29,677      $ 127,664

Trade & notes receivable

     326,773        291,037

Other receivables

     5,624        7,676

Inventories

     312,532        216,829

Prepaid expenses and other assets

     13,155        10,356

Deferred income taxes

     7,881        8,735
              

Total current assets

     695,642        662,297

Property and equipment, net

     22,677        21,035

Goodwill

     33,219        34,087

Other assets, including identifiable intangible assets

     35,259        31,212
              

Total assets

   $ 786,797      $ 748,631
              
Liabilities and Shareholders’ Equity     

Current liabilities:

    

Current portion of long-term debt

   $ —        $ —  

Trade accounts payable

     225,695        228,408

Accrued expenses and other liabilities

     35,217        30,443

Income taxes payable

     4,317        3,799
              

Total current liabilities

     265,229        262,650

Deferred income taxes

     —          —  

Long-term debt

     30,429        30,429

Borrowings under revolving credit facility

     —          —  

Other long-term liabilities

     12,956        10,106
              

Total liabilities

     308,614        303,185
              

Shareholder’s equity:

    

Common stock

     109,790        104,461

Retained earnings

     372,585        337,822

Accumulated other comprehensive income

     (4,192     3,163
              

Total shareholders’ equity

     478,183        445,446
              

Total liabilities and shareholders’ equity

   $ 786,797      $ 748,631
              

 

* Derived from audited financial statements at June 30, 2009.

 

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ScanSource Reports Third Quarter Results

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share information)

 

     Quarter ended     Nine months ended  
     March 31,     March 31,  
     2010     2009     2010     2009  

Net sales

   $ 496,102      $ 389,815      $ 1,532,637      $ 1,406,733   

Cost of goods sold

     441,711        342,280        1,370,532        1,251,368   
                                

Gross profit

     54,391        47,535        162,105        155,365   
                                

Operating expenses:

        

Selling, general and administrative expenses

     35,414        32,418        107,312        101,225   
                                

Operating income

     18,977        15,117        54,793        54,140   

Other expense (income):

        

Interest expense

     377        609        1,107        1,810   

Interest income

     (474     (344     (1,159     (1,119

Other, net

     156        54        99        (2,228
                                

Other expense (income)

     59        319        47        (1,537
                                

Income before income taxes

     18,918        14,798        54,746        55,677   

Provision for income taxes

     6,904        5,569        19,982        20,493   
                                

Net income

   $ 12,014      $ 9,229      $ 34,764      $ 35,184   
                                

Per share data:

        

Net income per common share, basic

   $ 0.45      $ 0.35      $ 1.31      $ 1.33   
                                

Weighted-average shares outstanding, basic

     26,608        26,463        26,583        26,412   
                                

Net income per common share, diluted

   $ 0.45      $ 0.35      $ 1.30      $ 1.32   
                                

Weighted-average shares outstanding, diluted

     26,884        26,565        26,844        26,572   
                                

 

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