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 ACHIEVES RECORD QUARTERLY SALES

Company Reports Fourth Quarter and Fiscal Year End Results

GREENVILLE, SC — August 19, 2010—ScanSource, Inc. (NASDAQ:SCSC), the 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, 2010.

 

Quarter ended June 30, 2010:      Fiscal Year ended June 30, 2010:

Net sales

   $ 582 million     

Net sales

   $ 2,115 million

Net income

   $ 14.0 million     

Net income

   $ 48.8 million

Diluted EPS

   $ 0.52 per share     

Diluted EPS

   $ 1.82 per share

“The ScanSource teams delivered excellent results for the June quarter across all product lines,” said Mike Baur, CEO, ScanSource, Inc. “This quarter we sold to an increasing number of customers and were pleased to see a resurgence of big deals.”

For the quarter ended June 30, 2010, net sales increased 32% to $582 million compared to $441 million for the quarter ended June 30, 2009. Operating income also increased by 5% to $21 million from $20 million in the comparable prior year quarter. Net income increased 12.4% to $14 million for the quarter ended June 30, 2010 versus $12.5 million for the quarter ended June 30, 2009. The effective tax rate for the quarter was 33.1%, compared to 37.4% for the fourth quarter of the prior year. Diluted earnings per share increased 10.6% to $0.52 in the current quarter compared to $.47 in the fourth quarter of the prior year.


ScanSource Reports Fourth Quarter Results

For the year ended June 30, 2010, net sales increased $267 million, or 14.4% to $2.1 billion, compared to the prior year ended June 30, 2009. Fiscal year operating income also increased 2.2% to $75.8 million from $74.1 million for the prior fiscal year. Net income increased 2.4% to $48.8 million compared to $47.7 million for the prior fiscal year. The effective tax rate for the year was 35.6% compared to 37.0% for the prior fiscal year. Diluted earnings per share increased 1.7% to $1.82 compared to $1.79 in the prior fiscal year.

Forecast for Next Quarter

The Company announced its revenue forecast for the first quarter of fiscal 2011. ScanSource expects net revenues for the September 2010 quarter could range from $555 million to $575 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, 2009 filed with, and the Company’s annual report on Form 10-K for the year ended June 30, 2010 to be filed with, the Securities and Exchange Commission.

 

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ScanSource Reports Fourth Quarter Results

About ScanSource, Inc.

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 #881 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 Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

     June 30,     June 30,
     2010     2009*
Assets     

Current assets:

    

Cash and cash equivalents

   $ 34,605      $ 127,664

Accounts receivable, less allowance of
$21,907 at June 30, 2010
$16,883 at June 30, 2009

     357,749        291,037

Inventories

     346,610        216,829

Prepaid expenses and other assets

     16,762        18,032

Deferred income taxes

     12,066        8,735
              

Total current assets

     767,792        662,297

Property and equipment, net

     23,528        21,035

Goodwill

     33,785        34,087

Other assets, including identifiable intangible assets

     34,645        31,212
              

Total assets

   $ 859,750      $ 748,631
              
Liabilities and Shareholders’ Equity     

Current liabilities:

    

Current portion of long-term debt

   $ —        $ —  

Short-term borrowings

     —          —  

Accounts payable

     287,864        228,408

Accrued expenses and other liabilities

     35,027        30,443

Income taxes payable

     7,948        3,799
              

Total current liabilities

     330,839        262,650

Deferred income taxes

     —          —  

Long-term debt

     30,429        30,429

Borrowings under revolving credit facility

     —          —  

Other long-term liabilities

     11,631        10,106
              

Total liabilities

     372,899        303,185
              

Shareholder’s equity:

    

Common stock

     111,951        104,461

Retained earnings

     386,634        337,822

Accumulated other comprehensive income

     (11,734     3,163
              

Total shareholders’ equity

     486,851        445,446
              

Total liabilities and shareholders’ equity

   $ 859,750      $ 748,631
              

 

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

 

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ScanSource Reports Fourth Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share information)

 

     Quarter ended
June 30,
    Twelve months ended
June 30,
 
     2010     2009     2010     2009 *  

Net sales

   $ 582,342      $ 441,236      $ 2,114,979      $ 1,847,969   

Cost of goods sold

     525,519        387,753        1,896,052        1,639,121   
                                

Gross profit

     56,823        53,483        218,927        208,848   
                                

Operating expenses:

        

Selling, general and administrative expenses

     35,840        33,505        143,151        134,730   
                                

Operating income

     20,983        19,978        75,776        74,118   

Other expense (income):

        

Interest expense

     365        366        1,472        2,176   

Interest income

     (228     (286     (1,387     (1,405

Other, net

     (150     (78     (50     (2,307
                                

Other expense (income)

     (13     2        35        (1,536
                                

Income before income taxes

     20,996        19,976        75,741        75,654   

Provision for income taxes

     6,947        7,473        26,929        27,966   
                                

Net income

   $ 14,049      $ 12,503      $ 48,812      $ 47,688   
                                

Per share data:

        

Net income per common share, basic

   $ 0.53      $ 0.47      $ 1.83      $ 1.80   
                                

Weighted-average shares outstanding, basic

     26,669        26,542        26,605        26,445   
                                

Net income per common share, diluted

   $ 0.52      $ 0.47      $ 1.82      $ 1.79   
                                

Weighted-average shares outstanding, diluted

     26,937        26,704        26,869        26,588   
                                

 

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

 

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