ScanSource Reports Third Quarter Results

Contact: Mary Gentry
Title: Vice President, Treasurer and Investor Relations
Phone: 864.286.4892
Location: Greenville, SC - Worldwide Headquarters
Date: Tuesday, May 08, 2018

ScanSource, Inc. (NASDAQ: SCSC), a leading global provider of technology products and solutions, today announced financial results for the third quarter ended March 31, 2018.

 

Quarter ended March 31,

 

2018

 

2017

 

Change

 

(in millions, except per share data)

Net sales

$

895.6

 

 

$

813.5

 

 

10

%

Operating income

17.9

 

 

20.0

 

 

(10

)%

Non-GAAP operating income(1)

27.8

 

 

26.2

 

 

6

%

GAAP net income

10.6

 

 

12.4

 

 

(14

)%

Non-GAAP net income(1)

17.5

 

 

16.4

 

 

7

%

GAAP diluted EPS

$

0.42

 

 

$

0.49

 

 

(14

)%

Non-GAAP diluted EPS(1)

$

0.68

 

 

$

0.65

 

 

5

%

 

 

 

 

 

 

(1) Non-GAAP results exclude amortization of intangible assets related to acquisitions and change in fair value of contingent consideration. A reconciliation of non-GAAP financial information to GAAP financial information is presented in the Supplementary Information (Unaudited) below.

 

“ScanSource delivered another quarter of very good financial results, with 10% net sales growth for both of our segments and 12% gross profit growth,” said Mike Baur, CEO, ScanSource, Inc.  “Our teams did a great job this quarter achieving 5% organic sales growth, while executing our strategic plan for growth.”

For the third quarter of fiscal year 2018, net sales increased 10% to $895.6 million, driven by sales growth in both Worldwide segments.  Organic sales growth, which excludes the impact from foreign currency translation and a recent acquisition, was 5.4%.  Operating income decreased to $17.9 million from increased expense for the change in fair value of contingent consideration.  Non-GAAP operating income increased 6% to $27.8 million, primarily from higher sales volume, higher gross margin and the addition of the POS Portal acquisition.

On a GAAP basis, net income for the quarter totaled $10.6 million, or $0.42 per diluted share, compared with net income of $12.4 million, or $0.49 per diluted share, for the prior-year quarter. Non-GAAP net income for the third quarter of fiscal year 2018 increased to $17.5 million, or $0.68 per diluted share.

Forecast for Next Quarter

For the fourth quarter of fiscal year 2018, ScanSource expects net sales to range from $940 million to $1 billion, diluted earnings per share to range from $0.48 to $0.54 per share, and non-GAAP diluted earnings per share to range from $0.74 to $0.80 per share. Non-GAAP diluted earnings per share exclude amortization of intangible assets related to acquisitions and change in fair value of contingent consideration.

Webcast Details and CFO Commentary

At approximately 4:15 p.m. ET, a CFO commentary, as a supplement to our press release and conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and outlook in a conference call today, May 8, 2018 at 5:00 p.m. ET.  A webcast of the call will be available for all interested parties and can be assessed at www.scansource.com (Investor Relations section).  The webcast will be available for replay for 60 days.


Safe Harbor Statement

This press release contains “forward-looking” statements, including the forecast of sales and earnings per share for next quarter,  that involve risks and uncertainties.  Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, changes in interest and exchange rates and regulatory regimes impacting our international operations, the impact of tax reform laws, the failure of acquisitions to meet our expectations, the failure to manage and implement our organic growth strategy, credit risks involving our larger customers and vendors, termination of our relationship with key vendors or a significant modification of the terms under which we operate with a key vendor, the decline in demand for the products and services that we provide, reduced prices for the products and services that we provide due both to competitor and customer actions, and other factors set forth in the "Risk Factors" contained in our annual report on Form 10-K for the year ended June 30, 2017, filed with the Securities and Exchange Commission.  Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company also discloses certain non-GAAP financial measures, which are summarized below.  Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition costs and other non-GAAP adjustments.

Net sales on a constant currency basis, excluding acquisitions:  The Company discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions prior to the first full year from the acquisition date.  This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

Non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income and non-GAAP diluted earnings per share: To evaluate current period performance on a more consistent basis with prior periods, the Company discloses non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income and non-GAAP diluted earnings per share (non-GAAP diluted "EPS"). These non-GAAP results exclude amortization of intangible assets related to acquisitions, change in the fair value of contingent consideration, acquisition costs and other non-GAAP adjustments. Non-GAAP operating income, non-GAAP net income, and non-GAAP diluted EPS measures are useful in assessing and understanding the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods.

Return on invested capital ("ROIC"): Management uses ROIC as a performance measurement to assess efficiency in allocating capital under the Company's control to generate returns. Management believes this metric balances the Company's operating results with asset and liability management, is not impacted by capitalization decisions and correlates with shareholder value creation. In addition, it is easily computed, communicated and understood. ROIC also provides management a measure of the Company's profitability on a basis more comparable to historical or future periods.

ROIC assists management in comparing the Company's performance over various reporting periods on a consistent basis because it removes from operating results the impact of items that do not reflect core operating performance. ROIC is calculated as adjusted EBITDA over invested capital.  Adjusted earnings before interest expense, income taxes, depreciation and amortization ("Adjusted EBITDA") excludes the change in fair value of contingent consideration and acquisition costs, in addition to other non-GAAP adjustments. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of ROIC provides useful information to investors and is an additional relevant comparison of the Company's performance during the year.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that the Company reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading global provider of technology products and solutions, focusing on point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, cloud and telecom services. ScanSource's teams provide value-added solutions and operate from two segments: Worldwide Barcode, Networking & Security, which includes POS Portal, and Worldwide Communications & Services, which includes Intelisys. ScanSource is committed to helping its customers choose, configure and deliver the industry's best solutions across almost every vertical market in North America, Latin America and Europe. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2017 Best Places to Work in South Carolina and on FORTUNE magazine's 2018 List of World's Most Admired Companies. ScanSource ranks #647 on the Fortune 1000. For more information, visit www.scansource.com.

 


ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

 

 

March 31, 2018

 

June 30, 2017*

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

35,361

 

 

$

56,094

 

Accounts receivable, less allowance of $47,139 at March 31, 2018 and $44,434 at June30, 2017

 

664,091

 

 

637,293

 

Inventories

 

569,538

 

 

531,314

 

Prepaid expenses and other current assets

 

71,923

 

 

56,322

 

Total current assets

 

1,340,913

 

 

1,281,023

 

Property and equipment, net

 

74,582

 

 

56,566

 

Goodwill

 

303,458

 

 

200,881

 

Net identifiable intangible assets

 

143,726

 

 

101,513

 

Deferred income taxes

 

12,795

 

 

29,491

 

Other non-current assets

 

52,501

 

 

48,829

 

Total assets

 

$

1,927,975

 

 

$

1,718,303

 

 

 

 

 

 

LiabilitiesandShareholders'Equity

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of long-term debt

 

$

471

 

 

$

 

Accounts payable

 

496,688

 

 

513,155

 

Accrued expenses and other current liabilities

 

96,006

 

 

104,715

 

Current portion of contingent consideration

 

40,802

 

 

30,675

 

Income taxes payable

 

7,500

 

 

7,730

 

Total current liabilities

 

641,467

 

 

656,275

 

Deferred income taxes

 

10,582

 

 

2,008

 

Long-term debt

 

4,957

 

 

5,429

 

Borrowings under revolving credit facility

 

276,730

 

 

91,871

 

Long-term portion of contingent consideration

 

60,976

 

 

83,361

 

Other long-term liabilities

 

55,467

 

 

42,214

 

Total liabilities

 

1,050,179

 

 

881,158

 

Shareholders' equity:

 

 

 

 

Common stock

 

66,501

 

 

61,169

 

Retained earnings

 

871,945

 

 

849,180

 

Accumulated other comprehensive income (loss)

 

(60,650

)

 

(73,204

)

Total shareholders' equity

 

877,796

 

 

837,145

 

Total liabilities and shareholders' equity

 

$

1,927,975

 

 

$

1,718,303

 

 

*

Derived from audited financial statements.

 

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Quarter ended March 31,

 

Nine months ended March 31,

 

 

2018

 

2017

 

2018

 

2017

Net sales

 

$

895,637

 

 

$

813,538

 

 

$

2,852,408

 

 

$

2,650,895

 

Cost of goods sold

 

791,749

 

 

720,867

 

 

2,529,632

 

 

2,368,155

 

Gross profit

 

103,888

 

 

92,671

 

 

322,776

 

 

282,740

 

Selling, general and administrative expenses

 

72,691

 

 

63,853

 

 

220,642

 

 

193,999

 

Depreciation expense

 

3,352

 

 

2,663

 

 

10,059

 

 

7,155

 

Intangible amortization expense

 

5,103

 

 

4,217

 

 

15,600

 

 

11,537

 

Change in fair value of contingent consideration

 

4,801

 

 

1,960

 

 

28,595

 

 

3,921

 

Operating income

 

17,941

 

 

19,978

 

 

47,880

 

 

66,128

 

Interest expense

 

2,784

 

 

780

 

 

6,655

 

 

2,281

 

Interest income

 

(887

)

 

(1,040

)

 

(2,349

)

 

(2,948

)

Other (income) expense,net

 

252

 

 

667

 

 

691

 

 

(11,280

)

Income before income taxes

 

15,792

 

 

19,571

 

 

42,883

 

 

78,075

 

Provision for income taxes

 

5,143

 

 

7,147

 

 

20,118

 

 

27,799

 

Net income

 

$

10,649

 

 

$

12,424

 

 

$

22,765

 

 

$

50,276

 

Per share data:

 

 

 

 

 

 

 

 

Net income per common share,basic

 

$

0.42

 

 

$

0.49

 

 

$

0.89

 

 

$

1.99

 

Weighted-average shares outstanding,basic

 

25,572

 

 

25,262

 

 

25,503

 

 

25,311

 

 

 

 

 

 

 

 

 

 

Net income per common share,diluted

 

$

0.42

 

 

$

0.49

 

 

$

0.89

 

 

$

1.97

 

Weighted-average shares outstanding,diluted

 

25,606

 

 

25,400

 

 

25,607

 

 

25,458

 

 

 

 

 

ScanSource, Inc. and Subsidiaries

 

Supplementary Information (Unaudited)

 

 

 

 

 

 

Net Sales by Segment:

 

 

 

 

 

Quarter ended March 31,

 

 

 

 

2018

 

2017

 

% Change

 

Worldwide Barcode, Networking & Security:

(in thousands)

 

 

 

Net sales, as reported

$

604,322

 

 

$

548,971

 

 

10.1

%

 

Foreign exchange impact (a)

(12,949

)

 

 

 

 

 

Net sales, constant currency (non-GAAP)

591,373

 

 

548,971

 

 

7.7

%

 

Less: Acquisitions

(22,361

)

 

 

 

 

 

Net sales, constant currency excluding acquisitions (non-GAAP)

$

569,012

 

 

$

548,971

 

 

3.7

%

 

 

 

 

 

 

 

 

Worldwide Communications & Services:

 

 

 

 

 

 

Net sales, as reported

$

291,315

 

 

$

264,567

 

 

10.1

%

 

Foreign exchange impact (a)

(2,697

)

 

 

 

 

 

Net sales, constant currency (non-GAAP)

288,618

 

 

264,567

 

 

9.1

%

 

Less: Acquisitions

 

 

 

 

 

 

Net sales, constant currency excluding acquisitions (non-GAAP)

$

288,618

 

 

$

264,567

 

 

9.1

%

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Net sales, as reported

$

895,637

 

 

$

813,538

 

 

10.1

%

 

Foreign exchange impact (a)

(15,646

)

 

 

 

 

 

Net sales, constant currency (non-GAAP)

879,991

 

 

813,538

 

 

8.2

%

 

Less: Acquisitions

(22,361

)

 

 

 

 

 

Net sales, constant currency excluding acquisitions (non-GAAP)

$

857,630

 

 

$

813,538

 

 

5.4

%

 

 

 

 

 

 

 

 

(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended March 31, 2018 into U.S. dollars using the average foreign exchange rates for the quarter ended March 31, 2017.

 

 

 

 

 

 

 

 

ScanSource, Inc. and Subsidiaries

 

Supplementary Information (Unaudited)

 

 

 

 

 

 

Net Sales by Segment:

 

 

 

 

 

Nine months ended March 31,

 

 

 

Worldwide Barcode, Networking & Security:

2018

 

2017

 

% Change

 

 

(in thousands)

 

 

 

Net sales, as reported

$

1,944,436

 

 

$

1,770,015

 

 

9.9

%

 

Foreign exchange impact (a)

(28,243

)

 

 

 

 

 

Net sales, constant currency

1,916,193

 

 

1,770,015

 

 

8.3

%

 

Less: Acquisitions

(56,620

)

 

 

 

 

 

Net sales, constant currency excluding acquisitions

$

1,859,573

 

 

$

1,770,015

 

 

5.1

%

 

 

 

 

 

 

 

 

Worldwide Communications & Services:

 

 

 

 

 

 

Net sales, as reported

$

907,972

 

 

$

880,880

 

 

3.1

%

 

Foreign exchange impact (a)

(9,273

)

 

 

 

 

 

Net sales, constant currency

898,699

 

 

880,880

 

 

2.0

%

 

Less: Acquisitions

(9,750

)

 

(2,863

)

 

 

 

Net sales, constant currency excluding acquisitions

$

888,949

 

 

$

878,017

 

 

1.2

%

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Net sales, as reported

$

2,852,408

 

 

$

2,650,895

 

 

7.6

%

 

Foreign exchange impact (a)

(37,516

)

 

 

 

 

 

Net sales, constant currency

2,814,892

 

 

2,650,895

 

 

6.2

%

 

Less: Acquisitions

(66,370

)

 

(2,863

)

 

 

 

Net sales, constant currency excluding acquisitions

$

2,748,522

 

 

$

2,648,032

 

 

3.8

%

 

 

 

 

 

 

 

 

(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the nine months ended March 31, 2018 into U.S. dollars using the average foreign exchange rates for the nine months ended March 31, 2017.

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

 

 

 

Net Sales by Geography:

 

 

 

 

 

Quarter ended March 31,

 

 

 

 

2018

 

2017

 

% Change

 

United States and Canada:

(in thousands)

 

 

 

Net sales, as reported

$

653,537

 

 

$

613,157

 

 

6.6

%

 

Less: Acquisitions

(22,361

)

 

 

 

 

 

Net sales, excluding acquisitions (non-GAAP)

$

631,176

 

 

$

613,157

 

 

2.9

%

 

 

 

 

 

 

 

 

International:

 

 

 

 

 

 

Net sales, as reported

$

242,100

 

 

$

200,381

 

 

20.8

%

 

Foreign exchange impact (a)

(15,646

)

 

 

 

 

 

Net sales, constant currency (non-GAAP)

226,454

 

 

200,381

 

 

13.0

%

 

Less: Acquisitions

 

 

 

 

 

 

Net sales, constant currency excluding acquisitions (non-GAAP)

$

226,454

 

 

$

200,381

 

 

13.0

%

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Net sales, as reported

$

895,637

 

 

$

813,538

 

 

10.1

%

 

Foreign exchange impact (a)

(15,646

)

 

 

 

 

 

Net sales, constant currency (non-GAAP)

879,991

 

 

813,538

 

 

8.2

%

 

Less: Acquisitions

(22,361

)

 

 

 

 

 

Net sales, constant currency excluding acquisitions (non-GAAP)

$

857,630

 

 

$

813,538

 

 

5.4

%

 

 

 

 

 

 

 

 

(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended March 31, 2018 into U.S. dollars using the average foreign exchange rates for the quarter ended March 31, 2017.

 

 

 

 

 

 

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

 

 

 

Net Sales by Geography:

 

 

 

 

 

Nine months ended March 31,

 

 

 

 

2018

 

2017

 

% Change

 

United States and Canada:

(in thousands)

 

 

 

Net sales, as reported

$

2,095,519

 

 

$

1,990,784

 

 

5.3

%

 

Less: Acquisitions

(66,370

)

 

(2,863

)

 

 

 

Net sales, excluding acquisitions

$

2,029,149

 

 

$

1,987,921

 

 

2.1

%

 

 

 

 

 

 

 

 

International:

 

 

 

 

 

 

Net sales, as reported

$

756,889

 

 

$

660,111

 

 

14.7

%

 

Foreign exchange impact (a)

(37,516

)

 

 

 

 

 

Net sales, constant currency

719,373

 

 

660,111

 

 

9.0

%

 

Less: Acquisitions

 

 

 

 

 

 

Net sales, constant currency excluding acquisitions

$

719,373

 

 

$

660,111

 

 

9.0

%

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Net sales, as reported

$

2,852,408

 

 

$

2,650,895

 

 

7.6

%

 

Foreign exchange impact (a)

(37,516

)

 

 

 

 

 

Net sales, constant currency

2,814,892

 

 

2,650,895

 

 

6.2

%

 

Less: Acquisitions

(66,370

)

 

(2,863

)

 

 

 

Net sales, constant currency excluding acquisitions

$

2,748,522

 

 

$

2,648,032

 

 

3.8

%

 

 

 

 

 

 

 

 

(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the nine months ended March 31, 2018 into U.S. dollars using the average foreign exchange rates for the nine months ended March 31, 2017.

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

Non-GAAP Financial Information:

 

 

 

Quarter ended March 31, 2018

 

Operating income

 

Pre-tax income

 

Net income

 

Diluted EPS

GAAP measure

$

17,941

 

 

$

15,792

 

 

$

10,649

 

 

$

0.42

 

Adjustments:

 

 

 

 

 

 

 

Amortization of intangible assets

5,103

 

 

5,103

 

 

3,590

 

 

0.14

 

Change in fair value of contingent consideration

4,801

 

 

4,801

 

 

3,272

 

 

0.12

 

Non-GAAP measure

$

27,845

 

 

$

25,696

 

 

$

17,511

 

 

$

0.68

 

 

 

 

 

 

 

 

 

 

Quarter ended March 31, 2017

 

Operating income

 

Pre-tax income

 

Net income

 

Diluted EPS

GAAP measure

$

19,978

 

 

$

19,571

 

 

$

12,424

 

 

$

0.49

 

Adjustments:

 

 

 

 

 

 

 

Amortization of intangible assets

4,217

 

 

4,217

 

 

2,774

 

 

0.11

 

Change in fair value of contingent consideration

1,960

 

 

1,960

 

 

1,194

 

 

0.05

 

Non-GAAP measure

$

26,155

 

 

$

25,748

 

 

$

16,392

 

 

$

0.65

 

 

 

 

 

 

 

 

 

 

ScanSource, Inc. and Subsidiaries

 

Supplementary Information (Unaudited)

 

(in thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Information:

 

 

 

 

 

 

Quarter ended

March 31,

 

Nine months ended March 31,

 

 

 

2018

 

2017

 

2018

 

2017

 

Return on invested capital (ROIC), annualized (a)

 

11.2

%

 

12.6

%

 

12.4

%

 

13.1

%

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Net income - GAAP

 

$

10,649

 

 

$

12,424

 

 

$

22,765

 

 

$

50,276

 

 

Plus: Interest expense

 

2,784

 

 

780

 

 

6,655

 

 

2,281

 

 

Plus: Income taxes

 

5,143

 

 

7,147

 

 

20,118

 

 

27,799

 

 

Plus: Depreciation and amortization

 

9,438

 

 

6,880

 

 

28,204

 

 

18,692

 

 

EBITDA

 

28,014

 

 

27,231

 

 

77,742

 

 

99,048

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Change in fair value of contingent consideration

 

4,801

 

 

1,960

 

 

28,595

 

 

3,921

 

 

Acquisition costs

 

 

 

 

 

172

 

 

833

 

 

Legal settlement, net of attorney fees

 

 

 

 

 

952

 

 

(12,777

)

 

Adjusted EBITDA (numerator for ROIC) (non-GAAP)

 

$

32,815

 

 

$

29,191

 

 

$

107,461

 

 

$

91,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Invested Capital Calculation

 

 

 

 

 

 

 

 

 

Equity - beginning of quarter

 

$

860,787

 

 

$

787,536

 

 

$

837,145

 

 

$

774,496

 

 

Equity - end of quarter

 

877,796

 

 

808,719

 

 

877,796

 

 

808,719

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Change in fair value of contingent consideration, net of tax

 

3,272

 

 

1,194

 

 

19,018

 

 

2,241

 

 

Acquisition costs, net of tax

 

 

 

 

 

172

 

 

833

 

 

Legal settlement, net of attorney fees, net of tax

 

 

 

 

 

771

 

 

(8,047

)

 

Tax reform charges

 

 

 

 

 

6,689

 

 

 

 

Average equity

 

870,928

 

 

798,725

 

 

870,796

 

 

789,121

 

 

Average funded debt (b)

 

315,872

 

 

137,597

 

 

283,819

 

 

135,921

 

 

Invested capital (denominator for ROIC) (non-GAAP)

 

$

1,186,800

 

 

$

936,322

 

 

$

1,154,615

 

 

$

925,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), plus change in fair value of contingent consideration and other adjustments, annualized and divided by invested capital for the period. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period.

 

(b) Average funded debt is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.

 

 

ScanSource, Inc. and Subsidiaries

Supplementary Information (Unaudited)

 

 

 

 

Non-GAAP Financial Information:

 

Forecast for Quarter ending June 30, 2018

 

Range Low

 

Range High

GAAP diluted EPS

$

0.48

 

 

$

0.54

 

Adjustments:

 

 

 

Amortization of intangible assets

0.14

 

 

0.14

 

Change in fair value of contingent consideration

0.12

 

 

0.12

 

Non-GAAP diluted EPS

$

0.74

 

 

$

0.80