Slide 1: Q4 and FY 2015 Financial Results Conference Call
Q4 AND FY 2015 FINANCIAL RESULTS CONFERENCE CALL August 20, 2015 at 5:00 pm ET
Slide 2: Safe Harbor
SAFE HARBOR This presentation may contain certain comments, which are Although ScanSource believes the expectations in its “forward-looking” statements that involve plans, strategies, forward-looking statements are reasonable, it cannot economic performance and trends, projections, expectations, gua
Slide 3: Highlights – Q4 FY15
HIGHLIGHTS – Q4 FY15 Record net sales of $857 million, up 13% Y/Y, and non-GAAP diluted EPS of $0.66*, up 5% Y/Y; both above expected range Worldwide Barcode & Security sales unchanged Y/Y; up 7% Y/Y excluding FX Record sales for Worldwide Communications & Services, up 37% Y/Y; up 13% Y/Y excl
Slide 4: Announces Agreement to Acquire KBZ
ANNOUNCES AGREEMENT TO ACQUIRE KBZ • Premier Cisco video conferencing distributor in the United States, formerly Tandberg’s largest distributor Description • Specialized focus on video, cloud and services • Sales for the TTM ended 6/30/15 ~ over $225 million • Established in 1987; HQ in Doylestown,
Slide 5: Highlights – Fourth Qtr
HIGHLIGHTS – FOURTH QTR Q4 FY15 Q4 FY14 Non- Non- In millions, except EPS GAAP GAAP Y/Y Change (non-GAAP): GAAP* GAAP* Net sales $856.7 $856.7 $758.1 $758.1 13% increase; 18% excl. FX Gross profit 91.3 91.3 74.0 74.0 23% increase Gross profit margin % (of net sales) 10.7% 10.7% 9.8% 9.8% 90 bp
Slide 6: Highlights – Full Year
HIGHLIGHTS – FULL YEAR FY15 FY14 In millions, except EPS GAAP Non-GAAP* GAAP Non-GAAP* Y/Y Change (non-GAAP): Net sales $3,218.6 $3,218.6 $2,913.6 $2,913.6 10% increase; 13% excl. FX Gross profit 327.1 327.1 301.1 301.1 9% increase Gross profit margin % (of net sales) 10.2% 10.2% 10.3% 10.3% 1
Slide 7: Sales Growth Summary
SALES GROWTH SUMMARY FOURTH QTR: Q4 FY15 – Y/Y % CHANGE As Excluding FX Excluding FX Reported Impact and Acquisitions WW Barcode & Security -0.2% 7.0% 7.0% WW Comms. & Services 37.2% 38.3% 13.2% Consolidated 13.0% 18.1% 9.2% FULL YEAR: FY15 – Y/Y % CHANGE As Excluding FX Excluding FX Reported Impact
Slide 8: WW Barcode & Security
WW BARCODE & SECURITY Net Sales, $ in millions $ in millions Q4 FY15 Q4 FY14 Down 0.2% Excluding FX, Up 7.0% Net sales $489.6 $490.5 $491 $490 Gross profit $44.4 $41.7 Gross margin 9.1% 8.5% Operating income $12.2 $12.8 Operating income % 2.5% 2.6% Non-GAAP operating income $13.4 $13.5 Non-GAAP oper
Slide 9: WW Barcode & Security
WW BARCODE & SECURITY Net Sales, $ in millions Up 2.1% FY15 FY14 $ in millions Excluding FX, Up 6.1% $1,912 Net sales $1,912.4 $1,873.2 $1,873 Gross profit $168.1 $168.2 Gross margin 8.8% 9.0% Operating income $48.6 $51.5 Operating income % 2.5% 2.8% Non-GAAP operating income $52.2 $56.1 Non-GAAP op
Slide 10: WW Communications & Services
WW COMMUNICATIONS & SERVICES Net Sales, $ in millions Q4 FY15 Q4 FY14 Up 37.2% $ in millions Excluding FX and Acquisitions, Up 13.2% Net sales $367.1 $267.6 $367 Gross profit $46.9 $32.3 Acqs. $268 Gross margin 12.8% 12.1% Operating income $12.9 $12.2 Operating income % 3.5% 4.5% Non-GAAP operating
Slide 11: WW Communications & Services
WW COMMUNICATIONS & SERVICES Net Sales, $ in millions Up 25.5% FY15 FY14 $ in millions Excluding FX and Acquisitions, Up 8.8% $1,306 Net sales $1,306.3 $1,040.5 Acqs. Gross profit $159.0 $132.9 $1,040 Gross margin 12.2% 12.8% Operating income $56.1 $54.8 Operating income % 4.3% 5.3% Non-GAAP operati
Slide 12: Q4 FY15 Key Measures
Q4 FY15 KEY MEASURES Q4 FY15 Q3 FY15 Q4 FY14 $ in millions Return on invested capital (“ROIC”)* 15.2% 12.1% 14.0% Cash and cash equivalents (Q/E) $121.6 $93.6 $194.9 Operating cash flow, trailing 12-months $75.5 $39.1 $47.7 Days sales outstanding in receivables 55 57 55 Inventory (Q/E) $553.1 $485.6
Slide 13: Q1 FY16 Outlook
Q1 FY16 OUTLOOK* For the quarter ending September 30, 2015, excluding amortization of intangible assets, change in fair value of contingent consideration, and acquisition costs: Net Sales Range from $820 million to $880 million Non-GAAP Diluted Range from $0.50 to $0.58 per share Earnings Per Sh
Slide 14: Q4 FY15 Sales Mix
Q4 FY15 SALES MIX By Technology By Geography 43% 27% Communications International & Services 57% 73% Barcode & North Security America* Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of Q4 FY15 net sales of $856.7 million *
Slide 15: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Quarter Ended June 30, 2015 Operating Pre-tax Net Diluted Income income income EPS GAAP measure $ 24,977 $ 24,911 $ 16,447 $ 0.57 Adjustment: Amortization of intangible assets 2,091 2,091 1,450 0.05 Change in fair value of contingent consider
Slide 16: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Year Ended June 30, 2015 Operating Pre-tax Net Diluted Income income income EPS GAAP measure $ 101,441 $ 99,906 $ 65,419 $ 2.27 Adjustment: Amortization of intangible assets 6,641 6,641 4,599 0.16 Change in fair value of contingent considerat
Slide 17: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Quarter Ended June 30, 2015 WW Barcode WW Comms. & Security & Services Corporate Consolidated Net sales $ 489,559 $ 367,126 $ - $ 856,685 GAAP operating income $ 12,168 $ 12,947 $ (138) $ 24,977 Adjustments: Amortization of intangible assets
Slide 18: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Year Ended June 30, 2015 WW Barcode WW Comms. & Security & Services Corporate Consolidated Net sales $ 1,912,352 $ 1,306,274 $ - $ 3,218,626 GAAP operating income $ 48,612 $ 56,083 $ (3,254) $ 101,441 Adjustments: Amortization of intangible a
Slide 19: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Q4 FY15 Q3 FY15 Q4 FY14 Return on invested capital (ROIC), annualized (a) 15.2% 12.1% 14.0% Reconciliation of Net Income to EBITDA Net income - GAAP $ 16,447 $ 12,943 $ 27,105 Plus: Income taxes 8,464 6,878 13,775 Plus: Interest expense 509 8
Slide 20: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) WW Barcode WW Comms. & Security & Services Consolidated Q4 FY15 net sales, as reported $ 489,559 $ 367,126 $ 856,685 Foreign exchange impact 35,446 2,902 38,348 Q4 FY15 net sales, excluding FX impact 525,005 370,028 895,033 Less: Acquisitions
Slide 21: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) WW Barcode WW Comms. & Security & Services Consolidated FY15 net sales, as reported $ 1,912,352 $ 1,306,274 $ 3,218,626 Foreign exchange impact 74,712 7,401 82,113 FY15 net sales, excluding FX impact 1,987,064 1,313,675 3,300,739 Less: Acquis