Slide 1: Q2 FY 2014 Financial Results Conference Call
Q2 FY 2014 FINANCIAL RESULTS CONFERENCE CALL January 30, 2014 at 5:00 pm ET Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain comments, which are “forward-looking” statements that involve plans, strategies, economic performance and trends, projections, expectations, or beliefs about future events and other statements that are not descriptions of historical facts, may be for
Slide 3: Highlights – Q2 FY14
Highlights – Q2 FY14 3 Second quarter 2014 net sales of $741 million, at the lower end of our expected range, and EPS of $0.64, at the upper end of our expected range Both North America Communications business units (ScanSource Communications and Catalyst) had solid Y/Y sales growth and higher m
Slide 4: Income Statement Highlights
Q2 FY13 Q2 FY14 GAAP Non-GAAP* Net sales $740.6 $747.7 $747.7 Gross margin % (of net sales) 10.43% 9.94% 9.94% SG&A expenses $49.3 $47.3 $47.3 Belgian tax compliance/personnel costs -- $2.1 -- Change in FV of contingent consideration $0.5 $0.5 $0.5 Operating income $27.5 $24.4 $26.5 Operating income
Slide 5: Q2 FY14 Sales Mix
Q2 FY14 Sales Mix Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of Q2 FY14 net sales of $740.6 million * Includes the United States and Canada. 64% Barcode & Security 74% North America* 36% Communications & Services 5 By
Slide 6: WW Barcode & Security Net Sales
Q2 FY14 Q2 FY13 Net sales $476.2 $489.1 Gross profit $42.8 $44.4 Gross margin 9.0% 9.1% Operating income $13.0 $13.3 Operating income % 2.7% 2.7% $489 $476 Q2 FY13 Q2 FY14 WW Barcode & Security Net Sales, $ in millions Down (2.6%) Excluding FX, Down (2.7%)* $ in millions 6 * See Appendix for reconci
Slide 7: WW Communications & Services Net Sales
Q2 FY14 Q2 FY13 Net sales $264.4 $258.6 Gross profit $34.5 $29.9 Gross margin 13.1% 11.6% Operating income $14.5 $11.1 Operating income % 5.5% 4.3% $259 $264 Q2 FY13 Q2 FY14 WW Communications & Services $ in millions Net Sales, $ in millions Up 2.2% Excluding FX, Up 1.9%* 7 * See Appendix for reconc
Slide 8: Q2 FY14 Key Measures
Q2 FY14 Q1 FY14 Q2 FY13 Return on invested capital (“ROIC”)* 15.9% 16.9% 15.2% Cash and cash equivalents (Q/E) $157.1 $193.8 $31.5 Operating cash flow $(44.4) $45.7 $(12.4) Days sales outstanding in receivables 53 55 54 Inventory (Q/E) $467.2 $433.1 $474.7 Inventory turns 5.9 6.3 5.6 Paid for invent
Slide 9: WW Barcode & Security Highlights
WW Barcode & Security Highlights Net Sales, $ in millions Down (2.6%) Excluding FX, Down (2.7%)* 9 64% of overall sales Better market demand for our POS and Barcode units across all geographies Slowness in big deals continued Record sales quarter for Brazil for second quarter in a row Name
Slide 10: WW Communications & Services Highlights
WW Communications & Services Highlights Net Sales, $ in millions Up 2.2% Excluding FX, Up 1.9%* 10 36% of overall sales ScanSource Communications in North America and Catalyst solid Y/Y growth ̶ Higher big deals ̶ Higher gross profit margin from increase in net service fee revenue and vendor pro
Slide 11: Q3 FY14 Outlook
Q3 FY14 Outlook * For the Quarter Ending March 31, 2014: Net Sales Diluted Earnings Per Share Range from $700 million to $720 million Range midpoint: $710 million Range from $0.53 to $0.55 per share Range midpoint: $0.54 * Outlook as of January 30, 2014 11
Slide 12: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 12 Q2 FY14 Q1 FY14 Q2 FY13 Return on invested capital (ROIC), annualized (a) 15.9% 16.9% 15.2% Reconciliation of Net Income (Loss) to EBITDA Net income (loss) - GAAP $ 18,298 $ 19,437 $ 16,357 Plus: Income taxes 9,511 9,002 8,417 Plus: Interest expense 235 24
Slide 13: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 13 Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q2 2014 net sales $ 476.2 Foreign exchange impact (0.4) Q2 2014 net sales, excluding FX impact $ 475.8 Q2 2013 sales $ 489.1 % Change -2.7% Worldwide Communicat