Slide 1: Q1 FY 2014 Financial Results Conference Call
Q1 FY 2014 FINANCIAL RESULTS CONFERENCE CALL October 24, 2013 at 5:00 pm ET
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 – Q1 FY14
Highlights – Q1 FY14 • First quarter 2014 net sales of $732 million, at the upper end of our expected range – Solid Y/Y growth from North America Communications and Security • International business had better operating results than a year ago • Good overall quarter for our Communications and Servic
Slide 4: New Segments Enhance Technology Focus
New Segments Enhance Technology Focus Worldwide Barcode Worldwide Communications and Security Segment and Services Segment President: Buck Baker President: Mike Ferney Technologies: Technologies: POS and Barcode Communications Physical Security Services Business Units: Business Units: 4
Slide 5: Income Statement Highlights
Income Statement Highlights In millions, except EPS Q1 FY14 Q1 FY13 Net sales $731.9 $733.6 Gross margin % (of net sales) 10.5% 10.1% SG&A expenses $47.5 $47.1 Change in FV of contingent consideration $0.7 $0.8 Operating income $28.2 $26.2 Operating income % (of net sales) 3.86% 3.57% Net income $19
Slide 6: Q1 FY14 Sales Mix
Q1 FY14 Sales Mix By Segment By Geography Q1 FY14 Net Sales: $731.9 million Q1 FY14 Net Sales: $731.9 million 38% 24% Communications International & Services 74% 62% North 76% Barcode & America* North Security America* Barcode & Security = Worldwide Barcode and Security Communications & Services = W
Slide 7: WW Barcode & Security Segment
WW Barcode & Security Segment Net Sales, $ in millions Down (1.2%) Q1 FY14 Q1 FY13 Excluding FX, Down (1.2%) $ in millions $456 Net sales $450.6 $456.2 $451 Gross profit $40.7 $41.3 Gross margin 9.0% 9.0% Operating income $12.0 $12.6 Operating income % 2.7% 2.8% Q1 FY13 Q1 FY14 7
Slide 8: WW Communications & Services Segment
WW Communications & Services Segment Net Sales, $ in millions Up 1.4% Q1 FY14 Q1 FY13 Excluding FX, Up 1.0% $ in millions Net sales $281.3 $277.4 $277 $281 Gross profit $35.8 $32.8 Gross margin 12.7% 11.8% Operating income $16.3 $13.6 Operating income % 5.8% 4.9% Q1 FY13 Q1 FY14 8
Slide 9: Q1 FY14 Key Measures
Q1 FY14 Key Measures $ in millions Q1 FY14 Q4 FY13 Q1 FY13 Return on invested capital (“ROIC”)* 16.9% 17.2% 17.0% Cash and cash equivalents (Q/E) $193.8 $148.2 $38.7 Operating cash flow $45.7 $53.4 $2.4 Days sales outstanding in receivables 55 55 56 Inventory (Q/E) $433.1 $402.3 $483.2 Inventory tur
Slide 10: WW Barcode & Security Highlights
WW Barcode & Security Highlights Net Sales, $ in millions • 62% of overall sales • POS & Barcode units declined year-over- Down (1.2%) Excluding FX, Down (1.2%) year – Big deals delayed and broken into smaller pieces – More deals going direct to Tier 1 or end users $456 $451 • POS & Barcode in North
Slide 11: WW Communications & Services Highlights
WW Communications & Services Highlights Net Sales, $ in millions • 38% of overall sales • Increased 5% sequentially Up 1.4% Excluding FX, Up 1.0% • North America Communications has its second best quarter ever $277 $281 • ScanSource Catalyst grew Q/Q – Strong Avaya growth across all products – Incre
Slide 12: Q2 FY14 Outlook
Q2 FY14 Outlook For the Quarter Ending December 31, 2013: Net • Range from $740 million to $760 million Sales • Range midpoint: $750 million Diluted Earnings • Range from $0.62 to $0.64 per share Per Share • Range midpoint: $0.63 Outlook as of October 24, 2013 12
Slide 13: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Q1 FY14 Q4 FY13 Q1 FY13 Return on invested capital (ROIC), annualized (a) 16.9% 17.2% 17.0% Reconciliation of Net Income (Loss) to EBITDA Net income (loss) - GAAP $ 19,437 $ (13,315) $ 17,642 Plus: Income taxes 9,002 (6,352) 9,097 Plus: Interest expense 247 4
Slide 14: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q1 2014 net sales $ 450.6 Foreign exchange impact 0.2 Q1 2014 net sales, excluding FX impact $ 450.8 Worldwide Barcode & Security Q1 2013 sales $ 456.2 % Change -1