Slide 1: Q2 FY 2015 Financial Results Conference Call
Q2 FY 2015 FINANCIAL RESULTS CONFERENCE CALL January 29, 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 – Q2 FY15
HIGHLIGHTS – Q2 FY15 Record net sales for second quarter 2015 of $807 million, up 9% Y/Y, and non-GAAP diluted EPS of $0.68; above our expected range Worldwide Barcode & Security sales increased 5% Y/Y, or 8% excluding foreign exchange Worldwide Communications & Services sales increased 16% Y/
Slide 4: Highlights – Q2 FY15
HIGHLIGHTS – Q2 FY15 Q2 FY15 Q2 FY14 Non- Non- In millions, except EPS GAAP GAAP Y/Y Change (non-GAAP): GAAP* GAAP* Net sales $807.0 $807.0 $740.6 $740.6 9.0% increase Gross profit 78.1 78.1 77.3 77.3 1.1% increase Gross profit margin % (of net sales) 9.7% 9.7% 10.4% 10.4% 75 bp margin decreas
Slide 5: WW Barcode & Security
WW BARCODE & SECURITY Net Sales, $ in millions Q2 FY15 Q2 FY14 $ in millions Up 4.9% Net sales $499.8 $476.2 Excluding FX, Up 8.1% $500 Gross profit $41.9 $42.7 $476 Gross margin 8.4% 9.0% Operating income $13.6 $13.0 Operating income % 2.7% 2.7% Non-GAAP operating income $14.3 $14.0 Non-GAAP operat
Slide 6: WW Communications & Services
WW COMMUNICATIONS & SERVICES Net Sales, $ in millions Q2 FY15 Q2 FY14 $ in millions Up 16.2% Excluding FX, Up 16.7% Net sales $307.2 $264.4 Gross profit $36.2 $34.5 $307 $264 Gross margin 11.8% 13.1% Operating income $13.9 $14.5 Operating income % 4.5% 5.5% Non-GAAP operating income $15.1 $14.9 Non-
Slide 7: Q2 FY15 Key Measures
Q2 FY15 KEY MEASURES Q2 FY15 Q1 FY15 Q2 FY14 $ in millions Return on invested capital (“ROIC”)* 14.8% 16.2% 16.2% Cash and cash equivalents (Q/E) $121.5 $139.9 $157.1 Operating cash flow, trailing 12-months $36.7 $2.7 $140.8 Days sales outstanding in receivables 55 55** 53 Inventory (Q/E) $518.4 $49
Slide 8: Q3 FY15 Outlook
Q3 FY15 OUTLOOK* For the quarter ending March 31, 2015, excluding amortization of intangible assets, change in fair value of contingent consideration, and acquisition costs: Range from $800 million to $820 million Net Sales Range midpoint: $810 million Non-GAAP Diluted Range from $0.54 to $0.5
Slide 9: WW Barcode & Security Highlights
WW BARCODE & SECURITY HIGHLIGHTS Net Sales, $ in millions 62% of overall sales Up 4.9% Record sales results for POS & Excluding FX, Up 8.1% Barcode teams in North America $500 $476 and Europe Strong big deal quarter Positive results from almost every major product category Key investments
Slide 10: WW Communications & Services Highlights
WW COMMUNICATIONS & SERVICES HIGHLIGHTS Net Sales, $ in millions 38% of overall sales Up 16.2% Excluding FX, Up 16.7% First full quarter with Imago; very good results $307 $264 With Imago, now offer a stronger portfolio of video, voice and data products in Europe Key investments in growth ar
Slide 11: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Quarter Ended December 31, 2014 Operating Pre-tax Net Diluted Income income income EPS GAAP measure $ 25,990 $ 25,938 $ 16,821 $ 0.58 Adjustment: Amortization of intangible assets 1,443 1,443 1,025 0.04 Change in fair value of contingent cons
Slide 12: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Quarter Ended December 31, 2014 WW Barcode WW Comms. & Security & Services Corporate Consolidated Net sales $ 499,772 $ 307,247 $ - $ 807,019 GAAP operating income $ 13,576 $ 13,888 $ (1,474) $ 25,990 Adjustments: Amortization of intangible a
Slide 13: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in thousands) Q2 FY15 Q1 FY15 Q2 FY14 Return on invested capital (ROIC), annualized (a) 14.8% 16.2% 16.2% Reconciliation of Net Income to EBITDA Net income - GAAP $ 16,821 $ 19,208 $ 18,298 Plus: Income taxes 9,117 10,028 9,511 Plus: Interest expense 207 1
Slide 14: Appendix: Non-GAAP Financial Information
APPENDIX: NON-GAAP FINANCIAL INFORMATION ($ in millions) Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q2 2015 net sales $ 499.8 Foreign exchange impact 14.7 Q2 2015 net sales, excluding FX impact $ 514.5 Q2 2014 sales $ 476.2 % Change 8.1% Worldwide