Tech Data — Q1 FY2021 Earnings Presentation
26 slides from Tech Data's earnings presentation, May 28, 2020
Slide 1: Q1 Fiscal Year 2021 Financial Highlights
Q1 Fiscal Year 2021 Financial Highlights For the quarter ended April 30, 2020 May 28, 2020
Slide 2: Forward-Looking Statements
Forward‐Looking Statements Certain statements in this communication may contain “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data’s plans, objectives, expectations and intentions, Tech D
Slide 3: Worldwide Net Sales
Worldwide Net Sales $ in Billions Q1 FY21: $10.4 • Worldwide net sales were $8.2 billion, a decrease of 3% $9.1 $9.1 3% compared to the prior-year quarter. $8.4 4% 3% $8.2 4% 3% 41% • Portfolio optimization actions reduced net sales by Asia Pacific 47% 46% approximately 3 percent. 45% 48% Americas E
Slide 4: Worldwide Gross Profit and Margin
Worldwide Gross Profit and Margin $ in Millions Q1 FY21: • Gross profit of $531.7 million increased 4% compared to the prior-year quarter and increased 7% on a constant currency basis. • Gross margin increased 44 basis points compared to the prior-year quarter. 4
Slide 5: Worldwide SG&A Expenses
Worldwide SG&A Expenses $ in Millions Q1 FY21: • Non-GAAP SG&A expenses of $402.8 million increased 5% compared to the prior-year quarter and increased 7% on a constant currency basis. • Non-GAAP SG&A as a percentage of net sales increased 35 basis points compared to the prior-year quarter. • GAAP d
Slide 6: Worldwide Operating Income
Worldwide Operating Income $ in Millions Q1 FY21: • Worldwide non-GAAP operating income of $128.9 million increased 3% compared to the prior-year quarter, and increased 5% on a constant currency basis. • Worldwide non-GAAP operating margin increased 10 basis points from the prior-year quarter. (1) S
Slide 7: Worldwide Net Income and EPS
Worldwide Net Income and EPS Q1 FY21: $ in Millions (except EPS) • The effective tax rate was 20%, compared to 23% in the prior-year quarter. The non-GAAP effective tax rate was 22%, compared to 23% in the prior-year quarter. • Non-GAAP net income of $80.1 million increased 5% compared to the prior-
Slide 8: Regional Results - Americas Net Sales
Regional Results ‐ Americas Net Sales $ in Billions $4.3 $4.2 $4.3 Q1 FY21: $3.9 $3.8 • Americas’ reported net sales were $3.9 billion, an increase of 4% compared to the prior-year quarter • Portfolio optimization actions reduced net sales by approximately 2 percent. Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20
Slide 9: Regional Results - Americas Operating Income
Regional Results ‐ Americas Operating Income (1) $ in Millions Q1 FY21: • Americas’ non-GAAP operating income of $83.7 million decreased 1% compared to the prior-year quarter, and decreased 1% on a constant currency basis. • Non-GAAP operating margin decreased 12 basis points compared to the prior-y
Slide 10: Regional Results - Europe Net Sales
Regional Results ‐ Europe Net Sales $ in Billions Q1 FY21: $5.8 • Europe’s reported net sales were $4.0 billion, $4.6 a decline of 8% compared to the prior-year $4.3 $4.4 $4.0 quarter. • Portfolio optimization actions reduced net sales by approximately 3 percent. • On a constant currency basis, net
Slide 11: Regional Results - Europe Operating Income
Regional Results ‐ Europe Operating Income (1) $ in Millions Q1 FY21: • Europe’s non-GAAP operating income of $52.0 million increased 14% compared to the prior-year quarter, and increased 19% on a constant currency basis. • Non-GAAP operating margin improved 25 basis points from the prior-year quart
Slide 12: Regional Results - Asia Pacific Net Sales
Regional Results ‐ Asia Pacific Net Sales $ in Billions Q1 FY21: $0.34 $0.33 $0.31 $0.29 • Asia Pacific reported net sales were $0.26 billion, a decrease of 16% compared to the $0.26 prior-year quarter. • Portfolio optimization actions reduced net sales by approximately 12 percent. • On a constant c
Slide 13: Regional Results - Asia Pacific Operating Income
Regional Results ‐ Asia Pacific Operating Income (1) $ in Millions Q1 FY21: • The Asia Pacific region’s non-GAAP operating loss was -$0.5 million. • Non-GAAP operating margin declined 110 basis points from the prior-year quarter. (1) Before stock compensation expense. (2) See the GAAP to non-GAAP re
Slide 14: Worldwide Cash Metrics
Worldwide Cash Metrics Cash Flow from Operations Cash Conversion Cycle $ in Millions Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Days of Sales 59 54 58 54 60 Outstanding Days of Supply 38 33 33 29 36 Days of Purchases (78) (69) (74) (68) (76) Outstanding Cash Conversion 19 18 17 15 20 Cycle Q1 FY21: • N
Slide 15: Worldwide Balance Sheet Highlights
Worldwide Balance Sheet Highlights Q1 FY21: • Accumulated other comprehensive loss was $55.1 million. • Capital expenditures were $19.5 million. • At January 31, 2020, the company had $3.1 billion of equity, and 35.66 million shares outstanding resulting in book value of $87.12 per share. • At Janua
Slide 16: Worldwide Return on Invested Capital
Worldwide Return on Invested Capital • Company’s Weighted Average Cost of Capital is approximately 9%. • Adjusted return on invested capital in Q1 FY21 TTM (trailing twelve months) was 15% compared to 14% in the prior-year quarter. (1) See reconciliation of ROIC to adjusted ROIC calculation in appen
Slide 17: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX GAAP to Non‐GAAP Reconciliations 17
Slide 18: SG&A
SG&A $ in thousands Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Net Sales$ 8,406,424 $ 9,092,244 $ 9,118,944 $ 10,380,809 $ 8,175,174 SG&A Expenses (GAAP) $ 405,534 $ 431,694 $ 415,242 $ 438,208 $ 427,863 Acquisition-related intangible assets amortization expense (20,879) (21,182) (21,044) (23,812) (24,
Slide 19: Operating Income Q1 FY21
Operating Income Q1 FY21 (In thousands) Q1 FY21 Stock Ame r icas (1) Europe (1) Asia Pacific (1) Compensation Consolidated Expense Net Sales $ 3,944,760 $ 3,971,130 $ 259,284 $ 8,175,174 Operating income (loss) (GAAP) (1) $ 49,783 $ 45,884 $ (3,245) $ (6,307) $ 86,115 Acquisition, integration and re
Slide 20: Operating Income Q4 FY20
Operating Income Q4 FY20 (In thousands) Q4 FY20 Stock Ame r icas (1) Europe (1) Asia Pacific (1) Compensation Consolidated Expense Net Sales $ 4,291,774 $ 5,760,643 $ 328,392 $ 10,380,809 Operating income (GAAP) (1) $ 89,095 $ 131,893 $ 5,562 $ (8,480) $ 218,070 Acquisition, integration and restruct
Slide 21: Operating Income Q3 FY20
Operating Income Q3 FY20 (In thousands) Q3 FY20 Stock Ame r icas (1) Europe (1) Asia Pacific (1) Compensation Consolidated Expense Net Sales $ 4,202,320 $ 4,622,270 $ 294,354 $ 9,118,944 Operating income (GAAP) (1) $ 82,420 $ 66,536 $ 279 $ (7,347) $ 141,888 Acquisition, integration and restructurin
Slide 22: Operating Income Q2 FY20
Operating Income Q2 FY20 (In thousands) Q2 FY20 Stock Ame r icas (1) Europe (1) Asia Pacific (1) Compensation Consolidated Expense Net Sales $ 4,316,731 $ 4,439,627 $ 335,886 $ 9,092,244 Operating income (GAAP) (1) $ 93,085 $ 37,649 $ 2,068 $ (8,055) $ 124,747 Acquisition, integration and restructur
Slide 23: Operating Income Q1 FY20
Operating Income Q1 FY20 (In thousands) Q1 FY20 Stock Ame r icas (1) Europe (1) Asia Pacific (1) Compensation Consolidated Expense Net Sales $ 3,789,198 $ 4,309,500 $ 307,726 $ 8,406,424 Operating income (GAAP) (1) $ 68,633 $ 36,420 $ 876 $ (8,305) $ 97,624 Acquisition, integration and restructuring
Slide 24: Net Income and EPS
Net Income and EPS (In thousands, except per share data) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS Net Income Diluted EPS GAAP Results $55,400 $1.49 $79,250 $2.16 $90,770 $2.52 $149,080 $4.15 $48,065 $1.34 Acqu
Slide 25: Return on Invested Capital
Return on Invested Capital $ in thousands Twelve months ended April 30, TTM Net Operating Profit After Tax (NOPAT)*: 2019 2020 Operating income$ 520,930 $ 570,820 Income taxes on operating income (1) (52,272) (127,358) NOPAT $ 468,658 $ 443,462 Average Invested Capital: Short-term debt (5-qtr end av
Slide 26: Adjusted Return on Invested Capital
Adjusted Return on Invested Capital $ in thousands Twelve months ended April 30, TTM Net Operating Profit After Tax (NOPAT), as adjusted*: 2019 2020 Non-GAAP operating income (1) $ 708,588 $ 698,584 Income taxes on non-GAAP operating income (2) (179,283) (159,929) NOPAT, as adjusted $ 529,305 $ 538,