Slide 1: Q4 FY 2013 Financial Results Conference Call
Q4 FY 2013 FINANCIAL RESULTS CONFERENCE CALL August 22, 2013 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 – Q4 FY13
Highlights – Q4 FY13 • Fourth quarter 2013 net sales of $713 million, below our expected range – Lack of big deals in our POS & Barcode business – Weaker-than-planned sales from ScanSource Catalyst • Record sales quarters for North America Communications, Security, and Mexico – Second highest sales
Slide 4: New Segments Enhance Technology Focus
New Segments Enhance Technology Focus 4 Worldwide Barcode and Security Segment Worldwide Communications and Services Segment President: Buck Baker Technologies: POS and Barcode Physical Security Business Units: President: Mike Ferney Technologies: Communications Services Business Units:
Slide 5: Q4 FY13 Non-Cash Impairment Charges
Q4 FY13 Non-Cash Impairment Charges Operating Income Net Income Diluted EPS GAAP measure $(20.4) $(13.3) $(0.48) Adjustments: Impairment charges – ERP* 28.2 18.0 0.64 Impairment charges – goodwill* 20.6 15.2 0.54 Non-GAAP measure* $28.4 $19.9 $0.71 % of net sales 3.98% In millions, except EPS * Dilu
Slide 6: Income Statement Highlights Q4 FY13
Income Statement Highlights Q4 FY13 GAAP Non-GAAP* Q4 FY12 Net sales $712.7 $712.7 $754.5 Gross margin % (of net sales) 10.6% 10.6% 9.8% SG&A expenses 46.8 46.8 46.6 Impairment charges 48.8 -- -- Change in FV of contingent consideration 0.4 0.4 (1.1) Operating income (20.4) 28.4 28.3 Operating incom
Slide 7: Q4 FY13 Sales Mix
Q4 FY13 Sales Mix By Segment By Geography Q4 FY13 Net Sales: $712.7 million Q4 FY13 Net Sales: $712.7 million 74% North America* Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of net sales * Includes the United States and
Slide 8: WW Barcode & Security Segment Q4
$454 $445 4Q FY12 4Q FY13 WW Barcode & Security Segment Net Sales, $ in millions Down (2.1%) Excluding FX, Down (2.0%) Q4 FY13 Q4 FY12 Gross profit $43.3 $42.6 Gross margin 9.7% 9.4% Operating income (loss) $(1.7) $17.2 Impairment charge - goodwill 15.1 -- Adjusted operating income $13.5 $17.2 Opera
Slide 9: WW Barcode & Security Segment FY13
$1,837 $1,828 FY12 FY13 WW Barcode & Security Segment Net Sales, $ in millions Down (0.5%) Excluding FX, Up 1.4% FY13 FY12 Gross profit $168.1 $169.1 Gross margin 9.2% 9.2% Operating income (loss) $34.7 $56.7 Impairment charge - goodwill 15.1 -- Adjusted operating income $49.8 $56.7 Operating income
Slide 10: WW Communications & Services Segment Q4
$300 $268 4Q FY12 4Q FY13 WW Communications & Services Segment Q4 FY13 Q4 FY12 Gross profit $32.3 $31.2 Gross margin 12.1% 10.4% Operating income (loss) $9.5 $11.1 Impairment charge - goodwill 5.4 -- Adjusted operating income $14.9 $11.1 Operating income % 5.6% 3.7% $ in millions Net Sales, $ in mil
Slide 11: WW Communications & Services Segment FY13
$1,178 $1,049 FY12 FY13 WW Communications & Services Segment FY13 FY12 Gross profit $124.8 $132.9 Gross margin 11.9% 11.3% Operating income (loss) $44.6 $56.8 Impairment charge - goodwill 5.4 -- Adjusted operating income $50.0 $56.8 Operating income % 4.8% 4.8% $ in millions Net Sales, $ in millions
Slide 12: Q4 FY13 Key Measures
Q4 FY13 Key Measures Q4 FY13 Q3 FY13 Q4 FY12 Return on invested capital (“ROIC”)* 17.2% 13.3% 18.1% Cash and cash equivalents (Q/E) $148.2 $93.9 $29.2 Operating cash flow $53.4 $86.0 $34.9 Days sales outstanding in receivables 55 55 55 Inventory (Q/E) $402.3 $418.0 $487.9 Inventory turns 6.2 5.4 5.4
Slide 13: WW Barcode & Security Highlights
$454 $445 4Q FY12 4Q FY13 WW Barcode & Security Highlights Net Sales, $ in millions Down (2.1%) Excluding FX, Down (2.0%) • 62% of overall sales • POS & Barcode in North America and Europe declined year-over-year – Lack of big deals – More aggressive competitive landscape • Second highest sales quar
Slide 14: WW Communications & Services Highlights
$300 $268 4Q FY12 4Q FY13 WW Communications & Services Highlights Net Sales, $ in millions Down (10.8%) Excluding FX, Down (10.9%) • 38% of overall sales • Record sales quarter for ScanSource Communications in North America – Record quarters with Polycom Voice, ShoreTel, Sonus and Chief • ScanSource
Slide 15: Q1 FY14 Outlook
Q1 FY14 Outlook For the Quarter Ending September 30, 2013: Net Sales Diluted Earnings Per Share • Range from $715 million to $735 million • Range midpoint: $725 million • Range from $0.56 to $0.58 per share • Range midpoint: $0.57 Outlook as of August 22, 2013 15
Slide 16: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 16 Q4 FY13 Q3 FY13 Q4 FY12 Return on invested capital (ROIC), annualized (a) 17.2% 13.3% 18.1% Reconciliation of Net Income (Loss) to EBITDA Net income (loss) - GAAP $ (13,315) $ 13,978 $ 19,785 Plus: Income taxes (6,352) 7,202 8,846 Plus: Interest expense 41
Slide 17: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 17 Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q4 2013 net sales $ 444.8 Fx impact 0.3 Q4 2013 net sales, excluding Fx impact $ 445.1 International Q4 2012 sales $ 454.1 % Change -2.0% FY 2013 net sales $ 1,