ScanSource, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Provides Earnings Guidance for the Third Quarter of Fiscal 2015 and Tax Rate Guidance for the Full Year of 2015
January 30, 2015 at 02:35 am IST
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ScanSource, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2014. For the quarter, the company reported net sales were $807,019,000 compared to $740,618,000 for the same period a year ago. Operating income was $25,990,000 compared to $27,461,000 for the same period a year ago. Income before income taxes was $25,938,000 compared to $27,809,000 for the same period a year ago. Net income was $16,821,000 compared to $18,298,000 for the same period a year ago. Net income per diluted common share was $0.58 compared to $0.64 for the same period a year ago. On non-GAAP basis, the company reported operating income of $29,370,000, pre-tax income of $29,318,000 and net income of $19,666,000 or $0.68 per diluted share compared to operating income of $28,890,000, pre-tax income of $29,238,000 and net income of $19,237,000 or $0.67 per diluted share for the same period a year ago. EBITDA was $28,588,000 compared to $29,822,000 for the same period a year ago. Adjusted EBITDA (numerator for ROIC) (non-GAAP) was $30,525,000 compared to $30,321,000 for the same period a year ago. Excluding the translation impact of foreign currencies, net sales increased 11.1% year-over-year. The increase in net sales included the acquisition of Imago, Europe's leading value-added distributor of video and voice solutions, during September 2014. Return on invested capital, which excludes the change in fair value of contingent consideration and acquisition cost, totaled 14.8% for the quarter compared to 16.2% in the prior year and sequential quarter.
For the six months, the company reported net sales were $1,598,738,000 compared to $1,472,522,000 for the same period a year ago. Operating income was $54,968,000 compared to $55,682,000 for the same period a year ago. Income before income taxes was $55,174,000 compared to $56,248,000 for the same period a year ago. Net income was $36,029,000 compared to $37,735,000 for the same period a year ago. Net income per diluted common share was $1.25 compared to $1.33 for the same period a year ago. Cash and cash equivalents at December 31, 2014, were $121.5 million, down from the previous quarter and principally from higher inventory levels. At December 31, 2014, the company had $5.4 million of debt, the same as year ago, for an industrial development revenue bond for distribution facility in Mississippi.
The company announced its current expectations for the third quarter of fiscal year 2015. The company expected net sales for the quarter ending March 31, 2015 to range from $800 million to $820 million and non-GAAP diluted earnings per share to range from $0.54 to $0.57 per share. Non-GAAP diluted earnings per share exclude amortization of intangibles, change in fair value of contingent consideration, and acquisition costs.
The company estimated the effective tax rate for fiscal year 2015 at approximately 34% to 35%.
ScanSource, Inc. is a hybrid distributor connecting devices to partners across hardware, software-as-a-service (SaaS), connectivity and cloud. The Company provides technology solutions and services from suppliers of mobility, barcode, point-of-sale (POS), payments, physical security and networking, communications and collaboration, connectivity and cloud services. It segments include Specialty Technology Solutions and Modern Communications & Cloud. Its Specialty Technology Solutions segment includes enterprise mobile computing, data capture, barcode printing, POS, payments, networking, electronic physical security, cyber security and other technologies. Its Modern Communications & Cloud segment includes communications technologies and services for voice, video conferencing, wireless, data networking, cyber security, cable, unified communications and collaboration, cloud and technology services. Its segments operate in the United States, Canada, Brazil and the United Kingdom.
ScanSource, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Provides Earnings Guidance for the Third Quarter of Fiscal 2015 and Tax Rate Guidance for the Full Year of 2015