ScanSource, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended June 30, 2018. For the quarter, the company reported net sales of $993,852,000 compared to $917,291,000 a year ago. Operating income was $19,759,000 compared to $22,111,000 a year ago. Income before income taxes was $18,043,000 compared to $23,420,000 a year ago. Net income was $10,388,000 or $0.41 per basic and $0.40 per diluted share compared to $18,970,000 or $0.75 per basic and $0.74 per diluted share a year ago. EBITDA was $29,828,000 compared to $30,630,000 a year ago. Adjusted EBITDA (non-GAAP) was $35,157,000 compared to $30,960,000 a year ago. On non-GAAP basis, operating income was $30.8 million, net income was $19.9 million or diluted EPS was $0.77 compared to operating income of $27.8 million, net income of $17.3 million or diluted EPS of $0.68 for the same period a year ago. The company had $31 million of operating cash flow for the fourth quarter and $28 million for the fiscal year 2018. GAAP EPS includes a higher-than-expected expense for the change in fair value of contingent consideration as a result of better-than-expected results for Network1 in Brazil. Fourth quarter E GAAP EPS also included an $0.08 benefit from a favorable tax recovery in Brazil, which was a recovery of tax overpayments over the past 8 years. The company's non-GAAP result exclude this benefit from the favorable tax recovery. Operating income decreased largely as a result of increased expense for the change in fair value of the contingent consideration. Non-GAAP operating income increased 11%, primarily from higher net sales and the addition of the POS Portal acquisition. Non-GAAP pre-tax income was $28,428,000 against $27,737,000 a year ago.

For the year, the company reported net sales of $3,846,260,000 compared to $3,568,186,000 a year ago. Operating income was $67,639,000 compared to $88,239,000 a year ago. Income before income taxes was $60,925,000 compared to $101,495,000 a year ago. Net income was $33,153,000 or $1.30 per basic and $1.29 per diluted share compared to $69,246,000 or $2.74 per basic and $2.71 per diluted share a year ago. EBITDA was $107,569,000 compared to $129,678,000 a year ago. Adjusted EBITDA (non-GAAP) was $142,617,000 compared to $121,986,000 a year ago. On non-GAAP basis, operating income of $124.0 million, net income of $79.8 million or diluted EPS of $3.11 compared to operating income was $110.2 million, net income was $70.3 million or diluted EPS was $2.75 for the same period a year ago. Non-GAAP operating income increased 12%, primarily from higher sales volumes, higher gross margin and the addition of the POS Portal acquisition. Non-GAAP pre-tax income was $116,630,000 against $109,327,000 a year ago.

For the first quarter of fiscal year 2019, the company expects net sales to range from $950 million to $1.01 billion, diluted earnings per share to range from $0.56 to $0.62 per share and non-GAAP diluted earnings per share to range from $0.83 to $0.89 per share. Non-GAAP diluted earnings per share exclude amortization of intangible assets related to acquisitions and change in fair value of contingent consideration and other non-GAAP items. . The midpoint of forecast range reflects organic sales growth of somewhere between 6% to 7% for both segments and a gross profit margin that's a little over 11%. For the first quarter of fiscal 2019, the company assumes approximately $2.8 million for interest expense. For the first quarter fiscal 2019, the company estimates the tax range -- tax rate to be in the range of 26% to 27%. The company expects amortization of intangible assets of $0.14 per share.

For fiscal year 2019, the company estimates the effective tax rate to range from 26% to 27%.