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ScanSource Has Record Quarterly Net Sales; EPS Exceeds Forecast Range

 

GREENVILLE, S.C.--(BUSINESS WIRE)--ScanSource, Inc. (NASDAQ: SCSC), a leading global provider of technology products and solutions, today announced financial results for the second quarter ended December 31, 2018.


  Quarter ended December 31,
      2018 2017 Change
      (in millions, except per share data)
Net sales     $ 1,046.0 $ 1,032.2 1 %
Operating income       29.7       22.3     33 %
Non-GAAP operating income(1)       36.7       34.7     6 %
GAAP net income       20.0       8.0     151 %
Non-GAAP net income(1)       25.4       23.0     10 %
GAAP diluted EPS     $ 0.78     $ 0.31     152 %
Non-GAAP diluted EPS(1)     $ 0.99     $ 0.90     10 %
(1) Non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration and other non-GAAP items. A reconciliation of non-GAAP financial information to GAAP financial information is presented in the Supplementary Information (Unaudited) below.

"We are very pleased with our outstanding second quarter results and continued successful execution of our strategic plan," said Mike Baur, CEO, ScanSource, Inc. "Our strategic plan is focused on building end customer solutions and enabling our channel partners to deliver more value."

Quarterly Results

For the second quarter of fiscal year 2019, net sales increased 1% to $1,046.0 million, reflecting sales growth in North America and Brazil. Organic sales, which exclude the impact from foreign currency translation and recent acquisitions, grew 3.2% year-over-year. Operating income increased to $29.7 million, as the expense for the change in contingent consideration related to Network1 decreased. Non-GAAP operating income increased 6% to $36.7 million, driven by higher sales volumes and higher margins.

On a GAAP basis, net income for the second quarter of fiscal year 2019 totaled $20.0 million, or $0.78 per diluted share, compared with net income of $8.0 million, or $0.31 per diluted share, for the prior-year quarter. Non-GAAP net income for the second quarter of fiscal year 2019 increased 10% to $25.4 million, or $0.99 per diluted share, compared to $23.0 million, or $0.90 per diluted share, for the prior-year quarter.

Forecast for Next Quarter

For the third quarter of fiscal year 2019, ScanSource expects net sales to range from $910 million to $970 million, diluted earnings per share to range (click for more)

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