ScanSource Reports First Quarter Results
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GREENVILLE, S.C.--(BUSINESS WIRE)-- ScanSource, Inc. (NASDAQ: SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and electronic security products for the reseller market, today announced complete financial results for its first quarter ended September 30, 2009.
Quarter ended September 30, 2009: Net Sales $488 million Net income $10.9 million Diluted EPS $0.41 per share
"We are pleased that our sales results exceeded our expectations," said Mike Baur, CEO, ScanSource, Inc. "We believe that our business units gained market share across all geographies."
For the quarter ended September 30, 2009, net sales decreased 9.5% to $488 million compared to $540 million for the quarter ended September 30, 2008. Quarterly operating income also decreased 14.3% to $17.7 million from $20.6 million for the comparable prior year quarter. Net income decreased 12.0% to $10.9 million for the quarter ended September 30, 2009 versus $12.4 million for the quarter ended September 30, 2008. The effective tax rate for the quarter was 37.4%, compared to 38.2% for the prior year quarter. Diluted earnings per share decreased 12.8% to $0.41 compared to $0.47 in the prior year quarter.
Forecast for Next Quarter
The Company announced its revenue forecast for the second quarter of fiscal 2010. ScanSource expects net revenues for the December 2009 quarter could range from $475 million to $495 million.
Safe Harbor Statement
This press release contains comments that are "forward looking" statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results, including, but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company's annual report on Form 10-K for the year ended June 30, 2009 filed with the Securities and Exchange Commission.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.
ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #854 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
September 30, June 30,
2009 2009*
Assets
Current assets:
Cash and cash equivalents $ 87,825 $ 127,664
Trade & notes receivable 316,509 291,037
Other receivables 6,461 7,676
Inventories 269,695 216,829
Prepaid expenses and other assets 5,655 10,356
Deferred income taxes 8,758 8,735
Total current assets 694,903 662,297
Property and equipment, net 20,191 21,035
Goodwill 33,737 34,087
Other assets, including identifiable intangible assets 32,356 31,212
Total assets $ 781,187 $ 748,631
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt $ - $ -
Trade accounts payable 250,442 228,408
Accrued expenses and other liabilities 25,048 30,443
Income taxes payable 5,186 3,799
Total current liabilities 280,676 262,650
Deferred income taxes - -
Long-term debt 30,429 30,429
Borrowings under revolving credit facility - -
Other long-term liabilities 11,516 10,106
Total liabilities 322,621 303,185
Shareholder's equity:
Common stock 105,893 104,461
Retained earnings 348,756 337,822
Accumulated other comprehensive income 3,917 3,163
Total shareholders' equity 458,566 445,446
Total liabilities and shareholders' equity $ 781,187 $ 748,631
* Derived from audited financial statements at June 30, 2009.
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share information)
Quarter ended
September 30,
2009 2008
Net sales $ 488,423 $ 539,825
Cost of goods sold 437,005 484,323
Gross profit 51,418 55,502
Operating expenses:
Selling, general and administrative expenses 33,731 34,874
Operating income 17,687 20,628
Other expense (income):
Interest expense 366 579
Interest income (263 ) (351 )
Other, net 116 277
Other expense (income) 219 505
Income before income taxes 17,468 20,123
Provision for income taxes 6,533 7,693
Net income $ 10,935 $ 12,430
Per share data:
Net income per common share, basic $ 0.41 $ 0.47
Weighted-average shares outstanding, basic 26,567 26,364
Net income per common share, diluted $ 0.41 $ 0.47
Weighted-average shares outstanding, diluted 26,821 26,611
Source: ScanSource, Inc.
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