ScanSource reports third quarter results
May 18, 2016
Net Sales Growth of 5% and EPS Growth of 20%
GREENVILLE, SC – ScanSource, Inc. (NASDAQ:SCSC), a leading global provider of technology products and solutions, today announced financial results for fiscal year 2016 third quarter ended March 31, 2016.
| Quarter ended March 31, | ||||||||||
| 2016 | 2015 | Change | ||||||||
| (in millions, except per share data) | ||||||||||
| Net sales | $ | 798.4 | $ | 763.2 | 5 | % | ||||
| Operating income | 21.6 | 21.5 | 1 | % | ||||||
| Non-GAAP operating income(1) | 25.3 | 24.2 | 5 | % | ||||||
| GAAP net income | 14.0 | 12.9 | 8 | % | ||||||
| Non-GAAP net income(1) | 16.5 | 14.9 | 11 | % | ||||||
| GAAP diluted EPS | $ | 0.54 | $ | 0.45 | 20 | % | ||||
| Non-GAAP diluted EPS(1) | $ | 0.64 | $ | 0.52 | 23 | % | ||||
| (1) A reconciliation of non-GAAP financial information to GAAP financial information is presented in the following Supplementary Information (Unaudited) tables. | ||||||||||
“Although sales fell below our expected range primarily from a lower volume of big deals, we are pleased to deliver EPS growth of 20%,” said Mike Baur, CEO, ScanSource, Inc. “Our 10.6% gross margin reflects the value-added services we provide to our customers and vendors.”
Net sales for the quarter ended March 31, 2016 increased 5% year-over-year to $798.4 million. The increase in net sales includes the acquisition of KBZ in September 2015. Net sales in constant currency excluding acquisitions decreased 1% year-over-year.
Operating income for the quarter ended March 31, 2016 totaled $21.6 million. Non-GAAP operating income of $25.3 million increased 5% year-over-year from $24.2 million.
On a GAAP basis, net income for the quarter ended March 31, 2016 totaled $14.0 million, or $0.54 per diluted share, compared with net income of $12.9 million, or $0.45 per diluted share, for the prior year quarter. Non-GAAP net income for the quarter ended March 31, 2016 of $16.5 million increased 11%, and non-GAAP diluted earnings per share of $0.64 increased 23% year-over-year.
Share Repurchase Update
During the quarter ended March 31, 2016, ScanSource repurchased approximately 0.9 million shares for an aggregate purchase price of approximately $26.8 million. Under the Company’s $120 million share repurchase authorization through March 31, 2016, ScanSource has repurchased approximately 3.3 million shares for approximately $117.2 million, having executed over 97% of the total authorization.
