Exhibit 99.1
SYNNEX Corporation Reports Third Quarter Fiscal 2019 Results
Fremont, Calif., - September 24, 2019 - SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal third quarter ended August 31, 2019.
|
|
|
Q3 FY19 |
|
|
Q3 FY18(2) |
|
|
Net change |
||||
|
Revenue ($M) |
|
$ |
6,204 |
|
|
$ |
4,822 |
|
|
28.6% |
|
|
|
Operating income ($M) |
|
$ |
208.9 |
|
|
$ |
113.8 |
|
|
83.5% |
|
|
|
Non-GAAP operating income ($M)(1) |
|
$ |
270.5 |
|
|
$ |
159.6 |
|
|
69.5% |
|
|
|
Operating margin |
|
|
3.37 |
% |
|
|
2.36 |
% |
|
101 bps |
|
|
|
Non-GAAP operating margin(1) |
|
|
4.36 |
% |
|
|
3.31 |
% |
|
105 bps |
|
|
|
Net income ($M) |
|
$ |
123.1 |
|
|
$ |
66.9 |
|
|
83.9% |
|
|
|
Non-GAAP net income ($M)(1) |
|
$ |
169.2 |
|
|
$ |
99.9 |
|
|
69.5% |
|
|
|
Diluted earnings per common share ("EPS") |
|
$ |
2.40 |
|
|
$ |
1.68 |
|
|
42.9% |
|
|
|
Non-GAAP Diluted EPS(1) |
|
$ |
3.30 |
|
|
$ |
2.51 |
|
|
31.5% |
|
|
“Our record performance reflects the continued success of our go-to-market strategies in each business segment,” said Dennis Polk, SYNNEX President and CEO. “In the third quarter, our Technology Solutions revenue and earnings growth were exceptional, while Concentrix delivered another quarter of revenue expansion and superior execution.”
Third Quarter Fiscal 2019 Highlights:
|
• |
Technology Solutions: Revenue was $5.0 billion, up 16.5% from the prior fiscal year third quarter. Operating income was $139 million, or 2.8% of segment revenue, compared to $102 million, or 2.3% of segment revenue, in the prior fiscal year third quarter. Non-GAAP operating income was $150 million, or 3.0% of segment revenue, compared to $117 million, or 2.7% of segment revenue, in the prior fiscal year third quarter. |
|
• |
Concentrix: Revenue was $1.2 billion, up 136.0% from the prior fiscal year third quarter as a result of the Convergys acquisition on October 5, 2018. Operating income was $70 million, or 6.0% of segment revenue, compared to $12 million, or 2.5% of segment revenue in the prior fiscal year third quarter. Non-GAAP operating income was $121 million, or 10.4% of segment revenue, compared to $43 million, or 8.7% of segment revenue, in the prior fiscal year third quarter. |
|
• |
The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 8.6% compared to 8.4% in the prior fiscal year third quarter. The adjusted trailing fiscal four quarters ROIC was 11.1%. |
Fourth Quarter Fiscal 2019 Outlook:
The following statements are based on SYNNEX’ current expectations for the fourth quarter fiscal 2019. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangibles and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.
|
• |
Revenue is expected to be in the range of $5.85 billion to $6.15 billion. |
|
• |
Net income is expected to be in the range of $136.4 million to $146.9 million and on a non-GAAP basis, net income is expected to be in the range of $180.5 million to $191.0 million. |
|
• |
After-tax amortization of intangibles is expected to be $37.9 million, or $0.73 per share. |
|
• |
After-tax acquisition-related and integration expense is expected to be $6.3 million, or $0.12 per share. |
Dividend Announcement
SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.375 per common share. The dividend is payable on October 25, 2019 to stockholders of record as of the close of business on October 11, 2019.
Q3 FY19 Conference Call and Webcast
SYNNEX will be discussing its financial results and outlook on a conference call today at 2:00 p.m. (PT):
Conference ID 1645308
Live call (866) 393-4306 or (734) 385-2616 (Int’l)
Live webcast of the earnings call will be available at http://ir.synnex.com. A replay will be available approximately two hours after the earnings call has concluded.
About SYNNEX
SYNNEX Corporation (NYSE: SNX) is a Fortune 200 corporation and a leading business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement to a broad range of enterprises. SYNNEX distributes a broad range of information technology systems and products, and also provides systems design and integration solutions. Founded in 1980, SYNNEX Corporation operates in numerous countries throughout North and South America, Asia-Pacific and Europe. Additional information about SYNNEX may be found online at synnex.com.
About Concentrix
Concentrix, a wholly-owned subsidiary of SYNNEX Corporation (NYSE: SNX), is a technology-enabled global business services company specializing in customer engagement and improving business performance for some of the world’s best brands. Every day, from more than 40 countries and across 6 continents, our staff delivers next generation customer experience and helps companies better connect with their customers. We create better business outcomes and help differentiate our clients through technology, design, data, process,
and people. Concentrix provides services to clients in ten industry verticals: automotive; banking and financial services; insurance; healthcare; technology; consumer electronics; media and communications; retail and e-commerce; travel and transportation and energy and public-sector. We are Different by Design. Visit concentrix.com to learn more.
(1)Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance with GAAP, SYNNEX also uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), non-GAAP net income, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude acquisition-related and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.
In fiscal year 2019, non-GAAP net income and non-GAAP diluted earnings per share also exclude a gain upon the settlement of contingent consideration related to the Westcon-Comstor Americas acquisition.
In fiscal year 2018, non-GAAP net income and non-GAAP diluted earnings per share also exclude the impact of an adjustment relating to the enactment of the Tax Cuts and Jobs Act of 2017. This adjustment includes a transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate.
Additionally, SYNNEX refers to growth rates at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of SYNNEX’ business performance. Financial results adjusted for currency are calculated by translating current period activity in the transaction currency using the comparable prior year periods’ currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.
Trailing fiscal four quarters ROIC is defined as the last four quarters’ tax effected operating income divided by the average of the last five quarterly balances of borrowings (excluding book overdraft) and equity, net of cash and cash equivalents in the United States. Adjusted ROIC is calculated by excluding the tax effected impact of acquisition-related and integration expenses, restructuring costs and the amortization of intangibles from operating income and equity and the impact of the contingent consideration gain and the U.S. tax reform adjustment on equity.
SYNNEX also uses free cash flow, which is cash flow from operating activities, reduced by purchases of property and equipment. SYNNEX uses free cash flow to conduct and evaluate its business because, although it is similar to cash flow from operations, SYNNEX believes it is a more conservative measure of cash flows since purchases of fixed assets are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing SYNNEX’ liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, SYNNEX believes it is important to view free cash flow as a complement to its entire consolidated statements of cash flows.
SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of SYNNEX’
operational results and trends that more readily enable investors to analyze SYNNEX’ base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with SYNNEX’ consolidated financial statements prepared in accordance with GAAP. A reconciliation of SYNNEX’ GAAP to non-GAAP financial information is set forth in the supplemental information section at the end of this press release.
(2)Fiscal 2018 third quarter and year-to-date financial statements have been adjusted to reflect the adoption of the new guidance on revenue recognition, on a full retrospective basis. Impact of adoption of the new guidance on the Consolidated Statement of Operations is presented in the supplementary information section at the end of this press release.
Safe Harbor Statement
Statements in this news release regarding SYNNEX Corporation that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding our expectations and outlook for 2019 and the fiscal fourth quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, outstanding diluted weighted average shares, tax rate, after-tax amortization of intangibles, after-tax acquisition-related and integration expenses; effects of the Convergys acquisition; and the anticipated benefits of the non-GAAP financial measures, are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to: general economic conditions and any weakness in information technology and consumer electronics spending; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any future incidents of theft; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2018 and subsequent SEC filings. Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.
Copyright 2019 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, and CONCENTRIX Reg. U.S. Pat. & Tm. Off. DIFFERENT BY DESIGN is a trademark or registered trademark of Concentrix Corporation. Other names and marks are the property of their respective owners.
Consolidated Balance Sheets
(currency and share amounts in thousands)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
August 31, 2019 |
|
|
November 30, 2018 |
|
||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
262,279 |
|
|
$ |
454,694 |
|
|
Accounts receivable, net |
|
|
3,452,976 |
|
|
|
3,640,496 |
|
|
Receivable from vendors, net |
|
|
338,315 |
|
|
|
351,744 |
|
|
Inventories |
|
|
2,787,159 |
|
|
|
2,392,559 |
|
|
Other current assets |
|
|
361,759 |
|
|
|
323,323 |
|
|
Total current assets |
|
|
7,202,488 |
|
|
|
7,162,817 |
|
|
Property and equipment, net |
|
|
552,904 |
|
|
|
571,326 |
|
|
Goodwill |
|
|
2,214,115 |
|
|
|
2,203,316 |
|
|
Intangible assets, net |
|
|
1,208,308 |
|
|
|
1,377,305 |
|
|
Deferred tax assets |
|
|
89,692 |
|
|
|
76,508 |
|
|
Other assets |
|
|
158,819 |
|
|
|
152,227 |
|
|
Total assets |
|
$ |
11,426,327 |
|
|
$ |
11,543,498 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Borrowings, current |
|
$ |
571,718 |
|
|
$ |
833,216 |
|
|
Accounts payable |
|
|
2,932,046 |
|
|
|
3,048,102 |
|
|
Accrued compensation and benefits |
|
|
366,761 |
|
|
|
358,352 |
|
|
Other accrued liabilities |
|
|
694,778 |
|
|
|
672,635 |
|
|
Income taxes payable |
|
|
13,379 |
|
|
|
41,322 |
|
|
Total current liabilities |
|
|
4,578,681 |
|
|
|
4,953,627 |
|
|
Long-term borrowings |
|
|
2,757,021 |
|
|
|
2,622,782 |
|
|
Other long-term liabilities |
|
|
299,311 |
|
|
|
325,119 |
|
|
Deferred tax liabilities |
|
|
189,504 |
|
|
|
206,916 |
|
|
Total liabilities |
|
|
7,824,517 |
|
|
|
8,108,444 |
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value, 100,000 shares authorized, 52,942 and 52,861 shares issued as of August 31, 2019 and November 30, 2018, respectively |
|
|
53 |
|
|
|
53 |
|
|
Additional paid-in capital |
|
|
1,534,743 |
|
|
|
1,512,201 |
|
|
Treasury stock, 2,337 and 2,167 shares as of August 31, 2019 and November 30, 2018, respectively |
|
|
(165,710 |
) |
|
|
(149,533 |
) |
|
Accumulated other comprehensive income (loss) |
|
|
(235,070 |
) |
|
|
(126,288 |
) |
|
Retained earnings |
|
|
2,467,795 |
|
|
|
2,198,621 |
|
|
Total stockholders' equity |
|
|
3,601,810 |
|
|
|
3,435,054 |
|
|
Total liabilities and equity |
|
$ |
11,426,327 |
|
|
$ |
11,543,498 |
|
(1) Amounts have been adjusted to reflect the adoption of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), on a full retrospective basis.
Consolidated Statements of Operations
(currency and share amounts in thousands, except per share amounts)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
(Adjusted)(1) |
|
||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
5,047,968 |
|
|
$ |
4,334,755 |
|
|
$ |
13,695,725 |
|
|
$ |
12,746,591 |
|
|
Services |
|
|
1,155,690 |
|
|
|
487,513 |
|
|
|
3,480,275 |
|
|
|
1,477,308 |
|
|
Total revenue |
|
|
6,203,659 |
|
|
|
4,822,268 |
|
|
|
17,176,000 |
|
|
|
14,223,898 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
(4,746,197 |
) |
|
|
(4,083,829 |
) |
|
|
(12,876,410 |
) |
|
|
(12,024,111 |
) |
|
Services |
|
|
(731,472 |
) |
|
|
(308,322 |
) |
|
|
(2,196,212 |
) |
|
|
(926,998 |
) |
|
Gross profit |
|
|
725,990 |
|
|
|
430,117 |
|
|
|
2,103,379 |
|
|
|
1,272,790 |
|
|
Selling, general and administrative expenses |
|
|
(517,135 |
) |
|
|
(316,274 |
) |
|
|
(1,557,906 |
) |
|
|
(923,449 |
) |
|
Operating income |
|
|
208,855 |
|
|
|
113,843 |
|
|
|
545,473 |
|
|
|
349,341 |
|
|
Interest expense and finance charges, net |
|
|
(42,945 |
) |
|
|
(20,058 |
) |
|
|
(127,695 |
) |
|
|
(53,884 |
) |
|
Other income (expense), net |
|
|
(1,087 |
) |
|
|
(872 |
) |
|
|
19,764 |
|
|
|
(3,497 |
) |
|
Income before income taxes |
|
|
164,823 |
|
|
|
92,913 |
|
|
|
437,542 |
|
|
|
291,960 |
|
|
Provision for income taxes |
|
|
(41,691 |
) |
|
|
(25,973 |
) |
|
|
(112,831 |
) |
|
|
(107,181 |
) |
|
Net income |
|
$ |
123,132 |
|
|
$ |
66,940 |
|
|
$ |
324,711 |
|
|
$ |
184,779 |
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.41 |
|
|
$ |
1.69 |
|
|
$ |
6.35 |
|
|
$ |
4.64 |
|
|
Diluted |
|
$ |
2.40 |
|
|
$ |
1.68 |
|
|
$ |
6.32 |
|
|
$ |
4.61 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
50,601 |
|
|
|
39,254 |
|
|
|
50,661 |
|
|
|
39,483 |
|
|
Diluted |
|
|
50,845 |
|
|
|
39,475 |
|
|
|
50,903 |
|
|
|
39,730 |
|
(1) Amounts have been adjusted to reflect the adoption of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), on a full retrospective basis.
Segment Information
(currency in thousands)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
(Adjusted)(1) |
|
||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
$ |
5,047,970 |
|
|
$ |
4,334,767 |
|
|
$ |
13,695,729 |
|
|
$ |
12,746,673 |
|
|
Concentrix |
|
|
1,160,928 |
|
|
|
491,882 |
|
|
|
3,495,076 |
|
|
|
1,490,865 |
|
|
Inter-segment elimination |
|
|
(5,240 |
) |
|
|
(4,382 |
) |
|
|
(14,805 |
) |
|
|
(13,639 |
) |
|
Consolidated |
|
$ |
6,203,659 |
|
|
$ |
4,822,268 |
|
|
$ |
17,176,000 |
|
|
$ |
14,223,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
$ |
138,830 |
|
|
$ |
101,775 |
|
|
$ |
352,594 |
|
|
$ |
279,926 |
|
|
Concentrix |
|
|
70,025 |
|
|
|
12,068 |
|
|
|
192,879 |
|
|
|
69,415 |
|
|
Consolidated |
|
$ |
208,855 |
|
|
$ |
113,843 |
|
|
$ |
545,473 |
|
|
$ |
349,341 |
|
(1) Amounts have been adjusted to reflect the adoption of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), on a full retrospective basis.
Impact of adoption of Accounting Standards Codification (“ASC”) Topic 606 on Revenue and Earnings
(currency in thousands, except per share amounts)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue as previously reported |
|
|
|
|
|
$ |
4,906,610 |
|
|
|
|
|
|
$ |
14,431,562 |
|
|
Impact of adoption of ASC Topic 606 |
|
|
|
|
|
|
(84,342 |
) |
|
|
|
|
|
|
(207,664 |
) |
|
Revenue in accordance with ASC Topic 606(1) |
|
$ |
6,203,659 |
|
|
$ |
4,822,268 |
|
|
$ |
17,176,000 |
|
|
$ |
14,223,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue as previously reported |
|
|
|
|
|
$ |
4,419,109 |
|
|
|
|
|
|
$ |
12,954,337 |
|
|
Impact of adoption of ASC Topic 606 |
|
|
|
|
|
|
(84,342 |
) |
|
|
|
|
|
|
(207,664 |
) |
|
Revenue in accordance with ASC Topic 606(1) |
|
$ |
5,047,970 |
|
|
$ |
4,334,767 |
|
|
$ |
13,695,729 |
|
|
$ |
12,746,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue as previously reported |
|
|
|
|
|
$ |
491,882 |
|
|
|
|
|
|
$ |
1,490,865 |
|
|
Impact of adoption of ASC Topic 606 |
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
Revenue in accordance with ASC Topic 606(1) |
|
$ |
1,160,928 |
|
|
$ |
491,882 |
|
|
$ |
3,495,076 |
|
|
$ |
1,490,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Approximate value of transactions offset, in accordance with revenue recognition guidance on Principal versus Agent considerations, in circumstances where SYNNEX assumed an agency relationship, against cost of sales to present the margin earned on these transactions in revenue, with no associated cost of revenue. |
|
$ |
836,000 |
|
|
$ |
803,000 |
|
|
$ |
2,547,000 |
|
|
$ |
2,198,000 |
|
Impact of adoption of Accounting Standards Codification (“ASC”) Topic 606 on Revenue and Earnings
(currency in thousands, except for per share amounts)
(Amounts may not add due to rounding)
(unaudited)
(continued)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
||||||||||
|
|
|
August 31, 2018 |
|
|
August 31, 2018 |
|
|
||||||||||
|
Consolidated Statements of Operations |
|
As Reported |
|
|
As adjusted |
|
|
As Reported |
|
|
As adjusted |
|
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
4,419,097 |
|
|
$ |
4,334,755 |
|
|
$ |
12,954,255 |
|
|
$ |
12,746,591 |
|
|
|
Services |
|
|
487,513 |
|
|
|
487,513 |
|
|
|
1,477,308 |
|
|
|
1,477,308 |
|
|
|
Total revenue |
|
|
4,906,610 |
|
|
|
4,822,268 |
|
|
|
14,431,562 |
|
|
|
14,223,898 |
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
(4,165,118 |
) |
|
|
(4,083,829 |
) |
|
|
(12,228,350 |
) |
|
|
(12,024,111 |
) |
|
|
Services |
|
|
(308,322 |
) |
|
|
(308,322 |
) |
|
|
(926,998 |
) |
|
|
(926,998 |
) |
|
|
Gross profit |
|
|
433,170 |
|
|
|
430,117 |
|
|
|
1,276,215 |
|
|
|
1,272,790 |
|
|
|
Selling, general and administrative expenses |
|
|
(316,274 |
) |
|
|
(316,274 |
) |
|
|
(923,449 |
) |
|
|
(923,449 |
) |
|
|
Operating income |
|
|
116,896 |
|
|
|
113,843 |
|
|
|
352,766 |
|
|
|
349,341 |
|
|
|
Interest expense and finance charges, net |
|
|
(20,058 |
) |
|
|
(20,058 |
) |
|
|
(53,884 |
) |
|
|
(53,884 |
) |
|
|
Other income (expense), net |
|
|
(872 |
) |
|
|
(872 |
) |
|
|
(3,497 |
) |
|
|
(3,497 |
) |
|
|
Income before income taxes |
|
|
95,966 |
|
|
|
92,913 |
|
|
|
295,385 |
|
|
|
291,960 |
|
|
|
Provision for income taxes |
|
|
(26,675 |
) |
|
|
(25,973 |
) |
|
|
(107,968 |
) |
|
|
(107,181 |
) |
|
|
Net income |
|
$ |
69,291 |
|
|
$ |
66,940 |
|
|
$ |
187,417 |
|
|
$ |
184,779 |
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.75 |
|
|
$ |
1.69 |
|
|
$ |
4.70 |
|
|
$ |
4.64 |
|
|
|
Diluted |
|
$ |
1.74 |
|
|
$ |
1.68 |
|
|
$ |
4.67 |
|
|
$ |
4.61 |
|
|
|
Non-GAAP financial measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
$ |
162,661 |
|
|
$ |
159,608 |
|
|
$ |
455,368 |
|
|
$ |
451,943 |
|
|
|
GAAP operating margin |
|
|
2.38 |
% |
|
|
2.36 |
% |
|
|
2.44 |
% |
|
|
2.46 |
% |
|
|
Non-GAAP operating margin |
|
|
3.32 |
% |
|
|
3.31 |
% |
|
|
3.16 |
% |
|
|
3.18 |
% |
|
|
Non-GAAP net income |
|
$ |
102,258 |
|
|
$ |
99,852 |
|
|
$ |
283,905 |
|
|
$ |
281,207 |
|
|
|
Non-GAAP diluted EPS |
|
$ |
2.57 |
|
|
$ |
2.51 |
|
|
$ |
7.08 |
|
|
$ |
7.01 |
|
|
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(Amounts may not add due to rounding)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
(Adjusted)(1) |
|
||
|
Revenue in constant currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
6,203,659 |
|
|
$ |
4,822,268 |
|
|
$ |
17,176,000 |
|
|
$ |
14,223,898 |
|
|
Foreign currency translation |
|
|
19,243 |
|
|
|
|
|
|
|
127,181 |
|
|
|
|
|
|
Revenue in constant currency |
|
$ |
6,222,902 |
|
|
$ |
4,822,268 |
|
|
$ |
17,303,181 |
|
|
$ |
14,223,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
5,047,970 |
|
|
$ |
4,334,767 |
|
|
$ |
13,695,729 |
|
|
$ |
12,746,673 |
|
|
Foreign currency translation |
|
|
5,006 |
|
|
|
|
|
|
|
84,120 |
|
|
|
|
|
|
Revenue in constant currency |
|
$ |
5,052,976 |
|
|
$ |
4,334,767 |
|
|
$ |
13,779,849 |
|
|
$ |
12,746,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,160,928 |
|
|
$ |
491,882 |
|
|
$ |
3,495,076 |
|
|
$ |
1,490,865 |
|
|
Foreign currency translation |
|
|
14,237 |
|
|
|
|
|
|
|
43,061 |
|
|
|
|
|
|
Revenue in constant currency |
|
$ |
1,175,165 |
|
|
$ |
491,882 |
|
|
$ |
3,538,137 |
|
|
$ |
1,490,865 |
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
(Adjusted)(1) |
|
||
|
Selling, general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses |
|
$ |
517,135 |
|
|
$ |
316,274 |
|
|
$ |
1,557,906 |
|
|
$ |
923,449 |
|
|
Acquisition-related and integration expenses |
|
|
9,200 |
|
|
|
19,568 |
|
|
|
53,582 |
|
|
|
23,419 |
|
|
Amortization of intangibles |
|
|
52,066 |
|
|
|
25,777 |
|
|
|
156,964 |
|
|
|
77,882 |
|
|
Adjusted selling, general and administrative expenses |
|
$ |
455,869 |
|
|
$ |
270,929 |
|
|
$ |
1,347,360 |
|
|
$ |
822,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses |
|
$ |
162,944 |
|
|
$ |
149,163 |
|
|
$ |
466,725 |
|
|
$ |
442,630 |
|
|
Acquisition-related and integration expenses |
|
|
- |
|
|
|
2,498 |
|
|
|
981 |
|
|
|
6,349 |
|
|
Amortization of intangibles |
|
|
10,999 |
|
|
|
12,524 |
|
|
|
32,968 |
|
|
|
37,802 |
|
|
Adjusted selling, general and administrative expenses |
|
$ |
151,945 |
|
|
$ |
134,141 |
|
|
$ |
432,776 |
|
|
$ |
398,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses |
|
$ |
356,155 |
|
|
$ |
168,984 |
|
|
$ |
1,097,139 |
|
|
$ |
486,120 |
|
|
Acquisition-related and integration expenses |
|
|
9,200 |
|
|
|
17,070 |
|
|
|
52,601 |
|
|
|
17,070 |
|
|
Amortization of intangibles |
|
|
41,067 |
|
|
|
13,253 |
|
|
|
123,996 |
|
|
|
40,080 |
|
|
Adjusted selling, general and administrative expenses |
|
$ |
305,888 |
|
|
$ |
138,661 |
|
|
$ |
920,542 |
|
|
$ |
428,970 |
|
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(Amounts may not add due to rounding)
(continued)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
(Adjusted)(1) |
|
||
|
Operating income and Operating margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
6,203,659 |
|
|
$ |
4,822,268 |
|
|
$ |
17,176,000 |
|
|
$ |
14,223,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
208,855 |
|
|
$ |
113,843 |
|
|
$ |
545,473 |
|
|
$ |
349,341 |
|
|
Acquisition-related and integration expenses |
|
|
9,200 |
|
|
|
19,568 |
|
|
|
53,582 |
|
|
|
23,419 |
|
|
Amortization of intangibles |
|
|
52,428 |
|
|
|
26,197 |
|
|
|
158,149 |
|
|
|
79,183 |
|
|
Non-GAAP operating income |
|
$ |
270,483 |
|
|
$ |
159,608 |
|
|
$ |
757,204 |
|
|
$ |
451,943 |
|
|
Depreciation (excluding accelerated depreciation included in acquisition-related expenses above) |
|
|
38,597 |
|
|
|
22,511 |
|
|
|
119,004 |
|
|
|
67,031 |
|
|
Adjusted EBITDA |
|
$ |
309,080 |
|
|
$ |
182,119 |
|
|
$ |
876,208 |
|
|
$ |
518,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
3.37 |
% |
|
|
2.36 |
% |
|
|
3.18 |
% |
|
|
2.46 |
% |
|
Non-GAAP operating margin |
|
|
4.36 |
% |
|
|
3.31 |
% |
|
|
4.41 |
% |
|
|
3.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
$ |
5,047,970 |
|
|
$ |
4,334,767 |
|
|
$ |
13,695,729 |
|
|
$ |
12,746,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
138,830 |
|
|
$ |
101,775 |
|
|
$ |
352,594 |
|
|
$ |
279,926 |
|
|
Acquisition-related and integration expenses |
|
|
— |
|
|
|
2,498 |
|
|
|
981 |
|
|
|
6,349 |
|
|
Amortization of intangibles |
|
|
10,999 |
|
|
|
12,524 |
|
|
|
32,968 |
|
|
|
37,802 |
|
|
Non-GAAP operating income |
|
$ |
149,829 |
|
|
$ |
116,797 |
|
|
$ |
386,543 |
|
|
$ |
324,077 |
|
|
Depreciation |
|
|
5,875 |
|
|
|
5,212 |
|
|
|
16,719 |
|
|
|
15,056 |
|
|
Adjusted EBITDA |
|
$ |
155,704 |
|
|
$ |
122,009 |
|
|
$ |
403,262 |
|
|
$ |
339,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
2.75 |
% |
|
|
2.35 |
% |
|
|
2.57 |
% |
|
|
2.20 |
% |
|
Non-GAAP operating margin |
|
|
2.97 |
% |
|
|
2.69 |
% |
|
|
2.82 |
% |
|
|
2.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
$ |
1,160,928 |
|
|
$ |
491,882 |
|
|
$ |
3,495,076 |
|
|
$ |
1,490,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
70,025 |
|
|
$ |
12,068 |
|
|
$ |
192,879 |
|
|
$ |
69,415 |
|
|
Acquisition-related and integration expenses |
|
|
9,200 |
|
|
|
17,070 |
|
|
|
52,601 |
|
|
|
17,070 |
|
|
Amortization of intangibles |
|
|
41,429 |
|
|
|
13,673 |
|
|
|
125,181 |
|
|
|
41,381 |
|
|
Non-GAAP operating income |
|
$ |
120,654 |
|
|
$ |
42,811 |
|
|
$ |
370,661 |
|
|
$ |
127,866 |
|
|
Depreciation (excluding accelerated depreciation included in acquisition-related expenses above) |
|
|
32,722 |
|
|
|
17,299 |
|
|
|
102,285 |
|
|
|
51,975 |
|
|
Adjusted EBITDA |
|
$ |
153,376 |
|
|
$ |
60,110 |
|
|
$ |
472,946 |
|
|
$ |
179,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
6.03 |
% |
|
|
2.45 |
% |
|
|
5.52 |
% |
|
|
4.66 |
% |
|
Non-GAAP operating margin |
|
|
10.39 |
% |
|
|
8.70 |
% |
|
|
10.61 |
% |
|
|
8.58 |
% |
Reconciliation of GAAP to Non-GAAP financial measures
(currency and share amounts in thousands, except per share amounts)
(Amounts may not add due to rounding)
(continued)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
(Adjusted)(1) |
|
||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
123,132 |
|
|
$ |
66,940 |
|
|
$ |
324,711 |
|
|
$ |
184,779 |
|
|
Acquisition-related and integration expenses |
|
|
9,200 |
|
|
|
19,568 |
|
|
|
53,411 |
|
|
|
20,785 |
|
|
Amortization of intangibles |
|
|
52,428 |
|
|
|
26,197 |
|
|
|
158,149 |
|
|
|
79,183 |
|
|
Contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
(19,034 |
) |
|
|
— |
|
|
Income taxes related to the above(2) |
|
|
(15,548 |
) |
|
|
(12,853 |
) |
|
|
(55,328 |
) |
|
|
(28,241 |
) |
|
U.S. tax reform adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,701 |
|
|
Non-GAAP net income |
|
$ |
169,212 |
|
|
$ |
99,852 |
|
|
$ |
461,909 |
|
|
$ |
281,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share ("EPS")(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
123,132 |
|
|
$ |
66,940 |
|
|
$ |
324,711 |
|
|
$ |
184,779 |
|
|
Less: net income allocated to participating securities |
|
|
1,066 |
|
|
|
643 |
|
|
|
2,883 |
|
|
|
1,717 |
|
|
Net income attributable to common stockholders |
|
|
122,066 |
|
|
|
66,297 |
|
|
|
321,828 |
|
|
|
183,062 |
|
|
Acquisition-related and integration expenses attributable to common stockholders |
|
|
9,121 |
|
|
|
19,381 |
|
|
|
52,938 |
|
|
|
20,593 |
|
|
Amortization of intangibles attributable to common stockholders |
|
|
51,975 |
|
|
|
25,947 |
|
|
|
156,748 |
|
|
|
78,450 |
|
|
Contingent consideration attributable to common stockholders |
|
|
— |
|
|
|
— |
|
|
|
(18,865 |
) |
|
|
— |
|
|
Income taxes related to the above attributable to common stockholders(2) |
|
|
(15,414 |
) |
|
|
(12,730 |
) |
|
|
(54,838 |
) |
|
|
(27,980 |
) |
|
U.S. tax reform adjustment attributable to common stockholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,472 |
|
|
Non-GAAP net income attributable to common stockholders |
|
$ |
167,748 |
|
|
$ |
98,896 |
|
|
$ |
457,810 |
|
|
$ |
278,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares - diluted: |
|
|
50,845 |
|
|
|
39,475 |
|
|
|
50,903 |
|
|
|
39,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS(3) |
|
$ |
2.40 |
|
|
$ |
1.68 |
|
|
$ |
6.32 |
|
|
$ |
4.61 |
|
|
Acquisition-related and integration expenses |
|
|
0.18 |
|
|
|
0.49 |
|
|
|
1.04 |
|
|
|
0.52 |
|
|
Amortization of intangibles |
|
|
1.02 |
|
|
|
0.66 |
|
|
|
3.08 |
|
|
|
1.97 |
|
|
Contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
(0.37 |
) |
|
|
— |
|
|
Income taxes related to the above(2) |
|
|
(0.30 |
) |
|
|
(0.32 |
) |
|
|
(1.08 |
) |
|
|
(0.70 |
) |
|
U.S. tax reform adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.62 |
|
|
Non-GAAP Diluted EPS |
|
$ |
3.30 |
|
|
$ |
2.51 |
|
|
$ |
8.99 |
|
|
$ |
7.01 |
|
Reconciliation of GAAP to Non-GAAP financial measures
(Amounts may not add due to rounding)
(continued)
|
(Currency in thousands) |
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||||
|
Net cash provided by (used in) operating activities |
|
$ |
249,853 |
|
|
$ |
(103,095 |
) |
|
$ |
202,473 |
|
|
$ |
(40,385 |
) |
|
Purchases of property and equipment |
|
|
(33,020 |
) |
|
|
(25,453 |
) |
|
|
(93,432 |
) |
|
|
(75,473 |
) |
|
Free cash flow |
|
$ |
216,833 |
|
|
$ |
(128,548 |
) |
|
$ |
109,041 |
|
|
$ |
(115,858 |
) |
|
|
|
Forecast |
|
|||||
|
|
|
Three Months Ending November 30, 2019 |
|
|||||
|
(Amounts in millions, except per share amounts) |
|
Low |
|
|
High |
|
||
|
Net income |
|
$ |
136.4 |
|
|
$ |
146.9 |
|
|
Acquisition-related and integration expenses |
|
|
8.5 |
|
|
|
8.5 |
|
|
Amortization of intangibles |
|
|
51.3 |
|
|
|
51.3 |
|
|
Income taxes related to the above(2) |
|
|
(15.6 |
) |
|
|
(15.6 |
) |
|
Non-GAAP net income |
|
$ |
180.5 |
|
|
$ |
191.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS(3) |
|
$ |
2.64 |
|
|
$ |
2.85 |
|
|
Acquisition-related and integration expenses |
|
|
0.16 |
|
|
|
0.16 |
|
|
Amortization of intangibles |
|
|
0.99 |
|
|
|
0.99 |
|
|
Income taxes related to the above(2) |
|
|
(0.30 |
) |
|
|
(0.30 |
) |
|
Non-GAAP Diluted EPS |
|
$ |
3.50 |
|
|
$ |
3.70 |
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to reflect the adoption of the new guidance on revenue recognition, on a full retrospective basis.
(2) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the effective year-to-date tax rate during the respective periods. The effective tax rate for fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.
(3) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For purposes of calculating Diluted EPS, Net income allocated to participating securities was approximately 0.9% of Net income for the three and nine months ended August 31, 2019 and 2018. Net income allocable to participating securities is estimated to be approximately 1.1% of the forecast Net income for the three months ending November 30, 2019.
Calculation of Financial Metrics
(currency in thousands)
(Amounts may not add or compute due to rounding)
Return on Invested Capital ("ROIC")
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||
|
ROIC |
|
|
|
|
|
|
|
|
|
Operating income (trailing fiscal four quarters)(1) |
|
$ |
743,743 |
|
|
$ |
509,201 |
|
|
Income taxes on operating income(2) |
|
|
(200,430 |
) |
|
|
(184,952 |
) |
|
Operating income after taxes(1) |
|
$ |
543,313 |
|
|
$ |
324,249 |
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings, excluding book overdraft (last five quarters average) |
|
$ |
3,126,273 |
|
|
$ |
1,684,413 |
|
|
Total equity (last five quarters average) |
|
|
3,282,537 |
|
|
|
2,293,198 |
|
|
Less: U.S. cash and cash equivalents (last five quarters average) |
|
|
(67,727 |
) |
|
|
(114,037 |
) |
|
Total invested capital |
|
$ |
6,341,083 |
|
|
$ |
3,863,574 |
|
|
|
|
|
|
|
|
|
|
|
|
ROIC |
|
|
8.6 |
% |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROIC |
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (trailing fiscal four quarters)(1) |
|
$ |
1,022,336 |
|
|
$ |
644,884 |
|
|
Income taxes on Non-GAAP operating income(2) |
|
|
(268,384 |
) |
|
|
(196,090 |
) |
|
Non-GAAP operating income after taxes(1) |
|
$ |
753,952 |
|
|
$ |
448,794 |
|
|
|
|
|
|
|
|
|
|
|
|
Total invested capital |
|
$ |
6,341,083 |
|
|
$ |
3,863,574 |
|
|
Tax effected impact of cumulative non-GAAP adjustments (last five quarters average) |
|
|
439,514 |
|
|
|
279,088 |
|
|
Total Non-GAAP invested capital |
|
$ |
6,780,597 |
|
|
$ |
4,142,662 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROIC |
|
|
11.1 |
% |
|
|
10.8 |
% |
(1) GAAP and non-GAAP operating income included in the trailing fiscal four quarters calculation reflects the adoption of ASC Topic 606 for the fiscal quarters ended February 28, 2019 and 2018, May 31, 2019 and 2018 and August 31, 2019 and 2018. GAAP and non-GAAP operating income for other quarters included in the trailing fiscal four quarters calculation are based on amounts as previously reported.
(2) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods. In fiscal year 2018, the effective tax rate for non-GAAP operating income excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.
Debt to Adjusted EBITDA leverage ratio
|
|
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||
|
Total borrowings, excluding book overdraft |
|
(a) |
|
$ |
3,323,089 |
|
|
$ |
1,821,617 |
|
|
Trailing fiscal four quarters Adjusted EBITDA(1) |
|
(b) |
|
$ |
1,175,264 |
|
|
$ |
733,562 |
|
|
Debt to Adjusted EBITDA leverage ratio |
|
(c)=(a)/(b) |
|
|
2.8 |
|
|
|
2.5 |
|
(1) Adjusted EBITDA included in the trailing fiscal four quarters calculation reflects the adoption of ASC Topic 606 for the fiscal quarters ended February 28, 2019 and 2018, May 31, 2019 and 2018 and August 31, 2019 and 2018. Adjusted EBITDA for other quarters included in the trailing fiscal four quarters calculation is based on amounts as previously reported.
Calculation of Financial Metrics
(currency in thousands)
(Amounts may not add or compute due to rounding)
(continued)
Cash Conversion Cycle
|
|
|
|
|
Three Months Ended |
|
|||||
|
|
|
|
|
August 31, 2019 |
|
|
August 31, 2018 |
|
||
|
|
|
|
|
|
|
|
|
(Adjusted)(1) |
|
|
|
|
|
|
|
|
|
|||||
|
Days sales outstanding |
|
|
|
|
|
|
|
|
|
|
|
Revenue (products and services) |
|
(a) |
|
$ |
6,203,659 |
|
|
$ |
4,822,268 |
|
|
Accounts receivable, net |
|
(b) |
|
|
3,452,976 |
|
|
|
2,727,276 |
|
|
Days sales outstanding |
|
(c) = (b)/((a)/the number of days during the period) |
|
|
51 |
|
|
|
52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days inventory outstanding |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (products and services) |
|
(d) |
|
$ |
5,477,669 |
|
|
$ |
4,392,151 |
|
|
Inventories |
|
(e) |
|
|
2,787,159 |
|
|
|
1,927,713 |
|
|
Days inventory outstanding |
|
(f) = (e)/((d)/the number of days during the period) |
|
|
47 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days payable outstanding |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (products and services) |
|
(g) |
|
$ |
5,477,669 |
|
|
$ |
4,392,151 |
|
|
Accounts payable |
|
(h) |
|
|
2,932,046 |
|
|
|
2,235,139 |
|
|
Days payable outstanding |
|
(i) = (h)/((g)/the number of days during the period) |
|
|
49 |
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash conversion cycle |
|
(j) = (c)+(f)-(i) |
|
|
49 |
|
|
|
45 |
|
(1) Adjusted to reflect the adoption of the new guidance on revenue recognition, on a full retrospective basis.
Investor Contact:
Mary Lai
Investor Relations
SYNNEX Corporation
marylai@synnex.com
(510) 668-8436