UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 23, 2011
Tech Data Corporation
(Exact name of registrant as specified in its charter)
Florida |
0-14625 |
59-1578329 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
5350 Tech Data Drive Clearwater, Florida |
33760 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: 727-539-7429
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On May 23, 2011, Tech Data Corporation issued a press release, furnished as Exhibit 99.1 and incorporated herein by reference, announcing its financial results for its first quarter ended April 30, 2011. The information in this Form 8-K, including the exhibit noted in Item 9.01, is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99.1
May 23, 2011 Press Release by Tech Data Corporation (The information provided in this Exhibit 99.1 is furnished and shall not be deemed "filed".)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Tech Data Corporation
(Registrant) |
||
May 23, 2011
(Date) |
/s/ JEFFERY P. HOWELLS
Jeffery P. Howells Executive Vice President & Chief Financial Officer Tech Data Corporation |
EXHIBIT 99.1
CLEARWATER, Fla., May 23, 2011 (GLOBE NEWSWIRE) -- Tech Tech Data Corporation (Nasdaq:TECD), a leading distributor of IT products, today announced results for the first quarter ended April 30, 2011.
Results At A Glance | ||
($ in millions, except per share amounts) |
Three months ended April 30, 2011 |
Three months ended April 30, 2010 |
Net sales | $ 6,332.1 | $ 5,621.1 |
Operating income | $ 75.7 | $ 69.5 |
Operating income margin | 1.20% | 1.24 % |
Net income attributable to shareholders of Tech Data Corporation | $ 48.7 | $ 45.6 |
Net income per diluted share attributable to shareholders of Tech Data Corporation | $ 1.03 | $ 0.88 |
Net sales for the first quarter ended April 30, 2011, were $6.3 billion, an increase of 13 percent from $5.6 billion in the prior-year first quarter. The strengthening of certain foreign currencies against the U.S. dollar positively impacted the year-over-year net sales comparison by approximately 3 percentage points. Operating income for the first quarter was $75.7 million or 1.20 percent of net sales. This compared to operating income of $69.5 million or 1.24 percent of net sales in the prior year first quarter. First-quarter net income attributable to shareholders of Tech Data Corporation was $48.7 million or $1.03 per diluted share compared to $45.6 million or $0.88 per diluted share in the prior-year period.
"We are pleased to report another solid performance with record first quarter sales, net income and earnings per share," said Robert M. Dutkowsky, chief executive officer, Tech Data Corporation. "Our first quarter results reflect a Tech Data that is fit, focused and flexible – able to execute well for our vendor partners, customers and investors in a variety of market environments. Our worldwide team's focus on responsible growth and gross margin management, combined with stronger foreign currencies, resulted in sales and earnings growth that was in line with our expectations. Additionally, we achieved a 14 percent return on invested capital, and in the quarter purchased $51 million of our stock, underscoring our commitment to creating shareholder value."
First-Quarter Financial Highlights
Business Outlook
"Looking ahead to the second quarter, we expect year–over-year organic sales growth in both regions on a local currency basis. For the fiscal year, we remain confident in our ability to achieve our stated goals of double-digit operating income and earnings growth, as well as return on invested capital within a range of 14 to 16 percent," said Dutkowsky.
Webcast Details
Tech Data will discuss its first-quarter results on a conference call today at 9:00 a.m. (ET). A webcast of the call, including supplemental schedules, will be available to all interested parties and can be accessed at www.techdata.com/investor. The webcast will be available for replay for three months.
Forward-Looking Statements
Certain matters discussed in this news release are forward-looking statements, based on the company's current expectations that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include the following: global economic instability, competition, narrow margins, dependence on information systems, acquisitions and dispositions, exposure to natural disasters, war and terrorism, dependence on independent shipping companies, impact of policy changes, labor strikes, risk of declines in inventory value, product availability, vendor terms and conditions, loss of significant customers, customer credit exposure, need for liquidity and capital resources; fluctuations in interest rates, foreign currency exchange rates; exposure to foreign markets, changes in income tax and other regulatory legislation, potential adverse effects of litigation; changes in accounting rules, and the volatility of common stock price. Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission, copies of which can be obtained at the company's Investor Relations website at www.techdata.com. All information in this release is as of May 23, 2011. The company undertakes no duty to update any forward-looking statements herein to actual results or changes in the company's expectations.
About Tech Data
Tech Data Corporation (Nasdaq:TECD) is one of the world's largest wholesale distributors of technology products. Its advanced logistics capabilities and value added services enable 125,000 resellers in more than 100 countries to efficiently and cost effectively support the diverse technology needs of end users. Tech Data generated $24.4 billion in net sales for the fiscal year ended January 31, 2011 and is ranked 109th on the Fortune 500®. To learn more, visit www.techdata.com.
TECH DATA CORPORATION AND SUBSIDIARIES | ||
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) | ||
(In thousands, except per share amounts) | ||
Three months ended April 30, |
||
2011 | 2010 | |
Net sales | $6,332,128 | $5,621,055 |
Cost of products sold | 5,998,666 | 5,328,252 |
Gross profit | 333,462 | 292,803 |
Selling, general and administrative expenses | 257,779 | 223,317 |
Operating income | 75,683 | 69,486 |
Interest expense | 8,641 | 6,588 |
Other expense (income), net | 666 | (276) |
Income before income taxes | 66,376 | 63,174 |
Provision for income taxes | 17,656 | 17,530 |
Consolidated net income | 48,720 | 45,644 |
Net income attributable to noncontrolling interest | (19) | (11) |
Net income attributable to shareholders of Tech Data Corporation | $ 48,701 | $ 45,633 |
Net income per common share attributable to shareholders of Tech Data Corporation: |
||
Basic | $ 1.04 | $ 0.89 |
Diluted | $ 1.03 | $ 0.88 |
Weighted average common shares outstanding: | ||
Basic | 46,673 | 51,492 |
Diluted | 47,389 | 52,069 |
TECH DATA CORPORATION AND SUBSIDIARIES | ||
CONSOLIDATED BALANCE SHEET | ||
(In thousands) | ||
April 30, 2011 (Unaudited) |
January 31, 2011 |
|
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 807,554 | $ 839,934 |
Accounts receivable, net | 2,916,549 | 2,896,671 |
Inventories | 2,271,537 | 2,205,394 |
Prepaid expenses and other assets | 210,514 | 181,147 |
Total current assets | 6,206,154 | 6,123,146 |
Property and equipment, net | 95,955 | 94,315 |
Other assets, net | 295,378 | 270,831 |
Total assets | $6,597,487 | $6,488,292 |
LIABILITIES AND EQUITY |
||
Current liabilities: | ||
Revolving credit loans and current maturities of long-term debt, net |
$ 418,444 | $ 434,435 |
Accounts payable | 3,211,201 | 3,223,962 |
Accrued expenses and other liabilities | 539,169 | 562,638 |
Total current liabilities | 4,168,814 | 4,221,035 |
Long-term debt, net | 64,889 | 60,076 |
Other long-term liabilities | 69,368 | 68,754 |
Total liabilities | 4,303,071 | 4,349,865 |
Equity attributable to shareholders of Tech Data Corporation | 2,268,482 | 2,114,466 |
Noncontrolling interest | 25,934 | 23,961 |
Total equity | 2,294,416 | 2,138,427 |
Total liabilities and equity | $6,597,487 | $6,488,292 |
TECH DATA CORPORATION AND SUBSIDIARIES | ||||
SUPPLEMENTARY INFORMATION (UNAUDITED) | ||||
(In thousands) | ||||
Three months ended April 30, 2011 |
Three months ended April 30, 2010 |
|||
Operating Income by Segment | Operating Income | Operating Margin | Operating Income | Operating Margin |
Americas | $ 47,873 | 1.83% | $ 44,290 | 1.80% |
Europe | 30,277 | .81% | 27,645 | .88% |
Stock-based compensation | (2,467) | (.04)% | (2,449) | (.04)% |
Worldwide total | $ 75,683 | 1.20% | $ 69,486 | 1.24% |
Return on Invested Capital (ROIC) | |||
(In millions) | |||
Twelve months ended April 30, 2011 |
Twelve months ended April 30, 2010 |
||
Net Operating Profit After Tax (NOPAT): | |||
Operating Income – GAAP | $ 340 | $ 281 | |
Tax Provision | 94 | 67 | |
NOPAT – GAAP | $ 246 | $ 214 | |
Average Invested Capital: | |||
Short-term debt (5-qtr average) | $ 227 | $ 68 | |
Long-term debt (5-qtr average) | 240 | 336 | |
Shareholders' Equity (5-qtr average) | 2,101 | 2,010 | |
Total average capital | 2,568 | 2,414 | |
Less: Cash (5-qtr average) | (841) | (992) | |
Average invested capital less average cash | $ 1,727 | $ 1,422 | |
ROIC – as reported | 14% | 15% |
Net Cash | ||
(In millions) | ||
April 30, 2011 | January 31, 2011 | |
Cash | $ 808 | $ 840 |
Current debt, excluding convertible debentures | 74 | 93 |
Long-term debt | 65 | 60 |
Convertible debentures (net of discount) (1) | 344 | 341 |
Total debt | 483 | 494 |
Net Cash (Cash less total debt) | $ 325 | $ 346 |
(1) In December 2006, $350 million of convertible debentures were issued. Shown net of discount of $6 million and $9 million, respectively. |
CONTACT: Jeffery P. Howells Executive Vice President and Chief Financial Officer 727-538-7825 (jeff.howells@techdata.com) Arleen Quinones Director, Investor Relations and Shareholder Services 727-532-8866 (arleen.quinones@techdata.com)