EX-99.2 3 scscinfographic_q4fy22.htm EX-99.2 scscinfographic_q4fy22
Fiscal Fourth Quarter 2022 Earnings Our exceptional fiscal year 2022 performance demonstrates the success of the new ScanSource and faster growth of our recurring revenue. Our hybrid distribution strategy of devices and digital is winning, as evidenced by our 12% net sales growth.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights 13% Net Sales Growth and 16% Gross Profit Growth Hybrid Distribution Strategy of Devices and Digital is Winning Exceeds Full-Year 2022 Outlook for Net Sales Growth and Adj. EBITDA Net Sales +13% Y/Y $962.3M Strong Demand and Outstanding Execution Drives Top Line Growth © ScanSource 2022 Consolidated Specialty Technology Solutions Segment Gross Profit +16% Y/Y $110.8M, 11.5% margin Modern Communications & Cloud Segment STS, Net Sales +13% Y/Y $580.6M MC&C, Net Sales +13% Y/Y $381.7M STS, Gross Profit +16% Y/Y $54.0M, 9.3% margin MC&C, Gross Profit +15% Y/Y $56.8M, 14.9% margin Exhibit 99.2


 
* Non-GAAP measure; adjusted ROIC represents return on invested capital For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s fourth quarter and fiscal year 2022 news release issued on August 23, 2022, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. Metrics Reflect Operational Excellence Focused Execution of Value Creation Strategy Solid Financial Foundation for Growth Fiscal Year 2023 Outlook as of August 23, 2022 $0.78 per share Q4 $3.44 per share FY22 GAAP Diluted EPS $0.91 per share Q4 $3.97 per share FY22 Non-GAAP Diluted EPS* $38.7 Q4 +10% Y/Y $166.7M FY22 +41% Y/Y Adjusted EBITDA* FY22 all-time Company record ($124M) FY22 Operating Cash Flow Working capital for growth 14.9% Q4 17.0% FY22 Adjusted ROIC* FY22 Share Repurchases: $18.2M 4.02% Q4 4.72% FY22 Adjusted EBITDA Margin* 1.4x net debt to TTM adjusted EBITDA Target range: 1x to 2x 5.6x inventory turns 5-qtr range: 5.1x to 6.5x Paid for inventory days of (0.8) 5-qtr range: (9.4) to (0.5) 68 days sales outstanding 5-qtr range: 60 to 69 A repositioned company – Innovative hybrid distributor Attractive financial profile Delivering long-term sustainable growth Differentiated market position © ScanSource 2022 At Least 5.5% Net Sales Growth At Least $174M +4% Y/Y Adjusted EBITDA* 2 Building on specialized technologies


 
Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY23 outlook, growth opportunities and our operating strategies that involve plans, strategies, economic performance and trends, projections, expectations, costs or beliefs about future events and other statements that are not descriptions of historical facts. Forward-looking information is inherently subject to risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including but not limited to, the failure to hire and retain quality employees, risk to our business from a cyber-security attack, the failure to manage and implement our organic growth strategy, economic weakness and inflation, a failure of our IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting our international operations, loss of our major customers, termination of our relationship with key suppliers or a significant modification of the terms under which we operate with a key supplier, changes in our operating strategy, and other factors set forth in the “Risk Factors” contained in our annual report on Form 10-K for the year ended June 30, 2022, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”). Although ScanSource believes the expectations in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement. ScanSource disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Financial Information In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP measures, including non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non-GAAP diluted EPS, non-GAAP net sales, non-GAAP SG&A expenses, adjusted EBITDA, adjusted ROIC and net sales less impacts from foreign currency translation and acquisitions (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 3


 
Consolidated, 5-Quarter Financial Summary - for continuing operations ($ in thousands, except per share data) Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q/Q Y/Y Select reported GAAP measures: Net sales $ 962,283 $ 845,990 $ 864,351 $ 857,311 $ 852,694 14% 13% Gross profit $ 110,792 $ 106,508 $ 107,925 $ 101,300 $ 95,778 4% 16% Gross profit margin % 11.5 % 12.6 % 12.5 % 11.8 % 11.2 % (108) bp 28 bp SG&A expenses $ 75,905 $ 66,522 $ 69,433 $ 63,582 $ 64,758 14% 17% Operating income $ 27,424 $ 32,917 $ 31,498 $ 30,328 $ 23,283 (17)% 18% Operating income % 2.85 % 3.89 % 3.64 % 3.54 % 2.73 % (104) bp 12 bp Net income $ 19,947 $ 23,526 $ 23,152 $ 22,073 $ 20,657 (15)% (3)% Diluted EPS $ 0.78 $ 0.91 $ 0.89 $ 0.86 $ 0.80 (14)% (3)% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 31,864 $ 37,374 $ 35,892 $ 34,921 $ 28,368 (15)% 12% Non-GAAP operating income % 3.31 % 4.42 % 4.15 % 4.07 % 3.33 % (111) bp (2) bp Non-GAAP net income $ 23,266 $ 26,879 $ 26,446 $ 25,550 $ 24,522 (13)% (5)% Non-GAAP diluted EPS $ 0.91 $ 1.04 $ 1.02 $ 0.99 $ 0.96 (13)% (5)% Adjusted EBITDA $ 38,672 $ 44,115 $ 42,542 $ 41,394 $ 35,299 (12)% 10% Adjusted EBITDA % 4.02 % 5.21 % 4.92 % 4.83 % 4.14 % (120) bp (12) bp Adjusted ROIC 14.9 % 18.0 % 17.6 % 17.5 % 16.0 % (310) bp (110) bp Operating cash flow (QTR) $ (78,684) $ 29,707 $ (18,419) $ (56,959) $ 61,345 365% (228)% Operating cash flow (TTM) $ (124,355) $ 15,674 $ (74,285) $ (11,417) $ 116,767 (893)% (206)% (a) See pages 13 through 15 for the calculation of non-GAAP measures and reconciliations to GAAP measures. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 August 23, 2022


 
Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q/Q Y/Y Net sales $ 580,619 $ 503,072 $ 496,920 $ 501,711 $ 515,445 15% 13% Gross profit $ 53,994 $ 54,021 $ 52,048 $ 45,694 $ 46,554 —% 16% Gross profit margin % 9.3 % 10.7 % 10.5 % 9.1 % 9.0 % (144) bp 27 bp GAAP operating income $ 15,408 $ 20,623 $ 16,551 $ 14,104 $ 12,011 (25)% 28% GAAP operating income % 2.65 % 4.10 % 3.33 % 2.81 % 2.33 % (145) bp 32 bp Add: Intangible amortization expense $ 1,491 $ 1,491 $ 1,491 $ 1,531 $ 1,610 —% (7)% Non-GAAP operating income $ 16,899 $ 22,114 $ 18,042 $ 15,635 $ 13,621 (24)% 24% Non-GAAP operating income % 2.91 % 4.40 % 3.63 % 3.12 % 2.64 % (149) bp 27 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 15,408 $ 20,623 $ 16,551 $ 14,104 $ 12,011 (25)% 28% Plus: Depreciation expense 2,089 1,833 1,867 1,868 1,967 14% 6% Intangible amortization expense 1,491 1,491 1,491 1,531 1,610 —% (7)% Interest income 325 265 299 305 965 23% (66)% Other income/(expense), net (141) 165 (169) 13 (10) *nm *nm EBITDA 19,172 24,377 20,039 17,821 16,543 (21)% 16% Adjustments: Share-based compensation expense 1,710 1,659 2,038 1,398 1,325 3% 29% Adjusted EBITDA (non-GAAP) $ 20,882 $ 26,036 $ 22,077 $ 19,219 $ 17,868 (20)% 17% Adjusted EBITDA (non-GAAP) % 3.60 % 5.18 % 4.44 % 3.83 % 3.47 % (158) bp 13 bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 August 23, 2022


 
Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q/Q Y/Y Net sales $ 381,664 $ 342,918 $ 367,431 $ 355,600 $ 337,249 11% 13% Gross profit $ 56,798 $ 52,487 $ 55,877 $ 55,606 $ 49,224 8% 15% Gross profit margin % 14.9 % 15.3 % 15.2 % 15.6 % 14.6 % (42) bp 29 bp GAAP operating income $ 12,016 $ 12,294 $ 14,894 $ 16,307 $ 11,466 (2)% 5% GAAP operating income % 3.15 % 3.59 % 4.05 % 4.59 % 3.40 % (44) bp (25) bp Add: Intangible amortization expense $ 2,949 $ 2,966 $ 2,956 $ 2,978 $ 3,283 (1)% (10)% Non-GAAP operating income $ 14,965 $ 15,260 $ 17,850 $ 19,285 $ 14,749 (2)% 1% Non-GAAP operating income % 3.92 % 4.45 % 4.86 % 5.42 % 4.37 % (53) bp (45) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 12,016 $ 12,294 $ 14,894 $ 16,307 $ 11,466 (2)% 5% Plus: Depreciation expense 1,172 1,015 916 1,273 1,231 15% (5)% Intangible amortization expense 2,948 2,966 2,955 2,978 3,283 (1)% (10)% Interest income 1,035 735 648 721 376 41% 175% Other income/(expense), net (542) (28) (374) (276) 77 *nm *nm EBITDA 16,629 16,982 19,039 21,003 16,433 (2)% 1% Adjustments: Share-based compensation expense 1,162 1,098 1,426 1,173 1,003 6% 16% Adjusted EBITDA (non-GAAP) $ 17,791 $ 18,080 $ 20,465 $ 22,176 $ 17,436 (2)% 2% Adjusted EBITDA (non-GAAP) % 4.66 % 5.27 % 5.57 % 6.24 % 5.17 % (61) bp (51) bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 August 23, 2022


 
Net Sales, Constant Currency (Organic Growth) - QTR Net Sales by Segment: ($ In thousands) Q4 FY22 Q4 FY21 % Change Specialty Technology Solutions: Net sales, as reported $ 580,619 $ 515,445 12.6 % Foreign exchange impact (a) (1,338) — Net sales, constant currency (non-GAAP) $ 579,281 $ 515,445 12.4 % Modern Communications & Cloud: Net sales, as reported $ 381,664 $ 337,249 13.2 % Foreign exchange impact (a) (4,447) — Net sales, constant currency (non-GAAP) $ 377,217 $ 337,249 11.9 % Consolidated: Net sales, as reported $ 962,283 $ 852,694 12.9 % Foreign exchange impact (a) (5,785) — Net sales, constant currency (non-GAAP) $ 956,498 $ 852,694 12.2 % Net Sales by Geography: ($ in thousands) Q4 FY22 Q4 FY21 % Change United States and Canada: Net sales, as reported $ 865,737 $ 771,403 12.2 % International: Net sales, as reported $ 96,546 $ 81,291 18.8 % Foreign exchange impact (a) (5,785) — Net sales, constant currency (non-GAAP) $ 90,761 $ 81,291 11.6 % Consolidated: Net sales, as reported $ 962,283 $ 852,694 12.9 % Foreign exchange impact (a) (5,785) — Net sales, constant currency (non-GAAP) $ 956,498 $ 852,694 12.2 % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended June 30, 2022 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2021. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 August 23, 2022


 
Net Sales, Constant Currency (Organic Growth) - FY Net Sales by Segment: Fiscal year ended June 30, ($ In thousands) 2022 2021 % Change Specialty Technology Solutions: Net sales, as reported $ 2,082,321 $ 1,815,933 14.7 % Foreign exchange impact (a) (1,710) — Net sales, constant currency (non-GAAP) $ 2,080,611 $ 1,815,933 14.6 % Modern Communications & Cloud: Net sales, as reported $ 1,447,614 $ 1,334,873 8.4 % Foreign exchange impact (a) (7,115) — Net sales, constant currency (non-GAAP) $ 1,440,499 $ 1,334,873 7.9 % Consolidated: Net sales, as reported $ 3,529,935 $ 3,150,806 12.0 % Foreign exchange impact (a) (8,825) — Net sales, constant currency (non-GAAP) $ 3,521,110 $ 3,150,806 11.8 % Net Sales by Geography: Fiscal year ended June 30, ($ in thousands) 2022 2021 % Change United States and Canada: Net sales, as reported $ 3,173,694 $ 2,840,731 11.7 % International: Net sales, as reported $ 356,241 $ 310,075 14.9 % Foreign exchange impact (a) (8,825) — Net sales, constant currency (non-GAAP) $ 347,416 $ 310,075 12.0 % Consolidated: Net sales, as reported $ 3,529,935 $ 3,150,806 12.0 % Foreign exchange impact (a) (8,825) — Net sales, constant currency (non-GAAP) $ 3,521,110 $ 3,150,806 11.8 % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended June 30, 2022 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2021. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 August 23, 2022


 
Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Adjusted return on invested capital (ROIC), annualized (a) 14.9 % 18.0 % 17.6 % 17.5 % 16.0 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 19,947 $ 23,526 $ 23,152 $ 22,073 $ 20,657 Plus: Interest expense 1,886 1,483 1,493 1,660 1,643 Income taxes 6,267 9,044 7,257 7,358 2,389 Depreciation and amortization 7,700 7,305 7,229 7,650 8,090 EBITDA 35,800 41,358 39,131 38,741 32,779 Adjustments: Acquisition and divestiture costs — — (53) 83 246 Restructuring costs — — — — (54) Share-based compensation 2,872 2,757 3,464 2,570 2,328 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 38,672 $ 44,115 $ 42,542 $ 41,394 $ 35,299 Invested Capital Calculation Equity - beginning of the quarter $ 806,654 $ 768,525 $ 746,094 $ 731,191 $ 690,575 Equity - end of quarter 806,528 806,654 768,525 746,094 731,191 Adjustments: Share-based compensation, net 2,134 2,063 2,590 1,922 1,752 Acquisition and divestiture costs — — (53) 83 207 Restructuring, net of tax — — — — (40) Discontinued operations net (income) loss — — (100) — (3,053) Average equity 807,658 788,621 758,528 739,645 710,316 Average funded debt (b) 233,445 205,073 200,708 197,406 177,074 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,041,103 $ 993,694 $ 959,236 $ 937,051 $ 887,390 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) Average funded debt, which includes both continuing and discontinued operations, is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 August 23, 2022


 
Average Adjusted Return on Invested Capital - FY ($ in thousands) FY22 FY21 Adjusted return on invested capital (ROIC), annualized (a) 17.0 % 12.6 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 88,698 $ 45,389 Plus: Interest expense 6,523 6,929 Income taxes 29,925 12,146 Depreciation and amortization 29,884 33,507 EBITDA 155,030 97,971 Adjustments: Share-based compensation 11,663 8,039 Change in fair value of contingent consideration — 516 Acquisition and divestiture costs 30 2,376 Restructuring costs — 9,047 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 166,723 $ 117,949 Invested Capital Calculation Equity - beginning of the year $ 731,191 $ 678,246 Equity - end of the year 806,528 731,191 Adjustments: Share-based compensation, net 8,709 6,052 Change in fair value of contingent consideration, net of tax — 390 Acquisition and divestiture costs 30 2,337 Restructuring costs, net of tax — 6,840 Impact of discontinued operations, net of tax (100) 34,594 Average equity 773,179 729,825 Average funded debt (b) 209,114 202,869 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 982,293 $ 932,694 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 August 23, 2022


 
Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Consolidated debt (Q/E) $ 271,170 $ 181,500 $ 196,866 $ 197,356 $ 143,174 Less: Consolidated cash and cash equivalents (Q/E) (37,987) (43,539) (34,123) (55,491) (62,718) Net debt (Q/E) $ 233,183 $ 137,961 $ 162,743 $ 141,865 $ 80,456 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 19,947 $ 23,526 $ 23,152 $ 22,073 $ 20,657 Plus: Interest expense 1,886 1,483 1,493 1,660 1,643 Income taxes 6,267 9,044 7,257 7,358 2,389 Depreciation and amortization 7,700 7,305 7,229 7,650 8,090 EBITDA 35,800 41,358 39,131 38,741 32,779 Adjustments: Acquisition and divestiture costs — — (53) 83 246 Restructuring costs — — — — (54) Share-based compensation 2,872 2,757 3,464 2,570 2,328 Adjusted EBITDA (non-GAAP) $ 38,672 $ 44,115 $ 42,542 $ 41,394 $ 35,299 Adjusted EBITDA, TTM (a) $ 166,723 $ 163,350 $ 151,234 $ 138,431 $ 117,948 Net Debt / Adjusted EBITDA, TTM (a) 1.4x 0.8x 1.1x 1.0x 0.7x (a) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 August 23, 2022


 
Working Capital, 5-Quarter Summary ($ in thousands) Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Accounts Receivable (Q/E) $ 729,442 $ 642,384 $ 613,186 $ 589,532 $ 568,984 Days sales outstanding in receivables 68 69 64 62 60 Inventory (Q/E) $ 614,814 $ 591,396 $ 562,397 $ 493,541 $ 470,081 Inventory turns 5.6 5.1 5.7 6.3 6.5 Accounts payable (Q/E) $ 714,177 $ 706,359 $ 653,190 $ 602,229 $ 634,805 Paid for inventory days* (0.8) (2.9) (0.5) (3.2) (9.4) Working Capital (Q/E) (AR+INV-AP) $ 630,079 $ 527,421 $ 522,393 $ 480,844 $ 404,260 Cash conversion cycle 68 66 64 59 51 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 August 23, 2022


 
Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended June 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs Non-GAAP measure SG&A expenses $ 75,905 $ — $ — $ 75,905 Operating income 27,424 4,440 — 31,864 Net income 19,947 3,319 — 23,266 Diluted EPS $ 0.78 $ 0.13 $ — $ 0.91 Quarter ended March 31, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring cost Non-GAAP measure SG&A expenses $ 66,522 $ — $ — $ 66,522 Operating income 32,917 4,457 — 37,374 Net income 23,526 3,353 — 26,879 Diluted EPS $ 0.91 $ 0.13 $ — $ 1.04 ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 August 23, 2022


 
Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended December 31, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $ 69,433 $ — $ 53 $ 69,486 Operating income 31,498 4,447 (53) 35,892 Net income 23,152 3,347 (53) 26,446 Diluted EPS $ 0.89 $ 0.13 $ — $ 1.02 (a) Acquisition and divestiture costs totaled less than ($0.1 million) for the quarter ended December 30, 2021 and are generally nondeductible for tax purposes. Quarter ended September 30, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $ 63,582 $ — $ (83) $ 63,499 Operating income 30,328 4,510 83 34,921 Net income 22,073 3,394 83 25,550 Diluted EPS $ 0.86 $ 0.13 $ — $ 0.99 (a) Acquisition and divestiture costs totaled $0.1 million for the quarter ended September 30, 2021 and are generally nondeductible for tax purposes. Quarter ended June 30, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $ 64,758 $ — $ (246) $ 64,512 Operating income 23,283 4,893 192 28,368 Net income 20,657 3,698 167 24,522 Diluted EPS $ 0.80 $ 0.14 $ 0.01 $ 0.96 (a) Acquisition and divestiture costs totaled $0.2 million for the quarter ended June 30, 2021 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.1 million for the quarter ended June 30, 2021. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 August 23, 2022


 
Operating Income, Net Income & EPS - FY ($ in thousands) Fiscal year ended June 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $ 275,442 $ — $ (30) $ 275,412 Operating income 122,167 17,853 30 140,050 Net income 88,698 13,412 30 102,140 Diluted EPS $ 3.44 $ 0.52 $ — $ 3.97 (a) Acquisition and divestiture costs totaled less than $1.0 million for the fiscal year ended June 30, 2022 and are generally nondeductible for tax purposes. Fiscal year ended June 30, 2021 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Non-GAAP measure SG&A expenses $ 247,438 $ — $ (2,376) $ 245,062 Operating (loss) income 61,483 19,488 11,634 93,121 Net (loss) income 45,389 14,753 9,336 69,868 Diluted EPS $ 1.78 $ 0.58 $ 0.36 $ 2.74 (a) Acquisition and divestiture costs totaled $2.4 million for the fiscal year ended June 30, 2021 and are generally nondeductible for tax purposes. Restructuring costs totaled $9.3 million for the fiscal year ended June 30, 2021. ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 15 August 23, 2022


 
FY23 Annual Financial Outlook Reconciliation FY23 Outlook GAAP, operating income At least $132 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $12 million Interest income and other income (expense), net $1 million Adjusted EBITDA (non-GAAP) At least $174 million ScanSource, Inc. Earnings Infographic Q4 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 16 August 23, 2022