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Q1 2009 Earning Report of ScanSource, Inc.
1. FORM 8-K
SCANSOURCE INC - SCSC
Filed: April 24, 2009 (period: April 23, 2009)
Report of unscheduled material events or corporate changes.
2. Table of Contents
8-K - FORM 8-K
Results of Operations and Financial Condition
Item 2.02.
Financial Statements and Exhibits
Item 9.01.
SIGNATURES
EX-99.1 (PRESS RELEASE)
3. 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) April 23, 2009
ScanSource, Inc.
(Exact Name of Registrant as Specified in Its Charter)
South Carolina 000-26926 57-0965380
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification
Number)
6 Logue Court, Greenville, South Carolina 29615
(Address, Including Zip Code, of Principal Executive Offices)
(864) 288-2432
(Registrant’s Telephone Number, Including Area Code)
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 (see General Instruction A.2. below):
ďż˝ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
ďż˝ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
ďż˝ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
ďż˝ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Source: SCANSOURCE INC, 8-K, April 24, 2009
4. Item 2.02. Results of Operations and Financial Condition
On April 23, 2009, ScanSource, Inc. issued a press release announcing its financial results for the third quarter ended March 31, 2009. A copy of the press
release is attached as Exhibit 99.1 hereto and incorporated herein by reference and also made available through the Company’s website at
www.scansourceinc.com.
The information in this Current Report on Form 8-K, including the exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933 or the Exchange Act.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 – Press release issued by ScanSource, Inc. on April 23, 2009. The information contained in the attached exhibit is unaudited and should be read
in conjunction with the Registrant’s annual and quarterly reports filed with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
ScanSource, Inc.
Date: April 24, 2009 By: /S/ Richard P. Cleys
Name: Richard P. Cleys
Its: Vice President and Chief Financial Officer
Source: SCANSOURCE INC, 8-K, April 24, 2009
5. Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: Richard P. Cleys
VP and CFO
ScanSource, Inc.
(864) 286-4358
SCANSOURCE REPORTS THIRD QUARTER RESULTS
GREENVILLE, SC – April 23, 2009 – 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 third
quarter ended March 31, 2009.
Quarter End 3/31/09 capsule:
Net sales $390 million
Net income $9.2 million
Diluted EPS $0.35 per share
“Although we are disappointed in the weak sales results across all of our businesses,” said Mike Baur, CEO, ScanSource, Inc., “we are satisfied with our
overall operating results.”
For the quarter ended March 31, 2009, net sales decreased 24.2% to $390 million compared to $514 million for the quarter ended March 31, 2008.
Quarterly operating income decreased 20.4% to $15.1 million from $19.0 million for the comparable prior year quarter. The effective tax rate for the quarter was
37.6%, compared to 38.8% for the prior year quarter. Net income decreased 16.3% to $9.2
Source: SCANSOURCE INC, 8-K, April 24, 2009
6. ScanSource Reports Third Quarter Results
million for the quarter ended March 31, 2009 versus $11.0 million for the quarter ended March 31, 2008.
Forecast for Next Quarter
The Company announced its revenue forecast for the fourth quarter of fiscal 2009. ScanSource expects net revenues for the June 2009 quarter could range
from $390 million to $430 million.
Safe Harbor Statement
This news 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, 2008 filed with the Securities and Exchange Commission.
About ScanSource
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
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Source: SCANSOURCE INC, 8-K, April 24, 2009
7. ScanSource Reports Third Quarter Results
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
(In thousands)
March 31,
2009 June 30,
(unaudited) 2008 *
Assets
Current Assets
Cash and cash equivalents $ 114,391 $ 15,224
Trade & notes receivable, net 252,919 360,154
Other receivables 5,837 8,052
Inventories 218,407 280,077
Prepaid expenses and other assets 5,539 5,556
Deferred income taxes 11,593 11,428
Total current assets 608,686 680,491
Property and equipment, net 22,516 22,420
Goodwill 32,705 36,121
Other assets, including identifiable intangible assets 30,645 33,174
Total assets $ 694,552 $ 772,206
Liabilities and Shareholders’ Equity
Current Liabilities
Current portion of long-term debt $ — $ —
Short-term borrowings — 7,649
Trade accounts payable 197,907 265,284
Accrued expenses and other liabilities 29,530 38,922
Total current liabilities 227,437 311,855
Long-term debt 30,429 29,576
Borrowings under revolving credit facility — 27,047
Other long-term liabilities 9,332 7,975
Total liabilities 267,198 376,453
Shareholders’ Equity
Common stock 102,888 96,097
Retained earnings 325,318 290,134
Accumulated other comprehensive income (loss) (852) 9,522
Total shareholders’ equity 427,354 395,753
Total liabilities and shareholders’ equity $ 694,552 $ 772,206
* Derived from audited financial statements at June 30, 2008.
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Source: SCANSOURCE INC, 8-K, April 24, 2009
8. ScanSource Reports Third Quarter Results
SCANSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
(In thousands, except per share data)
Quarter ended Nine months ended
March 31, March 31,
2009 2008 2009 2008
Net sales $ 389,815 $ 514,420 $ 1,406,733 $ 1,621,455
Cost of goods sold 342,280 462,701 1,251,368 1,452,435
Gross profit 47,535 51,719 155,365 169,020
Selling, general and administrative expenses 32,418 32,723 101,225 99,238
Operating income 15,117 18,996 54,140 69,782
Other expense (income):
Interest expense 609 1,097 1,810 4,496
Interest income (344) (401) (1,119) (1,108)
Other expense (income) 54 286 (2,228) (118)
Other expense (income), net 319 982 (1,537) 3,270
Income before income taxes 14,798 18,014 55,677 66,512
Provision for income taxes 5,569 6,986 20,492 25,347
Net income $ 9,229 $ 11,028 $ 35,185 $ 41,165
Per share data:
Net income per common share, basic $ 0.35 $ 0.42 $ 1.33 $ 1.59
Weighted-average shares outstanding, basic 26,463 26,038 26,412 25,934
Net income per common share, diluted $ 0.35 $ 0.42 $ 1.32 $ 1.56
Weighted-average shares outstanding, diluted 26,565 26,423 26,572 26,325
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Source: SCANSOURCE INC, 8-K, April 24, 2009