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FORM 8-K
SCANSOURCE INC - SCSC
Filed: April 24, 2009 (period: April 23, 2009)
Report of unscheduled material events or corporate changes.
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)
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
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
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
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

                                                                               2




Source: SCANSOURCE INC, 8-K, April 24, 2009
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.

                                                                               3




Source: SCANSOURCE INC, 8-K, April 24, 2009
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

                                                                4


_______________________________________________
Created by 10KWizard www.10KWizard.com




Source: SCANSOURCE INC, 8-K, April 24, 2009

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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 2 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. 3 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 4 _______________________________________________ Created by 10KWizard www.10KWizard.com Source: SCANSOURCE INC, 8-K, April 24, 2009