FREMONT, Calif., Jan. 10,
2019 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading
business process services company, today announced financial
results for the fiscal fourth quarter and fiscal year ended
November 30, 2018.
|
Q4
FY18
|
Q4
FY17
|
Net
change
|
Revenue
($M)
|
$5,622
|
$5,312
|
5.8%
|
Operating income
($M)
|
$198.3
|
$159.9
|
24.0%
|
Non-GAAP operating
income ($M)(1)
|
$265.1
|
$192.9
|
37.4%
|
Operating
margin
|
3.53%
|
3.01%
|
52 bps
|
Non-GAAP operating
margin(1)
|
4.72%
|
3.63%
|
108 bps
|
Net income
($M)
|
$113.2
|
$91.1
|
24.3%
|
Non-GAAP net income
($M)(1)
|
$171.5
|
$112.4
|
52.5%
|
Diluted
EPS
|
$2.41
|
$2.26
|
6.6%
|
Non-GAAP Diluted
EPS(1)
|
$3.65
|
$2.79
|
30.8%
|
|
(1) Non-GAAP
financial measures exclude the impact of acquisition-related and
integration expenses, the amortization of intangible assets
together with the related tax effects thereon, and an adjustment
related to repatriation tax and the remeasurement of deferred
taxes. A reconciliation of GAAP to Non-GAAP financial measures is
presented in the supplementary information section at the end of
this press release.
|
"Our record results continued in the fourth quarter as a result
of strong demand in Technology Solutions and outstanding
performance from Concentrix," said Dennis
Polk, President and Chief Executive Officer, SYNNEX
Corporation. "Superior execution by our team and leveraging the
strategic investments we have made enabled the strong finish to
fiscal 2018. We look forward to driving additional value for all
our constituents in 2019."
Fiscal 2018 Fourth Quarter Highlights:
- Technology Solutions: Revenue was $4.7 billion, down 2.7% from the prior fiscal
year fourth quarter. Operating income was $123 million, or 2.6% of segment revenue,
compared to $112 million, or 2.3% of
segment revenue, in the prior fiscal year fourth quarter. Non-GAAP
operating income was $136 million, or
2.9% of segment revenue, in the fiscal fourth quarter of 2018,
compared to $128 million, or 2.7% of
segment revenue, in the prior fiscal year fourth quarter.
- Concentrix: Revenue was $972
million, up 82.0% from the prior fiscal year fourth quarter
as a result of the Convergys acquisition on October 5th. Operating income was
$75 million, or 7.7% of segment
revenue, compared to $48 million, or
8.9% of segment revenue in the prior fiscal year fourth quarter.
Non-GAAP operating income was $129
million, or 13.2% of segment revenue, in the fiscal fourth
quarter of 2018, compared to $65
million, or 12.1% of segment revenue, in the prior fiscal
year fourth quarter.
- The trailing fiscal four quarters Return on Invested Capital
("ROIC") was 7.9% compared to 10.3% in the prior fiscal year fourth
quarter. The adjusted trailing fiscal four quarters ROIC was
10.8%.
- Depreciation and amortization were $34
million and $45 million,
respectively.
- Cash generated from operations was approximately $141 million for the quarter.
|
FY18
|
FY17
|
Net
change
|
Revenue
($M)
|
$20,054
|
$17,046
|
17.6%
|
Operating income
($M)
|
$551.0
|
$509.0
|
8.3%
|
Non-GAAP operating
income ($M)(1)
|
$720.5
|
$592.9
|
21.5%
|
Operating
margin
|
2.75%
|
2.99%
|
(24) bps
|
Non-GAAP operating
margin(1)
|
3.59%
|
3.48%
|
11 bps
|
Net income
($M)
|
$300.6
|
$301.2
|
-0.2%
|
Non-GAAP Net income
($M)(1)
|
$455.4
|
$355.6
|
28.1%
|
Diluted
EPS
|
$7.19
|
$7.51
|
-4.3%
|
Non-GAAP Diluted
EPS(1)
|
$10.89
|
$8.86
|
22.9%
|
|
(1) Non-GAAP
financial measures exclude the impact of acquisition-related and
integration expenses, the amortization of intangible assets
together with the related tax effects thereon, and an adjustment
related to repatriation tax and the remeasurement of deferred
taxes. A reconciliation of GAAP to Non-GAAP financial measures is
presented in the supplementary information section at the end of
this press release.
|
Fiscal 2018 Highlights:
- Technology Solutions: Revenue was $17.6 billion, up 16.8% from the prior fiscal
year. Operating income was $406
million, or 2.3% of segment revenue, compared to
$394 million, or 2.6% of segment
revenue, in the prior fiscal year. Non-GAAP operating income was
$464 million, or 2.6% of segment
revenue, in fiscal year 2018, compared to $413 million, or 2.7% of segment revenue, in the
prior fiscal year.
- Concentrix: Revenue was $2.5
billion, up 23.8% from the prior fiscal year as a result of
the Convergys acquisition on October
5th. Operating income was $145 million, or 5.9% of segment revenue,
compared to $115 million, or 5.8% of
segment revenue, in the prior fiscal year. Non-GAAP operating
income was $257 million, or 10.4% of
segment revenue, in fiscal year 2018, compared to $180 million, or 9.0% of segment revenue, in the
prior fiscal year.
- Depreciation and amortization were $101
million and $124 million,
respectively.
- Cash generated from operations was approximately $101 million for the year.
Fiscal 2019 First Quarter Outlook:
The following statements are based on SYNNEX's current
expectations for the fiscal 2019 first quarter. 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 $5.225 billion to $5.425
billion.
- Net income is expected to be in the range of $88.1 million to $93.1
million and, on a Non-GAAP basis, net income is expected to
be in the range of $138.9 million to
$143.9 million.
- Diluted earnings per share is expected to be in the range of
$1.71 to $1.81 and, on a Non-GAAP basis, diluted earnings
per share is expected to be in the range of $2.70 to $2.80.
- After-tax amortization of intangibles is expected to be
$37.7 million, or $0.73 per share.
- After-tax acquisition-related and integration expense is
expected to be $13.1 million, or
$0.25 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 January 31, 2019 to stockholders of record as of
the close of business on January 22,
2019.
Conference Call and Webcast
SYNNEX will be discussing its financial results and outlook on a
conference call today at 2:00 p.m.
(PT). A webcast of the call will be available at
http://ir.synnex.com. The conference call will also be available
via telephone by dialing (866) 393-4306 in North America or (734) 385-2616 outside North
America. The passcode for the call is "SNX." A replay of the
webcast will be available at http://ir.synnex.com approximately two
hours after the conference call has concluded where it will be
archived for one year.
About SYNNEX Corporation
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. Concentrix, a wholly-owned subsidiary of
SYNNEX Corporation, offers a portfolio of strategic solutions and
end-to-end business services focused on customer engagement,
process optimization, technology innovation, front and back-office
automation and business transformation to clients in ten identified
industry verticals. 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 www.synnex.com.
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 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 the Company's 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.
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 the Company's
consolidated financial statements prepared in accordance with GAAP.
A reconciliation of SYNNEX' non-GAAP financial information to GAAP
is set forth in the supplemental 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 the fiscal 2019 first quarter as to revenue, net
income, non-GAAP net income, diluted earnings per share, non-GAAP
diluted earnings per share, tax rate, after-tax amortization of
intangibles, and after-tax acquisition-related and integration
expenses, frequency and occurrence of dividend declarations, as
well as statements regarding additional value for constituents, 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
estimated financial impact of the Convergys acquisition; 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, 2017 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. Other names and
marks are the property of their respective owners.
SYNNEX
Corporation
|
Consolidated
Balance Sheets
|
(currency and
share amounts in thousands)
|
(Amounts may not
add due to rounding)
|
(unaudited)
|
|
|
November 30,
2018
|
|
November 30,
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
454,694
|
|
|
$
|
550,688
|
|
Restricted
cash
|
7,126
|
|
|
5,837
|
|
Short-term
investments
|
2,581
|
|
|
5,475
|
|
Accounts receivable,
net
|
3,855,431
|
|
|
2,846,371
|
|
Receivable from
related parties
|
65
|
|
|
77
|
|
Inventories
|
2,518,319
|
|
|
2,162,626
|
|
Other current
assets
|
261,536
|
|
|
168,704
|
|
Total current
assets
|
7,099,753
|
|
|
5,739,778
|
|
Property and
equipment, net
|
571,326
|
|
|
346,589
|
|
Goodwill
|
2,203,316
|
|
|
872,641
|
|
Intangible assets,
net
|
1,377,305
|
|
|
583,051
|
|
Deferred tax
assets
|
76,508
|
|
|
31,687
|
|
Other
assets
|
152,227
|
|
|
124,780
|
|
Total
assets
|
$
|
11,480,434
|
|
|
$
|
7,698,526
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Borrowings,
current
|
$
|
833,216
|
|
|
$
|
805,471
|
|
Accounts
payable
|
3,025,197
|
|
|
2,626,720
|
|
Payable to related
parties
|
22,905
|
|
|
16,888
|
|
Accrued compensation
and benefits
|
358,352
|
|
|
204,665
|
|
Other accrued
liabilities
|
613,449
|
|
|
354,104
|
|
Income taxes
payable
|
41,322
|
|
|
33,359
|
|
Total current
liabilities
|
4,894,441
|
|
|
4,041,207
|
|
Long-term
borrowings
|
2,622,782
|
|
|
1,136,089
|
|
Other long-term
liabilities
|
325,119
|
|
|
124,008
|
|
Deferred tax
liabilities
|
206,024
|
|
|
113,527
|
|
Total
liabilities
|
8,048,366
|
|
|
5,414,831
|
|
|
|
|
|
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, 52,861 and 41,092 shares
issued as of November 30, 2018 and 2017, respectively
|
51
|
|
|
41
|
|
Additional paid-in
capital
|
1,512,203
|
|
|
467,948
|
|
Treasury stock, 2,167
and 1,419 shares as of November 30, 2018 and 2017,
respectively
|
(149,533)
|
|
|
(77,133)
|
|
Accumulated other
comprehensive income (loss)
|
(126,288)
|
|
|
(61,919)
|
|
Retained
earnings
|
2,195,635
|
|
|
1,954,758
|
|
Total stockholders'
equity
|
3,432,068
|
|
|
2,283,695
|
|
Total liabilities and
equity
|
$
|
11,480,434
|
|
|
$
|
7,698,526
|
|
SYNNEX
Corporation
|
Consolidated
Statements of Operations
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(Amounts may not
add due to rounding)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2018
|
|
November 30,
2017
|
|
November 30,
2018
|
|
November 30,
2017
|
Revenue:
|
|
|
|
|
|
|
|
Products
|
$
|
4,654,642
|
|
|
$
|
4,781,408
|
|
|
$
|
17,608,897
|
|
|
$
|
15,070,871
|
|
Services
|
967,559
|
|
|
530,469
|
|
|
2,444,867
|
|
|
1,974,829
|
|
Total
revenue
|
5,622,201
|
|
|
5,311,877
|
|
|
20,053,764
|
|
|
17,045,700
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Products
|
(4,383,245)
|
|
|
(4,525,904)
|
|
|
(16,611,595)
|
|
|
(14,262,094)
|
|
Services
|
(587,472)
|
|
|
(324,005)
|
|
|
(1,514,470)
|
|
|
(1,232,666)
|
|
Gross
profit
|
651,485
|
|
|
461,968
|
|
|
1,927,699
|
|
|
1,550,940
|
|
Selling, general and
administrative expenses
|
(453,215)
|
|
|
(302,108)
|
|
|
(1,376,664)
|
|
|
(1,041,975)
|
|
Operating
income
|
198,270
|
|
|
159,860
|
|
|
551,036
|
|
|
508,965
|
|
Interest expense and
finance charges, net
|
(30,791)
|
|
|
(18,459)
|
|
|
(84,675)
|
|
|
(45,357)
|
|
Other income
(expense), net
|
(5,487)
|
|
|
(202)
|
|
|
(8,984)
|
|
|
1,123
|
|
Income before income
taxes
|
161,992
|
|
|
141,199
|
|
|
457,377
|
|
|
464,731
|
|
Provision for income
taxes
|
(48,811)
|
|
|
(50,126)
|
|
|
(156,779)
|
|
|
(163,558)
|
|
Net income
|
$
|
113,180
|
|
|
$
|
91,073
|
|
|
$
|
300,598
|
|
|
$
|
301,173
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
2.42
|
|
|
$
|
2.28
|
|
|
$
|
7.23
|
|
|
$
|
7.54
|
|
Diluted
|
$
|
2.41
|
|
|
$
|
2.26
|
|
|
$
|
7.19
|
|
|
$
|
7.51
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
46,429
|
|
|
39,635
|
|
|
41,215
|
|
|
39,556
|
|
Diluted
|
46,633
|
|
|
39,867
|
|
|
41,451
|
|
|
39,758
|
|
Cash dividends
declared per share
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
1.40
|
|
|
$
|
1.05
|
|
SYNNEX
Corporation
|
Segment
Information
|
(currency in
thousands)
|
(Amounts may not
add due to rounding)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2018
|
|
November 30,
2017
|
|
November 30,
2018
|
|
November 30,
2017
|
Revenue:
|
|
|
|
|
|
|
|
Technology
Solutions
|
$
|
4,654,646
|
|
|
$
|
4,781,491
|
|
|
$
|
17,608,982
|
|
|
$
|
15,071,185
|
|
Concentrix
|
972,286
|
|
|
534,363
|
|
|
2,463,151
|
|
|
1,990,180
|
|
Inter-segment
elimination
|
(4,730)
|
|
|
(3,977)
|
|
|
(18,369)
|
|
|
(15,665)
|
|
Consolidated
|
$
|
5,622,201
|
|
|
$
|
5,311,877
|
|
|
$
|
20,053,764
|
|
|
$
|
17,045,700
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Technology
Solutions
|
$
|
122,924
|
|
|
$
|
112,226
|
|
|
$
|
406,274
|
|
|
$
|
394,320
|
|
Concentrix
|
75,346
|
|
|
47,634
|
|
|
144,761
|
|
|
114,623
|
|
Inter-segment
elimination
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
Consolidated
|
$
|
198,270
|
|
|
$
|
159,860
|
|
|
$
|
551,036
|
|
|
$
|
508,965
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency in
thousands)
|
(Amounts may not
add due to rounding)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2018
|
|
November 30,
2017
|
|
November 30,
2018
|
|
November 30,
2017
|
Revenue in
Constant Currency
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Revenue
|
$
|
5,622,201
|
|
|
$
|
5,311,877
|
|
|
$
|
20,053,764
|
|
|
$
|
17,045,700
|
|
Foreign currency
translation
|
44,623
|
|
|
|
|
(18,539)
|
|
|
|
Revenue in constant
currency
|
$
|
5,666,824
|
|
|
$
|
5,311,877
|
|
|
$
|
20,035,225
|
|
|
$
|
17,045,700
|
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
4,654,646
|
|
|
$
|
4,781,491
|
|
|
$
|
17,608,982
|
|
|
$
|
15,071,185
|
|
Foreign currency
translation
|
32,307
|
|
|
|
|
(13,247)
|
|
|
|
Revenue in constant
currency
|
$
|
4,686,953
|
|
|
$
|
4,781,491
|
|
|
$
|
17,595,735
|
|
|
$
|
15,071,185
|
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
972,286
|
|
|
$
|
534,363
|
|
|
$
|
2,463,151
|
|
|
$
|
1,990,180
|
|
Foreign currency
translation
|
12,316
|
|
|
|
|
(5,292)
|
|
|
|
Revenue in constant
currency
|
$
|
984,602
|
|
|
$
|
534,363
|
|
|
$
|
2,457,859
|
|
|
$
|
1,990,180
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2018
|
|
November 30,
2017
|
|
November 30,
2018
|
|
November 30,
2017
|
Selling, general
and administrative expenses
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
453,215
|
|
|
$
|
302,108
|
|
|
$
|
1,376,664
|
|
|
$
|
1,041,975
|
|
Acquisition-related
and integration expenses
|
21,713
|
|
|
3,144
|
|
|
45,132
|
|
|
4,781
|
|
Amortization of
intangibles
|
44,662
|
|
|
29,516
|
|
|
122,544
|
|
|
77,500
|
|
Adjusted selling,
general and administrative expenses
|
$
|
386,840
|
|
|
$
|
269,448
|
|
|
$
|
1,208,988
|
|
|
$
|
959,694
|
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
148,476
|
|
|
$
|
143,356
|
|
|
$
|
591,106
|
|
|
$
|
414,763
|
|
Acquisition-related
and integration expenses
|
1,293
|
|
|
3,019
|
|
|
7,642
|
|
|
3,724
|
|
Amortization of
intangibles
|
12,205
|
|
|
12,968
|
|
|
50,007
|
|
|
14,929
|
|
Adjusted selling,
general and administrative expenses
|
$
|
134,978
|
|
|
$
|
127,369
|
|
|
$
|
533,457
|
|
|
$
|
396,110
|
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
GAAP selling, general
and administrative expenses
|
$
|
306,670
|
|
|
$
|
160,398
|
|
|
$
|
792,791
|
|
|
$
|
634,530
|
|
Acquisition-related
and integration expenses
|
20,420
|
|
|
125
|
|
|
37,490
|
|
|
1,057
|
|
Amortization of
intangibles
|
32,457
|
|
|
16,548
|
|
|
72,537
|
|
|
62,571
|
|
Adjusted selling,
general and administrative expenses
|
$
|
253,793
|
|
|
$
|
143,725
|
|
|
$
|
682,764
|
|
|
$
|
570,902
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency in
thousands)
|
(Amounts may not
add due to rounding)
|
(continued)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2018
|
|
November 30,
2017
|
|
November 30,
2018
|
|
November 30,
2017
|
Operating income
and Operating margin
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Revenue
|
$
|
5,622,201
|
|
|
$
|
5,311,877
|
|
|
$
|
20,053,764
|
|
|
$
|
17,045,700
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
198,270
|
|
|
$
|
159,860
|
|
|
$
|
551,036
|
|
|
$
|
508,965
|
|
Acquisition-related
and integration expenses
|
21,713
|
|
|
3,144
|
|
|
45,132
|
|
|
4,781
|
|
Amortization of
intangibles
|
45,149
|
|
|
29,937
|
|
|
124,332
|
|
|
79,181
|
|
Non-GAAP operating
income
|
$
|
265,132
|
|
|
$
|
192,941
|
|
|
$
|
720,500
|
|
|
$
|
592,927
|
|
Depreciation
|
33,924
|
|
|
21,647
|
|
|
100,955
|
|
|
80,705
|
|
Adjusted
EBITDA
|
$
|
299,056
|
|
|
$
|
214,588
|
|
|
$
|
821,455
|
|
|
$
|
673,632
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
3.53
|
%
|
|
3.01
|
%
|
|
2.75
|
%
|
|
2.99
|
%
|
Non-GAAP operating
margin
|
4.72
|
%
|
|
3.63
|
%
|
|
3.59
|
%
|
|
3.48
|
%
|
|
|
|
|
|
|
|
|
Technology
Solutions
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
4,654,646
|
|
|
$
|
4,781,491
|
|
|
$
|
17,608,982
|
|
|
$
|
15,071,185
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
122,924
|
|
|
$
|
112,226
|
|
|
$
|
406,274
|
|
|
$
|
394,320
|
|
Acquisition-related
and integration expenses
|
1,293
|
|
|
3,019
|
|
|
7,642
|
|
|
3,724
|
|
Amortization of
intangibles
|
12,205
|
|
|
12,968
|
|
|
50,007
|
|
|
14,929
|
|
Non-GAAP operating
income
|
$
|
136,422
|
|
|
$
|
128,213
|
|
|
$
|
463,923
|
|
|
$
|
412,973
|
|
Depreciation
|
5,625
|
|
|
4,703
|
|
|
20,681
|
|
|
15,111
|
|
Adjusted
EBITDA
|
$
|
142,047
|
|
|
$
|
132,916
|
|
|
$
|
484,604
|
|
|
$
|
428,084
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
2.64
|
%
|
|
2.35
|
%
|
|
2.31
|
%
|
|
2.62
|
%
|
Non-GAAP operating
margin
|
2.93
|
%
|
|
2.68
|
%
|
|
2.63
|
%
|
|
2.74
|
%
|
|
|
|
|
|
|
|
|
Concentrix
|
|
|
|
|
|
|
|
Segment
revenue
|
$
|
972,286
|
|
|
$
|
534,363
|
|
|
$
|
2,463,151
|
|
|
$
|
1,990,180
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
75,346
|
|
|
$
|
47,634
|
|
|
$
|
144,761
|
|
|
$
|
114,623
|
|
Acquisition-related
and integration expenses
|
20,420
|
|
|
125
|
|
|
37,490
|
|
|
1,057
|
|
Amortization of
intangibles
|
32,944
|
|
|
16,969
|
|
|
74,325
|
|
|
64,252
|
|
Non-GAAP operating
income
|
$
|
128,710
|
|
|
$
|
64,728
|
|
|
$
|
256,576
|
|
|
$
|
179,932
|
|
Depreciation
|
28,299
|
|
|
16,944
|
|
|
80,274
|
|
|
65,617
|
|
Adjusted
EBITDA
|
$
|
157,009
|
|
|
$
|
81,672
|
|
|
$
|
336,850
|
|
|
$
|
245,549
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
7.75
|
%
|
|
8.91
|
%
|
|
5.88
|
%
|
|
5.76
|
%
|
Non-GAAP operating
margin
|
13.24
|
%
|
|
12.11
|
%
|
|
10.42
|
%
|
|
9.04
|
%
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(currency and
share amounts in thousands, except for per share
amounts)
|
(Amounts may not
add due to rounding)
|
(continued)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
November 30,
2018
|
|
November 30,
2017
|
|
November 30,
2018
|
|
November 30,
2017
|
Net
income
|
|
|
|
|
|
|
|
Net income
|
$
|
113,180
|
|
|
$
|
91,073
|
|
|
$
|
300,598
|
|
|
$
|
301,173
|
|
Acquisition-related
and integration expenses
|
21,713
|
|
|
3,144
|
|
|
42,498
|
|
|
4,781
|
|
Amortization of
intangibles
|
45,149
|
|
|
29,937
|
|
|
124,332
|
|
|
79,181
|
|
Income taxes related
to the above(1)
|
(16,930)
|
|
|
(11,711)
|
|
|
(45,111)
|
|
|
(29,550)
|
|
U.S. tax reform
adjustment
|
8,410
|
|
|
—
|
|
|
33,111
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
171,522
|
|
|
$
|
112,443
|
|
|
$
|
455,428
|
|
|
$
|
355,585
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share ("EPS")(2)
|
|
|
|
|
|
|
|
Net income
|
$
|
113,180
|
|
|
$
|
91,073
|
|
|
$
|
300,598
|
|
|
$
|
301,173
|
|
Less: net income
allocated to participating securities
|
(977)
|
|
|
(836)
|
|
|
(2,721)
|
|
|
(2,778)
|
|
Net income
attributable to common stockholders
|
112,203
|
|
|
90,237
|
|
|
297,877
|
|
|
298,395
|
|
Acquisition-related
and integration expenses attributable to common
stockholders
|
21,515
|
|
|
3,115
|
|
|
42,106
|
|
|
4,737
|
|
Amortization of
intangibles attributable to common stockholders
|
44,737
|
|
|
29,661
|
|
|
123,186
|
|
|
78,448
|
|
Income taxes related
to the above attributable to common
stockholders(1)
|
(16,775)
|
|
|
(11,603)
|
|
|
(44,695)
|
|
|
(29,277)
|
|
U.S. tax reform
adjustment attributable to common stockholders
|
8,333
|
|
|
—
|
|
|
32,806
|
|
|
—
|
|
Non-GAAP net income
attributable to common stockholders
|
$
|
170,013
|
|
|
$
|
111,410
|
|
|
$
|
451,279
|
|
|
$
|
352,303
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares - diluted:
|
46,633
|
|
|
39,867
|
|
|
41,451
|
|
|
39,758
|
|
|
|
|
|
|
|
|
|
Diluted
EPS(2)
|
$
|
2.41
|
|
|
$
|
2.26
|
|
|
$
|
7.19
|
|
|
$
|
7.51
|
|
Acquisition-related
and integration expenses
|
0.46
|
|
|
0.08
|
|
|
1.02
|
|
|
0.12
|
|
Amortization of
intangibles
|
0.96
|
|
|
0.74
|
|
|
2.97
|
|
|
1.97
|
|
Income taxes related
to the above(1)
|
(0.36)
|
|
|
(0.29)
|
|
|
(1.08)
|
|
|
(0.74)
|
|
U.S. tax
reform adjustment attributable to common stockholders
|
0.18
|
|
|
—
|
|
|
0.79
|
|
|
—
|
|
Non-GAAP Diluted
EPS
|
$
|
3.65
|
|
|
$
|
2.79
|
|
|
$
|
10.89
|
|
|
$
|
8.86
|
|
SYNNEX
Corporation
|
Reconciliation of
GAAP to Non-GAAP financial measures
|
(amounts in
millions, except for per share amounts)
|
(Amounts may not
add due to rounding)
|
(continued)
|
|
|
Forecast
|
|
Three Months
Ending February 28, 2019
|
|
Low
|
|
High
|
Net
income
|
|
|
|
Net income
|
$
|
88.1
|
|
|
$
|
93.1
|
|
Acquisition-related
and integration expenses
|
18.2
|
|
|
18.2
|
|
Amortization of
intangibles
|
52.4
|
|
|
52.4
|
|
Income taxes related
to the above(1)
|
(19.8)
|
|
|
(19.8)
|
|
Non-GAAP net
income
|
$
|
138.9
|
|
|
$
|
143.9
|
|
|
|
|
|
Diluted
EPS(2)
|
$
|
1.71
|
|
|
$
|
1.81
|
|
Acquisition-related
and integration expenses
|
0.35
|
|
|
0.35
|
|
Amortization of
intangibles
|
1.02
|
|
|
1.02
|
|
Income taxes related
to the above(1)
|
(0.39)
|
|
|
(0.39)
|
|
Non-GAAP Diluted
EPS
|
$
|
2.70
|
|
|
$
|
2.80
|
|
|
(1) The tax
effect of the non-GAAP adjustments was calculated using the
effective year-to date tax rate during the respective fiscal years.
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.
|
|
(2) Diluted
EPS for all periods presented 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
months and the years ended November 30, 2018 and 2017. Net
income allocable to participating securities is estimated to be
approximately 0.9% of Net income for the three months ending
February 28, 2019.
|
SYNNEX
Corporation
|
Calculation of
Financial Metrics
|
(currency in
thousands)
|
(Amounts may not
add or compute due to rounding)
|
|
Return on Invested
Capital ("ROIC")
|
|
|
November 30,
2018
|
|
November 30,
2017
|
ROIC
|
|
|
|
Operating income
(Trailing fiscal four quarters)
|
$
|
551,036
|
|
|
$
|
508,965
|
|
Income taxes on
operating income(1)
|
(188,895)
|
|
|
(179,105)
|
|
Operating income
after taxes
|
$
|
362,141
|
|
|
$
|
329,860
|
|
|
|
|
|
Total borrowings,
excluding book overdraft (last five quarters average)
|
$
|
2,164,694
|
|
|
$
|
1,208,330
|
|
Total equity (last
five quarters average)
|
2,534,008
|
|
|
2,126,159
|
|
Less: U.S. cash and
cash equivalents (last five quarters average)
|
(134,377)
|
|
|
(132,881)
|
|
Total invested
capital
|
$
|
4,564,325
|
|
|
$
|
3,201,608
|
|
|
|
|
|
ROIC
|
7.9
|
%
|
|
10.3
|
%
|
|
|
|
|
Adjusted
ROIC
|
|
|
|
Non-GAAP operating
income (Trailing fiscal four quarters)
|
$
|
720,500
|
|
|
$
|
592,927
|
|
Income taxes on
Non-GAAP operating income(1)
|
(194,823)
|
|
|
(208,652)
|
|
Non-GAAP operating
income after taxes
|
$
|
525,677
|
|
|
$
|
384,275
|
|
|
|
|
|
Total invested
capital
|
$
|
4,564,325
|
|
|
$
|
3,201,608
|
|
Tax effected impact
of cumulative non-GAAP adjustments (last five quarters
average)
|
314,343
|
|
|
208,615
|
|
Total Non-GAAP
invested capital
|
$
|
4,878,668
|
|
|
$
|
3,410,223
|
|
|
|
|
|
Adjusted
ROIC
|
10.8
|
%
|
|
11.3
|
%
|
|
(1) Income
taxes on GAAP and non-GAAP operating income was calculated using
the effective GAAP and non-GAAP tax rates during the quarters
included in the respective trailing four quarter
periods.
|
Debt to
Capitalization
|
|
|
|
November 30,
2018
|
|
November 30,
2017
|
Total borrowings,
excluding book overdraft
|
(a)
|
$
|
3,451,006
|
|
|
$
|
1,937,253
|
|
Total
equity
|
(b)
|
3,432,068
|
|
|
2,283,695
|
|
Debt to
capitalization
|
(a)/((a)+(b))
|
50.1
|
%
|
|
45.9
|
%
|
SYNNEX
Corporation
|
Calculation of
Financial Metrics
|
(currency in
thousands)
|
(Amounts may not
add or compute due to rounding)
|
(continued)
|
|
Cash Conversion
Cycle
|
|
|
Three Months
Ended
|
|
|
November 30,
2018
|
|
November 30,
2017
|
Days sales
outstanding
|
|
|
|
|
Revenue (products and
services)
|
(a)
|
$
|
5,622,201
|
|
|
$
|
5,311,877
|
|
Accounts receivable,
including receivable from related parties
|
(b)
|
3,855,496
|
|
|
2,846,448
|
|
Days sales
outstanding
|
(c) = (b)/((a)/the
number of
days during the period)
|
62
|
|
|
49
|
|
|
|
|
|
|
Days inventory
outstanding
|
|
|
|
|
Cost of revenue
(products and services)
|
(d)
|
$
|
4,970,717
|
|
|
$
|
4,849,909
|
|
Inventories
|
(e)
|
2,518,319
|
|
|
2,162,626
|
|
Days inventory
outstanding
|
(f) = (e)/((d)/the
number of
days during the period)
|
46
|
|
|
41
|
|
|
|
|
|
|
Days payable
outstanding
|
|
|
|
|
Cost of revenue
(products and services)
|
(g)
|
$
|
4,970,717
|
|
|
$
|
4,849,909
|
|
Accounts payable,
including payable to related parties
|
(h)
|
3,048,102
|
|
|
2,643,608
|
|
Days payable
outstanding
|
(i) = (h)/((g)/the
number of
days during the period)
|
56
|
|
|
50
|
|
|
|
|
|
|
Cash conversion
cycle
|
(j) =
(c)+(f)-(i)
|
52
|
|
|
40
|
|
Investor Contact:
Marshall Witt
SYNNEX Corporation
marshallwitt@synnex.com
Telephone: (510) 668-3837
View original content to download
multimedia:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2018-fourth-quarter-and-full-year-results-300776556.html
SOURCE SYNNEX Corporation