SYNNEX Corporation

synnex
Jan 09,2018

SYNNEX Corporation Reports Fiscal 2017 Fourth Quarter and Full Year Results

Company Reports Record Quarterly and Annual Revenue, Operating and Net Income
Increased Quarterly Cash Dividend by 17% to $0.35 Per Share

FREMONT, Calif., Jan. 9, 2018 /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, 2017.

 

Q4 FY17

Q4 FY16

Net change

Revenue ($M)

$5,312

$3,887

36.7%

Operating income ($M)

$159.9

$130.6

22.4%

Non-GAAP operating income ($M)(1)

$192.9

$156.1

23.6%

Operating margin

3.01%

3.36%

(35) bps

Non-GAAP operating margin(1)

3.63%

4.02%

(39) bps

Net income attributable to SYNNEX Corporation ($M)

$91.1

$85.3

6.7%

Non-GAAP net income attributable to SYNNEX Corporation ($M)(1)

$112.4

$102.9

9.2%

Diluted EPS

$2.26

$2.13

6.1%

Non-GAAP Diluted EPS(1)

$2.79

$2.57

8.6%

 

(1) Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangible assets and the related tax effects thereon. A reconciliation of GAAP to Non-GAAP financial information is presented in the supplementary information section at the end of this press release.

"Our record financial performance continued in the fourth quarter, driven by strong demand in both segments.  The organic investments and strategic acquisitions we made throughout 2017 enhanced our capabilities and offerings and enabled us to grow market share," said Kevin Murai, President and Chief Executive Officer.

Fiscal 2017 Fourth Quarter Highlights:

  • Technology Solutions: Revenue was $4.8 billion, up 41.0% from the prior fiscal year quarter. Adjusting for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 22.0% over the prior year. Technology Solutions generated operating income of $112.2 million, or 2.35% of segment revenue, compared to $92.6 million, or 2.73% of segment revenue, in the fiscal fourth quarter of 2016. Non-GAAP operating income was $128.2 million, or 2.68% of segment revenue, in the fiscal fourth quarter of 2017, compared to $93.3 million, or 2.75% of segment revenue, in the fiscal fourth quarter of 2016.
  • Concentrix: Revenue was $534.4 million, an increase of 6.8% over the fiscal fourth quarter of the prior year. Adjusting for the translation effect of foreign currencies, Concentrix revenue increased by 5.8% over the prior year. Operating income was $47.6 million, or 8.91% of segment revenue, compared to $38.0 million, or 7.60% of segment revenue in the prior fiscal year quarter. Non-GAAP operating income was $64.7 million, or 12.11% of segment revenue, in the fiscal fourth quarter of 2017, compared to $62.8 million, or 12.55% of segment revenue, in the fiscal fourth quarter of 2016.
  • The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 10.3% consistent with the prior fiscal year fourth quarter. The adjusted trailing fiscal four quarters ROIC was 11.3%.
  • The debt to capitalization ratio was 45.9%, up from 32.7% in the prior fiscal year fourth quarter, primarily as a result of the Westcon-Comstor acquisition.
  • Depreciation and amortization were $21.6 million and $29.9 million, respectively.
  • Cash generated from operations was approximately $250 million for the quarter.

 

 

FY17

FY16

Net change

Revenue ($M)

$17,046

$14,062

21.2%

Operating income ($M)

$509.0

$379.6

34.1%

Non-GAAP operating income ($M)(1)

$592.9

$449.7

31.8%

Operating margin

2.99%

2.70%

29 bps

Non-GAAP operating margin(1)

3.48%

3.20%

28 bps

Net income attributable to SYNNEX Corporation ($M)

$301.2

$234.9

28.2%

Non-GAAP net income attributable to SYNNEX Corporation ($M)(1)

$355.6

$281.2

26.4%

Diluted EPS

$7.51

$5.88

27.7%

Non-GAAP Diluted EPS(1)

$8.86

$7.04

25.9%

 

(1) Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon. A reconciliation of GAAP to Non-GAAP financial information is presented in the supplementary information section at the end of this press release.

Fiscal 2017 Highlights:

  • Technology Solutions: Revenue was $15.1 billion, up 20.7% from the prior fiscal year. Adjusting for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 15.5% over the prior fiscal year. Technology Solutions operating income was $394.3 million, or 2.62% of segment revenue compared to $315.5 million, or 2.53% of segment revenue, in fiscal 2016. Non-GAAP operating income was $413.0 million, or 2.74% of segment revenue, in fiscal 2017, compared to $318.1 million, or 2.55% of segment revenue, in fiscal 2016.
  • Concentrix: Revenue was $2.0 billion, an increase of 25.3% over the prior fiscal year. Adjusting for the translation effect of foreign currencies, Concentrix revenue grew 25.5% over the prior fiscal year. Operating income was $114.6 million, or 5.76% of segment revenue, compared to $63.9 million, or 4.02% of segment revenue in the prior fiscal year. Non-GAAP operating income was $179.9 million, or 9.04% of segment revenue, in fiscal 2017, compared to $131.4 million, or 8.27% of segment revenue, in fiscal 2016.
  • Depreciation and amortization were $80.7 million and $79.2 million, respectively.
  • Cash generated from operations was approximately $170 million for the year.

Fiscal 2018 First Quarter Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2018 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 $4.35 billion to $4.55 billion.
  • Net income is expected to be in the range of $64.0 million to $67.8 million and on a Non-GAAP basis, net income is expected to be in the range of $83.2 million to $87.0 million.
  • Diluted earnings per share is expected to be in the range of $1.58 to $1.68 and on a Non-GAAP basis, diluted earnings per share is expected to be in the range of $2.06 to $2.15.
  • After-tax amortization of intangibles is expected to be $19.2 million, or $0.48 per share.
  • The tax rate is expected to be in the range of 30% to 31%.

Dividend Announcement

SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.35 per common share. The dividend is payable on January 31, 2018 to stockholders of record as of the close of business on January 19, 2018. The SYNNEX Board of Directors will assess the dividend on an annual basis each January. In addition to the increased dividend, SYNNEX expects that the anticipated benefit associated with the 2017 US tax reform law will be utilized for business investment and debt reduction.

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 (800) 369-1162 in North America or (415) 228-5007 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 500 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 strategy 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 around customer engagement strategy, 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 attributable to SYNNEX Corporation, 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.

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, the 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, which 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 SYNNEX' expectations and outlook for the fiscal 2018 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 acquisition-related and integration expenses, currency impact, the frequency and occurrence of dividend declarations and assessments, the anticipated benefits of recent acquisitions, and the anticipated benefits of the non-GAAP financial measures, and anticipated tax savings due to the 2017 US tax reform law and use for dividends, business investment and debt reduction, 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 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, 2016 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 2018 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.

SNX-F

SYNNEX Corporation

Consolidated Balance Sheets

(currency in thousands)

(unaudited)

 
 

November 30,
2017

 

November 30,
2016

ASSETS

     

Current assets:

     

Cash and cash equivalents

$

550,688

   

$

380,717

 

Restricted cash

5,837

   

6,265

 

Short-term investments

5,475

   

5,109

 

Accounts receivable, net

2,846,371

   

1,756,494

 

Receivable from related parties

77

   

102

 

Inventories

2,162,626

   

1,741,734

 

Other current assets

168,704

   

104,609

 

Total current assets

5,739,778

   

3,995,030

 

Property and equipment, net

346,589

   

312,716

 

Goodwill

872,641

   

486,239

 

Intangible assets, net

583,051

   

298,550

 

Deferred tax assets

31,687

   

58,564

 

Other assets

124,780

   

64,182

 

Total assets

$

7,698,526

   

$

5,215,281

 
       

LIABILITIES AND EQUITY

     

Current liabilities:

     

Borrowings, current

$

805,471

   

$

362,889

 

Accounts payable

2,626,720

   

1,683,155

 

Payable to related parties

16,888

   

30,679

 

Accrued compensation and benefits

204,665

   

165,585

 

Other accrued liabilities

354,104

   

217,127

 

Income taxes payable

33,359

   

17,097

 

Total current liabilities

4,041,207

   

2,476,532

 

Long-term borrowings

1,136,089

   

601,095

 

Other long-term liabilities

124,008

   

103,217

 

Deferred tax liabilities

113,527

   

58,639

 

Total liabilities

5,414,831

   

3,239,483

 

SYNNEX Corporation stockholders' equity:

     

Preferred stock

   

 

Common stock

41

   

41

 

Additional paid-in capital

467,948

   

440,713

 

Treasury stock

(77,133)

   

(67,262)

 

Accumulated other comprehensive income (loss)

(61,919)

   

(93,116)

 

Retained earnings

1,954,758

   

1,695,400

 

Total SYNNEX Corporation stockholders' equity

2,283,695

   

1,975,776

 

Noncontrolling interest

   

22

 

Total equity

2,283,695

   

1,975,798

 

Total liabilities and equity

$

7,698,526

   

$

5,215,281

 

 

SYNNEX Corporation

Consolidated Statements of Operations

(currency and share amounts in thousands, except for per share amounts)

(unaudited)

 
 

Three Months Ended

 

Fiscal Year Ended

 

November 30,
2017

 

November 30,
2016

 

November 30,
2017

 

November 30,
2016

Revenue:

             

Products

$

4,781,408

   

$

3,390,665

   

$

15,070,871

   

$

12,490,427

 

Services

530,469

   

496,237

   

1,974,829

   

1,571,410

 

Total revenue

5,311,877

   

3,886,902

   

17,045,700

   

14,061,837

 

Cost of revenue:

             

Products

(4,525,904)

   

(3,206,961)

   

(14,262,094)

   

(11,815,479)

 

Services

(324,005)

   

(301,155)

   

(1,232,666)

   

(963,393)

 

Gross profit

461,968

   

378,786

   

1,550,940

   

1,282,965

 

Selling, general and administrative expenses

(302,108)

   

(248,144)

   

(1,041,975)

   

(903,369)

 

Operating income

159,860

   

130,642

   

508,965

   

379,596

 

Interest expense and finance charges, net

(18,459)

   

(8,748)

   

(45,357)

   

(28,993)

 

Other income (expense), net

(202)

   

856

   

1,123

   

5,461

 

Income before income taxes

141,199

   

122,750

   

464,731

   

356,064

 

Provision for income taxes

(50,126)

   

(37,440)

   

(163,558)

   

(121,059)

 

Net income

91,073

   

85,310

   

301,173

   

235,005

 

Net (income) loss attributable to noncontrolling interest

   

8

   

   

(59)

 

Net income attributable to SYNNEX Corporation

$

91,073

   

$

85,318

   

$

301,173

   

$

234,946

 

Earnings attributable to SYNNEX Corporation per common share:

             

Basic

$

2.28

   

$

2.14

   

$

7.54

   

$

5.91

 

Diluted

$

2.26

   

$

2.13

   

$

7.51

   

$

5.88

 

Weighted-average common shares outstanding:

             

Basic

39,635

   

39,431

   

39,556

   

39,321

 

Diluted

39,867

   

39,647

   

39,758

   

39,530

 

Cash dividends declared per share

$

0.30

   

$

0.25

   

$

1.05

   

$

0.85

 

 

SYNNEX Corporation

Segment Information

(currency in thousands)

(unaudited)

 
 

Three Months Ended

 

Fiscal Year Ended

 

November 30,
2017

 

November 30,
2016

 

November 30,
2017

 

November 30,
2016

Revenue:

             

  Technology Solutions

$

4,781,491

   

$

3,390,749

   

$

15,071,185

   

$

12,490,718

 

  Concentrix

534,363

   

500,404

   

1,990,180

   

1,587,736

 

  Inter-segment elimination

(3,977)

   

(4,251)

   

(15,665)

   

(16,617)

 

  Consolidated

$

5,311,877

   

$

3,886,902

   

$

17,045,700

   

$

14,061,837

 
               

Operating income:

             

  Technology Solutions

$

112,226

   

$

92,589

   

$

394,320

   

$

315,485

 

  Concentrix

47,634

   

38,022

   

114,623

   

63,877

 

  Inter-segment elimination

   

31

   

22

   

234

 

  Consolidated

$

159,860

   

$

130,642

   

$

508,965

   

$

379,596

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

 
 

Three Months Ended

 

Fiscal Year Ended

 

November 30,
2017

 

November 30,
2016

 

November 30,
2017

 

November 30,
2016

Revenue in Constant Currency

             

Consolidated

             

Revenue

$

5,311,877

   

$

3,886,902

   

$

17,045,700

   

$

14,061,837

 

Foreign currency translation

(13,906)

       

(4,609)

     

Revenue in constant currency

$

5,297,971

   

$

3,886,902

   

$

17,041,091

   

$

14,061,837

 
               

Technology Solutions

             

Segment revenue

$

4,781,491

   

$

3,390,749

   

$

15,071,185

   

$

12,490,718

 

Foreign currency translation

(8,893)

       

(6,588)

     

Revenue in constant currency

$

4,772,598

   

$

3,390,749

   

$

15,064,597

   

$

12,490,718

 
               

Concentrix

             

Segment revenue

$

534,363

   

$

500,404

   

$

1,990,180

   

$

1,587,736

 

Foreign currency translation

(5,013)

       

1,979

     

Revenue in constant currency

$

529,350

   

$

500,404

   

$

1,992,159

   

$

1,587,736

 
 
 
 

Three Months Ended

 

Fiscal Year Ended

 

November 30,
2017

 

November 30,
2016

 

November 30,
2017

 

November 30,
2016

Selling, general and administrative expenses

             

Consolidated

             

GAAP selling, general and administrative expenses

$

302,108

   

$

248,144

   

$

1,041,975

   

$

903,369

 

Acquisition-related and integration expenses

3,144

   

6,465

   

4,781

   

10,393

 

Restructuring costs

   

   

   

4,255

 

Amortization of intangibles

29,516

   

18,504

   

77,500

   

54,250

 

Adjusted selling, general and administrative expenses

$

269,448

   

$

223,175

   

$

959,694

   

$

834,471

 
               

Technology Solutions

             

GAAP selling, general and administrative expenses

$

143,356

   

$

91,200

   

$

414,763

   

$

359,754

 

Acquisition-related and integration expenses

3,019

   

   

3,724

   

 

Amortization of intangibles

12,968

   

670

   

14,929

   

2,657

 

Adjusted selling, general and administrative expenses

$

127,369

   

$

90,530

   

$

396,110

   

$

357,097

 
               

Concentrix

             

GAAP selling, general and administrative expenses

$

160,398

   

$

159,007

   

$

634,530

   

$

551,570

 

Acquisition-related and integration expenses

125

   

6,465

   

1,057

   

10,393

 

Restructuring costs

   

   

   

4,255

 

Amortization of intangibles

16,548

   

17,834

   

62,571

   

51,593

 

Adjusted selling, general and administrative expenses

$

143,725

   

$

134,708

   

$

570,902

   

$

485,329

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

(continued)

 
 

Three Months Ended

 

Fiscal Year Ended

 

November 30,
2017

 

November 30,
2016

 

November 30,
2017

 

November 30,
2016

Operating income and Operating margin

             

Consolidated

             

Revenue

$

5,311,877

   

$

3,886,902

   

$

17,045,700

   

$

14,061,837

 
               

GAAP operating income

$

159,860

   

$

130,642

   

$

508,965

   

$

379,596

 

Acquisition-related and integration expenses

3,144

   

6,465

   

4,781

   

10,393

 

Restructuring costs

   

   

   

4,255

 

Amortization of intangibles

29,937

   

18,981

   

79,181

   

55,490

 

Non-GAAP operating income

$

192,941

   

$

156,088

   

$

592,927

   

$

449,734

 

Depreciation

21,647

   

19,254

   

80,705

   

65,803

 

Adjusted EBITDA

$

214,588

   

$

175,342

   

$

673,632

   

$

515,537

 
               

GAAP operating margin

3.01

%

 

3.36

%

 

2.99

%

 

2.70

%

Non-GAAP operating margin

3.63

%

 

4.02

%

 

3.48

%

 

3.20

%

               

Technology Solutions

             

Segment revenue

$

4,781,491

   

$

3,390,749

   

$

15,071,185

   

$

12,490,718

 
               

GAAP operating income

$

112,226

   

$

92,589

   

$

394,320

   

$

315,485

 

Acquisition-related and integration expenses

3,019

   

   

3,724

   

 

Amortization of intangibles

12,968

   

670

   

14,929

   

2,657

 

Non-GAAP operating income

$

128,213

   

$

93,259

   

$

412,973

   

$

318,142

 

Depreciation

4,703

   

3,489

   

15,111

   

13,935

 

Adjusted EBITDA

$

132,916

   

$

96,748

   

$

428,084

   

$

332,077

 
               

GAAP operating margin

2.35

%

 

2.73

%

 

2.62

%

 

2.53

%

Non-GAAP operating margin

2.68

%

 

2.75

%

 

2.74

%

 

2.55

%

               

Concentrix

             

Segment revenue

$

534,363

   

$

500,404

   

$

1,990,180

   

$

1,587,736

 
               

GAAP operating income

$

47,634

   

$

38,022

   

$

114,623

   

$

63,877

 

Acquisition-related and integration expenses

125

   

6,465

   

1,057

   

10,393

 

Restructuring costs

   

   

   

4,255

 

Amortization of intangibles

16,969

   

18,311

   

64,252

   

52,833

 

Non-GAAP operating income

$

64,728

   

$

62,798

   

$

179,932

   

$

131,358

 

Depreciation

16,944

   

15,796

   

65,617

   

52,102

 

Adjusted EBITDA

$

81,672

   

$

78,594

   

$

245,549

   

$

183,460

 
               

GAAP operating margin

8.91

%

 

7.60

%

 

5.76

%

 

4.02

%

Non-GAAP operating margin

12.11

%

 

12.55

%

 

9.04

%

 

8.27

%

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency and share amounts in thousands, except for per share amounts)

(continued)

 
 

Three Months Ended

 

Fiscal Year Ended

 

November 30,
2017

 

November 30,
2016

 

November 30,
2017

 

November 30,
2016

Net income

             

Net income attributable to SYNNEX Corporation

$

91,073

   

$

85,318

   

$

301,173

   

$

234,946

 

Acquisition-related and integration expenses

3,144

   

6,465

   

4,781

   

10,393

 

Restructuring costs

   

   

   

4,255

 

Amortization of intangibles

29,937

   

18,981

   

79,181

   

55,490

 

Income taxes related to the above(1)

(11,711)

   

(7,829)

   

(29,550)

   

(23,846)

 

Non-GAAP net income attributable to SYNNEX Corporation

$

112,443

   

$

102,935

   

$

355,585

   

$

281,238

 
               

Diluted earnings per common share ("EPS")(2)

             

Net income attributable to SYNNEX Corporation

$

91,073

   

$

85,318

   

$

301,173

   

$

234,946

 

Less: net income allocated to participating securities

(836)

   

(834)

   

(2,778)

   

(2,408)

 

Net income attributable to SYNNEX Corporation common stockholders

90,237

   

84,484

   

298,395

   

232,538

 

Acquisition-related and integration expenses attributable to SYNNEX Corporation common stockholders

3,115

   

6,405

   

4,737

   

10,297

 

Restructuring costs attributable to SYNNEX Corporation common stockholders

   

   

   

4,217

 

Amortization of intangibles attributable to SYNNEX Corporation common stockholders

29,661

   

18,787

   

78,448

   

54,891

 

Income taxes related to the above attributable to SYNNEX Corporation common stockholders(1)

(11,603)

   

(7,749)

   

(29,277)

   

(23,590)

 

Non-GAAP net income attributable to SYNNEX Corporation common stockholders

$

111,410

   

$

101,927

   

$

352,303

   

$

278,353

 
               

Weighted-average number of common shares - diluted:

39,867

   

39,647

   

39,758

   

39,530

 
               

Diluted EPS(2)

$

2.26

   

$

2.13

   

$

7.51

   

$

5.88

 

Acquisition-related and integration expenses

0.08

   

0.16

   

0.12

   

0.26

 

Restructuring costs

   

   

   

0.11

 

Amortization of intangibles

0.74

   

0.47

   

1.97

   

1.39

 

Income taxes related to the above(1)

(0.29)

   

(0.20)

   

(0.74)

   

(0.60)

 

Non-GAAP Diluted EPS(3)

$

2.79

   

$

2.57

   

$

8.86

   

$

7.04

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(amounts in millions, except for per share amounts)

(continued)

 
 

Forecast

 

Three Months Ending February 28, 2018

 

Low

 

High

Net income

     

Net income attributable to SYNNEX Corporation

$

64.0

   

$

67.8

 

Amortization of intangibles

27.7

   

27.7

 

Income taxes related to the above(1)

(8.5)

   

(8.5)

 

Non-GAAP net income attributable to SYNNEX Corporation

$

83.2

   

$

87.0

 
       

Diluted EPS(2)

$

1.58

   

$

1.68

 

Amortization of intangibles

0.69

   

0.69

 

Income taxes related to the above(1)

(0.21)

   

(0.21)

 

Non-GAAP Diluted EPS(3)

$

2.06

   

$

2.15

 
 

(1) The tax effect of the non-GAAP adjustments was calculated using the effective year-to-date tax rate during the respective periods.

 

(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 the Net income attributable to SYNNEX Corporation for both the three months and the year ended November 30, 2017, and approximately 1.0% for both the three months and the year ended November 30, 2016. Net income allocated to participating securities is approximately 0.9% of the Net income attributable to SYNNEX Corporation for the three months ending February 28, 2018.

 

(3) The sum of the components of Non-GAAP Diluted EPS may not agree to totals, as presented, due to rounding.

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

 

Return on Invested Capital ("ROIC")

 
 

November 30, 2017

 

November 30, 2016

ROIC

     

Operating income (Trailing fiscal four quarters)

$

508,965

   

$

379,596

 

Income taxes on operating income(1)

(179,105)

   

(129,042)

 

Operating income after taxes

329,860

   

250,554

 
       

Total borrowings, excluding book overdraft (last five quarters average)

$

1,208,330

   

$

780,972

 

Total equity (last five quarters average)

2,126,159

   

1,879,777

 

Less: U.S. cash and cash equivalents (last five quarters average)

(132,881)

   

(229,940)

 

Total invested capital

3,201,608

   

2,430,809

 
       

ROIC

10.3

%

 

10.3

%

       

Adjusted ROIC

     

Non-GAAP operating income (Trailing fiscal four quarters)

$

592,927

   

$

449,734

 

Income taxes on Non-GAAP operating income(1)

(208,652)

   

(152,846)

 

Non-GAAP operating income after taxes

384,275

   

296,888

 
       

Total invested capital

$

3,201,608

   

$

2,430,809

 

Tax effected impact of cumulative non-GAAP adjustments (last five quarters average)

208,615

   

158,550

 

Total Non-GAAP invested capital

3,410,223

   

2,589,358

 
       

Adjusted ROIC

11.3

%

 

11.5

%

 

(1) Income taxes on GAAP and non-GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods.

 
 

Debt to Capitalization

 
   

November 30, 2017

 

November 30, 2016

Total borrowings, excluding book overdraft

(a)

$

1,937,253

   

$

960,602

 

Total equity

(b)

2,283,695

   

1,975,798

 

Debt to capitalization

(a)/((a)+(b))

45.9

%

 

32.7

%

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

(continued)

 

Cash Conversion Cycle

 
   

Three Months Ended

   

November 30, 2017

 

November 30, 2016

Days sales outstanding

       

Revenue (products and services)

(a)

$

5,311,877

   

$

3,886,902

 

Accounts receivable, including receivable from related parties

(b)

2,846,448

   

1,756,596

 

Days sales outstanding

(c) = (b)/((a)/the number of days during the period)

49

   

41

 
         

Days inventory outstanding

       

Cost of revenue (products and services)

(d)

$

4,849,909

   

$

3,508,116

 

Inventories

(e)

2,162,626

   

1,741,734

 

Days inventory outstanding

(f) = (e)/((d)/the number of days during the period)

41

   

45

 
         

Days payable outstanding

       

Cost of revenue (products and services)

(g)

$

4,849,909

   

$

3,508,116

 

Accounts payable, including payable to related parties

(h)

2,643,608

   

1,713,834

 

Days payable outstanding

(i) = (h)/((g)/the number of days during the period)

50

   

44

 
         

Cash conversion cycle

(j) = (c)+(f)-(i)

40

   

42

 

 

Cision View original content:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2017-fourth-quarter-and-full-year-results-300580299.html

SOURCE SYNNEX Corporation

Investor Contact: Mike Vaishnav, Senior Vice President Corporate Finance & Treasurer, SYNNEX Corporation, Telephone: (510) 668-3533

SYNNEX Corporation