SYNNEX Corporation
Jun 22, 2017

SYNNEX Corporation Reports Fiscal 2017 Second Quarter Results

FREMONT, Calif., June 22, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal second quarter ended May 31, 2017.

 

Q2 FY17

Q2 FY16

Net change

Revenue ($M)

$3,936

$3,379

16.5%

Operating income ($M)

$125.1

$75.3

66.2%

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

$141.2

$91.7

54.0%

Operating margin

3.18%

2.23%

95 bps

Non-GAAP operating margin(1)

3.59%

2.71%

88 bps

Net income attributable to SYNNEX Corporation ($M)

$73.1

$44.4

64.9%

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

$83.2

$54.8

51.9%

Diluted EPS

$1.83

$1.11

64.9%

Non-GAAP Diluted EPS(1)

$2.08

$1.37

51.8%

 

(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.

"Our record Q2 results reflect solid execution by the SYNNEX team," said Kevin Murai, President and Chief Executive Officer, SYNNEX Corporation. "Both our Technology Solutions and Concentrix business segments exceeded our expectations in revenue and margin."

Fiscal 2017 Second Quarter Highlights:

  • Technology Solutions: Revenue was $3.5 billion, up 13.5% from the prior fiscal year quarter. Adjusting for the translation effect of foreign currencies, the Technology Solutions business increased by 14.0% compared with last year. Technology Solutions generated operating income of $101.7 million, or 2.94% of segment revenue, compared with $75.8 million, or 2.49% of segment revenue, in the fiscal second quarter of 2016.
  • Concentrix: Revenue was $481.7 million, an increase of 43.4% from the $335.9 million in revenue generated during the second quarter of last year. Adjusting for the translation effect of currencies, Concentrix revenue increased 44.6% compared with last year. Operating income was $23.4 million, or 4.86% of Concentrix revenue, compared with an operating loss of $0.6 million in the prior fiscal year quarter. Non-GAAP operating income was $38.8 million, or 8.06% of segment revenue, for fiscal second quarter of 2017, compared with $15.1 million, or 4.50% of segment revenue, in the fiscal second quarter of 2016.
  • The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 11.0% compared with 9.4% in the prior year fiscal second quarter. The adjusted trailing fiscal four quarters ROIC was 12.0%.
  • The debt to capitalization ratio was 33.9%, up from 27.3% in the prior fiscal year second quarter.
  • Depreciation and amortization were $19.4 million and $16.1 million, respectively.
  • Cash generated from operations was approximately $40 million for the quarter.

Fiscal 2017 Third Quarter Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2017 third quarter. Non-GAAP financial measures exclude the impact of the amortization of intangibles and the related tax effect thereon. These statements are forward-looking and actual results may differ materially.

  • Revenue is expected to be in the range of $3.90 billion to $4.10 billion.
  • Net income is expected to be in the range of $67.7 million to $70.7 million and on a Non-GAAP basis net income is expected to be in the range of $78.1 million to $81.1 million.
  • Diluted earnings per share is expected to be in the range of $1.68 to $1.76 and on a Non-GAAP basis diluted earnings per share is expected to be in the range of $1.94 to $2.02.
  • After-tax amortization of intangibles is expected to be $10.4 million, or $0.26 per share.

Share Repurchase Announcement

SYNNEX announced today that its Board of Directors has approved an anti-dilution repurchase program of up to $300 million of its Common Stock over a period of up to three years effective July 1, 2017.  Any stock repurchases may be made through open market and privately negotiated transactions, at times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.

Dividend Announcement

SYNNEX announced today that its Board of Directors has declared a quarterly cash dividend of $0.25 per common share. The dividend will be payable on July 28, 2017 to stockholders of record as of the close of business on July 14, 2017.

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

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 local 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.

To supplement the financial results presented in accordance with GAAP, SYNNEX 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, non-GAAP diluted earnings per share and adjusted ROIC, 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.

These non-GAAP financial measures provide investors with an additional tool to evaluate operating results. Because 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.

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. SYNNEX management believes it is useful for the Company and investors to review, as applicable, both GAAP information and non-GAAP financial measures in order to assess the performance of SYNNEX' continuing businesses and for planning and forecasting in future periods. 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. The management of SYNNEX believes the 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. A reconciliation of SYNNEX' non-GAAP financial information to GAAP is set forth in the supplemental information table 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 2017 third quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, after-tax amortization of intangibles, currency impact, the anticipated amount, duration, method timing and other aspects of our stock repurchase program, the frequency and occurrence of dividend declarations, 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 timing of the close and estimated financial impact of the Westcon-Comstor transaction; 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 2017 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)

 
 

May 31,
2017

 

November 30,
2016

ASSETS

     

Current assets:

     

Cash and cash equivalents

$

305,566

   

$

380,717

 

Restricted cash

4,127

   

6,265

 

Short-term investments

5,287

   

5,109

 

Accounts receivable, net

1,787,381

   

1,756,494

 

Receivable from related parties

56

   

102

 

Inventories

2,112,590

   

1,741,734

 

Other current assets

110,502

   

104,609

 

Total current assets

4,325,509

   

3,995,030

 

Property and equipment, net

320,950

   

312,716

 

Goodwill

485,627

   

486,239

 

Intangible assets, net

266,532

   

298,550

 

Deferred tax assets

60,394

   

58,564

 

Other assets

69,910

   

64,182

 

Total assets

$

5,528,922

   

$

5,215,281

 
       

LIABILITIES AND EQUITY

     

Current liabilities:

     

Borrowings, current

$

510,717

   

$

362,889

 

Accounts payable

1,686,977

   

1,683,155

 

Payable to related parties

19,431

   

30,679

 

Accrued compensation and benefits

152,486

   

165,585

 

Other accrued liabilities

278,836

   

217,127

 

Income taxes payable

16,796

   

17,097

 

Total current liabilities

2,665,243

   

2,476,532

 

Long-term borrowings

579,032

   

601,095

 

Other long-term liabilities

109,321

   

103,217

 

Deferred tax liabilities

59,116

   

58,639

 

Total liabilities

3,412,712

   

3,239,483

 

SYNNEX Corporation stockholders' equity:

     

Preferred stock

   

 

Common stock

41

   

41

 

Additional paid-in capital

452,812

   

440,713

 

Treasury stock

(70,873)

   

(67,262)

 

Accumulated other comprehensive income (loss)

(76,210)

   

(93,116)

 

Retained earnings

1,810,440

   

1,695,400

 

Total SYNNEX Corporation stockholders' equity

2,116,210

   

1,975,776

 

Noncontrolling interest

   

22

 

Total equity

2,116,210

   

1,975,798

 

Total liabilities and equity

$

5,528,922

   

$

5,215,281

 

 

SYNNEX Corporation

Consolidated Statements of Operations

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

(unaudited)

 
 

Three Months Ended

 

Six Months Ended

 

May 31, 2017

 

May 31, 2016

 

May 31, 2017

 

May 31, 2016

Revenue:

             

Products

$

3,458,243

   

$

3,047,638

   

$

6,504,864

   

$

5,832,475

 

Services

478,025

   

331,861

   

952,273

   

672,646

 

Total revenue

3,936,268

   

3,379,499

   

7,457,137

   

6,505,121

 

Cost of revenue:

             

Products

(3,265,630)

   

(2,880,859)

   

(6,146,183)

   

(5,511,989)

 

Services

(298,393)

   

(204,610)

   

(596,926)

   

(414,910)

 

Gross profit

372,245

   

294,030

   

714,028

   

578,222

 

Selling, general and administrative expenses

(247,115)

   

(218,724)

   

(487,139)

   

(427,290)

 

Operating income

125,130

   

75,306

   

226,889

   

150,932

 

Interest expense and finance charges, net

(8,962)

   

(6,512)

   

(17,144)

   

(12,728)

 

Other income (expense), net

(206)

   

949

   

(529)

   

4,983

 

Income before income taxes

115,962

   

69,743

   

209,216

   

143,187

 

Provision for income taxes

(42,814)

   

(25,386)

   

(74,279)

   

(52,193)

 

Net income

73,148

   

44,357

   

134,937

   

90,994

 

Net (income) loss attributable to noncontrolling interest

   

5

   

   

(70)

 

Net income attributable to SYNNEX Corporation

$

73,148

   

$

44,362

   

$

134,937

   

$

90,924

 

Earnings per share attributable to SYNNEX Corporation:

             

Basic

$

1.83

   

$

1.12

   

$

3.38

   

$

2.29

 

Diluted

$

1.83

   

$

1.11

   

$

3.37

   

$

2.28

 

Weighted-average common shares outstanding:

             

Basic

39,533

   

39,283

   

39,513

   

39,254

 

Diluted

39,711

   

39,477

   

39,708

   

39,470

 

Cash dividends declared per share

$

0.25

   

$

0.20

   

$

0.50

   

$

0.40

 

 

SYNNEX Corporation

Segment Information

(currency in thousands)

(unaudited)

 
 

Three Months Ended

 

Six Months Ended

 

May 31, 2017

 

May 31, 2016

 

May 31, 2017

 

May 31, 2016

Revenue:

             

  Technology Solutions

$

3,458,320

   

$

3,047,708

   

$

6,505,016

   

$

5,832,615

 

  Concentrix

481,679

   

335,925

   

959,843

   

680,617

 

  Inter-segment elimination

(3,731)

   

(4,134)

   

(7,722)

   

(8,111)

 

  Consolidated

$

3,936,268

   

$

3,379,499

   

$

7,457,137

   

$

6,505,121

 
               

Operating income (loss):

             

  Technology Solutions

$

101,705

   

$

75,815

   

$

182,126

   

$

143,486

 

  Concentrix

23,425

   

(570)

   

44,741

   

7,291

 

  Inter-segment elimination

   

61

   

22

   

155

 

  Consolidated

$

125,130

   

$

75,306

   

$

226,889

   

$

150,932

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

 
 

Three Months Ended

 

Six Months Ended

 

May 31, 2017

 

May 31, 2016

 

May 31, 2017

 

May 31, 2016

Revenue in Constant Currency

             

Consolidated

             

Revenue

$

3,936,268

   

$

3,379,499

   

$

7,457,137

   

$

6,505,121

 

Foreign currency translation

19,169

       

166

     

Revenue in constant currency

$

3,955,437

   

$

3,379,499

   

$

7,457,303

   

$

6,505,121

 
               

Technology Solutions

             

Revenue

$

3,458,320

   

$

3,047,708

   

$

6,505,016

   

$

5,832,615

 

Foreign currency translation

15,054

       

(6,522)

     

Revenue in constant currency

$

3,473,374

   

$

3,047,708

   

$

6,498,494

   

$

5,832,615

 
               

Concentrix

             

Revenue

$

481,679

   

$

335,925

   

$

959,843

   

$

680,617

 

Foreign currency translation

4,115

       

6,688

     

Revenue in constant currency

$

485,794

   

$

335,925

   

$

966,531

   

$

680,617

 
       
       
 

Three Months Ended

 

Six Months Ended

 

May 31, 2017

 

May 31, 2016

 

May 31, 2017

 

May 31, 2016

Selling, general and administrative expenses

             

Consolidated

             

GAAP selling, general and administrative expenses

$

247,115

   

$

218,724

   

$

487,139

   

$

427,290

 

Acquisition-related and integration expenses

   

568

   

611

   

1,570

 

Restructuring costs

   

3,997

   

   

3,997

 

Amortization of intangibles

15,649

   

11,362

   

31,716

   

22,750

 

Adjusted selling, general and administrative expenses

$

231,466

   

$

202,797

   

$

454,812

   

$

398,973

 
               

Technology Solutions

             

GAAP selling, general and administrative expenses

$

90,983

   

$

91,034

   

$

176,705

   

$

177,140

 

Amortization of intangibles

651

   

662

   

1,305

   

1,313

 

Adjusted selling, general and administrative expenses

$

90,332

   

$

90,372

   

$

175,400

   

$

175,827

 
               

Concentrix

             

GAAP selling, general and administrative expenses

$

158,034

   

$

129,637

   

$

314,404

   

$

253,959

 

Acquisition-related and integration expenses

   

568

   

611

   

1,570

 

Restructuring costs

   

3,997

   

   

3,997

 

Amortization of intangibles

14,998

   

10,700

   

30,411

   

21,437

 

Adjusted selling, general and administrative expenses

$

143,036

   

$

114,372

   

$

283,382

   

$

226,955

 

 

 

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

 

Six Months Ended

 

May 31, 2017

 

May 31, 2016

 

May 31, 2017

 

May 31, 2016

Operating income and Operating margin

             

Consolidated

             

Revenue

$

3,936,268

   

$

3,379,499

   

$

7,457,137

   

$

6,505,121

 
               

GAAP operating income

$

125,130

   

$

75,306

   

$

226,889

   

$

150,932

 

Acquisition-related and integration expenses

   

568

   

611

   

1,570

 

Restructuring costs

   

3,997

   

   

3,997

 

Amortization of intangibles

16,069

   

11,794

   

32,556

   

23,498

 

Non-GAAP operating income

$

141,199

   

$

91,665

   

$

260,056

   

$

179,997

 

Depreciation

19,413

   

16,700

   

38,873

   

31,174

 

Adjusted EBITDA

$

160,612

   

$

108,365

   

$

298,929

   

$

211,171

 
               

GAAP operating margin

3.18

%

 

2.23

%

 

3.04

%

 

2.32

%

Non-GAAP operating margin

3.59

%

 

2.71

%

 

3.49

%

 

2.77

%

               

Technology Solutions

             

Revenue

$

3,458,320

   

$

3,047,708

   

$

6,505,016

   

$

5,832,615

 
               

GAAP operating income

$

101,705

   

$

75,815

   

$

182,126

   

$

143,486

 

Amortization of intangibles

651

   

662

   

1,305

   

1,313

 

Non-GAAP operating income

$

102,356

   

$

76,477

   

$

183,431

   

$

144,799

 

Depreciation

3,402

   

3,575

   

6,878

   

6,888

 

Adjusted EBITDA

$

105,758

   

$

80,052

   

$

190,309

   

$

151,687

 
               

GAAP operating margin

2.94

%

 

2.49

%

 

2.80

%

 

2.46

%

Non-GAAP operating margin

2.96

%

 

2.51

%

 

2.82

%

 

2.48

%

               

Concentrix

             

Revenue

$

481,679

   

$

335,925

   

$

959,843

   

$

680,617

 
               

GAAP operating income (loss)

$

23,425

   

$

(570)

   

$

44,741

   

$

7,291

 

Acquisition-related and integration expenses

   

568

   

611

   

1,570

 

Restructuring costs

   

3,997

   

   

3,997

 

Amortization of intangibles

15,418

   

11,132

   

31,251

   

22,185

 

Non-GAAP operating income

$

38,843

   

$

15,127

   

$

76,603

   

$

35,043

 

Depreciation

16,011

   

13,185

   

32,018

   

24,440

 

Adjusted EBITDA

$

54,854

   

$

28,312

   

$

108,621

   

$

59,483

 
               

GAAP operating margin

4.86

%

 

(0.17)

%

 

4.66

%

 

1.07

%

Non-GAAP operating margin

8.06

%

 

4.50

%

 

7.98

%

 

5.15

%

 

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

 

Six Months Ended

 

May 31, 2017

 

May 31, 2016

 

May 31, 2017

 

May 31, 2016

Net income

             

Net income attributable to SYNNEX Corporation

$

73,148

   

$

44,362

   

$

134,937

   

$

90,924

 

Acquisition-related and integration expenses

   

568

   

611

   

1,570

 

Restructuring costs

   

3,997

   

   

3,997

 

Amortization of intangibles

16,069

   

11,794

   

32,556

   

23,498

 

Income taxes related to the above(1)

(6,006)

   

(5,956)

   

(11,775)

   

(10,594)

 

Non-GAAP net income attributable to SYNNEX Corporation

$

83,211

   

$

54,765

   

$

156,329

   

$

109,395

 
               

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

             

Net income attributable to SYNNEX Corporation

$

73,148

   

$

44,362

   

$

134,937

   

$

90,924

 

Less: net income allocated to participating securities

(672)

   

(466)

   

(1,250)

   

(965)

 

Net income attributable to SYNNEX Corporation common stockholders

72,476

   

43,896

   

133,687

   

89,959

 

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

   

564

   

605

   

1,557

 

Restructuring costs attributable to SYNNEX Corporation common stockholders

   

3,957

   

   

3,959

 

Amortization of intangibles attributable to SYNNEX Corporation common stockholders

15,921

   

11,665

   

32,254

   

23,236

 

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

(5,949)

   

(5,892)

   

(11,664)

   

(10,477)

 

Non-GAAP net income attributable to SYNNEX Corporation common stockholders

$

82,448

   

$

54,190

   

$

154,882

   

$

108,234

 
               

Weighted-average number of common shares - diluted:

39,711

   

39,477

   

39,708

   

39,470

 
               

Diluted EPS(2)

$

1.83

   

$

1.11

   

$

3.37

   

$

2.28

 

Acquisition-related and integration expenses

   

0.01

   

0.02

   

0.04

 

Restructuring costs

   

0.10

   

   

0.10

 

Amortization of intangibles

0.40

   

0.30

   

0.81

   

0.59

 

Income taxes related to the above(1)

(0.15)

   

(0.15)

   

(0.29)

   

(0.27)

 

Non-GAAP Diluted EPS(3)

$

2.08

   

$

1.37

   

$

3.90

   

$

2.74

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(amounts in millions, except for per share amounts)

(continued)

 
 

Forecast

 

Three Months Ending August 31, 2017

 

Low

 

High

Net income

     

Net income attributable to SYNNEX Corporation

$

67.7

   

$

70.7

 

Amortization of intangibles

16.1

   

16.1

 

Income taxes related to the above(1)

(5.7)

   

(5.7)

 

Non-GAAP net income attributable to SYNNEX Corporation

$

78.1

   

$

81.1

 
       

Diluted EPS(2)

$

1.68

   

$

1.76

 

Amortization of intangibles

0.40

   

0.40

 

Income taxes related to the above(1)

(0.14)

   

(0.14)

 

Non-GAAP Diluted EPS(3)

$

1.94

   

$

2.02

 

(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 and non-employee directors 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 and six months ended May 31, 2017, and 1.0% and 1.1% for the three and six months ended May 31, 2016, respectively. Net income allocated to participating securities is approximately 0.9% of the Net income attributable to SYNNEX Corporation for the three months ending August 31, 2017.

   

(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")

 
 

May 31, 2017

 

May 31, 2016

ROIC

     

Operating income (Trailing fiscal four quarters)

$

455,553

   

$

337,176

 

Income taxes on operating income(1)

(154,573)

   

(122,175)

 

Operating income after taxes

$

300,980

   

$

215,001

 
       

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

$

913,007

   

$

722,294

 

Total equity (last five quarters average)

1,986,402

   

1,794,895

 

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

(161,559)

   

(224,869)

 

Total invested capital

$

2,737,850

   

$

2,292,320

 
       

ROIC

11.0

%

 

9.4

%

       

Adjusted ROIC

     

Non-GAAP operating income (Trailing fiscal four quarters)

$

529,790

   

$

397,019

 

Income taxes on Non-GAAP operating income(1)

(179,555)

   

(143,856)

 

Non-GAAP operating income after taxes

$

350,235

   

$

253,163

 
       

Total invested capital

$

2,737,850

   

$

2,292,320

 

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

182,015

   

137,720

 

Total Non-GAAP invested capital

$

2,919,865

   

$

2,430,040

 
       

Adjusted ROIC

12.0

%

 

10.4

%

 

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

 

Debt to Capitalization

 
   

May 31, 2017

 

May 31, 2016

Total borrowings, excluding book overdraft

(a)

$

1,087,703

   

$

704,219

 

Total equity

(b)

2,116,210

   

1,875,001

 

Debt to capitalization

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

33.9

%

 

27.3

%

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

(continued)

 

Cash Conversion Cycle

 
   

Three Months Ended

   

May 31, 2017

 

May 31, 2016

Days sales outstanding

       

Revenue (products and services)

(a)

$

3,936,268

   

$

3,379,499

 

Accounts receivable, including receivable from related parties

(b)

1,787,437

   

1,512,760

 

Days sales outstanding

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

42

   

41

 
         

Days inventory outstanding

       

Cost of revenue (products and services)

©

$

3,564,023

   

$

3,085,469

 

Inventories

(d)

2,112,590

   

1,378,055

 

Days inventory outstanding

(d)/(©/the number of days during the period)

55

   

41

 
         

Days payable outstanding

       

Cost of revenue (products and services)

©

$

3,564,023

   

$

3,085,469

 

Accounts payable, including payable to related parties

(e)

1,706,408

   

1,389,600

 

Days payable outstanding

(e)/(©/the number of days during the period)

44

   

41

 
         

Cash conversion cycle

 

53

   

41

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2017-second-quarter-results-300478612.html

SOURCE SYNNEX Corporation

 

 

News Provided by Acquire Media