SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal first quarter ended February 29, 2012.
|Q1 FY12||Q1 FY11||Net Change|
|Operating income ($M)(1)||$64.0||$50.9||25.8%|
|Operating margin||2.60%||2.03%||57 bp|
|Net income attributable to SYNNEX Corporation ($M)(2)||$38.2||$29.7||28.6%|
|1.||The fiscal 2011 first quarter income before non-operating items, income taxes and noncontrolling interest includes $729 thousand for direct acquisition and integration expenses.|
|2.||The fiscal 2011 first quarter net income attributable to SYNNEX Corporation includes direct acquisition and integration expenses of $474 thousand, net of tax.|
Fiscal 2012 First Quarter Highlights:
- Distribution: Revenue was $2.42 billion, a decrease of 1.8% over the prior fiscal year quarter. Distribution income before non-operating items, income taxes and noncontrolling interest grew to $62.4 million, or 2.57% of distribution revenue compared with $47.2 million, or 1.91% in the prior fiscal year quarter. Fiscal 2012 first quarter results included the transition of certain customer gross revenue business to a fee for service logistics relationship which resulted in a decline in revenue, expansion of gross and operating margins and reduced working capital. This transition began in fiscal 2011 fourth quarter and was completed in fiscal 2012 first quarter which was earlier than expected and contributed to lower revenue. Fiscal 2011 first quarter included $287 thousand of direct acquisition and integration expenses.
- Global Business Services (GBS): Revenue was $45.1 million, an increase of 14.8% over the prior fiscal year first quarter. GBS income before non-operating items, income taxes and non-controlling interest was $2.0 million, or 4.42% of GBS revenue compared with $3.6 million, or 9.26% in the prior fiscal year quarter. Fiscal 2012 first quarter included various investments related to anticipated growth in the business. Fiscal 2011 first quarter included $442 thousand in direct acquisition and integration expenses.
- The trailing fiscal four quarters ROIC increased to 11.4% for the fiscal first quarter of 2012, up from 10.2% in the prior year fiscal first quarter.
- The cash conversion cycle was 45 days.
- The debt to capitalization ratio was 20%.
- Depreciation and amortization were $4.0 and $2.1 million, respectively.
“For the fiscal second quarter we anticipate a stable demand environment with continued growth in year-over-year operating margin and earnings per share,” Mr. Murai continued.
- Revenue is expected to be in the range of $2.45 billion to $2.55 billion.
- Net income is expected to be in the range of $33.3 million to $34.5 million.
- Diluted earnings per share are expected to be in the range of $0.87 to $0.91.
Copyright 2012 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX and the SYNNEX Logo Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.SNX-F
|Consolidated Balance Sheets|
|(currency in thousands)|
|February 29,||November 30,|
|Cash and cash equivalents||$||68,756||$||67,571|
|Accounts receivable, net||1,173,150||1,293,027|
|Receivable from affiliates||1,570||1,344|
|Current deferred tax assets||28,579||28,241|
|Other current assets||56,512||57,168|
|Total current assets||2,297,979||2,438,415|
|Property and equipment, net||125,815||125,157|
|Intangible assets, net||35,368||37,539|
|Deferred tax assets||625||590|
|Liabilities and equity|
|Borrowings under securitization, term loans and lines of credit||$||80,068||$||159,200|
|Income taxes payable||11,021||5,136|
|Total current liabilities||1,182,562||1,372,253|
|Deferred tax liabilities||8,568||8,086|
|SYNNEX Corporation stockholders' equity:|
|Additional paid-in capital||320,573||310,316|
|Accumulated other comprehensive income||36,374||30,026|
|Total SYNNEX Corporation stockholders' equity||1,213,110||1,158,379|
|Total liabilities and equity||$||2,699,164||$||2,833,295|
|Consolidated Statements of Operations|
|(currency and share amounts in thousands, except for per share amounts)|
|Three Months Ended|
|February 29, 2012||February 28, 2011|
|Cost of revenue||(2,291,422||)||(2,357,138||)|
|Selling, general and administrative expenses||(105,284||)||(92,943||)|
|Income before non-operating items, income taxes|
|and noncontrolling interest||63,988||50,853|
|Interest expense and finance charges, net||(6,035||)||(6,169||)|
|Other income, net||2,099||965|
|Income before income taxes and noncontrolling interest||60,052||45,649|
|Provision for income taxes||(20,898||)||(15,978||)|
|Net (income) loss attributable to noncontrolling interest||(931||)||50|
|Net income attributable to SYNNEX Corporation||$||38,223||$||29,721|
|Net income per share attributable to SYNNEX Corporation:|
|Weighted-average common shares outstanding:|