|Q3 FY12 (1)||Q3 FY11||Net Change|
|Operating income ($M) (2) (3)||$57.1||$66.5||-14.2%|
|Operating margin||2.21%||2.59%||-38 bp|
|Net income attributable to SYNNEX Corporation ($M)||$35.1||$39.0||-10.0%|
|1. The fiscal 2012 third quarter results include the transition of certain customer gross revenue business to a fee for service logistics relationship resulting in a decline in the reported revenue. 2. The fiscal 2012 third quarter operating income includes a $0.7 million credit adjustment to contingent M&A consideration. 3. The fiscal 2011 third quarter operating income includes a $4.1 million credit adjustment to contingent M&A consideration.|
Fiscal 2012 Third Quarter Highlights:
- Distribution: Revenue was $2.54 billion, essentially flat with the prior fiscal year quarter. Distribution income before non-operating items, income taxes and non-controlling interest was $52.6 million, or 2.08% of distribution revenue compared with $58.6 million, or 2.31% in the prior fiscal year quarter. Fiscal 2012 third quarter results include certain customer business which transitioned year-over-year from a gross revenue business to a net fee for service logistics relationship.
- Global Business Services (GBS): Revenue grew to $49.7 million, an increase of 22.8% over the prior fiscal year quarter. GBS income before non-operating items, income taxes and non-controlling interest was $4.6 million, or 9.21% of GBS revenue compared with $7.9 million, or 19.58% in the prior fiscal year quarter. The fiscal 2012 third quarter SG&A included a $0.7 million adjustment for contingent M&A consideration compared with $4.1 million in the prior fiscal year quarter.
- The trailing fiscal four quarters ROIC increased to 11.1% for the fiscal third quarter of 2012, up from 10.5% in the prior year fiscal third quarter.
- The cash conversion cycle declined to 41 days compared to 45 days in the prior fiscal year quarter.
- The debt to capitalization ratio was 19%.
- Depreciation and amortization were $4.2 and $2.1 million, respectively.
- Revenue is expected to be in the range of $2.71 billion to $2.81 billion.
- Net income is expected to be in the range of $38.4 million to $40.0 million.
- Diluted earnings per share are expected to be in the range of $1.02 to $1.06.
Conference Call and WebcastSYNNEX 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) 857-9687 in North America or (630) 395-0222 outside North America. The passcode code 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. About SYNNEX SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation, is a leading business process services company, servicing resellers, retailers and original equipment manufacturers in multiple regions around the world. The Company provides services in IT distribution, supply chain management, contract assembly and business process outsourcing. Founded in 1980, SYNNEX employs over 10,000 full-time and part-time associates worldwide. Additional information about SYNNEX may be found online at www.synnex.com. Safe Harbor Statement Statements in this press 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, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding the demand environment, growth in profitability, our growth and performance, transition of customers from gross revenue to net fee for service, and our revenue, operating margins, net income and earnings per share, 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: our ability to successfully integrate our recent acquisitions; diversion of management as a result of our recent acquisitions; loss of vendors and suppliers as a result of our recent acquisitions; market acceptance and product life of the platforms sold by companies recently acquired; general economic conditions and any weakness in IT and consumer electronics spending; the loss or consolidation of one or more of our significant 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 the tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and contract assembly 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; risks associated with our business process outsourcing and contract assembly business; risks associated with our anti-dilution share repurchase program; and other risks and uncertainties detailed in our Form 10-Q for the fiscal quarter ended May 31, 2012 and from time to time in our 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 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)|
|August 31,||November 30,|
|Cash and cash equivalents||$||172,992||$||67,571|
|Accounts receivable, net||1,172,890||1,293,027|
|Receivable from affiliates||474||1,344|
|Current deferred tax assets||28,390||28,241|
|Other current assets||58,087||57,168|
|Total current assets||2,349,140||2,438,415|
|Property and equipment, net||124,375||125,157|
|Intangible assets, net||31,458||37,539|
|Deferred tax assets||603||590|
|LIABILITIES AND EQUITY|
|Borrowings under securitization, term loans and lines of credit||$||75,154||$||159,200|
|Income taxes payable||3,059||5,136|
|Total current liabilities||1,284,267||1,372,253|
|Deferred tax liabilities||7,486||8,086|
|SYNNEX Corporation stockholders' equity:|
|Additional paid-in capital||325,785||310,316|
|Accumulated other comprehensive income||36,313||30,026|
|Total SYNNEX Corporation stockholders' equity||1,287,576||1,158,379|
|Total liabilities and equity||$||2,731,821||$||2,833,295|
|Consolidated Statements of Operations|
|(currency and share amounts in thousands, except for per share amounts)|
|Three Months Ended||Nine Months Ended|
|August 31, 2012||August 31, 2011||August 31, 2012||August 31, 2011|
|Cost of revenue||(2,425,019||)||(2,418,380||)||(7,042,804||)||(7,126,212||)|
|Selling, general and administrative expenses||(94,878||)||(87,235||)||(297,277||)||(271,126||)|
|Income before non-operating items, income taxes and noncontrolling interest||57,051||66,518||180,360||171,531|
|Interest expense and finance charges, net||(5,809||)||(6,472||)||(17,363||)||(18,910||)|
|Other income (expenses), net||890||(1,214||)||2,607||(69||)|
|Income before income taxes and noncontrolling interest||52,132||58,832||165,604||152,552|
|Provision for income taxes||(17,306||)||(19,662||)||(56,794||)||(52,200||)|
|Net income attributable to noncontrolling interest||313||(134||)||(1,074||)||(194||)|
|Net income attributable to SYNNEX Corporation||$||35,139||$||39,036||$||107,736||$||100,158|
|Net income per share attributable to SYNNEX Corporation:|
|Weighted-average common shares outstanding:|