SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal second quarter ended May 31, 2013.
|Q2 FY13||Q2 FY12||Net Change|
|Operating income ($M)||$52.0||$59.3||-12.4%|
|Net income attributable to SYNNEX Corporation ($M)||$30.8||$34.4||-10.5%|
|Diluted Earnings Per Share (EPS)||$0.81||$0.90||-10.0%|
Fiscal 2013 Second Quarter Highlights:
- Distribution: Revenue was $2.54 billion, reflecting 4.2% growth from the prior fiscal year quarter. Adjusting for the translation effect of foreign currencies, primarily the yen, our distribution business on a constant dollar basis was up 6.7%. Distribution revenue includes approximately $45 million of revenue from our mid quarter Supercom acquisition. Distribution income before non-operating items, income taxes and noncontrolling interest was $47.7 million, or 1.88% of distribution revenue compared with $56.4 million, or 2.31% in the prior fiscal year quarter.
- Global Business Services (GBS): Revenue was $55.1 million, an increase of 15.4% over the prior fiscal year quarter. GBS income before non-operating items, income taxes and noncontrolling interest was $4.4 million, or 7.91% of GBS revenue compared with $2.6 million, or 5.40% in the prior fiscal year quarter.
- One-time integration costs associated with the recently closed Supercom acquisition were $2.1 million on a pre-tax basis.
- The Company called its $144 million 4% convertible debt and made a decision in the second quarter to pay the conversion spread in cash. The final cash payment of both principal and the conversion spread will be made in the third quarter in accordance with the settlement provisions of the indenture.
- Trailing fiscal four quarters ROIC was 9.6% for the fiscal second quarter of 2013, compared to 11.7% in the prior fiscal year quarter.
- The cash conversion cycle was 42 days, down two days from the prior fiscal year quarter.
- The debt to capitalization ratio was 18%.
- Depreciation and amortization were $4.0 million and $2.0 million, respectively.
“With recent signs of economic strengthening, we anticipate that IT demand will slowly improve but remain somewhat mixed across products and geographies.” Mr. Murai continued, “We remain committed to growing our business and expect our margins to improve during the second half of the year reflecting the progress we’ve made in protecting market share and managing profitability.”
- Revenue is expected to be in the range of $2.65 billion to $2.75 billion.
- Net income is expected to be in the range of $34.3 million to $35.5 million.
- Diluted EPS is expected to be in the range of $0.91 to $0.95, which does not include the dilutive impact of the convertible debt conversion spread, if any.
Copyright 2013 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.SNX-F
|Consolidated Statements of Operations|
|(currency and share amounts in thousands, except for per share amounts)|
|Three Months Ended||Six Months Ended|
|May 31, 2013||May 31, 2012||May 31, 2013||May 31, 2012|
|Cost of revenue||(2,436,571||)||(2,326,363||)||(4,741,323||)||(4,617,785||)|
|Selling, general and administrative expenses||(102,826||)||(97,115||)||(202,973||)||(202,399||)|
|Income before non-operating items, income taxes and noncontrolling interest||51,964||59,321||107,904||123,309|
|Interest expense and finance charges, net||(4,863||)||(5,519||)||(10,356||)||(11,554||)|
|Other income (expense), net||528||(382||)||1,789||1,717|
|Income before income taxes and noncontrolling interest||47,629||53,420||99,337||113,472|
|Provision for income taxes||(16,837||)||(18,590||)||(35,154||)||(39,488||)|
|Net income attributable to noncontrolling interest||(23||)||(456||)||(45||)||(1,387||)|
|Net income attributable to SYNNEX Corporation||$||30,769||$||34,374||$||64,138||$||72,597|
|Earnings per share attributable to SYNNEX Corporation :|
|Weighted-average common shares outstanding:|
|Consolidated Balance Sheets|
|(currency in thousands)|
|May 31,||November 30,|
|Cash and cash equivalents||$||216,386||$||163,699|
|Accounts receivable, net||1,223,212||1,401,087|
|Receivable from affiliates||260||285|
|Current deferred tax assets||23,396||23,390|
|Other current assets||66,439||52,727|
|Total current assets||2,490,972||2,580,461|
|Property and equipment, net||120,698||122,923|
|Intangible assets, net||27,515||29,049|
|Deferred tax assets||9,941||619|
|LIABILITIES AND EQUITY|
|Borrowings under securitization, term loans and lines of credit||$||85,821||$||52,698|
|Income taxes payable||425||7,470|
|Total current liabilities||1,395,289||1,494,707|
|Deferred tax liabilities||3,146||9,265|
|SYNNEX Corporation stockholders' equity:|
|Additional paid-in capital||312,598||324,292|
|Accumulated other comprehensive income||21,644||35,405|
|Total SYNNEX Corporation stockholders' equity||1,355,671||1,319,023|
|Total liabilities and equity||$||2,875,934||$||2,963,262|