StockSelector.com
  Research, Select, & Monitor Saturday, November 17, 2018 5:58:12 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
SYNNEX Corporation$78.74$.28.36%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 SYNNEX Corporation Reports Fiscal 2017 Fourth Quarter and Full Year Results
   Tuesday, January 09, 2018 4:15:00 PM ET

SYNNEX Corporation (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 (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,     November 30,
                                              2017             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,      November 30,      November 30,        November 30,
                                                              2017              2016              2017                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,     November 30,     November 30,      November 30,
                          2017             2016             2017              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,     November 30,     November 30,      November 30,
                                                      2017             2016             2017              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,     November 30,     November 30,      November 30,
                                                      2017             2016             2017              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,         November 30,         November 30,          November 30,
                                             2017                 2016                 2017                  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,   November 30,   November 30,   November 30,
                                                                                                    2017           2016           2017           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

https://c212.net/c/img/favicon.png?sn=SF84388&sd=2018-01-09

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

https://rt.prnewswire.com/rt.gif?NewsItemId=SF84388&Transmission_Id=201801091615PR_NEWS_USPR_____SF84388&DateId=20180109



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.