TD SYNNEX CORPORATION FREMONT, Calif., Jan. 10, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2016.
Q4 FY16 Q4 FY15 Net change
------- ------- ----------
Revenue ($M) $3,887 $3,550 9.5%
Operating income
($M) $130.6 $105.0 24.5%
Non-GAAP operating
income ($M)(1) $156.1 $120.0 30.1%
Operating margin 3.36% 2.96% 40 bps
Non-GAAP operating
margin(1) 4.02% 3.38% 64 bps
Net income
attributable to
SYNNEX Corporation
($M) $85.3 $62.2 37.3%
Non-GAAP net
income
attributable to
SYNNEX Corporation
($M)(1) $102.9 $71.6 43.7%
Diluted EPS $2.13 $1.56 36.5%
Non-GAAP Diluted
EPS(1) $2.57 $1.80 42.8%
(1) Non-GAAP financial measures
exclude the impact of acquisition 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 financial results for our fourth quarter and fiscal 2016 are a reflection of strong execution and the progress we have made in our strategy," said Kevin Murai, President and Chief Executive Officer, SYNNEX Corporation. "and I believe our strategic investments will continue to position us well for the future."
Fiscal 2016 Fourth Quarter Highlights:
-- Technology Solutions: Revenue was $3.4 billion, up 6.6% from the prior
fiscal year quarter. Adjusting for the translation effect of foreign
currencies, the Technology Solutions business increased by 5.9% compared
with last year. Technology Solutions generated operating income of $92.6
million, or 2.73% of segment revenue, compared with $80.4 million, or
2.53% of segment revenue, in the fiscal fourth quarter of 2015.
-- Concentrix: Revenue was $500.4 million, an increase of 33.9% from the
$373.6 million in revenue generated during the fourth quarter of last
year. Adjusting for the Minacs acquisition and translation effect of
foreign currencies, Concentrix revenue grew 1.8% compared with last
year. Operating income was $38.0 million, or 7.60% of Concentrix
revenue, compared with $24.4 million in the prior fiscal year quarter.
Non-GAAP operating income was $62.8 million, or 12.55% of segment
revenue, for fiscal fourth quarter of 2016, compared with $38.8 million,
or 10.38% of segment revenue, in the fiscal fourth quarter of 2015.
-- The trailing fiscal four quarters Return on Invested Capital ("ROIC")
was 10.3% compared with 9.2% in the prior year fiscal fourth quarter.
The adjusted trailing fiscal four quarters ROIC was 11.5%.
-- The debt to capitalization ratio was 32.8%, up from 28.9% in the prior
fiscal year fourth quarter.
-- Depreciation and amortization were $18.7 million and $19.0 million,
respectively.
-- Cash generated from operations was approximately $51 million for the
quarter.
FY16 FY15 Net change
---- ---- ----------
Revenue ($M) $14,062 $13,338 5.4%
Operating income ($M) $379.6 $354.6 7.1%
Non-GAAP operating
income ($M)(1) $449.7 $419.4 7.2%
Operating margin 2.70% 2.66% 4 bps
Non-GAAP operating
margin(1) 3.20% 3.14% 6 bps
Net income attributable
to SYNNEX Corporation
($M) $234.9 $208.5 12.7%
Non-GAAP net income
attributable to SYNNEX
Corporation ($M)(1) $281.2 $249.9 12.5%
Diluted EPS $5.88 $5.24 12.2%
Non-GAAP Diluted EPS(1) $7.04 $6.28 12.1%
(1) Non-GAAP financial measures
exclude the impact of acquisition 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 2016 Highlights:
-- Technology Solutions: Revenue was $12.5 billion, up 4.6% from the prior
fiscal year. Adjusting for the translation effect of foreign currencies,
the Technology Solutions business increased by 4.7% compared with last
year. Technology Solutions operating income was $315.5 million, or 2.70%
of segment revenue compared with $303.0 million, or 2.54% of segment
revenue, in fiscal 2015.
-- Concentrix: Revenue was $1.6 billion, a 12.1% increase from the $1.4
billion in revenue generated during last year. Adjusting for the Minacs
acquisition and translation effect of foreign currencies, Concentrix
revenue grew 2.7% compared with last year. Operating income was $63.9
million, or 4.02% of Concentrix revenue, compared with $51.1 million in
the prior fiscal year. Non-GAAP operating income was $131.4 million, or
8.27% of segment revenue, for fiscal 2016, compared with $113.4 million,
or 8.00% of segment revenue, in fiscal 2015.
-- Depreciation and amortization were $65.3 million and $55.5 million,
respectively.
-- Cash generated from operations was approximately $326 million for the
year.
Fiscal 2017 First Quarter Outlook:
The following statements are based on SYNNEX's current expectations for the fiscal 2017 first quarter. Non-GAAP financial measures exclude the impact of acquisition and integration expenses, the amortization of intangibles and the related tax impact thereon. These statements are forward-looking and actual results may differ materially.
-- Revenue is expected to be in the range of $3.40 billion to $3.60
billion.
-- Net income is expected to be in the range of $52.6 million to $55.8
million and on a Non-GAAP basis net income is expected to be in the
range of $64.7 million to $67.9 million.
-- Diluted earnings per share is expected to be in the range of $1.31 to
$1.39 and on a Non-GAAP basis diluted earnings per share is expected to
be in the range of $1.61 to $1.69.
-- After-tax amortization of intangibles is expected to be $11.1 million,
or $0.28 per share. After tax acquisition and integration expenses are
expected to be $1.0 million, or $0.02 per share.
Dividend Announcement
SYNNEX previously announced that its Board of Directors declared a quarterly cash dividend of $0.25 per common share. The dividend will be payable on January 27, 2017 to stockholders of record as of the close of business on January 13, 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 (888) 469-3219 in North America or (630) 395-0205 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), a Fortune 500 corporation, is a leading business process services company, optimizing supply chains and providing outsourced services focused on customer relationship management. 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 26 countries around the world. Additional information about SYNNEX may be found online at www.synnex.com.
Use of Non-GAAP Financial Information
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 and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.
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. This approach is used for countries where the functional currency is the local currency. 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 debt and equity, net of cash and cash equivalents in the United States. Adjusted ROIC, or ROIC excluding the impact of acquisition and integration expenses, restructuring costs and the amortization of intangibles is calculated by excluding the tax effected impact of these items from operating income and equity.
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 first 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, after-tax impact of acquisition and integration expenses and the timing of completion of such costs, our progress regarding our growth initiatives, currency impact, 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 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, 2015 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, MINACS and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, CONCENTRIX and MINACS 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,
2016 2015
---- ----
ASSETS
Current assets:
Cash and cash equivalents $380,717 $336,072
Restricted cash 6,265 88,558
Short-term investments 5,109 5,546
Accounts receivable, net 1,756,494 1,759,491
Receivable from related parties 102 114
Inventories 1,741,734 1,328,967
Current deferred tax assets 49,116 40,510
Other current assets 105,572 90,523
------- ------
Total current assets 4,045,109 3,649,781
Property and equipment, net 312,716 248,627
Goodwill 486,239 298,785
Intangible assets, net 298,550 166,567
Deferred tax assets 14,448 19,849
Other assets 66,201 60,538
------ ------
Total assets $5,223,263 $4,444,147
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current $363,737 $92,093
Accounts payable 1,683,155 1,445,194
Payable to related parties 30,679 7,661
Accrued compensation and benefits 165,585 135,453
Other accrued liabilities 217,575 218,687
Income taxes payable 17,097 19,069
Total current liabilities 2,477,828 1,918,157
Long-term borrowings 603,229 638,798
Other long-term liabilities 103,217 76,582
Deferred tax liabilities 63,191 10,713
------ ------
Total liabilities 3,247,465 2,644,250
--------- ---------
SYNNEX Corporation stockholders' equity:
Preferred stock - -
Common stock 41 40
Additional paid-in capital 440,713 411,687
Treasury stock (67,262) (51,287)
Accumulated other comprehensive income (loss) (93,116) (55,237)
Retained earnings 1,695,400 1,494,178
--------- ---------
Total SYNNEX Corporation stockholders' equity 1,975,776 1,799,381
Noncontrolling interest 22 516
--- ---
Total equity 1,975,798 1,799,897
--------- ---------
Total liabilities and equity $5,223,263 $4,444,147
========== ==========
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, 2016 November 30, 2015 November 30, 2016 November 30, 2015
----------------- ----------------- ----------------- -----------------
Revenue:
Products $3,390,665 $3,179,750 $12,490,427 $11,936,282
Services 496,237 369,867 1,571,410 1,402,115
------- ------- --------- ---------
Total revenue 3,886,902 3,549,617 14,061,837 13,338,397
Cost of revenue:
Products (3,206,961) (3,012,292) (11,815,479) (11,276,819)
Services (301,155) (224,589) (963,393) (869,787)
--------
Gross profit 378,786 312,736 1,282,965 1,191,791
Selling, general and
administrative
expenses (248,144) (207,771) (903,369) (837,239)
-------- -------- -------- --------
Operating income 130,642 104,965 379,596 354,552
Interest expense and
finance charges,
net (8,748) (7,246) (28,993) (26,296)
Other income
(expense), net 856 606 5,461 (1,061)
--- --- ----- ------
Income before income
taxes 122,750 98,325 356,064 327,195
Provision for income
taxes (37,440) (36,101) (121,059) (118,588)
------- ------- -------- --------
Net income 85,310 62,224 235,005 208,607
Net (income) loss
attributable to
noncontrolling
interest 8 (67) (59) (82)
--- --- --- ---
Net income
attributable to
SYNNEX Corporation $85,318 $62,157 $234,946 $208,525
======= ======= ======== ========
Earnings per share attributable to
SYNNEX Corporation:
Basic $2.14 $1.57 $5.91 $5.28
===== ===== ===== =====
Diluted $2.13 $1.56 $5.88 $5.24
===== ===== ===== =====
Weighted-average common shares
outstanding:
Basic 39,431 39,134 39,321 39,061
====== ====== ====== ======
Diluted 39,647 39,431 39,530 39,352
====== ====== ====== ======
Cash dividends
declared per share $0.25 $0.20 $0.85 $0.58
SYNNEX Corporation
Segment Information
(currency in thousands)
(unaudited)
Three Months Ended Fiscal Year Ended
November 30, 2016 November 30, 2015 November 30, 2016 November 30, 2015
----------------- ----------------- ----------------- -----------------
Revenue:
Technology
Solutions $3,390,749 $3,179,819 $12,490,718 $11,936,660
Concentrix 500,404 373,639 1,587,736 1,416,670
Inter-segment
elimination (4,251) (3,841) (16,617) (14,933)
Consolidated $3,886,902 $3,549,617 $14,061,837 $13,338,397
========== ========== =========== ===========
Operating income:
Technology
Solutions $92,589 $80,438 $315,485 $302,950
Concentrix 38,022 24,408 63,877 51,127
Inter-segment
elimination 31 119 234 475
Consolidated $130,642 $104,965 $379,596 $354,552
======== ======== ======== ========
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
Three Months Ended Fiscal Year Ended
November 30, 2016 November 30, 2015 November 30, 2016 November 30, 2015
----------------- ----------------- ----------------- -----------------
Revenue in Constant Currency
Consolidated
Revenue $3,886,902 $3,549,617 $14,061,837 $13,338,397
Foreign currency
translation (21,835) 37,268
------- ------
Revenue in constant
currency $3,865,067 $3,549,617 $14,099,105 $13,338,397
Technology Solutions
Revenue $3,390,749 $3,179,819 $12,490,718 $11,936,660
Foreign currency
translation (22,778) 12,780
------- ------
Revenue in constant
currency $3,367,971 $3,179,819 $12,503,498 $11,936,660
Concentrix
Revenue $500,404 $373,639 $1,587,736 $1,416,670
Foreign currency
translation 943 24,488
--- ------
Revenue in constant
currency $501,347 $373,639 $1,612,224 $1,416,670
Three Months Ended Fiscal Year Ended
November 30, 2016 November 30, 2015 November 30, 2016 November 30, 2015
----------------- ----------------- ----------------- -----------------
Selling, general and administrative
expenses
Consolidated
GAAP selling, general
and administrative
expenses $248,144 $207,771 $903,369 $837,239
Acquisition and
integration expenses 6,465 2,038 10,393 10,109
Restructuring costs - - 4,255 -
Amortization of
intangibles 18,504 12,669 54,250 53,646
------ ------ ------ ------
Adjusted selling,
general and
administrative expenses $223,175 $193,064 $834,471 $773,484
Technology Solutions
GAAP selling, general
and administrative
expenses $91,200 $87,088 $359,754 $356,880
Amortization of
intangibles 670 652 2,657 2,630
--- --- ----- -----
Adjusted selling,
general and
administrative expenses $90,530 $86,436 $357,097 $354,250
Concentrix
GAAP selling, general
and administrative
expenses $159,007 $122,649 $551,570 $487,187
Acquisition and
integration expenses 6,465 2,038 10,393 10,109
Restructuring costs - - 4,255 -
Amortization of
intangibles 17,834 12,017 51,593 51,016
------ ------ ------ ------
Adjusted selling,
general and
administrative expenses $134,708 $108,594 $485,329 $426,062
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, 2016 November 30, 2015 November 30, 2016 November 30, 2015
----------------- ----------------- ----------------- -----------------
Operating income and Operating margin
Consolidated
Revenue $3,886,902 $3,549,617 $14,061,837 $13,338,397
GAAP operating income $130,642 $104,965 $379,596 $354,552
Acquisition and
integration expenses 6,465 2,038 10,393 10,109
Restructuring costs - - 4,255 -
Amortization of
intangibles 18,981 12,985 55,490 54,756
------ ------ ------ ------
Non-GAAP operating
income $156,088 $119,988 $449,734 $419,417
Depreciation 18,712 13,449 65,261 48,754
------ ------ ------ ------
Adjusted EBITDA $174,800 $133,437 $514,995 $468,171
GAAP operating margin 3.36% 2.96% 2.70% 2.66%
Non-GAAP operating
margin 4.02% 3.38% 3.20% 3.14%
Technology Solutions
Revenue $3,390,749 $3,179,819 $12,490,718 $11,936,660
GAAP operating income $92,589 $80,438 $315,485 $302,950
Amortization of
intangibles 670 652 2,657 2,630
--- --- ----- -----
Non-GAAP operating
income $93,259 $81,090 $318,142 $305,580
Depreciation 3,489 3,307 13,935 12,475
----- ----- ------ ------
Adjusted EBITDA $96,748 $84,397 $332,077 $318,055
GAAP operating margin 2.73% 2.53% 2.53% 2.54%
Non-GAAP operating
margin 2.75% 2.55% 2.55% 2.56%
Concentrix
Revenue $500,404 $373,639 $1,587,736 $1,416,670
GAAP operating income $38,022 $24,408 $63,877 $51,127
Acquisition and
integration expenses 6,465 2,038 10,393 10,109
Restructuring costs - - 4,255 -
Amortization of
intangibles 18,311 12,333 52,833 52,126
------ ------ ------ ------
Non-GAAP operating
income $62,798 $38,779 $131,358 $113,362
Depreciation 15,254 10,261 51,560 36,755
------ ------ ------ ------
Adjusted EBITDA $78,052 $49,040 $182,918 $150,117
GAAP operating margin 7.60% 6.53% 4.02% 3.61%
Non-GAAP operating
margin 12.55% 10.38% 8.27% 8.00%
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency and share amounts in thousands, except for per share amounts)
(continued)
Three Months Fiscal Year
Ended November Ended November
30, 2016 30, 2016
--------------- ---------------
Minacs operating
income
GAAP
operating
income $2,722 $3,838
Acquisition
and
integration
expenses 1,657 2,052
Amortization
of
intangibles 7,662 9,397
----- -----
Non-
GAAP
operating
income $12,041 $15,287
Depreciation 1,888 2,944
----- -----
Adjusted
EBITDA $13,929 $18,231
Three Months Ended Fiscal Year Ended
November 30, 2016 November 30,
2015 November 30, 2016 November 30, 2015
----------------- ------------- ----------------- -----------------
Net income
Net income attributable to SYNNEX
Corporation $85,318 $62,157 $234,946 $208,525
Acquisition and integration expenses 6,465 2,038 10,393 10,109
Restructuring costs - - 4,255 -
Amortization of intangibles 18,981 12,985 55,490 54,756
Income taxes related to the above(1) (7,829) (5,546) (23,846) (23,510)
------ ------ ------- -------
Non-GAAP net income attributable to
SYNNEX Corporation $102,935 $71,634 $281,238 $249,880
Diluted earnings per common share
("EPS")(2)
Net income attributable to SYNNEX
Corporation $85,318 $62,157 $234,946 $208,525
Less: net income allocated to
participating securities (834) (673) (2,408) (2,413)
---- ---- ------ ------
Net income attributable to SYNNEX
Corporation common stockholders 84,484 61,484 232,538 206,112
Acquisition and integration expenses
attributable to SYNNEX Corporation
common stockholders 6,405 2,017 10,297 10,002
Restructuring costs attributable to
SYNNEX Corporation common stockholders - - 4,217 -
Amortization of intangibles attributable
to SYNNEX Corporation common
stockholders 18,787 12,845 54,891 54,133
Income taxes related to the above
attributable to SYNNEX Corporation
common stockholders(1) (7,749) (5,489) (23,590) (23,261)
------ ------ ------- -------
Non-GAAP net income attributable to
SYNNEX Corporation common stockholders $101,927 $70,857 $278,353 $246,986
Weighted-average number of common shares
- diluted: 39,647 39,431 39,530 39,352
Diluted EPS(2) $2.13 $1.56 $5.88 $5.24
Acquisition and integration expenses 0.16 0.05 0.26 0.25
Restructuring costs - - 0.11 -
Amortization of intangibles 0.47 0.33 1.39 1.38
Income taxes related to the above(1) (0.20) (0.14) (0.60) (0.59)
----- ----- ----- -----
Non-GAAP Diluted EPS(3) $2.57 $1.80 $7.04 $6.28
===== ===== ===== =====
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,
2017
Low High
Net income
Net income
attributable
to SYNNEX
Corporation $52.6 $55.8
Acquisition and
integration
expenses 1.5 1.5
Amortization of
intangibles 17.0 17.0
Income taxes
related to the
above(1) (6.4) (6.4)
---- ----
Non-GAAP net
income
attributable
to SYNNEX
Corporation $64.7 $67.9
Diluted EPS(2) $1.31 $1.39
Acquisition and
integration
expenses 0.04 0.04
Amortization of
intangibles 0.42 0.42
Income taxes
related to the
above(1) (0.16) (0.16)
----- -----
Non-GAAP
Diluted EPS(3) $1.61 $1.69
===== =====
(1) The tax effect of the non-GAAP
adjustments was calculated using the
applicable effective tax rate during the
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 1.0% of the
Net income attributable to SYNNEX
Corporation for both the three months and
the year ended November 30, 2016, and
approximately 1.1% and 1.2% for the three
months and the year ended November 30,
2015, respectively. Net income allocated to
participating securities is approximately
1.0% of the Net income attributable to
SYNNEX Corporation for the three months
ending February 28, 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")
November 30, 2016 November 30, 2015
----------------- -----------------
ROIC
Operating income (Trailing fiscal four quarters) $379,596 $354,552
Income taxes on operating income(1) (129,042) (128,503)
-------- --------
Operating income after taxes 250,554 226,049
Total borrowings, excluding book overdraft (five quarters average) $781,568 $804,906
Total equity (five quarters average) 1,879,777 1,723,374
Less: U.S. cash and cash equivalents (five quarters average) (229,940) (80,476)
-------- -------
Total invested capital 2,431,405 2,447,804
ROIC 10.3% 9.2%
Adjusted ROIC
Non-GAAP operating income (Trailing fiscal four quarters) $449,734 $419,417
Income taxes on Non-GAAP operating income(1) (152,846) (152,013)
-------- --------
Non-GAAP operating income after taxes 296,888 267,404
Total invested capital $2,431,405 $2,447,804
Tax effected impact of acquisition and integration expenses, restructuring costs and amortization of intangibles (five quarters average) 158,550 118,241
------- -------
Total Non-GAAP invested capital 2,589,955 2,566,045
Adjusted ROIC 11.5% 10.4%
(1) Income taxes on
operating income was
calculated using the
applicable effective tax
rates during the
respective quarters.
Debt to Capitalization
November 30, November 30,
2016 2015
---- ----
Total borrowings,
excluding book
overdraft (a) $963,584 $730,891
Total equity (b) 1,975,798 1,799,897
---------
Debt to capitalization (a)/((a)+(b)) 32.8% 28.9%
==== ====
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(continued)
Cash Conversion Cycle
Three Months Ended
November 30, 2016 November 30, 2015
Days sales outstanding
Revenue
(products and
services) (a) $3,886,902 $3,549,617
Accounts
receivable,
including
receivable from
related parties (b) 1,756,596 1,759,605
---
Days sales (b)/((a)/the number of
outstanding days during the
period) 41 45
Days inventory outstanding
Cost of revenue
(products and
services) (c) $3,508,116 $3,236,881
Inventories (d) 1,741,734 1,328,967
---
Days inventory (d)/((c)/the number of
outstanding days during the
period) 45 37
Days payable outstanding
Cost of revenue
(products and
services) (e) $3,508,116 $3,236,881
Accounts
payable,
including
payable to
related parties (f) 1,713,834 1,452,855
---
Days payable (f)/((e)/the number of
outstanding days during the
period) 44 41
Cash conversion cycle 42 41
=== ===
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2016-fourth-quarter-and-full-year-results-300388965.html
SOURCE SYNNEX Corporation
