SYNNEX Corporation Reports Second Quarter Fiscal 2018 Results
FREMONT, Calif., June 28, 2018 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal second quarter ended May 31, 2018.
Q2 FY18 Q2 FY17 Net change
------- ------- ----------
Revenue ($M) $4,973 $3,936 26.3%
Operating income ($M) $123.9 $125.1 (1.0)%
Non-GAAP operating income ($M)(1) $152.3 $141.2 7.8%
Operating margin 2.49% 3.18% (69) bps
Non-GAAP operating margin(1) 3.06% 3.59% (53) bps
Net income ($M) $93.7 $73.1 28.1%
Non-GAAP net income ($M)(1) $95.3 $83.2 14.5%
Diluted EPS $2.34 $1.83 27.9%
Non-GAAP Diluted EPS(1) $2.38 $2.08 14.4%
(1) Non-GAAP financial measures
exclude the impact of acquisition-
related and integration expenses,
the amortization of intangible
assets together with the related tax
effects thereon, and a tax benefit
related to repatriation tax. A
reconciliation of GAAP to Non-GAAP
financial measures is presented in
the supplementary information
section at the end of this press
release.
"Strong results in both of our segments enabled us to deliver another record quarter for both revenue and earnings," said Dennis Polk, President and Chief Executive Officer, SYNNEX Corporation. "These results reflect our persistent focus on executing the strategies we have set out and our ability to operate effectively and with discipline."
Second Quarter Fiscal 2018 Highlights:
-- Technology Solutions: Revenue was $4.5 billion, up 30% from the prior
fiscal year second quarter. Operating income was $96 million, or 2.1% of
segment revenue, compared to $102 million, or 2.9% of segment revenue,
in the prior fiscal year second quarter. Non-GAAP operating income was
$111 million, or 2.5% of segment revenue, in the fiscal second quarter
of 2018, compared to $102 million, or 3.0% of segment revenue, in the
prior fiscal year second quarter.
-- Concentrix: Revenue was $491 million, up 2% from the prior fiscal year
second quarter. Operating income was $28 million, or 5.6% of segment
revenue, compared to $23 million, or 4.9% of segment revenue in the
prior fiscal year second quarter. Non-GAAP operating income was $41
million, or 8.4% of segment revenue, in the fiscal second quarter of
2018, compared to $39 million, or 8.1% of segment revenue, in the prior
fiscal year second quarter.
-- The trailing fiscal four quarters Return on Invested Capital ("ROIC")
was 8.9% compared to 11.0% in the prior fiscal year second quarter. The
adjusted trailing fiscal four quarters ROIC was 10.9%.
-- The debt to capitalization ratio was 43.9%, up from 33.9% in the prior
fiscal year second quarter, primarily as a result of the Westcon-Comstor
Americas acquisition in the fiscal fourth quarter of 2017.
-- Depreciation and amortization were $23 million and $26 million,
respectively.
-- Cash generated from operations was approximately $68 million during the
quarter.
-- Tax expense for the second quarter of fiscal 2018 includes a benefit of
$17 million, or $0.42 per diluted share, related to repatriation tax.
Third Quarter Fiscal 2018 Outlook:
The following statements are based on SYNNEX's current expectations for the fiscal 2018 third quarter. Non-GAAP financial measures exclude the amortization of intangibles and the related tax effect thereon. These statements are forward-looking and actual results may differ materially.
-- Revenue is expected to be in the range of $4.8 billion to $5.0 billion.
-- Net income is expected to be in the range of $77.9 million to $81.6
million and on a Non-GAAP basis, net income is expected to be in the
range of $97.0 million to $100.7 million.
-- Diluted earnings per share is expected to be in the range of $1.95 to
$2.04 and on a Non-GAAP basis, diluted earnings per share is expected to
be in the range of $2.42 to $2.52.
-- After-tax amortization of intangibles is expected to be $19.1 million,
or $0.48 per share.
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 July 27, 2018 to stockholders of record as of the close of business on July 13, 2018.
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 live audio 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 for international callers. 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) is a Fortune 200 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 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 focused on customer engagement, 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, 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.
In fiscal year 2018, non-GAAP net income and non-GAAP diluted earnings per share also exclude the impact of a provisional adjustment relating to the enactment of the Tax Cuts and Jobs Act of 2017. This adjustment includes an estimated transition tax on accumulated overseas profits and the estimated remeasurement of deferred tax assets and liabilities to the new U.S. tax rate. These estimates may be impacted by new guidance issued by regulators, additional information obtained related to earnings and profits in foreign jurisdictions and the impact of our financial position as of the measurement date of November 30, 2018. SYNNEX expects the accounting for the tax effects of the Tax Cuts and Jobs Act will be completed during the one-year measurement period.
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, 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 third 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, currency impact, the frequency and occurrence of dividend declarations, the anticipated benefits of the non-GAAP financial measures, and estimates related to the Tax Cuts and Jobs Act of 2017, as well as expectations relating to the accounting thereof, 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, 2017 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 and share amounts in thousands, except for per share amounts)
(unaudited)
May 31, November 30,
2018 2017
---- ----
ASSETS
Current assets:
Cash and cash equivalents $354,176 $550,688
Restricted cash 6,172 5,837
Short-term investments 3,940 5,475
Accounts receivable, net 2,712,550 2,846,371
Receivable from related parties 161 77
Inventories 2,129,779 2,162,626
Other current assets 220,573 168,704
------- -------
Total current assets 5,427,351 5,739,778
Property and equipment, net 344,290 346,589
Goodwill 861,455 872,641
Intangible assets, net 525,867 583,051
Deferred tax assets 31,802 31,687
Other assets 125,043 124,780
------- -------
Total assets $7,315,808 $7,698,526
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current $705,120 $805,471
Accounts payable 2,257,594 2,626,720
Payable to related parties 30,360 16,888
Accrued compensation and benefits 183,689 204,665
Other accrued liabilities 402,798 354,104
Income taxes payable 60,262 33,359
Total current liabilities 3,639,823 4,041,207
Long-term borrowings 1,106,622 1,136,089
Other long-term liabilities 170,283 124,008
Deferred tax liabilities 87,605 113,527
------ -------
Total liabilities 5,004,333 5,414,831
--------- ---------
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 shares
authorized, no shares issued or outstanding - -
Common stock, $0.001 par value, 100,000 shares
authorized, 41,172 and 41,092 shares issued as of
May 31, 2018 and November 30, 2017, respectively 41 41
Additional paid-in capital 481,561 467,948
Treasury stock, 1,883 and 1,419 shares as of May
31, 2018 and November 30, 2017, respectively (124,801) (77,133)
Accumulated other comprehensive income (loss) (90,265) (61,919)
Retained earnings 2,044,939 1,954,758
Total stockholders' equity 2,311,475 2,283,695
--------- ---------
Total liabilities and equity $7,315,808 $7,698,526
========== ==========
SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except for per share amounts)
(unaudited)
Three Months Ended Six Months Ended
May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017
------------ ------------ ------------ ------------
Revenue:
Products $4,486,395 $3,458,243 $8,535,158 $6,504,864
Services 486,188 478,025 989,795 952,273
------- ------- ------- -------
Total revenue 4,972,583 3,936,268 9,524,953 7,457,137
Cost of revenue:
Products (4,239,137) (3,265,630) (8,063,233) (6,146,183)
Services (304,352) (298,393) (618,675) (596,926)
--------
Gross profit 429,094 372,245 843,045 714,028
Selling, general and
administrative
expenses (305,156) (247,115) (607,175) (487,139)
-------- -------- -------- --------
Operating income 123,938 125,130 235,870 226,889
Interest expense and
finance charges,
net (16,375) (8,962) (33,826) (17,144)
Other expense, net (1,446) (206) (2,624) (529)
------ ---- ------ ----
Income before income
taxes 106,117 115,962 199,420 209,216
Provision for income
taxes (12,424) (42,814) (81,293) (74,279)
Net income $93,693 $73,148 $118,127 $134,937
======= ======= ======== ========
Earnings per common share:
Basic $2.35 $1.83 $2.96 $3.38
===== ===== ===== =====
Diluted $2.34 $1.83 $2.94 $3.37
===== ===== ===== =====
Weighted-average common shares
outstanding:
Basic 39,505 39,533 39,599 39,513
====== ====== ====== ======
Diluted 39,742 39,711 39,859 39,708
====== ====== ====== ======
Cash dividends
declared per share $0.35 $0.25 $0.70 $0.50
===== ===== ===== =====
SYNNEX Corporation
Segment Information
(currency in thousands)
(unaudited)
Three Months Ended Six Months Ended
May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017
------------ ------------ ------------ ------------
Revenue:
Technology Solutions $4,486,408 $3,458,320 $8,535,227 $6,505,016
Concentrix 491,246 481,679 998,983 959,843
Inter-segment
elimination (5,071) (3,731) (9,257) (7,722)
Consolidated $4,972,583 $3,936,268 $9,524,953 $7,457,137
========== ========== ========== ==========
Operating income:
Technology Solutions $96,254 $101,705 $178,523 $182,126
Concentrix 27,684 23,425 57,347 44,741
Inter-segment
elimination - - - 22
Consolidated $123,938 $125,130 $235,870 $226,889
======== ======== ======== ========
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
Three Months Ended Six Months Ended
May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017
------------ ------------ ------------ ------------
Revenue in Constant Currency
Consolidated
Revenue $4,972,583 $3,936,268 $9,524,953 $7,457,137
Foreign currency
translation (35,798) (73,895)
------- -------
Revenue in constant
currency $4,936,785 $3,936,268 $9,451,058 $7,457,137
Technology Solutions
Segment revenue $4,486,408 $3,458,320 $8,535,227 $6,505,016
Foreign currency
translation (26,828) (51,258)
------- -------
Revenue in constant
currency $4,459,580 $3,458,320 $8,483,969 $6,505,016
Concentrix
Segment revenue $491,246 $481,679 $998,983 $959,843
Foreign currency
translation (8,970) (22,637)
------ -------
Revenue in constant
currency $482,276 $481,679 $976,346 $959,843
Three Months Ended Six Months Ended
May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017
------------ ------------ ------------ ------------
Selling, general and administrative
expenses
Consolidated
GAAP selling, general
and administrative
expenses $305,156 $247,115 $607,175 $487,139
Acquisition-related
and integration
expenses 2,046 - 3,851 611
Amortization of
intangibles 25,814 15,649 52,105 31,716
------ ------ ------ ------
Adjusted selling,
general and
administrative
expenses $277,296 $231,466 $551,219 $454,812
Technology Solutions
GAAP selling, general
and administrative
expenses $151,013 $90,983 $293,467 $176,705
Acquisition-related
and integration
expenses 2,046 - 3,851 -
Amortization of
intangibles 12,462 651 25,278 1,305
------ --- ------ -----
Adjusted selling,
general and
administrative
expenses $136,505 $90,332 $264,338 $175,400
Concentrix
GAAP selling, general
and administrative
expenses $155,894 $158,034 $317,136 $314,404
Acquisition-related
and integration
expenses - - - 611
Amortization of
intangibles 13,352 14,998 26,827 30,411
------ ------ ------ ------
Adjusted selling,
general and
administrative
expenses $142,542 $143,036 $290,309 $283,382
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(continued)
Three Months Ended Six Months Ended
May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017
------------ ------------ ------------ ------------
Operating income and Operating margin
Consolidated
Revenue $4,972,583 $3,936,268 $9,524,953 $7,457,137
GAAP operating income $123,938 $125,130 $235,870 $226,889
Acquisition-related
and integration
expenses 2,046 - 3,851 611
Amortization of
intangibles 26,276 16,069 52,986 32,556
------ ------ ------ ------
Non-GAAP operating
income $152,260 $141,199 $292,707 $260,056
Depreciation 22,596 19,413 44,520 38,873
------ ------ ------ ------
Adjusted EBITDA $174,856 $160,612 $337,227 $298,929
GAAP operating margin 2.49% 3.18% 2.48% 3.04%
Non-GAAP operating
margin 3.06% 3.59% 3.07% 3.49%
Technology Solutions
Segment revenue $4,486,408 $3,458,320 $8,535,227 $6,505,016
GAAP operating income $96,254 $101,705 $178,523 $182,126
Acquisition-related
and integration
expenses 2,046 - 3,851 -
Amortization of
intangibles 12,462 651 25,278 1,305
------ --- ------ -----
Non-GAAP operating
income $110,762 $102,356 $207,652 $183,431
Depreciation 5,010 3,402 9,844 6,878
----- ----- ----- -----
Adjusted EBITDA $115,772 $105,758 $217,496 $190,309
GAAP operating margin 2.15% 2.94% 2.09% 2.80%
Non-GAAP operating
margin 2.47% 2.96% 2.43% 2.82%
Concentrix
Segment revenue $491,246 $481,679 $998,983 $959,843
GAAP operating income $27,684 $23,425 $57,347 $44,741
Acquisition-related
and integration
expenses - - - 611
Amortization of
intangibles 13,814 15,418 27,708 31,251
------ ------ ------ ------
Non-GAAP operating
income $41,498 $38,843 $85,055 $76,603
Depreciation 17,586 16,011 34,676 32,018
------ ------ ------ ------
Adjusted EBITDA $59,084 $54,854 $119,731 $108,621
GAAP operating margin 5.64% 4.86% 5.74% 4.66%
Non-GAAP operating
margin 8.45% 8.06% 8.51% 7.98%
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 Six Months Ended
May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017
------------ ------------ ------------ ------------
Net income
Net income $93,693 $73,148 $118,127 $134,937
Acquisition-related and integration
expenses (benefit) (588) - 1,217 611
Amortization of intangibles 26,276 16,069 52,986 32,556
Income taxes related to the above(1) (7,079) (6,006) (15,383) (11,775)
U.S. tax reform adjustment (17,000) - 24,701 -
------- --- ------ ---
Non-GAAP net income $95,302 $83,211 $181,648 $156,329
Diluted earnings per common share ("EPS")(2)
Net income $93,693 $73,148 $118,127 $134,937
Less: net income allocated to
participating securities (859) (672) (1,078) (1,250)
---- ---- ------ ------
Net income attributable to common
stockholders(3) 92,834 72,476 117,048 133,687
Acquisition-related and integration
expenses (benefit) attributable to
common stockholders (583) - 1,257 605
Amortization of intangibles
attributable to common stockholders 26,036 15,921 52,503 32,254
Income taxes related to the above
attributable to common
stockholders(1) (7,014) (5,949) (15,258) (11,664)
U.S. tax reform adjustment
attributable to common stockholders (16,844) - 24,476 -
Difference in the allocation of GAAP
and Non-GAAP net income to
participating securities (1) - (35) -
--- --- ---
Non-GAAP net income attributable to
common stockholders(3) $94,428 $82,448 $179,991 $154,882
Weighted-average number of common
shares - diluted: 39,742 39,711 39,859 39,708
Diluted EPS(2) $2.34 $1.83 $2.94 $3.37
Acquisition-related and integration
expenses (benefit) (0.01) - 0.03 0.02
Amortization of intangibles 0.66 0.40 1.32 0.81
Income taxes related to the above(1) (0.18) (0.15) (0.38) (0.29)
U.S. tax reform adjustment (0.42) - 0.61 -
----- --- ---- ---
Non-GAAP Diluted EPS(3) $2.38 $2.08 $4.52 $3.90
===== ===== ===== =====
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(amounts in millions, except for per share amounts)
(continued)
Forecast
Three Months Ending August 31, 2018
Low High
Net income
Net income $77.9 $81.6
Amortization of intangibles 26.2 26.2
Income taxes related to the above(1) (7.1) (7.1)
Non-GAAP net income $97.0 $100.7
===== ======
Diluted EPS(2) $1.95 $2.04
Amortization of intangibles 0.65 0.65
Income taxes related to the above(1) (0.18) (0.18)
Non-GAAP Diluted EPS(3) $2.42 $2.52
===== =====
(1) The tax effect of the non-GAAP
adjustments was calculated using the
effective year-to-date tax rate during
the respective periods. The effective tax
rate for fiscal year 2018 excludes the
impact of the transition tax on
accumulated overseas profits and the
remeasurement of deferred tax assets and
liabilities to the new U.S. tax rate
related to the enactment of the Tax Cuts
and Jobs Act of 2017.
(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 Net income for the three and six
months ended May 31, 2018 and 2017. Net
income allocable to participating
securities is estimated to be
approximately 0.9% of the forecast Net
income for the three months ending August
31, 2018.
(3) Amounts may not add due to rounding.
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
ROIC
May 31, 2018 May 31, 2017
------------ ------------
ROIC
Operating
income
(trailing
fiscal
four
quarters) $517,946 $455,553
Income
taxes
on
operating
income(1) (194,700) (154,573)
-------- --------
Operating
income
after
taxes 323,246 300,980
Total
borrowings,
excluding
book
overdraft
(last
five
quarters
average) $1,537,631 $913,007
Total
equity
(last
five
quarters
average) 2,248,738 1,986,402
Less:
U.S.
cash
and
cash
equivalents
(last
five
quarters
average) (132,465) (161,559)
-------- --------
Total
invested
capital 3,653,904 2,737,850
ROIC 8.9% 11.0%
Adjusted ROIC
Non-
GAAP
operating
income
(trailing
fiscal
four
quarters) $625,578 $529,790
Income
taxes
on
Non-
GAAP
operating
income(1) (199,401) (179,555)
-------- --------
Non-
GAAP
operating
income
after
taxes 426,177 350,235
Total
invested
capital $3,653,904 $2,737,850
Tax
effected average)
impact
of
cumulative
non-
GAAP
adjustments
(last
five
quarters 253,203 182,015
------- -------
Total
Non-
GAAP
invested
capital 3,907,107 2,919,865
Adjusted
ROIC 10.9% 12.0%
(1) Income taxes on GAAP and non-GAAP
operating income was calculated using
the effective year-to-date tax
rates during the respective periods.
The effective tax rate for non-GAAP
operating income in fiscal year 2018
excludes the impact of the transition
tax on accumulated overseas profits
and the remeasurement of deferred tax
assets and liabilities to the new
U.S. tax rate related to the
enactment of the Tax Cuts and Jobs
Act of 2017.
Debt to Capitalization
May 31, 2018 May 31, 2017
------------ ------------
Total borrowings, excluding book overdraft (a) $1,810,926 $1,087,703
Total equity (b) 2,311,475 2,116,210
---------
Debt to capitalization (a)/((a)+(b)) 43.9% 33.9%
==== ====
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(continued)
Cash Conversion Cycle
Three Months Ended
May 31, 2018 May 31, 2017
Days sales outstanding
Revenue (products and services) (a) $4,972,583 $3,936,268
Accounts receivable, including receivable from related
parties (b) 2,712,711 1,787,437
---
Days sales outstanding (c) = (b)/((a)/the number 50 42
of days during the period)
Days inventory outstanding
Cost of revenue (products and services) (d) $4,543,489 $3,564,023
Inventories (e) 2,129,779 2,112,590
---
Days inventory outstanding (f) = (e)/((d)/the number 43 55
of days during the period)
Days payable outstanding
Cost of revenue (products and services) (g) $4,543,489 $3,564,023
Accounts payable, including payable to related parties (h) 2,287,954 1,706,408
---
Days payable outstanding (i) = (h)/((g)/the number 46 44
of days during the period)
Cash conversion cycle (j) = (c)+(f)-(i) 47 53
===
View original content with multimedia:http://www.prnewswire.com/news-releases/synnex-corporation-reports-second-quarter-fiscal-2018-results-300674349.html
SOURCE SYNNEX Corporation
