SYNNEX Corporation Reports Fiscal 2018 Fourth Quarter and Full Year Results
FREMONT, Calif., Jan. 10, 2019 /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, 2018.
Q4 FY18 Q4 FY17 Net change
Revenue ($M) $5,622 $5,312 5.8%
Operating income ($M) $198.3 $159.9 24.0%
Non-GAAP operating income ($M)(1) $265.1 $192.9 37.4%
Operating margin 3.53% 3.01%
52 bps
Non-GAAP operating margin(1) 4.72% 3.63%
108 bps
Net income ($M) $113.2 $91.1 24.3%
Non-GAAP net income ($M)(1) $171.5 $112.4 52.5%
Diluted EPS $2.41 $2.26 6.6%
Non-GAAP Diluted EPS(1) $3.65 $2.79 30.8%
(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 an
adjustment related to repatriation tax
and the remeasurement of deferred
taxes. A reconciliation of GAAP to Non-
GAAP financial measures is presented in
the supplementary information section
at the end of this press release.
"Our record results continued in the fourth quarter as a result of strong demand in Technology Solutions and outstanding performance from Concentrix," said Dennis Polk, President and Chief Executive Officer, SYNNEX Corporation. "Superior execution by our team and leveraging the strategic investments we have made enabled the strong finish to fiscal 2018. We look forward to driving additional value for all our constituents in 2019."
Fiscal 2018 Fourth Quarter Highlights:
-- Technology Solutions: Revenue was $4.7 billion, down 2.7% from the prior
fiscal year fourth quarter. Operating income was $123 million, or 2.6%
of segment revenue, compared to $112 million, or 2.3% of segment
revenue, in the prior fiscal year fourth quarter. Non-GAAP operating
income was $136 million, or 2.9% of segment revenue, in the fiscal
fourth quarter of 2018, compared to $128 million, or 2.7% of segment
revenue, in the prior fiscal year fourth quarter.
-- Concentrix: Revenue was $972 million, up 82.0% from the prior fiscal
year fourth quarter as a result of the Convergys acquisition on October
5(th). Operating income was $75 million, or 7.7% of segment revenue,
compared to $48 million, or 8.9% of segment revenue in the prior fiscal
year fourth quarter. Non-GAAP operating income was $129 million, or
13.2% of segment revenue, in the fiscal fourth quarter of 2018, compared
to $65 million, or 12.1% of segment revenue, in the prior fiscal year
fourth quarter.
-- The trailing fiscal four quarters Return on Invested Capital ("ROIC")
was 7.9% compared to 10.3% in the prior fiscal year fourth quarter. The
adjusted trailing fiscal four quarters ROIC was 10.8%.
-- Depreciation and amortization were $34 million and $45 million,
respectively.
-- Cash generated from operations was approximately $141 million for the
quarter.
FY18 FY17 Net change
Revenue ($M) $20,054 $17,046 17.6%
Operating income ($M) $551.0 $509.0 8.3%
Non-GAAP operating income ($M)(1) $720.5 $592.9 21.5%
Operating margin 2.75% 2.99%
(24) bps
Non-GAAP operating margin(1) 3.59% 3.48%
11 bps
Net income ($M) $300.6 $301.2 -0.2%
Non-GAAP Net income ($M)(1) $455.4 $355.6 28.1%
Diluted EPS $7.19 $7.51 -4.3%
Non-GAAP Diluted EPS(1) $10.89 $8.86 22.9%
(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 an
adjustment related to repatriation tax
and the remeasurement of deferred
taxes. A reconciliation of GAAP to Non-
GAAP financial measures is presented in
the supplementary information section
at the end of this press release.
Fiscal 2018 Highlights:
-- Technology Solutions: Revenue was $17.6 billion, up 16.8% from the prior
fiscal year. Operating income was $406 million, or 2.3% of segment
revenue, compared to $394 million, or 2.6% of segment revenue, in the
prior fiscal year. Non-GAAP operating income was $464 million, or 2.6%
of segment revenue, in fiscal year 2018, compared to $413 million, or
2.7% of segment revenue, in the prior fiscal year.
-- Concentrix: Revenue was $2.5 billion, up 23.8% from the prior fiscal
year as a result of the Convergys acquisition on October 5(th).
Operating income was $145 million, or 5.9% of segment revenue, compared
to $115 million, or 5.8% of segment revenue, in the prior fiscal year.
Non-GAAP operating income was $257 million, or 10.4% of segment revenue,
in fiscal year 2018, compared to $180 million, or 9.0% of segment
revenue, in the prior fiscal year.
-- Depreciation and amortization were $101 million and $124 million,
respectively.
-- Cash generated from operations was approximately $101 million for the
year.
Fiscal 2019 First Quarter Outlook:
The following statements are based on SYNNEX's current expectations for the fiscal 2019 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 $5.225 billion to $5.425
billion.
-- Net income is expected to be in the range of $88.1 million to $93.1
million and, on a Non-GAAP basis, net income is expected to be in the
range of $138.9 million to $143.9 million.
-- Diluted earnings per share is expected to be in the range of $1.71 to
$1.81 and, on a Non-GAAP basis, diluted earnings per share is expected
to be in the range of $2.70 to $2.80.
-- After-tax amortization of intangibles is expected to be $37.7 million,
or $0.73 per share.
-- After-tax acquisition-related and integration expense is expected to be
$13.1 million, or $0.25 per share.
Dividend Announcement
SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.375 per common share. The dividend is payable on January 31, 2019 to stockholders of record as of the close of business on January 22, 2019.
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 (866) 393-4306 in North America or (734) 385-2616 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) 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 an adjustment relating to the enactment of the Tax Cuts and Jobs Act of 2017. This adjustment includes a transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate.
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 that 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 our expectations and outlook for the fiscal 2019 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 after-tax acquisition-related and integration expenses, frequency and occurrence of dividend declarations, as well as statements regarding additional value for constituents, 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 estimated financial impact of the Convergys acquisition; 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 2019 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.
SYNNEX Corporation
Consolidated Balance Sheets
(currency and share amounts in thousands)
(Amounts may not add due to rounding)
(unaudited)
November 30, 2018 November 30, 2017
---
ASSETS
Current assets:
Cash and cash equivalents $
454,694 $
550,688
Restricted cash 7,126 5,837
Short-term investments 2,581 5,475
Accounts receivable, net 3,855,431 2,846,371
Receivable from related parties 65 77
Inventories 2,518,319 2,162,626
Other current assets 261,536 168,704
Total current assets 7,099,753 5,739,778
Property and equipment, net 571,326 346,589
Goodwill 2,203,316 872,641
Intangible assets, net 1,377,305 583,051
Deferred tax assets 76,508 31,687
Other assets 152,227 124,780
Total assets $
11,480,434 $
7,698,526
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current $
833,216 $
805,471
Accounts payable 3,025,197 2,626,720
Payable to related parties 22,905 16,888
Accrued compensation and benefits 358,352 204,665
Other accrued liabilities 613,449 354,104
Income taxes payable 41,322 33,359
Total current liabilities 4,894,441 4,041,207
Long-term borrowings 2,622,782 1,136,089
Other long-term liabilities 325,119 124,008
Deferred tax liabilities 206,024 113,527
Total liabilities 8,048,366 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, 52,861 and 41,092 shares issued as of
November 30, 2018 and 2017, respectively 51 41
Additional paid-in capital 1,512,203 467,948
Treasury stock, 2,167 and 1,419 shares as of
November 30, 2018 and 2017, respectively (149,533) (77,133)
Accumulated other comprehensive income (loss) (126,288) (61,919)
Retained earnings 2,195,635 1,954,758
Total stockholders' equity 3,432,068 2,283,695
Total liabilities and equity $
11,480,434 $
7,698,526
SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except for per share amounts)
(Amounts may not add due to rounding)
(unaudited)
Three Months Ended
Fiscal Year Ended
November 30, November 30, November 30, November 30,
2018 2017 2018 2017
---
Revenue:
Products $
4,654,642 $
4,781,408 $
17,608,897 $
15,070,871
Services 967,559 530,469 2,444,867 1,974,829
Total revenue 5,622,201 5,311,877 20,053,764 17,045,700
Cost of revenue:
Products (4,383,245) (4,525,904) (16,611,595) (14,262,094)
Services (587,472) (324,005) (1,514,470) (1,232,666)
Gross profit 651,485 461,968 1,927,699 1,550,940
Selling, general and
administrative
expenses (453,215) (302,108) (1,376,664) (1,041,975)
Operating income 198,270 159,860 551,036 508,965
Interest expense and
finance charges,
net (30,791) (18,459) (84,675) (45,357)
Other income
(expense), net (5,487) (202) (8,984) 1,123
Income before income
taxes 161,992 141,199 457,377 464,731
Provision for income
taxes (48,811) (50,126) (156,779) (163,558)
Net income $
113,180 $
91,073 $
300,598 $
301,173
Earnings per common share:
Basic $
2.42 $
2.28 $
7.23 $
7.54
Diluted $
2.41 $
2.26 $
7.19 $
7.51
Weighted-average common shares
outstanding:
Basic 46,429 39,635 41,215 39,556
Diluted 46,633 39,867 41,451 39,758
Cash dividends
declared per share $
0.35 $
0.30 $
1.40 $
1.05
SYNNEX Corporation
Segment Information
(currency in thousands)
(Amounts may not add due to rounding)
(unaudited)
Three Months Ended
Fiscal Year Ended
November 30, November 30, November 30, November 30,
2018 2017 2018 2017
---
Revenue:
Technology
Solutions $
4,654,646 $
4,781,491 $
17,608,982 $
15,071,185
Concentrix 972,286 534,363 2,463,151 1,990,180
Inter-segment
elimination (4,730) (3,977) (18,369) (15,665)
Consolidated $
5,622,201 $
5,311,877 $
20,053,764 $
17,045,700
Operating income:
Technology
Solutions $
122,924 $
112,226 $
406,274 $
394,320
Concentrix 75,346 47,634 144,761 114,623
Inter-segment
elimination - 22
Consolidated $
198,270 $
159,860 $
551,036 $
508,965
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(Amounts may not add due to rounding)
Three Months Ended
Fiscal Year Ended
November 30, November 30, November 30, November 30,
2018 2017 2018 2017
---
Revenue in Constant Currency
Consolidated
Revenue $
5,622,201 $
5,311,877 $
20,053,764 $
17,045,700
Foreign currency
translation 44,623 (18,539)
Revenue in constant
currency $
5,666,824 $
5,311,877 $
20,035,225 $
17,045,700
Technology Solutions
Segment revenue $
4,654,646 $
4,781,491 $
17,608,982 $
15,071,185
Foreign currency
translation 32,307 (13,247)
Revenue in constant
currency $
4,686,953 $
4,781,491 $
17,595,735 $
15,071,185
Concentrix
Segment revenue $
972,286 $
534,363 $
2,463,151 $
1,990,180
Foreign currency
translation 12,316 (5,292)
Revenue in constant
currency $
984,602 $
534,363 $
2,457,859 $
1,990,180
Three Months Ended
Fiscal Year Ended
November 30, November 30, November 30, November 30,
2018 2017 2018 2017
---
Selling, general and administrative
expenses
Consolidated
GAAP selling, general
and administrative
expenses $
453,215 $
302,108 $
1,376,664 $
1,041,975
Acquisition-related
and integration
expenses 21,713 3,144 45,132 4,781
Amortization of
intangibles 44,662 29,516 122,544 77,500
Adjusted selling,
general and
administrative
expenses $
386,840 $
269,448 $
1,208,988 $
959,694
Technology Solutions
GAAP selling, general
and administrative
expenses $
148,476 $
143,356 $
591,106 $
414,763
Acquisition-related
and integration
expenses 1,293 3,019 7,642 3,724
Amortization of
intangibles 12,205 12,968 50,007 14,929
Adjusted selling,
general and
administrative
expenses $
134,978 $
127,369 $
533,457 $
396,110
Concentrix
GAAP selling, general
and administrative
expenses $
306,670 $
160,398 $
792,791 $
634,530
Acquisition-related
and integration
expenses 20,420 125 37,490 1,057
Amortization of
intangibles 32,457 16,548 72,537 62,571
Adjusted selling,
general and
administrative
expenses $
253,793 $
143,725 $
682,764 $
570,902
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(Amounts may not add due to rounding)
(continued)
Three Months Ended
Fiscal Year Ended
November 30, November 30, November 30, November 30,
2018 2017 2018 2017
---
Operating income and Operating margin
Consolidated
Revenue $
5,622,201 $
5,311,877 $
20,053,764 $
17,045,700
GAAP operating income $
198,270 $
159,860 $
551,036 $
508,965
Acquisition-related
and integration
expenses 21,713 3,144 45,132 4,781
Amortization of
intangibles 45,149 29,937 124,332 79,181
Non-GAAP operating
income $
265,132 $
192,941 $
720,500 $
592,927
Depreciation 33,924 21,647 100,955 80,705
Adjusted EBITDA $
299,056 $
214,588 $
821,455 $
673,632
GAAP operating margin 3.53
% 3.01
% 2.75
% 2.99
%
Non-GAAP operating
margin 4.72
% 3.63
% 3.59
% 3.48
%
Technology Solutions
Segment revenue $
4,654,646 $
4,781,491 $
17,608,982 $
15,071,185
GAAP operating income $
122,924 $
112,226 $
406,274 $
394,320
Acquisition-related
and integration
expenses 1,293 3,019 7,642 3,724
Amortization of
intangibles 12,205 12,968 50,007 14,929
Non-GAAP operating
income $
136,422 $
128,213 $
463,923 $
412,973
Depreciation 5,625 4,703 20,681 15,111
Adjusted EBITDA $
142,047 $
132,916 $
484,604 $
428,084
GAAP operating margin 2.64
% 2.35
% 2.31
% 2.62
%
Non-GAAP operating
margin 2.93
% 2.68
% 2.63
% 2.74
%
Concentrix
Segment revenue $
972,286 $
534,363 $
2,463,151 $
1,990,180
GAAP operating income $
75,346 $
47,634 $
144,761 $
114,623
Acquisition-related
and integration
expenses 20,420 125 37,490 1,057
Amortization of
intangibles 32,944 16,969 74,325 64,252
Non-GAAP operating
income $
128,710 $
64,728 $
256,576 $
179,932
Depreciation 28,299 16,944 80,274 65,617
Adjusted EBITDA $
157,009 $
81,672 $
336,850 $
245,549
GAAP operating margin 7.75
% 8.91
% 5.88
% 5.76
%
Non-GAAP operating 13.24 12.11
margin % % 10.42
% 9.04
%
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency and share amounts in thousands, except for per share amounts)
(Amounts may not add due to rounding)
(continued)
Three Months Ended Fiscal Year Ended
November 30, November 30, November 30, November 30,
2018 2017 2018 2017
---
Net income
Net income $
113,180 $
91,073 $
300,598 $
301,173
Acquisition-related and integration
expenses 21,713 3,144 42,498 4,781
Amortization of intangibles 45,149 29,937 124,332 79,181
Income taxes related to the above(1) (16,930) (11,711) (45,111) (29,550)
U.S. tax reform adjustment 8,410 33,111
Non-GAAP net income $
171,522 $
112,443 $
455,428 $
355,585
Diluted earnings per common share ("EPS")
(2)
Net income $
113,180 $
91,073 $
300,598 $
301,173
Less: net income allocated to
participating securities (977) (836) (2,721) (2,778)
Net income attributable to common
stockholders 112,203 90,237 297,877 298,395
Acquisition-related and integration
expenses attributable to common
stockholders 21,515 3,115 42,106 4,737
Amortization of intangibles attributable
to common stockholders 44,737 29,661 123,186 78,448
Income taxes related to the above
attributable to common stockholders(1) (16,775) (11,603) (44,695) (29,277)
U.S. tax reform adjustment attributable
to common stockholders 8,333 32,806
Non-GAAP net income attributable to
common stockholders $
170,013 $
111,410 $
451,279 $
352,303
Weighted-average number of common
shares - diluted: 46,633 39,867 41,451 39,758
Diluted EPS(2) $
2.41 $
2.26 $
7.19 $
7.51
Acquisition-related and integration
expenses 0.46 0.08 1.02 0.12
Amortization of intangibles 0.96 0.74 2.97 1.97
Income taxes related to the above(1) (0.36) (0.29) (1.08) (0.74)
U.S. tax reform adjustment attributable
to common stockholders 0.18 0.79
Non-GAAP Diluted EPS $
3.65 $
2.79 $
10.89 $
8.86
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(amounts in millions, except for per share amounts)
(Amounts may not add due to rounding)
(continued)
Forecast
Three Months Ending February 28, 2019
Low High
Net income
Net income $
88.1 $
93.1
Acquisition-related
and integration
expenses 18.2 18.2
Amortization of
intangibles 52.4 52.4
Income taxes related
to the above(1) (19.8) (19.8)
Non-GAAP net income $
138.9 $
143.9
Diluted EPS(2) $
1.71 $
1.81
Acquisition-related
and integration
expenses 0.35 0.35
Amortization of
intangibles 1.02 1.02
Income taxes related
to the above(1) (0.39) (0.39)
Non-GAAP Diluted EPS $
2.70 $
2.80
(1) The tax effect of the non-GAAP
adjustments was calculated using the
effective year-to date tax rate during
the respective fiscal years. 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 months
and the years ended November 30, 2018 and
2017. Net income allocable to
participating securities is estimated to
be approximately 0.9% of Net income for
the three months ending February 28, 2019.
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(Amounts may not add or compute due to rounding)
Return on Invested Capital ("ROIC")
November 30, 2018 November 30, 2017
---
ROIC
Operating income
(Trailing
fiscal four
quarters) $
551,036 $
508,965
Income taxes on
operating
income(1) (188,895) (179,105)
Operating income
after taxes $
362,141 $
329,860
Total
borrowings,
excluding book
overdraft (last
five quarters
average) $
2,164,694 $
1,208,330
Total equity
(last five
quarters
average) 2,534,008 2,126,159
Less: U.S. cash
and cash
equivalents
(last five
quarters
average) (134,377) (132,881)
Total invested
capital $
4,564,325 $
3,201,608
ROIC 7.9
% 10.3
%
Adjusted ROIC
Non-GAAP
operating
income
(Trailing
fiscal four
quarters) $
720,500 $
592,927
Income taxes on
Non-GAAP
operating
income(1) (194,823) (208,652)
Non-GAAP
operating
income after
taxes $
525,677 $
384,275
Total invested
capital $
4,564,325 $
3,201,608
Tax effected
impact of
cumulative non-
GAAP
adjustments
(last five
quarters
average) 314,343 208,615
Total Non-GAAP
invested
capital $
4,878,668 $
3,410,223
Adjusted ROIC 10.8
% 11.3
%
(1) Income taxes on GAAP
and non-GAAP operating
income was calculated
using the effective GAAP
and non-GAAP tax rates
during the quarters
included in the respective
trailing four quarter
periods.
Debt to Capitalization
November 30, 2018 November 30, 2017
Total borrowings,
excluding book
overdraft
(a) $
3,451,006 $
1,937,253
Total equity
(b) 3,432,068 2,283,695
Debt to capitalization
(a)/((a)+(b)) 50.1
% 45.9
%
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(Amounts may not add or compute due to rounding)
(continued)
Cash Conversion Cycle
Three Months Ended
November 30, 2018 November 30, 2017
Days sales outstanding
Revenue (products
and services)
(a) $
5,622,201 $
5,311,877
Accounts
receivable,
including
receivable from
related parties
(b) 3,855,496 2,846,448
Days sales
outstanding
(c) = (b)/((a)/the number of 62 49
days during the period)
Days inventory outstanding
Cost of revenue
(products and
services)
(d) $
4,970,717 $
4,849,909
Inventories
(e) 2,518,319 2,162,626
Days inventory
outstanding
(f) = (e)/((d)/the number of 46 41
days during the period)
Days payable outstanding
Cost of revenue
(products and
services)
(g) $
4,970,717 $
4,849,909
Accounts payable,
including
payable to
related parties
(h) 3,048,102 2,643,608
Days payable
outstanding
(i) = (h)/((g)/the number of 56 50
days during the period)
Cash conversion
cycle
(j) = (c)+(f)-(i) 52 40
Investor Contact:
Marshall Witt
SYNNEX Corporation
marshallwitt@synnex.com
Telephone: (510) 668-3837
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SOURCE SYNNEX Corporation
