SYNNEX Corporation Reports First Quarter Fiscal 2019 Results
FREMONT, Calif., March 27, 2019 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal first quarter ended February 28, 2019.
Q1 FY19 Q1 FY18(2)
Net change
Revenue ($M) $
5,249 $
4,493 16.8%
Operating income ($M) $
162.0 $
111.5 45.3%
Non-GAAP operating income ($M)(1) $
242.7 $
140.0 73.3%
Operating margin 3.09% 2.48%
61 bps
Non-GAAP operating margin(1) 4.62% 3.12%
150 bps
Net income ($M) $
87.1 $
24.1 261.5%
Non-GAAP net income ($M)(1) $
145.9 $
86.0 69.6%
Diluted EPS $
1.69 $
0.60 181.7%
Non-GAAP Diluted EPS(1) $
2.84 $
2.13 33.3%
(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 charge 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.
(2) Adjusted to reflect the adoption
of the new guidance on revenue
recognition, on a full retrospective
basis. Impact of adoption of the new
guidance on the Consolidated
Statement of Operations is presented
in the supplementary information
section at the end of this press
release.
"We are off to a great start for fiscal 2019. Our results reflect our recent investments producing returns as well as our core businesses continuing to operate very well," said Dennis Polk, SYNNEX President and CEO. "Most significant was the performance of our Concentrix business. In the first full quarter since our Convergys acquisition, the team delivered solid financial results while managing integration and providing outstanding customer service."
First Quarter Fiscal 2019 Highlights:
-- Technology Solutions: Revenue was $4.1 billion, up 2.3% from the prior
fiscal year first quarter. Operating income was $101 million, or 2.5% of
segment revenue, compared to $82 million, or 2.1% of segment revenue, in
the prior fiscal year first quarter. Non-GAAP operating income was $113
million, or 2.8% of segment revenue, compared to $96 million, or 2.4% of
segment revenue, in the prior fiscal year first quarter.
-- Concentrix: Revenue was $1.2 billion, up 131.1% from the prior fiscal
year first quarter as a result of the Convergys acquisition on October
5, 2018. Operating income was $61 million, or 5.2% of segment revenue,
compared to $30 million, or 5.8% of segment revenue in the prior fiscal
year first quarter. Non-GAAP operating income was $130 million, or 11.1%
of segment revenue, compared to $44 million, or 8.6% of segment revenue,
in the prior fiscal year first quarter.
-- The trailing fiscal four quarters Return on Invested Capital ("ROIC")
was 8.7% compared to 8.5% in the prior fiscal year first quarter. The
adjusted trailing fiscal four quarters ROIC was 10.9%.
Second Quarter Fiscal 2019 Outlook:
The following statements are based on SYNNEX' current expectations for the second quarter fiscal 2019. 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 $5.40 billion to $5.70
billion.
-- Net income is expected to be in the range of $85.3 million to $93.9
million and on a non-GAAP basis, net income is expected to be in the
range of $134.9 million to $143.5 million.
-- Diluted earnings per share is expected to be in the range of $1.65 to
$1.82 and on a non-GAAP basis, diluted earnings per share is expected to
be in the range of $2.62 to $2.78, based on estimated outstanding
diluted weighted average shares of 51.1 million.
-- After-tax amortization of intangibles is expected to be $38.2 million,
or $0.74 per share.
-- After-tax acquisition-related and integration expense is expected to be
$11.4 million, or $0.22 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 April 26, 2019 to stockholders of record as of the close of business on April 12, 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):
To Listen via Telephone:
Passcode for the call is "SNX"
(866) 393-4306 / (734) 385-2616 (International Callers)
To Listen via Internet:
Live webcast of the earnings call will be available at http://ir.synnex.com. A replay will be available at approximately two hours after the earnings call has concluded.
About SYNNEX
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. 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.
About Concentrix
Concentrix, a wholly-owned subsidiary of SYNNEX Corporation (NYSE: SNX), is a technology-enabled global business services company specializing in customer engagement and improving business performance for some of the world's best brands. Every day, from more than 40 countries and across 6 continents, our staff delivers next generation customer experience and helps companies better connect with their customers. We create better business outcomes and help differentiate our clients through technology, design, data, process, and people. Concentrix provides services to clients in ten industry verticals: automotive; banking and financial services; insurance; healthcare; technology; consumer electronics; media and communications; retail and e-commerce; travel and transportation; energy and public-sector. We are Different by Design. Visit www.concentrix.com to learn more.
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 SYNNEX' 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 and the impact of the U.S. tax reform adjustment on 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 SYNNEX' consolidated financial statements prepared in accordance with GAAP. A reconciliation of SYNNEX' GAAP to non-GAAP financial information 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 2019 and the fiscal second quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, outstanding diluted weighted average shares, tax rate, after-tax amortization of intangibles after-tax acquisition-related and integration expenses, integration of the Convergys acquisition, 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, 2018 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. DIFFERENT BY DESIGN is a trademark or registered trademark of Concentrix Corporation. 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)
February 28, 2019 November 30, 2018
---
ASSETS (Adjusted)(1)
Current assets:
Cash and cash equivalents and
restricted cash $
249,301 $
461,820
Accounts receivable, net 3,167,301 3,640,496
Receivable from vendors, net 264,660 351,744
Inventories 2,430,392 2,392,559
Other current assets 317,500 316,197
Total current assets 6,429,154 7,162,817
Property and equipment, net 568,549 571,326
Goodwill 2,201,650 2,203,316
Intangible assets, net 1,328,801 1,377,305
Deferred tax assets 79,063 76,508
Other assets 154,119 152,227
Total assets $
10,761,335 $
11,543,498
===
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current $
701,083 $
833,216
Accounts payable 2,187,706 3,048,102
Accrued compensation and benefits 320,023 358,352
Other accrued liabilities 606,678 672,635
Income taxes payable 64,989 41,322
Total current liabilities 3,880,479 4,953,627
Long-term borrowings 2,827,616 2,622,782
Other long-term liabilities 346,640 325,119
Deferred tax liabilities 196,160 206,916
Total liabilities 7,250,894 8,108,444
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, 52,895 and 52,861 shares
issued as of February 28, 2019 and November
30, 2018, respectively 53 53
Additional paid-in capital 1,519,523 1,512,201
Treasury stock, 2,175 and 2,167 shares as of
February 28, 2019 and November 30, 2018,
respectively (150,242) (149,533)
Accumulated other comprehensive income
(loss) (127,399) (126,288)
Retained earnings 2,268,508 2,198,621
Total stockholders' equity 3,510,442 3,435,054
Total liabilities and equity $
10,761,335 $
11,543,498
===
(1)
Amounts have been adjusted to
reflect the adoption of
Accounting Standards Update
2014-09, Revenue from Contracts
with Customers (Topic 606) on a
full retrospective basis.
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
February 28, 2019 February 28, 2018
Revenue: (Adjusted)(1)
Products $
4,080,684 $
3,989,743
Services 1,168,769 503,607
Total revenue 5,249,453 4,493,350
Cost of revenue:
Products (3,833,117) (3,765,512)
Services (737,415) (314,323)
Gross profit 678,921 413,515
Selling, general and administrative expenses (516,958) (302,019)
Operating income 161,963 111,496
Interest expense and finance charges, net (41,606) (17,451)
Other income (expense), net (695) (1,178)
Income before income taxes 119,662 92,867
Provision for income taxes (32,556) (68,769)
Net income $
87,106 $
24,098
Earnings per common share:
Basic $
1.70 $
0.60
Diluted $
1.69 $
0.60
Weighted-average common shares outstanding:
Basic 50,706 39,695
Diluted 50,927 39,978
(1)
Amounts have been adjusted to
reflect the adoption of
Accounting Standards Update
2014-09, Revenue from Contracts
with Customers (Topic 606) on a
full retrospective basis.
SYNNEX Corporation
Segment Information
(currency in thousands)
(Amounts may not add due to rounding)
(unaudited)
Three Months Ended
February 28, 2019 February 28, 2018
Revenue: (Adjusted)(1)
Technology Solutions $
4,080,684 $
3,989,799
Concentrix 1,173,271 507,737
Inter-segment elimination (4,502) (4,186)
Consolidated $
5,249,453 $
4,493,350
Operating income:
Technology Solutions $
101,372 $
81,833
Concentrix 60,591 29,663
Consolidated $
161,963 $
111,496
(1)
Amounts have been adjusted to
reflect the adoption of
Accounting Standards Update
2014-09, Revenue from Contracts
with Customers (Topic 606) on a
full retrospective basis.
SYNNEX Corporation
Impact of adoption of Accounting Standards Codification ("ASC") Topic 606 on Revenue and Earnings
(currency in thousands, except for per share amounts)
(Amounts may not add due to rounding)
(unaudited)
Three Months Ended
February 28, 2019 February 28, 2018
Revenue
Consolidated
Revenue as previously reported $
4,552,370
Impact of adoption of ASC Topic 606 (59,020)
Revenue in accordance with ASC Topic 606(1) $
5,249,453 $
4,493,350
Technology Solutions
Revenue as previously reported $
4,048,819
Impact of adoption of ASC Topic 606 (59,020)
Revenue in accordance with ASC Topic 606(1) $
4,080,684 $
3,989,799
Concentrix
Revenue as previously reported $
507,737
Impact of adoption of ASC Topic 606
Revenue in accordance with ASC Topic 606(1) $
1,173,271 $
507,737
(1)
In accordance with
revenue recognition guidance on
Principal versus Agent
considerations, in circumstances
where SYNNEX assumed an agency
relationship, approximately $841,000
and $684,000 during the three months
ended February 28, 2019 and 2018,
respectively, were offset against
cost of sales to present the margin
earned on these transactions in
revenue, with no associated cost of
revenue.
Three Months Ended February 28, 2018
Consolidated Statement of Operations As reported As adjusted
Revenue:
Products $
4,048,763 $
3,989,743
Services 503,607 503,607
Total revenue 4,552,370 4,493,350
Cost of revenue:
Products (3,824,096) (3,765,512)
Services (314,323) (314,323)
Gross profit 413,951 413,515
Selling, general and administrative expenses (302,019) (302,019)
Operating income 111,932 111,496
Interest expense and finance charges, net (17,451) (17,451)
Other income (expense), net (1,178) (1,178)
Income before income taxes 93,303 92,867
Provision for income taxes (68,869) (68,769)
Net income $
24,434 $
24,098
Earnings per common share:
Basic $
0.61 $
0.60
Diluted $
0.61 $
0.60
Non-GAAP financial measures
Non-GAAP operating income $
140,447 $
140,011
GAAP operating margin 2.46 2.48
% %
Non-GAAP operating margin 3.09 3.12
% %
Non-GAAP net income $
86,347 $
86,002
Non-GAAP diluted EPS $
2.14 $
2.13
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(Amounts may not add due to rounding)
Three Months Ended
February 28, 2019 February 28, 2018
Revenue in constant currency (Adjusted)(1)
Consolidated
Revenue $
5,249,453 $
4,493,350
Foreign currency translation 51,088
Revenue in constant currency $
5,300,541 $
4,493,350
Technology Solutions
Revenue $
4,080,684 $
3,989,799
Foreign currency translation 36,733
Revenue in constant currency $
4,117,417 $
3,989,799
Concentrix
Revenue $
1,173,271 $
507,737
Foreign currency translation 14,355
Revenue in constant currency $
1,187,626 $
507,737
Three Months Ended
February 28, 2019 February 28, 2018
Selling, general and administrative expenses (Adjusted)(1)
Consolidated
GAAP selling, general and administrative expenses $
516,958 $
302,019
Acquisition-related and integration expenses 27,849 1,805
Amortization of intangibles 52,457 26,291
Adjusted selling, general and administrative expenses $
436,652 $
273,923
Technology Solutions
GAAP selling, general and administrative expenses $
146,195 $
142,454
Acquisition-related and integration expenses 332 1,805
Amortization of intangibles 10,994 12,816
Adjusted selling, general and administrative expenses $
134,869 $
127,833
Concentrix
GAAP selling, general and administrative expenses $
372,718 $
161,242
Acquisition-related and integration expenses 27,517
Amortization of intangibles 41,463 13,475
Adjusted selling, general and administrative expenses $
303,738 $
147,767
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
(Amounts may not add due to rounding)
(continued)
Three Months Ended
February 28, 2019 February 28, 2018
Operating income and Operating margin (Adjusted)(1)
Consolidated
Revenue $
5,249,453 $
4,493,350
GAAP operating income $
161,963 $
111,496
Acquisition-related and integration expenses 27,849 1,805
Amortization of intangibles 52,857 26,710
Non-GAAP operating income $
242,669 $
140,011
Depreciation 41,517 21,924
Adjusted EBITDA $
284,186 $
161,935
GAAP operating margin 3.09 2.48
% %
Non-GAAP operating margin 4.62 3.12
% %
Technology Solutions
Segment revenue $
4,080,684 $
3,989,799
GAAP operating income $
101,372 $
81,833
Acquisition-related and integration expenses 332 1,805
Amortization of intangibles 10,994 12,816
Non-GAAP operating income $
112,698 $
96,454
Depreciation 5,369 4,834
Adjusted EBITDA $
118,067 $
101,288
GAAP operating margin 2.48 2.05
% %
Non-GAAP operating margin 2.76 2.42
% %
Concentrix
Segment revenue $
1,173,271 $
507,737
GAAP operating income $
60,591 $
29,663
Acquisition-related and integration expenses 27,517
Amortization of intangibles 41,863 13,894
Non-GAAP operating income $
129,971 $
43,557
Depreciation 36,148 17,090
Adjusted EBITDA $
166,119 $
60,647
GAAP operating margin 5.16 5.84
% %
Non-GAAP operating margin 11.08 8.58
% %
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
February 28, 2019 February 28, 2018
---
Net income (Adjusted)(1)
Net income $
87,106 $
24,098
Acquisition-related and integration expenses 27,849 1,805
Amortization of intangibles 52,857 26,710
Income taxes related to the above(2) (21,960) (8,312)
U.S. tax reform adjustment 41,701
Non-GAAP net income $
145,852 $
86,002
Diluted earnings per common share ("EPS")(3)
Net income $
87,106 $
24,098
Less: net income allocated to participating securities (786) (219)
Net income attributable to common stockholders $
86,320 $
23,879
Acquisition-related and integration expenses attributable to common stockholders 27,597 1,789
Amortization of intangibles attributable to common stockholders 52,379 26,467
Income taxes related to the above attributable to common stockholders(2) (21,762) (8,237)
U.S. tax reform adjustment attributable to common stockholders 41,322
Non-GAAP net income attributable to common stockholders $
144,535 $
85,221
Weighted-average number of common shares - diluted: $
50,927 $
39,978
===
Diluted EPS(3) $
1.69 $
0.60
Acquisition-related and integration expenses 0.54 0.04
Amortization of intangibles 1.03 0.66
Income taxes related to the above(2) (0.43) (0.21)
U.S. tax reform adjustment 1.03
Non-GAAP Diluted EPS $
2.84 $
2.13
===
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 May 31, 2019
Low High
Net income $
85.3 $
93.9
Acquisition-related and integration expenses 15.6 15.6
Amortization of intangibles 52.3 52.3
Income taxes related to the above(2) (18.3) (18.3)
Non-GAAP net income $
134.9 $
143.5
Diluted EPS(3) $
1.65 $
1.82
Acquisition-related and integration expenses 0.30 0.30
Amortization of intangibles 1.02 1.02
Income taxes related to the above(2) (0.36) (0.36)
Non-GAAP Diluted EPS $
2.62 $
2.78
(1)
Adjusted to reflect the
adoption of the new guidance on revenue
recognition, on a full retrospective
basis.
(2) 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.
(3)
Diluted EPS 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 both the three
months ended February 28, 2019 and 2018.
Net income allocable to participating
securities is estimated to be
approximately 0.9% of the forecast Net
income for the three months ending May 31,
2019.
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(Amounts may not add or compute due to rounding)
Return on Invested Capital ("ROIC")
February 28, 2019 February 28, 2018
ROIC
Operating income
(trailing
fiscal four
quarters)(1) $
601,067 $
518,702
Income taxes on operating
income(2) (150,308) (227,335)
Operating income
after taxes(1) $
450,759 $
291,367
Total
borrowings,
excluding book
overdraft (last
five quarters
average) $
2,480,909 $
1,376,742
Total equity (last five
quarters average) 2,780,608 2,195,460
Less: U.S. cash and cash
equivalents (last five
quarters average) (84,668) (122,885)
Total invested
capital $
5,176,849 $
3,449,317
ROIC 8.7
% 8.5
%
Adjusted ROIC
Non-GAAP
operating
income
(trailing
fiscal four
quarters)(1) $
822,722 $
614,081
Income taxes on Non-GAAP
operating income(2) (219,922) (209,362)
Non-GAAP
operating
income after
taxes(1) $
602,800 $
404,719
Total invested
capital $
5,176,849 $
3,449,317
Tax effected impact of
cumulative non-GAAP
adjustments (last five
quarters average) 357,053 231,878
Total Non-GAAP
invested
capital $
5,533,902 $
3,681,195
Adjusted ROIC 10.9 11.0
% %
(1) GAAP and non-GAAP operating
income included in the trailing
fiscal four quarters calculation
reflects the adoption of ASC Topic
606 for the fiscal quarters ended
February 28, 2019 and 2018. GAAP and
non-GAAP operating income for other
quarters included in the trailing
fiscal four quarters calculation are
based on amounts as previously
reported.
(2) 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 Adjusted EBITDA leverage ratio
February 28, 2019 February 28, 2018
Total borrowings,
excluding book
overdraft
(a) $
3,518,332 $
1,802,666
Trailing fiscal four
quarters Adjusted
EBITDA(1)
(b) 943,270 697,250
Debt to Adjusted
EBITDA leverage ratio
(c)=(a)/(b) 3.7 2.6
(1) Adjusted EBITDA included
in the trailing fiscal four
quarters calculation
reflects the adoption of
ASC Topic 606 for the
fiscal quarters ended
February 28, 2019 and 2018.
Adjusted EBITDA for other
quarters included in the
trailing fiscal four
quarters calculation is
based on amounts as
previously reported.
SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(continued)
Cash Conversion Cycle
Three Months Ended
February 28, 2019 February 28, 2018
(Amounts in thousands)
Days sales outstanding (Adjusted)
Revenue (products
and services)
(a) $
5,249,453 $
4,493,350
Accounts
receivable, net
(b) 3,167,301 2,501,209
Days sales
outstanding
(c) = (b)/((a)/the 54 50
number of days
during the period)
Days inventory outstanding
Cost of revenue
(products and
services)
(d) $
4,570,532 $
4,079,835
Inventories
(e) 2,430,392 2,183,903
Days inventory
outstanding
(f) = (e)/((d)/the 48 48
number of days
during the period)
Days payable outstanding
Cost of revenue
(products and
services)
(g) $
4,570,532 $
4,079,835
Accounts payable
(h) 2,187,706 2,448,478
Days payable
outstanding
(i) = (h)/((g)/the 43 54
number of days
during the period)
Cash conversion
cycle
(j) = (c)+(f)-(i) 59 44
Investor Contact:
Mary Lai
Investor Relations
SYNNEX Corporation
marylai@synnex.com
(510) 668-8436
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SOURCE SYNNEX Corporation
