Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SYNNEX CORP | snx-8k_20210111.htm |
Exhibit 99.1
SYNNEX Corporation Reports Fiscal 2020 Fourth Quarter and Full Year Results
Fremont, Calif., January 11, 2021 - SYNNEX Corporation (NYSE: SNX), a leading provider of distribution, systems design and integration services for the technology industry, today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2020.
|
|
|
Q4 FY20 |
|
|
Q4 FY19 |
|
|
Net change |
|
||
|
Revenue ($M) |
|
$ |
7,414 |
|
|
$ |
6,581 |
|
|
12.7% |
|
|
Operating income ($M) |
|
$ |
320.6 |
|
|
$ |
268.3 |
|
|
19.5% |
|
|
Non-GAAP operating income ($M)(1) |
|
$ |
388.2 |
|
|
$ |
338.5 |
|
|
14.7% |
|
|
Operating margin |
|
|
4.32 |
% |
|
|
4.08 |
% |
|
24 bps |
|
|
Non-GAAP operating margin(1) |
|
|
5.24 |
% |
|
|
5.14 |
% |
|
10 bps |
|
|
Net income ($M) |
|
$ |
215.2 |
|
|
$ |
176.0 |
|
|
22.2% |
|
|
Non-GAAP net income ($M)(1) |
|
$ |
270.8 |
|
|
$ |
219.6 |
|
|
23.3% |
|
|
Diluted earnings per common share ("EPS") |
|
$ |
4.14 |
|
|
$ |
3.41 |
|
|
21.4% |
|
|
Non-GAAP Diluted EPS(1) |
|
$ |
5.21 |
|
|
$ |
4.26 |
|
|
22.3% |
|
“We are proud to have delivered record financial results to close our fiscal year while concurrently delivering a successful spin of our Concentrix business on December 1, 2020. We are also energized to enter fiscal 2021 with a renewed singular focus on the market opportunities for our Technology Solutions’ business,” said Dennis Polk, SYNNEX President and CEO. “We look forward to leveraging this positive momentum, coupled with our unique market position and solid financial base, to further optimize our core operation, continue our organic growth efforts and to pursue strategic acquisitions.”
Fourth Quarter Fiscal 2020 Highlights:
|
• |
Technology Solutions: Revenue was $6.1 billion, up 13.9% from the prior fiscal year fourth quarter. Operating income was $200 million, or 3.3% of segment revenue, compared to $167 million, or 3.1% of segment revenue, in the prior fiscal year fourth quarter. Non-GAAP operating income was $216 million, or 3.5% of segment revenue, compared to $178 million, or 3.3% of segment revenue, in the prior fiscal year fourth quarter. |
|
• |
Concentrix: Revenue was $1.3 billion, up 7.3% from the prior fiscal year fourth quarter. Operating income was $120 million, or 9.2% of segment revenue, compared to $101 million, or 8.4% of segment revenue in the prior fiscal year fourth quarter. Non-GAAP operating income was $172 million, or 13.2% of segment revenue, compared to $161 million, or 13.3% of segment revenue, in the prior fiscal year fourth quarter. |
|
• |
The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 9.9% compared to 8.8% in the prior fiscal year fourth quarter. The adjusted trailing fiscal four quarters ROIC was 11.5%. |
|
• |
Cash generated from operations was approximately $297 million for the quarter. |
|
|
|
FY20 |
|
|
FY19 |
|
|
Net change |
|
||
|
Revenue ($M) |
|
$ |
24,676 |
|
|
$ |
23,757 |
|
|
3.9% |
|
|
Operating income ($M) |
|
$ |
830.1 |
|
|
$ |
813.8 |
|
|
2.0% |
|
|
Non-GAAP operating income ($M)(1) |
|
$ |
1,062.4 |
|
|
$ |
1,095.7 |
|
|
-3.0% |
|
|
Operating margin |
|
|
3.36 |
% |
|
|
3.43 |
% |
|
-7 bps |
|
|
Non-GAAP operating margin(1) |
|
|
4.31 |
% |
|
|
4.61 |
% |
|
-30 bps |
|
|
Net income ($M) |
|
$ |
529.2 |
|
|
$ |
500.7 |
|
|
5.7% |
|
|
Non-GAAP net income ($M)(1) |
|
$ |
708.5 |
|
|
$ |
681.5 |
|
|
4.0% |
|
|
Diluted earnings per common share ("EPS") |
|
$ |
10.21 |
|
|
$ |
9.74 |
|
|
4.8% |
|
|
Non-GAAP Diluted EPS(1) |
|
$ |
13.68 |
|
|
$ |
13.26 |
|
|
3.2% |
|
Fiscal 2020 Highlights:
|
• |
Technology Solutions: Revenue was $20.0 billion, up 4.8% from the prior fiscal year. Operating income was $521 million, or 2.6% of segment revenue, compared to $519 million, or 2.7% of segment revenue, in the prior fiscal year. Non-GAAP operating income was $569 million, or 2.9% of segment revenue, in fiscal year 2020, compared to $564 million, or 3.0% of segment revenue, in the prior fiscal year. |
|
• |
Concentrix: Revenue was $4.7 billion, up 0.2% from the prior fiscal. Operating income was $309 million, or 6.5% of segment revenue, compared to $294 million, or 6.3% of segment revenue, in the prior fiscal year. Non-GAAP operating income was $494 million, or 10.5% of segment revenue, in fiscal year 2020, compared to $531 million, or 11.3% of segment revenue, in the prior fiscal year. |
|
• |
Cash generated from operations was approximately $1.844 billion for the year. |
First Quarter Fiscal 2021 Outlook:
The following statements are based on SYNNEX’ current expectations for the fiscal 2021 first quarter. Non-GAAP financial measures exclude the impact of the amortization of intangible assets, share-based compensation and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.
|
• |
Revenue is expected to be in the range of $4.50 billion to $4.80 billion. |
|
• |
Net income is expected to be in the range of $70.3 million to $80.8 million and on a non-GAAP basis, net income is expected to be in the range of $81.0 million to $91.5 million. |
|
• |
After-tax amortization of intangibles is expected to be $7.3 million, or $0.14 per share. |
|
• |
After-tax share-based compensation expense is expected to be $3.4 million, or $0.07 per share. |
Dividend
SYNNEX announced today that its Board of Directors reinstated a quarterly cash dividend of $0.20 per common share. The dividend is payable on January 29, 2021 to stockholders of record as of the close of business on January 22, 2021. The SYNNEX Board of Directors will assess the dividend on an annual basis each January.
Conference Call and Webcast
SYNNEX will host a conference call to discuss the fiscal 2020 fourth quarter results at 2:00 PM (PT)/5:00 PM (ET).
A live audio webcast of the earnings call will be accessible at ir.synnex.com, and a replay of the webcast will be available following the call.
About SYNNEX
SYNNEX Corporation (NYSE: SNX) is a Fortune 200 corporation and a leading provider of a comprehensive range of distribution, systems design and integration services for the technology industry to a wide range of enterprises. 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 synnex.com.
(1)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, non-GAAP net income, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude transaction-related and integration expenses, the amortization of intangible assets and the related tax effects thereon. The Company also uses adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) which excludes other income (expense), net, and transaction-related and integration expenses. In fiscal year 2019, non-GAAP net income and non-GAAP diluted earnings per share also exclude gains upon the settlement of contingent consideration and a contingent gain related to the Westcon-Comstor Americas acquisition. In prior periods, SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures.
Transaction-related expenses typically consist of acquisition, integration, and divestiture related costs and are expensed as incurred. These expenses primarily represent costs for legal, banking, consulting and advisory services, and debt extinguishment fees. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses.
SYNNEX’ acquisition activities have resulted in the recognition of intangible assets which consist primarily of customer relationships, vendor lists and technology. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company’s statements of operations within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company’s products and the services performed for the Company’s clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments which neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire
amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
Effective the first quarter of fiscal year 2021, the Company will also exclude share-based compensation expense in the computation of its non-GAAP financial measures. Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that companies can use when calculating share-based compensation expense, SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period.
Additionally, SYNNEX refers to revenue 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, revenue at constant currency rates or adjusting for currency will be higher or lower than revenue 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 non-GAAP adjustments from operating income and by excluding the cumulative tax effected impact of current and prior period non-GAAP adjustments on equity.
SYNNEX also uses free cash flow, which is cash flow from operating activities, reduced by purchases of property and equipment. SYNNEX uses free cash flow to conduct and evaluate its business because, although it is similar to cash flow from operations, SYNNEX believes it is an additional useful measure of cash flows since purchases of fixed assets are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing SYNNEX’ liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, SYNNEX believes it is important to view free cash flow as a complement to its entire consolidated statements of cash flows.
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 tables 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 forward-looking statements include, but are not limited to, statements regarding strategies and objectives of SYNNEX for future operations; our expectations and outlook for the fiscal 2021 first 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, and after-tax share-based compensation; and the anticipated benefits of the non-GAAP financial measures.
The forward-looking statements 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: the ability to realize the anticipated benefits of the Concentrix separation; the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; 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; the declaration, timing and payment of dividends, and the Board’s reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2019 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 2021 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX and the SYNNEX Logo Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.
Investor Contact:
Liz Morali
ir@synnex.com
510-668-8436
SYNNEX Corporation
Consolidated Balance Sheets
(currency and share amounts in thousands, except par value)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,564,672 |
|
|
$ |
225,529 |
|
|
Accounts receivable, net |
|
|
3,870,789 |
|
|
|
3,926,709 |
|
|
Receivable from vendors, net |
|
|
286,327 |
|
|
|
368,505 |
|
|
Inventories |
|
|
2,684,530 |
|
|
|
2,547,224 |
|
|
Other current assets |
|
|
362,808 |
|
|
|
385,024 |
|
|
Total current assets |
|
|
8,769,127 |
|
|
|
7,452,992 |
|
|
Property and equipment, net |
|
|
609,294 |
|
|
|
569,899 |
|
|
Goodwill |
|
|
2,259,935 |
|
|
|
2,254,402 |
|
|
Intangible assets, net |
|
|
985,006 |
|
|
|
1,162,212 |
|
|
Deferred tax assets |
|
|
87,059 |
|
|
|
97,539 |
|
|
Other assets |
|
|
758,169 |
|
|
|
160,917 |
|
|
Total assets |
|
$ |
13,468,590 |
|
|
$ |
11,697,960 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Borrowings, current |
|
$ |
158,715 |
|
|
$ |
298,969 |
|
|
Accounts payable |
|
|
3,891,815 |
|
|
|
3,149,443 |
|
|
Accrued compensation and benefits |
|
|
522,790 |
|
|
|
402,771 |
|
|
Other accrued liabilities |
|
|
989,684 |
|
|
|
723,716 |
|
|
Income taxes payable |
|
|
67,088 |
|
|
|
32,223 |
|
|
Total current liabilities |
|
|
5,630,092 |
|
|
|
4,607,122 |
|
|
Long-term borrowings |
|
|
2,608,061 |
|
|
|
2,718,267 |
|
|
Other long-term liabilities |
|
|
732,182 |
|
|
|
361,911 |
|
|
Deferred tax liabilities |
|
|
159,396 |
|
|
|
222,210 |
|
|
Total liabilities |
|
|
9,129,731 |
|
|
|
7,909,510 |
|
|
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, 53,671 and 53,154 shares issued as of November 30, 2020 and 2019, respectively |
|
|
54 |
|
|
|
53 |
|
|
Additional paid-in capital |
|
|
1,591,536 |
|
|
|
1,545,421 |
|
|
Treasury stock, 2,538 and 2,399 shares as of November 30, 2020 and 2019, respectively |
|
|
(191,216 |
) |
|
|
(172,627 |
) |
|
Accumulated other comprehensive income (loss) |
|
|
(194,571 |
) |
|
|
(209,077 |
) |
|
Retained earnings |
|
|
3,133,058 |
|
|
|
2,624,680 |
|
|
Total stockholders' equity |
|
|
4,338,860 |
|
|
|
3,788,450 |
|
|
Total liabilities and equity |
|
$ |
13,468,590 |
|
|
$ |
11,697,960 |
|
SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except per share amounts)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
6,118,571 |
|
|
$ |
5,374,241 |
|
|
$ |
19,976,885 |
|
|
$ |
19,069,966 |
|
|
Services |
|
|
1,295,373 |
|
|
|
1,207,052 |
|
|
|
4,698,678 |
|
|
|
4,687,327 |
|
|
Total revenue |
|
|
7,413,944 |
|
|
|
6,581,293 |
|
|
|
24,675,563 |
|
|
|
23,757,293 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
(5,751,929 |
) |
|
|
(5,036,301 |
) |
|
|
(18,783,042 |
) |
|
|
(17,912,711 |
) |
|
Services |
|
|
(838,660 |
) |
|
|
(750,453 |
) |
|
|
(3,044,916 |
) |
|
|
(2,946,664 |
) |
|
Gross profit |
|
|
823,355 |
|
|
|
794,539 |
|
|
|
2,847,604 |
|
|
|
2,897,917 |
|
|
Selling, general and administrative expenses |
|
|
(502,768 |
) |
|
|
(526,251 |
) |
|
|
(2,017,502 |
) |
|
|
(2,084,156 |
) |
|
Operating income |
|
|
320,588 |
|
|
|
268,288 |
|
|
|
830,103 |
|
|
|
813,761 |
|
|
Interest expense and finance charges, net |
|
|
(28,290 |
) |
|
|
(38,726 |
) |
|
|
(127,336 |
) |
|
|
(166,421 |
) |
|
Other income (expense), net |
|
|
(2,004 |
) |
|
|
10,599 |
|
|
|
1,276 |
|
|
|
30,363 |
|
|
Income before income taxes |
|
|
290,294 |
|
|
|
240,161 |
|
|
|
704,042 |
|
|
|
677,703 |
|
|
Provision for income taxes |
|
|
(75,142 |
) |
|
|
(64,160 |
) |
|
|
(174,882 |
) |
|
|
(176,991 |
) |
|
Net income |
|
$ |
215,152 |
|
|
$ |
176,001 |
|
|
$ |
529,160 |
|
|
$ |
500,712 |
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.17 |
|
|
$ |
3.44 |
|
|
$ |
10.28 |
|
|
$ |
9.79 |
|
|
Diluted |
|
$ |
4.14 |
|
|
$ |
3.41 |
|
|
$ |
10.21 |
|
|
$ |
9.74 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
51,048 |
|
|
|
50,693 |
|
|
|
50,900 |
|
|
|
50,669 |
|
|
Diluted |
|
|
51,432 |
|
|
|
51,032 |
|
|
|
51,237 |
|
|
|
50,936 |
|
SYNNEX Corporation
Segment Information
(currency in thousands)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
$ |
6,118,836 |
|
|
$ |
5,374,241 |
|
|
$ |
19,977,150 |
|
|
$ |
19,069,970 |
|
|
Concentrix |
|
|
1,300,858 |
|
|
|
1,212,836 |
|
|
|
4,719,534 |
|
|
|
4,707,912 |
|
|
Inter-segment elimination |
|
|
(5,750 |
) |
|
|
(5,784 |
) |
|
|
(21,121 |
) |
|
|
(20,589 |
) |
|
Consolidated |
|
$ |
7,413,944 |
|
|
$ |
6,581,293 |
|
|
$ |
24,675,563 |
|
|
$ |
23,757,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
$ |
200,380 |
|
|
$ |
166,834 |
|
|
$ |
521,341 |
|
|
$ |
519,429 |
|
|
Concentrix |
|
|
120,208 |
|
|
|
101,454 |
|
|
|
308,761 |
|
|
|
294,332 |
|
|
Consolidated |
|
$ |
320,588 |
|
|
$ |
268,288 |
|
|
$ |
830,103 |
|
|
$ |
813,761 |
|
SYNNEX Corporation
Pro forma SYNNEX Condensed Consolidated Balance Sheet as of November 30, 2020
(currency and shares in thousands, except par value)
(Amounts may not add due to rounding)
(unaudited)
|
|
|
Pro forma SYNNEX |
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,412,016 |
|
|
Accounts receivable, net |
|
|
2,808,125 |
|
|
Receivable from vendors, net |
|
|
286,327 |
|
|
Inventories |
|
|
2,684,076 |
|
|
Other current assets |
|
|
180,343 |
|
|
Total current assets |
|
|
7,370,887 |
|
|
Property and equipment, net |
|
|
157,645 |
|
|
Goodwill |
|
|
423,885 |
|
|
Intangible assets, net |
|
|
186,047 |
|
|
Deferred tax assets |
|
|
39,636 |
|
|
Other assets |
|
|
138,069 |
|
|
Total assets |
|
$ |
8,316,169 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Borrowings, current |
|
$ |
124,958 |
|
|
Accounts payable |
|
|
3,753,634 |
|
|
Accrued compensation and benefits |
|
|
103,075 |
|
|
Other accrued liabilities |
|
|
618,616 |
|
|
Income taxes payable |
|
|
46,363 |
|
|
Total current liabilities |
|
|
4,646,647 |
|
|
Long-term borrowings |
|
|
1,496,700 |
|
|
Other long-term liabilities |
|
|
130,296 |
|
|
Deferred tax liabilities |
|
|
5,836 |
|
|
Total liabilities |
|
|
6,279,478 |
|
|
Stockholders' equity: |
|
|
|
|
|
Common stock, $0.001 par value |
|
|
54 |
|
|
Additional paid-in capital |
|
|
1,591,536 |
|
|
Treasury stock |
|
|
(191,216 |
) |
|
Accumulated other comprehensive income (loss) |
|
|
(190,758 |
) |
|
Retained earnings |
|
|
827,077 |
|
|
Total stockholders' equity |
|
|
2,036,692 |
|
|
Total liabilities and equity |
|
$ |
8,316,169 |
|
On December 1, 2020, SYNNEX Corporation completed the previously announced separation of its customer experience services businesses, which was accomplished by the distribution of one hundred per cent of the outstanding common stock of Concentrix Corporation to SYNNEX stockholders (the “Distribution”). The unaudited pro forma condensed consolidated balance sheet assumes the Distribution occurred on November 30, 2020 and has been prepared by SYNNEX for illustrative and informational purposes only in accordance with Regulation S-X Article 11, Pro Forma Financial Information, as amended by the final rule, Amendments to Financial Disclosures About Acquired and Disposed Businesses, as adopted by the SEC on May 21, 2020. The unaudited pro forma condensed consolidated balance sheet does not purport to project the future financial position of SYNNEX following the completion of the separation.
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, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Revenue in constant currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
7,413,944 |
|
|
$ |
6,581,293 |
|
|
$ |
24,675,563 |
|
|
$ |
23,757,293 |
|
|
Foreign currency translation |
|
|
(3,210 |
) |
|
|
|
|
|
|
108,546 |
|
|
|
|
|
|
Revenue in constant currency |
|
$ |
7,410,734 |
|
|
$ |
6,581,293 |
|
|
$ |
24,784,109 |
|
|
$ |
23,757,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
6,118,836 |
|
|
$ |
5,374,241 |
|
|
$ |
19,977,150 |
|
|
$ |
19,069,970 |
|
|
Foreign currency translation |
|
|
8,318 |
|
|
|
|
|
|
|
87,806 |
|
|
|
|
|
|
Revenue in constant currency |
|
$ |
6,127,154 |
|
|
$ |
5,374,241 |
|
|
$ |
20,064,956 |
|
|
$ |
19,069,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,300,858 |
|
|
$ |
1,212,836 |
|
|
$ |
4,719,534 |
|
|
$ |
4,707,912 |
|
|
Foreign currency translation |
|
|
(11,528 |
) |
|
|
|
|
|
|
20,740 |
|
|
|
|
|
|
Revenue in constant currency |
|
$ |
1,289,330 |
|
|
$ |
1,212,836 |
|
|
$ |
4,740,274 |
|
|
$ |
4,707,912 |
|
|
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
|||||
|
Selling, general and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses |
|
$ |
502,768 |
|
|
$ |
526,251 |
|
|
$ |
2,017,502 |
|
|
$ |
2,084,156 |
|
|
Transaction-related and integration expenses |
|
|
20,546 |
|
|
|
17,872 |
|
|
|
44,879 |
|
|
|
71,454 |
|
|
Amortization of intangibles |
|
|
46,816 |
|
|
|
51,937 |
|
|
|
186,251 |
|
|
|
208,901 |
|
|
Adjusted selling, general and administrative expenses |
|
$ |
435,406 |
|
|
$ |
456,442 |
|
|
$ |
1,786,372 |
|
|
$ |
1,803,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses |
|
$ |
166,277 |
|
|
$ |
171,105 |
|
|
$ |
672,516 |
|
|
$ |
637,830 |
|
|
Transaction-related and integration expenses |
|
|
5,782 |
|
|
|
— |
|
|
|
7,414 |
|
|
|
981 |
|
|
Amortization of intangibles |
|
|
10,018 |
|
|
|
10,907 |
|
|
|
40,148 |
|
|
|
43,875 |
|
|
Adjusted selling, general and administrative expenses |
|
$ |
150,477 |
|
|
$ |
160,198 |
|
|
$ |
624,954 |
|
|
$ |
592,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses |
|
$ |
338,425 |
|
|
$ |
356,977 |
|
|
$ |
1,352,764 |
|
|
$ |
1,454,116 |
|
|
Transaction-related and integration expenses |
|
|
14,764 |
|
|
|
17,872 |
|
|
|
37,465 |
|
|
|
70,473 |
|
|
Amortization of intangibles |
|
|
36,798 |
|
|
|
41,030 |
|
|
|
146,103 |
|
|
|
165,026 |
|
|
Adjusted selling, general and administrative expenses |
|
$ |
286,863 |
|
|
$ |
298,075 |
|
|
$ |
1,169,196 |
|
|
$ |
1,218,617 |
|
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, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Operating income and Operating margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
7,413,944 |
|
|
$ |
6,581,293 |
|
|
$ |
24,675,563 |
|
|
$ |
23,757,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
320,588 |
|
|
$ |
268,288 |
|
|
$ |
830,103 |
|
|
$ |
813,761 |
|
|
Transaction-related and integration expenses |
|
|
20,546 |
|
|
|
17,872 |
|
|
|
44,879 |
|
|
|
71,454 |
|
|
Amortization of intangibles |
|
|
47,111 |
|
|
|
52,332 |
|
|
|
187,431 |
|
|
|
210,481 |
|
|
Non-GAAP operating income |
|
$ |
388,245 |
|
|
$ |
338,492 |
|
|
$ |
1,062,413 |
|
|
$ |
1,095,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
4.32 |
% |
|
|
4.08 |
% |
|
|
3.36 |
% |
|
|
3.43 |
% |
|
Non-GAAP operating margin |
|
|
5.24 |
% |
|
|
5.14 |
% |
|
|
4.31 |
% |
|
|
4.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
$ |
6,118,836 |
|
|
$ |
5,374,241 |
|
|
$ |
19,977,150 |
|
|
$ |
19,069,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
200,380 |
|
|
$ |
166,834 |
|
|
$ |
521,341 |
|
|
$ |
519,429 |
|
|
Transaction-related and integration expenses |
|
|
5,782 |
|
|
|
— |
|
|
|
7,414 |
|
|
|
981 |
|
|
Amortization of intangibles |
|
|
10,018 |
|
|
|
10,907 |
|
|
|
40,148 |
|
|
|
43,875 |
|
|
Non-GAAP operating income |
|
$ |
216,180 |
|
|
$ |
177,741 |
|
|
$ |
568,903 |
|
|
$ |
564,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
3.27 |
% |
|
|
3.10 |
% |
|
|
2.61 |
% |
|
|
2.72 |
% |
|
Non-GAAP operating margin |
|
|
3.53 |
% |
|
|
3.31 |
% |
|
|
2.85 |
% |
|
|
2.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
$ |
1,300,858 |
|
|
$ |
1,212,836 |
|
|
$ |
4,719,534 |
|
|
$ |
4,707,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
120,208 |
|
|
$ |
101,454 |
|
|
$ |
308,761 |
|
|
$ |
294,332 |
|
|
Transaction-related and integration expenses |
|
|
14,764 |
|
|
|
17,872 |
|
|
|
37,465 |
|
|
|
70,473 |
|
|
Amortization of intangibles |
|
|
37,093 |
|
|
|
41,425 |
|
|
|
147,283 |
|
|
|
166,606 |
|
|
Non-GAAP operating income |
|
$ |
172,065 |
|
|
$ |
160,751 |
|
|
$ |
493,509 |
|
|
$ |
531,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
9.24 |
% |
|
|
8.37 |
% |
|
|
6.54 |
% |
|
|
6.25 |
% |
|
Non-GAAP operating margin |
|
|
13.23 |
% |
|
|
13.25 |
% |
|
|
10.46 |
% |
|
|
11.29 |
% |
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, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
215,152 |
|
|
$ |
176,001 |
|
|
$ |
529,160 |
|
|
$ |
500,712 |
|
|
Interest expense and finance charges, net |
|
|
28,290 |
|
|
|
38,726 |
|
|
|
127,336 |
|
|
|
166,421 |
|
|
Provision for income taxes |
|
|
75,142 |
|
|
|
64,160 |
|
|
|
174,882 |
|
|
|
176,991 |
|
|
Depreciation (excluding accelerated depreciation included in transaction-related and integration expenses below) |
|
|
43,067 |
|
|
|
38,273 |
|
|
|
154,048 |
|
|
|
157,277 |
|
|
Amortization of intangibles |
|
|
47,111 |
|
|
|
52,332 |
|
|
|
187,431 |
|
|
|
210,481 |
|
|
EBITDA |
|
$ |
408,762 |
|
|
$ |
369,492 |
|
|
$ |
1,172,857 |
|
|
$ |
1,211,882 |
|
|
Other (income) expense, net (excluding amounts included in transaction-related and integration expenses below) |
|
|
1,834 |
|
|
|
(10,599 |
) |
|
|
(1,964 |
) |
|
|
(30,192 |
) |
|
Transaction-related and integration expenses |
|
|
22,969 |
|
|
|
17,872 |
|
|
|
47,820 |
|
|
|
71,283 |
|
|
Adjusted EBITDA |
|
$ |
433,565 |
|
|
$ |
376,765 |
|
|
$ |
1,218,713 |
|
|
$ |
1,252,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
133,289 |
|
|
$ |
130,808 |
|
|
$ |
337,526 |
|
|
$ |
366,888 |
|
|
Interest expense and finance charges, net |
|
|
19,491 |
|
|
|
18,501 |
|
|
|
79,023 |
|
|
|
74,225 |
|
|
Provision for income taxes |
|
|
42,433 |
|
|
|
28,526 |
|
|
|
98,621 |
|
|
|
106,399 |
|
|
Depreciation |
|
|
7,273 |
|
|
|
5,735 |
|
|
|
24,923 |
|
|
|
22,454 |
|
|
Amortization of intangibles |
|
|
10,018 |
|
|
|
10,907 |
|
|
|
40,148 |
|
|
|
43,875 |
|
|
EBITDA |
|
$ |
212,504 |
|
|
$ |
194,477 |
|
|
$ |
580,241 |
|
|
$ |
613,841 |
|
|
Other (income) expense, net |
|
|
5,167 |
|
|
|
(11,001 |
) |
|
|
6,172 |
|
|
|
(28,083 |
) |
|
Transaction-related and integration expenses |
|
|
8,035 |
|
|
|
— |
|
|
|
9,667 |
|
|
|
981 |
|
|
Adjusted EBITDA |
|
$ |
225,706 |
|
|
$ |
183,476 |
|
|
$ |
596,080 |
|
|
$ |
586,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concentrix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
81,863 |
|
|
$ |
45,193 |
|
|
$ |
191,634 |
|
|
$ |
133,824 |
|
|
Interest expense and finance charges, net |
|
|
8,798 |
|
|
|
20,226 |
|
|
|
48,313 |
|
|
|
92,196 |
|
|
Provision for income taxes |
|
|
32,709 |
|
|
|
35,634 |
|
|
|
76,261 |
|
|
|
70,592 |
|
|
Depreciation (excluding accelerated depreciation included in transaction-related and integration expenses below) |
|
|
35,794 |
|
|
|
32,538 |
|
|
|
129,125 |
|
|
|
134,823 |
|
|
Amortization of intangibles |
|
|
37,093 |
|
|
|
41,425 |
|
|
|
147,283 |
|
|
|
166,606 |
|
|
EBITDA |
|
$ |
196,257 |
|
|
$ |
175,016 |
|
|
$ |
592,616 |
|
|
$ |
598,041 |
|
|
Other (income) expense, net (excluding amounts included in transaction-related and integration expenses below) |
|
|
(3,333 |
) |
|
|
401 |
|
|
|
(8,135 |
) |
|
|
(2,109 |
) |
|
Transaction-related and integration expenses |
|
|
14,934 |
|
|
|
17,872 |
|
|
|
38,153 |
|
|
|
70,302 |
|
|
Adjusted EBITDA |
|
$ |
207,858 |
|
|
$ |
193,289 |
|
|
$ |
622,634 |
|
|
$ |
666,234 |
|
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency and share amounts in thousands, except per share amounts)
(Amounts may not add due to rounding)
(continued)
|
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
215,152 |
|
|
$ |
176,001 |
|
|
$ |
529,160 |
|
|
$ |
500,712 |
|
|
Transaction-related and integration expenses |
|
|
22,969 |
|
|
|
17,872 |
|
|
|
47,820 |
|
|
|
71,283 |
|
|
Amortization of intangibles |
|
|
47,111 |
|
|
|
52,332 |
|
|
|
187,431 |
|
|
|
210,481 |
|
|
Contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19,034 |
) |
|
Acquisition-related contingent gain |
|
|
— |
|
|
|
(11,112 |
) |
|
|
— |
|
|
|
(11,112 |
) |
|
Income taxes related to the above(1) |
|
|
(14,469 |
) |
|
|
(15,492 |
) |
|
|
(55,876 |
) |
|
|
(70,820 |
) |
|
Non-GAAP net income |
|
$ |
270,763 |
|
|
$ |
219,601 |
|
|
$ |
708,535 |
|
|
$ |
681,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share ("EPS")(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
215,152 |
|
|
$ |
176,001 |
|
|
$ |
529,160 |
|
|
$ |
500,712 |
|
|
Less: net income allocated to participating securities |
|
|
2,056 |
|
|
|
1,812 |
|
|
|
5,847 |
|
|
|
4,573 |
|
|
Net income attributable to common stockholders |
|
|
213,096 |
|
|
|
174,189 |
|
|
|
523,313 |
|
|
|
496,139 |
|
|
Transaction-related and integration expenses attributable to common stockholders |
|
|
22,750 |
|
|
|
17,680 |
|
|
|
47,301 |
|
|
|
70,623 |
|
|
Amortization of intangibles attributable to common stockholders |
|
|
46,661 |
|
|
|
51,771 |
|
|
|
185,397 |
|
|
|
208,531 |
|
|
Contingent consideration attributable to common stockholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,858 |
) |
|
Acquisition-related contingent gain attributable to common stockholders |
|
|
— |
|
|
|
(10,993 |
) |
|
|
— |
|
|
|
(11,009 |
) |
|
Income taxes related to the above attributable to common stockholders(1) |
|
|
(14,331 |
) |
|
|
(15,326 |
) |
|
|
(55,270 |
) |
|
|
(70,164 |
) |
|
Non-GAAP net income attributable to common stockholders |
|
$ |
268,176 |
|
|
$ |
217,322 |
|
|
$ |
700,741 |
|
|
$ |
675,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares - diluted: |
|
|
51,432 |
|
|
|
51,032 |
|
|
|
51,237 |
|
|
|
50,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS(2) |
|
$ |
4.14 |
|
|
$ |
3.41 |
|
|
$ |
10.21 |
|
|
$ |
9.74 |
|
|
Transaction-related and integration expenses |
|
|
0.44 |
|
|
|
0.35 |
|
|
|
0.92 |
|
|
|
1.39 |
|
|
Amortization of intangibles |
|
|
0.91 |
|
|
|
1.01 |
|
|
|
3.62 |
|
|
|
4.09 |
|
|
Contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.37 |
) |
|
Acquisition-related contingent gain |
|
|
— |
|
|
|
(0.22 |
) |
|
|
— |
|
|
|
(0.22 |
) |
|
Income taxes related to the above(1) |
|
|
(0.28 |
) |
|
|
(0.30 |
) |
|
|
(1.08 |
) |
|
|
(1.38 |
) |
|
Non-GAAP Diluted EPS |
|
$ |
5.21 |
|
|
$ |
4.26 |
|
|
$ |
13.68 |
|
|
$ |
13.26 |
|
SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(Amounts may not add due to rounding)
(continued)
|
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
(Currency in thousands) |
|
November 30, 2020 |
|
|
November 30, 2019 |
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||||
|
Net cash provided by operating activities |
|
$ |
297,292 |
|
|
$ |
349,280 |
|
|
$ |
1,844,389 |
|
|
$ |
549,918 |
|
|
Purchases of property and equipment |
|
|
(70,617 |
) |
|
|
(45,825 |
) |
|
|
(197,965 |
) |
|
|
(137,423 |
) |
|
Free cash flow |
|
$ |
226,675 |
|
|
$ |
303,455 |
|
|
$ |
1,646,424 |
|
|
$ |
412,495 |
|
|
|
|
Forecast |
|
|||||
|
|
|
Three Months Ending February 28, 2021 |
|
|||||
|
(Amounts in millions, except per share amounts) |
|
Low |
|
|
High |
|
||
|
Net income |
|
$ |
70.3 |
|
|
$ |
80.8 |
|
|
Share-based compensation |
|
|
4.5 |
|
|
|
4.5 |
|
|
Amortization of intangibles |
|
|
9.7 |
|
|
|
9.7 |
|
|
Income taxes related to the above(1) |
|
|
(3.5 |
) |
|
|
(3.5 |
) |
|
Non-GAAP net income |
|
$ |
81.0 |
|
|
$ |
91.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS(2) |
|
$ |
1.34 |
|
|
$ |
1.55 |
|
|
Share-based compensation |
|
|
0.09 |
|
|
|
0.09 |
|
|
Amortization of intangibles |
|
|
0.19 |
|
|
|
0.19 |
|
|
Income taxes related to the above(1) |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
|
Non-GAAP Diluted EPS |
|
$ |
1.55 |
|
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
(1) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the effective year-to-date tax rate during the respective periods.
(2) 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 1.0% of Net income for both the three months ended November 30, 2020 and 2019. Net income allocated to participating securities was approximately 1.1% and 0.9% of Net income for the years ended November 30, 2020 and 2019, respectively. Net income allocable to participating securities is estimated to be approximately 0.9% of the forecast Net income for the three months ending February 28, 2021.
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, 2020 |
|
|
November 30, 2019 |
|
||
|
ROIC |
|
|
|
|
|
|
|
|
|
Operating income (trailing fiscal four quarters) |
|
$ |
830,103 |
|
|
$ |
813,761 |
|
|
Income taxes on operating income(1) |
|
|
(205,035 |
) |
|
|
(211,985 |
) |
|
Operating income after taxes |
|
$ |
625,068 |
|
|
$ |
601,776 |
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings, excluding book overdraft (last five quarters average) |
|
$ |
2,908,153 |
|
|
$ |
3,364,846 |
|
|
Total equity (last five quarters average) |
|
|
3,982,192 |
|
|
|
3,574,562 |
|
|
Less: U.S. cash and cash equivalents (last five quarters average) |
|
|
(583,473 |
) |
|
|
(66,036 |
) |
|
Total invested capital |
|
$ |
6,306,872 |
|
|
$ |
6,873,372 |
|
|
|
|
|
|
|
|
|
|
|
|
ROIC |
|
|
9.9 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROIC |
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (trailing fiscal four quarters) |
|
$ |
1,062,413 |
|
|
$ |
1,095,696 |
|
|
Income taxes on Non-GAAP operating income(1) |
|
|
(259,972 |
) |
|
|
(285,758 |
) |
|
Non-GAAP operating income after taxes |
|
$ |
802,441 |
|
|
$ |
809,938 |
|
|
|
|
|
|
|
|
|
|
|
|
Total invested capital |
|
$ |
6,306,872 |
|
|
$ |
6,873,372 |
|
|
Tax effected impact of cumulative non-GAAP adjustments (last five quarters average) |
|
|
661,518 |
|
|
|
487,394 |
|
|
Total Non-GAAP invested capital |
|
$ |
6,968,390 |
|
|
$ |
7,360,766 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROIC |
|
|
11.5 |
% |
|
|
11.0 |
% |
(1) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods.
Debt to Adjusted EBITDA leverage ratio
|
|
|
|
|
November 30, 2020 |
|
|
November 30, 2019 |
|
||
|
Total borrowings, excluding book overdraft |
|
(a) |
|
$ |
2,766,319 |
|
|
$ |
3,014,152 |
|
|
Less: cash and cash equivalents |
|
(b) |
|
|
1,564,672 |
|
|
|
225,529 |
|
|
Net debt |
|
(c)=(a)-(b) |
|
$ |
1,201,647 |
|
|
$ |
2,788,623 |
|
|
Trailing fiscal four quarters Adjusted EBITDA |
|
(d) |
|
$ |
1,218,713 |
|
|
$ |
1,252,973 |
|
|
Debt to Adjusted EBITDA leverage ratio |
|
(e)=(a)/(d) |
|
|
2.3 |
|
|
|
2.4 |
|
|
Net debt to Adjusted EBITDA leverage ratio |
|
(f)=(c)/(d) |
|
|
1.0 |
|
|
|
2.2 |
|
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, 2020 |
|
|
November 30, 2019 |
|
||
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding |
|
|
|
|
|
|
|
|
|
|
|
Revenue (products and services) |
|
(a) |
|
$ |
7,413,944 |
|
|
$ |
6,581,293 |
|
|
Accounts receivable, net |
|
(b) |
|
|
3,870,789 |
|
|
|
3,926,709 |
|
|
Days sales outstanding |
|
(c) = (b)/((a)/the number of days during the period) |
|
|
48 |
|
|
|
54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days inventory outstanding |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (products and services) |
|
(d) |
|
$ |
6,590,589 |
|
|
$ |
5,786,754 |
|
|
Inventories |
|
(e) |
|
|
2,684,530 |
|
|
|
2,547,224 |
|
|
Days inventory outstanding |
|
(f) = (e)/((d)/the number of days during the period) |
|
|
37 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days payable outstanding |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (products and services) |
|
(g) |
|
$ |
6,590,589 |
|
|
$ |
5,786,754 |
|
|
Accounts payable |
|
(h) |
|
|
3,891,815 |
|
|
|
3,149,443 |
|
|
Days payable outstanding |
|
(i) = (h)/((g)/the number of days during the period) |
|
|
54 |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash conversion cycle |
|
(j) = (c)+(f)-(i) |
|
|
31 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions |
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding |
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
(a) |
|
$ |
6,118,836 |
|
|
$ |
5,374,241 |
|
|
Accounts receivable, net |
|
(b) |
|
|
2,808,125 |
|
|
|
2,995,610 |
|
|
Days sales outstanding |
|
(c) = (b)/((a)/the number of days during the period) |
|
|
42 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days inventory outstanding |
|
|
|
|
|
|
|
|
|
|
|
Segment cost of revenue |
|
(d) |
|
$ |
5,752,179 |
|
|
$ |
5,036,301 |
|
|
Inventories |
|
(e) |
|
|
2,684,076 |
|
|
|
2,546,115 |
|
|
Days inventory outstanding |
|
(f) = (e)/((d)/the number of days during the period) |
|
|
42 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days payable outstanding |
|
|
|
|
|
|
|
|
|
|
|
Segment cost of revenue |
|
(g) |
|
$ |
5,752,179 |
|
|
$ |
5,036,301 |
|
|
Accounts payable |
|
(h) |
|
|
3,753,634 |
|
|
|
3,104,886 |
|
|
Days payable outstanding |
|
(i) = (h)/((g)/the number of days during the period) |
|
|
59 |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash conversion cycle |
|
(j) = (c)+(f)-(i) |
|
|
25 |
|
|
|
41 |
|