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Published: 2022-08-23 16:14:55 ET
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EX-99.1 2 scscexhibit9916302022.htm EX-99.1 Document

Exhibit 99.1


FOR IMMEDIATE RELEASE
Contact:  
Steve Jones Mary M. Gentry
Senior EVP, Chief Financial OfficerSVP, Treasurer and Investor Relations
ScanSource, Inc. ScanSource, Inc.
(864) 286-4302 (864) 286-4892

SCANSOURCE REPORTS FOURTH QUARTER AND
FISCAL YEAR 2022 RESULTS
Strong Demand and Outstanding Execution by our Team

GREENVILLE, SC -- August 23, 2022 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the fourth quarter and fiscal year ended June 30, 2022. All results in this release reflect continuing operations only unless otherwise noted.

Fourth Quarter SummaryFiscal Year Summary
Q4 FY22Q4 FY21ChangeFY22FY21Change
(in thousands, except per share data)
Select reported measures:
Net sales$962,283 $852,694 12.9%$3,529,935 $3,150,806 12.0%
Gross profit$110,792 $95,778 15.7%$426,524 $350,716 21.6%
Gross profit margin %11.51 %11.23 %28bp12.08 %11.13 %95bp
Operating income$27,424 $23,283 17.8%$122,167 $61,483 98.7%
GAAP net income$19,947 $20,657 -3.4%$88,698 $45,389 95.4%
GAAP diluted EPS$0.78 $0.80 -2.5%$3.44 $1.78 93.3%
Select Non-GAAP measures:
Adjusted EBITDA$38,672 $35,299 9.6%$166,723 $117,949 41.4%
Adjusted EBITDA margin %4.02 %4.14 %-12bp4.72 %3.74 %98bp
Non-GAAP net income$23,266 $24,522 -5.1%$102,140 $69,868 46.2%
Non-GAAP diluted EPS$0.91 $0.96 -5.2%$3.97 $2.74 44.9%

"Our exceptional fiscal year 2022 results demonstrate the success of the new ScanSource and faster growth of our recurring revenue," said Mike Baur, Chairman and CEO, ScanSource, Inc. "Our hybrid distribution strategy of devices and digital is winning, as evidenced by our 12% net sales growth. We exceeded our full-year 2022 outlook for net sales growth and achieved record adjusted EBITDA."

Quarterly Results
Net sales for the fourth quarter of fiscal year 2022 totaled $962.3 million, up 12.9% year-over-year, or 12.2% year-over-year for organic growth, with strong demand in both segments. Fourth quarter fiscal year 2022 net sales in the Specialty Technology Solutions segment increased 12.6% year-over-year, or 12.4% year-over-year for organic growth, to $580.6 million, driven by broad-based demand across technologies and execution by our people. Fourth quarter fiscal year 2022 net sales in Modern Communications & Cloud increased 13.2% year-over-year, or 11.9% year-over-year for organic growth, to $381.7 million, primarily due to increased demand across our communications solutions.

Gross profit for the fourth quarter of fiscal year 2022 totaled $110.8 million, up 15.7% year-over-year. The increase is primarily due to higher sales volume and higher vendor program recognition compared to the prior-year quarter. Gross profit margin increased to 11.51% for the fourth quarter of fiscal year 2022, up from 11.23% in the prior-year quarter.

1

Exhibit 99.1

For the fourth quarter of fiscal year 2022, operating income increased to $27.4 million from $23.3 million in the prior-year quarter. Fourth quarter fiscal year 2022 non-GAAP operating income increased to $31.9 million for a 3.31% non-GAAP operating income margin, compared to $28.4 million and a 3.33% non-GAAP operating margin for the prior-year quarter.

On a GAAP basis, net income for the fourth quarter of fiscal year 2022 totaled $19.9 million, or $0.78 per diluted share, compared to net income of $20.7 million, or $0.80 per diluted share, for the prior-year quarter. Fourth quarter fiscal year 2022 non-GAAP net income totaled $23.3 million, or $0.91 per diluted share. These results compare to fourth quarter fiscal year 2021 non-GAAP net income of $24.5 million, or $0.96 per diluted share, which includes a $0.19 benefit from discrete tax items.

Adjusted EBITDA for the fourth quarter of fiscal year 2022 increased 9.6% to $38.7 million, or 4.02% of net sales, compared to $35.3 million, or 4.14%, of net sales in the prior-year quarter. Adjusted return on invested capital totaled 14.9% for fourth quarter fiscal year 2022, compared to 16.0% in the prior-year quarter, primarily from increased average invested capital for the current year quarter.

Full-Year Results

For fiscal year 2022, net sales increased 12.0% to $3.5 billion, or a 11.8% year-over-year increase on an organic basis. Fiscal year 2022 net sales in the Specialty Technology Solutions segment increased 14.7% year-over-year, or 14.6% year-over-year for organic growth, to $2.1 billion, driven by broad-based demand across technologies and execution by our people. Fiscal year 2022 net sales in the Modern Communications & Cloud segment increased 8.4% year-over-year, or 7.9% year-over-year for organic growth, to $1.4 billion, primarily due to increased demand across our communications solutions.

Gross profit for the fiscal year 2022 totaled $426.5 million, up 21.6% year-over-year. The increase is primarily due to higher sales volume and higher vendor program recognition compared to the prior year. Gross profit margin increased to 12.1%, up from 11.1% in the prior-year.

For the fiscal year ended June 30, 2022, operating income increased to $122.2 million from $61.5 million in the prior-year. Fiscal year 2022 non-GAAP operating income increased to $140.1 million for a 4.0% non-GAAP operating margin, up from $93.1 million and a 3.0% non-GAAP operating margin for the prior-year.

On a GAAP basis, net income for the fiscal year ended June 30, 2022 totaled $88.7 million, or $3.44 per diluted share, compared to net income of $45.4 million, or $1.78 per diluted share for the prior-year. Fiscal year 2022 non-GAAP net income totaled $102.1 million, or $3.97 per diluted share, compared to $69.9 million, or $2.74 per diluted share for the prior-year.

Adjusted EBITDA for the fiscal year ended June 30, 2022 increased to $166.7 million, or 4.7% of net sales, compared to $117.9 million, or 3.7% of net sales for the prior-year, primarily due to higher gross profits. Adjusted return on invested capital increased to 17.0% for the fiscal year, compared to 12.6% the prior year, driven by higher profitability.

Annual Financial Outlook for Fiscal Year 2023

The following guidance is based on ScanSource's current expectations for the full fiscal year ended June 30, 2023.

FY23 Annual Outlook
Net sales growth, year-over-yearAt least 5.5%
Adjusted EBITDA (non-GAAP)At least $174 million

Adjusted EBITDA is a non-GAAP measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash share-based compensation expense. ScanSource’s outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments, or other significant transactions that may be completed after the date hereof. These statements are forward-looking, and actual results may differ materially.

Webcast Details and Earnings Infographic
At approximately 4:15 p.m. ET today, an Earnings Infographic, as a supplement to this press release and the Company's conference call, will be available on ScanSource's website, www.scansource.com (Investor Relations section). ScanSource will present additional information about its financial results and business in a conference call today, August 23, 2022, at 5:00 p.m.
2

Exhibit 99.1

ET. A webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains “forward-looking” statements, including the Company's FY23 outlook, which involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, failure to hire and retain quality employees, risk to the Company's business from a cyber-security attack, supply chain challenges, the failure to manage and implement the Company's organic growth strategy, economic weakness and inflation, a failure of the Company's IT systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting the Company's international operations, credit risks involving the Company's larger customers and suppliers, loss of the Company's major customers, termination of the Company's relationship with key suppliers or a significant modification of the terms under which it operates with a key supplier, changes in the Company's operating strategy, and other factors set forth in the "Risk Factors" contained in the Company's annual report on Form 10-K for the year ended June 30, 2022, filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company also discloses certain non-GAAP financial measures, which are summarized below. Non-GAAP financial measures are used to understand and evaluate performance, including comparisons from period to period. Non-GAAP results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition costs, restructuring costs and other non-GAAP adjustments.

Net sales on a constant currency basis, excluding acquisitions (organic growth): The Company discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions prior to the first full year from the acquisition date. This measure enhances the comparability between periods to help analyze underlying trends on an organic basis.

Additional Non-GAAP Metrics: To evaluate current period performance on a more consistent basis with prior periods, the Company discloses non-GAAP SG&A expenses, non-GAAP operating income, non-GAAP net income and non-GAAP diluted earnings per share (non-GAAP diluted "EPS"). Non-GAAP results exclude amortization of intangible assets related to acquisitions, changes in fair value of contingent consideration, acquisition and divestiture costs, impairment charges, restructuring costs, and other non-GAAP adjustments. These year-over-year metrics include the translation impact of changes in foreign currency exchange rates. Non-GAAP metrics are useful in assessing and understanding the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods.

Adjusted earnings before interest expense, income taxes, depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, changes in fair value of contingent considerations, and other non-GAAP adjustments, including acquisition and divestiture costs, impairment charges, and restructuring costs. Effective with the first quarter of fiscal year 2022, non-cash share-based compensation expense is also added back in calculating Adjusted EBITDA. Since Adjusted EBITDA excludes some non-cash costs of investing in our business and people, management believes that Adjusted EBITDA shows the profitability from our business operations more clearly. The presentation for Adjusted EBITDA for all periods presented has been recast to reflect this change to enhance comparability between periods.

Adjusted return on invested capital ("Adjusted ROIC"): Adjusted ROIC assists management in comparing the Company's performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance. We believe the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of our performance. Adjusted ROIC is calculated as Adjusted EBITDA over invested capital. Invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. Management believes the calculation of Adjusted ROIC provides useful information to investors and is an additional relevant comparison of the Company's performance during the year.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that the Company reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of
3

financial performance prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial information to GAAP is set forth in the Supplementary Information (Unaudited) below.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for partners across hardware, SaaS, connectivity and cloud. ScanSource enables partners to deliver solutions for their customers to address changing end-user buying and consumption patterns. ScanSource sells through multiple, specialized routes-to-market with hardware, SaaS, connectivity and cloud services offerings from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource was named one of the 2022 Best Places to Work in South Carolina and on FORTUNE magazine’s 2022 List of World’s Most Admired Companies. ScanSource ranks #773 on the Fortune 1000. For more information, visit www.scansource.com.
4
ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
June 30, 2022June 30, 2021*
Assets
Current assets:
Cash and cash equivalents$37,987 $62,718 
Accounts receivable, less allowance of $16,806 at June 30, 2022
and $19,341 at June 30, 2021
729,442 568,984 
Inventories614,814 470,081 
Prepaid expenses and other current assets141,562 117,860 
Total current assets1,523,805 1,219,643 
Property and equipment, net37,477 42,836 
Goodwill214,435 218,877 
Identifiable intangible assets, net84,427 104,860 
Deferred income taxes15,668 21,853 
Other non-current assets61,616 63,615 
Total assets$1,937,428 $1,671,684 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$714,177 $634,805 
Accrued expenses and other current liabilities88,455 87,790 
Income taxes payable34 2,501 
Current portion of long-term debt11,598 7,843 
Total current liabilities814,264 732,939 
Deferred income taxes3,144 3,954 
Long-term debt, net of current portion123,733 135,331 
Borrowings under revolving credit facility135,839 — 
Other long-term liabilities53,920 68,269 
Total liabilities1,130,900 940,493 
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000 shares authorized, none issued
— — 
Common stock, no par value; 45,000,000 shares authorized, 25,187,351 and 25,499,465 shares issued and outstanding at June 30, 2022 and June 30, 2021, respectively
64,297 71,253 
Retained earnings846,869 758,071 
Accumulated other comprehensive loss(104,638)(98,133)
Total shareholders’ equity806,528 731,191 
Total liabilities and shareholders’ equity$1,937,428 $1,671,684 
*Derived from audited financial statements.
5
ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
 Quarter ended June 30,Fiscal year ended June 30,
 2022202120222021
Net sales$962,283 $852,694 $3,529,935 $3,150,806 
Cost of goods sold851,491 756,916 3,103,411 2,800,090 
Gross profit110,792 95,778 426,524 350,716 
Selling, general and administrative expenses75,905 64,758 275,442 247,438 
Depreciation expense3,023 2,898 11,062 12,533 
Intangible amortization expense4,440 4,893 17,853 19,488 
Restructuring and other charges— (54)— 9,258 
Change in fair value of contingent consideration— — — 516 
Operating income27,424 23,283 122,167 61,483 
Interest expense1,886 1,643 6,523 6,929 
Interest income(1,360)(1,341)(4,333)(3,097)
Other (income) expense, net684 (65)1,354 116 
Income before income taxes26,214 23,046 118,623 57,535 
Provision for income taxes6,267 2,389 29,925 12,146 
Net income from continuing operations19,947 20,657 88,698 45,389 
Net income (loss) from discontinued operations— 3,053 100 (34,594)
Net income$19,947 $23,710 $88,798 $10,795 
Per share data:
Net income from continuing operations per common share, basic$0.79 $0.81 $3.48 $1.79 
Net income (loss) from discontinued operations per common share, basic— 0.12 — (1.36)
Net income per common share, basic$0.79 $0.93 $3.48 $0.42 
Weighted-average shares outstanding, basic25,286 25,482 25,504 25,423 
Net income from continuing operations per common share, diluted$0.78 $0.80 $3.44 $1.78 
Net income (loss) from discontinued operations per common share, diluted— 0.12 — (1.36)
Net income per common share, diluted$0.78 $0.92 $3.45 $0.42 
Weighted-average shares outstanding, diluted25,584 25,664 25,758 25,518 

6
ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Quarter ended June 30,Fiscal year ended June 30,
2022202120222021
Cash flows from operating activities:
Net income$19,947 $23,710 $88,798 $10,795 
Net income (loss) from discontinued operations— 3,053 100 (34,594)
Net income from continuing operations19,947 20,657 88,698 45,389 
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
Depreciation and amortization7,701 8,090 29,884 33,507 
Amortization of debt issue costs104 104 417 417 
Provision for doubtful accounts1,357 112 1,514 338 
Share-based compensation2,872 2,328 11,663 8,039 
Deferred income taxes3,742 2,941 5,737 2,916 
Change in fair value of contingent consideration— — — 516 
Contingent consideration payments excess— — — (5,457)
Finance lease interest1 23 34 119 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable(98,535)(50,204)(165,939)(118,859)
Inventories(27,613)(6,394)(145,962)(12,301)
Prepaid expenses and other assets(12,369)(17,111)(27,371)(18,753)
Other non-current assets3,914 7,102 1,123 9,948 
Accounts payable15,434 105,511 82,969 175,120 
Accrued expenses and other liabilities7,876 (8,928)(4,869)(493)
Income taxes payable(3,115)(2,886)(2,252)(3,679)
Net cash (used in) provided by operating activities of continuing operations(78,684)61,345 (124,354)116,767 
Cash flows from investing activities of continuing operations:
Capital expenditures(3,523)(80)(6,849)(2,363)
Cash received for business disposal— — 3,125 34,356 
Net cash (used in) provided by investing activities of continuing operations(3,523)(80)(3,724)31,993 
Cash flows from financing activities of continuing operations:
Borrowings on revolving credit, net of expenses572,139 395,215 2,166,409 1,881,679 
Repayments on revolving credit, net of expenses(480,593)(449,017)(2,030,569)(1,949,392)
Repayments on long-term debt, net(1,875)(1,875)(7,843)(7,839)
Repayments of finance lease obligations(306)(320)(1,238)(1,294)
Contingent consideration payments— — — (41,393)
Exercise of stock options712 12 2,304 451 
Taxes paid on settlement of equity awards(26)— (2,754)(1,036)
Common stock repurchased(9,676)— (18,203)— 
Net cash provided by (used in) financing activities of continuing operations80,375 (55,985)108,106 (118,824)
7
ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
ScanSource, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited), continued
(in thousands)
Cash flows from discontinued operations:
Net cash flows provided by operating activities of discontinued operations— 2,469 — 24,173 
Net cash flows used in investing activities of discontinued operations— — — (58)
Net cash flows used in financing activities of discontinued operations— — — (29,494)
Net cash flows used in discontinued operations— 2,469 — (5,379)
Effect of exchange rate changes on cash and cash equivalents(3,720)5,648 (4,759)3,706 
(Decrease) Increase in cash and cash equivalents(5,552)13,397 (24,731)28,263 
Consolidated cash and cash equivalents at beginning of period43,539 49,321 62,718 34,455 
Consolidated cash and cash equivalents at end of period37,987 62,718 37,987 62,718 
Cash and cash equivalents of discontinued operations— — — — 
Cash and cash equivalents of continuing operations$37,987 $62,718 $37,987 $62,718 
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ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results


ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except percentages)
Non-GAAP Financial Information:
Quarter ended June 30,Fiscal year ended June 30,
2022202120222021
Adjusted return on invested capital ratio (Adjusted ROIC), annualized(a)
14.9 %16.0 %17.0 %12.6 %
Reconciliation of Net Income to Adjusted EBITDA:
Net income from continuing operations (GAAP)$19,947$20,657$88,698$45,389
Plus: Interest expense1,8861,6436,5236,929
Plus: Income taxes6,2672,38929,92512,146
Plus: Depreciation and amortization7,7008,09029,88433,507
EBITDA (non-GAAP)35,80032,779155,03097,971
Plus: Share-based compensation2,8722,32811,6638,039
Plus: Acquisition and divestiture costs(b)
—246302,376
Plus: Restructuring costs—(54)—9,047
Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP)$38,672$35,299$166,723$117,949
Invested Capital Calculations:
Equity – beginning of the quarter$806,654$690,575$731,191$678,246
Equity – end of the quarter806,528731,191806,528731,191
Plus: Share-based compensation, net2,1341,912
Plus: Acquisition and divestiture costs(b)
—207302,337
Plus: Restructuring, net—(40)—6,840
Plus: Discontinued operations net (income) loss—(3,053)(100)34,594
Average equity807,658710,396773,179729,825
Average funded debt (c)
233,445177,074209,114202,869
Invested capital (denominator for Adjusted ROIC) (non-GAAP)$1,041,103$887,470$982,293$932,694
(a) The annualized adjusted EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 90 days in the current and prior-year quarter.
(b) Acquisition and divestiture costs are generally nondeductible for tax purposes.
(c) Average funded debt, which includes both continuing and discontinued operations, is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt.
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ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
Quarter ended June 30,
20222021% Change
Specialty Technology Solutions:(in thousands)
Net sales, reported$580,619 $515,445 12.6 %
Foreign exchange impact (a)
(1,338)— 
Non-GAAP net sales, constant currency$579,281 $515,445 12.4 %
Modern Communications & Cloud:
Net sales, reported$381,664 $337,249 13.2 %
Foreign exchange impact (a)
(4,447)— 
Non-GAAP net sales, constant currency$377,217 $337,249 11.9 %
Consolidated:
Net sales, reported$962,283 $852,694 12.9 %
Foreign exchange impact (a)
(5,785)— 
Non-GAAP net sales, constant currency$956,498 $852,694 12.2 %
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended June 30, 2022 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2021.
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Segment:
Fiscal year ended June 30,
20222021% Change
Specialty Technology Solutions(in thousands)
Net sales, reported$2,082,321 $1,815,933 14.7 %
Foreign exchange impact (a)
(1,710)— 
Non-GAAP net sales, constant currency$2,080,611 $1,815,933 14.6 %
Modern Communications & Cloud
Net sales, reported$1,447,614 $1,334,873 8.4 %
Foreign exchange impact (a)
(7,115)— 
Non-GAAP net sales, constant currency$1,440,499 $1,334,873 7.9 %
Consolidated:
Net sales, reported$3,529,935 $3,150,806 12.0 %
Foreign exchange impact (a)
(8,825)— 
Non-GAAP net sales, constant currency$3,521,110 $3,150,806 11.8 %
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the fiscal year ended June 30, 2022 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2021.
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ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Quarter ended June 30,
20222021% Change
United States and Canada:(in thousands)
Net sales, as reported$865,737 $771,403 12.2 %
International:
Net sales, reported$96,546 $81,291 18.8 %
Foreign exchange impact(a)
(5,785)— 
Non-GAAP net sales, constant currency$90,761 $81,291 11.6 %
Consolidated:
Net sales, reported$962,283 $852,694 12.9 %
Foreign exchange impact(a)
(5,785)— 
Non-GAAP net sales, constant currency$956,498 $852,694 12.2 %
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended June 30, 2022 into U.S. dollars using the average foreign exchange rates for the quarter ended June 30, 2021.

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
Net Sales by Geography:
Fiscal year ended June 30,
20222021% Change
United States and Canada:(in thousands)
Net sales, as reported$3,173,694 $2,840,731 11.7 %
International:
Net sales, reported$356,241 $310,075 14.9 %
Foreign exchange impact(a)
(8,825)— 
Non-GAAP net sales, constant currency$347,416 $310,075 12.0 %
Consolidated:
Net sales, reported$3,529,935 $3,150,806 12.0 %
Foreign exchange impact(a)
(8,825)— 
Non-GAAP net sales, constant currency$3,521,110 $3,150,806 11.8 %
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the fiscal year ended June 30, 2022 into U.S. dollars using the average foreign exchange rates for the fiscal year ended June 30, 2021.

11
ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
Quarter ended June 30, 2022
GAAP MeasureIntangible amortization expenseAcquisition and divestiture costsRestructuring costsNon-GAAP measure
(in thousands, except per share data)
SG&A expenses$75,905 $— $— $— $75,905 
Operating income27,424 4,440 — — 31,864 
Net income19,947 3,319 — — 23,266 
Diluted EPS$0.78 $0.13 $— $— $0.91 
Quarter ended June 30, 2021
GAAP MeasureIntangible amortization expenseAcquisition and divestiture costsRestructuring costsNon-GAAP measure
(in thousands, except per share data)
SG&A expense$64,758 $— $(246)$— $64,512 
Operating income23,283 4,893 246 (54)28,368 
Net income20,657 3,698 207 (40)24,522 
Diluted EPS$0.80 $0.14 $0.01 $— $0.96 
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ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results
Year ended June 30, 2022
Reported GAAP MeasureIntangible amortization expenseChange in fair value of contingent considerationAcquisition and divestiture costsRestructuring costsNon-GAAP measure
(in thousands, except per share data)
SG&A expense$275,442 $— $— $(30)$— $275,412 
Operating income122,167 17,853 — 30 — 140,050 
Net income88,698 13,412 — 30 — 102,140 
Diluted EPS$3.44 $0.52 $— $— $— $3.97 
Year ended June 30, 2021
Reported GAAP MeasureIntangible amortization expenseChange in fair value of contingent considerationAcquisition and divestiture costsRestructuring costsNon-GAAP measure
(in thousands, except per share data)
SG&A expense$247,438 $— $— $(2,376)$— $245,062 
Operating income61,483 19,488 516 2,376 9,258 93,121 
Net income45,389 14,753 390 2,337 6,999 69,868 
Diluted EPS$1.78 $0.58 $0.02 $0.09 $0.27 $2.74 
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ScanSource Reports Fourth Quarter and Fiscal Year 2022 Results



ScanSource, Inc. and Subsidiaries
Supplementary Forward-Looking Information (Unaudited)
Annual Financial Outlook for Fiscal Year 2023:
FY23 Outlook
GAAP, Operating incomeAt least $132 million
Intangible amortization$17 million
Depreciation expense$12 million
Share-based compensation expense$12 million
Interest income and other income (expense), net$1 million
Adjusted EBITDA (non-GAAP)At least $174 million
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