Wed Oct 3, 2018 3:20pm EST

FREMONT, Calif., Oct. 3, 2018 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal third quarter ended August 31, 2018.


Q3 FY18

Q3 FY17

Net change

Revenue ($M)

$4,907

$4,277

14.7%

Operating income ($M)

$116.9

$122.2

(4.4)%

Non-GAAP operating income ($M)(1)

$162.7

$139.9

16.2%

Operating margin

2.38%

2.86%

(48) bps

Non-GAAP operating margin(1)

3.32%

3.27%

5 bps

Net income ($M)

$69.3

$75.2

(7.8)%

Non-GAAP net income ($M)(1)

$102.3

$86.8

17.8%

Diluted EPS

$1.74

$1.87

(7.0)%

Non-GAAP Diluted EPS(1)

$2.57

$2.16

19.0%


(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. A reconciliation of GAAP to Non-GAAP financial measures is presented in the supplementary information section at the end of this press release.

"We saw continued momentum in both of our business segments that resulted in record third quarter performance," said Dennis Polk, President and Chief Executive Officer, SYNNEX Corporation. "Our focus on profitable growth and leveraging the strategic investments we've made in our business drove solid margin and earnings expansion."

"We are also excited about the expected close of the Convergys acquisition on October 5th. The talented and dedicated global associates of Convergys will significantly amplify Concentrix and our value proposition," Mr. Polk added. "We look forward to the growth and value that the combination of these two companies will create, and it will enhance our leadership position as a premier global customer engagement services company."

 Third Quarter Fiscal 2018 Highlights:

  • Technology Solutions: Revenue was $4.4 billion, up 17% from the prior fiscal year third quarter. Operating income was $105 million, or 2.4% of segment revenue, compared to $100 million, or 2.6% of segment revenue, in the prior fiscal year third quarter. Non-GAAP operating income was $120 million, or 2.7% of segment revenue, in the fiscal third quarter of 2018, compared to $101 million, or 2.7% of segment revenue, in the prior fiscal year third quarter.
  • Concentrix: Revenue was $492 million, down 1% from the prior fiscal year third quarter. Operating income was $12 million, or 2.5% of segment revenue, compared to $22 million, or 4.5% of segment revenue in the prior fiscal year third quarter. Non-GAAP operating income was $43 million, or 8.7% of segment revenue, in the fiscal third quarter of 2018, compared to $39 million, or 7.8% of segment revenue, in the prior fiscal year third quarter.
  • The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 8.5% compared to 10.8% in the prior fiscal year third quarter. The adjusted trailing fiscal four quarters ROIC was 10.9%.
  • The debt to capitalization ratio was 43.9%, up from 32.1% in the prior fiscal year third quarter, primarily as a result of the Westcon-Comstor Americas acquisition in the fiscal fourth quarter of 2017.
  • Depreciation and amortization were $23 million and $26 million, respectively.
  • Cash used in operations was approximately $103 million during the quarter.

Fourth Quarter Fiscal 2018 Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2018 fourth quarter, including the impact of the planned Convergys acquisition. Non-GAAP financial measures exclude the amortization of intangibles, acquisition-related and integration expenses and the related tax effect thereon. These statements are forward-looking and actual results may differ materially.

  • Revenue is expected to be in the range of $5.2 billion to $5.4 billion.
  • Net income is expected to be in the range of $48.3 million to $57.9 million and on a Non-GAAP basis, net income is expected to be in the range of $136.8 million to $146.4 million.
  • Diluted earnings per share is expected to be in the range of $1.02 to $1.23 and on a Non-GAAP basis, diluted earnings per share is expected to be in the range of $2.90 to $3.10.
  • After-tax amortization of intangibles is expected to be $49.8 million, or $1.05 per share and after-tax acquisition-related and integration expenses are expected to be $38.7 million, $0.82 per share.

Conference Call and Webcast

SYNNEX will be discussing its financial results and outlook on a conference call today at 2:00 p.m. (PT). A live audio webcast of the call will be available at https://ir.synnex.com. The conference call will also be available via telephone by dialing (866) 393-4306 in North America or (734) 385-2616 for international callers. The passcode for the call is "SNX." A replay of the webcast will be available at https://ir.synnex.com approximately two hours after the conference call has concluded where it will be archived for one year.

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 leading business services company. We focus on customer engagement and improving business outcomes for over 450 global clients across many continents. Our 100,000+ staff deliver technology-infused, omni-channel customer experience management, marketing optimization, digital, consulting, analytics and back office solutions in 40+ languages from 125+ delivery centers. We serve automotive; banking and financial services; insurance; healthcare; technology; consumer electronics; media and communications; retail and ecommerce; travel and transportation; and energy and public sector clients. Visit http://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 a provisional adjustment relating to the enactment of the Tax Cuts and Jobs Act of 2017. This adjustment includes an estimated transition tax on accumulated overseas profits and the estimated remeasurement of deferred tax assets and liabilities to the new U.S. tax rate. These estimates may be impacted by new guidance issued by regulators, additional information obtained related to earnings and profits in foreign jurisdictions and the impact of our financial position as of the measurement date of November 30, 2018. SYNNEX expects the accounting for the tax effects of the Tax Cuts and Jobs Act will be completed during the one-year measurement period.

Additionally, SYNNEX refers to growth rates at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the Company's business performance. Financial results adjusted for currency are calculated by translating current period activity in the transaction currency using the comparable prior year periods' currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.

Trailing fiscal four quarters ROIC is defined as the last four quarters' tax effected operating income divided by the average of the last five quarterly balances of borrowings (excluding book overdraft) and equity, net of cash and cash equivalents in the United States. Adjusted ROIC is calculated by excluding the tax effected impact of acquisition-related and integration expenses, restructuring costs and the amortization of intangibles from operating income and equity.

SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of SYNNEX' operational results and trends that more readily enable investors to analyze SYNNEX' base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of SYNNEX' non-GAAP financial information to GAAP is set forth in the supplemental information section at the end of this press release.

Safe Harbor Statement

Statements in this news release regarding SYNNEX Corporation, which are not historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding SYNNEX' expectations and outlook for the fiscal 2018 fourth quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, tax rate, after-tax amortization of intangibles, and after-tax acquisition-related and integration expenses, as well as statements regarding currency impact, the anticipated benefits of the non-GAAP financial measures, estimates related to the Tax Cuts and Jobs Act of 2017, as well as expectations relating to the accounting thereof, tax rate, expected close of the Convergys acquisition, and impact, including growth, leverage and other benefits, in connection with the planned Convergys acquisition, 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 timing of the close and estimated financial impact of the Convergys transaction, the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any future incidents of theft; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2017 and subsequent SEC filings. Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.

Copyright 2018 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

Investor Contact:
Mary Lai
Investor Relations
SYNNEX Corporation
marylai@synnex.com  
(510) 668-8436

SYNNEX Corporation

Consolidated Balance Sheets

(currency and share amounts in thousands, except for per share amounts)

(Amounts may not add due to rounding)

(unaudited)



August 31, 2018


November 30, 2017

ASSETS




Current assets:




Cash and cash equivalents

$

203,988



$

550,688


Restricted cash

6,850



5,837


Short-term investments

3,321



5,475


Accounts receivable, net

2,951,011



2,846,371


Receivable from related parties

32



77


Inventories

2,040,103



2,162,626


Other current assets

199,891



168,704


Total current assets

5,405,197



5,739,778


Property and equipment, net

343,548



346,589


Goodwill

853,914



872,641


Intangible assets, net

497,013



583,051


Deferred tax assets

31,802



31,687


Other assets

126,829



124,780


Total assets

$

7,258,302



$

7,698,526






LIABILITIES AND EQUITY




Current liabilities:




Borrowings, current

$

732,272



$

805,471


Accounts payable

2,214,040



2,626,720


Payable to related parties

21,099



16,888


Accrued compensation and benefits

193,502



204,665


Other accrued liabilities

380,268



354,104


Income taxes payable

40,818



33,359


Total current liabilities

3,581,999



4,041,207


Long-term borrowings

1,090,654



1,136,089


Other long-term liabilities

170,414



124,008


Deferred tax liabilities

87,873



113,527


Total liabilities

4,930,940



5,414,831


Stockholders' equity:




Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding

—



—


Common stock, $0.001 par value, 100,000 shares authorized, 41,193 and 41,092 shares issued as of August 31, 2018 and November 30, 2017, respectively

41



41


Additional paid-in capital

488,538



467,948


Treasury stock, 1,985 and 1,419 shares as of August 31, 2018 and November 30, 2017, respectively

(134,841)



(77,133)


Accumulated other comprehensive income (loss)

(126,721)



(61,919)


Retained earnings

2,100,345



1,954,758


Total stockholders' equity

2,327,362



2,283,695


Total liabilities and equity

$

7,258,302



$

7,698,526


 

SYNNEX Corporation

Consolidated Statements of Operations

(currency and share amounts in thousands, except for per share amounts)

(Amounts may not add due to rounding)

(unaudited)



Three Months Ended


Nine Months Ended


August 31,
2018


August 31,
2017


August 31,
2018


August 31,
2017

Revenue:








Products

$

4,419,097



$

3,784,599



$

12,954,255



$

10,289,463


Services

487,513



492,087



1,477,308



1,444,360


Total revenue

4,906,610



4,276,686



14,431,562



11,733,823


Cost of revenue:








Products

(4,165,118)



(3,590,007)



(12,228,350)



(9,736,190)


Services

(308,322)



(311,735)



(926,998)



(908,661)


Gross profit

433,170



374,944



1,276,215



1,088,972


Selling, general and administrative expenses

(316,274)



(252,728)



(923,449)



(739,867)


Operating income

116,896



122,216



352,766



349,105


Interest expense and finance charges, net

(20,058)



(9,754)



(53,884)



(26,898)


Other income (expense), net

(872)



1,854



(3,497)



1,325


Income before income taxes

95,966



114,316



295,385



323,532


Provision for income taxes

(26,675)



(39,153)



(107,968)



(113,432)


Net income

$

69,291



$

75,163



$

187,417



$

210,100


Earnings per common share:








Basic

$

1.75



$

1.88



$

4.70



$

5.27


Diluted

$

1.74



$

1.87



$

4.67



$

5.24


Weighted-average common shares outstanding:








Basic

39,254



39,563



39,483



39,530


Diluted

39,475



39,748



39,730



39,722


Cash dividends declared per share

$

0.35



$

0.25



$

1.05



$

0.75


 

SYNNEX Corporation

Segment Information

(currency in thousands)

(Amounts may not add due to rounding)

(unaudited)



Three Months Ended


Nine Months Ended


August 31,
2018


August 31,
2017


August 31,
2018


August 31,
2017

Revenue:








  Technology Solutions

$

4,419,109



$

3,784,678



$

12,954,337



$

10,289,694


  Concentrix

491,882



495,974



1,490,865



1,455,817


  Inter-segment elimination

(4,382)



(3,966)



(13,639)



(11,688)


  Consolidated

$

4,906,610



$

4,276,686



$

14,431,562



$

11,733,823










Operating income:








  Technology Solutions

$

104,828



$

99,968



$

283,351



$

282,094


  Concentrix

12,068



22,248



69,415



66,989


  Inter-segment elimination

—



—



—



22


  Consolidated

$

116,896



$

122,216



$

352,766



$

349,105


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

(Amounts may not add due to rounding)



Three Months Ended


Nine Months Ended


August 31,
2018


August 31,
2017


August 31,
2018


August 31,
2017

Revenue in Constant Currency








Consolidated








Revenue

$

4,906,610



$

4,276,686



$

14,431,562



$

11,733,823


Foreign currency translation

10,733





(63,162)




Revenue in constant currency

$

4,917,343



$

4,276,686



$

14,368,400



$

11,733,823










Technology Solutions








Segment revenue

$

4,419,109



$

3,784,678



$

12,954,337



$

10,289,694


Foreign currency translation

5,704





(45,554)




Revenue in constant currency

$

4,424,813



$

3,784,678



$

12,908,783



$

10,289,694










Concentrix








Segment revenue

$

491,882



$

495,974



$

1,490,865



$

1,455,817


Foreign currency translation

5,029





(17,608)




Revenue in constant currency

$

496,911



$

495,974



$

1,473,257



$

1,455,817





Three Months Ended


Nine Months Ended


August 31,
2018


August 31,
2017


August 31,
2018


August 31,
2017

Selling, general and administrative expenses








Consolidated








GAAP selling, general and administrative expenses

$

316,274



$

252,728



$

923,449



$

739,867


Acquisition-related and integration expenses

19,568



1,026



23,419



1,637


Amortization of intangibles

25,777



16,268



77,882



47,984


Adjusted selling, general and administrative expenses

$

270,929



$

235,434



$

822,148



$

690,246










Technology Solutions








GAAP selling, general and administrative expenses

$

149,163



$

94,702



$

442,630



$

271,407


Acquisition-related and integration expenses

2,498



705



6,349



705


Amortization of intangibles

12,524



656



37,802



1,961


Adjusted selling, general and administrative expenses

$

134,141



$

93,341



$

398,479



$

268,741










Concentrix








GAAP selling, general and administrative expenses

$

168,984



$

159,728



$

486,120



$

474,132


Acquisition-related and integration expenses

17,070



321



17,070



932


Amortization of intangibles

13,253



15,612



40,080



46,023


Adjusted selling, general and administrative expenses

$

138,661



$

143,795



$

428,970



$

427,177


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

(Amounts may not add due to rounding)

(continued)



Three Months Ended


Nine Months Ended


August 31,
2018


August 31,
2017


August 31,
2018


August 31,
2017

Operating income and Operating margin








Consolidated








Revenue

$

4,906,610



$

4,276,686



$

14,431,562



$

11,733,823










GAAP operating income

$

116,896



$

122,216



$

352,766



$

349,105


Acquisition-related and integration expenses

19,568



1,026



23,419



1,637


Amortization of intangibles

26,197



16,688



79,183



49,244


Non-GAAP operating income

$

162,661



$

139,930



$

455,368



$

399,986


Depreciation

22,511



20,185



67,031



59,058


Adjusted EBITDA

$

185,172



$

160,115



$

522,399



$

459,044










GAAP operating margin

2.38

%


2.86

%


2.44

%


2.98

%

Non-GAAP operating margin

3.32

%


3.27

%


3.16

%


3.41

%









Technology Solutions








Segment revenue

$

4,419,109



$

3,784,678



$

12,954,337



$

10,289,694










GAAP operating income

$

104,828



$

99,968



$

283,351



$

282,094


Acquisition-related and integration expenses

2,498



705



6,349



705


Amortization of intangibles

12,524



656



37,802



1,961


Non-GAAP operating income

$

119,850



$

101,329



$

327,502



$

284,760


Depreciation

5,212



3,530



15,056



10,408


Adjusted EBITDA

$

125,062



$

104,859



$

342,558



$

295,168










GAAP operating margin

2.37

%


2.64

%


2.19

%


2.74

%

Non-GAAP operating margin

2.71

%


2.68

%


2.53

%


2.77

%









Concentrix








Segment revenue

$

491,882



$

495,974



$

1,490,865



$

1,455,817










GAAP operating income

$

12,068



$

22,248



$

69,415



$

66,989


Acquisition-related and integration expenses

17,070



321



17,070



932


Amortization of intangibles

13,673



16,032



41,381



47,283


Non-GAAP operating income

$

42,811



$

38,601



$

127,866



$

115,204


Depreciation

17,299



16,655



51,975



48,673


Adjusted EBITDA

$

60,110



$

55,256



$

179,841



$

163,877










GAAP operating margin

2.45

%


4.49

%


4.66

%


4.60

%

Non-GAAP operating margin

8.70

%


7.78

%


8.58

%


7.91

%

 

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


Nine Months Ended


August 31,
2018


August 31,
2017


August 31,
2018


August 31,
2017

Net income








Net income

$

69,291



$

75,163



$

187,417



$

210,100


Acquisition-related and integration expenses

19,568



1,026



20,785



1,637


Amortization of intangibles

26,197



16,688



79,183



49,244


Income taxes related to the above(1)

(12,798)



(6,064)



(28,181)



(17,839)


U.S. tax reform adjustment

—



—



24,701



—


Non-GAAP net income

$

102,258



$

86,813



$

283,905



$

243,142










Diluted earnings per common share ("EPS")(2)








Net income

$

69,291



$

75,163



$

187,417



$

210,100


Less: net income allocated to participating securities

(665)



(686)



(1,741)



(1,943)


Net income attributable to common stockholders

68,626



74,477



185,676



208,157


Acquisition-related and integration expenses attributable to common stockholders

19,381



1,017



20,593



1,622


Amortization of intangibles attributable to common stockholders

25,947



16,535



78,450



48,787


Income taxes related to the above attributable to common stockholders(1)

(12,676)



(6,009)



(27,920)



(17,673)


U.S. tax reform adjustment attributable to common stockholders

—



—



24,472



—


Non-GAAP net income attributable to common stockholders

$

101,279



$

86,020



$

281,271



$

240,893










Weighted-average number of common shares - diluted:

39,475



39,748



39,730



39,722










Diluted EPS(2)

$

1.74



$

1.87



$

4.67



$

5.24


Acquisition-related and integration expenses (benefit)

0.49



0.03



0.52



0.04


Amortization of intangibles

0.66



0.42



1.97



1.23


Income taxes related to the above(1)

(0.32)



(0.15)



(0.70)



(0.44)


U.S. tax reform adjustment

—



—



0.62



—


Non-GAAP Diluted EPS

$

2.57



$

2.16



$

7.08



$

6.06


 

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 November 30, 2018


Low


High

Net income




Net income

$

48.3



$

57.9


Acquisition-related and integration expenses

52.2



52.2


Amortization of intangibles

66.1



66.1


Income taxes related to the above(1)

(29.8)



(29.8)


Non-GAAP net income

$

136.8



$

146.4






Diluted EPS(2)

$

1.02



$

1.23


Acquisition-related and integration expenses

1.11



1.11


Amortization of intangibles

1.40



1.40


Income taxes related to the above(1)

(0.63)



(0.63)


Non-GAAP Diluted EPS

$

2.90



$

3.10



(1) The tax effect of the non-GAAP adjustments was calculated using the effective year-to date tax rate during the respective fiscal years, except for acquisition-related and integration expenses and amortization of intangibles for the three months ending November 30, 2018, which was calculated by estimating the tax deductible portion of these expenses and applying the entity-specific tax rates. The effective tax rate for fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.


(2) Diluted EPS for all periods presented is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities.  For purposes of calculating Diluted EPS, Net income allocated to participating securities was approximately 1.0% and 0.9% of Net income for the three and nine months ended August 31, 2018, respectively and approximately 0.9% of Net income for both the three and nine months ended August 31, 2017. Net income allocable to participating securities is estimated to be approximately 0.8% of the forecast Net income for the three months ending November 30, 2018.

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

(Amounts may not add or compute due to rounding)


ROIC



August 31, 2018


August 31, 2017

ROIC




Operating income (trailing fiscal four quarters)

$

512,626



$

479,745


Income taxes on operating income(1)

(185,645)



(162,241)


Operating income after taxes

326,981



317,504






Total borrowings, excluding book overdraft (last five quarters average)

$

1,684,413



$

982,084


Total equity (last five quarters average)

2,290,968



2,054,776


Less: U.S. cash and cash equivalents (last five quarters average)

(114,037)



(85,189)


Total invested capital

3,861,344



2,951,671






ROIC

8.5

%


10.8

%





Adjusted ROIC




Non-GAAP operating income (trailing fiscal four quarters)

$

648,309



$

556,071


Income taxes on Non-GAAP operating income(1)

(196,784)



(187,841)


Non-GAAP operating income after taxes

451,525



368,230






Total invested capital

$

3,861,344



$

2,951,671


Tax effected impact of cumulative non-GAAP adjustments (last five quarters average)

279,106



194,195


Total Non-GAAP invested capital

4,140,450



3,145,866






Adjusted ROIC

10.9

%


11.7

%


(1) Income taxes on GAAP and non-GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. The effective tax rate for non-GAAP operating income in fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.

 

Debt to Capitalization




August 31, 2018


August 31, 2017

Total borrowings, excluding book overdraft

(a)

$

1,821,617



$

1,049,605


Total equity

(b)

2,327,362



2,216,871


Debt to capitalization

(a)/((a)+(b))

43.9

%


32.1

%

 

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



August 31, 2018


August 31, 2017

Days sales outstanding





Revenue (products and services)

(a)

$

4,906,610



$

4,276,686


Accounts receivable, including receivable from related parties

(b)

2,951,043



1,861,481


Days sales outstanding

(c) = (b)/((a)/the number
of days during the period)

55



40







Days inventory outstanding





Cost of revenue (products and services)

(d)

$

4,473,440



$

3,901,742


Inventories

(e)

2,040,103



2,242,083


Days inventory outstanding

(f) = (e)/((d)/the number
of days during the period)

42



53







Days payable outstanding





Cost of revenue (products and services)

(g)

$

4,473,440



$

3,901,742


Accounts payable, including payable to related parties

(h)

2,235,139



1,804,110


Days payable outstanding

(i) = (h)/((g)/the number
of days during the period)

46



43







Cash conversion cycle

(j) = (c)+(f)-(i)

51



50


 

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SOURCE SYNNEX Corporation



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