☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, no par value | SCSC | NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer (Do not check if a smaller reporting company) | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Class | Outstanding at August | |||||||
Common Stock, no par value per share |
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•Cloud and Telecom Services: We offer business communications services, including voice, data, access, cable collaboration, wireless and cloud. We focus on empowering and educating sales partners so they can advise end-customers in making informed choices about services, technology and cost savings. With the CASCADE cloud services distribution platform, we offer sales partners another way to grow their recurring revenue practices. CASCADE takes the friction out of acquiring, provisioning and managing SaaS offerings. We have contracts with more than 150 of the world’s leading telecom carriers and cloud services providers. |
Location | Approximate Square Footage | Type of Interest | Description of Use | ||||||||
United States | |||||||||||
Greenville, SC | 180,000 | Owned | Headquarters - Principal Executive and Sales Offices | ||||||||
Greenville, SC | 45,000 | Leased | Sales and Administration Offices | ||||||||
Southaven, MS | 741,000 | Leased | Warehouse | ||||||||
Sacramento, CA | 41,000 | Leased | Sales and Administration Offices and Warehouse | ||||||||
Louisville, KY | 22,000 | Leased | Warehouse | ||||||||
Sao Jose does Pinhais, Paraná, Brazil | 24,000 | Leased | Sales Office and Warehouse | ||||||||
Serra, Espírito Santo, Brazil | 31,000 | Leased | Sales Office and Warehouse | ||||||||
Itajai, Santa Catarina, Brazil | 164,000 | Leased | Sales Office and Warehouse | ||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||
ScanSource, Inc. | $ | 100 | $ | 98 | $ | 106 | $ | 106 | $ | 86 | $ | 63 | |||||||||||||||||||||||
NASDAQ Composite | $ | 100 | $ | 98 | $ | 126 | $ | 156 | $ | 168 | $ | 213 | |||||||||||||||||||||||
SIC Code 5045 – Computers & Peripheral Equipment | $ | 100 | $ | 118 | $ | 153 | $ | 139 | $ | 130 | $ | 149 |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
ScanSource, Inc. | $ | 100 | $ | 100 | $ | 97 | $ | 106 | $ | 106 | $ | 86 | |||||||||||
NASDAQ Composite | $ | 100 | $ | 114 | $ | 113 | $ | 144 | $ | 178 | $ | 192 | |||||||||||
SIC Code 5045 – Computers & Peripheral Equipment | $ | 100 | $ | 95 | $ | 114 | $ | 152 | $ | 133 | $ | 139 |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of the publicly announced plan or program | Approximate dollar value of shares that may yet be purchased under the plan or program | ||||||
April 1, 2019 through April 30, 2019 | — | $ | — | — | $ | 99,356,839 | ||||
May 1, 2019 through May 31, 2019 | 117,472 | 30.97 | — | 95,718,282 | ||||||
June 1, 2019 through June 30, 2019 | 196,973 | 31.39 | — | 89,535,486 | ||||||
Total | 314,445 | $ | 31.23 | — | $ | 89,535,486 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of income data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 3,047,734 | $ | 3,249,799 | $ | 3,164,709 | $ | 2,963,366 | $ | 2,886,938 | |||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold | 2,692,165 | 2,856,996 | 2,795,403 | 2,649,364 | 2,608,261 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 355,569 | 392,803 | 369,306 | 314,002 | 278,677 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 260,139 | 252,948 | 232,291 | 203,545 | 182,133 | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense | 13,033 | 12,028 | 12,286 | 8,322 | 5,955 | ||||||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 19,953 | 17,893 | 18,680 | 13,522 | 7,491 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 120,470 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 6,941 | 15,200 | 37,043 | 6,279 | 415 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating (loss) income | (64,967) | 94,734 | 69,006 | 82,334 | 82,683 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 12,224 | 13,162 | 9,121 | 3,010 | 1,912 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (5,826) | (1,818) | (3,710) | (5,359) | (3,383) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 411 | (247) | 546 | (11,388) | 999 | ||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) Income before income taxes | (71,776) | 83,637 | 63,049 | 96,071 | 83,155 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 7,451 | 18,778 | 27,593 | 31,760 | 30,176 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (79,227) | 64,859 | 35,456 | 64,311 | 52,979 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations | (113,427) | (7,262) | (2,303) | 4,935 | 10,640 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (192,654) | $ | 57,597 | $ | 33,153 | $ | 69,246 | $ | 63,619 | |||||||||||||||||||||||||||||||||||||||||||
Per share data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations per common share, basic | (3.12) | 2.53 | 1.39 | 2.55 | 2.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations per common share, basic | (4.47) | (0.28) | (0.09) | 0.19 | 0.40 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income per common share, basic | $ | (7.59) | $ | 2.25 | $ | 1.30 | $ | 2.74 | $ | 2.40 | |||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding, basic | 25,378 | 25,642 | 25,522 | 25,318 | 26,472 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations per common share, diluted | (3.12) | 2.52 | 1.38 | 2.52 | 1.98 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations per common share, diluted | (4.47) | (0.28) | (0.09) | 0.19 | 0.40 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income per common share, diluted | $ | (7.59) | $ | 2.24 | $ | 1.29 | $ | 2.71 | $ | 2.38 | |||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding, diluted | 25,378 | 25,734 | 25,624 | 25,515 | 26,687 |
Fiscal Year Ended June 30, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Statement of income data: | |||||||||||||||||||
Net sales | $ | 3,873,111 | $ | 3,846,260 | $ | 3,568,186 | $ | 3,540,226 | $ | 3,218,626 | |||||||||
Cost of goods sold | 3,420,539 | 3,410,135 | 3,184,590 | 3,184,786 | 2,891,536 | ||||||||||||||
Gross profit | 452,572 | 436,125 | 383,596 | 355,440 | 327,090 | ||||||||||||||
Selling, general and administrative expenses | 314,521 | 297,475 | 265,178 | 240,115 | 210,985 | ||||||||||||||
Depreciation expense | 13,155 | 13,311 | 9,444 | 7,326 | 5,356 | ||||||||||||||
Intangible amortization expense | 19,732 | 20,657 | 15,524 | 9,828 | 6,641 | ||||||||||||||
Change in fair value of contingent consideration | 15,200 | 37,043 | 5,211 | 1,294 | 2,667 | ||||||||||||||
Operating income | 89,964 | 67,639 | 88,239 | 96,877 | 101,441 | ||||||||||||||
Interest expense | 13,382 | 9,149 | 3,215 | 2,124 | 1,797 | ||||||||||||||
Interest income | (1,843 | ) | (3,713 | ) | (5,329 | ) | (3,448 | ) | (2,638 | ) | |||||||||
Other (income) expense, net | 517 | 1,278 | (11,142 | ) | 2,191 | 2,376 | |||||||||||||
Income before income taxes | 77,908 | 60,925 | 101,495 | 96,010 | 99,906 | ||||||||||||||
Provision for income taxes | 20,311 | 27,772 | 32,249 | 32,391 | 34,487 | ||||||||||||||
Net income | $ | 57,597 | $ | 33,153 | $ | 69,246 | $ | 63,619 | $ | 65,419 | |||||||||
Net income per common share, basic | $ | 2.25 | $ | 1.30 | $ | 2.74 | $ | 2.40 | $ | 2.29 | |||||||||
Weighted-average shares outstanding, basic | 25,642 | 25,522 | 25,318 | 26,472 | 28,558 | ||||||||||||||
Net income per common share, diluted | $ | 2.24 | $ | 1.29 | $ | 2.71 | $ | 2.38 | $ | 2.27 | |||||||||
Weighted-average shares outstanding, diluted | 25,734 | 25,624 | 25,515 | 26,687 | 28,799 |
As of June 30, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balance sheet data: | |||||||||||||||||||
Working capital | $ | 776,429 | $ | 651,851 | $ | 624,748 | $ | 643,793 | $ | 645,398 | |||||||||
Total assets | 2,067,261 | 1,945,295 | 1,718,303 | 1,491,185 | 1,476,941 | ||||||||||||||
Total debt (including current debt) | 360,506 | 249,429 | 97,300 | 76,856 | 8,826 | ||||||||||||||
Total shareholders’ equity | $ | 914,129 | $ | 866,376 | $ | 837,145 | $ | 774,496 | $ | 808,985 |
As of June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital | $ | 484,460 | $ | 776,429 | $ | 651,851 | $ | 624,748 | $ | 643,793 | |||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,692,094 | 2,067,261 | 1,945,295 | 1,718,303 | 1,491,185 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total debt (of continuing operations) | 218,728 | 327,489 | 249,429 | 97,300 | 76,856 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | $ | 678,246 | $ | 914,129 | $ | 866,376 | $ | 837,145 | $ | 774,496 |
Fiscal Year Ended June 30, | |||||
2019 | 2018 | ||||
Statement of income data: | |||||
Net sales | 100.0 | % | 100.0 | % | |
Cost of goods sold | 88.3 | 88.7 | |||
Gross profit | 11.7 | 11.3 | |||
Selling, general and administrative expenses | 8.1 | 7.7 | |||
Depreciation expense | 0.3 | 0.3 | |||
Intangible amortization expense | 0.5 | 0.5 | |||
Change in fair value of contingent consideration | 0.4 | 1.0 | |||
Operating income | 2.3 | 1.8 | |||
Interest (income) expense, net | 0.3 | 0.1 | |||
Other (income) expense, net | 0.0 | 0.0 | |||
Income before income taxes | 2.0 | 1.6 | |||
Provision for income taxes | 0.5 | 0.7 | |||
Net income | 1.5 | % | 0.9 | % |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Statement of income data: | |||||||||||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||
Cost of goods sold | 88.3 | 87.9 | 88.3 | ||||||||||||||||||||||||||
Gross profit | 11.7 | 12.1 | 11.7 | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 8.5 | 7.8 | 7.3 | ||||||||||||||||||||||||||
Depreciation expense | 0.4 | 0.4 | 0.4 | ||||||||||||||||||||||||||
Intangible amortization expense | 0.7 | 0.6 | 0.6 | ||||||||||||||||||||||||||
Impairment charges | 4.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||
Change in fair value of contingent consideration | 0.2 | 0.5 | 1.2 | ||||||||||||||||||||||||||
Operating (loss) income | (2.1) | 2.9 | 2.2 | ||||||||||||||||||||||||||
Interest expense | 0.4 | 0.4 | 0.3 | ||||||||||||||||||||||||||
Interest income | (0.2) | (0.1) | (0.1) | ||||||||||||||||||||||||||
Other (income) expense, net | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||
(Loss) Income from continuing operations before income taxes | (2.4) | 2.6 | 2.0 | ||||||||||||||||||||||||||
Provision for income taxes | 0.2 | 0.6 | 0.9 | ||||||||||||||||||||||||||
Net (loss) income from continuing operations | (2.6) | 2.0 | 1.1 | ||||||||||||||||||||||||||
Net (loss) from discontinued operations | (3.7) | (0.2) | (0.1) | ||||||||||||||||||||||||||
Net (loss) income | (6.3) | % | 1.8 | % | 1.0 | % |
2020 | 2019 | $ Change | % Change | % Change Constant Currency, Excluding Divestitures and Acquisitions (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales by Segment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 2,093,217 | $ | 2,141,896 | $ | (48,679) | (2.3) | % | (1.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Communications & Services | 954,517 | 1,107,903 | (153,386) | (13.8) | % | (11.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 3,047,734 | $ | 3,249,799 | $ | (202,065) | (6.2) | % | (5.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Sales by Geography Category: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 2,755,134 | $ | 2,917,780 | $ | (162,646) | (5.6) | % | (5.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||
International | 292,600 | 332,019 | (39,419) | (11.9) | % | (1.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 3,047,734 | $ | 3,249,799 | $ | (202,065) | (6.2) | % | (5.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
(a) A reconciliation of non-GAAP net sales in constant currency, excluding acquisitions is presented at the end of Results of Operations, under Non-GAAP Financial Information. |
2019 | 2018 | $ Change | % Change | % Change Constant Currency, Excluding Acquisitions (a) | |||||||||||||
(in thousands) | |||||||||||||||||
Sales by Segment: | |||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 2,589,837 | $ | 2,628,988 | $ | (39,151 | ) | (1.5 | )% | (0.6 | )% | ||||||
Worldwide Communications & Services | 1,283,274 | 1,217,272 | 66,002 | 5.4 | % | 8.6 | % | ||||||||||
Total net sales | $ | 3,873,111 | $ | 3,846,260 | $ | 26,851 | 0.7 | % | 2.3 | % | |||||||
Sales by Geography Category: | |||||||||||||||||
North America | $ | 2,917,780 | $ | 2,847,197 | $ | 70,583 | 2.5 | % | 1.9 | % | |||||||
International | 955,331 | 999,063 | (43,732 | ) | (4.4 | )% | 3.5 | % | |||||||||
Total net sales | $ | 3,873,111 | $ | 3,846,260 | $ | 26,851 | 0.7 | % | 2.3 | % | |||||||
(a) A reconciliation of non-GAAP net sales in constant currency, excluding acquisitions is presented at the end of Results of Operations, under Non-GAAP Financial Information. |
2019 | 2018 | $ Change | % Change | % Change Constant Currency, Excluding Divestitures and Acquisitions (a) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales by Segment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 2,141,896 | $ | 2,143,135 | $ | (1,239) | (0.1) | % | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Communications & Services | 1,107,903 | 1,021,574 | 86,329 | 8.5 | % | 11.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 3,249,799 | $ | 3,164,709 | $ | 85,090 | 2.7 | % | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Sales by Geography Category: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 2,917,780 | $ | 2,847,196 | $ | 70,584 | 2.5 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
International | 332,019 | 317,513 | 14,506 | 4.6 | % | 22.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total net sales | $ | 3,249,799 | $ | 3,164,709 | $ | 85,090 | 2.7 | % | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(a) A reconciliation of non-GAAP net sales in constant currency, excluding acquisitions is presented at the end of Results of Operations, under Non-GAAP Financial Information. |
% of Sales June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 180,582 | $ | 209,243 | $ | (28,661) | (13.7) | % | 8.6 | % | 9.8 | % | |||||||||||||||||||||||||||||||||||
Worldwide Communications & Services | 174,988 | 183,560 | (8,572) | (4.7) | % | 18.3 | % | 16.6 | % | ||||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 355,570 | $ | 392,803 | $ | (37,233) | (9.5) | % | 11.7 | % | 12.1 | % |
% of Sales June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 209,243 | $ | 198,716 | $ | 10,527 | 5.3 | % | 9.8 | % | 9.3 | % | |||||||||||||||||||||||||||||||||||
Worldwide Communications & Services | 183,560 | 170,590 | 12,970 | 7.6 | % | 16.6 | % | 16.7 | % | ||||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 392,803 | $ | 369,306 | $ | 23,497 | 6.4 | % | 12.1 | % | 11.7 | % |
% of Sales June 30, | ||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 244,746 | $ | 238,318 | $ | 6,428 | 2.7 | % | 9.5 | % | 9.1 | % | ||||||||
Worldwide Communications & Services | 207,826 | 197,807 | 10,019 | 5.1 | % | 16.2 | % | 16.3 | % | |||||||||||
Total gross profit | $ | 452,572 | $ | 436,125 | $ | 16,447 | 3.8 | % | 11.7 | % | 11.3 | % |
% of Sales June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 260,139 | $ | 252,948 | $ | 7,191 | 2.8 | % | 8.5 | % | 7.8 | % | |||||||||||||||||||||||||||||||||||
Depreciation expense | 13,033 | 12,028 | 1,005 | 8.4 | % | 0.4 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 19,953 | 17,893 | 2,060 | 11.5 | % | 0.7 | % | 0.6 | % | ||||||||||||||||||||||||||||||||||||||
Impairment charges | 120,470 | — | 120,470 | 100.0 | % | 4.0 | % | — | % | ||||||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 6,941 | 15,200 | (8,259) | (54.3) | % | 0.2 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||
Operating expenses | 420,536 | 298,069 | 122,467 | 41.1 | % | 13.8 | % | 9.2 | % |
% of Sales June 30, | % of Sales June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | 2019 | 2018 | $ Change | % Change | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 314,521 | $ | 297,475 | $ | 17,046 | 5.7 | % | 8.1 | % | 7.7 | % | Selling, general and administrative expenses | $ | 252,948 | $ | 232,291 | $ | 20,657 | 8.9 | % | 7.8 | % | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Depreciation expense | 13,155 | 13,311 | (156 | ) | (1.2 | )% | 0.3 | % | 0.3 | % | Depreciation expense | 12,028 | 12,286 | (258) | (2.1) | % | 0.4 | % | 0.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Intangible amortization expense | 19,732 | 20,657 | (925 | ) | (4.5 | )% | 0.5 | % | 0.5 | % | Intangible amortization expense | 17,893 | 18,680 | (787) | (4.2) | % | 0.6 | % | 0.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 15,200 | 37,043 | (21,843 | ) | (59.0 | )% | 0.4 | % | 1.0 | % | Change in fair value of contingent consideration | 15,200 | 37,043 | (21,843) | (59.0) | % | 0.5 | % | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 362,608 | 368,486 | (5,878 | ) | (1.6 | )% | 9.4 | % | 9.6 | % | Operating expenses | $ | 298,069 | $ | 300,300 | $ | (2,231) | (0.7) | % | 9.2 | % | 9.5 | % |
% of Sales June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | (83,515) | $ | 57,019 | $ | (140,534) | (246.5) | % | (4.0) | % | 2.7 | % | |||||||||||||||||||||||||||||||||||
Worldwide Communications & Services | 22,548 | 38,933 | (16,385) | (42.1) | % | 2.4 | % | 3.5 | % | ||||||||||||||||||||||||||||||||||||||
Corporate | (4,000) | (1,218) | (2,782) | 228.4 | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||
Total operating (loss) income | $ | (64,967) | $ | 94,734 | $ | (159,701) | (168.6) | % | (2.1) | % | 2.9 | % |
% of Sales June 30, | ||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 59,875 | $ | 56,911 | $ | 2,964 | 5.2 | % | 2.3 | % | 2.2 | % | ||||||||
Worldwide Communications & Services | 31,307 | 10,900 | 20,407 | 187.2 | % | 2.4 | % | 0.9 | % | |||||||||||
Corporate | (1,218 | ) | (172 | ) | (1,046 | ) | 608.1 | % | — | % | — | % | ||||||||
Total operating income | $ | 89,964 | $ | 67,639 | $ | 22,325 | 33.0 | % | 2.3 | % | 1.8 | % |
% of Sales June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 57,019 | $ | 49,313 | $ | 7,706 | 15.6 | % | 2.7 | % | 2.3 | % | |||||||||||||||||||||||||||||||||||
Worldwide Communications & Services | 38,933 | 19,865 | 19,068 | 96.0 | % | 3.5 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||
Corporate | (1,218) | (172) | (1,046) | 608.1 | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||
Total operating income | $ | 94,734 | $ | 69,006 | $ | 25,728 | 37.3 | % | 2.9 | % | 2.2 | % |
% of Sales June 30, | % of Sales June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | 2020 | 2019 | $ Change | % Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 13,382 | $ | 9,149 | $ | 4,233 | 46.3 | % | 0.3 | % | 0.2 | % | Interest expense | $ | 12,224 | $ | 13,162 | $ | (938) | (7.1) | % | 0.4 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Interest income | (1,843 | ) | (3,713 | ) | 1,870 | (50.4 | )% | — | % | (0.1 | )% | Interest income | (5,826) | (1,818) | (4,008) | 220.5 | % | (0.2) | % | (0.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net foreign exchange losses (gains) | 1,156 | 2,096 | (940 | ) | (44.8 | )% | — | % | 0.1 | % | Net foreign exchange losses (gains) | 525 | 635 | (110) | (17.3) | % | — | % | — | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other, net | (639 | ) | (818 | ) | 179 | (21.9 | )% | — | % | — | % | Other, net | (114) | (882) | 768 | (87.1) | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total other (income) expense | $ | 12,056 | $ | 6,714 | $ | 5,342 | 79.6 | % | 0.3 | % | 0.2 | % | Total other (income) expense | $ | 6,809 | $ | 11,097 | $ | (4,288) | (38.6) | % | 0.2 | % | 0.3 | % |
% of Sales June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 13,162 | $ | 9,121 | $ | 4,041 | 44.3 | % | 0.4 | % | 0.3 | % | |||||||||||||||||||||||||||||||||||
Interest income | (1,818) | (3,710) | 1,892 | (51.0) | % | (0.1) | % | (0.1) | % | ||||||||||||||||||||||||||||||||||||||
Net foreign exchange losses (gains) | 635 | 1,178 | (543) | (46.1) | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||
Other, net | (882) | (632) | (250) | 39.6 | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||
Total other (income) expense | $ | 11,097 | $ | 5,957 | $ | 5,140 | 86.3 | % | 0.3 | % | 0.2 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal 2020 | Fiscal 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30 2020 | Mar. 31 2020 | Dec. 31 2019 | Sept. 30 2019 | Jun. 30 2019 | Mar. 31 2019 | Dec. 31 2018 | Sept. 30 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 636,450 | $ | 744,584 | $ | 823,999 | $ | 842,701 | $ | 811,432 | $ | 752,799 | $ | 872,348 | $ | 813,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold | 562,303 | 660,006 | 725,680 | 744,176 | 714,789 | 657,043 | 768,926 | 716,239 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | $ | 74,147 | $ | 84,578 | $ | 98,319 | $ | 98,525 | $ | 96,643 | $ | 95,756 | $ | 103,422 | $ | 96,981 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 120,470 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 674 | 618 | 3,176 | 2,472 | 3,666 | 5,101 | 1,850 | 4,584 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (108,859) | 5,715 | 11,626 | 12,291 | $ | 15,996 | $ | 13,455 | $ | 19,758 | $ | 15,649 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations | (108,403) | (4,003) | (260) | (761) | (4,418) | (1,740) | 224 | (1,327) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (217,262) | 1,712 | 11,366 | 11,530 | $ | 11,578 | $ | 11,715 | $ | 19,982 | $ | 14,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations per common share, basic | (4.29) | 0.23 | 0.46 | 0.48 | 0.62 | 0.53 | 0.77 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations per common share, basic | (4.28) | (0.16) | (0.01) | (0.03) | (0.17) | (0.07) | 0.01 | (0.05) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income per common share, basic | $ | (8.57) | $ | 0.07 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.46 | $ | 0.78 | $ | 0.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding, basic | 25,353 | 25,346 | 25,274 | 25,539 | 25,627 | 25,704 | 25,640 | 25,599 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations per common share, diluted | (4.29) | 0.23 | 0.46 | 0.48 | 0.62 | 0.52 | 0.77 | 0.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from discontinued operations per common share, diluted | (4.28) | (0.16) | (0.01) | (0.03) | (0.17) | (0.07) | 0.01 | (0.05) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income per common share, diluted | $ | (8.57) | $ | 0.07 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.78 | $ | 0.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding, diluted | 25,353 | 25,363 | 25,358 | 25,617 | 25,691 | 25,762 | 25,750 | 25,755 |
Three Months Ended | |||||||||||||||||||||||||||||||
Fiscal 2019 | Fiscal 2018 | ||||||||||||||||||||||||||||||
Jun. 30 2019 | Mar. 31 2019 | Dec. 31 2018 | Sept. 30 2018 | Jun. 30 2018 | Mar. 31 2018 | Dec. 31 2017 | Sept. 30 2017 | ||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||
Net sales | $ | 960,833 | $ | 893,357 | $ | 1,046,021 | $ | 972,900 | $ | 993,852 | $ | 895,637 | $ | 1,032,212 | $ | 924,559 | |||||||||||||||
Cost of goods sold | 850,969 | 783,342 | 925,543 | 860,685 | 880,503 | 791,749 | 919,241 | 818,642 | |||||||||||||||||||||||
Gross profit | $ | 109,864 | $ | 110,015 | $ | 120,478 | $ | 112,215 | $ | 113,349 | $ | 103,888 | $ | 112,971 | $ | 105,917 | |||||||||||||||
Change in fair value of contingent consideration | $ | 3,665 | $ | 5,101 | $ | 1,850 | $ | 4,584 | $ | 8,448 | $ | 4,801 | $ | 6,913 | $ | 16,881 | |||||||||||||||
Net income | $ | 11,578 | $ | 11,715 | $ | 19,982 | $ | 14,322 | $ | 10,388 | $ | 10,649 | $ | 7,969 | $ | 4,147 | |||||||||||||||
Net income per common share, basic | $ | 0.45 | $ | 0.46 | $ | 0.78 | $ | 0.56 | $ | 0.41 | $ | 0.42 | $ | 0.31 | $ | 0.16 | |||||||||||||||
Weighted-average shares outstanding, basic | 25,627 | 25,704 | 25,640 | 25,599 | 25,577 | 25,572 | 25,506 | 25,434 | |||||||||||||||||||||||
Net income per common share, diluted | $ | 0.45 | $ | 0.45 | $ | 0.78 | $ | 0.56 | $ | 0.40 | $ | 0.42 | $ | 0.31 | $ | 0.16 | |||||||||||||||
Weighted-average shares outstanding, diluted | 25,691 | 25,762 | 25,750 | 25,755 | 25,675 | 25,606 | 25,648 | 25,579 |
Net Sales by Segment: | ||||||||||||||
Fiscal Year Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
Worldwide Barcode, Networking & Security: | (in thousands) | |||||||||||||
Net sales, as reported | $ | 2,589,837 | $ | 2,628,988 | $ | (39,151 | ) | (1.5 | )% | |||||
Foreign exchange impact (a) | 33,318 | — | ||||||||||||
Net sales, constant currency | 2,623,155 | 2,628,988 | (5,833 | ) | (0.2 | )% | ||||||||
Less: Acquisitions | (23,465 | ) | (14,553 | ) | ||||||||||
Net sales, constant currency excluding acquisitions | $ | 2,599,690 | $ | 2,614,435 | $ | (14,745 | ) | (0.6 | )% | |||||
Worldwide Communications & Services: | ||||||||||||||
Net sales, as reported | $ | 1,283,274 | $ | 1,217,272 | $ | 66,002 | 5.4 | % | ||||||
Foreign exchange impact (a) | 45,655 | — | ||||||||||||
Net sales, constant currency | 1,328,929 | 1,217,272 | 111,657 | 9.2 | % | |||||||||
Less: Acquisitions | (7,261 | ) | — | |||||||||||
Net sales, constant currency excluding acquisitions | $ | 1,321,668 | $ | 1,217,272 | $ | 104,396 | 8.6 | % | ||||||
Consolidated: | ||||||||||||||
Net sales, as reported | $ | 3,873,111 | $ | 3,846,260 | $ | 26,851 | 0.7 | % | ||||||
Foreign exchange impact (a) | 78,973 | — | ||||||||||||
Net sales, constant currency | 3,952,084 | 3,846,260 | 105,824 | 2.8 | % | |||||||||
Less: Acquisitions | (30,726 | ) | (14,553 | ) | ||||||||||
Net sales, constant currency excluding acquisitions | $ | 3,921,358 | $ | 3,831,707 | $ | 89,651 | 2.3 | % | ||||||
(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 year ended June 30, 2019 into U.S. dollars using the average foreign exchange rates for the year ended June 30, 2018. |
Net Sales by Geography: | ||||||||||||||
Fiscal Year Ended June 30, | ||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||
United States and Canada: | (in thousands) | |||||||||||||
Net sales, as reported | $ | 2,917,780 | $ | 2,847,197 | $ | 70,583 | 2.5 | % | ||||||
Less: Acquisitions | (30,726 | ) | (14,553 | ) | ||||||||||
Net sales, excluding acquisitions | $ | 2,887,054 | $ | 2,832,644 | $ | 54,410 | 1.9 | % | ||||||
International: | ||||||||||||||
Net sales, as reported | $ | 955,331 | $ | 999,063 | $ | (43,732 | ) | (4.4 | )% | |||||
Foreign exchange impact (a) | 78,973 | — | ||||||||||||
Net sales, constant currency | 1,034,304 | 999,063 | 35,241 | 3.5 | % | |||||||||
Less: Acquisitions | — | — | ||||||||||||
Net sales, constant currency excluding acquisitions | $ | 1,034,304 | $ | 999,063 | $ | 35,241 | 3.5 | % | ||||||
Consolidated: | ||||||||||||||
Net sales, as reported | $ | 3,873,111 | $ | 3,846,260 | $ | 26,851 | 0.7 | % | ||||||
Foreign exchange impact (a) | 78,973 | — | ||||||||||||
Net sales, constant currency | 3,952,084 | 3,846,260 | 105,824 | 2.8 | % | |||||||||
Less: Acquisitions | (30,726 | ) | (14,553 | ) | ||||||||||
Net sales, constant currency excluding acquisitions | $ | 3,921,358 | $ | 3,831,707 | $ | 89,651 | 2.3 | % | ||||||
(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 year ended June 30, 2019 into U.S. dollars using the average foreign exchange rates for the year ended June 30, 2018. |
Year ended June 30, 2019 | Year ended June 30, 2018 | ||||||||||||||||||||||||||||||
Operating Income | Pre-Tax Income | Net Income | Diluted EPS | Operating Income | Pre-Tax Income | Net Income | Diluted EPS | ||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||
GAAP Measures | $ | 89,964 | $ | 77,908 | $ | 57,597 | $ | 2.24 | $ | 67,639 | $ | 60,925 | $ | 33,153 | $ | 1.29 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization of intangible assets | 19,732 | 19,732 | 14,956 | 0.58 | 20,657 | 20,657 | 14,021 | 0.55 | |||||||||||||||||||||||
Change in fair value of contingent consideration | 15,200 | 15,200 | 11,294 | 0.44 | 37,043 | 37,043 | 24,697 | 0.96 | |||||||||||||||||||||||
Acquisition costs | 1,218 | 1,218 | 1,218 | 0.05 | 172 | 172 | 172 | 0.01 | |||||||||||||||||||||||
Restructuring costs | 2,402 | 2,402 | 1,740 | 0.07 | — | — | — | — | |||||||||||||||||||||||
Tax recovery, net and related interest income | — | — | (387 | ) | (0.02 | ) | (2,466 | ) | (3,119 | ) | (2,058 | ) | (0.08 | ) | |||||||||||||||||
Legal settlement, net of attorney fees | — | — | — | — | 952 | 952 | 771 | 0.03 | |||||||||||||||||||||||
Tax reform changes | — | — | — | — | — | — | 9,034 | 0.35 | |||||||||||||||||||||||
Non-GAAP measures | $ | 128,516 | $ | 116,460 | $ | 86,418 | $ | 3.36 | $ | 123,997 | $ | 116,630 | $ | 79,790 | $ | 3.11 |
Operating Income by Segment: | ||||||||||||||||||||
Fiscal year ended June 30, | % of Net Sales June 30, | |||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | |||||||||||||||
Worldwide Barcode, Networking & Security: | ||||||||||||||||||||
GAAP operating income | $ | 59,875 | $ | 56,911 | $ | 2,964 | 5.2 | % | 2.3 | % | 2.2 | % | ||||||||
Adjustments: | ||||||||||||||||||||
Amortization of intangible assets | 8,098 | 8,703 | (605 | ) | ||||||||||||||||
Restructuring costs | 793 | — | 793 | |||||||||||||||||
Change in fair value of contingent consideration | — | 69 | (69 | ) | ||||||||||||||||
Tax recovery | — | (1,512 | ) | 1,512 | ||||||||||||||||
Non-GAAP operating income | $ | 68,766 | $ | 64,171 | $ | 4,595 | 7.2 | % | 2.7 | % | 2.4 | % | ||||||||
Worldwide Communications & Services: | ||||||||||||||||||||
GAAP operating income | $ | 31,307 | $ | 10,900 | $ | 20,407 | 187.2 | % | 2.4 | % | 0.9 | % | ||||||||
Adjustments: | ||||||||||||||||||||
Amortization of intangible assets | 11,634 | 11,954 | (320 | ) | ||||||||||||||||
Change in fair value of contingent consideration | 15,200 | 36,974 | (21,774 | ) | ||||||||||||||||
Restructuring costs | 1,609 | — | 1,609 | |||||||||||||||||
Legal settlement | — | 952 | (952 | ) | ||||||||||||||||
Tax recovery | — | (954 | ) | 954 | ||||||||||||||||
Non-GAAP operating income | $ | 59,750 | $ | 59,826 | $ | (76 | ) | (0.1 | )% | 4.7 | % | 4.9 | % | |||||||
Corporate: | ||||||||||||||||||||
GAAP operating income | $ | (1,218 | ) | $ | (172 | ) | $ | (1,046 | ) | nm* | nm* | nm* | ||||||||
Adjustments: | ||||||||||||||||||||
Acquisition costs | 1,218 | 172 | 1,046 | |||||||||||||||||
Non-GAAP operating income | $ | — | $ | — | $ | — | nm* | nm* | nm* | |||||||||||
Consolidated: | ||||||||||||||||||||
GAAP operating income | $ | 89,964 | $ | 67,639 | $ | 22,325 | 33.0 | % | 2.3 | % | 1.8 | % | ||||||||
Adjustments: | ||||||||||||||||||||
Amortization of intangible assets | 19,732 | 20,657 | (925 | ) | ||||||||||||||||
Change in fair value of contingent consideration | 15,200 | 37,043 | (21,843 | ) | ||||||||||||||||
Acquisition costs | 1,218 | 172 | 1,046 | |||||||||||||||||
Restructuring costs | 2,402 | — | 2,402 | |||||||||||||||||
Legal settlement | — | 952 | (952 | ) | ||||||||||||||||
Tax recovery | — | (2,466 | ) | 2,466 | ||||||||||||||||
Non-GAAP operating income | $ | 128,516 | $ | 123,997 | $ | 4,519 | 3.6 | % | 3.3 | % | 3.2 | % |
2020 | 2019 | ||||||||||
Return on invested capital ratio | 7.5 | % | 12.1 | % |
2019 | 2018 | ||||
Return on invested capital ratio | 12.0 | % | 12.5 | % |
Fiscal Year Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Reconciliation of net income to EBITDA: | |||||||||||||||||
Net (loss) income from continuing operations (GAAP) | $ | (79,227) | $ | 64,859 | |||||||||||||
Plus: Interest expense | 12,224 | 13,162 | |||||||||||||||
Plus: Income taxes | 7,451 | 18,778 | |||||||||||||||
Plus: Depreciation and amortization | 35,328 | 33,652 | |||||||||||||||
EBITDA (non-GAAP) | (24,224) | 130,451 | |||||||||||||||
Plus: Change in fair value of contingent consideration | 6,941 | 15,200 | |||||||||||||||
Plus: Acquisition and divestiture costs(a) | 4,000 | 1,218 | |||||||||||||||
Plus: Restructuring costs | 604 | — | |||||||||||||||
Plus: Impairment charges | 120,470 | — | |||||||||||||||
Plus: Tax recovery, net | (10,744) | — | |||||||||||||||
Adjusted EBITDA (numerator for ROIC) (non-GAAP) | $ | 97,047 | $ | 146,869 |
Reconciliation of EBITDA to Net Income | Fiscal Year Ended June 30, | ||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income (GAAP) | $ | 57,597 | $ | 33,153 | |||
Plus: income taxes | 20,311 | 27,772 | |||||
Plus: interest expense | 13,382 | 9,149 | |||||
Plus: depreciation & amortization(a) | 36,619 | 37,495 | |||||
EBITDA | 127,909 | 107,569 | |||||
Change in fair value of contingent consideration | 15,200 | 37,043 | |||||
Acquisition costs(b) | 1,218 | 172 | |||||
Restructuring costs(a) | 2,267 | — | |||||
Legal settlement (recovery), net of attorney fees | — | 952 | |||||
Tax recovery and related interest income | — | (3,119 | ) | ||||
Adjusted EBITDA (numerator for ROIC) (non-GAAP) | $ | 146,594 | $ | 142,617 |
Invested capital calculations | Fiscal Year Ended June 30, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Invested capital calculations: | |||||||||||||||||
Equity – beginning of the year | $ | 914,129 | $ | 866,376 | |||||||||||||
Equity – end of the year | 678,246 | 914,129 | |||||||||||||||
Plus: Change in fair value of contingent consideration, net of tax | 5,247 | 11,294 | |||||||||||||||
Plus: Acquisition and divestiture costs(a) | 4,000 | 1,218 | |||||||||||||||
Plus: Restructuring, net of tax | 449 | — | |||||||||||||||
Plus: Impairment charges, net of tax | 114,398 | — | |||||||||||||||
Plus: Tax recovery, net | (8,001) | (3,110) | |||||||||||||||
Plus: Impact of discontinued operations, net of tax | 98,794 | (16,557) | |||||||||||||||
Average equity | 903,631 | 886,675 | |||||||||||||||
Average funded debt(b) | 390,709 | 329,473 | |||||||||||||||
Invested capital (denominator for ROIC) (non-GAAP) | $ | 1,294,340 | $ | 1,216,148 | |||||||||||||
Invested capital calculations | Fiscal Year Ended June 30, | ||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Equity – beginning of the year | $ | 866,376 | $ | 837,145 | |||
Equity – end of the year | 914,129 | 866,376 | |||||
Change in fair value of contingent consideration, net of tax | 11,294 | 24,697 | |||||
Acquisition costs(b) | 1,218 | 172 | |||||
Restructuring costs(a) | 1,631 | — | |||||
Legal settlement (recovery), net of attorney fees, net of tax | — | 771 | |||||
Tax recovery, net and related interest income, net of tax | (387 | ) | (2,058 | ) | |||
Tax reform charges | — | 9,034 | |||||
Average equity, adjusted | 897,131 | 868,069 | |||||
Average funded debt(c) | 329,473 | 276,233 | |||||
Invested capital (denominator) | $ | 1,226,604 | $ | 1,144,302 | |||
Net Sales by Segment: | ||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security: | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 2,511,666 | $ | 2,589,837 | $ | (78,171) | (3.0) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (418,449) | (447,941) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 2,093,217 | 2,141,896 | (48,679) | (2.3) | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 10,395 | — | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, constant currency excluding Divestitures and acquisitions | $ | 2,103,612 | $ | 2,141,896 | $ | (38,284) | (1.8) | % | ||||||||||||||||||||||||||||||||||||
Worldwide Communications & Services: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 1,097,564 | $ | 1,283,274 | $ | (185,710) | (14.5) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (143,047) | (175,371) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 954,517 | 1,107,903 | (153,386) | (13.8) | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 29,829 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (9,122) | (1,026) | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, constant currency excluding Divestitures and acquisitions | $ | 975,224 | $ | 1,106,877 | $ | (131,653) | (11.9) | % | ||||||||||||||||||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 3,609,230 | $ | 3,873,111 | $ | (263,881) | (6.8) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (561,496) | (623,312) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 3,047,734 | 3,249,799 | (202,065) | (6.2) | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 40,224 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (9,122) | (1,026) | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, constant currency excluding Divestitures and acquisitions | $ | 3,078,836 | $ | 3,248,773 | $ | (169,937) | (5.2) | % | ||||||||||||||||||||||||||||||||||||
(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 year ended June 30, 2020 into U.S. dollars using the average foreign exchange rates for the year ended June 30, 2019. |
Net sales by segment | ||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 2,589,837 | $ | 2,628,988 | $ | (39,151) | (1.5) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (447,941) | (485,853) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 2,141,896 | 2,143,135 | (1,239) | (0.1) | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 16,196 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (23,465) | (14,553) | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, constant currency excluding Divestitures and acquisitions | $ | 2,134,627 | $ | 2,128,582 | $ | 6,045 | 0.3 | % | ||||||||||||||||||||||||||||||||||||
Worldwide Communications & Services: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 1,283,274 | $ | 1,217,272 | $ | 66,002 | 5.4 | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (175,371) | (195,698) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 1,107,903 | 1,021,574 | 86,329 | 8.5 | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 39,274 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (7,052) | — | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, constant currency excluding Divestitures and acquisitions | $ | 1,140,125 | $ | 1,021,574 | $ | 118,551 | 11.6 | % | ||||||||||||||||||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 3,873,111 | $ | 3,846,260 | $ | 26,851 | 0.7 | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (623,312) | (681,551) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 3,249,799 | 3,164,709 | 85,090 | 2.7 | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 55,470 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (30,517) | (14,553) | ||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, constant currency excluding Divestitures and acquisitions | $ | 3,274,752 | $ | 3,150,156 | $ | 124,596 | 4.0 | % | ||||||||||||||||||||||||||||||||||||
(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 year ended June 30, 2019 into U.S. dollars using the average foreign exchange rates for the year ended June 30, 2018. |
Net Sales by Geography: | ||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||
United States and Canada: | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||
Net sales, as reported | $ | 2,755,134 | $ | 2,917,780 | $ | (162,646) | (5.6) | % | ||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (3,542) | (1,062) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, excluding acquisitions | $ | 2,751,592 | $ | 2,916,718 | $ | (165,126) | (5.7) | % | ||||||||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 854,096 | $ | 955,331 | $ | (101,235) | (10.6) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (561,496) | (623,312) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 292,600 | 332,019 | (39,419) | (11.9) | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 40,224 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (5,580) | 36 | ||||||||||||||||||||||||||||||||||||||||||
Net sales, constant currency excluding Divestitures and acquisitions (non-GAAP) | $ | 327,244 | $ | 332,055 | $ | (4,811) | (1.4) | % | ||||||||||||||||||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 3,609,230 | $ | 3,873,111 | $ | (263,881) | (6.8) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (561,496) | (623,312) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 3,047,734 | 3,249,799 | (202,065) | (6.2) | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 40,224 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (9,122) | (1,026) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, constant currency excluding Divestitures and acquisitions (non-GAAP) | $ | 3,078,836 | $ | 3,248,773 | $ | (169,937) | (5.2) | % | ||||||||||||||||||||||||||||||||||||
(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 year ended June 30, 2020 into U.S. dollars using the average foreign exchange rates for the year ended June 30, 2019. |
Net Sales by Geography: | ||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||
United States and Canada: | ||||||||||||||||||||||||||||||||||||||||||||
Net sales, as reported | $ | 2,917,780 | $ | 2,847,197 | $ | 70,583 | 2.5 | % | ||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (30,517) | (14,553) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, excluding acquisitions | $ | 2,887,263 | $ | 2,832,644 | $ | 54,619 | 1.9 | % | ||||||||||||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 955,331 | $ | 999,063 | $ | (43,732) | (4.4) | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (623,312) | (681,551) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 332,019 | 317,512 | 14,507 | 4.6 | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 55,459 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net sales, constant currency excluding Divestitures and acquisitions (non-GAAP) | $ | 387,478 | $ | 317,512 | $ | 69,966 | 22.0 | % | ||||||||||||||||||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net sales, including Divestitures | $ | 3,873,111 | $ | 3,846,260 | $ | 26,851 | 0.7 | % | ||||||||||||||||||||||||||||||||||||
Divestitures | (623,312) | (681,551) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, reported | 3,249,799 | 3,164,709 | 85,090 | 2.7 | % | |||||||||||||||||||||||||||||||||||||||
Foreign exchange impact(a) | 55,470 | — | ||||||||||||||||||||||||||||||||||||||||||
Less: Acquisitions | (30,517) | (14,553) | ||||||||||||||||||||||||||||||||||||||||||
Net sales, constant currency excluding Divestitures and acquisitions (non-GAAP) | $ | 3,274,752 | $ | 3,150,156 | $ | 124,596 | 4.0 | % | ||||||||||||||||||||||||||||||||||||
(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 year ended June 30, 2019 into U.S. dollars using the average foreign exchange rates for the year ended June 30, 2018. | ||||||||||||||||||||||||||||||||||||||||||||
Fiscal year ended June 30, | % of Net Sales June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP operating (loss) income | (83,515) | 57,019 | (140,534) | (246.5) | % | (4.0) | % | 2.7 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 7,871 | 8,099 | (228) | ||||||||||||||||||||||||||||||||||||||||||||
Tax recovery | (5,480) | — | (5,480) | ||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 119,037 | — | 119,037 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 37,913 | $ | 65,118 | $ | (27,205) | (41.8) | % | 1.8 | % | 3.0 | % | |||||||||||||||||||||||||||||||||||
Worldwide Communications & Services: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP operating income | 22,548 | 38,933 | (16,385) | (42.1) | % | 2.4 | % | 3.5 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 12,082 | 9,794 | 2,288 | ||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 6,941 | 15,200 | (8,259) | ||||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | 604 | — | 604 | ||||||||||||||||||||||||||||||||||||||||||||
Tax recovery | (2,583) | — | (2,583) | ||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 1,433 | — | 1,433 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 41,025 | $ | 63,927 | $ | (22,902) | (35.8) | % | 4.3 | % | 5.8 | % | |||||||||||||||||||||||||||||||||||
Corporate: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP operating loss | $ | (4,000) | $ | (1,218) | $ | (2,782) | nm* | nm* | nm* | ||||||||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and divestiture costs | 4,000 | 1,218 | 2,782 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | — | $ | — | $ | — | nm* | nm* | nm* | ||||||||||||||||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||||||||
GAAP operating (loss) income | (64,967) | 94,734 | (159,701) | (168.6) | % | (2.1) | % | 2.9 | % | ||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 19,953 | 17,893 | 2,060 | ||||||||||||||||||||||||||||||||
Change in fair value of contingent consideration | 6,941 | 15,200 | (8,259) | ||||||||||||||||||||||||||||||||
Acquisition and divestiture costs | 4,000 | 1,218 | 2,782 | ||||||||||||||||||||||||||||||||
Restructuring costs | 604 | — | 604 | ||||||||||||||||||||||||||||||||
Tax recovery | (8,063) | — | (8,063) | ||||||||||||||||||||||||||||||||
Impairment charges | 120,470 | — | 120,470 | ||||||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 78,938 | $ | 129,045 | $ | (50,107) | (38.8) | % | 2.6 | % | 4.0 | % |
Year ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Measure | Intangible amortization expense | Change in fair value of contingent consideration | Acquisition, divestiture and restructuring costs(a) | Tax recovery, net | Impairment charges | Non-GAAP measure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 3,047,734 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,047,734 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 355,569 | — | — | — | — | — | 355,569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating (loss) income | (64,967) | 19,953 | 6,941 | 4,604 | (8,063) | 120,470 | 78,938 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense, net | 6,809 | — | — | — | 2,681 | — | 9,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax (loss) income | (71,776) | 19,953 | 6,941 | 4,604 | (10,744) | 120,470 | 69,448 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (79,227) | 15,091 | 5,247 | 4,449 | (8,001) | 114,398 | 51,957 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS from continuing operations | $ | (3.12) | $ | 0.59 | $ | 0.21 | $ | 0.18 | $ | (0.32) | $ | 4.51 | $ | 2.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Acquisition and divestiture costs totaled $4.0 million for the fiscal year ended June 30, 2020 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.6 million for the fiscal year ended June 30, 2020. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Measure | Intangible amortization expense | Change in fair value of contingent consideration | Acquisition, divestiture and restructuring costs(a) | Tax recovery, net | Impairment charges | Non-GAAP measure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 3,249,799 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,249,799 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 392,803 | — | — | — | — | — | 392,803 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 94,734 | 17,893 | 15,200 | 1,218 | — | — | 129,045 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense, net | 11,097 | — | — | — | — | — | 11,097 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax income | 83,637 | 17,893 | 15,200 | 1,218 | — | — | 117,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income from continuing operations | 64,859 | 13,484 | 11,294 | 1,218 | (3,110) | — | 87,745 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS from continuing operations | $ | 2.52 | $ | 0.52 | $ | 0.44 | $ | 0.05 | $ | (0.12) | $ | — | $ | 3.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Acquisition and divestiture costs totaled $1.2 million for the fiscal year ended June 30, 2019 and are generally nondeductible for tax purposes. |
Year ended | |||||||
Cash provided by (used in): | June 30, 2019 | June 30, 2018 | |||||
(in thousands) | |||||||
Operating activities | $ | (27,127 | ) | $ | 24,805 | ||
Investing activities | (39,376 | ) | (151,927 | ) | |||
Financing activities | 64,233 | 100,574 | |||||
Effect of exchange rate change on cash and cash equivalents | 558 | (4,016 | ) | ||||
Decrease in cash and cash equivalents | $ | (1,712 | ) | $ | (30,564 | ) |
Year ended | |||||||||||||||||||||||||||||
Cash provided by (used in): | June 30, 2020 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Operating activities of continuing operations | $ | 182,033 | $ | 16,032 | $ | 31,447 | |||||||||||||||||||||||
Investing activities of continuing operations | (55,308) | (37,958) | (150,766) | ||||||||||||||||||||||||||
Financing activities of continuing operations | (152,686) | 31,314 | 100,920 | ||||||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | Greater than 5 Years | |||||||||||||||
(in thousands) | |||||||||||||||||||
Contractual Obligations | |||||||||||||||||||
Non-cancelable operating leases(1) | $ | 41,257 | $ | 8,043 | $ | 13,137 | $ | 9,297 | $ | 10,780 | |||||||||
Capital lease | 675 | 675 | — | — | — | ||||||||||||||
Overdraft facility | 4,590 | 4,590 | |||||||||||||||||
Principal debt payments | 155,099 | 4,085 | 15,681 | 131,950 | 3,383 | ||||||||||||||
Revolving credit facility | 200,817 | — | — | 200,817 | — | ||||||||||||||
Contingent consideration(2) | 77,925 | 37,933 | 39,534 | — | — | ||||||||||||||
Other(3) | — | — | — | — | — | ||||||||||||||
Total obligations | $ | 480,363 | $ | 55,326 | $ | 68,352 | $ | 342,064 | $ | 14,163 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | Greater than 5 Years | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cancelable operating leases(1) | $ | 28,464 | $ | 5,430 | $ | 9,643 | $ | 7,414 | $ | 5,977 | |||||||||||||||||||||||||||||||||||||||||||
Capital lease | 2,631 | 1,228 | 1,403 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Principal debt payments | 151,014 | 7,839 | 19,441 | 120,709 | 3,025 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility(2) | 67,714 | — | — | 67,714 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration(3) | 46,334 | 46,334 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Other(4) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total obligations | $ | 296,157 | $ | 60,831 | $ | 30,487 | $ | 195,837 | $ | 9,002 |
ITEM 8. Financial Statements and Supplementary Data. |
Page | |||||
Financial Statements | |||||
/s/ Grant Thornton LLP |
/s/ Grant Thornton LLP |
June 30, 2020 | June 30, 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 29,485 | $ | 19,305 | |||||||
Accounts receivable, less allowance of $21,906 at June 30, 2020 and $27,521 at June 30, 2019 | 443,185 | 523,424 | |||||||||
Inventories | 454,885 | 554,080 | |||||||||
Prepaid expenses and other current assets | 94,681 | 83,753 | |||||||||
Current assets held for sale | 181,231 | 296,753 | |||||||||
Total current assets | 1,203,467 | 1,477,315 | |||||||||
Property and equipment, net | 55,641 | 60,570 | |||||||||
Goodwill | 214,288 | 310,715 | |||||||||
Identifiable intangible assets, net | 121,547 | 121,214 | |||||||||
Deferred income taxes | 24,630 | 15,447 | |||||||||
Other non-current assets | 72,521 | 52,921 | |||||||||
Non-current assets held for sale | 0 | 29,079 | |||||||||
Total assets | $ | 1,692,094 | $ | 2,067,261 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 454,240 | $ | 488,291 | |||||||
Accrued expenses and other current liabilities | 76,686 | 64,629 | |||||||||
Current portion of contingent consideration | 46,334 | 38,393 | |||||||||
Income taxes payable | 5,886 | 3,956 | |||||||||
Current portion of long-term debt | 7,839 | 4,085 | |||||||||
Current liabilities held for sale | 128,022 | 101,532 | |||||||||
Total current liabilities | 719,007 | 700,886 | |||||||||
Deferred income taxes | 3,884 | 0 | |||||||||
Long-term debt, net of current portion | 143,175 | 151,014 | |||||||||
Borrowings under revolving credit facility | 67,714 | 172,390 | |||||||||
Long-term portion of contingent consideration | 0 | 39,532 | |||||||||
Other long-term liabilities | 80,068 | 57,153 | |||||||||
Long-term liabilities held for sale | 0 | 32,157 | |||||||||
Total liabilities | 1,013,848 | 1,153,132 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, no par value; 3,000,000 shares authorized, NaN issued | 0 | 0 | |||||||||
Common stock, no par value; 45,000,000 shares authorized, 25,361,298 and 25,408,397 shares issued and outstanding at June 30, 2020 and June 30, 2019, respectively | 63,765 | 64,287 | |||||||||
Retained earnings | 747,276 | 939,930 | |||||||||
Accumulated other comprehensive loss | (132,795) | (90,088) | |||||||||
Total shareholders’ equity | 678,246 | 914,129 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,692,094 | $ | 2,067,261 | |||||||
June 30, 2019 | June 30, 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 23,818 | $ | 25,530 | |||
Accounts receivable, less allowance of $38,849 at June 30, 2019 and $45,561 at June 30, 2018 | 654,983 | 646,086 | |||||
Inventories | 697,343 | 595,948 | |||||
Prepaid expenses and other current assets | 101,171 | 94,598 | |||||
Total current assets | 1,477,315 | 1,362,162 | |||||
Property and equipment, net | 63,363 | 73,042 | |||||
Goodwill | 319,538 | 298,174 | |||||
Identifiable intangible assets, net | 127,939 | 136,806 | |||||
Deferred income taxes | 24,724 | 22,199 | |||||
Other non-current assets | 54,382 | 52,912 | |||||
Total assets | $ | 2,067,261 | $ | 1,945,295 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 558,101 | $ | 562,564 | |||
Accrued expenses and other current liabilities | 91,407 | 90,873 | |||||
Current portion of contingent consideration | 38,393 | 42,975 | |||||
Income taxes payable | 4,310 | 13,348 | |||||
Short-term borrowings | 4,590 | — | |||||
Current portion of long-term debt | 4,085 | 551 | |||||
Total current liabilities | 700,886 | 710,311 | |||||
Deferred income taxes | 1,395 | 1,769 | |||||
Long-term debt, net of current portion | 151,014 | 4,878 | |||||
Borrowings under revolving credit facility | 200,817 | 244,000 | |||||
Long-term portion of contingent consideration | 39,532 | 65,258 | |||||
Other long-term liabilities | 59,488 | 52,703 | |||||
Total liabilities | 1,153,132 | 1,078,919 | |||||
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, 25,408,397 and 25,593,122 shares issued and outstanding at June 30, 2019 and June 30, 2018, respectively | 64,287 | 68,220 | |||||
Retained earnings | 939,930 | 882,333 | |||||
Accumulated other comprehensive loss | (90,088 | ) | (84,177 | ) | |||
Total shareholders’ equity | 914,129 | 866,376 | |||||
Total liabilities and shareholders’ equity | $ | 2,067,261 | $ | 1,945,295 |
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 3,047,734 | $ | 3,249,799 | $ | 3,164,709 | |||||||||||
Cost of goods sold | 2,692,165 | 2,856,996 | 2,795,403 | ||||||||||||||
Gross profit | 355,569 | 392,803 | 369,306 | ||||||||||||||
Selling, general and administrative expenses | 260,139 | 252,948 | 232,291 | ||||||||||||||
Depreciation expense | 13,033 | 12,028 | 12,286 | ||||||||||||||
Intangible amortization expense | 19,953 | 17,893 | 18,680 | ||||||||||||||
Impairment charges | 120,470 | 0 | 0 | ||||||||||||||
Change in fair value of contingent consideration | 6,941 | 15,200 | 37,043 | ||||||||||||||
Operating (loss) income | (64,967) | 94,734 | 69,006 | ||||||||||||||
Interest expense | 12,224 | 13,162 | 9,121 | ||||||||||||||
Interest income | (5,826) | (1,818) | (3,710) | ||||||||||||||
Other expense (income), net | 411 | (247) | 546 | ||||||||||||||
(Loss) income before income taxes | (71,776) | 83,637 | 63,049 | ||||||||||||||
Provision for income taxes | 7,451 | 18,778 | 27,593 | ||||||||||||||
Net (loss) income from continuing operations | (79,227) | 64,859 | 35,456 | ||||||||||||||
Net loss from discontinued operations | (113,427) | (7,262) | (2,303) | ||||||||||||||
Net (loss) income | $ | (192,654) | $ | 57,597 | $ | 33,153 | |||||||||||
Per share data: | |||||||||||||||||
Net (loss) income from continuing operations per common share, basic | $ | (3.12) | $ | 2.53 | $ | 1.39 | |||||||||||
Net loss from discontinued operations per common share, basic | (4.47) | (0.28) | (0.09) | ||||||||||||||
Net (loss) income per common share, basic | $ | (7.59) | $ | 2.25 | $ | 1.30 | |||||||||||
Weighted-average shares outstanding, basic | 25,378 | 25,642 | 25,522 | ||||||||||||||
Net (loss) income from continuing operations per common share, diluted | $ | (3.12) | $ | 2.52 | $ | 1.38 | |||||||||||
Net loss from discontinued operations per common share, diluted | (4.47) | (0.28) | (0.09) | ||||||||||||||
Net (loss) income per common share, diluted | $ | (7.59) | $ | 2.24 | $ | 1.29 | |||||||||||
Weighted-average shares outstanding, diluted | 25,378 | 25,734 | 25,624 |
2019 | 2018 | 2017 | |||||||||
Net sales | $ | 3,873,111 | $ | 3,846,260 | $ | 3,568,186 | |||||
Cost of goods sold | 3,420,539 | 3,410,135 | 3,184,590 | ||||||||
Gross profit | 452,572 | 436,125 | 383,596 | ||||||||
Selling, general and administrative expenses | 314,521 | 297,475 | 265,178 | ||||||||
Depreciation expense | 13,155 | 13,311 | 9,444 | ||||||||
Intangible amortization expense | 19,732 | 20,657 | 15,524 | ||||||||
Change in fair value of contingent consideration | 15,200 | 37,043 | 5,211 | ||||||||
Operating income | 89,964 | 67,639 | 88,239 | ||||||||
Interest expense | 13,382 | 9,149 | 3,215 | ||||||||
Interest income | (1,843 | ) | (3,713 | ) | (5,329 | ) | |||||
Other (income) expense, net | 517 | 1,278 | (11,142 | ) | |||||||
Income before income taxes | 77,908 | 60,925 | 101,495 | ||||||||
Provision for income taxes | 20,311 | 27,772 | 32,249 | ||||||||
Net income | $ | 57,597 | $ | 33,153 | $ | 69,246 | |||||
Per share data: | |||||||||||
Net income per common share, basic | $ | 2.25 | $ | 1.30 | $ | 2.74 | |||||
Weighted-average shares outstanding, basic | 25,642 | 25,522 | 25,318 | ||||||||
Net income per common share, diluted | $ | 2.24 | $ | 1.29 | $ | 2.71 | |||||
Weighted-average shares outstanding, diluted | 25,734 | 25,624 | 25,515 |
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Net (loss) income | $ | (192,654) | $ | 57,597 | $ | 33,153 | ||||||||||||||||||||
Unrealized (loss) gain on hedged transaction, net of tax | (4,646) | (3,277) | 1,089 | |||||||||||||||||||||||
Foreign currency translation adjustment | (38,061) | (2,634) | (12,062) | |||||||||||||||||||||||
Comprehensive (loss) income | $ | (235,361) | $ | 51,686 | $ | 22,180 | ||||||||||||||||||||
See accompanying notes to these consolidated financial statements. | ||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||
Net income | $ | 57,597 | $ | 33,153 | $ | 69,246 | |||||
Unrealized (loss) gain on hedged transaction, net of tax | (3,277 | ) | 1,089 | 13 | |||||||
Foreign currency translation adjustment | (2,634 | ) | (12,062 | ) | (530 | ) | |||||
Comprehensive income | $ | 51,686 | $ | 22,180 | $ | 68,729 | |||||
See accompanying notes to these consolidated financial statements. | |||||||||||
Common Stock (Shares) | Common Stock (Amount) | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||||||||||||||||
Common Stock (Shares) | Common Stock (Amount) | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2016 | 25,614,673 | $ | 67,249 | $ | 779,934 | $ | (72,687 | ) | $ | 774,496 | |||||||||||||||||||||||||||||||||||||
Net income | — | — | 69,246 | — | 69,246 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on hedged transaction, net of tax | — | — | — | 13 | 13 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (530 | ) | (530 | ) | ||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 394,815 | 8,208 | — | — | 8,208 | ||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | (577,643) | (20,335 | ) | (20,335 | ) | ||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | 6,578 | — | — | 6,578 | ||||||||||||||||||||||||||||||||||||||||||
Tax shortfall from exercise or vesting of share-based payment arrangements | — | (531 | ) | — | — | (531 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | 25,431,845 | 61,169 | 849,180 | (73,204 | ) | 837,145 | Balance at June 30, 2017 | 25,431,845 | $ | 61,169 | $ | 849,180 | $ | (73,204) | $ | 837,145 | |||||||||||||||||||||||||||||||
Net income | — | — | 33,153 | — | 33,153 | Net income | — | — | 33,153 | — | 33,153 | ||||||||||||||||||||||||||||||||||||
Unrealized gain on hedged transaction, net of tax | — | — | — | 1,089 | 1,089 | Unrealized gain on hedged transaction, net of tax | — | — | — | 1,089 | 1,089 | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (12,062 | ) | (12,062 | ) | Foreign currency translation adjustment | — | — | — | (12,062) | (12,062) | ||||||||||||||||||||||||||||||||||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 161,277 | 636 | — | — | 636 | Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 161,277 | 636 | — | — | 636 | ||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Share based compensation | — | 6,415 | — | — | 6,415 | Share based compensation | — | 6,415 | — | — | 6,415 | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 25,593,122 | 68,220 | 882,333 | (84,177 | ) | 866,376 | Balance at June 30, 2018 | 25,593,122 | 68,220 | 882,333 | (84,177) | 866,376 | |||||||||||||||||||||||||||||||||||
Net income | — | — | 57,597 | — | 57,597 | Net income | — | — | 57,597 | — | 57,597 | ||||||||||||||||||||||||||||||||||||
Unrealized loss on hedged transaction, net of tax | — | — | — | (3,277 | ) | (3,277 | ) | Unrealized loss on hedged transaction, net of tax | — | — | — | (3,277) | (3,277) | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,634 | ) | (2,634 | ) | Foreign currency translation adjustment | — | — | — | (2,634) | (2,634) | ||||||||||||||||||||||||||||||||||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 139,107 | 103 | — | — | 103 | Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 139,107 | 103 | — | — | 103 | ||||||||||||||||||||||||||||||||||||
Common stock repurchased | (323,832) | (10,129 | ) | — | — | (10,129 | ) | Common stock repurchased | (323,832) | (10,129) | 0 | 0 | (10,129) | ||||||||||||||||||||||||||||||||||
Share based compensation | — | 6,093 | — | — | 6,093 | Share based compensation | — | 6,093 | — | — | 6,093 | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 25,408,397 | $ | 64,287 | $ | 939,930 | $ | (90,088 | ) | $ | 914,129 | Balance at June 30, 2019 | 25,408,397 | 64,287 | 939,930 | (90,088) | 914,129 | |||||||||||||||||||||||||||||||
Net loss | Net loss | — | — | (192,654) | — | (192,654) | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on hedged transaction, net of tax | Unrealized loss on hedged transaction, net of tax | — | — | — | (4,646) | (4,646) | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | — | — | — | (38,061) | (38,061) | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 120,969 | (599) | — | — | (599) | |||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | Common stock repurchased | (168,068) | (5,432) | — | — | (5,432) | |||||||||||||||||||||||||||||||||||||||||
Share based compensation | Share based compensation | — | 5,509 | — | — | 5,509 | |||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | Balance at June 30, 2020 | 25,361,298 | $ | 63,765 | $ | 747,276 | $ | (132,795) | $ | 678,246 |
2019 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 57,597 | $ | 33,153 | $ | 69,246 | |||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 36,618 | 37,495 | 24,968 | ||||||||
Amortization of debt issue costs | 350 | 326 | 290 | ||||||||
Provision for doubtful accounts | 2,282 | 7,075 | 8,901 | ||||||||
Share-based compensation | 6,122 | 6,459 | 6,602 | ||||||||
Deferred income taxes | (2,900 | ) | (22,286 | ) | (1,861 | ) | |||||
Excess tax benefits from share-based payment arrangements | — | — | (89 | ) | |||||||
Change in fair value of contingent consideration | 15,200 | 37,043 | 5,211 | ||||||||
Contingent consideration payments excess | (10,190 | ) | (3,066 | ) | — | ||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable | (12,598 | ) | (38,268 | ) | (62,731 | ) | |||||
Inventories | (104,594 | ) | (59,498 | ) | 28,449 | ||||||
Prepaid expenses and other assets | (5,203 | ) | (14,864 | ) | (7,698 | ) | |||||
Other noncurrent assets | (678 | ) | (6,361 | ) | (9,540 | ) | |||||
Accounts payable | (2,730 | ) | 44,464 | 19,861 | |||||||
Accrued expenses and other liabilities | 2,703 | (11,540 | ) | 8,491 | |||||||
Income taxes payable | (9,106 | ) | 14,673 | 4,776 | |||||||
Net cash (used in) provided by operating activities | (27,127 | ) | 24,805 | 94,876 | |||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (7,215 | ) | (8,159 | ) | (8,849 | ) | |||||
Cash paid for business acquisitions, net of cash acquired | (32,161 | ) | (143,768 | ) | (83,804 | ) | |||||
Payments for acquisition of intangible assets | — | — | (3,583 | ) | |||||||
Net cash used in investing activities | (39,376 | ) | (151,927 | ) | (96,236 | ) | |||||
Cash flows from financing activities: | |||||||||||
Short-term borrowings, net | 4,558 | — | — | ||||||||
Borrowings on revolving credit, net of expenses | 2,072,279 | 2,301,443 | 1,813,062 | ||||||||
Repayments on revolving credit, net of expenses | (2,115,530 | ) | (2,149,659 | ) | (1,792,620 | ) | |||||
Borrowings on long-term debt, net | 149,670 | — | — | ||||||||
Repayments of capital lease obligations | (662 | ) | (591 | ) | (246 | ) | |||||
Debt issuance costs | (1,096 | ) | (296 | ) | (876 | ) | |||||
Contingent consideration payments | (35,606 | ) | (50,959 | ) | (10,241 | ) | |||||
Exercise of stock options | 1,509 | 2,273 | 9,969 | ||||||||
Taxes paid on settlement of equity awards | (1,406 | ) | (1,637 | ) | (1,761 | ) | |||||
Repurchase of common stock | (9,483 | ) | — | (20,882 | ) | ||||||
Excess tax benefits from share-based payment arrangements | — | — | 89 | ||||||||
Net cash provided by (used in) financing activities | 64,233 | 100,574 | (3,506 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 558 | (4,016 | ) | (440 | ) | ||||||
Decrease in cash and cash equivalents | (1,712 | ) | (30,564 | ) | (5,306 | ) | |||||
Cash and cash equivalents at beginning of period | 25,530 | 56,094 | 61,400 | ||||||||
Cash and cash equivalents at end of period | $ | 23,818 | $ | 25,530 | $ | 56,094 |
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net (loss) income | $ | (192,654) | $ | 57,597 | $ | 33,153 | |||||||||||
Net loss from discontinued operations | (113,427) | (7,262) | (2,303) | ||||||||||||||
Net (loss) income from continuing operations | (79,227) | 64,859 | 35,456 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | |||||||||||||||||
Depreciation and amortization | 35,328 | 33,652 | 34,493 | ||||||||||||||
Amortization of debt issue costs | 417 | 350 | 326 | ||||||||||||||
Provision for doubtful accounts | 1,621 | 1,712 | 6,127 | ||||||||||||||
Share-based compensation | 5,478 | 6,045 | 6,379 | ||||||||||||||
Impairment charges | 120,470 | 0 | 0 | ||||||||||||||
Deferred income taxes | (12,193) | (2,757) | (20,908) | ||||||||||||||
Change in fair value of contingent consideration | 6,941 | 15,200 | 37,043 | ||||||||||||||
Contingent consideration payments excess | (3,050) | (10,190) | (3,066) | ||||||||||||||
Finance lease interest | 85 | — | — | ||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||||
Accounts receivable | 57,477 | (5,490) | (35,881) | ||||||||||||||
Inventories | 86,177 | (85,862) | (53,209) | ||||||||||||||
Prepaid expenses and other assets | (13,880) | (10,091) | (14,951) | ||||||||||||||
Other non-current assets | (13,563) | (2,438) | (6,818) | ||||||||||||||
Accounts payable | (20,846) | 16,134 | 37,319 | ||||||||||||||
Accrued expenses and other liabilities | 11,239 | 2,377 | (4,733) | ||||||||||||||
Income taxes payable | (441) | (7,469) | 13,870 | ||||||||||||||
Net cash provided by operating activities of continuing operations | 182,033 | 16,032 | 31,447 | ||||||||||||||
Cash flows from investing activities of continuing operations: | |||||||||||||||||
Capital expenditures | (6,387) | (5,797) | (6,998) | ||||||||||||||
Cash paid for business acquisitions, net of cash acquired | (48,921) | (32,161) | (143,768) | ||||||||||||||
Net cash used in investing activities of continuing operations | (55,308) | (37,958) | (150,766) | ||||||||||||||
Cash flows from financing activities of continuing operations: | |||||||||||||||||
Borrowings on revolving credit, net of expenses | 2,085,918 | 2,061,090 | 2,301,443 | ||||||||||||||
Repayments on revolving credit, net of expenses | (2,190,595) | (2,132,702) | (2,149,313) | ||||||||||||||
Borrowings on long-term debt, net | (4,085) | 149,670 | 0 | ||||||||||||||
Repayments of finance lease obligations | (1,765) | (662) | (591) | ||||||||||||||
Debt issuance costs | 0 | (1,096) | (296) | ||||||||||||||
Contingent consideration payments | (35,482) | (35,606) | (50,959) | ||||||||||||||
Exercise of stock options | 754 | 1,509 | 2,273 | ||||||||||||||
Taxes paid on settlement of equity awards | (1,353) | (1,406) | (1,637) | ||||||||||||||
Repurchase of common stock | (6,078) | (9,483) | 0 | ||||||||||||||
Net cash (used in) provided by financing activities of continuing operations | (152,686) | 31,314 | 100,920 | ||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||||
Cash flows from discontinued operations: | |||||||||||||||||||||||||||||
Net cash flows provided by (used in) operating activities of discontinued operations | 44,238 | (43,159) | (6,641) | ||||||||||||||||||||||||||
Net cash flows used in by investing activities of discontinued operations | (77) | (1,416) | (1,161) | ||||||||||||||||||||||||||
Net cash flows (used in) provided by financing activities of discontinued operations | (3,921) | 32,917 | (347) | ||||||||||||||||||||||||||
Net cash flows provided by (used in) discontinued operations | 40,240 | (11,658) | (8,149) | ||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (3,642) | 558 | (4,016) | ||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 10,637 | (1,712) | (30,564) | ||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 23,818 | 25,530 | 56,094 | ||||||||||||||||||||||||||
Cash and cash equivalents at end of period | 34,455 | 23,818 | 25,530 | ||||||||||||||||||||||||||
Cash and cash equivalents of discontinued operations | 4,970 | 4,513 | 2,085 | ||||||||||||||||||||||||||
Cash and cash equivalents of continuing operations | $ | 29,485 | $ | 19,305 | $ | 23,445 |
2019 | 2018 | 2017 | ||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||||||
Supplemental disclosure of consolidated cash flow information: | Supplemental disclosure of consolidated cash flow information: | |||||||||||||||||||||||||||
Interest paid during the year | $ | 13,078 | $ | 8,544 | $ | 2,831 | Interest paid during the year | $ | 11,959 | $ | 13,162 | $ | 8,614 | |||||||||||||||
Income taxes paid during the year | $ | 33,061 | $ | 38,330 | $ | 31,126 | Income taxes paid during the year | $ | 16,869 | $ | 30,610 | $ | 36,021 |
•Incremental costs of obtaining a contract - These costs are included in selling, general and administrative expenses as the amortization period is generally one year or less. The Company expenses costs associated with obtaining and fulfilling contracts as incurred. •Shipping costs - The Company accounts for certain shipping and handling activities as fulfillment costs and expenses them as incurred. •Significant financing components - The Company has elected not to adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will generally be one year or less. • |
Sales tax and other related taxes - Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. |
Fiscal year ended June 30, 2019 | ||||||||||||
(in thousands) | ||||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | ||||||||||
Revenue by product/service: | ||||||||||||
Technology solutions | $ | 2,589,837 | $ | 1,228,017 | $ | 3,817,854 | ||||||
Master agency and professional services | — | 55,257 | 55,257 | |||||||||
$ | 2,589,837 | $ | 1,283,274 | $ | 3,873,111 |
Fiscal year ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | ||||||||||||||||||||||||||||||||||||||||||
Revenue by product/service: | ||||||||||||||||||||||||||||||||||||||||||||
Technology solutions | $ | 2,093,217 | $ | 892,814 | $ | 2,986,031 | ||||||||||||||||||||||||||||||||||||||
Master agency and professional services(a) | 0 | 61,703 | 61,703 | |||||||||||||||||||||||||||||||||||||||||
$ | 2,093,217 | $ | 954,517 | $ | 3,047,734 |
Fiscal year ended June 30, 2018 | ||||||||||||
(in thousands) | ||||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | ||||||||||
Revenue by product/service: | ||||||||||||
Technology solutions | $ | 2,628,988 | $ | 1,174,960 | $ | 3,803,948 | ||||||
Master agency and professional services | — | 42,312 | 42,312 | |||||||||
$ | 2,628,988 | $ | 1,217,272 | $ | 3,846,260 |
Fiscal year ended June 30, 2017 | ||||||||||||
(in thousands) | ||||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | ||||||||||
Revenue by product/service: | ||||||||||||
Technology solutions | $ | 2,389,256 | $ | 1,149,508 | $ | 3,538,764 | ||||||
Master agency and professional services | — | 29,422 | 29,422 | |||||||||
$ | 2,389,256 | $ | 1,178,930 | $ | 3,568,186 |
Fiscal year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | ||||||||||||||||||||||||||||||||||||||||||
Revenue by product/service: | ||||||||||||||||||||||||||||||||||||||||||||
Technology solutions | $ | 2,141,896 | $ | 1,052,854 | $ | 3,194,750 | ||||||||||||||||||||||||||||||||||||||
Master agency and professional services(a) | 0 | 55,049 | 55,049 | |||||||||||||||||||||||||||||||||||||||||
$ | 2,141,896 | $ | 1,107,903 | $ | 3,249,799 |
Fiscal year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by product/service: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Technology solutions | $ | 2,143,135 | $ | 979,262 | $ | 3,122,397 | ||||||||||||||||||||||||||||||||||||||||||||
Master agency and professional services(a) | 0 | 42,312 | 42,312 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 2,143,135 | $ | 1,021,574 | $ | 3,164,709 | |||||||||||||||||||||||||||||||||||||||||||||
(a) Includes Intelisys Communications, Inc., Canpango, and Intelisys Global Ltd. |
Fiscal year ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net (loss) income from continuing operations | $ | (79,227) | $ | 64,859 | $ | 35,456 | |||||||||||||||||||||||
Net loss from discontinued operations | (113,427) | (7,262) | (2,303) | ||||||||||||||||||||||||||
Net (loss) income | $ | (192,654) | $ | 57,597 | $ | 33,153 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted-average shares, basic | 25,378 | 25,642 | 25,522 | ||||||||||||||||||||||||||
Dilutive effect of share-based payments | 0 | 92 | 102 | ||||||||||||||||||||||||||
Weighted-average shares, diluted(1) | 25,378 | 25,734 | 25,624 | ||||||||||||||||||||||||||
Net (loss) income from continuing operations per common share, basic | (3.12) | 2.53 | 1.39 | ||||||||||||||||||||||||||
Net loss from discontinued operations per common share, basic | (4.47) | (0.28) | (0.09) | ||||||||||||||||||||||||||
Net (loss) income per common share, basic | $ | (7.59) | $ | 2.25 | $ | 1.30 | |||||||||||||||||||||||
Net (loss) income from continuing operations per common share, diluted | (3.12) | 2.52 | 1.38 | ||||||||||||||||||||||||||
Net loss from discontinued operations per common share, diluted | (4.47) | (0.28) | (0.09) | ||||||||||||||||||||||||||
Net (loss) income per common share, diluted | $ | (7.59) | $ | 2.24 | $ | 1.29 | |||||||||||||||||||||||
Fiscal year ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income | $ | 57,597 | $ | 33,153 | $ | 69,246 | |||||
Denominator: | |||||||||||
Weighted-average shares, basic | 25,642 | 25,522 | 25,318 | ||||||||
Dilutive effect of share-based payments | 92 | 102 | 197 | ||||||||
Weighted-average shares, diluted | 25,734 | 25,624 | 25,515 | ||||||||
Net income per common share, basic | $ | 2.25 | $ | 1.30 | $ | 2.74 | |||||
Net income per common share, diluted | $ | 2.24 | $ | 1.29 | $ | 2.71 |
June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Land | $ | 3,331 | $ | 3,331 | |||||||||||||
Buildings and leasehold improvements | 21,791 | 18,122 | |||||||||||||||
Computer software and equipment | 75,008 | 68,575 | |||||||||||||||
Furniture, fixtures and equipment | 17,775 | 19,442 | |||||||||||||||
Construction in progress | 476 | 2,751 | |||||||||||||||
Rental equipment | 10,207 | 12,056 | |||||||||||||||
128,588 | 124,277 | ||||||||||||||||
Less accumulated depreciation | (72,947) | (63,707) | |||||||||||||||
$ | 55,641 | $ | 60,570 |
June 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Land | $ | 3,331 | $ | 3,331 | |||
Buildings and leasehold improvements | 21,603 | 21,384 | |||||
Computer software and equipment | 70,357 | 74,220 | |||||
Furniture, fixtures and equipment | 26,676 | 27,077 | |||||
Construction in progress | 2,751 | 1,584 | |||||
Rental equipment | 12,056 | 13,817 | |||||
136,774 | 141,413 | ||||||
Less accumulated depreciation | (73,411 | ) | (68,371 | ) | |||
$ | 63,363 | $ | 73,042 |
June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Other receivables | $ | 56,266 | $ | 53,047 | |||||||||||||
Prepaid expense | 16,660 | 10,976 | |||||||||||||||
Other taxes receivable | 5,258 | 7,382 | |||||||||||||||
Other current assets | 16,497 | 12,348 | |||||||||||||||
$ | 94,681 | $ | 83,753 |
June 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Other receivables | $ | 63,699 | $ | 60,802 | |||
Foreign currency receivable | 165 | 157 | |||||
Prepaid expense | 12,845 | 6,004 | |||||
Other taxes receivable | 10,005 | 6,333 | |||||
Other current assets | 14,457 | 21,302 | |||||
$ | 101,171 | $ | 94,598 |
June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Deferred warranty revenue | $ | 12,101 | $ | 13,829 | |||||||||||||
Accrued compensation | 13,616 | 13,326 | |||||||||||||||
Other taxes payable | 15,756 | 11,700 | |||||||||||||||
Accrued marketing expense | 5,667 | 3,813 | |||||||||||||||
Accrued freight | 2,886 | 3,383 | |||||||||||||||
Short-term operating lease liability | 4,476 | — | |||||||||||||||
Other accrued liabilities | 22,184 | 18,578 | |||||||||||||||
$ | 76,686 | $ | 64,629 |
June 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Deferred warranty revenue | $ | 16,835 | $ | 20,483 | |||
Accrued compensation | 17,703 | 21,762 | |||||
Other taxes payable | 23,719 | 18,573 | |||||
Accrued marketing expense | 4,247 | 4,457 | |||||
Brazilian pre-acquisition contingencies | 761 | 1,385 | |||||
Accrued freight | 4,071 | 3,848 | |||||
Other accrued liabilities | 24,071 | 20,365 | |||||
$ | 91,407 | $ | 90,873 |
June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Long-term deferred warranty revenue | $ | 4,031 | $ | 5,624 | |||||||||||||
Long-term deferred compensation liability | 24,572 | 24,224 | |||||||||||||||
Interest rate swap | 9,433 | 3,504 | |||||||||||||||
Long-term income taxes payable | 6,674 | 7,376 | |||||||||||||||
Long-term operating lease liability | 20,760 | — | |||||||||||||||
Other long-term liabilities | 14,598 | 16,425 | |||||||||||||||
$ | 80,068 | $ | 57,153 |
June 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Long-term deferred warranty revenue | $ | 7,034 | $ | 7,235 | |||
Long-term deferred compensation liability | 24,224 | 21,757 | |||||
Interest rate swap | 3,504 | — | |||||
Long-term income taxes payable | 7,376 | 8,264 | |||||
Other long-term liabilities | 17,350 | 15,447 | |||||
$ | 59,488 | $ | 52,703 |
POS Portal | |||
(in thousands) | |||
Receivables | $ | 8,914 | |
Inventory | 8,352 | ||
Other current assets | 917 | ||
Property and equipment, net | 24,963 | ||
Goodwill | 101,198 | ||
Identifiable intangible assets | 57,000 | ||
Other non-current assets | 100 | ||
$ | 201,444 | ||
Accounts payable | $ | 10,897 | |
Accrued expenses and other current liabilities | 5,130 | ||
Contingent consideration | 13,098 | ||
Other long-term liabilities | 102 | ||
Long-term deferred taxes payable | 28,449 | ||
Consideration transferred, net of cash acquired | 143,768 | ||
$ | 201,444 |
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 135,954 | $ | 152,769 | $ | 288,723 | |||||||||||||||||||||||
Additions | 0 | 21,854 | 21,854 | ||||||||||||||||||||||||||
Unrealized loss on foreign currency translation | 11 | 127 | 138 | ||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 135,965 | $ | 174,750 | $ | 310,715 | |||||||||||||||||||||||
Additions | 0 | 30,445 | 30,445 | ||||||||||||||||||||||||||
Goodwill impairment charges | (119,037) | 0 | (119,037) | ||||||||||||||||||||||||||
Unrealized loss on foreign currency translation | (558) | (7,277) | (7,835) | ||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 16,370 | $ | 197,918 | $ | 214,288 |
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | |||||||||
(in thousands) | |||||||||||
Balance at June 30, 2017 | $ | 36,260 | $ | 164,621 | $ | 200,881 | |||||
Additions | 101,198 | — | 101,198 | ||||||||
Unrealized loss on foreign currency translation | (244 | ) | (3,661 | ) | (3,905 | ) | |||||
Balance at June 30, 2018 | $ | 137,214 | $ | 160,960 | $ | 298,174 | |||||
Additions | — | 21,854 | 21,854 | ||||||||
Unrealized loss on foreign currency translation | (137 | ) | (353 | ) | (490 | ) | |||||
Balance at June 30, 2019 | $ | 137,077 | $ | 182,461 | $ | 319,538 |
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 137,146 | $ | 56,107 | $ | 81,039 | $ | 131,263 | $ | 45,707 | $ | 85,556 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade names | 19,509 | 7,617 | 11,892 | 21,546 | 9,451 | 12,095 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 2,410 | 1,711 | 699 | 2,586 | 1,209 | 1,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplier partner program | 4,085 | 1,191 | 2,894 | 3,583 | 815 | 2,768 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Encryption key library | 19,900 | 7,255 | 12,645 | 19,900 | 4,768 | 15,132 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed technology | 14,004 | 1,626 | 12,378 | 4,512 | 226 | 4,286 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangibles | $ | 197,054 | $ | 75,507 | $ | 121,547 | $ | 183,390 | $ | 62,176 | $ | 121,214 |
June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||
Customer relationships | $ | 143,541 | $ | 51,823 | $ | 91,718 | $ | 139,479 | $ | 40,337 | $ | 99,142 | |||||||||||
Trade names | 23,831 | 11,320 | 12,511 | 27,123 | 12,224 | 14,899 | |||||||||||||||||
Non-compete agreements | 3,094 | 1,714 | 1,380 | 3,064 | 1,221 | 1,843 | |||||||||||||||||
Distributor agreements | 354 | 210 | 144 | 363 | 188 | 175 | |||||||||||||||||
Supplier partner program | 3,583 | 815 | 2,768 | 3,583 | 456 | 3,127 | |||||||||||||||||
Encryption key library | 19,900 | 4,768 | 15,132 | 19,900 | 2,280 | 17,620 | |||||||||||||||||
Developed technology | 4,512 | 226 | 4,286 | — | — | — | |||||||||||||||||
Total intangibles | $ | 198,815 | $ | 70,876 | $ | 127,939 | $ | 193,512 | $ | 56,706 | $ | 136,806 |
Amortization Expense | |||||
(in thousands) | |||||
Year Ended June 30, | |||||
2021 | $ | 19,313 | |||
2022 | 17,677 | ||||
2023 | 16,737 | ||||
2024 | 16,633 | ||||
2025 | 16,633 | ||||
Thereafter | 34,554 | ||||
Total | $ | 121,547 |
Amortization Expense | |||
(in thousands) | |||
Year Ended June 30, | |||
2020 | $ | 19,075 | |
2021 | 19,489 | ||
2022 | 17,698 | ||
2023 | 16,588 | ||
2024 | 16,443 | ||
Thereafter | 38,646 | ||
Total | $ | 127,939 |
June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Current portion of long-term debt | 7,839 | 4,085 | ||||||||||||||||||
Mississippi revenue bond, net of current portion | 4,425 | 4,764 | ||||||||||||||||||
Senior secured term loan facility, net of current portion | 138,750 | 146,250 | ||||||||||||||||||
Borrowings under revolving credit facility(a) | 67,714 | 172,390 | ||||||||||||||||||
Total debt | $ | 218,728 | $ | 327,489 | ||||||||||||||||
(a) Borrowing under the revolving credit facility classified as held for sale in the Consolidated Balance Sheets for our discontinued operations totaled $24.7 million and $28.4 million for the fiscal years ended June 30, 2020 and 2019, respectively. |
June 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Short-term borrowings | $ | 4,590 | $ | — | |||
Current portion of long-term debt | 4,085 | 551 | |||||
Mississippi revenue bond, net of current portion | 4,764 | 4,878 | |||||
Senior secured term loan facility, net of current portion | 146,250 | — | |||||
Borrowings under revolving credit facility | 200,817 | 244,000 | |||||
Total debt | $ | 360,506 | $ | 249,429 |
Revolving Credit Facility | Term Loan Facility | Mississippi Bond | Bank Overdraft Facility | ||||||||||||
(in thousands) | |||||||||||||||
Fiscal year: | |||||||||||||||
2020 | $ | — | $ | 3,750 | $ | 335 | $ | 4,590 | |||||||
2021 | — | 7,500 | 338 | — | |||||||||||
2022 | — | 7,500 | 343 | — | |||||||||||
2023 | — | 11,250 | 348 | — | |||||||||||
2024 | 200,817 | 120,000 | 352 | — | |||||||||||
Thereafter | — | — | 3,383 | — | |||||||||||
Total principal payments | $ | 200,817 | $ | 150,000 | $ | 5,099 | $ | 4,590 |
Revolving Credit Facility | Term Loan Facility | Mississippi Bond | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Fiscal year: | |||||||||||||||||||||||||||||||||||
2021 | $ | 0 | $ | 7,500 | $ | 339 | |||||||||||||||||||||||||||||
2022 | 0 | 7,500 | 343 | ||||||||||||||||||||||||||||||||
2023 | 0 | 11,250 | 348 | ||||||||||||||||||||||||||||||||
2024 | 67,714 | 120,000 | 352 | ||||||||||||||||||||||||||||||||
2025 | 0 | 0 | 357 | ||||||||||||||||||||||||||||||||
Thereafter | 0 | 0 | 3,025 | ||||||||||||||||||||||||||||||||
Total principal payments | $ | 67,714 | $ | 146,250 | $ | 4,764 |
Fiscal year ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Net foreign exchange derivative contract (gain) loss | $ | (3,975) | $ | 235 | $ | (436) | |||||||||||||||||||||||
Net foreign currency transactional and re-measurement loss | 4,500 | 400 | 1,614 | ||||||||||||||||||||||||||
Net foreign currency loss | $ | 525 | $ | 635 | $ | 1,178 |
Fiscal year ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Net foreign exchange derivative contract loss (gain) | $ | (558 | ) | $ | 386 | $ | 146 | ||||
Net foreign currency transactional and re-measurement loss | 1,714 | 1,710 | 1,773 | ||||||||
Net foreign currency loss | $ | 1,156 | $ | 2,096 | $ | 1,919 |
Fiscal Year Ended June 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Net interest expense (income) recognized as a result of interest rate swap | $ | 799 | $ | (233) | $ | 161 | |||||||||||
Unrealized (loss) gain in fair value of interest swap rates | (6,900) | (4,159) | 1,422 | ||||||||||||||
Net increase in accumulated other comprehensive (loss) income | (6,101) | (4,392) | 1,583 | ||||||||||||||
Income tax effect | 1,455 | 1,115 | (494) | ||||||||||||||
Net increase in accumulated other comprehensive (loss) income, net of tax | $ | (4,646) | $ | (3,277) | $ | 1,089 |
Fiscal Year Ended June 30, | |||||||||
2019 | 2018 | 2017 | |||||||
(in thousands) | |||||||||
Net interest (income) expense recognized as a result of interest rate swap | $ | (233 | ) | $ | 161 | $ | 7 | ||
Unrealized (loss) gain in fair value of interest swap rates | (4,159 | ) | 1,422 | 14 | |||||
Net increase in accumulated other comprehensive (loss) income | (4,392 | ) | 1,583 | 21 | |||||
Income tax effect | (1,115 | ) | 494 | 8 | |||||
Net increase in accumulated other comprehensive (loss) income, net of tax | $ | (3,277 | ) | $ | 1,089 | $ | 13 |
June 30, 2020 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of Derivatives Designated as Hedge Instruments | Fair Value of Derivatives Not Designated as Hedge Instruments | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 26 | ||||||||||||||||||||||||
Interest rate swap agreement | Other current liabilities | $ | 9,433 | $ | 0 |
June 30, 2019 | |||||||||
Balance Sheet Location | Fair Value of Derivatives Designated as Hedge Instruments | Fair Value of Derivatives Not Designated as Hedge Instruments | |||||||
(in thousands) | |||||||||
Derivative assets: | |||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | — | $ | 168 | ||||
Derivative liabilities: | |||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | — | $ | 165 | ||||
Interest rate swap agreement | Other current liabilities | $ | 3,504 | $ | — |
June 30, 2018 | |||||||||
Balance Sheet Location | Fair Value of Derivatives Designated as Hedge Instruments | Fair Value of Derivatives Not Designated as Hedge Instruments | |||||||
(in thousands) | |||||||||
Derivative assets: | |||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | — | $ | 157 | ||||
Interest rate swap agreement | Other current assets | $ | 1,604 | $ | — | ||||
Derivative liabilities: | |||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | — | $ | 156 |
June 30, 2019 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of Derivatives Designated as Hedge Instruments | Fair Value of Derivatives Not Designated as Hedge Instruments | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 21 | ||||||||||||||||||||||||
Interest rate swap agreement | Other current liabilities | $ | 3,504 | $ | 0 | ||||||||||||||||||||||||
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 27,159 | $ | 27,159 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 27,159 | $ | 27,159 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 27,159 | $ | 27,159 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | 26 | 0 | 26 | 0 | |||||||||||||||||||||||||||||||||||||
Interest rate swap agreement | 9,433 | 0 | 9,433 | 0 | |||||||||||||||||||||||||||||||||||||
Liability for contingent consideration | 46,334 | 0 | 0 | 46,334 | |||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 82,952 | $ | 27,159 | $ | 9,459 | $ | 46,334 |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
(in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 25,787 | $ | 25,787 | $ | — | $ | — | |||||||
Forward foreign currency exchange contracts | 168 | — | 168 | — | |||||||||||
Total assets at fair value | $ | 25,955 | $ | 25,787 | $ | 168 | $ | — | |||||||
Liabilities: | |||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 25,787 | $ | 25,787 | $ | — | $ | — | |||||||
Forward foreign currency exchange contracts | 165 | — | 165 | — | |||||||||||
Interest rate swap agreement | 3,504 | — | 3,504 | — | |||||||||||
Liability for contingent consideration, current and non-current | 77,925 | — | — | 77,925 | |||||||||||
Total liabilities at fair value | $ | 107,381 | $ | 25,787 | $ | 3,669 | $ | 77,925 |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 25,787 | $ | 25,787 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 25,787 | $ | 25,787 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 25,787 | $ | 25,787 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | 21 | 0 | 21 | 0 | |||||||||||||||||||||||||||||||||||||
Interest rate swap agreement | 3,504 | 0 | 3,504 | 0 | |||||||||||||||||||||||||||||||||||||
Liability for contingent consideration, current and non-current | 77,925 | 0 | 0 | 77,925 | |||||||||||||||||||||||||||||||||||||
Total liabilities at fair value | $ | 107,237 | $ | 25,787 | $ | 3,525 | $ | 77,925 |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
(in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 23,352 | $ | 23,352 | $ | — | $ | — | |||||||
Forward foreign currency exchange contracts | 157 | — | 157 | — | |||||||||||
Interest rate swap agreement | 1,604 | — | 1,604 | — | |||||||||||
Total assets at fair value | $ | 25,113 | $ | 23,352 | $ | 1,761 | $ | — | |||||||
Liabilities: | |||||||||||||||
Deferred compensation plan investments, current and non-current portion | $ | 23,352 | $ | 23,352 | $ | — | $ | — | |||||||
Forward foreign currency exchange contracts | 156 | — | 156 | — | |||||||||||
Liability for contingent consideration, current and non-current | 108,233 | — | — | 108,233 | |||||||||||
Total liabilities at fair value | $ | 131,741 | $ | 23,352 | $ | 156 | $ | 108,233 |
Contingent Consideration for the Fiscal Year Ended | |||||||||||
June 30, 2019 | |||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | |||||||||
(in thousands) | |||||||||||
Fair value at beginning of period | $ | — | $ | 108,233 | $ | 108,233 | |||||
Payments | — | (45,796 | ) | (45,796 | ) | ||||||
Change in fair value | — | 15,200 | 15,200 | ||||||||
Fluctuation due to foreign currency exchange | — | 288 | 288 | ||||||||
Fair value at end of period | $ | — | $ | 77,925 | $ | 77,925 |
June 30, 2020 | |||||
Worldwide Communications & Services Segment | |||||
(in thousands) | |||||
Fair value at beginning of period | $ | 77,925 | |||
Payments | (38,532) | ||||
Change in fair value | 6,941 | ||||
Fair value at end of period | $ | 46,334 |
June 30, 2019 | ||||||||
Worldwide Communications & Services Segment | ||||||||
(in thousands) | ||||||||
Fair value at beginning of period | $ | 108,233 | ||||||
Payments | (45,796) | |||||||
Change in fair value | 15,200 | |||||||
Fluctuation due to foreign currency exchange | 288 | |||||||
Fair value at end of period | $ | 77,925 |
Contingent Consideration for the Fiscal Year Ended | |||||||||||
June 30, 2018 | |||||||||||
Worldwide Barcode, Networking & Security Segment | Worldwide Communications & Services Segment | Total | |||||||||
(in thousands) | |||||||||||
Fair value at beginning of period | $ | — | $ | 114,036 | $ | 114,036 | |||||
Issuance of contingent consideration | 13,098 | — | 13,098 | ||||||||
Payments | (13,167 | ) | (40,858 | ) | (54,025 | ) | |||||
Adjustments to contingent consideration (1) | — | (779 | ) | (779 | ) | ||||||
Change in fair value | 69 | 36,974 | 37,043 | ||||||||
Fluctuation due to foreign currency exchange | — | (1,140 | ) | (1,140 | ) | ||||||
Fair value at end of period | $ | — | $ | 108,233 | $ | 108,233 |
Reporting Period | Valuation Technique | Significant Unobservable Inputs | Weighted Average Rates(a) | |||||||||||||||||||||||||||||||||||
June 30, 2020 | Discounted cash flow | Weighted average cost of capital | 3.0 | % | ||||||||||||||||||||||||||||||||||
June 30, 2019 | Discounted cash flow | Weighted average cost of capital | 14.2 | % | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA growth rate | 21.5 | % | ||||||||||||||||||||||||||||||||||||
(a)Weighted average rates identified for each significant unobservable input relate to the valuation of the Intelisys contingent consideration. Since the earnout period for Intelisys closed on June 30, 2020 the weighted average cost of capital represents the cost the debt. There is no EBITDA growth to report in the current year. |
Contingent Consideration | |||
(in thousands) | |||
Fiscal year: | |||
2020 | $ | 38,393 | |
2021 | 39,532 | ||
Total contingent consideration payments | $ | 77,925 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Share-based compensation related to: | |||||||||||
Equity classified stock options | $ | 868 | $ | 1,184 | $ | 1,356 | |||||
Equity classified restricted stock | 5,254 | 5,275 | 5,246 | ||||||||
Total share-based compensation | $ | 6,122 | $ | 6,459 | $ | 6,602 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Share-based compensation related to: | |||||||||||||||||||||||||||||
Equity classified stock options | $ | 508 | $ | 868 | $ | 1,184 | |||||||||||||||||||||||
Equity classified restricted stock | 4,970 | 5,177 | 5,195 | ||||||||||||||||||||||||||
Total share-based compensation | $ | 5,478 | $ | 6,045 | $ | 6,379 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Expected term | 4 years | 5 years | 5 years | ||||||||
Expected volatility | 32.93 | % | 30.70 | % | 30.88 | % | |||||
Risk-free interest rate | 2.84 | % | 2.17 | % | 1.84 | % | |||||
Dividend yield | 0.00 | % | 0.00 | % | 0.00 | % | |||||
Weighted-average fair value per option | $ | 11.86 | $ | 10.60 | $ | 11.26 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Expected term | 4 years | 5 years | |||||||||||||||||||||
Expected volatility | 32.93 | % | 30.70 | % | |||||||||||||||||||
Risk-free interest rate | 2.84 | % | 2.17 | % | |||||||||||||||||||
Dividend yield | 0.00 | % | 0.00 | % | |||||||||||||||||||
Weighted-average fair value per option | $ | 11.86 | $ | 10.60 |
Fiscal Year Ended June 30, 2019 | ||||||||||||
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Outstanding, beginning of year | 897,120 | $ | 37.33 | |||||||||
Granted during the period | 2,110 | 39.35 | ||||||||||
Exercised during the period | (43,975 | ) | 33.21 | |||||||||
Canceled, forfeited, or expired during the period | (4,560 | ) | 34.35 | |||||||||
Outstanding, end of year | 850,695 | 37.57 | 5.05 | $ | 259,658 | |||||||
Vested and expected to vest at June 30, 2019 | 850,220 | 37.57 | 5.05 | $ | 259,467 | |||||||
Exercisable, end of year | 748,263 | $ | 37.91 | 4.61 | $ | 257,612 |
Fiscal Year Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||||||||||||||||||||
Outstanding, beginning of year | 850,695 | $ | 37.57 | ||||||||||||||||||||||||||||||||||||||
Granted during the period | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Exercised during the period | (29,174) | 25.81 | |||||||||||||||||||||||||||||||||||||||
Canceled, forfeited, or expired during the period | (5,224) | 36.37 | |||||||||||||||||||||||||||||||||||||||
Outstanding, end of year | 816,297 | 37.99 | 4.15 | $ | 0 | ||||||||||||||||||||||||||||||||||||
Vested and expected to vest at June 30, 2020 | 816,263 | 37.99 | 4.15 | $ | 0 | ||||||||||||||||||||||||||||||||||||
Exercisable, end of year | 781,383 | $ | 38.16 | 4.00 | $ | 0 |
Fiscal Year Ended June 30, 2019 | ||||||||||
Options | Weighted Average Exercise Price | Weighted Average Grant Date Fair- Value | ||||||||
Unvested, beginning of year | 211,566 | $ | 35.69 | $ | 10.54 | |||||
Granted | 2,110 | 39.35 | 11.86 | |||||||
Vested | (106,684 | ) | 36.45 | 10.33 | ||||||
Canceled or forfeited | (4,560 | ) | 34.35 | 10.62 | ||||||
Unvested, end of year | 102,432 | $ | 35.03 | $ | 10.78 |
Fiscal Year Ended June 30, 2020 | |||||||||||||||||||||||||||||
Options | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||
Unvested, beginning of year | 102,432 | $ | 35.03 | $ | 10.78 | ||||||||||||||||||||||||
Granted | 0 | 0 | 0 | ||||||||||||||||||||||||||
Vested | (63,011) | 35.43 | 10.88 | ||||||||||||||||||||||||||
Canceled or forfeited | (4,507) | 35.90 | 11.00 | ||||||||||||||||||||||||||
Unvested, end of year | 34,914 | $ | 34.19 | $ | 10.58 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Shares Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||
$22.27 - $26.38 | 25,000 | 0.43 | 24.57 | 25,000 | 24.57 | |||||||||||
$26.38 - $30.49 | 19,731 | 3.44 | 29.80 | 19,731 | 29.80 | |||||||||||
$30.49 - $34.60 | 153,236 | 6.90 | 34.17 | 80,251 | 34.18 | |||||||||||
$34.60 - $38.71 | 371,169 | 4.67 | 37.04 | 343,832 | 37.04 | |||||||||||
$38.71 - $42.82 | 281,559 | 5.06 | 41.81 | 279,449 | 41.83 | |||||||||||
850,695 | 5.05 | $ | 37.57 | 748,263 | $ | 37.91 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||||||||||||||
Range of Exercise Prices | Shares Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||||||||||||||||||||||||||||||||||||||
$26.38 - $30.49 | 18,731 | 2.44 | 29.80 | 18,731 | 29.80 | |||||||||||||||||||||||||||||||||||||||||||||
$30.49 - $34.60 | 146,948 | 5.83 | 34.16 | 112,529 | 34.16 | |||||||||||||||||||||||||||||||||||||||||||||
$34.60 - $38.71 | 371,169 | 3.67 | 37.04 | 370,674 | 37.04 | |||||||||||||||||||||||||||||||||||||||||||||
$38.71 - $42.82 | 279,449 | 4.02 | 41.83 | 279,449 | 41.83 | |||||||||||||||||||||||||||||||||||||||||||||
816,297 | 4.15 | $ | 37.99 | 781,383 | $ | 38.16 |
Fiscal Year Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Shares granted | Date granted | Grant date fair value | Vesting period | ||||||||||||||||||||||||||||||||||||||
Employees | |||||||||||||||||||||||||||||||||||||||||
Certain employees based on performance | 204,524 | November 15, 2019 | $ | 35.25 | Annually over 3 years | ||||||||||||||||||||||||||||||||||||
Certain employees based upon hire | 14,225 | December 2, 2019 | $ | 35.15 | Annually over 3 years | ||||||||||||||||||||||||||||||||||||
Named executive officers based on performance | 42,199 | January 30, 2020 | $ | 35.19 | January 1, 2020 through December 31, 2022 | ||||||||||||||||||||||||||||||||||||
Non-Employee Directors | |||||||||||||||||||||||||||||||||||||||||
Certain Directors | 22,200 | November 15, 2019 | $ | 35.25 | 6 months | ||||||||||||||||||||||||||||||||||||
Certain Director based upon appointment | 700 | November 15, 2019 | $ | 35.25 | 6 months | ||||||||||||||||||||||||||||||||||||
Certain Director based upon appointment | 4,100 | May 14, 2020 | $ | 21.58 | 6 months |
Fiscal Year Ended June 30, 2019 | ||||||||||
Shares granted | Date granted | Grant date fair value | Vesting period | |||||||
Employees | ||||||||||
Certain employees based on performance | 127,506 | December 3, 2018 | $ | 39.35 | Annually over 3 years | |||||
Certain employees based on performance(1) | 27,192 | January 29, 2019 | $ | 37.27 | January 1, 2019 through December 31, 2020 | |||||
Certain employees based on performance(2) | 35,261 | January 29, 2019 | $ | 37.27 | January 1, 2019 through December 31, 2021 | |||||
Non-Employee Directors(3) | ||||||||||
Certain Directors | 20,400 | December 3, 2018 | $ | 39.35 | 6 months |
Fiscal Year Ended June 30, 2019 | ||||||
Shares | Weighted-Average Grant Date Fair Value | |||||
Outstanding, beginning of year | 253,519 | $ | 35.93 | |||
Granted during the period | 210,359 | 38.73 | ||||
Vested during the period | (133,196 | ) | 37.01 | |||
Cancelled, forfeited, or expired during the period | (9,797 | ) | 37.23 | |||
Outstanding, end of year | 320,885 | $ | 37.28 |
Fiscal Year Ended June 30, 2020 | |||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding, beginning of year | 320,885 | $ | 37.28 | ||||||||||||||
Granted during the period | 287,948 | 35.04 | |||||||||||||||
Vested during the period | (128,566) | 36.93 | |||||||||||||||
Cancelled, forfeited, or expired during the period | (41,811) | 36.71 | |||||||||||||||
Outstanding, end of year | 438,456 | $ | 35.37 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Matching contributions | $ | 1,214 | $ | 1,262 | $ | 1,130 | |||||||||||||||||||||||
Discretionary contributions | 0 | 1,536 | 4,573 | ||||||||||||||||||||||||||
Total contributions | $ | 1,214 | $ | 2,798 | $ | 5,703 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Matching contributions | $ | 1,283 | $ | 1,163 | $ | 875 | |||||
Discretionary contributions | 1,555 | 4,700 | 3,413 | ||||||||
Total contributions | $ | 2,838 | $ | 5,863 | $ | 4,288 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||||||
Federal | $ | 13,892 | $ | 18,223 | $ | 38,476 | |||||||||||||||||||||||
State | 3,244 | 4,459 | 3,504 | ||||||||||||||||||||||||||
Foreign | 1,188 | (2,342) | 7,481 | ||||||||||||||||||||||||||
Total current | 18,324 | 20,340 | 49,461 | ||||||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||||||
Federal | (8,526) | (4,913) | (10,336) | ||||||||||||||||||||||||||
State | (2,667) | (945) | (2,025) | ||||||||||||||||||||||||||
Foreign | 320 | 4,296 | (9,507) | ||||||||||||||||||||||||||
Total deferred | (10,873) | (1,562) | (21,868) | ||||||||||||||||||||||||||
Provision for income taxes | $ | 7,451 | $ | 18,778 | $ | 27,593 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 17,742 | $ | 38,263 | $ | 31,149 | |||||
State | 4,404 | 3,503 | 2,615 | ||||||||
Foreign | (157 | ) | 9,203 | 269 | |||||||
Total current | 21,989 | 50,969 | 34,033 | ||||||||
Deferred: | |||||||||||
Federal | (4,328 | ) | (9,987 | ) | (3,832 | ) | |||||
State | (806 | ) | (1,962 | ) | (397 | ) | |||||
Foreign | 3,456 | (11,248 | ) | 2,445 | |||||||
Total deferred | (1,678 | ) | (23,197 | ) | (1,784 | ) | |||||
Provision for income taxes | $ | 20,311 | $ | 27,772 | $ | 32,249 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
U.S. statutory rate | 21.0 | % | 28.0 | % | 35.0 | % | |||||
U.S. Federal income tax at statutory rate | $ | 16,361 | $ | 17,094 | $ | 35,524 | |||||
Increase (decrease) in income taxes due to: | |||||||||||
State and local income taxes, net of Federal benefit | 2,727 | 1,883 | 1,729 | ||||||||
Tax credits | (1,808 | ) | (1,825 | ) | (1,430 | ) | |||||
Valuation allowance | 2,142 | 1,530 | 444 | ||||||||
Effect of foreign operations, net | 2,103 | (1,396 | ) | (1,477 | ) | ||||||
Stock compensation | 35 | 1,049 | (61 | ) | |||||||
Capitalized acquisition costs | 69 | 48 | 231 | ||||||||
Nontaxable income | (828 | ) | (9 | ) | (4,437 | ) | |||||
Disallowed interest | 1,600 | 1,888 | 2,011 | ||||||||
Net favorable recovery | (2,670 | ) | — | — | |||||||
Other | 1,085 | (1,438 | ) | (285 | ) | ||||||
U.S. Tax Reform transition tax | (827 | ) | 9,609 | — | |||||||
U.S. Tax Reform impact of rate change on deferred taxes | — | (1,615 | ) | — | |||||||
Belgium Tax Reform impact of rate change on deferred taxes | — | 1,040 | — | ||||||||
Other jurisdictions impact of rate change on deferred taxes | (43 | ) | (86 | ) | — | ||||||
Global intangible low taxed income (GILTI) tax | 365 | — | — | ||||||||
Provision for income taxes | $ | 20,311 | $ | 27,772 | $ | 32,249 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
U.S. statutory rate | 21.0 | % | 21.0 | % | 28.0 | % | |||||||||||||||||||||||
U.S. Federal income tax at statutory rate | $ | (15,073) | $ | 17,564 | $ | 17,690 | |||||||||||||||||||||||
Increase (decrease) in income taxes due to: | |||||||||||||||||||||||||||||
State and local income taxes, net of Federal benefit | 1,316 | 2,864 | 1,968 | ||||||||||||||||||||||||||
Tax credits | (1,419) | (1,324) | (1,825) | ||||||||||||||||||||||||||
Valuation allowance | 1,699 | 57 | 1,304 | ||||||||||||||||||||||||||
Effect of varying statutory rates in foreign operations, net | 1,374 | 1,938 | 320 | ||||||||||||||||||||||||||
Stock compensation | 41 | 35 | 1,049 | ||||||||||||||||||||||||||
Capitalized acquisition costs | 59 | 69 | 48 | ||||||||||||||||||||||||||
Disallowed interest | 1,639 | 1,600 | 1,664 | ||||||||||||||||||||||||||
Earnings from foreign subsidiaries | 1,661 | 50 | 120 | ||||||||||||||||||||||||||
Net favorable recovery | (6,517) | (3,112) | 0 | ||||||||||||||||||||||||||
Global intangible low taxed income (GILTI) tax | (128) | 365 | 0 | ||||||||||||||||||||||||||
Non-deductible goodwill impairment | 20,180 | 0 | 0 | ||||||||||||||||||||||||||
Nontaxable income | 0 | (822) | 0 | ||||||||||||||||||||||||||
U.S. Tax Reform transition tax | 0 | (827) | 9,609 | ||||||||||||||||||||||||||
U.S. Tax Reform impact of rate change on deferred taxes | 0 | 0 | (2,701) | ||||||||||||||||||||||||||
Other jurisdictions impact of rate change on deferred taxes | 0 | (20) | 0 | ||||||||||||||||||||||||||
Other | 2,619 | 341 | (1,653) | ||||||||||||||||||||||||||
Provision for income taxes | $ | 7,451 | $ | 18,778 | $ | 27,593 |
June 30, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Deferred tax assets derived from: | |||||||
Allowance for accounts receivable | $ | 10,681 | $ | 12,874 | |||
Inventories | 4,561 | 4,060 | |||||
Nondeductible accrued expenses | 9,848 | 7,426 | |||||
Net operating loss carryforwards | 6,241 | 5,350 | |||||
Tax credits | 6,530 | 5,795 | |||||
Timing of amortization deduction from goodwill | 6,406 | 5,756 | |||||
Deferred compensation | 6,396 | 5,696 | |||||
Stock compensation | 3,034 | 2,809 | |||||
Timing of amortization deduction from intangible assets | 3,110 | 2,510 | |||||
Total deferred tax assets | 56,807 | 52,276 | |||||
Valuation allowance | (7,238 | ) | (5,098 | ) | |||
Total deferred tax assets, net of allowance | 49,569 | 47,178 | |||||
Deferred tax liabilities derived from: | |||||||
Timing of depreciation and other deductions from building and equipment | (6,719 | ) | (7,468 | ) | |||
Timing of amortization deduction from goodwill | (3,742 | ) | (1,782 | ) | |||
Timing of amortization deduction from intangible assets | (15,779 | ) | (17,498 | ) | |||
Total deferred tax liabilities | (26,240 | ) | (26,748 | ) | |||
Net deferred tax assets | $ | 23,329 | $ | 20,430 |
June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Deferred tax assets derived from: | |||||||||||||||||
Allowance for accounts receivable | $ | 6,466 | $ | 7,387 | |||||||||||||
Inventories | 3,226 | 3,255 | |||||||||||||||
Nondeductible accrued expenses | 11,109 | 9,054 | |||||||||||||||
Net operating loss carryforwards | 3,083 | 73 | |||||||||||||||
Tax credits | 6,734 | 6,046 | |||||||||||||||
Timing of amortization deduction from goodwill | 12,516 | 6,406 | |||||||||||||||
Deferred compensation | 7,247 | 6,396 | |||||||||||||||
Stock compensation | 3,034 | 3,034 | |||||||||||||||
Timing of amortization deduction from intangible assets | 4,145 | 3,110 | |||||||||||||||
Total deferred tax assets | 57,560 | 44,761 | |||||||||||||||
Valuation allowance | (9,195) | (4,447) | |||||||||||||||
Total deferred tax assets, net of allowance | 48,365 | 40,314 | |||||||||||||||
Deferred tax liabilities derived from: | |||||||||||||||||
Timing of depreciation and other deductions from building and equipment | (3,347) | (6,618) | |||||||||||||||
Timing of amortization deduction from goodwill | (7,390) | (3,742) | |||||||||||||||
Timing of amortization deduction from intangible assets | (16,882) | (14,507) | |||||||||||||||
Total deferred tax liabilities | (27,619) | (24,867) | |||||||||||||||
Net deferred tax assets | $ | 20,746 | $ | 15,447 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Domestic | $ | (83,517) | $ | 68,675 | $ | 63,185 | |||||||||||||||||||||||
Foreign | 11,741 | 14,962 | (136) | ||||||||||||||||||||||||||
Worldwide pretax earnings | $ | (71,776) | $ | 83,637 | $ | 63,049 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Domestic | $ | 67,426 | $ | 66,416 | $ | 79,871 | |||||
Foreign | 10,482 | (5,491 | ) | 21,624 | |||||||
Worldwide pretax earnings | $ | 77,908 | $ | 60,925 | $ | 101,495 |
June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Beginning Balance | $ | 1,234 | $ | 1,703 | $ | 1,826 | |||||||||||||||||||||||
Additions based on tax positions related to the current year | 137 | 69 | 157 | ||||||||||||||||||||||||||
Additions for tax positions of prior years | 0 | 0 | 0 | ||||||||||||||||||||||||||
Reduction for tax positions of prior years | (215) | (538) | (280) | ||||||||||||||||||||||||||
Ending Balance | $ | 1,156 | $ | 1,234 | $ | 1,703 |
June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Beginning Balance | $ | 2,053 | $ | 2,176 | $ | 2,148 | |||||
Additions based on tax positions related to the current year | 69 | 157 | 174 | ||||||||
Additions for tax positions of prior years | — | — | — | ||||||||
Reduction for tax positions of prior years | (888 | ) | (280 | ) | (146 | ) | |||||
Ending Balance | $ | 1,234 | $ | 2,053 | $ | 2,176 |
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Lease expense | $ | 9,519 | $ | 9,824 | $ | 8,703 |
Operating Lease Payments | Capital Lease Payments | Total Payments | |||||||||
(in thousands) | |||||||||||
Fiscal Year Ended June 30, | |||||||||||
2020 | $ | 8,043 | $ | 675 | $ | 8,718 | |||||
2021 | 7,197 | — | 7,197 | ||||||||
2022 | 5,940 | — | 5,940 | ||||||||
2023 | 5,092 | — | 5,092 | ||||||||
2024 | 4,205 | — | 4,205 | ||||||||
Thereafter | 10,780 | — | 10,780 | ||||||||
Total future minimum lease payments | 41,257 | 675 | 41,932 | ||||||||
Less: amounts representing interest on capital lease | — | 8 | 8 | ||||||||
Total future minimum principal lease payments | $ | 41,257 | $ | 667 | $ | 41,924 |
Operating leases | Balance Sheet location | June 30, 2020 | ||||||||||||
(in thousands) | ||||||||||||||
Operating lease right-of-use assets | Other non-current assets | $ | 23,581 | |||||||||||
Current operating lease liabilities | Accrued expenses and other current liabilities | 4,476 | ||||||||||||
Long-term operating lease liabilities | Other long-term liabilities | 20,760 |
Fiscal year ended | ||||||||
June 30, 2020 | ||||||||
(in thousands) | ||||||||
Operating lease cost | $ | 6,135 | ||||||
Variable lease cost | 1,485 | |||||||
$ | 7,620 |
Fiscal year ended | ||||||||
June 30, 2020 | ||||||||
(in thousands) | ||||||||
Cash paid for amounts in the measurement of lease liabilities | $ | 5,773 | ||||||
Right-of-use assets obtained in exchange for lease obligations | 1,672 |
June 30, 2020 | ||||||||
Weighted-average remaining lease term | 5.98 | |||||||
Weighted-average discount rate | 4.14 | % |
Capital Lease Obligations | |||||||||||||||||||||||
Property & Equipment | Accumulated Depreciation | Net Book Value | Short-Term | Long-Term | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
IT Infrastructure | $ | 1,583 | $ | (914 | ) | $ | 669 | $ | 667 | $ | — | $ | 667 |
Operating leases | ||||||||
(in thousands) | ||||||||
2021 | $ | 5,430 | ||||||
2022 | 4,988 | |||||||
2023 | 4,655 | |||||||
2024 | 4,158 | |||||||
2025 | 3,256 | |||||||
Thereafter | 5,977 | |||||||
Total future payments | 28,464 | |||||||
Less: amounts representing interest | 3,228 | |||||||
Present value of lease payments | $ | 25,236 |
June 30, 2019 | June 30, 2018 | ||||||
(in thousands) | |||||||
Assets | |||||||
Prepaid expenses and other assets (current) | $ | 761 | $ | 1,385 | |||
Other assets (noncurrent) | $ | 5,219 | $ | 5,700 | |||
Liabilities | |||||||
Other current liabilities | $ | 761 | $ | 1,385 | |||
Other long-term liabilities | $ | 5,219 | $ | 5,700 |
June 30, 2020 | June 30, 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Prepaid expenses and other assets (current) | $ | 14 | $ | 761 | |||||||||||||
Other assets (noncurrent) | $ | 3,652 | $ | 5,219 | |||||||||||||
Liabilities | |||||||||||||||||
Other current liabilities | $ | 14 | $ | 761 | |||||||||||||
Other long-term liabilities | $ | 3,652 | $ | 5,219 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 2,093,217 | $ | 2,141,896 | $ | 2,143,135 | |||||||||||||||||||||||
Worldwide Communications & Services | 954,517 | 1,107,903 | 1,021,574 | ||||||||||||||||||||||||||
$ | 3,047,734 | $ | 3,249,799 | $ | 3,164,709 | ||||||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 16,910 | $ | 17,274 | $ | 17,958 | |||||||||||||||||||||||
Worldwide Communications & Services | 15,239 | 12,891 | 13,041 | ||||||||||||||||||||||||||
Corporate | 3,179 | 3,488 | 3,493 | ||||||||||||||||||||||||||
$ | 35,328 | $ | 33,653 | $ | 34,492 | ||||||||||||||||||||||||
Change in fair value of contingent consideration: | |||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 0 | $ | 0 | $ | 69 | |||||||||||||||||||||||
Worldwide Communications & Services | 6,941 | 15,200 | 36,974 | ||||||||||||||||||||||||||
$ | 6,941 | $ | 15,200 | $ | 37,043 | ||||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | (83,515) | $ | 57,019 | $ | 49,313 | |||||||||||||||||||||||
Worldwide Communications & Services | 22,548 | 38,933 | 19,865 | ||||||||||||||||||||||||||
Corporate(1) | (4,000) | (1,218) | (172) | ||||||||||||||||||||||||||
$ | (64,967) | $ | 94,734 | $ | 69,006 | ||||||||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 3,632 | $ | 3,660 | $ | 4,222 | |||||||||||||||||||||||
Worldwide Communications & Services | 2,755 | 2,133 | 1,422 | ||||||||||||||||||||||||||
Corporate | 0 | 4 | 1,354 | ||||||||||||||||||||||||||
$ | 6,387 | $ | 5,797 | $ | 6,998 | ||||||||||||||||||||||||
Sales by Geography Category: | |||||||||||||||||||||||||||||
United States | $ | 2,787,475 | $ | 2,949,725 | $ | 2,907,591 | |||||||||||||||||||||||
International(2) | 292,600 | 332,019 | 317,513 | ||||||||||||||||||||||||||
Less intercompany sales | (32,341) | (31,945) | (60,395) | ||||||||||||||||||||||||||
$ | 3,047,734 | $ | 3,249,799 | $ | 3,164,709 | ||||||||||||||||||||||||
Fiscal Year Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Sales: | |||||||||||
Worldwide Barcode, Networking & Security | $ | 2,589,837 | $ | 2,628,988 | $ | 2,389,256 | |||||
Worldwide Communications & Services | 1,283,274 | 1,217,272 | 1,178,930 | ||||||||
$ | 3,873,111 | $ | 3,846,260 | $ | 3,568,186 | ||||||
Depreciation and amortization: | |||||||||||
Worldwide Barcode, Networking & Security | $ | 17,623 | $ | 18,233 | $ | 6,496 | |||||
Worldwide Communications & Services | 15,507 | 15,769 | 15,099 | ||||||||
Corporate | 3,488 | 3,493 | 3,373 | ||||||||
$ | 36,618 | $ | 37,495 | $ | 24,968 | ||||||
Change in fair value of contingent consideration: | |||||||||||
Worldwide Barcode, Networking & Security | $ | — | $ | 69 | $ | — | |||||
Worldwide Communications & Services | 15,200 | 36,974 | 5,211 | ||||||||
$ | 15,200 | $ | 37,043 | $ | 5,211 | ||||||
Operating income: | |||||||||||
Worldwide Barcode, Networking & Security | $ | 59,875 | $ | 56,911 | $ | 49,727 | |||||
Worldwide Communications & Services | 31,307 | 10,900 | 39,768 | ||||||||
Corporate(1) | (1,218 | ) | (172 | ) | (1,256 | ) | |||||
$ | 89,964 | $ | 67,639 | $ | 88,239 | ||||||
Capital expenditures: | |||||||||||
Worldwide Barcode, Networking & Security | $ | 3,876 | $ | 4,841 | $ | 3,796 | |||||
Worldwide Communications & Services | 3,335 | 1,964 | 3,163 | ||||||||
Corporate | 4 | 1,354 | 1,890 | ||||||||
$ | 7,215 | $ | 8,159 | $ | 8,849 | ||||||
Sales by Geography Category: | |||||||||||
United States | $ | 2,946,644 | $ | 2,877,225 | $ | 2,719,413 | |||||
International(2) | 955,322 | 999,245 | 882,446 | ||||||||
Less intercompany sales | (28,855 | ) | (30,210 | ) | (33,673 | ) | |||||
$ | 3,873,111 | $ | 3,846,260 | $ | 3,568,186 | ||||||
June 30, 2020 | June 30, 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Worldwide Barcode, Networking & Security | $ | 875,882 | $ | 1,097,207 | |||||||||||||
Worldwide Communications & Services | 757,148 | 905,439 | |||||||||||||||
Corporate | 59,064 | 64,615 | |||||||||||||||
$ | 1,692,094 | $ | 2,067,261 | ||||||||||||||
Property and equipment, net by Geography Category: | |||||||||||||||||
United States | $ | 53,083 | $ | 58,961 | |||||||||||||
International | 2,558 | 1,609 | |||||||||||||||
$ | 55,641 | $ | 60,570 |
June 30, 2019 | June 30, 2018 | ||||||
(in thousands) | |||||||
Assets: | |||||||
Worldwide Barcode, Networking & Security | $ | 1,097,207 | $ | 1,062,143 | |||
Worldwide Communications & Services | 905,439 | 841,490 | |||||
Corporate | 64,615 | 41,662 | |||||
$ | 2,067,261 | $ | 1,945,295 | ||||
Property and equipment, net by Geography Category: | |||||||
United States | $ | 58,961 | $ | 69,032 | |||
International | 4,402 | 4,010 | |||||
$ | 63,363 | $ | 73,042 |
Fiscal Years Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Currency translation adjustment | $ | (125,974) | $ | (87,913) | $ | (85,279) | |||||||||||||||||||||||
Unrealized (loss) gain on fair value of interest rate swap, net of tax | (6,821) | (2,175) | 1,102 | ||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (132,795) | $ | (90,088) | $ | (84,177) |
Fiscal Years Ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Currency translation adjustment | $ | (87,913 | ) | $ | (85,279 | ) | $ | (73,217 | ) | ||
Unrealized (loss) gain on fair value of interest rate swap, net of tax | (2,175 | ) | 1,102 | 13 | |||||||
Accumulated other comprehensive loss | $ | (90,088 | ) | $ | (84,177 | ) | $ | (73,204 | ) |
Fiscal years ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Tax expense (benefit) | $ | 1,025 | $ | (1,117) | $ | 2,059 | |||||||||||||||||||||||
Fiscal years ended June 30, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in thousands) | |||||||||||
Tax expense (benefit) | $ | 73 | $ | 1,993 | $ | (396 | ) | ||||
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Net sales | $ | 561,496 | $ | 623,312 | $ | 681,551 | |||||||||||||||||||||||
Cost of goods sold | 513,003 | 563,543 | 614,731 | ||||||||||||||||||||||||||
Gross profit | 48,493 | 59,769 | 66,820 | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 53,946 | 61,574 | 65,183 | ||||||||||||||||||||||||||
Depreciation expense | 975 | 1,127 | 1,026 | ||||||||||||||||||||||||||
Intangible amortization expense | 1,403 | 1,839 | 1,977 | ||||||||||||||||||||||||||
Impairment charges | 13,747 | 0 | 0 | ||||||||||||||||||||||||||
Operating loss | (21,578) | (4,771) | (1,366) | ||||||||||||||||||||||||||
Interest expense, net | 1,399 | 195 | 24 | ||||||||||||||||||||||||||
Loss on held for sale classification | 88,923 | 0 | 0 | ||||||||||||||||||||||||||
Other expense, net | 1,124 | 763 | 733 | ||||||||||||||||||||||||||
Loss from discontinued operations before taxes | (113,024) | (5,729) | (2,123) | ||||||||||||||||||||||||||
Income tax expense | 403 | 1,533 | 180 | ||||||||||||||||||||||||||
Net loss from discontinued operations | $ | (113,427) | $ | (7,262) | $ | (2,303) |
June 30, 2020 | June 30, 2019 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 4,970 | $ | 4,513 | |||||||||||||
Accounts receivable, net | 117,200 | 131,560 | |||||||||||||||
Inventories, net | 106,779 | 143,263 | |||||||||||||||
Prepaid expenses and other current assets | 23,808 | 17,417 | |||||||||||||||
Total current assets | 252,757 | 296,753 | |||||||||||||||
Property and equipment, net | 1,833 | 2,793 | |||||||||||||||
Goodwill | 0 | 8,823 | |||||||||||||||
Identifiable intangible assets, net | 0 | 6,726 | |||||||||||||||
Deferred income taxes | 9,349 | 9,277 | |||||||||||||||
Other non-current assets | 6,215 | 1,460 | |||||||||||||||
Total assets, before valuation allowance | 270,154 | 325,832 | |||||||||||||||
Less: valuation allowance | (88,923) | 0 | |||||||||||||||
Total assets, net of valuation allowance (1) | $ | 181,231 | $ | 325,832 | |||||||||||||
Liabilities | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 56,098 | $ | 69,810 | |||||||||||||
Accrued expenses and other current liabilities | 14,815 | 14,763 | |||||||||||||||
Other taxes payable | 20,378 | 12,018 | |||||||||||||||
Short-term borrowings | 3,524 | 4,590 | |||||||||||||||
Income tax payable | 1,085 | 351 | |||||||||||||||
Total current liabilities | 95,900 | 101,532 | |||||||||||||||
Borrowings under revolving credit facility | 24,704 | 28,427 | |||||||||||||||
Other long-term liabilities | 7,418 | 3,730 | |||||||||||||||
Total liabilities(1) | 128,022 | 133,689 |
Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Loss on held for sale classification | $ | 88,923 | $ | 0 | $ | 0 | |||||||||||||||||||||||
Impairment charges | 13,747 | 0 | 0 | ||||||||||||||||||||||||||
Depreciation and amortization | 2,378 | 2,966 | 3,003 | ||||||||||||||||||||||||||
Capital expenditures | (77) | (1,416) | (1,161) |
ITEM 9B. Other Information. |
Description | Balance at Beginning of Period | Amounts Charged to Expense | Reductions (1) | Other (2) | Balance at End of Period | ||||||||||||||||||||||||
Allowance for bad debt: | |||||||||||||||||||||||||||||
Year ended June 30, 2018 | $ | 34,246 | 6,127 | (5,297) | (1,233) | $ | 33,843 | ||||||||||||||||||||||
Trade and current note receivable allowance | $ | 33,843 | |||||||||||||||||||||||||||
Year ended June 30, 2019 | $ | 33,843 | 1,712 | (9,005) | 971 | $ | 27,521 | ||||||||||||||||||||||
Trade and current note receivable allowance | $ | 27,521 | |||||||||||||||||||||||||||
Year ended June 30, 2020 | $ | 27,521 | 1,621 | (5,176) | (2,060) | $ | 21,906 | ||||||||||||||||||||||
Trade and current note receivable allowance | $ | 21,906 |
Description | Balance at Beginning of Period | Amounts Charged to Expense | Reductions (1) | Other (2) | Balance at End of Period | |||||||||||
Allowance for bad debt: | ||||||||||||||||
Year ended June 30, 2017 | $ | 39,032 | 8,901 | (3,860 | ) | 361 | $ | 44,434 | ||||||||
Trade and current note receivable allowance | $ | 44,434 | ||||||||||||||
Year ended June 30, 2018 | $ | 44,434 | 7,075 | (5,610 | ) | (338 | ) | $ | 45,561 | |||||||
Trade and current note receivable allowance | $ | 45,561 | ||||||||||||||
Year ended June 30, 2019 | $ | 45,561 | 2,282 | (9,421 | ) | 427 | $ | 38,849 | ||||||||
Trade and current note receivable allowance | $ | 38,849 |
SCANSOURCE, INC. | ||||||||||||||
Date: | August 31, 2020 | |||||||||||||
/s/ MICHAEL L. BAUR | ||||||||||||||
Michael L. Baur | ||||||||||||||
Chairman, Chief Executive Officer and President |
Exhibit Index | ||||||||||
Exhibit Number | Description | Filed herewith | Form | Exhibit | Filing Date | |||||
2.1 | 8-K | 10.1 | 8/15/2014 | |||||||
2.2 | 10-Q | 2.1 | 2/3/2015 | |||||||
2.3+ | 10-Q | 10.1 | 11/7/2016 | |||||||
2.4+ | 10-K | 2.5 | 8/29/2017 | |||||||
3.1 | 10-Q | 3.1 | 2/3/2005 | |||||||
3.2 | 8-K | 3.1 | 11/30/2018 | |||||||
4.1 | Form of Common Stock Certificate | SB-2 | 4.1 | 2/7/1994 | ||||||
4.2 | X | |||||||||
Executive Compensation Plans and Arrangements | ||||||||||
10.1 | 10-Q | 10.4 | 11/2/2012 | |||||||
10.2 | 10-Q | 10.3 | 5/6/2011 | |||||||
10.3 | 10-Q | 10.1 | 2/3/2015 | |||||||
10.4 | 8-K | 10.1 | 12/7/2009 | |||||||
10.5 | S-8 | 99 | 12/5/2013 | |||||||
10.6 | S-8 | 99 | 12/5/2013 | |||||||
10.7 | 10-Q | 10.2 | 5/6/2011 | |||||||
10.8 | 8-K | 10.3 | 6/21/2017 | |||||||
10.9 | 8-K | 10.3 | 12/7/2009 | |||||||
10.10 | 10-Q | 10.2 | 2/4/2011 | |||||||
10.11 | 8-K | 10.4 | 12/7/2009 | |||||||
10.12 | 10-Q | 10.3 | 2/4/2011 |
10.13 | 10-Q | 10.1 | 2/6/2014 | |||||||
10.14 | 10-Q | 10.2 | 2/6/2014 | |||||||
10.15 | 10-Q | 10.3 | 2/6/2014 | |||||||
10.16 | 10-Q | 10.4 | 2/6/2014 | |||||||
10.17 | 10-K | 10.33 | 8/28/2014 | |||||||
10.18 | 10-K | 10.34 | 8/28/2014 | |||||||
10.19 | 8-K | 10.1 | 12/8/2017 | |||||||
10.20 | 8-K | 10.2 | 12/8/2017 | |||||||
10.21 | 8-K | 10.3 | 12/8/2017 | |||||||
10.22 | 8-K | 10.4 | 12/8/2017 | |||||||
10.23 | 8-K | 10.1 | 6/21/2017 | |||||||
10.24 | 10-K | 10.24 | 8/28/2014 | |||||||
10.25 | 8-K | 10.2 | 6/21/2017 | |||||||
10.26 | 8-K | 10.1 | 8/24/2017 | |||||||
10.27 | X | |||||||||
10.28 | 10-K | 10.32 | 8/28/2018 | |||||||
10.29 | 8-K | 10.1 | 11/30/2018 | |||||||
10.30 | 8-K | 10.2 | 11/30/2018 | |||||||
10.31 | 8-K | 10.3 | 11/30/2018 | |||||||
10.32 | 8-K | 10.4 | 11/30/2018 | |||||||
10.33 | 8-K | 10.5 | 11/30/2018 | |||||||
Bank Agreements |
10.34 | 8-K | 10.1 | 5/1/2019 | |||||||
Other Agreements | ||||||||||
10.35+ | 10-K | 10.26 | 8/29/2007 | |||||||
10.36+ | 10-K | 10.54 | 8/29/2016 | |||||||
10.37+ | 10-Q | 10.1 | 5/9/2019 | |||||||
10.38++ | X | |||||||||
10.39++ | X | |||||||||
10.40++ | X | |||||||||
10.41++ | X | |||||||||
10.42++ | X | |||||||||
10.43 | X | |||||||||
10.44++ | X | |||||||||
10.45 | X | |||||||||
10.46 | X | |||||||||
10.47 | X | |||||||||
10.48++ | X | |||||||||
10.49++ | X | |||||||||
10.50++ | X | |||||||||
10.51+ | 10-Q/A | 10.1 | 10/24/2014 | |||||||
10.52+ | 10-K | 10.50 | 8/29/2016 | |||||||
10.53+ | 10-K | 10.51 | 8/29/2016 | |||||||
10.54+ | 10-K | 10.51 | 8/29/2017 | |||||||
10.55++ | 10-Q | 10.2 | 5/9/2019 |
Title | Date | |||||||||||||
/s/ MICHAEL L. BAUR | Chairman, Chief Executive Officer and President | August 31, 2020 | ||||||||||||
Michael L. Baur | (principal executive officer) | |||||||||||||
/s/ GERALD LYONS | Senior Executive Vice President and Chief Financial Officer | August 31, 2020 | ||||||||||||
Gerald Lyons | (principal financial officer and principal accounting officer) | |||||||||||||
/s/ PETER C. BROWNING | Lead Independent Director | August 31, 2020 | ||||||||||||
Peter C. Browning | ||||||||||||||
/s/ MICHAEL J. GRAINGER | Director | August 31, 2020 | ||||||||||||
Michael J. Grainger | ||||||||||||||
/s/ DOROTHY F. RAMONEDA | Director | August 31, 2020 | ||||||||||||
Dorothy F. Ramoneda | ||||||||||||||
/s/ JOHN P. REILLY | Director | August 31, 2020 | ||||||||||||
John P. Reilly | ||||||||||||||
/s/ JEFFREY R. RODEK | Director | August 31, 2020 | ||||||||||||
Jeffrey R. Rodek | ||||||||||||||
/s/ ELIZABETH O. TEMPLE | Director | August 31, 2020 | ||||||||||||
Elizabeth O. Temple | ||||||||||||||
/s/ CHARLES R. WHITCHURCH | Director | August 31, 2020 | ||||||||||||
Charles R. Whitchurch | ||||||||||||||
Exhibit Index | ||||||||||||||||||||||||||||||||
Exhibit Number | Description | Filed herewith | Form | Exhibit | Filing Date | |||||||||||||||||||||||||||
2.1 | 8-K | 10.1 | 8/15/2014 | |||||||||||||||||||||||||||||
2.2 | 10-Q | 2.1 | 2/3/2015 | |||||||||||||||||||||||||||||
2.3+ | 10-Q | 10.1 | 11/7/2016 | |||||||||||||||||||||||||||||
3.1 | 10-Q | 3.1 | 2/3/2005 | |||||||||||||||||||||||||||||
3.2 | 8-K | 3.1 | 11/30/2018 | |||||||||||||||||||||||||||||
4.1 | Form of Common Stock Certificate | SB-2 | 4.1 | 2/7/1994 | ||||||||||||||||||||||||||||
4.2 | 10-K | 4.2 | 8/22/2019 | |||||||||||||||||||||||||||||
Executive Compensation Plans and Arrangements | ||||||||||||||||||||||||||||||||
10.1 | 10-Q | 10.1 | 2/3/2015 | |||||||||||||||||||||||||||||
10.2 | 8-K | 10.1 | 12/7/2009 | |||||||||||||||||||||||||||||
10.3 | S-8 | 99 | 12/5/2013 | |||||||||||||||||||||||||||||
10.4 | S-8 | 99 | 12/5/2013 | |||||||||||||||||||||||||||||
10.5 | 10-Q | 10.2 | 5/6/2011 | |||||||||||||||||||||||||||||
10.6 | 8-K | 10.3 | 6/21/2017 | |||||||||||||||||||||||||||||
10.7 | 8-K | 10.3 | 12/7/2009 | |||||||||||||||||||||||||||||
10.8 | 10-Q | 10.2 | 2/4/2011 | |||||||||||||||||||||||||||||
10.9 | 8-K | 10.4 | 12/7/2009 | |||||||||||||||||||||||||||||
10.10 | 10-Q | 10.3 | 2/4/2011 | |||||||||||||||||||||||||||||
10.11 | 10-Q | 10.1 | 2/6/2014 | |||||||||||||||||||||||||||||
10.12 | 10-Q | 10.2 | 2/6/2014 |
10.13 | 10-Q | 10.3 | 2/6/2014 | |||||||||||||||||||||||||||||
10.14 | 10-Q | 10.4 | 2/6/2014 | |||||||||||||||||||||||||||||
10.15 | 10-K | 10.33 | 8/28/2014 | |||||||||||||||||||||||||||||
10.16 | 10-K | 10.34 | 8/28/2014 | |||||||||||||||||||||||||||||
10.17 | 8-K | 10.1 | 12/8/2017 | |||||||||||||||||||||||||||||
10.18 | 8-K | 10.2 | 12/8/2017 | |||||||||||||||||||||||||||||
10.19 | 8-K | 10.3 | 12/8/2017 | |||||||||||||||||||||||||||||
10.20 | 8-K | 10.4 | 12/8/2017 | |||||||||||||||||||||||||||||
10.21 | 8-K | 10.1 | 6/21/2017 | |||||||||||||||||||||||||||||
10.22 | 10-K | 10.24 | 8/28/2014 | |||||||||||||||||||||||||||||
10.23 | 8-K | 10.2 | 6/21/2017 | |||||||||||||||||||||||||||||
10.24 | 8-K | 10.1 | 8/24/2017 | |||||||||||||||||||||||||||||
10.25 | 10-K | 10.27 | 8/22/2019 | |||||||||||||||||||||||||||||
10.26 | 10-K | 10.32 | 8/28/2018 | |||||||||||||||||||||||||||||
10.27 | 8-K | 10.1 | 11/30/2018 | |||||||||||||||||||||||||||||
10.28 | 8-K | 10.2 | 11/30/2018 | |||||||||||||||||||||||||||||
10.29 | 8-K | 10.3 | 11/30/2018 | |||||||||||||||||||||||||||||
10.30 | 8-K | 10.4 | 11/30/2018 | |||||||||||||||||||||||||||||
10.31 | 8-K | 10.5 | 11/30/2018 | |||||||||||||||||||||||||||||
10.32 | 8-K | 10.1 | 1/30/2020 | |||||||||||||||||||||||||||||
Bank Agreements | ||||||||||||||||||||||||||||||||
10.33 | 8-K | 10.1 | 5/1/2019 | |||||||||||||||||||||||||||||
Other Agreements | ||||||||||||||||||||||||||||||||
10.34+ | 10-K | 10.26 | 8/29/2007 |
10.35+ | 10-K | 10.54 | 8/29/2016 | |||||||||||||||||||||||||||||
10.36+ | 10-Q | 10.1 | 5/9/2019 | |||||||||||||||||||||||||||||
10.37++ | 10-K | 10.38 | 8/22/2019 | |||||||||||||||||||||||||||||
10.38++ | 10-K | 10.39 | 8/22/2019 | |||||||||||||||||||||||||||||
10.39++ | 10-K | 10.40 | 8/22/2019 | |||||||||||||||||||||||||||||
10.40++ | 10-K | 10.41 | 8/22/2019 | |||||||||||||||||||||||||||||
10.41++ | 10-K | 10.42 | 8/22/2019 | |||||||||||||||||||||||||||||
10.42 | 10-K | 10.43 | 8/22/2019 | |||||||||||||||||||||||||||||
10.43++ | 10-K | 10.44 | 8/22/2019 | |||||||||||||||||||||||||||||
10.44 | 10-K | 10.45 | 8/22/2019 | |||||||||||||||||||||||||||||
10.45 | 10-K | 10.46 | 8/22/2019 | |||||||||||||||||||||||||||||
10.46 | 10-K | 10.47 | 8/22/2019 | |||||||||||||||||||||||||||||
10.47++ | 10-K | 10.48 | 8/22/2019 | |||||||||||||||||||||||||||||
10.48++ | 10-K | 10.49 | 8/22/2019 | |||||||||||||||||||||||||||||
10.49++ | 10-K | 10.50 | 8/22/2019 | |||||||||||||||||||||||||||||
10.50+ | 10-Q/A | 10.1 | 10/24/2014 | |||||||||||||||||||||||||||||
10.51+ | 10-K | 10.50 | 8/29/2016 | |||||||||||||||||||||||||||||
10.52+ | 10-K | 10.51 | 8/29/2016 | |||||||||||||||||||||||||||||
10.53+ | 10-K | 10.51 | 8/29/2017 | |||||||||||||||||||||||||||||
10.54++ | 10-Q | 10.2 | 5/9/2019 | |||||||||||||||||||||||||||||
10.55 | X | |||||||||||||||||||||||||||||||
21.1 | X | |||||||||||||||||||||||||||||||
23.1 | X | |||||||||||||||||||||||||||||||
31.1 | X |
31.2 | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following materials from our Annual Report on Form 10-K for the year ended June 30, | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
+ | Confidential treatment has been requested or granted with respect to certain portions of this Exhibit, which portions have been omitted and filed separately with the Commission as part of an application for confidential treatment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
'++ | Portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our SEC file number for documents filed with the SEC pursuant to the Securities Exchange Act of 1934, as amended, is 000-26926. |