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Tech Data Corporation Reports Second Quarter Fiscal Year 2019 Results

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Tech Data Corporation Reports Second Quarter Fiscal Year 2019 Results

PR Newswire

CLEARWATER, Fla., Aug. 30, 2018 /PRNewswire/ -- Tech Data (NASDAQ:TECD) (the "Company") today announced its financial results for the second quarter ended July 31, 2018.


 Second quarter ended July 31,

Six months ended July 31,

($ in millions,
except per share amounts)

2018

2017

Y/Y
Change

2018

2017

Y/Y
Change

Net Sales

$8,886.1

$8,092.4

10%

$17,434.4

$15,116.0

15%








Operating income (GAAP)

$110.4

$103.5

7%

$180.9

$178.6

1%

Operating margin (GAAP)

1.24%

1.28%

-4 bps

1.04%

1.18%

-14 bps








Operating income (Non-GAAP)

$135.0

$127.8

6%

$259.0

$251.1

3%

Operating margin (Non-GAAP)

1.52%

1.58%

-6 bps

1.49%

1.66%

-17 bps








Net income (GAAP)

$75.9

$47.5

60%

$109.6

$78.1

40%

Net income (Non-GAAP)

$77.7

$66.7

16%

$148.5

$136.8

9%








EPS - diluted (GAAP)

$1.97

$1.24

59%

$2.84

$2.06

38%

EPS - diluted (Non-GAAP)

$2.01

$1.74

16%

$3.85

$3.61

7%


A reconciliation of GAAP to non-GAAP financial measures is presented in the financial tables of this press release.

This information is also available on the Investor Relations section of Tech Data's website at www.techdata.com/investor.

Financial Highlights for the Second Quarter Ended July 31, 2018:

  • Net sales were $8.9 billion, an increase of 10 percent compared to the prior-year quarter. On a constant currency basis, net sales increased 8 percent.   
                                                       
    • Americas: Net sales were $4.0 billion (46 percent of worldwide net sales), an increase of 7 percent compared to the prior-year quarter.
                                                          
    • Europe: Net sales were $4.5 billion (51 percent of worldwide net sales), an increase of 13 percent compared to the prior-year quarter. On a constant currency basis, net sales increased 9 percent.
                                                         
    • Asia Pacific: Net sales were $0.3 billion (3 percent of worldwide net sales), an increase of 5 percent compared to the prior-year quarter. On a constant currency basis, net sales increased 7 percent.
                                                         
  • Gross profit was $527.0 million, an increase of $11.4 million, or 2 percent compared to the prior-year quarter. As a percentage of net sales, gross profit was 5.93 percent compared to 6.37 percent in the prior-year quarter.  
                                                       
  • Selling, general and administrative expenses ("SG&A") were $415.3 million, or 4.67 percent of net sales, compared to $410.6 million, or 5.07 percent of net sales in the prior-year quarter. Non-GAAP SG&A was $392.1 million, an increase of $4.4 million, or 1 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP SG&A was 4.41 percent, compared to 4.79 percent in the prior-year quarter.
                                                       
  • Worldwide operating income was $110.4 million, or 1.24 percent of net sales compared to $103.5 million or 1.28 percent of net sales in the prior-year quarter. Non-GAAP operating income was $135.0 million, an increase of $7.1 million, or 6 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 1.52 percent, compared to 1.58 percent in the prior year quarter.  
                                                       
    • Americas: Operating income was $87.9 million, or 2.17 percent of net sales, compared to $88.0 million, or 2.33 percent of net sales in the prior-year quarter. Non-GAAP operating income was $95.4 million, an increase of $10.7 million, or 13 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 2.36 percent, an improvement of 11 basis points from the prior-year quarter.
                                                         
    • Europe: Operating income was $29.1 million, or 0.64 percent of net sales, compared to $18.5 million, or 0.46 percent of net sales in the prior-year quarter. Non-GAAP operating income was $44.3 million, an increase of $0.9 million, or 2 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 0.97 percent compared to 1.07 percent in the prior-year quarter.
                                                         
    • Asia Pacific: Operating income was $1.3 million, or 0.45 percent of net sales, compared to $5.1 million, or 1.81 percent of net sales in the prior-year quarter. Non-GAAP operating income was $2.5 million, a decrease of $4.2 million, or 63 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 0.86 percent compared to 2.39 percent in the prior-year quarter.
                                                         
    • Stock-based compensation expense was $8.0 million, essentially flat from the prior-year quarter. This includes $0.7 million of acquisition and integration-related stock compensation expense. These expenses are excluded from the regional operating results and presented as a separate line item in the company's segment reporting (see the GAAP to non-GAAP reconciliation in the financial tables of this press release).
                                                         
  • Net income was $75.9 million, compared to $47.5 million in the prior-year quarter. Non-GAAP net income was $77.7 million, an increase of $11.0 million, or 16 percent, compared to the prior-year quarter.
                                                       
  • Earnings per share on a diluted basis ("EPS") were $1.97, compared to $1.24 in the prior year quarter. Non-GAAP EPS was $2.01, an increase of $0.27, or 16 percent compared to the prior-year quarter.
                                                       
  • Net cash generated by operations during the quarter was $561 million.
                                                       
  • Return on invested capital for the trailing twelve months was 5 percent, compared to 10 percent in the prior-year period. The adjusted return on invested capital for the trailing twelve months was 11 percent, compared to 12 percent in the prior-year period.

Global Business Optimization Program

Tech Data also announced a Global Business Optimization Program ("GBO Program") designed to create a more agile and cost-efficient organization that is structured for sustainable, long-term profitable growth. Components of the GBO Program include:

  • Enhancing the Company's regional go-to-market models to deliver even greater value to channel partners;
  • Digitizing processes to drive a more responsive, empowered and nimble work environment; and
  • Driving productivity improvements through increased centralization and standardization throughout the global organization

The GBO Program is expected to result in annual cost savings of $70 million to $80 million, of which approximately half will be reinvested to accelerate the Company's strategic priorities. To achieve these cost savings, the Company expects to incur one-time costs of $70 million to $80 million over the next 18 to 24 months. Through July 31, 2018, the Company incurred GBO Program-related costs of approximately $18 million, which are included in acquisition, integration and restructuring expenses.

"Fueled by strong demand for Endpoint Solutions, Q2 worldwide sales grew 10 percent to $8.9 billion — the high end of our guidance range,' said Rich Hume, chief executive officer. "Non-GAAP earnings per share improved 16 percent from the year-ago quarter to $2.01, however, came in at the lower end of our expected range largely due to product mix. The strength in high-velocity sales generated exceptionally strong cash from operations of $561 million and produced a return on invested capital of 11 percent. Looking ahead, we will continue to build on our strengths – the powerful combination of our global scope with local expertise; strong operations; valued channel partner relationships; and dedicated colleagues, as we invest in both our people and our business. The Global Business Optimization Program we announced today will enable us to accelerate our strategic priorities and set a new standard in our industry by creating a more efficient and agile organization, and to secure our next wave of sustainable, profitable growth."

Business Outlook  

  • For the quarter ending October 31, 2018, the Company anticipates worldwide net sales to be in the range of $8.7 billion to $9.0 billion.
  • For the quarter ending October 31, 2018, the Company anticipates EPS to be in the range of $1.19 to $1.49 and non-GAAP EPS to be in the range of $2.00 to $2.30.
  • This guidance assumes an average U.S. dollar to euro exchange rate of $1.14 to €1.00. 
  • This guidance assumes weighted average diluted shares outstanding of 38.6 million.
  • For the quarter ending October 31, 2018, the Company anticipates its effective tax rate will be in the range of 24 percent to 26 percent.

Webcast Details

Tech Data will hold a conference call today at 9:00 a.m. (ET) to discuss its financial results for the second quarter ended July 31, 2018. A webcast of the call, including supplemental schedules, will be available to all interested parties and can be obtained at www.techdata.com/investor. The webcast will be available for replay for three months.

Non-GAAP Financial Information

The non-GAAP financial information contained in this release is included with the intention of providing investors a more complete understanding of the Company's operational results and trends, but should only be used in conjunction with results reported in accordance with Generally Accepted Accounting Principles ("GAAP"). Certain non-GAAP measures presented in this release or other releases, presentations and similar documents issued by the Company include sales, income or expense items as adjusted for the impact of changes in foreign currencies (referred to as "constant currency"), non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share and Adjusted Return on Invested Capital. Certain non-GAAP measures also exclude acquisition-related intangible assets amortization expense, benefits associated with legal settlements, acquisition, integration and restructuring expenses, value-added tax assessments and related interest expense, gain on disposal of subsidiary, tax indemnifications, acquisition-related financing expenses, changes in deferred tax valuation allowances and the impact of U.S. tax reform. A detailed reconciliation of the adjustments between results calculated using GAAP and non-GAAP in this release is contained in the attached financial schedules. This information can also be obtained from the Company's Investor Relations website at www.techdata.com/investor.

Forward-Looking Statements 

Certain statements in this communication may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data's plans, objectives, expectations and intentions, Tech Data's financial results and estimates and/or business prospects, involve a number of risks and uncertainties, and actual results could differ materially from those projected. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Tech Data operates, and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of Tech Data's future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.

For additional information with respect to risks and other factors which could occur, see Tech Data's Annual Report on Form 10-K for the year ended January 31, 2018, including Part I, Item 1A, "Risk Factors" therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the "SEC") that are available at the SEC's website at www.sec.gov and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Many of these factors are beyond Tech Data's control. Unless otherwise required by applicable securities laws, Tech Data disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Tech Data undertakes no duty to update any forward-looking statements contained herein to reflect actual results or changes in Tech Data's expectations.

About Tech Data  

Tech Data connects the world with the power of technology. Our end-to-end portfolio of products, services and solutions, highly specialized skills, and expertise in next-generation technologies enable channel partners to bring to market the products and solutions the world needs to connect, grow and advance. Tech Data is ranked No. 83 on the Fortune 500® and has been named one of Fortune's "World's Most Admired Companies" for nine straight years. To find out more, visit www.techdata.com or follow us on TwitterLinkedIn and Facebook.

Contacts:

Charles V. Dannewitz, Executive Vice President, Chief Financial Officer
727-532-8028 (chuck.dannewitz@techdata.com)

Arleen Quiñones, Corporate Vice President, Investor Relations and Corporate Communications
727-532-8866 (arleen.quinones@techdata.com

 

TECH DATA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)



Three months ended 


Six months ended 


July 31,


July 31,


2018


2017


2018


2017




(As Adjusted1 )




(As Adjusted1 )

Net sales

$

8,886,101


$

8,092,353


$

17,434,420


$

15,115,973

Cost of products sold

8,359,071


7,576,762


16,384,273


14,143,294

Gross profit

527,030


515,591


1,050,147


972,679

Operating expenses:








Selling, general and administrative expenses

415,319


410,598


837,680


763,230

Acquisition, integration, and restructuring expenses

13,297


30,117


46,522


72,183

Legal settlements and other, net

(5,234)


(28,655)


(8,199)


(41,343)

Gain on disposal of subsidiary

(6,717)



(6,717)



416,665


412,060


869,286


794,070

Operating income

110,365


103,531


180,861


178,609

Interest expense

28,053


28,272


53,975


59,280

Other expense (income), net

901


284


2,818


(131)

Income before income taxes

81,411


74,975


124,068


119,460

Provision for income taxes

5,545


27,516


14,503


41,347

Net income

$

75,866


$

47,459


$

109,565


$

78,113









Earnings per share:








Basic

$

1.97


$

1.24


$

2.86


$

2.07

Diluted

$

1.97


$

1.24


$

2.84


$

2.06

Weighted average common shares outstanding:








Basic

38,428


38,174


38,356


37,720

Diluted

38,566


38,388


38,565


37,935









1Amounts have been adjusted to reflect the adoption of Accounting Standard Update 2014-09, Revenue from Contracts with
Customers (ASC 606) on a full retrospective basis.

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands, except par value and share amounts)

(Unaudited)



July 31,


January 31,


2018


2018

ASSETS



(As Adjusted1 )





Current assets:




    Cash and cash equivalents

$

792,859


$

955,628

    Accounts receivable, net

5,200,039


6,035,716

    Inventories

3,022,673


2,965,521

    Prepaid expenses and other assets

383,191


403,548

       Total current assets

9,398,762


10,360,413

Property and equipment, net

268,137


279,091

Goodwill

944,959


969,168

Intangible assets, net

1,009,177


1,086,772

Other assets, net

212,281


224,915

       Total assets

$

11,833,316


$

12,920,359









LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




    Accounts payable

$

6,233,180


$

6,962,193

    Accrued expenses and other liabilities

1,016,496


1,169,986

    Revolving credit loans and current maturities of long-term debt, net

116,881


132,661

       Total current liabilities

7,366,557


8,264,840

Long-term debt, less current maturities

1,402,301


1,505,248

Other long-term liabilities

213,747


228,779

       Total liabilities

$

8,982,605


$

9,998,867





Shareholders' equity:




     Common stock, par value $0.0015; 200,000,000 shares authorized; 59,245,585

$

89


$

89

     shares issued at July 31, 2018 and January 31, 2018




     Additional paid-in capital

829,002


827,301

     Treasury stock, at cost (20,898,729 and 21,083,972 shares at July 31, 2018




     and January 31, 2018)

(931,864)


(940,124)

     Retained earnings

2,855,499


2,745,934

     Accumulated other comprehensive income

97,985


288,292

       Total shareholders' equity

2,850,711


2,921,492

       Total liabilities and shareholders' equity

$

11,833,316


$

12,920,359









1Amounts have been adjusted to reflect the adoption of Accounting Standard Update 2014-09, Revenue from

  Contracts with Customers (ASC 606) on a full retrospective basis.




 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)



Three months ended July 31,  2018


Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$

4,043,331


$

4,549,127


$

293,643




$

8,886,101

Operating income (GAAP) (1)

$

87,930


$

29,085


$

1,318


$

(7,968)


$

110,365

Acquisition, integration and restructuring
expenses

(844)


13,342


131


668


13,297

Acquisition-related intangible assets
amortization expense

13,570


7,727


1,418




22,715

Tax indemnifications

-


910


(356)




554

Gain on disposal of subsidiary

-


(6,717)


-




(6,717)

Legal settlements and other, net

(5,234)


-


-




(5,234)

Total non-GAAP operating income adjustments

$

7,492


$

15,262


$

1,193


$

668


$

24,615

Operating income (non-GAAP)

$

95,422


$

44,347


$

2,511


$

(7,300)


$

134,980

Operating margin (GAAP)

2.17%


0.64%


0.45%




1.24%

Operating margin (non-GAAP)

2.36%


0.97%


0.86%




1.52%











(1) GAAP operating income does not include stock compensation expense at the regional level. 






















Three months ended July 31,  2017


Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$

3,769,696


$

4,043,110


$

279,547




$

8,092,353

Operating income (GAAP) (1)

$

87,975


$

18,464


$

5,066


$

(7,974)


$

103,531

Acquisition, integration and restructuring
expenses

14,242


14,685


145


1,045


30,117

Acquisition-related intangible assets
amortization expense

12,413


8,965


1,477




22,855

Legal settlements and other, net

(29,971)


1,316


-




(28,655)

Total non-GAAP operating income adjustments

$

(3,316)


$

24,966


$

1,622


$

1,045


$

24,317

Operating income (non-GAAP)

$

84,659


$

43,430


$

6,688


$

(6,929)


$

127,848

Operating margin (GAAP)

2.33%


0.46%


1.81%




1.28%

Operating margin (non-GAAP)

2.25%


1.07%


2.39%




1.58%











(1) GAAP operating income does not include stock compensation expense at the regional level. 

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

 (In thousands)



Six months ended July 31,  2018


Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$

7,661,537


$

9,210,829


$

562,054




$

17,434,420

Operating income (GAAP) (1)

$

149,272


$

46,403


$

741


$

(15,555)


$

180,861

Acquisition, integration and restructuring
expenses

13,072


31,330


452


1,668


46,522

Acquisition-related intangible assets
amortization expense

27,213


16,056


2,750




46,019

Tax indemnifications

-


910


(356)




554

Gain on disposal of subsidiary

-


(6,717)


-




(6,717)

Legal settlements and other, net

(8,199)


-


-




(8,199)

Total non-GAAP operating income adjustments

$

32,086


$

41,579


$

2,846


$

1,668


$

78,179

Operating income (non-GAAP)

$

181,358


$

87,982


$

3,587


$

(13,887)


$

259,040

Operating margin (GAAP)

1.95%


0.50%


0.13%




1.04%

Operating margin (non-GAAP)

2.37%


0.96%


0.64%




1.49%











(1) GAAP operating income does not include stock compensation expense at the regional level. 













Six months ended July 31,  2017


Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$

6,905,018


$

7,750,375


$

460,580




$

15,115,973

Operating income (GAAP) (1)

$

138,875


$

43,263


$

9,363


$

(12,892)


$

178,609

Acquisition, integration and restructuring
expenses

44,424


26,257


145


1,357


72,183

Acquisition-related intangible assets
amortization expense

22,514


16,713


2,377




41,604

Legal settlements and other, net

(42,659)


1,316


-




(41,343)

Total non-GAAP operating income adjustments

$

24,279


$

44,286


$

2,522


$

1,357


$

72,444

Operating income (non-GAAP)

$

163,154


$

87,549


$

11,885


$

(11,535)


$

251,053

Operating margin (GAAP)

2.01%


0.56%


2.03%




1.18%

Operating margin (non-GAAP)

2.36%


1.13%


2.58%




1.66%











(1) GAAP operating income does not include stock compensation expense at the regional level. 

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)



Selling, general and administrative expenses ("SG&A")

Three months ended July 31, 


2018


2017

Net Sales

$             8,886,101


$             8,092,353

SG&A Expenses (GAAP)

$                415,319


$                410,598

Tax indemnifications

(554)


-

Acquisition-related intangible assets amortization expense

(22,715)


(22,855)

SG&A Expenses (non-GAAP)

$                392,050


$                387,743





SG&A Expenses (GAAP) %

4.67%


5.07%

SG&A Expenses (non-GAAP) %

4.41%


4.79%










Six months ended July 31, 


2018


2017

Net Sales

$           17,434,420


$           15,115,973

SG&A Expenses (GAAP)

$                837,680


$                763,230

Tax indemnifications

(554)


-

Acquisition-related intangible assets amortization expense

(46,019)


(41,604)

SG&A Expenses (non-GAAP)

$                791,107


$                721,626





SG&A Expenses (GAAP) %

4.80%


5.05%

SG&A Expenses (non-GAAP) %

4.54%


4.77%

 

 






Three months ended July 31, 


2018


2017


Net Income

Diluted EPS


Net Income

Diluted EPS

GAAP Results

$75,866

$1.97


$47,459

$1.24

Legal settlements and other, net

(5,234)

(0.13)


(28,332)

(0.74)

Acquisition, integration and restructuring expenses

13,297

0.34


30,117

0.78

Acquisition-related intangible assets amortization expense

22,715

0.59


22,855

0.60

Gain on disposal of subsidiary

(6,717)

(0.17)


-

-

Tax indemnifications

554

0.01


-

-

Income tax effect of tax indemnifications

(554)

(0.01)


-

-

Income tax effect of other adjustments above

(9,404)

(0.25)


(5,367)

(0.14)

Income tax benefit from acquisition settlement

(12,839)

(0.34)


-

-







Non-GAAP Results

$77,684

$2.01


$66,732

$1.74








Six months ended July 31, 


2018


2017


Net Income

Diluted EPS


Net Income

Diluted EPS

GAAP Results

$109,565

$2.84


$78,113

$2.06

Legal settlements and other, net

(8,199)

(0.21)


(41,020)

(1.08)

Value added tax assessments and related interest expense

(928)

(0.02)


-

-

Acquisition, integration and restructuring expenses

46,522

1.21


72,183

1.90

Acquisition-related intangible assets amortization expense

46,019

1.19


41,604

1.10

Acquisition-related financing expenses

-

-


8,807

0.23

Gain on disposal of subsidiary

(6,717)

(0.17)


-

-

Tax indemnifications

554

0.01


-

-

Income tax effect of tax indemnifications

(554)

(0.01)


-

-

Income tax effect of other adjustments above

(22,312)

(0.58)


(22,896)

(0.60)

Income tax benefit from acquisition settlement

(12,839)

(0.34)


-

-

Change in deferred tax valuation allowances

(2,600)

(0.07)


-

-







Non-GAAP Results

$148,511

$3.85


$136,791

$3.61

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

 (In thousands)



Return on Invested Capital (ROIC)



Twelve months ended July 31, 

TTM Net Operating Profit After Tax (NOPAT)*:

2018


2017

Operating income

$              412,331


$              344,598

Income taxes on operating income (1)

(211,261)


(88,150)

NOPAT

$              201,070


$              256,448





Average Invested Capital:




Short-term debt (5-qtr end average)

$              188,558


$              340,608

Long-term debt (5-qtr end average)

1,604,359


988,243

Shareholders' Equity (5-qtr end average)

2,819,394


2,316,790

Total average capital

4,612,311


3,645,641

Less: Cash (5-qtr end average)

(737,995)


(1,081,802)

Average invested capital less average cash

$           3,874,316


$           2,563,839

ROIC

5%


10%





* Trailing Twelve Months is abbreviated as TTM.




(1) Income taxes on operating income was calculated using the trailing twelve months effective tax rate.


Adjusted Return on Invested Capital (ROIC)



Twelve months ended July 31, 

TTM Net Operating Profit After Tax (NOPAT), as adjusted*:

2018


2017

Non-GAAP operating income (1)

$              610,691


$              454,332

Income taxes on non-GAAP operating income (2)

(172,797)


(134,878)

NOPAT, as adjusted

$              437,894


$              319,454





Average Invested Capital, as adjusted:




Short-term debt (5-qtr end average)

$              188,558


$              340,608

Long-term debt (5-qtr end average)

1,604,359


988,243

Shareholders' Equity (5-qtr end average)

2,819,394


2,316,790

Tax effected impact of non-GAAP adjustments (3)

95,231


31,842

Total average capital, as adjusted

4,707,542


3,677,483

Less: Cash (5-qtr end average)

(737,995)


(1,081,802)

Average invested capital less average cash

$           3,969,547


$           2,595,681

Adjusted ROIC

11%


12%





* Trailing Twelve Months is abbreviated as TTM.




(1) Represents operating income as adjusted to exclude acquisition, integration and restructuring expenses,
legal settlements and other, net, gain on disposal of subsidiary, value added tax assessments and
acquisition-related intangible assets amortization expense.

(2)Income taxes on non-GAAP operating income was calculated using the trailing twelve months effective
tax rate adjusted for the impact of non-GAAP adjustments during the respective periods.

(3)Represents the 5 quarter average of the year-to-date impact of non-GAAP adjustments.

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION


Guidance Reconciliation



Three months ending October 31, 2018


Low end of
guidance range

High end of
guidance range

Earnings per share - diluted

$1.19

$1.49

Acquisition, integration and restructuring expenses

0.49

0.49

Acquisition-related intangible assets amortization expense

0.59

0.59

Income tax effect of the above adjustments

(0.27)

(0.27)

Non-GAAP earnings per share - diluted

$2.00

$2.30

 

 

(PRNewsfoto/Tech Data Corporation)

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/tech-data-corporation-reports-second-quarter-fiscal-year-2019-results-300704627.html

SOURCE Tech Data Corporation

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