Investor Presentation May 2025 SAFE HARBOR AND NON-GAAP Safe Harbor Statement This presentation contains "forward-looking" statements, including our FY25 outlook, mid- term goals, market growth rates, growth opportunities, and our operating and acquisition strategies, which involve risks and uncertainties, many of which are beyond our control. No undue reliance should be placed on such statements, as any number of factors could cause actual results to differ materially from anticipated or forecasted results ...

ScanSource (SCSC) Q3 2025 Earnings Call May 08, 2025 10:30 AM ET Company Participants Mary Gentry - Vice President of Investor Relations & TreasurerMike Baur - Chairman & Chief Executive OfficerSteve Jones - Senior EVP & CFOAdam Tindle - Managing DirectorGuy Hardwick - Managing Director Conference Call Participants Gregory Burns - AnalystKeith Housum - Managing Director & Research Analyst Operator Welcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen only mode ...

ScanSource (SCSC) Q3 2025 Earnings Call May 08, 2025 10:30 AM ET Speaker0 Welcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen only mode until the question and answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to turn the call over to Mary Gentry, senior vice president, finance, and treasurer. Ma'am, you may begin. Speaker1 Good morning, and thank you for joining us. Our call will in ...

ScanSource (SCSC) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.69%. A quarter ago, it was expected that this technology products distributor would post earnings of $0.89 per share when it actually produced earnings of $0.85, delivering a surprise of -4.49%.Over the last four qua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 000-26926 ScanSource, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Steve Jones Mary M. Gentry Senior EVP, Chief Financial Officer SVP, Finance and Treasurer ScanSource, Inc. ScanSource, Inc. (864) 286-4302 (864) 286-4892 SCANSOURCE REPORTS THIRD QUARTER RESULTS Announces New $200M Share Repurchase Authorization GREENVILLE, SC -- May 8, 2025 -- ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the third quarter ended March 31, 2025. | | | | | Third ...

ScanSource (SCSC) came out with quarterly earnings of $0.85 per share, missing the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.49%. A quarter ago, it was expected that this technology products distributor would post earnings of $0.77 per share when it actually produced earnings of $0.84, delivering a surprise of 9.09%.Over the last four quar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ For the quarterly period ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 000-26926 ScanSource, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation o ...

Financial Performance - Net sales for Q2 FY25 totaled $747.5 million, a decrease of 15.5% year-over-year[4] - Gross profit increased by 1.0% year-over-year to $101.7 million, with a gross profit margin of 13.6%, up from 11.4% in the prior-year quarter[5] - Operating income for Q2 FY25 was $18.4 million, down 31.2% from $26.8 million in the prior-year quarter[6] - GAAP net income decreased by 47.9% to $17.1 million, or $0.70 per diluted share, compared to $32.7 million, or $1.29 per diluted share, in Q2 FY24[7] - Non-GAAP net income for Q2 FY25 was $20.7 million, or $0.85 per diluted share, compared to $21.6 million, or $0.85 per diluted share, in the prior-year quarter[7] - Adjusted EBITDA for Q2 FY25 decreased by 8.2% to $35.3 million, representing 4.72% of net sales[7] - Net income for the quarter was $17,053 thousand, down 47.9% from $32,726 thousand in the prior year[29] - Adjusted EBITDA for the quarter was $35,299 thousand, compared to $38,459 thousand in the same quarter of 2023, reflecting a decrease of 5.6%[34] - Diluted EPS for the quarter was $0.70, down from $1.29 in the same quarter last year, representing a decrease of 45.7%[46] Revenue and Sales - Recurring revenue grew by 31.2% year-over-year, contributing to 32.4% of gross profit[5] - Net sales for the quarter ended December 31, 2024, were $747,497 thousand, a decrease of 15.5% compared to $884,792 thousand in the same quarter of 2023[29] - Non-GAAP net sales in the United States and Canada were $678,538,000, reflecting a 14.7% decline from $795,382,000 in the prior year[42] - Net sales in Brazil decreased by 32.5% to $60,386,000 in Q2 2024 from $89,410,000 in Q2 2023[42] - The company reported a foreign exchange impact of $10,718,000 on consolidated net sales for the quarter ended December 31, 2024[42] Cash Flow and Assets - Free cash flow for the first six months of FY25 was $34.3 million, with share repurchases totaling $52.3 million[8] - Cash and cash equivalents at the end of the period were $110,520 thousand, down from $185,460 thousand at the beginning of the period[31] - Free cash flow for the quarter ended December 31, 2024, was $(8,164,000), a significant decrease from $60,675,000 in the same quarter of 2023[43] - The company experienced a significant decline in GAAP operating cash flow, reporting $(6,190,000) for the quarter compared to $63,224,000 in the same quarter of the previous year[43] Expenses and Liabilities - The company reported a restructuring charge of $313 thousand for the quarter, with total selling, general and administrative expenses increasing to $73,920 thousand from $66,921 thousand year-over-year[29] - Total current assets decreased to $1,283,765 thousand from $1,404,699 thousand, a decline of 8.6%[27] - Total liabilities decreased to $801,867 thousand from $854,777 thousand, a reduction of 6.2%[27] - SG&A expenses for Q2 2024 were $73,920,000, an increase from $66,921,000 in Q2 2023[46] Guidance and Future Outlook - For FY25, the company reaffirms guidance of net sales between $3.1 billion and $3.5 billion[10] - The adjusted return on invested capital (Adjusted ROIC) for the quarter was 13.3%, slightly up from 13.2% in the previous year[34]

Industry Overview - The Zacks Industrial Services industry provides industrial equipment products and MRO services, serving customers across commercial, government, healthcare, and manufacturing sectors [3] - The industry's products include power tools, hand tools, lubricants, and personal protective equipment, which are used in production and plant maintenance but are not directly related to customers' core products [4] - The manufacturing sector contributes around 70% to the industry's revenues, with customer activity trends historically correlated to changes in the Industrial Production Index [5] Industry Trends - The manufacturing sector has been in a prolonged contraction, with the Institute for Supply Management's manufacturing index remaining below 50% for most of 2024, indicating contraction [6] - The New Orders Index showed expansion in November and December 2024 after seven consecutive months of contraction, but consistent growth has not been sustained since May 2022 [7] - The industry is experiencing significant inflation levels, including higher prices for labor, freight, and fuel, leading to pricing actions and cost-cutting measures [8] - E-commerce is a key growth driver, with global e-commerce revenues expected to reach $4,791 billion in 2025 and a CAGR of 7.83% between 2025 and 2029 [10] Industry Performance and Valuation - The Industrial Services industry has underperformed its sector and the S&P 500, growing 9.6% over the past year compared to the sector's 14.9% and the S&P 500's 24.3% [13] - The industry is currently trading at a forward 12-month EV/EBITDA ratio of 28.52X, higher than the S&P 500's 13.96X and the Industrial Products sector's 19.84X [14] Key Companies - **Eos Energy Enterprises**: Projects 2025 revenues between $150 million and $190 million, driven by increased production and supply chain improvements [15][16] - **ClearSign Technologies**: Received a significant follow-on purchase order in December 2024 and expanded its partnership with Zeeco, Inc., positioning the company for solid growth [17][18][19] - **Grainger**: Delivers robust results with margin improvements and strong operating performance, focusing on e-commerce and digital capabilities [21][22] - **ScanSource**: Shifting business mix and cost-saving efforts are driving stronger earnings and cash flow, with recent acquisitions enhancing its advisory channel model [24][25] Growth Catalysts - The rise in e-commerce activities is a key catalyst for the industry, with companies leveraging strategies to capitalize on this demand [2] - Companies are focusing on lowering costs, increasing productivity, and investing in automation and digitization to aid growth [2]