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 September 30, 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 F ...

Financial Performance - Net sales for Q1 FY25 totaled $775.6 million, down 11.5% year-over-year, with organic growth showing a decrease of 10.7%[6] - Gross profit decreased 4.6% year-over-year to $101.6 million, with a gross profit margin of 13.10%, up from 12.15% in the prior-year quarter[7] - GAAP net income for Q1 FY25 was $17.0 million, or $0.69 per diluted share, compared to $15.4 million, or $0.61 per diluted share, in the prior-year quarter[9] - Operating income for Q1 FY25 was $17.6 million, down from $24.1 million in the prior-year quarter[8] - Net income for the quarter was $16,974, an increase of 10% compared to $15,432 in the prior year[28] - Adjusted EBITDA for Q1 FY25 increased 2.1% to $35.7 million, representing 4.60% of net sales[10] - Adjusted EBITDA for the quarter was $35,666, up from $34,919, indicating a growth of 2.1% year-over-year[32] - Non-GAAP operating income for Q1 2024 was $27,509,000, compared to $28,478,000 in Q1 2023, reflecting a decrease of around 3%[39] - The overall financial performance indicates a mixed outlook with growth in net income and pre-tax income, but declines in operating income and SG&A expenses[39] Revenue and Sales - Recurring revenue increased 18.8% year-over-year, contributing to 31.8% of gross profit for Q1 FY25[7] - Net sales for the quarter ended September 30, 2024, were $775,580, a decrease of 11.5% compared to $876,305 in the same quarter of 2023[28] - Reported net sales for the Specialty Technology Solutions segment decreased by 11.9% to $752,299 thousand compared to $853,950 thousand in the previous year[34] - Non-GAAP net sales for the consolidated entity were $780,133 thousand, down 10.7% from $874,023 thousand year-over-year[37] - Net sales in the United States and Canada decreased by 10.0% to $712,019 thousand from $791,000 thousand year-over-year[37] - Net sales in Brazil reported a significant decline of 25.5%, falling to $63,561 thousand from $85,305 thousand[37] - The overall consolidated net sales reported were $775,580 thousand, reflecting an 11.5% decrease from $876,305 thousand in the prior year[34] Cash Flow and Assets - The company generated $42.5 million of free cash flow for Q1 FY25 and had cash and cash equivalents of $145.0 million as of September 30, 2024[10][11] - Cash and cash equivalents at the end of the period were $145,044, down from $185,460 at the beginning of the period[30] - The company reported a net cash provided by operating activities of $44,830, a decrease from $93,533 in the prior year[30] - Total assets increased to $1,786,509 from $1,779,032, reflecting a growth of 0.4%[27] - Total liabilities rose to $865,616, compared to $854,777, marking an increase of 1.4%[27] - Free cash flow (non-GAAP) for the quarter was $42,455 thousand, down from $91,218 thousand in the previous year[38] Acquisitions and Strategic Initiatives - ScanSource completed the acquisition of Resourcive on August 8, 2024, enhancing its Intelisys & Advisory segment[11] - The acquisition of Advantix on August 15, 2024, is aimed at launching the Integrated Solutions Group (ISG) to develop new solutions and services[12] Expenses and Costs - SG&A expenses for Q1 2024 were $71,706,000, down from $75,436,000 in Q1 2023, showing a reduction of approximately 5%[39] - The company reported intangible amortization expenses of $4,358,000 for Q1 2024, compared to $4,193,000 in Q1 2023, which is an increase of approximately 4%[39] - Cyberattack restoration costs for Q1 2024 were $76,000, while the previous year reported a recovery of $201,000, indicating a shift in financial impact[39] - The company incurred acquisition and divestiture costs of $377,000 in Q1 2024, while there were no such costs reported in Q1 2023[39] Outlook - FY25 annual outlook projects net sales between $3.1 billion and $3.5 billion, with adjusted EBITDA expected to be between $140 million and $160 million[5] - The average return on invested capital (Adjusted ROIC) for the quarter was 13.3%, up from 11.0% in the previous year[32]

Images By Tang Ming Tung/DigitalVision via Getty Images Introduction ScanSource, Inc. (NASDAQ:SCSC) recently reported its FY24 numbers, which the market seems to like, so I wanted to go over these and give some thoughts on the company's outlook and look at some valuation assumptions to match the potential outlook. I would like to see top-line growth return and margins improve before considering it a good investment. Therefore, I am initiating with a hold rating for now. Briefly on the Company ScanSource is ...

suwadee sangsriruang Thesis In my analysis, I'll demonstrate that SeanSource, Inc. (NASDAQ:SCSC) has shown solid growth and made some smart moves with acquisitions; but, their current financials are a mixed bag. Recent Q4 2024 numbers hit the mark with a Non-GAAP EPS of $0.80, but revenue fell short by $87.19 million. Type: · EPS Estimate · EPS Actual Period: Quarterly 4 T 1.25 FQ4 2024 1,00 EPS Estimate: 0.93 EPS Actual: 0.80 0.75 0.50 0.25 FQ4 2023 FQ1 2024 FQ2 2024 FQ3 2024 FQ4 2024 FQ1 2026 (E) FQ2 2026 ...

ScanSource, Inc. (SCSC) reported adjusted earnings of 80 cents per share in fourth-quarter fiscal 2024 (ended June 30, 2024), missing the Zacks Consensus Estimate of 95 cents. The bottom line, however, improved 5.3% from the prior-year quarter's earnings of 76 cents. On a reported basis, the company delivered earnings of 64 cents per share compared with the prior-year quarter's 68 cents per share. SCSC's Revenues Plunge on Weak Demand The company reported net sales of $746 million in the quarter under revie ...

Financial Data and Key Metrics - Net sales declined 14% year-on-year for FY '24, with gross profits declining 11% [9] - Specialty Technology Solutions segment net sales declined 14% year-on-year, while gross profit declined 16% [10] - Modern Communication & Cloud segment net sales declined 13%, with gross profit declining 6% [10] - Free cash flow for FY '24 was $363 million, driven by a significant reduction in working capital [9] - Q4 free cash flow was $53 million, with strong gross profit margins and adjusted EBITDA margins [8] - FY '24 non-GAAP EPS was $3.08, compared to $3.85 last year [9] Business Line Performance - Specialty Technology Solutions segment saw a 14% decline in net sales and a 10% decline in gross profit year-on-year in Q4 [8] - Modern Communication & Cloud segment net sales declined 32% year-on-year in Q4, while Intelisys' net sales grew 6% [9] - Intelisys' Q4 end-user billings increased 9% year-on-year, totaling $2.67 billion in FY '24 [9] - Contact Center as a Service (CCaaS) billings grew 35% year-on-year in Q4, while UCaaS billings grew 13% [9] Market Performance - Physical security in the Specialty Technology Solutions segment and UCaaS/CCaaS in the Modern Communication & Cloud segment experienced good growth in Q4 [8] - Intelisys' recurring revenue represented 27% of the company's consolidated gross profits [10] Strategic Direction and Industry Competition - The company is accelerating its hybrid distribution strategy, which is expected to drive more demand and expand the total addressable market [4] - Investments in advanced technologies such as AI and private 5G are being made to support growth in the channel [5] - Two acquisitions, Resourcive and Advantix, were announced to support the hybrid distribution strategy, both being high-margin, recurring revenue businesses [6][7] - The company is focusing on partner segmentation to provide customized services to high-growth partners, including IT VARs, advanced technology partners, and telco agents [5] Management Commentary on Operating Environment and Future Outlook - The company expects a challenging demand environment to continue in the near term, particularly in the first half of FY '25 [11] - FY '25 net sales are expected to be between $3.1 billion and $3.5 billion, with adjusted EBITDA ranging between $140 million and $160 million [12] - The company aims to generate at least $70 million in free cash flow for FY '25, focusing on continuous working capital efficiency improvements [13] Other Important Information - The company ended Q4 with $185 million in cash and a net debt leverage ratio below zero on a trailing 12-month adjusted EBITDA basis [11] - Share repurchases totaled $22 million for Q4 and $43 million for FY '24 [11] - The company is building a cash culture, emphasizing predictable free cash flow as a key measure of success [13] Q&A Session Summary Question: Details on Ken Mills' appointment and its impact on Intelisys - Ken Mills, with extensive channel experience, was appointed President of Intelisys to drive strategy and vision, aiming for double-digit growth [14][15][16] Question: Contribution from recent acquisitions and guidance process for FY '25 - The acquisitions (Resourcive and Advantix) are small but accretive to EBITDA and included in FY '25 guidance, though not significant to consolidated results [17][18] - The company learned from FY '24 that predicting top-line growth is challenging, leading to wider guidance ranges for FY '25 [19][20] Question: Demand outlook relative to supplier commentary - The company faces difficulty in forecasting demand due to its distributor model, with a first-half, second-half dynamic expected for FY '25 [23][24][25][26] Question: Rationale behind the Resourcive acquisition - Resourcive was chosen for its strong leadership team, which aligns with the company's strategy to build a new advisory channel model [28][29] Question: Scalability of recent acquisitions - Both Resourcive and Advantix are scalable, with unique capabilities and management styles that can be expanded [32][33] Question: Hardware portfolio challenges - The company expects growth in its Specialty Technology Solutions segment, while the Comms segment faces challenges, particularly due to Cisco's performance [35][36][37] Question: Capital allocation strategy - The company plans to balance acquisitions and share repurchases, leveraging its strong balance sheet and free cash flow [39][40] Question: M&A market multiples and barcode market outlook - The company sees opportunities in acquiring recurring revenue businesses with higher margins, though multiples remain stable [43][44][45] - The Advantix acquisition is expected to strengthen the company's position in the barcode market as demand recovers [46]

ScanSource (SCSC) came out with quarterly earnings of $0.80 per share, missing the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -15.79%. A quarter ago, it was expected that this technology products distributor would post earnings of $0.84 per share when it actually produced earnings of $0.69, delivering a surprise of -17.86%. Over the last four ...

Market Overview - U.S. stocks showed mixed performance with the Dow Jones index gaining over 50 points, up 0.16% to 41,240.52, while NASDAQ fell 0.42% to 17,651.68 and S&P 500 dropped 0.22% to 5,604.73 [1] - Health care shares increased by 0.2%, while information technology shares decreased by 0.6% [1] Company Performance - ScanSource, Inc. reported fourth-quarter earnings of 80 cents per share, missing the analyst consensus estimate of 93 cents, and quarterly sales of $746.113 million, below the expected $843.143 million [2] - ScanSource projected FY25 revenues between $3.1 billion and $3.5 billion, compared to estimates of $3.47 billion [2] - Ensysce Biosciences, Inc. shares surged 66% to $0.7176 after receiving a $14 million grant from the NIH for opioid development [2] - Addex Therapeutics Ltd shares rose 64% to $12.25 following the selection of clinical candidates in collaboration with Indivior, with potential earnings of up to $330 million [2] - VOXX International Corporation shares increased by 50% to $4.25 after announcing a strategic alternatives process [2] Declining Stocks - Altisource Asset Management Corporation shares fell 47% to $1.25 due to plans to voluntarily delist from NYSE American LLC [3] - COSCIENS Biopharma Inc. shares dropped 35% to $3.80 after announcing Phase 3 trial results [3] - Lixte Biotechnology Holdings, Inc. shares decreased by 15% to $1.75 [3] Commodities - Oil prices decreased by 1% to $76.67, gold fell by 0.4% to $2,545.10, silver dropped by 0.3% to $29.92, while copper rose by 0.3% to $4.2915 [4] European Market - European shares were mostly higher, with the eurozone's STOXX 600 gaining 0.1%, Germany's DAX up 0.4%, and France's CAC 40 down 0.2% [5] - The German economy contracted by 0.1% quarter-over-quarter in Q2, following a 0.2% growth in Q1 [5] - The GfK Consumer Climate Indicator for Germany fell to -22.0 in September from a revised -18.6 [5] Asia Pacific Markets - Asian markets closed mostly higher, with Japan's Nikkei 225 gaining 0.47% and Hong Kong's Hang Seng Index up 0.43% [6] - Hong Kong's trade deficit narrowed to $21.8 billion in July from a $30 billion gap a year ago, as exports increased more than imports [6] Economic Indicators - The S&P CoreLogic Case-Shiller home price index rose by 6.5% year-over-year in June, down from a revised 6.9% in the previous month [7] - The FHFA house price index fell by 0.1% in June, contrary to market expectations of a 0.2% gain [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ FORM 10-K _______________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 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 ___________________________________ ...

Exhibit 99.1 Fourth Quarter Summary Fiscal Year Summary Q4 FY24 Q4 FY23 Change FY24 FY23 Change (in thousands, except percentages and per share data) FOR IMMEDIATE RELEASE Mary M. Gentry SVP, Treasurer and Investor Relations ScanSource, Inc. (864) 286-4892 | --- | |-------------------------------------| | | | | | Contact: | | Steve Jones | | Senior EVP, Chief Financial Officer | | ScanSource, Inc. | | (864) 286-4302 | SCANSOURCE REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS Achieves Strong Cash Flow and Disc ...