ScanSource, Inc. (NASDAQ:SCSC) Q4 2023 Earnings Conference Call August 22, 2023 10:30 AM ET Company Participants Mary Gentry - SVP, IR, & Treasurer Mike Baur - Chairman & CEO John Eldh - President Steve Jones - CFO Conference Call Participants Greg Burns - Sidoti & Company Keith Housum - Northcoast Research Partners Jake Norrison - Raymond James Operator Welcome to the ScanSource Quarterly Earnings Conference Call. All lines have been placed in a listen-only mode, until the question-and-answer session. Toda ...

Financial Performance - Net sales for the fiscal year ended June 30, 2023, totaled $3.79 billion[18] - For the fiscal year ended June 30, 2023, total net sales increased by $257.8 million, or 7.3%, reaching $3,787.7 million compared to $3,529.9 million in fiscal year 2022[165] - The Specialty Technology Solutions segment saw net sales increase by $248.7 million, or 11.9%, primarily due to strong growth in key technologies in North America[167] - The Modern Communications & Cloud segment experienced a net sales increase of $9.1 million, or 0.6%, with adjusted net sales growth of 0.4% after accounting for foreign exchange impacts[168] - The company's operating income for fiscal year 2023 was 3.6%, compared to 3.5% in fiscal year 2022, indicating slight improvement in profitability[162] - Total operating income for fiscal year 2023 was $135.9 million, an increase of $13.7 million or 11.2% compared to the previous year[177] - The company reported a diluted EPS of $3.47 for the year ended June 30, 2023, compared to $3.44 in the previous year, reflecting a growth of 0.03[200] - Gross profit for fiscal year 2023 was $449.2 million, reflecting a $22.7 million increase or 5.3% compared to the prior year[171] - Specialty Technology Solutions segment gross profit increased by $18.5 million, while the gross profit margin decreased to 9.6%[172] - Modern Communications & Cloud segment gross profit increased by $4.2 million, with the gross profit margin rising to 15.4%[173] Customer and Market Dynamics - The company serves approximately 30,000 customers across various industries, with no single customer accounting for more than 4% of total net sales[27] - The company has contracts with over 200 leading telecom carriers and cloud service providers, focusing on empowering sales partners to advise customers on technology and cost savings[54] - Customer relations are critical, and any deterioration in these relationships could negatively impact operating results[111] - The company’s sales organization focuses on developing customer relationships and providing tailored solutions, supported by comprehensive training for sales representatives[68] Operational Strategy - The Specialty Technology Solutions Segment includes recurring revenue from hardware rentals and other SaaS offerings, contributing to the overall revenue[25] - The Modern Communications & Cloud Segment includes recurring revenue from Intelisys and intY businesses, enhancing the company's service offerings[26] - The company aims to drive sustainable, profitable growth through a hybrid distribution strategy leveraging partnerships and technology solutions[20] - The company operates a 741,000 square foot distribution center in Southaven, Mississippi, aiming to ship all orders on the same day to minimize shipping errors[74] - The company operates distribution facilities in the United States and Brazil, supporting its business segments across North America and internationally[152] Employee and Workplace Culture - ScanSource has approximately 2,300 employees, with 1,500 located in the United States and 800 internationally[52] - The company was named one of the Best Places to Work in South Carolina for the eighth consecutive year, reflecting its commitment to employee satisfaction[51] - The company has implemented a work-from-home policy for all employees, maintaining high productivity levels with a largely remote workforce[58] - The company has launched a global digital workplace, The Bridge, to enhance communication and employee engagement[61] - The company emphasizes a comprehensive benefits package, including a 401(k) program with a market-competitive employer match and performance-based bonuses[57] - The company is committed to a diverse and inclusive workplace, led by a Chief Diversity Officer and an internal D&I Advisory Council[59] Risks and Challenges - The company is highly dependent on information and communication systems, and any failure could disrupt business operations and adversely affect financial results[85] - Supply chain issues, including product shortages, may increase costs or delay customer order fulfillment, impacting financial results[88] - Manufacturing interruptions due to factors like labor disputes or natural disasters could further disrupt the supply chain and affect product availability[89] - The company faces credit exposure to customers, and any adverse trends could lead to credit losses, negatively impacting performance[94] - Supplier relationships are critical, and changes in supply agreement terms could adversely affect operating margins and revenue[101] - The company relies on third-party logistics for product delivery, and any failure in these services could disrupt operations and harm customer relationships[97] - Economic factors such as inflation and rising interest rates could restrict the company's ability to raise capital, affecting operations[109] - Economic weakness and geopolitical uncertainty may adversely affect the company's results, leading to reduced demand for products and potential impairments of assets[135] - Intense competition in the market could lead to reduced margins and loss of market share, with competitors having greater resources potentially responding more quickly to market changes[120] - The company may face challenges in adapting to rapid technological changes, which could affect its competitiveness and market share[122] Financial Position and Capital Management - The company has a multi-currency senior secured credit facility with a leverage ratio requirement of less than or equal to 3.50:1.00, which must be maintained[107] - The company has a $350 million revolving credit facility to support its liquidity needs[214] - Cash and cash equivalents totaled $36.2 million as of June 30, 2023, compared to $38.0 million in 2022, with $31.0 million held outside the United States[216] - The company utilizes a weighted average cost of capital (WACC) relative to each reporting unit's geography and industry as the discount rate for estimated future cash flows[214] - The company has never declared or paid a cash dividend, with restrictions on cash dividends under the terms of its credit facility[149] Cybersecurity and Compliance - The company experienced a ransomware attack in May 2023, which interrupted order processing for approximately nine business days and resulted in the disclosure of information on the dark web[129] - A cybersecurity incident on May 14, 2023, impacted sales, with business interruption insurance expected to cover some lost profits[166] - Cybersecurity-related costs amounted to approximately $1.5 million, with insurance expected to cover a portion of these expenses[175] - The company is subject to additional costs and potential fines due to compliance with laws and regulations when selling products to government entities[130] Goodwill and Impairment Testing - As of June 30, 2023, the goodwill balances for the Specialty Technology Solutions and Modern Communications & Cloud reporting units are $16.4 million and $200.3 million, respectively, with fair values exceeding carrying values by 2% and 13%[114] - The company assesses goodwill for impairment annually, with the most recent test indicating no impairment for fiscal years 2023 and 2022[211] - The fair value of the Specialty Technology reporting unit exceeded its carrying value by 2%, while the Modern Communications & Cloud reporting unit exceeded its carrying value by 13% as of the annual goodwill impairment testing date[210]

ScanSource, Inc. (NASDAQ:SCSC) Q3 2023 Earnings Conference Call May 9, 2023 10:30 AM ET Company Participants Mary Gentry - Senior Vice President of Investor Relations, and Treasurer Michael Baur - Chairman, and Chief Executive Officer Stephen Jones - Chief Financial Officer Conference Call Participants Adam Tyler Tindle - Raymond James Gregory John Burns - Sidoti & Company Jake Norrison - Raymond James Keith Michael Housum - Northcoast Research Partners Matthew Sheerin - Stifel Nicolaus Operator Welcome to ...

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 ☒ Quarterly period ended March 31, 2023 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. South Carolina (State of Incorporation) 57-0965380 (I.R.S. Employer Identification No.) 6 Logue Court Greenville, ...

ScanSource, Inc. (NASDAQ:SCSC) Q2 2023 Earnings Conference Call February 7, 2023 10:30 AM ET Corporate Participants Mary Gentry - Senior Vice President, Treasurer and Investor Relations Mike Baur - Chairman and Chief Executive Officer John Eldh - President Steve Jones - Chief Financial Officer Conference Call Participants Greg Burns - Sidoti Keith Housum - Northcoast Research Jake Norrison - Raymond James Mike Latimore - Northland Capital Markets Arthur Winston - Pilot Advisors Operator Welcome to the ScanS ...

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 ☒ Quarterly period ended December 31, 2022 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. South Carolina (State of Incorporation) 57-0965380 (I.R.S. Employer Identification No.) 6 Logue Court Greenvil ...

Investor Presentation November 2022 SAFE HARBOR AND NON-GAAP Safe Harbor Statement This presentation contains certain comments that are "forward-looking" statements about our FY23 outlook, mid-term goals and our operating strategies that involve plans, strategies, economic performance and trends, projections, expectations, costs or beliefs about future events and other statements that are not descriptions of historical facts. Forward-looking information is inherently subject to risks and uncertainties. Any ...

Financial Data and Key Metrics Changes - The company reported net sales of $944 million for Q1, representing a 10% year-over-year increase and record profitability [21] - Non-GAAP diluted EPS reached $1.07, an 8% increase year-over-year, with adjusted EBITDA of $45.3 million, marking a 9% growth [21][25] - Gross profits grew 12% year-over-year to $113 million, with a gross profit margin of 12% [23] Business Line Data and Key Metrics Changes - Specialty Technology Solutions segment saw a 15% year-over-year sales growth, driven by strong demand for hardware technologies [15] - Modern Communications & Cloud segment achieved 3% net sales growth, with Cisco net sales growing nearly 50% year-over-year [16] - Intelisys net revenue increased 7% year-over-year, with double-digit net commission growth expected for the full year [22] Market Data and Key Metrics Changes - The company experienced strong demand from VARs servicing large enterprise customers, particularly in technologies enabling remote work [13] - In Brazil, the company achieved operational excellence and self-funded growth, receiving recognition from the government for compliance [18][19] Company Strategy and Development Direction - The company is focused on hybrid distribution, leveraging relationships with partners to drive growth in both device and digital solutions [12] - The hybrid strategy has enabled the company to build a recurring revenue stream, now accounting for approximately 24% of gross profits [7][23] - The company aims to maintain double-digit year-over-year net sales growth for Intelisys, driven by strong partner relationships [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory of sustainable, profitable growth, despite ongoing supply chain challenges [19] - The company reaffirmed its full-year 2023 outlook of at least 5.5% year-over-year net sales growth and at least $174 million for adjusted EBITDA [33][34] Other Important Information - The company amended its credit facility for $500 million, providing financial flexibility to support growth opportunities [32] - The company utilized operating cash of $48 million for the quarter, with a significant increase in accounts receivable and inventory levels [27][30] Q&A Session Summary Question: Insights on net sales growth in Modern Communications - Management noted a 26% year-over-year decrease in on-prem communications, primarily due to three suppliers [38] Question: Gross profit decline explanation - The decline was attributed to a mix issue, with Cisco's lower margin impacting overall gross profit growth [41] Question: Demand trends in Technology segment - Demand is driven by automation, worker productivity, mobility, and physical security, continuing from pandemic-related needs [42] Question: Visibility for the next quarter in barcode and mobility - Management expressed excitement about strong demand and inventory flows, supported by enthusiasm from partners at a recent conference [45] Question: Sustainability of Cisco growth - Management believes the growth in the Modern Communications segment is sustainable, supported by strong relationships and new partner acquisitions [48][49]

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 57-0965380 (I.R.S. Employer Identification No.) 6 Logue Court Greenville, South Carolina 29615 (864) 288-2432 Securities registered pursuant to Section 12(b) of the Act: Quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ ...

Fiscal Fourth Quarter 2022 Earnings Our exceptional fiscal year 2022 performance demonstrates the success of the new ScanSource and faster growth of our recurring revenue. Our hybrid distribution strategy of devices and digital is winning, as evidenced by our 12% net sales growth." Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights Strong Demand and Outstanding Execution Drives Top Line Growth Exceeds Full-Year 2022 Outlook for Net Sales Growth and Adj. EBITDA Hybrid Distribution Strategy of Device ...