ScanSource(US:SCSC)2025-05-08 12:30Financial Performance - Net sales for Q3 FY25 totaled $704.8 million, a decrease of 6.3% year-over-year[2] - Gross profit increased by 6.1% year-over-year to $100.2 million, with a gross profit margin of 14.2% compared to 12.6% in the prior-year quarter[5] - GAAP net income for Q3 FY25 was $17.4 million, or $0.74 per diluted share, representing a 36.1% increase from the prior-year quarter[7] - Operating income for Q3 FY25 was $22.3 million, an increase of 27.3% year-over-year[6] - Net sales for the quarter ended March 31, 2025, were $704,847 thousand, a decrease of 6.3% compared to $752,599 thousand in the same quarter of 2024[27] - Gross profit for the quarter was $100,202 thousand, up from $94,481 thousand year-over-year, reflecting a gross margin improvement[27] - Net income for the quarter was $17,431 thousand, representing an increase of 36.5% from $12,806 thousand in the prior year[27] - Adjusted EBITDA for Q3 FY25 rose by 5.9% to $35.1 million, with an adjusted EBITDA margin of 4.97%[7] - Adjusted EBITDA for the quarter was $35,053 thousand, compared to $33,095 thousand in the same quarter of 2024, indicating a year-over-year growth of 5.9%[32] - Operating income for Q1 2025 was $22,339 thousand, while net income was $17,431 thousand, resulting in a diluted EPS of $0.74[42] Revenue Composition - Recurring revenue increased by 41.0% year-over-year, contributing to the overall revenue mix[4] - Specialty Technology Solutions segment net sales were $678,433 thousand, a decline of 7.0% compared to $729,834 thousand in the same quarter of 2024[35] - Non-GAAP net sales in the United States and Canada were $647,642 thousand, reflecting a 3.5% decline from $671,246 thousand in the prior year[39] - Net sales in Brazil reported a significant decline of 41.1%, dropping to $47,883 thousand from $81,353 thousand year-over-year[39] - Acquisitions impacted net sales by $9,322 thousand in Q1 2025, with no such impact reported in Q1 2024[39] Cash Flow and Assets - Cash and cash equivalents as of March 31, 2025, were $146.3 million, with total debt of $138.0 million[8] - Free cash flow for the first nine months of FY25 was $98.9 million (non-GAAP)[8] - Free cash flow for the quarter ended March 31, 2025, was $64,638 thousand, compared to $157,732 thousand in the same quarter of 2024[40] - Total current assets decreased to $1,310,268 thousand as of March 31, 2025, down from $1,404,699 thousand at June 30, 2024[25] - Total liabilities decreased to $823,462 thousand from $854,777 thousand, indicating a reduction in financial obligations[25] - Cash and cash equivalents at the end of the period were $146,287 thousand, down from $185,460 thousand at the beginning of the period[30] - The company reported a net cash provided by operating activities of $104,704 thousand, significantly lower than $316,908 thousand in the prior year[30] Shareholder Actions - A new $200 million share repurchase authorization was announced, supplementing the existing authorization[12] Other Financial Metrics - The Adjusted return on invested capital (Adjusted ROIC) for the period was 13.6%, up from 12.1% in the previous year[32] - SG&A expenses for Q1 2025 were $69,698 thousand, compared to $66,574 thousand in Q1 2024[42] - The company experienced a capital loss from the sale of its UK-based intY business, which did not result in a tax provision due to the absence of offsetting capital gains[42] - The company reported a foreign exchange impact of $8,705 thousand on consolidated net sales for Q1 2025[39]