EX-99.1 2 q42016exh991.htm PRESS RELEASE DATED JANUARY 10, 2017 Exhibit

Exhibit 99.1
image0a09.jpg
FOR IMMEDIATE RELEASE

Investor Contact:
Phyllis Proffer
Director, Investor Relations
SYNNEX Corporation
Telephone: (864) 373-7354

SYNNEX Corporation Reports Fiscal 2016 Fourth Quarter and Full Year Results
Company Reports Record Quarterly and Annual Revenue, Operating and Net Income

Fremont, Calif., - January 10, 2017 - SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2016.
 
Q4 FY16
Q4 FY15
Net change
Revenue ($M)
$3,887
$3,550
9.5%
Operating income ($M)
$130.6
$105.0
24.5%
Non-GAAP operating income ($M)(1)
$156.1
$120.0
30.1%
Operating margin
3.36%
2.96%
40 bps
Non-GAAP operating margin(1)
4.02%
3.38%
64 bps
Net income attributable to SYNNEX Corporation ($M) 
$85.3
$62.2
37.3%
Non-GAAP net income attributable to SYNNEX Corporation ($M)(1) 
$102.9
$71.6
43.7%
Diluted EPS
$2.13
$1.56
36.5%
Non-GAAP Diluted EPS(1)
$2.57
$1.80
42.8%
(1) Non-GAAP financial measures exclude the impact of acquisition and integration expenses, the amortization of intangible assets and the related tax effects thereon. A reconciliation of GAAP to Non-GAAP financial information is presented in the supplementary information section at the end of this press release.
“Our financial results for our fourth quarter and fiscal 2016 are a reflection of strong execution and the progress we have made in our strategy,” said Kevin Murai, President and Chief Executive Officer, SYNNEX Corporation. “and I believe our strategic investments will continue to position us well for the future.”



Fiscal 2016 Fourth Quarter Highlights:
•
Technology Solutions: Revenue was $3.4 billion, up 6.6% from the prior fiscal year quarter. Adjusting for the translation effect of foreign currencies, the Technology Solutions business increased by 5.9% compared with last year. Technology Solutions generated operating income of $92.6 million, or 2.73% of segment revenue, compared with $80.4 million, or 2.53% of segment revenue, in the fiscal fourth quarter of 2015.
•
Concentrix: Revenue was $500.4 million, an increase of 33.9% from the $373.6 million in revenue generated during the fourth quarter of last year. Adjusting for the Minacs acquisition and translation effect of foreign currencies, Concentrix revenue grew 1.8% compared with last year. Operating income was $38.0 million, or 7.60% of Concentrix revenue, compared with $24.4 million in the prior fiscal year quarter. Non-GAAP operating income was $62.8 million, or 12.55% of segment revenue, for fiscal fourth quarter of 2016, compared with $38.8 million, or 10.38% of segment revenue, in the fiscal fourth quarter of 2015.
•
The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 10.3% compared with 9.2% in the prior year fiscal fourth quarter. The adjusted trailing fiscal four quarters ROIC was 11.5%.
•
The debt to capitalization ratio was 32.8%, up from 28.9% in the prior fiscal year fourth quarter.
•
Depreciation and amortization were $18.7 million and $19.0 million, respectively.
•
Cash generated from operations was approximately $51 million for the quarter.
 
FY16
FY15
Net change
Revenue ($M)
$14,062
$13,338
5.4%
Operating income ($M)
$379.6
$354.6
7.1%
Non-GAAP operating income ($M)(1)
$449.7
$419.4
7.2%
Operating margin
2.70%
2.66%
4 bps
Non-GAAP operating margin(1)
3.20%
3.14%
6 bps
Net income attributable to SYNNEX Corporation ($M) 
$234.9
$208.5
12.7%
Non-GAAP net income attributable to SYNNEX Corporation ($M)(1) 
$281.2
$249.9
12.5%
Diluted EPS
$5.88
$5.24
12.2%
Non-GAAP Diluted EPS(1)
$7.04
$6.28
12.1%
(1) Non-GAAP financial measures exclude the impact of acquisition and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon. A reconciliation of GAAP to Non-GAAP financial information is presented in the supplementary information section at the end of this press release.
Fiscal 2016 Highlights:
•
Technology Solutions: Revenue was $12.5 billion, up 4.6% from the prior fiscal year. Adjusting for the translation effect of foreign currencies, the Technology Solutions business increased by 4.7% compared with last year. Technology Solutions operating income was $315.5 million, or 2.70% of segment revenue compared with $303.0 million, or 2.54% of segment revenue, in fiscal 2015.
•
Concentrix: Revenue was $1.6 billion, a 12.1% increase from the $1.4 billion in revenue generated during last year. Adjusting for the Minacs acquisition and translation effect of foreign currencies, Concentrix revenue grew 2.7% compared with last year. Operating income was $63.9 million, or 4.02% of Concentrix revenue, compared with $51.1 million in the prior fiscal year. Non-GAAP operating income was $131.4 million, or 8.27% of segment revenue, for fiscal 2016, compared with $113.4 million, or 8.00% of segment revenue, in fiscal 2015.
•
Depreciation and amortization were $65.3 million and $55.5 million, respectively.
•
Cash generated from operations was approximately $326 million for the year.



Fiscal 2017 First Quarter Outlook:
The following statements are based on SYNNEX’s current expectations for the fiscal 2017 first quarter. Non-GAAP financial measures exclude the impact of acquisition and integration expenses, the amortization of intangibles and the related tax impact thereon. These statements are forward-looking and actual results may differ materially.
•
Revenue is expected to be in the range of $3.40 billion to $3.60 billion.
•
Net income is expected to be in the range of $52.6 million to $55.8 million and on a Non-GAAP basis net income is expected to be in the range of $64.7 million to $67.9 million.
•
Diluted earnings per share is expected to be in the range of $1.31 to $1.39 and on a Non-GAAP basis diluted earnings per share is expected to be in the range of $1.61 to $1.69.
•
After-tax amortization of intangibles is expected to be $11.1 million, or $0.28 per share. After tax acquisition and integration expenses are expected to be $1.0 million, or $0.02 per share.

Dividend Announcement
SYNNEX previously announced that its Board of Directors declared a quarterly cash dividend of $0.25 per common share. The dividend will be payable on January 27, 2017 to stockholders of record as of the close of business on January 13, 2017.

Conference Call and Webcast
SYNNEX will be discussing its financial results and outlook on a conference call today at 2:00 p.m. (PT). A webcast of the call will be available at http://ir.synnex.com. The conference call will also be available via telephone by dialing (888) 469-3219 in North America or (630) 395-0205 outside North America. The passcode for the call is “SNX.” A replay of the webcast will be available at http://ir.synnex.com approximately two hours after the conference call has concluded where it will be archived for one year.

About SYNNEX Corporation
SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation, is a leading business process services company, optimizing supply chains and providing outsourced services focused on customer relationship management. SYNNEX distributes a broad range of information technology systems and products, and also provides systems design and integration solutions. Concentrix, a wholly-owned subsidiary of SYNNEX Corporation, offers a portfolio of strategic solutions and end-to-end business services around customer engagement strategy, process optimization, technology innovation, front and back-office automation and business transformation to clients in ten identified industry verticals. Founded in 1980, SYNNEX Corporation operates in 26 countries around the world. Additional information about SYNNEX may be found online at www.synnex.com.



Use of Non-GAAP Financial Information
To supplement the financial results presented in accordance with GAAP, SYNNEX uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), non-GAAP net income attributable to SYNNEX Corporation, non-GAAP diluted earnings per share and adjusted ROIC, which are non-GAAP financial measures that exclude acquisition and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.
SYNNEX refers to growth rates at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the Company's business performance. Financial results adjusted for currency are calculated by translating current period activity in local currency using the comparable prior year periods’ currency conversion rate. This approach is used for countries where the functional currency is the local currency. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.
Trailing fiscal four quarters ROIC is defined as the last four quarters’ tax effected operating income divided by the average of the last five quarterly balances of debt and equity, net of cash and cash equivalents in the United States. Adjusted ROIC, or ROIC excluding the impact of acquisition and integration expenses, restructuring costs and the amortization of intangibles is calculated by excluding the tax effected impact of these items from operating income and equity.
These non-GAAP financial measures provide investors with an additional tool to evaluate operating results. Because these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business to establish operational goals, and in some cases for measuring performance for compensation purposes. SYNNEX management believes it is useful for the company and investors to review, as applicable, both GAAP information and non-GAAP financial measures in order to assess the performance of SYNNEX’ continuing businesses and for planning and forecasting in future periods. These non-GAAP measures are intended to provide investors with an understanding of SYNNEX’ operational results and trends that more readily enable investors to analyze SYNNEX' base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends. The management of SYNNEX believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A reconciliation of SYNNEX’ non-GAAP financial information to GAAP is set forth in the supplemental information table at the end of this press release.

Safe Harbor Statement
Statements in this news release regarding SYNNEX Corporation, which are not historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding SYNNEX’ expectations and outlook for the fiscal 2017 first quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, after-tax amortization of intangibles, after-tax impact of acquisition and integration expenses and the timing of completion of such costs, our progress regarding our growth initiatives, currency impact,


the frequency and occurrence of dividend declarations, and the anticipated benefits of the non-GAAP financial measures, are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to: general economic conditions and any weakness in information technology and consumer electronics spending; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any future incidents of theft; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2015 and subsequent SEC filings. Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.
Copyright 2017 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX, MINACS and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, CONCENTRIX and MINACS Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.
 
SNX-F


SYNNEX Corporation
Consolidated Balance Sheets
(currency in thousands)
(unaudited)
 
November 30,
2016
 
November 30,
2015
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
380,717

 
$
336,072

Restricted cash
6,265

 
88,558

Short-term investments
5,109

 
5,546

Accounts receivable, net
1,756,494

 
1,759,491

Receivable from related parties
102

 
114

Inventories
1,741,734

 
1,328,967

Current deferred tax assets
49,116

 
40,510

Other current assets
105,572

 
90,523

Total current assets
4,045,109

 
3,649,781

Property and equipment, net
312,716

 
248,627

Goodwill
486,239

 
298,785

Intangible assets, net
298,550

 
166,567

Deferred tax assets
14,448

 
19,849

Other assets
66,201

 
60,538

Total assets
$
5,223,263

 
$
4,444,147

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Borrowings, current
$
363,737

 
$
92,093

Accounts payable
1,683,155

 
1,445,194

Payable to related parties
30,679

 
7,661

Accrued compensation and benefits
165,585

 
135,453

Other accrued liabilities
217,575

 
218,687

Income taxes payable
17,097

 
19,069

Total current liabilities
2,477,828

 
1,918,157

Long-term borrowings
603,229

 
638,798

Other long-term liabilities
103,217

 
76,582

Deferred tax liabilities
63,191

 
10,713

Total liabilities
3,247,465

 
2,644,250

SYNNEX Corporation stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
41

 
40

Additional paid-in capital
440,713

 
411,687

Treasury stock
(67,262
)
 
(51,287
)
Accumulated other comprehensive income (loss)
(93,116
)
 
(55,237
)
Retained earnings
1,695,400

 
1,494,178

Total SYNNEX Corporation stockholders’ equity
1,975,776

 
1,799,381

Noncontrolling interest
22

 
516

Total equity
1,975,798

 
1,799,897

Total liabilities and equity
$
5,223,263

 
$
4,444,147



SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except for per share amounts)
(unaudited)
 
Three Months Ended
 
Fiscal Year Ended
 
November 30, 2016
 
November 30, 2015
 
November 30, 2016
 
November 30, 2015
Revenue:
 
 
 
 
 
 
 
Products
$
3,390,665

 
$
3,179,750

 
$
12,490,427

 
$
11,936,282

Services
496,237

 
369,867

 
1,571,410

 
1,402,115

Total revenue
3,886,902

 
3,549,617

 
14,061,837

 
13,338,397

Cost of revenue:
 
 
 
 
 
 
 
Products
(3,206,961
)
 
(3,012,292
)
 
(11,815,479
)
 
(11,276,819
)
Services
(301,155
)
 
(224,589
)
 
(963,393
)
 
(869,787
)
Gross profit
378,786

 
312,736

 
1,282,965

 
1,191,791

Selling, general and administrative expenses
(248,144
)
 
(207,771
)
 
(903,369
)
 
(837,239
)
Operating income
130,642

 
104,965

 
379,596

 
354,552

Interest expense and finance charges, net
(8,748
)
 
(7,246
)
 
(28,993
)
 
(26,296
)
Other income (expense), net
856

 
606

 
5,461

 
(1,061
)
Income before income taxes
122,750

 
98,325

 
356,064

 
327,195

Provision for income taxes
(37,440
)
 
(36,101
)
 
(121,059
)
 
(118,588
)
Net income
85,310

 
62,224

 
235,005

 
208,607

Net (income) loss attributable to noncontrolling interest
8

 
(67
)
 
(59
)
 
(82
)
Net income attributable to SYNNEX Corporation
$
85,318

 
$
62,157

 
$
234,946

 
$
208,525

Earnings per share attributable to SYNNEX Corporation:
 
 
 
 
 
 
 
Basic
$
2.14

 
$
1.57

 
$
5.91

 
$
5.28

Diluted
$
2.13

 
$
1.56

 
$
5.88

 
$
5.24

Weighted-average common shares outstanding:
 
 


 
 
 
 
Basic
39,431

 
39,134

 
39,321

 
39,061

Diluted
39,647

 
39,431

 
39,530

 
39,352

Cash dividends declared per share
$
0.25

 
$
0.20

 
$
0.85

 
$
0.58

 


SYNNEX Corporation
Segment Information
(currency in thousands)
(unaudited)
 
Three Months Ended
 
Fiscal Year Ended
 
November 30, 2016
 
November 30, 2015
 
November 30, 2016
 
November 30, 2015
Revenue:
 
 
 
 
 
 
 
  Technology Solutions
$
3,390,749

 
$
3,179,819

 
$
12,490,718

 
$
11,936,660

  Concentrix
500,404

 
373,639

 
1,587,736

 
1,416,670

  Inter-segment elimination
(4,251
)
 
(3,841
)
 
(16,617
)
 
(14,933
)
  Consolidated
$
3,886,902

 
$
3,549,617

 
$
14,061,837

 
$
13,338,397

 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
  Technology Solutions
$
92,589

 
$
80,438

 
$
315,485

 
$
302,950

  Concentrix
38,022

 
24,408

 
63,877

 
51,127

  Inter-segment elimination
31

 
119

 
234

 
475

  Consolidated
$
130,642

 
$
104,965

 
$
379,596

 
$
354,552





SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency in thousands)
 
Three Months Ended
 
Fiscal Year Ended
 
November 30, 2016
 
November 30, 2015
 
November 30, 2016
 
November 30, 2015
Revenue in Constant Currency
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Revenue
$
3,886,902

 
$
3,549,617

 
$
14,061,837

 
$
13,338,397

Foreign currency translation
(21,835
)
 
 
 
37,268

 
 
Revenue in constant currency
$
3,865,067

 
$
3,549,617

 
$
14,099,105

 
$
13,338,397

 
 
 
 
 
 
 
 
Technology Solutions
 
 
 
 
 
 
 
Revenue
$
3,390,749

 
$
3,179,819

 
$
12,490,718

 
$
11,936,660

Foreign currency translation
(22,778
)
 
 
 
12,780

 
 
Revenue in constant currency
$
3,367,971

 
$
3,179,819

 
$
12,503,498

 
$
11,936,660

 
 
 
 
 
 
 
 
Concentrix
 
 
 
 
 
 
 
Revenue
$
500,404

 
$
373,639

 
$
1,587,736

 
$
1,416,670

Foreign currency translation
943

 
 
 
24,488

 
 
Revenue in constant currency
$
501,347

 
$
373,639

 
$
1,612,224

 
$
1,416,670



 
Three Months Ended
 
Fiscal Year Ended
 
November 30, 2016
 
November 30, 2015
 
November 30, 2016
 
November 30, 2015
Selling, general and administrative expenses
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
$
248,144

 
$
207,771

 
$
903,369

 
$
837,239

Acquisition and integration expenses
6,465

 
2,038

 
10,393

 
10,109

Restructuring costs
—

 
—

 
4,255

 
—

Amortization of intangibles
18,504

 
12,669

 
54,250

 
53,646

Adjusted selling, general and administrative expenses
$
223,175

 
$
193,064

 
$
834,471

 
$
773,484

 
 
 
 
 
 
 
 
Technology Solutions
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
$
91,200

 
$
87,088

 
$
359,754

 
$
356,880

Amortization of intangibles
670

 
652

 
2,657

 
2,630

Adjusted selling, general and administrative expenses
$
90,530

 
$
86,436

 
$
357,097

 
$
354,250

 
 
 
 
 
 
 
 
Concentrix
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
$
159,007

 
$
122,649

 
$
551,570

 
$
487,187

Acquisition and integration expenses
6,465

 
2,038

 
10,393

 
10,109

Restructuring costs
—

 
—

 
4,255

 
—

Amortization of intangibles
17,834

 
12,017

 
51,593

 
51,016

Adjusted selling, general and administrative expenses
$
134,708

 
$
108,594

 
$
485,329

 
$
426,062



SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency and share amounts in thousands, except for per share amounts)
(continued)
 
Three Months Ended
 
Fiscal Year Ended
 
November 30, 2016
 
November 30, 2015
 
November 30, 2016
 
November 30, 2015
Operating income and Operating margin
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Revenue
$
3,886,902

 
$
3,549,617

 
$
14,061,837

 
$
13,338,397

 
 
 
 
 
 
 
 
GAAP operating income
$
130,642

 
$
104,965

 
$
379,596

 
$
354,552

Acquisition and integration expenses
6,465

 
2,038

 
10,393

 
10,109

Restructuring costs
—

 
—

 
4,255

 
—

Amortization of intangibles
18,981

 
12,985

 
55,490

 
54,756

Non-GAAP operating income
$
156,088

 
$
119,988

 
$
449,734

 
$
419,417

Depreciation
18,712

 
13,449

 
65,261

 
48,754

Adjusted EBITDA
$
174,800

 
$
133,437

 
$
514,995

 
$
468,171

 
 
 
 
 
 
 
 
GAAP operating margin
3.36
%
 
2.96
%
 
2.70
%
 
2.66
%
Non-GAAP operating margin
4.02
%
 
3.38
%
 
3.20
%
 
3.14
%
 
 
 
 
 
 
 
 
Technology Solutions
 
 
 
 
 
 
 
Revenue
$
3,390,749

 
$
3,179,819

 
$
12,490,718

 
$
11,936,660

 
 
 
 
 
 
 
 
GAAP operating income
$
92,589

 
$
80,438

 
$
315,485

 
$
302,950

Amortization of intangibles
670

 
652

 
2,657

 
2,630

Non-GAAP operating income
$
93,259

 
$
81,090

 
$
318,142

 
$
305,580

Depreciation
3,489

 
3,307

 
13,935

 
12,475

Adjusted EBITDA
$
96,748

 
$
84,397

 
$
332,077

 
$
318,055

 
 
 
 
 
 
 
 
GAAP operating margin
2.73
%
 
2.53
%
 
2.53
%
 
2.54
%
Non-GAAP operating margin
2.75
%
 
2.55
%
 
2.55
%
 
2.56
%
 
 
 
 
 
 
 
 
Concentrix
 
 
 
 
 
 
 
Revenue
$
500,404

 
$
373,639

 
$
1,587,736

 
$
1,416,670

 
 
 
 
 
 
 
 
GAAP operating income
$
38,022

 
$
24,408

 
$
63,877

 
$
51,127

Acquisition and integration expenses
6,465

 
2,038

 
10,393

 
10,109

Restructuring costs
—

 
—

 
4,255

 
—

Amortization of intangibles
18,311

 
12,333

 
52,833

 
52,126

Non-GAAP operating income
$
62,798

 
$
38,779

 
$
131,358

 
$
113,362

Depreciation
15,254

 
10,261

 
51,560

 
36,755

Adjusted EBITDA
$
78,052

 
$
49,040

 
$
182,918

 
$
150,117

 
 
 
 
 
 
 
 
GAAP operating margin
7.60
%
 
6.53
%
 
4.02
%
 
3.61
%
Non-GAAP operating margin
12.55
%
 
10.38
%
 
8.27
%
 
8.00
%



SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(currency and share amounts in thousands, except for per share amounts)
(continued)
 
Three Months Ended November 30, 2016
 
Fiscal Year Ended November 30, 2016
Minacs operating income
 
 
 
GAAP operating income
$
2,722

 
$
3,838

Acquisition and integration expenses
1,657

 
2,052

Amortization of intangibles
7,662

 
9,397

Non-GAAP operating income
$
12,041

 
$
15,287

Depreciation
1,888

 
2,944

Adjusted EBITDA
$
13,929

 
$
18,231


 
Three Months Ended
 
Fiscal Year Ended
 
November 30, 2016
 
November 30, 2015
 
November 30, 2016
 
November 30, 2015
Net income
 
 
 
 
 
 
 
Net income attributable to SYNNEX Corporation
$
85,318

 
$
62,157

 
$
234,946

 
$
208,525

Acquisition and integration expenses
6,465

 
2,038

 
10,393

 
10,109

Restructuring costs
—

 
—

 
4,255

 
—

Amortization of intangibles
18,981

 
12,985

 
55,490

 
54,756

Income taxes related to the above(1)
(7,829
)
 
(5,546
)
 
(23,846
)
 
(23,510
)
Non-GAAP net income attributable to SYNNEX Corporation
$
102,935

 
$
71,634

 
$
281,238

 
$
249,880

 
 
 
 
 
 
 
 
Diluted earnings per common share ("EPS")(2)
 
 
 
 
 
 
 
Net income attributable to SYNNEX Corporation
$
85,318

 
$
62,157

 
$
234,946

 
$
208,525

Less: net income allocated to participating securities
(834
)
 
(673
)
 
(2,408
)
 
(2,413
)
Net income attributable to SYNNEX Corporation common stockholders
84,484

 
61,484

 
232,538

 
206,112

Acquisition and integration expenses attributable to SYNNEX Corporation common stockholders
6,405

 
2,017

 
10,297

 
10,002

Restructuring costs attributable to SYNNEX Corporation common stockholders
—

 
—

 
4,217

 
—

Amortization of intangibles attributable to SYNNEX Corporation common stockholders
18,787

 
12,845

 
54,891

 
54,133

Income taxes related to the above attributable to SYNNEX Corporation common stockholders(1)
(7,749
)
 
(5,489
)
 
(23,590
)
 
(23,261
)
Non-GAAP net income attributable to SYNNEX Corporation common stockholders
$
101,927

 
$
70,857

 
$
278,353

 
$
246,986

 
 
 
 
 
 
 
 
Weighted-average number of common shares - diluted:
39,647

 
39,431

 
39,530

 
39,352

 
 
 
 
 
 
 
 
Diluted EPS(2)
$
2.13

 
$
1.56

 
$
5.88

 
$
5.24

Acquisition and integration expenses
0.16

 
0.05

 
0.26

 
0.25

Restructuring costs
—

 
—

 
0.11

 
—

Amortization of intangibles
0.47

 
0.33

 
1.39

 
1.38

Income taxes related to the above(1)
(0.20
)
 
(0.14
)
 
(0.60
)
 
(0.59
)
Non-GAAP Diluted EPS(3)
$
2.57

 
$
1.80

 
$
7.04

 
$
6.28



SYNNEX Corporation
Reconciliation of GAAP to Non-GAAP financial measures
(amounts in millions, except for per share amounts)
(continued)
 
Forecast
 
Three Months Ending February 28, 2017
 
Low
 
High
Net income
 
 
 
Net income attributable to SYNNEX Corporation
$
52.6

 
$
55.8

Acquisition and integration expenses
1.5

 
1.5

Amortization of intangibles
17.0

 
17.0

Income taxes related to the above(1)
(6.4
)
 
(6.4
)
Non-GAAP net income attributable to SYNNEX Corporation
$
64.7

 
$
67.9

 
 
 
 
Diluted EPS(2)
$
1.31

 
$
1.39

Acquisition and integration expenses
0.04

 
0.04

Amortization of intangibles
0.42

 
0.42

Income taxes related to the above(1)
(0.16
)
 
(0.16
)
Non-GAAP Diluted EPS(3)
$
1.61

 
$
1.69

(1) The tax effect of the non-GAAP adjustments was calculated using the applicable effective tax rate during the periods.
(2) Diluted EPS for all periods presented is calculated using the two-class method. Unvested restricted stock awards granted to employees and non-employee directors are considered participating securities.  For purposes of calculating Diluted EPS, Net income allocated to participating securities was approximately 1.0% of the Net income attributable to SYNNEX Corporation for both the three months and the year ended November 30, 2016, and approximately 1.1% and 1.2% for the three months and the year ended November 30, 2015, respectively. Net income allocated to participating securities is approximately 1.0% of the Net income attributable to SYNNEX Corporation for the three months ending February 28, 2017.
(3) The sum of the components of Non-GAAP Diluted EPS may not agree to totals, as presented, due to rounding.



SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)

Return on Invested Capital ("ROIC")
 
November 30, 2016
 
November 30, 2015
ROIC
 
 
 
Operating income (Trailing fiscal four quarters)
$
379,596

 
$
354,552

Income taxes on operating income(1)
(129,042
)
 
(128,503
)
Operating income after taxes
250,554

 
226,049

 
 
 
 
Total borrowings, excluding book overdraft (five quarters average)
$
781,568

 
$
804,906

Total equity (five quarters average)
1,879,777

 
1,723,374

Less: U.S. cash and cash equivalents (five quarters average)
(229,940
)
 
(80,476
)
Total invested capital
2,431,405

 
2,447,804

 
 
 
 
ROIC
10.3
%
 
9.2
%
 
 
 
 
Adjusted ROIC
 
 
 
Non-GAAP operating income (Trailing fiscal four quarters)
$
449,734

 
$
419,417

Income taxes on Non-GAAP operating income(1)
(152,846
)
 
(152,013
)
Non-GAAP operating income after taxes
296,888

 
267,404

 
 
 
 
Total invested capital
$
2,431,405

 
$
2,447,804

Tax effected impact of acquisition and integration expenses, restructuring costs and amortization of intangibles (five quarters average)
158,550

 
118,241

Total Non-GAAP invested capital
2,589,955

 
2,566,045

 
 
 
 
Adjusted ROIC
11.5
%
 
10.4
%
(1) Income taxes on operating income was calculated using the applicable effective tax rates during the respective quarters.


Debt to Capitalization
 
 
November 30, 2016
 
November 30, 2015
Total borrowings, excluding book overdraft
(a)
$
963,584

 
$
730,891

Total equity
(b)
1,975,798

 
1,799,897

Debt to capitalization
(a)/((a)+(b))
32.8
%
 
28.9
%




SYNNEX Corporation
Calculation of Financial Metrics
(currency in thousands)
(continued)

Cash Conversion Cycle
 
 
Three Months Ended
 
 
November 30, 2016
 
November 30, 2015
Days sales outstanding
 
 
 
 
Revenue (products and services)
(a)
$
3,886,902

 
$
3,549,617

Accounts receivable, including receivable from related parties
(b)
1,756,596

 
1,759,605

Days sales outstanding
(b)/((a)/the number of days during the period)
41

 
45

 
 
 
 
 
Days inventory outstanding
 
 
 
 
Cost of revenue (products and services)
(c)
$
3,508,116

 
$
3,236,881

Inventories
(d)
1,741,734

 
1,328,967

Days inventory outstanding
(d)/((c)/the number of days during the period)
45

 
37

 
 
 
 
 
Days payable outstanding
 
 
 
 
Cost of revenue (products and services)
(e)
$
3,508,116

 
$
3,236,881

Accounts payable, including payable to related parties
(f)
1,713,834

 
1,452,855

Days payable outstanding
(f)/((e)/the number of days during the period)
44

 
41

 
 
 
 
 
Cash conversion cycle
 
42

 
41