EX-99.2 3 scscearningsinfographic_.htm EX-99.2 scscearningsinfographic_
Fiscal First Quarter 2022 Earnings Excellent top-line growth driven by strong demand proves our hybrid distribution strategy is winning. Our business is built for top-line growth, and we realized operational leverage from this growth in outstanding bottom-line results.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights 13% Net Sales Growth and 25% Gross Profit Growth Reaffirmed Full Fiscal Year 2022 Financial Outlook Operational Excellence Amid Ongoing Supply Chain Challenges Net Sales $857.3 M Specialty Technology Solutions +23% Y/Y $501.7M Net Sales Growth +13% Y/Y Modern Communications & Cloud +2% Y/Y $355.6M Delivered Outstanding Q1 Net Sales and Profitability Growth © ScanSource 2021 Consolidated Net Sales Net Sales By Segment Gross Profit by Segment Specialty Technology Solutions +32% Y/Y $45.7M Modern Communications & Cloud +21% Y/Y $55.6M Exhibit 99.2


 
* Non-GAAP measure TTM represents trailing-12 months; ROIC represents return on invested capital For further financial data, non-GAAP financial disclosures and cautionary language regarding forward-looking statements, please refer to the following pages and ScanSource’s fiscal year 2022 first quarter news release issued on November 9, 2021, which accompanies this presentation and is available at www.scansource.com in the Investor Relations section. First Quarter Metrics Reflect Operational Excellence Focused Execution of Value Creation Strategy Solid Financial Foundation for Growth Fiscal Year 2022 Outlook as of November 9, 2021 $0.86 Per Share GAAP Diluted EPS $0.99 Per Share Non-GAAP EPS* +136% Y/Y $41.4M Adjusted EBITDA* +98% Y/Y $(11.4)M TTM Operating Cash Flow 17.5% ROIC* Highest quarter in over 5 years 4.83% Adjusted EBITDA Margin* 1.0x net debt to TTM adjusted EBITDA Target range: 1x to 2x 6.3x inventory turns 5-qtr range: 5.8x to 6.9x Paid for inventory days of (3.2) 5-qtr range: (11.8) to 2.2 62 days sales outstanding 5-qtr range: 60 to 63 Leader in Hybrid Distribution Deep Partnerships Margin Expansion Attractive Return Potential Digital Growth Opportunities © ScanSource 2021 At Least 5.5% Net Sales Growth At Least $135M +14% Y/Y Adjusted EBITDA* 2


 
Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY22 outlook, growth opportunities 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 number of factors could cause actual results to differ materially from anticipated or forecasted results, including but not limited to, the failure to hire and retain quality employees, risk to our business from a cyber-security attack, the failure to manage and implement our organic growth strategy, impact of the COVID-19 pandemic on our operations and financial condition and the potential prolonged economic weakness brought on by COVID-19, a failure of our IT systems, credit risks involving our larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting our international operations, loss of our major customers, termination of our relationship with key suppliers or a significant modification of the terms under which we operate with a key supplier, changes in our operating strategy, and other factors set forth in the “Risk Factors” contained in our annual report on Form 10-K for the year ended June 30, 2021, and subsequent reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”). Although ScanSource believes the expectations in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement. ScanSource disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Financial Information In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP measures, including non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non-GAAP diluted EPS, non-GAAP net sales, non-GAAP gross profit, non-GAAP gross margin, non- GAAP SG&A expenses, adjusted EBITDA, ROIC and net sales less impacts from foreign currency translation and acquisitions (organic growth). A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the following supporting materials and in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 3


 
Consolidated, 5-Quarter Financial Summary - for continuing operations ($ in thousands, except per share data) Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q/Q Y/Y Select reported GAAP measures: Net sales $ 857,311 $ 852,694 $ 729,873 $ 810,897 $ 757,342 1% 13% Gross profit $ 101,300 $ 95,778 $ 88,116 $ 86,043 $ 80,779 6% 25% Gross profit margin % 11.8 % 11.2 % 12.1 % 10.6 % 10.7 % 58 bp 115 bp SG&A expenses $ 63,582 $ 64,758 $ 60,099 $ 60,470 $ 62,112 (2)% 2% Operating income (loss) $ 30,328 $ 23,283 $ 19,436 $ 17,130 $ 1,634 30% *nm Operating income (loss) % 3.54 % 2.73 % 2.66 % 2.11 % 0.22 % 81 bp *nm Net income (loss) $ 22,073 $ 20,657 $ 13,786 $ 11,061 $ (115) 7% *nm Diluted EPS $ 0.86 $ 0.80 $ 0.54 $ 0.43 $ (0.01) 8% *nm Select reported Non-GAAP measures: (a) Net sales $ 857,311 $ 852,694 $ 729,873 $ 810,897 $ 757,342 1% 13% Gross profit $ 101,300 $ 95,778 $ 88,116 $ 86,043 $ 80,779 6% 25% Gross profit margin % 11.8 % 11.2 % 12.1 % 10.6 % 10.7 % 58 bp 115 bp Non-GAAP SG&A expenses $ 63,499 $ 64,512 $ 59,827 $ 59,110 $ 61,614 (2)% 3% Non-GAAP operating income $ 34,921 $ 28,368 $ 25,148 $ 23,836 $ 15,769 23% 121% Non-GAAP operating income % 4.07 % 3.33 % 3.45 % 2.94 % 2.08 % 75 bp 199 bp Non-GAAP net income $ 25,550 $ 24,522 $ 18,178 $ 16,469 $ 10,698 4% 139% Non-GAAP diluted EPS $ 0.99 $ 0.96 $ 0.71 $ 0.65 $ 0.42 3% 136% Adjusted EBITDA $ 41,394 $ 35,299 $ 31,998 $ 29,739 $ 20,911 17% 98% Adjusted EBITDA % 4.83 % 4.14 % 4.38 % 3.67 % 2.76 % 69 bp 207 bp Adjusted ROIC 17.5 % 16.0 % 14.7 % 13.3 % 8.9 % 150 bp 860 bp Operating cash flow (QTR) $ (56,959) $ 61,345 $ (60,252) $ 44,449 $ 71,225 193% (180)% Operating cash flow (TTM) $ (11,417) $ 116,767 $ 129,375 $ 214,975 $ 225,630 (110)% (105)% (a) See pages 11 through 13 for the calculation of non-GAAP measures and reconciliations to GAAP measures. *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 November 9, 2021


 
Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q/Q Y/Y Net sales $ 501,711 $ 515,445 $ 436,462 $ 455,248 $ 408,777 (3)% 23% Gross profit $ 45,694 $ 46,554 $ 39,002 $ 38,612 $ 34,665 (2)% 32% Gross profit margin % 9.1 % 9.0 % 8.9 % 8.5 % 8.5 % 8 bp 63 bp GAAP operating income $ 14,104 $ 12,011 $ 8,713 $ 7,161 $ 1,684 17% 738% GAAP operating income % 2.81 % 2.33 % 2.00 % 1.57 % 0.41 % 48 bp 240 bp Add: Intangible amortization expense $ 1,531 $ 1,610 $ 1,610 $ 1,610 $ 1,610 (5)% (5)% Non-GAAP operating income $ 15,635 $ 13,621 $ 10,323 $ 8,771 $ 3,294 15% 375% Non-GAAP operating income % 3.12 % 2.64 % 2.37 % 1.93 % 0.81 % 47 bp 231 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,104 $ 12,011 $ 8,713 $ 7,161 $ 1,684 17% 738% Plus: Depreciation expense $ 1,868 $ 1,967 $ 2,000 $ 2,165 $ 2,350 (5)% (21)% Intangible amortization expense $ 1,531 $ 1,610 $ 1,610 $ 1,610 $ 1,610 (5)% (5)% Interest income $ (305) $ (965) $ (517) $ (209) $ (284) *nm *nm Foreign exchange (gain)/loss $ 77 $ 33 $ 12 $ 303 $ 147 133% (48)% Other income/expense, net $ (90) $ (23) $ (123) $ (174) $ (17) 291% 429% EBITDA $ 17,821 $ 16,543 $ 12,951 $ 11,016 $ 5,798 8% 207% Adjustments: Share-based compensation expense $ 1,398 $ 1,325 $ 1,376 $ 1,114 $ 638 6% 119% Adjusted EBITDA (non-GAAP) $ 19,219 $ 17,868 $ 14,327 $ 12,130 $ 6,436 8% 199% Adjusted EBITDA (non-GAAP) % 3.83 % 3.47 % 3.28 % 2.66 % 1.57 % 36 bp 226 bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 November 9, 2021


 
Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q/Q Y/Y Net sales $ 355,600 $ 337,249 $ 293,411 $ 355,649 $ 348,565 5% 2% Gross profit $ 55,606 $ 49,224 $ 49,114 $ 47,431 $ 46,114 13% 21% Gross profit margin % 15.6 % 14.6 % 16.7 % 13.3 % 13.2 % 104 bp 241 bp GAAP operating income $ 16,307 $ 11,466 $ 11,555 $ 11,814 $ 8,716 42% 87% GAAP operating income % 4.59 % 3.40 % 3.94 % 3.32 % 2.50 % 119 bp 209 bp Add: Intangible amortization expense $ 2,978 $ 3,283 $ 3,270 $ 3,252 $ 3,242 (9)% (8)% Add: Change in fair value of contingent consideration $ — $ — $ — $ — $ 516 *nm *nm Non-GAAP operating income $ 19,285 $ 14,749 $ 14,825 $ 15,066 $ 12,474 31% 55% Non-GAAP operating income % 5.42 % 4.37 % 5.05 % 4.24 % 3.58 % 105 bp 184 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 16,307 $ 11,466 $ 11,555 $ 11,814 $ 8,716 42% 87% Plus: Depreciation expense $ 1,273 $ 1,231 $ 1,478 $ 1,322 $ 1,508 3 bp (16) bp Intangible amortization expense $ 2,978 $ 3,283 $ 3,270 $ 3,252 $ 3,242 (9)% (8)% Interest income $ (721) $ (376) $ (228) $ (322) $ (197) *nm *nm Foreign exchange (gain)/loss $ 408 $ 33 $ (54) $ 78 $ 291 1136 bp 40 bp Other income/expense, net $ (132) $ (110) $ (138) $ (86) $ (58) 20 bp 128 bp EBITDA $ 21,003 $ 16,433 $ 16,723 $ 16,718 $ 13,430 28% 56% Adjustments: Share-based compensation expense $ 1,173 $ 1,003 $ 1,160 $ 892 $ 530 17% 121% Fair value of contingent consideration $ — $ — $ — $ — $ 516 *nm *nm Adjusted EBITDA (non-GAAP) $ 22,176 $ 17,436 $ 17,883 $ 17,610 $ 14,476 27% 53% Adjusted EBITDA (non-GAAP) % 6.24 % 5.17 % 6.09 % 4.95 % 4.15 % 107 bp 208 bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 November 9, 2021


 
Net Sales, Constant Currency (Organic Growth) - QTR Net Sales by Segment: ($ In thousands) Q1 FY22 Q1 FY21 % Change Specialty Technology Solutions: Net sales, as reported $ 501,711 $ 408,777 22.7 % Foreign exchange impact (a) (467) — Net Sales, constant currency (non-GAAP) $ 501,244 $ 408,777 22.6 % Modern Communications & Cloud: Net sales, as reported $ 355,600 $ 348,565 2.0 % Foreign exchange impact (a) (1,970) — Net Sales, constant currency (non-GAAP) $ 353,630 $ 348,565 1.5 % Consolidated: Net sales, as reported $ 857,311 $ 757,342 13.2 % Foreign exchange impact (a) (2,437) — Net Sales, constant currency (non-GAAP) $ 854,874 $ 757,342 12.9 % Net Sales by Geography: ($ in thousands) Q1 FY22 Q1 FY21 % Change United States and Canada: Net sales, as reported $ 769,499 $ 683,603 12.6 % International: Net sales, as reported $ 87,812 $ 73,739 19.1 % Foreign exchange impact (a) (2,437) — Net Sales, constant currency (non-GAAP) $ 85,375 $ 73,739 15.8 % Consolidated: Net sales, as reported $ 857,311 $ 757,342 13.2 % Foreign exchange impact (a) (2,437) — Net Sales, constant currency (non-GAAP) $ 854,874 $ 757,342 12.9 % (a) Year-over-year sales growth excluding the translation impact of changes in foreign currency rates. Calculated by translating net sales for the quarter ended September 30, 2021 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended September 30, 2020. ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 November 9, 2021


 
Average Return on Invested Capital - QTR ($ in thousands) Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Adjusted return on invested capital (ROIC), annualized (a) 17.5 % 16.0 % 14.7 % 13.3 % 8.9 % Reconciliation of Net Income to Adjusted EBITDA Net income (loss) from continuing operations - GAAP $ 22,073 $ 20,657 $ 13,786 $ 11,061 $ (115) Plus: Interest expense 1,660 1,643 1,576 1,796 1,913 Income taxes 7,358 2,389 5,121 4,683 (47) Depreciation and amortization 7,650 8,090 8,358 8,349 8,710 EBITDA 38,741 32,779 28,841 25,889 10,461 Adjustments: Change in fair value of contingent consideration — — — — 516 Acquisition and divestiture costs 83 246 272 1,360 498 Restructuring costs — (54) 349 484 8,268 Share-based compensation 2,570 2,328 2,537 2,006 1,168 Adjusted EBITDA (numerator for ROIC) (non-GAAP) $ 41,394 $ 35,299 $ 31,999 $ 29,739 $ 20,911 Invested Capital Calculation $ 731,191 $ 690,575 $ 682,139 $ 671,227 $ 678,246 746,094 731,191 690,575 682,139 671,227 Equity - beginning of the quarter Equity - end of quarter Adjustments: Change in fair value of contingent consideration, net of tax — — — — 390 Share-based compensation, net 1,922 1,752 1,912 1,510 878 Acquisition and divestiture costs 83 207 272 1,360 498 Restructuring, net of tax — (40) 264 366 6,250 Discontinued operations net (income) loss — (3,053) 688 25,255 11,704 739,645 710,316 687,925 690,929 684,597 197,406 177,074 191,996 198,620 243,268 Average equity Average funded debt (b) Invested capital (denominator for ROIC) (non-GAAP) $ 937,051 $ 887,390 $ 879,921 $ 889,549 $ 927,865 (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized divided by invested capital for the period. Adjusted EBITDA reflects other adjustments for non-GAAP measures. (b) Average funded debt, which includes both continuing and discontinued operations, is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 November 9, 2021


 
Net Debt and EBITDA Metrics ($ in thousands) Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Debt of continuing operations (Q/E) $ 197,356 $ 143,174 $ 198,851 $ 151,924 $ 148,799 Debt of discontinued operations (Q/E) — — — — 19,932 Consolidated debt (Q/E) 197,356 143,174 198,851 151,924 168,731 Less: Cash and cash equivalents of continuing operations (Q/E) (55,491) (62,718) (49,321) (67,187) (49,889) Cash and cash equivalents of discontinued operations (Q/E) — — — — (5,678) Consolidated cash and cash equivalents (Q/E) (55,491) (62,718) (49,321) (67,187) (55,567) Net debt (Q/E) $ 141,865 $ 80,456 $ 149,530 $ 84,737 $ 113,164 Reconciliation of Net Income to Adjusted EBITDA Net income (loss) from continuing operations - GAAP $ 22,073 $ 20,657 $ 13,786 $ 11,061 $ (115) Plus: Interest expense 1,660 1,643 1,576 1,796 1,913 Income taxes 7,358 2,389 5,121 4,683 (47) Depreciation and amortization 7,650 8,090 8,358 8,349 8,710 EBITDA 38,741 32,779 28,841 25,889 10,461 Adjustments: Change in fair value of contingent consideration — — — — 516 Acquisition and divestiture costs 83 246 272 1,360 498 Restructuring costs — (54) 349 484 8,268 Share-based compensation 2,570 2,328 2,537 2,006 1,168 Adjusted EBITDA (non-GAAP) $ 41,394 $ 35,299 $ 31,999 $ 29,739 $ 20,911 Adjusted EBITDA, TTM (a) $ 138,431 $ 117,948 $ 96,605 $ 85,475 $ 90,332 Net Debt / Adjusted EBITDA, TTM (a) 1.0x 0.7x 1.5x 1.0x 1.3x (a) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 November 9, 2021


 
Working Capital, 5-Quarter Summary ($ in thousands) Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Accounts Receivable (Q/E) $ 589,532 $ 568,984 $ 509,404 $ 534,583 $ 509,779 Days sales outstanding in receivables 62 60 63 60 61 Inventory (Q/E) $ 493,541 $ 470,081 $ 459,652 $ 421,003 $ 423,088 Inventory turns 6.3 6.5 5.8 6.9 6.2 Accounts payable (Q/E) $ 602,229 $ 634,805 $ 521,552 $ 589,292 $ 544,856 Paid for inventory days* (3.2) (9.4) 2.2 (11.8) (7.2) Working Capital (Q/E) (AR+INV-AP) $ 480,844 $ 404,260 $ 447,504 $ 366,294 $ 388,011 Cash conversion cycle 59 51 65 48 54 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 November 9, 2021


 
Operating Income, Pre-Tax Income, Net Income & EPS - QTR ($ in thousands) Quarter ended September 30, 2021 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Non-GAAP measure Net sales $ 857,311 $ — $ — $ — $ 857,311 Gross profit 101,300 — — — 101,300 SG&A expenses 63,582 — — (83) 63,499 Operating income 30,328 4,510 — 83 34,921 Other expense, net 897 — — — 897 Pre-tax income 29,431 4,510 — 83 34,024 Net income 22,073 3,394 — 83 25,550 Diluted EPS $ 0.86 $ 0.13 $ — $ — $ 0.99 (a) Acquisition and divestiture costs totaled less than $0.1 million for the quarter ended September 30, 2021 and are generally nondeductible for tax purposes. ($ in thousands) Quarter ended June 30, 2021 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Non-GAAP measure Net sales $ 852,694 $ — $ — $ — $ 852,694 Gross profit 95,778 — — — 95,778 SG&A expenses 64,758 — — (246) 64,512 Operating income 23,283 4,893 — 192 28,368 Other expense, net 237 — — — 237 Pre-tax income 23,046 4,893 — 192 28,131 Net income 20,657 3,698 — 167 24,522 Diluted EPS $ 0.80 $ 0.14 $ — $ 0.01 $ 0.96 (a) Acquisition and divestiture costs totaled $0.2 million for the quarter ended June 30, 2021 and are generally nondeductible for tax purposes. Restructuring costs totaled $(0.1) million for the quarter ended June 30, 2021. ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 November 9, 2021


 
Operating Income, Pre-Tax Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended March 31, 2021 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Non-GAAP measure Net sales $ 729,873 $ — $ — $ — $ 729,873 Gross profit 88,116 — — — 88,116 SG&A expenses 60,099 — — (272) 59,827 Operating income 19,436 4,880 — 832 25,148 Other expense, net 529 — — — 529 Pre-tax income 18,907 4,880 — 832 24,619 Net income 13,786 3,697 — 695 18,178 Diluted EPS $ 0.54 $ 0.14 $ — $ 0.03 $ 0.71 (a) Acquisition and divestiture costs totaled $0.3 million for the quarter ended March 31, 2021 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.6 million for the quarter ended March 31, 2021. ($ in thousands) Quarter ended December 31, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Non-GAAP measure Net sales $ 810,897 $ — $ — $ — $ 810,897 Gross profit 86,043 — — — 86,043 SG&A expenses 60,470 — — (1,360) 59,110 Operating income 17,130 4,862 — 1,844 23,836 Other expense, net 1,386 — — — 1,386 Pre-tax (loss) income 15,744 4,862 — 1,844 22,450 Net (loss) income 11,061 3,682 — 1,726 16,469 Diluted EPS $ 0.43 $ 0.14 $ — $ 0.07 $ 0.65 (a) Acquisition and divestiture costs totaled $1.4 million for the quarter ended December 30, 2020 and are generally nondeductible for tax purposes. Restructuring costs totaled $0.5 million for the quarter ended December 31, 2020. ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 November 9, 2021


 
Operating Income, Pre-Tax Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended September 30, 2020 Reported GAAP measure Intangible amortization expense Change in fair value of contingent consideration Acquisition, divestiture and restructuring costs(a) Non-GAAP measure Net sales $ 757,342 $ — $ — $ — $ 757,342 Gross profit 80,779 — — — 80,779 SG&A expenses 62,112 — — (498) 61,614 Operating (loss) income 1,634 4,853 516 8,766 15,769 Other expense, net 1,796 — — — 1,796 Pre-tax (loss) income (162) 4,853 516 8,766 13,973 Net (loss) income (115) 3,675 390 6,748 10,698 Diluted EPS $ (0.01) $ 0.14 $ 0.02 $ 0.27 $ 0.42 (a) Acquisition and divestiture costs totaled $0.5 million for the quarter ended September 30, 2020 and are generally nondeductible for tax purposes. Restructuring costs totaled $8.3 million for the quarter ended September 30, 2020. ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 November 9, 2021


 
FY22 Annual Financial Outlook Reconciliation FY22 Outlook GAAP, operating income At least $92 million Intangible amortization $18 million Depreciation expense $14 million Share-based compensation expense $11 million Adjusted EBITDA (non-GAAP) At least $135 million ScanSource, Inc. Earnings Infographic Q1 FY2022 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 November 9, 2021