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Tech Data Corporation Reports Fourth Quarter and Fiscal Year 2018 Results


Tech Data (NASDAQ: TECD) (the "Company") today announced its financial results for the fourth quarter ended January 31, 2018.

Clearwater, Fla., 8 March 2018:

 


Fourth quarter ended January 31,

Fiscal year ended January 31,

($ in millions,
except per share amounts)

2018

2017

Y/Y
Change

2018

2017

Y/Y
Change

Net Sales

$11,092.5

$7,427.5

49%

$36,775.0

$26,234.9

40%








Operating income (GAAP)

$151.9

$103.1

47%

$410.1

$291.9

40%

Operating margin (GAAP)

1.37%

1.39%

-2 bps

1.12%

1.11%

1 bps








Operating income (Non-GAAP)

$216.0

$122.1

77%

$602.7

$338.9

78%

Operating margin (Non-GAAP)

1.95%

1.64%

31 bps

1.64%

1.29%

35 bps








Net income (GAAP)

$1.3

$78.8

-98%

$116.6

$195.1

-40%

Net income (Non-GAAP)

$134.7

$87.0

55%

$348.3

$225.2

55%








EPS - diluted (GAAP)

$0.03

$2.22

-99%

$3.05

$5.51

-45%

EPS - diluted (Non-GAAP)

$3.50

$2.45

43%

$9.11

$6.36

43%

 

A reconciliation of GAAP to non-GAAP financial measures is presented in the financial tables of this press release.

This information is also available on the Investor Relations section of Tech Data's website at www.techdata.com/investor.

Financial Highlights for the Fourth Quarter Ended January 31, 2018:

  • Net sales were $11.1 billion, an increase of 49 percent compared to the prior-year quarter. The increase in net sales is primarily due to the addition of the Technology Solutions business acquired from Avnet, Inc. on February 27, 2017 ("Technology Solutions"). On a constant currency basis, net sales increased 40 percent.
    • Americas: Net sales were $4.3 billion (39 percent of worldwide net sales), an increase of 59 percent compared to the prior-year quarter. The increase in net sales is primarily attributed to the addition of Technology Solutions. On a constant currency basis, net sales increased 58 percent.
    • Europe: Net sales were $6.5 billion (58 percent of worldwide net sales), an increase of 37 percent compared to the prior-year quarter. The increase in net sales is primarily attributed to the addition of Technology Solutions. On a constant currency basis, net sales increased 24 percent.
    • Asia Pacific: Net sales were $0.3 billion (3 percent of worldwide net sales). Asia Pacific net sales are attributed to the addition of Technology Solutions.
  • Gross profit was $616.9 million, an increase of $245.8 million, or 66 percent compared to the prior-year quarter. As a percentage of net sales, gross profit was 5.56 percent compared to 5.00 percent in the prior-year quarter. The increase in gross profit and gross margin percentage is primarily due to the addition of Technology Solutions.
  • Selling, general and administrative expenses ("SG&A") were $429.0 million, or 3.87 percent of net sales, compared to $253.9 million, or 3.42 percent of net sales in the prior-year quarter. Non-GAAP SG&A was $400.9 million, an increase of $152.0 million, or 61 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP SG&A was 3.61 percent, compared to 3.35 percent in the prior-year quarter. The increase in both dollars and percentage of net sales, on a GAAP and non-GAAP basis, is primarily due to the addition of Technology Solutions.
  • Worldwide operating income was $151.9 million, or 1.37 percent of net sales compared to $103.1 million or 1.39 percent of net sales in the prior-year quarter. Non-GAAP operating income was $216.0 million, an increase of $93.8 million, or 77 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 1.95 percent, an improvement of 31 basis points over the prior-year quarter.
    • Americas: Operating income was $53.9 million, or 1.26 percent of net sales, compared to $39.3 million, or 1.45 percent of net sales in the prior-year quarter. Non-GAAP operating income was $85.1 million, an increase of $37.7 million, or 80 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 1.98 percent, an improvement of 23 basis points over the prior-year quarter.
    • Europe: Operating income was $100.4 million, or 1.55 percent of net sales, compared to $66.7 million, or 1.41 percent of net sales in the prior-year quarter. Non-GAAP operating income was $130.4 million, an increase of $52.7 million, or 68 percent, compared to the prior-year quarter. As a percentage of net sales, non-GAAP operating income was 2.02 percent, an improvement of 37 basis points over the prior-year quarter.
    • Asia Pacific: Operating income was $5.7 million, or 1.69 percent of net sales. Non-GAAP operating income was $7.5 million, or 2.21 percent of net sales.
    • Stock-based compensation expense was $8.2 million, an increase of $5.2 million, compared to the prior-year quarter. This includes $1.2 million of acquisition and integration-related stock compensation expense. These expenses are excluded from the regional operating results and presented as a separate line item in the company's segment reporting (see the GAAP to non-GAAP reconciliation in the financial tables of this press release).
  • Net income was $1.3 million, compared to $78.8 million in the prior-year quarter. Net income for the current quarter includes $95.4 million of income tax expenses incurred as a result of the transition tax and impact on deferred taxes from the U.S. Tax Cuts and Jobs Act enacted in December 2017. Non-GAAP net income was $134.7 million, an increase of $47.7 million, or 55 percent, compared to the prior-year quarter.
  • Earnings per share on a diluted basis ("EPS") were $0.03, compared to $2.22 in the prior year quarter. Non-GAAP EPS was $3.50, an increase of $1.05, or 43 percent compared to the prior-year quarter.
  • Net cash generated by operations during the quarter was $657 million.

Financial Highlights for the Fiscal Year Ended January 31, 2018:

  • Net sales were $36.8 billion, an increase of 40 percent compared to the prior year. The increase in net sales is primarily due to the addition of Technology Solutions. On a constant currency basis, net sales increased 38 percent.
    • Americas: Net sales were $16.0 billion (43 percent of worldwide net sales), an increase of 54 percent compared to the prior year. The increase in net sales is primarily due to the addition of Technology Solutions. On a constant currency basis, net sales increased 53 percent.
    • Europe: Net sales were $19.7 billion (54 percent of worldwide net sales), an increase of 24 percent compared to the prior year. The increase in net sales is primarily due to the addition of Technology Solutions. On a constant currency basis, net sales increased 21 percent.
    • Asia Pacific: Net sales were $1.1 billion (3 percent of worldwide net sales). Asia Pacific net sales are attributed to the addition of Technology Solutions.
  • Gross profit was $2.1 billion, an increase of $813.7 million, or 62 percent compared to the prior year. As a percentage of net sales, gross profit was 5.75 percent compared to 4.96 percent in the prior year. The increase in gross profit and gross margin percentage is primarily due to the addition of Technology Solutions.
  • Selling, general and administrative expenses ("SG&A") were $1.6 billion, or 4.38 percent of net sales, compared to $984.2 million, or 3.75 percent of net sales in the prior year. Non-GAAP SG&A was $1.5 billion, an increase of $549.9 million, or 57 percent, compared to the prior year. As a percentage of net sales, non-GAAP SG&A was 4.11 percent, compared to 3.67 percent in the prior year. The increase in both dollars and percentage of net sales, on a GAAP and non-GAAP basis, is primarily due to the addition of Technology Solutions.
  • Worldwide operating income was $410.1 million, or 1.12 percent of net sales compared to $291.9 million or 1.11 percent of net sales in the prior year. Non-GAAP operating income was $602.7 million, an increase of $263.8 million, or 78 percent, compared to the prior year. As a percentage of net sales, non-GAAP operating income was 1.64 percent, an improvement of 35 basis points over the prior year.
    • Americas: Operating income was $248.4 million, or 1.56 percent of net sales, compared to $144.2 million, or 1.39 percent of net sales in the prior year. Non-GAAP operating income was $333.7 million, an increase of $173.7 million, or 109 percent, compared to the prior year. As a percentage of net sales, non-GAAP operating income was 2.09 percent, an improvement of 55 basis points over the prior year.
    • Europe: Operating income was $173.6 million, or 0.88 percent of net sales, compared to $161.6 million, or 1.02 percent of net sales in the prior year. Non-GAAP operating income was $271.3 million, an increase of $78.4 million, or 41 percent, compared to the prior year. As a percentage of net sales, non-GAAP operating income was 1.38 percent compared to 1.22 percent in the prior year.
    • Asia Pacific: Operating income was $17.5 million, or 1.57 percent of net sales. Non-GAAP operating income was $23.3 million, or 2.09 percent of net sales.
    • Stock-based compensation expense was $29.4 million, an increase of $15.4 million, compared to the prior year. This includes $3.8 million of acquisition and integration-related stock compensation expense. These expenses are excluded from the regional operating results and presented as a separate line item in the company's segment reporting (see the GAAP to non-GAAP reconciliation in the financial tables of this press release).
  • Net income was $116.6 million, compared to $195.1 million in the prior year. Net income for the current fiscal year includes $95.4 million of income tax expenses incurred as a result of the transition tax and impact on deferred taxes from the U.S. Tax Cuts and Jobs Act. Non-GAAP net income was $348.3 million, an increase of $123.0 million, or 55 percent, compared to the prior year.
  • Earnings per share on a diluted basis ("EPS") were $3.05, compared to $5.51 in the prior year. Non-GAAP EPS was $9.11, an increase of $2.75, or 43 percent compared to the prior year.
  • Net cash generated by operations during the fiscal year was $1.1 billion.
  • Return on invested capital for the trailing twelve months was 5 percent, compared to 13 percent in the prior year. Adjusted return on invested capital for the trailing twelve months was 12 percent, compared to 14 percent in the prior year.

"Our strong fourth-quarter performance completes a historic and transformational year for Tech Data," said Robert M. Dutkowsky, chairman and chief executive officer. "During fiscal 2018, we closed the acquisition of Avnet's Technology Solutions business and introduced the new Tech Data - a global company that is redefining technology distribution with a unique end-to-end product and services portfolio and highly specialized skills. Fiscal 2018 was also a year of significant strategic and financial progress, posting the highest sales, non-GAAP earnings and cash flow from operations in our history and revealing the enhanced earnings power and strong cash flow profile of the new Tech Data . This strong financial performance enabled us to pay down $850 million of debt and attain our post-acquisition target leverage ratio well ahead of our 18 to 24-month plan. Our employees, customers and vendor partners are excited about the value the new Tech Data brings to the market today, as well as the future promise of our company."

Business Outlook

Please note, the Business Outlook for worldwide net sales provided below is based on the new revenue recognition standard ("ASC 606") that the Company adopted as of February 1, 2018.

  • For the quarter ending April 30, 2018, the Company anticipates worldwide net sales to be in the range of $8.0 billion to $8.3 billion.
  • For the quarter ending April 30, 2018, the Company anticipates EPS to be in the range of $0.37 to $0.67 and non-GAAP EPS to be in the range of $1.30 to $1.60.
  • This guidance assumes an average U.S. dollar to euro exchange rate of $1.22 to €1.00.
  • This guidance assumes weighted average diluted shares outstanding of 38.6 million.
  • For the quarter ending April 30, 2018, the Company anticipates its effective tax rate will be in the range of 27 percent to 29 percent. For the fiscal year ending January 31, 2019, the Company expects its effective tax rate will be in the range of 26 percent to 28 percent, primarily related to the decrease in the U.S. federal income tax rate as a result of the U.S. Tax Cuts and Jobs Act.

Webcast Details

Tech Data will hold a conference call today at 9:00 a.m. (ET) to discuss its financial results for the fourth quarter and fiscal year ended January 31, 2018. A webcast of the call, including supplemental schedules, will be available to all interested parties and can be obtained at www.techdata.com/investor. The webcast will be available for replay for three months.

Non-GAAP Financial Information

The non-GAAP financial information contained in this release is included with the intention of providing investors a more complete understanding of the Company's operational results and trends, but should only be used in conjunction with results reported in accordance with Generally Accepted Accounting Principles ("GAAP"). Certain non-GAAP measures presented in this release or other releases, presentations and similar documents issued by the Company include sales, income or expense items as adjusted for the impact of changes in foreign currencies (referred to as "constant currency"), non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share and Adjusted Return on Invested Capital. Certain non-GAAP measures also exclude acquisition-related intangible assets amortization expense, benefits associated with legal settlements, acquisition, integration and restructuring expenses, value-added tax assessments and related interest expense, tax indemnifications, acquisition-related financing expenses, changes in deferred tax valuation allowances and the impact of US tax reform. A detailed reconciliation of the adjustments between results calculated using GAAP and non-GAAP in this release is contained in the attached financial schedules. This information can also be obtained from the Company's Investor Relations website at www.techdata.com/investor.

Forward-Looking Statements

Certain statements in this communication may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data's plans, objectives, expectations and intentions, which may relate to the Technology Solutions business, Tech Data's financial results and estimates and/or business prospects, involve a number of risks and uncertainties and actual results could differ materially from those projected. These forward looking statements are based on current expectations, estimates, forecasts, and projections about the operating environment, economies and markets in which Tech Data operates and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward looking statements. In addition, any statements that refer to projections of Tech Data's future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward looking statements. These forward looking statements are only predictions and are subject to risks, uncertainties, and assumptions. Therefore, actual results may differ materially and adversely from those expressed in any forward looking statements.

For additional information with respect to risks and other factors which could occur, see Tech Data's Annual Report on Form 10-K for the year ended January 31, 2017, including Part I, Item 1A, "Risk Factors" therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the "SEC") that are available at the SEC's website at www.sec.gov and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Many of these factors are beyond Tech Data's control. Unless otherwise required by applicable securities laws, Tech Data disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Tech Data undertakes no duty to update any forward looking statements contained herein to reflect actual results or changes in Tech Data's expectations.

About Tech Data

Tech Data connects the world with the power of technology. Our end-to-end portfolio of products, services and solutions, highly specialized skills, and expertise in next-generation technologies enable channel partners to bring to market the products and solutions the world needs to connect, grow and advance. Tech Data is ranked No. 107 on the Fortune 500® and has been named one of Fortune's "World's Most Admired Companies" for nine straight years. To find out more, visit www.techdata.com or follow us on Twitter, LinkedIn, and Facebook.

Contacts:

Charles V. Dannewitz, Executive Vice President,Chief Financial Officer
727-532-8028 (chuck.dannewitz@techdata.com)

Arleen Quiñones, Corporate Vice President, Investor Relations and Corporate Communications
727-532-8866 (arleen.quinones@techdata.com)

TECH DATA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)



Three months ended


Year ended


January 31,


January 31,


2018


2017


2018


2017









Net sales

$11,092,529


$7,427,510


$36,775,011


$26,234,876

Cost of products sold

10,475,668


7,056,483


34,659,390


24,932,949

Gross profit

616,861


371,027


2,115,621


1,301,927

Operating expenses:








Selling, general and administrative expenses

428,965


253,941


1,608,961


984,152

Acquisition, integration and restructuring expenses

34,341


13,969


136,272


28,966

LCD settlements and other, net

-


-


(41,343)


(4,142)

Value added tax assessments

1,652


-


1,652


1,049


464,958


267,910


1,705,542


1,010,025

Operating income

151,903


103,117


410,079


291,902

Interest expense

27,002


15,446


112,207


36,810

Other (income) expense, net

162


(1,152)


(1,212)


(1,669)

Income before income taxes

124,739


88,823


299,084


256,761

Provision for income taxes

123,479


10,001


182,443


61,666

Net income

$ 1,260


$ 78,822


$ 116,641


$ 195,095









Earnings per share:








Basic

$ 0.03


$ 2.24


$ 3.07


$ 5.54

Diluted

$ 0.03


$ 2.22


$ 3.05


$ 5.51

Weighted average common shares outstanding:








Basic

38,194


35,224


37,957


35,194

Diluted

38,529


35,512


38,216


35,428

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands, except par value and share amounts)



January 31,


January 31,


2018


2017

ASSETS

(unaudited)



Current assets:




Cash and cash equivalents

$ 955,628


$ 2,125,591

Accounts receivable, net

5,783,666


3,047,927

Inventories

3,065,218


2,118,902

Prepaid expenses and other assets

288,178


119,906

Total current assets

10,092,690


7,412,326

Property and equipment, net

279,091


74,239

Goodwill

969,168


199,021

Intangible assets, net

1,086,772


130,676

Other assets, net

224,915


115,604

Total assets

$ 12,652,636


$ 7,931,866





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$ 6,947,282


$ 3,844,532

Accrued expenses and other liabilities

917,174


493,199

Revolving credit loans and current maturities of long-term debt, net

132,661


373,123

Total current liabilities

7,997,117


4,710,854

Long-term debt, less current maturities

1,505,248


989,924

Other long-term liabilities

228,779


61,200

Total liabilities

$ 9,731,144


$ 5,761,978

Shareholders' equity:




Common stock, par value $0.0015; 200,000,000 shares authorized; 59,245,585
shares issued at Januray 31, 2018 and January 31, 2017

$ 89


$ 89

Additional paid-in capital

827,301


686,042

Treasury stock, at cost (21,083,972 and 24,018,983 shares at January 31,
2018 and January 31, 2017)

(940,124)


(1,070,994)

Retained earnings

2,745,934


2,629,293

Accumulated other comprehensive income (loss)

288,292


(74,542)

Total shareholders' equity

2,921,492


2,169,888

Total liabilities and shareholders' equity

$ 12,652,636


$ 7,931,866

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)



Three months ended January 31, 2018


Americas⁽¹⁾


Europe⁽¹⁾


APAC⁽¹⁾


Stock
Compensation
Expense


Consolidated

Net Sales

$ 4,291,488


$ 6,463,007


$ 338,034




$ 11,092,529

GAAP operating income⁽¹⁾

$ 53,924


$ 100,439


$ 5,704


$ (8,164)


$ 151,903

Acquisition, integration and restructuring expenses

16,990


15,807


322


1,222


34,341

Acquisition-related intangible assets amortization expense

13,664


6,434


1,431




21,529

Value added tax assessments

494


1,158






1,652

Tax indemnifications



6,526






6,526

Total non-GAAP operating income adjustments

$ 31,148


$ 29,925


$ 1,753


$ 1,222


$ 64,048

Non-GAAP operating income

$ 85,072


$ 130,364


$ 7,457


$ (6,942)


$ 215,951

GAAP operating margin

1.26%


1.55%


1.69%




1.37%

Non-GAAP operating margin

1.98%


2.02%


2.21%




1.95%

⁽¹⁾ GAAP operating income does not include stock compensation expense at the regional level.

 

 


Three months ended January 31, 2017


Americas⁽¹⁾


Europe⁽¹⁾



Stock
Compensation
Expense


Consolidated

Net Sales

$ 2,707,286


$ 4,720,224





$ 7,427,510

GAAP operating income⁽¹⁾

$ 39,316


$ 66,728



$ (2,927)


$ 103,117

Acquisition, integration and restructuring expenses

7,496


6,473





13,969

Acquisition-related intangible assets amortization expense

580


4,483





5,063

Total non-GAAP operating income adjustments

$ 8,076


$ 10,956





$ 19,032

Non-GAAP operating income

$ 47,392


$ 77,684



$ (2,927)


$ 122,149

GAAP operating margin

1.45%


1.41%





1.39%

Non-GAAP operating margin

1.75%


1.65%





1.64%

⁽¹⁾ GAAP operating income does not include stock compensation expense at the regional level.

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)



Year ended January 31, 2018


Americas⁽¹⁾


Europe⁽¹⁾


APAC⁽¹⁾


Stock
Compensation
Expense


Consolidated

Net Sales

$ 15,949,959


$ 19,713,942


$ 1,111,110




$ 36,775,011

GAAP operating income⁽¹⁾

$ 248,350


$ 173,611


$ 17,499


$ (29,381)


$ 410,079

Acquisition, integration and restructuring expenses

75,563


56,192


753


3,764


136,272

Acquisition-related intangible assets amortization expense

51,994


32,509


5,015




89,518

LCD settlements and other, net

(42,659)


1,316


-




(41,343)

Value added tax assessments

494


1,158


-




1,652

Tax indemnifications



6,526


-




6,526

Total non-GAAP operating income adjustments

$ 85,392


$ 97,701


$ 5,768


$ 3,764


$ 192,625

Non-GAAP operating income

$ 333,742


$ 271,312


$ 23,267


$ (25,617)


$ 602,704

GAAP operating margin

1.56%


0.88%


1.57%




1.12%

Non-GAAP operating margin

2.09%


1.38%


2.09%




1.64%

⁽¹⁾ GAAP operating income does not include stock compensation expense at the regional level.

 

 


Year ended January 31, 2017


Americas⁽¹⁾


Europe⁽¹⁾



Stock
Compensation
Expense


Consolidated

Net Sales

$ 10,384,523


$ 15,850,353





$ 26,234,876

GAAP operating income⁽¹⁾

$ 144,246


$ 161,603



$ (13,947)


$ 291,902

Acquisition, integration and restructuring expenses

17,998


10,968





28,966

Acquisition-related intangible assets amortization expense

2,320


18,839





21,159

LCD settlements and other, net

(4,142)


-





(4,142)

Value added tax assessments

(407)


1,456





1,049

Total non-GAAP operating income adjustments

$ 15,769


$ 31,263



$ -


$ 47,032

Non-GAAP operating income

$ 160,015


$ 192,866



$ (13,947)


$ 338,934

GAAP operating margin

1.39%


1.02%





1.11%

Non-GAAP operating margin

1.54%


1.22%





1.29%

⁽¹⁾ GAAP operating income does not include stock compensation expense at the regional level.

 

 

Selling, general and administrative expenses ("SG&A")

Three months ended January 31,

2018


2017

Net Sales

$ 11,092,529


$ 7,427,510

GAAP SG&A

428,965


253,941

Tax indemnifications

(6,526)


-

Acquisition-related intangible assets amortization expense

(21,529)


(5,063)

Non-GAAP SG&A

$ 400,910


$ 248,878





GAAP SG&A percentage of net sales

3.87%


3.42%

Non- GAAP SG&A percentage of net sales

3.61%


3.35%










Year ended January 31,


2018


2017

Net Sales

$ 36,775,011


$ 26,234,876

GAAP SG&A

1,608,961


984,152

Tax indemnifications

(6,526)


-

Acquisition-related intangible assets amortization expense

(89,518)


(21,159)

Non-GAAP SG&A

$ 1,512,917


$ 962,993





GAAP SG&A percentage of net sales

4.38%


3.75%

Non- GAAP SG&A percentage of net sales

4.11%


3.67%

 

 


Three months ended January 31,


2018


2017


Net Income

Diluted EPS


Net Income

Diluted EPS

GAAP Results

$1,260

$0.03


$78,822

$2.22

Acquisition, integration and restructuring expenses

34,341

0.89


13,969

0.39

Acquisition-related intangible assets amortization expense

21,529

0.56


5,063

0.14

Acquisition-related financing expenses

-

-


8,476

0.24

Value added tax assessments and related interest expense

2,568

0.07


-

-

Tax indemnifications

6,526

0.17


-

-

Income tax effect of tax indemnifications

(6,526)

(0.17)


-

-

Income tax effect of other adjustments above

(21,565)

(0.56)


(6,864)

(0.19)

Change in deferred tax valuation allowances

1,224

0.03


(12,455)

(0.35)

Impact of US tax reform

95,369

2.48


-

-

Non-GAAP results

$134,726

$3.50


$87,011

$2.45








Year ended January 31,


2018


2017


Net Income

Diluted EPS


Net Income

Diluted EPS

GAAP Results

$116,641

$3.05


$195,095

$5.51

Acquisition, integration and restructuring expenses

136,272

3.57


28,966

0.82

Acquisition-related intangible assets amortization expense

89,518

2.34


21,159

0.60

LCD settlements and other, net

(41,020)

(1.07)


(4,142)

(0.12)

Value added tax assessments and related interest expense

2,568

0.06


1,386

0.04

Acquisition-related financing expenses

8,807

0.23


11,890

0.33

Tax indemnifications

6,526

0.17


-

-

Income tax effect of tax indemnifications

(6,526)

(0.17)


-

-

Income tax effect of other adjustments above

(61,113)

(1.60)


(16,652)

(0.47)

Change in deferred tax valuation allowances

1,224

0.03


(12,455)

(0.35)

Impact of US tax reform

95,369

2.50


-

-

Non-GAAP results

$348,266

$9.11


$225,247

$6.36

 

 

Return on Invested Capital (ROIC)



Twelve months ended January 31,

TTM Net Operating Profit After Tax (NOPAT)*:

2018


2017

Operating income

$ 410,079


$ 291,902

Income taxes on operating income⁽¹⁾

(250,151)


(70,106)

NOPAT

$ 159,928


$ 221,796





Average Invested Capital:




Short-term debt (5-qtr average)

$ 314,154


$ 157,496

Long-term debt (5-qtr average)

1,580,778


407,275

Shareholders' Equity (5-qtr average)

2,605,736


2,102,222

Total average capital

4,500,668


2,666,993

Less: Cash (5-qtr average)

(1,107,734)


(974,221)

Average invested capital less average cash

$ 3,392,934


$ 1,692,772

ROIC

5%


13%





* Trailing Twelve Months is abbreviated as TTM.




⁽¹⁾ Income taxes on operating income was calculated using the trailing 12 months effective tax rate during the respective periods.

 

 

Adjusted Return on Invested Capital (ROIC)



Twelve months ended January 31,

TTM Net Operating Profit After Tax (NOPAT), as adjusted *:

2018


2017

Non-GAAP operating income⁽¹⁾

$ 602,704


$ 338,934

Income taxes on non-GAAP operating income⁽²⁾

(184,370)


(97,354)

NOPAT, as adjusted

$ 418,334


$ 241,580





Average Invested Capital, as adjusted:




Short-term debt (5-qtr average)

$ 314,154


$ 157,496

Long-term debt (5-qtr average)

1,580,778


407,275

Shareholders' Equity (5-qtr average)

2,605,736


2,102,222

Tax effected impact of non-GAAP adjustments⁽³⁾

94,193


1,157

Total average capital, as adjusted

4,594,861


2,668,150

Less: Cash (5-qtr average)

(1,107,734)


(974,221)

Average invested capital less average cash

$ 3,487,127


$ 1,693,929

Adjusted ROIC

12%


14%





* Trailing Twelve Months is abbreviated as TTM.




⁽¹⁾ Represents operating income as adjusted to exclude acquisition, integration and restructuring expenses, LCD settlements and other, net, value added tax assessments and acquisition-related intangible assets amortization expense

⁽²⁾ Income taxes on non-GAAP operating income was calculated using the trailing 12 months effective tax rate adjusted for the impact of non-GAAP adjustments during the respective periods.

⁽³⁾ Represents the 5 quarter average of the year-to-date impact of non-GAAP adjustments.

 

 

Guidance Reconciliation



Three months ending April 30, 2018


Low end of
guidance range


High end of
guidance range

Earnings per share - diluted

$0.37


$0.67

Acquisition, integration and restructuring expenses

0.62


0.62

Acquisition-related intangible assets amortization expense

0.61


0.61

Income tax effect of the above adjustments

(0.30)


(0.30)

Non-GAAP earnings per share - diluted

$1.30


$1.60

 

Kérdezze szakértőinket

Sarolta Pataky

Marketing Specialist

sarolta.pataky2@techdata.com

2018 - Microsite
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