Q3 2024 Scansource Inc Earnings Call Transcript
Key Points
- ScanSource Inc (SCSC) reported strong free cash flow of $158 million during the quarter.
- The company achieved a robust gross profit margin of 12.6%, benefiting from a higher mix of recurring revenues.
- Intelisys, a part of ScanSource Inc (SCSC), saw a year-over-year growth of 4%, with end user billings increasing by 7%.
- Despite a challenging environment, the company managed to maintain strong gross profit and adjusted EBITDA margins.
- ScanSource Inc (SCSC) announced a new share repurchase authorization of $100 million, reflecting confidence in the business's long-term free cash flow generation.
- Net sales declined by 15% year-over-year, with a significant drop in revenue from networking products, including Cisco networking.
- The company experienced softer demand across its technology portfolios, leading to lower-than-expected sales.
- ScanSource Inc (SCSC) faced challenges in forecasting due to macro uncertainty and the normalization of supply and demand.
- The gross profits in the Specialty Technology Solutions segment declined by 22% year-over-year.
- There was a slight increase in days sales outstanding (DSO) to 71 days, reflecting sales timing issues at the quarter's end.
Welcome to the ScanSource Quarterly Earnings Conference Call. (Operator Instructions) Today's call is being recorded. If anyone has any objections, you may now disconnect. I would like to turn the call over to Mary Gentry, Senior Vice President, Treasurer, Investor Relations. Ma'am, you may begin.
Good morning and thank you for joining us. Our call will include prepared remarks from Mike Baur, our Chair and CEO; and Steve Jones, our Chief Financial Officer. Tony Sorrentino, our President for Specialty Technology, is also joining us. We will review our operating results for the quarter and then take your questions. We've posted an earnings infographic that accompanies our comments and webcast in the Investor Relations section of our website.
As you know, certain statements in our press release, infographic and on this call are forward-looking statements and subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties
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