ScanSource Inc (NAS:SCSC)
$ 44.61 0.42 (0.95%) Market Cap: 1.07 Bil Enterprise Value: 1.03 Bil PE Ratio: 14.63 PB Ratio: 1.17 GF Score: 72/100

Q4 2024 Scansource Inc Earnings Call Transcript

Aug 27, 2024 / 02:30PM GMT
Release Date Price: $47.9 (-2.07%)

Key Points

Positve
  • ScanSource Inc (SCSC) is seeing accelerated adoption of its hybrid distribution strategy, which is expected to drive more demand.
  • The company hosted 800 attendees at its Partner First Conference, encouraging sales partners to embrace new growth opportunities.
  • ScanSource Inc (SCSC) announced two high-margin, recurring revenue acquisitions that are working capital light.
  • The company delivered strong gross profit margins, adjusted EBITDA margins, and free cash flow of $53 million for the quarter.
  • Intelisys net sales grew 6% year-on-year, with Q4 end-user billings increasing 9% year-on-year.
Negative
  • Net sales in the specialty technology solutions segment declined 14% year-on-year, while gross profit declined 10% year-on-year.
  • Net sales in the modern communications & cloud segment declined 32% year-on-year.
  • GAAP and non-GAAP net income declined 12.5% and 20.5%, respectively, for FY24.
  • The company expects the challenging demand environment to continue in the near term, particularly in the first half of FY25.
  • Free cash flow for FY25 is expected to be significantly lower at $70 million compared to $363 million in FY24.
Operator

Welcome to the ScanSource Quarterly Earnings Conference Call. (Operator Instructions) This call is being recorded. If anyone has objections, you may disconnect at this time.

I'd now like to turn the call over to Mary Gentry, Senior Vice President, Treasurer, Investor Relations. Ma'am, you may begin.

Mary Gentry
Scansource Inc - Senior Vice President, Treasurer and Investor Relations

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. We will review our operating results for the quarter and the year and then take your questions. We 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 include the factors identified

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