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SYNNEX Corporation Reports Fiscal 2017 Fourth Quarter and Full Year Results
[January 09, 2018]

SYNNEX Corporation Reports Fiscal 2017 Fourth Quarter and Full Year Results


FREMONT, Calif., Jan. 9, 2018 /PRNewswire/ -- 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, 2017.




Q4 FY17

Q4 FY16

Net change

Revenue ($M)

$5,312

$3,887

36.7%

Operating income ($M)

$159.9

$130.6

22.4%

Non-GAAP operating income ($M)(1)

$192.9

$156.1

23.6%

Operating margin

3.01%

3.36%

(35) bps

Non-GAAP operating margin(1)

3.63%

4.02%

(39) bps

Net income attributable to SYNNEX Corporation ($M)

$91.1

$85.3

6.7%

Non-GAAP net income attributable to SYNNEX Corporation ($M)(1)

$112.4

$102.9

9.2%

Diluted EPS

$2.26

$2.13

6.1%

Non-GAAP Diluted EPS(1)

$2.79

$2.57

8.6%


(1) Non-GAAP financial measures exclude the impact of acquisition-related 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 record financial performance continued in the fourth quarter, driven by strong demand in both segments.  The organic investments and strategic acquisitions we made throughout 2017 enhanced our capabilities and offerings and enabled us to grow market share," said Kevin Murai, President and Chief Executive Officer.

Fiscal 2017 Fourth Quarter Highlights:

  • Technology Solutions: Revenue was $4.8 billion, up 41.0% from the prior fiscal year quarter. Adjusting for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 22.0% over the prior year. Technology Solutions generated operating income of $112.2 million, or 2.35% of segment revenue, compared to $92.6 million, or 2.73% of segment revenue, in the fiscal fourth quarter of 2016. Non-GAAP operating income was $128.2 million, or 2.68% of segment revenue, in the fiscal fourth quarter of 2017, compared to $93.3 million, or 2.75% of segment revenue, in the fiscal fourth quarter of 2016.
  • Concentrix: Revenue was $534.4 million, an increase of 6.8% over the fiscal fourth quarter of the prior year. Adjusting for the translation effect of foreign currencies, Concentrix revenue increased by 5.8% over the prior year. Operating income was $47.6 million, or 8.91% of segment revenue, compared to $38.0 million, or 7.60% of segment revenue in the prior fiscal year quarter. Non-GAAP operating income was $64.7 million, or 12.11% of segment revenue, in the fiscal fourth quarter of 2017, compared to $62.8 million, or 12.55% of segment revenue, in the fiscal fourth quarter of 2016.
  • The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 10.3% consistent with the prior fiscal year fourth quarter. The adjusted trailing fiscal four quarters ROIC was 11.3%.
  • The debt to capitalization ratio was 45.9%, up from 32.7% in the prior fiscal year fourth quarter, primarily as a result of the Westcon-Comstor acquisition.
  • Depreciation and amortization were $21.6 million and $29.9 million, respectively.
  • Cash generated from operations was approximately $250 million for the quarter.

 


FY17

FY16

Net change

Revenue ($M)

$17,046

$14,062

21.2%

Operating income ($M)

$509.0

$379.6

34.1%

Non-GAAP operating income ($M)(1)

$592.9

$449.7

31.8%

Operating margin

2.99%

2.70%

29 bps

Non-GAAP operating margin(1)

3.48%

3.20%

28 bps

Net income attributable to SYNNEX Corporation ($M)

$301.2

$234.9

28.2%

Non-GAAP net income attributable to SYNNEX Corporation ($M)(1)

$355.6

$281.2

26.4%

Diluted EPS

$7.51

$5.88

27.7%

Non-GAAP Diluted EPS(1)

$8.86

$7.04

25.9%


(1) Non-GAAP financial measures exclude the impact of acquisition-related 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 2017 Highlights:

  • Technology Solutions: Revenue was $15.1 billion, up 20.7% from the prior fiscal year. Adjusting for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 15.5% over the prior fiscal year. Technology Solutions operating income was $394.3 million, or 2.62% of segment revenue compared to $315.5 million, or 2.53% of segment revenue, in fiscal 2016. Non-GAAP operating income was $413.0 million, or 2.74% of segment revenue, in fiscal 2017, compared to $318.1 million, or 2.55% of segment revenue, in fiscal 2016.
  • Concentrix: Revenue was $2.0 billion, an increase of 25.3% over the prior fiscal year. Adjusting for the translation effect of foreign currencies, Concentrix revenue grew 25.5% over the prior fiscal year. Operating income was $114.6 million, or 5.76% of segment revenue, compared to $63.9 million, or 4.02% of segment revenue in the prior fiscal year. Non-GAAP operating income was $179.9 million, or 9.04% of segment revenue, in fiscal 2017, compared to $131.4 million, or 8.27% of segment revenue, in fiscal 2016.
  • Depreciation and amortization were $80.7 million and $79.2 million, respectively.
  • Cash generated from operations was approximately $170 million for the year.

Fiscal 2018 First Quarter Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2018 first quarter. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangibles and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

  • Revenue is expected to be in the range of $4.35 billion to $4.55 billion.
  • Net income is expected to be in the range of $64.0 million to $67.8 million and on a Non-GAAP basis, net income is expected to be in the range of $83.2 million to $87.0 million.
  • Diluted earnings per share is expected to be in the range of $1.58 to $1.68 and on a Non-GAAP basis, diluted earnings per share is expected to be in the range of $2.06 to $2.15.
  • After-tax amortization of intangibles is expected to be $19.2 million, or $0.48 per share.
  • The tax rate is expected to be in the range of 30% to 31%.

Dividend Announcement

SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.35 per common share. The dividend is payable on January 31, 2018 to stockholders of record as of the close of business on January 19, 2018. The SYNNEX Board of Directors will assess the dividend on an annual basis each January. In addition to the increased dividend, SYNNEX expects that the anticipated benefit associated with the 2017 US tax reform law will be utilized for business investment and debt reduction.

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 (800) 369-1162 in North America or (415) 228-5007 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) is a Fortune 500 corporation and a leading business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy to a broad range of enterprises.  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 numerous countries throughout North and South America, Asia-Pacific and Europe.  Additional information about SYNNEX may be found online at www.synnex.com.

Use of Non-GAAP Financial Information

In addition to the financial results presented in accordance with GAAP, SYNNEX also 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, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude acquisition-related and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.

Additionally, 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 the transaction currency using the comparable prior year periods' currency conversion rate. 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 borrowings (excluding book overdraft) and equity, net of cash and cash equivalents in the United States. Adjusted ROIC is calculated by excluding the tax effected impact of acquisition-related and integration expenses, restructuring costs and the amortization of intangibles from operating income and equity.

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. 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, as well as for planning and forecasting in future periods. Management believes these 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. As 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. A reconciliation of SYNNEX' non-GAAP financial information to GAAP is set forth in the supplemental information section 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 2018 first quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, tax rate, after-tax amortization of intangibles and acquisition-related and integration expenses, currency impact, the frequency and occurrence of dividend declarations and assessments, the anticipated benefits of recent acquisitions, and the anticipated benefits of the non-GAAP financial measures, and anticipated tax savings due to the 2017 US tax reform law and use for dividends, business investment and debt reduction, 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, 2016 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 2018 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, and CONCENTRIX 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,
2017


November 30,
2016

ASSETS




Current assets:




Cash and cash equivalents

$

550,688



$

380,717


Restricted cash

5,837



6,265


Short-term investments

5,475



5,109


Accounts receivable, net

2,846,371



1,756,494


Receivable from related parties

77



102


Inventories

2,162,626



1,741,734


Other current assets

168,704



104,609


Total current assets

5,739,778



3,995,030


Property and equipment, net

346,589



312,716


Goodwill

872,641



486,239


Intangible assets, net

583,051



298,550


Deferred tax assets

31,687



58,564


Other assets

124,780



64,182


Total assets

$

7,698,526



$

5,215,281






LIABILITIES AND EQUITY




Current liabilities:




Borrowings, current

$

805,471



$

362,889


Accounts payable

2,626,720



1,683,155


Payable to related parties

16,888



30,679


Accrued compensation and benefits

204,665



165,585


Other accrued liabilities

354,104



217,127


Income taxes payable

33,359



17,097


Total current liabilities

4,041,207



2,476,532


Long-term borrowings

1,136,089



601,095


Other long-term liabilities

124,008



103,217


Deferred tax liabilities

113,527



58,639


Total liabilities

5,414,831



3,239,483


SYNNEX Corporation stockholders' equity:




Preferred stock




Common stock

41



41


Additional paid-in capital

467,948



440,713


Treasury stock

(77,133)



(67,262)


Accumulated other comprehensive income (loss)

(61,919)



(93,116)


Retained earnings

1,954,758



1,695,400


Total SYNNEX Corporation stockholders' equity

2,283,695



1,975,776


Noncontrolling interest



22


Total equity

2,283,695



1,975,798


Total liabilities and equity

$

7,698,526



$

5,215,281


 

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,
2017


November 30,
2016


November 30,
2017


November 30,
2016

Revenue:








Products

$

4,781,408



$

3,390,665



$

15,070,871



$

12,490,427


Services

530,469



496,237



1,974,829



1,571,410


Total revenue

5,311,877



3,886,902



17,045,700



14,061,837


Cost of revenue:








Products

(4,525,904)



(3,206,961)



(14,262,094)



(11,815,479)


Services

(324,005)



(301,155)



(1,232,666)



(963,393)


Gross profit

461,968



378,786



1,550,940



1,282,965


Selling, general and administrative expenses

(302,108)



(248,144)



(1,041,975)



(903,369)


Operating income

159,860



130,642



508,965



379,596


Interest expense and finance charges, net

(18,459)



(8,748)



(45,357)



(28,993)


Other income (expense), net

(202)



856



1,123



5,461


Income before income taxes

141,199



122,750



464,731



356,064


Provision for income taxes

(50,126)



(37,440)



(163,558)



(121,059)


Net income

91,073



85,310



301,173



235,005


Net (income) loss attributable to noncontrolling interest



8





(59)


Net income attributable to SYNNEX Corporation

$

91,073



$

85,318



$

301,173



$

234,946


Earnings attributable to SYNNEX Corporation per common share:








Basic

$

2.28



$

2.14



$

7.54



$

5.91


Diluted

$

2.26



$

2.13



$

7.51



$

5.88


Weighted-average common shares outstanding:








Basic

39,635



39,431



39,556



39,321


Diluted

39,867



39,647



39,758



39,530


Cash dividends declared per share

$

0.30



$

0.25



$

1.05



$

0.85


 

SYNNEX Corporation

Segment Information

(currency in thousands)

(unaudited)



Three Months Ended


Fiscal Year Ended


November 30,
2017


November 30,
2016


November 30,
2017


November 30,
2016

Revenue:








  Technology Solutions

$

4,781,491



$

3,390,749



$

15,071,185



$

12,490,718


  Concentrix

534,363



500,404



1,990,180



1,587,736


  Inter-segment elimination

(3,977)



(4,251)



(15,665)



(16,617)


  Consolidated

$

5,311,877



$

3,886,902



$

17,045,700



$

14,061,837










Operating income:








  Technology Solutions

$

112,226



$

92,589



$

394,320



$

315,485


  Concentrix

47,634



38,022



114,623



63,877


  Inter-segment elimination



31



22



234


  Consolidated

$

159,860



$

130,642



$

508,965



$

379,596


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)



Three Months Ended


Fiscal Year Ended


November 30,
2017


November 30,
2016


November 30,
2017


November 30,
2016

Revenue in Constant Currency








Consolidated








Revenue

$

5,311,877



$

3,886,902



$

17,045,700



$

14,061,837


Foreign currency translation

(13,906)





(4,609)




Revenue in constant currency

$

5,297,971



$

3,886,902



$

17,041,091



$

14,061,837










Technology Solutions








Segment revenue

$

4,781,491



$

3,390,749



$

15,071,185



$

12,490,718


Foreign currency translation

(8,893)





(6,588)




Revenue in constant currency

$

4,772,598



$

3,390,749



$

15,064,597



$

12,490,718










Concentrix








Segment revenue

$

534,363



$

500,404



$

1,990,180



$

1,587,736


Foreign currency translation

(5,013)





1,979




Revenue in constant currency

$

529,350



$

500,404



$

1,992,159



$

1,587,736





Three Months Ended


Fiscal Year Ended


November 30,
2017


November 30,
2016


November 30,
2017


November 30,
2016

Selling, general and administrative expenses








Consolidated








GAAP selling, general and administrative expenses

$

302,108



$

248,144



$

1,041,975



$

903,369


Acquisition-related and integration expenses

3,144



6,465



4,781



10,393


Restructuring costs







4,255


Amortization of intangibles

29,516



18,504



77,500



54,250


Adjusted selling, general and administrative expenses

$

269,448



$

223,175



$

959,694



$

834,471










Technology Solutions








GAAP selling, general and administrative expenses

$

143,356



$

91,200



$

414,763



$

359,754


Acquisition-related and integration expenses

3,019





3,724




Amortization of intangibles

12,968



670



14,929



2,657


Adjusted selling, general and administrative expenses

$

127,369



$

90,530



$

396,110



$

357,097










Concentrix








GAAP selling, general and administrative expenses

$

160,398



$

159,007



$

634,530



$

551,570


Acquisition-related and integration expenses

125



6,465



1,057



10,393


Restructuring costs







4,255


Amortization of intangibles

16,548



17,834



62,571



51,593


Adjusted selling, general and administrative expenses

$

143,725



$

134,708



$

570,902



$

485,329


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

(continued)



Three Months Ended


Fiscal Year Ended


November 30,
2017


November 30,
2016


November 30,
2017


November 30,
2016

Operating income and Operating margin








Consolidated








Revenue

$

5,311,877



$

3,886,902



$

17,045,700



$

14,061,837










GAAP operating income

$

159,860



$

130,642



$

508,965



$

379,596


Acquisition-related and integration expenses

3,144



6,465



4,781



10,393


Restructuring costs







4,255


Amortization of intangibles

29,937



18,981



79,181



55,490


Non-GAAP operating income

$

192,941



$

156,088



$

592,927



$

449,734


Depreciation

21,647



19,254



80,705



65,803


Adjusted EBITDA

$

214,588



$

175,342



$

673,632



$

515,537










GAAP operating margin

3.01

%


3.36

%


2.99

%


2.70

%

Non-GAAP operating margin

3.63

%


4.02

%


3.48

%


3.20

%









Technology Solutions








Segment revenue

$

4,781,491



$

3,390,749



$

15,071,185



$

12,490,718










GAAP operating income

$

112,226



$

92,589



$

394,320



$

315,485


Acquisition-related and integration expenses

3,019





3,724




Amortization of intangibles

12,968



670



14,929



2,657


Non-GAAP operating income

$

128,213



$

93,259



$

412,973



$

318,142


Depreciation

4,703



3,489



15,111



13,935


Adjusted EBITDA

$

132,916



$

96,748



$

428,084



$

332,077










GAAP operating margin

2.35

%


2.73

%


2.62

%


2.53

%

Non-GAAP operating margin

2.68

%


2.75

%


2.74

%


2.55

%









Concentrix








Segment revenue

$

534,363



$

500,404



$

1,990,180



$

1,587,736










GAAP operating income

$

47,634



$

38,022



$

114,623



$

63,877


Acquisition-related and integration expenses

125



6,465



1,057



10,393


Restructuring costs







4,255


Amortization of intangibles

16,969



18,311



64,252



52,833


Non-GAAP operating income

$

64,728



$

62,798



$

179,932



$

131,358


Depreciation

16,944



15,796



65,617



52,102


Adjusted EBITDA

$

81,672



$

78,594



$

245,549



$

183,460










GAAP operating margin

8.91

%


7.60

%


5.76

%


4.02

%

Non-GAAP operating margin

12.11

%


12.55

%


9.04

%


8.27

%

 

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,
2017


November 30,
2016


November 30,
2017


November 30,
2016

Net income








Net income attributable to SYNNEX Corporation

$

91,073



$

85,318



$

301,173



$

234,946


Acquisition-related and integration expenses

3,144



6,465



4,781



10,393


Restructuring costs







4,255


Amortization of intangibles

29,937



18,981



79,181



55,490


Income taxes related to the above(1)

(11,711)



(7,829)



(29,550)



(23,846)


Non-GAAP net income attributable to SYNNEX Corporation

$

112,443



$

102,935



$

355,585



$

281,238










Diluted earnings per common share ("EPS")(2)








Net income attributable to SYNNEX Corporation

$

91,073



$

85,318



$

301,173



$

234,946


Less: net income allocated to participating securities

(836)



(834)



(2,778)



(2,408)


Net income attributable to SYNNEX Corporation common stockholders

90,237



84,484



298,395



232,538


Acquisition-related and integration expenses attributable to SYNNEX Corporation common stockholders

3,115



6,405



4,737



10,297


Restructuring costs attributable to SYNNEX Corporation common stockholders







4,217


Amortization of intangibles attributable to SYNNEX Corporation common stockholders

29,661



18,787



78,448



54,891


Income taxes related to the above attributable to SYNNEX Corporation common stockholders(1)

(11,603)



(7,749)



(29,277)



(23,590)


Non-GAAP net income attributable to SYNNEX Corporation common stockholders

$

111,410



$

101,927



$

352,303



$

278,353










Weighted-average number of common shares - diluted:

39,867



39,647



39,758



39,530










Diluted EPS(2)

$

2.26



$

2.13



$

7.51



$

5.88


Acquisition-related and integration expenses

0.08



0.16



0.12



0.26


Restructuring costs







0.11


Amortization of intangibles

0.74



0.47



1.97



1.39


Income taxes related to the above(1)

(0.29)



(0.20)



(0.74)



(0.60)


Non-GAAP Diluted EPS(3)

$

2.79



$

2.57



$

8.86



$

7.04


 

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, 2018


Low


High

Net income




Net income attributable to SYNNEX Corporation

$

64.0



$

67.8


Amortization of intangibles

27.7



27.7


Income taxes related to the above(1)

(8.5)



(8.5)


Non-GAAP net income attributable to SYNNEX Corporation

$

83.2



$

87.0






Diluted EPS(2)

$

1.58



$

1.68


Amortization of intangibles

0.69



0.69


Income taxes related to the above(1)

(0.21)



(0.21)


Non-GAAP Diluted EPS(3)

$

2.06



$

2.15



(1) The tax effect of the non-GAAP adjustments was calculated using the effective year-to-date tax rate during the respective periods.


(2) Diluted EPS for all periods presented is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities.  For purposes of calculating Diluted EPS, Net income allocated to participating securities was approximately 0.9% of the Net income attributable to SYNNEX Corporation for both the three months and the year ended November 30, 2017, and approximately 1.0% for both the three months and the year ended November 30, 2016. Net income allocated to participating securities is approximately 0.9% of the Net income attributable to SYNNEX Corporation for the three months ending February 28, 2018.


(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, 2017


November 30, 2016

ROIC




Operating income (Trailing fiscal four quarters)

$

508,965



$

379,596


Income taxes on operating income(1)

(179,105)



(129,042)


Operating income after taxes

329,860



250,554






Total borrowings, excluding book overdraft (last five quarters average)

$

1,208,330



$

780,972


Total equity (last five quarters average)

2,126,159



1,879,777


Less: U.S. cash and cash equivalents (last five quarters average)

(132,881)



(229,940)


Total invested capital

3,201,608



2,430,809






ROIC

10.3

%


10.3

%





Adjusted ROIC




Non-GAAP operating income (Trailing fiscal four quarters)

$

592,927



$

449,734


Income taxes on Non-GAAP operating income(1)

(208,652)



(152,846)


Non-GAAP operating income after taxes

384,275



296,888






Total invested capital

$

3,201,608



$

2,430,809


Tax effected impact of cumulative non-GAAP adjustments (last five quarters average)

208,615



158,550


Total Non-GAAP invested capital

3,410,223



2,589,358






Adjusted ROIC

11.3

%


11.5

%


(1) Income taxes on GAAP and non-GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods.



Debt to Capitalization




November 30, 2017


November 30, 2016

Total borrowings, excluding book overdraft

(a)

$

1,937,253



$

960,602


Total equity

(b)

2,283,695



1,975,798


Debt to capitalization

(a)/((a)+(b))

45.9

%


32.7

%

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

(continued)


Cash Conversion Cycle




Three Months Ended



November 30, 2017


November 30, 2016

Days sales outstanding





Revenue (products and services)

(a)

$

5,311,877



$

3,886,902


Accounts receivable, including receivable from related parties

(b)

2,846,448



1,756,596


Days sales outstanding

(c) = (b)/((a)/the number of days during the period)

49



41







Days inventory outstanding





Cost of revenue (products and services)

(d)

$

4,849,909



$

3,508,116


Inventories

(e)

2,162,626



1,741,734


Days inventory outstanding

(f) = (e)/((d)/the number of days during the period)

41



45







Days payable outstanding





Cost of revenue (products and services)

(g)

$

4,849,909



$

3,508,116


Accounts payable, including payable to related parties

(h)

2,643,608



1,713,834


Days payable outstanding

(i) = (h)/((g)/the number of days during the period)

50



44







Cash conversion cycle

(j) = (c)+(f)-(i)

40



42


 

Cision View original content:http://www.prnewswire.com/news-releases/synnex-corporation-reports-fiscal-2017-fourth-quarter-and-full-year-results-300580299.html

SOURCE SYNNEX Corporation


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