EX-99.2 3 scscinfographic_q4fy23.htm EX-99.2 scscinfographic_q4fy23
Fiscal Fourth Quarter and Full Year 2023 Earnings As we enter our new fiscal year, strong free cash flow and focus on Intelisys are keys for our success. Now that the supply chain challenges are behind us, we are normalizing our working capital to meet our margin expectations and market demand.” Mike Baur Chairman and CEO, ScanSource, Inc. Key Highlights FY23 Net Sales and Gross Profit Opportunity with Hybrid Distribution Remains Compelling Navigated Well through Q4 Cyberattack Net Sales +7% Y/Y $3.8B Achieved Strategic Plan for FY23 © ScanSource 2022 Consolidated Specialty Technology Solutions Segment Gross Profit +5% Y/Y $449M, 11.9% margin Modern Communications & Cloud Segment STS, Net Sales +12% Y/Y $2.3B MC&C, Net Sales +1% Y/Y $1.5B STS, Gross Profit +9% Y/Y $224M, 9.6% margin MC&C, Gross Profit +2% Y/Y $225M, 15.4% margin Exhibit 99.2


 
* Non‐GAAP measure; adjusted 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 fourth quarter fiscal year 2024 news release issued  on August 22, 2023, which accompanies this presentation and is available at www.scansource.com in the Investor  Relations section. Operating Metrics Focused Execution of Value Creation Strategy Reiterating Mid-Term Goals Mid-term: 3-to-4-year time frame Fiscal Year 2024 Annual Outlook as of August 22, 2023 $0.68 per share Q4 -13% Y/Y $3.47 per share FY23 +1% Y/Y GAAP Diluted EPS $40.2M Q4 +4% Y/Y $179.9M FY23 +8% Y/Y Adjusted EBITDA* FY23 all-time Company record $(15)M Q4 $(36)M FY23 Operating Cash Flow 12.9% Q4 14.6% FY23 Adjusted ROIC* $16M share repurchases in FY23 4.24% Q4 4.75% FY23 Adjusted EBITDA Margin © ScanSource 2022 2 A repositioned company – Innovative hybrid distributor Attractive financial profile Delivering long-term sustainable growth Differentiated market position Building on specialized technologies $0.76 per share Q4 -16% Y/Y $3.85 per share FY23 -3% Y/Y Non-GAAP Diluted EPS* Net Sales Growth At least 3% Adjusted EBITDA At least $180 million Free Cash Flow At least $150 million Net Sales Growth per year Adjusted EBITDA Margin Adjusted ROIC Recurring Revenue as % of Gross Profits 5%-7.5% 4.5%-5% Mid Teens Building to 30%+


 
Forward-Looking Statements This Earnings Infographic and supporting materials contain certain comments that are “forward- looking” statements, including statements about our FY24 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 following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation and supply chain challenges, the failure to manage and implement our organic growth strategy, credit risks involving our larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting our international operations, economic weakness and inflation, risk to our business from a cyberattack, a failure of our IT systems, failure to hire and retain quality employees, loss of our major customers, relationships with our key suppliers and customers or a termination or a modification of the terms under which we operate with these key suppliers and customers, 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, 2023 filed with the Securities and Exchange Commission. 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 SG&A expenses, adjusted EBITDA, adjusted EBITDA margin, net debt, adjusted ROIC, free cash flow 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) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q/Q Y/Y Select reported GAAP measures: Net sales $ 947,149 $ 885,519 $ 1,011,241 $ 943,813 $ 962,283 7% (2)% Gross profit $ 108,659 $ 111,762 $ 115,334 $ 113,485 $ 110,792 (3)% (2)% Gross profit margin % 11.5 % 12.6 % 11.4 % 12.0 % 11.5 % (115) bp (4) bp SG&A expenses $ 74,358 $ 70,669 $ 69,074 $ 71,593 $ 75,905 5% (2)% Operating income $ 27,289 $ 34,279 $ 39,432 $ 34,888 $ 27,424 (20)% —% Operating income margin % 2.88 % 3.87 % 3.90 % 3.70 % 2.85 % (99) bp 3 bp Net income $ 17,095 $ 21,221 $ 25,734 $ 24,042 $ 19,947 (19)% (14)% Diluted EPS $ 0.68 $ 0.83 $ 1.01 $ 0.94 $ 0.78 (18)% (13)% Select reported Non-GAAP measures: (a) Non-GAAP operating income $ 32,806 $ 38,449 $ 40,724 $ 39,129 $ 31,864 (15)% 3% Non-GAAP operating income margin % 3.46 % 4.34 % 4.03 % 4.15 % 3.31 % (88) bp 15 bp Non-GAAP net income $ 19,213 $ 24,330 $ 26,941 $ 27,203 $ 23,266 (21)% (17)% Non-GAAP diluted EPS $ 0.76 $ 0.96 $ 1.06 $ 1.07 $ 0.91 (21)% (16)% Adjusted EBITDA $ 40,199 $ 45,656 $ 48,815 $ 45,275 $ 38,672 (12)% 4% Adjusted EBITDA margin % 4.24 % 5.16 % 4.83 % 4.80 % 4.02 % (91) bp 23 bp Adjusted ROIC 12.9 % 14.6 % 15.6 % 15.6 % 14.9 % (170) bp (200) bp Operating cash flow (QTR) $ (15,261) $ 54,837 $ (26,885) $ (48,459) $ (78,684) *nm *nm Operating cash flow (TTM) $ (35,768) $ (99,191) $ (124,321) $ (115,855) $ (124,355) *nm *nm (a) See pages 13 through 15 for the calculation of non-GAAP measures and reconciliations to GAAP measures. *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 4 August 22, 2023


 
Specialty Technology Solutions, 5-Quarter Financial Summary ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q/Q Y/Y Net sales $ 561,501 $ 565,652 $ 627,548 $ 576,329 $ 580,619 (1)% (3)% Gross profit $ 51,440 $ 57,664 $ 56,732 $ 58,404 $ 53,994 (11)% (5)% Gross profit margin % 9.2 % 10.2 % 9.0 % 10.1 % 9.3 % (103) bp (14) bp GAAP operating income $ 14,343 $ 19,811 $ 19,682 $ 21,852 $ 15,408 (28)% (7)% GAAP operating income % 2.55 % 3.50 % 3.14 % 3.79 % 2.65 % (95) bp (10) bp Add: Intangible amortization expense $ 1,261 $ 1,266 $ 1,266 $ 1,341 $ 1,491 —% (15)% Non-GAAP operating income $ 15,604 $ 21,077 $ 20,948 $ 23,193 $ 16,899 (26)% (8)% Non-GAAP operating income % 2.78 % 3.73 % 3.34 % 4.02 % 2.91 % (95) bp (13) bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,343 $ 19,811 $ 19,682 $ 21,852 $ 15,408 (28)% (7)% Plus: Depreciation expense 1,954 1,862 1,873 1,941 2,089 5% (6)% Intangible amortization expense 1,261 1,266 1,266 1,341 1,491 —% (15)% Interest income 776 354 194 321 325 119% 139% Other income/(expense), net (40) (54) 71 (125) (141) *nm *nm EBITDA 18,294 23,239 23,086 25,330 19,172 (21)% (5)% Adjustments: Share-based compensation expense 1,586 1,867 2,203 1,556 1,710 (15)% (7)% Adjusted EBITDA (non-GAAP) $ 19,880 $ 25,106 $ 25,289 $ 26,886 $ 20,882 (21)% (5)% Adjusted EBITDA (non-GAAP) % 3.54 % 4.44 % 4.03 % 4.67 % 3.60 % (90) bp (6) bp *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 5 August 22, 2023


 
Modern Communications & Cloud, 5-Quarter Financial Summary ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q/Q Y/Y Net sales $ 385,648 $ 319,867 $ 383,693 $ 367,484 $ 381,664 21% 1% Gross profit $ 57,219 $ 54,098 $ 58,602 $ 55,081 $ 56,798 6% 1% Gross profit margin % 14.8 % 16.9 % 15.3 % 15.0 % 14.9 % (210) bp (10) bp GAAP operating income $ 14,406 $ 14,468 $ 19,750 $ 13,036 $ 12,016 —% 20% GAAP operating income % 3.74 % 4.52 % 5.15 % 3.55 % 3.15 % (78) bp 59 bp Add: Intangible amortization expense $ 2,924 $ 2,904 $ 2,884 $ 2,900 $ 2,949 1% (1)% Add: Tax recovery(a) $ (128) $ — $ (2,858) $ — $ — *nm *nm Non-GAAP operating income $ 17,202 $ 17,372 $ 19,776 $ 15,936 $ 14,965 (1)% 15% Non-GAAP operating income % 4.46 % 5.43 % 5.15 % 4.34 % 3.92 % (90) bp 60 bp Reconciliation of Operating Income to Adjusted EBITDA GAAP operating income $ 14,406 $ 14,468 $ 19,750 $ 13,036 $ 12,016 —% 20% Plus: Depreciation expense 1,117 1,042 1,034 1,046 1,172 7% (5)% Intangible amortization expense 2,924 2,904 2,884 2,900 2,949 1% (1)% Interest income 1,309 1,356 1,834 1,269 1,035 (3)% 26% Other income/(expense), net (309) (307) (280) (623) (542) *nm *nm EBITDA 19,447 19,463 25,222 17,628 16,630 —% 17% Adjustments: Share-based compensation expense 1,000 1,087 1,161 760 1,162 (8)% (14)% Tax recovery(a) (128) — (2,858) — — *nm *nm Adjusted EBITDA (non-GAAP) $ 20,319 $ 20,550 $ 23,525 $ 18,388 $ 17,792 (1)% 14% Adjusted EBITDA (non-GAAP) % 5.27 % 6.42 % 6.13 % 5.00 % 4.66 % (116) bp 61 bp (a) Recovery of prior period withholding taxes in Brazil *nm - percentages are not meaningful ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 6 August 22, 2023


 
Net Sales, Constant Currency (Organic Growth) - QTR ($ in thousands) Net Sales by Segment: Q4 FY23 Q4 FY22 % Change Specialty Technology Solutions: Net sales, as reported $ 561,501 $ 580,619 (3.3) % Foreign exchange impact (a) 76 — Net sales, constant currency (non-GAAP) $ 561,577 $ 580,619 (3.3) % Modern Communications & Cloud: Net sales, as reported $ 385,648 $ 381,664 1.0 % Foreign exchange impact (a) 139 — Net sales, constant currency (non-GAAP) $ 385,787 $ 381,664 1.1 % Consolidated: Net sales, as reported $ 947,149 $ 962,283 (1.6) % Foreign exchange impact (a) 215 — Net sales, constant currency (non-GAAP) $ 947,364 $ 962,283 (1.6) % Net Sales by Geography: Q4 FY23 Q4 FY22 % Change United States and Canada: Net sales, as reported $ 854,521 $ 865,737 (1.3) % International: Net sales, as reported $ 92,628 $ 90,761 2.1 % Foreign exchange impact (a) 215 — Net sales, constant currency (non-GAAP) $ 92,843 $ 90,761 2.3 % Consolidated: Net sales, as reported $ 947,149 $ 962,283 (1.6) % Foreign exchange impact (a) 215 — Net sales, constant currency (non-GAAP) $ 947,364 $ 962,283 (1.6) % (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 June 30, 2023 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2022. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 7 August 22, 2023


 
Net Sales, Constant Currency (Organic Growth) - FY Fiscal year ended June 30, ($ In thousands) 2023 2022 % Change Specialty Technology Solutions: Net sales, as reported $ 2,331,030 $ 2,082,321 11.9 % Foreign exchange impact (a) (923) — Net sales, constant currency (non-GAAP) $ 2,330,107 $ 2,082,321 11.9 % Modern Communications & Cloud: Net sales, as reported $ 1,456,691 $ 1,447,614 0.6 % Foreign exchange impact (a) (3,492) — Net sales, constant currency (non-GAAP) $ 1,453,199 $ 1,447,614 0.4 % Consolidated: Net sales, as reported $ 3,787,721 $ 3,529,935 7.3 % Foreign exchange impact (a) (4,415) — Net sales, constant currency (non-GAAP) $ 3,783,306 $ 3,529,935 7.2 % Net Sales by Geography: Fiscal year ended June 30, ($ in thousands) 2023 2022 % Change United States and Canada: Net sales, as reported $ 3,432,074 $ 3,173,694 8.1 % International: Net sales, as reported $ 355,647 $ 356,241 (0.2) % Foreign exchange impact (a) (4,415) — Net sales, constant currency (non-GAAP) $ 351,232 $ 356,241 (1.4) % Consolidated: Net sales, as reported $ 3,787,721 $ 3,529,935 7.3 % Foreign exchange impact (a) (4,415) — Net sales, constant currency (non-GAAP) $ 3,783,306 $ 3,529,935 7.2 % (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 June 30, 2023 into U.S. dollars using the weighted-average foreign exchange rates for the quarter ended June 30, 2022. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 8 August 22, 2023


 
Average Adjusted Return on Invested Capital - QTR ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Adjusted return on invested capital (ROIC), annualized (a) 12.9 % 14.6 % 15.6 % 15.6 % 14.9 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 17,095 $ 21,221 $ 25,734 $ 24,042 $ 19,947 Plus: Interest expense 5,564 5,715 5,060 3,448 1,886 Income taxes 6,367 8,692 10,458 8,241 6,267 Depreciation and amortization 7,255 7,074 7,057 7,228 7,700 EBITDA 36,281 42,702 48,309 42,959 35,800 Adjustments: Tax recovery (b) (128) — (2,858) — — Cyberattack restoration costs 1,460 — — — — Share-based compensation 2,586 2,954 3,364 2,316 2,872 Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 40,199 $ 45,656 $ 48,815 $ 45,275 $ 38,672 Invested Capital Calculation Equity - beginning of the quarter $ 878,895 $ 862,386 $ 827,004 $ 806,528 $ 806,654 Equity - end of quarter 905,298 878,895 862,386 827,004 806,528 Adjustments: Tax recovery, net (2,100) — (1,886) — — Share-based compensation, net 1,921 2,191 2,496 1,718 2,134 Cyberattack restoration costs, net 1,092 — — — — Discontinued operations net income (1,717) — — — — Average equity 891,695 871,736 845,000 817,625 807,658 Average funded debt (c) 361,792 398,318 392,853 336,428 233,445 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,253,487 $ 1,270,054 $ 1,237,853 $ 1,154,053 $ 1,041,103 (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) Recovery of prior period withholding taxes in Brazil (c) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 9 August 22, 2023


 
Average Adjusted Return on Invested Capital - FY ($ in thousands) FY23 FY22 Adjusted return on invested capital (ROIC), annualized (a) 14.6 % 17.0 % Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 88,092 $ 88,698 Plus: Interest expense 19,786 6,523 Income taxes 33,758 29,925 Depreciation and amortization 28,614 29,884 EBITDA 170,250 155,030 Adjustments: Share-based compensation 11,219 11,663 Acquisition and divestiture costs — 30 Tax recovery (2,986) — Cyberattack restoration costs 1,460 — Adjusted EBITDA (numerator for Adjusted ROIC) (non-GAAP) $ 179,943 $ 166,723 Invested Capital Calculation Equity - beginning of the year $ 806,528 $ 731,191 Equity - end of the year 905,298 806,528 Adjustments: Share-based compensation, net 8,326 8,709 Cyberattack restoration costs, net 1,092 — Tax recovery, net (3,985) — Divestiture costs — 30 Impact of discontinued operations, net of tax (1,717) (100) Average equity 857,771 773,179 Average funded debt (b) 372,235 209,114 Invested capital (denominator for Adjusted ROIC) (non-GAAP) $ 1,230,006 $ 982,293 (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 is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 10 August 22, 2023


 
Net Debt and Adjusted EBITDA Metrics ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Consolidated debt (Q/E) $ 329,901 $ 311,052 $ 382,796 $ 326,435 $ 271,170 Less: Consolidated cash and cash equivalents (Q/E) (36,178) (37,374) (66,445) (40,472) (37,987) Net debt (Q/E) $ 293,723 $ 273,678 $ 316,351 $ 285,963 $ 233,183 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 17,095 $ 21,221 $ 25,734 $ 24,042 $ 19,947 Plus: Interest expense 5,564 5,715 5,060 3,448 1,886 Income taxes 6,367 8,692 10,458 8,241 6,267 Depreciation and amortization 7,255 7,074 7,057 7,228 7,700 EBITDA 36,281 42,702 48,309 42,959 35,800 Adjustments: Tax recovery (a) (128) — (2,858) — — Cyberattack restoration costs 1,460 — — — — Share-based compensation 2,586 2,954 3,364 2,316 2,872 Adjusted EBITDA (non-GAAP) $ 40,199 $ 45,656 $ 48,815 $ 45,275 $ 38,672 Adjusted EBITDA, TTM (b) $ 179,945 $ 178,418 $ 176,877 $ 170,604 $ 166,723 Net Debt / Adjusted EBITDA, TTM (b) 1.6 x 1.5 x 1.8 x 1.7 x 1.4 x (a) Recovery of prior period withholding taxes in Brazil (b) Adjusted EBITDA for the trailing 12-month period ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 11 August 22, 2023


 
Working Capital, 5-Quarter Summary ($ in thousands) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Accounts Receivable (Q/E) $ 753,236 $ 684,458 $ 779,562 $ 744,946 $ 729,442 Days sales outstanding in receivables 72 70 69 71 68 Inventory (Q/E) $ 757,574 $ 752,763 $ 761,936 $ 675,798 $ 614,814 Inventory turns 4.4 4.1 5.0 5.1 5.6 Accounts payable (Q/E) $ 691,119 $ 656,688 $ 748,662 $ 710,919 $ 714,177 Paid for inventory days* 17.5 22.7 10.9 7.2 (0.8) Working Capital (Q/E) (AR+INV-AP) $ 819,691 $ 780,533 $ 792,836 $ 709,825 $ 630,079 Cash conversion cycle 90 93 80 78 67 *Paid for inventory days represent Q/E inventory days less Q/E accounts payable days ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 12 August 22, 2023


 
Operating Income, Net Income & EPS - QTR ($ in thousands) Quarter ended June 30, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $74,358 — $128 $(1,460) $73,026 Operating income 27,289 4,185 (128) 1,460 32,806 Net income 17,095 3,126 (2,100) 1,092 19,213 Diluted EPS $0.68 $0.12 $(0.08) $0.04 $0.76 ($ in thousands) Quarter ended March 31, 2023 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $70,669 — — — $70,669 Operating income 34,279 4,170 — — 38,449 Net income 21,221 3,109 — — 24,330 Diluted EPS $0.83 $0.12 — — $0.96 ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 13 August 22, 2023


 
Operating Income, Net Income & EPS - QTR, continued ($ in thousands) Quarter ended December 31, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $69,074 — $2,858 — $71,932 Operating income 39,432 4,150 (2,858) — 40,724 Net income 25,734 3,093 (1,886) — 26,941 Diluted EPS $1.01 $0.12 $(0.07) — $1.06 ($ in thousands) Quarter ended September 30, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $71,593 — — — $71,593 Operating income 34,888 4,241 — — 39,129 Net income 24,042 3,161 — — 27,203 Diluted EPS $0.94 $0.12 — — $1.07 ($ in thousands) Quarter ended June 30, 2022 Reported GAAP measure Intangible amortization expense Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $75,905 — — — $75,905 Operating income 27,424 4,440 — — 31,864 Net income 19,947 3,319 — — 23,266 Diluted EPS $0.78 $0.13 — — $0.91 ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 14 August 22, 2023


 
Operating Income, Net Income & EPS - FY ($ in thousands) Year ended June 30, 2023 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $285,695 — — $2,986 $(1,460) $287,221 Operating income 135,886 16,746 — (2,986) 1,460 151,106 Net income 88,092 12,489 — (3,985) 1,092 97,688 Diluted EPS $3.47 $0.49 — $(0.16) $0.04 $3.85 Year ended June 30, 2022 Reported GAAP measure Intangible amortization expense Acquisition, divestiture and restructuring costs(a) Tax recovery, net Cyberattack restoration costs Non-GAAP measure SG&A expenses $275,442 — $(30) — — $275,412 Operating (loss) income 122,167 17,853 30 — — 140,050 Net (loss) income 88,698 13,412 30 — — 102,140 Diluted EPS $3.44 $0.52 — — — $3.97 (a) Divestiture costs totaled less than $0.1 million for the fiscal year ended June 30, 2022 and are generally nondeductible for tax purposes. ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 15 August 22, 2023


 
FY24 Annual Financial Outlook Reconciliation FY 24 Outlook GAAP operating income At least $134 million Intangible amortization $17 million Depreciation expense $12 million Share-based compensation expense $12 million Interest income and income (expense), net $5 million Adjusted EBITDA (non-GAAP) At least $180 million GAAP operating cash flow At least $160 million Less: Capital expenditures $10 million Free cash flow At least $150 million ScanSource, Inc. Earnings Infographic Q4 FY2023 SUPPORTING MATERIALS AND RECONCILIATIONS FOR NON-GAAP FINANCIAL INFORMATION scansource.com 16 August 22, 2023