Scansource reports fourth quarter and fiscal year 2022 results
Greenville, s.c.--(business wire)--scansource, inc. (nasdaq: scsc), a leading hybrid distributor connecting devices to the cloud, today announced financial results for the fourth quarter and fiscal year ended june 30, 2022. all results in this release reflect continuing operations only unless otherwise noted. fourth quarter summary fiscal year summary q4 fy22 q4 fy21 change fy22 fy21 change (in thousands, except per share data) select reported measures: net sales $ 962,283 $ 852,694 12.9 % $ 3,529,935 $ 3,150,806 12.0 % gross profit $ 110,792 $ 95,778 15.7 % $ 426,524 $ 350,716 21.6 % gross profit margin % 11.51 % 11.23 % 28bp 12.08 % 11.13 % 95bp operating income $ 27,424 $ 23,283 17.8 % $ 122,167 $ 61,483 98.7 % gaap net income $ 19,947 $ 20,657 -3.4 % $ 88,698 $ 45,389 95.4 % gaap diluted eps $ 0.78 $ 0.80 -2.5 % $ 3.44 $ 1.78 93.3 % select non-gaap measures: adjusted ebitda $ 38,672 $ 35,299 9.6 % $ 166,723 $ 117,949 41.4 % adjusted ebitda margin % 4.02 % 4.14 % -12bp 4.72 % 3.74 % 98bp non-gaap net income $ 23,266 $ 24,522 -5.1 % $ 102,140 $ 69,868 46.2 % non-gaap diluted eps $ 0.91 $ 0.96 -5.2 % $ 3.97 $ 2.74 44.9 % "our exceptional fiscal year 2022 results demonstrate the success of the new scansource and faster growth of our recurring revenue," said mike baur, chairman and ceo, scansource, inc. "our hybrid distribution strategy of devices and digital is winning, as evidenced by our 12% net sales growth. we exceeded our full-year 2022 outlook for net sales growth and achieved record adjusted ebitda." quarterly results net sales for the fourth quarter of fiscal year 2022 totaled $962.3 million, up 12.9% year-over-year, or 12.2% year-over-year for organic growth, with strong demand in both segments. fourth quarter fiscal year 2022 net sales in the specialty technology solutions segment increased 12.6% year-over-year, or 12.4% year-over-year for organic growth, to $580.6 million, driven by broad-based demand across technologies and execution by our people. fourth quarter fiscal year 2022 net sales in modern communications & cloud increased 13.2% year-over-year, or 11.9% year-over-year for organic growth, to $381.7 million, primarily due to increased demand across our communications solutions. gross profit for the fourth quarter of fiscal year 2022 totaled $110.8 million, up 15.7% year-over-year. the increase is primarily due to higher sales volume and higher vendor program recognition compared to the prior-year quarter. gross profit margin increased to 11.51% for the fourth quarter of fiscal year 2022, up from 11.23% in the prior-year quarter. for the fourth quarter of fiscal year 2022, operating income increased to $27.4 million from $23.3 million in the prior-year quarter. fourth quarter fiscal year 2022 non-gaap operating income increased to $31.9 million for a 3.31% non-gaap operating income margin, compared to $28.4 million and a 3.33% non-gaap operating margin for the prior-year quarter. on a gaap basis, net income for the fourth quarter of fiscal year 2022 totaled $19.9 million, or $0.78 per diluted share, compared to net income of $20.7 million, or $0.80 per diluted share, for the prior-year quarter. fourth quarter fiscal year 2022 non-gaap net income totaled $23.3 million, or $0.91 per diluted share. these results compare to fourth quarter fiscal year 2021 non-gaap net income of $24.5 million, or $0.96 per diluted share, which includes a $0.19 benefit from discrete tax items. adjusted ebitda for the fourth quarter of fiscal year 2022 increased 9.6% to $38.7 million, or 4.02% of net sales, compared to $35.3 million, or 4.14%, of net sales in the prior-year quarter. adjusted return on invested capital totaled 14.9% for fourth quarter fiscal year 2022, compared to 16.0% in the prior-year quarter, primarily from increased average invested capital for the current year quarter. full-year results for fiscal year 2022, net sales increased 12.0% to $3.5 billion, or a 11.8% year-over-year increase on an organic basis. fiscal year 2022 net sales in the specialty technology solutions segment increased 14.7% year-over-year, or 14.6% year-over-year for organic growth, to $2.1 billion, driven by broad-based demand across technologies and execution by our people. fiscal year 2022 net sales in the modern communications & cloud segment increased 8.4% year-over-year, or 7.9% year-over-year for organic growth, to $1.4 billion, primarily due to increased demand across our communications solutions. gross profit for the fiscal year 2022 totaled $426.5 million, up 21.6% year-over-year. the increase is primarily due to higher sales volume and higher vendor program recognition compared to the prior year. gross profit margin increased to 12.1%, up from 11.1% in the prior-year. for the fiscal year ended june 30, 2022, operating income increased to $122.2 million from $61.5 million in the prior-year. fiscal year 2022 non-gaap operating income increased to $140.1 million for a 4.0% non-gaap operating margin, up from $93.1 million and a 3.0% non-gaap operating margin for the prior-year. on a gaap basis, net income for the fiscal year ended june 30, 2022 totaled $88.7 million, or $3.44 per diluted share, compared to net income of $45.4 million, or $1.78 per diluted share for the prior-year. fiscal year 2022 non-gaap net income totaled $102.1 million, or $3.97 per diluted share, compared to $69.9 million, or $2.74 per diluted share for the prior-year. adjusted ebitda for the fiscal year ended june 30, 2022 increased to $166.7 million, or 4.7% of net sales, compared to $117.9 million, or 3.7% of net sales for the prior-year, primarily due to higher gross profits. adjusted return on invested capital increased to 17.0% for the fiscal year, compared to 12.6% the prior year, driven by higher profitability. annual financial outlook for fiscal year 2023 the following guidance is based on scansource's current expectations for the full fiscal year ended june 30, 2023. fy23 annual outlook net sales growth, year-over-year at least 5.5% adjusted ebitda (non-gaap) at least $174 million adjusted ebitda is a non-gaap measure, which excludes estimates for amortization of intangible assets, depreciation expense, and non-cash share-based compensation expense. scansource’s outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments, or other significant transactions that may be completed after the date hereof. these statements are forward-looking, and actual results may differ materially. webcast details and earnings infographic at approximately 4:15 p.m. et today, an earnings infographic, as a supplement to this press release and the company's conference call, will be available on scansource's website, www.scansource.com (investor relations section). scansource will present additional information about its financial results and business in a conference call today, august 23, 2022, at 5:00 p.m. et. a webcast of the call will be available for all interested parties and can be accessed at www.scansource.com (investor relations section). the webcast will be available for replay for 60 days. safe harbor statement this press release contains “forward-looking” statements, including the company's fy23 outlook, which involve risks and uncertainties. any number of factors could cause actual results to differ materially from anticipated results, including, but not limited to, failure to hire and retain quality employees, risk to the company's business from a cyber-security attack, supply chain challenges, the failure to manage and implement the company's organic growth strategy, economic weakness and inflation, a failure of the company's it systems, a failure to acquire new businesses, changes in interest and exchange rates and regulatory regimes impacting the company's international operations, credit risks involving the company's larger customers and suppliers, loss of the company's major customers, termination of the company's relationship with key suppliers or a significant modification of the terms under which it operates with a key supplier, changes in the company's operating strategy, and other factors set forth in the "risk factors" contained in the company's annual report on form 10-k for the year ended june 30, 2022, filed with the securities and exchange commission. except as may be required by law, the company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. 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 financial measures, which are summarized below. non-gaap financial measures are used to understand and evaluate performance, including comparisons from period to period. non-gaap results exclude amortization of intangible assets related to acquisitions, change in fair value of contingent consideration, acquisition costs, restructuring costs and other non-gaap adjustments. net sales on a constant currency basis, excluding acquisitions (organic growth): the company discloses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods and excluding the net sales from acquisitions prior to the first full year from the acquisition date. this measure enhances the comparability between periods to help analyze underlying trends on an organic basis. additional non-gaap metrics: to evaluate current period performance on a more consistent basis with prior periods, the company discloses non-gaap sg&a expenses, non-gaap operating income, non-gaap net income and non-gaap diluted earnings per share (non-gaap diluted "eps"). non-gaap results exclude amortization of intangible assets related to acquisitions, changes in fair value of contingent consideration, acquisition and divestiture costs, impairment charges, restructuring costs, and other non-gaap adjustments. these year-over-year metrics include the translation impact of changes in foreign currency exchange rates. non-gaap metrics are useful in assessing and understanding the company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods. adjusted earnings before interest expense, income taxes, depreciation, and amortization (“adjusted ebitda”): adjusted ebitda starts with net income and adds back interest expense, income tax expense, depreciation expense, amortization of intangible assets, changes in fair value of contingent considerations, and other non-gaap adjustments, including acquisition and divestiture costs, impairment charges, and restructuring costs. effective with the first quarter of fiscal year 2022, non-cash share-based compensation expense is also added back in calculating adjusted ebitda. since adjusted ebitda excludes some non-cash costs of investing in our business and people, management believes that adjusted ebitda shows the profitability from our business operations more clearly. the presentation for adjusted ebitda for all periods presented has been recast to reflect this change to enhance comparability between periods. adjusted return on invested capital ("adjusted roic"): adjusted roic assists management in comparing the company's performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operating performance. we believe the calculation of adjusted roic provides useful information to investors and is an additional relevant comparison of our performance. adjusted roic is calculated as adjusted ebitda over invested capital. invested capital is defined as average equity plus average daily funded interest-bearing debt for the period. management believes the calculation of adjusted roic provides useful information to investors and is an additional relevant comparison of the company's performance during the year. these non-gaap financial measures have limitations as analytical tools, and the non-gaap financial measures that the company reports may not be comparable to similarly titled amounts reported by other companies. analysis of results and outlook on a non-gaap basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with gaap. a reconciliation of the company's non-gaap financial information to gaap is set forth in the supplementary information (unaudited) below. about scansource, inc. scansource, inc. (nasdaq: scsc) is a leading hybrid distributor connecting devices to the cloud and accelerating growth for partners across hardware, saas, connectivity and cloud. scansource enables partners to deliver solutions for their customers to address changing end-user buying and consumption patterns. scansource sells through multiple, specialized routes-to-market with hardware, saas, connectivity and cloud services offerings from the world’s leading suppliers of point-of-sale (pos), payments, barcode, physical security, unified communications and collaboration, telecom and cloud services. founded in 1992 and headquartered in greenville, south carolina, scansource was named one of the 2022 best places to work in south carolina and on fortune magazine’s 2022 list of world’s most admired companies. scansource ranks #773 on the fortune 1000. for more information, visit www.scansource.com. scansource, inc. and subsidiaries condensed consolidated balance sheets (unaudited) (in thousands) june 30, 2022 june 30, 2021* assets current assets: cash and cash equivalents $ 37,987 $ 62,718 accounts receivable, less allowance of $16,806 at june 30, 2022 and $19,341 at june 30, 2021 729,442 568,984 inventories 614,814 470,081 prepaid expenses and other current assets 141,562 117,860 total current assets 1,523,805 1,219,643 property and equipment, net 37,477 42,836 goodwill 214,435 218,877 identifiable intangible assets, net 84,427 104,860 deferred income taxes 15,668 21,853 other non-current assets 61,616 63,615 total assets $ 1,937,428 $ 1,671,684 liabilities and shareholders’ equity current liabilities: accounts payable $ 714,177 $ 634,805 accrued expenses and other current liabilities 88,455 87,790 income taxes payable 34 2,501 current portion of long-term debt 11,598 7,843 total current liabilities 814,264 732,939 deferred income taxes 3,144 3,954 long-term debt, net of current portion 123,733 135,331 borrowings under revolving credit facility 135,839 — other long-term liabilities 53,920 68,269 total liabilities 1,130,900 940,493 commitments and contingencies shareholders’ equity: preferred stock, no par value; 3,000,000 shares authorized, none issued — — common stock, no par value; 45,000,000 shares authorized, 25,187,351 and 25,499,465 shares issued and outstanding at june 30, 2022 and june 30, 2021, respectively 64,297 71,253 retained earnings 846,869 758,071 accumulated other comprehensive loss (104,638 ) (98,133 ) total shareholders’ equity 806,528 731,191 total liabilities and shareholders’ equity $ 1,937,428 $ 1,671,684 *derived from audited financial statements. scansource, inc. and subsidiaries condensed consolidated income statements (unaudited) (in thousands, except per share data) quarter ended june 30, fiscal year ended june 30, 2022 2021 2022 2021 net sales $ 962,283 $ 852,694 $ 3,529,935 $ 3,150,806 cost of goods sold 851,491 756,916 3,103,411 2,800,090 gross profit 110,792 95,778 426,524 350,716 selling, general and administrative expenses 75,905 64,758 275,442 247,438 depreciation expense 3,023 2,898 11,062 12,533 intangible amortization expense 4,440 4,893 17,853 19,488 restructuring and other charges — (54 ) — 9,258 change in fair value of contingent consideration — — — 516 operating income 27,424 23,283 122,167 61,483 interest expense 1,886 1,643 6,523 6,929 interest income (1,360 ) (1,341 ) (4,333 ) (3,097 ) other (income) expense, net 684 (65 ) 1,354 116 income before income taxes 26,214 23,046 118,623 57,535 provision for income taxes 6,267 2,389 29,925 12,146 net income from continuing operations 19,947 20,657 88,698 45,389 net income (loss) from discontinued operations — 3,053 100 (34,594 ) net income $ 19,947 $ 23,710 $ 88,798 $ 10,795 per share data: net income from continuing operations per common share, basic $ 0.79 $ 0.81 $ 3.48 $ 1.79 net income (loss) from discontinued operations per common share, basic — 0.12 — (1.36 ) net income per common share, basic $ 0.79 $ 0.93 $ 3.48 $ 0.42 weighted-average shares outstanding, basic 25,286 25,482 25,504 25,423 net income from continuing operations per common share, diluted $ 0.78 $ 0.80 $ 3.44 $ 1.78 net income (loss) from discontinued operations per common share, diluted — 0.12 — (1.36 ) net income per common share, diluted $ 0.78 $ 0.92 $ 3.45 $ 0.42 weighted-average shares outstanding, diluted 25,584 25,664 25,758 25,518 scansource, inc. and subsidiaries condensed consolidated statements of cash flows (unaudited) (in thousands) quarter ended june 30, fiscal year ended june 30, 2022 2021 2022 2021 cash flows from operating activities: net income $ 19,947 $ 23,710 $ 88,798 $ 10,795 net income (loss) from discontinued operations — 3,053 100 (34,594 ) net income from continuing operations 19,947 20,657 88,698 45,389 adjustments to reconcile net income to net cash provided by operating activities of continuing operations: depreciation and amortization 7,701 8,090 29,884 33,507 amortization of debt issue costs 104 104 417 417 provision for doubtful accounts 1,357 112 1,514 338 share-based compensation 2,872 2,328 11,663 8,039 deferred income taxes 3,742 2,941 5,737 2,916 change in fair value of contingent consideration — — — 516 contingent consideration payments excess — — — (5,457 ) finance lease interest 1 23 34 119 changes in operating assets and liabilities, net of acquisitions: accounts receivable (98,535 ) (50,204 ) (165,939 ) (118,859 ) inventories (27,613 ) (6,394 ) (145,962 ) (12,301 ) prepaid expenses and other assets (12,369 ) (17,111 ) (27,371 ) (18,753 ) other non-current assets 3,914 7,102 1,123 9,948 accounts payable 15,434 105,511 82,969 175,120 accrued expenses and other liabilities 7,876 (8,928 ) (4,869 ) (493 ) income taxes payable (3,115 ) (2,886 ) (2,252 ) (3,679 ) net cash (used in) provided by operating activities of continuing operations (78,684 ) 61,345 (124,354 ) 116,767 cash flows from investing activities of continuing operations: capital expenditures (3,523 ) (80 ) (6,849 ) (2,363 ) cash received for business disposal — — 3,125 34,356 net cash (used in) provided by investing activities of continuing operations (3,523 ) (80 ) (3,724 ) 31,993 cash flows from financing activities of continuing operations: borrowings on revolving credit, net of expenses 572,139 395,215 2,166,409 1,881,679 repayments on revolving credit, net of expenses (480,593 ) (449,017 ) (2,030,569 ) (1,949,392 ) repayments on long-term debt, net (1,875 ) (1,875 ) (7,843 ) (7,839 ) repayments of finance lease obligations (306 ) (320 ) (1,238 ) (1,294 ) contingent consideration payments — — — (41,393 ) exercise of stock options 712 12 2,304 451 taxes paid on settlement of equity awards (26 ) — (2,754 ) (1,036 ) common stock repurchased (9,676 ) — (18,203 ) — net cash provided by (used in) financing activities of continuing operations 80,375 (55,985 ) 108,106 (118,824 ) scansource, inc. and subsidiaries condensed consolidated statements of cash flows (unaudited), continued (in thousands) cash flows from discontinued operations: net cash flows provided by operating activities of discontinued operations — 2,469 — 24,173 net cash flows used in investing activities of discontinued operations — — — (58 ) net cash flows used in financing activities of discontinued operations — — — (29,494 ) net cash flows used in discontinued operations — 2,469 — (5,379 ) effect of exchange rate changes on cash and cash equivalents (3,720 ) 5,648 (4,759 ) 3,706 (decrease) increase in cash and cash equivalents (5,552 ) 13,397 (24,731 ) 28,263 consolidated cash and cash equivalents at beginning of period 43,539 49,321 62,718 34,455 consolidated cash and cash equivalents at end of period 37,987 62,718 37,987 62,718 cash and cash equivalents of discontinued operations — — — — cash and cash equivalents of continuing operations $ 37,987 $ 62,718 $ 37,987 $ 62,718 scansource, inc. and subsidiaries supplementary information (unaudited) (in thousands, except percentages) non-gaap financial information: quarter ended june 30, fiscal year ended june 30, 2022 2021 2022 2021 adjusted return on invested capital ratio (adjusted roic), annualized(a) 14.9 % 16.0 % 17.0 % 12.6 % reconciliation of net income to adjusted ebitda: net income from continuing operations (gaap) $ 19,947 $ 20,657 $ 88,698 $ 45,389 plus: interest expense 1,886 1,643 6,523 6,929 plus: income taxes 6,267 2,389 29,925 12,146 plus: depreciation and amortization 7,700 8,090 29,884 33,507 ebitda (non-gaap) 35,800 32,779 155,030 97,971 plus: share-based compensation 2,872 2,328 11,663 8,039 plus: acquisition and divestiture costs(b) — 246 30 2,376 plus: restructuring costs — (54 ) — 9,047 adjusted ebitda (numerator for adjusted roic) (non-gaap) $ 38,672 $ 35,299 $ 166,723 $ 117,949 invested capital calculations: equity – beginning of the quarter $ 806,654 $ 690,575 $ 731,191 $ 678,246 equity – end of the quarter 806,528 731,191 806,528 731,191 plus: share-based compensation, net 2,134 1,912 plus: acquisition and divestiture costs(b) — 207 30 2,337 plus: restructuring, net — (40 ) — 6,840 plus: discontinued operations net (income) loss — (3,053 ) (100 ) 34,594 average equity 807,658 710,396 773,179 729,825 average funded debt (c) 233,445 177,074 209,114 202,869 invested capital (denominator for adjusted roic) (non-gaap) $ 1,041,103 $ 887,470 $ 982,293 $ 932,694 (a) the annualized adjusted ebitda amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. there were 90 days in the current and prior-year quarter. (b) acquisition and divestiture costs are generally nondeductible for tax purposes. (c) average funded debt, which includes both continuing and discontinued operations, is calculated as the average daily amounts outstanding on short-term and long-term interest-bearing debt. scansource, inc. and subsidiaries supplementary information (unaudited) net sales by segment: quarter ended june 30, 2022 2021 % change specialty technology solutions: (in thousands) net sales, reported $ 580,619 $ 515,445 12.6 % foreign exchange impact (a) (1,338 ) — non-gaap net sales, constant currency $ 579,281 $ 515,445 12.4 % modern communications & cloud: net sales, reported $ 381,664 $ 337,249 13.2 % foreign exchange impact (a) (4,447 ) — non-gaap net sales, constant currency $ 377,217 $ 337,249 11.9 % consolidated: net sales, reported $ 962,283 $ 852,694 12.9 % foreign exchange impact (a) (5,785 ) — non-gaap net sales, constant currency $ 956,498 $ 852,694 12.2 % (a) year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. calculated by translating the net sales for the quarter ended june 30, 2022 into u.s. dollars using the average foreign exchange rates for the quarter ended june 30, 2021. scansource, inc. and subsidiaries supplementary information (unaudited) net sales by segment: fiscal year ended june 30, 2022 2021 % change specialty technology solutions (in thousands) net sales, reported $ 2,082,321 $ 1,815,933 14.7 % foreign exchange impact (a) (1,710 ) — non-gaap net sales, constant currency $ 2,080,611 $ 1,815,933 14.6 % modern communications & cloud net sales, reported $ 1,447,614 $ 1,334,873 8.4 % foreign exchange impact (a) (7,115 ) — non-gaap net sales, constant currency $ 1,440,499 $ 1,334,873 7.9 % consolidated: net sales, reported $ 3,529,935 $ 3,150,806 12.0 % foreign exchange impact (a) (8,825 ) — non-gaap net sales, constant currency $ 3,521,110 $ 3,150,806 11.8 % (a) year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. calculated by translating the net sales for the fiscal year ended june 30, 2022 into u.s. dollars using the average foreign exchange rates for the fiscal year ended june 30, 2021. scansource, inc. and subsidiaries supplementary information (unaudited) net sales by geography: quarter ended june 30, 2022 2021 % change united states and canada: (in thousands) net sales, as reported $ 865,737 $ 771,403 12.2 % international: net sales, reported $ 96,546 $ 81,291 18.8 % foreign exchange impact(a) (5,785 ) — non-gaap net sales, constant currency $ 90,761 $ 81,291 11.6 % consolidated: net sales, reported $ 962,283 $ 852,694 12.9 % foreign exchange impact(a) (5,785 ) — non-gaap net sales, constant currency $ 956,498 $ 852,694 12.2 % (a) year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. calculated by translating the net sales for the quarter ended june 30, 2022 into u.s. dollars using the average foreign exchange rates for the quarter ended june 30, 2021. scansource, inc. and subsidiaries supplementary information (unaudited) net sales by geography: fiscal year ended june 30, 2022 2021 % change united states and canada: (in thousands) net sales, as reported $ 3,173,694 $ 2,840,731 11.7 % international: net sales, reported $ 356,241 $ 310,075 14.9 % foreign exchange impact(a) (8,825 ) — non-gaap net sales, constant currency $ 347,416 $ 310,075 12.0 % consolidated: net sales, reported $ 3,529,935 $ 3,150,806 12.0 % foreign exchange impact(a) (8,825 ) — non-gaap net sales, constant currency $ 3,521,110 $ 3,150,806 11.8 % (a) year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. calculated by translating the net sales for the fiscal year ended june 30, 2022 into u.s. dollars using the average foreign exchange rates for the fiscal year ended june 30, 2021. quarter ended june 30, 2022 gaap measure intangible amortization expense acquisition and divestiture costs restructuring costs non-gaap measure (in thousands, except per share data) 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 quarter ended june 30, 2021 gaap measure intangible amortization expense acquisition and divestiture costs restructuring costs non-gaap measure (in thousands, except per share data) sg&a expense $ 64,758 $ — $ (246 ) $ — $ 64,512 operating income 23,283 4,893 246 (54 ) 28,368 net income 20,657 3,698 207 (40 ) 24,522 diluted eps $ 0.80 $ 0.14 $ 0.01 $ — $ 0.96 year ended june 30, 2022 reported gaap measure intangible amortization expense change in fair value of contingent consideration acquisition and divestiture costs restructuring costs non-gaap measure (in thousands, except per share data) sg&a expense $ 275,442 $ — $ — $ (30 ) $ — $ 275,412 operating income 122,167 17,853 — 30 — 140,050 net income 88,698 13,412 — 30 — 102,140 diluted eps $ 3.44 $ 0.52 $ — $ — $ — $ 3.97 year ended june 30, 2021 reported gaap measure intangible amortization expense change in fair value of contingent consideration acquisition and divestiture costs restructuring costs non-gaap measure (in thousands, except per share data) sg&a expense $ 247,438 $ — $ — $ (2,376 ) $ — $ 245,062 operating income 61,483 19,488 516 2,376 9,258 93,121 net income 45,389 14,753 390 2,337 6,999 69,868 diluted eps $ 1.78 $ 0.58 $ 0.02 $ 0.09 $ 0.27 $ 2.74 scansource, inc. and subsidiaries supplementary forward-looking information (unaudited) annual financial outlook for fiscal year 2023: fy23 outlook gaap, operating income at least $132 million intangible amortization $17 million depreciation expense $12 million share-based compensation expense $12 million interest income and other income (expense), net $1 million adjusted ebitda (non-gaap) at least $174 million
