|
|
|
|
|
|
|
|
|
|
|
|
Large accelerated filer
|
x
|
|
|
Smaller reporting company
|
¨
|
Accelerated filer
|
¨
|
|
|
Emerging growth company
|
¨
|
Non-accelerated filer
|
¨
|
(Do not check if a smaller reporting company)
|
|
|
|
Class
|
|
Outstanding at May 5, 2017
|
Common Stock, no par value per share
|
|
25,314,306
|
|
|
Page #
|
|
|
|
Item 1.
|
||
|
Condensed Consolidated Balance Sheets as of March 31, 2017 and June 30, 2016
|
|
|
Condensed Consolidated Income Statements for the Quarter and Nine Months Ended March 31, 2017 and 2016
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Quarter and Nine Months Ended March 31, 2017 and 2016
|
|
|
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2017 and 2016
|
|
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 1
|
Legal Proceedings
|
|
Item 1A.
|
||
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 6.
|
||
|
|
|
|
|
|
Item 1.
|
Financial Statements
|
|
March 31,
2017 |
|
June 30,
2016 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
62,187
|
|
|
$
|
61,400
|
|
Accounts receivable, less allowance of $42,494 at March 31, 2017 and $39,032 at June 30, 2016
|
565,242
|
|
|
559,557
|
|
||
Inventories
|
514,238
|
|
|
558,581
|
|
||
Prepaid expenses and other current assets
|
59,739
|
|
|
49,367
|
|
||
Total current assets
|
1,201,406
|
|
|
1,228,905
|
|
||
Property and equipment, net
|
56,409
|
|
|
52,388
|
|
||
Goodwill
|
201,066
|
|
|
92,715
|
|
||
Identifiable intangible assets, net
|
105,578
|
|
|
51,127
|
|
||
Deferred income taxes
|
27,534
|
|
|
28,813
|
|
||
Other non-current assets
|
39,823
|
|
|
37,237
|
|
||
Total assets
|
$
|
1,631,816
|
|
|
$
|
1,491,185
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
437,226
|
|
|
$
|
471,487
|
|
Accrued expenses and other current liabilities
|
111,330
|
|
|
98,975
|
|
||
Current portion of contingent consideration
|
31,257
|
|
|
11,594
|
|
||
Income taxes payable
|
5,461
|
|
|
3,056
|
|
||
Total current liabilities
|
585,274
|
|
|
585,112
|
|
||
Deferred income taxes
|
2,163
|
|
|
2,555
|
|
||
Long-term debt
|
5,429
|
|
|
5,429
|
|
||
Borrowings under revolving credit facility
|
108,505
|
|
|
71,427
|
|
||
Long-term portion of contingent consideration
|
81,966
|
|
|
13,058
|
|
||
Other long-term liabilities
|
39,760
|
|
|
39,108
|
|
||
Total liabilities
|
823,097
|
|
|
716,689
|
|
||
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, 25,314,031
and 25,614,673 shares issued and outstanding at March 31, 2017 and June 30, 2016, respectively
|
55,997
|
|
|
67,249
|
|
||
Retained earnings
|
830,210
|
|
|
779,934
|
|
||
Accumulated other comprehensive income (loss)
|
(77,488
|
)
|
|
(72,687
|
)
|
||
Total shareholders’ equity
|
808,719
|
|
|
774,496
|
|
||
Total liabilities and shareholders’ equity
|
$
|
1,631,816
|
|
|
$
|
1,491,185
|
|
June 30, 2016 amounts are derived from audited consolidated financial statements.
|
|
See accompanying notes to these condensed consolidated financial statements.
|
|
Quarter ended
|
|
Nine months ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net sales
|
$
|
813,538
|
|
|
$
|
798,404
|
|
|
$
|
2,650,895
|
|
|
$
|
2,662,754
|
|
Cost of goods sold
|
720,867
|
|
|
713,928
|
|
|
2,368,155
|
|
|
2,390,093
|
|
||||
Gross profit
|
92,671
|
|
|
84,476
|
|
|
282,740
|
|
|
272,661
|
|
||||
Selling, general and administrative expenses
|
70,733
|
|
|
61,690
|
|
|
212,691
|
|
|
190,202
|
|
||||
Change in fair value of contingent consideration
|
1,960
|
|
|
1,139
|
|
|
3,921
|
|
|
4,520
|
|
||||
Operating income
|
19,978
|
|
|
21,647
|
|
|
66,128
|
|
|
77,939
|
|
||||
Interest expense
|
780
|
|
|
694
|
|
|
2,281
|
|
|
1,684
|
|
||||
Interest income
|
(1,040
|
)
|
|
(800
|
)
|
|
(2,948
|
)
|
|
(2,509
|
)
|
||||
Other (income) expense, net
|
667
|
|
|
400
|
|
|
(11,280
|
)
|
|
1,357
|
|
||||
Income before income taxes
|
19,571
|
|
|
21,353
|
|
|
78,075
|
|
|
77,407
|
|
||||
Provision for income taxes
|
7,147
|
|
|
7,311
|
|
|
27,799
|
|
|
26,713
|
|
||||
Net income
|
$
|
12,424
|
|
|
$
|
14,042
|
|
|
$
|
50,276
|
|
|
$
|
50,694
|
|
Per share data:
|
|
|
|
|
|
|
|
||||||||
Net income per common share, basic
|
$
|
0.49
|
|
|
$
|
0.54
|
|
|
$
|
1.99
|
|
|
$
|
1.90
|
|
Weighted-average shares outstanding, basic
|
25,262
|
|
|
25,863
|
|
|
25,311
|
|
|
26,741
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per common share, diluted
|
$
|
0.49
|
|
|
$
|
0.54
|
|
|
$
|
1.97
|
|
|
$
|
1.88
|
|
Weighted-average shares outstanding, diluted
|
25,400
|
|
|
25,967
|
|
|
25,458
|
|
|
26,908
|
|
See accompanying notes to these condensed consolidated financial statements.
|
|
Quarter ended
|
|
Nine months ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
12,424
|
|
|
$
|
14,042
|
|
|
$
|
50,276
|
|
|
$
|
50,694
|
|
Foreign currency translation adjustment
|
4,762
|
|
|
10,288
|
|
|
(4,801
|
)
|
|
(12,667
|
)
|
||||
Comprehensive income
|
$
|
17,186
|
|
|
$
|
24,330
|
|
|
$
|
45,475
|
|
|
$
|
38,027
|
|
See accompanying notes to these condensed consolidated financial statements.
|
|
Nine months ended
|
||||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
50,276
|
|
|
$
|
50,694
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
18,692
|
|
|
12,570
|
|
||
Amortization of debt issuance costs
|
223
|
|
|
223
|
|
||
Provision for doubtful accounts
|
5,632
|
|
|
2,803
|
|
||
Share-based compensation
|
4,862
|
|
|
5,194
|
|
||
Deferred income taxes
|
455
|
|
|
7,248
|
|
||
Excess tax benefits from share-based payment arrangements
|
(88
|
)
|
|
(101
|
)
|
||
Change in fair value of contingent consideration
|
3,921
|
|
|
4,520
|
|
||
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
||||
Accounts receivable
|
7,022
|
|
|
52,327
|
|
||
Inventories
|
41,509
|
|
|
(7,736
|
)
|
||
Prepaid expenses and other assets
|
(8,125
|
)
|
|
(312
|
)
|
||
Other non-current assets
|
(32
|
)
|
|
(1,571
|
)
|
||
Accounts payable
|
(54,378
|
)
|
|
(108,896
|
)
|
||
Accrued expenses and other liabilities
|
11,720
|
|
|
8,005
|
|
||
Income taxes payable
|
2,435
|
|
|
(656
|
)
|
||
Net cash provided by (used in) operating activities
|
84,124
|
|
|
24,312
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(6,445
|
)
|
|
(9,120
|
)
|
||
Cash paid for business acquisitions, net of cash acquired
|
(83,804
|
)
|
|
(61,475
|
)
|
||
Payments for acquisition of intangible assets
|
(3,583
|
)
|
|
—
|
|
||
Net cash provided by (used in) investing activities
|
(93,832
|
)
|
|
(70,595
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings on revolving credit
|
1,305,922
|
|
|
1,058,720
|
|
||
Repayments on revolving credit
|
(1,268,846
|
)
|
|
(985,079
|
)
|
||
Repayments on long-term debt
|
—
|
|
|
(2,019
|
)
|
||
Repayments on capital lease obligation
|
(184
|
)
|
|
(162
|
)
|
||
Contingent consideration payments
|
(10,241
|
)
|
|
(7,286
|
)
|
||
Exercise of stock options
|
4,770
|
|
|
3,816
|
|
||
Repurchase of common stock
|
(20,882
|
)
|
|
(98,414
|
)
|
||
Excess tax benefits from share-based payment arrangements
|
88
|
|
|
101
|
|
||
Net cash provided by (used in) financing activities
|
10,627
|
|
|
(30,323
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(132
|
)
|
|
(4,191
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
787
|
|
|
(80,797
|
)
|
||
Cash and cash equivalents at beginning of period
|
61,400
|
|
|
121,646
|
|
||
Cash and cash equivalents at end of period
|
$
|
62,187
|
|
|
$
|
40,849
|
|
|
|
|
|
||||
See accompanying notes to these condensed consolidated financial statements.
|
|
Quarter ended
|
|
Nine months ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in thousands, except per share data)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
12,424
|
|
|
$
|
14,042
|
|
|
$
|
50,276
|
|
|
$
|
50,694
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares, basic
|
25,262
|
|
|
25,863
|
|
|
25,311
|
|
|
26,741
|
|
||||
Dilutive effect of share-based payments
|
138
|
|
|
104
|
|
|
147
|
|
|
167
|
|
||||
Weighted-average shares, diluted
|
25,400
|
|
|
25,967
|
|
|
25,458
|
|
|
26,908
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per common share, basic
|
$
|
0.49
|
|
|
$
|
0.54
|
|
|
$
|
1.99
|
|
|
$
|
1.90
|
|
Net income per common share, diluted
|
$
|
0.49
|
|
|
$
|
0.54
|
|
|
$
|
1.97
|
|
|
$
|
1.88
|
|
|
March 31,
2017 |
|
June 30,
2016 |
||||
|
(in thousands)
|
||||||
Foreign currency translation adjustment
|
$
|
(77,488
|
)
|
|
$
|
(72,687
|
)
|
Accumulated other comprehensive income (loss)
|
$
|
(77,488
|
)
|
|
$
|
(72,687
|
)
|
|
|
|
|
|
Quarter ended March 31,
|
|
Nine months ended March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in thousands)
|
||||||||||||||
Tax expense (benefit)
|
$
|
(271
|
)
|
|
$
|
(1,264
|
)
|
|
$
|
(179
|
)
|
|
$
|
1,723
|
|
|
|
|
|
|
|
|
|
|
KBZ
|
||
|
(in thousands)
|
||
Receivables, net
|
$
|
63,131
|
|
Inventory
|
11,227
|
|
|
Other Current Assets
|
10,303
|
|
|
Property and equipment, net
|
677
|
|
|
Goodwill
|
21,639
|
|
|
Identifiable intangible assets
|
18,400
|
|
|
Other non-current assets
|
1,399
|
|
|
|
$
|
126,776
|
|
Accounts payable
|
$
|
48,271
|
|
Accrued expenses and other current liabilities
|
14,863
|
|
|
Other long-term liabilities
|
2,167
|
|
|
Consideration transferred, net of cash acquired
|
61,475
|
|
|
|
$
|
126,776
|
|
|
Intelisys
|
||
|
(in thousands)
|
||
Receivables, net
|
$
|
21,655
|
|
Other current assets
|
1,547
|
|
|
Property and equipment, net
|
5,298
|
|
|
Goodwill
|
109,005
|
|
|
Identifiable intangible assets
|
63,110
|
|
|
Other non-current assets
|
1,839
|
|
|
|
$
|
202,454
|
|
Accounts payable
|
$
|
21,063
|
|
Accrued expenses and other current liabilities
|
2,587
|
|
|
Contingent consideration
|
95,000
|
|
|
Consideration transferred, net of cash acquired
|
83,804
|
|
|
|
$
|
202,454
|
|
|
Quarter ended March 31, 2017
|
|
Nine months ended March 31, 2017
|
||||
Net Sales
|
$
|
8,893
|
|
|
$
|
20,244
|
|
Amortization of intangible assets
|
1,586
|
|
|
3,701
|
|
||
Change in fair value of contingent consideration
|
3,289
|
|
|
6,457
|
|
||
Operating income (loss)
|
(656
|
)
|
|
(942
|
)
|
||
Net income (loss)
|
$
|
(403
|
)
|
|
$
|
(392
|
)
|
|
Quarter ended March 31, 2017
|
|
Nine months ended March 31, 2017
|
||||||||||||
|
(in thousands, except per share data)
|
|
(in thousands, except per share data)
|
||||||||||||
|
As Reported, Consolidated
|
|
Pro forma, Consolidated
(1)
|
|
As Reported, Consolidated
|
|
Pro forma, Consolidated
(2)
|
||||||||
Net Sales
|
$
|
813,538
|
|
|
$
|
813,538
|
|
|
$
|
2,650,895
|
|
|
$
|
2,656,111
|
|
Operating income
|
19,978
|
|
|
19,978
|
|
|
66,128
|
|
|
67,580
|
|
||||
Net Income
|
12,424
|
|
|
12,424
|
|
|
50,276
|
|
|
51,361
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.49
|
|
|
$
|
0.49
|
|
|
$
|
1.99
|
|
|
$
|
2.03
|
|
Diluted
|
$
|
0.49
|
|
|
$
|
0.49
|
|
|
$
|
1.97
|
|
|
$
|
2.02
|
|
|
Quarter ended March 31, 2016
|
|
Nine months ended March 31, 2016
|
||||||||||||
|
(in thousands, except per share data)
|
|
(in thousands, except per share data)
|
||||||||||||
|
As Reported, Consolidated
|
|
Pro forma, Consolidated
(3)
|
|
As Reported, Consolidated
|
|
Pro forma, Consolidated
(4)
|
||||||||
Net Sales
|
$
|
798,404
|
|
|
$
|
805,097
|
|
|
$
|
2,662,754
|
|
|
$
|
2,683,588
|
|
Operating income
|
21,647
|
|
|
22,112
|
|
|
77,939
|
|
|
81,483
|
|
||||
Net Income
|
14,042
|
|
|
14,296
|
|
|
50,694
|
|
|
52,768
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.54
|
|
|
$
|
0.55
|
|
|
$
|
1.90
|
|
|
$
|
1.97
|
|
Diluted
|
$
|
0.54
|
|
|
$
|
0.55
|
|
|
$
|
1.88
|
|
|
$
|
1.96
|
|
|
Barcode, Networking & Security Segment
|
|
Communications & Services Segment
|
|
Total
|
||||||
|
(in thousands)
|
||||||||||
Balance as of June 30, 2016
|
$
|
36,434
|
|
|
$
|
56,281
|
|
|
$
|
92,715
|
|
Additions
|
—
|
|
|
109,005
|
|
|
109,005
|
|
|||
Foreign currency translation adjustment
|
(234
|
)
|
|
(420
|
)
|
|
(654
|
)
|
|||
Balance as of March 31, 2017
|
$
|
36,200
|
|
|
$
|
164,866
|
|
|
$
|
201,066
|
|
|
Net Identifiable Intangible Assets
|
||
|
(in thousands)
|
||
Balance as of June 30, 2016
|
$
|
51,127
|
|
Additions
|
66,693
|
|
|
Amortization expense
|
(11,537
|
)
|
|
Foreign currency translation adjustment
|
(705
|
)
|
|
Balance as of March 31, 2017
|
$
|
105,578
|
|
|
Quarter ended
|
|
Nine months ended
|
||||||||||||
|
March 31,
|
|
March 31,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in thousands)
|
||||||||||||||
Net foreign exchange derivative contract (gains) losses
|
$
|
735
|
|
|
$
|
286
|
|
|
$
|
(225
|
)
|
|
$
|
(2,014
|
)
|
Net foreign currency transactional and re-measurement (gains) losses
|
(24
|
)
|
|
67
|
|
|
1,856
|
|
|
3,622
|
|
||||
Net foreign currency (gains) losses
|
$
|
711
|
|
|
$
|
353
|
|
|
$
|
1,631
|
|
|
$
|
1,608
|
|
|
As of March 31, 2017
|
||||||
|
Fair Value of
Derivatives
Designated as Hedge
Instruments
|
|
Fair Value of
Derivatives
Not Designated as Hedge
Instruments
|
||||
|
(in thousands)
|
||||||
Derivative assets:
(a)
|
|
|
|
||||
Forward foreign currency exchange contracts
|
$
|
—
|
|
|
$
|
614
|
|
Derivative liabilities:
(b)
|
|
|
|
||||
Forward foreign currency exchange contracts
|
$
|
—
|
|
|
$
|
274
|
|
(a)
|
All derivative assets are recorded as prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.
|
(b)
|
All derivative liabilities are recorded as accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.
|
•
|
Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
•
|
Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
|
•
|
Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).
|
|
Total
|
|
Quoted
prices in
active
markets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan investments, current and non-current portion
|
$
|
20,763
|
|
|
$
|
20,763
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward foreign currency exchange contracts
|
614
|
|
|
—
|
|
|
614
|
|
|
—
|
|
||||
Total assets at fair value
|
$
|
21,377
|
|
|
$
|
20,763
|
|
|
$
|
614
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan investments, current and non-current portion
|
$
|
20,398
|
|
|
$
|
20,398
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward foreign currency exchange contracts
|
274
|
|
|
—
|
|
|
274
|
|
|
—
|
|
||||
Liability for contingent consideration, current and non-current portion
|
113,223
|
|
|
—
|
|
|
—
|
|
|
113,223
|
|
||||
Total liabilities at fair value
|
$
|
133,895
|
|
|
$
|
20,398
|
|
|
$
|
274
|
|
|
$
|
113,223
|
|
|
Total
|
|
Quoted
prices in
active
markets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan investments, current and non-current portion
|
$
|
17,893
|
|
|
$
|
17,893
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward foreign currency exchange contracts
|
33
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||
Total assets at fair value
|
$
|
17,926
|
|
|
$
|
17,893
|
|
|
$
|
33
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan investments, current and non-current portion
|
$
|
17,893
|
|
|
$
|
17,893
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward foreign currency exchange contracts
|
551
|
|
|
—
|
|
|
551
|
|
|
—
|
|
||||
Liability for contingent consideration, current and non-current portion
|
24,652
|
|
|
—
|
|
|
—
|
|
|
24,652
|
|
||||
Total liabilities at fair value
|
$
|
43,096
|
|
|
$
|
17,893
|
|
|
$
|
551
|
|
|
$
|
24,652
|
|
|
Contingent consideration for the quarter ended
|
|
Contingent consideration for the nine months ended
|
||||
|
March 31, 2017
|
|
March 31, 2017
|
||||
|
Communications & Services Segment
|
|
Communications & Services Segment
|
||||
|
(in thousands)
|
||||||
Fair value at beginning of period
|
$
|
110,880
|
|
|
$
|
24,652
|
|
Issuance of contingent consideration
|
—
|
|
|
95,000
|
|
||
Payments
|
—
|
|
|
(10,241
|
)
|
||
Change in fair value of contingent consideration
|
1,960
|
|
|
3,921
|
|
||
Foreign currency translation adjustment
|
383
|
|
|
(109
|
)
|
||
Fair value at end of period
|
$
|
113,223
|
|
|
$
|
113,223
|
|
|
Contingent consideration for the quarter ended
|
|
Contingent consideration for the nine months ended
|
||||||||||||||||||||
|
March 31, 2016
|
|
March 31, 2016
|
||||||||||||||||||||
|
Barcode, Networking & Security Segment
|
|
Communications & Services Segment
|
|
Total
|
|
Barcode, Networking & Security Segment
|
|
Communications & Services Segment
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Fair value at beginning of period
|
$
|
1,156
|
|
|
$
|
22,844
|
|
|
$
|
24,000
|
|
|
$
|
5,109
|
|
|
$
|
28,851
|
|
|
$
|
33,960
|
|
Payments
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,133
|
)
|
|
(4,153
|
)
|
|
(7,286
|
)
|
||||||
Change in fair value of contingent consideration
|
—
|
|
|
1,139
|
|
|
1,139
|
|
|
126
|
|
|
4,394
|
|
|
4,520
|
|
||||||
Foreign currency translation adjustment
|
113
|
|
|
1,889
|
|
|
2,002
|
|
|
(833
|
)
|
|
(3,220
|
)
|
|
(4,053
|
)
|
||||||
Fair value at end of period
|
$
|
1,269
|
|
|
$
|
25,872
|
|
|
$
|
27,141
|
|
|
$
|
1,269
|
|
|
$
|
25,872
|
|
|
$
|
27,141
|
|
•
|
estimated future results, net of pro forma adjustments set forth in the purchase agreements;
|
•
|
the probability of achieving these results; and
|
•
|
a discount rate reflective of the Company’s creditworthiness and market risk premium associated with the United States, Brazilian and European markets.
|
Reporting Period
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Weighted Average Rates
|
|
March 31, 2017
|
|
Discounted cash flow
|
|
Weighted average cost of capital
|
|
15.2
|
%
|
|
|
|
|
Adjusted EBITDA growth rate
|
|
44.3
|
%
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
Discounted cash flow
|
|
Weighted average cost of capital
|
|
17.7
|
%
|
|
|
|
|
Adjusted EBITDA growth rate
|
|
44.0
|
%
|
|
March 31, 2017
|
|
June 30, 2016
|
||||
|
(in thousands)
|
||||||
Assets:
|
|
|
|
||||
Worldwide Barcode, Networking & Security
|
$
|
807,219
|
|
|
$
|
836,674
|
|
Worldwide Communications & Services
|
759,010
|
|
|
595,781
|
|
||
Corporate
|
65,587
|
|
|
58,730
|
|
||
|
$
|
1,631,816
|
|
|
$
|
1,491,185
|
|
Property and equipment, net by Geography Category:
|
|
|
|
||||
United States
|
$
|
51,614
|
|
|
$
|
46,935
|
|
International
|
4,795
|
|
|
5,453
|
|
||
|
$
|
56,409
|
|
|
$
|
52,388
|
|
|
March 31, 2017
|
||||||
|
CDC
|
|
Network1
|
||||
|
(in thousands)
|
||||||
Assets
|
|
|
|
||||
Prepaid expenses and other current assets
|
$
|
2,309
|
|
|
$
|
1,351
|
|
Other non-current assets
|
$
|
—
|
|
|
$
|
8,598
|
|
Liabilities
|
|
|
|
||||
Accrued expenses and other current liabilities
|
$
|
2,309
|
|
|
$
|
1,351
|
|
Other long-term liabilities
|
$
|
—
|
|
|
$
|
8,598
|
|
|
June 30, 2016
|
||||||
|
CDC
|
|
Network1
|
||||
|
(in thousands)
|
||||||
Assets
|
|
|
|
||||
Prepaid expenses and other current assets
|
$
|
2,346
|
|
|
$
|
595
|
|
Other non-current assets
|
$
|
—
|
|
|
$
|
9,837
|
|
Liabilities
|
|
|
|
||||
Accrued expenses and other current liabilities
|
$
|
2,346
|
|
|
$
|
595
|
|
Other long-term liabilities
|
$
|
—
|
|
|
$
|
9,837
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Quarter ended March 31,
|
|
|
|
% Change, Constant Currency, Excluding Acquisitions
(a)
|
||||||||||||
Net Sales by Segment:
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|||||||||
|
(in thousands)
|
|
|
|
|
||||||||||||
Worldwide Barcode, Networking & Security
|
$
|
548,971
|
|
|
$
|
528,009
|
|
|
$
|
20,962
|
|
|
4.0
|
%
|
|
3.4
|
%
|
Worldwide Communications & Services
|
264,567
|
|
|
270,395
|
|
|
(5,828
|
)
|
|
(2.2
|
)%
|
|
(6.8
|
)%
|
|||
Total net sales
|
$
|
813,538
|
|
|
$
|
798,404
|
|
|
$
|
15,134
|
|
|
1.9
|
%
|
|
(0.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine months ended March 31,
|
|
|
|
% Change, Constant Currency, Excluding Acquisitions
(a)
|
||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|||||||||||
Worldwide Barcode, Networking & Security
|
$
|
1,770,015
|
|
|
$
|
1,780,324
|
|
|
$
|
(10,309
|
)
|
|
(0.6
|
)%
|
|
(4.8
|
)%
|
Worldwide Communications & Services
|
880,880
|
|
|
882,430
|
|
|
(1,550
|
)
|
|
(0.2
|
)%
|
|
(3.3
|
)%
|
|||
Total net sales
|
$
|
2,650,895
|
|
|
$
|
2,662,754
|
|
|
$
|
(11,859
|
)
|
|
(0.4
|
)%
|
|
(4.3
|
)%
|
|
Quarter ended March 31,
|
|
|
|||||||||||
Net Sales by Geography:
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
(in thousands)
|
|
|
|||||||||||
United States
|
$
|
613,157
|
|
|
$
|
591,663
|
|
|
$
|
21,494
|
|
|
3.6
|
%
|
International
|
$
|
200,381
|
|
|
$
|
206,741
|
|
|
(6,360
|
)
|
|
(3.1
|
)%
|
|
Total net sales
|
$
|
813,538
|
|
|
$
|
798,404
|
|
|
$
|
15,134
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
|
Nine months ended March 31,
|
|
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
(in thousands)
|
|
|
|||||||||||
United States
|
$
|
1,990,784
|
|
|
$
|
1,969,236
|
|
|
$
|
21,548
|
|
|
1.1
|
%
|
International
|
660,111
|
|
|
693,518
|
|
|
(33,407
|
)
|
|
(4.8
|
)%
|
|||
Total net sales
|
$
|
2,650,895
|
|
|
$
|
2,662,754
|
|
|
$
|
(11,859
|
)
|
|
(0.4
|
)%
|
|
Quarter ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Worldwide Barcode, Networking & Security
|
$
|
45,850
|
|
|
$
|
45,740
|
|
|
$
|
110
|
|
|
0.2
|
%
|
|
8.4
|
%
|
|
8.7
|
%
|
Worldwide Communications & Services
|
46,821
|
|
|
38,736
|
|
|
8,085
|
|
|
20.9
|
%
|
|
17.7
|
%
|
|
14.3
|
%
|
|||
Gross profit
|
$
|
92,671
|
|
|
$
|
84,476
|
|
|
$
|
8,195
|
|
|
9.7
|
%
|
|
11.4
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine months ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Worldwide Barcode, Networking & Security
|
$
|
144,057
|
|
|
$
|
149,999
|
|
|
$
|
(5,942
|
)
|
|
(4.0
|
)%
|
|
8.1
|
%
|
|
8.4
|
%
|
Worldwide Communications & Services
|
138,683
|
|
|
122,662
|
|
|
16,021
|
|
|
13.1
|
%
|
|
15.7
|
%
|
|
13.9
|
%
|
|||
Gross profit
|
$
|
282,740
|
|
|
$
|
272,661
|
|
|
$
|
10,079
|
|
|
3.7
|
%
|
|
10.7
|
%
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Selling, general and administrative expenses
|
$
|
70,733
|
|
|
$
|
61,690
|
|
|
$
|
9,043
|
|
|
14.7
|
%
|
|
8.7
|
%
|
|
7.7
|
%
|
Change in fair value of contingent consideration
|
1,960
|
|
|
1,139
|
|
|
821
|
|
|
72.1
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
|||
Operating expenses
|
$
|
72,693
|
|
|
$
|
62,829
|
|
|
$
|
9,864
|
|
|
15.7
|
%
|
|
8.9
|
%
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine months ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative expenses
|
$
|
212,691
|
|
|
$
|
190,202
|
|
|
$
|
22,489
|
|
|
11.8
|
%
|
|
8.0
|
%
|
|
7.1
|
%
|
Change in fair value of contingent consideration
|
3,921
|
|
|
4,520
|
|
|
(599
|
)
|
|
(13.3
|
)%
|
|
0.1
|
%
|
|
0.2
|
%
|
|||
Operating expenses
|
$
|
216,612
|
|
|
$
|
194,722
|
|
|
$
|
21,890
|
|
|
11.2
|
%
|
|
8.2
|
%
|
|
7.3
|
%
|
|
Quarter ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Worldwide Barcode, Networking & Security
|
$
|
11,175
|
|
|
$
|
11,160
|
|
|
$
|
15
|
|
|
0.1
|
%
|
|
2.0
|
%
|
|
2.1
|
%
|
Worldwide Communications & Services
|
8,803
|
|
|
10,516
|
|
|
(1,713
|
)
|
|
(16.3
|
)%
|
|
3.3
|
%
|
|
3.9
|
%
|
|||
Corporate
|
—
|
|
|
(29
|
)
|
|
29
|
|
|
nm*
|
|
|
nm*
|
|
|
nm*
|
|
|||
Operating income
|
$
|
19,978
|
|
|
$
|
21,647
|
|
|
$
|
(1,669
|
)
|
|
(7.7
|
)%
|
|
2.5
|
%
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine months ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Worldwide Barcode, Networking & Security
|
$
|
36,729
|
|
|
$
|
43,420
|
|
|
$
|
(6,691
|
)
|
|
(15.4
|
)%
|
|
2.1
|
%
|
|
2.4
|
%
|
Worldwide Communications & Services
|
30,232
|
|
|
34,830
|
|
|
(4,598
|
)
|
|
(13.2
|
)%
|
|
3.4
|
%
|
|
3.9
|
%
|
|||
Corporate
|
(833
|
)
|
|
(311
|
)
|
|
(522
|
)
|
|
nm*
|
|
|
nm*
|
|
|
nm*
|
|
|||
Operating income
|
$
|
66,128
|
|
|
$
|
77,939
|
|
|
$
|
(11,811
|
)
|
|
(15.2
|
)%
|
|
2.5
|
%
|
|
2.9
|
%
|
|
Quarter ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Interest expense
|
$
|
780
|
|
|
$
|
694
|
|
|
$
|
86
|
|
|
12.4
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Interest income
|
(1,040
|
)
|
|
(800
|
)
|
|
(240
|
)
|
|
30.0
|
%
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|||
Net foreign exchange (gains) losses
|
711
|
|
|
353
|
|
|
358
|
|
|
101.4
|
%
|
|
0.1
|
%
|
|
0.0
|
%
|
|||
Other, net
|
(44
|
)
|
|
47
|
|
|
(91
|
)
|
|
(193.6
|
)%
|
|
(0.0
|
)%
|
|
0.0
|
%
|
|||
Total other (income) expense, net
|
$
|
407
|
|
|
$
|
294
|
|
|
$
|
113
|
|
|
38.4
|
%
|
|
0.1
|
%
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine months ended March 31,
|
|
|
|
|
|
% of Net Sales March 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2017
|
|
2016
|
|||||||||
|
(in thousands)
|
|
|
|
|
|
|
|||||||||||||
Interest expense
|
$
|
2,281
|
|
|
$
|
1,684
|
|
|
$
|
597
|
|
|
35.5
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
Interest income
|
(2,948
|
)
|
|
(2,509
|
)
|
|
(439
|
)
|
|
17.5
|
%
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|||
Net foreign exchange (gains) losses
|
1,631
|
|
|
1,608
|
|
|
23
|
|
|
1.4
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|||
Other, net
|
(12,911
|
)
|
|
(251
|
)
|
|
(12,660
|
)
|
|
nm*
|
|
|
(0.7
|
)%
|
|
(0.0
|
)%
|
|||
Total other (income) expense, net
|
$
|
(11,947
|
)
|
|
$
|
532
|
|
|
$
|
(12,479
|
)
|
|
nm*
|
|
|
(0.7
|
)%
|
|
0.0
|
%
|
Net Sales by Segment:
|
|
|
|
|
|
|||||||||
|
Quarter ended March 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Worldwide Barcode, Networking & Security:
|
(in thousands)
|
|
|
|
|
|||||||||
Net sales, as reported
|
$
|
548,971
|
|
|
$
|
528,009
|
|
|
$
|
20,962
|
|
|
4.0
|
%
|
Foreign exchange impact
|
(3,130
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency
|
545,841
|
|
|
528,009
|
|
|
17,832
|
|
|
3.4
|
%
|
|||
Less: Acquisitions
|
—
|
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency excluding acquisitions
|
$
|
545,841
|
|
|
$
|
528,009
|
|
|
$
|
17,832
|
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Worldwide Communications & Services:
|
|
|
|
|
|
|
|
|||||||
Net sales, as reported
|
$
|
264,567
|
|
|
$
|
270,395
|
|
|
$
|
(5,828
|
)
|
|
(2.2
|
)%
|
Foreign exchange impact
|
(3,707
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency
|
260,860
|
|
|
270,395
|
|
|
(9,535
|
)
|
|
(3.5
|
)%
|
|||
Less: Acquisitions
|
(8,893
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency excluding acquisitions
|
$
|
251,967
|
|
|
$
|
270,395
|
|
|
$
|
(18,428
|
)
|
|
(6.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Consolidated:
|
|
|
|
|
|
|
|
|||||||
Net sales, as reported
|
$
|
813,538
|
|
|
$
|
798,404
|
|
|
$
|
15,134
|
|
|
1.9
|
%
|
Foreign exchange impact
(a)
|
(6,837
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency
|
806,701
|
|
|
798,404
|
|
|
8,297
|
|
|
1.0
|
%
|
|||
Less: Acquisitions
|
(8,893
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency excluding acquisitions
|
$
|
797,808
|
|
|
$
|
798,404
|
|
|
$
|
(596
|
)
|
|
(0.1
|
)%
|
|
|
|
|
|
|
|
|
|||||||
|
Nine months ended March 31,
|
|
|
|
|
|||||||||
Worldwide Barcode, Networking & Security:
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
(in thousands)
|
|
|
|
|
|||||||||
Net sales, as reported
|
$
|
1,770,015
|
|
|
$
|
1,780,324
|
|
|
$
|
(10,309
|
)
|
|
(0.6
|
)%
|
Foreign exchange impact
(a)
|
(9,510
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency
|
1,760,505
|
|
|
1,780,324
|
|
|
(19,819
|
)
|
|
(1.1
|
)%
|
|||
Less: Acquisitions
|
(99,332
|
)
|
|
(34,628
|
)
|
|
|
|
|
|||||
Net sales, constant currency excluding acquisitions
|
$
|
1,661,173
|
|
|
$
|
1,745,696
|
|
|
$
|
(84,523
|
)
|
|
(4.8
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Worldwide Communications & Services:
|
|
|
|
|
|
|
|
|||||||
Net sales, as reported
|
$
|
880,880
|
|
|
$
|
882,430
|
|
|
$
|
(1,550
|
)
|
|
(0.2
|
)%
|
Foreign exchange impact
(a)
|
(7,170
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency
|
873,710
|
|
|
882,430
|
|
|
(8,720
|
)
|
|
(1.0
|
)%
|
|||
Less: Acquisitions
|
(20,244
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency excluding acquisitions
|
$
|
853,466
|
|
|
$
|
882,430
|
|
|
$
|
(28,964
|
)
|
|
(3.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Consolidated:
|
|
|
|
|
|
|
|
|||||||
Net sales, as reported
|
$
|
2,650,895
|
|
|
$
|
2,662,754
|
|
|
$
|
(11,859
|
)
|
|
(0.4
|
)%
|
Foreign exchange impact
(a)
|
(16,680
|
)
|
|
—
|
|
|
|
|
|
|||||
Net sales, constant currency
|
2,634,215
|
|
|
2,662,754
|
|
|
(28,539
|
)
|
|
(1.1
|
)%
|
|||
Less: Acquisitions
|
(119,576
|
)
|
|
(34,628
|
)
|
|
|
|
|
|||||
Net sales, constant currency excluding acquisitions
|
$
|
2,514,639
|
|
|
$
|
2,628,126
|
|
|
$
|
(113,487
|
)
|
|
(4.3
|
)%
|
|
Quarter ended March 31, 2017
|
|
Quarter ended March 31, 2016
|
||||||||||||||||||||||||||||
|
Operating Income
|
|
Pre-Tax Income
|
|
Net Income
|
|
Diluted EPS
|
|
Operating Income
|
|
Pre-Tax Income
|
|
Net Income
|
|
Diluted EPS
|
||||||||||||||||
|
(in thousands, except per share data)
|
||||||||||||||||||||||||||||||
GAAP Measures
|
$
|
19,978
|
|
|
$
|
19,571
|
|
|
$
|
12,424
|
|
|
$
|
0.49
|
|
|
$
|
21,647
|
|
|
$
|
21,353
|
|
|
$
|
14,042
|
|
|
$
|
0.54
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of intangible assets
|
4,217
|
|
|
4,217
|
|
|
2,774
|
|
|
0.11
|
|
|
2,507
|
|
|
2,507
|
|
|
1,703
|
|
|
0.07
|
|
||||||||
Change in fair value of contingent consideration
|
1,960
|
|
|
1,960
|
|
|
1,194
|
|
|
0.05
|
|
|
1,139
|
|
|
1,139
|
|
|
748
|
|
|
0.03
|
|
||||||||
Acquisition costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
29
|
|
|
—
|
|
||||||||
Non-GAAP measures
|
$
|
26,155
|
|
|
$
|
25,748
|
|
|
$
|
16,392
|
|
|
$
|
0.65
|
|
|
$
|
25,322
|
|
|
$
|
25,028
|
|
|
$
|
16,522
|
|
|
$
|
0.64
|
|
|
Quarter ended March 31,
|
||||
|
2017
|
|
2016
|
||
Return on invested capital ratio, annualized
(a)
|
12.6
|
%
|
|
12.3
|
%
|
(a)
|
The annualized EBITDA amount is divided by days in the quarter times 365 days per year (366 during leap years). There were 90 days in the current quarter and 91 days in the prior-year quarter.
|
|
Quarter ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Reconciliation of net income to EBITDA:
|
|
||||||
Net income (GAAP)
|
$
|
12,424
|
|
|
$
|
14,042
|
|
Plus: interest expense
|
780
|
|
|
694
|
|
||
Plus: income taxes
|
7,147
|
|
|
7,311
|
|
||
Plus: depreciation and amortization
|
6,880
|
|
|
4,281
|
|
||
EBITDA (non-GAAP)
|
27,231
|
|
|
26,328
|
|
||
Plus: Change in fair value of contingent consideration
|
1,960
|
|
|
1,139
|
|
||
Plus: Acquisition costs
|
—
|
|
|
29
|
|
||
Adjusted EBITDA (numerator for ROIC) (non-GAAP)
|
$
|
29,191
|
|
|
$
|
27,496
|
|
|
Quarter ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Invested capital calculations:
|
|
||||||
Equity – beginning of the quarter
|
$
|
787,536
|
|
|
$
|
754,794
|
|
Equity – end of the quarter
|
808,719
|
|
|
757,374
|
|
||
Plus: Change in fair value of contingent consideration, net of tax
|
1,194
|
|
|
748
|
|
||
Plus: Acquisition costs, net of tax
(a)
|
—
|
|
|
29
|
|
||
Average equity
|
798,725
|
|
|
756,473
|
|
||
Average funded debt
(b)
|
137,597
|
|
|
146,213
|
|
||
Invested capital (denominator for ROIC) (non-GAAP)
|
$
|
936,322
|
|
|
$
|
902,686
|
|
(a)
|
Acquisition costs are nondeductible for tax purposes.
|
(b)
|
Average funded debt is calculated as the average daily amounts outstanding on our current and long-term interest-bearing debt.
|
|
Nine months ended
|
||||||
|
(in thousands)
|
||||||
Cash provided by (used in):
|
March 31, 2017
|
|
March 31, 2016
|
||||
Operating activities
|
$
|
84,124
|
|
|
$
|
24,312
|
|
Investing activities
|
(93,832
|
)
|
|
(70,595
|
)
|
||
Financing activities
|
10,627
|
|
|
(30,323
|
)
|
||
Effect of exchange rate change on cash and cash equivalents
|
(132
|
)
|
|
(4,191
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
$
|
787
|
|
|
$
|
(80,797
|
)
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
|
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
Description
|
|
|
10.1+
|
Amendment to Distribution Agreement with Avaya.
|
|
|
10.2+
|
Partner Hosted Cloud Services Amendment to Distribution Agreement with Avaya.
|
|
|
10.3
|
Severance Agreement and General Release by and between ScanSource, Inc. and John Ellsworth dated as of February 24, 2017 (incorporated by reference to Exhibit 10.1 of registrant’s Current Report filed with the SEC on Form 8-K on March 2, 2017).
|
|
|
10.4
|
Amended and Restated Credit Agreement (as amended) (incorporated by reference to Exhibit 10.1 of registrant’s Current Report filed with the SEC on Form 8-K on April 5, 2017).
|
|
|
31.1
|
Certification of the Chief Executive Officer, Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of the Chief Financial Officer, Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1
|
Certification of the Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.2
|
Certification of the Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets as of March 31, 2017 and June 30, 2016; (ii) the Condensed Consolidated Income Statement for the quarter and nine months ended March 31, 2017 and 2016; (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the quarter and nine months ended March 31, 2017 and 2016; (iv) the Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2017 and 2016; and (v) the Notes to the Condensed Consolidated Financial Statements.
|
|
|
+
|
Confidential treatment has been requested with respect to certain portions of this Exhibit, which portions have been omitted and filed separately with the Commission as part of an application for confidential treatment.
|
|
|
ScanSource, Inc.
|
|
|
|
|
|
/s/ MICHAEL L. BAUR
|
|
|
Michael L. Baur
|
Date:
|
May 9, 2017
|
Chief Executive Officer
(Principal Executive Officer)
|
|
|
/s/ GERALD LYONS
|
|
|
Gerald Lyons
|
Date:
|
May 9, 2017
|
Interim Chief Financial Officer, Senior Vice President, Corporate Controller and Principal Accounting Officer (Principal Accounting Officer)
|
Exhibit
Number
|
Description
|
|
|
10.1+
|
Amendment to Distribution Agreement with Avaya.
|
|
|
10.2+
|
Partner Hosted Cloud Services Amendment to Distribution Agreement with Avaya.
|
|
|
10.3
|
Severance Agreement and General Release by and between ScanSource, Inc. and John Ellsworth dated as of February 24, 2017 (incorporated by reference to Exhibit 10.1 of registrant’s Current Report filed with the SEC on Form 8-K on March 2, 2017).
|
|
|
10.4
|
Amended and Restated Credit Agreement (as amended) (incorporated by reference to Exhibit 10.1 of registrant’s Current Report filed with the SEC on Form 8-K on April 5, 2017).
|
|
|
31.1
|
Certification of the Chief Executive Officer, Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of the Chief Financial Officer, Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1
|
Certification of the Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.2
|
Certification of the Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets as of March 31, 2017 and June 30, 2016; (ii) the Condensed Consolidated Income Statement for the quarter and nine months ended March 31, 2017 and 2016; (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the quarter and nine months ended March 31, 2017 and 2016; (iv) the Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2017 and 2016; and (v) the Notes to the Condensed Consolidated Financial Statements.
|
|
|
+
|
Confidential treatment has been requested with respect to certain portions of this Exhibit, which portions have been omitted and filed separately with the Commission as part of an application for confidential treatment.
|
•
|
Offer Definition Version 1.7 for OnAvaya — Google Cloud Platform 1.1.1
|
1.
|
Avaya hereby authorizes Distributor to pass through the following termination provisions to KBG with respect to their purchase of OnAvaya-IPOCC Services as described in the quote numbers for the End Users listed above from Distributor as authorized under the Distributor Agreement:
|
2.
|
ENTIRE AGREEMENT.
Except as explicitly modified herein, all terms, conditions and provisions of the Agreement and amendments thereto, shall continue in full force and effect. In the event of any inconsistency or conflict between the Agreement and this Amendment, the terms, conditions and provisions of this Amendment shall govern and control. Capitalized terms used in this Amendment but not defined will have the meanings given them in the Agreement.
|
Avaya Inc.
|
ScanSource, Inc. d/b/a ScanSource Catalyst
|
Signature: /s/ Ryan McDowell
|
Signature: /s/ David Hertwig
|
Printed Name: Ryan McDowell
|
Printed Name: David Hertwig
|
Title: DCAM
|
Title: President, ScanSource Catalyst
|
Date: March 13, 2017
|
Date: 3/13/17
|
FOR DISTRIBUTOR:
|
FOR AVAYA:
|
ScanSource, Inc. dba ScanSource Catalyst
6 Logue Court
Greenville, SC 29615
United States
FASCIMILE:
Email:
chris.marlar@scansource.com
|
Attention: Vice President, Law
Avaya Inc.
4655 Great America Parkway
Santa Clara, CA 95054-1233
United States
FACSIMILE: 408-562-3749
Email:
lglnoticescomm@avaya.com
|
ScanSource, Inc. d/b/a ScanSource Catalyst
|
Avaya Inc.
|
By:
/s/ David Hertwig
|
By:
/s/ Gary M. Levy
|
Name
David Hertwig
|
Name
Gary M. Levy
|
Title:
President, ScanSource Catalyst
|
Title:
Vice President – US Channels
|
Date:
February 1, 2017
|
Date:
February 5, 2017
|
1.
|
I have reviewed this quarterly report on Form 10-Q of ScanSource, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Michael L. Baur
|
|
Michael L. Baur, Chief Executive Officer (Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of ScanSource, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Gerald Lyons
|
|
Gerald Lyons, Interim Chief Financial Officer, Senior Vice President, Corporate Controller and Principal Accounting Officer (Principal Accounting Officer)
|
1)
|
The Report fully complies with the requirements of §13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
May 9, 2017
|
/s/ Michael L. Baur
|
|
|
Michael L. Baur,
|
|
|
Chief Executive Officer
(Principal Executive Officer)
|
1)
|
The Report fully complies with the requirements of §13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); and
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
May 9, 2017
|
/s/ Gerald Lyons
|
|
|
Gerald Lyons
|
|
|
Interim Chief Financial Officer, Senior Vice President, Corporate Controller and Principal Accounting Officer (Principal Accounting Officer)
|