TECD
$85.09
Tech Data Cp
($1.47)
(1.70%)
Earnings Details
3rd Quarter October 2018
Thursday, November 29, 2018 6:00:00 AM
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Summary

Tech Data Sees Fourth Quarter Above Estimates

Tech Data Cp (TECD) reported 3rd Quarter October 2018 earnings of $3.02 per share on revenue of $9.3 billion. The consensus earnings estimate was $2.19 per share on revenue of $8.9 billion. Revenue grew 2.2% on a year-over-year basis.

The company said it expects fourth quarter earnings of $3.90 to $4.20 per share on revenue of $10.50 billion to $10.90 billion. The current consensus earnings estimate is $3.89 per share on revenue of $10.33 billion for the quarter ending January 31, 2019.

Tech Data Corp is a distributor of information technology (IT) products, logistics management and provides other value-added services.

Results
Reported Earnings
$3.02
Earnings Whisper
-
Consensus Estimate
$2.19
Reported Revenue
$9.34 Bil
Revenue Estimate
$8.87 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Tech Data Corporation Reports Third Quarter Fiscal Year 2019 Results

CLEARWATER, Fla., Nov. 29, 2018 /PRNewswire/ -- Tech Data (Nasdaq: TECD) (the "Company") today announced its financial results for the third quarter ended October 31, 2018.


 Third quarter ended October 31,

Nine months ended October 31,

($ in millions,
except per share amounts)

2018

2017

Y/Y
Change

2018

2017

Y/Y
Change

Net Sales

$9,340.0

$8,448.5

11%

$26,774.4

$23,564.4

14%








Operating income (GAAP)

$146.9

$79.6

85%

$327.7

$258.2

27%

Operating margin (GAAP)

1.57%

0.94%

63 bps

1.22%

1.10%

12 bps








Operating income (Non-GAAP)

$188.0

$135.7

39%

$447.0

$386.8

16%

Operating margin (Non-GAAP)

2.01%

1.61%

40 bps

1.67%

1.64%

3 bps








Net income (GAAP)

$114.2

$37.3

206%

$223.8

$115.4

94%

Net income (Non-GAAP)

$116.3

$76.7

52%

$264.8

$213.5

24%








EPS - diluted (GAAP)

$2.96

$0.97

205%

$5.80

$3.03

91%

EPS - diluted (Non-GAAP)

$3.02

$2.00

51%

$6.87

$5.60

23%


A reconciliation of GAAP to non-GAAP financial measures is presented in the financial tables of this press release.

This information is also available on the Investor Relations section of Tech Data's website at www.techdata.com/investor.

Financial Highlights for the Third Quarter Ended October, 31, 2018:

  • Net sales were $9.3 billion, an increase of 11 percent compared to the prior-year quarter. On a constant currency basis, net sales increased 12 percent.   
    • Americas: Net sales were $4.1 billion (44 percent of worldwide net sales), an increase of 13 percent. On a constant currency basis, net sales increased 14 percent.
    • Europe: Net sales were $4.9 billion (53 percent of worldwide net sales), an increase of 9 percent. On a constant currency basis, net sales increased 12 percent.
    • Asia Pacific: Net sales were $0.3 billion (3 percent of worldwide net sales), an increase of 6 percent. On a constant currency basis, net sales increased 12 percent.
  • Gross profit was $556.6 million, an increase of $30.5 million, or 6 percent. As a percentage of net sales, gross profit was 5.96 percent compared to 6.23 percent in the prior-year quarter.  
  • Selling, general and administrative expenses ("SG&A") were $396.7 million, or 4.25 percent of net sales, compared to $416.8 million, or 4.93 percent of net sales in the prior-year quarter. Non-GAAP SG&A was $368.6 million, a decrease of $21.8 million, or 6 percent. As a percentage of net sales, non-GAAP SG&A was 3.95 percent, compared to 4.62 percent in the prior-year quarter. Included in SG&A and non-GAAP SG&A expenses is a $25 million benefit from the collection of a previously reserved accounts receivable.
  • Worldwide operating income was $146.9 million, or 1.57 percent of net sales compared to $79.6 million or 0.94 percent of net sales in the prior-year quarter. Non-GAAP operating income was $188.0 million, an increase of $52.3 million, or 39 percent. As a percentage of net sales, non-GAAP operating income was 2.01 percent, an improvement of 40 basis points.
    • Americas: Operating income was $112.4 million, or 2.72 percent of net sales, compared to $55.6 million, or 1.52 percent of net sales in the prior-year quarter. Non-GAAP operating income was $124.8 million, an increase of $39.3 million, or 46 percent. As a percentage of net sales, non-GAAP operating income was 3.01 percent, an improvement of 68 basis points.
    • Europe: Operating income was $39.9 million, or 0.81 percent of net sales, compared to $29.9 million, or 0.66 percent of net sales in the prior-year quarter. Non-GAAP operating income was $66.2 million, an increase of $12.8 million, or 24 percent. As a percentage of net sales, non-GAAP operating income was 1.34 percent, an improvement of 16 basis points.
    • Asia Pacific: Operating income was $2.7 million, or 0.97 percent of net sales, compared to $2.4 million, or 0.91 percent of net sales in the prior-year quarter. Non-GAAP operating income was $4.6 million, an increase of $0.7 million, or 18 percent. As a percentage of net sales, non-GAAP operating income was 1.64 percent, an improvement of 17 basis points.
    • Included in worldwide and Americas operating income and non-GAAP operating income is a $25 million benefit from the collection of a previously reserved accounts receivable.
    • Stock-based compensation expense was $8.1 million, compared to $8.3 million in the prior-year quarter. This includes $0.6 million of acquisition and integration-related stock compensation expense. These expenses are excluded from the regional operating results and presented as a separate line item in the company's segment reporting (see the GAAP to non-GAAP reconciliation in the financial tables of this press release).
  • Net income was $114.2 million, compared to $37.3 million in the prior-year quarter. Non-GAAP net income was $116.3 million, an increase of $39.6 million, or 52 percent. Included in net income and non-GAAP net income is an $18 million (net of tax) benefit from the collection of a previously reserved accounts receivable.
  • Earnings per share on a diluted basis ("EPS") were $2.96 compared to $0.97 in the prior year quarter. Non-GAAP EPS were $3.02, an increase of $1.02, or 51 percent compared to the prior-year quarter. Included in earnings per share and non-GAAP earnings per share is a $0.47 benefit from the collection of a previously reserved accounts receivable.
  • Net cash generated by operations during the quarter was $155 million.
  • Return on invested capital for the trailing twelve months was 8 percent, compared to 9 percent in the prior-year period. The adjusted return on invested capital for the trailing twelve month period was 12 percent, essentially flat from the prior-year period.

"I am pleased to report that our teams delivered a strong Q3 performance with great execution across our three regions. Worldwide sales grew 11 percent and we achieved high double-digit non-GAAP operating income and earnings per share growth. In addition, we generated $155 million in cash from operations, earned an adjusted return on invested capital of 12 percent, paid down $100 million of debt and returned $44 million to our shareholders through share repurchases," said Rich Hume, chief executive officer. "Our Q3 results reflect the powerful combination of our end-to-end portfolio and strong execution by our global teams. They also validate the strategic role we play in the IT Supply chain – delivering high value through our end-to-end portfolio to channel partners across the broad spectrum of IT products and solutions."

Business Outlook  

  • For the quarter ending January 31, 2019, the Company anticipates:
    • Worldwide net sales to be in the range of $10.5 billion to $10.9 billion
    • EPS to be in the range of $3.00 to $3.30 and non-GAAP EPS to be in the range of $3.90 to $4.20
    • An effective tax rate in the range of 24 percent to 26 percent
  • This guidance assumes an average U.S. dollar to euro exchange rate of $1.15 to €1.00.

Webcast Details

Tech Data will hold a conference call today at 9:00 a.m. (ET) to discuss its financial results for the third quarter ended October 31, 2018. A webcast of the call, including supplemental schedules, will be available to all interested parties and can be obtained at www.techdata.com/investor. The webcast will be available for replay for three months.

Non-GAAP Financial Information

The non-GAAP financial information contained in this release is included with the intention of providing investors a more complete understanding of the Company's operational results and trends, but should only be used in conjunction with results reported in accordance with Generally Accepted Accounting Principles ("GAAP"). Certain non-GAAP measures presented in this release or other releases, presentations and similar documents issued by the Company include sales, income or expense items as adjusted for the impact of changes in foreign currencies (referred to as "constant currency"), non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share and Adjusted Return on Invested Capital. Certain non-GAAP measures also exclude acquisition-related intangible assets amortization expense, benefits associated with legal settlements, acquisition, integration and restructuring expenses, value-added tax assessments and related interest expense, gain on disposal of subsidiary, tax indemnifications, acquisition-related financing expenses, changes in deferred tax valuation allowances and the impact of U.S. tax reform. A detailed reconciliation of the adjustments between results calculated using GAAP and non-GAAP in this release is contained in the attached financial schedules. This information can also be obtained from the Company's Investor Relations website at www.techdata.com/investor.

Forward-Looking Statements 

Certain statements in this communication may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding Tech Data's plans, objectives, expectations and intentions, Tech Data's financial results and estimates and/or business prospects, involve a number of risks and uncertainties, and actual results could differ materially from those projected. These forward looking statements are based on current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Tech Data operates, and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward looking statements. In addition, any statements that refer to projections of Tech Data's future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward looking statements. These forward looking statements are only predictions and are subject to risks, uncertainties, and assumptions. Therefore, actual results may differ materially and adversely from those expressed in any forward looking statements.

For additional information with respect to risks and other factors which could occur, see Tech Data's Annual Report on Form 10-K for the year ended January 31, 2018, including Part I, Item 1A, "Risk Factors" therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the "SEC") that are available at the SEC's website at www.sec.gov and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Many of these factors are beyond Tech Data's control. Unless otherwise required by applicable securities laws, Tech Data disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Tech Data undertakes no duty to update any forward looking statements contained herein to reflect actual results or changes in Tech Data's expectations.

About Tech Data  

Tech Data connects the world with the power of technology. Our end-to-end portfolio of products, services and solutions, highly specialized skills, and expertise in next-generation technologies enable channel partners to bring to market the products and solutions the world needs to connect, grow and advance. Tech Data is ranked No. 83 on the Fortune 500® and has been named one of Fortune's "World's Most Admired Companies" for nine straight years. To find out more, visit www.techdata.com or follow us on TwitterLinkedIn and Facebook.

Contacts:

Charles V. Dannewitz, Executive Vice President, Chief Financial Officer
727-532-8028 (chuck.dannewitz@techdata.com)

Arleen Quiñones, Corporate Vice President, Investor Relations and Corporate Communications
727-532-8866 (arleen.quinones@techdata.com

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)





Three months ended October 31


Nine months ended October 31


2018


2017


2018


2017




(As Adjusted1 )




(As Adjusted1 )

Net sales

$     9,340,029


$     8,448,471


$   26,774,449


$   23,564,444

Cost of products sold

8,783,425


7,922,390


25,167,698


22,065,684

Gross profit

556,604


526,081


1,606,751


1,498,760

Operating expenses:








Selling, general and administrative expenses

396,675


416,766


1,234,355


1,179,996

Acquisition, integration, and restructuring expenses

20,277


29,748


66,799


101,931

Legal settlements and other, net

(7,207)



(15,406)


(41,343)

Gain on disposal of subsidiary

(29)



(6,746)



409,716


446,514


1,279,002


1,240,584

Operating income

146,888


79,567


327,749


258,176

Interest expense

25,405


25,925


79,380


85,205

Other expense (income), net

4,961


(1,243)


7,779


(1,374)

Income before income taxes

116,522


54,885


240,590


174,345

Provision for income taxes

2,306


17,617


16,809


58,964

Net income

$        114,216


$          37,268


$        223,781


$        115,381









Earnings per share:








Basic

$              2.98


$              0.98


$              5.83


$              3.05

Diluted

$              2.96


$              0.97


$              5.80


$              3.03

Weighted average common shares outstanding:








Basic

38,358


38,186


38,357


37,877

Diluted

38,526


38,433


38,559


38,105









1Amounts have been adjusted to reflect the adoption of Accounting Standard Update 2014-09, Revenue from Contracts with Customers (ASC 606) on a full retrospective basis.

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In thousands, except par value and share amounts)

(Unaudited)







October 31


January 31,


2018


2018

ASSETS



(As Adjusted1 )





Current assets:




    Cash and cash equivalents

$           646,479


$           955,628

    Accounts receivable, net

5,995,247


6,035,716

    Inventories

3,201,213


2,965,521

    Prepaid expenses and other assets

342,328


403,548

       Total current assets

10,185,267


10,360,413

Property and equipment, net

268,304


279,091

Goodwill

932,409


969,168

Intangible assets, net

973,300


1,086,772

Other assets, net

200,323


224,915

       Total assets

$      12,559,603


$      12,920,359






LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




    Accounts payable

$        7,073,089


$        6,962,193

    Accrued expenses and other liabilities

1,054,585


1,169,986

    Revolving credit loans and current maturities of long-term debt, net

110,330


132,661

       Total current liabilities

8,238,004


8,264,840

Long-term debt, less current maturities

1,301,559


1,505,248

Other long-term liabilities

182,251


228,779

       Total liabilities

$        9,721,814


$        9,998,867





Shareholders' equity:




     Common stock, par value $0.0015; 200,000,000 shares authorized; 59,245,585

$                    89


$                    89

     shares issued at October 31, 2018 and January 31, 2018




     Additional paid-in capital

836,520


827,301

     Treasury stock, at cost (21,507,391 and 21,083,972 shares at October 31, 2018




     and January 31, 2018)

(975,090)


(940,124)

     Retained earnings

2,969,715


2,745,934

     Accumulated other comprehensive income

6,555


288,292

       Total shareholders' equity

2,837,789


2,921,492

       Total liabilities and shareholders' equity

$      12,559,603


$      12,920,359






1Amounts have been adjusted to reflect the adoption of Accounting Standard Update 2014-09, Revenue from

  Contracts with Customers (ASC 606) on a full retrospective basis.




 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)









Three months ended October 31,  2018




Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$   4,137,852


$   4,920,156


$       282,021




$    9,340,029

Operating income (GAAP) (1)

$      112,399


$        39,889


$           2,739


$            (8,139)


$       146,888

Acquisition, integration and restructuring expenses

5,989


13,132


578


578


20,277

Acquisition-related intangible assets amortization expense

13,569


7,640


1,314




22,523

Tax indemnifications

-


5,541


-




5,541

Gain on disposal of subsidiary

-


(29)


-




(29)

Legal settlements and other, net

(7,207)


-


-




(7,207)

Total non-GAAP operating income adjustments

$        12,351


$        26,284


$           1,892


$                 578


$         41,105

Operating income (non-GAAP)

$      124,750


$        66,173


$           4,631


$            (7,561)


$       187,993

Operating margin (GAAP)

2.72%


0.81%


0.97%




1.57%

Operating margin (non-GAAP)

3.01%


1.34%


1.64%




2.01%











(1) GAAP operating income does not include stock compensation expense at the regional level. 




























Three months ended October 31,  2017




Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$   3,663,498


$   4,518,669


$       266,304




$    8,448,471

Operating income (GAAP) (1)

$        55,551


$        29,909


$           2,432


$            (8,325)


$         79,567

Acquisition, integration and restructuring expenses

14,149


14,128


287


1,184


29,748

Acquisition-related intangible assets amortization expense

15,816


9,362


1,207




26,385

Total non-GAAP operating income adjustments

$        29,965


$        23,490


$           1,494


$              1,184


$         56,133

Operating income (non-GAAP)

$        85,516


$        53,399


$           3,926


$            (7,141)


$       135,700

Operating margin (GAAP)

1.52%


0.66%


0.91%




0.94%

Operating margin (non-GAAP)

2.33%


1.18%


1.47%




1.61%











(1) GAAP operating income does not include stock compensation expense at the regional level. 





 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

 (In thousands)









Nine months ended October 31,  2018




Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$ 11,799,389


$ 14,130,985


$       844,075




$  26,774,449

Operating income (GAAP) (1)

$      261,671


$        86,292


$           3,480


$          (23,694)


$       327,749

Acquisition, integration and restructuring expenses

19,061


44,462


1,030


2,246


66,799

Acquisition-related intangible assets amortization expense

40,782


23,696


4,064




68,542

Tax indemnifications

-


6,451


(356)




6,095

Gain on disposal of subsidiary

-


(6,746)


-




(6,746)

Legal settlements and other, net

(15,406)


-


-




(15,406)

Total non-GAAP operating income adjustments

$        44,437


$        67,863


$           4,738


$              2,246


$       119,284

Operating income (non-GAAP)

$      306,108


$      154,155


$           8,218


$          (21,448)


$       447,033

Operating margin (GAAP)

2.22%


0.61%


0.41%




1.22%

Operating margin (non-GAAP)

2.59%


1.09%


0.97%




1.67%











(1) GAAP operating income does not include stock compensation expense at the regional level. 


















Nine months ended October 31,  2017




Americas (1)


Europe (1)


Asia Pacific (1)


Stock
Compensation
Expense


Consolidated

Net Sales

$ 10,568,516


$ 12,269,044


$       726,884




$  23,564,444

Operating income (GAAP) (1)

$      194,426


$        73,172


$         11,795


$          (21,217)


$       258,176

Acquisition, integration and restructuring expenses

58,573


40,385


432


2,541


101,931

Acquisition-related intangible assets amortization expense

38,330


26,075


3,584




67,989

Legal settlements and other, net

(42,659)


1,316


-




(41,343)

Total non-GAAP operating income adjustments

$        54,244


$        67,776


$           4,016


$              2,541


$       128,577

Operating income (non-GAAP)

$      248,670


$      140,948


$         15,811


$          (18,676)


$       386,753

Operating margin (GAAP)

1.84%


0.60%


1.62%




1.10%

Operating margin (non-GAAP)

2.35%


1.15%


2.18%




1.64%











(1) GAAP operating income does not include stock compensation expense at the regional level. 





 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)






Selling, general and administrative expenses ("SG&A")

Three months ended October 31


2018


2017

Net Sales

$                   9,340,029


$                   8,448,471

SG&A Expenses (GAAP)

$                      396,675


$                      416,766

Tax indemnifications

(5,541)


-

Acquisition-related intangible assets amortization expense

(22,523)


(26,385)

SG&A Expenses (non-GAAP)

$                      368,611


$                      390,381





SG&A Expenses (GAAP) %

4.25%


4.93%

SG&A Expenses (non-GAAP) %

3.95%


4.62%










Nine months ended October 31


2018


2017

Net Sales

$                 26,774,449


$                 23,564,444

SG&A Expenses (GAAP)

$                   1,234,355


$                   1,179,996

Tax indemnifications

(6,095)


-

Acquisition-related intangible assets amortization expense

(68,542)


(67,989)

SG&A Expenses (non-GAAP)

$                   1,159,718


$                   1,112,007





SG&A Expenses (GAAP) %

4.61%


5.01%

SG&A Expenses (non-GAAP) %

4.33%


4.72%







Three months ended October 31


2018


2017


Net Income

Diluted EPS


Net Income

Diluted EPS

GAAP Results

$114,216

$2.96


$37,268

$0.97

Legal settlements and other, net

(7,207)

(0.19)


-

-

Acquisition, integration and restructuring expenses

20,277

0.53


29,748

0.77

Acquisition-related intangible assets amortization expense

22,523

0.58


26,385

0.69

Gain on disposal of subsidiary

(29)

-


-

-

Tax indemnifications

5,541

0.14


-

-

Income tax effect of tax indemnifications

(5,541)

(0.14)


-

-

Income tax effect of other adjustments above

(8,798)

(0.23)


(16,652)

(0.43)

Income tax benefit from acquisition settlement

(207)

-


-

-

Change in deferred tax valuation allowances

(473)

(0.01)


-

-

Impact of US tax reform

(24,000)

(0.62)


-

-







Non-GAAP Results

$116,302

$3.02


$76,749

$2.00




Nine months ended October 31


2018


2017


Net Income

Diluted EPS


Net Income

Diluted EPS

GAAP Results

$223,781

$5.80


$115,381

$3.03

Legal settlements and other, net

(15,406)

(0.40)


(41,020)

(1.08)

Value added tax assessments and related interest expense

(928)

(0.02)


-

-

Acquisition, integration and restructuring expenses

66,799

1.73


101,931

2.68

Acquisition-related intangible assets amortization expense

68,542

1.78


67,989

1.78

Acquisition-related financing expenses

-

-


8,807

0.23

Gain on disposal of subsidiary

(6,746)

(0.17)


-

-

Tax indemnifications

6,095

0.16


-

-

Income tax effect of tax indemnifications

(6,095)

(0.16)


-

-

Income tax effect of other adjustments above

(31,110)

(0.81)


(39,548)

(1.04)

Income tax benefit from acquisition settlement

(13,046)

(0.34)


-

-

Change in deferred tax valuation allowances

(3,073)

(0.08)


-

-

Impact of US tax reform

(24,000)

(0.62)


-

-







Non-GAAP Results

$264,813

$6.87


$213,540

$5.60

 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(In thousands)



Return on Invested Capital (ROIC)



Twelve months ended October 31

TTM Net Operating Profit After Tax (NOPAT)*:

2018


2017

Operating income

$                      479,652


$                      361,293

Income taxes on operating income (1)

(184,189)


(94,679)

NOPAT

$                      295,463


$                      266,614





Average Invested Capital:




Short-term debt (5-qtr end average)

$                      117,542


$                      360,705

Long-term debt (5-qtr end average)

1,504,148


1,279,729

Shareholders' Equity (5-qtr end average)

2,840,505


2,439,925

Total average capital

4,462,195


4,080,359

Less: Cash (5-qtr end average)

(660,638)


(1,054,922)

Average invested capital less average cash

$                   3,801,557


$                   3,025,437

ROIC

8%


9%





* Trailing Twelve Months is abbreviated as TTM.




(1) Income taxes on operating income was calculated using the trailing twelve months effective tax rate.




Adjusted Return on Invested Capital (ROIC) 



Twelve months ended October 31

TTM Net Operating Profit After Tax (NOPAT), as adjusted*:

2018


2017

Non-GAAP operating income (1)

$                      662,984


$                      508,902

Income taxes on non-GAAP operating income (2)

(180,184)


(151,859)

NOPAT, as adjusted

$                      482,800


$                      357,043





Average Invested Capital, as adjusted:




Short-term debt (5-qtr end average)

$                      117,542


$                      360,705

Long-term debt (5-qtr end average)

1,504,148


1,279,729

Shareholders' Equity (5-qtr end average)

2,840,505


2,439,925

Tax effected impact of non-GAAP adjustments (3)

90,378


50,441

Total average capital, as adjusted

4,552,573


4,130,800

Less: Cash (5-qtr end average)

(660,638)


(1,054,922)

Average invested capital less average cash

$                   3,891,935


$                   3,075,878

Adjusted ROIC

12%


12%





* Trailing Twelve Months is abbreviated as TTM.




(1) Represents operating income as adjusted to exclude acquisition, integration and restructuring expenses, legal settlements and other, net, gain on disposal of subsidiary, value added tax assessments and acquisition-related intangible assets amortization expense.

(2)Income taxes on non-GAAP operating income was calculated using the trailing twelve months effective tax rate adjusted for the impact of non-GAAP adjustments during the respective periods.

(3)Represents the 5 quarter average of the year-to-date impact of non-GAAP adjustments.


 

 

TECH DATA CORPORATION AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION



Guidance Reconciliation 



Three months ending January 31, 2019


Low end of guidance range

High end of guidance range

Earnings per share - diluted

$3.00

$3.30

Acquisition, integration and restructuring expenses

0.59

0.59

Acquisition-related intangible assets amortization expense

0.61

0.61

Income tax effect of the above adjustments

(0.30)

(0.30)

Non-GAAP earnings per share - diluted

$3.90

$4.20

 

(PRNewsfoto/Tech Data Corporation)

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SOURCE Tech Data Corporation