ScanSource, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>ScanSource, Inc. has filed its quarterly report (10-Q) for the period ending December 31, 2023, providing an update on its financial performance and position.</b>

AI Summary

SCANSOURCE, INC. (SCSC) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. ScanSource, Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the fiscal quarter and year-to-date periods. Key financial statement information and disclosures are included. The report details financial activities and positions as of the specified dates. This is a standard quarterly filing for the company.

Why It Matters

For investors and stakeholders tracking SCANSOURCE, INC., this filing contains several important signals. Provides investors and analysts with up-to-date financial information to assess the company's performance and make informed investment decisions. This filing is crucial for understanding ScanSource's financial health, operational results, and any material changes since the last report.

Risk Assessment

Risk Level: low — SCANSOURCE, INC. shows low risk based on this filing. The filing is a routine 10-Q, which is a standard disclosure requirement for public companies and does not inherently indicate significant positive or negative developments.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to identify any specific trends or changes in ScanSource's business operations and financial health.

Key Numbers

• 2023-12-31 — Period End Date (Reported period end)
• 2024-02-06 — Filing Date (Date the report was filed)
• 2023-07-01 — Quarter Start Date (Start of the reporting quarter)
• 2023-09-30 — Q1 End Date (End of the first quarter of the fiscal year)
• 2022-12-31 — Prior Year Period End (End of the comparable prior year period)

Key Players & Entities

• SCANSOURCE, INC. (company) — Filer name
• SCSC (company) — Ticker symbol
• 20231231 (date) — Period of report
• 20240206 (date) — Filing date
• GREENVILLE (location) — Business address city
• SC (location) — Business address state

Forward-Looking Statements

• ScanSource will continue to file its quarterly reports on schedule. (SCANSOURCE, INC.) — high confidence, target: 2024-05-15

FAQ

Industry Context

ScanSource, Inc. operates in the wholesale distribution of computer and peripheral equipment and software industry.

Regulatory Implications

As a public company, ScanSource, Inc. is required to file quarterly reports (10-Q) with the Securities and Exchange Commission (SEC) to provide timely updates on its financial condition and operations.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow trends.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into business performance and outlook.
3. Examine any new risk factors or legal proceedings disclosed in the filing.

Key Dates

• 2023-12-31: Period End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-02-06: Filing Date — Date ScanSource, Inc. submitted its 10-Q to the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023, following previous filings such as the 10-Q for the period ending September 30, 2023, and the 10-K for the fiscal year ending June 30, 2023.

Filing Documents

• scsc-20231231.htm (10-Q) — 1627KB
• scansourceex31112312023.htm (EX-31.1) — 10KB
• scansourceex31212312023.htm (EX-31.2) — 10KB
• scansourceex32112312023.htm (EX-32.1) — 6KB
• scansourceex32212312023.htm (EX-32.2) — 6KB
• scsc-20231231_g1.jpg (GRAPHIC) — 7KB
• 0000918965-24-000007.txt (&nbsp;) — 7013KB
• scsc-20231231.xsd (EX-101.SCH) — 39KB
• scsc-20231231_cal.xml (EX-101.CAL) — 67KB
• scsc-20231231_def.xml (EX-101.DEF) — 155KB
• scsc-20231231_lab.xml (EX-101.LAB) — 577KB
• scsc-20231231_pre.xml (EX-101.PRE) — 364KB
• scsc-20231231_htm.xml (XML) — 1068KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Balance Sheets (unaudited) at December 31, 2023 and June 30, 2023 5 Condensed Consolidated Income Statements (unaudited) for the Quarters and Six Months Ended December 31 , 2023 and 2022 6 Condensed Consolidated Statements of Comprehensive Income (unaudited) for the Quarters and Six Months Ended December 31 , 2023 and 2022 7 Condensed Consolidated Statements of Shareholders' Equity (unaudited) for the Quarters and Six Months Ended December 31 , 2023 and 2022 8 Condensed Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended December 31 , 2023 and 2022 10 Notes to Condensed Consolidated Financial Statements (unaudited) 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 47

SIGNATURES

SIGNATURES 48 3 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures About Market Risk" sections and elsewhere herein. Words such as "expects," "anticipates," "believes," "intends," "plans," "hopes," "forecasts," "seeks," "estimates," "goals," "projects," "strategy," "future," "likely," "may," "should," and variations of such words and similar expressions generally identify such forward-looking statements. Any forward-looking statement made by us in this Form 10-Q is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by law, we expressly disclaim any obligation to update these forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors including, but not limited to the following factors, which are neither presented in order of importance nor weighted: macroeconomic conditions, including potential prolonged economic weakness, inflation and supply chain challenges, the failure to manage and implement the Company's organic growth strategy, credit risks involving the Company's larger customers and suppliers, changes in interest and exchange rates and regulatory regimes impacting the Company's international operations, risk to the Company's business from a cyber attack, a failure of the Company's IT systems, failure to hire and retain quality employees, loss of the Company's major customers, relationships with the Company's key suppliers and sales partners or a termination or a significant modification of the terms under which it operates with such suppliers and sales partners, changes in the Company's operating strategy and other f

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SCANSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share information) December 31, 2023 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 44,987 $ 36,178 Accounts receivable, less allowance of $ 19,243 at December 31, 2023 and $ 15,480 at June 30, 2023 662,799 753,236 Inventories 575,137 757,574 Prepaid expenses and other current assets 122,272 110,087 Total current assets 1,405,195 1,657,075 Property and equipment, net 36,546 37,379 Goodwill 208,214 216,706 Identifiable intangible assets, net 45,313 68,495 Deferred income taxes 19,478 17,764 Other non-current assets 66,059 70,750 Total assets $ 1,780,805 $ 2,068,169 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 540,642 $ 691,119 Accrued expenses and other current liabilities 58,460 78,892 Income taxes payable 3,653 9,875 Current portion of long-term debt 7,857 6,915 Total current liabilities 610,612 786,801 Deferred income taxes — 3,816 Long-term debt, net of current portion 139,899 144,006 Borrowings under revolving credit facility 20,878 178,980 Other long-term liabilities 55,815 49,268 Total liabilities 827,204 1,162,871 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, 25,154,469 and 24,844,203 shares issued and outstanding at December 31, 2023 and June 30, 2023, respectively 63,983 58,241 Retained earnings 984,836 936,678 Accumulated other comprehensive loss ( 95,218 ) ( 89,621 ) Total shareholders' equity 953,601 905,298 Total liabilities and shareholders' equity $ 1,780,805 $ 2,068,169 June 30, 2023 amounts are derived from audited consolidated financial statements. See accompanying notes to these condensed consolidated financial statements. 5 Table of Contents SCANSOURCE, INC. AND SUBSID

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