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TD SYNNEX Reports Fiscal 2023 Fourth Quarter and Full Year Results

  • Fiscal fourth quarter revenue of $14.4 billion, within the previously provided outlook of $14.0 - $15.0 billion.
  • Fiscal fourth quarter non-GAAP gross billings(1) of $19.7 billion, at the high end of the previously provided outlook of $18.5 - $19.7 billion.
  • Fiscal fourth quarter gross margin and non-GAAP gross margin(1) of 7.07%, up 55 bps and 44 bps, respectively, from the prior fiscal fourth quarter.
  • Fiscal fourth quarter net income of $188 million, and non-GAAP net income(1) of $286 million, exceeding the high end of the prior guidance range.
  • Fiscal fourth quarter diluted earnings per share (“EPS”) of $2.06, and non-GAAP diluted EPS(1) of $3.13, exceeding the high end of the prior guidance range by $0.23.
  • Fiscal 2023 cash provided by operations of $1.4 billion and free cash flow(1) of $1.3 billion, exceeding the previously provided free cash flow(1) outlook of $1 billion.
  • Returned $751 million to shareholders in fiscal 2023 in the form of share repurchases and dividends, up 213% from the prior year.
  • Announced that the Board of Directors has declared a Q1 dividend per share of $0.40, a 14% increase to the prior quarter.

 

TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2023.

Consolidated Financial Highlights for the Fiscal 2023 Fourth Quarter:

 
   

 

 

Q4 FY23

 

Q4 FY22

 

Net Change from Q4 FY22

 

Revenue ($M)

 

$

14,407.3

 

 

$

16,248.0

 

 

(11.3

) %

Non-GAAP gross billings ($M)(1)

 

$

19,744.4

 

 

$

20,913.0

 

 

(5.6

) %

Gross profit ($M)

 

$

1,018.6

 

 

$

1,059.7

 

 

(3.9

) %

Non-GAAP gross profit ($M)(1)

 

$

1,018.6

 

 

$

1,077.4

 

 

(5.5

) %

Gross margin

 

 

7.07

%

 

 

6.52

%

 

55 bps

 

Non-GAAP gross margin(1)

 

 

7.07

%

 

 

6.63

%

 

44 bps

 

Operating income ($M)

 

$

286.8

 

 

$

334.2

 

 

(14.2

) %

Non-GAAP operating income ($M)(1)

 

$

426.6

 

 

$

495.6

 

 

(13.9

) %

Operating margin

 

 

1.99

%

 

 

2.06

%

 

(7) bps

 

Non-GAAP operating margin(1)

 

 

2.96

%

 

 

3.05

%

 

(9) bps

 

Net income ($M)

 

$

187.5

 

 

$

221.2

 

 

(15.2

) %

Non-GAAP net income ($M)(1)

 

$

285.6

 

 

$

329.8

 

 

(13.4

) %

Diluted EPS

 

$

2.06

 

 

$

2.31

 

 

(10.8

) %

Non-GAAP Diluted EPS(1)

 

$

3.13

 

 

$

3.44

 

 

(9.0

) %

“Excellent broad-based execution by our team, coupled with continued progress on our margin-accretive strategic initiatives enabled a strong close to the fiscal year,” said Rich Hume, CEO of TD SYNNEX. “We successfully navigated a challenging market environment in fiscal year 2023, generating robust free cash flow(1) of $1.3 billion and returning $751 million to shareholders. We are well-positioned to capitalize on the growth opportunities we expect in 2024, as the IT spending environment is anticipated to rebound.”

Consolidated Fiscal 2023 Fourth Quarter Highlights

  • Revenue was $14.4 billion, compared to $16.2 billion in the prior fiscal fourth quarter, representing a decrease of 11.3%. On a constant currency(1) basis, revenue decreased by 13.3% compared to the prior fiscal fourth quarter. The revenue change was primarily driven by a decline in our Endpoint Solutions portfolio as the industry continued to see post-pandemic declines in demand for PC ecosystem products. A greater percentage of our revenue was presented on a net basis due to changes in product mix, which negatively impacted our revenue compared to the prior fiscal fourth quarter by approximately 6%.
  • Non-GAAP gross billings(1) were $19.7 billion, compared to $20.9 billion in the prior fiscal fourth quarter.
  • Gross profit was $1,019 million, compared to $1,060 million in the prior fiscal fourth quarter. Non-GAAP gross profit(1) was $1,019 million, compared to $1,077 million in the prior fiscal fourth quarter.
  • Gross margin was 7.1%, compared to 6.5% in the prior fiscal fourth quarter. Non-GAAP gross margin(1) was 7.1%, compared to 6.6% in the prior fiscal fourth quarter. The presentation of additional revenues on a net basis positively impacted our gross margin and non-GAAP gross margin(1) by approximately 43 basis points.
  • Operating income was $287 million, compared to $334 million in the prior fiscal fourth quarter. Non-GAAP operating income(1) was $427 million, compared to $496 million in the prior fiscal fourth quarter.
  • Operating margin was 2.0%, compared to 2.1% in the prior fiscal fourth quarter. Non-GAAP operating margin(1) was 3.0%, compared to 3.1% in the prior fiscal fourth quarter.
  • Diluted EPS was $2.06, compared to $2.31 in the prior fiscal fourth quarter. Non-GAAP diluted EPS(1) was $3.13, compared to $3.44 in the prior fiscal fourth quarter, and exceeding the high end of the prior guidance range by $0.23.
  • Cash provided by operations of $211 million, and free cash flow(1) of $168 million.
  • We returned $374 million to shareholders in the form of $343 million of share repurchases and $31 million of dividends.

Regional Fiscal 2023 Fourth Quarter Highlights

  • Americas:
    • Revenue was $8.4 billion, compared to $10.0 billion in the prior fiscal fourth quarter, representing a decrease of 16.8% on both a GAAP basis and a constant currency(1) basis. A greater percentage of our revenue was presented on a net basis due to changes in product mix, which negatively impacted our revenue compared to the prior fiscal fourth quarter by approximately 9%.
    • Operating income was $177 million, compared to $222 million in the prior fiscal fourth quarter. Non-GAAP operating income(1) was $278 million, compared to $324 million in the prior fiscal fourth quarter.
    • Operating margin was 2.1%, compared to 2.2% in the prior fiscal fourth quarter. Non-GAAP operating margin(1) was 3.3%, compared to 3.2% in the prior fiscal fourth quarter.
  • Europe:
    • Revenue was $5.2 billion, compared to $5.4 billion in the prior fiscal fourth quarter, representing a decrease of 3.0%. On a constant currency(1) basis, revenue decreased by 9.0% compared to the prior fiscal fourth quarter. A greater percentage of our revenue was presented on a net basis due to changes in product mix, which negatively impacted our revenue compared to the prior fiscal fourth quarter by approximately 4%
    • Operating income was $79 million, compared to $77 million in the prior fiscal fourth quarter. Non-GAAP operating income(1) was $117 million, compared to $135 million in the prior fiscal fourth quarter.
    • Operating margin was 1.5%, compared to 1.4% in the prior fiscal fourth quarter. Non-GAAP operating margin(1) was 2.2%, compared to 2.5% in the prior fiscal fourth quarter.
  • Asia-Pacific and Japan:
    • Revenue was $838 million, compared to $834 million in the prior fiscal fourth quarter, representing an increase of 0.5%. On a constant currency(1) basis, revenue increased by 1.3% compared to the prior fiscal fourth quarter.
    • Operating income was $31 million, compared to $35 million in the prior fiscal fourth quarter. Non-GAAP operating income(1) was $32 million, compared to $37 million in the prior fiscal fourth quarter.
    • Operating margin was 3.7%, compared to 4.2% in the prior fiscal fourth quarter. Non-GAAP operating margin(1) was 3.9%, compared to 4.5% in the prior fiscal fourth quarter.

Consolidated Financial Highlights for Fiscal 2023:

 
   

 

 

FY23

 

FY22

 

Net Change from FY22

 

Revenue ($M)

 

$

57,555.4

 

 

$

62,343.8

 

 

(7.7

) %

Non-GAAP gross billings ($M)(1)

 

$

77,246.1

 

 

$

80,633.2

 

 

(4.2

) %

Gross profit ($M)

 

$

3,956.8

 

 

$

3,900.2

 

 

1.5

%

Non-GAAP gross profit ($M)(1)

 

$

3,971.9

 

 

$

3,996.3

 

 

(0.6

) %

Gross margin

 

 

6.87

%

 

 

6.26

%

 

61 bps

 

Non-GAAP gross margin(1)

 

 

6.90

%

 

 

6.41

%

 

49 bps

 

Operating income ($M)

 

$

1,078.0

 

 

$

1,050.9

 

 

2.6

%

Non-GAAP operating income ($M)(1)

 

$

1,642.3

 

 

$

1,724.0

 

 

(4.7

) %

Operating margin

 

 

1.87

%

 

 

1.69

%

 

18 bps

 

Non-GAAP operating margin(1)

 

 

2.85

%

 

 

2.77

%

 

8 bps

 

Net income ($M)

 

$

626.9

 

 

$

651.3

 

 

(3.8

) %

Non-GAAP net income ($M)(1)

 

$

1,053.6

 

 

$

1,147.9

 

 

(8.2

) %

Diluted EPS

 

$

6.70

 

 

$

6.77

 

 

(1.0

) %

Non-GAAP Diluted EPS(1)

 

$

11.26

 

 

$

11.94

 

 

(5.7

) %

Consolidated Fiscal 2023 Highlights

  • Revenue was $57.6 billion, compared to $62.3 billion in the prior fiscal year, representing a decrease of 7.7%. On a constant currency(1) basis, revenue decreased by 7.5%, compared to the prior fiscal year. The revenue change was driven primarily by a decline in our Endpoint Solutions portfolio as the industry experienced a post-pandemic decline in demand for PC ecosystem products. A greater percentage of our revenue was presented on a net basis due to changes in product mix, which negatively impacted our revenue compared to the prior fiscal year by approximately 4%.
  • Non-GAAP gross billings(1) were $77.2 billion, compared to $80.6 billion in the prior fiscal year.
  • Gross profit was $4.0 billion, compared to $3.9 billion in the prior fiscal year. Non-GAAP gross profit(1) was $4.0 billion in both the current and prior fiscal year.
  • Gross margin was 6.9%, compared to 6.3% in the prior fiscal year. Non-GAAP gross margin(1) was 6.9%, compared to 6.4% in the prior fiscal year.
  • Operating income was $1,078 million, compared to $1,051 million in the prior fiscal year. Non-GAAP operating income(1) was $1.6 billion, compared to $1.7 billion in the prior fiscal year.
  • Operating margin was 1.9%, compared to 1.7% in the prior fiscal year. Non-GAAP operating margin(1) was 2.9%, compared to 2.8% in the prior fiscal year.
  • Diluted EPS was $6.70, compared to $6.77 in the prior fiscal year. Non-GAAP diluted EPS(1) was $11.26, compared to $11.94 in the prior fiscal year.
  • Cash provided by operations of $1.4 billion, and free cash flow(1) of $1.3 billion.
  • We returned $751 million to shareholders in the form of $621 million of share repurchases and $130 million of dividends.

Regional Fiscal 2023 Highlights

  • Americas:
    • Revenue was $34.6 billion, compared to $38.8 billion in the prior fiscal year, representing a decrease of 10.9%. On a constant currency(1) basis, revenue decreased by 10.5% compared to the prior fiscal year. A greater percentage of our revenue was presented on a net basis due to changes in product mix, which negatively impacted our revenue compared to the prior fiscal year by approximately 5%.
    • Operating income was $737 million, compared to $734 million in the prior fiscal year. Non-GAAP operating income(1) was $1,108 million, compared to $1,141 million in the prior fiscal year.
    • Operating margin was 2.1%, compared to 1.9% in the prior fiscal year. Non-GAAP operating margin(1) was 3.2%, compared to 2.9% in the prior fiscal year.
  • Europe:
    • Revenue was $19.4 billion, compared to $20.3 billion in the prior fiscal year, representing a decrease of 4.3%. On a constant currency(1) basis, revenue decreased by 5.1% compared to the prior fiscal year. A greater percentage of our revenue was presented on a net basis due to changes in product mix, which negatively impacted our revenue compared to the prior fiscal year by approximately 4%.
    • Operating income was $236 million, compared to $227 million in the prior fiscal year. Non-GAAP operating income(1) was $422 million, compared to $481 million in the prior fiscal year.
    • Operating margin was 1.2%, compared to 1.1% in the prior fiscal year. Non-GAAP operating margin(1) was 2.2%, compared to 2.4% in the prior fiscal year.
  • Asia-Pacific and Japan:
    • Revenue was $3.6 billion, compared to $3.3 billion in the prior fiscal year, representing an increase of 9.1%. On a constant currency(1) basis, revenue increased by 12.7% compared to the prior fiscal year.
    • Operating income was $105 million, compared to $90 million in the prior fiscal year. Non-GAAP operating income(1) was $113 million, compared to $102 million in the prior fiscal year.
    • Operating margin was 3.0%, compared to 2.7% in the prior fiscal year. Non-GAAP operating margin(1) was 3.2%, compared to 3.1% in the prior fiscal year.

Fiscal 2024 First Quarter Outlook

The following statements are based on TD SYNNEX’s current expectations for the fiscal 2024 first quarter. These statements are forward-looking and actual results may differ materially. Non-GAAP gross billings(1) include the impact of costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts, and the remaining non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, and the related tax effects thereon.

 

 

Q1 2024 Outlook

Revenue

 

$14.0 - $14.7 billion

Non-GAAP gross billings(1)

 

$19.0 - $20.0 billion

Net income

 

$147 - $192 million

Non-GAAP net income(1)

 

$232 - $277 million

Diluted earnings per share

 

$1.65 - $2.15

Non-GAAP diluted earnings per share(1)

 

$2.60 - $3.10

Estimated outstanding diluted weighted average shares

 

88.4 million

Dividend

TD SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.40 per common share, which represents a 14% increase as compared to the prior quarter. The dividend is payable on January 26, 2024 to stockholders of record as of the close of business on January 19, 2024.

Conference Call and Webcast

TD SYNNEX will host a conference call today to discuss the 2023 fiscal fourth quarter results at 6:00 AM (PT)/9:00 AM (ET).

A live audio webcast of the earnings call will be accessible at ir.tdsynnex.com and a replay of the webcast will be available following the call.

About TD SYNNEX

TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We’re an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in Fremont, California, and Clearwater, Florida, TD SYNNEX’s 23,000 co-workers are dedicated to uniting compelling IT products, services and solutions from 2,500+ best-in-class technology vendors. Our edge-to-cloud portfolio is anchored in some of the highest-growth technology segments including cloud, cybersecurity, big data/analytics, AI, IoT, mobility and everything as a service.

TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit TDSYNNEX.com or follow us on LinkedIn, Facebook and Instagram.

(1)Use of Non-GAAP Financial Information

In addition to the financial results presented in accordance with GAAP, TD SYNNEX refers to revenues on a constant currency basis which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our performance. Financial results adjusted for constant currency are calculated by translating current period activity using the comparable prior year periods’ currency conversion rate. TD SYNNEX uses non-GAAP gross billings, which adjusts revenues to exclude costs related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts. Non-GAAP gross billings are a useful non-GAAP metric in understanding the volume of our business activity and serve as an important performance metric in internally managing our operations. TD SYNNEX uses non-GAAP gross profit and non-GAAP gross margin which exclude purchase accounting adjustments. TD SYNNEX also uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, purchase accounting adjustments, legal settlements and other litigation, net, the related tax effects thereon and an income tax capital loss carryback benefit. Further, the Company uses adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) which excludes other income (expense), net, acquisition, integration and restructuring costs, share-based compensation expense and purchase accounting adjustments. In prior periods, TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures.

Acquisition, integration and restructuring costs, which are expensed as incurred, primarily represent professional services costs for legal, banking, consulting and advisory services, severance and other personnel-related costs, share-based compensation expense and debt extinguishment fees that are incurred in connection with acquisition, integration, restructuring, and divestiture activities. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses, costs related to long-lived assets including impairment charges and accelerated depreciation and amortization expense due to changes in asset useful lives, as well as various other costs associated with the acquisition or divestiture.

TD SYNNEX’s acquisition activities have resulted in the recognition of finite-lived intangible assets which consist primarily of customer relationships and vendor lists. Finite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company’s Statements of Operations. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company’s products. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.

Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees and non-employee members of the Company’s Board of Directors based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period.

Purchase accounting adjustments are primarily related to the impact of recognizing the acquired vendor and customer liabilities related to the merger with Tech Data at fair value. These adjustments benefited our non-GAAP operating income through the third fiscal quarter of fiscal 2023 based on historical settlement patterns with our vendors and in accordance with the timing defined in our policy for releasing vendor and customer liabilities we deem remote to be paid.

Legal settlements and other litigation, net includes a benefit recorded in other income (expense), net during the fourth quarter of fiscal 2022 resulting from a decrease in our accrual for a legal matter in France.

In connection with the merger with Tech Data, the Company restructured its foreign financing structure, as well as select legal entities in anticipation of legally integrating legacy Tech Data and SYNNEX foreign operations. In addition to the treasury efficiencies, these restructurings resulted in a one-time domestic capital loss which would offset certain domestic capital gains when carried back under United States tax law, resulting in an income tax capital loss carryback benefit.

Trailing fiscal four quarters ROIC is defined as the last four quarters’ tax effected operating income divided by the average of the last five quarterly balances of borrowings and equity, net of cash. Adjusted ROIC is calculated by excluding the tax effected impact of non-GAAP adjustments from operating income and by excluding the cumulative tax effected impact of current and prior period non-GAAP adjustments on equity.

TD SYNNEX also uses free cash flow, which is cash flow from operating activities, reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because, although it is similar to cash flow from operations, TD SYNNEX believes it is an additional useful measure of cash flows since purchases of property and equipment are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX’s liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations as it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire Consolidated Statements of Cash Flows.

TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX’s operational results and trends that more readily enable investors to analyze TD SYNNEX’s base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX’s Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release.

Safe Harbor Statement

Statements in this news release regarding TD SYNNEX that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are inherently uncertain, and shareholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of factors. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements about our strategy, demand, plans and positioning, capital allocation, as well as guidance related to the first quarter of 2024. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which TD SYNNEX is unable to predict or control, that may cause TD SYNNEX actual results, performance, or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements.

These risks and uncertainties include, but are not limited to: the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; general economic and political conditions; continued or increased weakness in information technology spending; seasonality; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; the timing and amount of returns to our shareholders via repurchases of our common stock and dividends; changes in foreign currency exchange rates; increased inflation; increased risk in the banking system; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any incidents of theft; the declaration, timing and payment of dividends, and the Board’s reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2022 and subsequent SEC filings. Statements included in this press release are based upon information known to TD SYNNEX as of the date of this release, and TD SYNNEX assumes no obligation to update information contained in this press release unless otherwise required by law.

Copyright 2024 TD SYNNEX CORPORATION. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks or registered trademarks of TD SYNNEX Corporation. Other names and marks are the property of their respective owners.

TD SYNNEX Corporation

Consolidated Balance Sheets

(Currency and share amounts in thousands, except par value)

(Amounts may not add or compute due to rounding)

(Unaudited)

 

 

 

November 30, 2023

 

November 30, 2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,033,776

 

 

$

522,604

 

Accounts receivable, net

 

 

10,297,814

 

 

 

9,420,999

 

Receivables from vendors, net

 

 

964,334

 

 

 

819,135

 

Inventories

 

 

7,146,274

 

 

 

9,066,620

 

Other current assets

 

 

642,238

 

 

 

671,507

 

Total current assets

 

 

20,084,436

 

 

 

20,500,865

 

Property and equipment, net

 

 

450,024

 

 

 

421,064

 

Goodwill

 

 

3,904,170

 

 

 

3,803,850

 

Intangible assets, net

 

 

4,244,314

 

 

 

4,422,877

 

Other assets, net

 

 

729,870

 

 

 

585,342

 

Total assets

 

$

29,412,814

 

 

$

29,733,998

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Borrowings, current

 

$

983,585

 

 

$

268,128

 

Accounts payable

 

 

13,347,281

 

 

 

13,988,980

 

Other accrued liabilities

 

 

2,407,896

 

 

 

2,171,613

 

Total current liabilities

 

 

16,738,762

 

 

 

16,428,721

 

Long-term borrowings

 

 

3,099,193

 

 

 

3,835,665

 

Other long-term liabilities

 

 

498,656

 

 

 

501,856

 

Deferred tax liabilities

 

 

893,021

 

 

 

942,250

 

Total liabilities

 

 

21,229,632

 

 

 

21,708,492

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding

 

 

 

 

 

 

Common stock, $0.001 par value, 200,000 shares authorized, 99,012 and 98,696 shares issued as of November 30, 2023 and November 30, 2022, respectively

 

 

99

 

 

 

99

 

Additional paid-in capital

 

 

7,435,274

 

 

 

7,374,100

 

Treasury stock, 10,343 and 4,049 shares as of November 30, 2023 and November 30, 2022, respectively

 

 

(949,714

)

 

 

(337,217

)

Accumulated other comprehensive loss

 

 

(507,248

)

 

 

(719,710

)

Retained earnings

 

 

2,204,771

 

 

 

1,708,234

 

Total stockholders' equity

 

 

8,183,182

 

 

 

8,025,506

 

Total liabilities and equity

 

$

29,412,814

 

 

$

29,733,998

 

TD SYNNEX Corporation

Consolidated Statements of Operations

(Currency and share amounts in thousands, except per share amounts)

(Amounts may not add or compute due to rounding)

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Revenue

 

$

14,407,306

 

 

$

16,247,957

 

 

$

57,555,416

 

 

$

62,343,810

 

Cost of revenue

 

 

(13,388,727

)

 

 

(15,188,238

)

 

 

(53,598,587

)

 

 

(58,443,611

)

Gross profit

 

 

1,018,579

 

 

 

1,059,719

 

 

 

3,956,829

 

 

 

3,900,199

 

Selling, general and administrative expenses

 

 

(685,187

)

 

 

(675,504

)

 

 

(2,672,562

)

 

 

(2,627,007

)

Acquisition, integration and restructuring costs

 

 

(46,638

)

 

 

(50,053

)

 

 

(206,235

)

 

 

(222,319

)

Operating income

 

 

286,754

 

 

 

334,162

 

 

 

1,078,032

 

 

 

1,050,873

 

Interest expense and finance charges, net

 

 

(66,130

)

 

 

(80,148

)

 

 

(288,318

)

 

 

(222,578

)

Other income (expense), net

 

 

6,485

 

 

 

11,210

 

 

 

(206

)

 

 

(1,165

)

Income before income taxes

 

 

227,109

 

 

 

265,224

 

 

 

789,508

 

 

 

827,130

 

Provision for income taxes

 

 

(39,567

)

 

 

(43,993

)

 

 

(162,597

)

 

 

(175,823

)

Net income

 

$

187,542

 

 

$

221,231

 

 

$

626,911

 

 

$

651,307

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

2.06

 

 

$

2.31

 

 

$

6.72

 

 

$

6.79

 

Diluted

 

$

2.06

 

 

$

2.31

 

 

$

6.70

 

 

$

6.77

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

90,077

 

 

 

94,839

 

 

 

92,572

 

 

 

95,225

 

Diluted

 

 

90,371

 

 

 

95,102

 

 

 

92,853

 

 

 

95,509

 

TD SYNNEX Corporation

Regional Financial Highlights - Fiscal 2023 Fourth Quarter

(Currency in millions)

(Amounts may not add or compute due to rounding)

 
   

 

 

Q4 FY23

 

Q4 FY22

 

Net Change from Q4 FY22

 

Americas

 

 

 

 

 

 

 

Revenue

 

$

8,356.2

 

 

$

10,039.1

 

 

(16.8

) %

Operating income

 

$

177.2

 

 

$

222.3

 

 

(20.3

) %

Non-GAAP operating income(1)

 

$

277.6

 

 

$

323.7

 

 

(14.2

) %

Operating margin

 

 

2.12

%

 

 

2.21

%

 

(9) bps

 

Non-GAAP operating margin(1)

 

 

3.32

%

 

 

3.22

%

 

10 bps

 

 

 

 

 

 

 

 

 

Europe

 

 

 

 

 

 

 

Revenue

 

$

5,212.8

 

 

$

5,375.0

 

 

(3.0

) %

Operating income

 

$

78.7

 

 

$

77.1

 

 

2.1

%

Non-GAAP operating income(1)

 

$

116.6

 

 

$

134.6

 

 

(13.4

) %

Operating margin

 

 

1.51

%

 

 

1.44

%

 

7 bps

 

Non-GAAP operating margin(1)

 

 

2.24

%

 

 

2.50

%

 

(26) bps

 

 

 

 

 

 

 

 

 

Asia-Pacific and Japan

 

 

 

 

 

 

 

Revenue

 

$

838.3

 

 

$

833.8

 

 

0.5

%

Operating income

 

$

30.8

 

 

$

34.7

 

 

(11.2

) %

Non-GAAP operating income(1)

 

$

32.3

 

 

$

37.3

 

 

(13.4

) %

Operating margin

 

 

3.68

%

 

 

4.17

%

 

(49) bps

 

Non-GAAP operating margin(1)

 

 

3.86

%

 

 

4.47

%

 

(61) bps

 

(1) A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release.

 

TD SYNNEX Corporation

Regional Financial Highlights - Fiscal Year 2023

(Currency in millions)

(Amounts may not add or compute due to rounding)

 
   

 

 

FY23

 

FY22

 

Net Change from FY22

 

Americas

 

 

 

 

 

 

 

Revenue

 

$

34,573.9

 

 

$

38,791.1

 

 

(10.9

) %

Operating income

 

$

736.6

 

 

$

734.1

 

 

0.3

%

Non-GAAP operating income(1)

 

$

1,108.0

 

 

$

1,141.4

 

 

(2.9

) %

Operating margin

 

 

2.13

%

 

 

1.89

%

 

24 bps

 

Non-GAAP operating margin(1)

 

 

3.20

%

 

 

2.94

%

 

26 bps

 

 

 

 

 

 

 

 

 

Europe

 

 

 

 

 

 

 

Revenue

 

$

19,422.3

 

 

$

20,289.2

 

 

(4.3

) %

Operating income

 

$

236.5

 

 

$

227.2

 

 

4.1

%

Non-GAAP operating income(1)

 

$

421.6

 

 

$

480.6

 

 

(12.3

) %

Operating margin

 

 

1.22

%

 

 

1.12

%

 

10 bps

 

Non-GAAP operating margin(1)

 

 

2.17

%

 

 

2.37

%

 

(20) bps

 

 

 

 

 

 

 

 

 

Asia-Pacific and Japan

 

 

 

 

 

 

 

Revenue

 

$

3,559.3

 

 

$

3,263.5

 

 

9.1

%

Operating income

 

$

105.0

 

 

$

89.5

 

 

17.3

%

Non-GAAP operating income(1)

 

$

112.8

 

 

$

102.1

 

 

10.5

%

Operating margin

 

 

2.95

%

 

 

2.74

%

 

21 bps

 

Non-GAAP operating margin(1)

 

 

3.17

%

 

 

3.13

%

 

4 bps

 

(1) A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release.

 

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Currency in thousands)

(Amounts may not add or compute due to rounding)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Revenue in constant currency

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

Revenue

 

$

14,407,306

 

 

$

16,247,957

 

$

57,555,416

 

 

$

62,343,810

Impact of changes in foreign currencies

 

 

(315,531

)

 

 

 

 

99,152

 

 

 

Revenue in constant currency

 

$

14,091,775

 

 

$

16,247,957

 

$

57,654,568

 

 

$

62,343,810

 

 

 

 

 

 

 

 

 

Americas

 

 

 

 

 

 

 

 

Revenue

 

$

8,356,228

 

 

$

10,039,117

 

$

34,573,859

 

 

$

38,791,102

Impact of changes in foreign currencies

 

 

823

 

 

 

 

 

148,146

 

 

 

Revenue in constant currency

 

$

8,357,051

 

 

$

10,039,117

 

$

34,722,005

 

 

$

38,791,102

 

 

 

 

 

 

 

 

 

Europe

 

 

 

 

 

 

 

 

Revenue

 

$

5,212,809

 

 

$

5,375,015

 

$

19,422,297

 

 

$

20,289,211

Impact of changes in foreign currencies

 

 

(323,153

)

 

 

 

 

(168,747

)

 

 

Revenue in constant currency

 

$

4,889,656

 

 

$

5,375,015

 

$

19,253,550

 

 

$

20,289,211

 

 

 

 

 

 

 

 

 

Asia-Pacific and Japan

 

 

 

 

 

 

 

 

Revenue

 

$

838,269

 

 

$

833,825

 

$

3,559,260

 

 

$

3,263,497

Impact of changes in foreign currencies

 

 

6,799

 

 

 

 

 

119,753

 

 

 

Revenue in constant currency

 

$

845,068

 

 

$

833,825

 

$

3,679,013

 

 

$

3,263,497

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Currency in thousands)

(Amounts may not add or compute due to rounding)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP gross billings

 

 

 

 

 

 

 

 

Revenue

 

$

14,407,306

 

 

$

16,247,957

 

 

$

57,555,416

 

 

$

62,343,810

 

Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts

 

 

5,337,057

 

 

 

4,665,011

 

 

 

19,690,672

 

 

 

18,289,369

 

Non-GAAP gross billings

 

$

19,744,363

 

 

$

20,912,968

 

 

$

77,246,088

 

 

$

80,633,179

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP gross profit and non-GAAP gross margin

 

 

 

 

 

 

 

 

Revenue

 

$

14,407,306

 

 

$

16,247,957

 

 

$

57,555,416

 

 

$

62,343,810

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

1,018,579

 

 

$

1,059,719

 

 

$

3,956,829

 

 

$

3,900,199

 

Purchase accounting adjustments

 

 

 

 

 

17,720

 

 

 

15,047

 

 

 

96,128

 

Non-GAAP gross profit

 

$

1,018,579

 

 

$

1,077,439

 

 

$

3,971,876

 

 

$

3,996,327

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

7.07

%

 

 

6.52

%

 

 

6.87

%

 

 

6.26

%

Non-GAAP gross margin

 

 

7.07

%

 

 

6.63

%

 

 

6.90

%

 

 

6.41

%

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Adjusted selling, general and administrative expenses

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

731,825

 

$

725,557

 

$

2,878,797

 

$

2,849,326

Acquisition, integration and restructuring costs

 

 

46,638

 

 

50,053

 

 

206,235

 

 

222,319

Amortization of intangibles

 

 

73,166

 

 

75,080

 

 

293,737

 

 

299,162

Share-based compensation

 

 

20,021

 

 

18,563

 

 

49,273

 

 

38,994

Purchase accounting adjustments

 

 

 

 

 

 

 

 

16,564

Adjusted selling, general and administrative expenses

 

$

592,000

 

$

581,861

 

$

2,329,552

 

$

2,272,287

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Currency in thousands)

(Amounts may not add or compute due to rounding)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP operating income and non-GAAP operating margin - Consolidated

 

 

 

 

 

 

 

 

Revenue

 

$

14,407,306

 

 

$

16,247,957

 

 

$

57,555,416

 

 

$

62,343,810

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

286,754

 

 

$

334,162

 

 

$

1,078,032

 

 

$

1,050,873

 

Acquisition, integration and restructuring costs

 

 

46,638

 

 

 

50,053

 

 

 

206,235

 

 

 

222,319

 

Amortization of intangibles

 

 

73,166

 

 

 

75,080

 

 

 

293,737

 

 

 

299,162

 

Share-based compensation

 

 

20,021

 

 

 

18,563

 

 

 

49,273

 

 

 

38,994

 

Purchase accounting adjustments

 

 

 

 

 

17,720

 

 

 

15,047

 

 

 

112,691

 

Non-GAAP operating income

 

$

426,579

 

 

$

495,578

 

 

$

1,642,324

 

 

$

1,724,039

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

1.99

%

 

 

2.06

%

 

 

1.87

%

 

 

1.69

%

Non-GAAP operating margin

 

 

2.96

%

 

 

3.05

%

 

 

2.85

%

 

 

2.77

%

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP operating income and non-GAAP operating margin - Americas

 

 

 

 

 

 

 

 

Revenue

 

$

8,356,228

 

 

$

10,039,117

 

 

$

34,573,859

 

 

$

38,791,102

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

177,235

 

 

$

222,290

 

 

$

736,605

 

 

$

734,103

 

Acquisition, integration and restructuring costs

 

 

43,163

 

 

 

34,091

 

 

 

165,845

 

 

 

137,055

 

Amortization of intangibles

 

 

42,336

 

 

 

44,752

 

 

 

169,569

 

 

 

175,371

 

Share-based compensation

 

 

14,879

 

 

 

13,591

 

 

 

35,955

 

 

 

29,717

 

Purchase accounting adjustments

 

 

 

 

 

8,985

 

 

 

 

 

 

65,117

 

Non-GAAP operating income

 

$

277,613

 

 

$

323,709

 

 

$

1,107,974

 

 

$

1,141,363

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

2.12

%

 

 

2.21

%

 

 

2.13

%

 

 

1.89

%

Non-GAAP operating margin

 

 

3.32

%

 

 

3.22

%

 

 

3.20

%

 

 

2.94

%

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Currency in thousands)

(Amounts may not add or compute due to rounding)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP operating income and non-GAAP operating margin - Europe

 

 

 

 

 

 

 

 

Revenue

 

$

5,212,809

 

 

$

5,375,015

 

 

$

19,422,297

 

 

$

20,289,211

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

78,684

 

 

$

77,132

 

 

$

236,477

 

 

$

227,249

 

Acquisition, integration and restructuring costs

 

 

3,341

 

 

 

14,522

 

 

 

37,091

 

 

 

76,634

 

Amortization of intangibles

 

 

30,211

 

 

 

29,677

 

 

 

121,680

 

 

 

121,220

 

Share-based compensation

 

 

4,404

 

 

 

4,540

 

 

 

11,255

 

 

 

7,906

 

Purchase accounting adjustments

 

 

 

 

 

8,735

 

 

 

15,047

 

 

 

47,574

 

Non-GAAP operating income

 

$

116,640

 

 

$

134,606

 

 

$

421,550

 

 

$

480,583

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

1.51

%

 

 

1.44

%

 

 

1.22

%

 

 

1.12

%

Non-GAAP operating margin

 

 

2.24

%

 

 

2.50

%

 

 

2.17

%

 

 

2.37

%

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP operating income and non-GAAP operating margin - Asia-Pacific and Japan

 

 

 

 

 

 

 

 

Revenue

 

$

838,269

 

 

$

833,825

 

 

$

3,559,260

 

 

$

3,263,497

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

30,835

 

 

$

34,740

 

 

$

104,950

 

 

$

89,521

 

Acquisition, integration and restructuring costs

 

 

134

 

 

 

1,440

 

 

 

3,299

 

 

 

8,630

 

Amortization of intangibles

 

 

619

 

 

 

651

 

 

 

2,488

 

 

 

2,571

 

Share-based compensation

 

 

738

 

 

 

432

 

 

 

2,063

 

 

 

1,371

 

Non-GAAP operating income

 

$

32,326

 

 

$

37,263

 

 

$

112,800

 

 

$

102,093

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

3.68

%

 

 

4.17

%

 

 

2.95

%

 

 

2.74

%

Non-GAAP operating margin

 

 

3.86

%

 

 

4.47

%

 

 

3.17

%

 

 

3.13

%

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Currency in thousands, except per share amounts)

(Amounts may not add or compute due to rounding)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Adjusted EBITDA

 

 

 

 

 

 

 

 

Net income

 

$

187,542

 

 

$

221,231

 

 

$

626,911

 

$

651,307

Interest expense and finance charges, net

 

 

66,130

 

 

 

80,148

 

 

 

288,318

 

 

222,578

Provision for income taxes

 

 

39,567

 

 

 

43,993

 

 

 

162,597

 

 

175,823

Depreciation(1)

 

 

30,232

 

 

 

31,643

 

 

 

124,578

 

 

164,203

Amortization of intangibles

 

 

73,166

 

 

 

75,080

 

 

 

293,737

 

 

299,162

EBITDA

 

$

396,637

 

 

$

452,095

 

 

$

1,496,141

 

$

1,513,073

Other (income) expense, net

 

 

(6,485

)

 

 

(11,210

)

 

 

206

 

 

1,165

Acquisition, integration and restructuring costs

 

 

45,511

 

 

 

42,963

 

 

 

188,871

 

 

157,965

Share-based compensation

 

 

20,021

 

 

 

18,563

 

 

 

49,273

 

 

38,994

Purchase accounting adjustments

 

 

 

 

 

17,720

 

 

 

15,047

 

 

112,691

Adjusted EBITDA

 

$

455,684

 

 

$

520,131

 

 

$

1,749,538

 

$

1,823,888

(1) Includes depreciation recorded in acquisition, integration, and restructuring costs.

 

 

Three Months Ended

 

Twelve Months Ended

 

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Non-GAAP net income and non-GAAP diluted EPS(1)

 

 

 

 

 

 

 

 

Net income

 

$

187,542

 

 

$

221,231

 

 

$

626,911

 

 

$

651,307

 

Acquisition, integration and restructuring costs

 

 

47,139

 

 

 

52,317

 

 

 

213,585

 

 

 

231,008

 

Amortization of intangibles

 

 

73,166

 

 

 

75,080

 

 

 

293,737

 

 

 

299,162

 

Share-based compensation

 

 

20,021

 

 

 

18,563

 

 

 

49,273

 

 

 

38,994

 

Purchase accounting adjustments

 

 

 

 

 

17,720

 

 

 

15,047

 

 

 

112,691

 

Legal settlements and other litigation, net

 

 

 

 

 

(10,792

)

 

 

 

 

 

(10,792

)

Income taxes related to the above

 

 

(42,294

)

 

 

(44,302

)

 

 

(144,994

)

 

 

(166,129

)

Income tax capital loss carryback benefit

 

 

 

 

 

 

 

 

 

 

 

(8,299

)

Non-GAAP net income

 

$

285,574

 

 

$

329,817

 

 

$

1,053,559

 

 

$

1,147,942

 

 

 

 

 

 

 

 

 

 

Diluted EPS(1)

 

$

2.06

 

 

$

2.31

 

 

$

6.70

 

 

$

6.77

 

Acquisition, integration and restructuring costs

 

 

0.52

 

 

 

0.55

 

 

 

2.28

 

 

 

2.40

 

Amortization of intangibles

 

 

0.79

 

 

 

0.78

 

 

 

3.14

 

 

 

3.11

 

Share-based compensation

 

 

0.22

 

 

 

0.19

 

 

 

0.53

 

 

 

0.41

 

Purchase accounting adjustments

 

 

 

 

 

0.18

 

 

 

0.16

 

 

 

1.17

 

Legal settlements and other litigation, net

 

 

 

 

 

(0.11

)

 

 

 

 

 

(0.11

)

Income taxes related to the above

 

 

(0.46

)

 

 

(0.46

)

 

 

(1.55

)

 

 

(1.73

)

Income tax capital loss carryback benefit

 

 

 

 

 

 

 

 

 

 

 

(0.09

)

Non-GAAP Diluted EPS(1)

 

$

3.13

 

 

$

3.44

 

 

$

11.26

 

 

$

11.94

 

(1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For purposes of calculating Diluted EPS, net income allocated to participating securities was approximately 0.9% and 0.8% of net income for the three and twelve months ended November 30, 2023, respectively, and was approximately 0.8% and 0.7% of net income for the three and twelve months ended November 30, 2022, respectively.

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Amounts may not add or compute due to rounding)

 

 

 

Three Months Ended

 

Twelve Months Ended

(Currency in thousands)

 

November 30, 2023

 

November 30, 2022

 

November 30, 2023

 

November 30, 2022

Free cash flow

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

210,668

 

 

$

302,189

 

 

$

1,407,373

 

 

$

(49,604

)

Purchases of property and equipment

 

 

(42,590

)

 

 

(38,527

)

 

 

(150,007

)

 

 

(117,049

)

Free cash flow

 

$

168,078

 

 

$

263,662

$

1,257,366

 

 

$

(166,653

)

 

 

Forecast

 

 

Three Months Ending February 29, 2024

(Currency in millions, except per share amounts)

 

Low

 

High

Net income

 

$

147

 

 

$

192

 

Acquisition, integration and restructuring costs

 

 

18

 

 

 

18

 

Amortization of intangibles

 

 

75

 

 

 

75

 

Share-based compensation

 

 

17

 

 

 

17

 

Income taxes related to the above

 

 

(25

)

 

 

(25

)

Non-GAAP net income

 

$

232

 

 

$

277

 

 

 

 

 

 

Diluted EPS(1)

 

$

1.65

 

 

$

2.15

 

Acquisition, integration and restructuring costs

 

 

0.20

 

 

 

0.20

 

Amortization of intangibles

 

 

0.84

 

 

 

0.84

 

Share-based compensation

 

 

0.19

 

 

 

0.19

 

Income taxes related to the above

 

 

(0.28

)

 

 

(0.28

)

Non-GAAP Diluted EPS

 

$

2.60

 

 

$

3.10

 

(1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. Net income allocable to participating securities is estimated to be approximately 0.9% of the forecast net income for the three months ending February 29, 2024.

TD SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(Amounts may not add or compute due to rounding)

 

 

 

Forecast

 

 

Three Months Ending

(Currency in billions)

 

February 29, 2024

Non-GAAP gross billings

 

Low

 

High

Revenue

 

$

14.0

 

$

14.7

Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts

 

 

5.0

 

 

5.3

Non-GAAP gross billings

 

$

19.0

 

$

20.0

TD SYNNEX Corporation

Calculation of Financial Metrics

Return on Invested Capital (“ROIC”)

(Currency in thousands)

(Amounts may not add or compute due to rounding)

 

 

 

November 30, 2023

 

November 30, 2022

ROIC

 

 

 

 

Operating income (trailing fiscal four quarters)

 

$

1,078,032

 

 

$

1,050,873

 

Income taxes on operating income(1)

 

 

(222,018

)

 

 

(223,384

)

Operating income after taxes

 

$

856,014

 

 

$

827,489

 

 

 

 

 

 

Total invested capital comprising equity and borrowings, less cash (last five quarters average)

 

$

11,510,953

 

 

$

11,668,007

 

 

 

 

 

 

ROIC

 

 

7.4

%

 

 

7.1

%

 

 

 

 

 

Adjusted ROIC

 

 

 

 

Non-GAAP operating income (trailing fiscal four quarters)

 

$

1,642,324

 

 

$

1,724,039

 

Income taxes on non-GAAP operating income(1)

 

 

(371,130

)

 

 

(403,050

)

Non-GAAP operating income after taxes

 

$

1,271,194

 

 

$

1,320,989

 

 

 

 

 

 

Total invested capital comprising equity and borrowings, less cash (last five quarters average)

 

$

11,510,953

 

 

$

11,668,007

 

Tax effected impact of cumulative non-GAAP adjustments (last five quarters average)

 

 

1,068,366

 

 

 

620,266

 

Total non-GAAP invested capital (last five quarters average)

 

$

12,579,319

 

 

$

12,288,272

 

 

 

 

 

 

Adjusted ROIC

 

 

10.1

%

 

 

10.7

%

(1) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods.

TD SYNNEX Corporation

Calculation of Financial Metrics

Cash Conversion Cycle

(Currency in thousands)

(Amounts may not add or compute due to rounding)

 

 

 

 

 

Three Months Ended

 

 

 

 

November 30, 2023

 

November 30, 2022

Days sales outstanding

 

 

 

 

 

 

Revenue

 

(a)

 

$

14,407,306

 

$

16,247,957

Accounts receivable, net

 

(b)

 

 

10,297,814

 

 

9,420,999

Days sales outstanding

 

(c) = ((b)/(a))*the number of days during the period

 

 

65

 

 

53

 

 

 

 

 

 

 

Days inventory outstanding

 

 

 

 

 

 

Cost of revenue

 

(d)

 

$

13,388,727

 

$

15,188,238

Inventories

 

(e)

 

 

7,146,274

 

 

9,066,620

Days inventory outstanding

 

(f) = ((e)/(d))*the number of days during the period

 

 

49

 

 

54

 

 

 

 

 

 

 

Days payable outstanding

 

 

 

 

 

 

Cost of revenue

 

(g)

 

$

13,388,727

 

$

15,188,238

Accounts payable

 

(h)

 

 

13,347,281

 

 

13,988,980

Days payable outstanding

 

(i) = ((h)/(g))*the number of days during the period

 

 

91

 

 

84

 

 

 

 

 

 

 

Cash conversion cycle

 

(j) = (c)+(f)-(i)

 

 

23

 

 

23

 

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