TO ALL----EARNINGS......
We couldn't ask for much more, hopefully the Street agrees.
CLEARWATER, Fla., March 26 /PRNewswire/ -- Tech Data Corporation
(Nasdaq: TECD) today announced record sales and earnings for the fourth
quarter and fiscal year ended January 31, 1997. Net income for the fourth
quarter increased 93.2% to $17.8 million, or $.40 per share, up from $9.2
million, or $.24 per share in the fourth quarter last year. Sales in the
fourth quarter increased 45.8% to $1.31 billion from $901 million for the
comparable quarter last year.
Net income for the year ended January 31, 1997 was $57.0 million, or $1.35
per share, up 164.5% from $21.5 million, or $.56 per share, in the prior year.
Sales for the year ended January 31, 1997 increased 49.0% to $4.6 billion
compared with $3.1 billion last year.
The Company experienced significant sales growth in all product divisions
during the fourth quarter, led by the software division which increased by 78%
over the comparable period last year. Peripherals, systems and networking
sales grew by 45%, 38% and 30%, respectively. Domestic sales increased by 46%
while international business advanced 43% in the fourth quarter. Selling,
general and administrative expenses as a percentage of sales declined to a
record low of 4.35%, compared to 4.89% in the fourth quarter last year.
"All aspects of our operations generated strong fourth-quarter results as
well as solid year-over-year performance, "commented Steve Raymund, Tech
Data's chairman and chief executive officer. "We continue to invest in our
overall infrastructure to ensure we are well-positioned for the future."
In addition to gaining significant market share during the past year, Tech
Data began a major expansion program that encompasses virtually all of its
U.S. distribution centers as well as its Clearwater headquarters operation.
Upon completion later this year, the initiative will add more than one million
square feet of new space to meet growing inventory demand and staffing
requirements.
The company also recently opened its first distribution center in Latin
America, a 33,000-square-foot location near Sao Paulo, Brazil, to help meet
product and service needs in a country that leads the region in hardware and
software sales. To further strengthen its U.S. sales organization, the
company established new dedicated business units during the fourth quarter to
enhance its service and support to government resellers and the aggregator
marketplace. Among its many achievements during the fourth quarter, Tech Data
became the world's second largest computer products distributor. It had
previously been the third largest in the industry.
In addition, the Company recently increased its accounts receivable
securitization program from $250 million to $325 million, giving the Company
total revolving credit facilities of approximately $625 million. "The
expanded credit facilities will provide the necessary capital to finance our
planned growth," commented Jeffery P. Howells, executive vice president and
chief financial officer.
Certain matters discussed in this news release are forward-looking
statements that involve a number of risks and uncertainties. Factors that
could cause actual results to differ materially include the following:
business conditions and growth in the personal computer industry and general
economy; competitive factors; inventory risks due to shifts in market demand;
changes in product mix; and the risk factors listed from time to time in the
Company's reports filed with the Securities and Exchange Commission ("SEC"),
including but not limited to the report on Form 8-K filed with the SEC on
March 26, 1996.
Tech Data Corporation is a leading distributor of personal computer
products serving more than 55,000 value-added resellers and retail dealers
throughout the United States, France, Canada, Latin America and the Caribbean.
A Fortune 500 company, Tech Data offers comprehensive product lines in
software, networking and communications, mass storage, peripherals and
computer systems. In addition to distributing more than 45,000 products from
over 600 manufacturers and publishers, Tech Data provides extensive pre-sale
and post-sale training, service and support.
TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
Three months ended
January 31, Year ended January 31,
1997 1996 1997 1996
Net sales $1,313,489 $901,038 $4,598,941 $3,086,620
Cost and expenses:
Cost of products sold 1,220,977 836,658 4,277,160 2,867,226
Selling, general and
administrative expenses 57,138 44,093 206,770 163,790
1,278,115 880,751 4,483,930 3,031,016
Operating profit 35,374 20,287 115,011 55,604
Interest expense 6,311 5,257 21,522 20,086
Income before income
taxes 29,063 15,030 93,489 35,518
Provision for income
taxes 11,282 5,828 36,516 13,977
Net income $17,781 $9,202 $56,973 $21,541
Net income per common
share $.40 $.24 $1.35 $.56
Weighted average common
shares outstanding 44,900 38,347 42,125 38,138
TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands)
January 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $661 $1,154
Accounts receivable, net 633,579 445,202
Inventories 759,974 465,422
Prepaid and other assets 55,796 39,010
Total current assets 1,450,010 950,788
Property and equipment, net 65,597 61,610
Excess of cost over acquired net
assets, net 5,922 6,376
Other assets, net 23,765 25,105
$1,545,294 $1,043,879
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit loans $396,391 $283,100
Current portion of long-term
debt 201 519
Accounts payable 658,732 433,374
Accrued expenses 42,693 32,091
Total current liabilities 1,098,017 749,084
Long-term debt 8,896 9,097
1,106,913 758,181
Total shareholders' equity 483,381 285,698
Total liabilities and
shareholders' equity $1,545,294 $1,043,879
SOURCE Tech Data Corporation
CONTACT: Jeffery P. Howells, Executive Vice President and Chief Financial Officer,
813-538-7825; or Arthur W. Singleton, Vice President, Treasurer and Secretary,
813-538-7083, both of Tech Data |
