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Tech Data Reports Record First-Quarter Results
PR Newswire - June 02, 1998 16:19
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CLEARWATER, Fla., June 2 /PRNewswire/ -- Tech Data Corporation (Nasdaq: TECD) announced today that sales for its first quarter ended April 30, 1998, increased 59.4% to $2.18 billion from $1.37 billion in the first quarter last year. Net income for the quarter ended April 30, 1998, totaled $23.1 million, or $.46 per diluted share, compared with last year's first- quarter net income of $18.2 million, or $.41 per diluted share. The first quarter this year includes results of the company's Munich, Germany-based subsidiary, Macrotron AG, in which the company acquired a controlling interest in July 1997.
The company experienced strong first-quarter sales in all product divisions, led by the peripherals and networking divisions which increased 71% and 60%, respectively, over the comparable period last year. Systems and software sales grew 52% and 42%, respectively. Domestic sales increased 32% in the first quarter while international business advanced 243% (reflecting a full quarter of results for Macrotron). International business accounted for approximately 28% of sales during the first quarter this year, compared with 13% in the same period last year. Selling, general and administrative expenses as a percentage of sales were 4.34% in the first quarter, the same as reported in the first quarter last year.
"Our solid performance in the first quarter reflects strong execution in both domestic and international markets," commented Steven A. Raymund, Tech Data's chairman and chief executive officer. "Tech Data continues to stand out in the industry in terms of financial results as well as service offerings. We're in a great position as we prepare to complete our acquisition of a majority interest in Computer 2000, Europe's largest distributor of technology products."
Tech Data announced in April its plans to acquire 80% of the outstanding voting common stock of Munich-based Computer 2000. The acquisition is scheduled for completion on or about June 30. Among other developments in the first quarter, Tech Data advanced its FactoryDirect service that provides immediate shipping of systems directly from manufacturing sites. The service is now in place at Compaq Computer Corp.'s Houston facility in addition to IBM's location in Research Triangle Park, N.C. By setting up its own distribution operations within manufacturing facilities, Tech Data can ensure the fastest availability possible in the reseller channel. The initiative complements Tech Data's growing integration and assembly capabilities for custom system requirements.
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; labor strikes; and the risk factors listed from time to time in the company's reports filed with the Securities and Exchange Commission.
Tech Data Corporation is a leading full-line distributor of personal computer products, serving more than 70,000 resellers throughout the United States, Canada, Latin America, Germany, France, Switzerland and Austria. The Fortune 500 company generated sales of $7.1 billion in its most recent fiscal year, which ended January 31, 1998. In addition to distributing more than 45,000 products from over 900 manufacturers and publishers, Tech Data provides extensive pre- and post-sale training, service and support as well as high- quality configuration and assembly services and a full range of electronic commerce solutions. The company's comprehensive Web site is located at www.techdata.com.
TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
April 30,
1998 1997
Net sales $2,184,366 $1,370,146
Cost and expenses:
Cost of products sold 2,044,599 1,274,969
Selling, general and administrative
expenses 94,801 59,484
2,139,400 1,334,453
Operating profit 44,966 35,693
Interest expense 7,954 6,526
Income before income taxes 37,012 29,167
Provision for income taxes 13,815 10,945
Income before minority interest 23,197 18,222
Minority interest 92 ---
Net income $ 23,105 $ 18,222
Net income per common share:
Basic $ .48 $ .42
Diluted $ .46 $ .41
Weighted average common shares
outstanding:
Basic 48,285 43,341
Diluted 50,323 44,663
TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands)
April 30, January 31,
1998 1998
ASSETS
Current assets:
Cash and cash equivalents $ 1,249 $ 2,749
Accounts receivable, net 914,837 909,426
Inventories 969,570 1,028,367
Prepaid and other assets 57,399 65,843
Total current assets 1,943,055 2,006,385
Property and equipment, net 110,792 100,562
Excess of cost over acquired net
assets, net 57,088 55,460
Other assets, net 22,994 22,976
$2,133,929 $2,185,383
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit loans $ 335,053 $ 540,177
Accounts payable 949,580 850,866
Accrued expenses 101,877 77,961
Total current liabilities 1,386,510 1,469,004
Long-term debt 8,627 8,683
Total liabilities 1,395,137 1,477,687
Minority interest 3,431 5,108
Total shareholders' equity 735,361 702,588
Total liabilities and
shareholders' equity $2,133,929 $2,185,383
SOURCE Tech Data Corporation
Kent
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