TD SYNNEX reports fiscal 2021 fourth quarter and full year results

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TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal fourth quarter and fiscal year ended November 30, 2021.

Fiscal 2021 Fourth Quarter Highlights:

• Revenue was $15.6 billion, up 155.1% from the prior fiscal fourth quarter primarily due to the impact of the completion of the merger with Tech Data on September 1, 2021. Operating income was $185 million, compared to $200 million, in the prior fiscal fourth quarter. Non-GAAP operating income was $408 million, in fiscal year fourth quarter 2021, compared to $221 million, in the prior fiscal fourth quarter.

• The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 13.1% compared to 14.6% in the prior fiscal year fourth quarter. The adjusted trailing fiscal four quarters ROIC was 16.0%.

• Cash generated from operations was $561 million for the quarter.

• Prior period financial results of Concentrix (earlier “customer experience services” business of SYNNEX) are excluded from income from continuing operations and presented as discontinued operations.

Fiscal 2021 Highlights:

• Revenue was $31.6 billion, up 58.3% from the prior fiscal year. Operating income was $623 million, compared to $521 million, in the prior fiscal year. Non-GAAP operating income was $902 million, in fiscal year 2021, compared to $587 million, in the prior fiscal year.

• Cash generated from operations was $810 million for the year.

The following statements are based on TD SYNNEX’ current expectations for the fiscal 2022 first quarter and full fiscal year 2022. Non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, purchase accounting adjustments, and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

First Quarter Fiscal 2022 Outlook:

• Revenue is expected to be in the range of $14.75 billion to $15.75 billion.

• Net income is expected to be in the range of $74 million to $134 million and on a non-GAAP basis, net income is expected to be in the range of $245 million to $275 million.

• Diluted earnings per share is expected to be in the range of $0.77 to $1.39 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.55 to $2.85, based on estimated outstanding diluted weighted average shares of 95.9 million.

Full Year Fiscal 2022 Outlook:

• Diluted earnings per share is expected to be in the range of $4.83 to $5.90 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $10.80 to $11.20, based on estimated outstanding diluted weighted average shares of 95.9 million. This result represents non-GAAP earnings per share accretion of 30% from legacy SYNNEX standalone results, improved from the initial expectation of 25% at the time of the merger announcement.