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ScanSource, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $775,580,000 from $876,305,000 in the same quarter the previous year. The decrease is attributed to continued soft demand in a more cautious technology spending environment.
Gross profit for the quarter was $101,619,000, down from $106,508,000 in the previous year, with the decline attributed to lower sales volume.
Selling, general, and administrative expenses decreased to $71,706,000 from $75,436,000, primarily due to lower employee costs and reduced customer-specific bad debt expenses in the United States and Canada.
Operating income for the quarter was $17,630,000, down from $24,084,000 in the previous year. The decrease is primarily due to lower gross profits.
Net income for the quarter was $16,974,000, up from $15,432,000 in the previous year. The increase is primarily due to a gain from an insurance recovery related to a cybersecurity attack.
Cash provided by operating activities was $44,830,000, while cash used in investing and financing activities was $59,224,000 and $26,630,000, respectively.
ScanSource had a working capital of $492,500,000 as of September 30, 2024. The company continues to focus on its hybrid distribution growth strategy and plans to expand investments in the agency channel.
The filing also details recent acquisitions, including Resourcive and Advantix, and a restructuring program expected to result in annualized savings of approximately $10.5 million.
ScanSource does not anticipate cash dividend payments to common stockholders in the near future.
The company identified no material changes to its risk factors since its last annual report.
ScanSource continues to operate primarily in the United States, Canada, and Brazil, with its business requiring significant investment in working capital.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ScanSource Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.