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ScanSource Inc. (SCSC-1.10%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing net sales of $747.5 million, down from $884.8 million in the same quarter the previous year. The decrease in sales is attributed to lower demand in the Specialty Technology Solutions segment.
The Specialty Technology Solutions segment reported net sales of $723.3 million, a decrease of 16.0% compared to the prior year. This decline is primarily due to lower large deals and a cautious technology spending environment.
The Intelisys & Advisory segment reported net sales of $24.2 million, an increase of 4.0% from the previous year. The growth is attributed to the addition of an acquisition.
Gross profit for the quarter was $101.7 million, up slightly from $100.7 million in the previous year. The gross profit margin increased to 13.6% from 11.4% in the prior year, driven by a favorable sales mix.
Operating expenses for the quarter were $83.3 million, up from $73.9 million in the prior year. The increase is primarily due to higher bad debt expense and costs related to recent acquisitions.
Operating income for the quarter was $18.4 million, down from $26.8 million in the previous year. The decline is mainly due to increased operating expenses.
Net income for the quarter was $17.1 million, compared to $32.7 million in the previous year. The decrease is largely due to the absence of a gain on sale of business recorded in the prior year.
Cash provided by operating activities was $38.6 million, while cash used in investing and financing activities was $58.5 million and $52.4 million, respectively.
ScanSource had a working capital of $520.7 million as of December 31, 2024. The company continues to focus on improving working capital efficiency.
The filing also details recent acquisitions, including Advantix Solutions Group, Inc. and Resourcive, which are expected to enhance the company's service offerings.
ScanSource does not anticipate cash dividend payments to common stockholders in the near future due to restrictions under its credit facility.
The company identified no material changes in its risk factors since its last annual report and remains in compliance with all covenants under its credit facility.
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 January 30, 2025. To report an error, please email earnings@qz.com.