ScanSource, Inc. (NASDAQ:SCSC) Q4 2015 Earnings Conference Call - Final Transcript
Aug 20, 2015 • 05:00 pm ET
Welcome to the ScanSource Quarterly Earnings Conference Call. All lines have been placed in a listen-only mode until the question-and-answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time.
I would now like to turn the call over to Mary Gentry, Vice President, Treasurer and Investor Relations. Ma'am, you may begin.
Thank you and welcome to ScanSource's earnings conference call for the quarter and full year ended June 30, 2015. With me today are Mike Baur, our CEO and Charlie Mathis, our CFO. We will review operating results for the quarter and the year and then take your questions. A slide presentation that accompanies our comments and webcast is posted in the Investor Relations section of our website.
(Forward-Looking Cautionary Statements)
We will be discussing both GAAP and non-GAAP results during our call and have provided reconciliations between these amounts in our slide presentation and in our press release. These reconciliations can be found on our website and have also been filed with our form 8-K.
Mike Baur will now begin our discussion with an overview of our results.
Thanks Mary and thanks for joining us today. I'm very pleased with a very solid quarter and year for ScanSource. Let's start with the highlights for the fourth quarter on slide three.
We reported record net sales of $857 million, up 13% and non-GAAP earnings per share of $0.66, up 5%. Both results are above our expected range. Our record net sales reflect very good results for both segments in constant currency. Our margins and non-GAAP earnings per share were strong in the quarter and we delivered 15.2% return on investment capital.
For the full year, our team achieved record net sales of $3.2 billion, representing a 10% year-over-year growth. Our gross profit margin was 10.2% of, our non-GAAP operating margin was 3.5% and our ROIC was 14.6%. We were able to grow net sales and deliver operating performance at levels consistent with our operating goals while making importance strategic investments in our business. We executed our plan to grow our business very well.
First, we grew our topline sales at or above market rates, while keeping our value added gross and operating profit margins. Second, we saw excellent growth in areas where we've made our strategic investments, including international communications, physical security, networking and payment terminals. Our business continues to grow globally. We've invested in our worldwide infrastructure with our new SAP ERP system.
In early July as planned, we implemented our SAP ERP system in North America. This followed our successful implementation in Europe in February. We now have over 80% of our business worldwide using our global SAP ERP platform. Our team's dedication and efforts resulted in our going live, on time and on budget in both geographies. We now have a flexible and scalable system that utilizes global best practices to support our future growth, including simpler and faster integration of future acquisitions.
Summarized on slide four, earlier this week