ScanSource, Inc. (NASDAQ:SCSC) Q2 2016 Earnings Conference Call - Final Transcript
Feb 09, 2016 • 05:00 pm ET
Welcome to the ScanSource Quarterly Earnings Conference Call. [Operator Instructions]
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 ended December 31st, 2015. With me today are Mike Baur, our CEO; and Charlie Mathis, our CFO. We will review operating results for the quarter and then take your questions. A slide presentation that accompanies our comments and webcast is posted in the Investor Relations section of our website. Certain statements made on this call will be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to those factors identified in the release and in ScanSource's SEC filings. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.
ScanSource undertakes no duty to update any forward-looking statements to actual results or changes in expectations. 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 thank you for joining us today. As you can see on slide number 3 of our presentation, we delivered exceptional results this quarter led by strong demand across our business. Our teams executed very well on our strategic objectives with record net sales of $994 million and record non-GAAP diluted earnings per share of $0.88 per share, both above the high-end of our expected range. We increased net sales 23% year-over-year and grew our bottomline even faster with 29% year-over-year growth for non-GAAP EPS.
We were pleased with our return on invested capital of 17.5%. We were pleased with our strong sales growth led by large deals in our Barcode and Security segment. These large deals came primarily from enterprise mobility, our retail channels, and a seasonally strong KBZ government quarter. Our strong quarterly results were driven by the acquisitions we completed during the past 16 months, Imago, Network1 and most recently, KBZ. A key part of our strategic plan was to combine these acquisitions with our existing business.
This combination of excellent operations and strong balance sheet has led to accelerated growth and profitability in the markets where we compete. With the success of our SAP ERP implementation, we now have invested in a platform to support our organic growth and future acquisitions. The robust IT platform we have implemented will allow us to develop new digital tools to help our customers grow their business. We believe our customers are interested in ScanSource,