Scansource, Inc 10-Q for FY2020 Q2

Scansource, Inc. (SCSC)

10-Q 2020-02-04 For: 2019-12-31

Added on April 08, 2026

About this 10-Q

Scansource, Inc filed this 10-Q on February 4, 2020, covering the quarter ended December 31, 2019 (FY2020 Q2).

Headline figures

Quarter ended December 31, 2019, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $989.5M; down 5.4% from $1.05B a year earlier
Net income: $11.37M; down 43.1% from net income of $19.98M a year earlier
Diluted EPS: $0.45; down 42.3% from $0.78 a year earlier

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Securities registered pursuant to Section 12(b) of the Act:
Title of each class:	Trading Symbol:	Name of exchange on which registered:
Common stock, no par value	SCSC	NASDAQ Global Select Market



Large accelerated filer	☒	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐



Class		Outstanding at January 31, 2020
Common Stock, no par value per share		25,345,798 shares



		Page #
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	5
	Condensed Consolidated Balance Sheets (unaudited) at December 31, 2019 and June 30, 2019	5
	Condensed Consolidated Income Statements (unaudited) for the Quarters and Six Months Ended December 31, 2019 and 2018	6
	Condensed Consolidated Statements of Comprehensive Income (unaudited) for the Quarters and Six Months Ended December 31, 2019 and 2018	7
	Condensed Consolidated Statements of Shareholders' Equity (unaudited) for the Quarters and Six Months Ended December 31, 2019 and 2018	8
	Condensed Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended December 31, 2019 and 2018	10
	Notes to Condensed Consolidated Financial Statements (unaudited)	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	46

PART II. OTHER INFORMATION

Item 1	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 6.	Exhibits	48

SIGNATURES		49



	December 31, 2019			June 30, 2019
Assets
Current assets:
Cash and cash equivalents	$	42,005		$	23,818
Accounts receivable, less allowance of $37,672 at December 31, 2019 and $38,849 at June 30, 2019	645,270			654,983
Inventories	742,979			697,343
Prepaid expenses and other current assets	109,075			101,171
Total current assets	1,539,329			1,477,315
Property and equipment, net	61,625			63,363
Goodwill	369,537			319,538
Identifiable intangible assets, net	117,981			127,939
Deferred income taxes	24,498			24,724
Other non-current assets	97,160			54,382
Total assets	$	2,210,130		$	2,067,261
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	672,906		$	558,101
Accrued expenses and other current liabilities	105,649			91,407
Current portion of contingent consideration	45,043			38,393
Income taxes payable	627			4,310
Short-term borrowings	2,098			4,590
Current portion of long-term debt	5,964			4,085
Total current liabilities	832,287			700,886
Deferred income taxes	1,248			1,395
Long-term debt, net of current portion	146,925			151,014
Borrowings under revolving credit facility	202,758			200,817
Long-term portion of contingent consideration	—			39,532
Other long-term liabilities	99,332			59,488
Total liabilities	1,282,550			1,153,132
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000 shares authorized, none issued	—			—
Common stock, no par value; 45,000,000 shares authorized, 25,345,798 and 25,408,397 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively	61,095			64,287
Retained earnings	962,825			939,930
Accumulated other comprehensive loss	(96,340		)	(90,088		)
Total shareholders’ equity	927,580			914,129
Total liabilities and shareholders’ equity	$	2,210,130		$	2,067,261

June 30, 2019 amounts are derived from audited consolidated financial statements.
See accompanying notes to these condensed consolidated financial statements.



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Quarter ended						Six months ended
	December 31,						December 31,
	2019			2018			2019			2018
Net sales	$	989,503		$	1,046,021		$	1,996,430		$	2,018,921
Cost of goods sold	875,619			925,543			1,770,447			1,786,229
Gross profit	113,884			120,478			225,983			232,692
Selling, general and administrative expenses	83,121			80,950			165,632			158,880
Depreciation expense	3,459			3,272			7,008			6,538
Intangible amortization expense	5,631			4,700			10,593			9,703
Change in fair value of contingent consideration	3,176			1,850			5,649			6,434
Operating income	18,497			29,706			37,101			51,137
Interest expense	3,751			3,119			7,543			5,746
Interest income	(749		)	(264		)	(1,548		)	(715		)
Other (income) expense, net	(225		)	201			(195		)	233
Income before income taxes	15,720			26,650			31,301			45,873
Provision for income taxes	4,354			6,668			8,405			11,570
Net income	$	11,366		$	19,982		$	22,896		$	34,303
Per share data:
Net income per common share, basic	$	0.45		$	0.78		$	0.90		$	1.34
Weighted-average shares outstanding, basic	25,274			25,640			25,407			25,619

Net income per common share, diluted	$	0.45		$	0.78		$	0.90		$	1.33
Weighted-average shares outstanding, diluted	25,358			25,750			25,488			25,752



	Common Stock (Shares)		Common Stock (Amount)			Retained Earnings		Accumulated Other Comprehensive Loss			Total
Balance at June 30, 2019	25,408,397		$	64,287		$	939,930	$	(90,088	)	$	914,129
Net income	—		—			11,530		—			11,530
Unrealized loss on hedged transaction, net of tax	—		—			—		(1,071		)	(1,071		)
Foreign currency translation adjustment	—		—			—		(14,639		)	(14,639		)
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes	786		(12		)	—		—			(12		)
Common stock repurchased	(168,068	)	(5,432		)	—		—			(5,432		)
Share-based compensation	—		1,246			—		—			1,246
Balance at September 30, 2019	25,241,115		$	60,089		$	951,460	$	(105,798	)	$	905,751
Net income	—		—			11,366		—			11,366
Unrealized loss on hedged transaction, net of tax	—		—			—		900			900
Foreign currency translation adjustment	—		—			—		8,558			8,558
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes	104,683		(621		)	—		—			(621		)
Stock repurchased	—		—			—		—			—
Share-based compensation	—		1,627			—		—			1,627
Balance at December 31, 2019	25,345,798		$	61,095		$	962,825	$	(96,340	)	$	927,580

See accompanying notes to these condensed consolidated financial statements.



	Quarter ended December 31, 2019
			(in thousands)
	Worldwide Barcode, Networking & Security Segment		Worldwide Communications & Services Segment		Total
Revenue by product/service:
Technology solutions	$	686,237	$	287,910	$	974,147
Master agency and professional services^(a)	—		15,356		15,356
	$	686,237	$	303,266	$	989,503



	Six months ended December 31, 2019
			(in thousands)
	Worldwide Barcode, Networking & Security Segment		Worldwide Communications & Services Segment		Total
Revenue by product/service:
Technology solutions	$	1,384,028	$	581,866	$	1,965,894
Master agency and professional services^(a)	—		30,536		30,536
	$	1,384,028	$	612,402	$	1,996,430

^(a)Includes Intelisys Communications, Inc., Canpango, and Intelisys Global Ltd.



	Quarter ended December 31, 2018
			(in thousands)
	Worldwide Barcode, Networking & Security Segment		Worldwide Communications & Services Segment		Total
Revenue by product/service:
Technology solutions	$	701,639	$	330,827	$	1,032,466
Master agency and professional services^(a)	—		13,555		13,555
	$	701,639	$	344,382	$	1,046,021



	Six months ended December 31, 2018
			(in thousands)
	Worldwide Barcode, Networking & Security Segment		Worldwide Communications & Services Segment		Total
Revenue by product/service:
Technology solutions	$	1,356,752	$	635,602	$	1,992,354
Master agency and professional services^(a)	—		26,567		26,567
	$	1,356,752	$	662,169	$	2,018,921

^(a)Includes Intelisys Communications, Inc., Canpango, and Intelisys Global Ltd.



	Quarter ended December 31,						Six months ended December 31,
	2019			2018			2019		2018
	(in thousands)
Tax (expense) benefit	$	(42	)	$	(509	)	$	434	$	(6	)



	Net Identifiable Intangible Assets
	(in thousands)
Balance at June 30, 2019	$	127,939
Additions	—
Amortization expense	(10,593		)
Foreign currency translation adjustment	635
Balance at December 31, 2019	$	117,981



		December 31, 2019				June 30, 2019
	Balance Sheet Location	Fair Value of Derivatives Designated as Hedge Instruments		Fair Value of Derivatives Not Designated as Hedge Instruments		Fair Value of Derivatives Designated as Hedge Instruments		Fair Value of Derivatives Not Designated as Hedge Instruments
		(in thousands)
Derivative assets:
Foreign exchange contracts	Prepaid expenses and other current assets	$	—	$	125	$	—	$	165
Derivative liabilities:
Foreign exchange contracts	Accrued expenses and other current liabilities	$	—	$	320	$	—	$	168
Interest rate swap agreement	Other long-term liabilities	$	3,627	$	—	$	3,504	$	—


•	Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;



	Six months ended
	December 31,
	2019			2018
Cash flows from operating activities:
Net income	$	22,896		$	34,303
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,889			18,203
Amortization of debt issuance costs	209			168
Provision for doubtful accounts	2,800			2,187
Share-based compensation	2,849			2,907
Deferred income taxes	(332		)	1,835
Change in fair value of contingent consideration	5,649			6,434
Contingent consideration payments excess	(3,050		)	(7,444		)
Finance lease interest	39			—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	6,595			(30,818		)
Inventories	(48,559		)	(110,909		)
Prepaid expenses and other assets	(7,001		)	914
Other non-current assets	(7,919		)	1,849
Accounts payable	113,591			43,853
Accrued expenses and other liabilities	15,379			(3,993		)
Income taxes payable	(3,975		)	(11,259		)
Net cash provided by (used in) operating activities	118,060			(51,770		)
Cash flows from investing activities:
Capital expenditures	(2,750		)	(5,780		)
Cash paid for business acquisitions, net of cash acquired	(48,921		)	(32,183		)
Net cash used in investing activities	(51,671		)	(37,963		)
Cash flows from financing activities:
Borrowings on revolving credit	1,084,158			1,126,333
Repayments on revolving credit	(1,084,138		)	(1,003,022		)
Repayments on short-term borrowings, net	(2,450		)	—
Repayments on long-term debt	(2,210		)	(331		)
Repayments of finance lease obligations	(1,115		)	(330		)
Contingent consideration payments	(35,481		)	(35,616		)
Exercise and issuance of equity awards	720			1,509
Taxes paid on settlement of equity awards	(1,354		)	(1,404		)
Repurchase of common stock	(6,077		)	(308		)
Net cash (used in) provided by financing activities	(47,947		)	86,831



	Quarter ended						Six months ended
	December 31,						December 31,
	2019			2018			2019			2018
	(in thousands)
Net foreign exchange derivative contract losses (gains)	$	2,315		$	(964	)	$	200		$	(948	)
Net foreign currency transactional and re-measurement (gains) losses	(2,417		)	1,384			(391		)	1,465
Net foreign currency exchange (gains) losses	$	(102	)	$	420		$	(191	)	$	517


•	Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;


•	Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).



	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(in thousands)
Assets:
Deferred compensation plan investments, current and non-current portion	$	28,839	$	28,839	$	—	$	—
Forward foreign currency exchange contracts	125		—		125		—
Total assets at fair value	$	28,964	$	28,839	$	125	$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	28,839	$	28,839	$	—	$	—
Forward foreign currency exchange contracts	320		—		320		—
Interest rate swap agreement	3,627		—		3,627		—
Liability for contingent consideration	45,043		—		—		45,043
Total liabilities at fair value	$	77,829	$	28,839	$	3,947	$	45,043


•	estimated future results, net of pro forma adjustments set forth in the purchase agreements;


•	a discount rate reflective of the Company’s creditworthiness and market risk premium associated with the United States markets.



Reporting Period	Valuation Technique	Significant Unobservable Inputs	Weighted Average Rates^(a)
December 31, 2019	Discounted cash flow	Weighted average cost of capital	13.9	%
		Adjusted EBITDA growth rate	28.1	%

June 30, 2019	Discounted cash flow	Weighted average cost of capital	14.2	%
		Adjusted EBITDA growth rate	21.5	%



Operating leases	Balance Sheet location	December 31, 2019
		(in thousands)
Operating lease right-of-use assets	Other non-current assets	$	32,619
Current operating lease liabilities	Accrued expenses and other current liabilities	$	6,234
Long-term operating lease liabilities	Other long-term liabilities	$	28,405



	December 31, 2019
Weighted-average remaining lease term	6.36 years
Weighted-average discount rate	4.0	%



	Operating leases
	(in thousands)
Remainder of 2020	$	3,966
2021	7,049
2022	6,233
2023	5,679
2024	4,794
Thereafter	11,371
Total future payments	39,092
Less: amounts representing interest	4,453
Present value of lease payments	$	34,639



	December 31, 2019		June 30, 2019
	Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	723	$	761
Other non-current assets	$	4,962	$	5,219
Liabilities
Accrued expenses and other current liabilities	$	723	$	761
Other long-term liabilities	$	4,962	$	5,219



	Quarter ended December 31,									% Change, Constant Currency, Excluding Planned Divestitures and Acquisitions^(a)
Net Sales by Segment:	2019		2018		$ Change			% Change
	(in thousands)
Worldwide Barcode, Networking & Security	$	686,237	$	701,639	$	(15,402	)	(2.2	)%	(0.4	)%
Worldwide Communications & Services	303,266		344,382		(41,116		)	(11.9	)%	(14.0	)%
Total net sales	$	989,503	$	1,046,021	$	(56,518	)	(5.4	)%	(5.0	)%

	Six months ended December 31,									% Change, Constant Currency, Excluding Planned Divestitures and Acquisitions (a)
	2019		2018		$ Change			% Change
	(in thousands)
Worldwide Barcode, Networking & Security	$	1,384,028	$	1,356,752	$	27,276		2.0	%	3.8	%
Worldwide Communications & Services	612,402		662,169		(49,767		)	(7.5	)%	(10.3	)%
Total net sales	$	1,996,430	$	2,018,921	$	(22,491	)	(1.1	)%	(1.0	)%



	Quarter ended December 31,									% Change, Constant Currency, Excluding Planned Divestitures and Acquisitions^(a)
Net Sales by Geography:	2019		2018		$ Change			% Change
	(in thousands)
United States and Canada	$	736,129	$	779,455	$	(43,326	)	(5.6	)%	(5.8	)%
International	$	253,374	$	266,566	(13,192		)	(4.9	)%	2.1	%
Total net sales	$	989,503	$	1,046,021	$	(56,518	)	(5.4	)%	(5.0	)%

	Six months ended December 31,									% Change, Constant Currency, Excluding Acquisitions^(a)
	2019		2018		$ Change			% Change		% Change, Constant Currency, Excluding Acquisitions^(a)
	(in thousands)
United States and Canada	$	1,505,766	$	1,517,412	$	(11,646	)	(0.8	)%	(1.1	)%
International	490,664		501,509		(10,845		)	(2.2	)%	0.1	%
Total net sales	$	1,996,430	$	2,018,921	$	(22,491	)	(1.1	)%	(1.0	)%



	Quarter ended December 31,									% of Net Sales December 31,
	2019		2018		$ Change			% Change		2019		2018
	(in thousands)
Worldwide Barcode, Networking & Security	$	60,136	$	64,825	$	(4,689	)	(7.2	)%	8.8	%	9.2	%
Worldwide Communications & Services	53,748		55,653		(1,905		)	(3.4	)%	17.7	%	16.2	%
Gross profit	$	113,884	$	120,478	$	(6,594	)	(5.5	)%	11.5	%	11.5	%

	Six months ended December 31,									% of Net Sales December 31,
	2019		2018		$ Change			% Change		2019		2018
	(in thousands)
Worldwide Barcode, Networking & Security	$	118,406	$	126,776	$	(8,370	)	(6.6	)%	8.6	%	9.3	%
Worldwide Communications & Services	107,577		105,916		1,661			1.6	%	17.6	%	16.0	%
Gross profit	$	225,983	$	232,692	$	(6,709	)	(2.9	)%	11.3	%	11.5	%



Non-GAAP net sales, constant currency excluding Planned Divestitures and acquisitions	$	94,869		$	92,955		$	1,914		2.1	%

Consolidated:
Net sales, as reported	$	989,503		$	1,046,021		$	(56,518	)	(5.4	)%
Planned Divestitures	(155,767		)	(173,611		)
Non-GAAP net sales, excluding Planned Divestitures	833,736			872,410			(38,674		)	(4.4	)%
Foreign exchange impact^(a)	6,986			—
Less: Acquisitions	(12,036		)	(98		)
Non-GAAP net sales, constant currency excluding Planned Divestitures and acquisitions	$	828,686		$	872,312		$	(43,626	)	(5.0	)%

^(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter ended December 31, 2019 into U.S. dollars using the average foreign exchange rates for the quarter ended December 31, 2018.


	Six months ended December 31,
	2019			2018			$ Change			% Change
United States and Canada:	(in thousands)
Net sales, as reported	$	1,505,766		$	1,517,412		$	(11,646	)	(0.8	)%
Less: Acquisitions	(5,907		)	(1,062		)
Net sales, constant currency excluding acquisitions	$	1,499,859		$	1,516,350		$	(16,491	)	(1.1	)%

International:
Net sales, as reported	$	490,664		$	501,509		$	(10,845	)	(2.2	)%
Planned Divestitures	(311,282		)	(333,257		)
Non-GAAP net sales, excluding Planned Divestitures	179,382			168,252			11,130			6.6	%
Foreign exchange impact (a)	7,325			—
Less: Acquisitions	(18,286		)	—
Non-GAAP net sales, constant currency excluding Planned Divestitures and acquisitions	$	168,421		$	168,252		$	169		0.1	%

Consolidated:
Net sales, as reported	$	1,996,430		$	2,018,921		$	(22,491	)	(1.1	)%
Planned Divestitures	(311,282		)	(333,257		)
Non-GAAP net sales, excluding Planned Divestitures	1,685,148			1,685,664			(516		)	—	%
Foreign exchange impact (a)	7,325			—
Less: Acquisitions	(24,193		)	(1,062		)
Non-GAAP net sales, constant currency excluding Planned Divestitures and acquisitions	$	1,668,280		$	1,684,602		$	(16,322	)	(1.0	)%

^(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the six months ended December 31, 2019 into U.S. dollars using the average foreign exchange rates for the six months ended December 31, 2018.



	Quarter ended December 31, 2019
	Reported GAAP measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition and divestiture costs^(a)		Restructuring costs		Impact of Planned Divestitures			Non-GAAP measure
	(in thousands, except per share data)
Net sales	$	989,503	$	—	$	—	$	—	$	—	$	(155,767	)	$	833,736
Gross profit	113,884		—		—		—		—		(15,471		)	98,413
Operating income	18,497		5,631		3,176		1,151		490		(371		)	28,574
Other expense, net	2,777		—		—		—		—		(238		)	2,539
Pre-tax income	15,720		5,631		3,176		1,151		490		(133		)	26,035
Net income	11,366		4,289		2,401		1,151		378		(121		)	19,464
Diluted EPS	$	0.45	$	0.17	$	0.09	$	0.05	$	0.01	$	—		$	0.77

	Quarter ended December 31, 2018
	Reported GAAP measure		Intangible amortization expense		Change in fair value of contingent consideration		Acquisition costs^(a)		Restructuring costs		Impact of Planned Divestitures			Non-GAAP measure
	(in thousands, except per share data)
Net sales	$	1,046,021	$	—	$	—	$	—	$	—	$	(173,611	)	$	872,410
Gross profit	120,478		—		—		—		—		(16,998		)	103,480
Operating income	29,706		4,700		1,850		414		—		(2,102		)	34,568
Other expense, net	3,056		—		—		—		—		(513		)	2,543
Pre-tax income	26,650		4,700		1,850		414		—		(1,588		)	32,026
Net income	19,982		3,567		1,408		414		—		(650		)	24,721
Diluted EPS	$	0.78	$	0.14	$	0.05	$	0.02	$	—	$	(0.03	)	$	0.96

(a) Acquisition and divestiture costs are generally nondeductible for tax purposes.




Operating Income by Segment:
	Quarter ended December 31,											% of Net Sales December 31,
	2019			2018			$ Change			% Change		2019		2018
Worldwide Barcode, Networking & Security:	(in thousands)
GAAP operating income	$	14,076		$	18,581		$	(4,505	)	(24.2	)%	2.1	%	2.6	%
Adjustments:
Amortization of intangible assets	1,968			1,854			114
Restructuring costs	—			—			—
Planned Divestitures	(735		)	(2,292		)	1,557
Non-GAAP operating income	$	15,309		$	18,143		$	(2,834	)	(15.6	)%	2.7	%	3.1	%

Worldwide Communications & Services:
GAAP operating income	$	5,572		$	11,539		$	(5,967	)	(51.7	)%	1.8	%	3.4	%
Adjustments:
Amortization of intangible assets	3,664			2,846			818
Change in fair value of contingent consideration	3,176			1,850			1,326
Restructuring costs	490			—			490
Planned Divestitures	364			190			174
Non-GAAP operating income	$	13,266		$	16,425		$	(3,159	)	(19.2	)%	5.1	%	5.6	%

Corporate:
GAAP operating income	$	(1,151	)	$	(414	)	$	(737	)	nm*		nm*		nm*
Adjustments:
Acquisition and divestiture costs	1,151			414			737
Non-GAAP operating income	$	—		$	—		$	—		nm*		nm*		nm*

Consolidated:
GAAP operating income	$	18,497		$	29,706		$	(11,209	)	(37.7	)%	1.9	%	2.8	%
Adjustments:
Amortization of intangible assets	5,631			4,700			931
Change in fair value of contingent consideration	3,176			1,850			1,326
Acquisition and divestiture costs	1,151			414			737
Restructuring costs	490			—			490
Planned Divestitures	(371		)	(2,102		)	1,731
Non-GAAP operating income	$	28,574		$	34,568		$	(5,994	)	(17.3	)%	3.4	%	4.0	%


(a)	The annualized EBITDA amount is divided by days in the quarter times 365 days per year, or 366 days for leap year. There were 92 days in the current and prior-year quarter.


(a)	Acquisition and divestiture costs are generally nondeductible for tax purposes.


(b)	Average funded debt is calculated as the average daily amounts outstanding on our current and long-term interest-bearing debt.



Period	Total number of shares purchased^(a)	Average price paid per share		Total number of shares purchased as part of the publicly announced plan or program	Approximate dollar value of shares that may yet be purchased under the plan or program^(b)
October 1, 2019 through October 31, 2019	—	$	—	—	$	—
November 1, 2019 through November 30, 2019	—	$	—	—	$	—
December 1, 2019 through December 31, 2019	36,393	$	36.85	—	$	—
Total	36,393	$	36.85	—	$	—



Exhibit Number	Description

10.1	Fifth Amendment to Industrial Lease Agreement, by and between GPT 8650 Commerce Drive Owner LLC and 8650 Commerce Drive LLC

31.1	Certification of the Chief Executive Officer, Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	Certification of the Chief Financial Officer, Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	Certification of the Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2	Certification of the Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101	The following materials from our Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets at December 31, 2019 and June 30, 2019; (ii) the Condensed Consolidated Income Statements for the quarter and six months ended December 31, 2019 and 2018; (iii) the Condensed Consolidated Statements of Comprehensive Income for the quarter and six months ended December 31, 2019 and 2018; (iv) the Condensed Consolidated Statements of Shareholder's Equity at December 31, 2019 and 2018; (v) the Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2019 and 2018; and (vi) the Notes to the Condensed Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.



		ScanSource, Inc.

		/s/ MICHAEL L. BAUR
		Michael L. Baur
Date:	February 4, 2020	Chairman and Chief Executive Officer (Principal Executive Officer)