Fifteen months after forming, Tampa Bay’s largest public company finally has a full fiscal year on the books.
TD Synnex, a technology distribution company co-headquartered in Largo and Fremont, California, posted annual revenues of $62.3 billion on Tuesday — its first complete annual results since it formed through a merger between Largo’s Tech Data and Fremont’s Synnex in September 2021.
The results, covering December 2021 through November 2022, included $651.3 million in net income. The company beat operating margin and income targets, with CEO Rich Hume calling it “truly a phenomenal year.”
“We began the year with a lot on our to-do list relative to the merger and integration activities, and ended the year having met or exceeded our objectives,” Hume said on a conference call with investors. “Our teams continued to provide consistent and uninterrupted service to our partners post-merger, and the financial results we delivered are confirmation of the strong value proposition that we are delivering to the market.”
The merger means any full year-over-year revenue comparisons would be incomplete. But Tuesday’s report does feature TD Synnex’s first year-over-year quarterly comparison. From September to November 2022, the combined company brought in $16.2 billion in revenues and $221.2 million in net income, up from $15.6 billion and $119.4 million in 2021.
At the time of the merger, the company indicated it would aim to save $100 million in synergistic cuts. It ended up cutting $145 million.
The numbers officially make TD Synnex nearly twice as large as Tampa Bay’s second-largest public company. St. Petersburg technology manufacturer Jabil in October posted annual revenues of $33.5 billion.
Along with its annual earnings, TD Synnex announced its board of directors had approved a new three-year, $1 billion stock buyback program, along with a quarterly dividend of 35 cents per share. The company last year returned $240 million to stockholders through share repurchases and dividends.
A new 1% tax on corporate stock buybacks by publicly traded companies went into effect this month, part of the Inflation Reduction Act signed by President Joe Biden in August. Critics of stock buyback programs argue they largely benefit executives and large shareholders, and that companies should instead use profits to reinvest in and grow their business.
While executives pointed to several potential headwinds in 2023 — including continued interest rate hikes and volatile European exchange rates — the new tax wasn’t among them.
“We’re very, very pleased in the fundamentals of our business,” Hume said.
TD Synnex stock spiked above $105 per share when markets opened Tuesday, before settling around $104 by midmorning.