Avnet will host a Webcast of its quarterly teleconference today at 2:00 p.m. Eastern Time. The live Webcast event, as well as other financial information including financial statement reconciliations of GAAP and non-GAAP financial measures, will be available through www.ir.avnet.com. Please log onto the site 15 minutes prior to the start of the event to register or download any necessary software. An archive copy of the presentation will also be available after the Webcast.
For a listing of Avnet’s upcoming events and other information, please visit Avnet’s investor relations website at www.ir.avnet.com.
About Avnet
Avnet, Inc. (NYSE: AVT), a Fortune 500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers globally. Avnet accelerates its partners' success by connecting the world's leading technology suppliers with a broad base of customers by providing cost-effective, value-added services and solutions. For the fiscal year ended June 29, 2013, Avnet generated sales of $25.5 billion. For more information, visit www.avnet.com. (AVT_IR)
|
AVNET, INC. FINANCIAL HIGHLIGHTS (MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) |
|||||||||||||||||||||
| Second Quarters Ended | Six Months Ended | ||||||||||||||||||||
|
December
|
December
|
December
|
December
|
||||||||||||||||||
| Sales | $ | 7,421.9 | $ | 6,699.5 | $ | 13,767.3 | $ | 12,569.5 | |||||||||||||
| Income before income taxes | 188.6 | 168.9 | 360.5 | 277.8 | |||||||||||||||||
| Net income | 124.9 | 137.5 | 245.5 | 237.8 | |||||||||||||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.91 | $ | 1.01 | $ | 1.78 | $ | 1.71 | |||||||||||||
| Diluted | $ | 0.89 | $ | 0.99 | $ | 1.75 | $ | 1.69 | |||||||||||||
|
AVNET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (THOUSANDS EXCEPT PER SHARE DATA) (UNAUDITED) |
||||||||||||||||||||||
| Second Quarters Ended | Six Months Ended | |||||||||||||||||||||
|
December
|
December
|
December
|
December
|
|||||||||||||||||||
| Sales | $ | 7,421,854 | $ | 6,699,465 | $ | 13,767,329 | $ | 12,569,522 | ||||||||||||||
| Cost of sales | 6,573,221 | 5,931,002 | 12,183,526 | 11,116,682 | ||||||||||||||||||
| Gross profit | 848,633 | 768,463 | 1,583,803 | 1,452,840 | ||||||||||||||||||
| Selling, general and administrative expenses | 598,619 | 547,984 | 1,142,703 | 1,094,980 | ||||||||||||||||||
|
Restructuring, integration and other expenses |
28,442 | 24,906 | 40,541 | 62,314 | ||||||||||||||||||
| Operating income | 221,572 | 195,573 | 400,559 | 295,546 | ||||||||||||||||||
| Other income (expense), net | (4,794 | ) | 1,060 | (3,999 | ) | 2,543 | ||||||||||||||||
| Interest expense | (28,226 | ) | (27,798 | ) | (55,203 | ) | (51,688 | ) | ||||||||||||||
|
Gain on legal settlement, bargain purchase and other |
— | 59 | 19,137 | 31,350 | ||||||||||||||||||
| Income before income taxes | 188,552 | 168,894 | 360,494 | 277,751 | ||||||||||||||||||
| Income tax provision | 63,688 | 31,413 | 115,006 | 39,965 | ||||||||||||||||||
| Net income | $ | 124,864 | $ | 137,481 | $ | 245,488 | $ | 237,786 | ||||||||||||||
| Net earnings per share: | ||||||||||||||||||||||
| Basic | $ | 0.91 | $ | 1.01 | $ | 1.78 | $ | 1.71 | ||||||||||||||
| Diluted | $ | 0.89 | $ | 0.99 | $ | 1.75 | $ | 1.69 | ||||||||||||||
| Shares used to compute earnings per share: | ||||||||||||||||||||||
| Basic | 137,702 | 136,776 | 137,558 | 138,772 | ||||||||||||||||||
| Diluted | 140,144 | 138,575 | 139,934 | 140,967 | ||||||||||||||||||
| Cash dividends paid per common share | $ | 0.15 | $ | — | $ | 0.30 | $ | — | ||||||||||||||
|
AVNET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (THOUSANDS) (UNAUDITED) |
|||||||||||
|
December 28,
|
June 29,
|
||||||||||
| Assets: | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 779,331 | $ | 1,009,343 | |||||||
| Receivables, net | 5,708,345 | 4,868,973 | |||||||||
| Inventories | 2,549,323 | 2,264,341 | |||||||||
| Prepaid and other current assets | 198,739 | 214,221 | |||||||||
| Total current assets | 9,235,738 | 8,356,878 | |||||||||
| Property, plant and equipment, net | 511,759 | 492,606 | |||||||||
| Goodwill | 1,358,451 | 1,261,288 | |||||||||
| Intangible assets, net | 209,076 | 172,212 | |||||||||
| Other assets | 170,274 | 191,696 | |||||||||
| Total assets | $ | 11,485,298 | $ | 10,474,680 | |||||||
| Liabilities and Shareholders' Equity: | |||||||||||
| Current liabilities: | |||||||||||
| Short-term borrowings | $ | 968,757 | $ | 838,190 | |||||||
| Accounts payable | 3,704,570 | 3,278,152 | |||||||||
| Accrued expenses and other | 777,146 | 705,102 | |||||||||
| Total current liabilities | 5,450,473 | 4,821,444 | |||||||||
| Long-term debt | 1,227,575 | 1,206,993 | |||||||||
| Other long-term liabilities | 178,834 | 157,118 | |||||||||
| Total liabilities | 6,856,882 | 6,185,555 | |||||||||
| Shareholders’ equity | 4,628,416 | 4,289,125 | |||||||||
| Total liabilities and shareholders’ equity | $ | 11,485,298 | $ | 10,474,680 | |||||||
|
AVNET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (THOUSANDS) (UNAUDITED) |
||||||||||||
| First Halves Ended | ||||||||||||
|
December 28,
|
December 29,
|
|||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 245,488 | $ | 237,786 | ||||||||
| Non-cash and other reconciling items: | ||||||||||||
| Depreciation | 44,731 | 42,764 | ||||||||||
| Amortization | 20,903 | 15,076 | ||||||||||
| Deferred income taxes | 11,925 | 532 | ||||||||||
| Stock-based compensation | 28,940 | 27,684 | ||||||||||
| Gain on bargain purchase | — | (31,350 | ) | |||||||||
| Other, net | 51,616 | 30,829 | ||||||||||
| Changes in (net of effects from businesses acquired): | ||||||||||||
| Receivables | (771,728 | ) | (399,943 | ) | ||||||||
| Inventories | (158,470 | ) | 246,192 | |||||||||
| Accounts payable | 348,521 | 250,862 | ||||||||||
| Accrued expenses and other, net | 23,875 | (13,024 | ) | |||||||||
| Net cash flows (used) provided by operating activities | (154,199 | ) | 407,408 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Issuance of notes in public offering, net of issuance cost | — | 349,258 | ||||||||||
|
Borrowings (repayments) under accounts receivable securitization program, net |
60,000 | (366,000 | ) | |||||||||
| Borrowings (repayments) of bank and other debt, net | 55,436 | (171,834 | ) | |||||||||
| Repurchases of common stock | — | (207,192 | ) | |||||||||
| Dividends paid on common stock | (41,263 | ) | — | |||||||||
| Other, net | 4,293 | 3,351 | ||||||||||
| Net cash flows provided (used) by financing activities | 78,466 | (392,417 | ) | |||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of property, plant and equipment | (47,024 | ) | (55,298 | ) | ||||||||
| Acquisitions of businesses, net of cash acquired | (116,882 | ) | (170,960 | ) | ||||||||
| Cash proceeds from divestitures, net of cash divested | — | 3,613 | ||||||||||
| Other, net | 1,800 | 37 | ||||||||||
| Net cash flows used for investing activities | (162,106 | ) | (222,608 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 7,827 | 16,032 | ||||||||||
| Cash and cash equivalents: | ||||||||||||
| — (decrease) increase | (230,012 | ) | (191,585 | ) | ||||||||
| — at beginning of period | 1,009,343 | 1,006,864 | ||||||||||
| — at end of period | $ | 779,331 | $ | 815,279 | ||||||||
|
AVNET, INC. SEGMENT INFORMATION (MILLIONS) (UNAUDITED) |
||||||||||||||||||||||
| Second Quarters Ended | Six Months Ended | |||||||||||||||||||||
|
December
|
December
|
December
|
December
|
|||||||||||||||||||
| Sales: | ||||||||||||||||||||||
| Electronics Marketing | $ | 4,154.8 | $ | 3,673.5 | $ | 8,092.9 | $ | 7,326.6 | ||||||||||||||
| Technology Solutions | 3,267.1 | 3,026.0 | 5,674.4 | 5,242.9 | ||||||||||||||||||
| Consolidated | $ | 7,421.9 | $ | 6,699.5 | $ | 13,767.3 | $ | 12,569.5 | ||||||||||||||
| Operating Income: | ||||||||||||||||||||||
| Electronics Marketing | $ | 171.7 | $ | 143.0 | $ | 347.5 | $ | 292.1 | ||||||||||||||
| Technology Solutions | 120.2 | 113.1 | 182.8 | 151.8 | ||||||||||||||||||
| Corporate | (28.7 | ) | (27.6 | ) | (67.6 | ) | (70.9 | ) | ||||||||||||||
| 263.2 | 228.5 | 462.7 | 373.0 | |||||||||||||||||||
|
Restructuring, integration and other
expenses |
(28.4 | ) | (24.9 | ) | (40.5 | ) | (62.3 | ) | ||||||||||||||
| Amortization of intangible assets and other | (13.2 | ) | (8.0 | ) | (21.6 | ) | (15.1 | ) | ||||||||||||||
| Consolidated Operating Income | $ | 221.6 | $ | 195.6 | $ | 400.6 | $ | 295.6 | ||||||||||||||
