[April 23, 2015] |
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Avnet, Inc. Reports Third Quarter Fiscal Year 2015 Results
Avnet, Inc. (NYSE:AVT) today announced results for the third quarter
fiscal year 2015 ended March 28, 2015.
Q3 Fiscal 2015 Results
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THIRD QUARTERS ENDED
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March 28, 2015
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March 29, 2014
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Change
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$ in millions, except per share data
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Sales
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$
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6,736.9
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$
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6,683.6
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0.8
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%
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Constant Currency (1)
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7.0
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%
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GAAP Operating Income
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203.7
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184.8
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10.2
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%
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Adjusted Operating Income (2)
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230.4
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223.8
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3.0
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%
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GAAP Net Income
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121.5
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113.9
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6.7
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%
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Adjusted Net Income (2)
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143.5
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144.1
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(0.4
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)%
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GAAP Diluted EPS
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$
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0.88
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$
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0.81
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8.6
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%
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Adjusted Diluted EPS (2)
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$
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1.04
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$
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1.03
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1.0
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%
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_______________
(1)
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Year-over-year sales growth rate excluding the impact of changes in
foreign currency exchange rates.
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(2)
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A reconciliation of non-GAAP financial measures to GAAP financial
measures is presented in the Non-GAAP Financial Information section
in this press release.
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Sales for the quarter ended March 28, 2015 increased 7.0% organically
on a constant currency basis and reported sales increased 0.8% year
over year to $6.74 billion
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Adjusted operating income of $230.4 million increased 3.0% year over
year and adjusted operating income margin of 3.4% increased 7 basis
points year over year
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Adjusted net income of $143.5 million was essentially flat from the
year ago quarter and adjusted diluted earnings per share of $1.04
increased 1.0% year over year
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Excluding the impact of changes in foreign currency exchange rates,
adjusted diluted earnings per share would have been $1.15, which
represents an increase of approximately 12% from the year ago quarter
Rick Hamada, Chief Executive Officer, commented, "I believe our team has
done a good job navigating the continuing environment of mixed signals
among various business and economic indicators, including the
significant strengthening of the U.S. Dollar during our March quarter.
Our organic growth rate improved this quarter as revenue increased 7.0%
in constant currency over the prior year with both operating groups
contributing to the momentum. Our EMEA region grew 7.4% year over year
on an organic basis in constant currency driven by demand for both
electronic components and enterprise IT products. In our Americas
region, both operating groups grew revenue approximately 4% year over
year while Asia grew close to 7% year over year. Our earnings were also
negatively impacted by a stronger dollar as a 13.8% year-over-year
growth in our adjusted operating income in local currencies was reduced
to a 3.0% reported increase. Adjusted operating income margin increased
7 basis points year over year and adjusted EPS was $1.04. Despite the
understandable questions about growth in this current environment, we
have thus far not seen any material changes to demand trends as
reflected on our dashboards."
Avnet Electronics Marketing Results
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Year-over-
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Year Growth Rates
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Q3 FY15
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Reported and
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Sales
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Organic Sales
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(in millions)
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EM Total
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$
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4,219.5
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2.1
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%
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Constant Currency (1)
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8.7
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%
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Americas
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$
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1,237.2
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3.7
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%
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EMEA
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$
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1,251.9
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(9.7
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)%
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Constant Currency (1)
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8.2
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%
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Asia
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$
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1,730.4
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11.4
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%
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Q3 FY15
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Q3 FY14
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Change
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Operating Income
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$
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197.3
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$
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193.4
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2.0
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%
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Operating Income Margin
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4.7
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%
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4.7
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%
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0
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bps
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_______________
(1)
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Year-over-year sales growth rate excluding the impact of changes in
foreign currency exchange rates.
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Sales increased 8.7% organically on a constant currency basis and
reported sales increased 2.1% year over year to $4.2 billion
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Operating income margin was flat year over year at 4.7% as strength in
the Asia and EMEA regions was offset by weakness due to the
translation impact of the strong U.S. Dollar
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Working capital (defined as receivables plus inventories less accounts
payables) was essentially flat from the year ago quarter in reported
dollars but increased 9.9% in constant currency primarily in support
of the organic sales growth
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Return on working capital (ROWC) increased 8 basis points year over
year and increased 128 basis points sequentially
Mr. Hamada added, "Electronics Marketing's (EM) streak of year-over-year
organic growth reached eight quarters as sales increased 8.7%
organically in constant currency, 2.1% on a reported basis, with all
three regions contributing to this growth. Year over year, EM Asia
organic sales grew double digits for a seventh consecutive quarter while
EMEA grew 8.2% in constant currency and the Americas grew 3.7%. In our
March quarter, EM EMEA's operating income in local currencies grew 2.7
times faster than revenue and operating income margin expanded 91 basis
points year over year. These strong organic results were significantly
reduced at the EM global level after translation into U.S. Dollars. EM's
reported operating income increased 2% year over year with operating
income margin flat to the year ago quarter. Our EM team continued their
disciplined approach to managing working capital as our velocity and
returns improved year over year. With our book to bill ratio above
parity for the quarter and a seasonal outlook for June sales, we remain
encouraged about our prospects for continued profitable growth from our
global EM business."
Avnet Technology Solutions Results
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Year-over-
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Year Growth Rates
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Q3 FY15
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Reported and
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Sales
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Organic Sales
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(in millions)
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TS Total
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$
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2,517.3
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(1.3
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)%
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Constant Currency (1)
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4.3
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%
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Americas
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$
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1,440.5
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4.9
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%
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EMEA
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$
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717.2
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(7.4
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)%
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Constant Currency (1)
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6.0
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%
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Asia
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$
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359.6
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(10.7
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)%
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Q3 FY15
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Q3 FY14
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Change
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Operating Income
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$
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68.1
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$
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60.9
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11.8
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%
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Operating Income Margin
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2.7
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%
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2.4
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%
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32
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bps
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_______________
(1)
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Year-over-year sales growth rate excluding the impact of changes in
foreign currency exchange rates.
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Sales increased 4.3% organically on a constant currency basis and
decreased 1.3% year over year to $2.5 billion
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Operating income increased 11.8% to $68.1 million and operating income
margin increased 32 basis points year over year to 2.7%
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ROWC increased 365 basis points year over year primarily due to higher
operating income in the Americas region
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At a product level, year-over-year growth in software, storage, and
networking and security was offset by a decline in computing components
Mr. Hamada further added, "In constant currency, Technology Solutions
(TS) sales grew 4.3% led by our EMEA region, which grew 6.0%, and the
Americas, which grew 4.9%. Continued demand for datacenter solutions in
our western regions was offset by a double digit decline in our
computing components business and the translation impact of the strong
U.S. Dollar as TS reported revenue declined 1.3% from the prior year
quarter. TS delivered strong leverage as operating income grew 11.8%
year over year and operating income margin increased 32 basis points
driven by a significant improvement in the Americas region. At TS EMEA,
which has been improving their financial performance throughout fiscal
2015, operating income grew 22% in local currencies through the first
nine months of fiscal 2015 and operating income margin expanded 38 basis
points. Continued investment in converged solutions, including
private/hybrid cloud, and greater software mix has been driving steady
growth for TS. We will continue to focus our resources on higher growth
opportunities as we progress towards our stated goals."
Cash Flow/Dividend
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Cash generated from operations was approximately $60 million in the
March quarter and for the trailing twelve months, cash generated from
operations was approximately $318 million
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Cash and cash equivalents at the end of the quarter was $803.5
million; net debt (total debt less cash and cash equivalents) was
approximately $1.3 billion
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The Company repurchased approximately 925,000 shares during the
quarter at an aggregate cost of $38.8 million. Through the first nine
months of the fiscal year, the Company repurchased approximately 3.6
million shares at an aggregate cost of $147.6 million. Entering the
fourth quarter, the Company had approximately $318.3 million remaining
under the current repurchase authorization
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The Company paid a quarterly dividend of $0.16 per share or $21.7
million and $0.48 per share or $65.6 million for the first nine months
of the fiscal year
Kevin Moriarty, Chief Financial Officer, stated, "Some of our growth in
profits this quarter were reinvested in working capital to support the
strong year-over-year top-line organic growth in local currency. Even
with the strong organic growth, the team did an effective job managing
working capital as our cash cycle declined half a day from the year ago
quarter driven by a one day decline in days of inventory. During the
quarter, we returned approximately $61 million of cash to shareholders
through our dividend and disciplined share repurchase program, which
brings our total cash returned to shareholders to $213 million in fiscal
2015. With our strong balance sheet and ample liquidity, we remain well
positioned to fund future profitable growth while continuing to return
cash to shareholders via both our dividend and disciplined share
repurchase program."
Outlook for Fourth Quarter of Fiscal 2015
Ending on June 27, 2015
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EM sales are expected to be in the range of $4.15 billion to $4.45
billion and TS sales are expected to be in the range of $2.45 billion
to $2.75 billion
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Avnet sales are expected to be in the range of $6.6 billion and $7.2
billion
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Adjusted diluted earnings per share is expected to be in the range of
$1.02 to $1.12 per share
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The guidance assumes 138 million average diluted shares outstanding
and a tax rate of 27% to 31%
The above guidance excludes the amortization of intangibles and any
potential restructuring, integration and other expenses. In addition,
the above guidance assumes that the average U.S. Dollar to Euro currency
exchange rate for the fourth quarter of fiscal 2015 is $1.08 to €1.00.
This compares with an average exchange rate of $1.37 to €1.00 in the
fourth quarter of fiscal 2014 and $1.13 to €1.00 in the third quarter of
fiscal 2015.
Forward-Looking Statements
This document contains certain "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements are based on management's current expectations and are
subject to uncertainty and changes in facts and circumstances. The
forward-looking statements herein include statements addressing future
financial and operating results of Avnet and may include words such as
"will," "anticipate," "estimate," "forecast," "expect," "feel,"
"believe," and "should," and other words and terms of similar meaning in
connection with any discussions of future operating or financial
performance, business prospects or market conditions. Actual results may
differ materially from the expectations contained in the forward-looking
statements.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the Company's ability to retain and grow market share and to
generate additional cash flow, risks associated with any acquisition
activities and the successful integration of acquired companies,
declines in sales, changes in business conditions and the economy in
general, changes in market demand and pricing pressures, any material
changes in the allocation of product or product rebates by suppliers,
and other competitive and/or regulatory factors affecting the businesses
of Avnet generally.
More detailed information about these and other factors is set forth in
Avnet's filings with the Securities and Exchange Commission, including
the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Except as
required by law, Avnet is under no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Non-GAAP Financial Information
In addition to disclosing financial results that are determined in
accordance with generally accepted accounting principles in the United
States ("GAAP"), the Company also discloses in this document certain
non-GAAP financial information including adjusted operating income,
adjusted net income and adjusted diluted earnings per share, as well as
sales adjusted for the impact of acquisitions and other items (as
defined in the Organic Sales section of this document). There are also
references to the impact of foreign currency translation in the
discussion of the Company's results of operations. When the U.S. Dollar
strengthens and the stronger exchange rates of the current year are used
to translate the results of operations of Avnet's subsidiaries
denominated in foreign currencies, the resulting impact is a decrease in
U.S. Dollars of reported results. Conversely, when the U.S. Dollar
weakens and the weaker exchange rates of the current year are used to
translate the results of operations of Avnet's subsidiaries denominated
in foreign currencies, the resulting impact is an increase in U.S.
Dollars of reported results. In the discussion of the Company's results
of operations, results excluding this impact are referred to as
"excluding the translation impact of changes in foreign currency
exchange rates" or "constant currency." Management believes organic
sales and sales in constant currency are useful measures for evaluating
current period performance as compared with prior periods and for
understanding underlying trends.
Management believes that operating income adjusted for (i)
restructuring, integration and other expenses and (ii) amortization of
acquired intangible assets and other, is a useful measure to help
investors better assess and understand the Company's operating
performance, especially when comparing results with previous periods or
forecasting performance for future periods, primarily because management
views the excluded items to be outside of Avnet's normal operating
results or non-cash in nature. Management analyzes operating income
without the impact of these items as an indicator of ongoing margin
performance and underlying trends in the business. Management also uses
these non-GAAP measures to establish operational goals and, in many
cases, for measuring performance for compensation purposes.
Management believes net income and diluted EPS adjusted for (i) the
impact of the items described above, (ii) certain items impacting income
tax expense and (iii) the gain on legal settlement, is useful to
investors because it provides a measure of the Company's net
profitability on a more comparable basis to historical periods and
provides a more meaningful basis for forecasting future performance.
Additionally, because of management's focus on generating shareholder
value, of which net profitability is a primary driver, management
believes net income and diluted EPS excluding the impact of these items
provides an important measure of the Company's net results for the
investing public.
Other metrics management monitors in its assessment of business
performance include return on working capital (ROWC), return on capital
employed (ROCE) and working capital velocity (WC velocity).
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ROWC is defined as annualized adjusted operating income (as defined
above) divided by the sum of the monthly average balances of
receivables and inventories less accounts payable.
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ROCE is defined as annualized, tax effected adjusted operating income
(as defined above) divided by the monthly average balances of
interest-bearing debt and equity (including the impact of adjustments
to operating income discussed above) less cash and cash equivalents.
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WC velocity is defined as annualized sales divided by the sum of the
monthly average balances of receivables and inventories less accounts
payable.
Any analysis of results and outlook on a non-GAAP basis should be used
as a complement to, and in conjunction with, results presented in
accordance with GAAP.
Third Quarter Fiscal 2015
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Third Quarter Fiscal 2015
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Income
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Before
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Operating
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Income
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Diluted
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Income
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Taxes
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Net Income
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EPS*
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$ in thousands, except per share amounts
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GAAP results
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$
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203,712
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$
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170,896
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$
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121,529
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0.88
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Restructuring, integration and other expenses
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15,494
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15,494
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12,035
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0.09
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Amortization of intangible assets and other
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11,187
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11,187
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7,708
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0.06
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Income tax adjustments
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-
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-
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2,192
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0.02
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Total adjustments
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26,681
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26,681
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21,935
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0.16
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Adjusted results
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$
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230,393
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$
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197,577
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$
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143,464
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$
|
1.04
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* Does not foot due to rounding
Items impacting the third quarter of fiscal 2015 consisted of the
following:
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Restructuring, integration and other expenses of $15.5 million before
tax consisted of $3.6 million for severance, $0.7 million for facility
exit and asset impairment related costs, $3.8 million for other
restructuring costs, $5.3 million for integration-related costs, $2.4
million for other costs, and net reversals of $0.3 million to adjust
estimates for prior period restructuring liabilities. Restructuring,
integration and other expenses after tax was $12.0 million;
-
Amortization expense and other substantially all of which related to
acquired intangible assets of $11.2 million before tax and $7.7
million after tax; and
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An income tax expense, net of $2.2 million primarily related to
certain items impacting the effective income tax rate in the third
quarter of fiscal 2015.
Second Quarter Fiscal 2015
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Second Quarter Fiscal 2015
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Income
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Before
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Operating
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Income
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Diluted
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Income
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Taxes
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Net Income
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EPS
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$ in thousands, except per share amounts
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GAAP results
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$
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250,287
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$
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220,097
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$
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163,706
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$
|
1.18
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Restructuring, integration and other Expenses
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13,257
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13,257
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10,188
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|
0.07
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Amortization of intangible assets and other
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11,052
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11,052
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7,675
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0.06
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Income tax adjustments
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-
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-
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(5,597
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)
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(0.04
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)
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Total adjustments
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24,309
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24,309
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12,266
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0.09
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Adjusted results
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$
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274,596
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$
|
244,406
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$
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175,972
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$
|
1.27
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|
Items impacting the second quarter of fiscal 2015 consisted of the
following:
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Restructuring, integration and other expenses of $13.3 million before
tax consisted of $1.7 million for severance, $4.1 million for facility
exit and asset impairment related costs, $0.8 million for other
restructuring costs, $4.0 million for integration-related costs, $2.1
million for other costs, and a net expense of $0.6 million to adjust
estimates for prior period restructuring liabilities. Restructuring,
integration and other expenses after tax was $10.2 million;
-
Amortization expense and other substantially all of which related to
acquired intangible assets of $11.1 million before tax and $7.7
million after tax; and
-
An income tax benefit, net of $5.6 million primarily related to
certain items impacting the effective income tax rate in the second
quarter of fiscal 2015.
Third Quarter Fiscal 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2014
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
Income
|
|
|
|
|
|
|
Diluted
|
|
|
|
Income
|
|
|
Taxes
|
|
|
Net Income
|
|
|
EPS
|
|
|
|
$ in thousands, except per share amounts
|
GAAP results
|
|
|
$
|
184,843
|
|
|
$
|
164,993
|
|
|
|
$
|
113,851
|
|
|
|
$
|
0.81
|
|
Restructuring, integration and other expenses
|
|
|
|
26,083
|
|
|
|
26,083
|
|
|
|
|
19,275
|
|
|
|
|
0.14
|
|
Gain on legal settlement
|
|
|
|
-
|
|
|
|
(2,965
|
)
|
|
|
|
(1,811
|
)
|
|
|
|
(0.01
|
)
|
Amortization of intangible assets and other
|
|
|
|
12,868
|
|
|
|
12,868
|
|
|
|
|
9,043
|
|
|
|
|
0.06
|
|
Income tax adjustments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,744
|
|
|
|
|
0.03
|
|
Total adjustments
|
|
|
|
38,951
|
|
|
|
35,986
|
|
|
|
|
30,251
|
|
|
|
|
0.22
|
|
Adjusted results
|
|
|
$
|
223,794
|
|
|
$
|
200,979
|
|
|
|
$
|
144,102
|
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting the third quarter of fiscal 2014 consisted of the
following:
-
Restructuring, integration and other expenses of $26.1 million before
tax consisted of $15.4 million for severance, $3.9 million for
facility exit and asset impairment related costs, $2.3 million for
other costs, $3.9 million for integration-related costs, and a net
expense of $0.6 million to adjust estimates for prior period
restructuring liabilities. Restructuring, integration and other
expenses after tax was $19.3 million;
-
Gain on legal settlement of $3.0 million before tax and $1.8 million
after tax related to a settlement payment received during the third
quarter of fiscal 2014;
-
Amortization expense and other substantially all of which related to
acquired intangible assets of $12.9 million before tax and $9.0
million after tax; and
-
An income tax expense, net of $3.7 million primarily related to
certain items impacting the effective income tax rate in the third
quarter of fiscal 2014.
Organic Sales
Organic sales is defined as reported sales adjusted for the impact of
acquisitions and divestitures by adjusting Avnet's prior periods to
include the sales of acquired businesses and exclude the sales of
divested businesses as if the acquisitions and divestitures had occurred
at the beginning of the earliest period presented. Organic sales in
constant currency is defined as organic sales (as defined above)
excluding the impact of changes in foreign currency exchange rates.
The following table presents the reconciliation of reported sales to
organic sales for the first nine months of fiscal 2014. For quarterly
periods subsequent to the first quarter of fiscal 2014, reported sales
are equivalent to organic sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
As Reported
|
|
|
Acquisitions/
|
|
|
Organic Sales -
|
|
|
|
Fiscal 2014
|
|
|
Divestitures
|
|
|
Fiscal 2014
|
|
|
|
(in thousands)
|
Avnet, Inc.
|
|
|
$
|
20,450,945
|
|
|
$
|
119,950
|
|
|
$
|
20,570,895
|
EM
|
|
|
|
12,225,911
|
|
|
|
119,950
|
|
|
|
12,345,861
|
EMEA
|
|
|
|
3,700,658
|
|
|
|
119,950
|
|
|
|
3,820,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Acquisition/Divestiture" as presented in the preceding table includes
the acquisition of MSC Investoren GmbH ("MSC"), in October 2013 in the
EM EMEA region, which impacted the year-over-year sales comparisons.
ROWC, ROCE and WC Velocity
The following table (in thousands) presents the calculation for ROWC,
ROCE and WC velocity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY15
|
|
|
|
Q3 FY14
|
|
|
|
Q2 FY15
|
|
Sales
|
|
|
|
|
$
|
6,736,860
|
|
|
|
|
$
|
6,683,616
|
|
|
|
|
$
|
7,551,880
|
|
|
Sales, annualized
|
|
|
(a)
|
|
$
|
26,947,440
|
|
|
|
|
$
|
26,734,464
|
|
|
|
|
$
|
30,207,520
|
|
|
Adjusted operating income (1)
|
|
|
|
|
$
|
230,393
|
|
|
|
|
$
|
223,794
|
|
|
|
|
$
|
274,594
|
|
|
Adjusted annualized operating income
|
|
|
(b)
|
|
$
|
921,572
|
|
|
|
|
$
|
895,176
|
|
|
|
|
$
|
1,098,384
|
|
|
Adjusted effective tax rate (2)
|
|
|
|
|
|
27.7
|
|
%
|
|
|
|
27.9
|
|
%
|
|
|
|
27.7
|
|
%
|
Adjusted annualized operating income, after tax
|
|
|
(c)
|
|
$
|
666,665
|
|
|
|
|
$
|
645,601
|
|
|
|
|
$
|
794,571
|
|
|
Average monthly working capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
$
|
5,251,882
|
|
|
|
|
$
|
5,165,610
|
|
|
|
|
$
|
5,318,083
|
|
|
Inventories
|
|
|
|
|
$
|
2,564,071
|
|
|
|
|
$
|
2,592,568
|
|
|
|
|
$
|
2,700,424
|
|
|
Accounts payable
|
|
|
|
|
$
|
(3,344,479
|
)
|
|
|
|
$
|
(3,250,104
|
)
|
|
|
|
$
|
(3,437,897
|
)
|
|
Average working capital
|
|
|
(d)
|
|
$
|
4,471,474
|
|
|
|
|
$
|
4,508,074
|
|
|
|
|
$
|
4,580,610
|
|
|
Average monthly capital employed
|
|
|
(e)
|
|
$
|
6,028,015
|
|
|
|
|
$
|
6,034,183
|
|
|
|
|
$
|
6,161,858
|
|
|
ROWC = (b) / (d)
|
|
|
|
|
|
20.6
|
|
%
|
|
|
|
19.9
|
|
%
|
|
|
|
24.0
|
|
%
|
WC Velocity = (a) / (d)
|
|
|
|
|
|
6.0
|
|
|
|
|
|
5.9
|
|
|
|
|
|
6.6
|
|
|
ROCE = (c) / (e)
|
|
|
|
|
|
11.1
|
|
%
|
|
|
|
10.7
|
|
%
|
|
|
|
12.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
(1)
|
|
See reconciliation to GAAP amounts in the preceding tables in this
Non-GAAP Financial Information section.
|
(2)
|
|
Adjusted effective tax rate for each quarterly period in a fiscal
year is based upon the currently anticipated annual effective tax
rate, excluding the tax effect of the items described above in the
reconciliation to GAAP amounts in this Non-GAAP Financial
Information section.
|
Teleconference and Upcoming Events
Avnet will host a quarterly teleconference today at 2:00 p.m. Eastern
Time. Financial information including financial statement
reconciliations of GAAP to 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
teleconference will also be available after the call.
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 28, 2014, Avnet
generated sales of $27.5 billion. For more information, visit www.avnet.com.
(AVT_IR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarters Ended
|
|
|
Nine Months Ended
|
|
|
|
March 28,
|
|
|
March 29,
|
|
|
March 28,
|
|
|
March 29,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(Thousands, except per share data)
|
Sales
|
|
|
$
|
6,736,860
|
|
|
|
$
|
6,683,616
|
|
|
|
$
|
21,128,326
|
|
|
|
$
|
20,450,945
|
|
Cost of sales
|
|
|
|
5,962,506
|
|
|
|
|
5,878,704
|
|
|
|
|
18,721,003
|
|
|
|
|
18,062,230
|
|
Gross profit
|
|
|
|
774,354
|
|
|
|
|
804,912
|
|
|
|
|
2,407,323
|
|
|
|
|
2,388,715
|
|
Selling, general and administrative expenses
|
|
|
|
555,148
|
|
|
|
|
593,986
|
|
|
|
|
1,713,056
|
|
|
|
|
1,736,689
|
|
Restructuring, integration and other expenses
|
|
|
|
15,494
|
|
|
|
|
26,083
|
|
|
|
|
47,071
|
|
|
|
|
66,624
|
|
Operating income
|
|
|
|
203,712
|
|
|
|
|
184,843
|
|
|
|
|
647,196
|
|
|
|
|
585,402
|
|
Other (expense) income , net
|
|
|
|
(8,945
|
)
|
|
|
|
2,511
|
|
|
|
|
(15,963
|
)
|
|
|
|
(1,488
|
)
|
Interest expense
|
|
|
|
(23,871
|
)
|
|
|
|
(25,326
|
)
|
|
|
|
(71,936
|
)
|
|
|
|
(80,529
|
)
|
Gain on legal settlement
|
|
|
|
-
|
|
|
|
|
2,965
|
|
|
|
|
-
|
|
|
|
|
22,102
|
|
Income before income taxes
|
|
|
|
170,896
|
|
|
|
|
164,993
|
|
|
|
|
559,297
|
|
|
|
|
525,487
|
|
Income tax expense
|
|
|
|
49,367
|
|
|
|
|
51,142
|
|
|
|
|
146,117
|
|
|
|
|
166,148
|
|
Net income
|
|
|
$
|
121,529
|
|
|
|
$
|
113,851
|
|
|
|
$
|
413,180
|
|
|
|
$
|
359,339
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
0.89
|
|
|
|
$
|
0.82
|
|
|
|
|
3.02
|
|
|
|
$
|
2.61
|
|
Diluted
|
|
|
|
0.88
|
|
|
|
$
|
0.81
|
|
|
|
|
2.97
|
|
|
|
$
|
2.57
|
|
Shares used to compute earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
136,046
|
|
|
|
|
138,418
|
|
|
|
|
136,965
|
|
|
|
|
137,845
|
|
Diluted
|
|
|
|
137,721
|
|
|
|
|
140,179
|
|
|
|
|
139,181
|
|
|
|
|
140,015
|
|
Cash dividends paid per common share
|
|
|
$
|
0.16
|
|
|
|
$
|
0.15
|
|
|
|
$
|
0.48
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
|
June 28,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
(Thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
803,468
|
|
|
$
|
928,971
|
Receivables, net
|
|
|
|
4,994,751
|
|
|
|
5,220,528
|
Inventories
|
|
|
|
2,474,402
|
|
|
|
2,613,363
|
Prepaid and other current assets
|
|
|
|
211,336
|
|
|
|
191,337
|
Total current assets
|
|
|
|
8,483,957
|
|
|
|
8,954,199
|
Property, plant and equipment, net
|
|
|
|
548,433
|
|
|
|
534,999
|
Goodwill
|
|
|
|
1,262,533
|
|
|
|
1,348,468
|
Intangible assets, net
|
|
|
|
134,837
|
|
|
|
184,308
|
Other assets
|
|
|
|
184,745
|
|
|
|
233,543
|
Total assets
|
|
|
$
|
10,614,505
|
|
|
$
|
11,255,517
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
|
$
|
350,277
|
|
|
$
|
865,088
|
Accounts payable
|
|
|
|
3,272,030
|
|
|
|
3,402,369
|
Accrued expenses and other
|
|
|
|
618,665
|
|
|
|
711,369
|
Total current liabilities
|
|
|
|
4,240,972
|
|
|
|
4,978,826
|
Long-term debt
|
|
|
|
1,725,238
|
|
|
|
1,213,814
|
Other liabilities
|
|
|
|
146,785
|
|
|
|
172,684
|
Total liabilities
|
|
|
|
6,112,995
|
|
|
|
6,365,324
|
Shareholders' equity
|
|
|
|
4,501,510
|
|
|
|
4,890,193
|
Total liabilities and shareholders' equity
|
|
|
$
|
10,614,505
|
|
|
$
|
11,255,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
March 28,
|
|
|
March 29,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
(Thousands)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
413,180
|
|
|
|
$
|
359,339
|
|
Non-cash and other reconciling items:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
70,919
|
|
|
|
|
67,392
|
|
Amortization
|
|
|
|
32,630
|
|
|
|
|
33,081
|
|
Deferred income taxes
|
|
|
|
29,500
|
|
|
|
|
20,850
|
|
Stock-based compensation
|
|
|
|
48,890
|
|
|
|
|
33,896
|
|
Other, net
|
|
|
|
57,766
|
|
|
|
|
54,824
|
|
Changes in (net of effects from businesses acquired):
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
(186,037
|
)
|
|
|
|
(55,853
|
)
|
Inventories
|
|
|
|
(89,994
|
)
|
|
|
|
(114,258
|
)
|
Accounts payable
|
|
|
|
118,449
|
|
|
|
|
(148,825
|
)
|
Accrued expenses and other, net
|
|
|
|
(210,751
|
)
|
|
|
|
(46,541
|
)
|
Net cash flows provided by operating activities
|
|
|
|
284,552
|
|
|
|
|
203,905
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Repayment of notes
|
|
|
|
-
|
|
|
|
|
(300,000
|
)
|
Borrowings under accounts receivable securitization program, net
|
|
|
|
110,000
|
|
|
|
|
230,000
|
|
(Repayments) borrowings of bank and other debt, net
|
|
|
|
(96,372
|
)
|
|
|
|
56,658
|
|
Repurchases of common stock
|
|
|
|
(147,606
|
)
|
|
|
|
(1,252
|
)
|
Dividends paid on common stock
|
|
|
|
(65,602
|
)
|
|
|
|
(62,009
|
)
|
Other, net
|
|
|
|
(13,993
|
)
|
|
|
|
10,390
|
|
Net cash flows used for financing activities
|
|
|
|
(213,573
|
)
|
|
|
|
(66,213
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(133,422
|
)
|
|
|
|
(81,232
|
)
|
Acquisitions of businesses, net of cash acquired
|
|
|
|
-
|
|
|
|
|
(116,882
|
)
|
Other, net
|
|
|
|
(8,765
|
)
|
|
|
|
4,058
|
|
Net cash flows used for investing activities
|
|
|
|
(142,187
|
)
|
|
|
|
(194,056
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(54,295
|
)
|
|
|
|
7,170
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
- decrease
|
|
|
|
(125,503
|
)
|
|
|
|
(49,194
|
)
|
- at beginning of period
|
|
|
|
928,971
|
|
|
|
|
1,009,343
|
|
- at end of period
|
|
|
$
|
803,468
|
|
|
|
$
|
960,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC. SEGMENT INFORMATION (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarters Ended*
|
|
|
Nine Months Ended*
|
|
|
|
March 28, 2015
|
|
|
March 29, 2014
|
|
|
March 28, 2015
|
|
|
March 29, 2014
|
|
|
|
(Millions)
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics Marketing
|
|
|
$
|
4,219.5
|
|
|
|
$
|
4,133.0
|
|
|
|
$
|
13,028.8
|
|
|
|
$
|
12,225.9
|
|
Technology Solutions
|
|
|
|
2,517.3
|
|
|
|
|
2,550.6
|
|
|
|
|
8,099.5
|
|
|
|
|
8,225.0
|
|
Consolidated Sales
|
|
|
$
|
6,736.8
|
|
|
|
$
|
6,683.6
|
|
|
|
$
|
21,128.3
|
|
|
|
$
|
20,450.9
|
|
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics Marketing
|
|
|
$
|
197.3
|
|
|
|
$
|
193.4
|
|
|
|
$
|
591.4
|
|
|
|
$
|
540.9
|
|
Technology Solutions
|
|
|
|
68.1
|
|
|
|
|
60.9
|
|
|
|
|
248.1
|
|
|
|
|
243.7
|
|
Corporate
|
|
|
|
(35.0
|
)
|
|
|
|
(30.5
|
)
|
|
|
|
(110.8
|
)
|
|
|
|
(98.1
|
)
|
|
|
|
|
230.4
|
|
|
|
|
223.8
|
|
|
|
|
728.7
|
|
|
|
|
686.5
|
|
Restructuring, integration and other expenses
|
|
|
|
(15.5
|
)
|
|
|
|
(26.1
|
)
|
|
|
|
(47.1
|
)
|
|
|
|
(66.6
|
)
|
Amortization of intangible assets and other
|
|
|
|
(11.2
|
)
|
|
|
|
(12.9
|
)
|
|
|
|
(34.4
|
)
|
|
|
|
(34.5
|
)
|
Operating Income
|
|
|
$
|
203.7
|
|
|
|
$
|
184.8
|
|
|
|
$
|
647.2
|
|
|
|
$
|
585.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________
* Sub-totals and totals may not foot due to rounding
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