[April 28, 2016] |
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Avnet, Inc. Reports Third Quarter Fiscal Year 2016 Results
Avnet, Inc. (NYSE:AVT) today announced results for the third quarter
fiscal year 2016 ended April 2, 2016.
Q3 Fiscal 2016 Results
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Third Quarters Ended
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April 2, 2016
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March 28, 2015
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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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6,174.7
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$
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6,736.9
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(8.3
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%
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Constant Currency (1)
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(6.9
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%
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GAAP Operating Income
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181.6
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203.7
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(10.9
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%
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Adjusted Operating Income (2)
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205.2
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230.4
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(10.9
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%
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GAAP Net Income
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123.5
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121.5
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1.6
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%
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Adjusted Net Income (2)
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132.6
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143.5
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(7.6
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%
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GAAP Diluted EPS
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$
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0.94
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$
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0.88
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6.8
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%
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Adjusted Diluted EPS (2)
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$
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1.01
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$
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1.04
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(2.9
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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 third quarter ended April 2, 2016, decreased 8.3% year
over year and 6.9% in constant currency to $6.17 billion, organic
sales (as defined later in this release) declined 8.6% year over year
and 7.2% in constant currency
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Adjusted operating income of $205.2 million decreased 10.9% year over
year and adjusted operating income margin of 3.3% decreased 10 basis
points year over year
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Adjusted net income of $132.6 million decreased 7.6% and adjusted
diluted earnings per share of $1.01 decreased 2.9% year over year
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Cash generated from operations was $212.9 million in the March quarter
and $596.5 million for the trailing twelve months
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The Company repurchased approximately 3.7 million shares during the
third quarter representing an investment of $145.7 million, bringing
its fiscal year to date purchases to $331 million, or 8.1 million
shares
Rick Hamada, Chief Executive Officer, commented, "Our sequential revenue
decline was slightly below our normal seasonality given an expected drop
in high volume supply chain engagements in our Asia region of
Electronics Marketing (EM) coupled with weaker than expected demand in
certain legacy technologies at Technology Solutions (TS). These combined
impacts led to an overall sequential revenue decline of approximately
10%. Despite these elements of softness, we did experience stronger than
typical sequential gains in our western regions at EM and notable growth
within areas of our TS portfolio. Enterprise gross profit margin
increased 44 basis points year over year to 11.9% with contributions
from both operating groups. This improvement in gross profit margin was
offset by the decline in revenue as adjusted operating income dollars
declined 10.9% year over year and adjusted operating income margin
decreased 10 basis points. Given the overall trends through our March
quarter, we have initiated incremental, focused expense management where
we have gaps to our expectations while continuing to invest in clearly
identified areas of current and future growth. With our strong
competitive position at the center of the technology supply chain, we
will continue to leverage our broad range of resources and financial
strength in expanding new markets, including the Internet of Things,
embedded solutions, and third platform technologies."
Avnet Electronics Marketing Results
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Year-over-Year Growth Rates
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Q3 FY16
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Reported
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Organic
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Sales
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Sales
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Sales
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(in millions)
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EM Total
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$
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4,041.5
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(4.2
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%
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(4.2
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%
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Constant Currency (1)
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(3.3
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%
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(3.3
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%
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Americas
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$
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1,192.7
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(3.6
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%
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(3.6
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%
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EMEA
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$
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1,330.7
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6.3
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%
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6.3
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%
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Constant Currency (1)
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9.4
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%
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9.4
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%
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Asia
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$
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1,518.1
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(12.3
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%
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(12.3
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%
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Constant Currency (1)
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(12.3
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%
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(12.3
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%
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Q3 FY16
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Q3 FY15
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Change
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Operating Income
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$
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183.3
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$
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197.3
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(7.1
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%
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Operating Income Margin
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4.5
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%
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4.7
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%
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(15
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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 decreased 3.3% in constant currency and reported sales decreased
4.2% year over year to $4.04 billion
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Operating income decreased 7.1% year over year to $183.3 million and
operating income margin decreased 15 basis points primarily due to
declines in the western regions
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Working capital (defined as receivables plus inventories less accounts
payables) increased 2% sequentially driven by a planned increase in
inventory
Mr. Hamada added, "In our March quarter, seasonal growth in EM's core
business was offset by the expected decline in our select high volume
supply chain engagements in Asia as EM global revenue declined 2% from
the December quarter. Revenue grew 17% and 6% sequentially in our EMEA
and Americas regions, respectively, while our Asia region declined 18%.
In addition to strong sequential growth, our EM EMEA team grew revenue
9.4% year over year in constant currency, which represents their 12th
consecutive quarter of organic growth. As a result of the typical
seasonal Q3 growth in our western regions, EM's operating income dollars
grew 5.3% sequentially and operating income margin increased 30 basis
points. We were encouraged to see our book to bill ratio return to at or
above parity for the quarter in all three regions. Our sequential
increase in inventory was driven by investments in specific profitable
growth opportunities and preparation for an ERP implementation in our
Americas region. These investments coupled with the ongoing commitment
to enhancing our digital platform, tools, and design resources will
position us to grow faster than the markets we serve, leading to
continued progress toward our financial targets."
Avnet Technology Solutions Results
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Year-over-Year Growth Rates
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Q3 FY16
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Reported
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Organic
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Sales
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Sales
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Sales
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(in millions)
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TS Total
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$
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2,133.2
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(15.3
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%
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(16.0
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%
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Constant Currency (1)
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(12.9
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%
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(13.6
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%
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Americas
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$
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1,241.2
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(13.8
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%
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(14.2
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%
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EMEA
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$
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615.8
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(14.1
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%
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(15.9
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%
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Constant Currency (1)
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(10.8
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%
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(12.6
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%
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Asia
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$
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276.2
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(23.2
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%
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(23.2
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%
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Constant Currency (1)
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(19.2
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%
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(19.2
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%
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Q3 FY16
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Q3 FY15
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Change
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Operating Income
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$
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55.5
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$
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68.1
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(18.5
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%
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Operating Income Margin
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2.6
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%
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2.7
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%
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(11
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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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Reported sales decreased 12.9% in constant currency and reported sales
decreased 15.3% year over year to $2.13 billion, organic sales
declined 16.0% and 13.6% in constant currency
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Operating income decreased 18.5% to $55.5 million and operating income
margin decreased 11 basis points year over year to 2.6%
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At a product level, year-over-year growth in networking and services
was offset by a decline in storage, servers, and software
Mr. Hamada further added, "TS's revenue came in at the low end of
expectations as all three regions experienced weaker than expected
demand in select areas of legacy data center products. As a result,
organic revenue decreased 14% year over year in constant currency with
all three regions experiencing double digit declines. Operating income
declined 18.5% year over year and operating income margin was down 11
basis points as an increase in gross profit margin and a reduction in
operating expenses offset some of the negative impact of the revenue
decline. Given the increasing rate of decline in certain legacy
technologies, we will be reducing annualized operating expenses by
approximately $25 million, while continuing to redirect our investment
into higher growth technologies. We are already seeing the benefits of
existing investments as our All Flash Array storage business grew over
40% year over year and our converged infrastructure product offerings
increased nearly 20%. Our recently introduced Avnet Cloud Marketplace,
which offers a growing portfolio of solutions from cloud service
providers, flexible payment options, and a powerful cloud management
toolset, is gaining traction with our partners as they and their
customers embrace new consumption models to drive business results. With
our accelerated investments in next generation technologies, we are
confident we can optimize our portfolio to capitalize on second platform
growth segments, as well as provide seamless support to our expanding
community of partners for the transition to third platform technologies."
Cash Flow and Return to Shareholders
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Cash generated from operations was $212.9 million in the March quarter
and for the trailing twelve months cash generated from operations was
$596.5 million
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Cash and cash equivalents at the end of the quarter was $1.04 billion;
net debt (total debt less cash and cash equivalents) was $1.28 billion
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During the March quarter, the Company repurchased 3.7 million shares,
representing an aggregate investment of $145.7 million
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Entering the fourth fiscal quarter, the Company had $221.7 million
remaining under the current repurchase authorization
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The Company paid a dividend of $0.17 per share or $21.9 million during
the quarter
Kevin Moriarty, Chief Financial Officer, stated, "We generated $213
million in cash flow from operations during our March quarter, bringing
our trailing twelve months total to $596 million. During the quarter, we
repurchased $146 million of our shares and still have approximately $222
million remaining in our share repurchase program. We have returned
approximately $400 million to shareholders through the first nine months
of our fiscal year via our disciplined share repurchase and dividend
programs. In addition, in the March quarter, we improved our capital
structure with a well-received offering of $550 million of 4.625%
ten-year notes. We ended the quarter with over $1 billion in cash, which
when combined with our strong cash flow generation and credit
facilities, provides us with ample liquidity to invest in profitable
growth going forward."
Outlook for Fourth Quarter of Fiscal 2016
Ending on July 2, 2016
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EM sales are expected to be in the range of $3.90 billion to $4.20
billion and TS sales are expected to be in the range of $2.05 billion
to $2.35 billion
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Avnet sales are expected to be in the range of $5.95 billion to $6.55
billion
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Adjusted diluted earnings per share is expected to be in the range of
$0.95 to $1.05 per share
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The guidance assumes 131 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 is $1.13 to €1.00. This compares with an average exchange
rate of $1.11 to €1.00 in the fourth 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," "intend," "estimate," "forecast," "expect,"
"feel," "believe," "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, an
industry down-cycle in semiconductors, IT hardware or software products,
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 operating expenses, 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 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 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. In order to determine the translation impact of
changes in foreign currency exchange rates for sales, income or expense
items, the Company adjusts the exchange rates used in current periods to
be consistent with the exchange rates in effect during prior periods.
Management believes that operating income and operating expenses
adjusted for (i) restructuring, integration and other expenses and (ii)
amortization of acquired intangible assets and other are useful measures
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 and
operating expenses 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.
Additional non-GAAP metrics management uses are adjusted operating
income margin, which is defined as adjusted operating income (as defined
above) divided by sales and adjusted operating expense to gross profit
ratio, which is defined as adjusted operating expenses (as defined
above) divided by gross profit.
Management also believes net income and diluted EPS adjusted for (i) the
impact of the items described above, (ii) certain items impacting other
expense and (iii) certain items impacting income tax expense 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 profitability 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).
-
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.
-
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.
-
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.
Fiscal 2016
|
|
|
|
|
|
|
|
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Fiscal Year 2016
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
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|
|
|
|
|
|
|
April 2,
|
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|
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January 2,
|
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|
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October 3,
|
|
|
|
|
Fiscal 2016 YTD
|
|
|
|
2016*
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
$ in thousands, except per share amounts
|
GAAP selling, general and administrative expenses
|
|
|
|
$
|
1,628,425
|
|
|
|
|
$
|
539,038
|
|
|
|
|
$
|
530,831
|
|
|
|
|
$
|
558,556
|
Amortization of intangible assets and other
|
|
|
|
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22,845
|
|
|
|
|
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7,433
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|
|
|
|
|
7,921
|
|
|
|
|
|
7,491
|
Adjusted operating expenses
|
|
|
|
$
|
1,605,580
|
|
|
|
|
$
|
531,605
|
|
|
|
|
$
|
522,910
|
|
|
|
|
$
|
551,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
|
$
|
614,695
|
|
|
|
|
$
|
181,618
|
|
|
|
|
$
|
226,115
|
|
|
|
|
$
|
206,962
|
Restructuring, integration and other expenses
|
|
|
|
|
63,352
|
|
|
|
|
|
16,172
|
|
|
|
|
|
21,222
|
|
|
|
|
|
25,958
|
Amortization of intangible assets and other
|
|
|
|
|
22,845
|
|
|
|
|
|
7,433
|
|
|
|
|
|
7,921
|
|
|
|
|
|
7,491
|
Total adjustments
|
|
|
|
|
86,197
|
|
|
|
|
|
23,605
|
|
|
|
|
|
29,143
|
|
|
|
|
|
33,449
|
Adjusted operating income
|
|
|
|
$
|
700,892
|
|
|
|
|
$
|
205,223
|
|
|
|
|
$
|
255,258
|
|
|
|
|
$
|
240,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
|
$
|
409,725
|
|
|
|
|
$
|
123,459
|
|
|
|
|
$
|
156,012
|
|
|
|
|
$
|
130,254
|
Restructuring, integration and other expenses (net of tax)
|
|
|
|
|
42,029
|
|
|
|
|
|
10,804
|
|
|
|
|
|
14,100
|
|
|
|
|
|
17,125
|
Amortization of intangible assets and other (net of tax)
|
|
|
|
|
16,073
|
|
|
|
|
|
5,376
|
|
|
|
|
|
5,513
|
|
|
|
|
|
5,184
|
Income tax adjustments
|
|
|
|
|
(17,972
|
)
|
|
|
|
|
(7,056
|
)
|
|
|
|
|
(11,295
|
)
|
|
|
|
|
379
|
Total adjustments to net income (net of tax)
|
|
|
|
|
40,130
|
|
|
|
|
|
9,124
|
|
|
|
|
|
8,318
|
|
|
|
|
|
22,688
|
Adjusted net income
|
|
|
|
$
|
449,855
|
|
|
|
|
$
|
132,582
|
|
|
|
|
$
|
164,330
|
|
|
|
|
$
|
152,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS
|
|
|
|
$
|
3.05
|
|
|
|
|
$
|
0.94
|
|
|
|
|
$
|
1.16
|
|
|
|
|
$
|
0.96
|
Restructuring, integration and other expenses (net of tax)
|
|
|
|
|
0.31
|
|
|
|
|
|
0.08
|
|
|
|
|
|
0.10
|
|
|
|
|
|
0.12
|
Amortization of intangible assets and other (net of tax)
|
|
|
|
|
0.12
|
|
|
|
|
|
0.04
|
|
|
|
|
|
0.04
|
|
|
|
|
|
0.04
|
Income tax adjustments
|
|
|
|
|
(0.13
|
)
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
-
|
Total adjustments to diluted EPS (net of tax)
|
|
|
|
|
0.30
|
|
|
|
|
|
0.07
|
|
|
|
|
|
0.06
|
|
|
|
|
|
0.16
|
Adjusted EPS
|
|
|
|
$
|
3.35
|
|
|
|
|
$
|
1.01
|
|
|
|
|
$
|
1.22
|
|
|
|
|
$
|
1.12
|
* Does not foot due to rounding
Fiscal 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2015
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
|
|
|
|
|
June 27,
|
|
|
|
March 28,
|
|
|
|
December 27,
|
|
|
|
September 27,
|
|
|
|
|
Fiscal 2015*
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2014
|
|
|
|
|
$ in thousands, except per share amounts
|
GAAP selling, general and administrative expenses
|
|
|
|
$
|
2,274,642
|
|
|
|
|
$
|
561,585
|
|
|
|
|
$
|
555,148
|
|
|
|
|
$
|
573,962
|
|
|
|
|
$
|
583,946
|
|
Amortization of intangible assets and other
|
|
|
|
|
54,049
|
|
|
|
|
|
19,603
|
|
|
|
|
|
11,187
|
|
|
|
|
|
11,052
|
|
|
|
|
|
12,208
|
|
Adjusted operating expenses
|
|
|
|
$
|
2,220,593
|
|
|
|
|
$
|
541,982
|
|
|
|
|
$
|
543,961
|
|
|
|
|
$
|
562,910
|
|
|
|
|
$
|
571,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
|
$
|
827,673
|
|
|
|
|
$
|
180,477
|
|
|
|
|
$
|
203,712
|
|
|
|
|
$
|
250,287
|
|
|
|
|
$
|
193,197
|
|
Restructuring, integration and other expenses
|
|
|
|
|
90,805
|
|
|
|
|
|
43,734
|
|
|
|
|
|
15,494
|
|
|
|
|
|
13,257
|
|
|
|
|
|
18,320
|
|
Amortization of intangible assets and other
|
|
|
|
|
54,049
|
|
|
|
|
|
19,603
|
|
|
|
|
|
11,187
|
|
|
|
|
|
11,052
|
|
|
|
|
|
12,208
|
|
Total adjustments
|
|
|
|
|
144,854
|
|
|
|
|
|
63,337
|
|
|
|
|
|
26,681
|
|
|
|
|
|
24,309
|
|
|
|
|
|
30,528
|
|
Adjusted operating income
|
|
|
|
$
|
972,527
|
|
|
|
|
$
|
243,814
|
|
|
|
|
$
|
230,393
|
|
|
|
|
$
|
274,596
|
|
|
|
|
$
|
223,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other (expense) income, net
|
|
|
|
$
|
(19,043
|
)
|
|
|
|
$
|
(3,080
|
)
|
|
|
|
$
|
(8,945
|
)
|
|
|
|
$
|
(5,524
|
)
|
|
|
|
$
|
(1,493
|
)
|
Venezuela foreign currency loss
|
|
|
|
|
3,737
|
|
|
|
|
|
3,737
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Adjusted other (expense) income, net
|
|
|
|
$
|
(15,306
|
)
|
|
|
|
$
|
657
|
|
|
|
|
$
|
(8,945
|
)
|
|
|
|
$
|
(5,524
|
)
|
|
|
|
$
|
(1,493
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments to income before income taxes
|
|
|
|
$
|
148,591
|
|
|
|
|
$
|
67,074
|
|
|
|
|
$
|
26,681
|
|
|
|
|
$
|
24,309
|
|
|
|
|
$
|
30,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
|
$
|
571,913
|
|
|
|
|
$
|
158,733
|
|
|
|
|
$
|
121,529
|
|
|
|
|
$
|
163,706
|
|
|
|
|
$
|
127,946
|
|
Restructuring, integration and other expenses (net of tax)
|
|
|
|
|
65,897
|
|
|
|
|
|
30,514
|
|
|
|
|
|
12,035
|
|
|
|
|
|
10,188
|
|
|
|
|
|
13,160
|
|
Amortization of intangible assets and other (net of tax)
|
|
|
|
|
36,643
|
|
|
|
|
|
12,287
|
|
|
|
|
|
7,708
|
|
|
|
|
|
7,675
|
|
|
|
|
|
8,973
|
|
Venezuela foreign currency loss (net of tax)
|
|
|
|
|
3,737
|
|
|
|
|
|
3,737
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Income tax adjustments
|
|
|
|
|
(55,101
|
)
|
|
|
|
|
(45,770
|
)
|
|
|
|
|
2,192
|
|
|
|
|
|
(5,597
|
)
|
|
|
|
|
(5,926
|
)
|
Total adjustments to net income (net of tax)
|
|
|
|
|
51,176
|
|
|
|
|
|
768
|
|
|
|
|
|
21,935
|
|
|
|
|
|
12,266
|
|
|
|
|
|
16,207
|
|
Adjusted net income
|
|
|
|
$
|
623,089
|
|
|
|
|
$
|
159,501
|
|
|
|
|
$
|
143,464
|
|
|
|
|
$
|
175,972
|
|
|
|
|
$
|
144,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS
|
|
|
|
$
|
4.12
|
|
|
|
|
$
|
1.15
|
|
|
|
|
$
|
0.88
|
|
|
|
|
$
|
1.18
|
|
|
|
|
$
|
0.91
|
|
Restructuring, integration and other expenses (net of tax)
|
|
|
|
|
0.47
|
|
|
|
|
|
0.22
|
|
|
|
|
|
0.09
|
|
|
|
|
|
0.07
|
|
|
|
|
|
0.09
|
|
Amortization of intangible assets and other (net of tax)
|
|
|
|
|
0.26
|
|
|
|
|
|
0.09
|
|
|
|
|
|
0.06
|
|
|
|
|
|
0.06
|
|
|
|
|
|
0.07
|
|
Venezuela foreign currency loss (net of tax)
|
|
|
|
|
0.03
|
|
|
|
|
|
0.03
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Income tax adjustments
|
|
|
|
|
(0.39
|
)
|
|
|
|
|
(0.33
|
)
|
|
|
|
|
0.02
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
(0.04
|
)
|
Total adjustments to diluted EPS (net of tax)
|
|
|
|
|
0.37
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.16
|
|
|
|
|
|
0.09
|
|
|
|
|
|
0.12
|
|
Adjusted EPS*
|
|
|
|
$
|
4.49
|
|
|
|
|
$
|
1.16
|
|
|
|
|
$
|
1.04
|
|
|
|
|
$
|
1.27
|
|
|
|
|
$
|
1.02
|
|
* Does not foot due to rounding
Organic Sales
Organic sales is defined as reported sales adjusted for the impact of
more than insignificant 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. In addition, fiscal 2016 sales are adjusted for the estimated
impact of the extra week of sales in the first quarter of fiscal 2016
due to it being a 14-week quarter and 53-week fiscal year. Organic sales
in constant currency is defined as organic sales (as defined above)
excluding the impact of changes in foreign currency exchange rates as
discussed above.
The following tables present the reconciliation of reported sales to
organic sales for the third quarter and first nine months of fiscal 2016
and fiscal 2015.
|
|
|
|
Third Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions/
|
|
|
|
|
|
|
|
|
As Reported and
|
|
|
|
As
|
|
|
|
Divestitures (1)/
|
|
|
|
|
|
|
|
|
|
Organic Sales -
|
|
|
|
Reported -
|
|
|
|
Estimated
|
|
|
|
Organic Sales -
|
|
|
|
|
Fiscal 2016
|
|
|
|
Fiscal 2016
|
|
|
|
Extra Week (2)
|
|
|
|
Fiscal 2016
|
|
|
|
|
(in thousands)
|
Avnet, Inc.
|
|
|
|
$
|
6,174,716
|
|
|
|
$
|
19,992,467
|
|
|
|
$
|
(464,098
|
)
|
|
|
|
$
|
19,528,369
|
EM
|
|
|
|
|
4,041,527
|
|
|
|
|
12,627,543
|
|
|
|
|
(300,000
|
)
|
|
|
|
|
12,327,543
|
TS
|
|
|
|
|
2,133,189
|
|
|
|
|
7,364,924
|
|
|
|
|
(164,098
|
)
|
|
|
|
|
7,200,826
|
EM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
|
1,192,695
|
|
|
|
$
|
3,583,065
|
|
|
|
$
|
(82,000
|
)
|
|
|
|
$
|
3,501,065
|
EMEA
|
|
|
|
|
1,330,751
|
|
|
|
|
3,798,262
|
|
|
|
|
(92,000
|
)
|
|
|
|
|
3,706,262
|
Asia
|
|
|
|
|
1,518,081
|
|
|
|
|
5,246,216
|
|
|
|
|
(126,000
|
)
|
|
|
|
|
5,120,216
|
TS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
|
1,241,209
|
|
|
|
$
|
4,375,343
|
|
|
|
$
|
(123,112
|
)
|
|
|
|
$
|
4,252,231
|
EMEA
|
|
|
|
|
615,824
|
|
|
|
|
2,098,981
|
|
|
|
|
(17,986
|
)
|
|
|
|
|
2,080,995
|
Asia
|
|
|
|
|
276,156
|
|
|
|
|
890,600
|
|
|
|
|
(23,000
|
)
|
|
|
|
|
867,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
As Reported -
|
|
|
|
Acquisitions/
|
|
|
|
Organic Sales -
|
|
|
|
As Reported -
|
|
|
|
Acquisitions/
|
|
|
|
Organic Sales -
|
|
|
|
|
Fiscal 2015
|
|
|
|
Divestitures (1)
|
|
|
|
Fiscal 2015
|
|
|
|
Fiscal 2015
|
|
|
|
Divestitures (1)
|
|
|
|
Fiscal 2015
|
|
|
|
|
(in thousands)
|
Avnet, Inc.
|
|
|
|
$
|
6,736,860
|
|
|
|
$
|
21,246
|
|
|
|
$
|
6,758,106
|
|
|
|
$
|
21,128,326
|
|
|
|
$
|
94,110
|
|
|
|
$
|
21,222,436
|
EM
|
|
|
|
|
4,219,528
|
|
|
|
|
-
|
|
|
|
|
4,219,528
|
|
|
|
|
13,028,812
|
|
|
|
|
-
|
|
|
|
|
13,028,812
|
TS
|
|
|
|
|
2,517,332
|
|
|
|
|
21,246
|
|
|
|
|
2,538,578
|
|
|
|
|
8,099,514
|
|
|
|
|
94,110
|
|
|
|
|
8,193,624
|
EM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
|
1,237,213
|
|
|
|
$
|
-
|
|
|
|
$
|
1,237,213
|
|
|
|
$
|
3,652,114
|
|
|
|
$
|
-
|
|
|
|
$
|
3,652,114
|
EMEA
|
|
|
|
|
1,251,873
|
|
|
|
|
-
|
|
|
|
|
1,251,873
|
|
|
|
|
3,759,678
|
|
|
|
|
-
|
|
|
|
|
3,759,678
|
Asia
|
|
|
|
|
1,730,442
|
|
|
|
|
-
|
|
|
|
|
1,730,442
|
|
|
|
|
5,617,020
|
|
|
|
|
-
|
|
|
|
|
5,617,020
|
TS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
|
1,440,532
|
|
|
|
$
|
6,630
|
|
|
|
$
|
1,447,162
|
|
|
|
$
|
4,724,640
|
|
|
|
$
|
17,425
|
|
|
|
$
|
4,742,065
|
EMEA
|
|
|
|
|
717,196
|
|
|
|
|
14,616
|
|
|
|
|
731,812
|
|
|
|
|
2,246,822
|
|
|
|
|
76,685
|
|
|
|
|
2,323,507
|
Asia
|
|
|
|
|
359,604
|
|
|
|
|
-
|
|
|
|
|
359,604
|
|
|
|
|
1,128,052
|
|
|
|
|
-
|
|
|
|
|
1,128,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Includes the following acquisitions:
|
|
|
|
•
|
|
|
Orchestra Service Gmbh acquired in November 2015 in the TS EMEA
Region
|
|
|
|
•
|
|
|
ExitCertified Corporation acquired in January 2016 in the TS America
Region
|
|
(2)
|
|
|
The impact of the additional week of sales in the first quarter of
fiscal 2016 is estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
Sales
|
|
|
|
Sales
|
|
|
|
Year-Year %
|
|
|
|
Organic
|
|
|
|
Organic
|
|
|
|
Year-Year %
|
|
|
|
|
|
As Reported
|
|
|
|
As Reported
|
|
|
|
Change in
|
|
|
|
Sales
|
|
|
|
Sales
|
|
|
|
Change in
|
|
|
|
|
|
Q3-Fiscal
|
|
|
|
Year-Year
|
|
|
|
Constant
|
|
|
|
Q3-Fiscal
|
|
|
|
Year-Year
|
|
|
|
Constant
|
|
|
|
|
|
2016
|
|
|
|
% Change
|
|
|
|
Currency
|
|
|
|
2016
|
|
|
|
% Change
|
|
|
|
Currency
|
|
|
|
|
|
(Dollars in thousands)
|
|
Avnet, Inc.
|
|
|
|
$
|
6,174,716
|
|
|
|
(8.3
|
)
|
%
|
|
|
|
(6.9
|
)
|
%
|
|
|
|
$
|
6,174,716
|
|
|
|
(8.6
|
)
|
%
|
|
|
|
(7.2
|
)
|
%
|
EM
|
|
|
|
|
4,041,527
|
|
|
|
(4.2
|
)
|
|
|
|
|
(3.3
|
)
|
|
|
|
|
|
4,041,527
|
|
|
|
(4.2
|
)
|
|
|
|
|
(3.3
|
)
|
|
TS
|
|
|
|
|
2,133,189
|
|
|
|
(15.3
|
)
|
|
|
|
|
(12.9
|
)
|
|
|
|
|
|
2,133,189
|
|
|
|
(16.0
|
)
|
|
|
|
|
(13.6
|
)
|
|
EM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
|
1,192,695
|
|
|
|
(3.6
|
)
|
%
|
|
|
|
-
|
|
|
|
|
|
$
|
1,192,695
|
|
|
|
(3.6
|
)
|
%
|
|
|
|
-
|
|
|
EMEA
|
|
|
|
|
1,330,751
|
|
|
|
6.3
|
|
|
|
|
|
9.4
|
|
%
|
|
|
|
|
1,330,751
|
|
|
|
6.3
|
|
|
|
|
|
9.4
|
|
%
|
Asia/Pacific
|
|
|
|
|
1,518,081
|
|
|
|
(12.3
|
)
|
|
|
|
|
(12.3
|
)
|
|
|
|
|
|
1,518,081
|
|
|
|
(12.3
|
)
|
|
|
|
|
(12.3
|
)
|
|
TS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
|
1,241,209
|
|
|
|
(13.8
|
)
|
%
|
|
|
|
-
|
|
|
|
|
|
$
|
1,241,209
|
|
|
|
(14.2
|
)
|
%
|
|
|
|
-
|
|
|
EMEA
|
|
|
|
|
615,824
|
|
|
|
(14.1
|
)
|
|
|
|
|
(10.8
|
)
|
%
|
|
|
|
|
615,824
|
|
|
|
(15.9
|
)
|
|
|
|
|
(12.6
|
)
|
%
|
Asia/Pacific
|
|
|
|
|
276,156
|
|
|
|
(23.2
|
)
|
|
|
|
|
(19.2
|
)
|
|
|
|
|
|
276,156
|
|
|
|
(23.2
|
)
|
|
|
|
|
(19.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROWC, ROCE and WC Velocity
The following tables (in thousands) presents the calculation for ROWC,
ROCE and WC velocity.
|
|
|
|
|
|
|
FY16 YTD
|
|
|
|
Q3 FY16
|
|
|
|
Q2 FY16
|
|
|
|
Q1 FY16
|
Sales
|
|
|
|
|
|
|
$
|
19,992,467
|
|
|
|
|
|
$
|
6,174,716
|
|
|
|
|
|
$
|
6,848,057
|
|
|
|
|
|
$
|
6,969,694
|
|
|
Sales, annualized (1)
|
|
|
(a)
|
|
|
|
|
26,490,019
|
|
|
|
|
|
|
24,698,864
|
|
|
|
|
|
|
27,392,228
|
|
|
|
|
|
|
26,385,270
|
|
|
Adjusted operating income (2)
|
|
|
|
|
|
|
|
700,892
|
|
|
|
|
|
|
205,223
|
|
|
|
|
|
|
255,258
|
|
|
|
|
|
|
240,411
|
|
|
Adjusted annualized operating income (1)
|
|
|
(b)
|
|
|
|
|
928,682
|
|
|
|
|
|
|
820,892
|
|
|
|
|
|
|
1,021,032
|
|
|
|
|
|
|
910,127
|
|
|
Adjusted effective tax rate (3)
|
|
|
|
|
|
|
|
27.6
|
|
%
|
|
|
|
|
27.6
|
|
%
|
|
|
|
|
27.6
|
|
%
|
|
|
|
|
27.6
|
|
%
|
Adjusted annualized operating income, after tax
|
|
|
(c)
|
|
|
|
|
672,273
|
|
|
|
|
|
|
594,244
|
|
|
|
|
|
|
739,125
|
|
|
|
|
|
|
658,841
|
|
|
Average monthly working capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
|
|
4,840,229
|
|
|
|
|
|
|
4,905,736
|
|
|
|
|
|
|
4,982,198
|
|
|
|
|
|
|
4,787,201
|
|
|
Inventories
|
|
|
|
|
|
|
|
2,766,662
|
|
|
|
|
|
|
2,787,825
|
|
|
|
|
|
|
2,747,160
|
|
|
|
|
|
|
2,745,479
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
(3,184,831
|
)
|
|
|
|
|
|
(3,265,178
|
)
|
|
|
|
|
|
(3,256,725
|
)
|
|
|
|
|
|
(3,182,154
|
)
|
|
Average working capital
|
|
|
(d)
|
|
|
|
$
|
4,422,060
|
|
|
|
|
|
$
|
4,428,383
|
|
|
|
|
|
$
|
4,472,633
|
|
|
|
|
|
$
|
4,350,526
|
|
|
Average monthly capital employed
|
|
|
(e)
|
|
|
|
$
|
5,997,305
|
|
|
|
|
|
$
|
6,028,867
|
|
|
|
|
|
$
|
6,026,327
|
|
|
|
|
|
$
|
5,909,334
|
|
|
ROWC = (b) / (d)
|
|
|
|
|
|
|
|
21.0
|
|
%
|
|
|
|
|
18.5
|
|
%
|
|
|
|
|
22.8
|
|
%
|
|
|
|
|
20.9
|
|
%
|
WC Velocity = (a) / (d)
|
|
|
|
|
|
|
|
6.0
|
|
|
|
|
|
|
5.6
|
|
|
|
|
|
|
6.1
|
|
|
|
|
|
|
6.1
|
|
|
ROCE = (c) / (e)
|
|
|
|
|
|
|
|
11.2
|
|
%
|
|
|
|
|
9.9
|
|
%
|
|
|
|
|
12.3
|
|
%
|
|
|
|
|
11.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY15
|
|
|
|
Q4 FY15
|
|
|
|
Q3 FY15
|
|
|
|
Q2 FY15
|
|
|
|
Q1 FY15
|
Sales
|
|
|
|
|
|
|
$
|
27,924,657
|
|
|
|
|
|
$
|
6,796,331
|
|
|
|
|
|
$
|
6,736,860
|
|
|
|
|
|
$
|
7,551,880
|
|
|
|
|
|
$
|
6,839,587
|
|
|
Sales, annualized
|
|
|
(a)
|
|
|
|
|
27,924,657
|
|
|
|
|
|
|
27,185,324
|
|
|
|
|
|
|
26,947,440
|
|
|
|
|
|
|
30,207,520
|
|
|
|
|
|
|
27,358,348
|
|
|
Adjusted operating income (2)
|
|
|
|
|
|
|
|
972,527
|
|
|
|
|
|
|
243,814
|
|
|
|
|
|
|
230,393
|
|
|
|
|
|
|
274,596
|
|
|
|
|
|
|
223,725
|
|
|
Adjusted annualized operating income
|
|
|
(b)
|
|
|
|
|
972,527
|
|
|
|
|
|
|
975,256
|
|
|
|
|
|
|
921,572
|
|
|
|
|
|
|
1,098,384
|
|
|
|
|
|
|
894,900
|
|
|
Adjusted effective tax rate (3)
|
|
|
|
|
|
|
|
27.7
|
|
%
|
|
|
|
|
27.7
|
|
%
|
|
|
|
|
27.7
|
|
%
|
|
|
|
|
27.7
|
|
%
|
|
|
|
|
27.7
|
|
%
|
Adjusted annualized operating income, after tax
|
|
|
(c)
|
|
|
|
|
703,332
|
|
|
|
|
|
|
705,305
|
|
|
|
|
|
|
666,481
|
|
|
|
|
|
|
794,351
|
|
|
|
|
|
|
647,192
|
|
|
Average monthly working capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
|
|
5,109,326
|
|
|
|
|
|
|
4,979,668
|
|
|
|
|
|
|
5,251,882
|
|
|
|
|
|
|
5,318,083
|
|
|
|
|
|
|
4,993,653
|
|
|
Inventories
|
|
|
|
|
|
|
|
2,667,351
|
|
|
|
|
|
|
2,593,545
|
|
|
|
|
|
|
2,564,071
|
|
|
|
|
|
|
2,700,424
|
|
|
|
|
|
|
2,729,194
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
(3,274,382
|
)
|
|
|
|
|
|
(3,234,283
|
)
|
|
|
|
|
|
(3,344,479
|
)
|
|
|
|
|
|
(3,437,897
|
)
|
|
|
|
|
|
(3,231,037
|
)
|
|
Average working capital
|
|
|
(d)
|
|
|
|
$
|
4,502,295
|
|
|
|
|
|
$
|
4,338,930
|
|
|
|
|
|
$
|
4,471,474
|
|
|
|
|
|
$
|
4,580,610
|
|
|
|
|
|
$
|
4,491,810
|
|
|
Average monthly capital employed
|
|
|
(e)
|
|
|
|
$
|
6,077,926
|
|
|
|
|
|
$
|
5,898,475
|
|
|
|
|
|
$
|
6,028,015
|
|
|
|
|
|
$
|
6,161,858
|
|
|
|
|
|
$
|
6,101,274
|
|
|
ROWC = (b) / (d)
|
|
|
|
|
|
|
|
21.6
|
|
%
|
|
|
|
|
22.5
|
|
%
|
|
|
|
|
20.6
|
|
%
|
|
|
|
|
24.0
|
|
%
|
|
|
|
|
19.9
|
|
%
|
WC Velocity = (a) / (d)
|
|
|
|
|
|
|
|
6.2
|
|
|
|
|
|
|
6.3
|
|
|
|
|
|
|
6.0
|
|
|
|
|
|
|
6.6
|
|
|
|
|
|
|
6.1
|
|
|
ROCE = (c) / (e)
|
|
|
|
|
|
|
|
11.6
|
|
%
|
|
|
|
|
12.0
|
|
%
|
|
|
|
|
11.1
|
|
%
|
|
|
|
|
12.9
|
|
%
|
|
|
|
|
10.6
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Annualized amounts are based on a 53-week fiscal year.
|
(2)
|
|
|
See reconciliation to GAAP amounts in the preceding tables in this
Non-GAAP Financial Information section.
|
(3)
|
|
|
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 income tax adjustments
quantified 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
From components to cloud and design to disposal, Avnet, Inc. (NYSE:AVT)
accelerates the success of customers who build, sell and use technology
globally by providing them with a comprehensive portfolio of innovative
products, services and solutions. Avnet is a Fortune 500 company with
revenues of $27.9 billion in fiscal year 2015. For more information,
visit www.avnet.com.
(AVT_IR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarters Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
April 2,
|
|
|
|
March 28,
|
|
|
|
April 2,
|
|
|
|
March 28,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
(Thousands, except per share data)
|
Sales
|
|
|
|
$
|
6,174,716
|
|
|
|
|
$
|
6,736,860
|
|
|
|
|
$
|
19,992,467
|
|
|
|
|
$
|
21,128,326
|
|
Cost of sales
|
|
|
|
|
5,437,888
|
|
|
|
|
|
5,962,506
|
|
|
|
|
|
17,685,995
|
|
|
|
|
|
18,721,003
|
|
Gross profit
|
|
|
|
|
736,828
|
|
|
|
|
|
774,354
|
|
|
|
|
|
2,306,472
|
|
|
|
|
|
2,407,323
|
|
Selling, general and administrative expenses
|
|
|
|
|
539,038
|
|
|
|
|
|
555,148
|
|
|
|
|
|
1,628,425
|
|
|
|
|
|
1,713,056
|
|
Restructuring, integration and other expenses
|
|
|
|
|
16,172
|
|
|
|
|
|
15,494
|
|
|
|
|
|
63,352
|
|
|
|
|
|
47,071
|
|
Operating income
|
|
|
|
|
181,618
|
|
|
|
|
|
203,712
|
|
|
|
|
|
614,695
|
|
|
|
|
|
647,196
|
|
Other income (expense), net
|
|
|
|
|
2,200
|
|
|
|
|
|
(8,945
|
)
|
|
|
|
|
(10,138
|
)
|
|
|
|
|
(15,963
|
)
|
Interest expense
|
|
|
|
|
(23,281
|
)
|
|
|
|
|
(23,871
|
)
|
|
|
|
|
(69,306
|
)
|
|
|
|
|
(71,936
|
)
|
Income before income taxes
|
|
|
|
|
160,537
|
|
|
|
|
|
170,896
|
|
|
|
|
|
535,251
|
|
|
|
|
|
559,297
|
|
Income tax expense
|
|
|
|
|
37,078
|
|
|
|
|
|
49,367
|
|
|
|
|
|
125,526
|
|
|
|
|
|
146,117
|
|
Net income
|
|
|
|
$
|
123,459
|
|
|
|
|
$
|
121,529
|
|
|
|
|
$
|
409,725
|
|
|
|
|
$
|
413,180
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.95
|
|
|
|
|
$
|
0.89
|
|
|
|
|
$
|
3.11
|
|
|
|
|
$
|
3.02
|
|
Diluted
|
|
|
|
$
|
0.94
|
|
|
|
|
$
|
0.88
|
|
|
|
|
$
|
3.05
|
|
|
|
|
$
|
2.97
|
|
Shares used to compute earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
129,811
|
|
|
|
|
|
136,046
|
|
|
|
|
|
131,834
|
|
|
|
|
|
136,965
|
|
Diluted
|
|
|
|
|
131,650
|
|
|
|
|
|
137,721
|
|
|
|
|
|
134,298
|
|
|
|
|
|
139,181
|
|
Cash dividends paid per common share
|
|
|
|
$
|
0.17
|
|
|
|
|
$
|
0.16
|
|
|
|
|
$
|
0.51
|
|
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 2,
|
|
|
|
|
|
|
|
|
June 27,
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
(Thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
1,036,485
|
|
|
|
|
|
|
|
|
$
|
932,553
|
Receivables, net
|
|
|
|
|
4,874,179
|
|
|
|
|
|
|
|
|
|
5,054,307
|
Inventories
|
|
|
|
|
2,826,858
|
|
|
|
|
|
|
|
|
|
2,482,183
|
Prepaid and other current assets
|
|
|
|
|
200,579
|
|
|
|
|
|
|
|
|
|
173,030
|
Total current assets
|
|
|
|
|
8,938,101
|
|
|
|
|
|
|
|
|
|
8,642,073
|
Property, plant and equipment, net
|
|
|
|
|
610,747
|
|
|
|
|
|
|
|
|
|
568,779
|
Goodwill
|
|
|
|
|
1,295,406
|
|
|
|
|
|
|
|
|
|
1,278,756
|
Intangible assets, net
|
|
|
|
|
86,989
|
|
|
|
|
|
|
|
|
|
99,731
|
Other assets
|
|
|
|
|
194,217
|
|
|
|
|
|
|
|
|
|
210,614
|
Total assets
|
|
|
|
$
|
11,125,460
|
|
|
|
|
|
|
|
|
$
|
10,799,953
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
|
|
$
|
706,742
|
|
|
|
|
|
|
|
|
$
|
331,115
|
Accounts payable
|
|
|
|
|
3,297,981
|
|
|
|
|
|
|
|
|
|
3,338,052
|
Accrued expenses and other
|
|
|
|
|
559,697
|
|
|
|
|
|
|
|
|
|
603,129
|
Total current liabilities
|
|
|
|
|
4,564,420
|
|
|
|
|
|
|
|
|
|
4,272,296
|
Long-term debt
|
|
|
|
|
1,610,539
|
|
|
|
|
|
|
|
|
|
1,646,501
|
Other liabilities
|
|
|
|
|
190,300
|
|
|
|
|
|
|
|
|
|
196,135
|
Total liabilities
|
|
|
|
|
6,365,259
|
|
|
|
|
|
|
|
|
|
6,114,932
|
Shareholders' equity
|
|
|
|
|
4,760,201
|
|
|
|
|
|
|
|
|
|
4,685,021
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
11,125,460
|
|
|
|
|
|
|
|
|
$
|
10,799,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
April 2,
|
|
|
|
|
|
|
|
|
March 28,
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
(Thousands)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
409,725
|
|
|
|
|
|
|
|
|
|
$
|
413,180
|
|
Non-cash and other reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
71,112
|
|
|
|
|
|
|
|
|
|
|
70,919
|
|
Amortization
|
|
|
|
|
21,183
|
|
|
|
|
|
|
|
|
|
|
32,630
|
|
Deferred income taxes
|
|
|
|
|
3,963
|
|
|
|
|
|
|
|
|
|
|
29,500
|
|
Stock-based compensation
|
|
|
|
|
47,724
|
|
|
|
|
|
|
|
|
|
|
48,890
|
|
Other, net
|
|
|
|
|
43,665
|
|
|
|
|
|
|
|
|
|
|
57,766
|
|
Changes in (net of effects from businesses acquired):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
181,723
|
|
|
|
|
|
|
|
|
|
|
(186,037
|
)
|
Inventories
|
|
|
|
|
(319,865
|
)
|
|
|
|
|
|
|
|
|
|
(89,994
|
)
|
Accounts payable
|
|
|
|
|
(74,510
|
)
|
|
|
|
|
|
|
|
|
|
118,449
|
|
Accrued expenses and other, net
|
|
|
|
|
(87,593
|
)
|
|
|
|
|
|
|
|
|
|
(210,751
|
)
|
Net cash flows provided by operating activities
|
|
|
|
|
297,127
|
|
|
|
|
|
|
|
|
|
|
284,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of notes, net of issuance costs
|
|
|
|
|
542,043
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Repayment of notes
|
|
|
|
|
(250,000
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
Borrowings (repayments) under accounts receivable securitization
program, net
|
|
|
|
|
(400,000
|
)
|
|
|
|
|
|
|
|
|
|
110,000
|
|
Borrowings (repayments) of bank and revolving debt, net
|
|
|
|
|
448,468
|
|
|
|
|
|
|
|
|
|
|
(96,372
|
)
|
Repurchases of common stock
|
|
|
|
|
(334,177
|
)
|
|
|
|
|
|
|
|
|
|
(147,606
|
)
|
Dividends paid on common stock
|
|
|
|
|
(66,944
|
)
|
|
|
|
|
|
|
|
|
|
(65,602
|
)
|
Other, net
|
|
|
|
|
(12,028
|
)
|
|
|
|
|
|
|
|
|
|
(13,993
|
)
|
Net cash flows used for financing activities
|
|
|
|
|
(72,638
|
)
|
|
|
|
|
|
|
|
|
|
(213,573
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(111,070
|
)
|
|
|
|
|
|
|
|
|
|
(133,422
|
)
|
Acquisitions of businesses, net of cash acquired
|
|
|
|
|
(19,675
|
)
|
|
|
|
|
|
|
|
|
|
-
|
|
Other, net
|
|
|
|
|
8,436
|
|
|
|
|
|
|
|
|
|
|
(8,765
|
)
|
Net cash flows used for investing activities
|
|
|
|
|
(122,309
|
)
|
|
|
|
|
|
|
|
|
|
(142,187
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of currency exchange rate changes on cash and cash equivalents
|
|
|
|
|
1,752
|
|
|
|
|
|
|
|
|
|
|
(54,295
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- increase (decrease)
|
|
|
|
|
103,932
|
|
|
|
|
|
|
|
|
|
|
(125,503
|
)
|
- at beginning of period
|
|
|
|
|
932,553
|
|
|
|
|
|
|
|
|
|
|
928,971
|
|
- at end of period
|
|
|
|
$
|
1,036,485
|
|
|
|
|
|
|
|
|
|
$
|
803,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVNET, INC.
SEGMENT INFORMATION
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarters Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
April 2,
|
|
|
|
March 28,
|
|
|
|
April 2,
|
|
|
|
March 28,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016*
|
|
|
|
2015
|
|
|
|
|
(Millions)
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics Marketing
|
|
|
|
$
|
4,041.5
|
|
|
|
|
$
|
4,219.5
|
|
|
|
|
$
|
12,627.5
|
|
|
|
|
$
|
13,028.8
|
|
Technology Solutions
|
|
|
|
|
2,133.2
|
|
|
|
|
|
2,517.3
|
|
|
|
|
|
7,364.9
|
|
|
|
|
|
8,099.5
|
|
Avnet Sales
|
|
|
|
$
|
6,174.7
|
|
|
|
|
$
|
6,736.8
|
|
|
|
|
$
|
19,992.5
|
|
|
|
|
$
|
21,128.3
|
|
Operating Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronics Marketing
|
|
|
|
$
|
183.3
|
|
|
|
|
$
|
197.3
|
|
|
|
|
$
|
570.3
|
|
|
|
|
$
|
591.4
|
|
Technology Solutions
|
|
|
|
|
55.5
|
|
|
|
|
|
68.1
|
|
|
|
|
|
247.1
|
|
|
|
|
|
248.1
|
|
Corporate
|
|
|
|
|
(33.5
|
)
|
|
|
|
|
(35.0
|
)
|
|
|
|
|
(116.5
|
)
|
|
|
|
|
(110.8
|
)
|
|
|
|
|
|
205.2
|
|
|
|
|
|
230.4
|
|
|
|
|
|
700.9
|
|
|
|
|
|
728.7
|
|
Restructuring, integration and other expenses
|
|
|
|
|
(16.2
|
)
|
|
|
|
|
(15.5
|
)
|
|
|
|
|
(63.4
|
)
|
|
|
|
|
(47.1
|
)
|
Amortization of intangible assets and other
|
|
|
|
|
(7.4
|
)
|
|
|
|
|
(11.2
|
)
|
|
|
|
|
(22.8
|
)
|
|
|
|
|
(34.4
|
)
|
Operating Income
|
|
|
|
$
|
181.6
|
|
|
|
|
$
|
203.7
|
|
|
|
|
$
|
614.7
|
|
|
|
|
$
|
647.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Sub-totals and totals may not foot due to rounding
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005539/en/
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