Avnet, Inc. (NYSE:AVT) today announced results for the first
quarter ended September 30, 2017.
First Quarter Results
- Sales of $4.7 billion exceeded
expectations and increased 13.2% year over year
- Organic sales increased 3.5% in
constant currency from the year ago quarter
- Diluted earnings per share (EPS) from
continuing operations of $0.47
- Adjusted diluted EPS from continuing
operations of $0.76
- Returned $94 million of cash to
shareholders via our share repurchase and dividend programs
First Quarters Ended September 30, 2017
October 1, 2016 (1) Change
OrganicGrowth
Avnet
$ in millions, except per share data
Sales $ 4,660.9 $ 4,118.1 13.2 % 4.8 % Constant Currency (2) 11.8 %
3.5 % Americas 1,185.5 1,250.5 (5.2) % (14.5) % EMEA 1,693.0
1,265.3 33.8 % 19.4 % Constant Currency (2) 28.0 % 14.3 % Asia
1,782.4 1,602.3 11.2 % 8.5 % Constant Currency (2) 12.3 % 9.6 %
Operating Income 70.0 129.5 (46.0) % Adjusted Operating
Income (3) 141.9 161.4 (12.0) % Income from continuing
operations 58.2 67.7 (14.0) % Adj Income from continuing operations
(3) 94.8 96.6 (1.8) % Diluted EPS continuing operations $
0.47 $ 0.52 (9.6) % Adj Diluted EPS continuing operations (3) $
0.76 $ 0.74 2.7 % (1) Financial information is
for continuing operations and excludes the Technology Solutions
(TS) business as the sale of this business was completed during Q3
FY17. (2) Year-over-year sales growth rate excludes the impact of
changes in foreign currency exchange rates. (3) A reconciliation of
non-GAAP financial measures to GAAP financial measures is presented
in the Non-GAAP Financial Information section in this press
release.
“Revenue exceeded expectations this quarter driven by strength
in our EMEA and Asia regions where market share gains more than
offset the negative impact of supplier channel changes. Our EMEA
region delivered a fourth consecutive quarter of double digit
year-over-year organic growth as revenue increased 14.3% in
constant currency while Asia grew nearly 10% organically. Premier
Farnell also delivered higher than expected results during the
quarter,” said Bill Amelio, CEO of Avnet. “Organic revenue in our
Americas region declined 14.5% year over year driven in part by
supplier channel changes. The remainder of the decline is primarily
due to the cumulative impact of the ERP implementation that
negatively impacted our gross profit and operating income margins.
We are, however, encouraged that the Americas team is regaining
momentum as many metrics for our customer service levels have begun
to improve to pre-ERP implementation levels. Given our performance
in the Americas this quarter, we are accelerating previously
announced cost reduction initiatives to ensure we meet our fiscal
2018 commitments. With our international regions performing well
and our digital ecosystem delivering higher margin growth, we
believe we are positioned to drive improved financial performance
exiting this important transition year.”
Operating Group Results
Year-over-Year Growth Rates Q1
FY18 Reported Organic Sales Sales Sales (in millions) Sales
Electronic Components $ 4,307.3 4.6 % 4.6 % Constant Currency (1)
3.3 % 3.3 % Premier Farnell (acquired Oct 17, 2016) $ 353.7
— 7.6 % Constant Currency (1) — 6.2 %
Q1 FY18
Q1 FY17 Change Operating Income Electronic Components
$ 139.6 $ 185.1 (24.6) % Premier Farnell 34.8 — — Operating
Income Margin Electronic Components 3.2 % 4.5 % (125) bps Premier
Farnell 9.8 % — — (1) Refer to Non-GAAP
Financial Information section in this press release.
- Electronic Components sales exceeded
expectations driven by strength in the EMEA and Asia regions
- Sales increased 3.3% from the year ago
quarter in constant currency
- Premier Farnell organic sales increased
6.2% year over year in constant currency
- Electronic Components EMEA organic
sales increased 14.9% year over year in constant currency, the 17th
consecutive quarter of year-over-year growth
- Electronic Components Asia organic
sales increased 9.3% year over year and 9.8% sequentially in
constant currency
Cash Flow and Returns to
Shareholders
- Cash used for operating activities was
$128.0 million in the September quarter
- Cash and cash equivalents at the end of
the quarter was $539.7 million; net debt (total debt less cash and
cash equivalents) was $1.15 billion
- Repurchased $72.1 million or 1.9
million shares in the quarter. Entering the second quarter, the
Company had $327.0 million remaining under the current share
repurchase authorization
- Avnet paid a dividend of $0.18 per
share, or $22.0 million, during the quarter
“In the September quarter we utilized cash to build inventory
levels as a result of our strong book-to-bill ratio and lengthening
lead times across all three regions,” said Ken Jacobson, interim
CFO of Avnet. “We used the proceeds from the sale of our Tech Data
shares, which we acquired with the sale of the Technology Solutions
business, to return cash to shareholders via our share repurchase
program. With our strong balance sheet and liquidity of
approximately $2.0 billion, we are well positioned to invest in
future growth while continuing to execute on our strategy and
transformation initiatives that will make Avnet a leaner and more
agile enterprise serving the global technology supply chain with
innovative solutions.”
Outlook for Second Quarter of Fiscal
2018 Ending on December 30, 2017
- Sales are expected to be in the range
of $4.25 billion to $4.55 billion
- Adjusted diluted earnings per share is
expected to be in the range of $0.67 to $0.77 per share
- The guidance assumes 123 million
average diluted shares outstanding and an adjusted tax rate of 21%
to 25%
Outlook for Fiscal 2018 Ending on June
30, 2018
- Sales are expected to be in the range
of $18.1 billion to $18.5 billion
- Adjusted diluted earnings per share is
expected to be in the range of $3.10 to $3.60 per share
- The guidance assumes 123 million
average diluted shares outstanding and an adjusted tax rate of 21%
to 25%
The above guidance excludes any additional acquisitions, any
results of discontinued operations, amortization of intangibles,
accelerated depreciation, any potential restructuring, integration,
and other expenses and certain income tax adjustments. In addition,
the above guidance assumes that the average U.S. Dollar to Euro
currency exchange rate for the second quarter of fiscal 2018 is
$1.18 to €1.00. This compares with an average exchange rate of
$1.08 to the Euro in the second quarter of fiscal 2017.
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: Avnet’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, implementing and maintaining ERP systems and
transitioning to a global ERP system, supplier losses and changes
to supplier programs, an industry down-cycle in semiconductors,
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 price discounts 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 Avnet’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.
Teleconference and Upcoming
Events
Avnet will host a quarterly teleconference today at 11:00 a.m.
Eastern Time. Financial information including financial statement
reconciliations of non-GAAP to 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 idea to design and from prototype to production, Avnet
supports customers at each stage of a product’s lifecycle. A
comprehensive portfolio of design and supply chain services makes
Avnet the go-to guide for innovators who set the pace for
technological change. For nearly a century, Avnet has helped its
customers and suppliers around the world realize the transformative
possibilities of technology. Learn more about Avnet at
www.avnet.com.
Visit the Avnet Investor Relations website at www.ir.avnet.com
or contact us at investorrelations@avnet.com. (AVT_IR)
AVNET, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
First Quarters Ended
September 30, October 1, 2017
2016 (Thousands, except per share data) Sales $
4,660,943 $ 4,118,104 Cost of sales 4,048,388
3,595,449 Gross profit 612,555 522,655 Selling, general and
administrative expenses 496,206 363,672 Restructuring, integration
and other expenses 46,394 29,469
Operating income 69,955 129,514 Other income (expense), net 15,579
(13,734 ) Interest expense (24,060 ) (27,236 ) Income
from continuing operations before taxes 61,474 88,544 Income tax
expense 3,292 20,856 Income from
continuing operations, net of tax 58,182 67,688 Income from
discontinued operations, net of tax 121 1,155
Net income $ 58,303 $ 68,843 Earnings
per share - basic: Continuing operations $ 0.48 $ 0.53 Discontinued
operations 0.00 0.01 Net income per
share basic $ 0.48 $ 0.54 Earnings per share -
diluted: Continuing operations $ 0.47 $ 0.52 Discontinued
operations 0.00 0.01 Net income per
share diluted $ 0.47 $ 0.53 Shares used to
compute earnings per share: Basic 122,685
127,531 Diluted 123,984 129,763
Cash dividends paid per common share $ 0.18 $ 0.17
AVNET, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
September 30, July
1, 2017 2017 (Thousands) ASSETS
Current assets: Cash and cash equivalents $ 539,679 $ 836,384
Marketable securities 197,949 281,326 Receivables, net 3,417,427
3,337,624 Inventories 3,129,032 2,824,709 Prepaid and other current
assets 261,600 253,765 Total current assets 7,545,687
7,533,808 Property, plant and equipment, net 510,303 519,575
Goodwill 1,178,005 1,148,347 Intangible assets, net 290,962 277,291
Other assets 248,201 220,568 Total assets $ 9,773,158
$ 9,699,589
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities: Short-term debt $ 195,498 $ 50,113 Accounts
payable 1,917,749 1,861,635 Accrued expenses and other
598,456 542,023 Total current liabilities 2,711,703
2,453,771 Long-term debt 1,495,139 1,729,212 Other liabilities
322,213 334,538 Total liabilities 4,529,055 4,517,521
Shareholders’ equity 5,244,103 5,182,068 Total
liabilities and shareholders’ equity $ 9,773,158 $ 9,699,589
AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(UNAUDITED)
Three Months Ended September
30, 2017 October 1, 2016 (Thousands) Cash
flows from operating activities: Net income $ 58,303 $ 68,843 Less:
Income from discontinued operations, net of tax 121
1,155 Income from continuing operations 58,182 67,688
Non-cash and other reconciling items: Depreciation 38,263
19,694 Amortization 25,506 1,930 Deferred income taxes (23,436 )
6,412 Stock-based compensation 8,609 17,576 Other, net 4,902 10,714
Changes in (net of effects from businesses acquired and divested):
Receivables (32,409 ) (64,587 ) Inventories (266,998 ) 182,240
Accounts payable 37,252 (164,777 ) Accrued expenses and other, net
22,140 33,522 Net cash flows (used)
provided by operating activities - continuing operations
(127,989 ) 110,412 Net cash flows used by operating
activities - discontinued operations —
(110,548 ) Net cash flows used by operating activities
(127,989 ) (136 ) Cash flows from financing
activities: Repayment of notes — (300,000 ) Borrowings (repayments)
under accounts receivable securitization, net 28,000 (150,265 )
Borrowings (repayments) under senior unsecured credit facility, net
(92,471 ) — Borrowings (repayments) under bank credit facilities
and other debt, net (24,888 ) 669,803 Repurchases of common stock
(68,113 ) — Dividends paid on common stock (22,012 ) (21,676 )
Other, net (579 ) 682 Net cash flows (used)
provided by financing activities - continuing operations
(180,063 ) 198,544 Net cash flows used by financing
activities - discontinued operations — (4,756
) Net cash flows (used) provided by financing activities
(180,063 ) 193,788 Cash flows from investing
activities: Purchases of property, plant and equipment (26,659 )
(34,729 ) Acquisitions of businesses, net of cash acquired (14,661
) — Other, net 1,211 432 Net cash flows
used for investing activities - continuing operations
(40,109 ) (34,297 ) Net cash flows provided (used) by
investing activities - discontinued operations 45,391
(95 ) Net cash flows provided (used) by investing activities
5,282 (34,392 ) Effect of currency exchange
rate changes on cash and cash equivalents 6,065 5,807 Cash and cash
equivalents: — (decrease) increase (296,705 ) 165,067 — at
beginning of period 836,384 1,031,478 —
at end of period $ 539,679 $ 1,196,545
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 certain non-GAAP
financial information including (i) adjusted operating income, (ii)
adjusted operating expenses, (iii) adjusted other income (expense),
(iv) adjusted income tax expense, (v) adjusted income from
continuing operations, (vi) adjusted diluted earnings per share,
and (vii) 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 on
sales, income or expense items for subsidiaries reporting in
currencies other than the U.S. Dollar, the Company adjusts the
average exchange rates used in current periods to be consistent
with the average exchange rates in effect during the comparative
period.
Management believes that operating income and operating expenses
adjusted for restructuring, integration and other expenses and
amortization of acquired intangible assets and other, are useful
measures to help investors better assess and understand the
Company’s operating performance. This is especially the case 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 well as other income
(expense) excluding certain non-recurring amounts 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 income tax expense, income from
continuing operations and diluted earnings per share from
continuing operations adjusted for the impact of the items
described above and certain items impacting income tax expense are
useful to investors because they provide a measure of the Company’s
net profitability on a more comparable basis to historical periods
and provide 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 income from continuing
operations and diluted earnings per share from continuing
operations 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 from both continuing and discontinued
operations.
- 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 from both continuing and
discontinued operations.
- WC velocity is defined as annualized
adjusted sales divided by the sum of the monthly average balances
of receivables and inventories less accounts payable from both
continuing and discontinued operations.
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.
Quarter Ended September 30,
2017*
$ in thousands, exceptper share
amounts
GAAP selling, general and administrative expenses - continuing
operations $ 496,206 Amortization of intangible assets and other -
continuing operations (25,585) Adjusted operating expenses -
continuing operations 470,620 GAAP operating income -
continuing operations $ 69,955 Restructuring, integration and other
expenses - continuing operations 46,394 Amortization of intangible
assets and other - continuing operations 25,585 Adjusted
operating income - continuing operations 141,934 GAAP other
income (expense), net - continuing operations $ 15,579 Foreign
currency gain - continuing operations (9,886) Adjusted other
income (expense), net - continuing operations 5,692 GAAP
income before income taxes- continuing operations 61,474
Restructuring, integration and other expenses - continuing
operations 46,394 Amortization of intangible assets and other -
continuing operations 25,585 Foreign currency gain - continuing
operations (9,886) Adjusted income before income taxes -
continuing operations 123,567 GAAP income tax expense
(benefit) - continuing operations $ 3,292 Restructuring,
integration and other expenses - continuing operations 16,778
Amortization of intangible assets and other - continuing operations
5,200 Foreign currency gain - continuing operations (3,431)
Discrete income tax benefit items, net - continuing operations
6,898 Adjusted income tax expense - continuing operations
28,737 GAAP income - continuing operations $ 58,182
Restructuring, integration and other expenses (net of tax) -
continuing operations 29,616 Amortization of intangible assets and
other (net of tax) - continuing operations 20,385 Foreign currency
gain - continuing operations (net of tax) (6,455) Discrete income
tax benefit items, net - continuing operations (6,898)
Adjusted income - continuing operations 94,829 GAAP diluted
EPS - continuing operations $ 0.47 Restructuring, integration and
other expenses (net of tax) - continuing operations 0.24
Amortization of intangible assets and other (net of tax) -
continuing operations 0.16 Foreign currency gain - continuing
operations (net of tax) (0.05) Discrete income tax expense
(benefit) items - continuing operations (0.06) Adjusted
diluted EPS - continuing operations 0.76
* May not foot due to rounding
Fiscal Year 2017
Quarters Ended Fiscal July 1, April
1, December 31, October 1,
2017* 2017* 2017* 2016* 2016*
($ in thousands, except per share amounts) GAAP selling,
general and administrative expenses - continuing operations $
1,770,627 $ 495,210 $ 480,190 $ 431,555 $ 363,672 Amortization of
intangible assets and other - continuing operations (54,526
) (19,822 ) (22,497 ) (9,829 ) (2,378 )
Adjusted operating expenses - continuing operations 1,716,101
475,388 457,693 421,726 361,294 GAAP operating income -
continuing operations $ 461,400 $ 93,373 $ 114,283 $ 124,230 $
129,514 Restructuring, integration and other expenses - continuing
operations 137,415 42,033 35,513 30,400 29,469 Amortization of
intangible assets and other - continuing operations 54,526
19,822 22,497 9,829
2,378 Adjusted operating income - continuing
operations 653,341 155,228 172,293 164,459 161,361 GAAP
other (expense) income, net - continuing operations $ (44,305 ) $
(13,495 ) $ 19,439 $ (36,514 ) $ (13,734 ) Unrealized (gain) loss
on marketable securities and other - continuing operations 765
14,624 (13,859 ) - - Acquisition related FX hedging and financing
costs - continuing operations 43,707 -
- 32,700 11,007 Adjusted other (expense)
income, net - continuing operations 167 1,129 5,580 (3,814 ) (2,727
) GAAP income before income taxes- continuing operations
310,404 54,705 106,188 60,968 88,544 Restructuring, integration and
other expenses - continuing operations 137,415 42,033 35,513 30,400
29,469 Amortization of intangible assets and other - continuing
operations 54,526 19,822 22,497 9,829 2,378 Unrealized (gain) loss
on marketable securities and other - continuing operations 765
14,624 (13,859 ) - - Acquisition related FX hedging and financing
costs - continuing operations 43,707 -
- 32,700 11,007 Adjusted
income before income taxes - continuing operations 546,817 131,184
150,339 133,897 131,398 GAAP income tax expense (benefit) -
continuing operations $ 47,053 $ (18,574 ) $ 16,268 $ 28,503 $
20,856 Restructuring, integration and other expenses - continuing
operations 45,403 16,324 12,455 7,378 9,246 Amortization of
intangible assets and other - continuing operations 14,670 6,654
5,077 2,342 597 Unrealized (gain) loss on marketable securities and
other - continuing operations 1,381 6,812 (5,431 ) - - Acquisition
related FX hedging and financing costs - continuing operations
6,968 - - 4,230 2,738 Discrete income tax benefit (expense) items,
net - continuing operations 14,695 14,987
7,712 (9,369 ) 1,365
Adjusted income tax expense - continuing operations 130,170 26,203
36,081 33,084 34,802 GAAP income - continuing operations $
263,351 $ 73,279 $ 89,920 $ 32,465 $ 67,688 Restructuring,
integration and other expenses (net of tax) - continuing operations
92,012 25,709 23,058 23,022 20,223 Amortization of intangible
assets and other (net of tax) - continuing operations 39,856 13,168
17,420 7,487 1,781 Unrealized (gain) loss on marketable securities
and other (net of tax) - continuing operations (616 ) 7,812 (8,428
) - - Acquisition related FX hedging and financing costs (net of
tax) - continuing operations 36,739 - - 28,470 8,269 Discrete
income tax expense (benefit) items, net - continuing operations
(14,695 ) (14,987 ) (7,712 ) 9,369
(1,365 ) Adjusted income - continuing operations
416,647 104,981 114,258 100,813 96,596 GAAP diluted EPS -
continuing operations $ 2.05 $ 0.59 $ 0.69 $ 0.25 $ 0.52
Restructuring, integration and other expenses (net of tax) -
continuing operations 0.73 0.21 0.18 0.18 0.16 Amortization of
intangible assets and other (net of tax) - continuing operations
0.32 0.11 0.14 0.06 0.01 Unrealized (gain) loss on marketable
securities and other (net of tax) - continuing operations (0.01 )
0.06 (0.07 ) - - Acquisition related FX hedging and financing costs
(net of tax) - continuing operations 0.28 - - 0.22 0.06 Discrete
income tax expense (benefit) items, net - continuing operations
(0.13 ) (0.13 ) (0.06 ) 0.07
(0.01 ) Adjusted diluted EPS - continuing operations 3.24
0.84 0.88 0.77 0.74
* May not foot due to rounding
Organic Sales
Organic sales is defined as sales adjusted for the impact of
significant acquisitions, divestitures and other items by adjusting
Avnet’s prior and current (if necessary) 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 is
measured on a sales from continuing operations basis. 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 tables present the reconciliation of reported
sales to organic sales for the first quarters of fiscal 2017 and
fiscal 2018.
First Quarters Ended
SalesAs Reportedand
OrganicQ1-Fiscal2018
SalesAs
ReportedQ1-Fiscal2017
SalesOrganicQ1-Fiscal2017
SalesAs
ReportedYear-Year% Change
SalesAs ReportedYear-Year
%Change inConstantCurrency
OrganicSalesYear-Year% Change
OrganicSalesYear-Year
%Change inConstantCurrency
(Dollars in millions) Avnet $ 4,660.9 $ 4,118.1 $ 4,446.8
13.2 % 11.8 % 4.8 % 3.5 % Avnet by region Americas $ 1,185.5 $
1,250.5 $ 1,386.6 (5.2) % — (14.5) % — EMEA 1,693.0 1,265.3 1,417.6
33.8 28.0 % 19.4 14.3 % Asia 1,782.4 1,602.3 1,642.6 11.2 12.3 8.5
9.6 Avnet by segment EC $ 4,307.2 $ 4,118.1 $ 4,118.1 4.6 % 3.3 %
4.6 % 3.3 % PF 353.7 — 328.7 — — — —
First Quarter Ended Sales as
Organic Reported Sales from Sales
Fiscal 2017 Acquisitions (1) Fiscal
2017 (in millions) Avnet $ 4,118.1 $ 328.7 $ 4,446.8
Avnet by region Americas $ 1,250.5 $ 136.1 $ 1,386.6 EMEA 1,265.3
152.3 1,417.6 Asia 1,602.3 40.3 1,642.6 Avnet by segment EC $
4,118.1 $ — $ 4,118.1 PF — 328.7 328.7 (1)
Includes Premier Farnell acquired on October 17, 2016, which has
operations in each Avnet region.
Sales from suppliers lost as a result of supplier channel
changes were $87.5 million, $105.8 million and $103.3 million in
the first quarter of fiscal 2017 for the Americas, EMEA and Asia
regions, respectively compared to sales of $26.5 million, $43.2
million and $37.0 million in the first quarter of fiscal 2018 for
the Americas, EMEA and Asia regions, respectively.
Historical Segment Financial
Information
First Quarter September
30, 2017 (in millions) Sales: Electronic
Components $ 4,307.2 Premier Farnell 353.7 Avnet sales $
4,660.9 Operating income: Electronic Components $ 139.6
Premier Farnell 34.8 174.4 Corporate expenses (32.4)
Restructuring, integration and other expenses (46.4) Amortization
of acquired intangible assets and other (25.6) Avnet
operating income $ 70.0 Sales by geographic area: Americas $
1,185.5 EMEA 1,693.0 Asia 1,782.4 Avnet sales $ 4,660.9
Fiscal Year 2017
Quarters Ended Fourth Quarter
Third Quarter Second Quarter First Quarter
Fiscal Year July 1, April 1, December
31, October 1, 2017 2017 2017
2016 2016 (in millions) Sales: Electronic
Components $ 16,474.1 $ 4,260.7 $ 4,090.9 $ 4,004.3 $ 4,118.1
Premier Farnell (1) 965.9 345.7 351.0
269.2 - Avnet sales $ 17,440.0 $ 4,606.4 $ 4,441.9 $ 4,273.6
$ 4,118.1 Operating income: Electronic Components $ 661.0 $
152.4 $ 156.8 $ 166.7 $ 185.1 Premier Farnell (1) 99.8
35.5 40.3 24.0 - 760.8 187.9 197.1
190.7 185.1 Corporate expenses (2) (107.5) (32.7) (24.9) (26.3)
(23.7) Restructuring, integration and other expenses (137.4) (42.0)
(35.5) (30.4) (29.5) Amortization of acquired intangible assets and
other (54.5) (19.8) (22.5) (9.8)
(2.4) Avnet operating income $ 461.4 $ 93.4 $ 114.3 $ 124.2 $ 129.5
Sales by geographic area: Americas $ 5,163.9 $ 1,332.2 $
1,328.6 $ 1,252.6 $ 1,250.5 EMEA 5,912.9 1,651.0 1,615.9 1,380.7
1,265.3 Asia 6,363.2 1,623.2 1,497.4
1,640.3 1,602.3 Avnet sales $ 17,440.0 $ 4,606.4 $ 4,441.9 $
4,273.6 $ 4,118.1 (1) Premier Farnell was
acquired on October 17, 2016. (2) Prior to the divestiture of the
Technology Solutions business in Q3 FY17, a portion of Corporate
support expenses were classified within discontinued operations.
Guidance Reconciliation
The following table presents the reconciliation of non-GAAP
adjusted diluted earnings per share guidance to the expected GAAP
diluted earnings per share guidance for the second quarter of
fiscal 2018.
Low End of High End of Guidance Range
Guidance Range Adjusted diluted earnings per share guidance
$ 0.67 $ 0.77 Restructuring, integration and other expense (net of
tax) (1) (0.19) (0.16) Amortization of intangibles and other (net
of tax) (0.15) (0.13) Income tax expense adjustments (0.02)
0.02 GAAP diluted earnings per share guidance $ 0.31 $ 0.50
(1) Includes accelerated depreciation.
The following table presents the reconciliation of non-GAAP
adjusted diluted earnings per share guidance to the expected GAAP
diluted earnings per share guidance for fiscal 2018.
Low End of High End of Guidance
Range Guidance Range Adjusted diluted earnings per share
guidance $ 3.10 $ 3.60 Restructuring, integration and other expense
(net of tax) (1) (0.68) (0.54) Amortization of intangibles and
other (net of tax) (0.61) (0.57) Income tax expense adjustments
(0.04) 0.08 GAAP diluted earnings per share guidance
$ 1.77 $ 2.57 (1) Includes accelerated
depreciation.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171026005639/en/
Avnet, Inc.Investor Relations
ContactVincent KeenanInvestor Relations(480)
643-7053investorrelations@avnet.comorMedia
Relations ContactMaureen O’LearyCorporate
Communications480-643-7499maureen.oleary@avnet.com
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