View:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For Quarter Ended March 29, 1996 Commission File #1-4224
Avnet, Inc.
(Exact name of registrant as specified in its charter)
New York 11-1890605
(State or other jurisdiction of IRS Employer I.D. Number
incorporation or organization)
80 Cutter Mill Road, Great Neck, N.Y. 11021
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code . . . . . . . .516-466-7000
Not Applicable
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
The number of shares of the registrant's Common Stock (net of treasury shares)
as of the close of the period covered by this report . . . . . 43,352,996 shs.
The number of units then outstanding of other publicly-traded securities of
the registrant:
6 7/8% Notes Due March 15, 2004 . . . . . . . . . . . . . . $100,000,000
AVNET, INC. AND SUBSIDIARIES
INDEX
Part I. Financial Information Page No.
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets -
March 29, 1996 and June 30, 1995 3
Consolidated Condensed Statements of Income -
Nine Months Ended March 29, 1996 and
March 31, 1995 4
Consolidated Condensed Statements of Income -
Third Quarters Ended March 29, 1996 and
March 31, 1995 5
Consolidated Condensed Statements of Cash Flows -
Nine Months Ended March 29, 1996 and
March 31, 1995 6
Notes to Consolidated Condensed Financial
Statements 7 - 8
Item 2. Management's Discussion and Analysis 9 - 12
Part II. Other Information
Item 6. Exhibits and Reports from Form 8-K:
a. The following documents are filed as
part of this report:
*Exhibit 11.1 - Computation of Earnings per
share - Primary 13 - 14
*Exhibit 11.2 - Computation of Earnings per
share - Fully Diluted 15 - 16
Signature Page 17
* Filed herewith
PART I - FINANCIAL INFORMATION
Item I. Financial Statements
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)
March 29, June 30,
1996 1995
(unaudited) (audited)
Assets:
Current assets:
Cash and cash equivalents $ 65,896 $ 49,332
Receivables, less allowances of $30,082
and $23,421, respectively 836,307 713,644
Inventories (Note 3) 915,578 747,477
Other 17,469 13,838
Total current assets 1,835,250 1,524,291
Property, plant & equipment, at cost, net 165,878 145,611
Goodwill, net of accumulated amortization of
$33,680 and $24,481, respectively 500,396 419,479
Other assets 36,573 36,214
Total assets $2,538,097 $2,125,595
Liabilities:
Current liabilities:
Borrowings due within one year $ 323 $ 493
Accounts payable 391,708 314,887
Accrued expenses and other 156,838 151,820
Total current liabilities 548,869 467,200
Long-term debt, less due within one year 524,634 419,016
Commitments and contingencies (Note 4)
Total liabilities 1,073,503 886,216
Shareholders' equity (Note 5):
Common stock $1.00 par, authorized
60,000,000 shares, issued 43,745,000
shares and 41,204,000 shares, respectively 43,745 41,204
Additional paid-in capital 416,149 310,843
Retained earnings 1,016,834 896,102
Cumulative translation adjustments (2,520) 814
Common stock held in treasury at cost,
392,000 shares and 412,000 shares,
respectively (9,614) (9,584)
Total shareholders' equity 1,464,594 1,239,379
Total liabilities and shareholders'
equity $2,538,097 $2,125,595
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(thousands except per share data)
Nine Months Ended
March 29, March 31,
1996 1995
(unaudited)
Sales $3,878,150 $3,122,328
Cost of sales 3,158,291 2,534,619
Gross Profit 719,859 587,709
Operating expenses:
Selling, shipping, general and
administrative 433,027 385,109
Depreciation and amortization 26,994 21,486
Operating income 259,838 181,114
Investment and other income, net 1,553 3,428
Interest expense (19,111) (16,490)
Income before income taxes 242,280 168,052
Income taxes 102,124 71,656
Net income $ 140,156 $ 96,396
Earnings per share $3.21 $2.29
Shares used to compute earnings per share 43,687 43,380
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(thousands except per share data)
Third Quarter Ended
March 29, March 31,
1996 1995
(unaudited)
Sales $1,387,484 $1,129,176
Cost of sales 1,136,117 921,328
Gross Profit 251,367 207,848
Operating expenses:
Selling, shipping, general and
administrative 149,981 131,780
Depreciation and amortization 9,371 7,711
Operating income 92,015 68,357
Investment and other income, net 458 1,117
Interest expense (7,537) (6,107)
Income before income taxes 84,936 63,367
Income taxes 36,015 26,957
Net income $ 48,921 $ 36,410
Earnings per share $1.12 $0.86
Shares used to compute earnings per share 43,653 43,435
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Nine Months Ended
March 29, March 31,
1996 1995
(unaudited)
Cash flows from operating activities:
Net income $140,156 $ 96,396
Add non-cash and other reconciling items:
Depreciation and amortization 32,557 26,212
Deferred taxes (1,431) (534)
Other, net (Note 6) 14,881 14,415
186,163 136,489
Receivables (111,238) (122,635)
Inventories (151,852) (58,968)
Payables, accruals and other, net 41,697 65,785
Net cash flows (used for) provided from
operations (35,230) 20,671
Cash flows from financing activities:
Issuance of bank debt and commercial paper,
net of issuance costs 212,683 77,600
Payment of other debt (9,238) (2,650)
Cash dividends (Note 6) (19,109) (12,205)
Other, net (1,196) 1,458
Net cash flows provided from financing 183,140 64,203
Cash flows from investing activities:
Purchases of property, plant and equipment (35,389) (39,796)
Acquisition of operations, net (Note 6) (95,807) (38,260)
Net cash flows used for investing (131,196) (78,056)
Effect of exchange rates on cash and cash
equivalents (150) 984
Cash and cash equivalents:
- increase 16,564 7,802
- at beginning of year 49,332 53,876
- at end of period $ 65,896 $ 61,678
Additional cash flow information (Note 6)
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of
normal recurring accruals) necessary to present fairly the financial
position as of March 29, 1996 and June 30, 1995; the results of
operations for the first nine months and third quarters ended March 29,
1996 and March 31, 1995; and the cash flows for the first nine months
ended March 29, 1996 and March 31,1995.
2. The results of operations for the first nine months and third quarter
ended March 29, 1996 are not necessarily indicative of the results to be
expected for the full year.
3. Inventories:
(Thousands)
March 29, June 30,
1996 1995
Finished goods $847,012 $651,939
Work in process 7,043 3,242
Purchased parts and raw materials 61,523 92,296
$915,578 $747,477
4. From time to time, the Company may become liable with respect to pending
and threatened litigation, taxes, and environmental and other matters.
The Company has been designated a potentially responsible party or has
had other claims made against it in connection with environmental clean-
ups at several sites. Based upon the information known to date, the
Company believes that it has appropriately reserved for its share of the
costs of the clean-ups and it is not anticipated that any contingent
matters will have a material adverse impact on the Company's financial
condition, liquidity or results of operations.
5. Number of shares of common stock reserved for stock
option and stock incentive programs: 4,088,168
6. Additional cash flow information:
Other non-cash and reconciling items primarily include the provision for
doubtful accounts.
Due to the change in the Company's fiscal year in fiscal 1994 and its
historical dividend payment dates, the July 1, 1994 dividend payment was
paid in fiscal 1994 and accordingly, no cash was used for dividends in
the first quarter of fiscal 1995.
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
6. Additional cash flow information (Continued)
Cash expended for the acquisition of operations in the first nine months
of fiscal 1996 includes the cash paid for the acquisitions of VSI
Electronics, Setron Schiffer Electronik GmbH & Co., KG, the Science and
Technology Division of Mercuries and Associates, Ltd. and Kopp Electronics,
offset by cash received in connection with the sale of the motor, motor
repair shop and OEM business of Brownell Electro. In the first nine months
of fiscal 1995, cash expended for operations was primarily the cash paid
in connection with the acquisitions of Penstock, Inc., Avnet Cable
Technologies, Lyco Limited and WKK Semiconductors, Ltd.
Interest and income taxes paid in the first nine months were as follows:
(Thousands)
1996 1995
Interest $22,504 $15,776
Income taxes $92,436 $61,169
Item 2 Management Discussion and Analysis
Results of Operations
In the third quarter of fiscal 1996 ended March 29, 1996, consolidated
sales were a record $1.387 billion, up 23% as compared with last year's
third quarter sales of $1.129 billion. The increase in sales came
entirely from the Electronic Marketing Group, which had record sales for
the quarter; its third quarter sales were up 32% as compared with the
same period last year. Sales of the Video Communications Group were down
when compared with last year's third quarter. During the first quarter
of 1996, the Company completed the sale of the motor, motor repair shop
and OEM business of Brownell Electro. Avnet Industrial, the remaining
business of Brownell which serves the industrial marketplace primarily in
MRO, together with the newly created Avnet Supply, a catalog business that
serves the OEM/electronic production marketplace, and Allied Electronics
now make up a new subgroup of the Electronic Marketing Group known as the
Industrial Marketing Group. The results for Brownell (which were not
material), including the business that was sold, were included in the
Electronic Marketing Group as of the first quarter of 1996. The Company's
Electrical and Industrial Group was, therefore, eliminated as of the
beginning of the 1996 fiscal year.
At the beginning of the current fiscal year, in July 1995, the Company
completed the acquisition of VSI Electronics consisting of VSI Electronics
(Australia) PTY Ltd., an Australian electronic components distributor ,
and VSI Electronics (NZ) Ltd., a New Zealand based electronic components
distributor. In September 1995, the Company completed the acquisition of
Setron Schiffer - Electronik GmbH & Co., KG, a limited partnership engaged
in electronic distribution primarily through a catalog and which operates
in Germany and 20 other countries in Europe. In December 1995, the
Company completed the acquisition of a 70% interest in the business
formerly known as the Science and Technology Division of Mercuries and
Associates, Ltd., a Taiwan-based electronic components distributor. In
January 1996, the Company completed the acquisition of an 80% interest in
Kopp Electronics, a South African-based electronics components
distributor.
These four acquisitions follow the seven acquisitions that the Company
completed during fiscal 1995. The 1995 acquisitions were Penstock, Inc.,
acquired in the first quarter, Avnet Cable Technologies, acquired in the
second quarter, Lyco Limited and a 70% interest in WKK Semiconductors,
Ltd., acquired in the third quarter, and CK Electronique, BFI-IBEXSA
International, Inc. and Sertek Inc., acquired in the fourth quarter.
Excluding the impact of sales attributable to companies acquired or
disposed of during the comparable periods, consolidated third quarter
sales would have been approximately 18% higher than in the prior year
corresponding period.
Consolidated gross profit margins of 18.1% for the third quarter were
lower by 3/10ths of 1% of sales as compared with 18.4% in the third
quarter of last year. However, the Company's operating efficiency
continued to improve as operating expenses as a percentage of sales fell
to 11.5%, down 8/10ths of 1% of sales as compared with 12.3% in the third
quarter of last year. As a result, operating income as a percentage of
sales increased to 6.6% in the third quarter of 1996, up 5/10ths of 1% of
sales as compared with 6.1% in the prior year's corresponding quarter.
Investment and other income in the third quarter of 1996 was lower than in
the comparable period last year; however, investment and other income has
had no material impact on earnings since the Company liquidated its
marketable securities portfolio to partially fund the July 1, 1993
acquisition of Hall-Mark Electronics. Interest expense was higher in the
third quarter of 1996 as compared with the third quarter of last year due
to increased borrowings to fund additional working capital requirements
to support the growth in business and to fund the Company's acquisition
program. The Company's effective tax rate decreased slightly in the third
quarter of 1996 as compared with the third quarter of 1995 due primarily
to a significant increase in pre-tax income as compared with the
relatively small increase in the amount of non-deductible goodwill
amortization, and, to a lesser extent, to the mix of earnings between the
domestic and foreign operations to which different tax rates apply.
As a result of the above, net income for the third quarter of 1996 reached
a record $48.9 million, up 34% when compared with $36.4 million in the
third quarter of last year. Net income as a percentage of sales increased
3/10ths of 1% of sales to 3.5% as compared with 3.2% last year. Earnings
per share for the third quarter of 1996 was also a record, reaching $1.12
per share as compared with $0.86 in last year's third quarter.
Consolidated sales in the first nine months of 1996 were a record $3.878
billion, up 24% as compared with $3.122 billion in the first nine months
of last year. Excluding the impact of sales attributable to companies
acquired or disposed of during the comparable periods, consolidated first
nine months sales of 1996 would have been 19% higher than in the prior
year. This increase was due entirely to increased sales at the Company's
Electronic Marketing Group. Consolidated gross profit margins in the
first nine months of this year were 18.6% as compared with 18.8% in the
prior year, a decline of 2/10ths of 1% of sales. However, the decrease in
operating expenses as a percentage of sales to 11.9% in the current year's
first nine months, as compared with 13.0% in the first nine months of last
year, more than offset the decrease in the gross profit margin. As a
result, operating income as a percentage of sales increased to 6.7% in
this year's first nine months as compared with 5.8% in the same period
last year.
Investment and other income in the first nine months of 1996 was lower
than in the prior year, although, as indicated above, it did not have a
material impact on earnings. Interest expense for the first nine months
of 1996 was up as compared with the same period last year due to the
increase in borrowings to fund the additional working capital requirements
to support the growth in business and to fund the Company's acquisition
program, somewhat offset by the reversal of interest expense which was
accrued at June 30, 1995 on the 6% Convertible Subordinated Debentures Due
2012 (the "Debentures"). Following the Company's call for redemption of
the Debentures, almost 100% of the outstanding Debentures were converted
into common stock of the Company in September 1995, thereby eliminating
the requirement to pay interest on the Debentures subsequent to the most
recent interest payment of April 15, 1995 and necessitating the reversal
of interest accrued at June 30, 1995. The Company's effective tax rate
decreased slightly in the first nine months of 1996 as compared with the
first nine months of 1995 due primarily to a significant increase in pre-
tax income as compared with the relatively small increase in the amount of
non-deductible goodwill amortization, and, to a lesser extent, to the mix
of earnings between the domestic and foreign operations to which different
tax rates apply.
As a result of the above, net income for the first nine months of 1996 was
a record $140.2 million, or 3.6% of sales, up 45% as compared with $96.4
million, or 3.1% of sales, in the first nine months of last year.
Earnings per share for the first nine months of 1996 was a record $3.21,
up 40% when compared with $2.29 in the first nine months of last year.
The Electronic Marketing Group's sales in the third quarter and first nine
months of 1996 were $1.331 billion and $3.721 billion, respectively,
accounting for 96% of consolidated sales. This represented a 32% increase
over the prior year's third quarter sales of $1.011 billion and a 33%
increase over the prior year's first nine months sales of $2.789 billion.
Of the $320 million increase in third quarter sales and the $932 million
increase in the first nine months sales, approximately $115 million and
$320 million, respectively, were attributable to companies which were not
part of the Group during the entire prior year period. The balance of the
increases in both periods were due to strong sales performances by each of
the other units in the Group. Gross profit margins in both the third
quarter and first nine months of this year were lower than in the prior
year periods, but lower operating expenses as a percentage of sales more
than offset the decrease in gross profit margins, resulting in higher
operating income as a percentage of sales in both periods. Net income
increased by 33% and 45% in the third quarter and first nine months of
1996, respectively, as compared with the like periods last year.
The Video Communications Group's third quarter sales of $56.0 million,
which represented 4% of consolidated sales, were down 22% as compared with
the prior year's quarter, while the first nine months sales of $157.1
million were down 19% when compared with the prior year. Net income was up
17% and 41%, respectively, for the third quarter and first nine months of
1996 as compared with the prior year's comparable periods. The decrease
in sales and increase in profits were due to sales transitioning from
lower margin satellite TV decoders to more profitable DBS (direct
broadcast satellite) business.
As mentioned above, the Electrical and Industrial Group was eliminated as
of the beginning of fiscal 1996 due to the sale of the motor, motor repair
shop and OEM business of Brownell and the transfer of the Avnet Industrial
business to the Electronic Marketing Group. Accordingly, its results for
the current year, including the results of the motor, motor repair shop
and OEM business prior to its disposition, were included in the Electronic
Marketing Group, while the prior period's results were included in the
Electrical and Industrial Group. There was no restatement of prior period
Group results due to the immaterial impact of the operations to both the
Electronic Marketing Group and the Company as a whole.
Liquidity and Capital Resources
During the first nine months of 1996, cash generated from income before
depreciation and other non-cash items amounted to $186.2 million. During
that period, $221.4 million was used for working capital needs, resulting
in $35.2 million of cash flows being used for operations. In addition,
$55.9 million, net, was used for other normal business operations
including purchases of property, plant and equipment ($35.4 million),
dividends ($19.1 million) and other immaterial items ($1.4 million). This
resulted in $91.1 million being used for normal business operations. The
Company also used $105.0 million in connection with acquisitions, offset
by cash received in connection with the sale of the motor, motor repair
shop and OEM business of Brownell Electro, and for the repayment of other
debt. This overall use of cash of $196.1 million was financed by a $212.7
million increase in bank debt and commercial paper, offset by a $16.6
million increase in cash and cash equivalents.
The Company's quick assets at March 29, 1996 totaled $902.2 million
compared with $763.0 million at June 30, 1995, and exceeded the Company's
current liabilities by $353.3 million as compared with a $295.8 million
excess at June 30, 1995. Working capital at March 29, 1996 was $1,286.4
million compared with $1,057.1 million at June 30, 1995. At the end of
the third quarter, to support each dollar of current liabilities, the
Company had $1.64 of quick assets and $1.70 of other current assets for a
total of $3.34 of current assets as compared with $3.26 at June 30, 1995.
In August 1995, the Company notified its Debentureholders of its decision
to call for redemption on September 15, 1995 the entire amount of
outstanding Debentures. Holders of $105.2 million of the Debentures
exercised their right to convert the Debentures into approximately 2.4
million shares of Avnet common stock at a conversion price of $43.00
principal amount per share, thereby increasing shareholders' equity by
$105.2 million. The remaining outstanding Debentures, amounting to $0.1
million, were redeemed on September 15, 1995, at a premium of 1.2% plus
accrued interest.
During the first nine months of 1996, taking into account the conversion
of the Debentures, shareholders' equity increased by $225.2 million to
$1,464.6 million while total debt increased by $105.5 million to $525.0
million. As a result, the total debt to capital (shareholders' equity
plus total debt) ratio was 26.4% at March 29, 1996 as compared with 25.3%
at June 30, 1995. The Company's favorable balance sheet ratios would
facilitate additional financing if, in the opinion of management, such
financing would enhance the future operations of the Company.
At March 29, 1996, the Company did not have any material commitments for
capital expenditures. The Company and the former owners of a Company-
owned site in Oxford, North Carolina have entered into a Consent Decree
and Court Order with the Environmental Protection Agency (EPA) for the
environmental clean-up of the site, the cost of which, according to the
EPA's remedial investigation and feasibility study, is estimated to be
approximately $6.3 million, exclusive of the $1.5 million in EPA past
costs paid by the potentially responsible parties (PRP's). Pursuant to a
Consent Decree and Court Order entered into between the Company and the
former owners, the former owners have agreed to bear at least 70% of the
clean-up costs of the site, and the Company will be responsible for not
more than 30% of those costs. The Company is also a PRP in an
environmental clean-up at a site in North Smithfield, Rhode Island. In
addition, the Company has received notice from a third party of its
intention to seek indemnification for costs it may incur in connection
with an environmental clean-up at a site in Rush, Pennsylvania resulting
from the alleged disposal of wire insulation material at the site by a
former unit of the Company. Based upon the information known to date, the
Company believes that it has appropriately accrued in the financial
statements for its share of the costs of the clean-up at these sites. The
Company is also a PRP or has been notified of claims made against it at
environmental clean-up sites in Huguenot, New York and in Hempstead, New
York. At this time, the Company cannot estimate the amount of its
potential liability, if any, for clean-up costs in connection with these
sites, but does not anticipate that these matters or any other contingent
matters will have a material adverse impact on the Company's financial
condition, liquidity or results of operations.
The Company is not now aware of any commitments, contingencies or events
within its control which may significantly change its ability to generate
sufficient cash from internal or external sources to meet its needs.
PART II - OTHER INFORMATION
AVNET, INC. AND SUBSIDIARIES
EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE - PRIMARY
Nine Months Ended
March 29, March 31,
1996 1995
(unaudited)
A. Primary earnings per share:
Common shares outstanding
(weighted average) *43,309,268 40,704,800
Common equivalent shares:
Conversion of convertible debentures
(weighted average) -- 2,448,487
Contingent shares issuable 110,867 99,808
Exercise of warrants and options
using the treasury method 267,358 126,428
Total common and common equivalent
shares 43,687,493 43,379,523
Income $140,156,050 $96,396,488
Interest expense on convertible
debentures - net of taxes -- 2,841,472
Income used for computing earnings
per share $140,156,050 $99,237,960
Net income $3.21 $2.29
* The weighted average shares outstanding for the first nine months ended
March 29, 1996 include 2,445,270 shares issued in connection with the
conversion of the Company's 6% Convertible Subordinated Debentures.
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE - PRIMARY
Third Quarter Ended
March 29, March 31,
1996 1995
(unaudited)
A. Primary earnings per share:
Common shares outstanding
(weighted average) 43,346,080 40,750,315
Common equivalent shares:
Conversion of convertible debentures
(weighted average) -- 2,448,487
Contingent shares issuable 97,259 83,813
Exercise of warrants and options
using the treasury method 209,614 152,706
Total common and common equivalent
shares 43,652,953 43,435,321
Income $48,920,840 $36,410,047
Interest expense on convertible
debentures - net of taxes -- 947,156
Income used for computing earnings
per share $48,920,840 $37,357,203
Net income $1.12 $0.86
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC AND SUBSIDIARIES
EXHIBIT 11.2
COMPUTATION OF EARNINGS PER SHARE - FULLY DILUTED
Nine Months Ended
March 29, March 31,
1996 1995
(unaudited)
B. Fully diluted earnings per share:
Common and common equivalents *43,687,493 43,379,523
Additional dilution upon exercise
of options and warrants 38,847 43,715
Total fully diluted shares 43,726,340 43,423,238
Income $140,156,050 $96,396,488
Interest expense on convertible
debentures - net of taxes -- 2,841,472
Income used for computing earnings
per share $140,156,050 $99,237,960
Fully diluted earnings per share:
Net income $3.21 $2.29
* The weighted average shares outstanding for the first nine months ended
March 29, 1996 include 2,445,270 shares issued in connection with the
conversion of the Company's 6% Convertible Subordinated Debentures.
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC AND SUBSIDIARIES
EXHIBIT 11.2
COMPUTATION OF EARNINGS PER SHARE - FULLY DILUTED
Third Quarter Ended
March 29, March 31,
1996 1995
(unaudited)
B. Fully diluted earnings per share:
Common and common equivalents 43,652,953 43,435,321
Additional dilution upon exercise
of options and warrants 97,025 62,054
Total fully diluted shares 43,749,978 43,497,375
Income $48,920,840 $36,410,047
Interest expense on convertible
debentures - net of taxes -- 947,156
Income used for computing earnings
per share $48,920,840 $37,357,203
Fully diluted earnings per share:
Net income $1.12 $0.86
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Avnet, Inc.
(Registrant)
By: s/Raymond Sadowski
Raymond Sadowski
Senior Vice President,
Chief Financial Officer
and Assistant Secretary
By: s/John F. Cole
John F. Cole
Controller and Principal
Accounting Officer
May 13, 1996
Date