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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 December 30, 1994 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 . . . . . 40,650,465 shs.
The number of units then outstanding of other publicly-traded securities of
the registrant:
6% Conv. Sub. Debs. Due April 15, 2012 . . . . . . . . . . $105,285,000
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 -
December 30, 1994 and July 1, 1994 3
Consolidated Condensed Statements of Income -
First Halves Ended December 30, 1994 and
December 31, 1993 4
Consolidated Condensed Statements of Income -
Second Quarters Ended December 30, 1994 and
December 31, 1993 5
Consolidated Condensed Statements of Cash Flows -
First Halves Ended December 30, 1994 and
December 31, 1993 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
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)
Item I. Financial Statements
December 30, July 1,
1994 1994
(unaudited) (audited)
Assets:
Current assets:
Cash and cash equivalents $ 61,207 $ 53,876
Receivables, less allowances of $21,288
and $21,975, respectively 628,684 573,569
Inventories (Note 3) 693,786 627,022
Other 12,986 9,614
Total current assets 1,396,663 1,264,081
Property, plant & equipment, at cost, net 126,190 115,146
Intangibles and other assets 438,754 408,460
Total assets $1,961,607 $1,787,687
Liabilities:
Current liabilities:
Borrowings due within one year $ 102 $ 47
Accounts payable 338,996 252,915
Accrued expenses and other 134,589 123,135
Total current liabilities 473,687 376,097
Long-term debt, less due within one year 329,758 303,075
Commitments and Contingencies (Note 4)
Total liabilities 803,445 679,172
Shareholders' equity (Note 5):
Common stock $1.00 par, authorized
60,000,000 shares, issued 41,136,000
shares and 41,104,000 shares, respectively 41,136 41,104
Additional paid-in capital 308,756 307,149
Retained earnings 828,048 780,266
Cumulative translation adjustments ( 9,464) ( 9,692)
Common stock held in treasury at cost,
445,000 shares and 445,000 shares,
respectively ( 10,314) ( 10,312)
Total shareholders' equity 1,158,162 1,108,515
Total liabilities and shareholders'
equity $1,961,607 $1,787,687
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(thousands except per share data)
First Half Ended
December 30, December 31,
1994 1993
(unaudited)
Revenues:
Sales $1,993,152 $1,728,464
Investment and other income, net 2,311 966
1,995,463 1,729,430
Costs and expenses:
Cost of sales 1,613,291 1,390,515
Selling, shipping, general
and administrative 253,329 235,902
Depreciation and amortization 13,775 12,720
Restructuring and integration -- 22,702
Interest 10,383 6,612
1,890,778 1,668,451
Income before income taxes and cumulative
effect of a change in accounting
principle 104,685 60,979
Income taxes 44,699 27,267
Income before cumulative effect of a
change in accounting principle 59,986 33,712
Cumulative effect of a change in the
method of accounting for income taxes -- (2,791)
Net income $ 59,986 $ 30,921
Earnings per share: (Note 6)
Income before cumulative effect of a
change in accounting principle $1.43 $0.83
Cumulative effect of a change in the
method of accounting for income taxes -- (0.07)
Net income $1.43 $0.76
Shares used to compute earnings per
share (Note 6) 43,352 40,814
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(thousands except per share data)
Second Quarter Ended
December 30, December 31,
1994 1993
(unaudited)
Revenues:
Sales $1,040,037 $ 850,462
Investment and other income, net 1,611 388
1,041,648 850,850
Costs and expenses:
Cost of sales 846,181 685,465
Selling, shipping, general
and administrative 128,762 114,132
Depreciation and amortization 7,245 6,687
Interest 5,261 3,411
987,449 809,695
Income before income taxes 54,199 41,155
Income taxes 23,140 17,553
Net income $ 31,059 $ 23,602
Earnings per share: (Note 6) $0.74 $0.58
Shares used to compute earnings per
share (Note 6) 43,371 40,836
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(dollars in thousands)
First Half Ended
December 30, December 31,
1994 1993
(unaudited)
Cash flows from operating activities:
Net income $59,986 $ 30,921
Add non-cash and other reconciling items:
Depreciation and amortization 16,972 15,473
Deferred taxes ( 723) ( 1,089)
Cumulative effect of change in accounting
for income taxes -- 2,791
Other, net (Note 7) 8,387 7,539
84,622 55,635
Receivables ( 53,246) ( 41,736)
Inventories ( 53,594) 4,935
Payables, accruals and other, net 76,016 ( 52,456)
Net cash flows provided from (used for)
operations 53,798 ( 33,622)
Cash flows from financing activities:
Issuance of bank debt 27,000 211,000
(Payment) issuance of other debt ( 2,625) 413
Cash dividends (Note 7) ( 6,102) ( 11,426)
Other, net 751 1,278
Net cash flows provided from financing 19,024 201,265
Cash flows from investing activities:
Purchases of property, plant and equipment ( 19,423) ( 8,362)
Acquisition of operations (Note 7) ( 43,293) ( 326,238)
Other, net ( 2,775) ( 73)
Net cash flows used for investing ( 65,491) ( 334,673)
Cash and cash equivalents:
- increase (decrease) 7,331 ( 167,030)
- at beginning of year 53,876 219,827
- at end of period $61,207 $ 52,797
Additional cash flow information (Note 7)
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 December 30, 1994 and July 1, 1994; the results of
operations for the first halves and second quarters ended December 30,
1994 and December 31, 1993; and the cash flows for the first halves
ended December 30, 1994 and December 31, 1993.
2. The results of operations for the first half and second quarter ended
December 30, 1994 are not necessarily indicative of the results to be
expected for the full year.
3. Inventories:
(Thousands)
December 30, July 1,
1994 1994
Finished goods $584,045 $554,813
Work in process 3,918 2,730
Purchased parts and raw materials 105,823 69,479
$693,786 $627,022
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 conversion, warrants, options and
other rights: 4,923,243
6. Solely for the purpose of calculating earnings per share for the second
quarter and first half of the period ended December 30, 1994, common
shares issuable upon conversion of the 6% Convertible Subordinated
Debentures were considered common equivalent shares and the net interest
expense applicable to such Debentures was eliminated. The dilutive
effect on the second quarter and first half earnings per share was
approximately $0.02 and $0.04, respectively. In the prior year's
comparable periods these adjustments were not made because the impact of
including the 6% Debentures would have been anti-dilutive.
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
7. 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 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.
Cash expended for the acquisition of operations in the first quarters of
fiscal 1995 and 1994 include primarily the cash paid for the
acquisitions of Penstock, Inc., Avnet Cable Technologies (formerly the
Flippin, Arkansas cable assembly operation of LaBarge, Inc. and Hall-
Mark Electronics (See Note No. 8), respectively.
Interest and income taxes paid in the first halves were as follows:
(Thousands) Fiscal
1995 1994
Interest $10,112 $ 7,432
Income taxes $43,465 $37,063
8. On July 1, 1993, the Company completed the acquisition of all of the
stock of Hall-Mark Electronics Corporation, the nation's third largest
distributor of electronic components, pursuant to an Agreement and Plan
of Merger dated April 20, 1993. Each share of Hall-Mark common stock
was exchanged for $20 in cash and 0.45 shares of Avnet common stock,
which had a market value of $34.1875 per share on July 1, 1993. The
total cost of the acquisition including expenses was approximately
$496,559,000, consisting of the cost for the Hall-Mark common stock of
$218,409,000 in cash, $166,093,000 in Avnet stock and $2,532,000 in
Avnet stock options (net of related tax benefits of $1,950,000), and the
cost for the refinancing of Hall-Mark bank debt of $109,525,000. The
$327,934,000 of funding required to complete the transaction was
financed through cash on hand, proceeds from the exercise of Hall-Mark
options and warrants, and borrowings under a credit facility with
NationsBank of North Carolina, N.A. The transaction was accounted for
as a purchase.
Item 2 Management Discussion and Analysis
Results of Operations
In the second quarter of fiscal 1995 ended December 30, 1994,
consolidated sales were a record $1.040 billion, up 22% as compared
with sales of $850.5 million in the prior year's like quarter. Both
the Electronic Marketing Group and the Video Communications Group
had record sales in the second quarter of 1995. The current year's
sales include the sales of Penstock, Avnet Cable Technologies,
DeMico and Adelsy, which were acquired subsequent to the first
quarter of 1994.
Penstock, the nation's leading technical specialist distributor of
microwave and radio frequency products and related value-added
services, was acquired in July 1994. Avnet Cable Technologies,
formerly the Flippin, Arkansas cable assembly operation of LaBarge,
Inc., was acquired in December 1994. Adelsy and DeMico, electronic
component distributors based in Italy, were acquired at the end of
September 1993 and in March 1994, respectively.
Consolidated gross profit margins of 18.6% for the quarter were
lower by 8/10 of 1% as compared with 19.4% in the second quarter of
last year. However, the Company's operating efficiency improved as
operating expenses as a percentage of sales fell to 13.1%, down 1.1%
as compared with 14.2% in the second quarter of last year. This
resulted in an increase in operating income as a percentage of sales
to 5.5% in the second quarter of 1995, up 3/10 of 1% as compared
with 5.2% in the prior year's like quarter.
Investment and other income in the second quarter of 1995 was higher
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 substantially higher in the second quarter of
1995 as compared with the second quarter of last year due to the
combination of increased interest rates and the increased borrowings
needed to finance acquisitions and the growth in business. There
was virtually no change in the Company's effective tax rate when
comparing the second quarter of 1995 with the comparable period last
year.
As a result of the above, net income for the second quarter of 1995
reached a record $31.1 million, up 32% when compared with $23.6
million in the second quarter of last year. Net income as a
percentage of sales was up 2/10 of 1% to 3.0% as compared with 2.8%
last year. Earnings per share for the second quarter of 1995 was
also a record, reaching $0.74 per share as compared with $0.58 in
last year's second quarter. The current quarter's earnings per
share of $0.74 includes an approximately $0.02 reduction due to the
dilutive effect of the required inclusion as common stock
equivalents of the Company's 6% Convertible Subordinated Debentures
due April 15, 2012. In the second quarter of last year, the
conversion of such debentures was not taken into account in
calculating earnings per share due to the anti-dilutive effect.
Consolidated sales in the first half of 1995 were a record $1.993
billion, up 15% as compared with $1.728 billion in the first half of
last year. This increase was due primarily to increased sales at
the Company's Electronic Marketing Group; its first half 1995 sales
were up 17% compared with the prior year. Consolidated gross profit
margins in the first half of this year were 19.1% as compared with
19.6% in the prior year, a decline of 5/10 of 1%. However, the
decrease of 1% in operating expenses as a percentage of sales, to
13.4% in the current year's first half as compared with 14.4% in the
first half of last year (before restructuring and integration costs
described below), more than offset the
decrease in the gross profit margin. As a result, operating income
as a percentage of sales increased 5/10 of 1% to 5.7% in this year's
first half as compared with 5.2% in the like period last year,
before restructuring and integration costs described below.
Investment and other income in the first half of 1995 was higher
than in the prior year, although, as indicated above, it does not
have a material impact on earnings. Interest expense for the first
half of 1995 was up substantially as compared with the like period
last year due to the increase in interest rates and the Company's
increased borrowings. There was no significant change in the
Company's effective tax rate in the first half of 1995 as compared
with the first half of 1994.
As a result of the above, net income for the first half of 1995 was
a record $60.0 million, up 26% as compared with $47.7 million in the
first half of last year (before special charges recorded in the
first quarter of last year). Net income as a percentage of sales
was 3.0% as compared with 2.8% last year. Earnings per share for
the first half of 1995 was a record $1.43, up 22% when compared with
$1.17 in the first half last year (before special charges). The
first half's earnings per share of $1.43 included an approximately
$0.04 reduction due to the dilutive effect of the required inclusion
as common stock equivalents of the Company's 6% Convertible
Debentures which, as noted above, was not taken into account in the
first half of last year due to the anti-dilutive effect.
The results for the first half of 1994 included the impact of
special charges recorded during last year's first quarter. During
the first quarter of 1994, the Company recorded special charges
which negatively impacted net income by $16.8 million or $0.41 per
share. After such charges, net income for the first half of 1994
was $30.9 million or $0.76 per share. The special charges included
$22.7 million ($13.5 million after tax) of restructuring and
integration costs associated with the July 1, 1993 acquisition of
Hall-Mark Electronics and the restructuring of the Electrical and
Industrial Group. These costs included accruals for severance,
anticipated real and personal property lease terminations,
relocation of employees, inventory adjustments related to
anticipated supplier terminations and other items. Other non-
recurring charges in the first quarter of 1994 were the $0.5 million
impact of the retroactive increase in federal income tax rates as it
related to fiscal 1993 income and the $2.8 million cumulative effect
of the change in the method of accounting for income taxes as a
result of the Company's adopting Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes".
Sales in the aggregate and on a per day basis during January 1995,
the first month of the third quarter, were both higher than in the
comparable period last year and in October 1994, the first month of
the immediately preceding quarter.
The Electronic Marketing Group's sales in the second quarter and
first half of 1995 were $927.9 million and $1.778 billion,
respectively, accounting for 89% of consolidated sales. This
represented a 24% and 17% increase, respectively, over the prior
year's second quarter sales of $750.9 million and first half sales
of $1.524 billion. Of the $177.0 million increase in second quarter
sales and the $254.0 million increase in first half sales,
approximately $30.4 million and $60.2 million, respectively, were
attributable to Penstock, Avnet Cable Technologies, DeMico and
Adelsy, which were acquired subsequent to last year's first quarter.
The balance of the increases in both periods was due to strong sales
performances by each of the other units in the Group. Gross profit
margins in both the second quarter and first half 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. Net income increased more
than 20% in both the second quarter and first half of 1995 as
compared with the like periods last year (before the special charges
noted above).
The Video Communications Group's second quarter sales of $67.0
million, which represented 6% of consolidated sales, were up 15% as
compared with the prior year's quarter, while first half sales of
$123.2 million were up 6% over the prior year. Net income was up
131% and 93%, respectively, for the second quarter and first half of
1995 as compared with the prior year's comparable periods due to
Channel Master's increased sales of DBS (Direct Broadcast Satellite)
TV equipment.
The Electrical and Industrial Group, with 5% of consolidated sales,
posted slightly higher sales for the second quarter and first half
of 1995 as compared with last year's like periods. The Group
recorded a profit for both the second quarter and first half of 1995
as compared with small losses in the comparable prior year periods.
Liquidity and Capital Resources
During the first half of 1995, cash generated from income before
depreciation and other non-cash items amounted to $84.6 million.
During that period, $30.8 million was used for working capital
needs, resulting in $53.8 million of net cash flows from operations.
Of that $53.8 million, $27.6 million, net, was needed for other
normal business operations including purchases of property, plant
and equipment ($19.4 million), dividends ($6.1 million) and other
immaterial items ($2.1 million). This resulted in $26.2 million
being generated from normal business operations. The Company also
used $45.9 million for acquisitions, primarily Penstock and Avnet
Cable Technologies, including the payoff of $2.6 million of
Penstock's outstanding debt. This overall use of cash of $19.7
million was financed by a $27.0 increase in bank debt offset by a
$7.3 million increase in cash.
The Company's quick assets at December 30, 1994 totaled $689.9
million compared with $627.4 million at July 1, 1994, and exceeded
the Company's current liabilities by $216.2 million compared with a
$251.3 million excess at July 1, 1994. Working capital at December
30, 1994 was $923.0 million compared with $888.0 million at July 1,
1994. At the end of the second quarter, to support each dollar of
current liabilities, the Company had $1.46 of quick assets and $1.49
of other current assets for a total of $2.95 compared with $3.36 at
July 1, 1994.
During the first half of 1995, shareholders' equity increased by
$49.6 million while long-term debt increased by $26.7 million. At
December 30, 1994 the Company's long-term debt amounted to $329.8
million or 22.2% of capital compared with 21.5% at July 1, 1994.
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 December 30, 1994, 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 and has had a claim made
against it by a third party with respect to a clean-up site in
Hempstead, New York. 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 with respect to an environmental
clean-up site in Huguenot, New York. At this time, the Company
cannot estimate the amount of its potential liability, if any, for
clean-up costs in connection with this site, 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.
AVNET, INC. AND SUBSIDIARIES
EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE - PRIMARY
First Half Ended
December 30, December 31,
1994 1993
(unaudited)
A. Primary earnings per share:
Common shares outstanding
(weighted average) 40,682,043 40,543,523
Common equivalent shares:
Conversion of convertible debentures
(weighted average) (Note 6) 2,448,487 --
Contingent shares issuable 107,806 108,304
Exercise of warrants and options
using the treasury method 113,289 162,643
Total common and common equivalent
shares 43,351,625 40,814,470
Income before cumulative effect of a
change in accounting principle $59,986,441 $33,711,699
Interest expense on convertible
debentures - net of taxes (Note 6) 1,894,316 --
Income used for computing earnings
per share before cumulative effect
of a change in accounting
principle $61,880,757 $33,711,699
Cumulative effect of a change in
the method of accounting for
income taxes -- ( 2,790,839)
Income used for computing earnings
per share $61,880,757 $30,920,860
Primary earnings per share:
Income before cumulative effect of
a change in accounting principle $1.43 $0.83
Cumulative effect of change in the
method of accounting for income
taxes -- ( .07)
Net income $1.43 $0.76
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC. AND SUBSIDIARIES
EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE - PRIMARY
Second Quarter Ended
December 30, December 31,
1994 1993
(unaudited)
A. Primary earnings per share:
Common shares outstanding
(weighted average) 40,688,395 40,557,831
Common equivalent shares:
Conversion of convertible debentures
(weighted average) (Note 6) 2,448,487 --
Contingent shares issuable 111,620 109,529
Exercise of warrants and options
using the treasury method 122,523 168,591
Total common and common equivalent
shares 43,371,025 40,835,951
Net Income $31,059,412 $23,601,764
Interest expense on convertible
debentures - net of taxes (Note 6) 947,158 --
Income used for computing earnings
per share $32,006,570 $23,601,764
Primary earnings per share $0.74 $0.58
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AVNET, INC AND SUBSIDIARIES
EXHIBIT 11.2
COMPUTATION OF EARNINGS PER SHARE - FULLY DILUTED
First Half Ended
December 30, December 31,
1994 1993
(unaudited)
B. Fully diluted earnings per share:
Common and common equivalents (Note 6) 43,351,625 40,814,470
Additional dilution upon exercise
of options and warrants 34,545 64,589
Total fully diluted shares 43,386,170 40,879,059
Income before cumulative effect of a
change in accounting principle $59,986,441 $33,711,699
Interest expense on convertible
debentures - net of taxes (Note 6) 1,894,316 --
Income used for computing earnings
per share before cumulative effect
of a change in accounting principle $61,880,757 $33,711,699
Cumulative effect of change in the
method of accounting for income
taxes -- ( 2,790,839)
Income used for computing earnings
per share $61,880,757 $30,920,860
Fully diluted earnings per share:
Income before cumulative effect of
a change in accounting principle $1.43 $0.83
Cumulative effect of a change in
the method of accounting for
income taxes -- (0.07)
Net income $1.43 $0.76
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
AVNET, INC AND SUBSIDIARIES
EXHIBIT 11.2
COMPUTATION OF EARNINGS PER SHARE - FULLY DILUTED
Second Quarter Ended
December 30, December 31,
1994 1993
(unaudited)
B. Fully diluted earnings per share:
Common and common equivalents (Note 6) 43,371,025 40,835,951
Additional dilution upon exercise
of options and warrants 28,443 39,435
Total fully diluted shares 43,399,468 40,875,386
Income before cumulative effect of a
change in accounting principle $31,059,412 $23,601,764
Interest expense on convertible
debentures - net of taxes (Note 6) 947,158 --
Net Income $32,006,570 $23,601,764
Fully diluted earnings per share $0.74 $0.58
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
February 10, 1995
Date