UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
__________________
Date of Report (Date of earliest event reported) August 8, 2018
AVNET, INC.
(Exact name of registrant as specified in its charter)
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New York |
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1-4224 |
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11-1890605 |
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(State or other jurisdiction |
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(Commission |
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(IRS Employer |
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Of incorporation) |
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File Number) |
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Identification No.) |
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2211 South 47th Street, Phoenix, Arizona |
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85034 |
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(Address of principal executive offices) |
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(Zip Code) |
(480) 643-2000
(Registrant’s telephone number, including area code.)
N/A
(Former name and former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 8, 2018, Avnet, Inc. (the “Company”) issued a press release announcing its fourth quarter and year end results of operations for fiscal 2018. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K and the exhibit attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following materials are attached as exhibits to this Current Report on Form 8-K:
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Exhibit |
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Description |
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99.1 |
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2
SIGNATURES
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 hereunto duly authorized.
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Date: August 8, 2018 |
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AVNET, INC. |
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Registrant |
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By: |
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/s/ Thomas Liguori |
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Name: Thomas Liguori |
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Title: Chief Financial Officer |
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3
Avnet Reports Fiscal Fourth Quarter and 2018 Financial Results
Fourth quarter sales rose 10 percent year over year
Transformation delivered cash flow from operations of $236 million, the highest in five years
PHOENIX - August 8, 2018 - Avnet, Inc. (Nasdaq:AVT) today announced results for the fourth quarter and fiscal year ended June 30, 2018.
Fourth Quarter Key Financial Highlights
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· |
Sales of $5.06 billion increased 9.8% year over year |
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o |
Sales grew 6.7% year over year in constant currency |
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· |
GAAP operating income margin of 2.5% |
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o |
Non-GAAP adjusted operating income margin improved year over year to 3.7% |
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· |
GAAP diluted EPS from continuing operations of $0.49 |
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o |
Non-GAAP diluted EPS of $0.99 increased 18% year over year |
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· |
Delivered the strongest adjusted operating income dollars and margin performance in five quarters |
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· |
Net working capital days improved sequentially by 7 days, from 93 to 86, and improved 14 days from the second quarter |
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· |
Cash flow from operations reached $236 million |
CEO Commentary
“We closed fiscal 2018 with great momentum in revenue growth, earnings and cash flow generation,” said Bill Amelio, Chief Executive Officer, Avnet. “Avnet’s unique ecosystem gives our customers access to an unparalleled suite of capabilities. We can now guide our enterprise and startup customers alike from idea to product and product to market. We do this by reducing complexity and delivering solutions that get products to market quickly and cost effectively. Our ecosystem is foundational, and when coupled with our ongoing transformation initiatives, we see a very exciting road ahead.”
Key Financial Metrics
($ in millions, except per share data)
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Fourth Quarter Results (GAAP) |
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Jun – 18 |
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Jun – 17 |
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Change Y/Y |
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Mar – 18 |
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Change Q/Q |
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Sales |
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$ |
5,059.2 |
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$ |
4,606.4 |
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9.8 |
% |
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$ |
4,795.1 |
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5.5 |
% |
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Operating Income (Loss) |
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127.9 |
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93.4 |
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37.0 |
% |
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(54.4) |
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335.2 |
% |
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Operating Income (Loss) Margin |
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2.5 |
% |
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2.0 |
% |
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50 |
bps |
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(1.1) |
% |
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366 |
bps |
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Diluted Earnings (Loss) Per Share |
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$ |
0.49 |
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$ |
0.59 |
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(16.9) |
% |
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$ |
(2.64) |
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118.6 |
% |
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Fourth Quarter Results (Non-GAAP)(1) |
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Jun – 18 |
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Jun – 17 |
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Change Y/Y |
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Mar – 18 |
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Change Q/Q |
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Sales |
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$ |
5,059.2 |
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$ |
4,606.4 |
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9.8 |
% |
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$ |
4,795.1 |
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5.5 |
% |
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Adjusted Operating Income |
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186.5 |
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155.2 |
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20.2 |
% |
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174.9 |
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6.7 |
% |
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Adjusted Operating Income Margin |
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3.7 |
% |
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3.4 |
% |
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32 |
bps |
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3.7 |
% |
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4 |
bps |
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Adjusted Diluted Earnings Per Share |
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$ |
0.99 |
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$ |
0.84 |
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17.9 |
% |
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$ |
1.02 |
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(2.9) |
% |
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Segment and Geographical Mix |
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Jun – 18 |
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Jun – 17 |
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Change Y/Y |
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Mar – 18 |
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Change Q/Q |
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Electronic Components (EC) Sales |
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$ |
4,668.7 |
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$ |
4,260.7 |
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9.6 |
% |
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$ |
4,404.1 |
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6.0 |
% |
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EC Operating Income Margin |
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3.4 |
% |
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3.6 |
% |
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(15) |
bps |
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3.6 |
% |
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(15) |
bps |
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Premier Farnell (PF) Sales |
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$ |
390.5 |
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$ |
345.7 |
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13.0 |
% |
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$ |
391.0 |
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(0.1) |
% |
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PF Operating Income Margin |
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11.8 |
% |
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10.3 |
% |
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149 |
bps |
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11.4 |
% |
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42 |
bps |
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Americas Sales |
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$ |
1,339.2 |
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$ |
1,332.2 |
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0.5 |
% |
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$ |
1,276.4 |
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4.9 |
% |
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EMEA Sales |
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1,779.6 |
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1,651.0 |
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7.8 |
% |
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1,812.3 |
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(1.8) |
% |
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Asia Sales |
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1,940.4 |
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1,623.2 |
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19.6 |
% |
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1,706.3 |
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13.7 |
% |
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(1) |
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release. |
CFO Commentary
“Our transformation efforts are contributing meaningfully toward our goals of growing Avnet’s higher margin businesses, reducing our expenses and optimizing working capital. This progress culminated in $236 million of cash flow from operations in the fourth quarter, Avnet’s best operating cash flow performance in five years,” stated Tom Liguori, Chief Financial Officer, Avnet. ”Our focus on optimizing operating expenses resulted in an additional $37 million of savings being implemented at the end of the fourth quarter to further streamline expenses as we enter fiscal year 2019.”
Additional Fourth Quarter Highlights
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· |
Named a global distribution partner for Microsemi Corp., a wholly owned subsidiary of Microchip Technology. This expands Avnet’s multi-year relationship with Microchip, and gives Avnet customers access to Microsemi’s complete portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets |
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· |
Added three new suppliers to the Electronic Components business and four new suppliers to Premier Farnell |
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· |
Surpassed one million members in Avnet’s online communities of element14 and Hackster.io, more than double the members from one year ago |
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· |
Expanded the Company’s industry expertise by adding semiconductor veteran Oleg Khaykin to Avnet’s board of directors, where he serves on the audit and the corporate governance committees |
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Strengthened the Electronic Components business unit by adding Tony Roybal, who joined Avnet as regional president, Americas Electronic Components, reporting to Phil Gallagher |
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Continued to maintain a strong book-to-bill ratio above 1.0 across all regions |
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· |
Delivered the strongest sales quarter of the year for the Electronic Components business with 6% sales growth sequentially |
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Doubled online sales year-over-year |
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· |
Repurchased 2.9 million Avnet shares for $117 million |
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· |
Paid $0.19 per share dividend for a total of $22.1 million |
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· |
Reported end of quarter cash and cash equivalents of $621.1 million; debt was $1.7 billion with a leverage ratio of approximately 2.2 |
Outlook for the First Quarter of Fiscal 2019 Ending on September 29, 2018
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Guidance Range |
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Midpoint |
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Sales |
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$4.8B - $5.2B |
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$5.0B |
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Non-GAAP Diluted EPS(1) |
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$0.95 - $1.05 |
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$1.00 |
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Estimated Tax Rate |
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20% - 24% |
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22% |
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(1) |
A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release. |
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 including certain impacts of the recent tax law changes in the U.S. The above guidance assumes 117 million average diluted shares outstanding and the average U.S. Dollar to Euro currency exchange rate for the first quarter of fiscal 2019 is $1.16 to €1.00. This compares with an average exchange rate of $1.17 to the Euro in the first quarter of fiscal 2018.
Today’s Conference Call and Webcast Details:
Avnet will host a quarterly teleconference and webcast today at 1:30 p.m. PDT. The live webcast can be accessed from the following link Avnet Earnings Call Webcast and Slides and will be available for 90 days.
To participate in the live call, dial 877-407-8112 or 201-689-8840. To access the slides follow the webcast link above, or the slides can be accessed via Avnet’s Investor Relations web page at: www.ir.avnet.com.
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, 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.
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)
Investor Relations Contacts
Tom Liguori, CFO
Avnet
480-643-7550
or
Ina McGuinness, Abernathy MacGregor
480-643-7053
investorrelations@avnet.com
Media Relations Contact
Maureen O’Leary
Media Relations
480-643-7499
maureen.oleary@avnet.com
AVNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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Fourth Quarters Ended |
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Years Ended |
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June 30, |
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July 1, |
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June 30, |
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July 1, |
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2018 |
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2017 |
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2018 |
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2017 |
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(Thousands, except per share data) |
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Sales |
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$ |
5,059,220 |
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$ |
4,606,404 |
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$ |
19,036,892 |
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$ |
17,439,963 |
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Cost of sales |
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4,400,588 |
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3,975,788 |
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16,509,708 |
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15,070,521 |
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Gross profit |
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658,632 |
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630,616 |
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2,527,184 |
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2,369,442 |
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Selling, general and administrative expenses |
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493,840 |
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495,210 |
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1,970,103 |
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1,770,627 |
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Goodwill Impairment expense |
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— |
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— |
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181,440 |
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— |
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Restructuring, integration and other expenses |
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36,848 |
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|
42,033 |
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|
145,125 |
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|
137,415 |
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Operating income |
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|
127,944 |
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|
93,373 |
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|
230,516 |
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|
461,400 |
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Other (expense) income, net |
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(7,639) |
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|
(13,495) |
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17,086 |
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(44,305) |
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Interest expense |
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(26,779) |
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(25,173) |
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|
(102,525) |
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|
(106,691) |
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Income from continuing operations before taxes |
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|
93,526 |
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|
54,705 |
|
|
145,077 |
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|
310,404 |
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Income tax expense (benefit) |
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|
35,787 |
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(18,574) |
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|
287,966 |
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|
47,053 |
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Income (loss) from continuing operations, net of tax |
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|
57,739 |
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|
73,279 |
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|
(142,889) |
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|
263,351 |
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Income (loss) from discontinued operations, net of tax |
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|
876 |
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|
8,167 |
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|
(13,535) |
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|
261,927 |
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Net income (loss) |
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$ |
58,615 |
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$ |
81,446 |
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$ |
(156,424) |
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$ |
525,278 |
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|
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|
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|
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|
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|
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Earnings (loss) per share - basic: |
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|
|
|
|
|
|
|
|
|
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Continuing operations |
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$ |
0.49 |
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$ |
0.59 |
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$ |
(1.19) |
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$ |
2.07 |
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Discontinued operations |
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|
0.01 |
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0.07 |
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(0.11) |
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|
2.06 |
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Net income (loss) per share basic |
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$ |
0.50 |
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$ |
0.66 |
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$ |
(1.30) |
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$ |
4.13 |
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Earnings (loss) per share - diluted: |
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Continuing operations |
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$ |
0.49 |
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$ |
0.59 |
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$ |
(1.19) |
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$ |
2.05 |
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Discontinued operations |
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0.01 |
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0.07 |
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(0.11) |
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|
2.03 |
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Net income (loss) per share diluted |
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$ |
0.50 |
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$ |
0.65 |
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$ |
(1.30) |
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$ |
4.08 |
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Shares used to compute earnings per share: |
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Basic |
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116,948 |
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124,209 |
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119,909 |
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|
127,032 |
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Diluted |
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|
117,863 |
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|
125,062 |
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|
119,909 |
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|
128,651 |
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Cash dividends paid per common share |
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$ |
0.19 |
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$ |
0.18 |
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$ |
0.74 |
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$ |
0.70 |
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AVNET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
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|
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June 30, |
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July 1, |
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||
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2018 |
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2017 |
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(Thousands) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
621,125 |
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$ |
836,384 |
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Marketable securities |
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— |
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281,326 |
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Receivables, net |
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3,641,139 |
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3,337,624 |
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Inventories |
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3,141,822 |
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2,824,709 |
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Prepaid and other current assets |
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206,513 |
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|
253,765 |
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Total current assets |
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7,610,599 |
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|
7,533,808 |
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Property, plant and equipment, net |
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|
522,909 |
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|
519,575 |
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Goodwill |
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|
980,872 |
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1,148,347 |
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Intangible assets, net |
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|
219,913 |
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|
277,291 |
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Other assets |
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|
262,552 |
|
|
220,568 |
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Total assets |
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$ |
9,596,845 |
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$ |
9,699,589 |
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|
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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|
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Current liabilities: |
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|
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|
|
Short-term debt |
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$ |
165,380 |
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$ |
50,113 |
|
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Accounts payable |
|
|
2,269,478 |
|
|
1,861,635 |
|
|
Accrued expenses and other |
|
|
534,603 |
|
|
542,023 |
|
|
Total current liabilities |
|
|
2,969,461 |
|
|
2,453,771 |
|
|
Long-term debt |
|
|
1,489,219 |
|
|
1,729,212 |
|
|
Other liabilities |
|
|
453,084 |
|
|
334,538 |
|
|
Total liabilities |
|
|
4,911,764 |
|
|
4,517,521 |
|
|
Shareholders’ equity |
|
|
4,685,081 |
|
|
5,182,068 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
9,596,845 |
|
$ |
9,699,589 |
|
|
|
|
|
|
|
|
|
|
AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
Years Ended |
|
||||
|
|
|
June 30, 2018 |
|
July 1, 2017 |
|
||
|
|
|
(Thousands) |
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(156,424) |
|
$ |
525,278 |
|
|
Less: (Loss) income from discontinued operations, net of tax |
|
|
(13,535) |
|
|
261,927 |
|
|
Loss (income) from continuing operations |
|
|
(142,889) |
|
|
263,351 |
|
|
|
|
|
|
|
|
|
|
|
Non-cash and other reconciling items: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
143,397 |
|
|
101,407 |
|
|
Amortization |
|
|
91,475 |
|
|
53,953 |
|
|
Deferred income taxes |
|
|
(87,141) |
|
|
(17,705) |
|
|
Stock-based compensation |
|
|
23,990 |
|
|
47,686 |
|
|
Goodwill impairment expense |
|
|
181,440 |
|
|
— |
|
|
Other, net |
|
|
49,383 |
|
|
29,104 |
|
|
Changes in (net of effects from businesses acquired and divested): |
|
|
|
|
|
|
|
|
Receivables |
|
|
(296,175) |
|
|
(371,820) |
|
|
Inventories |
|
|
(308,663) |
|
|
84,408 |
|
|
Accounts payable |
|
|
409,608 |
|
|
163,604 |
|
|
Accrued expenses and other, net |
|
|
189,060 |
|
|
(132,941) |
|
|
Net cash flows provided by operating activities - continuing operations |
|
|
253,485 |
|
|
221,047 |
|
|
Net cash flows used by operating activities - discontinued operations |
|
|
— |
|
|
(589,738) |
|
|
Net cash flows provided (used) by operating activities |
|
|
253,485 |
|
|
(368,691) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Issuance of notes, net of issuance costs |
|
|
— |
|
|
296,374 |
|
|
Repayment of notes |
|
|
— |
|
|
(530,800) |
|
|
Repayments under accounts receivable securitization, net |
|
|
(37,000) |
|
|
(588,000) |
|
|
Borrowings (repayments) under senior unsecured credit facility, net |
|
|
8,850 |
|
|
(50,029) |
|
|
(Repayments) borrowings under bank credit facilities and other debt, net |
|
|
(97,954) |
|
|
27,877 |
|
|
Borrowings of term loans |
|
|
— |
|
|
530,756 |
|
|
Repayments of term loans |
|
|
— |
|
|
(511,358) |
|
|
Repurchases of common stock |
|
|
(323,516) |
|
|
(275,884) |
|
|
Dividends paid on common stock |
|
|
(88,255) |
|
|
(88,657) |
|
|
Other, net |
|
|
(4,018) |
|
|
(1,870) |
|
|
Net cash flows used by financing activities - continuing operations |
|
|
(541,893) |
|
|
(1,191,591) |
|
|
Net cash flows provided by financing activities - discontinued operations |
|
|
— |
|
|
3,447 |
|
|
Net cash flows used by financing activities |
|
|
(541,893) |
|
|
(1,188,144) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(155,873) |
|
|
(120,397) |
|
|
Acquisitions of businesses, net of cash acquired |
|
|
(15,254) |
|
|
(802,744) |
|
|
Other, net |
|
|
6,653 |
|
|
18,656 |
|
|
Net cash flows used for investing activities - continuing operations |
|
|
(164,474) |
|
|
(904,485) |
|
|
Net cash flows provided by investing activities - discontinued operations |
|
|
236,205 |
|
|
2,242,959 |
|
|
Net cash flows provided by investing activities |
|
|
71,731 |
|
|
1,338,474 |
|
|
Effect of currency exchange rate changes on cash and cash equivalents |
|
|
1,418 |
|
|
23,267 |
|
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
— (decrease) increase |
|
|
(215,259) |
|
|
(195,094) |
|
|
— at beginning of period |
|
|
836,384 |
|
|
1,031,478 |
|
|
— at end of period |
|
$ |
621,125 |
|
$ |
836,384 |
|
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 other income (expense), (iii) adjusted income tax expense, (iv) adjusted income from continuing operations, (v) adjusted diluted earnings per share, and (vi) 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 adjusted for restructuring, integration and other expenses, goodwill impairment expense 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 without the impact of these items as well as other income (expense) excluding certain 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. Management measures operating income for our reportable segments excluding restructuring, integration and other expenses, goodwill impairment expense and amortization of acquired intangible assets and other.
Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.
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 other expense and 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.
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 |
|
Quarters Ended |
|
|||||||||||
|
|
|
|
Year to Date |
|
June 30, |
|
March 31, |
|
December 30, |
|
September 30, |
|
|||||
|
|
|
|
2018* |
|
2018* |
|
2018* |
|
2017* |
|
2017* |
|
|||||
|
|
|
|
($ in thousands, except per share amounts) |
|
|||||||||||||
|
GAAP operating income (loss) - continuing operations |
|
|
$ |
230,516 |
|
$ |
127,944 |
|
$ |
(54,401) |
|
$ |
87,018 |
|
$ |
69,955 |
|
|
Restructuring, integration and other expenses - continuing operations |
|
|
|
145,125 |
|
|
36,848 |
|
|
25,120 |
|
|
36,762 |
|
|
46,394 |
|
|
Goodwill impairment expense - continuing operations |
|
|
|
181,440 |
|
|
- |
|
|
181,440 |
|
|
- |
|
|
- |
|
|
Amortization of intangible assets and other - continuing operations |
|
|
|
91,923 |
|
|
21,736 |
|
|
22,725 |
|
|
21,877 |
|
|
25,585 |
|
|
Adjusted operating income (loss) - continuing operations |
|
|
|
649,004 |
|
|
186,529 |
|
|
174,884 |
|
|
145,657 |
|
|
141,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other income (expense), net - continuing operations |
|
|
$ |
17,086 |
|
$ |
(7,639) |
|
$ |
8,384 |
|
$ |
762 |
|
$ |
15,579 |
|
|
Foreign currency (gain) loss and other expenses- continuing operations |
|
|
|
(9,762) |
|
|
(559) |
|
|
137 |
|
|
546 |
|
|
(9,886) |
|
|
Adjusted other income (expense), net - continuing operations |
|
|
|
7,324 |
|
|
(8,198) |
|
|
8,521 |
|
|
1,308 |
|
|
5,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) before income taxes- continuing operations |
|
|
$ |
145,077 |
|
$ |
93,526 |
|
$ |
(72,063) |
|
$ |
62,140 |
|
$ |
61,474 |
|
|
Restructuring, integration and other expenses - continuing operations |
|
|
|
145,125 |
|
|
36,848 |
|
|
25,120 |
|
|
36,762 |
|
|
46,394 |
|
|
Goodwill impairment expense - continuing operations |
|
|
|
181,440 |
|
|
- |
|
|
181,440 |
|
|
- |
|
|
- |
|
|
Amortization of intangible assets and other - continuing operations |
|
|
|
91,923 |
|
|
21,736 |
|
|
22,725 |
|
|
21,877 |
|
|
25,585 |
|
|
Foreign currency (gain) loss and other expenses- continuing operations |
|
|
|
(9,762) |
|
|
(559) |
|
|
137 |
|
|
546 |
|
|
(9,886) |
|
|
Adjusted income (loss) before income taxes - continuing operations |
|
|
|
553,803 |
|
|
151,551 |
|
|
157,359 |
|
|
121,325 |
|
|
123,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax expense (benefit) - continuing operations |
|
|
$ |
287,966 |
|
$ |
35,787 |
|
$ |
243,541 |
|
$ |
5,346 |
|
$ |
3,292 |
|
|
Restructuring, integration and other expenses - continuing operations |
|
|
|
41,460 |
|
|
9,921 |
|
|
5,757 |
|
|
9,004 |
|
|
16,778 |
|
|
Amortization of intangible assets and other - continuing operations |
|
|
|
18,556 |
|
|
4,376 |
|
|
4,575 |
|
|
4,405 |
|
|
5,200 |
|
|
Foreign currency (gain) loss and other expenses- continuing operations |
|
|
|
(3,494) |
|
|
(180) |
|
|
33 |
|
|
84 |
|
|
(3,431) |
|
|
Discrete income tax (expense) benefit items, net - continuing operations |
|
|
|
(218,444) |
|
|
(14,549) |
|
|
(218,810) |
|
|
8,017 |
|
|
6,898 |
|
|
Adjusted income tax expense - continuing operations |
|
|
|
126,044 |
|
|
35,355 |
|
|
35,096 |
|
|
26,856 |
|
|
28,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) - continuing operations |
|
|
$ |
(142,889) |
|
$ |
57,739 |
|
$ |
(315,604) |
|
$ |
56,794 |
|
$ |
58,182 |
|
|
Restructuring, integration and other expenses (net of tax) - continuing operations |
|
|
|
103,665 |
|
|
26,927 |
|
|
19,363 |
|
|
27,758 |
|
|
29,616 |
|
|
Goodwill impairment expense (net of tax) - continuing operations |
|
|
|
181,440 |
|
|
- |
|
|
181,440 |
|
|
- |
|
|
- |
|
|
Amortization of intangible assets and other (net of tax) - continuing operations |
|
|
|
73,367 |
|
|
17,360 |
|
|
18,150 |
|
|
17,472 |
|
|
20,385 |
|
|
Foreign currency (gain) loss and other expenses (net of tax) - continuing operations |
|
|
|
(6,268) |
|
|
(379) |
|
|
104 |
|
|
462 |
|
|
(6,455) |
|
|
Discrete income tax expense (benefit) items, net - continuing operations |
|
|
|
218,444 |
|
|
14,549 |
|
|
218,810 |
|
|
(8,017) |
|
|
(6,898) |
|
|
Adjusted income (loss) - continuing operations |
|
|
|
427,759 |
|
|
116,196 |
|
|
122,263 |
|
|
94,469 |
|
|
94,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share - continuing operations |
|
|
$ |
(1.19) |
|
$ |
0.49 |
|
$ |
(2.64) |
|
$ |
0.47 |
|
$ |
0.47 |
|
|
Restructuring, integration and other expenses (net of tax) - continuing operations |
|
|
|
0.86 |
|
|
0.23 |
|
|
0.16 |
|
|
0.23 |
|
|
0.24 |
|
|
Goodwill impairment expense (net of tax) - continuing operations |
|
|
|
1.52 |
|
|
- |
|
|
1.52 |
|
|
- |
|
|
- |
|
|
Amortization of intangible assets and other (net of tax) - continuing operations |
|
|
|
0.61 |
|
|
0.15 |
|
|
0.15 |
|
|
0.14 |
|
|
0.16 |
|
|
Foreign currency (gain) loss and other expenses (net of tax) - continuing operations |
|
|
|
(0.05) |
|
|
- |
|
|
- |
|
|
- |
|
|
(0.05) |
|
|
Discrete income tax expense (benefit) items, net - continuing operations |
|
|
|
1.82 |
|
|
0.12 |
|
|
1.83 |
|
|
(0.07) |
|
|
(0.06) |
|
|
Adjusted diluted EPS - continuing operations |
|
|
|
3.57 |
|
|
0.99 |
|
|
1.02 |
|
|
0.78 |
|
|
0.76 |
|
* May not foot/crossfoot 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/crossfoot 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 table presents reported and organic sales growth rates for the fourth quarter and full year of fiscal 2018 compared to fiscal 2017.
|
|
|
Fourth Quarter Ended |
|
Year Ended |
||||||||||||||
|
|
|
|
|
|
|
Organic |
|
|
|
|
|
|
Organic |
|||||
|
|
|
|
|
|
|
|
Year-Year % |
|
|
|
|
|
|
Year-Year % |
||||
|
|
|
As Reported |
|
Organic |
|
Change in |
|
As Reported |
|
Organic |
|
Change in |
||||||
|
|
|
and Organic |
|
Year-Year |
|
Constant |
|
and Organic |
|
Year-Year |
|
Constant |
||||||
|
|
|
Fiscal 2018 |
|
% Change |
|
Currency |
|
Fiscal 2018 |
|
% Change |
|
Currency |
||||||
|
|
|
(Dollars in millions) |
||||||||||||||||
|
Avnet |
|
$ |
5,059.2 |
|
9.8 |
% |
|
6.7 |
% |
|
$ |
19,036.9 |
|
6.8 |
% |
|
3.6 |
% |
|
Avnet by region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
1,339.2 |
|
0.5 |
% |
|
0.5 |
% |
|
$ |
5,011.4 |
|
(5.8) |
% |
|
(5.8) |
% |
|
EMEA |
|
|
1,779.6 |
|
7.8 |
|
|
0.0 |
|
|
|
6,790.9 |
|
11.5 |
|
|
2.5 |
|
|
Asia |
|
|
1,940.4 |
|
19.6 |
|
|
18.8 |
|
|
|
7,234.6 |
|
12.9 |
|
|
12.7 |
|
|
Avnet by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EC |
|
$ |
4,668.7 |
|
9.6 |
% |
|
6.5 |
% |
|
$ |
17,543.6 |
|
6.5 |
% |
|
3.4 |
% |
|
PF |
|
|
390.5 |
|
13.0 |
|
|
8.6 |
|
|
|
1,493.3 |
|
11.1 |
|
|
6.5 |
|
The following table presents the reconciliation of reported sales to organic sales for the fourth quarter and full year of fiscal 2017.
|
|
|
Fourth Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
Year Ended |
||||||||
|
|
|
As Reported |
|
Sales as |
|
|
|
Organic |
||||
|
|
|
and Organic |
|
Reported |
|
Sales from |
|
Sales |
||||
|
|
|
Fiscal 2017 |
|
Fiscal 2017 |
|
Acquisitions (1) |
|
Fiscal 2017 |
||||
|
|
|
(in millions) |
||||||||||
|
Avnet |
|
$ |
4,606.4 |
|
$ |
17,440.0 |
|
$ |
378.3 |
|
$ |
17,818.3 |
|
Avnet by region |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
1,332.2 |
|
$ |
5,163.9 |
|
$ |
154.4 |
|
$ |
5,318.3 |
|
EMEA |
|
|
1,651.0 |
|
|
5,912.9 |
|
|
178.9 |
|
|
6,091.8 |
|
Asia |
|
|
1,623.2 |
|
|
6,363.2 |
|
|
45.0 |
|
|
6,408.2 |
|
Avnet by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
EC |
|
$ |
4,260.7 |
|
$ |
16,474.1 |
|
$ |
— |
|
$ |
16,474.1 |
|
PF |
|
|
345.7 |
|
|
965.9 |
|
|
378.3 |
|
|
1,344.2 |
|
(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 $2.3 million, $0.5 million and $3.3 million in the fourth quarter of fiscal 2018 for the Americas, EMEA and Asia regions, respectively compared to sales of $61.7 million, $103.8 million and $71.5 million in the fourth quarter of fiscal 2017 for the Americas, EMEA and Asia regions, respectively.
Sales from suppliers lost as a result of supplier channel changes were $36.8 million, $45.1 million and $45.8 million in fiscal 2018 for the Americas, EMEA and Asia regions, respectively compared to sales of $263.2 million, $388.1 million and $328.3 million in fiscal 2017 for the Americas, EMEA and Asia regions, respectively.
Historical Segment Financial Information
|
|
|
|
|
Fiscal Year 2018 |
|||||||||||
|
|
|
|
|
Quarters Ended |
|||||||||||
|
|
|
|
|
Fourth Quarter |
|
Third Quarter |
|
Second Quarter |
|
First Quarter |
|||||
|
|
|
Fiscal Year |
|
June 30, |
|
March 31, |
|
December 30, |
|
September 30, |
|||||
|
|
|
2018* |
|
2018 |
|
2018* |
|
2017 |
|
2017 |
|||||
|
|
|
(in millions) |
|||||||||||||
|
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Components |
|
$ |
17,543.6 |
|
$ |
4,668.7 |
|
$ |
4,404.1 |
|
$ |
4,163.5 |
|
$ |
4,307.2 |
|
Premier Farnell |
|
|
1,493.3 |
|
|
390.5 |
|
|
391.0 |
|
|
358.1 |
|
|
353.7 |
|
Avnet sales |
|
$ |
19,036.9 |
|
$ |
5,059.2 |
|
$ |
4,795.1 |
|
$ |
4,521.6 |
|
$ |
4,660.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Components |
|
$ |
587.3 |
|
$ |
160.1 |
|
$ |
157.7 |
|
$ |
129.9 |
|
$ |
139.6 |
|
Premier Farnell |
|
|
160.8 |
|
|
46.0 |
|
|
44.4 |
|
|
35.6 |
|
|
34.8 |
|
|
|
|
748.1 |
|
|
206.1 |
|
|
202.1 |
|
|
165.5 |
|
|
174.4 |
|
Corporate expenses |
|
|
(99.0) |
|
|
(19.7) |
|
|
(27.2) |
|
|
(19.8) |
|
|
(32.4) |
|
Restructuring, integration and other expenses |
|
|
(145.1) |
|
|
(36.8) |
|
|
(25.1) |
|
|
(36.8) |
|
|
(46.4) |
|
Goodwill impairment expense |
|
|
(181.4) |
|
|
- |
|
|
(181.4) |
|
|
- |
|
|
- |
|
Amortization of acquired intangible assets and other |
|
|
(91.9) |
|
|
(21.7) |
|
|
(22.7) |
|
|
(21.9) |
|
|
(25.6) |
|
Avnet operating income (loss) |
|
$ |
230.5 |
|
$ |
127.9 |
|
$ |
(54.4) |
|
$ |
87.0 |
|
$ |
70.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic area: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
5,011.4 |
|
$ |
1,339.2 |
|
$ |
1,276.4 |
|
$ |
1,210.2 |
|
$ |
1,185.5 |
|
EMEA |
|
|
6,790.9 |
|
|
1,779.6 |
|
|
1,812.3 |
|
|
1,506.0 |
|
|
1,693.0 |
|
Asia |
|
|
7,234.6 |
|
|
1,940.4 |
|
|
1,706.3 |
|
|
1,805.4 |
|
|
1,782.4 |
|
Avnet sales |
|
$ |
19,036.9 |
|
$ |
5,059.2 |
|
$ |
4,795.1 |
|
$ |
4,521.6 |
|
$ |
4,661.0 |
* May not foot/crossfoot due to rounding
|
|
|
|
|
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 first quarter of fiscal 2019.
|
|
|
Low End of |
|
High End of |
|
||
|
|
|
Guidance Range |
|
Guidance Range |
|
||
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share guidance |
|
$ |
0.95 |
|
$ |
1.05 |
|
|
Restructuring, integration and other expense (net of tax) (1) |
|
|
(0.22) |
|
|
(0.14) |
|
|
Amortization of intangibles and other (net of tax) |
|
|
(0.16) |
|
|
(0.15) |
|
|
Income tax expense adjustments |
|
|
(0.04) |
|
|
0.04 |
|
|
GAAP diluted earnings per share guidance |
|
$ |
0.53 |
|
$ |
0.80 |
|
|
(1) |
Includes accelerated depreciation. |