Third quarter sales of $6.5 billion, up 32%
year over year and 11% sequentially
Diluted EPS of $1.84 and adjusted diluted EPS
of $2.15
Electronic Components and Farnell operating
margins increased to 4.4% and 14.9%, respectively
Avnet, Inc. (Nasdaq: AVT) today announced results for its third
quarter ended April 2, 2022.
Commenting on the Company’s financial results, Avnet Chief
Executive Officer Phil Gallagher stated, “We are pleased to report
another strong quarter of sales and operating margin growth.
Farnell achieved record operating margin as our continued
investments in inventory breadth and e-commerce capabilities
continue to pay off. Supported by increased sales, the Americas
expanded operating margins for the fifth consecutive quarter.
Growing demand for supply chain orchestration is driving strong
financial performance across our global business. Looking ahead to
the fourth quarter, amid the backdrop of geopolitical uncertainty,
we continue to anticipate a favorable demand environment and expect
to sustain strong margins from our recently implemented operating
improvements.”
Fiscal Third Quarter Key Financial Highlights:
- Sales of $6.5 billion, up from $5.9 billion sequentially and
$4.9 billion in the prior year quarter.
- On a constant currency basis, sales grew 35.7% year over year
and 11.4% sequentially.
- GAAP diluted earnings per share of $1.84, compared with $1.07
in the prior year quarter.
- Non-GAAP adjusted diluted earnings per share of $2.15, compared
with $0.74 in the prior year quarter.
- Farnell operating margins increased 123 basis points
sequentially to 14.9%.
- Electronic Components operating margins increased 92 basis
points sequentially to 4.4%, supported by growth in EMEA and the
Americas and better than expected results in Asia.
- Returned $25.6 million to shareholders in dividends, with the
dividend payout increasing 23.8% year over year.
Key Financial Metrics
($ in millions, except per share data)
Third Quarter Results (GAAP)
Mar – 22
Mar – 21
Change Y/Y
Dec – 21
Change Q/Q
Sales
$
6,488.1
$
4,916.7
32.0
%
$
5,865.2
10.6
%
Operating Income
274.4
87.7
213.0
%
211.7
29.6
%
Operating Income Margin
4.2
%
1.8
%
245
bps
3.6
%
62
bps
Diluted Earnings Per Share (EPS)
$
1.84
$
1.07
72.0
%
$
1.50
22.7
%
Third Quarter Results
(Non-GAAP)(1)
Mar – 22
Mar – 21
Change Y/Y
Dec – 21
Change Q/Q
Sales
$
6,488.1
$
4,916.7
32.0
%
$
5,865.2
10.6
%
Adjusted Operating Income
303.7
110.5
174.8
%
215.5
41.0
%
Adjusted Operating Income Margin
4.7
%
2.3
%
243
bps
3.7
%
101
bps
Adjusted Diluted Earnings Per Share
(EPS)
$
2.15
$
0.74
190.5
%
$
1.51
42.4
%
Segment and Geographical Mix
Mar – 22
Mar – 21
Change Y/Y
Dec – 21
Change Q/Q
Electronic Components (EC) Sales
$
6,019.1
$
4,520.6
33.2
%
$
5,424.3
11.0
%
EC Operating Income Margin
4.4
%
2.6
%
178
bps
3.5
%
92
bps
Farnell Sales
$
469.0
$
396.1
18.4
%
$
440.9
6.4
%
Farnell Operating Income Margin
14.9
%
6.0
%
886
bps
13.7
%
123
bps
Americas Sales
$
1,627.2
$
1,161.0
40.2
%
$
1,391.5
16.9
%
EMEA Sales
2,185.7
1,585.6
37.9
%
1,840.8
18.7
%
Asia Sales
2,675.2
2,170.1
23.3
%
2,632.9
1.6
%
_________________________
(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.
Outlook for the Fourth Quarter of
Fiscal 2022 Ending on July 2, 2022
Guidance Range
Midpoint
Sales
$6.0B – $6.4B
$6.2B
Adjusted Diluted EPS(1)
$1.90 – $2.00
$1.95
_________________________
(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 is based upon current market conditions and
inventory availability, the current state of COVID restrictions and
geopolitical events. The above guidance excludes amortization of
intangibles, the possibility of increased COVID restrictions, any
additional expense associated with the Russian-Ukraine conflict and
certain income tax adjustments. The above guidance assumes an
effective tax rate of between 21% and 25%. The above guidance
assumes 99 million average diluted shares outstanding and currency
exchange rates versus the U.S. Dollar as shown in the table
below:
Q4 Fiscal
2022
Q3 Fiscal
Q4 Fiscal
Guidance
2022
2021
Euro
$1.08
$1.12
$1.20
GBP
$1.30
$1.34
$1.40
Today’s Conference Call and Webcast Details
Avnet will host a quarterly webcast and teleconference today at
1:30 p.m. PT and 4:30 p.m. ET to discuss its financial results and
provide a corporate update. The webcast can be accessed via Avnet’s
Investor Relations web page at: https://ir.avnet.com.
Those who would still like to participate in the live call can
dial 877-407-8112 or 201-689-8840. A replay of the conference call
will be available for 90 days, through July 26, 2022 at 5:00 p.m.
ET, and can be accessed by dialing: 877-660-6853 or 201-612-7415
and using Conference ID: 13726985.
Forward-Looking Statements
This document contains 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,
with respect to the financial condition, results of operations and
business of the Company. You can find many of these statements by
looking for words like “believes,” “projected”, “plans,” “expects,”
“anticipates,” “should,” “will,” “may,” “estimates” or similar
expressions. These forward-looking statements are subject to
numerous assumptions, risks and uncertainties. The following
important factors, in addition to those discussed elsewhere in the
Company’s Annual Report on Form 10-K for the fiscal year ended July
3, 2021 and subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, could affect the Company’s future results of
operations, and could cause those results or other outcomes to
differ materially from those expressed or implied in the
forward-looking statements: geopolitical events and military
conflicts; pandemics and other health-related crises, including
COVID-19; competitive pressures among distributors of electronic
components; an industry down-cycle in semiconductors; relationships
with key suppliers and allocations of products by suppliers; risks
relating to the Company’s international sales and operations,
including risks relating to the ability to repatriate cash, foreign
currency fluctuations, inflation, duties and taxes, and compliance
with international and U.S. laws; risks relating to acquisitions,
divestitures and investments; adverse effects on the Company’s
supply chain, operations of its distribution centers, shipping
costs, third-party service providers, customers and suppliers,
including as a result of issues caused by military conflicts,
natural and weather-related disasters, pandemics and health related
crisis, warehouse modernization and relocation efforts; risks
related to cyber-attacks, other privacy and security incidents and
information systems failures, including related to current or
future implementations, integrations or upgrades; general economic
and business conditions (domestic, foreign and global) affecting
the Company’s operations and financial performance and, indirectly,
the Company’s credit ratings, debt covenant compliance, liquidity
and access to financing; constraints on employee retention and
hiring; and legislative or regulatory changes affecting the
Company’s businesses.
Any forward-looking statement speaks only as of the date on
which that statement is made. Except as required by law, the
Company assumes no obligation to update any forward-looking
statement to reflect events or circumstances that occur after the
date on which the statement is made.
About Avnet
As a leading global technology distributor and solutions
provider, Avnet has served customers’ evolving needs for an entire
century. We support customers at each stage of a product’s
lifecycle, from idea to design and from prototype to production.
Our unique position at the center of the technology value chain
enables us to accelerate the design and supply stages of product
development so customers can realize revenue faster. Decade after
decade, Avnet helps its customers and suppliers around the world
realize the transformative possibilities of technology. Learn more
about Avnet at www.avnet.com. (AVT_IR)
AVNET, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
Third Quarters Ended
Nine Months Ended
April 2,
April 3,
April 2,
April 3,
2022
2021
2022
2021
(Thousands, except per share
data)
Sales
$
6,488,143
$
4,916,714
$
17,938,055
$
14,307,945
Cost of sales
5,675,110
4,348,364
15,752,295
12,712,262
Gross profit
813,033
568,350
2,185,760
1,595,683
Selling, general and administrative
expenses
512,364
463,092
1,499,904
1,376,333
Russian-Ukraine conflict related
expenses
26,261
—
26,261
—
Restructuring, integration and other
expenses
—
17,574
5,272
55,943
Operating income
274,408
87,684
654,323
163,407
Other (expense) income, net
(469
)
4,779
858
(16,052
)
Interest and other financing expenses,
net
(25,914
)
(22,342
)
(70,388
)
(66,128
)
Income before taxes
248,025
70,121
584,793
81,227
Income tax expense (benefit)
64,608
(37,363
)
139,237
(26,532
)
Net income
$
183,417
$
107,484
$
445,556
$
107,759
Earnings per share:
Basic
$
1.86
$
1.08
$
4.50
$
1.09
Diluted
$
1.84
$
1.07
$
4.44
$
1.08
Shares used to compute earnings per
share:
Basic
98,659
99,542
99,113
99,125
Diluted
99,486
100,247
100,296
100,013
Cash dividends paid per common share
$
0.26
$
0.21
$
0.74
$
0.63
AVNET, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
April 2,
July 3,
2022
2021
(Thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
199,457
$
199,691
Receivables
4,164,573
3,576,130
Inventories
3,680,821
3,236,837
Prepaid and other current assets
172,792
150,763
Total current assets
8,217,643
7,163,421
Property, plant and equipment, net
323,420
368,452
Goodwill
805,384
838,105
Intangible assets, net
15,975
28,539
Operating lease assets
245,149
265,988
Other assets
174,102
260,917
Total assets
$
9,781,673
$
8,925,422
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Short-term debt
$
424,182
$
23,078
Accounts payable
2,968,845
2,401,357
Accrued expenses and other
616,079
572,457
Short-term operating lease liabilities
56,682
58,346
Total current liabilities
4,065,788
3,055,238
Long-term debt
922,041
1,191,329
Long-term operating lease liabilities
216,609
239,838
Other liabilities
320,515
354,833
Total liabilities
5,524,953
4,841,238
Shareholders’ equity
4,256,720
4,084,184
Total liabilities and shareholders’
equity
$
9,781,673
$
8,925,422
AVNET, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
Nine Months Ended
April 2, 2022
April 3, 2021
(Thousands)
Cash flows from operating activities:
Net income
$
445,556
$
107,759
Non-cash and other reconciling items:
Depreciation
65,719
67,462
Amortization
12,034
35,730
Amortization of operating lease assets
40,298
42,054
Deferred income taxes
1,423
11,510
Stock-based compensation
28,638
22,293
Impairments
—
15,166
Other, net
47,667
7,558
Changes in (net of effects from businesses
acquired and divested):
Receivables
(880,957
)
(405,700
)
Inventories
(549,999
)
63,017
Accounts payable
628,822
224,151
Accrued expenses and other, net
141,381
6,526
Net cash flows (used) provided by
operating activities
(19,418
)
197,526
Cash flows from financing activities:
Borrowings under accounts receivable
securitization, net
57,400
—
Repayments under senior unsecured credit
facility, net
—
(232,347
)
Borrowings (repayments) under bank credit
facilities and other debt, net
117,982
(2,192
)
Repurchases of common stock
(88,952
)
—
Dividends paid on common stock
(73,253
)
(62,400
)
Other, net
(16,853
)
(11,455
)
Net cash flows used for financing
activities
(3,676
)
(308,394
)
Cash flows from investing activities:
Purchases of property, plant and
equipment
(33,679
)
(39,001
)
Acquisitions of assets and businesses
—
(18,371
)
Proceeds from liquidation of Company owned
life insurance policies
84,343
—
Other, net
724
6,201
Net cash flows provided (used) for
investing activities
51,388
(51,171
)
Effect of currency exchange rate changes
on cash and cash equivalents
(28,528
)
7,750
Cash and cash equivalents:
— decrease
(234
)
(154,289
)
— at beginning of period
199,691
477,038
— at end of period
$
199,457
$
322,749
Non-GAAP Financial
Information
In addition to disclosing financial results that are determined
in accordance with generally accepted accounting principles in the
United States (“GAAP”), the Company also discloses certain non-GAAP
financial information including (i) adjusted operating income, (ii)
adjusted operating expenses, (iii) adjusted other income (expense),
(iv) adjusted income before income taxes, (v) adjusted income tax
expense (benefit), (vi) adjusted diluted earnings per share, and
(vii) sales adjusted for the impact of significant 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
“constant currency.” Management believes organic sales and sales in
constant currency are useful measures for evaluating current period
performance as compared with prior periods and for understanding
underlying trends. In order to determine the translation impact of
changes in foreign currency exchange rates on sales, income or
expense items for subsidiaries reporting in currencies other than
the U.S. Dollar, the Company adjusts the average exchange rates
used in current periods to be consistent with the average exchange
rates in effect during the comparative period.
Management believes that operating income and operating expenses
adjusted for restructuring, integration and other expenses,
Russian-Ukraine conflict related expenses, goodwill and intangible
asset impairment expenses and amortization of acquired intangible
assets and other, are useful measures to help investors better
assess and understand the Company’s operating performance. This is
especially the case when comparing results with previous periods or
forecasting performance for future periods, primarily because
management views the excluded items to be outside of Avnet’s normal
operating results or non-cash in nature. Management analyzes
operating income and operating expenses without the impact of these
items as 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 most cases, for
measuring performance for compensation purposes. Management
measures operating income for its reportable segments excluding
restructuring, integration and other expenses, Russian-Ukraine
conflict related expenses, goodwill and intangible asset impairment
expenses 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 (benefit), net
income and diluted earnings (loss) per share adjusted for the
impact of the items described above and certain items impacting
other income (expense) and income tax expense (benefit) 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.
Adjustments to income tax expense (benefit) and the effective
income tax rate include the effect of changes in tax laws, certain
changes in valuation allowances and unrecognized tax benefits,
income tax audit settlements and adjustments to the adjusted
interim effective tax rate based upon the expected annual adjusted
effective tax rate. Additionally, because of management’s focus on
generating shareholder value, of which net profitability is a
primary driver, management believes net income (loss) and diluted
earnings (loss) per share 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
April 2,
January 1,
October 2,
2022*
2022*
2022*
2021*
($ in thousands, except per
share amounts)
GAAP selling, general and administrative
expenses
$
1,499,904
$
512,364
$
501,363
486,178
Amortization of intangible assets and
other
(12,109
)
(3,074
)
(3,796
)
(5,239
)
Adjusted operating expenses
1,487,795
509,290
497,567
480,939
GAAP operating income
$
654,323
$
274,408
$
211,672
168,243
Restructuring, integration and other
expenses
5,272
-
-
5,272
Russian-Ukraine conflict related
expenses
26,261
26,261
-
-
Amortization of intangible assets and
other
12,109
3,074
3,796
5,239
Adjusted operating income
697,965
303,743
215,468
178,754
GAAP income before income taxes
$
584,793
$
248,025
$
191,779
144,990
Restructuring, integration and other
expenses
5,272
-
-
5,272
Russian-Ukraine conflict related
expenses
26,261
26,261
-
-
Amortization of intangible assets and
other
12,109
3,074
3,796
5,239
Other expenses
441
-
-
441
Adjusted income before income taxes
628,876
277,360
195,575
155,942
GAAP income tax expense
$
139,237
$
64,608
$
40,958
33,672
Restructuring, integration and other
expenses
1,012
-
-
1,012
Russian-Ukraine conflict related
expenses
6,836
6,836
-
-
Amortization of intangible assets and
other
2,369
667
704
998
Other expenses
136
-
-
136
Income tax (expense) benefit items,
net
(8,766
)
(8,613
)
2,917
(3,070
)
Adjusted income tax expense
140,824
63,498
44,579
32,748
GAAP net income
$
445,556
$
183,417
$
150,821
111,318
Restructuring, integration and other
expenses (net of tax)
4,260
-
-
4,260
Russian-Ukraine conflict related expenses
(net of tax)
19,425
19,425
-
-
Amortization of intangible assets and
other (net of tax)
9,740
2,407
3,092
4,241
Other expenses (net of tax)
305
-
-
305
Income tax expense (benefit) items,
net
8,766
8,613
(2,917
)
3,070
Adjusted net income
488,052
213,862
150,996
123,194
GAAP diluted earnings per share
$
4.44
$
1.84
$
1.50
1.10
Restructuring, integration and other
expenses (net of tax)
0.04
-
-
0.04
Russian-Ukraine conflict related expenses
(net of tax)
0.19
0.20
-
-
Amortization of intangible assets and
other (net of tax)
0.10
0.02
0.03
0.04
Other expenses (net of tax)
0.00
-
-
0.00
Income tax expense (benefit) items,
net
0.09
0.09
(0.03
)
0.03
Adjusted diluted EPS
4.87
2.15
1.51
1.22
_________________
* May not foot/cross foot due to rounding.
Quarters Ended
Fiscal Year
July 3,
April 3,
January 2,
October 3,
2021*
2021
2021
2021
2020
($ in thousands, except per
share amounts)
GAAP selling, general and administrative
expenses
$
1,874,831
$
498,497
$
463,092
$
442,084
$
471,158
Amortization of intangible assets and
other
(41,245
)
(5,370
)
(5,283
)
(10,417
)
(20,175
)
Adjusted operating expenses
1,833,586
493,127
457,809
431,667
450,983
GAAP operating income
$
281,408
$
118,001
$
87,684
$
57,221
$
18,502
Restructuring, integration and other
expenses
84,391
28,449
17,574
11,948
26,420
Amortization of intangible assets and
other
41,245
5,370
5,283
10,417
20,175
Adjusted operating income
407,044
151,820
110,541
79,586
65,097
GAAP income (loss) before income taxes
$
172,929
$
91,701
$
70,121
$
34,403
$
(23,297
)
Restructuring, integration and other
expenses
84,391
28,449
17,574
11,948
26,420
Amortization of intangible assets and
other
41,245
5,370
5,283
10,417
20,175
Other expenses - equity investment
impairments and other
20,413
5,139
-
51
15,223
Adjusted income before income taxes
318,978
130,659
92,978
56,819
38,521
GAAP income tax expense (benefit)
$
(20,185
)
$
6,346
$
(37,363
)
$
15,240
$
(4,408
)
Restructuring, integration and other
expenses
17,468
6,172
4,118
2,577
4,601
Amortization of intangible assets and
other
9,099
1,025
1,008
2,037
5,029
Other expenses - equity investment
impairments and other
90
38
-
26
26
Income tax benefit (expense) items,
net
41,275
4,091
50,682
(10,788
)
(2,710
)
Adjusted income tax expense
47,747
17,672
18,445
9,092
2,538
GAAP net income (loss)
$
193,114
$
85,355
$
107,484
$
19,163
$
(18,889
)
Restructuring, integration and other
expenses (net of tax)
66,923
22,277
13,456
9,371
21,819
Amortization of intangible assets and
other (net of tax)
32,146
4,345
4,275
8,380
15,146
Other expenses - equity investment
impairments and other (net of tax)
20,323
5,101
-
25
15,197
Income tax (benefit) expense items,
net
(41,275
)
(4,091
)
(50,682
)
10,788
2,710
Adjusted net income
271,231
112,987
74,533
47,727
35,983
GAAP diluted earnings (loss) per share
$
1.93
$
0.85
$
1.07
$
0.19
$
(0.19
)
Restructuring, integration and other
expenses (net of tax)
0.67
0.22
0.13
0.09
0.22
Amortization of intangible assets and
other (net of tax)
0.32
0.04
0.04
0.09
0.15
Other expenses - equity investment
impairments and other (net of tax)
0.20
0.05
-
0.00
0.15
Income tax (benefit) expense items,
net
(0.41
)
(0.04
)
(0.50
)
0.11
0.03
Adjusted diluted EPS
2.71
1.12
0.74
0.48
0.36
_________________
* May not foot/cross foot due to rounding and differences in
average diluted shares between quarterly periods compared to the
fiscal year to date.
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 periods (if necessary) 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. Additionally,
fiscal 2021 sales are adjusted for the estimated impact of the
extra week of sales in the first quarter of fiscal 2021 due to the
14-week fiscal first quarter and the 53-week fiscal year. Organic
sales in constant currency is defined as organic sales (as defined
above) excluding the impact of changes in foreign currency exchange
rates.
As a result of declining sales due to the termination of the TI
distribution agreement in December 2020, organic sales growth rates
have also been adjusted to exclude sales of TI products.
Reported sales were the same as organic sales for the third
quarter and first nine months of fiscal 2022. The following table
presents the reconciliation of reported sales to organic sales for
the third quarter and first nine months of fiscal 2021.
Quarter Ended
Nine Months Ended
Sales
Organic
Estimated
Organic
As Reported
Sales
Sales
Extra
Organic
Sales
and Organic
TI Sales
Adj for TI
As Reported
Week in
Sales
TI Sales
Adj for TI
Q3-Fiscal
Q3-Fiscal
Q3-Fiscal
Q3-Fiscal
Fiscal
Q3-Fiscal
Q3-Fiscal
Q3-Fiscal
2021
2021(1)
2021(1)
2021
2021(2)
2021
2021(1)
2021(1)
(in millions)
Avnet
$
4,916.7
$
1.7
$
4,915.0
$
14,307.9
$
306.0
$
14,001.9
$
292.2
$
13,709.7
Avnet by region
Americas
$
1,161.0
$
0.4
$
1,160.6
$
3,468.1
$
77.0
$
3,391.1
$
82.9
$
3,308.2
EMEA
1,585.6
0.5
1,585.1
4,412.6
97.0
4,315.6
124.2
4,191.4
Asia
2,170.1
0.8
2,169.3
6,427.2
132.0
6,295.2
85.1
6,210.1
Avnet by segment
EC
$
4,520.6
$
1.7
$
4,518.9
$
13,245.1
$
284.0
$
12,961.1
$
292.2
$
12,668.9
Farnell
396.1
—
396.1
1,062.8
22.0
1,040.8
—
1,040.8
_________________
(1)
Sales adjusted for the impact of the
termination of the TI distribution contract.
(2)
The impact of the additional week of sales
in the first quarter of fiscal 2021 is estimated.
The following table presents reported and organic sales growth
rates for the third quarter and first nine months of fiscal 2022
compared to fiscal 2021.
Quarter Ended
Nine Months Ended
Organic
Organic
Sales
Sales
Sales
Organic
Sales
As Reported
Adj for TI
As Reported
Sales
Adj for TI
Sales
Year-Year %
Year-Year %
Sales
Year-Year %
Organic
Year-Year %
Year-Year %
As Reported
Change in
Change in
As Reported
Change in
Sales
Change in
Change in
Year-Year
Constant
Constant
Year-Year
Constant
Year-Year
Constant
Constant
% Change
Currency
Currency(1)
% Change
Currency
% Change
Currency
Currency(1)
Avnet
32.0
%
35.7
%
35.7
%
25.4
%
26.9
%
28.1
%
29.6
%
32.4
%
Avnet by region
Americas
40.2
%
40.2
%
40.2
%
23.3
%
23.3
%
26.1
%
26.1
%
29.3
%
EMEA
37.9
47.6
47.7
30.9
35.0
33.8
38.0
42.1
Asia
23.3
24.5
24.5
22.7
23.3
25.3
25.9
27.6
Avnet by segment
EC
33.2
%
36.9
%
36.9
%
25.1
%
26.7
%
27.9
%
29.5
%
32.5
%
Farnell
18.4
21.8
21.8
28.4
28.6
31.2
31.3
31.3
________________
(1)
Sales growth rates excluding the impact of
the termination of the TI distribution agreement.
Historical Segment Financial
Information
Fiscal 2022
Quarters Ended
Fiscal
Third Quarter
Second Quarter
First Quarter
Year to Date
April 2,
January 1,
October 2,
2022*
2022*
2022
2021
(in millions)
Sales:
Electronic Components
$
16,572.9
$
6,019.1
$
5,424.3
$
5,129.5
Farnell
1,365.1
469.0
440.9
455.2
Avnet sales
$
17,938.1
$
6,488.1
$
5,865.2
$
5,584.7
Operating income:
Electronic Components
$
616.4
$
265.0
$
188.9
$
162.4
Farnell
179.6
69.8
60.2
49.6
796.0
334.8
249.1
212.0
Corporate expenses
(98.0
)
(31.1
)
(33.6
)
(33.3
)
Restructuring, integration and other
expenses
(5.3
)
-
-
(5.3
)
Russian-Ukraine conflict related
expenses
(26.3
)
(26.3
)
-
-
Amortization of acquired intangible assets
and other
(12.1
)
(3.1
)
(3.8
)
(5.2
)
Avnet operating income
$
654.3
$
274.4
$
211.7
$
168.2
Sales by geographic area:
Americas
$
4,277.6
$
1,627.2
$
1,391.5
$
1,258.8
EMEA
5,774.1
2,185.7
1,840.8
1,747.6
Asia
7,886.4
2,675.2
2,632.9
2,578.3
Avnet sales
$
17,938.1
$
6,488.1
$
5,865.2
$
5,584.7
____________
* May not foot/cross foot due to rounding.
Fiscal Year 2021
Quarters Ended
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fiscal Year
July 3,
April 3,
January 2,
October 3,
2021*
2021
2021
2021
2020
(in millions)
Sales:
Electronic Components
$
18,030.5
$
4,785.3
$
4,520.6
$
4,342.4
$
4,382.2
Farnell
1,504.2
441.4
396.1
325.8
340.9
Avnet
$
19,534.7
$
5,226.7
$
4,916.7
$
4,668.2
$
4,723.1
Operating income:
Electronic Components
$
454.8
$
147.8
$
118.6
$
103.9
$
84.4
Farnell
86.9
36.5
23.9
14.6
12.0
541.7
184.3
142.5
118.5
96.4
Corporate expenses
(134.7
)
(32.5
)
(31.9
)
(39.0
)
(31.3
)
Restructuring, integration and other
expenses
(84.4
)
(28.4
)
(17.6
)
(11.9
)
(26.4
)
Amortization of acquired intangible assets
and other
(41.2
)
(5.4
)
(5.3
)
(10.4
)
(20.2
)
Avnet operating income
$
281.4
$
118.0
$
87.7
$
57.2
$
18.5
Sales by geographic area:
Americas
$
4,662.5
$
1,194.4
$
1,161.0
$
1,101.5
$
1,205.7
EMEA
6,149.9
1,737.3
1,585.6
1,346.3
1,480.7
Asia
8,722.3
2,295.0
2,170.1
2,220.4
2,036.7
Avnet
$
19,534.7
$
5,226.7
$
4,916.7
$
4,668.2
$
4,723.1
_____________
* May not foot/cross foot due to rounding.
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 fourth quarter of
fiscal 2022.
Low End of
High End of
Guidance Range
Guidance Range
Adjusted diluted earnings per share
guidance
$
1.90
$
2.00
Amortization of intangibles and other (net
of tax)
(0.02
)
(0.03
)
Income tax expense adjustments
0.45
0.35
GAAP diluted earnings per share
guidance
$
2.33
$
2.32
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220427005728/en/
Investor Relations Contacts Joe Burke, 480-643-7431
Joseph.Burke@avnet.com
Media Relations Contact Jeanne Forbis, 480-643-7499
Jeanne.Forbis@Avnet.com
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