Arrow Electronics Posts First Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--April 25, 2002 Arrow Electronics Arrow Electronics NYSE: ARW is a Fortune 500 company headquartered in Melville, New York. This company specializes in products and services of electronic components and computer products. , Inc. (NYSE NYSE See: New York Stock Exchange :ARW ARW Air Refueling Wing ARW Advanced Research Workshop ARW Associated Resume Writers ARW Army Ranger Wing (Irish Special Forces) ARW American Revolutionary War ARW Angle Random Walk ARW Aeroelastic Research Wing ) today reported first quarter net income of $2.8 million ($.03 per share) on sales of $1.95 billion, compared with net income of $71.7 million ($.68 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis) on sales of $3.28 billion in the first quarter of 2001. Excluding the integration charge of $9.4 million ($5.7 million after taxes) recorded in the first quarter of last year associated with the acquisition and integration of Wyle WYLE is a commercial television station in Florence, Alabama, broadcasting locally on channel 26 as an affiliate of Jewelry TV. Founded April 19, 1986, the station is owned by ETC Communications Inc. WYLE has been silent since February 8, 2007 due to financial difficulties. Electronics, net income and net income per share on a basic and diluted basis were $77.4 million, $.79, and $.74, respectively. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with recent changes to generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , the company's results no longer reflect the amortization of goodwill. If last year's results were restated to reflect the elimination of goodwill amortization, earnings would have increased by approximately $.11 per share. "We remained modestly profitable in a very difficult market," stated Francis Francis, French prince, duke of Alençon and Anjou Francis, 1554–84, French prince, duke of Alençon and Anjou; youngest son of King Henry II of France and Catherine de' Medici. M. Scricco, President and Chief Executive Officer of Arrow, "and we continued to manage our balance sheet well, generating over $255 million in free cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in the first quarter. Over the last 12 months free cash flow totaled nearly $1.8 billion." Worldwide components revenue decreased by 4% sequentially to $1.35 billion. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , components revenue was down 9% to $654 million. Sales of the units serving core OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers in North America were virtually flat with both the third and fourth quarters of last year. Sales of the unit that serves contract manufacturers were up 3% versus the fourth quarter, the first sequential One after the other in some consecutive order such as by name or number. increase in a year. Lastly, while sales to telecom/networking customers continued to decline, the rate of sequential decline slowed considerably. Total European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales of $626 million were essentially flat with the fourth quarter. The company noted that components sales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
adjusted for foreign exchange, were up 11% over the fourth quarter.
Sales in the Asia/Pacific region of $166 million were down 13% from the
December December: see month. quarter.
Worldwide computer products sales totaled $603 million. Despite an expected decline of 18% in the company's mid-range
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. as a percentage of sales amounted to a healthy 2.1%. "Our team did a good job in a difficult quarter," said Mr. Scricco, "and our financial measures, such as gross profit, operating income, and return on working capital, reflect that. We are selling our value, and getting paid for it." "Structurally, we are well positioned to support higher volume levels. It is inevitable that volume will increase -- it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have just a question of how much and how soon. If historical cycles are a guide, we'd we'd 1. Contraction of we had. 2. Contraction of we should. 3. Contraction of we would. we'd have ~would expect to see a gradual pick-up pick-up Noun 1. a small truck with an open body used for light deliveries 2. Informal a casual acquaintance made for a sexual purpose 3. Informal a. over the next couple of quarters, accelerating in Q4 and early 2003," he concluded. Arrow Electronics is one of the world's largest distributors of electronic components and computer products and a leading provider of services to the electronics industry. Headquartered in Melville, New York Melville is a hamlet and census-designated place in the town of Huntington in Suffolk County on Long Island, New York, in the United States. As of the 2000 census, 14,533 people resided there. , Arrow serves as a supply channel partner for more than 600 suppliers and over 175,000 original equipment manufacturers, contract manufacturers, and commercial customers through more than 200 sales facilities and 23 distribution centers in 40 countries. Detailed information about Arrow's operations can be found at www.arrow.com. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . This press release contains forward-looking statements that are subject to certain risks and uncertainties which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but are not limited to: industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the computer and electronic components markets, changes in relationships with key suppliers and the other risks described from time to time in the company's reports to the Securities and Exchange Commission (including the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. ). Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any forward-looking statements.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three Months Ended
March 31,
---------------------------
2002 2001(A)
---- -------
Sales $1,952,240 $3,275,747
---------- ----------
Costs and expenses:
Cost of products sold 1,631,870 2,727,465
Selling, general and
administrative expenses 256,994 326,463
Depreciation and amortization 17,671 28,584
Integration charge - 9,375
---------- ----------
1,906,535 3,091,887
Operating income 45,705 183,860
Equity in earnings (loss)
of affiliated companies 153 (396)
Interest expense 41,164 65,907
---------- ----------
Earnings before income taxes
and minority interest 4,694 117,557
Provision for income taxes 1,784 45,847
---------- ----------
Earnings before minority interest 2,910 71,710
Minority interest 126 31
---------- ----------
Net income $ 2,784 $ 71,679
========== ==========
Net income per share:
Basic $.03 $.73
==== ====
Diluted $.03 $.68
==== ====
Average number of shares outstanding:
Basic 99,535 97,888
======= =======
Diluted 101,266 107,491
======= =======
(A) Excluding the integration charge of $9.4 million, net income and
net income per share on a basic and diluted basis were $77.4
million, $.79, and $.74, respectively, for the three months ended
March 31, 2001.
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, December 31,
2002 2001
---------- ------------
Assets
Current assets:
Cash and short-term investments $ 809,506 $ 556,861
Accounts receivable, net 1,426,104 1,458,553
Inventories 1,290,933 1,403,075
Other 58,054 52,897
---------- ----------
Total current assets 3,584,597 3,471,386
Property, plant and equipment, net 293,453 304,374
Investments in affiliated companies 35,479 32,917
Cost in excess of net assets of
companies acquired, net of amortization 1,217,975 1,224,283
Other assets 347,194 326,024
---------- ----------
$5,478,698 $5,358,984
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 787,534 $ 665,363
Accrued expenses 330,626 344,333
Short-term borrowings 22,151 37,289
---------- ----------
Total current liabilities 1,140,311 1,046,985
Long-term debt 2,460,970 2,441,983
Other 101,915 103,555
Shareholders' equity 1,775,502 1,766,461
---------- ----------
$5,478,698 $5,358,984
This interim report is subject to independent audit at year-end.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
Three Months Ended
March 31,
---------------------------
2002 2001(A)
---- -------
Sales:
Components $1,349,267 $2,487,773
Computer products 602,973 787,974
---------- ----------
Consolidated $1,952,240 $3,275,747
========== ==========
Operating income:
Components $ 50,068 $ 215,044
Computer products 12,868 7,926
Corporate (17,231) (39,110)
---------- ----------
Consolidated $ 45,705 $ 183,860
========== ==========
(A) Excluding the integration charge of $9.4 million, operating income
was $193.2 million for the three months ended March 31, 2001.
This interim report is subject to independent audit at year-end.
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