Arrow Electronics Third-Quarter Earnings Exceed Expectations.-- Non-GAAP Earnings Per Share of $0.37 -- -- 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 Excess of $110 Million -- MELVILLE, N.Y. -- 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 third-quarter 2009 net income of $12.6 million ($.10 per share on both a basic and 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 $3.67 billion, compared with net income of $76.1 million ($.64 and $.63 per share on a basic and diluted basis, respectively) on sales of $4.30 billion in the third quarter of 2008. The company's results for the third quarters of 2009 and 2008 include a number of items outlined below that impact their comparability. A complete reconciliation of these items is provided under the heading "Certain Non-GAAP Financial Information." Excluding those items, on a non-GAAP basis, net income for the quarter ended October October: see month. 3, 2009, would have been $44.9 million ($.37 per share on both a basic and diluted basis) and net income for the quarter ended September September: see month. 30, 2008, would have been $83.7 million ($.70 per share on both a basic and diluted basis). "Our execution this quarter was excellent, exceeding our expectations for revenue, earnings per share, and cash flow. We continue to control well those things that we can, no matter the economic environment," said Michael J. Long, chief executive officer. "We continued to deliver on our commitment to simplify the business while remaining focused on our long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. to maximize sales and profitable market share growth." Global components sales of $2.54 billion decreased 15 percent year over year. "Global components revenue exceeded our expectations with double-digit increases sequentially across all geographies. Year-over-year sales declines have begun to moderate in both 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. and Europe, and Asia continues to post sales gains. We are well positioned to take advantage of opportunities in the marketplace and will continue to grow profits and gain market share across this business," Mr. Long said. Global enterprise computing Refers to information technology in the larger company. See enterprise data and enterprise networking. solutions ("ECS See eComStation. ") sales of $1.13 billion decreased 14 percent year over year. "ECS sales were ahead of the midpoint mid·point n. 1. Mathematics The point of a line segment or curvilinear arc that divides it into two parts of the same length. 2. A position midway between two extremes. of our expectations and above normal seasonality, fueled by a strong federal government year-end, as well as sequential increases in storage and services. In our worldwide server business the year-over-year declines have moderated," Mr. Long said. The company's results for the third quarter of 2009 and 2008 include the items outlined below that impact their comparability: * During the third quarter of 2009, the company recorded restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and integration charges of $37.6 million ($29.1 million net of related taxes or $.24 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies. These charges are part of the company's cost reduction initiatives announced in the fourth quarter of 2008 and second quarter of 2009, which are expected to be $275 million in permanent and temporary annual savings. * During the third quarter of 2009, the company recorded a loss on prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of debt of $5.3 million ($3.2 million net of related taxes or $.03 per share on both a basic and diluted basis) related to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $130.5 million principal amount of its 9.15% senior notes due 2010. * During the third quarter of 2008, the company recorded restructuring and integration charges of $11.0 million ($7.6 million net of related taxes or $.06 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies. NINE-MONTH RESULTS Arrow's net income for the first nine months of 2009 was $60.4 million ($.50 per share on both a basic and diluted basis) on sales of $10.5 billion, compared with net income of $258.2 million ($2.13 and $2.11 per share on a basic and diluted basis, respectively) on sales of $12.7 billion in the first nine months of 2008. Net income for the first nine months of 2009 includes restructuring and integration charges of $80.9 million ($61.3 million net of related taxes or $.51 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies and a loss on prepayment of debt of $5.3 million ($3.2 million net of related taxes or $.03 per share on both a basic and diluted basis) related to the repurchase of $130.5 million principal amount of its 9.15% senior notes due 2010. Excluding these items, net income would have been $124.9 million ($1.04 per share on both a basic and diluted basis) for the first nine months of 2009. Net income for the first nine months of 2008 includes restructuring and integration charges of $25.7 million ($17.7 million net of related taxes or $.15 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies and a charge, including legal fees, related to a preference claim from 2001 of $12.9 million ($7.8 million net of related taxes or $.06 per share on both a basic and diluted basis). Excluding these items, net income would have been $283.7 million ($2.34 and $2.32 per share on a basic and diluted basis, respectively) for the first nine months of 2008. GUIDANCE "Looking ahead, we believe that total fourth-quarter sales will be between $3.65 and $4.25 billion, with global component sales between $2.25 and $2.65 billion and global enterprise computing solutions sales between $1.4 and $1.6 billion. Earnings per share, on a diluted basis, excluding any charges, are expected to be in the range of $.44 to $.56," said Paul J. Reilly, executive vice president and chief financial officer. Arrow Electronics (www.arrow.com) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. Headquartered in Melville, N.Y., Arrow serves as a supply channel partner for approximately 800 suppliers and 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 340 locations in 53 countries and territories. Certain Non-GAAP Financial Information In addition to disclosing results that are determined 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 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 ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "), the company provides certain non-GAAP financial information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc operating income Operating Income 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. , net income and net income per basic and diluted share, each as adjusted for certain charges, credits and losses that the company believes impact the comparability of its results of operations. These charges, credits and losses arise out of the company's efficiency enhancement initiatives, prepayment of debt, and certain legal matters. A reconciliation of the company's non-GAAP financial information to GAAP is set forth in the table below. The company believes that such non-GAAP financial information is useful to investors to assist in assessing and understanding the company's operating performance and underlying trends in the company's business because management considers the charges, credits and losses referred to above to be outside the company's core operating results. This non-GAAP financial information is among the primary indicators management uses as a basis for evaluating the company's financial and operating performance. In addition, the company's Board of Directors may use this non-GAAP financial information in evaluating management performance and setting management compensation. The presentation of this additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for, or alternative to, operating income, net income and net income per basic and diluted share determined in accordance with GAAP. Analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with GAAP. [TABLE OMITTED] [TABLE OMITTED] Information Relating to 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 includes forward-looking statements that are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: industry conditions, the company's implementation of its new enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. system, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and global ECS markets, changes in relationships with key suppliers, increased profit margin pressure, the effects of additional actions taken to become more efficient or lower costs, and the company's ability to generate additional cash flow. Forward-looking statements are those statements, which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar expressions. 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 of the forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
|||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion