Avnet Inc. Reports Record Fourth Quarter Results.Business Editors/High-Tech Writers PHOENIX--(BUSINESS WIRE)--Aug. 8, 2000 Avnet Avnet, Inc. (NYSE: AVT) is a technology B2B distributor headquartered in Phoenix, Arizona. The company states on their website that:
See: New York Stock Exchange :AVT AVT avian arginine vasotocin. See vasotocin. ) reported results today for its fourth quarter and fiscal year ended June June: see month. 30, 2000. Net income for the fourth quarter of fiscal year 2000 was a record $66.6 million, or $1.48 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, as compared with net income, excluding special items described below, of $26.8 million, or $0.76 per share on a diluted basis, in last year's fourth quarter. Accordingly, net income and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before special items were higher by 148 percent and 95 percent, respectively, as compared with last year's fourth quarter. Sales for the fourth quarter of fiscal 2000 were a record $2.73 billion, up 66 percent as compared with sales of $1.64 billion in the fourth quarter of last year. Including the net gain recorded in connection with exiting the catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. businesses as described below, net income and diluted earnings per share for last year's fourth quarter were $106.5 million and $3.01, respectively. For fiscal year 2000, sales were a record $9.17 billion, up 44 percent as compared with last year's sales of $6.35 billion. Net income, excluding special charges, was $175.6 million, or $4.22 per share on a diluted basis, as compared with last year's net income of $110.5 million, excluding special charges and a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain, or $3.08 per share on a diluted basis. The results for fiscal 2000 include $49.0 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ($37.2 million included in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and $11.8 million included in cost of sales), $30.4 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. or $0.73 per share on a diluted basis of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. special charges related primarily to the integration of Marshall Marshall. 1 City (1990 pop. 12,711), seat of Saline co., N central Mo.; inc. 1839. In a large farm area, it is a processing center for grain, eggs, meat, and dairy products. Marshall is the seat of Missouri Valley College. Industries, SEI Eurotronics, and the Macro Group into the Electronics Marketing Group. Including these special charges, fiscal 2000 net income and diluted earnings per share were $145.1 million and $3.49, respectively. Diluted earnings per share for fiscal 2000, both including and excluding special items, is greater by $0.08 than the sum of the applicable amounts for each of the four quarters due primarily to the effect of the issuance of shares in connection with the acquisitions of Marshall Industries and SEI Eurotronics. The prior year's fourth quarter included the net gain associated with the decision to exit the printed catalog business consisting of the gain on the sale of Allied Electronics, offset somewhat by charges recorded in connection with the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of the Avnet Setron catalog operation in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . The net positive effect on fourth quarter fiscal year 1999 pre-tax income, net income and diluted earnings per share was $209.5 million, $79.7 million, and $2.25, respectively. The fiscal year 1999 results also include a first quarter pre-tax charge of $26.5 million associated principally with the reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of the company's EMG EMG abbr. electromyogram Electromyography (EMG) A diagnostic test that records the electrical activity of muscles. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations. This negatively impacted net income and diluted earnings per share by $15.7 million and $0.43, respectively. Including all special items, consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income for fiscal year 1999 was $174.5 million, or $4.86 per share on a diluted basis. Roy Roy, city (1990 pop. 24,603), Weber co., N Utah, near Great Salt Lake; settled by Mormons 1877, inc. 1937. Computer equipment is manufactured, and many residents work at nearby Hill Air Force Base. Vallee, Avnet's chairman and chief executive officer, stated, "The excellent results for Avnet's fourth quarter are due to continued strengthening of the electronics components industry, substantially improved results in our computer business, and the benefits associated with our unprecedented acquisition activity, especially the highly successful merger of Marshall with Avnet's EM Americas A·mer·i·cas , the See America. operation. "Our earnings per share reached a record high in the fourth quarter even though we have not yet achieved all of the expected benefits resulting from our recently completed strategic acquisitions." Vallee also commented, "CMG's fourth quarter results have improved dramatically as compared with the third quarter. In addition, Avnet Applied Computing computing - computer contributed another successful earnings quarter despite its sales being negatively impacted by the inability of certain suppliers to provide the product necessary to meet customer demand." Phoenix-based Avnet Inc., a Fortune 500 company with annual sales exceeding $9 billion, is one of the world's largest distributors of semiconductors, interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. , passive and electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). components and computer products from the leading manufacturers. Serving customers in 60 countries, Avnet markets, inventories and adds value to these products and provides world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. supply-chain management and engineering services. The company's web site is located at www.avnet.com.
AVNET INC.
(MILLIONS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS (1) FOURTH QUARTERS ENDED
JUNE 30, JULY 2,
2000 1999 (1) % CHANGE
Sales $2,728.9 $1,642.3 + 66%
Income before income taxes 114.8 255.6 - 55%
Net income 66.6 106.5 - 38%
Earnings per share:
Basic $1.51 $3.03 - 50%
Diluted $1.48 $3.01 - 51%
EXCLUDING SPECIAL ITEMS (1) FOURTH QUARTERS ENDED
JUNE 30, JULY 2,
2000 1999 (1) % CHANGE
Sales $2,728.9 $1,642.3 + 66%
Income before income taxes 114.8 46.1 + 149%
Net income 66.6 26.8 + 148%
Earnings per share:
Basic $1.51 $0.76 + 99%
Diluted $1.48 $0.76 + 95%
(1) Fiscal 1999 fourth quarter results shown above include the net
gain on exiting the printed catalog business consisting of the
gain on the July 2, 1999 sale of Allied Electronics, somewhat
offset by charges recorded in connection with the disposition of
the Avnet Setron catalog operation in Germany. The net positive
effect on fourth quarter fiscal year 1999 pre-tax income, net
income and diluted earnings per share was $209.5 million, $79.7
million and $2.25, respectively.
AVNET INC.
(MILLIONS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS (1)(2) FISCAL YEARS ENDED
JUNE 30, JULY 2,
2000 (1) 1999 (2) % CHANGE
Sales $9,172.2 $6,350.0 + 44%
Income before income taxes 254.5 375.3 - 32%
Net income 145.1 174.5 - 17%
Earnings per share:
Basic $3.53 $4.90 - 28%
Diluted $3.49 $4.86 - 28%
EXCLUDING SPECIAL ITEMS (1)(2) FISCAL YEARS ENDED
JUNE 30, JULY 2,
2000 (1) 1999 (2) % CHANGE
Sales $9,172.2 $6,350.0 + 44%
Income before income taxes 303.5 192.3 + 58%
Net income 175.6 110.5 + 59%
Earnings per share:
Basic $4.27 $3.10 + 38%
Diluted $4.22 $3.08 + 37%
(1) Fiscal 2000 results include special charges associated with (a)
the integration of Marshall Industries, SEI Eurotronics and Macro
into Electronics Marketing ("EM"), (b) the integration of JBA
Computer Solutions into Computer Marketing North America, (c) the
reorganization of EM Asia, (d) the reorganization of EM's European
operations including costs related to the consolidation of EM's
European warehousing operations and (e) costs incurred in
connection with certain litigation brought by the company. The
total special charges for fiscal 2000 amounted to $49.0 million
pre-tax, $30.4 million after tax and $0.73 per share on a diluted
basis.
(2) Fiscal 1999 results shown above include the net gain on exiting
the printed catalog operations recorded in the fourth quarter of
fiscal 1999 offset by special charges (recorded in the first
quarter) associated with the reorganization of the company's
Electronics Marketing Group. The net positive effect on fiscal
1999 pre-tax income, net income and diluted earnings per share was
$183.0 million, $64.0 million and $1.78 per share, respectively.
AVNET INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
EXCLUDING SPECIAL ITEMS
FOURTH QUARTERS ENDED FISCAL YEARS ENDED
JUNE 30, JULY 2, JUNE 30, JULY 2,
2000 1999 (1) 2000 (1) 1999 (1)
Sales $ 2,728,941 $ 1,642,311 $ 9,172,205 $ 6,350,042
Cost of sales 2,334,829 1,392,989 7,871,932 5,388,326
Gross profit 394,112 249,322 1,300,273 961,716
Operating expenses 251,106 190,837 917,323 719,232
Operating income 143,006 58,485 382,950 242,484
Other income, net 1,900 217 4,873 1,875
Interest expense (30,099) (12,628) (84,328) (52,096)
Income before
income taxes 114,807 46,074 303,495 192,263
Income taxes 48,250 19,254 127,928 81,775
Net Income $ 66,557 $ 26,820 $ 175,567 $ 110,488
Earnings per share:
Basic $ 1.51 $ 0.76 $ 4.27 $ 3.10
Diluted $ 1.48 $ 0.76 $ 4.22 $ 3.08
Shares used to
compute earnings
per share:
Basic 44,139 35,174 41,107 35,595
Diluted 44,948 35,389 41,562 35,917
(1) The above Consolidated Statements of Income exclude certain
special items as set forth in the notes on page 6 (see
"Consolidated Statements of Income Including Special Items").
AVNET INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS
FOURTH QUARTERS ENDED FISCAL YEARS ENDED
JUNE 30, JULY 2, JUNE 30, JULY 2,
2000 1999 (1) 2000 (2) 1999 (3)
Sales $ 2,728,941 $ 1,642,311 $ 9,172,205 $ 6,350,042
Cost of sales 2,334,829 1,398,229 7,883,719 5,401,472
Gross profit 394,112 244,082 1,288,486 948,570
Operating expenses 251,106 228,329 954,500 775,337
Operating income 143,006 15,753 333,986 173,233
Other income, net 1,900 217 4,873 1,875
Interest expense (30,099) (12,628) (84,328) (52,096)
Gain on sale of
Allied Electronics -- 252,279 -- 252,279
Income before
income taxes 114,807 255,621 254,531 375,291
Income taxes 48,250 149,092 109,390 200,834
Net Income $ 66,557 $ 106,529 $ 145,141 $ 174,457
Earnings per
share:
Basic $ 1.51 $ 3.03 $ 3.53 $ 4.90
Diluted $ 1.48 $ 3.01 $ 3.49 $ 4.86
Shares used to
compute earnings
per share:
Basic 44,139 35,174 41,107 35,595
Diluted 44,948 35,389 41,562 35,917
(1) Fiscal 1999 fourth quarter results shown above include the net
gain on exiting the printed catalog business consisting of the
gain on the July 2,1999 sale of Allied Electronics, somewhat
offset by charges recorded in connection with the disposition of
the Avnet Setron catalog operation in Germany. The net positive
effect on fourth quarter fiscal year 1999 pre-tax income, net
income and diluted earnings per share was $209.5 million, $79.7
million and $2.25, respectively. Approximately $37.5 million of
the pre-tax charge is included in operating expenses and $5.2
million is included in cost of sales, while the pre-tax gain on
the sale of Allied Electronics is shown separately on the income
statement above.
(2) Fiscal 2000 results include special charges associated with (a)
the integration of Marshall Industries, SEI Eurotronics and Macro
into Electronics Marketing ("EM"), (b) the integration of JBA
Computer Solutions into Computer Marketing North America, (c) the
reorganization of EM Asia, (d) the reorganization of EM's European
operations including costs related to the consolidation of EM's
European warehousing operations and (e) costs incurred in
connection with certain litigation brought by the company. The
total special charges for fiscal 2000 amounted to $49.0 million
pre-tax, ($37.2 million included in operating expenses and $11.8
million included in cost of sales), $30.4 million after-tax and
$0.73 per share on a diluted basis.
(3) Fiscal 1999 results shown above include the net gain on exiting
the printed catalog operations recorded in the fourth quarter of
fiscal 1999 offset by special charges (recorded in the first
quarter) associated with the reorganization of the company's
Electronics Marketing Group. The net positive effect on fiscal
1999 pre-tax income, net income and diluted earnings per share
were $183.0 million, $64.0 million and $1.78 per share.
Approximately $56.1 million of the pre-tax charge is included in
operating expenses and $13.1 million is included in cost of sales,
while the pre-tax gain on the sale of Allied Electronics is shown
separately on the income statement above.
AVNET INC.
SEGMENT INFORMATION
(MILLIONS)
FOURTH QUARTERS ENDED FISCAL YEARS ENDED
JUNE 30, JULY 2, JUNE 30, JULY 2,
SALES 2000 1999 2000 1999
Electronics Marketing $1,979.8 $1,218.1 $6,638.2 $4,795.1
Computer Marketing 519.0 424.2 1,863.5 1,554.9
Avnet Applied
Computing (1) 230.1 - 670.5 -
Consolidated $2,728.9 $1,642.3 $9,172.2 $6,350.0
OPERATING INCOME
Electronics Marketing $139.1 $63.8 $391.0 $256.1
Computer Marketing 13.5 10.1 38.1 43.0
Avnet Applied
Computing (1) 8.4 - 20.5 -
Headquarters (18.0) (15.4) (66.6) (56.6)
Consolidated Before
Special Items 143.0 58.5 383.0 242.5
Special Items - (42.7) (49.0) (69.3)
Consolidated $143.0 $15.8 $334.0 $173.2
(1) Avnet Applied Computing, which was created by combining certain
business segments from Electronics Marketing ("EM") and Computer
Marketing ("CM"), started operating in North America as of the
beginning of the second quarter of fiscal 2000 and began operating
in Europe in the third quarter of fiscal 2000. The results for the
prior periods have not been restated and are included in EM and
CM.
AVNET INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
JUNE 30, JULY 2,
2000 1999
Assets:
Current assets:
Cash and cash equivalents $167,192 $311,982
Receivables 1,750,827 960,639
Inventories 1,887,280 997,247
Other 67,956 43,455
Total current assets 3,873,255 2,313,323
Property, plant & equipment 289,902 194,012
Goodwill 856,831 385,648
Other assets 224,367 91,714
Total assets 5,244,355 2,984,697
Less liabilities:
Current liabilities:
Borrowings due within one
year 499,287 288
Accounts payable 1,102,510 480,377
Accrued expenses and other 301,977 315,198
Total current liabilities 1,903,774 795,863
Long-term debt, less due
within one year 1,438,610 791,226
Total liabilities 3,342,384 1,587,089
Shareholders' equity $1,901,971 $1,397,608
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