Avnet Inc. Reports Second Quarter Fiscal 2003 Results; Returns to Profitability Before Special Charges.Business Editors PHOENIX--(BUSINESS WIRE)--Jan. 23, 2003 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. ) today reported that second quarter fiscal 2003 revenues increased from the prior sequential One after the other in some consecutive order such as by name or number. quarter, and the company returned to profitability before special charges. On quarterly revenues of $2.35 billion, the company reported net income, before special charges, of $7.1 million, or $0.06 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. These results compare with revenues of $2.36 billion and a net loss of $2.6 million, or $0.02 per share on a diluted basis, for the second quarter of fiscal 2002. 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. , before special charges, was $31.6 million, up by 58% from $20.0 million on a sequential quarterly basis and up 33% from $23.8 million as compared with the prior year second quarter. Including special charges outlined below, Avnet reported a net loss for the second quarter of $58.7 million, or $0.49 per share on a diluted basis. 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: revenues increased significantly on a sequential quarterly basis due to stronger than expected seasonal demand in the company's Computer Marketing group. Computer Marketing (CM) revenues increased 28.3% from the prior sequential quarter to $682.9 million. Applied Computing computing - computer (AC) also had a strong quarter, with revenues of $459.7 million, up 14.9% from the prior sequential quarter. On a year-over-year basis, revenues at CM and AC were down by 3.1% and 4.9%, respectively, as compared with the second quarter of last year. Revenues at Electronics Marketing (EM) declined by 3.0% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen ; however, revenues were up by 2.7% on a year-over-year basis. EM's sequential sales decline was due to continued weakness in the Americas-based components markets. Enterprise gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. declined slightly on a sequential basis from 13.69% in the first quarter of fiscal 2003 to 13.45% due primarily to the mix of business as the lower margin computer businesses (CM and AC) accounted for 49% of consolidated revenues as compared with 43% in the first quarter of fiscal 2003. Enterprise gross profit margin was essentially flat as compared with the prior year second quarter margin of 13.5% as the mix of business in each of these two quarters was very similar. Operating profit margin Operating profit margin The ratio of operating profit to net sales. , before special charges, of 1.35% in the second quarter of fiscal 2003 was up 34 basis points, as compared with 1.01% in the second quarter of fiscal 2002 and increased sequentially by 43 basis points primarily as a result of the increase in revenues from the first quarter of fiscal 2003. In connection with the company's continuing cost reduction initiatives, Avnet recorded certain special charges during the December December: see month. 2002 quarter. Total special charges during the second quarter of fiscal 2003 amounted to $106.7 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta (all of which is 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 $65.8 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 $0.55 per share on a diluted basis. These charges related to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when for workforce reductions announced during the quarter, reserves for non-cancelable lease commitments and write-downs of owned assets at facilities identified for consolidation and charges related to write-offs of certain capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. IT-related initiatives. Of the special charge of $106.7 million, $59.0 million represented non-cash write-downs and $47.7 million requires the use of cash. Ray Sadowski, chief financial officer, stated, "The special charge was somewhat higher than our initial estimates as we increased our cost cutting actions to yield benefits in excess of $90 million on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, of which $80 million was removed from the business as of the end of the December 2002 quarter." Commenting on the company's operating results, chairman and chief executive officer, 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, stated, "I am definitely def·i·nite adj. 1. Having distinct limits: definite restrictions on the sale of alcohol. 2. Indisputable; certain: a definite victory. 3. pleased with the performance of our team during the December 2002 quarter. We are beginning to realize the benefits of our organization's efforts to right-size the business to the current market environment, demonstrated by the increase in earnings per share, excluding special charges, on both a year-over-year and sequential quarterly basis." Vallee further noted: "We continue to believe that the industry is past the deepest part of this economic trough Trough The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. and we are in a stable but stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. market. We remain committed to improving profitability in this environment." The company reported that it also continued its progress on reducing working capital and total debt during the December 2002 quarter. The company generated cash of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $307 million, primarily through working capital reductions and the previously announced tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. of approximately $165 million. As a result, the company further reduced total debt for the eighth consecutive quarter. Since the peak of the last up-cycle in December 2000, debt has been reduced by nearly $1.9 billion to $1.4 billion, including as debt $50 million outstanding under the accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. program, at Dec. 27, 2002. Sadowski commented, "Our value based management initiative is clearly having an important impact as we again had another quarter of improving working capital productivity. Each of the operating groups continue to increase their asset velocity as evidenced by the improvement of several working capital metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. ." Providing guidance on the March 2003 quarter and the balance of the fiscal year, Vallee stated, "Avnet should cross over into slight revenue growth for the enterprise year-over-year in the March 2003 quarter, although revenues will likely fall sequentially due to seasonal factors. We expect March 2003 quarter revenues to exceed the September September: see month. 2002 quarter level of $2.17 billion and be in the range of $2.25 to $2.3 billion for the quarter. We expect sequential revenue decline of 5-10% from our computer businesses, mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. somewhat by 2-3% growth at our EM business. Factoring in the operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. we have following our most recent cost cutting actions, we expect earnings per share for the March 2003 quarter to be between $0.07 and $0.09, thereby producing another sequential quarter of EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. growth. Based upon current market conditions, we expect to exceed the current fiscal year 2003 earnings per share consensus estimates of $0.21 before special charges." For the first half of fiscal 2003, Avnet reported revenues of $4.52 billion as compared with $4.56 billion in the first half of fiscal 2002. The company also reported net income, before special charges, of $6.6 million, or $0.06 per share on a diluted basis for the first half of fiscal 2003. This compares with a net loss before cumulative effect of change in accounting principle of $21.8 million, or $0.18 per share on a diluted basis for the same period in fiscal 2002. Including special items, Avnet reported a net loss of $59.2 million, or $0.49 per shares on a diluted basis, for the first half of fiscal 2003. Teleconference Web cast and Upcoming Events Avnet will host a Web cast of its quarterly teleconference today at 5 p.m. Eastern Time. The live Web cast event, archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. of the event, and other recent investor relations Investor relations The process by which the corporation communicates with its investors. Web casts are available at www.ir.avnet.com. Please logon See login. 1. (jargon) logon - login. 2. (networking) logon - In ACF/VTAM, an unformatted session-initiation request for a session between two logical units. to the site 15 minutes prior to the start of the event to register or download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary software. In addition, Avnet will present at the following investor conferences in February February: see month. : Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Weisel Tech2003, Feb. 4, 2003, 6:10 p.m. Eastern Time; CSFB CSFB Credit Suisse First Boston CSFB Cyclically Shifted Filter Bank Fixed Income Conference, Feb. 11, 2003, 1:35 p.m. Eastern Time; and the Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. Technology Investment Symposium symposium In ancient Greece, an aristocratic banquet at which men met to discuss philosophical and political issues and recite poetry. It began as a warrior feast. Rooms were designed specifically for the proceedings. , Feb. 24, 2003, 12:30 p.m. Eastern Time. Also look for Avnet's presentations in March at: The Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Semi and Systems
Conference, March 4, 2003, time to be determined, and The Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . 24th Annual Institutional Investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. Conference, also March 4, 2003, 8:05 a.m. Eastern Time. For a listing of conference details and how to access each available Web cast, along with additional upcoming events and other information, please visit Avnet's investor relations Web site at www.ir.avnet.com. 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 certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current expectations and are subject to uncertainty and changes in factual circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as "believe," "should," "likely," and "expect." Actual results may vary 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: the effects of additional actions taken to lower costs, the company's ability to retain and grow market share, the company's ability to generate additional cash flow, any significant and unanticipated sales decline, changes in business conditions and the economy in general, changes in market demand and pricing pressures, allocations of products by suppliers, and other competitive and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 the 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. for fiscal 2002. Avnet is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. Additional Information Phoenix-based Avnet Inc. (NYSE:AVT) is the world's largest distributor 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, embedded systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. and computer products from leading manufacturers. Serving customers in 63 countries, Avnet also delivers services such as inventory management, supply-chain services, bill-of-materials analysis, systems integration and engineering design assistance. A Global Fortune 500 company, Avnet's revenues for fiscal 2002 (year ended June June: see month. 28, 2002) were $8.9 billion. Please feel free to visit Avnet's Investor Relations Web site at www.ir.avnet.com or contact us at investorrelations@avnet.com.
AVNET INC.
(MILLIONS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS (1) SECOND QUARTERS ENDED
---------------------
DEC. 27, DEC. 28,
2002 (1) 2001
----------- ----------
Sales $2,346.7 $2,359.9
Loss before income taxes (94.8) (6.1)
Net loss (58.7) (2.6)
Net loss per share:
Basic ($0.49) ($0.02)
Diluted ($0.49) ($0.02)
EXCLUDING SPECIAL ITEMS SECOND QUARTERS ENDED
---------------------
DEC. 27, DEC. 28,
2002 2001
--------- ---------
Sales $2,346.7 $2,359.9
Income (loss) before income
taxes 11.9 (6.1)
Net income (loss) 7.1 (2.6)
Net earnings (loss) per share:
Basic $0.06 ($0.02)
Diluted $0.06 ($0.02)
(1) The results for the second quarter of fiscal 2003 shown above
include the impact of incremental special charges recorded in
connection with the company's continuing cost reduction
initiatives. The charges related to (a) severance for workforce
reductions, (b) reserves for non-cancelable lease obligations,
write-downs of the carrying value of owned facilities and
write-downs of owned assets located in these leased and owned
facilities, and (c) costs related to write-offs of certain
capitalized IT-related initiatives. The special charges amounted
to $106.7 million pre-tax (all of which is included in selling,
general and administrative expenses), $65.8 million after-tax and
$0.55 per diluted share.
AVNET INC.
(MILLIONS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS (1) FIRST HALVES ENDED
------------------
DEC. 27, DEC. 28,
2002 (1) 2001 (2)
---------- ----------
Sales $4,520.6 $4,561.0
Loss before income taxes (95.9) (40.0)
Net loss (59.2) (21.8)
Net loss per share:
Basic ($0.49) ($0.18)
Diluted ($0.49) ($0.18)
EXCLUDING SPECIAL ITEMS FIRST HALVES ENDED
------------------
DEC. 27, DEC 28,
2002 2001 (2)
--------- ---------
Sales $4,520.6 $4,561.0
Income (loss) before income
taxes 10.8 (40.0)
Net income (loss) 6.6 (21.8)
Net earnings (loss) per share:
Basic $0.06 ($0.18)
Diluted $0.06 ($0.18)
(1) The results for the first half of fiscal 2003 shown above include
the impact of incremental special charges recorded in connection
with the company's continued cost reduction initiatives. The
charges related to (a) severance for workforce reductions, (b)
reserves for non-cancelable lease obligations, write-downs of the
carrying value of owned facilities and write-downs of owned assets
located in these leased and owned facilities, and (c) costs
related to write-offs of certain capitalized IT-related
initiatives. The special charges amounted to $106.7 million
pre-tax (all of which is included in selling, general and
administrative expenses), $65.8 million after-tax and $0.55 per
diluted share.
(2) The above operating information for the first half ended Dec. 28,
2001 excludes the cumulative effect of change in accounting
principle for the impairment of goodwill recorded as a result of
the adoption of Statement of Financial Accounting Standards No.
142, "Goodwill and Other Intangibles," for which further detail
can be found on the attached statements of operations.
AVNET INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL
ITEMS (1) SECOND QUARTERS ENDED FIRST HALVES ENDED
--------------------- ------------------
DEC. 27, DEC. 28, DEC. 27, DEC 28,
2002 (1) 2001 2002 (1) 2001
----------- ----------- ----------- -----------
Sales $2,346,665 $2,359,850 $4,520,555 $4,561,045
Cost of sales 2,031,099 2,041,234 3,907,370 3,931,867
----------- ----------- ----------- -----------
Gross profit 315,566 318,616 613,185 629,178
Selling, general and
administrative
expenses 390,758 294,810 668,424 601,747
----------- ----------- ----------- -----------
Operating income (loss) (75,192) 23,806 (55,239) 27,431
Other income, net 4,658 3,195 10,596 3,789
Interest expense (24,306) (33,101) (51,337) (71,172)
----------- ----------- ----------- -----------
Loss before income
taxes (94,840) (6,100) (95,980) (39,952)
Income tax benefit (36,183) (3,524) (36,835) (18,169)
----------- ----------- ----------- -----------
Loss before cumulative
effect of change in
accounting principle (58,657) (2,576) (59,145) (21,783)
Cumulative effect of
change in accounting
principle - - - (580,495)
Net loss ($58,657) ($2,576) ($59,145) ($602,278)
=========== =========== =========== ===========
Loss per share before
cumulative effect of
change in accounting
principle:
Basic ($0.49) ($0.02) ($0.49) ($0.18)
=========== =========== =========== ===========
Diluted ($0.49) ($0.02) ($0.49) ($0.18)
=========== =========== =========== ===========
Net loss per share:
Basic ($0.49) ($0.02) ($0.49) ($5.10)
=========== =========== =========== ===========
Diluted ($0.49) ($0.02) ($0.49) ($5.10)
=========== =========== =========== ===========
Shares used to compute
loss per share:
Basic 119,419 118,135 119,419 117,993
=========== =========== =========== ===========
Diluted 119,419 118,135 119,419 117,993
=========== =========== =========== ===========
(1) The results for the second quarter and first half of fiscal 2003
shown above include the impact of incremental special charges
recorded in connection with the company's continuing cost
reduction initiatives. The charges related to (a) severance for
workforce reductions, (b) reserves for non-cancelable lease
obligations, write-downs of the carrying value of owned facilities
and write-downs of owned assets located in these leased and owned
facilities, and (c) costs related to write-offs of certain
IT-related initiatives. The special charges amounted to $106.7
million pre-tax (all of which is included in selling, general and
administrative expenses), $65.8 million after-tax and $0.55 per
diluted share.
AVNET INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE DATA)
EXCLUDING SPECIAL
ITEMS(1) SECOND QUARTERS ENDED FIRST HALVES ENDED
--------------------- ------------------
DEC. 27, DEC. 28, DEC. 27, DEC. 28,
2002 (1) 2001 2002 (1) 2001
----------- ----------- ----------- -----------
Sales $2,346,665 $2,359,850 $4,520,555 $4,561,045
Cost of sales 2,031,099 2,041,234 3,907,370 3,931,867
----------- ----------- ----------- -----------
Gross profit 315,566 318,616 613,185 629,178
Selling, general and
administrative
expenses 283,993 294,810 561,659 601,747
Operating income 31,573 23,806 51,526 27,431
Other income, net 4,658 3,195 10,596 3,789
Interest expense (24,306) (33,101) (51,337) (71,172)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 11,925 (6,100) 10,785 (39,952)
Income tax provision
(benefit) 4,833 (3,524) 4,181 (18,169)
----------- ----------- ----------- -----------
Income (loss) before
cumulative effect of
change in accounting
principle 7,092 (2,576) 6,604 (21,783)
Cumulative effect of
change in
accounting principle - - - (580,495)
----------- ----------- ----------- -----------
Net income (loss) $7,092 ($2,576) $6,604 ($602,278)
=========== =========== =========== ===========
Earnings (loss) per
share before
cumulative effect of
change in
accounting principle:
Basic $0.06 ($0.02) $0.06 ($0.18)
=========== =========== =========== ===========
Diluted $0.06 ($0.02) $0.06 ($0.18)
=========== =========== =========== ===========
Net earnings (loss) per
share:
Basic $0.06 ($0.02) $0.06 ($5.10)
=========== =========== =========== ===========
Diluted $0.06 ($0.02) $0.06 ($5.10)
=========== =========== =========== ===========
Shares used to compute
earnings
(loss) per share:
Basic 119,419 118,135 119,419 117,993
=========== =========== =========== ===========
Diluted 119,419 118,135 119,419 117,993
=========== =========== =========== ===========
(1) The results for the second quarter and first half of fiscal 2003
shown above exclude the impact of incremental special charges
recorded in connection with the company's continuing cost
reduction initiatives. The charges related to (a) severance for
workforce reductions, (b) reserves for non-cancelable lease
obligations, write-downs of the carrying value of owned facilities
and write-downs of owned assets located in these leased and owned
facilities, and (c) costs related to write-offs of certain
IT-related initiatives. The special charges amounted to $106.7
million pre-tax (all of which is included in selling, general and
administrative expenses), $65.8 million after-tax and $0.55 per
diluted share.
AVNET INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
DEC. 27, JUNE 28,
2002 (1) 2002 (1)
----------- -----------
Assets:
Current assets:
Cash and cash equivalents $185,738 $159,234
Receivables, net 1,535,460 1,374,017
Inventories 1,239,344 1,417,305
Other 74,230 254,976
----------- -----------
Total current assets 3,034,772 3,205,532
Property, plant & equipment, net 275,671 349,924
Goodwill 846,221 844,597
Other assets 262,028 281,901
----------- -----------
Total assets 4,418,692 4,681,954
----------- -----------
Less liabilities:
Current liabilities:
Borrowings due within one year 483,974 59,309
Accounts payable 924,860 891,234
Accrued expenses and other 295,046 326,293
----------- -----------
Total current liabilities 1,703,880 1,276,836
Long-term debt, less due within one year 906,381 1,565,836
Other long-term liabilities 35,781 34,772
----------- -----------
Total liabilities 2,646,042 2,877,444
----------- -----------
Shareholders' equity $1,772,650 $1,804,510
=========== ===========
(1) The company has an accounts receivable securitization program
whereby it sells an interest in a pool of its trade accounts
receivable to third-party conduits through a wholly owned
bankruptcy-remote special purpose entity that is consolidated for
financial reporting purposes. The purpose of the program is to
provide the company with an additional source of liquidity at
interest rates more favorable than it could receive through other
forms of financing. At Dec. 27, 2002 and June 28, 2002, the
company had sold $50.0 million and $200.0 million, respectively,
of receivables under the program. This is reflected as a reduction
of receivables, with the proceeds used to pay down debt, in the
above consolidated balance sheets.
AVNET INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(THOUSANDS)
FIRST HALVES ENDED
DEC. 27, DEC. 28,
2002 2001
---------- ----------
Cash flows from:
Operations:
Net loss ($59,145) ($602,278)
Cumulative effect of change in accounting
principle - 580,495
---------- ----------
Loss before cumulative effect of change in
accounting principle (59,145) (21,783)
Add non-cash and other reconciling items:
Depreciation and amortization 47,709 46,664
Deferred taxes (3,495) (1,654)
Other, net 79,481 17,807
---------- ----------
64,550 41,034
Receivables (6,922) 266,086
Inventories 199,351 316,332
Payables, accruals and other, net 194,023 (19,129)
---------- ----------
Net cash flows provided from operating
activities 451,002 604,323
---------- ----------
Financing:
Repayment under accounts receivable
securitization program (150,000) -
Issuance of notes in public offering, net of
issuance costs - 394,328
Repayment of notes - (528,969)
Repayment of commercial paper and bank debt,
net (257,833) (360,592)
Repayment of other debt, net (1,539) (2,315)
Cash dividends - (17,673)
Other, net (67) 7,469
---------- ----------
Net cash flows used for financing
activities (409,439) (507,752)
---------- ----------
Investing:
Purchases of property, plant, and equipment (16,098) (45,628)
Acquisition of operations, net (1,899) (25,356)
---------- ----------
Net cash flows used for investing
activities (17,997) (70,984)
---------- ----------
Effect of exchange rates on cash and cash
equivalents 2,938 1,265
---------- ----------
Cash and cash equivalents:
increase 26,504 26,852
at beginning of year 159,234 97,279
---------- ----------
at end of period $185,738 $124,131
========== ==========
AVNET INC.
SEGMENT INFORMATION
(MILLIONS)
SECOND QUARTERS ENDED FIRST HALVES ENDED
--------------------- ----------------------
DEC 27, DEC. 28, DEC. 27, DEC. 28,
SALES 2002 2001 2002 2001
----------------------- --------- --------- ---------- ----------
Electronics Marketing $1,204.1 $1,172.0 $2,445.9 $2,409.5
Computer Marketing 682.9 704.8 1,215.1 1,276.7
Applied Computing 459.7 483.1 859.6 874.8
----------- --------- ---------- ----------
Consolidated $2,346.7 $2,359.9 $4,520.6 $4,561.0
=========== ========= ========== ==========
OPERATING INCOME (LOSS)
------------------------
Electronics Marketing $22.5 ($1.8) $37.2 ($6.8)
Computer Marketing 16.1 23.0 23.2 33.9
Applied Computing 5.6 17.0 8.9 31.5
Corporate (12.7) (14.4) (17.8) (31.2)
----------- --------- ---------- ----------
Consolidated Before
Special Charges $31.5 $23.8 $51.5 $27.4
Special Charges ($106.7) - ($106.7) -
----------- --------- ---------- ----------
Consolidated ($75.2) $23.8 ($55.2) $27.4
=========== ========= ========== ==========
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