Avnet Inc. Reports Third Quarter Fiscal 2005 Results.PHOENIX -- 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 results for third quarter fiscal year 2005, which ended April 2, 2005. Revenue was $2.76 billion for the quarter, representing an increase of 4% over third quarter fiscal 2004 and a decrease of 4% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen following the company's traditionally strong December December: see month. quarter. Net income for third quarter fiscal 2005 was $41.1 million, or $0.34 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 prior year net income of $26.7 million, or $0.22 per share on a diluted basis, which included certain charges that are further discussed in the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. financial statements. Excluding those charges in the prior year third quarter, net income was $40.9 million, or $0.34 per share on a diluted basis. 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. for third quarter fiscal 2005 was $78.5 million, an improvement of $4.6 million, or 6%, as compared with operating income of $73.9 million in the year ago quarter. Operating income as a percent of sales increased slightly from last year to 2.85% in the current year quarter. This represents the 11th consecutive quarter of year-over-year improvement in operating income dollars and margin, excluding certain charges. 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, chairman and chief executive officer, commented, "We are pleased with our overall performance in the March quarter. Technology Solutions (TS) exceeded expectations with year-over-year revenue growth of 11% and a sequential One after the other in some consecutive order such as by name or number. decline of 17% following its record performance in the seasonally strong December quarter. Although Electronics Marketing (EM) revenue for the quarter was flat year over year, its sales grew 8% sequentially." The company generated $131 million of free cash flow (as defined later in this release) during the third quarter of fiscal 2005. During the quarter, the company paid off $87 million of debt that matured in February February: see month. 2005 and ended the quarter with $594 million of cash and cash equivalents. This continued cash flow generation brought the company's net debt (total debt less cash and cash equivalents) to $656 million, the lowest it has been since the fourth quarter of fiscal 1999. Ray Sadowski, chief financial officer, stated: "We had another quarter of significant positive free cash flow due to our continued focus on working capital management and operational efficiencies. At Electronics Marketing we reduced inventory during the quarter by another $100 million, thereby improving inventory turns to near record levels. This cash generation brings our free cash flow year to date to $375 million." Operating Groups Electronics Marketing (EM) sales of $1.60 billion for third quarter fiscal 2005 were up 8% sequentially and flat on a year-over-year basis. EM sales in the Americas A·mer·i·cas , the See America. , EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. and Asia increased 6%, 13% and 4%, respectively, on a sequential basis. EM operating income of $61.5 million for third quarter fiscal 2005 was 30% higher than the prior sequential quarter operating income of $47.4 million. Technology Solutions (TS) sales of $1.16 billion were up 11% year over year and down 17% sequentially following its typically strong December quarter. TS sales in the Americas, EMEA and Asia increased 11%, 4% and 69%, respectively, on a year-over-year basis. TS operating income was $31.7 million, a 23% increase as compared with third quarter fiscal 2004 operating income of $25.8 million, and its operating income margin of 2.73% increased 26 basis points over the prior year third quarter. Vallee added, "At Technology Solutions, the year-over-year revenue and operating income growth were better than expected as operating income grew 23% on sales growth of 11%. The IT spend for small and medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized businesses continues to grow over last year and Technology Solutions is executing well and profitably growing faster than the markets it serves. We are very pleased with 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. demonstrated by Electronics Marketing as operating income grew 30% sequentially on an 8% increase in revenue. We are also encouraged by EM's positive book to bill ratios across all three regions for the March quarter." Outlook Looking forward to Avnet's fourth quarter fiscal 2005, Vallee stated, "We expect revenues for both Electronics Marketing and Technology Solutions to grow from 1% to 5% sequentially. Therefore, Avnet's 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: sales should be in the range of $2.8 billion to $2.9 billion in the fourth quarter fiscal 2005, and we expect earnings to be in the range of $0.35 to $0.39 per share. This guidance does not take into account any impact from the proposed acquisition of Memec which we announced earlier this week." 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 "anticipate," "expect," believe," and "should." 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 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 company's reports 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. and Form 10-Q Form 10-Q See 10-Q. . Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Information In addition to disclosing financial 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 also discloses certain non-GAAP financial information including adjusted operating income, adjusted net income (loss) and adjusted diluted earnings (loss) per share. The non-GAAP financial information is used to reflect the company's results of operations excluding certain items that have arisen from 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). activities in the periods presented. Management believes operating income adjusted for restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. is useful to investors to assess and understand operating performance, especially 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. Management analyzes operating income without the impact of restructuring costs as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of ongoing operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: performance and underlying trends in the business. Management also uses this non-GAAP measure to establish operational goals and, in some cases, for measuring performance for compensation purposes. Management similarly believes 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 adjusted for the 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. impact of restructuring and other costs is useful to investors because it provides a measure of the company's net profitability on a more comparable basis to historical periods and provides a more meaningful basis for forecasting future performance. 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 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. excluding the after-tax impact of restructuring charges provides an important measure of the company's net results of operations for the investing public. However, analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with, data presented in accordance with GAAP. For the periods presented in this release, restructuring and other charges only impacted the prior fiscal year periods. Reconciliations of the company's reported results to the results adjusted for these items are included in the following table (in thousands, except for per share data) along with comparable data for the current fiscal year periods:
Third Quarters Ended Nine Months Ended
April 2, April 3, April 2, April 3,
2005 2004 2005 2004
-------- -------- -------- ---------
Operating Income
----------------
As reported $78,531 $73,852 $235,580 $116,469
Restructuring charges - - - 55,618
-------- -------- -------- ---------
As adjusted $78,531 $73,852 $235,580 $172,087
======== ======== ======== =========
Net Income
----------
As reported $41,148 $26,650 $120,989 $24,226
Restructuring charge and
debt extinguishment costs,
net of tax - 14,215 - 52,752
-------- -------- --------- ---------
As adjusted $41,148 $40,865 $120,989 $76,978
======== ======== ========= =========
Diluted EPS
-----------
As reported $0.34 $0.22 $1.00 $0.20
Restructuring charges and debt
extinguishment costs, net of
tax - 0.12 - 0.44
-------- -------- --------- ---------
As adjusted $0.34 $0.34 $1.00 $0.64
======== ======== ========= =========
The following table summarizes the company's cash flow activity for the third quarter and nine months ended April 2, 2005, including the company's computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of free cash flow and a reconciliation of this metric to the nearest GAAP measures of net income and net 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 . Management's computation of free cash flow consists of net cash flow from operations plus cash flows generated from or used for purchases and sales of property, plant and equipment, acquisitions of operations, effects of exchange rates on cash and cash equivalents and other financing activities. Management believes that the non-GAAP metric of free cash flow is a useful measure to help management and investors better assess and understand the company's operating performance and sources and uses of cash. Management also believes the analysis of free cash flow assists in identifying underlying trends in the business. Computations of free cash flow may differ from company to company. Therefore, the analysis of free cash flow should be used as a complement to, and in conjunction with, the company's consolidated statements of cash flows presented in the accompanying financial statements. Management also analyzes cash flow from operations based upon its three primary components noted in the table below: net income, non-cash and other reconciling items and cash flow generated from working capital. Similar to free cash flow, management believes that this breakout is an important measure to help management and investors to understand the trends in the company's cash flows, including the impact of management's focus on asset utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be and efficiency through reductions in the net balance of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , inventories and accounts payable.
Three Months Ended Nine Months Ended
April 2, 2005 April 2, 2005
------------------- -----------------
(thousands)
Net income $41,148 $120,989
Non-cash and other
reconciling items 22,403 112,572
-------- --------
Cash flow generated from
working capital (excluding
cash and cash equivalents) 82,851 150,618
-------- --------
Net cash flow from operations 146,402 384,179
Cash flow generated from
(used for):
Purchases of property, plant
and equipment (6,517) (22,257)
Cash proceeds from sales of
property, plant and equipment 328 7,125
Acquisition of operations, net 7 (1,098)
Effect of exchange rates on cash
and cash equiv. (10,048) 5,719
Other, net financing activities 739 923
-------- --------
Net free cash flow $130,911 $374,591
======== ========
Teleconference Webcast and Upcoming Events Avnet will host a webcast of its quarterly teleconference today at 2 p.m. Eastern time. The live webcast event, as well as other financial information including financial statement reconciliations of GAAP and non-GAAP financial measures, will be available through www.ir.avnet.com. Please log on 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. An 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. copy of the presentation will also be available after the webcast. Avnet will present at the following investor conferences in May and June June: see month. : The GTDC GTDC Global Technology Distribution Council Investor Relations Investor relations The process by which the corporation communicates with its investors. Conference on May 11, 2005, The 33rd Annual JPMorgan Technology Conference on May 17, 2005, CSFB's 2nd Annual Supply Chain Conference on June 1, 2005, and The 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 Annual Growth Forum, date to be determined. For a listing of conference details and how to access each available webcast, along with additional upcoming events and other information, please visit Avnet's investor relations Web site at www.ir.avnet.com. About Avnet Avnet enables success from the center of the technology industry, providing cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. services and solutions vital to a broad base of more than 100,000 customers and 300 suppliers. The company markets, distributes and adds value to a wide variety of electronic components, enterprise computer products and embedded Inserted into. See embedded system. subsystems. Through its premier market position, Avnet brings a breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is and depth of capabilities that help its trading partners accelerate growth and realize cost efficiencies. Avnet generated more than $10 billion in revenue in fiscal 2004 (year ended July July: see month. 3, 2004) through sales in 68 countries. 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)
THIRD QUARTERS ENDED
---------------------
APRIL 2, APRIL 3,
2005 2004 (1)
--------- ----------
Sales $2,758.3 $2,639.6
Income before income taxes 59.4 36.6
Net income 41.1 26.7
Net income per share:
Basic $0.34 $0.22
Diluted $0.34 $0.22
NINE MONTHS ENDED
-----------------
APRIL 2, APRIL 3,
2005 (3) 2004 (2)(3)
--------- -----------
Sales $8,241.4 $7,601.7
Income before income taxes 174.7 33.1
Net income 121.0 24.2
Net income per share:
Basic $1.00 $0.20
Diluted $1.00 $0.20
(1) The results for the third quarter of fiscal 2004 shown above include the impact of debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. costs associated with the company's cash tender offer for $273.4 million of the 7 7/8% Notes that were due Feb. 15, 2005. These charges amounted to $16.4 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , $14.2 million after-tax and $0.12 per diluted share. (2) The results for the first nine months of fiscal 2004 shown above include the impact of restructuring and other charges recorded in the first and second quarters of fiscal 2004 in connection with cost-cutting initiatives and the combination of the Computer Marketing and Applied Computing computing - computer operating groups into one operating group called Avnet Technology Solutions. These restructuring and other charges amounted to $55.6 million pre-tax (all of which was 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. ), $38.5 million after-tax and $0.32 per diluted share. See the Consolidated Statements of Operations included herein for further disclosure of the nature and impacts of these restructuring and other charges. These charges combined with the debt extinguishment costs discussed in Note 1 amounted to $72.0 million pre-tax, $52.8 million after-tax and $0.44 per diluted share for the nine months ended April 3, 2004. (3) Due to Avnet's fiscal calendar, the nine months ended April 2, 2005, contained 39 weeks while the nine months ended April 3, 2004, contained 40 weeks.
AVNET INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE DATA)
THIRD QUARTERS ENDED
------------------------
APRIL 2, APRIL 3,
2005 2004 (1)
----------- -----------
Sales $2,758,259 $2,639,589
Cost of sales 2,393,691 2,281,006
----------- -----------
Gross profit 364,568 358,583
Selling, general and
administrative expenses 286,037 284,731
Restructuring charges (2) - -
----------- -----------
Operating income 78,531 73,852
Other income, net 1,860 2,900
Interest expense (20,963) (23,817)
Debt extinguishment costs (1) - (16,370)
----------- -----------
Income before income taxes 59,428 36,565
Income tax provision 18,280 9,915
----------- -----------
Net income $41,148 $26,650
=========== ===========
Net earnings per share:
Basic $0.34 $0.22
=========== ===========
Diluted $0.34 $0.22
=========== ===========
Shares used to compute earnings
per share:
Basic 120,694 120,332
=========== ===========
Diluted 121,414 121,909
=========== ===========
NINE MONTHS ENDED
------------------------
APRIL 2, APRIL 3,
2005 (3) 2004 (2)(3)
----------- ------------
Sales $8,241,415 $7,601,699
Cost of sales 7,153,357 6,604,860
----------- ------------
Gross profit 1,088,058 996,839
Selling, general and
administrative expenses 852,478 824,752
Restructuring charges (2) - 55,618
----------- ------------
Operating income 235,580 116,469
Other income, net 2,247 7,137
Interest expense (63,088) (74,184)
Debt extinguishment costs (1) - (16,370)
----------- ------------
Income before income taxes 174,739 33,052
Income tax provision 53,750 8,826
----------- ------------
Net income $120,989 $24,226
=========== ============
Net earnings per share:
Basic $1.00 $0.20
=========== ============
Diluted $1.00 $0.20
=========== ============
Shares used to compute earnings
per share:
Basic 120,591 119,946
=========== ============
Diluted 121,373 120,921
=========== ============
(1) The results for the third quarter of fiscal 2004 shown above include the impact of debt extinguishment costs associated with the company's cash tender offer for $273.4 million of the 7 7/8% Notes that were due Feb. 15, 2005. These charges amounted to $16.4 million pre-tax, $14.2 million after-tax and $0.12 per diluted share. (2) The results for the first nine months of fiscal 2004 shown above include the impact of restructuring and other charges recorded in the first and second quarters of fiscal 2004 in connection with cost-cutting initiatives and the combination of the Computer Marketing and Applied Computing operating groups into one operating group called Avnet Technology Solutions. These charges included 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 costs, charges for consolidation of certain owned and leased facilities, 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, the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of certain owned assets in the company's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of remaining unamortized deferred loan costs associated with the company's multiyear credit facility terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: in September September: see month. 2003. These restructuring and other charges amounted to $55.6 million pre-tax, $38.5 million after-tax and $0.32 per diluted share. These charges combined with the debt extinguishment costs discussed in Note 1 amounted to $72.0 million pre-tax, $52.8 million after-tax and $0.44 per diluted share for the nine months ended April 3, 2004. (3) Due to Avnet's fiscal calendar, the nine months ended April 2, 2005, contained 39 weeks while the nine months ended April 3, 2004, contained 40 weeks.
AVNET INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
APRIL 2, JULY 3,
2005 2004
----------- -----------
Assets:
Current assets:
Cash and cash equivalents $594,348 $312,667
Receivables, net 1,785,628 1,743,962
Inventories 1,304,275 1,364,037
Other 47,830 63,320
----------- -----------
Total current assets 3,732,081 3,483,986
Property, plant and equipment, net 165,833 187,339
Goodwill 896,563 894,882
Other assets 268,055 297,444
----------- -----------
Total assets 5,062,532 4,863,651
----------- -----------
Less liabilities:
Current liabilities:
Borrowings due within one year 68,788 160,660
Accounts payable 1,216,530 1,099,703
Accrued expenses and other 379,342 384,630
----------- -----------
Total current liabilities 1,664,660 1,644,993
Long-term debt, less due within one year 1,181,344 1,196,160
Other long-term liabilities 69,271 69,072
----------- -----------
Total liabilities 2,915,275 2,910,225
----------- -----------
Shareholders' equity $2,147,257 $1,953,426
=========== ===========
AVNET INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(THOUSANDS)
NINE MONTHS ENDED
APRIL 2, APRIL 3,
2005 2004
--------- ---------
Cash flows from:
Operations:
Net income $120,989 $24,226
Add non-cash and other reconciling items:
Depreciation and amortization 46,398 50,550
Deferred taxes 32,100 (449)
Non-cash restructuring and other charges - 31,409
Other, net 34,074 33,805
Receivables (11,538) (233,771)
Inventories 96,691 (160,695)
Accounts payable 93,731 276,799
Accrued expenses and other, net (28,266) 42,463
--------- ---------
Net cash flows provided from operating
activities 384,179 64,337
--------- ---------
Financing:
Issuance of notes in public offering, net
of issuance costs - 292,500
Repayment of notes (89,589) (444,245)
(Repayment of) proceeds from bank debt, net (3,152) 38,282
Repayment of other debt, net (169) (2)
Other, net 923 13,299
--------- ---------
Net cash flows used for financing
activities (91,987) (100,166)
--------- ---------
Investing:
Purchases of property, plant, and equipment (22,257) (19,378)
Cash proceeds from sales of property, plant
and equipment 7,125 1,470
Acquisition of operations, net (1,098) (1,448)
--------- ---------
Net cash flows used for investing
activities (16,230) (19,356)
--------- ---------
Effect of exchange rates on cash and cash
equivalents 5,719 11,118
--------- ---------
Cash and cash equivalents:
increase 281,681 (44,067)
at beginning of period 312,667 395,467
--------- ---------
at end of period $594,348 $351,400
========= =========
AVNET INC.
SEGMENT INFORMATION
(MILLIONS)
THIRD QUARTERS ENDED NINE MONTHS ENDED
-------------------- -----------------
APRIL 2, APRIL 3, APRIL 2, APRIL 3,
SALES 2005 2004 2005 2004
--------------- -------- -------- -------- --------
Avnet Electronics
Marketing $1,596.1 $1,594.2 $4,638.5 $4,284.3
Avnet Technology
Solutions 1,162.2 1,045.4 3,602.9 3,317.4
-------- -------- --------- --------
Consolidated $2,758.3 $2,639.6 $8,241.4 $7,601.7
======== ======== ========= ========
OPERATING INCOME (LOSS)
-----------------------
Avnet Electronics
Marketing $61.5 $63.6 $167.8 $137.2
Avnet Technology
Solutions 31.7 25.8 110.3 74.4
Corporate (14.7) (15.5) (42.5) (39.5)
-------- -------- -------- --------
Consolidated Before
Restructuring and
Other Charges 78.5 73.9 235.6 172.1
Restructuring and
Other Charges - - - (55.6)
-------- -------- -------- --------
Consolidated $78.5 $73.9 $235.6 16.5
========= ======== ======== ========
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