Avnet Reports Third Quarter Results.PHOENIX--(BUSINESS WIRE)--April 27, 1999-- 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. ) Tuesday Tuesday: see week. reported results for its third quarter and first nine months ended April 2, 1999. Net income for the third quarter of fiscal 1999 was $25.7 million, or $0.73 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 last year's net income of $40.7 million, or $1.03 per share on a diluted basis. Sales for the third quarter of fiscal 1999 were $1.60 billion as compared with $1.51 billion in the third quarter of last year. For the first nine months of fiscal 1999, Avnet reported net income, before special charges, of $83.7 million, or $2.32 per share on a diluted basis, as compared with net income, before special items, of $126.1 million, or $3.11 per share, on a diluted basis, in last year's first nine months. Sales for the first nine months of the current fiscal year were $4.71 billion as compared with $4.37 billion in the same period last year. The first nine months of fiscal 1999 results mentioned above do not include $26.5 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , $15.7 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. and $0.43 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 (recorded in the first quarter) 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 Electronics Marketing Group European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations as more fully described in the footnotes to the attached financial statements. Including these charges, the first nine months of fiscal 1999 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 were $67.9 million and $1.88, respectively. In addition, the nine month fiscal 1998 results discussed above do not include the gain on the sale of the Company's former Channel Master business and special charges as described in the footnotes to the attached financial statements. The net effect of these items was to increase pre-tax income, net income, and diluted earnings per share by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $20.5 million, $8.7 million, and $0.21 per share, respectively. Accordingly, last year's nine months net income and diluted earnings per share including special items were $134.9 million and $3.32, respectively. Sales for the Electronics Marketing Group (EMG EMG abbr. electromyogram Electromyography (EMG) A diagnostic test that records the electrical activity of muscles. ) of $1.20 billion in the third quarter of fiscal 1999 and $3.58 billion in the first nine months of fiscal 1999 were up approximately 5% and 8%, respectively, as compared with sales of $1.14 billion and $3.31 billion, respectively, in the prior year periods. EMG's third quarter fiscal 1999 core sales per day were sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen higher for the second consecutive quarter. EMG's 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. was $50.9 million for the third quarter and $157.7 million, excluding special charges, for the first nine months of fiscal 1999, down 23% and 21%, respectively, as compared with $66.1 million and $201.7 million, respectively, in the prior year periods. The Computer Marketing Group's (CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group ) sales of $403 million for the third quarter of fiscal 1999 and $1.13 billion for the first nine months of fiscal 1999 were up approximately 9% and 10%, respectively, as compared with sales of $371 million and $1.02 billion, respectively, in the prior year periods. CMG's operating income of $7.3 million for the third quarter of fiscal 1999 and $26.3 million for the first nine months of fiscal 1999 were down 50% and 31%, respectively, as compared with $14.6 million and $38.3 million, respectively, in the prior year periods. The prior year first nine month consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. includes the results for Channel Master, which was sold during the second quarter of fiscal 1998. Mr. Vallee, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , noted that the third quarter results reflect the continuation continuation - continuation passing style of weak market conditions in both the electronic component distribution industry and the computer product distribution industry in which CMG does business. He also indicated, however, that gross profit margins 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. stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. at both EMG and CMG with EMG posting the second consecutive quarter of slightly positive gross profit margin improvement. Mr. Vallee further reported that the increase in quarterly sales on both a year-on-year and sequential One after the other in some consecutive order such as by name or number. basis was benefitted by the increase in shipping days and from sales of newly acquired businesses. 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. were also impacted by the increase in business days and by costs associated with the Company's Year 2000 remediation program, which Mr. Vallee stated was on schedule, as well as by normal operating expenses incurred by newly acquired businesses. Mr. Vallee also noted that the percentage decrease in earnings per share as compared with the prior year third quarter was substantially less than the percentage decrease in net income due to the positive impact of the Company's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Headquartered in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. , Avnet, Inc. is a Fortune 500 company with annual sales exceeding $5.9 billion. With sales in 58 countries, Avnet markets, inventories and adds value to the products of the most prestigious electronic components and computer equipment manufacturers for customers worldwide. -0-
AVNET, INC.
INCOME STATEMENT HIGHLIGHTS
(MILLIONS EXCEPT PER SHARE DATA)
THIRD QUARTERS ENDED
APRIL 2, MARCH 27,
1999 1998 % CHANGE
Sales $1,599.2 $1,512.1 + 6%
Operating income 58.2 80.7 - 28%
Net income 25.7 40.7 - 37%
Earnings per share:
Basic $0.73 $1.04 - 30%
Diluted $0.73 $1.03 - 29%
AVNET, INC.
INCOME STATEMENT HIGHLIGHTS
(MILLIONS EXCEPT PER SHARE DATA)
INCLUDING SPECIAL ITEMS (1)(2) NINE MONTHS ENDED
APRIL 2, MARCH 27,
1999 (1) 1998 (2) % CHANGE
Sales $4,707.7 $4,371.7 + 8%
Operating income 157.5 229.5 - 31%
Net income 67.9 134.9 - 50%
Earnings per share:
Basic $1.90 $3.36 - 43%
Diluted $1.88 $3.32 - 43%
EXCLUDING SPECIAL ITEMS (1)(2) NINE MONTHS ENDED
APRIL 2, MARCH 27,
1999 (1) 1998 (2) % CHANGE
Sales $4,707.7 $4,371.7 + 8%
Operating income 184.0 242.8 - 24%
Net income 83.7 126.1 - 34%
Earnings per share:
Basic $2.34 $3.15 - 26%
Diluted $2.32 $3.11 - 25%
(1) Fiscal year 1999 nine month special items consist of the
impact of incremental special charges (recorded in the first quarter)
associated with the reorganization of the Company's Electronics
Marketing Group amounting to $26.5 million pre-tax, $15.7 million
after-tax and $0.43 per share on a diluted basis.
(2) Fiscal year 1998 nine month special items consist of the net
positive impact of $20.5 million pre-tax, $8.7 million after-tax and
$0.21 per share on a diluted basis on the gain on the sale of Channel
Master, offset by costs related to the divestiture of Avnet
Industrial, the closure of the Company's Corporate Headquarters in
Great Neck, NY and the anticipated loss on the sale of Company-owned
real estate.
AVNET, INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
THIRD QUARTERS ENDED
APRIL 2, MARCH 27,
1999 1998
Sales $1,599,226 $1,512,121
Cost of sales 1,355,438 1,259,878
Gross profit 243,788 252,243
Operating expenses 185,610 171,573
Operating income 58,178 80,670
Other income, net 212 757
Interest expense (13,299) (10,620)
Income before income taxes 45,091 70,807
Income taxes 19,355 30,132
Net Income $25,736 $40,675
Earnings per share:
Basic $0.73 $1.04
Diluted $0.73 $1.03
Shares used to compute earnings
per share:
Basic 35,149 39,141
Diluted 35,320 39,598
AVNET, INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
NINE MONTHS ENDED
APRIL 2, MARCH 27,
1999 (1) 1998 (2)
Sales $4,707,731 $4,371,691
Cost of sales 4,003,243 3,631,578
Gross profit 704,488 740,113
Operating expenses 547,008 510,631
Operating income 157,480 229,482
Other income, net 1,658 1,439
Interest expense (39,468) (27,182)
Gain on sale of Channel Master 0 33,795
Income before income taxes 119,670 237,534
Income taxes 51,742 102,674
Net Income $67,928 $134,860
Earnings per share:
Basic $1.90 $3.36
Diluted $1.88 $3.32
Shares used to compute earnings
per share:
Basic 35,736 40,119
Diluted 36,093 40,619
(1) Fiscal year 1999 nine month results shown above include the
impact of incremental special charges (recorded in the first quarter)
associated with the reorganization of the Company's Electronics
Marketing Group amounting to $26.5 million pre-tax, $15.7 million
after-tax and $0.43 per share on a diluted basis. Approximately $18.6
million of the pre-tax charge is included in operating expenses and
$7.9 million is included in cost of sales.
(2) Fiscal year 1998 nine month results shown above include the
gain on the sale of Channel Master amounting to $33.8 million pre-tax,
offset somewhat in operating expenses by costs relating to the
divestiture of Avnet Industrial, the closure of the Company's
Corporate Headquarters in Great Neck, NY and the anticipated loss on
the sale of Company-owned real estate, amounting to $13.3 million in
the aggregate. The effect of these items is to increase income before
income taxes, net income and diluted earnings per share by
approximately $20.5 million, $8.7 million and $0.21 per share,
respectively.
AVNET, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
APRIL 2, JUNE 26,
1999 1998
(unaudited) (audited)
Assets:
Current assets:
Cash and cash equivalents $73,110 $82,607
Receivables 909,320 894,289
Inventories 1,044,841 1,061,739
Other 43,815 29,722
Total current assets 2,071,086 2,068,357
Property, plant & equipment 175,727 155,491
Goodwill 484,488 460,882
Other assets 64,009 48,967
Total assets 2,795,310 2,733,697
Less liabilities:
Current liabilities:
Borrowings due within one year 270 243
Accounts payable 438,245 451,441
Accrued expenses and other 136,232 155,423
Total current liabilities 574,747 607,107
Long-term debt, less due within
one year 920,048 810,695
Total liabilities 1,494,795 1,417,802
Shareholders' equity $1,300,515 $1,315,895
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion