Avnet reports record results for fiscal 1996.GREAT NECK, N.Y.--(BUSINESS WIRE)--Aug. 1, 1996--Avnet Inc. (NYSE NYSE See: New York Stock Exchange : AVT AVT avian arginine vasotocin. See vasotocin. ) reported results today for its fiscal year ended June 28. Sales and net income were up 21 percent and 34 percent, respectively, compared with the prior fiscal year's results. Net income was a record $188.3 million, or $4.31 per share, on record sales of $5.2 billion. This compares with last year's net income of $140.3 million, or $3.32 per share, on sales of $4.3 billion. For the fourth quarter of fiscal 1996, consolidated net income was $48.1 million, up 10 percent from last year's fourth quarter net income of $43.9 million. Earnings per share were $1.10 versus $1.03 per share in last year's fourth quarter. Earnings per share of $1.10 for the current year's fourth quarter were impacted by approximately $.04 per share due to a shortfall in the earnings of the Video Communications Group as a result of adjusting gross profits on certain newer product lines during the prior three fiscal quarters. Sales increased 13 percent to $1.33 billion from sales of $1.18 billion in the prior year's quarter. Leon Machiz, Avnet's 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. , said that the fiscal 1996 results were attributable to record sales and earnings for the Electronic Marketing Group. The Electronic Marketing Group's sales were $5.0 billion, which accounted for 96 percent of the company's consolidated sales, up 29 percent from last year's $3.9 billion. This increase was due to strong sales performance at each unit in the group. Net income for the group was $177.3 million, up 36 percent from last year's $130.6 million. The Video Communications Group's sales, which accounted for 4 percent of consolidated fiscal year sales, were $202.9 million, down 18 percent from last year's $246.0 million. The decline in sales was due to product transitioning from satellite TV decoders to DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. (Direct Broadcast Satellite) business. The group's net income was $11.0 million, compared to the previous year's earnings of $10.1 million. -0- Avnet Inc. Financial Highlights and Statements Fiscal Year Ended June 28, 1996 Page 3 - Fiscal year and fourth quarter highlights 4 - Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. and net income 5 - Consolidated statements of income 6 - Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. The complete financial statements, including notes thereto and the management discussion and analysis, will appear in the company's annual report to shareholders. The information contained herein is derived from such statements. Avnet Inc. Fiscal Year and Fourth Quarter Highlights (millions except per share data) Fiscal Years Ended June 28, June 30, % Change 1996 1995 Sales $5,207.8 $4,300.0 +21% Income before income taxes 325.0 243.4 +34% Net income 188.3 140.3 +34% Earnings per share $ 4.31 $ 3.32 +30% Fourth Quarters Ended June 28, June 30, % Change 1996 1995 Sales $1,329.6 $1,177.7 +13% Income before income taxes 82.8 75.3 +10% Net income 48.1 43.9 +10% Earnings per share $ 1.10 $ 1.03 + 7% Avnet Inc. Group Sales and Net Income Fiscal Years Ended June 28, 1996 and June 30, 1995 (Millions) Sales Net Income Margin % Electronic Marketing 1996 $5,004.9 $177.3 3.5% 1995 $3,873.0 $130.6 3.4% % Change 29% 36% Video Communications 1996 202.9 11.0 5.4% 1995 246.0 10.1 4.1% % Change -18% 9% Electrical & Industrial 1996 NA NA 1995 181.0 (0.4) -0.3% Consolidated 1996 $5,207.8 $ 188.3 3.6% 1995 $4,300.0 $ 140.3 3.3% % Change 21% 34% Avnet Inc. Consolidated Statements of Income (thousands except per share data) Fiscal Years Ended June 28, June 30, 1996 1995 Sales $5,207,797 $4,300,013 Cost of sales 4,238,743 3,483,649 Gross profit 969,054 816,364 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. : Selling, shipping, general and administrative 584,319 526,019 Depreciation and amortization 35,768 28,862 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. 348,967 261,483 Investment and other income, net 1,988 5,066 Interest expense (25,916) (23,175) Income before income taxes 325,039 243,374 Income taxes 136,783 103,101 Net income $188,256 $140,273 Earnings per share $ 4.31 $ 3.32 Avnet Inc. Consolidated Balance Sheets (Thousands) June 28, June 30, 1996 1995 Assets: Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents $47,808 $49,332 Receivables 802,442 713,644 Inventories 935,612 747,477 Other 27,280 13,838 Total current assets 1,813,142 1,524,291 Property, plant & equipment 176,929 145,611 Goodwill 494,666 419,479 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 36,919 36,214 Total assets 2,521,656 2,125,595 Less liabilities: Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Borrowings due within one year 282 493 Accounts payable 353,918 314,887 Accrued expenses and other 165,022 151,820 Total current liabilities 519,222 467,200 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , less due within one year 497,223 419,016 Total liabilities 1,016,445 886,216 Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. $1,505,211 $1,239,379 CONTACT: Avnet Inc., Great Neck Stephanie Wagoner or Raymond Sadowski, 516/466-7000 |
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