Avnet Reports Second Quarter Fiscal 2021 Financial Results
Minggu, 31 Januari 2021 10:31 WIB
Key Financial Metrics
($ in millions, except per share data)
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Second Quarter Results (GAAP) |
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| Dec -- 20 |
| Dec -- 19 |
| Change Y/Y |
| Sep -- 20 |
| Change Q/Q |
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Sales |
| $ | 4,668.2 |
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| $ | 4,534.8 |
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| 2.9 | % |
| $ | 4,723.1 |
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| (1.2) | % |
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Operating Income |
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| 57.2 |
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| 46.5 |
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| 23.1 | % |
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| 18.5 |
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| 209.3 | % |
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Operating Income Margin |
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| 1.2 | % |
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| 1.0 | % |
| 21 | bps |
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| 0.4 | % |
| 84 | bps |
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Diluted Earnings (Loss) Per Share (EPS) |
| $ | 0.19 |
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| $ | 0.05 |
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| 280.0 | % |
| $ | (0.19) |
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| 200.0 | % |
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Second Quarter Results (Non-GAAP)(1) |
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| Dec -- 20 |
| Dec -- 19 |
| Change Y/Y |
| Sep -- 20 |
| Change Q/Q |
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Sales |
| $ | 4,668.2 |
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| $ | 4,534.8 |
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| 2.9 | % |
| $ | 4,723.1 |
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| (1.2) | % |
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Adjusted Operating Income |
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| 79.6 |
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| 82.2 |
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| (3.2) | % |
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| 65.1 |
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| 22.3 | % |
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Adjusted Operating Income Margin |
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| 1.7 | % |
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| 1.8 | % |
| (11) | bps |
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| 1.4 | % |
| 32 | bps |
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Adjusted Diluted Earnings Per Share (EPS) |
| $ | 0.48 |
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| $ | 0.40 |
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| 20.0 | % |
| $ | 0.36 |
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| 33.3 | % |
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Segment and Geographical Mix |
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| Dec -- 20 |
| Dec -- 19 |
| Change Y/Y |
| Sep -- 20 |
| Change Q/Q |
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Electronic Components (EC) Sales |
| $ | 4,342.4 |
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| $ | 4,203.6 |
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| 3.3 | % |
| $ | 4,382.2 |
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| (0.9) | % |
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EC Operating Income Margin |
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| 2.4 | % |
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| 2.2 | % |
| 17 | bps |
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| 1.9 | % |
| 46 | bps |
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Farnell Sales |
| $ | 325.8 |
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| $ | 331.2 |
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| (1.6) | % |
| $ | 340.9 |
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| (4.4) | % |
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Farnell Operating Income Margin |
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| 4.5 | % |
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| 6.0 | % |
| (155) | bps |
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| 3.5 | % |
| 97 | bps |
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Americas Sales |
| $ | 1,101.5 |
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| $ | 1,186.6 |
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| (7.2) | % |
| $ | 1,205.7 |
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| (8.7) | % |
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EMEA Sales |
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| 1,346.3 |
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| 1,425.8 |
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| (5.6) | % |
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| 1,480.7 |
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| (9.1) | % |
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Asia Sales |
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| 2,220.4 |
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| 1,922.4 |
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| 15.5 | % |
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| 2,036.7 |
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| 9.0 | % |
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TI Sales |
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| Dec -- 20 |
| Dec -- 19 |
| Change Y/Y |
| Sep -- 20 |
| Change Q/Q |
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Sales of TI Products |
| $ | 49.6 |
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| $ | 399.2 |
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| (87.6) | % |
| $ | 241.0 |
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| (79.4) | % |
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| Guidance Range |
| Midpoint |
Sales |
| $4.3B -- $4.7B |
| $4.5B |
Non-GAAP Diluted EPS(1) |
| $0.52 -- $0.58 |
| $0.55 |
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| Q3 Fiscal |
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| 2021 |
| Q2 Fiscal |
| Q3 Fiscal |
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| Guidance |
| 2021 |
| 2020 |
Euro |
| $1.21 |
| $1.19 |
| $1.10 |
GBP |
| $1.36 |
| $1.32 |
| $1.28 |
Today's Conference Call and Webcast Details
AVNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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| Second Quarters Ended |
| Six Months Ended | | ||||||||
| | January 2, | | December 28, | | January 2, | | December 28, | | ||||
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| 2021 |
| 2019 |
| 2021 |
| 2019 | | ||||
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| (Thousands, except per share data) | | ||||||||||
Sales |
| $ | 4,668,172 |
| $ | 4,534,806 |
| $ | 9,391,232 |
| $ | 9,164,814 |
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Cost of sales |
| | 4,156,919 |
| | 4,009,193 |
| | 8,363,899 |
| | 8,095,362 |
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Gross profit |
| | 511,253 |
| | 525,613 |
| | 1,027,333 |
| | 1,069,452 |
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Selling, general and administrative expenses |
| | 442,084 |
| | 464,873 |
| | 913,241 |
| | 921,377 |
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Restructuring, integration and other expenses |
| | 11,948 |
| | 14,265 |
| | 38,369 |
| | 38,863 |
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Operating income |
| | 57,221 |
| | 46,475 |
| | 75,723 |
| | 109,212 |
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Other (expense) income, net |
| | (1,333) |
| | (1,963) |
| | (20,831) |
| | 2,969 |
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Interest and other financing expenses, net |
| | (21,485) |
| | (33,904) |
| | (43,787) |
| | (67,535) |
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Income before taxes |
| | 34,403 |
| | 10,608 |
| | 11,105 |
| | 44,646 |
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Income tax expense (benefit) |
| | 15,240 |
| | 6,940 |
| | 10,831 |
| | (774) |
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Net income |
| $ | 19,163 |
| $ | 3,668 |
| $ | 274 |
| $ | 45,420 |
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Earnings per share: |
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Basic |
| $ | 0.19 |
| $ | 0.04 |
| $ | 0.00 |
| $ | 0.45 |
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Diluted |
| $ | 0.19 |
| $ | 0.04 |
| $ | 0.00 |
| $ | 0.44 |
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Shares used to compute earnings per share: |
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Basic |
| | 98,937 |
| | 100,431 |
| | 98,917 |
| | 101,781 |
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Diluted |
| | 99,932 |
| | 101,302 |
| | 99,897 |
| | 102,839 |
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Cash dividends paid per common share |
| $ | 0.21 |
| $ | 0.21 |
| $ | 0.42 |
| $ | 0.42 |
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AVNET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| | January 2, | | June 27, | | ||
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| 2021 |
| 2020 | | ||
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| (Thousands) | | ||||
ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 376,333 |
| $ | 477,038 |
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Receivables, net |
| | 3,105,317 |
| | 2,928,386 |
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Inventories |
| | 2,816,421 |
| | 2,731,988 |
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Prepaid and other current assets |
| | 156,375 |
| | 191,394 |
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Total current assets |
| | 6,454,446 |
| | 6,328,806 |
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Property, plant and equipment, net |
| | 403,270 |
| | 404,607 |
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Goodwill |
| | 834,795 |
| | 773,734 |
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Intangible assets, net |
| | 38,812 |
| | 65,437 |
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Operating lease assets |
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| 284,886 |
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| 275,917 |
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Other assets |
| | 248,104 |
| | 256,696 |
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Total assets |
| $ | 8,264,313 |
| $ | 8,105,197 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Short-term debt |
| $ | 311,800 |
| $ | 51 |
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Accounts payable |
| | 1,935,661 |
| | 1,754,078 |
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Accrued expenses and other |
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| 520,463 |
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| 472,924 |
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Short-term operating lease liabilities |
| | 58,400 |
| | 53,313 |
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Total current liabilities |
| | 2,826,324 |
| | 2,280,366 |
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Long-term debt |
| | 895,639 |
| | 1,424,791 |
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Long-term operating lease liabilities |
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| 259,599 |
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| 253,719 |
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Other liabilities |
| | 372,018 |
| | 419,923 |
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Total liabilities |
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| 4,353,580 |
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| 4,378,799 |
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Shareholders' equity |
| | 3,910,733 |
| | 3,726,398 |
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Total liabilities and shareholders' equity |
| $ | 8,264,313 |
| $ | 8,105,197 |
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AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
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| Six Months Ended | | ||||
| | January 2, 2021 | | December 28, 2019 | | ||
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| (Thousands) | | ||||
Cash flows from operating activities: |
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Net income |
| $ | 274 |
| $ | 45,420 |
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Non-cash and other reconciling items: |
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Depreciation |
| | 44,002 |
| | 49,822 |
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Amortization |
| | 30,474 |
| | 41,257 |
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Amortization of operating lease assets |
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| 28,111 |
| | 31,354 |
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Deferred income taxes |
| | (311) |
| | (15,518) |
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Stock-based compensation |
| | 15,331 |
| | 14,503 |
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Asset impairment expense |
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| 15,166 |
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| -- |
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Other, net |
| | 17,004 |
| | 22,157 |
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Changes in (net of effects from businesses acquired and divested): |
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Receivables |
| | (94,831) |
| | 185,598 |
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Inventories |
| | 51,185 |
| | 94,182 |
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Accounts payable |
| | 130,768 |
| | (52,711) |
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Accrued expenses and other, net |
| | (29,779) |
| | (71,858) |
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Net cash flows provided by operating activities |
| | 207,394 |
| | 344,206 |
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Cash flows from financing activities: |
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Borrowings (repayments) under accounts receivable securitization, net |
| | 11,800 |
| | (35,400) |
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Repayments under senior unsecured credit facility, net |
| | (239,430) |
| | (1,376) |
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Repayments under bank credit facilities and other debt, net |
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| (1,480) |
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| (1,301) |
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Repurchases of common stock |
| | -- |
| | (198,630) |
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Dividends paid on common stock |
| | (41,512) |
| | (42,426) |
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Other, net |
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| (2,301) |
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| (4,887) |
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Net cash flows used for financing activities |
| | (272,923) |
| | (284,020) |
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Cash flows from investing activities: |
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Purchases of property, plant and equipment |
| | (30,022) |
| | (44,252) |
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Acquisitions of assets |
| | (18,371) |
| | (51,509) |
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Other, net |
| | 725 |
| | (13,098) |
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Net cash flows used for investing activities |
| | (47,668) |
| | (108,859) |
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Effect of currency exchange rate changes on cash and cash equivalents |
| | 12,492 |
| | (8,622) |
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Cash and cash equivalents: |
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-- decrease |
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| (100,705) |
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| (57,295) |
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-- at beginning of period |
| | 477,038 |
| | 546,105 |
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-- at end of period |
| $ | 376,333 |
| $ | 488,810 |
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Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted operating expenses, (iii) adjusted other income (expense), (iv) adjusted income tax expense, (v) adjusted income from continuing operations, (vi) adjusted diluted earnings per share from continuing operations, and (vii) sales adjusted for the impact of significant acquisitions and other items (as defined in the Organic Sales section of this document).
There are also references to the impact of foreign currency in the discussion of the Company's results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company's results of operations, results excluding this impact are referred to as "constant currency." Management believes organic sales and sales in constant currency are useful measures for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.
Management believes that operating income and operating expenses adjusted for restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other, are useful measures to help investors better assess and understand the Company's operating performance. This is especially the case 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 or non-cash in nature. Management analyzes operating income and operating expenses without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other.
Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.
Management also believes income tax expense (benefit), net income and diluted earnings (loss) per share adjusted for the impact of the items described above and certain items impacting other income (expense) and income tax expense (benefit) are useful to investors because they provide a measure of the Company's net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustment to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws including recent tax law changes in the U.S., certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the adjusted interim effective tax rate based upon the expected annual adjusted effective tax rate. Additionally, because of management's focus on generating shareholder value, of which net profitability is a primary driver, management believes income from continuing operations and diluted earnings (loss) per share from continuing operations excluding the impact of these items provides an important measure of the Company's net profitability for the investing public.
Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP. All amounts below relate to Avnet's continuing operations.
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| Fiscal |
| Quarters Ended | |||||
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| Year to Date |
| January 2, |
| October 3, | |||
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| | 2021* | | 2021 |
| 2020 | |||
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| ($ in thousands, except per share amounts) | |||||||
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GAAP selling, general and administrative expenses |
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| $ | 913,241 |
| $ | 442,084 |
| $ | 471,158 |
Amortization of intangible assets and other |
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| (30,592) |
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| (10,417) |
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| (20,175) |
Adjusted operating expenses |
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| 882,649 |
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| 431,667 |
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| 450,983 |
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GAAP operating income |
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| $ | 75,723 |
| $ | 57,221 |
| $ | 18,502 |
Restructuring, integration and other expenses |
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| 38,369 |
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| 11,948 |
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| 26,420 |
Amortization of intangible assets and other |
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| 30,592 |
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| 10,417 |
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| 20,175 |
Adjusted operating income |
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| 144,683 |
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| 79,586 |
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| 65,097 |
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GAAP income (loss) before income taxes |
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| $ | 11,105 |
| $ | 34,403 |
| $ | (23,297) |
Restructuring, integration and other expenses |
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| 38,369 |
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| 11,948 |
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| 26,420 |
Amortization of intangible assets and other |
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| 30,592 |
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| 10,417 |
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| 20,175 |
Other expenses - equity investment impairments |
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| 15,274 |
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| 51 |
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| 15,223 |
Adjusted income before income taxes |
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| 95,340 |
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| 56,819 |
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| 38,521 |
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GAAP income tax expense (benefit) |
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| $ | 10,831 |
| $ | 15,240 |
| $ | (4,408) |
Restructuring, integration and other expenses |
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| 7,178 |
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| 2,577 |
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| 4,601 |
Amortization of intangible assets and other |
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| 7,066 |
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| 2,037 |
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| 5,029 |
Other expenses - equity investment impairments |
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| 52 |
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| 26 |
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| 26 |
Income tax expense items, net |
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| (13,498) |
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| (10,788) |
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| (2,710) |
Adjusted income tax expense |
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| 11,629 |
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| 9,092 |
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| 2,538 |
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GAAP net income (loss) |
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| $ | 274 |
| $ | 19,163 |
| $ | (18,889) |
Restructuring, integration and other expenses (net of tax) |
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| 31,191 |
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| 9,371 |
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| 21,819 |
Amortization of intangible assets and other (net of tax) |
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| 23,526 |
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| 8,380 |
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| 15,146 |
Other expenses - equity investment impairments (net of tax) |
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| 15,222 |
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| 25 |
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| 15,197 |
Income tax expense items, net |
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| 13,498 |
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| 10,788 |
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| 2,710 |
Adjusted net income |
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| 83,711 |
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| 47,727 |
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| 35,983 |
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GAAP diluted earnings (loss) per share |
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| $ | $ 0.00 |
| $ | 0.19 |
| $ | (0.19) |
Restructuring, integration and other expenses (net of tax) |
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| 0.31 |
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| 0.09 |
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| 0.22 |
Amortization of intangible assets and other (net of tax) |
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| 0.24 |
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| 0.09 |
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| 0.15 |
Other expenses - equity investment impairments (net of tax) |
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| 0.15 |
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| - |
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| 0.15 |
Income tax expense items, net |
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| 0.14 |
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| 0.11 |
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| 0.03 |
Adjusted diluted EPS |
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| 0.84 |
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| 0.48 |
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| 0.36 |
* May not foot/cross foot due to rounding and differences in average diluted shares between quarterly periods compared to the fiscal year to date.
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| Quarters Ended | |||||||||||
| Fiscal Year |
| June 27, |
| March 28, |
| December 29, |
| September 29, | |||||
| 2020* | | 2020* |
| 2020* |
| 2019* |
| 2019* | |||||
| ($ in thousands, except per share amounts) | |||||||||||||
GAAP selling, general and administrative expenses | $ | 1,842,122 |
| $ | 451,099 |
| $ | 469,646 |
| $ | 464,873 |
| $ | 456,503 |
Amortization of intangible assets and other |
| (81,555) |
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| (18,952) |
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| (21,071) |
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| (21,454) |
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| (20,078) |
Adjusted operating expenses |
| 1,760,567 |
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| 432,147 |
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| 448,576 |
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| 443,419 |
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| 436,426 |
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GAAP operating (loss) income | $ | (4,628) |
| $ | 1,920 |
| $ | (115,760) |
| $ | 46,475 |
| $ | 62,738 |
Restructuring, integration and other expenses |
| 81,870 |
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| 23,796 |
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| 19,211 |
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| 14,265 |
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| 24,598 |
Goodwill and intangible asset impairment expenses (benefits) |
| 144,092 |
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| (1,744) |
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| 145,836 |
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| - |
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| - |
Amortization of intangible assets and other |
| 81,555 |
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| 18,952 |
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| 21,071 |
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| 21,454 |
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| 20,078 |
Adjusted operating income |
| 302,889 |
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| 42,924 |
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| 70,358 |
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| 82,194 |
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| 107,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) income before income taxes | $ | (128,107) |
| $ | (16,144) |
| $ | (158,086) |
| $ | 12,086 |
| $ | 34,038 |
Restructuring, integration and other expenses |
| 81,870 |
|
| 23,796 |
|
| 19,211 |
|
| 14,265 |
|
| 24,598 |
Goodwill and intangible asset impairment expenses (benefits) |
| 144,092 |
|
| (1,744) |
|
| 145,836 |
|
| - |
|
| - |
Amortization of intangible assets and other |
| 81,555 |
|
| 18,952 |
|
| 21,071 |
|
| 21,454 |
|
| 20,078 |
Other expenses and early debt redemption |
| 21,582 |
|
| 2,054 |
|
| 15,526 |
|
| 4,002 |
|
| - |
Adjusted income before income taxes |
| 200,992 |
|
| 26,914 |
|
| 43,558 |
|
| 51,807 |
|
| 78,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax expense (benefit) | $ | (98,574) |
| $ | (68,304) |
| $ | (29,425) |
| $ | 6,870 |
| $ | (7,714) |
Restructuring, integration and other expenses |
| 18,648 |
|
| 4,659 |
|
| 4,372 |
|
| 3,377 |
|
| 6,240 |
Goodwill and intangible asset impairment expenses |
| 6,433 |
|
| 207 |
|
| 6,226 |
|
| - |
|
| - |
Amortization of intangible assets and other |
| 16,119 |
|
| 3,613 |
|
| 4,307 |
|
| 3,964 |
|
| 4,235 |
Other expenses and early debt redemption |
| 6,238 |
|
| 506 |
|
| 4,992 |
|
| 740 |
|
| - |
Income tax benefit (expense) items, net |
| 47,655 |
|
| 22,996 |
|
| 15,119 |
|
| (4,071) |
|
| 13,611 |
Adjusted income tax (benefit) expense |
| (3,481) |
|
| (36,323) |
|
| 5,591 |
|
| 10,880 |
|
| 16,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income | $ | (29,533) |
| $ | 52,160 |
| $ | (128,661) |
| $ | 5,216 |
| $ | 41,752 |
Restructuring, integration and other expenses (net of tax) |
| 63,222 |
|
| 19,137 |
|
| 14,839 |
|
| 10,888 |
|
| 18,358 |
Goodwill and intangible asset impairment expenses (benefits) (net of tax) |
| 137,659 |
|
| (1,951) |
|
| 139,610 |
|
| - |
|
| - |
Amortization of intangible assets and other (net of tax) |
| 65,436 |
|
| 15,339 |
|
| 16,764 |
|
| 17,490 |
|
| 15,843 |
Other expenses and early debt redemption (net of tax) |
| 15,344 |
|
| 1,548 |
|
| 10,534 |
|
| 3,262 |
|
| - |
Income tax (benefit) expense items, net |
| (47,655) |
|
| (22,996) |
|
| (15,119) |
|
| 4,071 |
|
| (13,611) |
Adjusted net income |
| 204,473 |
|
| 63,237 |
|
| 37,967 |
|
| 40,927 |
|
| 62,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted (loss) earnings per share | $ | (0.29) |
| $ | 0.53 |
| $ | (1.29) |
| $ | 0.05 |
| $ | 0.40 |
Restructuring, integration and other expenses (net of tax) |
| 0.63 |
|
| 0.19 |
|
| 0.15 |
|
| 0.11 |
|
| 0.18 |
Goodwill and intangible asset impairment expenses (benefits) (net of tax) |
| 1.37 |
|
| (0.02) |
|
| 1.39 |
|
| - |
|
| - |
Amortization of intangible assets and other (net of tax) |
| 0.65 |
|
| 0.15 |
|
| 0.17 |
|
| 0.17 |
|
| 0.15 |
Other expenses and early debt redemption (net of tax) |
| 0.15 |
|
| 0.02 |
|
| 0.11 |
|
| 0.03 |
|
| - |
Income tax (benefit) expense items, net |
| (0.47) |
|
| (0.23) |
|
| (0.15) |
|
| 0.04 |
|
| (0.13) |
Adjusted diluted EPS |
| 2.04 |
|
| 0.64 |
|
| 0.38 |
|
| 0.40 |
|
| 0.60 |
* May not foot/cross foot due to rounding and differences in average diluted shares between quarterly periods compared to the fiscal year to date.
Sales of TI Products
In December, the termination of the Company's electronic components distribution agreement with Texas Instruments ("TI") was completed. Sales of TI products by quarter are outlined in the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Second Quarter |
| First Quarter |
| Fourth Quarter |
| Third Quarter |
| Second Quarter | |||||
|
| January 2, |
| October 3, |
| June 27, |
| March 28, |
| December 28, | |||||
|
| 2021 |
| 2020 |
| 2020 |
| 2020 |
| 2019 | |||||
|
| (in millions) | |||||||||||||
Sales of TI Products |
| $ | 49.6 |
| $ | 241.0 |
| $ | 322.5 |
| $ | 400.6 |
| $ | 399.2 |
Organic Sales
Organic sales is defined as sales adjusted for the impact of significant acquisitions, divestitures and other items by adjusting Avnet's prior and current periods (if necessary) to include the sales of acquired businesses and exclude the sales of divested businesses as if the acquisitions and divestitures had occurred at the beginning of the earliest period presented. Additionally, fiscal 2021 sales are adjusted for the estimated impact of the extra week of sales in the first quarter of fiscal 2021 due to the 14-week fiscal first quarter and the 53-week fiscal year. Organic sales in constant currency is defined as organic sales (as defined above) excluding the impact of changes in foreign currency exchange rates.
As a result of declining sales due to the termination of the TI distribution agreement discussed further above, organic sales growth rates have also been adjusted to exclude sales of TI products.
The following table presents the reconciliation of reported sales to organic sales for the second quarter and first six months of fiscal 2021.
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
| Quarter Ended |
| Six Months Ended | |||||||||||||||||||||
|
| Sales |
|
|
|
| Organic |
|
|
|
|
|
|
|
|
|
|
|
| Organic | ||||
|
| As Reported |
|
|
| Sales |
| Sales |
|
|
| Organic |
|
|
| Sales | ||||||||
|
| and Organic |
| TI Sales |
| Adj for TI |
| As Reported |
| Estimated |
| Sales |
| TI Sales |
| Adj for TI | ||||||||
|
| Q2-Fiscal |
| Q2-Fiscal |
| Q2-Fiscal |
| Q2-Fiscal |
| Extra |
| Q2-Fiscal |
| Q2-Fiscal |
| Q2-Fiscal | ||||||||
| | 2021 | | 2021(1) | | 2021(1) | | 2021 | | Week(2) | | 2021 | | 2021(1) | | 2021(1) | ||||||||
|
| (in millions) | ||||||||||||||||||||||
Avnet |
| $ | 4,668.2 |
| $ | 49.6 |
| $ | 4,618.6 |
| $ | 9,391.2 |
| $ | 306.0 |
| $ | 9,085.2 |
| $ | 290.6 |
| $ | 8,794.6 |
Avnet by region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
| $ | 1,101.5 |
| $ | 14.0 |
| $ | 1,087.5 |
| $ | 2,307.1 |
| $ | 77.0 |
| $ | 2,230.1 |
| $ | 82.5 |
| $ | 2,147.6 |
EMEA |
| | 1,346.3 |
| | 20.8 |
| | 1,325.5 |
| | 2,827.0 |
| | 97.0 |
| | 2,730.0 |
| | 123.7 |
| | 2,606.3 |
Asia |
| | 2,220.4 |
| | 14.8 |
| | 2,205.6 |
| | 4,257.1 |
| | 132.0 |
| | 4,125.1 |
| | 84.4 |
| | 4,040.7 |
Avnet by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
EC |
| $ | 4,342.4 |
| $ | 49.6 |
| $ | 4,292.8 |
| $ | 8,724.5 |
| $ | 284.0 |
| $ | 8,440.5 |
| $ | 290.6 |
| $ | 8,149.9 |
Farnell |
| | 325.8 |
| | -- |
| | 325.8 |
| | 666.7 |
| | 22.0 |
| | 644.7 |
| | -- |
| | 644.7 |
(1) Sales adjusted for the impact of the termination of the TI distribution contract.
(2) The impact of the additional week of sales in the first quarter of fiscal 2021 is estimated.
The following table presents reported and organic sales growth rates for the second quarter and first six months of fiscal 2021 compared to fiscal 2020.
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|
|
|
|
|
|
|
|
|
|
| Quarter Ended |
| Six Months Ended |
| |||||||||||||||||||
|
|
|
|
| Sales |
| Organic |
|
|
|
|
|
|
|
|
|
|
| Organic | |||||
|
|
|
|
| As Reported |
| Sales |
|
|
|
| Sales |
|
|
|
| Organic |
| Sales | |||||
|
| Sales |
|
| and Organic |
| Adj for TI |
|
|
|
| As Reported |
|
|
|
| Sales |
| Adj for TI | |||||
|
| As Reported |
| Year-Year % |
| Year-Year % |
| Sales |
| Year-Year % |
| Organic |
| Year-Year % |
| Year-Year % | ||||||||
|
| and Organic |
| Change in |
| Change in |
| As Reported |
| Change in |
| Sales |
| Change in |
| Change in | ||||||||
|
| Year-Year |
| Constant |
| Constant |
| Year-Year |
| Constant |
| Year-Year |
| Constant |
| Constant | ||||||||
| | % Change | | Currency | | Currency(1) | | % Change | | Currency | | % Change | | Currency | | Currency(1) | ||||||||
Avnet |
| 2.9 | % |
| 0.7 | % |
| 9.3 | % |
| 2.5 | % |
| 0.7 | % |
| (0.9) | % | | (2.7) | % | | 3.7 | % |
Avnet by region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
| (7.2) | % |
| (7.2) | % |
| (0.5) | % |
| (4.0) | % |
| (4.0) | % |
| (7.2) | % | | (7.2) | % | | (2.7) | % |
EMEA |
| (5.6) |
|
| (11.4) |
|
| (4.5) |
|
| (2.4) |
|
| (7.4) |
|
| (5.8) |
| | (10.8) |
| | (6.2) |
|
Asia |
| 15.5 |
|
| 14.6 |
|
| 25.7 |
|
| 10.1 |
|
| 9.6 |
|
| 6.7 |
| | 6.2 |
| | 15.1 |
|
Avnet by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
EC |
| 3.3 | % |
| 1.1 | % |
| 10.5 | % |
| 2.7 | % |
| 0.9 | % |
| (0.7) | % | | (2.4) | % | | 4.5 | % |
Farnell |
| (1.6) |
|
| (4.5) |
|
| (4.5) |
|
| (0.1) |
|
| (2.5) |
|
| (3.3) |
| | (5.8) |
| | (5.8) |
|
(1) Sales growth rates excluding the impact of the termination of the TI distribution agreement.
Historical Segment Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fiscal 2021 | |||||
|
| Fiscal |
| Second Quarter |
| First Quarter | |||
|
| Year to Date |
| January 2, |
| October 3, | |||
|
| 2021* |
| 2021 |
| 2020 | |||
|
| (in millions) | |||||||
Sales: |
|
|
|
|
|
|
|
|
|
Electronic Components |
| $ | 8,724.5 |
| $ | 4,342.4 |
| $ | 4,382.2 |
Farnell |
|
| 666.7 |
|
| 325.8 |
|
| 340.9 |
Avnet sales |
| $ | 9,391.2 |
| $ | 4,668.2 |
| $ | 4,723.1 |
|
|
|
|
|
|
|
|
|
|
Operating income: |
|
|
|
|
|
|
|
|
|
Electronic Components |
| $ | 188.4 |
| $ | 103.9 |
| $ | 84.4 |
Farnell |
|
| 26.6 |
|
| 14.6 |
|
| 12.0 |
|
|
| 215.0 |
|
| 118.5 |
|
| 96.4 |
Corporate expenses |
|
| (70.3) |
|
| (39.0) |
|
| (31.3) |
Restructuring, integration and other expenses |
|
| (38.4) |
|
| (11.9) |
|
| (26.4) |
Amortization of acquired intangible assets and other |
|
| (30.6) |
|
| (10.4) |
|
| (20.2) |
Avnet operating income |
| $ | 75.7 |
| $ | 57.2 |
| $ | 18.5 |
|
|
|
|
|
|
|
|
|
|
Sales by geographic area: |
|
|
|
|
|
|
|
|
|
Americas |
| $ | 2,307.1 |
| $ | 1,101.5 |
| $ | 1,205.7 |
EMEA |
|
| 2,827.0 |
|
| 1,346.3 |
|
| 1,480.7 |
Asia |
|
| 4,257.1 |
|
| 2,220.4 |
|
| 2,036.7 |
Avnet sales |
| $ | 9,391.2 |
| $ | 4,668.2 |
| $ | 4,723.1 |
* May not foot/cross foot due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| Fiscal Year 2020 | |||||||||||
|
|
|
| Quarters Ended | |||||||||||
|
|
|
| Fourth Quarter |
| Third Quarter |
| Second Quarter |
| First Quarter | |||||
|
| Fiscal Year |
| June 27, |
| March 28, |
| December 28, |
| September 28, | |||||
|
| 2020* |
| 2020* |
| 2020* |
| 2019 |
| 2019 | |||||
|
| (in millions) | |||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Components |
| $ | 16,340.1 |
| $ | 3,867.6 |
| $ | 3,974.7 |
| $ | 4,203.6 |
| $ | 4,294.2 |
Farnell |
|
| 1,294.2 |
|
| 292.1 |
|
| 335.1 |
|
| 331.2 |
|
| 335.8 |
Avnet |
| $ | 17,634.3 |
| $ | 4,159.7 |
| $ | 4,309.8 |
| $ | 4,534.8 |
| $ | 4,630.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electronic Components |
| $ | 349.1 |
| $ | 58.9 |
| $ | 84.8 |
| $ | 93.1 |
| $ | 112.3 |
Farnell |
|
| 75.5 |
|
| 10.4 |
|
| 23.4 |
|
| 20.0 |
|
| 21.8 |
|
|
| 424.6 |
|
| 69.3 |
|
| 108.2 |
|
| 113.1 |
|
| 134.1 |
Corporate expenses |
|
| (121.6) |
|
| (26.3) |
|
| (37.8) |
|
| (30.9) |
|
| (26.7) |
Restructuring, integration and other expenses |
|
| (81.9) |
|
| (23.8) |
|
| (19.2) |
|
| (14.3) |
|
| (24.6) |
Goodwill and intangible asset impairment expenses |
|
| (144.1) |
|
| 1.7 |
|
| (145.8) |
|
| - |
|
| - |
Amortization of acquired intangible assets and other |
|
| (81.6) |
|
| (19.0) |
|
| (21.1) |
|
| (21.4) |
|
| (20.1) |
Avnet operating (loss) income |
| $ | (4.6) |
| $ | 1.9 |
| $ | (115.8) |
| $ | 46.5 |
| $ | 62.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by geographic area: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
| $ | 4,755.3 |
| $ | 1,149.3 |
| $ | 1,203.6 |
| $ | 1,186.6 |
| $ | 1,215.8 |
EMEA |
|
| 5,753.4 |
|
| 1,344.2 |
|
| 1,512.5 |
|
| 1,425.8 |
|
| 1,470.9 |
Asia |
|
| 7,125.6 |
|
| 1,666.2 |
|
| 1,593.7 |
|
| 1,922.4 |
|
| 1,943.3 |
Avnet |
| $ | 17,634.3 |
| $ | 4,159.7 |
| $ | 4,309.8 |
| $ | 4,534.8 |
| $ | 4,630.0 |
* May not foot/cross foot due to rounding
Guidance Reconciliation
The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the third quarter of fiscal 2021.
|
|
|
|
|
|
|
|
|
| Low End of |
| High End of |
| ||
| | Guidance Range | | Guidance Range | | ||
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share guidance |
| $ | 0.52 |
| $ | 0.58 |
|
Restructuring, integration and other expense (net of tax) |
| | (0.12) |
| | (0.08) |
|
Amortization of intangibles and other (net of tax) |
| | (0.09) |
| | (0.07) |
|
Income tax expense adjustments |
|
| (0.05) |
|
| 0.05 |
|
GAAP diluted earnings per share guidance |
| $ | 0.26 |
| $ | 0.48 |
|
