Avnet, Inc. Reports Third Quarter Fiscal Year 2013 Results

  Avnet, Inc. Reports Third Quarter Fiscal Year 2013 Results

                  Continues on Path Towards Long-Term Goals

Business Wire

PHOENIX -- April 25, 2013

Avnet, Inc. (NYSE:AVT) today announced results for the third quarter fiscal
year 2013 ended March 30, 2013.

Q3 Fiscal 2013 Results

                                                           
                                  THIRD QUARTERS ENDED
                                                                 
                                  March 30,       March 31,
                                     2013          2012        Change
                                  $ in millions, except for per share data
Sales                             $   6,298.7     $  6,280.6     0.3    %
                                                                 
GAAP Operating Income                 167.6          216.8       -22.7  %
Adjusted Operating Income (1)         195.0          235.4       -17.2  %
                                                                 
GAAP Net Income                       86.2           147.6       -41.6  %
Adjusted Net Income (1)               125.4          151.6       -17.3  %
                                                                 
                                                                 
GAAP Diluted EPS                  $   0.62        $  1.00        -38.0  %
Adjusted Diluted EPS (1)          $   0.90        $  1.03        -12.6  %
                                                                 

^(1) A reconciliation of non-GAAP financial measures to GAAP financial
measures is presented in the Non-GAAP Financial Information section in this
press release.

  *Sales for the quarter ended March 30, 2013 were essentially flat year over
    year at $6.30 billion; pro forma revenue declined 4.8% year over year and
    4.4% in constant currency
  *Gross profit margin of 12.0% increased 53 basis points sequentially and
    was essentially flat with the year ago quarter
  *Adjusted operating income of $195.0 million declined 17.2% year over year
    and adjusted operating income margin of 3.1% declined 65 basis points
  *Adjusted diluted earnings per share was $0.90, down 12.6% year over year

Rick Hamada, Chief Executive Officer, commented, “Our team delivered both top
and bottom line results that met our expectations and were generally in line
with normal seasonal patterns while we continue to navigate through an ongoing
uneven economic recovery. On a regional basis, both operating groups
experienced year-over-year organic revenue declines in the higher-margin
western regions for the fifth consecutive quarter. Strongly influenced by
this, our adjusted operating income margin declined 65 basis points year over
year and adjusted earnings per share declined 12.6%. As a result, we are
continuing to drive actions for margin improvement including new annualized
cost reductions of approximately $40 million that are expected to be completed
by the end of our fourth fiscal quarter. This will now bring our cumulative
cost reductions in fiscal 2013 to approximately $140 million. While these cost
reductions are designed to contribute to improving our operating income
margins, the rate of improvement will depend on market trends going forward.
We remain positioned to leverage future growth into higher margins and
returns, and are committed to drive continued progress toward our long-term
goals across our portfolio no matter what course the recovery takes.”

Avnet Electronics Marketing Results

                                          Year-over-Year Growth Rates
                              Q3 FY13         Reported         Pro Forma
                              Revenue         Revenue           Revenue
                              (in millions)
  EM Total                    $  3,797.2          1.1    %      -2.2   %
  Excluding FX (1)                                1.6    %      -1.7   %
  Americas                    $  1,320.1          -9.5   %      -12.3  %
  EMEA                        $  1,100.1          0.8    %      -0.7   %
  Excluding FX (1)                                0.0    %      -1.4   %
 Asia                        $  1,377.0          14.1   %      8.4    %
                                                                
                                                                
                              Q3 FY13         Q3 FY12           Change
  Operating Income            $  162.1        $   194.3         -16.6  %
  Operating Income Margin        4.3     %        5.2    %      -90 bps
                                                                

(1) Year-over-year revenue growth rate excluding the impact of changes in
foreign currency exchange rates.

  *Reported revenue increased 1.1% year over year to $3.80 billion; pro forma
    revenue declined 2.2% year over year and 1.7% in constant dollars
  *Operating income margin decreased 90 basis points year over year to 4.3%
    due primarily to the slower recovery, and resulting lower profitability in
    the western regions; operating income margin increased 46 basis points
    sequentially due to the seasonal strength in the western regions
  *Working capital (defined as receivables plus inventory less accounts
    payables) was essentially flat on a sequential basis and declined by
    almost 3% from the prior year; inventory turns and working capital
    velocity improved both sequentially and year over year
  *Return on working capital (ROWC) increased 362 basis points sequentially
    due to higher operating income in the seasonally strong March quarter and
    was down 375 basis points year over year due primarily to lower operating
    income

Mr. Hamada added, “In the March quarter, EM’s pro forma revenue increased 2.9%
sequentially, which is below the low end of our typical seasonal growth of 4%
to 7%. The EMEA region delivered its typically strong March quarter as pro
forma revenue grew 18% sequentially in constant dollars while the Americas
region was up 3% and Asia declined 8%. The seasonal mix shift to the western
regions and the related gross profit margin improvement combined to drive
operating income up 16% sequentially as operating income margin improved 46
basis points to 4.3%. On a year-over-year basis, operating income margin was
down 90 basis points primarily due to the slower pace of recovery in the
western regions and increased competitive pressure in the EMEA region. While
our book to bill ratio closed slightly above parity in all three regions, we
continue to operate in a supply chain environment characterized by relatively
short and stable lead times that encourages customers to take a conservative
approach to managing inventory. As previously mentioned, we stay committed to
portfolio actions that align resources with local market conditions and
continue our progress toward our long-term goals.”

Avnet Technology Solutions Results

                                         Year-over-Year Growth Rates
                            Q3 FY13         Reported        Pro Forma
                            Revenue         Revenue          Revenue
                            (in millions)
TS Total                    $  2,501.5          -0.9  %      -8.4    %
Excluding FX (1)                                -0.8  %      -8.3    %
Americas                    $  1,300.1          -5.1  %      -7.6    %
EMEA                        $  783.0            5.1   %      -14.6   %
Excluding FX (1)                                5.1   %      -14.6   %
Asia                        $  418.4            2.2   %      3.1     %
                                                             
                                                             
                            Q3 FY13         Q3 FY12          Change
Operating Income            $  62.8         $   67.9         -7.5    %
Operating Income Margin        2.5     %        2.7   %      -18 bps
                                                             

(1) Year-over-year revenue growth rate excluding the impact of changes in
foreign currency exchange rates.

  *Reported revenue declined 0.9% year over year to $2.5 billion and pro
    forma revenue decreased 8.4% in reported dollars and 8.3% in constant
    dollars
  *Operating income margin decreased by 18 basis points year over year due
    primarily to a decline in the EMEA region
  *Return on working capital (ROWC) decreased 439 basis points year over year
    primarily due to lower operating income
  *Storage, services, and networking and security grew year over year
    partially offset by declines in servers and computing components

Mr. Hamada further added, “Even as TS experienced its typical sequential
decline coming off the seasonally strong December quarter, pro forma revenue
declined over 8% year over year due to continued sluggish growth in the
western regions. Pro forma revenue in the EMEA region declined 15% year over
year while the Americas region was down 8%. Even with this revenue decline in
the western regions, TS operating income margin declined only 18 basis points
year over year as both EMEA and the Americas region increased gross profit
margin and benefitted from cost reduction actions taken in response to
business conditions. In an IT market experiencing disparate revenue trends by
region, TS continues to make good progress toward our long-term goals while
positioning for future growth. In the Americas, our VAR partners are embracing
the investments we have made in new services businesses while the integration
of Magirus’ customer facing resources in Europe provides an enhanced platform
to capitalize on cross selling opportunities including enhanced offerings in
converged solutions. With expanded capabilities focused on high growth
technologies and a broader suite of services offerings, we feel strongly that
we can increase the value we bring to the channel and build on this
performance.”

Cash Flow/Buyback

  *Cash generated from operations was $22.0 million for the quarter and $689
    million on a rolling four quarter basis
  *Cash and cash equivalents at the end of the quarter was $821 million; net
    debt (total debt less cash and cash equivalents) was $1.26 billion
  *Under the $750 million stock repurchase program, the Company repurchased
    6.6 million shares during the first nine months of fiscal 2013 at an
    aggregate cost of $200 million. At the end of the fiscal third quarter,
    the Company had approximately $225 million remaining in the program.

Kevin Moriarty, Chief Financial Officer, stated, "Even though the
macroeconomic environment remains a challenge, the team has done an effective
job of managing working capital and continues to be proactive on efficiency
and expense actions. Electronics Marketing's continued working capital
discipline was somewhat offset by the typical seasonal usage at Technology
Solutions resulting in overall cash flow generated from operations of $22
million for the quarter. This brings cash flow generated from operations to
$689 million over the last four quarters. Even though the end markets continue
to be challenging, our profitability and consistent cash flow generation
remain strong, providing us with opportunities to capitalize on new
value-creating acquisitions as well as future investments in our own stock."

Outlook for 4th Quarter of Fiscal 2013 Ending on June 30, 2013

  *EM sales are expected to be in the range of $3.70 billion to $4.0 billion
    and TS sales are expected to be between $2.45 billion and $2.75 billion
  *Consolidated sales are forecasted to be between $6.15 billion and $6.75
    billion
  *Adjusted diluted earnings per share (“EPS”) is expected to be in the range
    of $0.90 to $1.00 per share
  *The EPS guidance assumes 139 million average diluted shares outstanding
    used to determine earnings per share and a tax rate of 27% to 31%

The above EPS guidance does not include any potential restructuring charges or
any charges related to acquisitions and post-closing integration activities.
In addition, the above guidance assumes that the average Euro to U.S. Dollar
currency exchange rate for the fourth quarter of fiscal 2013 is $1.31 to
€1.00. This compares with an average exchange rate of $1.28 to €1.00 in the
fourth quarter of fiscal 2012 and $1.32 to €1.00 in the third quarter of
fiscal 2013.

Forward-Looking Statements

This document contains certain "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements are based on
management's current expectations and are subject to uncertainty and changes
in facts and circumstances. The forward-looking statements herein include
statements addressing future financial and operating results of Avnet and may
include words such as "will," "anticipate," "estimate," "forecast," "expect,"
believe," and "should," and other words and terms of similar meaning in
connection with any discussions of future operating or financial performance,
business prospects or market conditions. 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 and to generate additional
cash flow, risks associated with any acquisition activities and the successful
integration of acquired companies, declines in sales, changes in business
conditions and the economy in general, changes in market demand and pricing
pressures, any material changes in the allocation of product or product
rebates by suppliers, allocations of products by suppliers, other competitive
and/or regulatory 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-Q and Form 8-K. Except as required by
law, 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
with generally accepted accounting principles in the United States (“GAAP”),
the Company also discloses in this document certain non-GAAP financial
information including adjusted operating income, adjusted net income and
adjusted diluted earnings per share, as well as revenue adjusted for the
impact of acquisitions and other items (as defined in the Pro forma (Organic)
Revenue section of this document). Management believes pro forma revenue is a
useful measure for evaluating current period performance as compared with
prior periods and for understanding underlying trends.

Management believes that operating income adjusted for restructuring,
integration and other items is a useful measure to help investors better
assess and understand the Company’s 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 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 some cases, for
measuring performance for compensation purposes.

Management believes net income and EPS adjusted for the impact of the items
described above 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
and EPS excluding the impact of these items provides an important measure of
the Company’s net results of operations for the investing public.

Other metrics management monitors in its assessment of business performance
include return on working capital (ROWC), return on capital employed (ROCE)
and working capital velocity (WC velocity).

  *ROWC is defined as annualized operating income, excluding restructuring,
    integration and other items, divided by the sum of the monthly average
    balances of receivables and inventory less accounts payable.
  *ROCE is defined as annualized, tax effected operating income, excluding
    restructuring, integration and other items, divided by the monthly average
    balances of interest-bearing debt and equity (including the impact of
    restructuring, integration, impairment charges and other items) less cash
    and cash equivalents.
  *WC velocity is defined as annualized sales divided by the sum of the
    monthly average balances of receivable and inventory less accounts
    payable.

Any analysis of results and outlook on a non-GAAP basis should be used as a
complement to, and in conjunction with, data presented in accordance with
GAAP.

Third Quarter Fiscal 2013

                           Third Quarter Ended Fiscal 2013
                                                                 Diluted
                            Op Income     Pre-tax       Net Income     EPS
                           $ in thousands, except per share data
GAAP results                $ 167,610     $ 144,375     $  86,196      $  0.62
Restructuring,
integration and other         27,341        27,341         25,786         0.18
charges
Income tax adjustments       -            -             13,371        0.10
Total adjustments            27,341       27,341        39,157        0.28
Adjusted results            $ 194,951     $ 171,716     $  125,353     $  0.90
                                                                          

Items impacting the third quarter of fiscal 2013 consisted of the following:

  *Restructuring, integration and other charges of $27.3 million pre-tax
    consisted of $14.9 million for integration-related costs of which $8.8
    million related to the exit of two multi-employer pension plans in Japan,
    $14.6 million for severance, a credit of $10.8 million for acquisition
    related charges of which $11.2 million related to the reversal of an
    earn-out liability, $7.1 million for other charges of which $6.6 million
    related to the exit of a non-integrated business, $2.2 million for
    facility exit-related costs, and a credit of $0.6 million to adjust prior
    year restructuring reserves no longer required.
  *An income tax adjustment of $13.4 million primarily related to the
    increase to a valuation allowance against existing deferred tax assets and
    increases to tax reserves.

Third Quarter Fiscal 2012

                     Third Quarter Ended Fiscal 2012
                                                               Diluted
                       Op Income     Pre-tax         Net Income      EPS
                      $ in thousands, except per share data
GAAP results           $ 216,774     $ 200,923       $ 147,562       $ 1.00
Restructuring,
integration and          18,609        18,609          13,691          0.10
other charges
Gain on bargain          -             (4,460  )       (4,460  )       (0.03 )
purchase
Income tax              -            -             (5,168  )      (0.04 )
adjustments
Total adjustments      18,609       14,149        4,063         0.03  
Adjusted results       $ 235,383     $ 215,072      $ 151,625      $ 1.03  
                                                                             

Items impacting the third quarter of fiscal 2012 consisted of the following:

  *Restructuring, integration and other charges of $18.6 million pre-tax
    related to cost reduction actions initiated during the third quarter and
    acquisition and integration charges associated with acquired businesses.
    The charges consisted of $6.7 million for severance, $3.1 million for
    facility exit costs and fixed asset write downs, $4.0 million for
    integration costs, $4.2 million for acquisition transaction costs, $1.4
    million for other restructuring charges, and a reversal of $0.8 million to
    adjust prior year restructuring reserves;
  *a gain on the bargain purchase of $4.5 million pre- and after tax related
    to the acquisition of Unidux Electronics Limited (Singapore) for which the
    gain was not taxable; and
  *an income tax adjustment of $5.2 million related primarily to the
    combination of favorable audit settlements, certain reserve releases and
    the release of a valuation allowance on deferred tax assets which were
    determined to be realizable.

Pro Forma (Organic) Revenue

Pro forma or Organic revenue is defined as reported revenue adjusted for (i)
the impact of acquisitions by adjusting Avnet’s prior periods to include the
sales of businesses acquired as if the acquisitions had occurred at the
beginning of fiscal 2012 (ii) the impact of a divestiture of a small business
in TS Asia, and (iii) the impact of the transfer of a business from TS
Americas to EM Americas, which did not have an impact to Avnet on a
consolidated basis but did impact the pro forma sales for the groups by
approximately $7 million in the third quarter of fiscal 2012. Sales taking
into account the combination of these adjustments are referred to as “pro
forma sales” or “organic sales.”

                      Revenue        Acquisition / Divested  Pro forma
                        as Reported      Revenue                  Revenue
                        (in thousands)
Q1 Fiscal 2013         $ 5,870,057      $      222,785           $ 6,092,842
Q2 Fiscal 2013           6,699,465             22,954              6,722,419
Q3 Fiscal 2013          6,298,699            -                  6,298,699
YTD Fiscal year        $ 18,868,221     $      245,739           $ 19,113,960
2013
                                                                  
Q1 Fiscal 2012         $ 6,426,006      $      420,232           $ 6,846,238
Q2 Fiscal 2012           6,693,573             426,351             7,119,924
Q3 Fiscal 2012           6,280,557             331,967             6,612,524
Q4 Fiscal 2012          6,307,386            248,589            6,555,975
Fiscal year 2012       $ 25,707,522     $      1,427,139         $ 27,134,661
                                                                  

“Acquisition Revenue” as presented in the preceding table includes the effects
of acquisitions and divestitures that have occurred subsequent to December 31,
2011.

ROWC, ROCE and WC Velocity

The following table presents the calculation for ROWC, ROCE and WC velocity
(dollars in thousands).

                                             Q3 FY 13       Q3 FY 12
                                                                  
Sales                                           6,298,699        6,280,557
Sales, annualized                        (a)     25,194,797       25,122,226
                                                                  
Adjusted operating income (1)                   194,951          235,383
Adjusted operating income, annualized    (b)     779,806          941,532
Adjusted effective tax rate (2)                 27.30      %     29.43      %
Adjusted operating income, net after     (c)     566,919          664,439
tax
                                                                  
Average monthly working capital
         Accounts receivable                    4,806,901        4,542,093
         Inventory                              2,328,051        2,540,034
         Accounts payable                       (3,233,582 )     (3,172,879 )
         Average working capital         (d)     3,901,370       3,909,248  
                                                                  
Average monthly total capital            (e)     5,376,597       5,179,911  
                                                                  
                                                                  
ROWC = (b) / (d)                                19.99      %     24.08      %
WC Velocity = (a) / (d)                         6.46             6.43
ROCE = (c ) / (e)                               10.54      %     12.83      %
                                                                  

(1) See reconciliation to GAAP amounts in the preceding tables in this
Non-GAAP Financial Information Section.

(2) Adjusted effective tax rate is based upon a year-to-date (full fiscal year
rate for FY12) calculation excluding restructuring, integration and other
charges and tax adjustments as described in the reconciliation to GAAP amounts
in this Non-GAAP Financial Information Section.

Teleconference Webcast and Upcoming Events

Avnet will host a Webcast of its quarterly teleconference today at 2:00 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 onto the site
15 minutes prior to the start of the event to register or download any
necessary software. An archive copy of the presentation will also be available
after the Webcast.

For a listing of Avnet’s upcoming events and other information, please visit
Avnet’s investor relations website at www.ir.avnet.com.

About Avnet

Avnet, Inc. (NYSE:AVT), a Fortune 500 company, is one of the largest
distributors of electronic components, computer products and embedded
technology serving customers globally. Avnet accelerates its partners' success
by connecting the world's leading technology suppliers with a broad base of
customers by providing cost-effective, value-added services and solutions. For
the fiscal year ended June 30, 2012, Avnet generated revenue of $25.7 billion.
For more information, visit www.avnet.com. (AVT_IR)

AVNET, INC.
FINANCIAL HIGHLIGHTS
(MILLIONS EXCEPT PER SHARE DATA)
                                                        
                                                                
                                                                
                                    THIRD QUARTERS ENDED
                                                                
                                    MARCH 30,                   MARCH 31,
                                    2013 *                      2012 *
                                                                
Sales                               $    6,298.7                $   6,280.6
                                                                
Income before income                     144.4                      200.9
taxes
                                                                
Net income                               86.2                       147.6
                                                                
Net income per share:
Basic                               $    0.63                   $   1.02
Diluted                             $    0.62                   $   1.00
                                                                
                                                                
                                                                
                                                                
                                    NINE MONTHS ENDED
                                                                
                                    MARCH 30,                   MARCH 31,
                                    2013 *                      2012 *
                                                                
Sales                               $    18,868.2               $   19,400.1
                                                                
Income before income                     422.1                      604.8
taxes
                                                                
Net income                               324.0                      433.6
                                                                
Net income per share:
Basic                               $    2.34                   $   2.93
Diluted                             $    2.31                   $   2.88
                                                                
*              See Notes to Consolidated Statements of Operations included
               herein.
               

AVNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE DATA)
                                                                
                                                                      
                                                                      
                  THIRD QUARTERS ENDED              NINE MONTHS ENDED
                                                                      
                  MARCH 30,        MARCH 31,        MARCH 30,         MARCH 31,
                  2013 *           2012 *           2013 *            2012 *
                                                                      
Sales             $ 6,298,699      $ 6,280,557      $ 18,868,221      $ 19,400,136
Cost of sales      5,542,676      5,526,753      16,659,358      17,108,601 
                                                                      
Gross profit        756,023          753,804          2,208,863         2,291,535
                                                                      
Selling,
general and
administrative
expenses            561,072          518,421          1,656,052         1,567,694
Restructuring,
integration
    and other
    charges         27,341           18,609           89,655            53,114
    (Note 1 *)
                                                                   
Operating           167,610          216,774          463,156           670,727
income
                                                                      
Other income        4,106            3,245            6,649             (1,389     )
(expense), net
Interest            (27,341   )      (23,556   )      (79,029    )      (67,621    )
expense
Gain on bargain
purchase and        -                4,460            31,350            3,061
other (Note 2
*)
                                                                   
Income before       144,375          200,923          422,126           604,778
income taxes
                                                                      
Income tax          58,179           53,361           98,144            171,163
provision
                                                                   
Net income        $ 86,196        $ 147,562       $ 323,982        $ 433,615    
                                                                      
Net earnings
per share:
Basic             $ 0.63          $ 1.02          $ 2.34           $ 2.93       
Diluted           $ 0.62          $ 1.00          $ 2.31           $ 2.88       
                                                                      
Shares used to
compute
earnings
per share:
Basic              137,102        145,126        138,215         148,195    
Diluted            139,015        147,245        140,316         150,472    
                                                                      
*   See Notes to Consolidated Statements of Operations included herein.
    

AVNET, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
                                     MARCH 30,      JUNE 30,
                                        2013            2012
                                                        
Assets:
Current assets:
Cash and cash equivalents              $ 820,924        $ 1,006,864
Receivables, net                         4,778,068        4,607,324
Inventories                              2,284,724        2,388,642
Prepaid and other current assets        220,628         251,609
Total current assets                     8,104,344        8,254,439
Property, plant and equipment, net       486,314          461,230
Goodwill                                 1,253,711        1,100,621
Other assets                            367,129         351,576
                                                        
Total assets                            10,211,498      10,167,866
                                                        
Less liabilities:
Current liabilities:
Borrowings due within one year           578,554          872,404
Accounts payable                         3,175,466        3,230,765
Accrued expenses and other              686,570         695,483
Total current liabilities                4,440,590        4,798,652
Long-term debt                           1,501,050        1,271,985
Other long-term liabilities             186,156         191,497
                                                        
Total liabilities                       6,127,796       6,262,134
                                                        
Shareholders' equity                   $ 4,083,702      $ 3,905,732
                                                          

AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(THOUSANDS)
                                                         
                                                                  
                                              NINE MONTHS ENDED
                                              MARCH 30,           MARCH 31,
                                               2013              2012     
  Cash flows from operating activities:
                                                                  
    Net income                                $ 323,982           $ 433,615
                                                                  
    Non-cash and other reconciling items:
         Depreciation and amortization          89,128              70,775
         Deferred income taxes                  9,037               28,438
         Stock-based compensation               35,923              28,786
         Gain on bargain purchase and           (31,350   )         (3,061   )
         other
         Other, net                             57,800              47,473
                                                                  
    Changes in (net of effects from
    businesses acquired):
         Receivables                            (2,897    )         75,999
         Inventories                            192,244             75,751
         Accounts payable                       (175,909  )         (352,108 )
         Accrued expenses and other, net       (68,544   )        (136,232 )
                                                                  
         Net cash flows provided by            429,414           269,436  
         operating activities
                                                                  
  Cash flows from financing activities:
    Issuance of notes in public offering,       349,258             -
    net of issuance cost
    (Repayments of) borrowings under
    accounts receivable securitization          (259,000  )         590,000
    program, net
    (Repayments of) proceeds from bank          (191,252  )         (11,527  )
    debt, net
    (Repayment of) proceeds from other          (523      )         (493     )
    debt, net
    Repurchases of common stock                 (207,192  )         (248,840 )
    Other, net                                 4,499             5,555    
                                                                  
         Net cash flows provided by (used      (304,210  )        334,695  
         for) financing activities
                                                                  
  Cash flows from investing activities:
    Purchases of property, plant, and           (75,415   )         (95,388  )
    equipment
    Cash proceeds from sales of property,
    plant and
         equipment                              289                 580
    Acquisitions of operations, net of          (244,062  )         (229,524 )
    cash acquired
    Proceeds from divestitures, net of         3,613             -        
    cash divested
                                                                  
         Net cash flows used for               (315,575  )        (324,332 )
         investing activities
                                                                  
  Effect of exchange rates on cash and         4,431             (15,032  )
  cash equivalents
                                                                  
  Cash and cash equivalents:
    -    Increase (decrease)                    (185,940  )         264,767
    -    at beginning of period                1,006,864         675,334  
    -    at end of period                     $ 820,924          $ 940,101  
                                                                  

AVNET, INC.
SEGMENT INFORMATION
(MILLIONS)
                                                           
                                                                  
                                                                  
                       THIRD QUARTERS ENDED        NINE MONTHS ENDED
                                                                  
                                                                  
                       MARCH 30,     MARCH 31,     MARCH 30,      MARCH 31,
SALES:                  2013        2012        2013         2012     
                                                                  
Electronics            $ 3,797.2     $ 3,756.9     $ 11,123.8     $ 11,168.7
Marketing
                                                                  
Technology               2,501.5       2,523.7       7,744.4        8,231.4
Solutions
                                                               
   Consolidated        $ 6,298.7    $ 6,280.6    $ 18,868.2    $ 19,400.1 
                                                                  
                                                                  
                                                                  
                                                                  
OPERATING INCOME
(LOSS):
                                                                  
Electronics            $ 162.1       $ 194.3       $ 448.5        $ 560.3
Marketing
                                                                  
Technology               62.8          67.9          205.2          251.9
Solutions
                                                                  
Corporate               (30.0   )    (26.8   )    (100.9   )    (88.4    )
                                                                  
                                                                  
                       $ 194.9       $ 235.4       $ 552.8        $ 723.8
                                                                  
Restructuring,
integration and         (27.3   )    (18.6   )    (89.6    )    (53.1    )
other charges
                                                                  
   Consolidated        $ 167.6      $ 216.8      $ 463.2       $ 670.7    
                                                                             

                                 AVNET, INC.

                NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS

              THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL 2013

(1) The results for the third quarter of fiscal 2013 included restructuring,
integration and other charges, which totaled $27,341,000 pre-tax, $25,786,000
after tax and $0.18 per share on a diluted basis. Restructuring charges
included therein were $23,874,000 pre-tax consisting of $14,627,000 for
severance, $2,165,000 for facility exit costs and fixed asset write downs, and
other restructuring charges. Other restructuring charges of $7,082,000 related
primarily to other onerous lease obligations that have no ongoing benefit to
the Company as well as a loss of $6,634,000 recognized in the third quarter of
fiscal 2013 from the write-down of the net assets and goodwill associated with
the planned exit of a non-integrated business in the EM Americas region that
is expected to take place in the fourth quarter of fiscal 2013. Pre-tax
integration costs for the third quarter of fiscal 2013 were $14,882,000, of
which $8,800,000 related to the exit of two multi-employer pension plans
associated with acquired entities in Japan. Acquisition related charges and
adjustments for the third quarter of fiscal 2013 were a credit of $10,840,000,
consisting primarily of the reversal of an earn-out liability of $11,172,000
for which payment is no longer expected to be incurred. In addition, the
Company recorded a credit of $575,000 pre-tax primarily to adjust reserves
related to prior year restructuring activity which were no longer required.

Results for the first nine months of fiscal 2013 included restructuring,
integration and other charges, which totaled $89,655,000 pre-tax, $72,772,000
after tax and $0.52 per share on a diluted basis. Restructuring charges
included therein were $70,193,000 pre-tax consisting of $47,822,000 for
severance, $14,817,000 for facility exit costs and fixed asset write downs,
and other restructuring charges. Other restructuring charges of $7,554,000
related primarily to other onerous lease obligations that have no ongoing
benefit to the Company as well as a loss of $6,634,000 recognized in the third
quarter of fiscal 2013 from the write-down of the net assets and goodwill
associated with the planned exit of a non-integrated business in the EM
Americas region that is expected to take place in the fourth quarter of fiscal
2013. Pre-tax integration costs for the first nine months of fiscal 2013 were
$27,506,000, and acquisition transactions resulted in a net credit of
$5,048,000, which related to the reversal of an earn-out liability during the
third quarter. In addition, the Company recorded a credit of $2,996,000
pre-tax during the first nine months of fiscal 2013 to adjust reserves related
to prior year restructuring activity that were no longer required.

Severance charges recorded in the first nine months of fiscal 2013 related to
1,160 employees in sales and business support functions in connection with the
cost reduction actions taken in all three regions in both operating groups
with employee reductions of approximately 814 in EM, 295 in TS, and 51 in
business support functions. Facility exit costs for vacated facilities related
to 14 facilities in the Americas, 12 in EMEA and 6 in Asia and consisted of
reserves for remaining lease liabilities and the write-down of leasehold
improvements and other fixed assets.

The results for the third quarter of fiscal 2012 included restructuring,
integration and other charges which totaled $18,609,000 pre-tax, $13,691,000
after tax and $0.10 per share on a diluted basis. Restructuring charges
included therein were $11,217,000 pre-tax consisting of $6,731,000 for
severance, $3,118,000 for facility exit costs and fixed asset write downs, and
$1,368,000 for other restructuring charges. Integration costs and acquisition
transaction costs were $3,988,000 pre-tax and $4,196,000 pre-tax,
respectively. In addition, the Company recorded a credit of $793,000 pre-tax
primarily to adjust reserves related to prior year restructuring activity
which were no longer required.

Results for the first nine months of fiscal 2012 included restructuring,
integration and other charges which totaled $53,114,000 pre-tax, $38,463,000
after tax and $0.25 per share on a diluted basis. Restructuring charges
included therein were $40,156,000 pre-tax consisting of $26,523,000 for
severance, $10,525,000 for facility exit costs and fixed asset write downs and
$3,108,000 for other restructuring charges. Integration costs and acquisition
transaction costs were $7,438,000 pre-tax and $7,262,000 pre-tax,
respectively. In addition, the Company recorded a credit of $1,742,000 pre-tax
primarily to adjust reserves related to prior year restructuring activity
which were no longer required.

(2) During the third quarter of fiscal 2012, the Company acquired Unidux
Electronics Limited (UEL), a Singapore publicly traded electronics component
distributor, through a tender offer. The consideration paid was below the fair
value of the acquired net assets and, as a result, the Company recognized a
gain on bargain purchase of $4,460,000 pre- and after tax and $0.03 per share
on a diluted basis.

In addition, during the first nine months of fiscal 2012, the Company
recognized a loss of $1,399,000 pre-tax, $854,000 after tax and $0.01 per
diluted share related to a write-down of an investment in a small technology
company and the write off of certain deferred financing costs associated with
the early termination of a credit facility.

Contact:

Investor Relations Contact:
Avnet, Inc.
Vincent Keenan
Investor Relations
(480) 643-7053
investorrelations@avnet.com
 
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