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Arrow Electronics Revenue Advances Year over Year

  Arrow Electronics Revenue Advances Year over Year

                     -- Margins Expand in the Quarter --

Business Wire

ENGLEWOOD, Colo. -- October 30, 2013

Arrow Electronics, Inc. (NYSE:ARW) today reported third quarter 2013 net
income of $96.8 million, or $.95 per share on a diluted basis, compared with
net income of $103.6 million, or $.94 per share on a diluted basis in the
third quarter of 2012. Excluding certain items in both the third quarters of
2013 and 2012^1, net income would have been $119.9 million, or $1.18 per share
on a diluted basis, in the third quarter of 2013 compared with net income of
$119.3 million, or $1.09 per share on a diluted basis, in the third quarter of
2012. Third quarter sales of $5.05 billion increased 2 percent from sales of
$4.96 billion in the prior year.

“We again produced excellent results in the third quarter, with revenue and
adjusted earnings per share growing 2 percent and 8 percent, respectively,
year over year. In a global macro environment that remains unsettled, we
continue to execute well,” said Michael J. Long, chairman, president, and
chief executive officer, “striking the right balance between maximizing our
performance in the short term and investing in our long term strategy. In
addition to growing the business and expanding margins, we invested in
acquisitions that will accelerate our growth.”

Global components third-quarter sales of $3.47 billion increased 3 percent
year over year and were in line with expectations. Sales, as adjusted,
increased 1 percent year over year. In the Americas, sales increased 2 percent
year over year. European sales, as adjusted, advanced 4 percent year over
year. Sales in the Asia-Pacific region were essentially flat year over year.
Global components operating income, as adjusted, grew 6 percent year over year
to $169.1 million.

Global ECS third-quarter sales of $1.58 billion decreased 1 percent year over
year. Sales, as adjusted, declined 2 percent year over year. In the Americas,
sales growth was 3 percent year over year. In Europe, sales, as adjusted,
decreased 14 percent year over year. The company noted that both regions were
affected by the quarter end cut off, which was earlier than some of their
suppliers. Global ECS operating income, as adjusted, grew 7 percent year over
year to $63.7 million.

“In addition to growing revenue and earnings, we generated $81 million in cash
flow from operations during the quarter. With $423 million of cash flow from
operations on a trailing twelve month basis, we again surpassed our targeted
goals” said Paul J. Reilly, executive vice president, finance and operations,
and chief financial officer.

NINE-MONTHS RESULTS

Arrow’s net income for the first nine months of 2013 was $264.6 million, or
$2.53 per share on a diluted basis, compared with net income of $331.6
million, or $2.96 per share on a diluted basis in the first nine months of
2012. Excluding certain items in both the first nine months of 2013 and
2012^1, net income would have been $347.0 million, or $3.32 per share on a
diluted basis, in the first nine months of 2013 compared with net income of
$378.1 million, or $3.37 per share on a diluted basis, in the first nine
months of 2012. In the first nine months of 2013, sales of $15.2 billion
increased 1 percent from sales of $15.0 billion in the first nine months of
2012.

1 A reconciliation of non-GAAP adjusted financial measures including sales, as
adjusted, operating income, as adjusted, net income attributable to
shareholders, as adjusted, and net income per share, as adjusted to GAAP
financial measures is presented in the reconciliation tables included below.

GUIDANCE

Looking ahead, the company currently expects to see normal seasonality in the
fourth quarter of 2013. “In the fourth quarter, we believe that total sales
will be between $5.6 billion and $6.0 billion, with global components sales
between $3.2 billion and $3.4 billion and global enterprise computing
solutions sales between $2.4 billion and $2.6 billion. We expect earnings per
share, on a diluted basis, excluding any charges to be in the range of $1.56
to $1.68. Our guidance includes the impact of our recent Computerlinks
acquisition, which closed on October 28^th, 2013, assumes an average tax rate
in the range of 27 to 29 percent, average diluted shares outstanding are
expected to be 102.5 million, and the average USD to Euro exchange rate for
the fourth quarter is 1.37 to 1,” said Mr. Reilly.

Please refer to the CFO commentary as a supplement to the company’s earnings
release, which can be found at www.arrow.com/investor.

Arrow Electronics (www.arrow.com) is a global provider of products, services
and solutions to industrial and commercial users of electronic components and
enterprise computing solutions. Arrow serves as a supply channel partner for
more than 100,000 original equipment manufacturers, contract manufacturers and
commercial customers through a global network of more than 470 locations in 55
countries.

Information Relating to Forward-Looking Statements

This press release includes forward-looking statements that are subject to
numerous assumptions, risks, and uncertainties, which could cause actual
results or facts to differ materially from such statements for a variety of
reasons, including, but not limited to: industry conditions, the company's
implementation of its new enterprise resource planning system, changes in
product supply, pricing and customer demand, competition, other vagaries in
the global components and global ECS markets, changes in relationships with
key suppliers, increased profit margin pressure, the effects of additional
actions taken to become more efficient or lower costs, risks related to the
integration of acquired businesses, changes in legal and regulatory matters,
and the company’s ability to generate additional cash flow. Forward-looking
statements are those statements, which are not statements of historical fact.
These forward-looking statements can be identified by forward-looking words
such as "expects," "anticipates," "intends," "plans," "may," "will,"
"believes," "seeks," "estimates," and similar expressions. Shareholders and
other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on which they are
made. The company undertakes no obligation to update publicly or revise any of
the forward-looking statements.

For a further discussion of factors to consider in connection with these
forward-looking statements, investors should refer to Item 1A Risk Factors of
the company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance
with accounting principles generally accepted in the United States (“GAAP”),
the company also provides certain non-GAAP financial information relating to
sales, operating income, net income attributable to shareholders, and net
income per basic and diluted share. The company provides sales on a non-GAAP
basis adjusted for the impact of changes in foreign currencies and certain
other items that impact the year over year comparison. These other items
include a prospective revision of sales related to a fulfillment contract to
present these revenues on an agency basis as net fees, as compared to
presenting gross sales (referred to as “change in presentation of sales” which
had no impact on profitability or cash flow) and the impact of acquisitions by
adjusting the company's prior periods to include the sales of businesses
acquired as if the acquisitions had occurred at the beginning of the period
presented (referred to as "impact of acquisitions"). Operating income, net
income attributable to shareholders, and net income per basic and diluted
share are adjusted for certain charges, credits, gains, and losses that the
company believes impact the comparability of its results of operations. These
charges, credits, gains, and losses arise out of the company’s efficiency
enhancement initiatives, acquisitions (including intangible assets
amortization expense), prepayment of debt, and adjustments related to certain
tax matters. A reconciliation of the company’s non-GAAP financial information
to GAAP is set forth in the tables below.

The company believes that such non-GAAP financial information is useful to
investors to assist in assessing and understanding the company’s operating
performance and underlying trends in the company’s business because management
considers these items referred to above to be outside the company’s core
operating results. This non-GAAP financial information is among the primary
indicators management uses as a basis for evaluating the company’s financial
and operating performance. In addition, the company’s Board of Directors may
use this non-GAAP financial information in evaluating management performance
and setting management compensation.

The presentation of this additional non-GAAP financial information is not
meant to be considered in isolation or as a substitute for, or alternative to,
sales, operating income, net income and net income per basic and diluted share
determined in accordance with GAAP. 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.

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)
                                                        
                        Quarter Ended
                        September 28,         September 29,          % Change
                        2013                  2012
                                                                      
Consolidated
sales, as               $  5,048,211          $  4,962,331            1.7   %
reported
Impact of
changes in                 -                     60,237
foreign
currencies
Impact of                 5,488                37,636
acquisitions
Consolidated
sales, as               $  5,053,699          $  5,060,204            (.1   )%
adjusted
                                                                      
Global
components              $  3,467,285          $  3,372,117            2.8   %
sales, as
reported
Impact of
changes in                 -                     36,876
foreign
currencies
Impact of                 5,488                37,636
acquisitions
Global
components              $  3,472,773          $  3,446,629            .8    %
sales, as
adjusted
                                                                      
Europe
components              $  915,086            $  840,826              8.8   %
sales, as
reported
Impact of
changes in                -                    40,251
foreign
currencies
Europe
components              $  915,086            $  881,077              3.9   %
sales, as
adjusted
                                                                      
Global ECS
sales, as               $  1,580,926          $  1,590,214            (.6   )%
reported
Impact of
changes in                -                    23,361
foreign
currencies
Global ECS
sales, as               $  1,580,926          $  1,613,575            (2.0  )%
adjusted
                                                                      
ECS Europe
sales, as               $  440,065            $  482,011              (8.7  )%
reported
Impact of
changes in                -                    26,698
foreign
currencies
ECS Europe
sales, as               $  440,065            $  508,709              (13.5 )%
adjusted
                                                                      
                        Nine Months Ended
                        September 28,         September 29,          % Change
                        2013                  2012
                                                                      
Consolidated
sales, as               $  15,203,925         $  15,002,423           1.3   %
reported
Impact of
changes in                 -                     103,263
foreign
currencies
Impact of                  27,901                282,239
acquisitions
Change in
presentation              -                    (280,626   )
of sales
Consolidated
sales, as               $  15,231,826         $  15,107,299           .8    %
adjusted
                                                                      
Global
components              $  10,058,555         $  10,175,358           (1.1  )%
sales, as
reported
Impact of
changes in                 -                     69,586
foreign
currencies
Impact of                  27,901                116,567
acquisitions
Change in
presentation              -                    (280,626   )
of sales
Global
components              $  10,086,456         $  10,080,885           .1    %
sales, as
adjusted
                                                                      
Europe
components              $  2,703,471          $  2,889,043            (6.4  )%
sales, as
reported
Impact of
changes in                 -                     77,548
foreign
currencies
Change in
presentation              -                    (280,626   )
of sales
Europe
components              $  2,703,471          $  2,685,965            .7    %
sales, as
adjusted
                                                                      
Global ECS
sales, as               $  5,145,370          $  4,827,065            6.6   %
reported
Impact of
changes in                 -                     33,677
foreign
currencies
Impact of                 -                    165,672
acquisitions
Global ECS
sales, as               $  5,145,370          $  5,026,414            2.4   %
adjusted
                                                                      
ECS Europe
sales, as               $  1,583,975          $  1,452,115            9.1   %
reported
Impact of
changes in                 -                     40,020
foreign
currencies
Impact of                 -                    165,672
acquisitions
ECS Europe
sales, as               $  1,583,975          $  1,657,807            (4.5  )%
adjusted
                                                                            

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)
                                                         
                      Quarter Ended                   Nine Months Ended
                       September       September       September       September
                       28,             29,             28,             29,
                       2013            2012            2013            2012
                                                                         
Operating
income, as             $ 162,736       $ 163,817       $ 456,163       $ 539,955
reported
Intangible
assets                   8,936           8,742           26,762          27,372
amortization
expense
Restructuring,
integration,            22,568         14,562         74,402         36,152
and other
charges
Operating
income, as             $ 194,240       $ 187,121       $ 557,327       $ 603,479
adjusted
                                                                         
Net income
attributable
to                     $ 96,779        $ 103,617       $ 264,589       $ 331,628
shareholders,
as reported
Intangible
assets                   7,074           7,145           21,219          22,081
amortization
expense
Restructuring,
integration,             16,077          8,576           52,260          24,419
and other
charges
Loss on
prepayment of            -               -               2,627           -
debt
Adjustments to
tax reserves
Income taxes             -               -               5,362           -
Interest (net           -              -              939            -
of taxes)
Net income
attributable
to                     $ 119,930       $ 119,338       $ 346,996       $ 378,128
shareholders,
as adjusted
                                                                         
Net income per
basic share,           $ .96           $ .96           $ 2.56          $ 3.01
as reported
Intangible
assets                   .07             .07             .21             .20
amortization
expense
Restructuring,
integration,             .16             .08             .51             .22
and other
charges
Loss on
prepayment of            -               -               .03             -
debt
Adjustments to
tax reserves
Income taxes             -               -               .05             -
Interest (net           -              -              .01            -
of taxes)
Net income per
basic share,           $ 1.19          $ 1.10          $ 3.36          $ 3.43
as adjusted
                                                                         
Net income per
diluted share,         $ .95           $ .94           $ 2.53          $ 2.96
as reported
Intangible
assets                   .07             .07             .20             .20
amortization
expense
Restructuring,
integration,             .16             .08             .50             .22
and other
charges
Loss on
prepayment of            -               -               .03             -
debt
Adjustments to
tax reserves
Income taxes             -               -               .05             -
Interest (net           -              -              .01            -
of taxes)
Net income per
diluted share,         $ 1.18          $ 1.09          $ 3.32          $ 3.37
as adjusted
                                                                         

   The sum of the components for basic and diluted net income per share, as
      adjusted, may not agree to totals, as presented, due to rounding.
      

ARROW ELECTRONICS, INC.

NON-GAAP  SEGMENT RECONCILIATION

(In thousands)

(Unaudited)
                                                    
                     Quarter Ended                           Nine Months Ended
                     September           September           September           September
                     28,            29,                 28,            29,
                     2013                2012                2013                2012
Global
components
operating            $ 164,096           $ 155,061           $ 432,534           $ 496,293
income, as
reported
Intangible
assets                4,993              4,464              14,948             13,562
amortization
expense
Global
components
operating            $ 169,089           $ 159,525           $ 447,482           $ 509,855
income, as
adjusted
                                                                                   
Global ECS
operating            $ 59,757            $ 55,273            $ 202,070           $ 176,721
income, as
reported
Intangible
assets                3,943              4,278              11,814             13,810
amortization
expense
Global ECS
operating            $ 63,700            $ 59,551            $ 213,884           $ 190,531
income, as
adjusted
                                                                                   

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)
                                                                      
                       Quarter Ended                              Nine Months Ended
                       September             September             September              September
                       28,                  29,                  28,                   29,
                       2013                  2012                  2013                   2012
                                                                                            
Sales                  $ 5,048,211           $ 4,962,331           $ 15,203,925           $ 15,002,423
Costs and
expenses:
Cost of sales            4,376,551             4,299,612             13,200,621             12,971,981
Selling,
general, and             453,920               456,521               1,376,199              1,369,431
administrative
expenses
Depreciation
and                      32,436                27,819                96,540                 84,904
amortization
Restructuring,
integration,            22,568               14,562               74,402                36,152
and other
charges
                        4,885,475            4,798,514            14,747,762            14,462,468
Operating                162,736               163,817               456,163                539,955
income
Equity in
earnings of              1,884                 2,154                 5,227                  5,766
affiliated
companies
Loss on
prepayment of            -                     -                     4,277                  -
debt
Interest and
other                   27,167               23,956               86,896                79,643
financing
expense, net
Income before            137,453               142,015               370,217                466,078
income taxes
Provision for           40,490               38,323               105,260               134,182
income taxes
Consolidated             96,963                103,692               264,957                331,896
net income
Noncontrolling          184                  75                   368                   268
interests
Net income
attributable           $ 96,779              $ 103,617             $ 264,589              $ 331,628
to
shareholders
Net income per
share:
Basic                  $ .96                 $ .96                 $ 2.56                 $ 3.01
Diluted                $ .95                 $ .94                 $ 2.53                 $ 2.96
Weighted
average shares
outstanding:
Basic                    100,750               108,301               103,269                110,245
Diluted                  101,669               109,894               104,426                112,096
                                                                                            

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)
                                                     
                                      September 28,             December 31,
                                      2013                      2012
ASSETS                                (Unaudited)
Current assets:
Cash and cash equivalents             $  251,790                $ 409,684
Accounts receivable, net                 4,568,553                4,923,898
Inventories                              2,165,984                2,052,720
Other current assets                    291,491                 328,999
Total current assets                    7,277,818               7,715,301
Property, plant, and
equipment, at cost:
Land                                     24,000                   23,944
Buildings and improvements               146,246                  152,008
Machinery and equipment                 1,105,548               1,030,983
                                         1,275,794                1,206,935
Less: Accumulated
depreciation and                        (659,249   )            (607,294   )
amortization
Property, plant, and                    616,545                 599,641
equipment, net
Investments in affiliated                66,447                   65,603
companies
Intangible assets, net                   393,052                  414,033
Cost in excess of net
assets of companies                      1,732,790                1,711,703
acquired
Other assets                            279,397                 279,406
Total assets                          $  10,366,049             $ 10,785,687
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                      $  3,431,341              $ 3,769,268
Accrued expenses                         617,796                  776,586
Short-term borrowings,
including current portion
of                                      30,969                  364,357

long-term debt
Total current liabilities               4,080,106               4,910,211
                                                                             
Long-term debt                           1,913,852                1,587,478
Other liabilities                        338,726                  300,636
Equity:
Shareholders' equity:
Common stock, par value $1:
Authorized – 160,000 shares
in both 2013 and 2012
Issued – 125,424 shares in               125,424                  125,424
both 2013 and 2012
Capital in excess of par                 1,058,833                1,086,239
value
Treasury stock (24,707 and
19,423 shares in 2013 and
                                         (877,118   )             (652,867   )
2012, respectively), at
cost
Retained earnings                        3,543,878                3,279,289
Foreign currency                         211,585                  182,632
translation adjustment
Other                                   (33,745    )            (37,495    )
Total shareholders' equity               4,028,857                3,983,222
Noncontrolling interests                4,508                   4,140
Total equity                            4,033,365               3,987,362
Total liabilities and                 $  10,366,049             $ 10,785,687
equity
                                                                             

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)
                               
                                     Quarter Ended
                                     September 28,        September 29,
                                     2013                      2012
Cash flows from operating
activities:
Consolidated net income              $   96,963                $   103,692
Adjustments to reconcile
consolidated net income to
net cash provided by
operations:
Depreciation and                         32,436                    27,819
amortization
Amortization of                          11,465                    10,715
stock-based compensation
Equity in earnings of                    (1,884    )               (2,154    )
affiliated companies
Deferred income taxes                    (4,237    )               1,634
Restructuring,
integration, and other                   16,077                    8,576
charges
Excess tax benefits from
stock-based compensation                 (320      )               (102      )
arrangements
Other                                    559                       (1,443    )
Change in assets and
liabilities, net of
effects of acquired
businesses:
Accounts receivable                      225,379                   115,535
Inventories                              (34,314   )               6,298
Accounts payable                         (237,258  )               (77,510   )
Accrued expenses                         (30,161   )               (32,565   )
Other assets and                        6,427                    15,834
liabilities
Net cash provided by                    81,132                   176,329
operating activities
Cash flows from investing
activities:
Cash consideration paid                  (34,010   )               (4,053    )
for acquired businesses
Acquisition of property,                (31,904   )              (26,710   )
plant, and equipment
Net cash used for                       (65,914   )              (30,763   )
investing activities
Cash flows from financing
activities:
Change in short-term and                 5,457                     20,372
other borrowings
Repayment of long-term                   (157,600  )               (62,800   )
bank borrowings, net
Proceeds from exercise of                18,073                    715
stock options
Excess tax benefits from
stock-based compensation                 320                       102
arrangements
Repurchases of common                   (303      )              (64,997   )
stock
Net cash used for                       (134,053  )              (106,608  )
financing activities
Effect of exchange rate                 24,734                   (6,240    )
changes on cash
Net increase (decrease) in               (94,101   )               32,718
cash and cash equivalents
Cash and cash equivalents               345,891                  325,832
at beginning of period
Cash and cash equivalents            $   251,790               $   358,550
at end of period
                                                                             

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)
                                                  
                                   Nine Months Ended
                                   September 28,               September 29,
                                   2013                        2012
Cash flows from
operating activities:
Consolidated net income            $   264,957               $ 331,896
Adjustments to reconcile
consolidated net income
to net cash provided by
operations:
Depreciation and                       96,540                  84,904
amortization
Amortization of                        24,247                  24,861
stock-based compensation
Equity in earnings of                  (5,227    )             (5,766        )
affiliated companies
Deferred income taxes                  15,311                  17,966
Restructuring,
integration, and other                 52,260                  24,419
charges
Excess tax benefits from
stock-based compensation               (6,937    )             (5,083        )
arrangements
Loss on prepayment of                  2,627                   -
debt
Other                                  182                     (4,340        )
Change in assets and
liabilities, net of
effects of acquired
businesses:
Accounts receivable                    386,542                 235,512
Inventories                            (94,180   )             (99,523       )
Accounts payable                       (361,349  )             31,915
Accrued expenses                       (204,013  )             (107,194      )
Other assets and                      64,685                 (42,284       )
liabilities
Net cash provided by                  235,645                487,283
operating activities
Cash flows from
investing activities:
Cash consideration paid                (43,392   )             (191,250      )
for acquired businesses
Acquisition of property,               (85,465   )             (75,574       )
plant, and equipment
Purchase of cost method               (3,000    )            (15,000       )
investments
Net cash used for                     (131,857  )            (281,824      )
investing activities
Cash flows from
financing activities:
Change in short-term and               (22,282   )             7,795
other borrowings
Repayment of long-term                 (242,900  )             (25,000       )
bank borrowings, net
Net proceeds from note                 591,156                 -
offering
Redemption of senior                   (338,184  )             -
notes
Proceeds from exercise                 30,368                  11,481
of stock options
Excess tax benefits from
stock-based compensation               6,937                   5,083
arrangements
Repurchases of common                 (312,613  )            (222,795      )
stock
Net cash used for                     (287,518  )            (223,436      )
financing activities
Effect of exchange rate               25,836                 (20,360       )
changes on cash
Net decrease in cash and               (157,894  )             (38,337       )
cash equivalents
Cash and cash
equivalents at beginning              409,684                396,887
of period
Cash and cash
equivalents at end of              $   251,790               $ 358,550
period

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)
                                                                    
                     Quarter Ended                             Nine Months Ended
                     September             September           September          September
                     28,                 29,                 28,              29,
                     2013                  2012                2013               2012
Sales:
Global               $ 3,467,285           $ 3,372,117         $ 10,058,555       $ 10,175,358
components
Global ECS            1,580,926            1,590,214          5,145,370         4,827,065
Consolidated         $ 5,048,211           $ 4,962,331         $ 15,203,925       $ 15,002,423
                                                                                               
Operating
income
(loss):
Global               $ 164,096             $ 155,061           $ 432,534          $ 496,293
components
Global ECS             59,757                55,273              202,070            176,721
Corporate             (61,117   )          (46,517   )        (178,441   )      (133,059   )
(a)
Consolidated         $ 162,736             $ 163,817           $ 456,163          $ 539,955
                                                                                               

        Includes restructuring, integration, and other charges of $22.6
(a)   million and $74.4 million for the third quarter and first nine months
        of 2013 and $14.6 million and $36.2 million for the third quarter and
        first nine months of 2012, respectively.

Contact:

Arrow Electronics, Inc.
Greg Hanson
Vice President and Treasurer
303-824-4537
or
Paul J. Reilly
Executive Vice President, Finance and Operations & Chief Financial Officer
631-847-1872
or
Media Contact:
John Hourigan
Vice President, Global Communications
303-824-4586