Avnet, Inc. Reports Third Quarter Fiscal Year 2014 Results

  Avnet, Inc. Reports Third Quarter Fiscal Year 2014 Results

 Continued Progress at Electronics Marketing Drives Year-Over-Year Growth in
                               Revenue and EPS

Business Wire

PHOENIX -- April 24, 2014

Avnet, Inc. (NYSE:AVT) today announced results for the third quarter fiscal
year 2014 ended March29, 2014.

Q3 Fiscal 2014 Results
                       
                          THIRD QUARTERS ENDED
                         March 29, 2014      March 30, 2013      Change
                          $ in millions, except per share data
Sales                     $6,683.6            $6,298.7            6.1   %
                                                                            
GAAP Operating Income     184.8                 167.6                 10.3  %
Adjusted Operating        223.8                 203.7                 9.9   %
Income ^(1)
                                                                            
GAAP Net Income           113.9                 86.2                  32.1  %
Adjusted Net Income       144.1                 131.5                 9.6   %
^(1)
                                                                            
GAAP Diluted EPS          $0.81                 $0.62                 30.6  %
Adjusted Diluted EPS      $1.03                 $0.95                 8.4   %
^(1)
^(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 March29, 2014 increased 6.1% year over year
    to $6.7 billion; organic sales (as defined later in the document) grew
    3.7% year over year and 3.5% in constant currency
  *Gross profit margin of 12.0% increased 61 basis points sequentially and
    was essentially flat with the year ago quarter
  *Adjusted operating income of $223.8 million increased 9.9% and adjusted
    operating income margin of 3.3% increased 12 basis points year over year
  *Adjusted net income of $144.1 million increased 9.6% and adjusted diluted
    earnings per share of $1.03 increased 8.4% year over year

Rick Hamada, Chief Executive Officer, commented, “Our enterprise level results
reflect a third consecutive quarter of year-over-year organic growth led by
the performance of our Electronics Marketing (EM) business, which grew revenue
8.8% in its seasonally strong March quarter. This growth was somewhat offset
by lower than expected revenue in our Technology Solutions (TS) business,
despite the strong performance in the December quarter. TS’ organic revenue
declined year over year and, as a result, our organic growth rate at the
enterprise level was 3.5% in constant currency. Turning to our bottom line,
adjusted operating income increased nearly 10% year over year and operating
income margin was up 12 basis points to 3.3%. In line with our general
expectations, we experienced strong cash flow from operations for the quarter
at $358 million, which continues to bolster our balance sheet and available
liquidity. We believe that our combination of resources and strategies
continue to position us to build on this current performance with the clear
goal of additional progress toward our long-term financial goals as companies
continue to invest in technology to accelerate their success.”

Avnet Electronics Marketing Results
                                          
                                                 Year-over-Year Growth Rates
                            Q3 FY14              Reported          Organic
                            Sales                Sales               Sales
                            (in millions)
EM Total                    $  4,133.0           8.8       %         8.0   %
Excluding FX ^(1)                                8.1       %         7.2   %
Americas                    $  1,193.6           (9.6      )%        (1.1  )%
EMEA                        $  1,385.8           26.0      %         13.3  %
Excluding FX ^(1)                                21.7      %         9.4   %
Asia                        $  1,553.6           12.8      %         11.2  %
                                                                           
                            Q3' FY14             Q3' FY13            Change
Operating Income            $  193.4             $  165.0            17.2  %
Operating Income            4.7         %        4.4       %         33 bps
Margin
^(1) Year-over-year sales growth rate excluding the impact of changes in
foreign currency exchange rates.

  *Reported sales increased 8.8% year over year to $4.1 billion while organic
    sales were up 7.2% in constant currency
  *Operating income margin increased 33 basis points year over year to 4.7%
    primarily due to improvements in the Americas region
  *Working capital (defined as receivables plus inventory less accounts
    payables) declined 3.5% sequentially and was up 8.9% year over year due to
    the increase in sales and the acquisition of MSC; excluding acquisitions
    and the impact of currency, working capital increased 7.1% year over year
  *Return on working capital (ROWC) increased 245 basis points sequentially
    and 116 basis points year over year due primarily to higher operating
    income

Mr. Hamada added, “EM delivered another quarter of meaningful progress toward
their financial targets as both margins and returns expanded year over year
for a third consecutive quarter. In the March quarter, organic revenue
increased 7.2% year over year in constant dollars, driven by strong growth in
the EMEA and Asia regions. On a sequential basis, EM revenue was essentially
flat, and below normal seasonality, due to the expected drop off in certain
high volume fulfillment engagements in EM Asia, which drove our December
quarter above seasonal levels. The seasonal mix shift to the western regions
and the related gross profit margin improvement combined to drive operating
income up 12.7% sequentially as operating income margin improved 55 basis
points to 4.7%. On a year-over-year basis, the growth in revenue, when
combined with the expense actions implemented in fiscal 2013 and the first
half of fiscal 2014, drove operating income margin up 33 basis points. In
addition to the strong financial performance this quarter, EM continues to
position for future growth as the integration of MSC, which adds a broad
offering of embedded and display solutions supported by in-depth technical
expertise, is proceeding as planned. With a book to bill ratio above parity in
all three regions, we are confident we can continue to leverage top line
growth into improved financial performance as we return EM to our target
margin and returns.”

Avnet Technology Solutions Results
                                          
                                                 Year-over-Year Growth Rates
                            Q3 FY14              Reported         Organic
                            Sales                Sales              Sales
                            (in millions)
TS Total                    $  2,550.6           2.0      %         (2.5   )%
Excluding FX ^(1)                                2.6      %         (1.9   )%
Americas                    $  1,373.5           5.6      %         (2.9   )%
EMEA                        $  774.6             (1.1     )%        (1.1   )%
Excluding FX^(1)                                 (4.9     )%        (4.9   )%
Asia                        $  402.5             (3.8     )%        (3.8   )%
                                                                           
                            Q3' FY14             Q3' FY13           Change
Operating Income            $  60.9              $  68.6            (11.3  )%
Operating Income            2.4         %        2.7      %         (35) bps
Margin
^(1) Year-over-year sales growth rate excluding the impact of changes in
foreign currency exchange rates.

  *Reported sales increased 2.0% year over year to $2.6 billion and organic
    sales decreased 2.5% in reported dollars and 1.9% in constant currency
  *Operating income margin decreased 35 basis points year over year due
    primarily to a decline in the Americas region partially offset by an
    improvement in the EMEA region
  *ROWC decreased 809 basis points year over year primarily due to lower
    operating income
  *At a product level, year-over-year growth in networking and security, as
    well as services, was partially offset by a decline in servers

Mr. Hamada further added, “Despite coming off a stronger than expected Q2
performance, our TS results did not meet our original expectations primarily
due to a weaker than expected close to the quarter in our Americas region, and
somewhat softer demand experienced by our computing components business in
EMEA. Our Americas revenue declined 26.1% sequentially and organic revenue
declined 2.9% year over year. In our EMEA region, revenue declined 18.2%
sequentially and organic revenue declined 4.9% year over year in constant
currency. The revenue shortfall in our higher margin Americas region strongly
influenced overall TS profitability as operating income dollars and margins at
the global level declined 11.3% and 35 basis points year over year,
respectively. We are, however, encouraged by our performance in EMEA this
quarter as their ongoing portfolio management and resource allocation actions
resulted in a 65 basis points increase in operating margin year over year. We
will continue to monitor our current market conditions carefully and adjust
our resources as necessary to resume progress toward our long-term goals.”

Cash Flow/Dividend

  *Cash generated from operations was $358.1 million for the quarter and
    $470.7 million on a trailing twelve month basis
  *Cash and cash equivalents at the end of the quarter was $960.1 million;
    net debt (total debt less cash and cash equivalents) was approximately
    $1.1 billion
  *Under the $750 million stock repurchase program, the Company repurchased
    31.7 thousand shares during the quarter at an aggregate cost of $1.3
    million. At the end of the fiscal third quarter, the Company had
    approximately $223 million remaining in the program
  *The Company paid a quarterly dividend of $0.15 per share ($20.7 million)
    or $62.0 million fiscal year to date

Kevin Moriarty, Chief Financial Officer, stated, “The team has done an
effective job of managing working capital during a period where the linearity
of our revenue did not follow historic patterns. After consuming cash last
quarter to support the strong December close at TS, our cash flow from
operations swung to a positive $358 million as accounts receivable declined
13% sequentially and inventory was down 2%. As a result, net debt declined
$307 million sequentially and we ended the quarter with $960 million of cash
on the balance sheet. With our strong balance sheet and liquidity, we remain
well positioned to invest in growth opportunities while continuing to return
cash to shareholders via both our dividend commitment and disciplined share
repurchase program.”

Outlook for Fourth Quarter of Fiscal 2014 Ending on June 28, 2014

  *EM sales are expected to be in the range of $4.05 billion to $4.35 billion
    and TS sales are expected to be between $2.55 billion to $2.85 billion
  *Avnet sales are forecasted to be between $6.6 billion and $7.2 billion
  *Adjusted diluted earnings per share (“EPS”) is expected to be in the range
    of $1.04 to $1.14 per share
  *The EPS guidance assumes 140.6 million average diluted shares outstanding
    and a tax rate of 27% to 31%

The above EPS guidance excludes the amortization of intangibles and any
potential restructuring charges or any charges related to acquisitions and
post-closing integration activities. In addition, the above guidance assumes
that the average U.S. Dollar to Euro currency exchange rate for the fourth
quarter of fiscal 2014 is $1.38 to €1.00. This compares with an average
exchange rate of $1.31 to €1.00 in the fourth quarter of fiscal 2013 and $1.37
to €1.00 in the third quarter of fiscal 2014.

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,”
“feel,” “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, and 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 sales adjusted for the impact
of acquisitions and other items (as defined in the Organic Sales section of
this document). Management believes organic sales 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 (i) restructuring,
integration and other expenses, and (ii) amortization of acquired intangible
assets and other, 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 or non-cash in nature. 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 diluted EPS adjusted for (i) the impact of
the items described above, (ii) certain items impacting income tax expense and
(iii) the gain on legal settlement, bargain purchase and other 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 diluted EPS excluding
the impact of these items provides an important measure of the Company’s net
results 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 adjusted operating income (as defined above)
    divided by the sum of the monthly average balances of receivables and
    inventory less accounts payable.
  *ROCE is defined as annualized, tax effected adjusted operating income (as
    defined above) divided by the monthly average balances of interest-bearing
    debt and equity (including the impact of adjustments to operating income
    discussed above) 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, results presented in accordance with
GAAP.

Third Quarter     
Fiscal 2014
                      
                      Third Quarter Fiscal 2014
                                      Income
                      Operating     Before        Net Income    Diluted
                      Income          Income                          EPS
                                      Taxes
                      $ in thousands, except per share amounts
GAAP results          $ 184,843       $ 164,993       $ 113,851       $ 0.81
Restructuring,
integration and       26,083          26,083          19,275          0.14
other expenses
Gain on legal
settlement,
bargain               —               (2,965    )     (1,811    )     (0.01  )
purchase and
other
Amortization of
intangible            12,868          12,868          9,043           0.06
assets and
other
Income tax            —              —              3,744          0.03   
adjustments
Total                 38,951         35,986         30,251         0.22   
adjustments
Adjusted              $ 223,794      $ 200,979      $ 144,102      $ 1.03 
results
                                                                             

Items impacting the third quarter of fiscal 2014 consisted of the following:

  *Restructuring, integration and other expenses of $26.1 million before tax
    consisted of $15.4 million for severance, $3.9 million for facility exit
    and asset impairment related costs, $2.3 million for other restructuring
    costs, $3.9 million for integration-related costs, and an expense of $0.6
    million to adjust prior restructuring liabilities. Restructuring,
    integration and other expenses after tax was $19.3 million;
  *Gain on legal settlement of $3.0 million before tax and $1.8 million after
    tax related to a settlement payment received during the third quarter;
  *Amortization expense and other substantially all of which related to
    acquired intangible assets of $12.9 million before tax and $9.0 million
    after tax; and
  *Income tax adjustments of $3.7 million primarily related to certain items
    impacting the effective income tax rate in the third quarter of fiscal
    2014.

Second Quarter     
Fiscal 2014

                       Second Quarter Fiscal 2014
                                       Income
                       Operating     Before        Net Income    Diluted
                       Income          Income                          EPS
                                       Taxes
                       $ in thousands, except per share amounts
GAAP results           $ 221,572       $ 188,552       $ 124,864       $  0.89
Restructuring,
integration and        28,442          28,442          21,746          0.15
other expenses
Amortization of
intangible             13,194          13,194          9,125           0.07
assets and other
Income tax             —              —              8,158          0.06
adjustments
Total                  41,636         41,636         39,029         0.28
adjustments
Adjusted results       $ 263,208      $ 230,188      $ 163,893      $  1.17
                                                                          

Items impacting the second quarter of fiscal 2014 consisted of the following:

  *Restructuring, integration and other expenses of $28.4 million before tax
    consisted of $19.3 million for severance, $1.4 million for facility exit
    and asset impairment related costs, $0.5 million for other restructuring
    expenses, $1.5 million for other costs, $4.3 million for
    integration-related costs, and an expense of $1.4 million to adjust prior
    restructuring liabilities. Restructuring, integration and other expenses
    after tax was $21.7 million;
  *Amortization expense and other substantially all of which related to
    acquired intangible assets of $13.2 million before tax and $9.1 million
    after tax; and
  *Income tax adjustments of $8.2 million primarily related to certain items
    impacting the effective income tax rate in the second quarter of fiscal
    2014.

Third Quarter      
Fiscal 2013
                       
                       Third Quarter Fiscal 2013
                                       Income
                       Operating     Before        Net Income    Diluted
                       Income          Income                          EPS
                                       Taxes
                       $ in thousands, except per share amounts
GAAP results           $ 167,610       $ 144,375       $ 86,196        $  0.62
Restructuring,
integration and        27,341          27,341          25,786          0.18
other expenses
Amortization of
intangible             8,746           8,746           6,122           0.05
assets and other
Income tax             —              —              13,371         0.10
adjustments
Total                  36,087         36,087         45,279         0.33
adjustments
Adjusted results       $ 203,697      $ 180,462      $ 131,475      $  0.95
                                                                          

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

  *Restructuring, integration and other expenses of $27.3 million before tax
    consisted of restructuring costs of $23.8 million, integration costs of
    $14.9 million, other costs aggregating to a net benefit of $10.8 million
    and a net benefit for changes in estimates for prior restructuring
    liabilities of $0.6 million;
  *Amortization expense related to acquired intangible assets of $8.7 million
    before tax and $6.1 million after tax; and
  *Income tax adjustments of $13.4 million primarily related to increases to
    valuation allowances and reserves.

Organic Sales

Organic sales is defined as reported sales adjusted for (i) the impact of
acquisitions and divestitures by adjusting Avnet’s prior periods 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 and (ii)the impact of the transfer of a portion of
certain operations between the EM and TS operating groups, which did not have
an impact to Avnet on a consolidated basis but did impact the organic sales
for the TS and EM operating groups. Sales taking into account the combination
of these adjustments are referred to as “organic sales.”

                            Sales              Acquisition /      Organic
                         as Reported      Divestiture      Sales
                                               Sales
                                               (in thousands)
Q1 Fiscal 2014              $ 6,345,475        $   119,950        $ 6,465,425
Q2 Fiscal 2014              7,421,854          —                  7,421,854
Q3 Fiscal 2014              6,683,616         —                 6,683,616
Fiscal year to date         $ 20,450,945      $   119,950       $ 20,570,895
2014
                                                                  
Q1 Fiscal 2013              $ 5,870,057        $   362,053        $ 6,232,110
Q2 Fiscal 2013              6,699,465          162,481            6,861,946
Q3 Fiscal 2013              6,298,699          143,992            6,442,691
Q4 Fiscal 2013              6,590,703         124,741           6,715,444
Fiscal year 2013            $ 25,458,924      $   793,267       $ 26,252,191
                                                                    

“Acquisition/Divestiture Sales” as presented in the preceding table includes
the effects of the acquisitions and divestitures included below:

Fiscal 2014
MSC Investoren GmbH, in October 2013 in the EM EMEA region
Seamless Technologies, Inc., in July 2013 in the TS Americas region
Nisko Semiconductors Ltd., in July 2013 in the EM EMEA region

Fiscal 2013
RTI Holdings, in April 2013 in the EM Asia Region
Divestiture in March 2013 of a small business in the EM Americas region
TSSLink, Inc., in January 2013 in the TS Americas region
Universal Semiconductor, Inc., in January 2013 in the EM Americas region
Genilogix, in November 2012 in the TS Americas region
Divestiture in December 2012 of a small business in the TS Asia region
Brightstar Partners, Inc., in November 2012 in the TS Americas region
Magirus AG, in October 2012 in the TS EMEA region
Tekdata Interconnections, Limited, in October 2012 in the EM EMEA region
Internix, Inc., in August 2012 in the EM Asia region
C.R.G. Electronics, Ltd., in August 2012 in the EM EMEA region
Pepperweed Consulting, in August 2012 in the TS Americas region

ROWC, ROCE and WC Velocity

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

                                      Q3 FY14             Q3 FY13
Sales                                     $  6,683,616          $ 6,298,699
Sales, annualized                 (a)     $  26,734,464         $ 25,194,796
Adjusted operating                        $  223,794            $ 203,697
income (1)
Adjusted annualized               (b)     $  895,176            $ 814,788
operating income
Adjusted effective tax                    28.2           %      27.5         %
rate (2)
Adjusted annualized
operating income, after           (c)     $  642,736            $ 590,884
tax
Average monthly working
capital
Accounts receivable                       $  5,165,610          $ 4,806,901
Inventory                                 $  2,592,568          $ 2,328,051
Accounts payable                          $  (3,250,104  )      $ (3,233,582 )
Average working capital           (d)     $  4,508,074         $ 3,901,370  
Average monthly total             (e)     $  6,034,183         $ 5,376,597  
capital
ROWC = (b) / (d)                          19.9           %      20.9         %
WC Velocity = (a) / (d)                   5.9                   6.5
ROCE = (c) / (e)                          10.7           %      11.0         %
                                                                             
(1) See reconciliation to GAAP amounts in the preceding tables in this
Non-GAAP Financial
Information section.
(2) Adjusted effective tax rate for each quarterly period in a fiscal year is
based upon the currently
anticipated annual effective tax rate, excluding the tax effect of the items
described above 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 29, 2013, Avnet generated sales of $25.5 billion.
For more information, visit www.avnet.com. (AVT_IR)

                                                    
AVNET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(THOUSANDS EXCEPT PER SHARE DATA)

(UNAUDITED)
                                                           
                     Third Quarters Ended               Nine Months Ended
                     March 29,       March 30,        March 29,        March 30,
                     2014              2013                2014               2013
Sales                $ 6,683,616       $ 6,298,699         $ 20,450,945     $ 18,868,221
Cost of sales        5,878,704        5,542,676       18,062,230      16,659,358   
Gross profit         804,912           756,023             2,388,715          2,208,863
Selling,
general and          593,986           561,072             1,736,689          1,656,052
administrative
expenses
Restructuring,
integration          26,083           27,341          66,624          89,655       
and other
expenses
Operating            184,843           167,610             585,402            463,156
income
Other income         2,511             4,106               (1,488       )     6,649
(expense), net
Interest             (25,326     )     (27,341     )       (80,529      )     (79,029      )
expense
Gain on legal
settlement,
bargain              2,965            —               22,102          31,350       
purchase and
other
Income before        164,993           144,375             525,487            422,126
income taxes
Income tax           51,142           58,179          166,148         98,144       
provision
Net income           $ 113,851        $ 86,196        $ 359,339       $ 323,982    
Earnings per
share:
Basic                $ 0.82           $ 0.63          $ 2.61          $ 2.34       
Diluted              $ 0.81           $ 0.62          $ 2.57          $ 2.31       
Shares used to
compute
earnings per
share:
Basic                138,418          137,102         137,845         138,215      
Diluted              140,179          139,015         140,015         140,316      
Cash dividends
paid per             $ 0.15           $ —             $ 0.45          $ —          
common share
                                                                                           
                                                                                           

                                                            
AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(THOUSANDS)

(UNAUDITED)
                                                                  
                                               March 29, 2014     June 29,
                                                                  2013
Assets:
Current assets:
Cash and cash equivalents                      $ 960,149          $ 1,009,343
Receivables, net                               4,983,890          4,868,973
Inventories                                    2,510,352          2,264,341
Prepaid and other current assets               199,054           214,221
Total current assets                           8,653,445          8,356,878
Property, plant and equipment, net             522,321            492,606
Goodwill                                       1,344,389          1,261,288
Intangible assets, net                         197,829            172,212
Other assets                                   182,796           191,696
Total assets                                   $ 10,900,780      $ 10,474,680
Liabilities and Shareholders' Equity:
Current liabilities:
Short-term debt                                $ 848,388          $ 838,190
Accounts payable                               3,207,036          3,278,152
Accrued expenses and other                     709,130           705,102
Total current liabilities                      4,764,554          4,821,444
Long-term debt                                 1,221,977          1,206,993
Other long-term liabilities                    178,382           157,118
Total liabilities                              6,164,913          6,185,555
Shareholders’ equity                           4,735,867         4,289,125
Total liabilities and shareholders’            $ 10,900,780      $ 10,474,680
equity
                                                                    
                                                                    

                                         
AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(THOUSANDS)

(UNAUDITED)
                                             
                                             Nine Months Ended
                                             March 29, 2014   March 30, 2013
Cash flows from operating activities:
Net income                                   $  359,339         $  323,982
Non-cash and other reconciling items:
Depreciation                                 67,392             65,284
Amortization                                 33,081             23,844
Deferred income taxes                        20,850             9,037
Stock-based compensation                     33,896             35,923
Gain on bargain purchase                     —                  (31,350     )
Other, net                                   54,824             57,800
Changes in (net of effects from
businesses acquired):
Receivables                                  (55,853     )      (2,897      )
Inventories                                  (114,258    )      192,244
Accounts payable                             (148,825    )      (175,909    )
Accrued expenses and other, net              (46,541     )      (68,544     )
Net cash flows provided by operating         203,905           429,414     
activities
                                                                
Cash flows from financing activities:
Issuance of notes in public offering,        —                  349,258
net of issuance cost
Repayment of notes                           (300,000    )      —
Borrowings (repayments) under accounts       230,000            (259,000    )
receivable securitization program, net
Borrowings (repayments) of bank and          56,658             (191,775    )
other debt, net
Repurchases of common stock                  (1,252      )      (207,192    )
Dividends paid on common stock               (62,009     )      —
Other, net                                   10,390            4,499       
Net cash flows used by financing             (66,213     )      (304,210    )
activities
                                                                
Cash flows from investing activities:
Purchases of property, plant and             (81,232     )      (75,415     )
equipment
Acquisitions of businesses, net of           (116,882    )      (244,062    )
cash acquired
Cash proceeds from divestitures, net         —                  3,613
of cash divested
Other, net                                   4,058             289         
Net cash flows used by investing             (194,056    )      (315,575    )
activities
                                                                            
Effect of exchange rate changes on           7,170             4,431       
cash and cash equivalents
                                                                            
Cash and cash equivalents:
— (decrease)                                 (49,194     )      (185,940    )
— at beginning of period                     1,009,343         1,006,864   
— at end of period                           $  960,149        $  820,924  
                                                                            
                                                                            

                                                
AVNET, INC.

SEGMENT INFORMATION

(MILLIONS)

(UNAUDITED)
                                                       
                     Third Quarters Ended              Nine Months Ended
                     March 29,     March 30,         March 29,      March 30,
                     2014            2013*             2014             2013*
Sales:
Electronics          $ 4,133.0       $ 3,797.2         $ 12,225.9       $ 11,123.8
Marketing
Technology           2,550.6        2,501.5          8,225.0         7,744.4    
Solutions
Consolidated         $ 6,683.6      $ 6,298.7        $ 20,450.9      $ 18,868.2 
Sales
Operating
Income:
Electronics          $ 193.4         $ 165.0           $ 540.9          $ 457.1
Marketing
Technology           60.9            68.6              243.7            220.4
Solutions
Corporate            (30.5     )     (29.9     )       (98.1      )     (100.9     )
                     223.8           203.7             686.5            576.7
Restructuring,
integration          (26.1     )     (27.3     )       (66.6      )     (89.7      )
and other
expenses
Amortization
of intangible        (12.9     )     (8.7      )       (34.5      )     (23.8      )
assets and
other
Consolidated
Operating            $ 184.8        $ 167.6          $ 585.4         $ 463.2    
Income
                                                                                   
* Sub-totals and totals may not foot due to rounding

Contact:

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