Avnet Reports First Quarter Fiscal 2019 Financial Results

First quarter sales rose 9.2 percent year over year
GAAP diluted EPS rose 53 percent to $0.72; adjusted
diluted EPS rose 36 percent to $1.03�

PHOENIX, US - Media OutReach - October 26, 2018 - Avnet, Inc. (Nasdaq: AVT) today announced results for the first quarter ended
September 29, 2018.

 

First Quarter Key Financial Highlights

• Sales
  of $5.09 billion rose 9.2% year over year
• Sales
  grew 9.9% year over year in constant currency
• GAAP
  diluted EPS from continuing operations rose 53.2% to $0.72 year over year
• Adjusted
  diluted EPS from continuing operations increased 35.5% to $1.03 year over
  year
• GAAP
  operating income of $146.8 million rose 127.4% year over year
• Adjusted
  operating income of $182.5 million rose 33.7% year over year
• GAAP
  operating income margin of 2.9%
• Adjusted
  operating income margin of 3.6% expanded 66 basis points year over year
• Net
  working capital days declined by 1 day to 83 days

CEO Commentary

“We are pleased to report the continued positive
trend in profitability and growth entering fiscal year 2019,” said Bill Amelio,
Chief Executive Officer, Avnet. “With the introduction of Avnet’s new
comprehensive ecosystem last year, we have expanded our portfolio of services
significantly, which has resulted in first quarter growth among both our
existing customers as well as with new and non-traditional customers.”

CFO Commentary

“Our focus on cost management resulted in a $26.4
million reduction in selling, general, and administrative expenses year over
year on a 9.2% growth in revenue. We also took steps to realize greater
efficiencies longer term by opening a new distribution center in Hong Kong this
quarter,” said Tom Liguori, Chief Financial Officer, Avnet. “We reduced net
working capital days and remain on schedule for achieving our long term target
of 70 days. We continued implementing our capital allocation strategy by
repurchasing 3.3 million shares this quarter, and we increased our quarterly dividend
by more than 5% to $0.20 per share for a total return to shareholders of $179.8
million.”

Additional First Quarter Fiscal 2019 Highlights

• The Electronic Components business sales rose
  9.4% year over year to $4.7 billion with operating margins of 3.4%
• Premier Farnell sales rose 7.2% to $379
  million, with operating margins rising to 10.8% compared with 9.2% last
  year
• Asia continued to deliver the strongest growth
  by region with year-over-year sales rising 18%
• Sales in the Americas rose 7.3% year over year
  and operating margin continued to improve as recovery continues in the
  Americas
• Book-to-bill ratio at the end of the quarter
  remained positive at greater than 1.0
• Cash and cash equivalents at the end of the
  quarter was $365.9 million; net debt (total debt less cash and cash
  equivalents) was $1.20 billion
• Cash used for operations was $85 million
  primarily for inventory to support second quarter sales
• Received $120 million of additional proceeds
  from finalizing the sale price of the Technology Solutions Business, which
  was used to repurchase shares
• Expanded
  share repurchase authorization by $500 million, repurchased 3.3 million
  shares, and increased quarterly dividend by 5.3% to $0.20 per share for a
  total return to shareholders of $179.8 million during the quarter

 

For the full press release, please visit: https://news.avnet.com/press-release/avnet/avnet-reports-first-quarter-fiscal-2019-financial-results

 

All brands and trade names are trademarks or registered trademarks, and
are the properties of their respective owners. Avnet disclaims any proprietary
interest in marks other than its own.

 

Follow Avnet on Twitter: @Avnet

Connect with Avnet on LinkedIn: http://www.linkedin.com/company/avnet

Connect with Avnet on Facebook: http://www.facebook.com/AvnetInc

 

About Avnet

From idea to design and from
prototype to production, Avnet supports customers at each stage of a product’s
lifecycle. A comprehensive portfolio of design and supply chain services makes
Avnet the go-to guide for innovators who set the pace for technological change.
For nearly a century, Avnet has helped its customers and suppliers around the
world realize the transformative possibilities of technology. Learn more about
Avnet at www.avnet.com.