Avnet Reports Fiscal Fourth Quarter and 2018 Financial Results
PHOENIX--(BUSINESS WIRE)--Aug 8, 2018--Avnet, Inc. (Nasdaq: AVT ) today announced results for the fourth quarter and fiscal year ended June 30, 2018.
Fourth Quarter Key Financial HighlightsSales of $5.06 billion increased 9.8% year over year Sales grew 6.7% year over year in constant currency GAAP operating income margin of 2.5% Non-GAAP adjusted operating income margin improved year over year to 3.7% GAAP diluted EPS from continuing operations of $0.49 Non-GAAP diluted EPS of $0.99 increased 18% year over year Delivered the strongest adjusted operating income dollars and margin performance in five quarters Net working capital days improved sequentially by 7 days, from 93 to 86, and improved 14 days from the second quarter Cash flow from operations reached $236 million
“We closed fiscal 2018 with great momentum in revenue growth, earnings and cash flow generation,” said Bill Amelio, Chief Executive Officer, Avnet. “Avnet’s unique ecosystem gives our customers access to an unparalleled suite of capabilities. We can now guide our enterprise and startup customers alike from idea to product and product to market. We do this by reducing complexity and delivering solutions that get products to market quickly and cost effectively. Our ecosystem is foundational, and when coupled with our ongoing transformation initiatives, we see a very exciting road ahead.”
“Our transformation efforts are contributing meaningfully toward our goals of growing Avnet’s higher margin businesses, reducing our expenses and optimizing working capital. This progress culminated in $236 million of cash flow from operations in the fourth quarter, Avnet’s best operating cash flow performance in five years,” stated Tom Liguori, Chief Financial Officer, Avnet. ”Our focus on optimizing operating expenses resulted in an additional $37 million of savings being implemented at the end of the fourth quarter to further streamline expenses as we enter fiscal year 2019.”
Additional Fourth Quarter HighlightsNamed a global distribution partner for Microsemi Corp., a wholly owned subsidiary of Microchip Technology. This expands Avnet’s multi-year relationship with Microchip, and gives Avnet customers access to Microsemi’s complete portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets. Added three new suppliers to the Electronic Components business and four new suppliers to Premier Farnell Surpassed one million members in Avnet’s online communities of element14 and Hackster.io, more than double the members from one year ago Earned a ranking in the top 10 on the 2018 Gartner Supply Chain Top 25 list Expanded the Company’s industry expertise by adding semiconductor veteran Oleg Khaykin to Avnet’s board of directors, where he serves on the audit and the corporate governance committees Strengthened the Electronic Components business unit by adding Tony Roybal, who joined Avnet as regional president, Americas Electronic Components, reporting to Phil Gallagher Continued to maintain a strong book-to-bill ratio above 1.0 across all regions Delivered the strongest sales quarter of the year for the Electronic Components business with 6% sales growth sequentially Doubled online sales year-over-year Repurchased 2.9 million Avnet shares for $117 million Paid $0.19 per share dividend for a total of $22.1 million Reported end of quarter cash and cash equivalents of $621.1 million; debt was $1.7 billion with a leverage ratio of approximately 2.2
Outlook for the First Quarter of Fiscal 2019 Ending on September 29, 2018
The above guidance excludes any additional acquisitions, any results of discontinued operations, amortization of intangibles, accelerated depreciation, any potential restructuring, integration, and other expenses and certain income tax adjustments including certain impacts of the recent tax law changes in the U.S. The above guidance assumes 117 million average diluted shares outstanding and the average U.S. Dollar to Euro currency exchange rate for the first quarter of fiscal 2019 is $1.16 to €1.00. This compares with an average exchange rate of $1.17 to the Euro in the first quarter of fiscal 2018.
Today’s Conference Call and Webcast Details:
Avnet will host a quarterly teleconference and webcast today at 1:30 p.m. PDT. The live webcast can be accessed from the following link Avnet Earnings Call Webcast and Slides and will be available for 90 days.
To participate in the live call, dial 877-407-8112 or 201-689-8840. To access the slides follow the webcast link above, or the slides can be accessed via Avnet’s Investor Relations web page at: www.ir.avnet.com.
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,” “intend,” “estimate,” “forecast,” “expect,” “feel,” “believe,” “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 differ 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: Avnet’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, implementing and maintaining ERP systems, supplier losses and changes to supplier programs, an industry down-cycle in semiconductors, 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 price discounts 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 Avnet’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.
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. Visit the Avnet Investor Relations website at www.ir.avnet.com or contact us at firstname.lastname@example.org. (AVT_IR)
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