Avnet Reports Fourth Quarter and Fiscal 2022 Financial Results
08/10/2022 - 04:05 PM
Fourth quarter sales of $6.4 billion and operating income margin of 4.5%
Fiscal 2022 sales of $24.3 billion and record diluted EPS of $6.94
Farnell achieves record revenues of $1.8 billion with operating margin over 13%
PHOENIX --(BUSINESS WIRE)--
Avnet, Inc. (Nasdaq: AVT ) today announced results for its fourth quarter and fiscal year ended July 2, 2022 .
Commenting on the Company’s financial results, Avnet Chief Executive Officer Phil Gallagher stated, “We are pleased to end the fiscal year on a high note, delivering another strong quarter of year-over-year sales growth and operating margin expansion. Supported by solid execution across our businesses, Avnet continues to gain share and secure new opportunities in the markets in which we compete. Despite an evolving macro environment, we remain well-positioned to continue to grow our business profitably by helping our customers and suppliers navigate an increasingly complex market.”
Fiscal Fourth Quarter Key Financial Highlights:
Sales of $6.4 billion up 21.9% year over year from $5.2 billion .
On a constant currency basis, sales increased 28.2% year over year.
GAAP diluted earnings per share increased to $2.51 , compared with $0.85 in the prior year quarter.
Non-GAAP adjusted diluted earnings per share of $2.07 , compared with $1.12 in the prior year quarter.
GAAP operating income margin of 4.5% , increased 221 basis points year over year.
Adjusted operating income margin of 4.5% , increased 161 basis points year over year.
Electronic Components operating income margin of 4.3% , increased 122 basis points year over year.
Farnell operating income margin of 14.2% increased 597 basis points year over year.
Returned $25 million to shareholders in dividends during the quarter, an 18% per share increase year over year.
Returned $102 million to shareholders in the quarter from share repurchases, representing 2.4% of outstanding shares.
Fiscal 2022 Key Financial Highlights:
Sales of $24.3 billion up 24.5% year over year from $19.5 billion .
On a constant currency basis, sales increased 27.2% year over year.
GAAP diluted earnings per share increased to $6.94 , compared with $1.93 in the prior year.
Non-GAAP adjusted diluted earnings per share of $6.93 , compared with $2.71 in the prior year.
GAAP operating income margin of 3.9% , increased 242 basis points year over year.
Adjusted operating income margin of 4.1% , increased 197 basis points year over year.
Electronic Components operating income margin of 3.9% , increased 135 basis points year over year.
Farnell operating income margin of 13.4% increased 764 basis points year over year.
Returned $98 million to shareholders in dividends during the fiscal year.
Returned $193 million to shareholders in the fiscal year from share repurchases, representing 4.7% of outstanding shares.
Key Financial Metrics
($ in millions, except per share data)
Fourth Quarter Results (GAAP)
Jun – 22
Jun – 21
Change Y/Y
Mar – 22
Change Q/Q
Sales
$
6,372.7
$
5,226.7
21.9
%
$
6,488.1
(1.8
)%
Operating Income
284.7
118.0
141.3
%
274.4
3.8
%
Operating Income Margin
4.5
%
2.3
%
221
bps
4.2
%
24
bps
Diluted Earnings Per Share (EPS)
$
2.51
$
0.85
195.3
%
$
1.84
36.4
%
Fourth Quarter Results (Non-GAAP)(1)
Jun – 22
Jun – 21
Change Y/Y
Mar – 22
Change Q/Q
Sales
$
6,372.7
$
5,226.7
21.9
%
$
6,488.1
(1.8
)%
Adjusted Operating Income
287.6
151.8
89.5
%
303.7
(5.3
)%
Adjusted Operating Income Margin
4.5
%
2.9
%
161
bps
4.7
%
(17
)bps
Adjusted Diluted Earnings Per Share (EPS)
$
2.07
$
1.12
84.8
%
$
2.15
(3.7
)%
Segment and Geographical Mix
Jun – 22
Jun – 21
Change Y/Y
Mar – 22
Change Q/Q
Electronic Components (EC) Sales
$
5,930.4
$
4,785.3
23.9
%
$
6,019.1
(1.5
)%
EC Operating Income Margin
4.3
%
3.1
%
122
bps
4.4
%
(9
)bps
Farnell Sales
$
442.3
$
441.4
0.2
%
$
469.0
(5.7
)%
Farnell Operating Income Margin
14.2
%
8.3
%
597
bps
14.9
%
(65
)bps
Americas Sales
$
1,618.4
$
1,194.4
35.5
%
$
1,627.2
(0.5
)%
EMEA Sales
2,064.0
1,737.3
18.8
%
2,185.7
(5.6
)%
Asia Sales
2,690.3
2,295.0
17.2
%
2,675.2
0.6
%
______________________
(1)
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release.
Outlook for the First Quarter of Fiscal 2023 Ending on October 1, 2022
Guidance Range
Midpoint
Sales
$6.20B – $6.50B
$6.35B
Adjusted Diluted EPS(1)
$1.85 – $1.95
$1.90
______________________
(1)
A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release.
The above guidance is based upon current market conditions, including a $100 million negative impact on sales at mid-point of guidance from the recent strengthening of the U.S. Dollar as compared to the fourth quarter. This guidance implies a sequential growth rate range of down 1% to up 4% in constant currency, and assumes a typical seasonal shift in sales to Asia from the western regions.
The above guidance also excludes amortization of intangibles and certain income tax adjustments. The above guidance assumes an effective tax rate of between 21% and 25% . The above guidance assumes 96 million average diluted shares outstanding and average currency exchange rates as shown in the table below:
Q1 Fiscal
2023
Q4 Fiscal
Q1 Fiscal
Guidance
2022
2022
Euro to U.S. Dollar
$1.02
$1.06
$1.18
GBP to U.S. Dollar
$1.20
$1.26
$1.38
Today’s Conference Call and Webcast Details
Avnet will host a quarterly webcast and teleconference today at 1:30 p.m. PT and 4:30 p.m. ET to discuss its financial results and provide a corporate update. The webcast can be accessed via Avnet’s Investor Relations web page at: https://ir.avnet.com .
Those who would still like to participate in the live call can dial 877-407-8112 or 201-689-8840. A replay of the conference call will be available for 90 days, through November 8, 2022 at 5:00 p.m. ET , and can be accessed by dialing: 877-660-6853 or 201-612-7415 and using Conference ID: 13730217.
Forward-Looking Statements
This document contains 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, with respect to the financial condition, results of operations and business of the Company. You can find many of these statements by looking for words like “believes,” “projected”, “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2021 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: geopolitical events and military conflicts; pandemics and other health-related crises, including COVID-19; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors, including supply shortages; relationships with key suppliers and allocations of products by suppliers, including increased non-cancellable/non-returnable orders; accounts receivable defaults; risks relating to the Company’s international sales and operations, including risks relating to the ability to repatriate cash, foreign currency fluctuations, inflation, duties and taxes, sanctions and trade restrictions, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures and investments; adverse effects on the Company’s supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers and suppliers, including as a result of issues caused by military conflicts, terrorist attacks, natural and weather-related disasters, pandemics and health related crisis, warehouse modernization and relocation efforts; risks related to cyber security attacks, other privacy and security incidents and information systems failures, including related to current or future implementations, integrations or upgrades; general economic and business conditions (domestic, foreign and global) affecting the Company’s operations and financial performance and, indirectly, the Company’s credit ratings, debt covenant compliance, liquidity and access to financing; constraints on employee retention and hiring; and legislative or regulatory changes affecting the Company’s businesses.
Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.
About Avnet
As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for an entire century. We support customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Our unique position at the center of the technology value chain enables us to accelerate the design and supply stages of product development so customers can realize revenue faster. Decade after decade, Avnet helps its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com . (AVT_IR)
AVNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Fourth Quarters Ended
Years Ended
July 2 ,
July 3 ,
July 2 ,
July 3 ,
2022
2021
2022
2021
(Thousands, except per share data)
Sales
$
6,372,653
$
5,226,734
$
24,310,708
$
19,534,679
Cost of sales
5,593,022
4,581,787
21,345,317
17,294,049
Gross profit
779,631
644,947
2,965,391
2,240,630
Selling, general and administrative expenses
494,943
498,497
1,994,847
1,874,831
Russian-Ukraine conflict related expenses
—
—
26,261
—
Restructuring, integration and other expenses
—
28,449
5,272
84,391
Operating income
284,688
118,001
939,011
281,408
Other expense, net
(6,160
)
(2,955
)
(5,302
)
(19,006
)
Interest and other financing expenses, net
(29,987
)
(23,345
)
(100,375
)
(89,473
)
Income before taxes
248,541
91,701
833,334
172,929
Income tax expense (benefit)
1,718
6,346
140,955
(20,185
)
Net income
$
246,823
$
85,355
$
692,379
$
193,114
Earnings per share:
Basic
$
2.54
$
0.86
$
7.02
$
1.95
Diluted
$
2.51
$
0.85
$
6.94
$
1.93
Shares used to compute earnings per share:
Basic
97,309
99,655
98,662
99,258
Diluted
98,387
100,630
99,819
100,168
Cash dividends paid per common share
$
0.26
$
0.22
$
1.00
$
0.85
AVNET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
July 2 ,
July 3 ,
2022
2021
(Thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
153,693
$
199,691
Receivables
4,301,002
3,576,130
Inventories
4,244,148
3,236,837
Prepaid and other current assets
177,783
150,763
Total current assets
8,876,626
7,163,421
Property, plant and equipment, net
315,204
368,452
Goodwill
758,833
838,105
Intangible assets, net
12,651
28,539
Operating lease assets
227,138
265,988
Other assets
198,080
260,917
Total assets
$
10,388,532
$
8,925,422
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$
174,422
$
23,078
Accounts payable
3,431,683
2,401,357
Accrued expenses and other
591,020
572,457
Short-term operating lease liabilities
54,529
58,346
Total current liabilities
4,251,654
3,055,238
Long-term debt
1,437,400
1,191,329
Long-term operating lease liabilities
199,418
239,838
Other liabilities
307,300
354,833
Total liabilities
6,195,772
4,841,238
Shareholders’ equity
4,192,760
4,084,184
Total liabilities and shareholders’ equity
$
10,388,532
$
8,925,422
AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Years Ended
July 2, 2022
July 3, 2021
(Thousands)
Cash flows from operating activities:
Net income
$
692,379
$
193,114
Non-cash and other reconciling items:
Depreciation
87,367
90,884
Amortization
14,959
41,033
Amortization of operating lease assets
52,881
56,782
Deferred income taxes
(52,513
)
14,650
Stock-based compensation
36,738
29,339
Impairments
—
15,166
Other, net
34,116
22,512
Changes in (net of effects from businesses acquired and divested):
Receivables
(1,132,039
)
(615,353
)
Inventories
(1,218,871
)
(409,075
)
Accounts payable
1,131,225
620,973
Accrued expenses and other, net
134,448
30,924
Net cash flows (used) provided by operating activities
(219,310
)
90,949
Cash flows from financing activities:
Issuance of notes, net of discounts
299,973
297,660
Repayments of public notes
(354,336
)
(305,077
)
Borrowings under accounts receivable securitization, net
274,900
22,900
Repayments under senior unsecured credit facility, net
—
(231,680
)
Borrowings (repayments) under bank credit facilities and other debt, net
235,047
(2,789
)
Repurchases of common stock
(184,382
)
—
Dividends paid on common stock
(98,490
)
(84,309
)
Other, net
(16,653
)
(10,718
)
Net cash flows provided (used) for financing activities
156,059
(314,013
)
Cash flows from investing activities:
Purchases of property, plant and equipment
(48,900
)
(50,363
)
Acquisitions of assets and businesses
—
(18,381
)
Proceeds from liquidation of Company owned life insurance policies
90,384
—
Other, net
9,815
7,548
Net cash flows provided (used) for investing activities
51,299
(61,196
)
Effect of currency exchange rate changes on cash and cash equivalents
(34,046
)
6,913
Cash and cash equivalents:
— decrease
(45,998
)
(277,347
)
— at beginning of period
199,691
477,038
— at end of period
$
153,693
$
199,691
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 certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted operating expenses, (iii) adjusted other income (expense), (iv) adjusted income before income taxes, (v) adjusted income tax expense (benefit), (vi) adjusted diluted earnings per share, and (vii) sales adjusted for the impact of significant acquisitions and other items (as defined in the Organic Sales section of this document).
There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company’s results of operations, results excluding this impact are referred to as “constant currency.” Management believes organic sales and sales in constant currency are useful measures for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.
Management believes that operating income and operating expenses adjusted for restructuring, integration and other expenses, Russian-Ukraine conflict related expenses and amortization of acquired intangible assets and other, are useful measures to help investors better assess and understand the Company’s operating performance. This is especially the case 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 and operating expenses 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 most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, Russian-Ukraine conflict related expenses and amortization of acquired intangible assets and other.
Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.
Management also believes income tax expense (benefit), net income and diluted earnings (loss) per share adjusted for the impact of the items described above and certain items impacting other income (expense) and income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the adjusted interim effective tax rate based upon the expected annual adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income (loss) and diluted earnings (loss) per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public.
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.
Quarters Ended
Fiscal Year
July 2 ,
April 2 ,
January 1 ,
October 2 ,
2022*
2022*
2022*
2022*
2021*
($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses
$
1,994,847
$
494,943
$
512,364
$
501,363
$
486,178
Amortization of intangible assets and other
(15,038
)
(2,929
)
(3,074
)
(3,796
)
(5,239
)
Adjusted operating expenses
1,979,809
492,014
509,290
497,567
480,939
GAAP operating income
$
939,011
$
284,688
$
274,408
$
211,672
$
168,243
Restructuring, integration and other expenses
5,272
-
-
-
5,272
Russian-Ukraine conflict related expenses
26,261
-
26,261
-
-
Amortization of intangible assets and other
15,038
2,929
3,074
3,796
5,239
Adjusted operating income
985,582
287,617
303,743
215,468
178,754
GAAP income before income taxes
$
833,334
$
248,541
$
248,025
$
191,779
$
144,990
Restructuring, integration and other expenses
5,272
-
-
-
5,272
Russian-Ukraine conflict related expenses
26,261
-
26,261
-
-
Amortization of intangible assets and other
15,038
2,929
3,074
3,796
5,239
Other expenses
4,935
4,494
-
-
441
Adjusted income before income taxes
884,840
255,964
277,360
195,575
155,942
GAAP income tax expense
$
140,955
$
1,718
$
64,608
$
40,958
$
33,672
Restructuring, integration and other expenses
1,012
-
-
-
1,012
Russian-Ukraine conflict related expenses
6,836
-
6,836
-
-
Amortization of intangible assets and other
3,080
711
667
704
998
Other expenses
1,092
956
-
-
136
Income tax benefit (expense) items, net
40,376
49,142
(8,613
)
2,917
(3,070
)
Adjusted income tax expense
193,351
52,527
63,498
44,579
32,748
GAAP net income
$
692,379
$
246,823
$
183,417
$
150,821
$
111,318
Restructuring, integration and other expenses (net of tax)
4,260
-
-
-
4,260
Russian-Ukraine conflict related expenses (net of tax)
19,425
-
19,425
-
-
Amortization of intangible assets and other (net of tax)
11,958
2,218
2,407
3,092
4,241
Other expenses (net of tax)
3,843
3,538
-
-
305
Income tax (benefit) expense items, net
(40,376
)
(49,142
)
8,613
(2,917
)
3,070
Adjusted net income
691,489
203,437
213,862
150,996
123,194
GAAP diluted earnings per share
$
6.94
$
2.51
$
1.84
$
1.50
$
1.10
Restructuring, integration and other expenses (net of tax)
0.04
-
-
-
0.04
Russian-Ukraine conflict related expenses (net of tax)
0.19
-
0.20
-
-
Amortization of intangible assets and other (net of tax)
0.12
0.02
0.02
0.03
0.04
Other expenses (net of tax)
0.04
0.04
-
-
0.00
Income tax (benefit) expense items, net
(0.40
)
(0.50
)
0.09
(0.03
)
0.03
Adjusted diluted EPS
6.93
2.07
2.15
1.51
1.22
______________________
* May not foot/cross due to rounding and differences in average diluted shares between quarterly periods compared to the fiscal year to date
Quarters Ended
Fiscal Year
July 3 ,
April 3 ,
January 2 ,
October 3 ,
2021*
2021
2021
2021
2020
($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses
$
1,874,831
$
498,497
$
463,092
$
442,084
$
471,158
Amortization of intangible assets and other
(41,245
)
(5,370
)
(5,283
)
(10,417
)
(20,175
)
Adjusted operating expenses
1,833,586
493,127
457,809
431,667
450,983
GAAP operating income
$
281,408
$
118,001
$
87,684
$
57,221
$
18,502
Restructuring, integration and other expenses
84,391
28,449
17,574
11,948
26,420
Amortization of intangible assets and other
41,245
5,370
5,283
10,417
20,175
Adjusted operating income
407,044
151,820
110,541
79,586
65,097
GAAP income (loss) before income taxes
$
172,929
$
91,701
$
70,121
$
34,403
$
(23,297
)
Restructuring, integration and other expenses
84,391
28,449
17,574
11,948
26,420
Amortization of intangible assets and other
41,245
5,370
5,283
10,417
20,175
Other expenses - equity investment impairments and other
20,413
5,139
-
51
15,223
Adjusted income before income taxes
318,978
130,659
92,978
56,819
38,521
GAAP income tax expense (benefit)
$
(20,185
)
$
6,346
$
(37,363
)
$
15,240
$
(4,408
)
Restructuring, integration and other expenses
17,468
6,172
4,118
2,577
4,601
Amortization of intangible assets and other
9,099
1,025
1,008
2,037
5,029
Other expenses - equity investment impairments and other
90
38
-
26
26
Income tax benefit (expense) items, net
41,275
4,091
50,682
(10,788
)
(2,710
)
Adjusted income tax expense
47,747
17,672
18,445
9,092
2,538
GAAP net income (loss)
$
193,114
$
85,355
$
107,484
$
19,163
$
(18,889
)
Restructuring, integration and other expenses (net of tax)
66,923
22,277
13,456
9,371
21,819
Amortization of intangible assets and other (net of tax)
32,146
4,345
4,275
8,380
15,146
Other expenses - equity investment impairments and other (net of tax)
20,323
5,101
-
25
15,197
Income tax (benefit) expense items, net
(41,275
)
(4,091
)
(50,682
)
10,788
2,710
Adjusted net income
271,231
112,987
74,533
47,727
35,983
GAAP diluted earnings (loss) per share
$
1.93
$
0.85
$
1.07
$
0.19
$
(0.19
)
Restructuring, integration and other expenses (net of tax)
0.67
0.22
0.13
0.09
0.22
Amortization of intangible assets and other (net of tax)
0.32
0.04
0.04
0.09
0.15
Other expenses - equity investment impairments and other (net of tax)
0.20
0.05
-
0.00
0.15
Income tax (benefit) expense items, net
(0.41
)
(0.04
)
(0.50
)
0.11
0.03
Adjusted diluted EPS
2.71
1.12
0.74
0.48
0.36
______________________
* May not foot/cross due to rounding and differences in average diluted shares between quarterly periods compared to the fiscal year to date.
Organic Sales
Organic sales is defined as sales adjusted for the impact of significant acquisitions, divestitures and other items by adjusting Avnet’s prior and current periods (if necessary) 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. Additionally, fiscal 2021 sales are adjusted for the estimated impact of the extra week of sales in the first quarter of fiscal 2021 due to the 14-week fiscal first quarter and the 53-week fiscal year. Organic sales in constant currency is defined as organic sales (as defined above) excluding the impact of changes in foreign currency exchange rates.
As a result of declining sales due to the termination of the TI distribution agreement in December 2020 , organic sales growth rates have also been adjusted to exclude sales of TI products.
Reported sales were the same as organic sales for the fourth quarter and full year of fiscal 2022. Reported sales were the same as organic sales for the fourth quarter of fiscal 2021. The following table presents the reconciliation of reported sales to organic sales for fiscal 2021.
Year Ended
Sales
As Reported
Q4-Fiscal
2021
Estimated
Extra
Week in
Fiscal
2021(2)
TI Sales
Q4-Fiscal
2021(1)
Organic
Sales
Adj for TI
Q4-Fiscal
2021(1)
(in millions)
Avnet
$
19,534.7
$
306.0
$
292.2
$
18,936.5
Avnet by region
Americas
$
4,662.5
$
77.0
$
82.9
$
4,502.6
EMEA
6,149.9
97.0
124.2
5,928.7
Asia
8,722.3
132.0
85.1
8,505.2
Avnet by segment
EC
$
18,030.5
$
284.0
$
292.2
$
17,454.3
Farnell
1,504.2
22.0
—
1,482.2
______________________
(1)
Sales adjusted for the impact of the termination of the TI distribution agreement.
(2)
The impact of the additional week of sales in the first quarter of fiscal 2021 is estimated.
The following table presents reported and organic sales growth rates for the fourth quarter and full year of fiscal 2022 compared to fiscal 2021.
Quarter Ended
Year Ended
Sales
As Reported
and Organic
Year-Year
% Change
Sales
As Reported
and Organic
Year-Year %
Change in
Constant
Currency
Sales
As Reported
Year-Year
% Change
Sales
As Reported
Year-Year %
Change in
Constant
Currency
Organic
Sales
Year-Year
% Change
Organic
Sales
Year-Year %
Change in
Constant
Currency
Organic
Sales
Adj for TI
Year-Year %
Change in
Constant
Currency(1)
Avnet
21.9
%
28.2
%
24.5
%
27.2
%
26.4
%
29.2
%
31.2
%
Avnet by region
Americas
35.5
%
35.5
%
26.5
%
26.5
%
28.6
%
28.6
%
31.0
%
EMEA
18.8
34.0
27.5
34.6
29.5
36.8
39.6
Asia
17.2
19.7
21.3
22.4
23.1
24.3
25.5
Avnet by segment
EC
23.9
%
30.1
%
24.8
%
27.6
%
26.8
%
29.6
%
31.8
%
Farnell
0.2
6.8
20.2
22.2
21.9
24.0
24.0
______________________
(1)
Sales growth rates excluding the impact of the termination of the TI distribution agreement.
Historical Segment Financial Information
Fiscal Year 2022
Quarters Ended
Third Quarter
Third Quarter
Second Quarter
First Quarter
Fiscal Year
July 2 ,
April 2 ,
January 1 ,
October 2 ,
2022*
2022*
2022
2022
2021
(in millions)
Sales:
Electronic Components
$
22,503.3
$
5,930.4
$
6,019.1
$
5,424.3
$
5,129.5
Farnell
1,807.4
442.3
469.0
440.9
455.2
Avnet sales
$
24,310.7
$
6,372.7
$
6,488.1
$
5,865.2
$
5,584.7
Operating income:
Electronic Components
$
872.0
$
255.6
$
265.0
$
188.9
$
162.4
Farnell
242.5
62.9
69.8
60.2
49.6
1,114.5
318.5
334.8
249.1
212.0
Corporate expenses
(128.9
)
(30.9
)
(31.1
)
(33.6
)
(33.3
)
Restructuring, integration and other expenses
(5.3
)
-
-
-
(5.3
)
Russian-Ukraine conflict related expenses
(26.3
)
-
(26.3
)
-
-
Amortization of acquired intangible assets and other
(15.0
)
(2.9
)
(3.1
)
(3.8
)
(5.2
)
Avnet operating income
$
939.0
$
284.7
$
274.4
$
211.7
$
168.2
Sales by geographic area:
Americas
$
5,896.0
$
1,618.4
$
1,627.2
$
1,391.5
$
1,258.8
EMEA
7,838.1
2,064.0
2,185.7
1,840.8
1,747.6
Asia
10,576.6
2,690.3
2,675.2
2,632.9
2,578.3
Avnet sales
$
24,310.7
$
6,372.7
$
6,488.1
$
5,865.2
$
5,584.7
______________________
* May not foot/cross due to rounding.
Fiscal Year 2021
Quarters Ended
Fourth Quarter
Third Quarter
Second Quarter
First Quarter
Fiscal Year
July 3 ,
April 3 ,
January 2 ,
October 3 ,
2021*
2021
2021
2021
2020
(in millions )
Sales:
Electronic Components
$
18,030.5
$
4,785.3
$
4,520.6
$
4,342.4
$
4,382.2
Farnell
1,504.2
441.4
396.1
325.8
340.9
Avnet
$
19,534.7
$
5,226.7
$
4,916.7
$
4,668.2
$
4,723.1
Operating income:
Electronic Components
$
454.8
$
147.8
$
118.6
$
103.9
$
84.4
Farnell
86.9
36.5
23.9
14.6
12.0
541.7
184.3
142.5
118.5
96.4
Corporate expenses
(134.7
)
(32.5
)
(31.9
)
(39.0
)
(31.3
)
Restructuring, integration and other expenses
(84.4
)
(28.4
)
(17.6
)
(11.9
)
(26.4
)
Amortization of acquired intangible assets and other
(41.2
)
(5.4
)
(5.3
)
(10.4
)
(20.2
)
Avnet operating income
$
281.4
$
118.0
$
87.7
$
57.2
$
18.5
Sales by geographic area:
Americas
$
4,662.5
$
1,194.4
$
1,161.0
$
1,101.5
$
1,205.7
EMEA
6,149.9
1,737.3
1,585.6
1,346.3
1,480.7
Asia
8,722.3
2,295.0
2,170.1
2,220.4
2,036.7
Avnet
$
19,534.7
$
5,226.7
$
4,916.7
$
4,668.2
$
4,723.1
______________________
* May not foot/cross due to rounding.
Guidance Reconciliation
The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the first quarter of fiscal 2023.
Low End of
High End of
Guidance Range
Guidance Range
Adjusted diluted earnings per share guidance
$
1.80
$
1.90
Amortization of intangibles and other (net of tax)
(0.02
)
(0.02
)
Income tax expense adjustments
(0.03
)
0.03
GAAP diluted earnings per share guidance
$
1.75
$
1.91
View source version on businesswire.com : https://www.businesswire.com/news/home/20220810005489/en/
Investor Relations Contacts
Joe Burke , 480-643-7431
Joseph.Burke@avnet.com
Media Relations Contact
Jeanne Forbis , 480-643-7499
Jeanne.Forbis@Avnet.com
Source: Avnet