Quarterly revenues of $4.2 billion
Operating cash flow of $730 million for fiscal year 2020 and $288 million for the quarter
PHOENIX — (BUSINESS WIRE) — August 6, 2020 — Avnet, Inc. (Nasdaq: AVT) today announced results for its fourth quarter and fiscal year ended June 27, 2020.
Fiscal Fourth Quarter Key Financial Highlights:
- Sales of $4.2 billion, compared with $4.3 billion in the previous quarter and $4.7 billion in the prior year quarter.
-
GAAP diluted earnings per share from continuing operations of $0.53, compared with loss per share of $0.33 a year ago.
- Non-GAAP adjusted diluted EPS of $0.64 compared with $0.95 a year ago.
- GAAP and Non-GAAP diluted EPS was positively impacted by $0.42 from lower tax expense and $0.08 from lower interest expense and favorable foreign currency gains as compared to the prior quarter.
-
GAAP operating income totaled $1.9 million, compared with GAAP operating loss of $30 million a year ago.
- Adjusted operating income of $42.9 million, compared with $156.3 million a year ago.
-
GAAP operating margin of 0.1%, compared with GAAP operating loss margin of (0.6)% a year ago.
- Adjusted operating income margin was 1.0%, compared with 3.3% a year ago.
- Cash flow from operations totaled $288 million in the quarter, up sequentially from $98 million in the previous quarter.
- Adjusted operating expenses improved by $16 million compared to the previous quarter and by $7 million compared to the prior year quarter.
- For fiscal year 2020, cash flow from continuing operations totaled $730 million, up $139 million from fiscal year 2019.
- For fiscal year 2020, reduced debt by $296 million with net debt of $948 million at the end of the current fiscal year.
CEO Commentary
“In the fourth quarter, we delivered quarterly revenues above consensus and generated strong operating cash flow,” said Avnet Interim CEO Phil Gallagher. “Despite the challenges of the COVID-19 operating environment, we are committed to improving our bottom-line results. In fiscal year 2021, we will enhance our core distribution business capabilities, while helping our current and future supplier partners deploy their technologies to over two million customers.”
Gallagher continued, “I want to thank all of our employees for their continued dedication and commitment to Avnet, especially during the uncertainties of the pandemic. Our people’s health and safety remains our top priority. As we enter fiscal year 2021, we will work to manage our costs while still making investments in the business that will ensure we are well-positioned to benefit as the market recovers.”
Key Financial Metrics
($ in millions, except per share data)
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Fourth Quarter Results (GAAP) |
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Jun – 20 |
Jun – 19 |
Change Y/Y |
Mar – 20 |
Change Q/Q |
||||||||
Sales |
$ |
4,159.7 |
|
$ |
4,680.9 |
|
(11.1 |
)% |
$ |
4,309.8 |
|
(3.5 |
)% |
Operating Income (Loss) |
|
1.9 |
|
|
(30.0 |
) |
106.4 |
% |
|
(115.8 |
) |
101.7 |
% |
Operating Income (Loss) Margin |
|
0.1 |
% |
|
(0.6 |
)% |
69 |
bps |
|
(2.7 |
)% |
274 |
bps |
| Diluted Earnings (Loss) Per Share |
$ |
0.53 |
|
$ |
(0.33 |
) |
260.6 |
% |
$ |
(1.29 |
) |
141.1 |
% |
| Fourth Quarter Results (Non-GAAP) (1) |
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|
|
Jun – 20 |
Jun – 19 |
Change Y/Y |
Mar – 20 |
Change Q/Q |
||||||||
| Sales |
$ |
4,159.7 |
|
$ |
4,680.9 |
|
(11.1 |
)% |
$ |
4,309.8 |
|
(3.5 |
)% |
| Adjusted Operating Income |
|
42.9 |
|
|
156.3 |
|
(72.5 |
)% |
|
70.4 |
|
(39.0 |
)% |
| Adjusted Operating Income Margin |
|
1.0 |
% |
|
3.3 |
% |
(231 |
) bps |
|
1.6 |
% |
(60 |
) bps |
| Adjusted Diluted Earnings Per Share |
$ |
0.64 |
|
$ |
0.95 |
|
(32.6 |
)% |
$ |
0.38 |
|
68.4 |
% |
| Segment and Geographical Mix |
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|
|
Jun – 20 |
Jun – 19 |
Change Y/Y |
Mar – 20 |
Change Q/Q |
||||||||
| Electronic Components (EC) Sales |
$ |
3,867.6 |
|
$ |
4,337.5 |
|
(10.8 |
)% |
$ |
3,974.7 |
|
(2.7 |
)% |
| EC Operating Income Margin |
|
1.5 |
% |
|
3.3 |
% |
(173 |
) bps |
|
2.1 |
% |
(61 |
) bps |
| Farnell Sales |
$ |
292.1 |
|
$ |
343.4 |
|
(15.0 |
)% |
$ |
335.1 |
|
(12.9 |
)% |
| Farnell Operating Income Margin |
|
3.6 |
% |
|
9.7 |
% |
(610 |
) bps |
|
7.0 |
% |
(340 |
) bps |
| Americas Sales |
$ |
1,149.3 |
|
$ |
1,266.3 |
|
(9.2 |
)% |
$ |
1,203.6 |
|
(4.5 |
)% |
| EMEA Sales |
|
1,344.2 |
|
|
1,638.5 |
|
(18.0 |
)% |
|
1,512.5 |
|
(11.1 |
)% |
| Asia Sales |
|
1,666.2 |
|
|
1,776.1 |
|
(6.2 |
)% |
|
1,593.7 |
|
4.6 |
% |
| ______________________________ | ||
| (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. |
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