Cash Flow/Dividend
- Cash used for operations was $28.0 million for the quarter
- Cash generated from operations on a trailing 12 months was $134.6 million
- The Company paid a quarterly dividend of $0.15 per share ($20.6 million) or $41.3 million fiscal year to date
- Cash and cash equivalents at the end of the quarter was $779.3 million; net debt (total debt less cash and cash equivalents) was approximately $1.4 billion
Kevin Moriarty, Chief Financial Officer, stated, “Although our team delivered higher operating income with improved working capital velocity, the stronger than expected revenue close at the end of December at TS drove a higher than expected increase in accounts receivable. As a result, we used $28 million of cash for operations to support the resultant increase in working capital. The Avnet team continues to do a good job managing working capital velocity as we invest in profitable organic growth while maintaining our disciplined approach to capital allocation, including value creating M&A.”
Outlook for Third Quarter of Fiscal 2014 Ending on March 29, 2014
- EM sales are expected to be in the range of $4.0 billion to $4.3 billion and TS sales are expected to be between $2.6 billion to $2.9 billion
-
After adjusting for the changes in foreign currency exchange rates,
the midpoint of the above guidance would represent essentially flat
sequential growth for EM and -16% for TS. For the March quarter, EM's
normal seasonality is +4% to +7% and TS' normal seasonality is -20% to
-16%
- This guidance for EM reflects normal seasonality in our western regions and below normal seasonality in our Asia region due to an expected decline in the high volume fulfillment business
- 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 $1.02 to $1.12 per share
- The EPS guidance assumes 140.1 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 Euro to U.S. Dollar currency exchange rate for the third quarter of fiscal 2014 is $1.36 to €1.00. This compares with an average exchange rate of $1.32 to €1.00 in the third quarter of fiscal 2013 and $1.36 to €1.00 in the second 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.