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
"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."
"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
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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 .