Financial Performance - Sales for fiscal 2023 were $26.54 billion, an increase of 9.2% from fiscal 2022 sales of $24.31 billion, with a constant currency increase of 13.4%[109] - Operating income for fiscal 2023 was $1.19 billion, a 26.4% increase from fiscal 2022, with an operating income margin of 4.5%[110] - Adjusted operating income for fiscal 2023 was $1.22 billion, a 23.9% increase from fiscal 2022, with an adjusted operating income margin of 4.6%[124] - Gross profit in fiscal 2023 was $3.18 billion, a 7.3% increase from fiscal 2022, with a gross profit margin of 12.0%[118] - The company's net income for fiscal 2023 was $770.8 million, with diluted earnings per share of $8.26, compared to $692.4 million and $6.94 in fiscal 2022, representing a year-over-year increase of 12.5% in net income[129] - Net income for the quarter was $770,828 thousand, compared to $692,379 thousand in the same quarter last year, reflecting an increase of about 11.3%[181] - Gross profit rose to $3,182,143 thousand, a 7.3% increase from $2,965,391 thousand year-over-year[181] - Earnings per share (diluted) increased to $8.26, up from $6.94, marking a growth of approximately 18.9%[181] Expenses and Costs - Selling, general and administrative expenses decreased by $27.5 million, or 1.4%, to $1.97 billion in fiscal 2023[119] - Interest and other financing expenses increased by $150.5 million, or 149.9%, to $250.9 million in fiscal 2023 due to higher borrowings and rates[125] - The company incurred $28.0 million in restructuring, integration, and other expenses in fiscal 2023, expecting $16.0 million in annualized operating cost savings[121] - The total income tax expense for fiscal 2023 was $212.048 million, compared to $140.955 million in fiscal 2022, reflecting an increase of 50.5%[259] - Operating lease costs for fiscal 2023 were $88.9 million, down from $94.4 million in fiscal 2022[290] Cash Flow and Working Capital - Cash flows from operating activities used $713.7 million in fiscal 2023, significantly higher than $219.3 million used in fiscal 2022, indicating increased working capital needs to support sales growth[129] - The company had cash and cash equivalents of $288.2 million as of July 1, 2023, an increase from $153.7 million a year earlier[140] - Net cash flows provided by financing activities were $1,054,756, a significant increase from $156,059 in the prior year[189] - Total cash and cash equivalents at the end of the period were $288,230, up from $153,693 at the beginning of the period, reflecting a net increase of $134,537[189] Debt and Financing - As of July 1, 2023, the company had $796.6 million in borrowings outstanding under the Credit Facility and $555.8 million under the Securitization Program, with combined availability of $846.7 million[143] - Total debt increased to $3.06 billion as of July 1, 2023, compared to $1.61 billion as of July 2, 2022[253] - The company issued notes with a net value of $498,615, compared to $299,973 in the prior year, indicating increased financing activity[189] Inventory and Receivables - The company had $5.5 billion in inventories as of July 1, 2023, with a cost of sales of $23.4 billion for the fiscal year, reflecting ongoing inventory purchases to meet customer demand[145] - Receivables increased to $4.88 billion as of July 1, 2023, compared to $4.41 billion as of July 2, 2022, while the allowance for credit losses was $112.8 million[238] Shareholder Returns - The company repurchased $221.7 million of common stock during fiscal 2023 and has an aggregate share repurchase authorization of $318.5 million[147] - The company paid dividends totaling $106.3 million in fiscal 2023, with a quarterly dividend of $0.29 per share approved in the fourth quarter[147] - Cash dividends paid per common share increased to $1.16 from $1.00, representing a 16.0% increase[181] Taxation - The effective tax rate for fiscal 2023 was 21.6%, up from 16.9% in fiscal 2022, primarily due to U.S. state taxes and valuation allowances against deferred tax assets[127] - The estimated liability for income tax contingencies was $130.5 million as of July 1, 2023, with expected cash payments of $1.0 million within the next 12 months[146] - The Company recognized deferred tax assets of $187.3 million and an income tax expense of $212.1 million for the year ended July 1, 2023[175] Assets and Liabilities - Total assets increased to $12,477,159 thousand, up from $10,388,532 thousand year-over-year, representing a growth of approximately 20.0%[179] - Total current assets reached $10,750,853 thousand, a significant increase of 21.0% from $8,876,626 thousand in the previous year[179] - Total liabilities rose to $7,725,490 thousand, up from $6,195,772 thousand, which is an increase of about 24.7%[179] - Long-term debt increased to $2,988,029 thousand, compared to $1,437,400 thousand, indicating a rise of approximately 107.7%[179] Pension and Benefits - Total net periodic pension cost for fiscal 2023 was $29.7 million, compared to a benefit of $2.9 million in fiscal 2022[282] - Contributions to the pension plan were $8.0 million in fiscal 2023, with an expectation of the same amount in fiscal 2024[283] - The fair value of plan assets decreased from $638.9 million in 2022 to $504.3 million in 2023, a decline of approximately 21%[287] Stock-Based Compensation - Stock-based compensation increased to $38,781 from $36,738, reflecting a rise in employee compensation costs[189] - The total fair value of restricted stock units vested during fiscal 2023 was $28.6 million, up from $26.6 million in fiscal 2022[301] - The company granted 0.2 million performance share units in fiscal 2023, with stock-based compensation expense of $5.6 million associated with this program[303]

Avnet, Inc. (NASDAQ:AVT) Q4 2023 Earnings Call Transcript August 16, 2023 4:30 PM ET Company Participants Joe Burke - VP, Treasury and IR Phil Gallagher - CEO Ken Jacobson - CFO Conference Call Participants Ruplu Bhattacharya - Bank of America Joe Quatrochi - Wells Fargo Matt Sheerin - Stifel Melissa Fairbanks - Raymond James Operator Welcome to the Avnet Fourth Quarter Fiscal Year 2023 Earnings Conference Call. I would now like to turn the floor over to Joe Burke, Vice President, Treasury and Investor Rela ...

Avnet Fourth Quarter and Fiscal Year 2023 Financial Results Safe Harbor Statement 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 theCompany. You can find many of these statements by looking for words like “believes,” “projected”, “plans,” “expects,” “anticipates,” “should,” “will,” “ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------|-------------------------------------------|--------------------|-- ...

Financial Data and Key Metrics Changes - Sales for the quarter were $6.5 billion, a modest increase year-over-year, exceeding the top end of guidance, with a 3% year-over-year growth in constant currency [18][7] - Adjusted earnings per share were $2, marking the fifth consecutive quarter of adjusted EPS of $2 or greater [7] - Adjusted operating margin improved to 4.8%, up 15 basis points year-over-year and 36 basis points quarter-over-quarter [21] Business Line Data and Key Metrics Changes - Electronic Components business sales grew 4% year-over-year in constant currency, achieving a 5% operating income margin [11] - Farnell's sales increased 9% sequentially and 1% year-over-year in constant currency, with operating margins holding steady at 9% [13][22] - Overall gross margin improved to 12.5%, up 79 basis points quarter-over-quarter [19] Market Data and Key Metrics Changes - Sales growth was led by EMEA with nearly 10% growth and the Americas with 5% growth, while Asia experienced a decline of 10% [18] - Demand signals are realigning globally, with lead times trending down for several component categories, although constraints remain for high-end MCUs, power, and MOSFETs [8][9] Company Strategy and Development Direction - The company is focused on demand creation and customer expansion, with a strategic priority on improving margins through engineering teams and digital design tools [12][13] - The company aims to drive Farnell to over $2 billion in annual sales at double-digit operating margins [15] - The company is managing through an inventory correction phase, expecting it to take a few quarters to normalize [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the pricing environment remained stable, with some suppliers raising prices due to higher input costs [9][33] - The company anticipates a mixed demand environment moving forward, with some verticals showing strength while others remain weak [34][50] - Management expressed confidence in the quality of inventory and plans to improve turnover to align with near-term sales outlook [10][25] Other Important Information - Interest expense increased to $72 million, impacting adjusted diluted earnings per share by $0.37 year-over-year [23] - The company ended the quarter with a gross leverage of 2.3x, improving from the previous quarter [26] - The company paid a quarterly dividend of $0.29 per share, totaling $27 million, with $319 million remaining on the current share repurchase authorization [27] Q&A Session Summary Question: What drove better-than-expected revenue growth in Europe and the Americas? - Management indicated that automotive and industrial markets performed better than anticipated, along with positive contributions from defense and aerospace sectors [32] Question: How is inventory impacting working capital and free cash flow? - Management acknowledged that inventory levels were higher than desired, with a goal to reduce working capital into the low 80s days [35] Question: What is the outlook for core components margins? - Management stated that a mid-$6 billion revenue level is needed to sustain a 5% margin, with favorable mix and demand creation contributing to current performance [38] Question: How is pricing inflation affecting new inventory? - Management noted that pricing is impacting inventory levels but is more muted than in previous quarters, with about 25% of inventory increase attributed to pricing [42] Question: What is the expectation for inventory correction? - Management expects the inventory correction to take 2 to 3 quarters, with mixed signals across different verticals complicating the outlook [50] Question: How are accounts receivable collections performing? - Management reported improved quality of receivables, with no near-term headwinds from customer bankruptcies, and emphasized strategic management of accounts receivable [61]

Avnet Third Quarter 2023 Financial Results May 3, 2023 Safe Harbor Statement 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," ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-------------------------------------------------------------------------------------------|------------------------------------------------|-------------------- ...

Avnet, Inc. (NASDAQ:AVT) Q2 2023 Earnings Conference Call February 1, 2023 4:30 PM ET Company Participants Joe Burke - Vice President, Treasury & Investor Relations Phil Gallagher - Chief Executive Officer Ken Jacobson - Chief Financial Officer Conference Call Participants Melissa Fairbanks - Raymond James Ruplu Bhattacharya - Bank of America Matt Sheerin - Stifel Jim Suva - Citigroup William Stein - Truist Securities Joe Quatrochi - Wells Fargo Operator Welcome to the Avnet Second Quarter Fiscal Year 2023 ...

Avnet Second Quarter 2023 Financial Results February 1, 2023 Safe Harbor Statement 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," ...