Avnet(US:AVT)2024-10-31 21:48Financial Performance - Sales for the first quarter of fiscal 2025 were $5.60 billion, a decrease of $731.5 million, or 11.6%, compared to $6.34 billion in the same quarter last year[70]. - Adjusted operating income for the first quarter of fiscal 2025 was $168.9 million, a decrease of $92.8 million, or 35.4% year over year[81]. - Gross profit for the first quarter of fiscal 2025 was $140.7 million, down 18.8% from the first quarter of fiscal 2024[73]. - Operating income for the first quarter of fiscal 2025 was $142.2 million, a decrease of $111.5 million, or 44.0%, year over year[81]. - The gross profit margin decreased by 97 basis points to 10.8% for the first quarter of fiscal 2025[74]. - The company's net income for Q1 fiscal 2025 was $59.0 million, or $0.66 per share, down from $209.3 million, or $2.25 per share in Q1 fiscal 2024[87]. Expenses and Costs - SG&A expenses decreased by $48.5 million, or 10.0%, from the first quarter of fiscal 2024[76]. - Restructuring, integration, and other expenses totaled $26.4 million in the first quarter of fiscal 2025, compared to $7.1 million in the same period last year[79]. Tax and Income - The effective tax rate for the first quarter of fiscal 2025 was 21.1%, compared to 24.0% in the first quarter of fiscal 2024[68]. - The effective tax rate decreased to 21.1% in Q1 fiscal 2025 from 24.0% in Q1 fiscal 2024, with income tax expenses of $15.8 million compared to $66.2 million[86]. Cash Flow and Borrowings - Net cash provided by operating activities increased by $147.6 million year-over-year to $106.3 million in Q1 fiscal 2025, compared to a cash outflow of $41.3 million in Q1 fiscal 2024[88]. - The company reported net borrowings of $15.7 million in Q1 fiscal 2025, a significant decrease from $151.4 million in the same period of the prior year[89]. - Cash and cash equivalents stood at $267.5 million as of September 28, 2024, down from $310.9 million as of June 29, 2024[95]. - The company generated $837.6 million in cash flows from operating activities over the trailing four fiscal quarters ended September 28, 2024[96]. - The company had a total borrowing capacity of $2.20 billion under its Credit Facility and Securitization Program, with $768.6 million of borrowings outstanding as of September 28, 2024[98]. - Approximately 56% of the company's debt bears interest at a fixed rate, while 44% bears interest at variable rates[106]. Shareholder Returns - The company repurchased $100.0 million of common stock in Q1 fiscal 2025, compared to $24.3 million in the same period of the prior year[89]. - The company paid cash dividends of $0.33 per share, totaling $28.9 million in Q1 fiscal 2025, compared to $0.31 per share, or $28.3 million in Q1 fiscal 2024[101]. Sales Outlook - The company expects sales in the second quarter of fiscal 2025 to be down 4% to up 2% compared to the first quarter of fiscal 2025[65]. - Sales in the Asia region increased by 6.2% year over year, contrasting with declines in the Americas and EMEA regions[70].