Avnet, Inc. · NASDAQ:AVT
Avnet — Q4 2024 Earnings Presentation
13 slides from Avnet's earnings presentation, Aug 8, 2024
Slide 1: Avnet Fourth Quarter and Fiscal Year 2024 Financial Results
Avnet Fourth Quarter and Fiscal Year 2024 Financial Results August 8, 2024
Slide 2: Safe Harbor Statement
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
Slide 3: Q4 FY24 Highlights
Q4 FY24 Highlights Regional demand • Sales decreased across all geographies Y/Y $5.6B Revenue -15% Y/Y End market demand • Aerospace and defense increased globally Y/Y 3.0% 3.5% Operating Adjusted Lead times Margin Operating • Lead times generally stable Margin (1) Book-to-bill • Remained below pari
Slide 4: Revenue
Revenue Y/Y growth $6.55B $6.34B $6.20B Revenue As Constant $5.65B $5.56B ($M) reported currency REGIONS Americas $1,354 (22%) (22%) EMEA $1,920 (22%) (21%) Asia $2,289 (4%) (2%) SEGMENTS Electronic Components $5,188 (15%) (14%) Farnell $375 (16%) (15%) Q4 Q1 Q2 Q3 Q4 AVNET $5,563 (15%) (14%) FY23 F
Slide 5: Q4 Income Statement
Q4 Income Statement SG&A Expenses $5.6B Sales as % of Gross Profit 70.0% 61.9% 11.6% Gross margin down 92 bps Y/Y and down 28 bps Q/Q $450M SG&A expenses – down 11% Y/Y and down 4% Q/Q 70.0% SG&A expenses as a percentage of gross profit Q4 Q4 FY23 FY24 5
Slide 6: Q4 Adjusted Operating Income
(1) Q4 Adjusted Operating Income 4.8% $313M 4.1% 3.9% Adj Op Y/Y Adj Op Y/Y 3.6% 3.5% (1) $262M Income growth Margin growth (1) $242M ($M) $203M $193M SEGMENTS Electronic Components $210 -32% 4.1% -103 bps Farnell $15 -58% 4.0% -406 bps Corporate Expenses ($32) - - - AVNET $193 -38% 3.5% -129 bps Q4
Slide 7: Q4 Non-operating & Adjusted Diluted EPS
(1) Q4 Non-operating & Adjusted Diluted EPS Adjusted Diluted EPS (1) $64M Interest expense down $11M Y/Y and down $9M Q/Q $2.06 $1.22 15.0% Adjusted effective tax rate (1) $1.22 Adjusted diluted EPS (1) – down 41% Y/Y and up 11% Q/Q Q4 Q4 FY23 FY24 7 (1) Non-GAAP measure. See Appendices for Non-GAAP
Slide 8: Q4 Balance Sheet & Liquidity
Q4 Balance Sheet & Liquidity $5.5B Inventory – $283M decrease Q/Q Diluted Shares Outstanding 93M 91M 110 WC days 2.7x Gross debt leverage $759M Available committed lines of credit $79M Share repurchases $0.31 Dividend – returned $28M to shareholders Q4 Q4 FY23 FY24 8
Slide 9: Outlook for Q1 FY25
Outlook for Q1 FY25 (ending September 28, 2024) Metric Guidance Range Midpoint Sales $5.25B – $5.55B $5.40B Adjusted Diluted EPS (1) $0.80 – $0.90 $0.85 Factors impacting our Q1 FY25 outlook • Based on current market conditions • Implies sequential sales decline of flat to approximately 5%, includin
Slide 10: Non-GAAP Definitions
Non-GAAP Definitions In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted oth
Slide 11: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarters Ended Fiscal Year June 29, March 30, December 30, September 30, 2024* 2024* 2024* 2023 2023 ($ in thousands, except per share amounts) GAAP operating income $ 844,367 $ 164,189 $ 190,151 $ 236,257 $ 253,769 Restructuring, integration, an
Slide 12: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarters Ended Fiscal Year July 1, April 1, December 31, October 1, 2023* 2023* 2023 2022 2022 ($ in thousands, except per share amounts) GAAP operating income $ 1,186,800 $ 283,662 $ 313,629 $ 298,973 $ 290,537 Restructuring, integration, and ot
Slide 13: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Low End of High End of Guidance Range Guidance Range Adjusted diluted earnings per share guidance $ 0.80 $ 0.90 Restructuring, integration, and other expenses (net of tax) (0.17) (0.08) GAAP diluted earnings per share guidance $ 0.63 $ 0.82 13