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Arrow Electronics Reports Fourth-Quarter Non-GAAP Earnings Per Share Of $1.22

For a further discussion of factors to consider in connection with these forward-looking statements, investors should refer to Item 1A Risk Factors of the company’s Annual Report on Form 10-K for the year ended December 31, 2012.

 

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

   
Quarter Ended Year Ended
December 31, December 31,
2012   2011 2012   2011
(unaudited)  
 
Sales $ 5,402,705 $ 5,440,473 $ 20,405,128 $ 21,390,264
Costs and expenses:
Cost of sales 4,695,861 4,695,664 17,667,842 18,441,661
Selling, general, and administrative expenses 480,103 469,757 1,849,534 1,892,592
Depreciation and amortization 30,446 28,734 115,350 103,482
Restructuring, integration, and other charges 11,285 14,135 47,437 37,811
Settlement of legal matters   (79,158 )   -   (79,158 )   5,875
  5,138,537   5,208,290   19,601,005   20,481,421
Operating income 264,168 232,183 804,123 908,843
Equity in earnings of affiliated companies 2,346 1,936 8,112 6,736
Interest and other financing expense, net 22,233 28,443 101,876 105,971
Other   -   1,562   -   (193 )
Income before income taxes 244,281 204,114 710,359 809,801
Provision for income taxes   69,460   29,984   203,642   210,485
Consolidated net income 174,821 174,130 506,717 599,316
Noncontrolling interests   117   42   385   506
Net income attributable to shareholders $ 174,704 $ 174,088 $ 506,332 $ 598,810
Net income per share:
Basic $ 1.64 $ 1.55 $ 4.64 $ 5.25
Diluted $ 1.62 $ 1.53 $ 4.56 $ 5.17
Average number of shares outstanding:
Basic 106,223 112,024 109,240 114,025
Diluted 108,105 113,878 111,077 115,932
 
 

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

 
December 31,
2012   2011
ASSETS
Current assets:
Cash and cash equivalents $ 409,684 $ 396,887

Accounts receivable, net

4,923,898

4,482,117

Inventories 2,052,720 1,963,910
Other current assets   328,999   181,677
 
Total current assets   7,715,301   7,024,591
 
Property, plant and equipment, at cost:
Land 23,944 23,790
Buildings and improvements 152,008 147,215
Machinery and equipment   1,030,983   934,558
1,206,935 1,105,563
Less: Accumulated depreciation and amortization   (607,294 )   (549,334 )
Property, plant and equipment, net   599,641   556,229
 
Investments in affiliated companies 65,603 60,579
Intangible assets, net 414,033 392,763
Cost in excess of net assets of companies acquired 1,711,703 1,473,333
Other assets   279,406   321,584
 
Total assets $ 10,785,687 $ 9,829,079
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 3,769,268 $ 3,264,088
Accrued expenses 776,586 660,996

Short-term borrowings, including current portion of long-term debt

  364,357   33,843
 
Total current liabilities   4,910,211   3,958,927
 
Long-term debt 1,587,478 1,927,823
Other liabilities 300,636 267,069
 
Equity:
Shareholders' equity:
Common stock, par value $1:
Authorized – 160,000 shares in 2012 and 2011

Issued – 125,424 and 125,382 shares in 2012 and 2011, respectively

125,424 125,382

Capital in excess of par value

1,086,239 1,076,275

Treasury stock (19,423 and 13,568 shares in 2012 and 2011, respectively), at cost

(652,867 ) (434,959 )
Retained earnings 3,279,289 2,772,957
Foreign currency translation adjustment 182,632 158,550
Other   (37,495 )   (29,393 )
 
Total shareholders' equity 3,983,222 3,668,812
 
Noncontrolling interests   4,140   6,448
 
Total equity   3,987,362   3,675,260
 
Total liabilities and equity $ 10,785,687 $ 9,829,079
 
 

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

 
 

Quarter EndedDecember 31,

2012   2011
Cash flows from operating activities:
Consolidated net income $ 174,821 $ 174,130
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization 30,446 28,734
Amortization of stock-based compensation 9,685 8,945
Equity in earnings of affiliated companies (2,346 ) (1,936 )
Deferred income taxes (23,380 ) (10,899 )
Restructuring, integration, and other charges 6,320 11,223
Excess tax benefits from stock-based compensation arrangements 54 (435 )
Other (1,446 ) (554 )
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable (554,201 ) (329,943 )
Inventories 37,140 214,783
Accounts payable 374,959 42,788
Accrued expenses 146,052 (10,755 )
Other assets and liabilities   (10,354 )   20,423
Net cash provided by operating activities   187,750   146,504
 
Cash flows from investing activities:
Cash consideration paid for acquired businesses (90,668 ) (9,238 )
Acquisition of property, plant and equipment   (36,650 )   (25,674 )
Net cash used for investing activities   (127,318 )   (34,912 )
 
Cash flows from financing activities:
Change in short-term and other borrowings (17,607 ) 1,984
Proceeds from (repayment of) long-term bank borrowings, net 19,600 (243,000 )
Repurchase of senior notes - (19,324 )
Proceeds from exercise of stock options 1,891 47
Excess tax benefits from stock-based compensation arrangements (54 ) 435
Repurchases of common stock   (38,075 )   (242 )
Net cash used for financing activities   (34,245 )   (260,100 )
 
Effect of exchange rate changes on cash   24,947   829
Net increase (decrease) in cash and cash equivalents 51,134 (147,679 )
Cash and cash equivalents at beginning of period   358,550   544,566
Cash and cash equivalents at end of period $ 409,684 $ 396,887
 
 

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

Year EndedDecember 31,

2012   2011
Cash flows from operating activities:
Consolidated net income $ 506,717 $ 599,316
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization 115,350 103,482
Amortization of stock-based compensation 34,546 39,225
Equity in earnings of affiliated companies (8,112 ) (6,736 )
Deferred income taxes (5,414 ) (11,377 )
Restructuring, integration, and other charges 30,739 28,054
Excess tax benefits from stock-based compensation arrangements (5,029 ) (7,956 )
Other (5,786 ) 4,309
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable (318,689 ) (193,492 )
Inventories (62,383 ) 105,150
Accounts payable 406,874 (465,603 )
Accrued expenses 38,858 (74,236 )
Other assets and liabilities   (52,638 )   747
Net cash provided by operating activities   675,033   120,883
 
Cash flows from investing activities:
Cash consideration paid for acquired businesses (281,918 ) (532,568 )
Acquisition of property, plant and equipment (112,224 ) (113,941 )
Purchase of cost method investment   (15,000 )   -
Net cash used for investing activities   (409,142 )   (646,509 )
 
Cash flows from financing activities:
Change in short-term and other borrowings (9,812 ) (6,172 )
Proceeds from (repayment of) long-term bank borrowings, net (5,400 ) 354,000
Repayment of bank term loan - (200,000 )
Repurchase of senior notes - (19,324 )
Proceeds from exercise of stock options 13,372 46,665
Excess tax benefits from stock-based compensation arrangements 5,029 7,956
Repurchases of common stock   (260,870 )   (197,044 )
Net cash used for financing activities   (257,681 )   (13,919 )
 
Effect of exchange rate changes on cash   4,587   10,111
Net increase (decrease) in cash and cash equivalents 12,797 (529,434 )
Cash and cash equivalents at beginning of year   396,887   926,321
Cash and cash equivalents at end of year $ 409,684 $ 396,887
 
 

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

 

 

 

Quarter EndedDecember 31,

 

Year EndedDecember 31,

2012     2011 2012   2011
(unaudited)
Sales:
Global components $ 3,185,764 $ 3,443,034 $ 13,361,122 $ 14,853,823
Global ECS   2,216,941   1,997,439   7,044,006   6,536,441
Consolidated $ 5,402,705 $ 5,440,473 $ 20,405,128 $ 21,390,264
 
Operating income (loss):
Global components $ 122,989 $ 176,680 $ 619,282 $ 823,774
Global ECS 114,249 106,413 290,970 262,893
Corporate (a)   26,930   (50,910 )   (106,129 )   (177,824 )
Consolidated $ 264,168 $ 232,183 $ 804,123 $ 908,843
(a)  

Includes restructuring, integration, and other charges of $11.3 million and $47.4 million for the quarter and year ended December 31, 2012 and $14.1 million and $37.8 million for the quarter and year ended December 31, 2011, respectively. Also includes a gain of $79.2 million for the quarter and year ended December 31, 2012 and a charge of $5.9 million for the year ended December 31, 2011, both of which are related to the settlement of legal matters.





Stock quotes in this article: ARW 

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