Avnet 2003 Annual Report Download - page 38
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Please find page 38 of the 2003 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.stable but weak electronic components and computer products distribution industry. Cash Öows from working
capital reductions were $824.8 million in 2002. The cash Öow impact of working capital was more signiÑcant
in 2002 as this year represented the Ñrst full Ñscal year of the economic downturn and, thus, a period when
more signiÑcant cost cutting and balance sheet management initiatives were put in place in order to return the
business to proÑtability despite minimal revenue growth. In addition to cash Öow from operating activities in
2003, $5.1 million was needed for other normal business operations including purchases of property, plant and
equipment ($34.2 million), net of cash proceeds from sales of property, plant and equipment ($16.4 million)
and cash generated from other items ($12.7 million). In light of the ongoing economic environment and the
Company's more stringent return on investment criteria, the Company has signiÑcantly curbed its level of
capital expenditures in comparison to prior years. Combined, the Company generated $646.8 million in net
cash and cash equivalents from normal business operations in 2003. Deducting from this amount the
Company's use of $9.2 million for acquisitions of operations and investments during 2003, the combined net
proceeds of $637.6 million along with $465.3 million of cash generated from new long-term debt Ñnancing
were used to reduce drawings under the accounts receivable securitization program by $200.0 million, to repay
other debt balances of $666.7 million and to generate additional cash and cash equivalents of $236.2 million
during 2003.
In 2002, cash Öow from operating activities totaled $976.3 million. During this period, $151.5 million was
generated from continuing operations before depreciation, amortization, deferred taxes and other non-cash
items and $824.8 million was generated by reductions in working capital (excluding cash and cash
equivalents). In addition, the Company used $73.2 million for normal business operations including dividend
payments ($26.5 million), purchases of property plant and equipment ($87.2 million), oÅset in part by cash
proceeds on sale of property plant and equipment ($3.4 million) and net cash generated from other items
($37.1 million). Combined, the Company generated $903.1 million in net cash and cash equivalents from
normal business operations. The Company also used $34.1 million for acquisitions of operations and
investments during 2002 (see Item 1 of this Report). The combined net cash generated, as discussed above, of
$869.0 million along with $394.3 million of cash proceeds from long-term debt Ñnancing were used to reduce
drawings under the accounts receivable securitization program by $150.0 million and to, net, repay debt
balances of $1.051 billion. Finally, cash and cash equivalents increased by $62.0 million for the year.
In 2001, the Company generated $336.3 million from income from continuing operations before
depreciation, amortization, deferred taxes and other non-cash items (including transaction costs associated
with the acquisition of Kent). This was oÅset by $150.1 million of cash used for working capital (excluding
cash and cash equivalents), resulting in $186.2 million of net cash Öows provided from operations. In addition,
the Company used $142.6 million for other normal business operations including purchases of property, plant
and equipment ($147.3 million) and dividends ($27.4 million), oÅset by cash proceeds on sales of property,
plant and equipment ($28.7 million) and cash generated from other items ($3.4 million). This resulted in
$43.6 million being generated from normal business operations. The Company also used $667.3 million for
acquisitions, net of cash received from dispositions and the net cash used for discontinued operations. This
overall use of cash of $623.7 million was Ñnanced by a $119.2 million net increase in debt, $350.0 million of
proceeds from the sale of receivables under the asset securitization program and the utilization of $154.5 mil-
lion of available cash.
Over the past three years, cash generated from continuing operations before depreciation, amortization,
deferred taxes, cash payments for the acquisition of Kent and other non-cash items totaled $657.3 million.
During the same period, $1.16 billion was generated from reductions in working capital (excluding cash and
cash equivalents), reÖective of the typical nature of the Company's industry where cash is generated by
normal working capital reductions during a downturn, as well as through speciÑc working capital management
initiatives put in place by the Company since the downturn began during 2001. This has resulted in
$1.81 billion in net cash Öow from operations. Cash of $220.8 million was needed for other normal business
operations including purchases of property, plant and equipment ($268.6 million) and payment of dividends
($53.9 million), oÅset in part by cash proceeds from sales of property, plant and equipment ($48.5 million)
and net cash generated by other items ($53.2 million). This resulted in a net generation of cash from normal
business operations totaling $1.59 billion during the last three years. During the same three-year period, the
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