Avnet 2007 Annual Report Download - page 17

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Item 6. Selected Financial Data
June 30,
2007
July 1,
2006
July 2,
2005
July 3,
2004
June 27,
2003
Years Ended
(Millions, except for per share and ratio data)
Income:
Sales ............................. $15,681.1 $14,253.6 $11,066.8 $10,244.7 $9,048.4
Gross profit . ....................... 2,048.6 1,839.0(b) 1,459.0 1,364.9 1,215.0
Operating income .................... 678.3(a) 433.1(b) 321.3 202.2(c) 12.7(d)
Income tax provision (benefit) .......... 193.5(a) 111.6(b) 71.5 25.5(c) (33.3)(d)
Earnings (loss) ...................... 393.1(a) 204.5(b) 168.2 72.9(c) (46.1)(d)
Financial Position:
Working capital ..................... 2,711.8 2,029.1 2,065.4 1,839.0 1,820.0
Total assets . ....................... 7,355.1 6,215.7 5,098.2 4,863.7 4,500.0
Long-term debt ..................... 1,156.0 918.8 1,183.2 1,196.2 1,278.4
Shareholders’ equity .................. 3,400.6 2,831.2 2,097.0 1,953.4 1,832.5
Per Share:
Basic earnings (loss) ................. 2.65(a) 1.40(b) 1.39 0.61(c) (0.39)(d)
Diluted earnings (loss) ................ 2.63(a) 1.39(b) 1.39 0.60(c) (0.39)(d)
Book value . ....................... 22.70 19.30 17.36 16.21 15.33
Ratios:
Operating income margin on sales ....... 4.3%(a) 3.0%(b) 2.9% 2.0%(c) 0.1%(d)
Profit (loss) margin on sales ............ 2.5%(a) 1.4%(b) 1.5% 0.7%(c) (0.5)%(d)
Return on equity .................... 12.69%(a) 7.8%(b) 8.1% 3.9%(c) (2.6)%(d)
Return on capital .................... 11.2%(a) 7.6%(b) 7.5% 5.1%(c) 0.2%(d)
Quick ............................ 1.3:1 1.1:1 1.5:1 1.3:1 1.4:1
Working capital ..................... 2.0:1 1.8:1 2.2:1 2.1:1 2.4:1
Total debt to capital .................. 26.2% 30.4% 37.2% 41.0% 44.4%
(a) Includes the impact of restructuring, integration and other items as a result of the integration of Access which
was acquired at the beginning of the third quarter of fiscal 2007 and cost-reduction initiatives implemented
during the second half of fiscal 2007 as part of the Company’s continued focus on operating efficiencies in all
three regions. The restructuring and integration charges amounted to $19.9 million pre-tax, $12.9 million after
tax and $0.08 per share on a diluted basis. In addition, the Company recorded a pre-tax benefit of $12.5 million
in fiscal 2007 resulting from the favorable outcome of a contingent liability acquired in connection with an
acquisition completed in a prior year. The impact of both the prior year acquisition-related benefit and the
restructuring, integration and other items amounted to a charge of $7.4 million pre-tax, $5.3 million after tax
and $0.03 per share on a diluted basis. Also during fiscal 2007, the Company incurred debt extinguishment
costs amounting to $27.4 million pre-tax, $16.5 million after tax and $0.11 per share on a diluted basis related
to the Company’s election to redeem all of its outstanding 93⁄4% Notes due February 15, 2008. The results for
fiscal 2007 also included a gain on sale of business lines of $3.0 million pre-tax, $1.8 million after tax, and
$0.01 per share on a diluted basis as a result of contingent purchase price proceeds received related to the fiscal
2006 sale of Technology Solutions’ single tier businesses in the Americas. The total impact of these items on
the twelve months ended June 30, 2007 amounted to charges of $31.7 million pre-tax, $20.0 million after tax
and $0.13 per share on a diluted basis.
(b) Includes the impact of restructuring, integration and other items recorded during fiscal 2006, including
inventory writedowns for terminated lines (recorded in cost of sales), resulting from the Company’s acquisition
and integration of Memec into Avnet’s existing business and actions taken following the divestitures of two TS
businesses in the Americas, certain cost-cutting initiatives in the TS EMEA region and other actions. These
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