Arrow Electronics Reports Second-Quarter 2023 Results

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In this article:

-- Second-Quarter Earnings Per Share of $4.12; Non-GAAP Earnings Per Share of $4.37 --
-- Revenue in line with guidance; Non-GAAP EPS above midpoint of guidance --

CENTENNIAL, Colo., August 03, 2023--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW) today reported second-quarter 2023 sales of $8.51 billion, a decrease of 10 percent year over year. Second-quarter net income was $237 million, or $4.12 per share on a diluted basis, compared with net income of $370 million, or $5.54 per share on a diluted basis, in the second quarter of 2022. Non-GAAP net income1 was $251 million, or $4.37 per share on a diluted basis, in the second quarter of 2023, compared with non-GAAP net income of $386 million, or $5.78 per share on a diluted basis, in the second quarter of 2022.

"The company posted solid second-quarter results in a softer semiconductor market and a mixed information technology spending environment, delivering revenue and earnings per share within our guidance range," said Sean Kerins, Arrow’s president, and chief executive officer.

Global components second-quarter sales of $6.68 billion reflected a decrease of 10 percent year over year. Europe components second-quarter sales increased 19 percent year over year. Asia-Pacific components second-quarter sales decreased 22 percent year over year. Americas components second-quarter sales decreased 17 percent year over year. Global components second-quarter operating income was $381 million, and second-quarter non-GAAP operating income was $388 million.

"While demand in the west broadly remained resilient, customer inventory levels were elevated in the quarter. Americas components results were impacted by further declines in the shortage market, which we now believe to be largely normalized. In Asia, we experienced continued demand softness in China," said Mr. Kerins. "We were encouraged by our sequential inventory reduction, pricing stability and growth in design-related activity."

Global enterprise computing solutions (ECS) second-quarter sales of $1.83 billion reflected a decrease of 8 percent year over year. Europe enterprise computing solutions second-quarter sales decreased 1 percent year over year. Americas enterprise computing solutions second-quarter sales decreased 14 percent year over year. Global enterprise computing solutions second-quarter operating income was $86 million, and second-quarter non-GAAP operating income was $87 million.

"We continue to see customers migrate to solutions delivered on an as-a-service basis. Our ECS results reflect this trend as we saw relative strength in cloud, software and services, and improved operating margin year over year," said Mr. Kerins.

"Reflecting our confidence in our ability to generate cash and consistent with our desire to drive shareholder returns, we repurchased approximately $200 million of shares during the second quarter," said Raj Agrawal, senior vice president and chief financial officer. "As of the end of the second quarter, our remaining repurchase authorization stands at approximately $824 million."

1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

THIRD-QUARTER 2023 OUTLOOK

  • Consolidated sales of $7.78 billion to $8.38 billion, with global components sales of $6.00 billion to $6.40 billion, and global enterprise computing solutions sales of $1.78 billion to $1.98 billion

  • Net income per share on a diluted basis of $3.25 to $3.45, and non-GAAP net income per share on a diluted basis of $3.40 to $3.60

  • Average tax rate in the range of 23 to 25 percent

  • Average diluted shares outstanding of ~56 million

  • Interest expense in the range of $85 million to $90 million

  • Changes in foreign currencies expected to increase year-over-year growth in sales by $212 million, and earnings per share on a diluted basis by $0.11 compared to the third quarter of 2022

  • Changes in foreign currencies expected to increase quarter-over-quarter growth in sales by $42 million and earnings per share on a diluted basis by $0.04 compared to the second quarter of 2023

  • On a constant currency basis, our third-quarter sales guidance implies a sequential growth rate range of down 11 percent to down 5 percent for global components and down 4 percent to up 7 percent for global enterprise computing solutions, when compared to the second quarter of 2023

Third-Quarter 2023 GAAP to non-GAAP Outlook Reconciliation

NON-GAAP SALES RECONCILIATION

Quarter Ended

Quarter Ended

(in billions)

September
30, 2023

October 1,
2022

% Change

September
30, 2023

July 1, 2023

% Change

Global components sales, GAAP

$6.00-6.40

$7.30

(18%) - (12%)

$6.00-6.40

$6.68

(10%) - (4%)

Impact of changes in foreign currencies

—

0.14

—

0.03

Global components sales, constant currency

$6.00-6.40

$7.44

(19%) - (14%)

$6.00-6.40

$6.71

(11%) - (5%)

Global ECS sales, GAAP

$1.78-1.98

$1.97

(10%) - 1%

$1.78-1.98

$1.83

(3%) - 8%

Impact of changes in foreign currencies

—

0.07

—

0.02

Global ECS sales, constant currency

$1.78-1.98

$2.04

(13%) - (3%)

$1.78-1.98

$1.85

(4%) - 7%

NON-GAAP EARNINGS RECONCILIATION

Reported GAAP measure

Intangible amortization
expense

Restructuring &
integration charges

Non-GAAP measure

Net income per diluted share

$3.25 to $3.45

$0.10

$0.05

$3.40 to $3.60

CFO Commentary and Earnings Presentation

Please refer to the CFO commentary and the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company uses its website as a tool to disclose important information about the company and to comply with its disclosure obligations under Regulation Fair Disclosure.

Conference Call and Webcast Information

Arrow Electronics will host a conference call to discuss second-quarter 2023 financial results on Aug. 3, 2023, at 1:00 PM ET. Register online at https://conferencingportals.com/event/fEoxDDHd to obtain dial-in information to access the live conference call. The conference call will also be available via live webcast at investor.arrow.com. Shortly after the conclusion of the conference call, a webcast replay will be available at investor.arrow.com.

About Arrow Electronics

Arrow Electronics guides innovation forward for over 210,000 leading technology manufacturers and service providers. With 2022 sales of $37 billion, Arrow develops technology solutions that help improve business and daily life. Learn more at fiveyearsout.com.

Information Relating to Forward-Looking Statements

This press release includes "forward-looking" statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow’s future financial performance, including its outlook on financial results for the third quarter of fiscal 2023 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, and expectations regarding market demand and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global ECS markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; outbreaks, epidemics, pandemics, or public health crises; and the company's ability to generate cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the company also provides certain non-GAAP financial information. The company provides non-GAAP sales, operating income, income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis, which are non-GAAP measures adjusted for the impact of changes in foreign currencies (referred to as "changes in foreign currencies" or "on a constant currency basis") by re-translating prior-period results at current period foreign exchange rates, identifiable intangible asset amortization, restructuring, integration, and other charges, net gains and losses on investments, and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP.

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)

Quarter Ended

Six Months Ended

July 1, 2023

July 2, 2022

July 1, 2023

July 2, 2022

Sales

$

8,514,516

$

9,460,842

$

17,250,944

$

18,534,967

Cost of sales

7,448,467

8,224,628

15,071,073

16,091,249

Gross profit

1,066,049

1,236,214

2,179,871

2,443,718

Operating expenses:

Selling, general, and administrative expenses

617,202

653,640

1,259,633

1,297,565

Depreciation and amortization

46,264

47,252

92,943

95,557

Restructuring, integration, and other charges

10,333

2,494

12,893

7,392

673,799

703,386

1,365,469

1,400,514

Operating income

392,250

532,828

814,402

1,043,204

Equity in earnings of affiliated companies

3,061

2,165

2,981

3,008

Gain (loss) on investments, net

497

(9,744

)

10,808

(7,733

)

Employee benefit plan expense, net

(803

)

(835

)

(1,656

)

(1,724

)

Interest and other financing expense, net

(84,834

)

(38,506

)

(164,492

)

(72,491

)

Income before income taxes

310,171

485,908

662,043

964,264

Provision for income taxes

72,380

114,413

148,927

226,773

Consolidated net income

237,791

371,495

513,116

737,491

Noncontrolling interests

1,232

1,161

2,807

2,408

Net income attributable to shareholders

$

236,559

$

370,334

$

510,309

$

735,083

Net income per share:

Basic

$

4.17

$

5.60

$

8.84

$

10.98

Diluted

$

4.12

$

5.54

$

8.74

$

10.84

Weighted-average shares outstanding:

Basic

56,720

66,078

57,726

66,964

Diluted

57,355

66,851

58,409

67,797

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)

July 1, 2023

December 31, 2022

ASSETS

Current assets:

Cash and cash equivalents

$

240,382

$

176,915

Accounts receivable, net

11,035,898

12,322,717

Inventories

5,452,198

5,319,369

Other current assets

402,729

521,339

Total current assets

17,131,207

18,340,340

Property, plant, and equipment, at cost:

Land

5,691

5,691

Buildings and improvements

186,648

184,211

Machinery and equipment

1,612,005

1,583,661

1,804,344

1,773,563

Less: Accumulated depreciation and amortization

(1,246,125

)

(1,177,107

)

Property, plant, and equipment, net

558,219

596,456

Investments in affiliated companies

62,138

65,112

Intangible assets, net

142,917

159,137

Goodwill

2,044,214

2,027,626

Other assets

597,204

574,511

Total assets

$

20,535,899

$

21,763,182

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

8,981,212

$

10,460,419

Accrued expenses

1,199,924

1,339,302

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

488,168

589,883

Total current liabilities

10,669,304

12,389,604

Long-term debt

3,672,828

3,182,964

Other liabilities

539,293

579,261

Equity:

Shareholders’ equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2023 and 2022

Issued - 125,424 shares in both 2023 and 2022

125,424

125,424

Capital in excess of par value

1,203,064

1,208,708

Treasury stock (69,762 and 66,175 shares in 2023 and 2022, respectively), at cost

(5,108,188

)

(4,637,345

)

Retained earnings

9,725,141

9,214,832

Accumulated other comprehensive loss

(359,096

)

(365,262

)

Total shareholders’ equity

5,586,345

5,546,357

Noncontrolling interests

68,129

64,996

Total equity

5,654,474

5,611,353

Total liabilities and equity

$

20,535,899

$

21,763,182

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Quarter Ended

July 1, 2023

July 2, 2022

Cash flows from operating activities:

Consolidated net income

$

237,791

$

371,495

Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:

Depreciation and amortization

46,264

47,252

Amortization of stock-based compensation

8,852

13,885

Equity in earnings of affiliated companies

(3,061

)

(2,165

)

Deferred income taxes

(25,869

)

(8,036

)

(Gain) loss on investments, net

(497

)

9,744

Other

1,665

1,680

Change in assets and liabilities:

Accounts receivable, net

(377,117

)

(464,917

)

Inventories

58,148

(294,990

)

Accounts payable

(8,558

)

162,366

Accrued expenses

(83,267

)

103,764

Other assets and liabilities

18,845

(22,660

)

Net cash used for operating activities

(126,804

)

(82,582

)

Cash flows from investing activities:

Acquisition of property, plant, and equipment

(16,991

)

(16,974

)

Proceeds from collections of notes receivable

95

373

Net cash used for investing activities

(16,896

)

(16,601

)

Cash flows from financing activities:

Change in short-term and other borrowings

344,389

310,315

(Repayments of) proceeds from long-term bank borrowings, net

(43,786

)

65,000

Proceeds from exercise of stock options

10,447

4,370

Repurchases of common stock

(212,416

)

(219,532

)

Settlement of forward-starting interest rate swap

56,711

—

Other

(2,474

)

(137

)

Net cash provided by financing activities

152,871

160,016

Effect of exchange rate changes on cash

25,657

(78,028

)

Net increase (decrease) in cash and cash equivalents

34,828

(17,195

)

Cash and cash equivalents at beginning of period

205,554

242,791

Cash and cash equivalents at end of period

$

240,382

$

225,596

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Six Months Ended

July 1, 2023

July 2, 2022

Cash flows from operating activities:

Consolidated net income

$

513,116

$

737,491

Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:

Depreciation and amortization

92,943

95,557

Amortization of stock-based compensation

28,349

31,236

Equity in earnings of affiliated companies

(2,981

)

(3,008

)

Deferred income taxes

(33,399

)

(6,684

)

(Gain) loss on investments, net

(10,808

)

7,733

Other

2,986

2,366

Change in assets and liabilities:

Accounts receivable, net

1,324,772

(34,207

)

Inventories

(141,373

)

(755,892

)

Accounts payable

(1,513,259

)

(315,459

)

Accrued expenses

(215,583

)

60,123

Other assets and liabilities

52,237

(102,086

)

Net cash provided by (used for) operating activities

97,000

(282,830

)

Cash flows from investing activities:

Acquisition of property, plant, and equipment

(37,105

)

(36,244

)

Proceeds from collections of notes receivable

237

20,542

Proceeds from settlement of net investment hedge

10,725

—

Net cash used for investing activities

(26,143

)

(15,702

)

Cash flows from financing activities:

Change in short-term and other borrowings

198,339

296,022

(Repayments of) proceeds from long-term bank borrowings, net

(9,426

)

910,000

Net proceeds from note offering

496,268

—

Redemption of notes

(300,000

)

(350,000

)

Proceeds from exercise of stock options

16,381

15,672

Repurchases of common stock

(516,217

)

(483,963

)

Settlement of forward-starting interest rate swap

56,711

—

Other

(142

)

(137

)

Net cash (used for) provided by financing activities

(58,086

)

387,594

Effect of exchange rate changes on cash

50,696

(85,660

)

Net increase in cash and cash equivalents

63,467

3,402

Cash and cash equivalents at beginning of period

176,915

222,194

Cash and cash equivalents at end of period

$

240,382

$

225,596

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

July 1, 2023

July 2, 2022

% Change

Consolidated sales, as reported

$

8,514,516

$

9,460,842

(10.0

)%

Impact of changes in foreign currencies

—

(17,566

)

Consolidated sales, constant currency

$

8,514,516

$

9,443,276

(9.8

)%

Global components sales, as reported

$

6,682,882

$

7,461,552

(10.4

)%

Impact of changes in foreign currencies

—

(18,723

)

Global components sales, constant currency

$

6,682,882

$

7,442,829

(10.2

)%

Americas components sales, as reported

$

2,066,562

$

2,479,362

(16.6

)%

Impact of changes in foreign currencies

—

(603

)

Americas components sales, constant currency

$

2,066,562

$

2,478,759

(16.6

)%

Asia components sales, as reported

$

2,462,841

$

3,173,786

(22.4

)%

Impact of changes in foreign currencies

—

(41,205

)

Asia components sales, constant currency

$

2,462,841

$

3,132,581

(21.4

)%

Europe components sales, as reported

$

2,153,479

$

1,808,404

19.1

%

Impact of changes in foreign currencies

—

23,085

Europe components sales, constant currency

$

2,153,479

$

1,831,489

17.6

%

Global ECS sales, as reported

$

1,831,634

$

1,999,290

(8.4

)%

Impact of changes in foreign currencies

—

1,157

Global ECS sales, constant currency

$

1,831,634

$

2,000,447

(8.4

)%

Americas ECS sales, as reported

$

1,000,506

$

1,160,796

(13.8

)%

Impact of changes in foreign currencies

—

(7,376

)

Americas ECS sales, constant currency

$

1,000,506

$

1,153,420

(13.3

)%

Europe ECS sales, as reported

$

831,128

$

838,494

(0.9

)%

Impact of changes in foreign currencies

—

8,533

Europe ECS sales, constant currency

$

831,128

$

847,027

(1.9

)%

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Six Months Ended

July 1, 2023

July 2, 2022

% Change

Consolidated sales, as reported

$

17,250,944

$

18,534,967

(6.9

)%

Impact of changes in foreign currencies

—

(220,344

)

Consolidated sales, constant currency

$

17,250,944

$

18,314,623

(5.8

)%

Global components sales, as reported

$

13,538,675

$

14,660,627

(7.7

)%

Impact of changes in foreign currencies

—

(164,716

)

Global components sales, constant currency

$

13,538,675

$

14,495,911

(6.6

)%

Americas components sales, as reported

$

4,300,015

$

4,819,905

(10.8

)%

Impact of changes in foreign currencies

—

(2,297

)

Americas components sales, constant currency

$

4,300,015

$

4,817,608

(10.7

)%

Asia components sales, as reported

$

4,839,036

$

6,105,315

(20.7

)%

Impact of changes in foreign currencies

—

(87,707

)

Asia components sales, constant currency

$

4,839,036

$

6,017,608

(19.6

)%

Europe components sales, as reported

$

4,399,624

$

3,735,407

17.8

%

Impact of changes in foreign currencies

—

(74,712

)

Europe components sales, constant currency

$

4,399,624

$

3,660,695

20.2

%

Global ECS sales, as reported

$

3,712,269

$

3,874,340

(4.2

)%

Impact of changes in foreign currencies

—

(55,628

)

Global ECS sales, constant currency

$

3,712,269

$

3,818,712

(2.8

)%

Americas ECS sales, as reported

$

1,998,620

$

2,208,645

(9.5

)%

Impact of changes in foreign currencies

—

(15,946

)

Americas ECS sales, constant currency

$

1,998,620

$

2,192,699

(8.9

)%

Europe ECS sales, as reported

$

1,713,649

$

1,665,695

2.9

%

Impact of changes in foreign currencies

—

(39,682

)

Europe ECS sales, constant currency

$

1,713,649

$

1,626,013

5.4

%

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Three months ended July 1, 2023

Reported
GAAP
measure

Intangible
amortization
expense

Restructuring
& Integration
charges

Non-recurring
tax items

Other(1)

Non-GAAP
measure

Operating income

$

392,250

$

7,908

$

10,333

$

—

$

—

$

410,491

Income before income taxes

310,171

7,908

10,333

—

(497

)

327,915

Provision for income taxes

72,380

1,992

2,597

(942

)

(119

)

75,908

Consolidated net income

237,791

5,916

7,736

942

(378

)

252,007

Noncontrolling interests

1,232

136

—

—

—

1,368

Net income attributable to shareholders

$

236,559

$

5,780

$

7,736

$

942

$

(378

)

$

250,639

Net income per diluted share (2)

$

4.12

$

0.10

$

0.13

$

0.02

$

(0.01

)

$

4.37

Effective tax rate (3)

23.3

%

23.1

%

Three months ended July 2, 2022

Reported
GAAP
measure

Intangible
amortization
expense

Restructuring
& Integration
charges

Non-recurring
tax items

Other(1)

Non-GAAP
measure

Operating income

$

532,828

$

8,830

$

2,494

$

—

$

—

$

544,152

Income before income taxes

485,908

8,830

2,494

—

9,744

506,976

Provision for income taxes

114,413

2,263

362

—

2,356

119,394

Consolidated net income

371,495

6,567

2,132

—

7,388

387,582

Noncontrolling interests

1,161

133

—

—

—

1,294

Net income attributable to shareholders

$

370,334

$

6,434

$

2,132

$

—

$

7,388

$

386,288

Net income per diluted share (2)

$

5.54

$

0.10

$

0.03

$

—

$

0.11

$

5.78

Effective tax rate (3)

23.5

%

23.6

%

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Six months ended July 1, 2023

Reported
GAAP
measure

Intangible
amortization
expense

Restructuring
& Integration
charges

Non-recurring
tax items

Other(1)

Non-GAAP
measure

Operating income

$

814,402

$

15,888

$

12,893

$

—

$

—

$

843,183

Income before income taxes

662,043

15,888

12,893

—

(10,808

)

680,016

Provision for income taxes

148,927

4,002

3,317

(942

)

(2,590

)

152,714

Consolidated net income

513,116

11,886

9,576

942

(8,218

)

527,302

Noncontrolling interests

2,807

270

—

—

—

3,077

Net income attributable to shareholders

$

510,309

$

11,616

$

9,576

$

942

$

(8,218

)

$

524,225

Net income per diluted share (2)

$

8.74

$

0.20

$

0.16

$

0.02

$

(0.14

)

$

8.98

Effective tax rate (3)

22.5

%

22.5

%

Six months ended July 2, 2022

Reported
GAAP
measure

Intangible
amortization
expense

Restructuring
& Integration
charges

Non-recurring
tax items

Other(1)

Non-GAAP
measure

Operating income

$

1,043,204

$

17,848

$

7,392

$

—

$

—

$

1,068,444

Income before income taxes

964,264

17,848

7,392

—

7,733

997,237

Provision for income taxes

226,773

4,573

1,567

—

1,870

234,783

Consolidated net income

737,491

13,275

5,825

—

5,863

762,454

Noncontrolling interests

2,408

273

—

—

—

2,681

Net income attributable to shareholders

$

735,083

$

13,002

$

5,825

$

—

$

5,863

$

759,773

Net income per diluted share (2)

$

10.84

$

0.19

$

0.09

$

—

$

0.09

$

11.21

Effective tax rate (3)

23.5

%

23.5

%

(1)

Other includes (gain) loss on investments, net.

(2)

The sum of the components for diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.

(3)

The items as shown in this table, represent the reconciling items for the tax rate as reported by GAAP measure and as a non-GAAP measure.

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

Quarter Ended

Six Months Ended

July 1, 2023

July 2, 2022

July 1, 2023

July 2, 2022

Sales:

Global components

$

6,682,882

$

7,461,552

$

13,538,675

$

14,660,627

Global ECS

1,831,634

1,999,290

3,712,269

3,874,340

Consolidated

$

8,514,516

$

9,460,842

$

17,250,944

$

18,534,967

Operating income (loss):

Global components

$

381,314

$

524,494

$

798,853

$

1,023,836

Global ECS

86,228

83,970

167,327

169,768

Corporate (a)

(75,292

)

(75,636

)

(151,778

)

(150,400

)

Consolidated

$

392,250

$

532,828

$

814,402

$

1,043,204

(a)

Corporate operating loss includes restructuring, integration, and other charges of $10.3 million and $12.9 million for the second quarter and first six months of 2023, respectively, and $2.5 million and $7.4 million for the second quarter and first six months of 2022, respectively.

NON-GAAP SEGMENT RECONCILIATION

Quarter Ended

Six Months Ended

July 1, 2023

July 2, 2022

July 1, 2023

July 2, 2022

Global components operating income, as reported

$

381,314

$

524,494

$

798,853

$

1,023,836

Intangible assets amortization expense

6,679

6,739

13,424

13,612

Global components non-GAAP operating income

$

387,993

$

531,233

$

812,277

$

1,037,448

Global ECS operating income, as reported

$

86,228

$

83,970

$

167,327

$

169,768

Intangible assets amortization expense

1,229

2,091

2,464

4,236

Global ECS non-GAAP operating income

$

87,457

$

86,061

$

169,791

$

174,004

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803083703/en/

Contacts

Investors:
Anthony Bencivenga,
Vice President, Investor Relations
303-566-7456

Media:
John Hourigan,
Vice President, Public Affairs and Corporate Marketing
303-824-4586

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