-- Fourth-Quarter Sales Above High End of
Guidance --
-- Fourth-Quarter Earnings Per Share of
$1.86 and Non-GAAP Earnings Per Share of $2.97, Both Above High End
of Guidance --
Arrow Electronics, Inc. (NYSE:ARW) today announced financial
results for its fourth quarter and fiscal year ended Dec. 31,
2024.
“In the fourth quarter, the company executed well relative to
our original expectations, generating total sales and earnings per
share that were beyond the high end of our guidance ranges,” said
Sean Kerins, Arrow’s president and chief executive officer.
“Reflecting on the past year, I believe that we were successful
in taking several steps to strengthen our position in both
segments,” said Mr. Kerins. “In global components, we expanded our
linecard and customer base, realigned the business for global
consistency, and remained committed to our value-added service
offerings that differentiate us. And in enterprise computing
solutions, we’ve unified our go-to-market strategy in both regions,
and we’re poised to benefit from the growing demand trends in
hybrid cloud and AI-related solutions.”
Arrow Consolidated
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
(in millions except per share
data)
2024
2023
2024
2023
Consolidated sales
$
7,283
$
7,849
$
27,923
$
33,107
Net income attributable to
shareholders
99
195
392
904
Net income per diluted share
1.86
3.54
7.29
15.84
Non-GAAP net income attributable to
shareholders (1)
158
219
568
977
Non-GAAP net income per diluted share
2.97
3.98
10.56
17.12
In the fourth quarter of 2024, sales decreased 7 percent year
over year. Changes in foreign currencies had negative impacts on
growth of approximately $27 million on sales and $0.11 on earnings
per share on a diluted basis compared to the fourth quarter of
2023.
Full-year 2024 sales decreased 16 percent year over year.
Changes in foreign currencies had negative impacts on growth of
approximately $33 million on sales and $0.13 on earnings per share
on a diluted basis compared to 2023.
Global Components
“In our global components business, we continue to see
incremental improvement in key leading indicators and, despite
softer trends in the industrial and transportation markets, all
three regions finished the quarter in line with or better than
typical seasonal patterns,” said Mr. Kerins.
Global Components
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
(in millions)
2024
2023
2024
2023
Global components sales
$
4,814
$
5,636
$
19,983
$
25,420
Global components operating income, as
reported
117
281
741
1,459
Global components non-GAAP operating
income
173
288
827
1,486
In the fourth quarter of 2024, global component sales decreased
15 percent year over year and decreased 14 percent year over year
on a constant currency basis. Americas components fourth-quarter
sales decreased 10 percent year over year. EMEA2 components
fourth-quarter sales decreased 25 percent year over year.
Asia-Pacific components fourth-quarter sales decreased 10 percent
year over year.
Global Enterprise Computing
Solutions
“In enterprise computing solutions, we delivered year-over-year
billings, gross profit, and operating income growth,” said Mr.
Kerins. “This strong performance reflects our alignment to the
higher growth demand trends across enterprise IT along with our
improving execution in North America.”
Global Enterprise Computing
Solutions
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
(in millions)
2024
2023
2024
2023
Global ECS sales
$
2,469
$
2,213
$
7,940
$
7,687
Global ECS operating income, as
reported
160
145
410
367
Global ECS non-GAAP operating income
161
146
414
372
In the fourth quarter of 2024, global enterprise computing
solutions (“ECS”) sales increased 12 percent year over year. EMEA
ECS fourth-quarter sales increased 22 percent year over year and
increased 24 percent year over year on a constant currency basis.
Americas ECS fourth-quarter sales increased 1 percent year over
year and increased 2 percent year over year on a constant currency
basis.
Other Financial Metrics
“During 2024, we generated over $1.1 billion in cash flow from
operations and managed working capital efficiently, including
lowering inventory by $1.1 billion compared to prior peak levels.
The company also returned $250 million to shareholders through
stock repurchases,” said Raj Agrawal, Arrow’s senior vice president
and chief financial officer.
1 A reconciliation of non-GAAP financial
measures to GAAP financial measures is presented in the
reconciliation tables included herein.
2 Europe, the Middle East, and Africa.
First-Quarter 2025
Outlook
- Consolidated sales of $5.98 billion to $6.58 billion, with
global components sales of $4.35 billion to $4.75 billion, and
global enterprise computing solutions sales of $1.63 billion to
$1.83 billion
- Net income per share on a diluted basis of $0.98 to $1.18, and
non-GAAP net income per share on a diluted basis of $1.30 to
$1.50
- Average tax rate in the range of 23 to 25 percent
- Interest expense of approximately $60 million to $65
million
- Changes in foreign currencies to decrease sales by
approximately $138 million, and earnings per share on a diluted
basis by $0.13 compared to the first quarter of 2024
- Changes in foreign currencies to decrease quarter-over-quarter
growth in sales by $90 million and earnings per share on a diluted
basis by $0.05 compared to the fourth quarter of 2024
First-Quarter 2025 GAAP to
non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
March 29,
March 30,
March 29,
December 31,
(in billions)
2025
2024
% Change
2025
2024
% Change
Global components sales, GAAP
$
4.35 - 4.75
$
5.19
(16%) - (8%)
$
4.35 - 4.75
$
4.81
(10%) - (1%)
Impact of changes in foreign
currencies
—
(0.09)
—
(0.05)
Global components sales, constant
currency
$
4.35 - 4.75
$
5.10
(15%) - (7%)
$
4.35 - 4.75
$
4.76
(9%) - (0%)
Global ECS sales, GAAP
$
1.63 - 1.83
$
1.73
(6%) - 6%
$
1.63 - 1.83
$
2.47
(34%) - (26%)
Impact of changes in foreign
currencies
—
(0.05)
—
(0.04)
Global ECS sales, constant currency
$
1.63 - 1.83
$
1.68
(3%) - 9%
$
1.63 - 1.83
$
2.43
(33%) - (25%)
NON-GAAP EARNINGS
RECONCILIATION
Reported GAAP measure
Intangible amortization
expense
Restructuring & integration
charges
Non-GAAP measure
Net income per diluted share
$0.98 to $1.18
$0.07
$0.25
$1.30 to $1.50
Earnings Presentation
Please refer to the earnings presentation, that 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.
Webcast and Conference Call
Information
Arrow Electronics will host a conference call to discuss
fourth-quarter and full-year 2024 financial results on Feb. 6,
2025, at 1:00 PM ET.
A live webcast of the conference call will be available via the
events section of investor.arrow.com or by accessing the webcast
link directly at https://events.q4inc.com/attendee/886513367.
Shortly after the conclusion of the conference call, a webcast
replay will be available on the Arrow website for one year.
About Arrow Electronics
Arrow Electronics guides innovation forward for thousands of
leading technology manufacturers and service providers. With 2024
sales of $28 billion, Arrow’s portfolio enables technology across
major industries and markets. Learn more at arrow.com.
Key Business Metrics
Management uses gross billings as an operational metric to
monitor operating performance of its global ECS reportable segment,
including sales performance by geographic region, as it provides
meaningful supplemental information to the reader in evaluating the
overall performance of the global ECS business. The company uses
this key metric to develop financial forecasts, make strategic
decisions, and prepare and approve annual budgets. Gross billings
represent amounts invoiced to customers for goods and services
during a period and do not include the impact of recording sales on
a net basis or sales adjustments, such as trade discounts and other
allowances. The use of gross billings has certain limitations as an
analytical tool and should not be considered in isolation or as a
substitute for revenue.
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
first quarter of fiscal 2025 such as sales, net income per diluted
share, non-GAAP net income per diluted share, average tax rate,
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,
the timing of the completion of the Operating Expense Efficiency
Plan (the “Plan”) and Arrow’s estimated costs and expected
operating expense reductions from the Plan, industry trends and
expectations regarding market demand and conditions 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: the
incurrence of additional charges not currently contemplated and
failure to realize contemplated cost savings due to unanticipated
events that may occur, including in connection with the
implementation of the Plan; unfavorable economic conditions;
disruptions, shortages or inefficiencies in the supply chain;
political instability and changes; impacts of military conflict and
sanctions; industry conditions; changes in product supply, pricing
and customer demand; trade protection measures, tariffs, and other
restrictions, duties, and value-added taxes; 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; breaches of security or privacy of business
information and information system failures, including related to
current or future implementations, integrations and upgrades;
outbreaks, epidemics, pandemics, or public health crises; future
regulatory trends and the resulting legal and reputation exposure,
including but not limited to those relating to environmental,
social, governance, cybersecurity, data privacy, and artificial
intelligence issues; and the company's ability to generate positive
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 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 the following non-GAAP
metrics: sales, operating income (including by business segment),
income before income taxes, provision for income taxes,
consolidated net income, noncontrolling interest, net income
attributable to shareholders, effective tax rate and net income per
share on a diluted basis. The foregoing non-GAAP measures are
adjusted by certain of the following, as applicable: 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; net gains and losses on investments;
inventory write downs related to the wind down of businesses within
the global components reportable segment (“impact of wind down”);
loss on extinguishment of debt; 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. For further discussion of
our non-GAAP measures and related adjustments, refer to the section
entitled “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the company's most recent
Quarterly Report on Form 10-Q and the company's most recent Annual
Report on Form 10-K.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands except per share
data)
Quarter Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
(Unaudited)
(Unaudited)
Sales
$
7,282,877
$
7,849,157
$
27,923,324
$
33,107,120
Cost of sales
6,479,567
6,859,607
24,630,916
28,958,102
Gross profit
803,310
989,550
3,292,408
4,149,018
Operating expenses:
Selling, general, and administrative
547,511
590,039
2,217,940
2,412,822
Depreciation and amortization
39,638
43,168
162,994
181,116
Restructuring, integration, and other
21,058
39,664
142,917
83,916
608,207
672,871
2,523,851
2,677,854
Operating income
195,103
316,679
768,557
1,471,164
Equity in (losses) earnings of affiliated
companies
(544)
2,034
1,368
6,407
(Loss) gain on investments, net
(4,070)
14,635
(4,830)
19,284
Loss on extinguishment of debt
—
—
(1,657)
—
Employee benefit plan expense, net
(1,393)
(1,267)
(4,285)
(3,777)
Interest and other financing expense,
net
(60,392)
(82,052)
(269,834)
(328,724)
Income before income taxes
128,704
250,029
489,319
1,164,354
Provision for income taxes
28,816
53,823
95,812
254,991
Consolidated net income
99,888
196,206
393,507
909,363
Noncontrolling interests
680
1,669
1,433
5,858
Net income attributable to
shareholders
$
99,208
$
194,537
$
392,074
$
903,505
Net income per share:
Basic
$
1.88
$
3.58
$
7.36
$
16.03
Diluted
$
1.86
$
3.54
$
7.29
$
15.84
Weighted-average shares outstanding:
Basic
52,723
54,396
53,282
56,359
Diluted
53,214
55,015
53,797
57,035
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par
value)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
188,807
$
218,053
Accounts receivable, net
13,030,991
12,238,073
Inventories
4,709,706
5,187,225
Other current assets
471,909
684,126
Total current assets
18,401,413
18,327,477
Property, plant, and equipment, at
cost:
Land
5,691
5,691
Buildings and improvements
194,061
195,579
Machinery and equipment
1,623,228
1,632,606
1,822,980
1,833,876
Less: Accumulated depreciation and
amortization
(1,353,720
)
(1,303,136
)
Property, plant, and equipment, net
469,260
530,740
Investments in affiliated companies
57,299
62,741
Intangible assets, net
96,706
127,440
Goodwill
2,055,295
2,050,426
Other assets
677,734
627,344
Total assets
$
21,757,707
$
21,726,168
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
11,047,470
$
10,070,015
Accrued expenses
1,238,714
1,463,915
Short-term borrowings, including current
portion of long-term debt
349,978
1,653,954
Total current liabilities
12,636,162
13,187,884
Long-term debt
2,773,783
2,153,553
Other liabilities
516,234
507,424
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2024
and 2023
Issued - 55,592 and 57,691 shares in 2024
and 2023, respectively
55,592
57,691
Capital in excess of par value
562,080
553,340
Treasury stock (3,420 and 3,880 shares in
2024 and 2023, respectively), at cost
(328,078
)
(297,745
)
Retained earnings
5,980,826
5,790,217
Accumulated other comprehensive loss
(509,269
)
(298,039
)
Total shareholders’ equity
5,761,151
5,805,464
Noncontrolling interests
70,377
71,843
Total equity
5,831,528
5,877,307
Total liabilities and equity
$
21,757,707
$
21,726,168
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Quarter Ended
December 31, 2024
December 31, 2023
Cash flows from operating activities:
Consolidated net income
$
99,888
$
196,206
Adjustments to reconcile consolidated net
income to net cash provided by operations:
Depreciation and amortization
39,638
43,168
Amortization of stock-based
compensation
4,444
6,701
Equity in losses (earnings) of affiliated
companies
544
(2,034
)
Deferred income taxes
(79,579
)
(40,942
)
Loss (gain) on investments, net
4,183
(7,817
)
Other
1,134
18,512
Change in assets and liabilities, net of
effects of acquired businesses:
Accounts receivable, net
(1,525,485
)
(1,396,096
)
Inventories
(241,622
)
664,333
Accounts payable
1,779,503
898,395
Accrued expenses
(330,408
)
126,949
Other assets and liabilities
574,224
(220,633
)
Net cash provided by operating
activities
326,464
286,742
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(22,548
)
(25,510
)
Cash consideration paid for acquired
businesses, net of cash acquired
(18,909
)
—
Other
41
—
Net cash used for investing activities
(41,416
)
(25,510
)
Cash flows from financing activities:
Change in short-term and other
borrowings
(560,840
)
63,980
Proceeds from (repayments of) long-term
bank borrowings, net
410,189
(465,147
)
Proceeds from exercise of stock
options
—
186
Repurchases of common stock
(50,790
)
(50,492
)
Net cash used for financing activities
(201,441
)
(451,473
)
Effect of exchange rate changes on
cash
(142,800
)
75,000
Net decrease in cash and cash
equivalents
(59,193
)
(115,241
)
Cash and cash equivalents at beginning of
period
248,000
333,294
Cash and cash equivalents at end of
period
$
188,807
$
218,053
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
Year Ended
December 31, 2024
December 31, 2023
Cash flows from operating activities:
Consolidated net income
$
393,507
$
909,363
Adjustments to reconcile consolidated net
income to net cash provided by operations:
Depreciation and amortization
162,994
181,116
Amortization of stock-based
compensation
34,631
41,569
Equity in earnings of affiliated
companies
(1,368
)
(6,407
)
Deferred income taxes
(99,866
)
(93,980
)
Loss on extinguishment of debt
1,657
—
Loss (gain) on investments, net
5,260
(12,466
)
Other
5,328
22,590
Change in assets and liabilities, net of
effects of acquired businesses:
Accounts receivable, net
(1,013,091
)
189,425
Inventories
421,063
139,313
Accounts payable
1,092,488
(457,382
)
Accrued expenses
(140,871
)
38,601
Other assets and liabilities
268,681
(246,293
)
Net cash provided by operating
activities
1,130,413
705,449
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(92,703
)
(83,285
)
Proceeds from sale of property, plant, and
equipment
5,157
—
Cash consideration paid for acquired
businesses, net of cash acquired
(34,834
)
—
Proceeds from collections of notes
receivable
—
237
Proceeds from settlement of net investment
hedge
10,635
10,725
Other
17,303
—
Net cash used for investing activities
(94,442
)
(72,323
)
Cash flows from financing activities:
Change in short-term and other
borrowings
(1,155,909
)
866,012
Proceeds from (repayments of) long-term
bank borrowings, net
470,347
(1,031,881
)
Redemption of notes
(1,000,000
)
(300,000
)
Net proceeds from note offering
989,564
496,268
Proceeds from exercise of stock
options
5,354
17,010
Repurchases of common stock
(265,142
)
(770,200
)
Settlement of forward-starting interest
rate swap
—
56,711
Other
(1,041
)
(142
)
Net cash used for financing activities
(956,827
)
(666,222
)
Effect of exchange rate changes on
cash
(108,390
)
74,234
Net (decrease) increase in cash and cash
equivalents
(29,246
)
41,138
Cash and cash equivalents at beginning of
year
218,053
176,915
Cash and cash equivalents at end of
year
$
188,807
$
218,053
ARROW ELECTRONICS, INC.
ECS Gross Billings
(In thousands)
(Unaudited)
Global Enterprise Computing
Solutions - Gross Billings(1)
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
Gross billings:
Americas ECS
$
2,942,118
$
2,814,076
$
10,323,375
$
10,542,285
EMEA ECS
3,144,823
2,732,695
9,204,833
8,473,855
Global ECS
$
6,086,941
$
5,546,771
$
19,528,208
$
19,016,140
______________________________
(1)
Refer to page 4 for discussion
about key business metrics. Gross billings are not a substitute for
revenue.
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
December 31, 2024
December 31, 2023
% Change
Consolidated sales, as reported
$
7,282,877
$
7,849,157
(7.2
)
%
Impact of changes in foreign
currencies
—
(27,280
)
Consolidated sales, constant currency
$
7,282,877
$
7,821,877
(6.9
)
%
Global components sales, as reported
$
4,813,760
$
5,636,032
(14.6
)
%
Impact of changes in foreign
currencies
—
(11,106
)
Global components sales, constant
currency
$
4,813,760
$
5,624,926
(14.4
)
%
Americas components sales, as reported
$
1,603,710
$
1,784,764
(10.1
)
%
Impact of changes in foreign
currencies
—
(763
)
Americas components sales, constant
currency
$
1,603,710
$
1,784,001
(10.1
)
%
Asia components sales, as reported
$
1,947,730
$
2,163,421
(10.0
)
%
Impact of changes in foreign
currencies
—
(2,923
)
Asia components sales, constant
currency
$
1,947,730
$
2,160,498
(9.8
)
%
EMEA components sales, as reported
$
1,262,320
$
1,687,847
(25.2
)
%
Impact of changes in foreign
currencies
—
(7,420
)
EMEA components sales, constant
currency
$
1,262,320
$
1,680,427
(24.9
)
%
Global ECS sales, as reported
$
2,469,117
$
2,213,125
11.6
%
Impact of changes in foreign
currencies
—
(16,174
)
Global ECS sales, constant currency
$
2,469,117
$
2,196,951
12.4
%
Americas ECS sales, as reported
$
1,162,227
$
1,145,754
1.4
%
Impact of changes in foreign
currencies
—
(2,914
)
Americas ECS sales, constant currency
$
1,162,227
$
1,142,840
1.7
%
EMEA ECS sales, as reported
$
1,306,890
$
1,067,371
22.4
%
Impact of changes in foreign
currencies
—
(13,260
)
EMEA ECS sales, constant currency
$
1,306,890
$
1,054,111
24.0
%
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Year Ended
December 31, 2024
December 31, 2023
% Change
Consolidated sales, as reported
$
27,923,324
$
33,107,120
(15.7
)
%
Impact of changes in foreign
currencies
—
(33,434
)
Consolidated sales, constant currency
$
27,923,324
$
33,073,686
(15.6
)
%
Global components sales, as reported
$
19,983,267
$
25,419,899
(21.4
)
%
Impact of changes in foreign
currencies
—
(35,319
)
Global components sales, constant
currency
$
19,983,267
$
25,384,580
(21.3
)
%
Americas components sales, as reported
$
6,411,701
$
7,954,713
(19.4
)
%
Impact of changes in foreign
currencies
—
(3,758
)
Americas components sales, constant
currency
$
6,411,701
$
7,950,955
(19.4
)
%
Asia components sales, as reported
$
7,923,459
$
9,390,292
(15.6
)
%
Impact of changes in foreign
currencies
—
(42,456
)
Asia components sales, constant
currency
$
7,923,459
$
9,347,836
(15.2
)
%
EMEA components sales, as reported
$
5,648,107
$
8,074,894
(30.1
)
%
Impact of changes in foreign
currencies
—
10,895
EMEA components sales, constant
currency
$
5,648,107
$
8,085,789
(30.1
)
%
Global ECS sales, as reported
$
7,940,057
$
7,687,221
3.3
%
Impact of changes in foreign
currencies
—
1,885
Global ECS sales, constant currency
$
7,940,057
$
7,689,106
3.3
%
Americas ECS sales, as reported
$
4,067,160
$
4,160,298
(2.2
)
%
Impact of changes in foreign
currencies
—
(6,098
)
Americas ECS sales, constant currency
$
4,067,160
$
4,154,200
(2.1
)
%
EMEA ECS sales, as reported
$
3,872,897
$
3,526,923
9.8
%
Impact of changes in foreign
currencies
—
7,983
EMEA ECS sales, constant currency
$
3,872,897
$
3,534,906
9.6
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Three months ended December 31,
2024
Impact
Reported
Intangible
Restructuring
of
GAAP
amortization
& Integration
Wind
Non-GAAP
measure
expense
charges
Down(1)
Other(2)
measure
Operating income
$
195,103
$
7,219
$
21,058
$
50,344
$
—
$
273,724
Income before income taxes
128,704
7,219
21,058
50,344
4,070
211,395
Provision for income taxes
28,816
1,786
4,318
16,692
977
52,589
Consolidated net income
99,888
5,433
16,740
33,652
3,093
158,806
Noncontrolling interests
680
135
—
—
—
815
Net income attributable to
shareholders
$
99,208
$
5,298
$
16,740
$
33,652
$
3,093
$
157,991
Net income per diluted share (4)
$
1.86
$
0.10
$
0.31
$
0.63
$
0.06
$
2.97
Effective tax rate (5)
22.4
%
24.9
%
Three months ended December 31,
2023
Impact
Reported
Intangible
Restructuring
of
GAAP
amortization
& Integration
Wind
Non-GAAP
measure
expense
charges
Down(1)
Other(2)
measure
Operating income
$
316,679
$
7,491
$
39,664
$
—
$
—
$
363,834
Income before income taxes
250,029
7,491
39,664
—
(14,635)
282,549
Provision for income taxes
53,823
1,863
9,331
—
(3,500)
61,517
Consolidated net income
196,206
5,628
30,333
—
(11,135)
221,032
Noncontrolling interests
1,669
131
—
—
—
1,800
Net income attributable to
shareholders
$
194,537
$
5,497
$
30,333
$
—
$
(11,135)
$
219,232
Net income per diluted share (4)
$
3.54
$
0.10
$
0.55
$
—
$
(0.20)
$
3.98
Effective tax rate (5)
21.5
%
21.8
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Year ended December 31, 2024
Impact
Reported
Intangible
Restructuring
of
Non
GAAP
amortization
& Integration
Wind
recurring
Non-GAAP
measure
expense
charges
Down(1)
tax items
Other(3)
measure
Operating income
$
768,557
$
29,529
$
142,917
$
60,573
$
—
$
—
$
1,001,576
Income before income taxes
489,319
29,529
142,917
60,573
—
6,487
728,825
Provision for income taxes
95,812
7,348
35,138
19,139
—
1,557
158,994
Consolidated net income
393,507
22,181
107,779
41,434
—
4,930
569,831
Noncontrolling interests
1,433
541
—
—
—
—
1,974
Net income attributable to
shareholders
$
392,074
$
21,640
$
107,779
$
41,434
$
—
$
4,930
$
567,857
Net income per diluted share (4)
$
7.29
$
0.40
$
2.00
$
0.77
$
—
$
0.09
$
10.56
Effective tax rate (5)
19.6
%
21.8
%
Year ended December 31, 2023
Impact
Reported
Intangible
Restructuring
of
Non
GAAP
amortization
& Integration
Wind
recurring
Non-GAAP
measure
expense
charges
Down(1)
tax items
Other(2)
measure
Operating income
$
1,471,164
$
31,242
$
83,916
$
—
$
—
$
—
$
1,586,322
Income before income taxes
1,164,354
31,242
83,916
—
—
(19,284)
1,260,228
Provision for income taxes
254,991
7,824
19,969
—
(942)
(4,614)
277,228
Consolidated net income
909,363
23,418
63,947
—
942
(14,670)
983,000
Noncontrolling interests
5,858
539
—
—
—
—
6,397
Net income attributable to
shareholders
$
903,505
$
22,879
$
63,947
$
—
$
942
$
(14,670)
$
976,603
Net income per diluted share (4)
$
15.84
$
0.40
$
1.12
$
—
$
0.02
$
(0.26)
$
17.12
Effective tax rate (5)
21.9
%
22.0
%
___________________
(1)
Includes write down of inventory
related to the wind down of businesses.
(2)
Other includes loss (gain) on
investments, net.
(3)
Other includes loss (gain) on
investments, net and loss on extinguishment of debt.
(4)
The sum of the components for
non-GAAP diluted EPS, as adjusted may not agree to totals, as
presented, due to rounding.
(5)
The items as shown in this table,
represent the reconciling items for the tax rate as reported and as
a non-GAAP measure.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Sales:
Global components
$
4,813,760
$
5,636,032
$
19,983,267
$
25,419,899
Global ECS
2,469,117
2,213,125
7,940,057
7,687,221
Consolidated
$
7,282,877
$
7,849,157
$
27,923,324
$
33,107,120
Operating income (loss):
Global components (a)
$
116,910
$
281,260
$
741,273
$
1,459,166
Global ECS (b)
160,421
145,053
410,075
367,004
Corporate (c)
(82,228
)
(109,634
)
(382,791
)
(355,006
)
Consolidated
$
195,103
$
316,679
$
768,557
$
1,471,164
(a)
Global components operating
income includes charges of $50.3 million and $60.6 million in
inventory write downs related to the wind down of businesses for
the fourth quarter and twelve months of 2024, respectively. Global
components operating income includes $62.2 million in settlement
benefits recorded as a reduction to operating expense for the
twelve months of 2023.
(b)
In 2023, global ECS operating
income includes charges of $25.4 million to increase the allowance
for credit losses related to one customer. During 2024, global ECS
operating income includes a reversal of charges of $20.0 million
for aged receivables that were collected, related to the same
customer.
(c)
Corporate operating loss includes
restructuring, integration, and other charges of $21.0 million and
$142.9 million for the fourth quarter and twelve months of 2024,
respectively, and $39.6 million and $83.9 million for the fourth
quarter and twelve months of 2023, respectively.
ARROW ELECTRONICS, INC.
NON-GAAP SEGMENT
RECONCILIATIONS
(In thousands)
(Unaudited)
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
Global components gross profit, as
reported
$
497,324
$
702,412
$
2,332,358
$
3,199,120
Impact of wind down to inventory
50,344
—
60,573
—
Global components non-GAAP gross
profit
$
547,668
$
702,412
$
2,392,931
$
3,199,120
Global components gross profit as a
percentage of sales, as reported
10.3
%
12.5
%
11.7
%
12.6
%
Global components non-GAAP gross profit as
a percentage of sales
11.4
%
12.5
%
12.0
%
12.6
%
Global ECS gross profit, as reported
$
305,986
$
287,138
$
960,050
$
949,898
Global ECS gross profit as a percentage of
sales, as reported
12.4
%
13.0
%
12.1
%
12.4
%
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
Global components operating income, as
reported
$
116,910
$
281,260
$
741,273
$
1,459,166
Intangible assets amortization expense
6,162
6,436
25,296
26,500
Impact of wind down to inventory
50,344
—
60,573
—
Global components non-GAAP operating
income
$
173,416
$
287,696
$
827,142
$
1,485,666
Global components operating income as a
percentage of sales, as reported
2.4
%
5.0
%
3.7
%
5.7
%
Global components non-GAAP operating
income as a percentage of sales
3.6
%
5.1
%
4.1
%
5.8
%
Global ECS operating income, as
reported
$
160,421
$
145,053
$
410,075
$
367,004
Intangible assets amortization expense
1,057
1,055
4,233
4,742
Global ECS non-GAAP operating income
$
161,478
$
146,108
$
414,308
$
371,746
Global ECS operating income as a
percentage of sales, as reported
6.5
%
6.6
%
5.2
%
4.8
%
Global ECS non-GAAP operating income as a
percentage of sales
6.5
%
6.6
%
5.2
%
4.8
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206456512/en/
Investors: Brad Windbigler, Treasurer and Vice President,
Investor Relations 720-654-9893
Media: John Hourigan, Vice President, Public Affairs and
Corporate Marketing 303-824-4586
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