UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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[X] |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2002
OR
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[ ] |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-4482
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ARROW ELECTRONICS, INC. |
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(Exact name of Registrant as specified in its charter) |
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New York |
11-1806155 |
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(State or other jurisdiction of |
(I.R.S. Employer |
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incorporation or organization) |
Identification Number) |
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25 Hub Drive, Melville, New York |
11747 |
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(Address of principal executive |
(Zip Code) |
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Offices) |
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Registrant's telephone number, |
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including area code |
(516) 391-1300 |
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes X |
No |
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Common stock, $1 par value: 99,903,117 shares outstanding at November 1, 2002.
TABLE OF CONTENTS
ARROW ELECTRONICS, INC.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Statement of Operations 3
Consolidated Balance Sheet 4
Consolidated Statement of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 19
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 25
Item 4. Controls and Procedures 26
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security
Holders 27
Item 6. Exhibits and Reports on Form 8-K 27
Signatures 28
Certifications 29
Item 1. Financial Statements.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands except per share data)
(Unaudited)
|
Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2002 |
2001 |
2002 |
2001 |
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Sales |
$ |
1,811,339 |
$ |
2,014,029 |
$ |
5,499,195 |
$ |
7,466,393 |
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Costs and expenses: |
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Cost of products sold |
1,502,717 |
1,791,700 |
4,556,453 |
6,317,771 |
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Selling, general and administrative |
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expenses |
254,610 |
267,144 |
763,958 |
873,505 |
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Depreciation and amortization |
16,190 |
29,016 |
50,500 |
87,185 |
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Restructuring costs and other special |
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charges |
- |
77,147 |
- |
77,147 |
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Severance costs |
- |
- |
5,375 |
- |
|||||||||||
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Integration charge |
- |
- |
- |
9,375 |
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1,773,517 |
2,165,007 |
5,376,286 |
7,364,983 |
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Operating income (loss) |
37,822 |
(150,978 |
) |
122,909 |
101,410 |
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Equity in earnings (losses) of affiliated |
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companies |
1,000 |
(940 |
) |
1,966 |
(2,333 |
) |
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Loss on investments |
- |
53,000 |
- |
53,000 |
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Interest expense, net |
38,373 |
48,695 |
120,445 |
168,767 |
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Income (loss) before income taxes and |
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minority interest |
449 |
(253,613 |
) |
4,430 |
(122,690 |
) |
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Provision for (benefit from) income taxes |
171 |
(93,065 |
) |
1,575 |
(39,805 |
) |
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Income (loss) before minority interest |
278 |
(160,548 |
) |
2,855 |
(82,885 |
) |
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Minority interest |
(246 |
) |
(581 |
) |
(330 |
) |
(844 |
) |
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Income (loss) from continuing operations |
524 |
(159,967 |
) |
3,185 |
(82,041 |
) |
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Income (loss) from discontinued |
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operations, net of taxes (including |
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loss from disposal of $6,120, net of |
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tax benefit of $4,114, in 2002) |
- |
879 |
(5,911 |
) |
1,586 |
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Income (loss) before extraordinary item |
524 |
(159,088 |
) |
(2,726 |
) |
(80,455 |
) |
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Extraordinary loss, net of taxes |
(11,641 |
) |
- |
(11,641 |
) |
- |
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Loss before cumulative effect |
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of change in accounting principle |
(11,117 |
) |
(159,088 |
) |
(14,367 |
) |
(80,455 |
) |
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Cumulative effect of change in accounting |
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principle |
- |
- |
(603,709 |
) |
- |
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Net Loss |
$ |
(11,117 |
) |
$ |
(159,088 |
) |
$ |
(618,076 |
) |
$ |
(80,455 |
) |
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Net income (loss) per basic and diluted |
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share: |
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Income (loss) from continuing operations |
$ |
.01 |
$ |
(1.62 |
) |
$ |
.03 |
$ |
(.84 |
) |
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Income (loss) from discontinued operations |
- |
.01 |
(.06 |
) |
.02 |
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Loss from extraordinary item |
(.12 |
) |
- |
(.12 |
) |
- |
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Cumulative effect of change in accounting |
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principle |
- |
- |
(6.05 |
) |
- |
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Net loss per basic and diluted share |
$ |
(.11 |
) |
$ |
(1.61 |
) |
$ |
(6.20 |
) |
$ |
(.82 |
) |
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Average number of shares outstanding: |
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Basic |
99,874 |
99,515 |
97,737 |
98,147 |
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Diluted |
99,874 |
99,515 |
97,737 |
98,147 |
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ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
|
September 30 |
, |
December 31 |
, |
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2002 |
2001 |
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(Unaudited) |
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ASSETS |
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Cash and short-term investments |
$ |
717,820 |
$ |
556,861 |
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Accounts receivable, net |
1,353,665 |
1,389,882 |
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Inventories |
1,180,146 |
1,372,797 |
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Prepaid expenses and other assets |
68,219 |
52,892 |
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Assets from discontinued operations |
- |
98,954 |
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Total current assets |
3,319,850 |
3,471,386 |
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Property, plant and equipment at cost: |
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Land |
42,585 |
42,288 |
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Buildings and improvements |
179,402 |
164,111 |
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Machinery and equipment |
371,873 |
347,170 |
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593,860 |
553,569 |
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Less accumulated depreciation and |
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amortization |
(300,905 |
) |
(252,374 |
) |
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292,955 |
301,195 |
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Investments in affiliated companies |
34,420 |
32,917 |
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Cost in excess of net assets of companies acquired, |
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net of amortization ($190,940 in 2001) |
747,579 |
1,224,283 |
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Other assets |
299,709 |
326,024 |
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Assets from discontinued operations |
- |
3,179 |
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$ |
4,694,513 |
$ |
5,358,984 |
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See accompanying notes.
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
|
September 30 |
, |
December 31 |
, |
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2002 |
2001 |
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(Unaudited) |
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