Anixter International Inc. (AXE, Financial) filed Quarterly Report for the period ended 2010-07-02.
Anixter International Inc. has a market cap of $1.67 billion; its shares were traded at around $49.6 with a P/E ratio of 17.8 and P/S ratio of 0.3. Anixter International Inc. had an annual average earning growth of 13.2% over the past 10 years.AXE is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
Net cash used for financing activities was $133.5 million in the six months ended July 2, 2010 compared to $199.9 million in the corresponding period in 2009. Using net cash generated from operations and net proceeds from borrowings of $95.5 million, during the first half of 2010, the Company repurchased 1.0 million shares of common stock for $41.2 million and a portion of its Notes due 2014 and Notes due 2033 for a total of $150.8 million and $48.9 million, respectively. The repurchase of the Notes due 2014 resulted in the recognition of a pre-tax loss of $30.5 million in the first quarter of 2010 while the repurchase of the Notes due 2033 resulted in a pre-tax gain of $0.8 million in the second quarter of 2010. In the first quarter of 2009, the Company received net proceeds of $180.4 million from the issuance of the Notes due 2014 (net of deferred financing costs associated with the offering of $4.8 million). Using the proceeds from the prior year bond offering together with cash generated from operations, the Company reduced other borrowings by $380.5 million during the first half of 2009 (primarily short-term borrowings).
Operating Expenses: Excluding the goodwill impairment of $100.0 million from the prior year, the Company reported a year-on-year increase in operating expenses of 3.2%, from $235.2 million in the year ago period to $242.9 million in the second quarter of 2010. The prior year second quarter results also include a severance charge of $5.7 million. Excluding the goodwill impairment, severance charge and $1.1 million negative impact of foreign currency effects, operating expenses increased $12.3 million, or 5.3% on a 12.4% increase in organic sales exclusive of the terminated customer contract. The current quarter increase in operating expenses reflects higher variable compensation related costs and variable costs associated with the increase in organic sales. However, these increases have been partially offset by the cost reduction initiatives the Company implemented last year.
Net Sales: When compared to the second quarter of 2009, North America net sales in the second quarter of 2010 increased 9.7% to $984.6 million from $897.7 million. Excluding favorable effects of foreign exchange rate changes of $17.7 million and favorable effects of copper prices of $18.0 million, North America net sales were $948.9 million in the second quarter of 2010, which represents an increase of $51.2 million, or approximately 5.7%, as compared to the prior year ago quarter. Excluding the sales related to the Companys decision to exit a customer contract, which contributed $31.4 million of sales in the second quarter of 2009, second quarter sales would have been $82.6 million favorable to the prior year ago quarter, representing organic growth of 9.5%.
Operating Expenses: Excluding the goodwill impairment of $100.0 million from the prior year, the Company reported a year-on-year increase in operating expenses of 0.8%, from $471.6 million in the year ago period to $475.6 million in the first half of 2010. The prior year results also include a severance charge of $5.7 million. Excluding the severance charge and $9.4 million negative impact of foreign currency effects in the first half of 2010, operating expenses increased slightly by $0.3 million compared to the 5.0% increase in organic sales. Operating expenses in the first half of 2010 reflect higher variable compensation related costs and variable costs associated with the increase in organic sales. However, these increases have been partially offset by the cost reduction initiatives the Company implemented last year.
Operating Income: Operating income of $127.1 million increased in the first half of 2010 as compared to the operating loss of $1.8 million in the prior year. Excluding last years goodwill impairment and severance charge, operating income for the prior year period was $103.9 million. The $23.2 million increase represented a 22.3% improvement year-on-year in operating income. The 4.8% operating margin in the first half of 2010 compares to 4.2% in the year ago period after excluding the goodwill impairment and severance charge. Favorable foreign exchange rate changes and higher copper prices increased operating income by $3.0 million and $8.2 million, respectively.
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Anixter International Inc. has a market cap of $1.67 billion; its shares were traded at around $49.6 with a P/E ratio of 17.8 and P/S ratio of 0.3. Anixter International Inc. had an annual average earning growth of 13.2% over the past 10 years.AXE is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
The Company believes it has a strong liquidity position, sufficient to meet its liquidity requirements for the ensuing twelve months. During the first half of 2010, the Company generated $111.3 million of cash flow from operations, spent $10.1 million on capital expenditures, repurchased 1.0 million shares of common stock for $41.2 million and repurchased a portion of its 10% Senior Notes due 2014 (Notes due 2014) and Convertible Notes due 2033 (Notes due 2033) for a total of $150.8 million and $48.9 million, respectively. The repurchase of the Notes due 2014 resulted in the recognition of a pre-tax loss of $30.5 million in the first quarter of 2010 while the repurchase of the Notes due 2033 resulted in a pre-tax gain of $0.8 million in the second quarter of 2010.Net cash used for financing activities was $133.5 million in the six months ended July 2, 2010 compared to $199.9 million in the corresponding period in 2009. Using net cash generated from operations and net proceeds from borrowings of $95.5 million, during the first half of 2010, the Company repurchased 1.0 million shares of common stock for $41.2 million and a portion of its Notes due 2014 and Notes due 2033 for a total of $150.8 million and $48.9 million, respectively. The repurchase of the Notes due 2014 resulted in the recognition of a pre-tax loss of $30.5 million in the first quarter of 2010 while the repurchase of the Notes due 2033 resulted in a pre-tax gain of $0.8 million in the second quarter of 2010. In the first quarter of 2009, the Company received net proceeds of $180.4 million from the issuance of the Notes due 2014 (net of deferred financing costs associated with the offering of $4.8 million). Using the proceeds from the prior year bond offering together with cash generated from operations, the Company reduced other borrowings by $380.5 million during the first half of 2009 (primarily short-term borrowings).
Operating Expenses: Excluding the goodwill impairment of $100.0 million from the prior year, the Company reported a year-on-year increase in operating expenses of 3.2%, from $235.2 million in the year ago period to $242.9 million in the second quarter of 2010. The prior year second quarter results also include a severance charge of $5.7 million. Excluding the goodwill impairment, severance charge and $1.1 million negative impact of foreign currency effects, operating expenses increased $12.3 million, or 5.3% on a 12.4% increase in organic sales exclusive of the terminated customer contract. The current quarter increase in operating expenses reflects higher variable compensation related costs and variable costs associated with the increase in organic sales. However, these increases have been partially offset by the cost reduction initiatives the Company implemented last year.
Net Sales: When compared to the second quarter of 2009, North America net sales in the second quarter of 2010 increased 9.7% to $984.6 million from $897.7 million. Excluding favorable effects of foreign exchange rate changes of $17.7 million and favorable effects of copper prices of $18.0 million, North America net sales were $948.9 million in the second quarter of 2010, which represents an increase of $51.2 million, or approximately 5.7%, as compared to the prior year ago quarter. Excluding the sales related to the Companys decision to exit a customer contract, which contributed $31.4 million of sales in the second quarter of 2009, second quarter sales would have been $82.6 million favorable to the prior year ago quarter, representing organic growth of 9.5%.
Operating Expenses: Excluding the goodwill impairment of $100.0 million from the prior year, the Company reported a year-on-year increase in operating expenses of 0.8%, from $471.6 million in the year ago period to $475.6 million in the first half of 2010. The prior year results also include a severance charge of $5.7 million. Excluding the severance charge and $9.4 million negative impact of foreign currency effects in the first half of 2010, operating expenses increased slightly by $0.3 million compared to the 5.0% increase in organic sales. Operating expenses in the first half of 2010 reflect higher variable compensation related costs and variable costs associated with the increase in organic sales. However, these increases have been partially offset by the cost reduction initiatives the Company implemented last year.
Operating Income: Operating income of $127.1 million increased in the first half of 2010 as compared to the operating loss of $1.8 million in the prior year. Excluding last years goodwill impairment and severance charge, operating income for the prior year period was $103.9 million. The $23.2 million increase represented a 22.3% improvement year-on-year in operating income. The 4.8% operating margin in the first half of 2010 compares to 4.2% in the year ago period after excluding the goodwill impairment and severance charge. Favorable foreign exchange rate changes and higher copper prices increased operating income by $3.0 million and $8.2 million, respectively.
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