Net sales for the second quarter ended Sept. 28, 2018 were $6.7 billion, growing 7% year-over-year, and within the guidance range of $6.6 to $7.0 billion. GAAP income before income taxes was $109 million for the quarter and adjusted operating income was $224 million, above the midpoint of the guidance range of $200 million to $230 million. GAAP net income was $87 million and adjusted net income for the quarter was $153 million. GAAP net income per share was $0.16 for the quarter and adjusted EPS was $0.29 for the quarter.
The company has worked hard with NIKE to make the footwear manufacturing operations in Mexico technically and commercially successful. In recent weeks, however, it became clear that the company would be unable to reach a commercially viable solution. Accordingly, Flex and NIKE have mutually agreed to wind-down the footwear manufacturing operations in Guadalajara by Dec. 31, 2018.
Flex ended the quarter with approximately $1.38 billion of cash on hand and total debt of approximately $2.9 billion. The balance sheet remains well positioned to support the business over the long term.
Flex’s cash from operations was negative $764 million and negative $1.7 billion for the three and six-month periods ended Sept. 28, 2018, respectively, and reflects the impacts due to cash collections under its ABS programs of the deferred purchase price for receivables sold of $885 million and $1.8 billion for those respective periods that due to a recent accounting change are now included as investing cash activities. Adjusted to exclude the impacts from the new accounting noted above, cash from operations was $120 million and $105 million for the three and six-month periods ended Sept. 28, 2018, respectively.