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8-K - 8-K - JABIL INC | d415333d8k.htm |
Exhibit 99.1
Jabil Posts Fourth Quarter & Fiscal Year 2012 Results
Record Fiscal Year Despite Macro Weakness
St. Petersburg, FL September 25, 2012...Today Jabil Circuit, Inc. (NYSE: JBL), announced its preliminary, unaudited financial results for the fourth quarter and full fiscal year, ended August 31, 2012. The company reported fourth quarter revenue of $4.3 billion and fiscal year revenue of $17.2 billion. In this environment, posting another record fiscal year in revenue, income and earnings was quite an achievement, said Timothy L. Main, President and CEO of Jabil.
Market share gains, new customer wins and new production from existing customers allowed Jabil to grow its targeted markets during the fiscal year while most of the industry contracted. Jabils Diversified Manufacturing Services business grew 24 percent in fiscal 2012. Although Jabil picked up share gains in its Enterprise & Infrastructure business during the year, overall demand weakened, resulting in a decrease of 2 percent from fiscal 2011. Jabils High Velocity business declined 14 percent during the fiscal year.
Results for the fourth quarter were negatively impacted by a challenging new program ramp in our Specialized Services sector, said Main. Additionally demand remained weak in most of our business segments. Generally accepted accounting principles (GAAP) operating income for the quarter was $144 million. These results were negatively impacted by a distressed customer charge of $5.9 million. Excluding amortization of intangibles, stock-based compensation and distressed customer charges, operating income was $175 million. GAAP diluted earnings per share was $0.39 cents and core diluted earnings per share was $0.54 cents.
We are pleased to have generated cash flow from operations of $443 million during the quarter and $634 million over the course of the year. Due to this outstanding performance and ongoing strength of the balance sheet, we were able to return $136 million in capital to shareholders during the fiscal year through dividends and share repurchases, said Chief Financial Officer Forbes Alexander. We see this positive performance continuing and are estimating operating cash flow of $1 billion in fiscal 2013, Alexander noted.
Management also announced that the Jabil Board of Directors has authorized the repurchase of up to $100 million worth of shares of the Companys common stock during the next twelve months. The shares will be repurchased from time-to-time in open market or through privately negotiated transactions at the Companys discretion, subject to factors such as market conditions, levels of cash generation from operations, cash requirements for capital expenses and acquisitions and stock price. The repurchased shares should help to minimize the dilution from the Companys employee equity issuance.
(Definitions used: GAAP means U.S. generally accepted accounting principles. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges and loss on disposal of subsidiaries. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares determined under GAAP. Jabil calculates core return on invested capital by annualizing its after-tax core operating income for its most recently-ended quarter and dividing that by a two quarter average net invested capital base. Jabil reports core operating income, core earnings, core diluted earnings per share and core return on invested capital to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and return on invested capital from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabils core operating income to its GAAP operating income, its calculation of core earnings and core diluted earnings per share to its GAAP net income and GAAP earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)
Operational Highlights Fiscal 2012 versus Fiscal 2011
| Revenue from Diversified Manufacturing Services increased 24 percent. |
| Specialized Services revenue expanded 48 percent. |
| Healthcare & Instrumentation revenue grew 7 percent. |
| Industrial & Clean Tech revenue improved 2 percent. |
| Enterprise & Infrastructure revenue contracted by 2 percent. |
| High Velocity revenue decreased 14 percent. |
| Generated $634 million in cash flow from operations during fiscal 2012. |
| GAAP return on invested capital of 22 percent. |
| Returned $65 million in dividends to shareholders during fiscal 2012. |
Quarterly Results | Q4 2012 | Q4 2011 | ||
Net revenue |
$4.3 billion | $4.3 billion | ||
GAAP operating income |
$144.3 million | $165.6 million | ||
GAAP net income |
$82.8 million | $114.3 million | ||
GAAP diluted earnings per share |
$0.39 | $0.52 | ||
GAAP return on invested capital |
17% | 26% | ||
Core operating income |
$175.1 million | $187.2 million | ||
Core earnings |
$113.3 million | $136.3 million | ||
Core diluted earnings per share |
$0.54 | $0.62 | ||
Core return on invested capital |
22% | 30% | ||
Fiscal Year Results |
Fiscal 2012 | Fiscal 2011 | ||
Net revenue |
$17.2 billion | $16.5 billion | ||
GAAP operating income |
$621.9 million | $578.7 million | ||
GAAP net income |
$394.7 million | $381.1 million | ||
GAAP diluted earnings per share |
$1.87 | $1.73 | ||
GAAP return on invested capital |
22% | 23% | ||
Core operating income |
$736.2 million | $715.2 million | ||
Core earnings |
$507.1 million | $516.3 million | ||
Core diluted earnings per share |
$2.40 | $2.34 | ||
Core return on invested capital |
26% | 29% |
Business Update
We are fortunate to have a healthy balance sheet, strong operations, dedicated employees and a roster of market-leading customers heading into fiscal 2013, said Jabil CEO Timothy Main. While the macroeconomic climate remains challenging, our long-term goals and competitive position are intact and we expect earnings to increase between five and ten percent in fiscal 2013. Jabil provided guidance for its first fiscal quarter of 2013, which began on September 1st.
Fiscal Q1 2013 Guidance Range | ||
Net revenue |
$4.3 to $4.5 billion | |
GAAP operating income |
$140 to $175 million | |
GAAP earnings per share |
$0.37 to $0.50 per diluted share | |
Core operating income |
$170 to $200 million | |
Core earnings per share |
$0.51 to $0.62 per diluted share |
(GAAP earnings per share for the first quarter of fiscal 2013 are currently estimated to include $0.02 per share for amortization of intangibles and $0.10 to $0.12 per share for stock-based compensation).
FORWARD LOOKING STATEMENT: This news release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter of fiscal year 2012; our estimated operating cash flows in fiscal year 2013; potential repurchases of our common stock; our balance sheet, operations, employees and roster of customers heading into fiscal year 2013; the macroeconomic climate; our long-term goals and competitive position; our fiscal year 2013 earnings and our currently expected first quarter of fiscal year 2013 net revenue, core operating income, core and GAAP earnings per share results and the components thereof. The statements in this news release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: our determination as we finalize our financial results for our fourth fiscal quarter of fiscal year 2012 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; fluctuations in our stocks market price; fluctuations in operating results and cash flows; unexpected, adverse seasonal impacts on demand; changes in macroeconomic conditions, both in the U.S. and internationally; our financial performance during and after the current economic conditions; our ability to maintain and improve costs, quality and delivery for our customers; risks and costs inherent in litigation; whether our realignment of our capacity will adversely affect our cost structure, ability to service customers and labor relations; our ability to take advantage of perceived benefits of offering customers vertically integrated services; changes in technology; competition; anticipated growth for us and our industry that may not occur; managing rapid growth; managing rapid declines in customer demand and other related customer challenges that may occur; our ability to successfully consummate acquisitions and divestitures; managing the integration of businesses we acquire (including, with respect to the acquisition of the Italian and French sites, potential unknown liabilities and the costs associated with addressing potential reduced business activity at these sites); risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of large customers; business and competitive factors generally affecting the electronic manufacturing services industry, our customers and our business; other factors that we may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2011, subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Supplemental Information: The financial results disclosed in this release include certain measures calculated and presented in accordance with GAAP. In addition to the GAAP financial measures, Jabil provides supplemental, non-GAAP financial measures to facilitate evaluation of Jabils core operating performance. The non-GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable GAAP measures. The non-GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. Management believes core financial measures (which exclude the effects of the amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, certain other expenses, net of tax and certain deferred tax valuation allowance charges) are a useful measure that facilitates evaluating the past and future performance of Jabils ongoing operations on a comparable basis. Jabil reports core operating income, core return on invested capital, core earnings and core diluted earnings per share to provide investors an additional method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. Included in this release are Condensed Consolidated Statements of Operations as well as a reconciliation of the disclosed core financial measures to the most directly comparable GAAP financial measures.
Company Conference Call Information: Jabil will hold a conference call to discuss the fourth fiscal quarter 2012 earnings today at 4:30 p.m. ET live on the Internet at http://www.jabil.com. The call will be recorded and archived on the web at http://www.jabil.com. A taped replay of the conference call will also be available September 25, 2012 at approximately 7:30 p.m. ET through midnight on October 2, 2012. To access the replay, call (855) 859-2056 from within the United States, or (404) 537-3406 outside the United States. The pass code is: 29777922. An archived webcast of the conference call will be available at http://www.jabil.com/investors/.
About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and aftermarket product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 29 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, JBL. Further information is available on Jabils website: jabil.com.
Investor & Media Contact:
Beth Walters
Senior Vice President, Investor Relations & Communications
Jabil Circuit, Inc.
(727) 803-3511
beth_walters@jabil.com
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
August 31, 2012 (Unaudited) |
August 31, 2011 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 1,217,256 | $ | 888,611 | ||||
Accounts receivable, net |
1,125,015 | 1,100,926 | ||||||
Inventories |
2,268,949 | 2,227,339 | ||||||
Prepaid expenses and other current assets |
989,326 | 868,892 | ||||||
Income taxes receivable |
10,949 | 33,855 | ||||||
Deferred income taxes |
27,833 | 15,737 | ||||||
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Total current assets |
5,639,328 | 5,135,360 | ||||||
Property, plant and equipment, net |
1,779,155 | 1,641,335 | ||||||
Goodwill and intangible assets, net |
214,071 | 125,305 | ||||||
Deferred income taxes |
73,411 | 74,989 | ||||||
Income taxes receivable |
15,651 | | ||||||
Other assets |
81,525 | 80,951 | ||||||
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Total assets |
$ | 7,803,141 | $ | 7,057,940 | ||||
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Current installments of notes payable and long-term debt |
$ | 18,031 | $ | 74,160 | ||||
Accounts payable |
2,992,865 | 2,885,168 | ||||||
Accrued expenses |
808,480 | 892,391 | ||||||
Income taxes payable |
35,665 | 32,987 | ||||||
Deferred income taxes |
3,955 | 5,182 | ||||||
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Total current liabilities |
3,858,996 | 3,889,888 | ||||||
Notes payable and long-term debt, less current installments |
1,658,326 | 1,112,594 | ||||||
Other liabilities |
85,714 | 67,423 | ||||||
Income tax liability |
68,525 | 88,451 | ||||||
Deferred income taxes |
24,245 | 15,761 | ||||||
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Total liabilities |
5,695,806 | 5,174,117 | ||||||
Commitments and contingencies Equity: |
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Jabil Circuit, Inc. stockholders equity |
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Common stock |
232 | 225 | ||||||
Additional paid-in capital |
1,752,847 | 1,649,431 | ||||||
Retained earnings |
766,934 | 441,793 | ||||||
Accumulated other comprehensive income |
106,275 | 194,706 | ||||||
Treasury stock, at cost |
(521,231 | ) | (419,035 | ) | ||||
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Total Jabil Circuit, Inc. stockholders equity |
2,105,057 | 1,867,120 | ||||||
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Noncontrolling interests |
2,278 | 16,703 | ||||||
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Total equity |
2,107,335 | 1,883,823 | ||||||
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Total liabilities and equity |
$ | 7,803,141 | $ | 7,057,940 | ||||
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)
Three months ended | Twelve months ended | |||||||||||||||
August 31, 2012 |
August 31, 2011 |
August 31, 2012 |
August 31, 2011 |
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Net revenue |
$ | 4,338,080 | $ | 4,280,295 | $ | 17,151,941 | $ | 16,518,827 | ||||||||
Cost of revenue |
4,020,532 | 3,951,092 | 15,842,896 | 15,264,257 | ||||||||||||
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Gross profit |
317,548 | 329,203 | 1,309,045 | 1,254,570 | ||||||||||||
Operating expenses: |
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Selling, general and administrative |
163,070 | 152,204 | 644,452 | 590,572 | ||||||||||||
Research and development |
6,784 | 6,209 | 25,837 | 25,034 | ||||||||||||
Amortization of intangibles |
3,426 | 5,230 | 16,825 | 22,051 | ||||||||||||
Restructuring and impairment charges |
| | | 628 | ||||||||||||
Settlement of receivables and related charges |
| | | 13,607 | ||||||||||||
Loss on disposal of subsidiaries |
| | | 23,944 | ||||||||||||
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Operating income |
144,268 | 165,560 | 621,931 | 578,734 | ||||||||||||
Interest and other, net |
29,804 | 24,527 | 113,031 | 97,547 | ||||||||||||
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Income before income tax |
114,464 | 141,033 | 508,900 | 481,187 | ||||||||||||
Income tax expense |
31,999 | 25,492 | 112,811 | 98,229 | ||||||||||||
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Net income |
82,465 | 115,541 | 396,089 | 382,958 | ||||||||||||
Net income (loss) attributable to noncontrolling |
(332 | ) | 1,253 | 1,402 | 1,895 | |||||||||||
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Net income attributable to Jabil Circuit, Inc. |
$ | 82,797 | $ | 114,288 | $ | 394,687 | $ | 381,063 | ||||||||
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Earnings per share attributable to the stockholders of |
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Basic |
$ | 0.40 | $ | 0.54 | $ | 1.91 | $ | 1.78 | ||||||||
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Diluted |
$ | 0.39 | $ | 0.52 | $ | 1.87 | $ | 1.73 | ||||||||
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Weighted average shares outstanding: |
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Basic |
205,666 | 212,753 | 206,160 | 214,502 | ||||||||||||
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Diluted |
210,847 | 219,494 | 211,181 | 220,719 | ||||||||||||
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Twelve months ended | ||||||||
August 31, 2012 |
August 31, 2011 |
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Cash flows from operating activities: |
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Net income |
$ | 396,089 | $ | 382,958 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
353,492 | 319,179 | ||||||
Recognition of stock-based compensation expense |
81,405 | 76,230 | ||||||
Settlement of receivables and related charges |
| 12,673 | ||||||
Loss on disposal of subsidiaries |
| 23,944 | ||||||
Other, net |
15,477 | 12,804 | ||||||
Change in operating assets and liabilities, exclusive of net assets acquired: |
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Accounts receivable |
(22,626 | ) | 48,232 | |||||
Inventories |
(53,268 | ) | (158,545 | ) | ||||
Prepaid expenses and other current assets |
(141,526 | ) | (212,265 | ) | ||||
Other assets |
(2,745 | ) | 3,205 | |||||
Accounts payable and accrued expenses |
21,955 | 305,814 | ||||||
Income taxes payable |
(14,027 | ) | 13,780 | |||||
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Net cash provided by operating activities |
634,226 | 828,009 | ||||||
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Cash flows from investing activities: |
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Cash paid for business and intangible asset acquisitions, net of cash acquired |
(125,098 | ) | 3,985 | |||||
Acquisition of property, plant and equipment |
(497,697 | ) | (458,989 | ) | ||||
Proceeds from sale of property, plant and equipment |
16,408 | 23,483 | ||||||
Proceeds from disposal of available for sale investments |
| 5,800 | ||||||
Cost of receivables acquired, net of cash collections |
517 | (557 | ) | |||||
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Net cash used in investing activities |
(605,870 | ) | (426,278 | ) | ||||
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Cash flows from financing activities: |
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Payments toward debt agreements |
(8,748,420 | ) | (7,586,754 | ) | ||||
Borrowings under debt agreements |
9,233,414 | 7,572,157 | ||||||
Dividends paid to stockholders |
(65,240 | ) | (60,411 | ) | ||||
Dividends paid to noncontrolling interest |
(333 | ) | | |||||
Net proceeds from exercise of stock options and issuance of common stock under |
26,003 | 31,644 | ||||||
Payments to acquire treasury stock |
(70,991 | ) | (200,226 | ) | ||||
Treasury stock minimum tax withholding related to vesting of restricted stock |
(31,205 | ) | (9,763 | ) | ||||
Debt issuance costs |
(6,254 | ) | (14,549 | ) | ||||
Excess tax benefit related to stock awards |
885 | 180 | ||||||
Cash paid to purchase noncontrolling interest |
(20,501 | ) | | |||||
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Net cash provided by (used in) financing activities |
317,358 | (267,722 | ) | |||||
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Effect of exchange rate changes on cash and cash equivalents |
(17,069 | ) | 10,273 | |||||
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Net increase in cash and cash equivalents |
328,645 | 144,282 | ||||||
Cash and cash equivalents at beginning of fiscal year |
888,611 | 744,329 | ||||||
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Cash and cash equivalents at end of fiscal year |
1,217,256 | 888,611 | ||||||
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES
(In thousands, except for per share data)
(Unaudited)
Three months ended | Twelve months ended | |||||||||||||||
August 31, 2012 |
August 31, 2011 |
August 31, 2012 |
August 31, 2011 |
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Operating income (GAAP) |
$ | 144,268 | $ | 165,560 | $ | 621,931 | $ | 578,734 | ||||||||
Amortization of intangibles |
3,426 | 5,230 | 16,825 | 22,051 | ||||||||||||
Distressed customer charge |
5,865 | | 16,014 | | ||||||||||||
Stock-based compensation and related charges |
21,552 | 16,376 | 81,409 | 76,230 | ||||||||||||
Restructuring and impairment charges |
| | | 628 | ||||||||||||
Loss on disposal of subsidiaries |
| | | 23,944 | ||||||||||||
Settlement of receivables and related charges |
| | | 13,607 | ||||||||||||
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Core operating income (Non-GAAP) |
$ | 175,111 | $ | 187,166 | $ | 736,179 | $ | 715,194 | ||||||||
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Net income attributable to Jabil Circuit, Inc. (GAAP) |
$ | 82,797 | $ | 114,288 | $ | 394,687 | $ | 381,063 | ||||||||
Amortization of intangibles, net of tax |
3,327 | 5,213 | 16,425 | 21,998 | ||||||||||||
Distressed customer charge, net of tax |
5,865 | | 16,014 | | ||||||||||||
Stock-based compensation and related charges, net of tax |
21,329 | 16,790 | 79,985 | 75,068 | ||||||||||||
Restructuring and impairment charges, net of tax |
| | | 628 | ||||||||||||
Loss on disposal of subsidiaries, net of tax |
| | | 23,944 | ||||||||||||
Settlement of receivables and related charges, net of tax |
| | | 13,607 | ||||||||||||
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Core earnings (Non-GAAP) |
$ | 113,318 | $ | 136,291 | $ | 507,111 | $ | 516,308 | ||||||||
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Earnings per share: (GAAP) |
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Basic |
$ | 0.40 | $ | 0.54 | $ | 1.91 | $ | 1.78 | ||||||||
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Diluted |
$ | 0.39 | $ | 0.52 | $ | 1.87 | $ | 1.73 | ||||||||
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Core earnings per share: (Non-GAAP) |
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Basic |
$ | 0.55 | $ | 0.64 | $ | 2.46 | $ | 2.41 | ||||||||
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Diluted |
$ | 0.54 | $ | 0.62 | $ | 2.40 | $ | 2.34 | ||||||||
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Weighted average shares outstanding used in the calculations of earnings per share (GAAP and Non-GAAP): |
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Basic |
205,666 | 212,753 | 206,160 | 214,502 | ||||||||||||
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Diluted |
210,847 | 219,494 | 211,181 | 220,719 | ||||||||||||
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES
(In thousands)
(Unaudited)
CALCULATION OF RETURN ON INVESTED CAPITAL AND
CORE RETURN ON INVESTED CAPITAL
The Company calculates (1) Return on Invested Capital by annualizing its after-tax GAAP operating income for its most recently-ended quarter and dividing that by a two quarter average of its net invested capital asset base and (2) Core Return on Invested Capital by annualizing its after-tax non-GAAP core operating income for its most recently-ended quarter and dividing that by a two quarter average of its net invested capital asset base.
The Company calculates: (1) its after-tax GAAP operating income by subtracting a certain tax effect (the calculation of which is explained below) from its GAAP operating income and (2) its after-tax non-GAAP core operating income by subtracting a certain tax effect (the calculation of which is explained below) from its non-GAAP core operating income. See elsewhere in this earnings release for a reconciliation of the Companys non-GAAP core operating income to its GAAP operating income.
The Company calculates net invested capital asset base as the sum of the averages (the calculation of which are explained below) of (1) its stockholders equity, (2) the non-current portion of its notes payable and long term debt and (3) the current portion of its notes payable and long term debt, less the average (the calculation of which is explained below) of its cash and cash equivalents.
The following table reconciles (1) Return on Invested Capital, as calculated using after-tax GAAP operating income to (2) Core Return on Invested Capital, as calculated using after-tax non-GAAP core operating income:
Three months ended August 31, 2012 |
Twelve months ended August 31, 2012 |
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Numerator: |
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Operating income (GAAP) |
$ | 144,268 | $ | 621,931 | ||||
Tax effect (1) |
(32,552 | ) | (114,341 | ) | ||||
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After-tax operating income |
111,716 | 507,590 | ||||||
x4 | x1 | |||||||
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Annualized after-tax operating income |
$ | 446,864 | $ | 507,590 | ||||
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Core Operating Income (Non-GAAP) |
$ | 175,111 | $ | 736,179 | ||||
Tax effect (2) |
(32,761 | ) | (115,905 | ) | ||||
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After-tax core operating income |
142,350 | 620,274 | ||||||
x4 | x1 | |||||||
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Annualized after-tax core operating income |
$ | 569,400 | $ | 620,274 | ||||
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Denominator: |
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Average total Jabil Circuit, Inc. stockholders equity (3) |
$ | 2,059,312 | $ | 1,986,089 | ||||
Average notes payable and long-term debt, less current installments (3) |
1,399,240 | 1,385,460 | ||||||
Average current installments of notes payable and long-term debt (3) |
157,225 | 46,096 | ||||||
Average cash and cash equivalents (3) |
(979,693 | ) | (1,052,934 | ) | ||||
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Net invested capital asset base |
$ | 2,636,084 | $ | 2,364,711 | ||||
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Return on Invested Capital (GAAP) |
17.0 | % | 21.5 | % | ||||
Adjustments noted above |
4.6 | % | 4.7 | % | ||||
Core Return on Invested Capital (Non-GAAP) |
21.6 | % | 26.2 | % |
(1) | This amount is calculated by adding the amount of income taxes attributable to its operating income (GAAP) and its interest expense. |
(2) | This amount is calculated by adding the amount of income taxes attributable to its core operating income (Non-GAAP) and its interest expense. |
(3) | The average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter for the three months ended August 31, 2012 and dividing by two. The average is based on the addition of the account balance at the end of the most recently-ended fiscal year to the account balance at the end of the prior fiscal year for the twelve months ended August 31, 2012 and dividing by two. |