Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Fabrinet | d435115d8k.htm |
| EX-10.1 - AMENDED AND RESTATED EMPLOYMENT OFFER LETTER - Fabrinet | d435115dex101.htm |
Exhibit 99.1
Fabrinet Announces First Quarter 2013 Financial Results
BANGKOK, Thailand – November 5, 2012 – Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for the first quarter of fiscal 2013 ended September 28, 2012.
Fabrinet reported total revenue of $158.6 million for the first quarter of fiscal 2013, a decrease of 14.9% compared to total revenue of $186.3 million for the comparable period in fiscal 2012. GAAP net income for the first quarter was $16.0 million, or $0.46 per diluted share, an increase of 1.9% compared to GAAP net income of $15.7 million, or $0.45 per diluted share, in the first quarter of fiscal 2012. Non-GAAP net income in the first quarter of fiscal 2013 was $12.8 million, or $0.36 per diluted share, a decrease of 22.9% compared to non-GAAP net income of $16.6 million, or $0.48 per diluted share, in the same period a year ago.
Tom Mitchell, Chief Executive Officer of Fabrinet, said, “Fiscal 2013 is off to a solid start and I am pleased with the results that we delivered in our first quarter. We are excited about the new business opportunities in front of us and we remain committed to delivering consistent value to all of our customers.”
Business Outlook
Based on information available as of November 5, 2012, Fabrinet is issuing guidance for the second quarter of fiscal 2013 as follows:
Fabrinet expects second quarter revenue to be in the range of $159 million to $163 million. GAAP net income per share is expected to be in the range of $0.32 to $0.34 with expected non-GAAP net income per share of $0.35 to $0.37, based on approximately 35 million fully diluted shares outstanding.
Conference Call Information
| What: | Fabrinet First Quarter 2013 Financial Results Conference Call | |
| When: | Monday, November 5, 2012 | |
| Time: | 5:00 p.m. ET | |
| Live Call: | (888) 357-2056, domestic | |
| (253) 237-1137, international | ||
| Passcode: 48039229 | ||
| Replay: | (855) 859-2056, domestic | |
| (404) 537-3406, international | ||
| Passcode: 48039229 | ||
| Webcast: | http://investor.fabrinet.com (live and replay) | |
This press release and any other information related to the call will also be posted on Fabrinet’s website at http://investor.fabrinet.com. A recorded version of this webcast will be available approximately two hours after the call and will be archived on Fabrinet’s website for a period of one year.
About Fabrinet
Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final
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assembly and test. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the People’s Republic of China and the United States. For more information visit: www.fabrinet.com.
Safe Harbor
“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include all of the statements under the “Business Outlook” section relating to our forecasted operating results for the second quarter of fiscal 2013. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: less customer demand for our products and services than forecasted; less growth in the optical communications, industrial lasers and sensors markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased completion in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a limited number of customers and suppliers; difficulties in accurately forecasting demand for our services; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including in the U.S., Thailand and the People’s Republic of China); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned “Risk Factors” in our annual report on Form 10-K, filed on August 28, 2012. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
Use of Non-GAAP Financials
The Company refers to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding the Company’s ongoing operational performance. Non-GAAP net income excludes stock-based compensation expenses and income (expense) related to flooding. We have excluded these items in order to enhance investors’ understanding of our ongoing operations. The use of these non-GAAP financial measures has material limitations because they should not be used to evaluate our company without reference to their corresponding GAAP financial measures. As such, we compensate for these material limitations by using these non-GAAP financial measures in conjunction with GAAP financial measures.
These non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in financial and operational decision making. In addition, these non-GAAP financial measures are used to measure company performance for the purposes of determining employee incentive plan compensation.
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Fabrinet
Unaudited Condensed Consolidated Balance Sheets
As of September 28, 2012 and June 29, 2012
| (in thousands of U.S. dollars, except share data) | September 28, 2012 |
June 29, 2012 |
||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 115,394 | $ | 115,507 | ||||
| Trade accounts receivable, net |
137,858 | 128,253 | ||||||
| Inventory, net |
110,691 | 103,223 | ||||||
| Deferred tax assets |
2,479 | 4,088 | ||||||
| Prepaid expenses |
2,388 | 3,571 | ||||||
| Other current assets |
5,918 | 6,029 | ||||||
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|
|||||
| Total current assets |
374,728 | 360,671 | ||||||
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| Non-current assets |
||||||||
| Property, plant and equipment, net |
98,127 | 97,923 | ||||||
| Intangibles, net |
305 | 380 | ||||||
| Deferred tax assets |
3,244 | 1,764 | ||||||
| Deposits and other non-current assets |
636 | 624 | ||||||
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|
|
|
|||||
| Total non-current assets |
102,312 | 100,691 | ||||||
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|
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| Total assets |
$ | 477,040 | $ | 461,362 | ||||
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| Liabilities and Shareholders’ Equity |
||||||||
| Current liabilities |
||||||||
| Long-term loans from banks, current portion |
$ | 9,668 | $ | 9,668 | ||||
| Trade accounts payable |
91,919 | 86,000 | ||||||
| Construction-related payable |
928 | 2,222 | ||||||
| Income tax payable |
584 | 353 | ||||||
| Deferred tax liability |
1,532 | 1,405 | ||||||
| Accrued payroll, bonus and related expenses |
6,788 | 5,181 | ||||||
| Accrued expenses |
2,619 | 2,630 | ||||||
| Other payables |
4,132 | 6,601 | ||||||
| Liabilities to third parties due to flood losses |
57,198 | 61,198 | ||||||
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| Total current liabilities |
175,368 | 175,258 | ||||||
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| Non-current liabilities |
||||||||
| Long-term loans from banks, non-current portion |
26,494 | 28,911 | ||||||
| Severance liabilities |
4,774 | 4,420 | ||||||
| Other non-current liabilities |
2,298 | 2,064 | ||||||
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|
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| Total non-current liabilities |
33,566 | 35,395 | ||||||
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| Total liabilities |
208,934 | 210,653 | ||||||
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| Commitments and contingencies |
||||||||
| Shareholders’ equity |
||||||||
| Preferred shares (5,000,000 shares authorized, $0.01 par value; |
— | — | ||||||
| Ordinary shares (500,000,000 shares authorized, $0.01 par value; |
345 | 345 | ||||||
| Additional paid-in capital |
66,840 | 65,462 | ||||||
| Retained earnings |
200,921 | 184,902 | ||||||
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|
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| Total shareholders’ equity |
268,106 | 250,709 | ||||||
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| Total Liabilities and Shareholders’ Equity |
$ | 477,040 | $ | 461,362 | ||||
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Fabrinet
Unaudited Condensed Consolidated Statements of Operations
For the three months ended September 28, 2012 and September 30, 2011
| Three Months Ended | ||||||||
| (in thousands of U.S. dollars, except share data) | September 28, 2012 |
September 30, 2011 |
||||||
| Revenues |
$ | 158,625 | $ | 186,347 | ||||
| Cost of revenues |
(140,903 | ) | (163,463 | ) | ||||
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| Gross profit |
17,722 | 22,884 | ||||||
| Selling, general and administrative expenses |
(5,859 | ) | (6,638 | ) | ||||
| Income (expense) related to flooding |
4,820 | — | ||||||
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|
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| Operating income |
16,683 | 16,246 | ||||||
| Interest income |
188 | 195 | ||||||
| Interest expense |
(286 | ) | (74 | ) | ||||
| Foreign exchange gain (loss), net |
277 | (187 | ) | |||||
| Other income |
190 | 97 | ||||||
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| Income before income taxes |
17,052 | 16,277 | ||||||
| Income tax expense |
(1,033 | ) | (622 | ) | ||||
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| Net income |
$ | 16,019 | $ | 15,655 | ||||
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| Earnings per share |
||||||||
| Basic |
$ | 0.46 | $ | 0.46 | ||||
| Diluted |
0.46 | 0.45 | ||||||
| Weighted average number of ordinary shares outstanding (thousands of shares) |
||||||||
| Basic |
34,485 | 34,223 | ||||||
| Diluted |
34,670 | 34,502 | ||||||
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Fabrinet
Unaudited Condensed Consolidated Statements of Cash Flows
For the three months ended September 28, 2012 and September 30, 2011
| Three Months Ended | ||||||||
| (in thousands of U. S. dollars) | September 28, 2012 |
September 30, 2011 |
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| Cash flows from operating activities |
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| Net income for the period |
$ | 16,019 | $ | 15,655 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
| Depreciation |
2,522 | 2,497 | ||||||
| Amortization of intangibles |
75 | 102 | ||||||
| Loss (gain) on disposal of property, plant and equipment |
1 | (4 | ) | |||||
| Income (expense) related to flooding |
(4,820 | ) | — | |||||
| Proceeds from insurers for business interruption losses related to flooding |
4,741 | — | ||||||
| Allowance for (reversal of) doubtful accounts |
(49 | ) | 15 | |||||
| Unrealized (gain) loss on exchange rate and fair value of derivative |
(714 | ) | 576 | |||||
| Share-based compensation |
1,254 | 988 | ||||||
| Deferred income tax |
256 | (201 | ) | |||||
| Other non-cash expenses |
588 | 188 | ||||||
| Inventory obsolescence |
(166 | ) | 9 | |||||
| Changes in operating assets and liabilities |
||||||||
| Trade accounts receivable |
(9,556 | ) | (4,743 | ) | ||||
| Inventory |
(7,302 | ) | (94 | ) | ||||
| Other current assets and non-current assets |
1,299 | 1,493 | ||||||
| Trade accounts payable |
5,919 | (6,772 | ) | |||||
| Income tax payable |
231 | 657 | ||||||
| Other current liabilities and non-current liabilities |
(349 | ) | (524 | ) | ||||
| Liabilities to third parties due to flood losses |
(4,000 | ) | — | |||||
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| Net cash provided by operating activities |
5,949 | 9,842 | ||||||
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| Cash flows from investing activities |
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| Purchase of property, plant and equipment |
(4,126 | ) | (5,862 | ) | ||||
| Purchase of intangibles |
— | (15 | ) | |||||
| Purchase of assets for lease under direct financing leases |
— | (2,824 | ) | |||||
| Proceeds from direct financing leases |
— | 713 | ||||||
| Proceeds from disposal of property, plant and equipment |
— | 5 | ||||||
| Proceeds from insurers in settlement of claim related to flood damage to Pinehurst building |
79 | — | ||||||
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| Net cash used in investing activities |
(4,047 | ) | (7,983 | ) | ||||
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| Cash flows from financing activities |
||||||||
| Receipt of long-term loans from banks |
— | 4,000 | ||||||
| Repayment of long-term loans from banks |
(2,417 | ) | (917 | ) | ||||
| Proceeds from issuance of ordinary shares under employee share option plans |
124 | 60 | ||||||
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| Net cash (used in) provided by financing activities |
(2,293 | ) | 3,143 | |||||
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| Net (decrease) increase in cash and cash equivalents |
(391 | ) | 5,002 | |||||
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| Movement in cash and cash equivalents |
||||||||
| Cash and cash equivalents at beginning of period |
115,507 | 127,282 | ||||||
| (Decrease) increase in cash and cash equivalents |
(391 | ) | 5,002 | |||||
| Effect of exchange rate on cash and cash equivalents |
278 | 65 | ||||||
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| Cash and cash equivalents at end of period |
$ | 115,394 | $ | 132,349 | ||||
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Fabrinet
Reconciliation of GAAP measures to non-GAAP measures
(in thousands of U.S. dollars, except per share data)
(unaudited)
| Three Months Ended | ||||||||||||||||
| September 28, 2012 |
September 28, 2012 |
September 30, 2011 |
September 30, 2011 |
|||||||||||||
| Net income | Diluted EPS | Net income | Diluted EPS | |||||||||||||
| GAAP measures |
16,019 | 0.46 | 15,655 | 0.45 | ||||||||||||
| Items reconciling GAAP net income & EPS to non-GAAP net income & EPS: |
||||||||||||||||
| Related to cost of revenues: |
||||||||||||||||
| Share-based compensation expenses |
345 | 0.01 | 445 | 0.01 | ||||||||||||
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| Total related to gross profit |
345 | 0.01 | 445 | 0.01 | ||||||||||||
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| Related to selling, general and administrative expenses: |
||||||||||||||||
| Share-based compensation expenses |
909 | 0.03 | 543 | 0.02 | ||||||||||||
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| Total related to selling, general and administrative expenses |
909 | 0.03 | 543 | 0.02 | ||||||||||||
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| Related to other income: |
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| Income (expense) related to flooding |
(4,820 | ) | (0.14 | ) | — | — | ||||||||||
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| Total related to other income |
(4,820 | ) | (0.14 | ) | — | — | ||||||||||
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| Related to income tax expense |
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| Income tax expense |
313 | 0.01 | — | — | ||||||||||||
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| Total related to income tax expense |
313 | 0.01 | — | — | ||||||||||||
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| Total related to net income & EPS |
(3,253 | ) | (0.09 | ) | 988 | 0.03 | ||||||||||
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| Non-GAAP measures |
12,766 | 0.36 | 16,643 | 0.48 | ||||||||||||
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| Shares used in computing diluted net income per share |
||||||||||||||||
| GAAP diluted shares |
34,670 | 34,502 | ||||||||||||||
| Non-GAAP diluted shares |
34,983 | 34,677 | ||||||||||||||
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