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Exhibit 99.1

LOGO

Jabil Posts First Quarter Results

Also Announces $200 Million Stock Repurchase Authorization

St. Petersburg, FL – December 17, 2013. Today Jabil Circuit, Inc. (NYSE: JBL), announced preliminary, unaudited financial results for its first quarter of fiscal year 2014.

The company reported first quarter revenue of $4.6 billion.

Jabil’s three reporting segments delivered the following revenue results for the company’s first fiscal quarter:

 

    Diversified Manufacturing: $2.3 billion.

 

    Enterprise & Infrastructure: $1.3 billion.

 

    High Velocity: $1.0 billion.

Generally accepted accounting principles (GAAP) operating income for the first quarter was $172.7 million and GAAP diluted earnings per share were $0.57. The company indicated that $21.3 million in restructuring costs during the quarter impacted GAAP operating income.

Core operating income results, excluding amortization of intangibles, stock-based compensation and related charges and restructuring and related charges, was $177.1 million and core diluted earnings per share was $0.51.

(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 related charges, impairment of notes receivable and related charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries and acquisition costs and purchase accounting adjustments. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, impairment of notes receivable and related charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, acquisition costs and purchase accounting adjustments, 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 and basic 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 Jabil’s 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.)


Quarterly Results

  

Q1 2014

  

Q1 2013

Net revenue

   $4.6 billion    $4.6 billion

GAAP operating income

   $172.7 million    $170.3 million

GAAP net income

   $117.9 million    $105.8 million

GAAP diluted earnings per share

   $0.57    $0.51

GAAP return on invested capital

   18.3%    20.6%

Core operating income

   $177.1 million    $192.5 million

Core earnings

   $105.4 million    $127.8 million

Core diluted earnings per share

   $0.51    $0.61

Core return on invested capital

   16.8%    24.0%

Business Update

Jabil provided guidance for its second fiscal quarter of 2014, which began on December 1, 2013.

 

Net revenue

  $3.5 billion to $3.7 billion

Core operating income

  $40 million to $80 million

Core earnings per share

  $0.05 to $0.15 per diluted share

GAAP operating (loss) income

  ($17) million to $33 million

GAAP (loss) per share

  ($0.20) to ($0.06) per diluted share

 

 

(GAAP earnings per share for the second quarter of fiscal year 2014 are currently estimated to include $0.03 per share for amortization of intangibles, $0.07 per share for stock-based compensation and $0.15 to $0.11 per share for restructuring and related charges.)

Year over Year Second Quarter Segment Revenue Guidance:

 

    Diversified Manufacturing Services to decrease 25 percent.

 

    Enterprise & Infrastructure consistent.

 

    High Velocity to decline 25 percent.

Beyond the segment guidance, the company also announced that its Board of Directors has authorized the repurchase of up to $200 million of the company’s common stock over the next 12 months. The shares will be repurchased from time-to-time in open market transactions at the Company’s discretion, subject to market conditions and other factors.

FORWARD LOOKING STATEMENT: This news release contains forward-looking statements, including those regarding our anticipated financial results for our first quarter of fiscal year 2014; our currently expected second quarter of fiscal year 2014 net revenue (including that of our segments), core operating income, GAAP operating income, core and GAAP earnings per share results and the components thereof; and our potential repurchases of our common stock. 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 first quarter of fiscal year 2014 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein;; fluctuations in our stock’s 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; 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, 2013, subsequent Reports on Forms 10-Q and 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 Jabil’s 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 related charges, impairment of notes receivable and related charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, acquisition costs and purchase accounting adjustments, 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 Jabil’s ongoing operations on a comparable basis. Jabil reports core operating income, core return on invested capital, core earnings and core diluted and basic 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 first fiscal quarter 2014 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 December 17, 2013 at approximately 7:30 p.m. ET through midnight on December 31, 2013. 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: 20315410. 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 31 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 Jabil’s 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)

 

     November 30,        
     2013
(Unaudited)
    August 31,
2013
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 769,223      $ 1,011,373   

Accounts receivable, net

     1,430,997        1,281,425   

Inventories

     2,166,797        2,302,155   

Prepaid expenses and other current assets

     1,165,090        1,165,984   

Income taxes receivable

     26,280        13,048   

Deferred income taxes

     50,308        46,260   
  

 

 

   

 

 

 

Total current assets

     5,608,695        5,820,245   

Property, plant and equipment, net

     2,474,466        2,395,598   

Goodwill and intangible assets, net

     762,666        740,435   

Deferred income taxes

     87,170        94,069   

Other assets

     96,405        103,434   
  

 

 

   

 

 

 

Total assets

   $ 9,029,402      $ 9,153,781   
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Current installments of notes payable, long-term debt and capital lease obligations

   $ 117,230      $ 215,536   

Accounts payable

     3,185,090        3,301,235   

Accrued expenses

     1,351,125        1,301,078   

Income taxes payable

     18,129        40,332   

Deferred income taxes

     7,836        6,253   
  

 

 

   

 

 

 

Total current liabilities

     4,679,410        4,864,434   

Notes payable, long-term debt and capital lease obligations, less current installments

     1,677,824        1,690,426   

Other liabilities

     85,242        89,813   

Income tax liabilities

     90,490        80,368   

Deferred income taxes

     78,688        73,173   
  

 

 

   

 

 

 

Total liabilities

     6,611,654        6,798,214   
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity:

    

Jabil Circuit, Inc. stockholders’ equity:

    

Preferred stock

     —          —     

Common stock

     242        238   

Additional paid-in capital

     1,828,111        1,853,409   

Retained earnings

     1,172,105        1,071,175   

Accumulated other comprehensive income

     93,914        81,248   

Treasury stock, at cost

     (703,500     (670,783
  

 

 

   

 

 

 

Total Jabil Circuit, Inc. stockholders’ equity

     2,390,872        2,335,287   
  

 

 

   

 

 

 

Noncontrolling interests

     26,876        20,280   
  

 

 

   

 

 

 

Total equity

     2,417,748        2,355,567   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 9,029,402      $ 9,153,781   
  

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share data)

(Unaudited)

 

     Three months ended  
     November 30,      November 30,  
     2013      2012  

Net revenue

   $ 4,611,442       $ 4,637,018   

Cost of revenue

     4,242,672         4,286,423   
  

 

 

    

 

 

 

Gross profit

     368,770         350,595   

Operating expenses:

     

Selling, general and administrative

     158,095         169,600   

Research and development

     9,054         7,263   

Amortization of intangibles

     7,678         3,451   

Restructuring and related charges

     21,275         —     
  

 

 

    

 

 

 

Operating income

     172,668         170,281   

Interest and other, net

     33,822         30,663   
  

 

 

    

 

 

 

Income before income tax

     138,846         139,618   

Income tax expense

     20,781         34,034   
  

 

 

    

 

 

 

Net income

     118,065         105,584   

Net income (loss) attributable to noncontrolling interests, net of income tax expense

     143         (263
  

 

 

    

 

 

 

Net income attributable to Jabil Circuit, Inc.

   $ 117,922       $ 105,847   
  

 

 

    

 

 

 

Earnings per share attributable to the stockholders of Jabil Circuit, Inc.:

     

Basic

   $ 0.58       $ 0.52   
  

 

 

    

 

 

 

Diluted

   $ 0.57       $ 0.51   
  

 

 

    

 

 

 

Weighted average shares outstanding:

     

Basic

     204,762         204,318   
  

 

 

    

 

 

 

Diluted

     206,813         207,816   
  

 

 

    

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three months ended  
     November 30,
2013
    November 30,
2012
 

Cash flows from operating activities:

    

Net income

   $ 118,065      $ 105,584   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     125,596        95,203   

Recognition of stock-based compensation expense and related charges

     (24,566     18,803   

Deferred income taxes

     (5,429     (1,288

Restructuring and related charges

     782        —     

Excess tax benefits related to stock awards

     (714     (330

Other, net

     3,691        3,116   

Changes in operating assets and liabilities:

    

Accounts receivable

     (146,619     (308,487

Inventories

     137,407        (195,316

Prepaid expenses and other current assets

     1,323        10,256   

Other assets

     (6,136     233   

Accounts payable and accrued expenses

     (73,700     424,119   

Income taxes payable

     (11,994     21   
  

 

 

   

 

 

 

Net cash provided by operating activities

     117,706        151,914   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisition of property, plant and equipment

     (202,992     (166,485

Proceeds from sale of property, plant and equipment

     5,819        1,981   
  

 

 

   

 

 

 

Net cash used in investing activities

     (197,173     (164,504
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Borrowings under debt agreements

     2,066,000        776,517   

Payments towards debt agreements

     (2,180,326     (787,196

Dividends paid to stockholders

     (19,261     (18,551

Cash paid to purchase noncontrolling interest

     (1,720     —     

Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan

     —          3,201   

Payments to acquire treasury stock

     —          (129,262

Treasury stock minimum tax withholding related to vesting of restricted stock

     (32,717     (19,908

Capital contribution to noncontrolling interest

     —          317   

Excess tax benefit related to stock awards

     714        330   

Bank overdraft

     3,396        —     
  

 

 

   

 

 

 

Net cash used in financing activities

     (163,914     (174,552
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     1,231        (80
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (242,150     (187,222

Cash and cash equivalents at beginning of period

     1,011,373        1,217,256   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 769,223      $ 1,030,034   
  

 

 

   

 

 

 

 


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  
     November 30,     November 30,  
     2013     2012  

Operating income (GAAP)

   $ 172,668      $ 170,281   

Amortization of intangibles

     7,678        3,451   

Stock-based compensation expense and related charges

     (24,566     18,803   

Restructuring and related charges

     21,275        —     
  

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 177,055      $ 192,535   
  

 

 

   

 

 

 

Net income attributable to Jabil Circuit, Inc. (GAAP)

   $ 117,922      $ 105,847   

Amortization of intangibles, net of tax

     3,066        3,318   

Stock-based compensation expense and related charges, net of tax

     (24,598     18,593   

Restructuring and related charges, net of tax

     18,067        —     

Acquisition costs and purchase accounting adjustments, net of tax

     (9,064     —     
  

 

 

   

 

 

 

Core earnings (Non-GAAP)

   $ 105,393      $ 127,758   
  

 

 

   

 

 

 

Earnings per share: (GAAP)

    

Basic

   $ 0.58      $ 0.52   
  

 

 

   

 

 

 

Diluted

   $ 0.57      $ 0.51   
  

 

 

   

 

 

 

Core earnings per share: (Non-GAAP)

    

Basic

   $ 0.51      $ 0.63   
  

 

 

   

 

 

 

Diluted

   $ 0.51      $ 0.61   
  

 

 

   

 

 

 

Weighted average shares outstanding used in the calculations of earnings per share (GAAP and Non-GAAP):

    

Basic

     204,762        204,318   
  

 

 

   

 

 

 

Diluted

     206,813        207,816   
  

 

 

   

 

 

 


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) its “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) its “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 Company’s 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 calculations of which are explained below) of (1) its stockholders’ equity, (2) the non-current portion of its notes payable, long-term debt and capital lease obligations and (3) the current portion of its notes payable, long-term debt and capital lease obligations, 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  
     November 30,     November 30,  
     2013     2012  

Numerator:

    

Operating income (GAAP)

   $ 172,668      $ 170,281   

Tax effect (1)

     (20,857     (34,292
  

 

 

   

 

 

 

After-tax operating income

     151,811        135,989   
     x4        x4   
  

 

 

   

 

 

 

Annualized after-tax operating income

   $ 607,244      $ 543,956   
  

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 177,055      $ 192,535   

Tax effect (2)

     (37,831     (34,602
  

 

 

   

 

 

 

After-tax core operating income

     139,224        157,933   
     x4        x4   
  

 

 

   

 

 

 

Annualized after-tax core operating income

   $ 556,896      $ 631,732   
  

 

 

   

 

 

 

Denominator:

    

Average total Jabil Circuit, Inc. stockholders’ equity (3)

   $ 2,363,080      $ 2,089,385   

Average notes payable, long-term debt and capital lease obligations, less current installments (3)

     1,684,125        1,657,192   

Average current installments of notes payable, long-term debt and capital lease obligations (3)

     166,383        13,841   

Average cash and cash equivalents (3)

     (890,298     (1,123,645
  

 

 

   

 

 

 

Net invested capital asset base

   $ 3,323,290      $ 2,636,773   
  

 

 

   

 

 

 

Return on Invested Capital (GAAP)

     18.3     20.6

Adjustments noted above

     (1.5 )%      3.4

Core Return on Invested Capital (Non-GAAP)

     16.8     24.0

 

(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 and dividing by two.