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Exhibit 99.1

LOGO

Jabil Posts Third Quarter Results

Strong Cash Flow from Operations

St. Petersburg, FL – June 19, 2013... Today Jabil Circuit, Inc. (NYSE: JBL), announced preliminary, unaudited financial results for its third quarter of fiscal year 2013. For the quarter, Jabil’s revenue increased 5.1 percent to $4.5 billion, over the third quarter of fiscal year 2012.

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

 

Diversified Manufacturing: $1.8 billion.

 

Enterprise & Infrastructure: $1.4 billion.

 

High Velocity: $1.3 billion.

“We are pleased with our progress on the diversification of our business and the positive benefits it affords the company,” said Jabil’s Chief Executive Officer, Mark T. Mondello. “We expect this diversification to continue during our fourth fiscal quarter as we finalize our acquisition of Nypro, which is expected to close on the 1st of July,” he said.

Other highlights from the quarter included producing $504 million cash flow from operations. “Thanks to the dedication of our global workforce, we have generated $810 million cash flow from operations year to date and are on track to deliver $1 billion for our full fiscal year,” said Mondello.

Generally accepted accounting principles (GAAP) operating income for the third quarter of fiscal year 2013 was $103.7 million and GAAP diluted earnings per share were 24 cents. The company said that $28 million in restructuring activity and a $26 million non-cash charge related to a note receivable and related charges impacted GAAP operating income.

Core operating income results excluding amortization of intangibles, stock-based compensation, restructuring and related charges and impairment of notes receivable and related charges was $176.9 million and core diluted earnings per share was 56 cents.

(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 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 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, 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    Q3 2013    Q3 2012

Net revenue

   $4.5 billion    $4.3 billion

GAAP operating income

   $103.7 million    $156.6 million

GAAP net income

   $49.6 million    $101.6 million

GAAP diluted earnings per share

   $0.24    $0.48

GAAP return on invested capital

   12.0%    19.1%

Core operating income

   $176.9 million    $190.3 million

Core earnings

   $115.6 million    $134.4 million

Core diluted earnings per share

   $0.56    $0.64

Core return on invested capital

   21.8%    24.0%

Fiscal Q4 2013 Guidance, including Nypro acquisition:

 

Net revenue

   $4.45 billion to $4.65 billion

Core operating income

   $165 million to $185 million

Core earnings per share

   $0.50 to $0.58 per diluted share

GAAP operating income

   $63 million to $83 million

GAAP earnings per share

   $0.04 to $0.12 per diluted share

Jabil indicated it expects to incur Nypro-related acquisition costs and purchase accounting adjustments of $10 million during its fourth fiscal quarter. This sum is excluded from the above core operating guidance.

(GAAP earnings per share for the fourth quarter of fiscal 2013 are currently estimated to include $0.02 per share for amortization of intangibles, $0.08 per share for stock-based compensation, $0.32 per share for restructuring and related charges and $.04 for acquisition related charges and adjustments.)

Year over Year Segment Revenue Guidance:

 

Diversified Manufacturing Services to remain consistent.

 

Enterprise & Infrastructure to remain consistent.

 

High Velocity to increase fifteen percent.

In addition to the segment guidance, Jabil announced its intention to realign its global operations to more appropriately reflect current market conditions and customer needs. The company indicated that they began consultation with employees during the third fiscal quarter. Jabil management did not provide specific locations under consideration out of respect for employees, their families and their representatives, and statutory and consultation periods required. The company currently estimates that the realignment could result in approximately $188 million of charges, including the $28 million of charges incurred during the company’s third quarter. It is currently estimated that $60 to $70 million will be recorded in Jabil’s fourth fiscal quarter of 2013 and the balance during its fiscal years 2014 and 2015. Jabil estimates that the majority of the $140 million cash associated with these actions will be used in fiscal 2014.


FORWARD LOOKING STATEMENT: This news release contains forward-looking statements, including those regarding our anticipated financial results for our third quarter of fiscal year 2013; the anticipated closing date of the Nypro acquisition; the continuation of diversification during the fourth fiscal quarter as the Nypro acquisition is finalized; and our currently expected fourth quarter of fiscal year 2013 net revenue (including that of our segments), core operating income, GAAP 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 third fiscal quarter of fiscal year 2013 that our financial results and conditions differ from our current preliminary

unaudited numbers set forth herein; the Nypro transaction failing to close or closing later than expected; our ability to diversify our business during the fourth fiscal quarter; 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, 2012, 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, 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 third fiscal quarter 2013 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 June 19, 2013 at approximately 7:30 p.m. ET through midnight on June 26, 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: 91127885. 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 30 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)

 

     May 31,
2013
(Unaudited)
    August 31,
2012
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,351,726      $ 1,217,256   

Accounts receivable, net

     1,008,106        1,125,015   

Inventories

     2,356,304        2,268,949   

Prepaid expenses and other current assets

     1,044,557        989,326   

Income taxes receivable

     11,988        10,949   

Deferred income taxes

     35,508        27,833   
  

 

 

   

 

 

 

Total current assets

     5,808,189        5,639,328   

Property, plant and equipment, net

     1,939,848        1,779,155   

Goodwill and intangible assets, net

     214,382        214,071   

Deferred income taxes

     95,734        73,411   

Other assets

     75,331        97,176   
  

 

 

   

 

 

 

Total assets

   $ 8,133,484      $ 7,803,141   
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current liabilities:

    

Current installments of notes payable and long-term debt

   $ 9,459      $ 18,031   

Accounts payable

     3,085,848        2,992,865   

Accrued expenses

     954,488        808,480   

Income taxes payable

     33,178        35,665   

Deferred income taxes

     6,600        3,955   
  

 

 

   

 

 

 

Total current liabilities

     4,089,573        3,858,996   

Notes payable and long-term debt, less current installments

     1,651,359        1,658,326   

Other liabilities

     78,265        85,714   

Income tax liabilities

     81,558        68,525   

Deferred income taxes

     25,710        24,245   
  

 

 

   

 

 

 

Total liabilities

     5,926,465        5,695,806   
  

 

 

   

 

 

 

Commitments and contingencies

Equity:

    

Jabil Circuit, Inc. stockholders’ equity:

    

Preferred stock

              

Common stock

     237        232   

Additional paid-in capital

     1,816,335        1,752,847   

Retained earnings

     961,160        766,934   

Accumulated other comprehensive income

     98,616        106,275   

Treasury stock, at cost

     (670,761     (521,231
  

 

 

   

 

 

 

Total Jabil Circuit, Inc. stockholders’ equity

     2,205,587        2,105,057   
  

 

 

   

 

 

 

Noncontrolling interests

     1,432        2,278   
  

 

 

   

 

 

 

Total equity

     2,207,019        2,107,335   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 8,133,484      $ 7,803,141   
  

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share data)

(Unaudited)

 

     Three months ended      Nine months ended  
     May 31,
2013
    May 31,
2012
     May 31,
2013
    May 31,
2012
 

Net revenue

   $ 4,467,767      $ 4,250,918       $ 13,522,036      $ 12,813,861   

Cost of revenue

     4,135,272        3,921,595         12,514,419        11,822,364   
  

 

 

   

 

 

    

 

 

   

 

 

 

Gross profit

     332,495        329,323         1,007,617        991,497   

Operating expenses:

         

Selling, general and administrative

     164,813        162,748         498,773        481,382   

Research and development

     6,475        6,518         21,393        19,053   

Amortization of intangibles

     3,472        3,454         10,394        13,399   

Restructuring and related charges

     28,392                28,392          

Impairment of notes receivable and related charges

     25,597                25,597          
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income

     103,746        156,603         423,068        477,663   

Interest and other, net

     31,850        27,628         92,827        83,227   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before income tax

     71,896        128,975         330,241        394,436   

Income tax expense

     22,268        27,377         86,940        80,812   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

     49,628        101,598         243,301        313,624   

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

     (455     278         (1,162     1,734   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income attributable to Jabil Circuit, Inc.

   $ 50,083      $ 101,320       $ 244,463      $ 311,890   
  

 

 

   

 

 

    

 

 

   

 

 

 

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

         

Basic

   $ 0.25      $ 0.49       $ 1.20      $ 1.51   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted

   $ 0.24      $ 0.48       $ 1.18      $ 1.47   
  

 

 

   

 

 

    

 

 

   

 

 

 

Weighted average shares outstanding:

         

Basic

     202,648        206,298         203,142        206,326   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted

     207,569        211,541         207,540        211,749   
  

 

 

   

 

 

    

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Nine months ended  
     May 31,
2013
    May 31,
2012
 

Cash flows from operating activities:

    

Net income

   $ 243,301      $ 313,624   

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

    

Depreciation and amortization

     295,710        262,186   

Recognition of stock-based compensation expense

     52,201        59,857   

Deferred income taxes

     (28,635     (10,573

Impairment of notes receivable and related charges

     25,597          

Other, net

     6,708        17,532   

Changes in operating assets and liabilities, exclusive of net assets acquired:

    

Accounts receivable

     113,134        (22,634

Inventories

     (85,855     (162,076

Prepaid expenses and other current assets

     (59,259     (201,715

Other assets

     (1,497     (3,302

Accounts payable and accrued expenses

     239,209        (52,439

Income taxes payable

     9,067        (8,933
  

 

 

   

 

 

 

Net cash provided by operating activities

     809,681        191,527   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Acquisition of property, plant and equipment

     (452,993     (291,792

Proceeds from sale of property, plant and equipment

     11,274        12,555   

Cash paid for business and intangible asset acquisitions, net of cash acquired

     (9,662     (125,098

Cost of receivables acquired, net of cash collections

            517   

Investments in non-marketable equity securities

     (2,942       
  

 

 

   

 

 

 

Net cash used in investing activities

     (454,323     (403,818
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Borrowings under debt agreements

     3,169,401        7,033,854   

Payments towards debt agreements

     (3,184,810     (6,783,726

Payments to acquire treasury stock

     (129,262     (70,991

Dividends paid to stockholders

     (51,743     (48,716

Dividends paid to noncontrolling interest

            (333

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

     10,899        18,576   

Treasury stock minimum tax withholding related to vesting of restricted stock

     (20,268     (31,181

Debt issuance costs

            (5,014

Excess tax benefit related to stock awards

     330        750   

Capital contribution to noncontrolling interest

     316          

Cash paid to purchase noncontrolling interest

            (20,501
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (205,137     92,718   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (15,751     (26,909
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     134,470        (146,482

Cash and cash equivalents at beginning of period

     1,217,256        888,611   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,351,726      $ 742,129   
  

 

 

   

 

 

 


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      Nine months ended  
     May 31,
2013
     May 31,
2012
     May 31,
2013
     May 31,
2012
 

Operating income (GAAP)

   $ 103,746       $ 156,603       $ 423,068       $ 477,663   

Amortization of intangibles

     3,472         3,454         10,394         13,399   

Distressed customer charge

             10,149                 10,149   

Stock-based compensation and related charges

     15,688         20,123         52,201         59,857   

Restructuring and related charges

     28,392                 28,392           

Impairment of notes receivable and related charges

     25,597                 25,597           
  

 

 

    

 

 

    

 

 

    

 

 

 

Core operating income (Non-GAAP)

   $ 176,895       $ 190,329       $ 539,652       $ 561,068   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

   $ 50,083       $ 101,320       $ 244,463       $ 311,890   

Amortization of intangibles, net of tax

     3,186         3,180         9,837         13,099   

Distressed customer charge

             10,149                 10,149   

Stock-based compensation and related charges, net of tax

     16,042         19,792         52,115         58,656   

Restructuring and related charges, net of tax

     26,574                 26,574           

Impairment of notes receivable and related charges, net of tax

     19,747                 19,747           
  

 

 

    

 

 

    

 

 

    

 

 

 

Core earnings (Non-GAAP)

   $ 115,632       $ 134,441       $ 352,736       $ 393,794   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share: (GAAP)

           

Basic

   $ 0.25       $ 0.49       $ 1.20       $ 1.51   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.24       $ 0.48       $ 1.18       $ 1.47   
  

 

 

    

 

 

    

 

 

    

 

 

 

Core earnings per share: (Non-GAAP)

           

Basic

   $ 0.57       $ 0.65       $ 1.74       $ 1.91   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.56       $ 0.64       $ 1.70       $ 1.86   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

           

Basic

     202,648         206,298         203,142         206,326   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     207,569         211,541         207,540         211,749   
  

 

 

    

 

 

    

 

 

    

 

 

 


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 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  
     May 31,     May 31,  
     2013     2012  

Numerator:

    

Operating income (GAAP)

   $ 103,746      $ 156,603   

Tax effect (1)

     (22,620     (27,625
  

 

 

   

 

 

 

After-tax operating income

     81,126        128,978   
     x4        x4   
  

 

 

   

 

 

 

Annualized after-tax operating income

   $ 324,504      $ 515,912   
  

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 176,895      $ 190,329   

Tax effect (2)

     (30,101     (28,183
  

 

 

   

 

 

 

After-tax core operating income

     146,794        162,146   
     x4        x4   
  

 

 

   

 

 

 

Annualized after-tax core operating income

   $ 587,176      $ 648,584   
  

 

 

   

 

 

 

Denominator:

    

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

   $ 2,190,845      $ 2,007,199   

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

     1,652,534        1,126,315   

Average current installments of notes payable and long-term debt (3)

     59,529        289,010   

Average cash and cash equivalents (3)

     (1,206,691     (724,740
  

 

 

   

 

 

 

Net invested capital asset base

   $ 2,696,217      $ 2,697,784   
  

 

 

   

 

 

 

Return on Invested Capital (GAAP)

     12.0     19.1

Adjustments noted above

     9.8     4.9

Core Return on Invested Capital (Non-GAAP)

     21.8     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.