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Exhibit 99.1

 

LOGO

Jabil Reports Third Quarter Results

Reiterates Fiscal 2015 Outlook

St. Petersburg, FL – June 18, 2014... Today Jabil Circuit, Inc. (NYSE: JBL), announced preliminary, unaudited financial results for its third quarter of fiscal year 2014.

The company reported third quarter revenue of $3.8 billion.

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

 

    Diversified Manufacturing Services: $1.6 billion.

 

    Enterprise & Infrastructure: $1.3 billion.

 

    High Velocity Systems: $0.9 billion.

Generally accepted accounting principles (GAAP) operating loss for the third quarter was ($1.6) million and GAAP net diluted income per share was $0.93. The company indicated that $12.4 million in restructuring costs during the quarter negatively impacted GAAP operating income and that $238.5 million in gain on sale of discontinued operations, net of tax positively impacted GAAP net income.

Core operating income (as defined below) was $45.3 million and core diluted loss per share (as defined below) was ($0.06).

“Our third fiscal quarter performed largely as planned and is highlighted by a strong balance sheet performance, driven by significant cash flow from operations and a total cash position of $1.3 billion,” said Forbes Alexander, Chief Financial Officer. “We believe the strength of our balance sheet positions us well as we consider strategic investments in key growth areas in fiscal 2015,” he added.

(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, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges and goodwill impairment charges. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, income (loss) from discontinued operations, gain on sale of discontinued operations and 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 as determined under GAAP. Jabil calculates its 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 2014    Q3 2013

Net revenue

   $3.8 billion    $4.2 billion

GAAP operating (loss) income

   ($1.6) million    $93.1 million

GAAP net income

   $188.3 million    $50.1 million

GAAP net diluted earnings per share

   $0.93    $0.24

GAAP return on invested capital

   (2.6%)    10.5%

Core operating income

   $45.3 million    $158.6 million

Core (loss) earnings

   ($11.3) million    $98.2 million

Core diluted (loss) earnings per share

   ($0.06)    $0.47

Core return on invested capital

   2.6%    19.2%

 

Fiscal Fourth Quarter Guidance:

  

Net revenue

   $3.7 billion to $3.9 billion

GAAP operating (loss) income

   ($3) million to $47 million

GAAP net diluted loss per share

   ($0.30) to ($0.05) per diluted share

Core operating income

   $40 million to $80 million

Core (loss) earnings per share

   ($0.10) to $0.10 per diluted share

 

GAAP net diluted earnings per share for the fourth 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 expense and related charges, $0.05 to $0.10 per share for restructuring and related charges.

Year over Year Fourth Quarter Segment Revenue Guidance:

 

    Diversified Manufacturing Services to decline 6 percent.

 

    Enterprise & Infrastructure to decline 7 percent.

 

    High Velocity Systems to decline 38 percent.

“We remain confident in our fiscal year 2015 outlook as we anticipate growth in several key areas within our business,” said Mark T. Mondello, Chief Executive Officer. “As we find ourselves immersed in a multitude of exciting product ramps, I’d like to acknowledge and thank our global workforce as they serve and delight our customers each and every day. Exceptional customer care is a catalyst for delivering value to our shareholders,” Mondello added.

Management maintains its fiscal year 2015 outlook of $1.65 to $1.95 core earnings per share.

 

 

FORWARD LOOKING STATEMENT: This news release contains forward-looking statements, including those regarding our anticipated financial results for our third quarter of fiscal year 2014; the strength of our balance sheet and its effect on our plans to consider strategic investments in key growth areas in fiscal 2015; our currently expected fourth quarter of fiscal year 2014 net revenue (including that of our segments), core operating income, GAAP operating (loss) income, core and GAAP earnings (loss) per share results and the components thereof; our fiscal 2015 outlook; our anticipated growth in several key areas within our business; product ramps throughout the company; and our currently expected fiscal year 2015 core earnings per share. 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 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; the occurrence of, success and expected financial results from, the expected multiple product ramps; 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, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, income (loss) from discontinued operations, gain on sale of discontinued operations and 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 quarter of fiscal year 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 June 18, 2014 at approximately 7:30 p.m. ET through midnight on June 25, 2014. 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: 56200882. 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 and manufacturing product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 24 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,        
     2014
(Unaudited)
    August 31,
2013
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 1,322,266      $ 1,011,373   

Accounts receivable, net

     998,420        1,168,954   

Inventories

     1,861,235        2,118,716   

Prepaid expenses and other current assets

     862,804        1,141,919   

Income taxes receivable

     32,692        12,269   

Deferred income taxes

     56,743        45,650   

Assets of discontinued operations

     22,998        321,364   
  

 

 

   

 

 

 

Total current assets

     5,157,158        5,820,245   

Property, plant and equipment, net

     2,212,908        2,309,320   

Goodwill and intangible assets, net

     617,618        609,445   

Deferred income taxes

     89,451        91,383   

Other assets

     144,195        100,801   

Non-current assets of discontinued operations

     —          222,587   
  

 

 

   

 

 

 

Total assets

   $ 8,221,330      $ 9,153,781   
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

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

   $ 69,886      $ 215,448   

Accounts payable

     2,697,598        3,191,328   

Accrued expenses

     1,101,221        1,217,088   

Income taxes payable

     8,712        38,323   

Deferred income taxes

     3,560        6,004   

Liabilities of discontinued operations

     7,181        196,243   
  

 

 

   

 

 

 

Total current liabilities

     3,888,158        4,864,434   

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

     1,672,521        1,690,418   

Other liabilities

     80,139        77,145   

Income tax liabilities

     89,220        76,315   

Deferred income taxes

     61,013        58,047   

Non-current liabilities of discontinued operations

     —          31,855   
  

 

 

   

 

 

 

Total liabilities

     5,791,051        6,798,214   
  

 

 

   

 

 

 

Commitments and contingencies

    

Equity:

    

Jabil Circuit, Inc. stockholders’ equity:

    

Preferred stock

     —          —     

Common stock

     243        238   

Additional paid-in capital

     1,867,204        1,853,409   

Retained earnings

     1,288,029        1,071,175   

Accumulated other comprehensive income

     87,741        81,248   

Treasury stock, at cost

     (834,008     (670,783
  

 

 

   

 

 

 

Total Jabil Circuit, Inc. stockholders’ equity

     2,409,209        2,335,287   
  

 

 

   

 

 

 

Noncontrolling interests

     21,070        20,280   
  

 

 

   

 

 

 

Total equity

     2,430,279        2,355,567   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 8,221,330      $ 9,153,781   
  

 

 

   

 

 

 


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,     May 31,     May 31,     May 31,  
    2014     2013     2014     2013  

Net revenue

  $ 3,785,875      $ 4,196,224      $ 11,705,901      $ 12,735,799   

Cost of revenue

    3,569,925        3,898,652        10,942,550        11,837,451   
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    215,950        297,572        763,351        898,348   

Operating expenses:

       

Selling, general and administrative

    190,804        146,969        497,796        441,782   

Research and development

    5,729        6,475        21,387        21,337   

Amortization of intangibles

    5,679        2,221        18,180        6,591   

Restructuring and related charges

    12,446        23,182        65,652        23,182   

Loss on disposal of subsidiaries

    2,905        —          2,905        —     

Impairment of notes receivable and related charges

    —          25,597        —          25,597   
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

    (1,613     93,128        157,431        379,859   

Interest and other, net

    32,567        31,750        99,708        92,746   
 

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations before tax

    (34,180     61,378        57,723        287,113   

Income tax expense

    18,708        22,129        40,923        81,317   
 

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations, net of tax

    (52,888     39,249        16,800        205,796   
 

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations:

       

Income from discontinued operations, net of tax

    2,699        10,379        21,515        37,505   

Gain on sale of discontinued operations, net of tax

    238,497        —          229,542        —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations, net of tax

    241,196        10,379        251,057        37,505   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    188,308        49,628        267,857        243,301   

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

    53        (455     347        (1,162
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Jabil Circuit, Inc.

  $ 188,255      $ 50,083      $ 267,510      $ 244,463   
 

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) earnings per share attributable to the stockholders of Jabil Circuit, Inc.:

       

Basic:

       

(Loss) income from continuing operations, net of tax

  $ (0.26   $ 0.20      $ 0.08      $ 1.02   
 

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations, net of tax

  $ 1.19      $ 0.05      $ 1.23      $ 0.18   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 0.93      $ 0.25      $ 1.31      $ 1.20   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

       

(Loss) income from continuing operations, net of tax

  $ (0.26   $ 0.19      $ 0.08      $ 1.00   
 

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations, net of tax

  $ 1.19      $ 0.05      $ 1.22      $ 0.18   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 0.93      $ 0.24      $ 1.30      $ 1.18   
 

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding:

       

Basic

    202,008        202,648        203,995        203,142   
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

    202,008        207,569        205,699        207,540   
 

 

 

   

 

 

   

 

 

   

 

 

 


JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Nine months ended  
     May 31,
2014
    May 31,
2013
 

Cash flows from operating activities:

    

Net income

   $ 267,857      $ 243,301   

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

    

Depreciation and amortization

     366,622        295,710   

Gain on sale of discontinued operations

     (239,320     —     

Restructuring and related charges

     30,015        —     

Deferred income taxes

     (25,115     (28,635

Provision for allowance for doubtful accounts

     15,078        —     

Recognition of stock-based compensation expense and related charges

     8,257        52,201   

Loss on disposal of subsidiaries

     2,905        —     

Excess tax benefits related to stock awards

     (1,544     (330

Impairment of notes receivable and related charges

     —          25,597   

Other, net

     3,611        7,038   

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

    

Accounts receivable

     102,708        113,134   

Inventories

     315,254        (85,855

Prepaid expenses and other current assets

     269,871        (59,259

Other assets

     (28,288     (1,497

Accounts payable and accrued expenses

     (666,786     239,209   

Income taxes

     (11,737     9,067   
  

 

 

   

 

 

 

Net cash provided by operating activities

     409,388        809,681   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Proceeds from sale of discontinued operations, net of cash

     544,495        —     

Acquisition of property, plant and equipment

     (414,729     (452,993

Proceeds from sale of property, plant and equipment

     141,082        11,274   

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

     —          (9,662

Investments in non-marketable equity securities

     —          (2,942
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     270,848        (454,323
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Payments towards debt agreements

     (5,336,697     (3,184,810

Borrowings under debt agreements

     5,171,880        3,169,401   

Payments to acquire treasury stock

     (129,063     (129,262

Dividends paid to stockholders

     (52,162     (51,743

Treasury stock minimum tax withholding related to vesting of restricted stock

     (34,162     (20,268

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

     7,697        10,899   

Sale of noncontrolling interest, net of cash

     (1,783     —     

Cash paid to purchase noncontrolling interest

     (1,720     —     

Excess tax benefit related to stock awards

     1,544        330   

Capital contribution to noncontrolling interest

     —          316   
  

 

 

   

 

 

 

Net cash used in financing activities

     (374,466     (205,137
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     5,123        (15,751
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     310,893        134,470   

Cash and cash equivalents at beginning of period

     1,011,373        1,217,256   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,322,266      $ 1,351,726   
  

 

 

   

 

 

 


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,     May 31,     May 31,     May 31,  
     2014     2013     2014     2013  

Operating (loss) income (GAAP)

   $ (1,613   $ 93,128      $ 157,431      $ 379,859   

Amortization of intangibles

     5,679        2,221        18,180        6,591   

Stock-based compensation expense and related charges

     14,561        14,433        6,627        47,620   

Restructuring and related charges

     12,446        23,182        65,652        23,182   

Distressed customer charges

     11,371        —          15,113        —     

Loss on disposal of subsidiaries

     2,905        —          2,905        —     

Impairment of notes receivable and related charges

     —          25,597        —          25,597   
  

 

 

   

 

 

   

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 45,349      $ 158,561      $ 265,908      $ 482,849   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 188,255      $ 50,083      $ 267,510      $ 244,463   

Amortization of intangibles, net of tax

     5,661        1,975        15,084        6,342   

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

     14,298        14,806        5,884        47,587   

Restructuring and related charges, net of tax

     9,862        21,977        55,443        21,977   

Distressed customer charges, net of tax

     8,889        —          11,234        —     

Acquisition costs and certain purchase accounting adjustments, net of tax

     —          —          (9,064     —     

Loss on disposal of subsidiaries, net of tax

     2,905        —          2,905        —     

Impairment of notes receivable and related charges, net of tax

     —          19,747        —          19,747   

Income from discontinued operations, net of tax

     (2,699     (10,379     (21,515     (37,505

Gain on sale of discontinued operations, net of tax

     (238,497     —          (229,542     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Core (loss) earnings (Non-GAAP)

   $ (11,326   $ 98,209      $ 97,939      $ 302,611   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share: (GAAP)

        

Basic

   $ 0.93      $ 0.25      $ 1.31      $ 1.20   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.93      $ 0.24      $ 1.30      $ 1.18   
  

 

 

   

 

 

   

 

 

   

 

 

 

Core (loss) earnings per share: (Non-GAAP)

        

Basic

   $ (0.06   $ 0.48      $ 0.48      $ 1.49   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.06   $ 0.47      $ 0.48      $ 1.46   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

     202,008        202,648        203,995        203,142   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     202,008        207,569        205,699        207,540   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

     202,008        202,648        203,995        203,142   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     202,008        207,569        205,699        207,540   
  

 

 

   

 

 

   

 

 

   

 

 

 


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 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” as its non-GAAP core operating income less a certain tax effect (the calculation of which is explained below). 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 its “average net invested capital asset base” as the sum of the averages (the calculations of which are explained below) of its stockholders’ equity, current and non-current portions 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  
     May 31,     May 31,  
     2014     2013  

Numerator:

    

Operating (loss) income (GAAP)

   $ (1,613   $ 93,128   

Tax effect (1)

     (18,456     (22,504
  

 

 

   

 

 

 

After-tax operating (loss) income

     (20,069     70,624   
     x4        x4   
  

 

 

   

 

 

 

Annualized after-tax operating (loss) income

   $ (80,276   $ 282,496   
  

 

 

   

 

 

 

Core operating income (Non-GAAP)

   $ 45,349      $ 158,561   

Tax effect (2)

     (24,921     (29,296
  

 

 

   

 

 

 

After-tax core operating income

     20,428        129,265   
     x4        x4   
  

 

 

   

 

 

 

Annualized after-tax core operating income

   $ 81,712      $ 517,060   
  

 

 

   

 

 

 

Denominator:

    

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

   $ 2,352,293      $ 2,190,845   

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

     1,673,922        1,652,534   

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

     115,363        59,529   

Average cash and cash equivalents (3)

     (998,698     (1,206,691
  

 

 

   

 

 

 

Net invested capital asset base

   $ 3,142,880      $ 2,696,217   
  

 

 

   

 

 

 

Return on Invested Capital (GAAP)

     (2.6 )%      10.5

Adjustments noted above

     5.2     8.7

Core Return on Invested Capital (Non-GAAP)

     2.6     19.2

 

(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 and dividing by two.