Today Jabil Circuit, Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its fourth quarter and full fiscal year, ended August 31, 2016, including fourth quarter net revenue of $4.4 billion and record fiscal year net revenue of $18.4 billion.
For the fourth quarter of fiscal year 2016, U.S. GAAP (as defined below) operating income was $93.8 million and U.S. GAAP net diluted earnings per share was $0.20. For fiscal year 2016, U.S. GAAP operating income was $522.8 million and U.S. GAAP net diluted earnings per share was $1.32.
For the fourth quarter of fiscal year 2016, core operating income (as defined below) was $108.3 million and core diluted earnings per share (as defined below) was $0.28. For fiscal year 2016, core operating income was $630.3 million and core diluted earnings per share was $1.86.
“Our fiscal 2016 was characterized by a blend of exceptional performance, significant variability, excellent cost control and wonderful customer care,” said CEO Mark Mondello. “I couldn’t be more pleased with our team in terms of effort and commitment, as they did a brilliant job of controlling what they could control during the year,” he added.
First Quarter of Fiscal Year 2017 Guidance: | ||
| -- Net revenue | $4.8 billion to $5.0 billion | |
| -- U.S. GAAP operating income | $82 million to $152 million | |
| -- U.S. GAAP net diluted earnings per share | $0.05 to $0.36 per diluted share | |
| -- Core operating income | $175 million to $225 million | |
| -- Core diluted earnings per share | $0.54 to $0.74 per diluted share | |
| -- Diversified Manufacturing Services | Decrease net revenue 12 percent year-on-year | |
| -- Electronics Manufacturing Services | Consistent net revenue year-on-year | |
| -- Total Company | Decrease net revenue 6 percent year-on-year | |
“In fiscal 2017, we’ll continue to deliver upon our recently communicated capital return framework, ensure our global operations are efficiently managed to support our customers and continue to aggressively grow key areas of our business,” added Mondello.
(U.S. GAAP net diluted earnings per share for the first quarter of fiscal year 2017 are currently estimated to include $0.04 per share for amortization of intangibles, $0.13 per share for stock-based compensation expense and related charges and $0.32 to $0.21 per share for restructuring and related charges.)
Restructuring Alignment Plan
In addition, Jabil announced its intention to realign the Company’s global capacity and administrative support infrastructure in order to optimize organizational effectiveness in a more moderate growth environment. The company estimates that the realignment shall result in approximately $195 million in total charges over a two year period. It is currently estimated that $120 million to $150 million will be recorded in fiscal year 2017 and the balance during fiscal year 2018. Jabil estimates that the cash component of these actions is $50 million of which $25 million will be incurred in fiscal year 2017.
Definitions: “U.S. GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. 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 U.S. 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 (loss) 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 U.S. GAAP. Jabil calculates its quarterly 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 of its net invested capital base. Jabil calculates its annual core return on invested capital by taking its after-tax core operating income for its most recently ended fiscal year and dividing that by a two year average of its 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 U.S. GAAP operating income, its calculation of core earnings and core diluted earnings per share to its U.S. GAAP net income and U.S. GAAP earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)
Forward looking statements: This news release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter of fiscal year 2016 and our full fiscal year 2016; and our positioning for future financial performance in our fiscal year 2017 (including, net revenue, segment net revenue, U.S. GAAP operating income, U.S. GAAP net diluted earnings per share, core operating income, net interest expense, core tax rate, and core diluted earnings per share results and the components thereof, in each case for our first quarter of fiscal year 2017). 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 from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our fourth quarter of fiscal year 2016 and our full fiscal year 2016 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; unexpected, adverse seasonal impacts on demand; performance in the markets in which we operate; changes in macroeconomic conditions; the occurrence of, success and expected financial results from, product ramps; our ability to maintain and improve costs, quality and delivery for our customers; whether our restructuring activities and the realignment of our capacity will adversely affect our cost structure, ability to service customers and labor relations; 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; and our dependence on a limited number of large customers. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2015, subsequent Reports on Forms 10-Q and 8-K and our other securities filings. We assume no obligation to update these forward-looking statements.
Supplemental Information: The financial results disclosed in this release include certain measures calculated and presented in accordance with U.S. GAAP. In addition to the U.S. GAAP financial measures, Jabil provides supplemental, non-U.S. GAAP financial measures to facilitate evaluation of Jabil’s core operating performance. The non-U.S. GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable U.S. GAAP measures. The non-U.S. GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-U.S. 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 (loss) 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. Among other uses, management uses non-U.S. GAAP financial measures to make operating decisions, assess business performance and as a factor in determining certain employee performance when determining incentive compensation. 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 U.S. GAAP financial measures.
Company Conference Call Information: Jabil will hold a conference call to discuss its earnings for the fourth quarter and full fiscal year, ended August 31, 2016, today at 4:30 p.m. ET live on the Internet at http://www.jabil.com. The call will be recorded and archived on the web at http://www.jabil.com. A taped replay of the conference call will also be available September 21, 2016 at approximately 7:30 p.m. ET through midnight on September 28, 2016. 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: 66720175. An archived webcast of the conference call will be available at http://www.jabil.com/investors/.
About Jabil
Jabil is a product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 28 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.
| JABIL CIRCUIT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||
| August 31, | ||||||||||||||||||||||||||||||||||||||
2016 | August 31, | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | 2015 | |||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||
| Current assets: | ||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 912,059 | $ | 913,963 | ||||||||||||||||||||||||||||||||||
| Accounts receivable, net | 1,359,610 | 1,467,247 | ||||||||||||||||||||||||||||||||||||
| Inventories | 2,456,612 | 2,507,264 | ||||||||||||||||||||||||||||||||||||
| Prepaid expenses and other current assets | 1,120,100 | 898,790 | ||||||||||||||||||||||||||||||||||||
| Deferred income taxes | ― | 79,045 | ||||||||||||||||||||||||||||||||||||
| Total current assets | 5,848,381 | 5,866,309 | ||||||||||||||||||||||||||||||||||||
| Property, plant and equipment, net | 3,331,879 | 2,804,333 | ||||||||||||||||||||||||||||||||||||
| Goodwill and intangible assets, net | 891,727 | 745,918 | ||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 148,859 | 85,169 | ||||||||||||||||||||||||||||||||||||
Other assets | 101,831 | 89,871 | ||||||||||||||||||||||||||||||||||||
| Total assets | $ | 10,322,677 | $ | 9,591,600 | ||||||||||||||||||||||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||||||||||||||||||||
| Current installments of notes payable, long-term debt and capital lease obligations | $ | 45,810 | $ | 322,966 | ||||||||||||||||||||||||||||||||||
| Accounts payable | 3,593,195 | 3,663,264 | ||||||||||||||||||||||||||||||||||||
| Accrued expenses | 1,929,051 | 1,685,589 | ||||||||||||||||||||||||||||||||||||
| Deferred income taxes | ― | 2,455 | ||||||||||||||||||||||||||||||||||||
| Total current liabilities | 5,568,056 | 5,674,274 | ||||||||||||||||||||||||||||||||||||
| Notes payable, long-term debt and capital lease obligations, less current installments | 2,074,012 | 1,335,818 | ||||||||||||||||||||||||||||||||||||
| Other liabilities | 78,018 | 67,951 | ||||||||||||||||||||||||||||||||||||
| Income tax liabilities | 90,804 | 96,379 | ||||||||||||||||||||||||||||||||||||
| Deferred income taxes | 54,290 | 82,167 | ||||||||||||||||||||||||||||||||||||
| Total liabilities | 7,865,180 | 7,256,589 | ||||||||||||||||||||||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||||||||||||||||||||
| Equity: | ||||||||||||||||||||||||||||||||||||||
| Jabil Circuit, Inc. stockholders’ equity: | ||||||||||||||||||||||||||||||||||||||
| Preferred stock | ― | ― | ||||||||||||||||||||||||||||||||||||
| Common stock | 250 | 247 | ||||||||||||||||||||||||||||||||||||
| Additional paid-in capital | 2,034,525 | 1,955,104 | ||||||||||||||||||||||||||||||||||||
| Retained earnings | 1,660,820 | 1,468,910 | ||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (39,877 | ) | (50,854 | ) | ||||||||||||||||||||||||||||||||||
| Treasury stock, at cost | (1,217,547 | ) | (1,058,551 | ) | ||||||||||||||||||||||||||||||||||
| Total Jabil Circuit, Inc. stockholders’ equity | 2,438,171 | 2,314,856 | ||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | 19,326 | 20,155 | ||||||||||||||||||||||||||||||||||||
| Total equity | 2,457,497 | 2,335,011 | ||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 10,322,677 | $ | 9,591,600 | ||||||||||||||||||||||||||||||||||
| JABIL CIRCUIT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||
| (in thousands, except for per share data) | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three months ended | Fiscal year ended | |||||||||||||||||||||||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | |||||||||||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||
| Net revenue | $ | 4,430,763 | $ | 4,680,813 | $ | 18,353,086 | $ | 17,899,196 | ||||||||||||||||||||||||||||||
| Cost of revenue | 4,107,114 | 4,304,239 | 16,825,382 | 16,395,978 | ||||||||||||||||||||||||||||||||||
| Gross profit | 323,649 | 376,574 | 1,527,704 | 1,503,218 | ||||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative | 208,334 | 209,465 | 924,427 | 862,647 | ||||||||||||||||||||||||||||||||||
| Research and development | 7,521 | 8,142 | 31,954 | 27,645 | ||||||||||||||||||||||||||||||||||
| Amortization of intangibles | 10,971 | 7,352 | 37,121 | 24,449 | ||||||||||||||||||||||||||||||||||
| Restructuring and related charges | 3,020 | 1,232 | 11,369 | 33,066 | ||||||||||||||||||||||||||||||||||
| Operating income | 93,803 | 150,383 | 522,833 | 555,411 | ||||||||||||||||||||||||||||||||||
| Interest and other, net | 33,586 | 29,095 | 135,788 | 123,765 | ||||||||||||||||||||||||||||||||||
| Income from continuing operations before tax | 60,217 | 121,288 | 387,045 | 431,646 | ||||||||||||||||||||||||||||||||||
| Income tax expense | 21,510 | 30,276 | 132,149 | 137,461 | ||||||||||||||||||||||||||||||||||
| Income from continuing operations, net of tax | 38,707 | 91,012 | 254,896 | 294,185 | ||||||||||||||||||||||||||||||||||
| Discontinued operations: | ||||||||||||||||||||||||||||||||||||||
| Loss from discontinued operations, net of tax | ― | (2,473 | ) | ― | (7,698 | ) | ||||||||||||||||||||||||||||||||
| Loss on sale of discontinued operations, net of tax | ― | ― | ― | (875 | ) | |||||||||||||||||||||||||||||||||
| Discontinued operations, net of tax | ― | (2,473 | ) | ― | (8,573 | ) | ||||||||||||||||||||||||||||||||
| Net income | 38,707 | 88,539 | 254,896 | 285,612 | ||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests, net of tax | 642 | 837 | 801 | 1,593 | ||||||||||||||||||||||||||||||||||
| Net income attributable to Jabil Circuit, Inc. | $ | 38,065 | $ | 87,702 | $ | 254,095 | $ | 284,019 | ||||||||||||||||||||||||||||||
| Earnings per share attributable to the stockholders of Jabil | ||||||||||||||||||||||||||||||||||||||
| Circuit, Inc.: | ||||||||||||||||||||||||||||||||||||||
| Basic: | ||||||||||||||||||||||||||||||||||||||
| Income from continuing operations, net of tax | $ | 0.20 | $ | 0.47 | $ | 1.33 | $ | 1.51 | ||||||||||||||||||||||||||||||
| Discontinued operations, net of tax | $ | 0.00 | $ | (0.01 | ) | $ | 0.00 | $ | (0.04 | ) | ||||||||||||||||||||||||||||
| Net income | $ | 0.20 | $ | 0.45 | $ | 1.33 | $ | 1.47 | ||||||||||||||||||||||||||||||
| Diluted: | ||||||||||||||||||||||||||||||||||||||
| Income from continuing operations, net of tax | $ | 0.20 | $ | 0.46 | $ | 1.32 | $ | 1.49 | ||||||||||||||||||||||||||||||
| Discontinued operations, net of tax | $ | 0.00 | $ | (0.01 | ) | $ | 0.00 | $ | (0.04 | ) | ||||||||||||||||||||||||||||
| Net income | $ | 0.20 | $ | 0.45 | $ | 1.32 | $ | 1.45 | ||||||||||||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||
| Basic | 189,139 | 193,904 | 190,413 | 193,689 | ||||||||||||||||||||||||||||||||||
| Diluted | 191,602 | 196,351 | 192,750 | 196,005 | ||||||||||||||||||||||||||||||||||
| JABIL CIRCUIT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Fiscal year ended | ||||||||||||||||||||||||||||||||||||||
| August 31, | August 31, | |||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||
| Net income | $ | 254,896 | $ | 285,612 | ||||||||||||||||||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 696,752 | 529,176 | ||||||||||||||||||||||||||||||||||||
| Restructuring and related charges | 1,170 | 4,445 | ||||||||||||||||||||||||||||||||||||
| Provision for allowance for doubtful accounts | 919 | 9,752 | ||||||||||||||||||||||||||||||||||||
| Recognition of stock-based compensation expense and related charges | 58,997 | 62,560 | ||||||||||||||||||||||||||||||||||||
| Deferred income taxes | (23,155 | ) | (10,912 | ) | ||||||||||||||||||||||||||||||||||
| Loss on sale of property, plant and equipment | 12,921 | 12,316 | ||||||||||||||||||||||||||||||||||||
| Other, net | 8,448 | 659 | ||||||||||||||||||||||||||||||||||||
| Change in operating assets and liabilities, exclusive of net assets acquired: | ||||||||||||||||||||||||||||||||||||||
| Accounts receivable | 122,115 | (292,706 | ) | |||||||||||||||||||||||||||||||||||
| Inventories | 67,966 | (483,071 | ) | |||||||||||||||||||||||||||||||||||
| Prepaid expenses and other current assets | (194,337 | ) | 113,012 | |||||||||||||||||||||||||||||||||||
| Other assets | (4,425 | ) | 25,034 | |||||||||||||||||||||||||||||||||||
| Accounts payable, accrued expenses and other liabilities | (86,060 | ) | 984,651 | |||||||||||||||||||||||||||||||||||
| Net cash provided by operating activities | 916,207 | 1,240,528 | ||||||||||||||||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||
| Cash paid for business and intangible asset acquisitions, net of cash | (242,143 | ) | (177,632 | ) | ||||||||||||||||||||||||||||||||||
| Proceeds from sale of discontinued operations, net of cash | ― | 10,191 | ||||||||||||||||||||||||||||||||||||
| Acquisition of property, plant and equipment | (924,239 | ) | (963,145 | ) | ||||||||||||||||||||||||||||||||||
| Proceeds from sale of property, plant and equipment | 26,031 | 15,784 | ||||||||||||||||||||||||||||||||||||
| Issuance of notes receivable | (29,380 | ) | ― | |||||||||||||||||||||||||||||||||||
| Investments in non-marketable equity securities | (10,250 | ) | (11,939 | ) | ||||||||||||||||||||||||||||||||||
| Other, net | ― | 5,294 | ||||||||||||||||||||||||||||||||||||
| Net cash used in investing activities | (1,179,981 | ) | (1,121,447 | ) | ||||||||||||||||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||
| Borrowings under debt agreements | 6,904,215 | 5,966,937 | ||||||||||||||||||||||||||||||||||||
| Payments toward debt agreements | (6,445,922 | ) | (5,988,232 | ) | ||||||||||||||||||||||||||||||||||
| Payments to acquire treasury stock | (148,340 | ) | (85,576 | ) | ||||||||||||||||||||||||||||||||||
| Dividends paid to stockholders | (62,436 | ) | (63,138 | ) | ||||||||||||||||||||||||||||||||||
| Net proceeds from exercise of stock options and issuance of common stock | ||||||||||||||||||||||||||||||||||||||
| under employee stock purchase plan | 20,910 | 18,062 | ||||||||||||||||||||||||||||||||||||
| Treasury stock minimum tax withholding related to vesting of restricted stock | (10,656 | ) | (7,606 | ) | ||||||||||||||||||||||||||||||||||
| Other, net | (4,259 | ) | (3,242 | ) | ||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | 253,512 | (162,795 | ) | |||||||||||||||||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 8,358 | (42,572 | ) | |||||||||||||||||||||||||||||||||||
| Net decrease in cash and cash equivalents | (1,904 | ) | (86,286 | ) | ||||||||||||||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 913,963 | 1,000,249 | ||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 912,059 | $ | 913,963 | ||||||||||||||||||||||||||||||||||
| JABIL CIRCUIT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-U.S. GAAP MEASURES | ||||||||||||||||||||||||||||||||||||||
| (in thousands, except for per share data) | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three months ended | Fiscal year ended | |||||||||||||||||||||||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | |||||||||||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||
| Operating income (U.S. GAAP) | $ | 93,803 | $ | 150,383 | $ | 522,833 | $ | 555,411 | ||||||||||||||||||||||||||||||
| Amortization of intangibles | 10,971 | 7,352 | 37,121 | 24,449 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation expense and related charges | 492 | 9,459 | 58,997 | 62,563 | ||||||||||||||||||||||||||||||||||
| Restructuring and related charges | 3,020 | 1,232 | 11,369 | 33,066 | ||||||||||||||||||||||||||||||||||
| Acquisition costs and certain purchase accounting adjustments | ― | (5,480 | ) | ― | (5,480 | ) | ||||||||||||||||||||||||||||||||
| Core operating income (Non-U.S. GAAP) | $ | 108,286 | $ | 162,946 | $ | 630,320 | $ | 670,009 | ||||||||||||||||||||||||||||||
| Net income attributable to Jabil Circuit, Inc. (U.S. GAAP) | $ | 38,065 | $ | 87,702 | $ | 254,095 | $ | 284,019 | ||||||||||||||||||||||||||||||
| Amortization of intangibles, net of tax | 11,551 | 7,032 | 35,617 | 23,925 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation expense and related | ||||||||||||||||||||||||||||||||||||||
| charges, net of tax | 268 | 10,443 | 58,006 | 62,914 | ||||||||||||||||||||||||||||||||||
| Restructuring and related charges, net of tax | 3,025 | 1,048 | 11,381 | 32,219 | ||||||||||||||||||||||||||||||||||
| Acquisition costs and certain purchase accounting | ||||||||||||||||||||||||||||||||||||||
| adjustments, net of tax | ― | (5,480 | ) | ― | (5,480 | ) | ||||||||||||||||||||||||||||||||
| Loss from discontinued operations, net of tax | ― | 2,473 | ― | 7,698 | ||||||||||||||||||||||||||||||||||
| Loss on sale of discontinued operations, net of tax | ― | ― | ― | 875 | ||||||||||||||||||||||||||||||||||
| Core earnings (Non-U.S. GAAP) | $ | 52,909 | $ | 103,218 | $ | 359,099 | $ | 406,170 | ||||||||||||||||||||||||||||||
| Net earnings per share (U.S. GAAP): | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.20 | $ | 0.45 | $ | 1.33 | $ | 1.47 | ||||||||||||||||||||||||||||||
| Diluted | $ | 0.20 | $ | 0.45 | $ | 1.32 | $ | 1.45 | ||||||||||||||||||||||||||||||
| Core earnings per share (Non-U.S. GAAP): | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.28 | $ | 0.53 | $ | 1.89 | $ | 2.10 | ||||||||||||||||||||||||||||||
| Diluted | $ | 0.28 | $ | 0.53 | $ | 1.86 | $ | 2.07 | ||||||||||||||||||||||||||||||
| Weighted average shares outstanding used in the calculations | ||||||||||||||||||||||||||||||||||||||
| of earnings per share (U.S. GAAP and Non-U.S. GAAP): | ||||||||||||||||||||||||||||||||||||||
| Basic | 189,139 | 193,904 | 190,413 | 193,689 | ||||||||||||||||||||||||||||||||||
| Diluted | 191,602 | 196,351 | 192,750 | 196,005 | ||||||||||||||||||||||||||||||||||
| JABIL CIRCUIT, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-U.S. 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 U.S. GAAP operating income" | ||||||||||||||||||||||||||||||||||||||
| for its most recently-ended quarter and dividing that by the average of its "net invested capital asset base" and (2) | ||||||||||||||||||||||||||||||||||||||
| its "Core Return on Invested Capital" by annualizing its "after-tax non-U.S. GAAP core operating income" for its most | ||||||||||||||||||||||||||||||||||||||
| recently-ended quarter and dividing that by the “average net invested capital asset base." | ||||||||||||||||||||||||||||||||||||||
| The Company calculates: (1) its "after-tax U.S. GAAP operating income" by subtracting a certain tax effect (the | ||||||||||||||||||||||||||||||||||||||
| calculation of which is explained below) from its U.S. GAAP operating income and (2) its "after-tax non-U.S. GAAP | ||||||||||||||||||||||||||||||||||||||
| core operating income" as its non-U.S. 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-U.S. GAAP core | ||||||||||||||||||||||||||||||||||||||
| operating income to its U.S. 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 U.S. GAAP operating | ||||||||||||||||||||||||||||||||||||||
| income" to (2) "Core Return on Invested Capital," as calculated using "after-tax non-U.S. GAAP core operating | ||||||||||||||||||||||||||||||||||||||
| income": | ||||||||||||||||||||||||||||||||||||||
| Three months | Twelve months | |||||||||||||||||||||||||||||||||||||
| ended | ended | |||||||||||||||||||||||||||||||||||||
| August 31, | August 31, | |||||||||||||||||||||||||||||||||||||
| 2016 | 2016 | |||||||||||||||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||||||||||||||
| Operating income (U.S. GAAP) | $ | 93,803 | $ | 522,833 | ||||||||||||||||||||||||||||||||||
| Tax effect(1) | (21,352 | ) | (131,893 | ) | ||||||||||||||||||||||||||||||||||
| After-tax operating income | 72,451 | 390,940 | ||||||||||||||||||||||||||||||||||||
| x4 | x1 | |||||||||||||||||||||||||||||||||||||
| Annualized after-tax operating income | $ | 289,804 | $ | 390,940 | ||||||||||||||||||||||||||||||||||
| Core operating income (Non-U.S. GAAP) | $ | 108,286 | $ | 630,320 | ||||||||||||||||||||||||||||||||||
| Tax effect(2) | (21,024 | ) | (134,426 | ) | ||||||||||||||||||||||||||||||||||
| After-tax core operating income | 87,262 | 495,894 | ||||||||||||||||||||||||||||||||||||
| x4 | x1 | |||||||||||||||||||||||||||||||||||||
| Annualized after-tax core operating income | $ | 349,048 | $ | 495,894 | ||||||||||||||||||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||||||||||||||
| Average total Jabil Circuit, Inc. stockholders’ equity(3) | $ | 2,465,311 | $ | 2,376,513 | ||||||||||||||||||||||||||||||||||
| Average notes payable, long-term debt and capital lease obligations, less | ||||||||||||||||||||||||||||||||||||||
| current installments(3) | 1,932,520 | 1,704,915 | ||||||||||||||||||||||||||||||||||||
| Average current installments of notes payable, long-term debt and capital | ||||||||||||||||||||||||||||||||||||||
| lease obligations(3) | 202,847 | 184,388 | ||||||||||||||||||||||||||||||||||||
| Average cash and cash equivalents(3) | (899,525 | ) | (913,011 | ) | ||||||||||||||||||||||||||||||||||
| Net invested capital asset base | $ | 3,701,153 | $ | 3,352,805 | ||||||||||||||||||||||||||||||||||
| Return on Invested Capital (U.S. GAAP) | 7.8 | % | 11.7 | % | ||||||||||||||||||||||||||||||||||
| Adjustments noted above | 1.6 | % | 3.1 | % | ||||||||||||||||||||||||||||||||||
| Core Return on Invested Capital (Non-U.S. GAAP) | 9.4 | % | 14.8 | % | ||||||||||||||||||||||||||||||||||
__________
(1) This amount is calculated by adding the amount of income taxes attributable to its operating income (U.S. GAAP) and its interest expense.
(2) This amount is calculated by adding the amount of income taxes attributable to its core operating income (Non-U.S. GAAP) and its interest expense.
(3) The average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter for the three months ended August 31, 2016 and dividing by two. The average is based on the addition of the account balance at the end of the most recently-ended fiscal year to the account balance at the end of the prior fiscal year for the twelve months ended August 31, 2016 and dividing by two.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160921006493/en/
Contacts:
Beth Walters, 727-803-3511
Senior Vice
President, Investor Relations & Communications
beth_walters@jabil.com
or
Adam
Berry, 727-803-5772
Senior Director, Investor Relations
adam_berry@jabil.com
