Jabil Posts Fourth Quarter & Fiscal Year 2017 Results
For the fourth quarter of fiscal year 2017, U.S. GAAP (as defined below)
operating income was
For the fourth quarter of fiscal year 2017, core operating income
((Non-U.S. GAAP) as defined below) was
“I’m very pleased with our team’s performance throughout the fiscal
year,” said CEO
Fiscal Year 2017 Highlights:
- Net revenue growth: 4 percent
- Core diluted earnings per share (Non-U.S. GAAP) growth: 13 percent
-
Cash flow from operations:
$1.26 Billion
“Looking ahead, we expect continued revenue and core EPS growth in both
the first quarter and fiscal 2018. The success of our
capabilities-driven strategy is allowing for continued share gains and
enhanced diversification across the enterprise. As a result, our plan to
deliver core EPS of
First Quarter of Fiscal Year 2018 Guidance: |
||||
-- Net revenue | $5.25 billion to $5.75 billion | |||
-- U.S. GAAP operating income | $111 million to $182 million | |||
-- U.S. GAAP diluted earnings per share | $0.17 to $0.49 per diluted share | |||
-- Core operating income (Non-U.S. GAAP) | $198 million to $258 million | |||
-- Core diluted earnings per share (Non-U.S. GAAP ) | $0.65 to $0.91 per diluted share | |||
-- Diversified Manufacturing Services | Increase revenue 13 percent year-on-year | |||
-- Electronics Manufacturing Services | Increase revenue 3 percent year-on-year | |||
-- Total company | Increase revenue 8 percent year-on-year |
(U.S. GAAP diluted earnings per share for the first quarter of fiscal
year 2018 are currently estimated to include
(Definitions: “U.S. GAAP” means U.S. generally accepted
accounting principles.
Forward Looking Statements: This news release contains
forward-looking statements, including those regarding our anticipated
financial results for our fourth quarter of fiscal year 2017 and full
fiscal year 2017; our guidance for future financial performance in our
first quarter of fiscal year 2018 (including, net revenue, total company
and segment revenue, U.S. GAAP operating income, U.S. GAAP diluted
earnings (loss) per share, core operating income (Non-U.S. GAAP), and
core diluted earnings per share (Non-U.S. GAAP) results and the
components thereof, in each case for our first quarter of fiscal year
2018); and statements regarding our future earnings per share
expectations. The statements in this press 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 2017 and our full fiscal year 2017
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
Supplemental Information Regarding Non-U.S. GAAP Financial Measures:
Company Conference Call Information:
About
JABIL INC. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(in thousands) | ||||||||||
August 31, | ||||||||||
2017 | August 31, | |||||||||
(Unaudited) | 2016 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 1,189,919 | $ | 912,059 | ||||||
Accounts receivable, net | 1,397,424 | 1,359,610 | ||||||||
Inventories | 2,942,083 | 2,456,612 | ||||||||
Prepaid expenses and other current assets | 1,097,257 | 1,120,100 | ||||||||
Total current assets | 6,626,683 | 5,848,381 | ||||||||
Property, plant and equipment, net | 3,228,678 | 3,331,879 | ||||||||
Goodwill and intangible assets, net | 892,780 | 891,727 | ||||||||
Deferred income taxes | 205,722 | 148,859 | ||||||||
Other assets | 142,132 | 101,831 | ||||||||
Total assets | $ | 11,095,995 | $ | 10,322,677 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities: | ||||||||||
Current installments of notes payable, long-term debt and capital lease obligations | $ | 445,498 | $ | 45,810 | ||||||
Accounts payable | 4,257,623 | 3,593,195 | ||||||||
Accrued expenses | 2,167,472 | 1,929,051 | ||||||||
Total current liabilities | 6,870,593 | 5,568,056 | ||||||||
Notes payable, long-term debt and capital lease obligations, less current installments | 1,632,592 | 2,074,012 | ||||||||
Other liabilities | 74,237 | 78,018 | ||||||||
Income tax liabilities | 100,902 | 90,804 | ||||||||
Deferred income taxes | 49,327 | 54,290 | ||||||||
Total liabilities | 8,727,651 | 7,865,180 | ||||||||
Commitments and contingencies | ||||||||||
Equity: | ||||||||||
Jabil Inc. stockholders’ equity: | ||||||||||
Preferred stock | ― | ― | ||||||||
Common stock | 253 | 250 | ||||||||
Additional paid-in capital | 2,104,203 | 2,034,525 | ||||||||
Retained earnings | 1,730,893 | 1,660,820 | ||||||||
Accumulated other comprehensive income (loss) | 54,620 | (39,877 | ) | |||||||
Treasury stock, at cost | (1,536,455 | ) | (1,217,547 | ) | ||||||
Total Jabil Inc. stockholders’ equity | 2,353,514 | 2,438,171 | ||||||||
Noncontrolling interests | 14,830 | 19,326 | ||||||||
Total equity | 2,368,344 | 2,457,497 | ||||||||
Total liabilities and equity | $ | 11,095,995 | $ | 10,322,677 | ||||||
JABIL 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, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Net revenue | $ | 5,023,029 | $ | 4,430,763 | $ | 19,063,121 | $ | 18,353,086 | |||||||||
Cost of revenue | 4,597,211 | 4,107,114 | 17,517,478 | 16,825,382 | |||||||||||||
Gross profit | 425,818 | 323,649 | 1,545,643 | 1,527,704 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, general and administrative | 241,823 | 208,334 | 907,702 | 924,427 | |||||||||||||
Research and development | 7,698 | 7,521 | 29,680 | 31,954 | |||||||||||||
Amortization of intangibles | 9,262 | 10,971 | 35,524 | 37,121 | |||||||||||||
Restructuring and related charges | 46,866 | 3,020 | 160,395 | 11,369 | |||||||||||||
Loss on disposal of subsidiaries | 2,112 | ― | 2,112 | ― | |||||||||||||
Operating income | 118,057 | 93,803 | 410,230 | 522,833 | |||||||||||||
Interest and other, net | 36,445 | 33,586 | 153,997 | 135,788 | |||||||||||||
Income before income tax | 81,612 | 60,217 | 256,233 | 387,045 | |||||||||||||
Income tax expense | 35,571 | 21,510 | 129,066 | 132,149 | |||||||||||||
Net income | 46,041 | 38,707 | 127,167 | 254,896 | |||||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 362 | 642 | (1,923 | ) | 801 | ||||||||||||
Net income attributable to Jabil Inc. | $ | 45,679 | $ | 38,065 | $ | 129,090 | $ | 254,095 | |||||||||
Earnings per share attributable to the stockholders of Jabil Inc.: | |||||||||||||||||
Basic | $ | 0.26 | $ | 0.20 | $ | 0.71 | $ | 1.33 | |||||||||
Diluted | $ | 0.25 | $ | 0.20 | $ | 0.69 | $ | 1.32 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 178,697 | 189,139 | 181,902 | 190,413 | |||||||||||||
Diluted | 182,977 | 191,602 | 185,838 | 192,750 | |||||||||||||
JABIL INC. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(in thousands) | ||||||||||
(Unaudited) | ||||||||||
Fiscal year ended | ||||||||||
August 31, | August 31, | |||||||||
2017 | 2016 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 127,167 | $ | 254,896 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 760,405 | 696,752 | ||||||||
Restructuring and related charges | 94,346 | 1,170 | ||||||||
Provision for allowance for doubtful accounts | 10,112 | 919 | ||||||||
Recognition of stock-based compensation expense and related charges | 48,544 | 58,997 | ||||||||
Deferred income taxes | (63,001 | ) | (23,155 | ) | ||||||
Loss on sale of property, plant and equipment | 1,989 | 12,921 | ||||||||
Other, net | 20,120 | 8,448 | ||||||||
Change in operating assets and liabilities, exclusive of net assets acquired: | ||||||||||
Accounts receivable | (31,353 | ) | 122,115 | |||||||
Inventories | (445,089 | ) | 67,966 | |||||||
Prepaid expenses and other current assets | 19,346 | (194,337 | ) | |||||||
Other assets | (30,413 | ) | (4,425 | ) | ||||||
Accounts payable, accrued expenses and other liabilities | 744,470 | (86,060 | ) | |||||||
Net cash provided by operating activities | 1,256,643 | 916,207 | ||||||||
Cash flows from investing activities: | ||||||||||
Acquisition of property, plant and equipment | (716,485 | ) | (924,239 | ) | ||||||
Proceeds from sale of property, plant and equipment | 175,000 | 26,031 | ||||||||
Cash paid for business and intangible asset acquisitions, net of cash | (36,620 | ) | (242,143 | ) | ||||||
Issuance of notes receivable | ― | (29,380 | ) | |||||||
Investments in non-marketable equity securities | (2,033 | ) | (10,250 | ) | ||||||
Other, net | 673 | ― | ||||||||
Net cash used in investing activities | (579,465 | ) | (1,179,981 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Borrowings under debt agreements | 7,434,107 | 6,904,215 | ||||||||
Payments toward debt agreements | (7,479,150 | ) | (6,445,922 | ) | ||||||
Payments to acquire treasury stock | (306,640 | ) | (148,340 | ) | ||||||
Dividends paid to stockholders | (59,959 | ) | (62,436 | ) | ||||||
Net proceeds from exercise of stock options and issuance of common stock | ||||||||||
under employee stock purchase plan | 21,791 | 20,910 | ||||||||
Treasury stock minimum tax withholding related to vesting of restricted stock | (12,268 | ) | (10,656 | ) | ||||||
Other, net | (2,427 | ) | (4,259 | ) | ||||||
Net cash (used in) provided by financing activities | (404,546 | ) | 253,512 | |||||||
Effect of exchange rate changes on cash and cash equivalents | 5,228 | 8,358 | ||||||||
Net increase (decrease) in cash and cash equivalents | 277,860 | (1,904 | ) | |||||||
Cash and cash equivalents at beginning of period | 912,059 | 913,963 | ||||||||
Cash and cash equivalents at end of period | $ | 1,189,919 | $ | 912,059 | ||||||
JABIL 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, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Operating income (U.S. GAAP) | $ | 118,057 | $ | 93,803 | $ | 410,230 | $ | 522,833 | |||||||||||
Amortization of intangibles | 9,262 | 10,971 | 35,524 | 37,121 | |||||||||||||||
Stock-based compensation expense and related charges | 15,167 | 492 | 48,544 | 58,997 | |||||||||||||||
Restructuring and related charges | 46,866 | 3,020 | 160,395 | 11,369 | |||||||||||||||
Distressed customer charges | ― | ― | 10,198 | ― | |||||||||||||||
Loss on disposal of subsidiaries | 2,112 | ― | 2,112 | ― | |||||||||||||||
Core operating income (Non-U.S. GAAP) | $ | 191,464 | $ | 108,286 | $ | 667,003 | $ | 630,320 | |||||||||||
Net income attributable to Jabil Inc. (U.S. GAAP) | $ | 45,679 | $ | 38,065 | $ | 129,090 | $ | 254,095 | |||||||||||
Amortization of intangibles | 9,262 | 10,971 | 35,524 | 37,121 | |||||||||||||||
Stock-based compensation expense and related charges | 15,167 | 492 | 48,544 | 58,997 | |||||||||||||||
Restructuring and related charges | 46,866 | 3,020 | 160,395 | 11,369 | |||||||||||||||
Distressed customer charges | ― | ― | 10,198 | ― | |||||||||||||||
Loss on disposal of subsidiaries | 2,112 | ― | 2,112 | ― | |||||||||||||||
Impairment on securities | ― | ― | 11,539 | ― | |||||||||||||||
Adjustments for taxes | (1,933 | ) | 361 | (4,726 | ) | (2,483 | ) | ||||||||||||
Core earnings (Non-U.S. GAAP) | $ | 117,153 | $ | 52,909 | $ | 392,676 | $ | 359,099 | |||||||||||
Earnings per share (U.S. GAAP): | |||||||||||||||||||
Basic | $ | 0.26 | $ | 0.20 | $ | 0.71 | $ | 1.33 | |||||||||||
Diluted | $ | 0.25 | $ | 0.20 | $ | 0.69 | $ | 1.32 | |||||||||||
Core earnings per share (Non-U.S. GAAP): | |||||||||||||||||||
Basic | $ | 0.66 | $ | 0.28 | $ | 2.16 | $ | 1.89 | |||||||||||
Diluted | $ | 0.64 | $ | 0.28 | $ | 2.11 | $ | 1.86 | |||||||||||
Weighted average shares outstanding used in the calculations | |||||||||||||||||||
of earnings per share (U.S. GAAP and Non-U.S. GAAP): | |||||||||||||||||||
Basic | 178,697 | 189,139 | 181,902 | 190,413 | |||||||||||||||
Diluted | 182,977 | 191,602 | 185,838 | 192,750 | |||||||||||||||
JABIL 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, | |||||||||||
2017 | 2017 | |||||||||||
Numerator: | ||||||||||||
Operating income (U.S. GAAP) | $ | 118,057 | $ | 410,230 | ||||||||
Tax effect(1) | (35,771 | ) | (137,087 | ) | ||||||||
After-tax operating income | 82,286 | 273,143 | ||||||||||
x4 | x1 | |||||||||||
Annualized after-tax operating income | $ | 329,144 | $ | 273,143 | ||||||||
Core operating income (Non-U.S. GAAP) | $ | 191,464 | $ | 667,003 | ||||||||
Tax effect(2) | (37,610 | ) | (134,930 | ) | ||||||||
After-tax core operating income | 153,854 | 532,073 | ||||||||||
x4 | x1 | |||||||||||
Annualized after-tax core operating income | $ | 615,416 | $ | 532,073 | ||||||||
Denominator: | ||||||||||||
Average total Jabil Inc. stockholders’ equity(3) | $ | 2,340,495 | $ | 2,395,843 | ||||||||
Average notes payable, long-term debt and capital lease obligations, less | ||||||||||||
current installments(3) | 1,638,591 | 1,853,302 | ||||||||||
Average current installments of notes payable, long-term debt and capital | ||||||||||||
lease obligations(3) | 492,241 | 245,654 | ||||||||||
Average cash and cash equivalents(3) | (966,925 | ) | (1,050,989 | ) | ||||||||
Net invested capital asset base | $ | 3,504,402 | $ | 3,443,810 | ||||||||
Return on Invested Capital (U.S. GAAP) | 9.4 | % | 7.9 | % | ||||||||
Adjustments noted above | 8.2 | % | 7.6 | % | ||||||||
Core Return on Invested Capital (Non-U.S. GAAP) | 17.6 | % | 15.5 | % | ||||||||
(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, 2017 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, 2017 and dividing by two. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170927006190/en/
Source:
Jabil Circuit, Inc.
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