ST. PETERSBURG, Fla.--(BUSINESS WIRE)--March 16, 2000--Jabil
Circuit, Inc. (NYSE:JBL), electronics manufacturer to the world
market for circuit board assemblies and services, today reported
record revenue for the second fiscal quarter of 2000, ended
February 29, 2000. Revenue for the quarter increased 50 percent to
$837.6 million compared to $ 558.7 million for the same period of
fiscal 1999.
Jabil's second quarter of fiscal 2000 net income increased
52 percent to $33.9 million or $0.37 per diluted share compared with
$22.3 million or $0.27 per diluted share for the second quarter of
fiscal 1999.
Gross profit for fiscal 2000 second quarter increased 40 percent
to $84.1 million or 10 percent of revenue compared to $60.1 million or
10.8 percent of revenue for the corresponding quarter of fiscal 1999.
Operating income for the second fiscal quarter of 2000 increased
41 percent to $ 50.6 million or 6 percent of revenue compared to
$35.9 million or 6.4 percent of revenue for the second fiscal quarter
of 1999.
Revenues for the first six months of fiscal year 2000 increased
45 percent to $1.5 billion, compared to $1.1 billion for the same time
period of fiscal 1999. Net income for the first six months of fiscal
2000 increased 54 percent to $ 65.1 million, compared with
$42.3 million last fiscal year. Diluted earnings per share for the
first six months of fiscal 2000 increased 39 percent to $0.71 compared
to $0.51 for the same period of fiscal 1999. This excludes the impact
of an acquisition-related charge of approximately $5 million, or
$0.05 EPS recorded in the first fiscal quarter of 2000.
The Company announced a stock split in the form of a 100 percent
stock dividend. The record date for the stock split will be March 23,
2000 with distribution of the split shares on March 30, 2000. Jabil
Circuit shares will begin trading on a split basis at the opening of
the market on March 31, 2000. The stock dividend will increase the
number of Common Stock shares outstanding from approximately
92.3 million shares to approximately 184.6 million shares.
Income Statement -- Sequential Trend Highlights
-- Revenue in the second fiscal quarter increased by 21 percent from
the first quarter, reflecting solid production levels in most
business segments.
-- Gross margin was 10 percent of revenue for the quarter,
reflecting an increase in production with a more
materials-intensive mix.
-- Operating income increased sequentially by 14 percent to $50.6
million, or 6.0 percent of revenue. Operating results represent a
cumulative operating income growth of 29 percent in the first six
months of the fiscal year - nearly attaining the company's annual
goal of 30 percent in just two quarters. Growth of operating
income is Jabil's key financial objective. This excludes the
impact of an acquisition-related charge of approximately $5
million, or $0.05 EPS recorded in the first fiscal quarter of
2000.
-- Net income after tax was $33.9 million or 4.1 percent of revenue,
as compared to 4.5 percent in the prior sequential quarter. This
excludes the impact of an acquisition-related charge of
approximately $5 million, or $0.05 EPS recorded in the first
fiscal quarter of 2000.
-- Earnings per share for second fiscal quarter of 2000 were $0.37
on an average 92.3 million shares during the period, fully
diluted.
Balance Sheet -- Sequential Trend Highlights
-- Accounts receivable increased by $60 million to $379 million in
the second quarter of fiscal 2000, as compared to $319 million in
the first quarter. Calculated days sales outstanding were 41,
compared to 42 in the first quarter.
-- Inventories increased by $54 million in the second quarter to
$353 million as compared to $299 million as of the end of
November. Calculated inventory turns were 9, an improvement from
8 in the prior quarter.
-- Debt-to-capitalization ratio for the period was 17 percent.
-- Average return on assets for the period was 11.1 percent.
-- Average return on equity for the period was 21.6 percent.
Business Outlook
(NOTE: The following statements are forward looking; actual results
may differ materially.)
Jabil President Tim Main said, "We are very pleased with the
continuing strength of our core business and the performance and
contributions of our employees in a challenging growth environment. In
support of this growth, we will continue to invest in our core
competencies to maintain and improve upon our performance and
fundamental manufacturing execution."
Jabil Circuit, Inc. is an electronic manufacturing services
provider for international electronics companies in the
communications, personal computer, peripheral, consumer and automotive
markets. Jabil offers circuit design, board design from schematic,
mechanical and production design, prototype assembly, volume board
assembly and system assembly services from 12 locations in North and
South America, Europe and Asia.
This release contains certain forward-looking statements, which
are subject to a number of risks and uncertainties. Some factors that
could cause actual results to differ materially include: business
conditions and growth in the contract manufacturing industry and the
general economy; variability of operating results; dependence on a
limited number of customers; limited availability of components;
dependence on certain industries; variability of customer
requirements; and other risk factors described in the company's most
recently filed SEC documents such as the Form 10-K, filed 12/7/99.
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)
Three months ended Six months ended
------------------ -----------------
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2000 1999 2000 1999
-------- -------- --------- ---------
Net revenue $ 837,562 $ 558,703 $1,527,384 $1,053,818
Cost of revenue 753,479 498,601 1,369,914 939,021
-------- -------- --------- ---------
Gross profit 84,083 60,102 157,470 114,797
Operating expenses:
Selling, general and
administrative 31,612 22,452 58,663 43,277
Research and development 1,203 1,432 2,385 2,889
Amortization of intangibles 644 294 1,243 651
Acquisition-related charge - - 5,153 -
-------- -------- -------- --------
Operating income 50,624 35,924 90,026 67,980
Interest income (32) (419) (1,212) (748)
Interest expense 1,474 2,311 2,039 4,240
-------- -------- -------- --------
Income before income taxes 49,182 34,032 89,199 64,488
Income tax expense 15,246 11,778 28,775 22,218
-------- -------- -------- --------
Net income $ 33,936 $ 22,254 $ 60,424 $ 42,270
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per share:
Basic $ 0.39 $ 0.28 $ 0.69 $ 0.53
-------- -------- -------- --------
-------- -------- -------- --------
Diluted $ 0.37 $ 0.27 $ 0.66 $ 0.51
-------- -------- -------- --------
-------- -------- -------- --------
Common shares used in the
calculations of earnings
per share:
Basic 87,857 79,972 87,634 79,831
-------- -------- -------- --------
-------- -------- -------- --------
Diluted 92,257 83,503 91,823 83,140
-------- -------- -------- --------
-------- -------- -------- --------
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
February 29, August 31,
2000 1999
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 56,612 $ 125,949
Short-term investments - 27,176
Accounts receivable - Net 379,223 261,078
Inventories 353,326 217,840
Prepaid expenses and other
current assets 24,129 14,794
Deferred income taxes 14,227 13,896
------------ ------------
Total current assets 827,517 660,733
Property, plant and equipment, net 439,879 353,522
Other assets 40,470 20,786
------------ ------------
$ 1,307,866 $ 1,035,041
------------ ------------
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of long
term debt $ 8,333 $ 9,610
Short-term debt - 21,501
Accounts payable 427,863 300,093
Accrued expenses 59,917 59,186
Income taxes payable 10,863 20,511
------------ ------------
Total current liabilities 506,976 410,901
Long term debt, less current
installments 128,333 34,712
Deferred income taxes 21,232 10,199
Deferred grant revenue 3,443 1,798
------------ ------------
Total liabilities 659,984 457,610
------------ ------------
Stockholders' equity
Common stock 88 87
Additional paid in capital 306,746 296,396
Retained earnings 341,590 281,166
Cumulative translation adjustment (542) (218)
------------ ------------
Total stockholders' equity 647,882 577,431
------------ ------------
$ 1,307,866 $ 1,035,041
------------ ------------
------------ ------------
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--30--gaa/mi*
CONTACT: Jabil Circuit Inc., St. Petersburg
Beth Walters, 727/577-9749
beth_walters @ jabil.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: HARDWARE TELECOMMUNICATIONS SOFTWARE EARNINGS
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