7/26....FLEX (2-1 payable 9/22)Revenues Up 139% and Cash Net Income Up 148% From a Year Ago
SINGAPORE, July 26 /PRNewswire/ -- Flextronics International Ltd. (Nasdaq: FLEX - news), a world-class electronics manufacturing service provider focused on delivering end to end solutions to its multinational customers, today announced its results for its first quarter ended June 30, 2000.
($ in millions, except EPS) Jun '00 Qtr Jun '99 Qtr Growth
Net sales $2,285.7 $956.4 139%
Operating income (a) $97.1 $44.8 117%
Cash net income (a) $76.5 $30.9 148%
Free cash flow (b) $118.1 $55.3 114%
Diluted cash EPS (a) $0.37 $0.19 95%
(a) Before amortization and one-time charges
(b) Free cash flow represents net income before amortization, depreciation
and one-time charges
First quarter revenue increased 139% from $956 million from a year ago to almost $2.3 billion. Operating profit was $97 million, an increase of 117%, net income before amortization and one-time charges was $77 million, an increase of 148%, and Diluted Cash Earnings Per Share was $0.37, up 95% from a year ago. Free cash flow was $118 million, an increase of 114% from the year ago quarter. Depreciation and amortization was $47 million.
``We are extremely pleased to announce that revenue for Q1 2001 was stronger than expected,'' said Michael Marks, Chairman and Chief Executive Officer of Flextronics International. ``We have experienced rapid growth in all categories and geographies over the past quarter. This is due, in part, to our great customers, our exceptional management team and a lot of exciting new opportunities.'' In conclusion, Marks added: ``We are increasingly optimistic about the strengths of our prospects for the future and as a result, we expect continued growth in revenues and EPS in fiscal 2001.''
Flextronics also separately announced today a two-for-one stock split to be effected in the form of a bonus issue (equivalent to a stock dividend).
Further discussion of the Company's results can be obtained from the Company Web site, flextronics.com.
This news release and Chairman's letter to the Shareholders contain forward-looking statements within the meaning of federal securities laws and is subject to the safe harbor under those laws. These forward-looking statements include statements related to future sales and operating results, anticipated benefits from acquisitions and from new facilities, and company prospects, growth and momentum. These forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements. These risks include the challenges of integrating acquired companies and managing expanding operations, fluctuations in customer requirements, competition in our industry and the other risks described under ``Management Discussion and Analysis of Financial Conditions and Research of Operations - Certain Factors Affecting Future Operating Results'' in the most recent Annual Report on Form 10-K and quarterly report on Form 10-Q, filed with the SEC. The forward-looking statements in this news release and Chairman's letter to the Shareholders are based on current expectations, and Flextronics assumes no obligation to update these forward-looking statements.
Schedule 1
FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
BEFORE AMORTIZATION AND ONE-TIME CHARGES
(In thousands, except per share amounts)
(Unaudited)
Three months ended
June 30, June 30,
2000 1999
Net sales $2,285,732 $956,367
Cost of sales 2,116,467 861,023
Gross profit before one-time charges 169,265 95,344
Selling, general and administrative expenses 72,145 50,549
Operating income before amortization and
one-time charges 97,120 44,795
Interest expense and other, net 10,143 9,516
Income before income taxes, amortization and
one-time charges 86,977 35,279
Provision for income taxes 10,437 4,358
Net income before amortization and
one-time charges $76,540 $30,921
Diluted cash earnings per share $0.37 $0.19
Diluted weighted average ordinary
shares and equivalents 208,760 162,366
Schedule 1a
FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(In thousands, except per share amounts)
(Unaudited)
Three months ended
June 30, June 30,
2000 1999
Net income before amortization and
one-time charges $76,540 $30,921
Goodwill and intangibles amortization, net of tax 4,930 2,919
Merger related costs and other one-time
charges, net of tax (1) 440,673 --
Net income after amortization
and one-time charges $(369,063) $28,002
(1) The Company recorded one-time after-tax charges of $440,673 in the
quarter ended June 30, 2000. These one-time after-tax charges were
comprised of approximately $286,537 related to the issuance of an equity
instrument to Motorola combined with approximately $176,567 related to the
Dii Group and Palo Alto Products mergers which were completed in April
2000, offset by a gain of $22,431 on the sale of marketable equity
securities.
Schedule 2
FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, March 31,
2000 2000
ASSETS
Current assets
Cash and cash equivalents $769,483 $725,647
Accounts receivable, net 1,057,828 861,764
Inventories 1,415,268 992,711
Other current assets 289,680 255,379
Total current assets 3,532,259 2,835,501
Property and equipment, net 1,239,396 1,095,485
Other non-current assets 438,893 394,999
Total non-current assets 1,678,289 1,490,484
TOTAL ASSETS $5,210,548 $4,325,985
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank borrowings $184,951 $380,003
Current portion of capital
lease and long-term debt 17,039 16,528
Accounts payable 1,268,785 1,033,100
Other accrued expenses 348,022 256,376
Total current liabilities 1,818,797 1,686,007
Long-term debt and capital leases,
less current portion 867,680 379,604
Other long-term liabilities 55,879 46,301
Shareholders' equity 2,468,192 2,214,073
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,210,548 $4,325,985
SOURCE: Flextronics International Ltd. |
