Jabil Circuit Reports Quarterly Results
ST. PETERSBURG, Fla., Dec 20, 2001 (BUSINESS WIRE) -- Jabil Circuit, Inc. (NYSE: JBL chart, msgs), electronics
manufacturing services provider, today reported revenue for the first quarter of fiscal 2002, ended November 30, 2001.
Revenue for the quarter was $885 million compared to $1.1 billion for the same period of fiscal 2001.
Jabil's first quarter of fiscal 2002 net income (excluding amortization of intangibles and non-recurring charges) was
$22.1 million, compared with $48.3 million for the first fiscal quarter of 2001. Earnings per share on this basis were
$0.11 per diluted share for the period, compared to $0.24 for the first quarter of fiscal 2001. During the quarter ended
November 30, 2001, Jabil recorded integration charges of $2.0 million ($1.3 million after-tax) related to the
acquisition of certain manufacturing facilities of Marconi Communications and charges of $14.1 million ($10.1 million
after-tax) related to restructuring of the business.
On a GAAP basis, net income was $8.4 million for the first fiscal quarter of 2002, compared to $47.7 million for the first
fiscal quarter of 2001. GAAP diluted earnings per share for the first fiscal quarter of 2002 were $0.04, compared to
$0.24 for the same quarter of fiscal 2001.
Gross profit for fiscal 2002 first quarter was $81.6 million or 9.2 percent of revenue compared to $111.5 million or
9.9 percent of revenue for the corresponding quarter of fiscal 2001.
Operating income for the first fiscal quarter of 2002 (excluding amortization of intangibles and non-recurring charges as
noted above) was $30.1 million or 3.4 percent of revenue compared to $66.0 million or 5.8 percent of revenue for the
first fiscal quarter of 2001.
"While the economic environment continues to be challenging, we are pleased to post solid results for the quarter,
especially in light of the continued demand deterioration from several sectors of our customer base during this period,"
said Jabil President and CEO Timothy L. Main. "With continued focus on our balance sheet, we maintained our leadership
position in inventories, sales cycle and return metrics."
Sequential Income Statement Highlights (excluding intangible amortization and non-recurring charges)
-- First quarter revenue declined six percent compared to the
prior quarter.
-- Operating income decreased 14 percent to $30 million from the
fourth quarter.
-- Cash earnings after taxes were $22.1 million or 2.5 percent of
revenue.
-- GAAP earnings after taxes were $8.4 million or 1.0 percent of
revenue.
-- Fully diluted cash earnings per share for the quarter were
$0.11 on 199,515,000 average shares.
-- Fully diluted GAAP earnings per share for the quarter were
$0.4 on 199,515,000 average shares.
Sequential Balance Sheet Highlights
-- Accounts receivable decreased by $68 million to $460 million
in the first quarter.
-- Calculated DSO improved by three days to 47 days.
-- Inventories decreased by $26 million in the quarter to $406
million.
-- Calculated inventory turns were eight, comparable to the prior
quarter.
-- Sales cycle improved by seven days to 50.
-- Debt to capitalization ratio was 20.7 percent at the end of
the quarter.
-- Cash flow from operations was approximately $150 million.
Business Outlook Guidance
The Company said the economic environment has deteriorated since its conference call in September and that it expects a
slower recovery of its business due to the recessionary economy. The economy, continued telecommunications carrier
spending cutbacks and aggressive inventory reductions by customers have resulted in sequentially lower production levels,
which will require Jabil to reduce its cost structure by considering plant re-sizing and reductions to the workforce. The
Company said it will take a one-time charge in its second fiscal quarter of $10 to $15 million for these changes.
Despite the challenging and changing environment Jabil provided updated revenue, earnings and segment guidance for its
fiscal year 2002 and said it expects growth in the automotive, consumer, instrumentation and medical and telecom sectors
of its business. The company expects second quarter production levels of $800 to $850 million with corresponding cash
earnings per share from $0.06 to $0.08.
Jabil expects a resumption of sequential growth in the third and fourth quarters of its fiscal year. The fiscal year revenue
expectation for the company is $3.5 to $4.0 billion with earnings of $0.50 to $0.60 for the full 2002 fiscal year. "We
expect sequential growth to resume in our third and fourth fiscal quarters as new business wins and an improved economic
environment boost our financial performance. We have a solid operating model that will deliver strong financial results as
overall business levels improve in 2002," said Main.
Jabil Circuit, Inc. is an electronic manufacturing services provider for international electronics companies in the
automotive, computing and storage, consumer, instrumentation and medical, networking, peripheral and
telecommunications markets. Jabil offers circuit design, board design from schematic, prototype assembly, volume board
assembly, system assembly, repair and warranty services from facilities in the Americas, Europe and Asia. Further
information about Jabil can be found on the World Wide Web at jabil.com.
Statement of operations and balance sheet data for Q1 FY2002 attached.
A telephone replay is also available for 24 hours beginning at 11:00 a.m. on Thursday, December 20. Phone call access is
1-706-645-9291, Conference ID #2587753.
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
November 30, August 31,
2001 2001
------------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 492,383 $ 430,652
Accounts receivable, net 460,356 528,196
Inventories 405,664 431,499
Prepaid expenses and other current
assets 43,830 38,619
Deferred income taxes 18,208 17,832
------------- ------------
Total current assets 1,420,441 1,446,798
Property, plant and equipment, net 757,661 744,723
Other assets 188,302 166,057
------------- ------------
$ 2,366,404 $ 2,357,578
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of long term
debt $ 8,333 $ 8,333
Accounts payable 375,925 392,181
Accrued expenses 111,730 104,261
Income taxes payable 703 -
------------- ------------
Total current liabilities 496,691 504,775
Long term debt, less current installments 361,667 361,667
Deferred income taxes 40,192 36,960
Deferred grant revenue 6,812 7,319
Other liabilities 37,598 32,781
------------- ------------
Total liabilities 942,960 943,502
------------- ------------
Stockholders' equity
Common stock 197 197
Additional paid in capital 870,012 868,869
Retained earnings 553,706 545,331
Accumulated other comprehensive income (471) (321)
------------- ------------
Total stockholders' equity 1,423,444 1,414,076
------------- ------------
$ 2,366,404 $ 2,357,578
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share data)
(Unaudited)
Three months ended
November 30, November 30,
2001 2000
------------- ------------
Net revenue $ 884,567 $ 1,128,955
Cost of revenue 802,959 1,017,482
------------- ------------
Gross profit 81,608 111,473
Operating expenses:
Selling, general and administrative 49,603 44,080
Research and development 1,878 1,428
Amortization of intangibles 2,842 777
Acquisition & merger-related charges (1) 2,011 -
Restructuring charges (1) 14,142 -
------------- ------------
Operating income 11,132 65,188
Interest income (2,171) (2,494)
Interest expense 2,783 439
------------- ------------
Income before income taxes 10,520 67,243
Income tax expense 2,145 19,501
------------- ------------
Net income $ 8,375 $ 47,742
============= ============
Earnings per share:
Basic $ 0.04 $ 0.25
============= ============
Diluted $ 0.04 $ 0.24
============= ============
Common shares used in the calculation of
earnings per share:
Basic 197,012 190,526
============= ============
Diluted 199,515 198,907
============= ============
(1) During the quarter ended November 30, 2001, we recorded
charges of $2.0 million ($1.3 million after-tax) related to the
acquisition of certain manufacturing facilities of Marconi
Communications. We also recorded charges of $14.1 million ($10.1
million after-tax) related to the restructuring of our business during
the quarter ended November 30, 2001.
JABIL CIRCUIT, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(In thousands, except for per share data)
(Unaudited)
Three months ended
November 30, November 30,
2001 2000
------------- ------------
Net Income $ 8,375 $ 47,742
Intangible amortization, net of tax 2,351 552
Acquisition charges, net of tax (1) 1,262 -
Restructuring charges, net of tax (1) 10,146 -
------------- ------------
Earnings, excluding intangible
amortization and non-recurring charges $ 22,134 $ 48,294
============= ============
Earnings per share, excluding intangible
amortization and non-recurring charges:
Basic $ 0.11 $ 0.25
============= ============
Diluted $ 0.11 $ 0.24
============= ============
Common shares used in the calculation of
earnings per share, excluding intangible
amortization and non-recurring charges:
Basic 197,012 190,526
============= ============
Diluted 199,515 198,907
============= ============
(1) During the quarter ended November 30, 2001, we recorded charges of $2.0 million ($1.3 million after-tax) related
to the acquisition of certain manufacturing facilities of Marconi Communications. We also recorded charges of $14.1
million ($10.1 million after-tax) related to the restructuring of our business during the quarter ended November 30,
2001.
This news release contains forward-looking statements regarding the anticipated outlook for our business, our expected
fourth-quarter earnings results and restructuring charges, and our long-term outlook for the company, our industry and
our customers 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: the length and severity of the
current economic downturn and our ability to manage customer demand through the downturn; fluctuations in operating
results; changes in technology; competition; managing rapid growth; managing rapid declines in customer demand; our
ability to successfully consummate our acquisition of certain assets from Marconi Communications; managing the
integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our
dependence on a limited number of customers; the consolidation of our customer base; 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, 2001, any subsequent Reports on Form 10-Q and Form 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.
Contact:
Jabil Circuit, St. Petersburg
Lisa Allison, 727/803-3314 |
