Here it is $0.52. But company is warning about the future...
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 12/1/97.
JABIL CIRCUIT RESULTS SET EARNINGS RECORD
Earnings Increase 82 Percent
St. Petersburg, FL - March 17, 1998....Jabil Circuit, Inc.
(NASDAQ: JBIL), electronics contract manufacturer to the world
market for circuit board assemblies, today reported record earnings
for the second fiscal quarter of 1998 ended February 28, 1998.
Revenue for the quarter increased 49 percent to $330.7 million
compared to $222.1 million for the same period of fiscal 1997.
Jabil's second quarter of fiscal 1998 net income increased 82
percent to $20.1 million or $.52 per diluted share compared with
$11.1 million or $.29 per diluted share for the second quarter of
fiscal 1997.
Gross profit for Jabil's second quarter increased 66 percent to $44.1
million or 13.3 percent of revenues compared to $26.5 million or
11.9 percent of revenue for the corresponding quarter of fiscal 1997.
Operating income for the second fiscal quarter of 1998 increased 71
percent to $30.3 million or 9.2 percent of revenue compared to
$17.8 million or 8.0 percent of revenue for the second fiscal quarter
of 1997.
"We are pleased with the record revenue and earnings level for the
second quarter of fiscal 1998," said Jabil Circuit President Thomas
A. Sansone. "These results reflect a strong performance, although
reduced revenues from our peripheral business slowed overall
operating income growth to a 14 percent compound annual growth
rate," he said.
Income Statement -- Sequential Trend Highlights
Revenue in the second fiscal quarter increased by $11.2
million, a three percent increase from the first quarter,
reflecting an increase in production levels.
Gross margin increased to 13.3 percent of revenue, reflecting
the ongoing concentration of product mix in high value added
products and continued high levels of plant loading.
SG&A increased to $12.9 million, or 3.9 percent of revenue.
The increase reflects increases in Mexico, information
technology and corporate staff.
R & D decreased slightly in absolute dollars to $879 thousand,
continuing to represent .3 percent of revenue.
Operating income increased sequentially to $30.3 million, or
9.2 percent of revenue. This represents a 14 percent compound
annual growth rate (CAGR) over the first quarter. Operating
income growth is the Company's key financial objective.
Net interest expense increased by $421 thousand, to $1.1
million, representing .3 percent of revenue.
Income tax rates decreased to 31 percent of income compared
to 33.4 percent in the prior sequential quarter, reflecting an
increase in profitability in lower tax rate areas.
Net income after tax was $20.1 million or 6.1 percent of revenue, as
compared to 6.0 in the prior sequential quarter. Earnings per share
for the quarter were $.52 on an average 38,564,000 shares during
the period, fully diluted.
Balance Sheet -- Sequential Trend Highlights
For our second fiscal quarter, asset turnover ratios improved from
November, generating positive cash flow from operations for the
ninth consecutive quarter.
Accounts receivable decreased by $14 million to $120 million
in the second quarter of fiscal 1998. This compares to $134
million in the first quarter of fiscal 1997.
Inventories decreased by $22 million in the second quarter to
$90 million as compared to $112 million as of the end of
February. Calculated inventory turns were approximately 13,
as compared to 10 turns in the November quarter.
Cash balances were $56 million at the end of the second fiscal
quarter, as compared to $43 million at the end of the first
quarter of fiscal 1998.
Fixed assets increased by $18 million to $182 million reflecting
$26 million in capital expenditures, offset by $8 million in
depreciation.
The Company is not currently utilizing the $100 million credit
facility.
Long term debt remained constant at $50 million in the
second quarter. Long-term debt is represented by the $50
million private placement debt funded in May of fiscal 1996.
Principal payments on this debt begin mid-1999.
The Company's debt-to-capitalization ratio is now at 18
percent. Total liabilities-to-equity ratio at the end of the
quarter was 1 to 1.
For the quarter, average return on assets was 17.6 percent,
with an average return on equity of 37.5 percent.
Business Outlook (NOTE: The following statements are forward looking;
actual results may differ materially. Please refer to the Company's most recent 10-K for a complete
description of risk factors.)
Outlook
Sansone indicated that the while the Company's results for the
second quarter were excellent, the overall business outlook is not as
robust as has been over the last few quarters. "We believe that fears
of the Asian economic situation may be leading some of our
customers to reduce inventory levels for the sub assemblies we
provide them," said Sansone. The Company indicated that it is
currently seeing some near term softness in production schedules for
several major customers. "History would suggest that global
electronics production schedules will rebound after our customers'
competitive positions are reset and that contract manufacturers will
resume growth patterns amplified by the trend to outsourcing and
growth in electronic products," said Sansone.
For the balance of fiscal 1998, the Company anticipates that
revenue will slow to near the level of the first fiscal quarter of the
year, with a resumption of growth in the fall quarter. The Company
expects lower operating income over the next two quarters resulting
from lower demand for production and new product transitions for
existing customers.
Jabil Circuit, Inc. is an electronic manufacturer of circuit board
assemblies for international original equipment manufacturers in
the communications, personal computer, computer peripheral,
automotive, medical and consumer markets. Jabil offers circuit
design, board design from schematic, prototype assembly, volume
board assembly and system assembly services from automated
manufacturing facilities in Florida, Michigan, California, Scotland,
Malaysia and Mexico.
# #
View Statement of Operations and Balance
Sheet data for Second Quarter 1998.
For more information contact
Beth Walters, Corporate Communications
Phone (813) 577-9749
Fax (813) 579-8529
Email Beth_Walters@jabil.com |
