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Exhibit 99.1
This press release contains certain forward-looking statements. These statements
are not historical facts, but instead represent only the Company's belief
regarding future events, many of which, by their nature, are inherently
uncertain and outside of the Company's control. It is possible that the
Company's actual results and financial condition may differ, possibly
materially, from the anticipated results and financial condition indicated in
these forward-looking statements. For a discussion of some of the risks and
factors that would affect the firm's future results, see the Company's most
recently filed SEC documents such as the Form 10-K, filed 11/28/00. . Some
factors 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.
JABIL CIRCUIT POSTS RECORD REVENUE
EARNINGS INCREASE 51 PERCENT
St. Petersburg, FL - December 19, 2000....Jabil Circuit, Inc. (NYSE: JBL),
electronics manufacturing services provider, today reported revenue for the
first quarter of fiscal 2001, ended November 30, 2000. Revenue for the quarter
increased 64 percent to $1.1 billion compared to $690 million for the same
period of fiscal 2000.
Jabil's first quarter of fiscal 2001 net income increased 51 percent to $47.7
million, compared with $31.6 million for the first fiscal quarter of 2000, and
earnings per share increased 42 percent to $0.24 per diluted share, compared to
$0.17 for the first quarter of fiscal 2000. This excludes the impact of an
acquisition-related charge of approximately $5.2 million, or $0.02 diluted EPS
recorded in the first fiscal quarter of 2000.
Gross profit for fiscal 2001 first quarter increased 52 percent to $111.5
million or 9.9 percent of revenue compared to $73.4 million or 10.6 percent of
revenue for the corresponding quarter of fiscal 2000.
Operating income for the first fiscal quarter of 2001 increased 46 percent to
$65.2 million or 5.8 percent of revenue compared to $44.6 million or 6.5 percent
of revenue for the first fiscal quarter of 2000. This excludes the impact of an
acquisition-related charge of approximately $5.2 million, or $0.02 diluted
earnings per share recorded in the first fiscal quarter of 2000.
"While our earnings for the first fiscal quarter were impressive on a
year-over-year basis, they did not meet our sequential growth expectations,"
said Jabil President and CEO Tim Main. "During the quarter we were faced with
unanticipated shortages of certain key components that prevented us from
achieving our original goals."
INCOME STATEMENT -- SEQUENTIAL TREND HIGHLIGHTS
- - First quarter revenue grew by 6 percent over the prior quarter.
- - Operating income increased from $64.5 million, to $65.2 million over
the prior quarter, or to 5.8 percent of revenue.
- - Net income after taxes was $47.7 million or 4.2 percent of revenue, as
compared to $47.1 million or 4.4 percent in the prior sequential
quarter.
- - Earnings per share for the quarter were $0.24 on an average of
198,907,000 shares during the period, fully diluted.
( M O R E )
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Q1 2001 Earnings Release--Add One
BALANCE SHEET REVIEW -- SEQUENTIAL TREND HIGHLIGHTS
- - Accounts receivables increased by $45 million to $568 million in the
first quarter as compared to $523 million in the fourth quarter.
Calculated DSO was 45 days, while collection experience was 36 days.
- - Inventories increased by $164 million in the quarter to $642 million as
compared to $478 million at the end of August. Calculated inventory
turns were seven, compared to eight turns in the previous quarter.
- - The Company's debt to capitalization ratio was three percent at the end
of the quarter.
- - For the quarter, average return on assets was 9.2 percent.
- - Fiscal first quarter average return on equity was 14.7 percent.
FISCAL YEAR GUIDANCE
The Company provided updated guidance for the balance of its fiscal year, which
included revised earnings estimates for the remainder of the year. The Company
expects that customer inventory adjustments will cause an eleven percent
sequential decline in operating income for its second fiscal quarter. Resumed
growth is targeted to drive a sequential increase of 32 percent in its fiscal
third quarter over the second quarter and 16 percent sequential growth of
operating income in its fourth fiscal quarter. The Company is targeting an
operating income increase of 33 percent for the 2001 fiscal year.
"Our overall business is in excellent health and we are enthusiastic about the
EMS sector and our positioning for long term growth. We believe that we are
seeing the impact of a short-term inventory adjustment as customers take a more
temperate view of economic growth. Our targets for this year anticipate organic
revenue growth of over 40 percent and operating income growth of 33 percent.
This would be solid performance and in line with the growth trends we have
maintained for the last seven years," said Main.
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, prototype assembly, volume board assembly, system
assembly, repair and warranty services from facilities in the North America,
Europe, Asia and Latin America. Further information about Jabil can be found on
the World Wide Web at http://www.jabil.com.
# #
Statement of operations and balance sheet data for Q1 FY01 attached.
Q1 FY01 earnings conference call will be available through
www.jabil.com/ir/index.html and will remain until January 3, 2001. A telephone
replay is also available for 24 hours beginning at 6:30 p.m. on Tuesday,
December 19. Phone call access is 1-800-633-8284, reservation number 171-24-463.
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
November 30,
2000 August 31,
(Unaudited) 2000
------------ -----------
ASSETS
Current assets
Cash and cash equivalents $ 131,067 $ 337,602
Accounts receivable - Net 568,298 523,096
Inventories 641,514 477,548
Prepaid expenses and other current assets 40,543 30,984
Deferred income taxes 19,600 18,040
----------- -----------
Total current assets 1,401,022 1,387,270
Property, plant and equipment, net 704,785 587,494
Other assets 44,208 43,428
----------- -----------
$ 2,150,015 $ 2,018,192
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of long term debt $ 8,333 $ 8,333
Accounts payable 664,467 594,111
Accrued expenses 67,898 72,261
Income taxes payable 24,466 17,270
----------- -----------
Total current liabilities 765,164 691,975
Long term debt, less current installments 25,000 25,000
Deferred income taxes 37,411 28,112
Deferred grant revenue 2,712 2,922
----------- -----------
Total liabilities 830,287 748,009
----------- -----------
Stockholders' equity
Common stock 191 190
Additional paid in capital 845,612 843,784
Retained earnings 474,556 426,814
Cumulative translation adjustment (631) (605)
----------- -----------
Total stockholders' equity 1,319,728 1,270,183
----------- -----------
$ 2,150,015 $ 2,018,192
=========== ===========
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
(UNAUDITED)
Three months ended
-----------------------------
November 30, November 30,
2000 1999
------------ ------------
Net revenue $ 1,128,955 $ 689,822
Cost of revenue 1,017,482 616,435
----------- ---------
Gross profit 111,473 73,387
Operating expenses:
Selling, general and administrative 44,080 27,051
Research and development 1,428 1,182
Amortization of intangibles 777 599
Acquisition-related charge -- 5,153
----------- ---------
Operating income 65,188 39,402
Interest income (2,494) (1,180)
Interest expense 439 565
----------- ---------
Income before income taxes 67,243 40,017
Income tax expense 19,501 13,529
----------- ---------
Net income $ 47,742 $ 26,488
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Earnings per share:
Basic $ 0.25 $ 0.15
=========== =========
Diluted $ 0.24 $ 0.14
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Common shares used in the calculations
of earnings per share:
Basic 190,526 174,820
=========== =========
Diluted 198,907 182,778
=========== =========