[JABIL CIRCUIT NEWS LOGO]
This news release contains forward-looking statements, including those regarding
the anticipated outlook for our business, our currently estimated first quarter
and full fiscal year 2005 revenues and earnings results and our long-term
outlook for our company, our industry and our customers. These statements are
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, but are not limited to: fluctuations in
operating results; changes in technology; competition; anticipated growth for us
and our industry may not occur; managing rapid growth; managing any rapid
declines in customer demand that may occur; our ability to successfully
consummate our acquisitions; 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, 2003, 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.
JABIL CIRCUIT REPORTS FOURTH QUARTER & FISCAL YEAR 2004 RESULTS
Company Posts Record Revenues for Quarter and Year
ST. PETERSBURG, FL - SEPTEMBER 21, 2004...Jabil Circuit, Inc. (NYSE: JBL), a
global electronics manufacturing services provider, today reported results for
the fourth fiscal quarter and fiscal year 2004, ended August 31, 2004.
FISCAL FOURTH QUARTER 2004
Revenue for the fourth fiscal quarter of 2004 increased 25 percent to $1.6
billion compared to $1.3 billion for the same period of fiscal 2003.
Under accounting principles generally accepted in the United States of America
("GAAP"), net income for the fourth quarter of fiscal 2004 increased to $44.3
million as compared to $20.1 million for the same period in fiscal 2003. GAAP
diluted earnings per share for the fourth quarter of fiscal 2004 were $0.22
compared to $0.10 for the same period of fiscal 2003.
Jabil's fourth quarter of fiscal 2004 core earnings increased 32 percent to
$54.7 million, compared to $41.4 million for the fourth quarter of fiscal 2003.
Core earnings per share increased 35 percent to $0.27 per diluted share for the
period, compared to $0.20 for the fourth quarter of fiscal 2003. (Jabil defines
core earnings as GAAP net income before amortization of intangibles,
acquisition-related charges, restructuring and impairment charges and other
income/loss, net of tax. Jabil reports core earnings to provide its investors
with an alternative method for assessing its earnings from what it believes to
be its core manufacturing operations. See the accompanying reconciliation of
Jabil's core earnings to its GAAP net income and additional information in the
supplemental information below).
Gross profit for the fourth quarter of fiscal 2004 increased 14 percent to
$137.7 million or 8.5 percent of revenue compared to $120.4 million or 9.3
percent of revenue for the same period of fiscal 2003.
On a GAAP basis, operating income for the fourth quarter of fiscal 2004
increased to $56.9 million compared to $27.4 million for the same period of
fiscal 2003.
Core operating income for the fourth quarter of fiscal 2004 increased 28 percent
to $67.7 million or 4.2 percent of revenue compared to $52.8 million or 4.1
percent of revenue for the fourth quarter of fiscal 2003. (Jabil defines core
operating income as GAAP operating income before amortization of intangibles,
acquisition-related charges and restructuring and impairment charges. Jabil
reports core operating income to provide its investors with an alternative
method for assessing its operating income from what it believes to be its core
manufacturing operations. See the accompanying reconciliation of Jabil's core
operating income to its GAAP operating income and additional information in the
supplemental information below).
( M O R E )
Q4 2004 Earnings Release--Add One
September 21, 2004
OTHER QUARTERLY HIGHLIGHTS
- - Cash flow from operations was approximately $100 million for the fourth
quarter of fiscal 2004.
- - Sales cycle for the fourth quarter of fiscal 2004 was 26 days.
- - Calculated inventory turns for the fourth quarter of fiscal 2004 were
nine.
- - Capital expenditures for the fourth quarter of fiscal 2004 were
approximately $77 million.
- - Depreciation for the fourth quarter of fiscal 2004 was approximately
$45 million.
- - Cash balances were $621 million at the end of the fourth quarter of
fiscal 2004.
- - Return on Invested Capital (ROIC) was consistent at 15 percent for the
fourth quarter of fiscal 2004.
FISCAL YEAR 2004
Fiscal year revenues increased 32 percent to $6.3 billion, compared to $4.7
billion in fiscal 2003.
On a GAAP basis, net income for fiscal year 2004 was $166.9 million compared to
$43.0 million for fiscal 2003. GAAP diluted earnings per share for fiscal 2004
were $0.81 compared to $0.21 for fiscal 2003.
Jabil's fiscal year 2004 core earnings after taxes increased 46 percent to
$209.1 million, compared to $142.7 million for fiscal 2003. Core earnings per
share increased 44 percent to $1.02 per diluted share for the fiscal year,
compared to $0.71 for fiscal 2003. (Jabil defines core earnings as GAAP net
income before amortization of intangibles, acquisition-related charges,
restructuring and impairment charges and other income/loss, net of tax. Jabil
reports core earnings and core earnings per share to provide its investors with
an alternative method for assessing its earnings from what it believes to be its
core manufacturing operations. See the accompanying reconciliation of Jabil's
core earnings to its GAAP net income and additional information in the
supplemental information below).
Gross profit for fiscal year 2004 increased 24 percent to $538.4 million or 8.6
percent of revenue compared to $435.5 million or 9.2 percent of revenue for
fiscal year 2003.
On a GAAP basis, operating income for fiscal year 2004 was $216.0 million
compared to $44.5 million for the fiscal year 2003.
Core operating income for fiscal year 2004 increased 44 percent to $261.1
million or 4.2 percent of revenue compared to $181.9 million or 3.8 percent of
revenue for fiscal 2003. (Jabil defines core operating income as GAAP operating
income before amortization of intangibles, acquisition-related charges and
restructuring and impairment charges. Jabil reports core operating income to
provide its investors with an alternative method for assessing its operating
income from what it believes to be its core manufacturing operations. See the
accompanying reconciliation of Jabil's core operating income to its GAAP
operating income and additional information in the supplemental information
below).
FISCAL YEAR SUMMARY AND BUSINESS OUTLOOK
"We are pleased to conclude our fiscal year with a quarter that proved to be at
the high end of our expectations, making this both a record quarter and fiscal
year. We grew revenues 32 percent, increased core earnings 46 percent and
improved core earnings per share 44 percent over fiscal 2004. Looking ahead, we
plan to grow our business with the steady trend to outsourcing and believe 2005
will be another strong year for Jabil," said Timothy L. Main, President and
Chief Executive Officer.
Jabil provided guidance for its full fiscal year 2005 indicating that it
currently foresees revenue in a range of $7.2 to $7.4 billion, core earnings
growth of 18 to 22 percent and core earnings per share in a range of $1.20 to
$1.24 per diluted share, depending upon levels of production. GAAP earnings per
share are currently estimated to be $1.05 to $1.09 per diluted share. (Expected
GAAP earnings per share for the full fiscal year are currently estimated to
include $0.15 per share for amortization of intangibles and acquisition related
charges.)
Jabil management also reiterated guidance for its first fiscal quarter of 2005,
indicating they currently expect revenue to range from $1.75 to $1.85 billion
and core earnings per share to be in a range of $0.30 to $0.32 per diluted
share, depending upon levels of production. GAAP earnings per share are
currently estimated to be $0.26 to $0.28 per diluted share. (Expected GAAP
earnings per share for the quarter are currently estimated to include $0.04 per
share for amortization of intangibles.)
Q4 2004 Earnings Release--Add Three
September 21, 2004
SUPPLEMENTAL INFORMATION
The financial results disclosed in this release include certain measures
calculated and presented in accordance with GAAP. In addition to the GAAP
financial measures, Jabil provides supplemental, non-GAAP financial measures to
facilitate evaluation of Jabil's core operating performance. The non-GAAP
financial measures disclosed in this release exclude certain amounts that are
included in the most directly comparable GAAP measures. The non-GAAP, or core
financial measures disclosed in this release do not have standard meanings and
may vary from the non-GAAP financial measures used by other companies.
Due to its acquisitions and restructuring programs, Jabil has incurred
significant incremental charges that are included in the GAAP financial measures
disclosed in this release. Management believes that the incremental nature of
these amounts does not impact the performance of its core manufacturing
operations. Management believes core financial measures (which exclude the
effects of the amortization of intangibles, acquisition related charges,
restructuring and impairment charges and other income) are a useful measure that
facilitates evaluating the past and future performance of Jabil's ongoing
operations on a comparable basis. Jabil reports core earnings and core operating
income to provide its investors with an alternative method for assessing its
earnings and operating income from what it believes to be its core manufacturing
operations. Included in this release is a GAAP Consolidated Statement of Income,
a non-GAAP Consolidated Statement of Income, as well as a reconciliation of the
disclosed core financial measures to the most directly comparable GAAP financial
measures.
COMPANY CONFERENCE CALL INFORMATION
Jabil Circuit will conduct a conference call to announce its fourth quarter and
fiscal 2004 earnings today at 4:30 p.m. EDT, live on the Internet at
http://jabil.com. This earnings conference call will be recorded and
archived for playback on the web at http://jabil.com.
The news release and information about Jabil's earnings will also be available
in the investor relations' section of the web site (jabil.com) by approximately
4:00 p.m., EDT. A taped replay of the conference call will also be available
September 21, 2004 at approximately 7:30 p.m. EDT through midnight on September
22, 2004. To access the replay, call (800) 642-1687 from within the United
States, or (706) 645-9291 outside the United States. The passcode is 112853.
Jabil Circuit, Inc. is a global leader in the Electronic Manufacturing Services
(EMS) industry, offering innovative solutions to world leading electronics
companies in the aerospace, automotive, computing, consumer, defense,
instrumentation, medical, networking, peripherals, storage and
telecommunications industry sectors. Jabil offers circuit design, board design
from schematic, mechanical and production design, product realization services,
product research and development, testing prototype assembly, volume board
assembly, system assembly, enclosure services, direct fulfillment, repair and
warranty services from facilities in the Americas, Europe and Asia. Jabil common
stock is traded on the New York Stock Exchange under the symbol "JBL." Further
information about Jabil can be found on its web site at jabil.com.
Investor & Media Contact:
Beth Walters
(727) 803-3511
investor_relations@jabil.com
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
August 31, August 31,
2004 2003
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 621,322 $ 699,748
Accounts receivable, net 777,357 759,696
Inventories 656,681 510,218
Refundable income taxes -- 27,757
Prepaid expenses and other current assets 70,143 62,942
Deferred income taxes 57,172 33,586
---------- ----------
Total current assets 2,182,675 2,093,947
Property, plant and equipment, net 776,353 746,204
Goodwill and intangible assets, net 352,426 381,319
Deferred income taxes 5,923 --
Other assets 11,979 23,275
---------- ----------
$3,329,356 $3,244,745
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of notes payable,
long-term debt and long-term lease obligations $ 4,412 $ 347,237
Accounts payable 937,636 712,697
Accrued expenses 213,418 203,284
Income taxes payable 3,618 --
---------- ----------
Total current liabilities 1,159,084 1,263,218
Notes payable, long-term debt and long-term
lease obligations, less current installments 305,194 297,018
Deferred income taxes -- 19,223
Other liabilities 45,738 76,810
---------- ----------
Total liabilities 1,510,016 1,656,269
---------- ----------
Stockholders' equity
Common stock 201 199
Additional paid-in capital 976,129 944,145
Retained earnings 789,953 623,053
Accumulated other comprehensive income 53,057 21,079
---------- ----------
Total stockholders' equity 1,819,340 1,588,476
---------- ----------
$3,329,356 $3,244,745
========== ==========
JABIL CIRCUIT, INC. AND SUBSIDIARIES
UNITED STATES GAAP CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
(UNAUDITED)
Three months ended Twelve months ended
----------------------------- ----------------------------
August 31, August 31, August 31, August 31,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Net revenue $ 1,626,177 $ 1,296,015 $ 6,252,897 $ 4,729,482
Cost of revenue 1,488,488 1,175,611 5,714,517 4,294,016
----------- ----------- ----------- -----------
Gross profit 137,689 120,404 538,380 435,466
Operating expenses:
Selling, general and administrative 65,596 65,051 263,504 243,663
Research and development 4,405 2,506 13,813 9,906
Amortization of intangibles 10,806 12,514 43,709 36,870
Acquisition related charges (1) -- 3,934 1,339 15,266
Restructuring and impairment charges (2) -- 8,958 -- 85,308
----------- ----------- ----------- -----------
Operating income 56,882 27,441 216,015 44,453
Other loss (income) (3) -- -- 6,370 (2,600)
Interest income (1,679) (1,684) (7,237) (6,920)
Interest expense 4,249 5,246 19,369 17,019
----------- ----------- ----------- -----------
Income before income taxes 54,312 23,879 197,513 36,954
Income tax expense (benefit) 10,054 3,807 30,613 (6,053)
----------- ----------- ----------- -----------
Net income $ 44,258 $ 20,072 $ 166,900 $ 43,007
=========== =========== =========== ===========
Earnings per share:
Basic $ 0.22 $ 0.10 $ 0.83 $ 0.22
=========== =========== =========== ===========
Diluted $ 0.22 $ 0.10 $ 0.81 $ 0.21
=========== =========== =========== ===========
Common shares used in the calculation of earnings per share:
Basic 201,110 199,059 200,430 198,495
=========== =========== =========== ===========
Diluted 205,165 203,980 205,849 202,103
=========== =========== =========== ===========
1) There were no acquisition-related charges during the three months ended
August 31, 2004. During the twelve months ended August 31, 2004, we recorded
acquisition-related charges of $1.3 million ($1.0 million after-tax) primarily
in connection with the acquisitions of certain operations of Royal Philips
Electronics ("Philips") and NEC Corporation ("NEC"). During the three months
ended August 31, 2003, we recorded acquisition-related charges of $3.9 million
($2.7 million after-tax) primarily in connection with the acquisitions of
certain operations of Philips and NEC. During the twelve months ended August 31,
2003, we recorded acquisition-related charges of $15.3 million ($9.8 million
after-tax) in connection with the acquisitions of certain operations of Quantum
Corporation, Alcatel Business Systems, Valeo S.A., Lucent Technologies of
Shanghai, Seagate Technology - Reynosa, S. de R.L. de C.V., Philips and NEC.
(2) There were no restructuring and impairment charges during the three and
twelve months ended August 31, 2004. During the three months and twelve months
ended August 31, 2003, we recorded restructuring and impairment charges of $9.0
million ($8.3 million after-tax) and $85.3 million ($60.7 million after-tax),
respectively, related to the restructuring of our business.
(3) During the twelve months ended August 31, 2004, we recorded a loss of $6.4
million ($4.0 million after-tax) on the write-off of unamortized issuance costs
associated with our $345 million, 20-year, 1.75% convertible subordinated notes
("Convertible Notes"). The Convertible Notes were retired in May 2004. During
the twelve months ended August 31, 2003, we recorded $2.6 million ($1.6 million
after-tax) of other income related to proceeds received in connection with
facility closure costs.
JABIL CIRCUIT, INC. AND SUBSIDIARIES
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
(UNAUDITED)
Three months ended Twelve months ended
-------------------------- ---------------------------
August 31, August 31, August 31, August 31,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Net revenue $ 1,626,177 $ 1,296,015 $ 6,252,897 $ 4,729,482
Cost of revenue 1,488,488 1,175,611 5,714,517 4,294,016
----------- ----------- ----------- -----------
Gross profit 137,689 120,404 538,380 435,466
Operating expenses:
Selling, general and administrative 65,596 65,051 263,504 243,663
Research and development 4,405 2,506 13,813 9,906
----------- ----------- ----------- -----------
Core operating income (Non-GAAP) (1) 67,688 52,847 261,063 181,897
Interest income (1,679) (1,684) (7,237) (6,920)
Interest expense 4,249 5,246 19,369 17,019
----------- ----------- ----------- -----------
Core earnings before income taxes 65,118 49,285 248,931 171,798
Income tax expense (Non-GAAP) (1) 10,420 7,886 39,830 29,050
----------- ----------- ----------- -----------
Core earnings (Non-GAAP) (1) $ 54,698 $ 41,399 $ 209,101 $ 142,748
=========== =========== =========== ===========
Core earnings per share: (Non-GAAP) (1)
Basic $ 0.27 $ 0.21 $ 1.04 $ 0.72
=========== =========== =========== ===========
Diluted $ 0.27 $ 0.20 $ 1.02 $ 0.71
=========== =========== =========== ===========
Common shares used in the calculation of core earnings per share:
Basic 201,110 199,059 200,430 198,495
=========== =========== =========== ===========
Diluted 205,165 203,980 205,849 202,103
=========== =========== =========== ===========
(1) The Non-GAAP Consolidated Statements of Income presented above exclude
certain amounts that are included in the U.S. GAAP Consolidated Statements of
Income, specifically the effects of the amortization of intangibles, acquisition
related charges, restructuring and impairment charges and other income. Also
included in this release is a reconciliation of the disclosed non-GAAP, or core
financial measures to the most directly comparable GAAP financial measures.
Jabil provides supplemental, non-GAAP financial measures to facilitate
evaluation of the Company's core operating performance. The non-GAAP financial
measures disclosed in this release do not have standard meanings and may vary
from the non-GAAP financial measures used by other companies.
JABIL CIRCUIT, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
(UNAUDITED)
Three months ended Twelve months ended
------------------------ -------------------------
August 31, August 31, August 31, August 31,
2004 2003 2004 2003
--------- --------- --------- ----------
OPERATING INCOME (GAAP) $ 56,882 $ 27,441 $ 216,015 $ 44,453
Amortization of intangibles 10,806 12,514 43,709 36,870
Acquisition-related charges -- 3,934 1,339 15,266
Restructuring and impairment charges -- 8,958 -- 85,308
--------- --------- --------- ---------
CORE OPERATING INCOME (NON-GAAP) $ 67,688 $ 52,847 $ 261,063 $ 181,897
========= ========= ========= =========
NET INCOME (GAAP) $ 44,258 $ 20,072 $ 166,900 $ 43,007
Amortization of intangibles, net of tax 10,440 10,374 37,239 30,848
Acquisition-related charges, net of tax -- 2,684 987 9,827
Restructuring and impairment charges, net of tax -- 8,269 -- 60,688
Other loss (income), net of tax -- -- 3,975 (1,622)
--------- --------- --------- ---------
CORE EARNINGS (NON-GAAP) $ 54,698 $ 41,399 $ 209,101 $ 142,748
========= ========= ========= =========
EARNINGS PER SHARE: (GAAP)
Basic $ 0.22 $ 0.10 $ 0.83 $ 0.22
========= ========= ========= =========
Diluted $ 0.22 $ 0.10 $ 0.81 $ 0.21
========= ========= ========= =========
CORE EARNINGS PER SHARE: (NON-GAAP)
Basic $ 0.27 $ 0.21 $ 1.04 $ 0.72
========= ========= ========= =========
Diluted $ 0.27 $ 0.20 $ 1.02 $ 0.71
========= ========= ========= =========
COMMON SHARES USED IN THE CALCULATIONS OF
EARNINGS PER SHARE:
Basic 201,110 199,059 200,430 198,495
========= ========= ========= =========
Diluted 205,165 203,980 205,849 202,103
========= ========= ========= =========