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TheStreet Open House

Jabil Posts Fourth Quarter & Fiscal Year 2012 Results

Management also announced that the Jabil Board of Directors has authorized the repurchase of up to $100 million worth of shares of the Company’s common stock during the next twelve months. The shares will be repurchased from time-to-time in open market or through privately negotiated transactions at the Company’s discretion, subject to factors such as market conditions, levels of cash generation from operations, cash requirements for capital expenses and acquisitions and stock price. The repurchased shares should help to minimize the dilution from the Company's employee equity issuance.

(Definitions used: “GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges and loss on disposal of subsidiaries. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares determined under GAAP. Jabil calculates core return on invested capital by annualizing its after-tax core operating income for its most recently-ended quarter and dividing that by a two quarter average net invested capital base. Jabil reports core operating income, core earnings, core diluted earnings per share and core return on invested capital to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and return on invested capital from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil’s core operating income to its GAAP operating income, its calculation of core earnings and core diluted earnings per share to its GAAP net income and GAAP earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)

Operational Highlights Fiscal 2012 versus Fiscal 2011

  • Revenue from Diversified Manufacturing Services increased 24 percent.
    • Specialized Services revenue expanded 48 percent.
    • Healthcare & Instrumentation revenue grew 7 percent.
    • Industrial & Clean Tech revenue improved 2 percent.
  • Enterprise & Infrastructure revenue contracted by 2 percent.
  • High Velocity revenue decreased 14 percent.
  • Generated $634 million in cash flow from operations during fiscal 2012.
  • GAAP return on invested capital of 22 percent.
  • Returned $65 million in dividends to shareholders during fiscal 2012.
 

Quarterly Results

     

Q4 2012

     

Q4 2011

Net revenue $4.3 billion $4.3 billion
GAAP operating income $144.3 million $165.6 million
GAAP net income $82.8 million $114.3 million
GAAP diluted earnings per share $0.39 $0.52
GAAP return on invested capital 17% 26%
Core operating income $175.1 million $187.2 million
Core earnings $113.3 million $136.3 million
Core diluted earnings per share $0.54 $0.62
Core return on invested capital 22% 30%
 

Fiscal Year Results

Fiscal 2012

Fiscal 2011

Net revenue $17.2 billion $16.5 billion
GAAP operating income $621.9 million $578.7 million
GAAP net income $394.7 million $381.1 million
GAAP diluted earnings per share $1.87 $1.73
GAAP return on invested capital 22% 23%
Core operating income $736.2 million $715.2 million
Core earnings $507.1 million $516.3 million
Core diluted earnings per share $2.40 $2.34
Core return on invested capital 26% 29%
 

Business Update

“We are fortunate to have a healthy balance sheet, strong operations, dedicated employees and a roster of market-leading customers heading into fiscal 2013,” said Jabil CEO Timothy Main. “While the macroeconomic climate remains challenging, our long-term goals and competitive position are intact and we expect earnings to increase between five and ten percent in fiscal 2013.” Jabil provided guidance for its first fiscal quarter of 2013, which began on September 1 st.

       

Fiscal Q1 2013 Guidance Range

Net revenue $4.3 to $4.5 billion
GAAP operating income $140 to $175 million
GAAP earnings per share $0.37 to $0.50 per diluted share
Core operating income $170 to $200 million
Core earnings per share $0.51 to $0.62 per diluted share

(GAAP earnings per share for the first quarter of fiscal 2013 are currently estimated to include $0.02 per share for amortization of intangibles and $0.10 to $0.12 per share for stock-based compensation).

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