Jabil Posts Results for 4Q and FY Ended August 31

Oct 02, 2009 (Close-Up Media via COMTEX) -- JBL | Quote | Chart | News | PowerRating -- Jabil Circuit, Inc. has reported its preliminary, unaudited financial results for the fourth quarter and fiscal year 2009, ended August 31.

"Marked improvement in our sequential performance was aided by cost cutting, increased productivity, market share gains and a more benign end-market environment. Income gains were matched with cash flow generation and balance sheet improvements during the quarter," said President and CEO Timothy L. Main.

In a release on September 29, the Company noted that net revenue for the fourth fiscal quarter of fiscal 2009 was $2.8 billion compared to $3.3 billion for the same period of fiscal 2008. GAAP operating income for the fourth quarter of fiscal 2009 was $43.1 million compared to income of $87.8 million for the same period of fiscal 2008. GAAP net income for the fourth quarter of fiscal 2009 was $5.5 million compared to net income of $57.5 million for the same period of fiscal 2008. GAAP diluted earnings per share for the fourth quarter of fiscal 2009 were $0.03 compared to $0.28 for the same period of fiscal 2008.

Core operating income for the fourth quarter of fiscal 2009 was $65.4 million or 2.3 percent of net revenue compared to $104.7 million or 3.2 percent of net revenue for the fourth quarter of fiscal 2008. Core earnings for the fourth quarter of fiscal 2009 were $33.4 million compared to $61.7 million for the same period of fiscal 2008. Core earnings per diluted share for the fourth quarter of fiscal 2009 were $0.16 compared to $0.30 for the same period of fiscal 2008.

Fiscal Year 2009

Net revenue for the fiscal year was $11.7 billion compared to $12.8 billion for fiscal 2008.

GAAP operating income for fiscal 2009 was a loss of $910.2 million compared to income of $251.4 million for fiscal 2008. GAAP net loss for fiscal 2009 was $1.2 billion compared to net income of $133.9 million for fiscal 2008. GAAP diluted loss per share for fiscal 2009 was $5.63 compared to earnings per share of $0.65 for fiscal 2008.

Jabil's fiscal 2009 core operating income was $246.8 million or 2.1 percent of net revenue compared to $379.9 million or 3.0 percent of net revenue for fiscal 2008. Core earnings for fiscal 2009 were $132.0 million compared to $231.0 million for fiscal 2008. Core earnings per diluted share for fiscal 2009 were $0.63 compared to $1.12 for fiscal 2008.

Fourth Quarter 2009

Operational and Balance Sheet Highlights

- Cash flow from operations for the quarter was approximately $169 million.

- Sales cycle was 16 days for the fourth quarter of fiscal 2009.

- Annualized inventory turns increased to nine turns for the quarter.

- Capital expenditures for the quarter were approximately $57 million.

- Depreciation for the quarter was approximately $66 million.

- Cash and cash equivalent balances were approximately $876 million at the end of the quarter.

- Core Return on Invested Capital was 11.5 percent for the quarter.

- Jabil paid a $0.07 dividend on September 1.

Business Update

"Based upon our current expectations, it appears as though the worst of the recession is behind us. However, we remain vigilant and will continue to focus on productivity, quality and balance sheet health even as revenues begin to recover. We are grateful for the dedicated efforts of our global workforce and look forward to a more robust fiscal 2010," said President and CEO Timothy L. Main. Through the twelve months ended August 31, the company produced cash flow from operations of $556 million and currently has more than $800 million in cash. During the quarter the company repurchased $295 million of its 5.875 percent senior notes that were due in 2010 (98 percent of the total outstanding) and closed on its $312 million offering of 7.75 percent senior notes due 2016. The company also has an $800 million revolving credit facility. "In short, we are ready to take advantage of opportunities for growth in our fiscal 2010," said Main.

Jabil management said it expects to divest of its automotive electronics manufacturing entity located in Western Europe during its first fiscal quarter of fiscal 2010. The company indicated it expects a loss of $20 to $25 million on the sale of the entity, of which $4 million is expected to be cash. Subject to country-specific regulatory approvals and other closing conditions, the transaction is anticipated to close during the company's first fiscal quarter.

Fiscal First Quarter 2010 Guidance

Jabil management indicated that it expects its net revenue for its first fiscal quarter of 2010 to be in a range from $3.0 billion to $3.2 billion. The company estimated that its core operating income would be in a range from $85 million to $105 million, driven by the continued demand from its customers, further manufacturing efficiencies and the benefit of cost reductions. Jabil indicated that it expects its core earnings per share for its first quarter of fiscal 2010 to range from $0.24 to $0.32 per diluted share. GAAP earnings per share are expected to be in a range from $0.02 to earnings of $0.12 per diluted share. (GAAP earnings or loss per share for the first quarter of fiscal 2010 is currently estimated to include $0.10 to $0.12 per share loss on the aforementioned automotive divestiture; $0.03 per share for amortization of intangibles; $0.05 per share for stock-based compensation and related charges; and $0.02 per share for restructuring.)

Jabil is an electronic product solutions company providing electronics design, manufacturing and product management services to global electronics and technology companies.

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