Jabil Posts First Quarter Results

  Jabil Posts First Quarter Results

                 Impressive Strength in Specialized Services

Business Wire

ST. PETERSBURG, Fla. -- December 19, 2012

Today Jabil Circuit, Inc. (NYSE: JBL), announced its preliminary, unaudited
financial results for the first quarter of fiscal year 2013. The company
reported first quarter revenue of $4.6 billion. “Diversified Manufacturing
Services increased to 47 percent of our overall business, paced by outstanding
growth in Specialized Services,” said Timothy L. Main, President and CEO of
Jabil.

Jabil’s Diversified Manufacturing Services business grew 20 percent in the
first quarter of fiscal 2013 when compared to results of the first quarter of
fiscal year 2012. The company’s Enterprise& Infrastructure business increased
17 percent from the first quarter of fiscal year 2012 while Jabil’s High
Velocity business declined 20 percent during the first quarter of fiscal year
2013, as compared to fiscal 2012.

Generally accepted accounting principles (GAAP) operating income for the first
quarter of fiscal year 2013 was $170 million.Excluding amortization of
intangibles and stock-based compensation, core operating income was $193
million.GAAP diluted earnings per share was $0.51 cents and core diluted
earnings per share was $0.61 cents.

“We are pleased to have generated cash flow from operations of $152 million
during the quarter. As a result of this outstanding performance and the
ongoing strength of our balance sheet, we were able to return $148 million in
capital to shareholders during the first quarter of fiscal year 2013 through
dividends and share repurchases,” said Chief Financial Officer Forbes
Alexander. “We see this positive performance continuing and continue to
estimate operating cash flow of $1 billion in fiscal 2013,” Alexander noted.

(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 Q1 2013 versus Fiscal Q1 2012

  *Diversified Manufacturing Services increased 20 percent.

       *Specialized Services revenue expanded 51 percent.
       *Healthcare & Instrumentation revenue declined 22 percent.
       *Industrial & Clean Tech revenue declined 9 percent.

  *Enterprise & Infrastructure revenue increased 17 percent.
  *High Velocity revenue decreased 20 percent.
  *Cash flow from operations increased to $152 million.

Quarterly Results                  Q1 2013           Q1 2012

Net revenue                           $4.6 billion         $4.3 billion
GAAP operating income                 $170.3 million       $170.8 million
GAAP net income                       $105.8 million       $112.9 million
GAAP diluted earnings per share       $0.51                $0.54
GAAP return on invested capital       21%                  26%
Core operating income                 $192.5 million       $194.6 million
Core earnings                         $127.8 million       $136.2 million
Core diluted earnings per share       $0.61                $0.65
Core return on invested capital       24%                  30%
                                                           

Repurchased $129 million worth of shares and returned $19 million to
shareholders via dividends during the quarter.

Business Update

"Expectations for the second fiscal quarter of 2013 are consistent with
seasonal patterns of demand," said Jabil CEO Timothy Main. "End market demand
remains muted in business sectors exposed to government and business spending.
Although environmental conditions continue to be uncertain, we maintain our
expectation that fiscal 2013 will be another record year for Jabil.”

Fiscal Q2 2013 Guidance Range

Net revenue                $4.3 billion to $4.5 billion
Core operating income         $165 million to $185 million
Core earnings per share       $0.50 to $0.58 per diluted share
GAAP earnings per share       $0.40 to $0.48 per diluted share
                              

(GAAP earnings per share for the second quarter of fiscal 2013 are currently
estimated to include $0.02 per share for amortization of intangibles and $0.08
per share for stock-based compensation).

FORWARD LOOKING STATEMENT:This news release contains forward-looking
statements, including those regarding our anticipated financial results for
our first quarter of fiscal year 2013; our positive performance continuing,
specifically our fiscal year 2013 operating cash flow and our strong balance
sheet; our expectations for the second quarter of fiscal year 2013 being
consistent with seasonal patterns of demand; end market demand remaining muted
in business sectors exposed to government and business spending; our
expectation that fiscal year 2013 will be another company record year for
Jabil; and our currently expected second quarter of fiscal year 2013 net
revenue, core operating income, core and GAAP earnings per share results and
the components thereof. The statements in this news release 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: our
determination as we finalize our financial results for our first fiscal
quarter of fiscal year 2013 that our financial results and conditions differ
from our current preliminary unaudited numbers set forth herein; fluctuations
in our stock’s market price; fluctuations in operating results and cash flows;
unexpected, adverse seasonal impacts on demand; changes in macroeconomic
conditions, both in the U.S. and internationally; our financial performance
during and after the current economic conditions; our ability to maintain and
improve costs, quality and delivery for our customers; risks and costs
inherent in litigation; whether our realignment of our capacity will adversely
affect our cost structure, ability to service customers and labor relations;
our ability to take advantage of perceived benefits of offering customers
vertically integrated services; changes in technology; competition;
anticipated growth for us and our industry that may not occur; managing rapid
growth; managing rapid declines in customer demand and other related customer
challenges that may occur; our ability to successfully consummate acquisitions
and divestitures; managing the integration of businesses we acquire; risks
associated with international sales and operations; retaining key personnel;
our dependence on a limited number of large customers; 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 August31, 2012, subsequent Reports on 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.

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. Management believes core financial measures (which
exclude the effects of the 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) are a useful measure that facilitates evaluating
the past and future performance of Jabil's ongoing operations on a comparable
basis. Jabil reports core operating income, core return on invested capital,
core earnings and core diluted earnings per share to provide investors an
additional method for assessing operating income, earnings and earnings per
share from what it believes are its core manufacturing operations. Included in
this release are Condensed Consolidated Statements of Operations as well as a
reconciliation of the disclosed core financial measures to the most directly
comparable GAAP financial measures.

Company Conference Call Information: Jabil will hold a conference call to
discuss the first fiscal quarter 2013 earnings today at 4:30 p.m. ET live on
the Internet at http://www.jabil.com. The call will be recorded and archived
on the web at http://www.jabil.com. A taped replay of the conference call will
also be available December 19, 2012 at approximately 7:30 p.m. ET through
midnight on December 31, 2012. To access the replay, call (855) 859-2056 from
within the United States, or (404) 537-3406 outside the United States. The
pass code is: 77599645. An archived webcast of the conference call will be
available at http://www.jabil.com/investors/.

About Jabil

Jabil is an electronic product solutions company providing comprehensive
electronics design, manufacturing and aftermarket product management services
to global electronics and technology companies. Offering complete product
supply chain management from facilities in 29 countries, Jabil provides
comprehensive, individualized-focused solutions to customers in a broad range
of industries. Jabil common stock is traded on the New York Stock Exchange
under the symbol, “JBL”. Further information is available on Jabil’s  website:
jabil.com.


JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                              
                                              November 30,       August 31,
                                              2012 (Unaudited)   2012
                                                                 
ASSETS
Current assets:
Cash and cash equivalents                     $  1,030,034       $ 1,217,256
Accounts receivable, net                         1,430,468         1,125,015
Inventories                                      2,465,801         2,268,949
Prepaid expenses and other current assets        980,494           989,326
Income taxes receivable                          10,727            10,949
Deferred income taxes                           28,552          27,833    
                                                                 
Total current assets                             5,946,076         5,639,328
                                                                 
Property, plant and equipment, net               1,859,166         1,779,155
Goodwill and intangible assets, net              211,569           214,071
Deferred income taxes                            71,364            73,411
Other assets                                    97,325          97,176    
                                                                 
Total assets                                  $  8,185,500      $ 7,803,141 
                                                                 
LIABILITIES AND EQUITY
Current liabilities:
Current installments of notes payable and     $  9,650           $ 18,031
long-term debt
Accounts payable                                 3,374,927         2,992,865
Accrued expenses                                 852,199           808,480
Income taxes payable                             28,416            35,665
Deferred income taxes                           4,298           3,955     
                                                                 
Total current liabilities                        4,269,490         3,858,996
                                                                 
Notes payable and long-term debt, less           1,656,058         1,658,326
current installments
Other liabilities                                85,087            85,714
Income tax liability                             76,152            68,525
Deferred income taxes                           22,668          24,245    
                                                                 
Total liabilities                               6,109,455       5,695,806 
                                                                 
Commitments and contingencies

Equity:
Jabil Circuit, Inc. stockholders’ equity:
Preferred stock                                  —                 —
Common stock                                     237               232
Additional paid-in capital                       1,775,168         1,752,847
Retained earnings                                855,819           766,934
Accumulated other comprehensive income           112,890           106,275
Treasury stock, at cost                         (670,401   )     (521,231  )
                                                                 
Total Jabil Circuit, Inc. stockholders’         2,073,713       2,105,057 
equity
                                                                 
Noncontrolling interests                        2,332           2,278     
                                                                 
Total equity                                    2,076,045       2,107,335 
                                                                 
Total liabilities and equity                  $  8,185,500      $ 7,803,141 
                                                                             

JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)
                                                
                                                  Three months ended
                                                  November 30,   November 30,
                                                  2012           2011

Net revenue                                       $ 4,637,018     $  4,326,769
Cost of revenue                                    4,286,423     3,986,759
                                                                  
Gross profit                                        350,595          340,010
                                                                  
Operating expenses:
Selling, general and administrative                 169,600          157,823
Research and development                            7,263            6,271
Amortization of intangibles                        3,451         5,074
Operating income                                    170,281          170,842
                                                                  
Interest and other, net                            30,663        27,646
                                                                  
Income before income tax                            139,618          143,196
                                                                  
Income tax expense                                 34,034        29,415
                                                                  
Net income                                          105,584          113,781
                                                                  
Net (loss) income attributable to
noncontrolling interests, net of income tax        (263      )    909
expense
                                                                  
Net income attributable to Jabil Circuit, Inc.    $ 105,847     $  112,872
                                                                  
Earnings per share attributable to the
stockholders of Jabil Circuit, Inc.:
Basic                                             $ 0.52        $  0.55
Diluted                                           $ 0.51        $  0.54
                                                                  
Weighted average shares outstanding:
Basic                                              204,318       205,388
Diluted                                            207,816       209,937
                                                                     

JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)

                                               Three months ended
                                                November 30,   November 30,
                                                2012            2011
Cash flows from operating activities:
Net income                                      $ 105,584       $ 113,781
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                     95,203          85,861
Recognition of stock-based compensation           18,803          18,665
expense
Other, net                                        1,498           (561       )
Changes in operating assets and liabilities,
exclusive of net assets acquired:
Accounts receivable                               (308,487  )     (29,659    )
Inventories                                       (195,316  )     (173,336   )
Prepaid expenses and other current assets         10,256          (49,009    )
Other assets                                      233             6,319
Accounts payable and accrued expenses             424,119         147,107
Income taxes payable                             21            (4,595     )
                                                                
Net cash provided by operating activities        151,914       114,573    
                                                                
Cash flows from investing activities:
Acquisition of property, plant and equipment      (166,485  )     (103,234   )
Proceeds from sale of property, plant and         1,981           8,148
equipment
Cost of receivables acquired, net of cash        —             510        
collections
                                                                
Net cash used in investing activities            (164,504  )    (94,576    )
                                                                
Cash flows from financing activities:
Borrowings under debt agreements                  776,517         2,380,710
Payments toward debt agreements                   (787,196  )     (2,370,864 )
Payments to acquire treasury stock                (129,262  )     —
Dividends paid to stockholders                    (18,551   )     (15,528    )
Capital contributions made to noncontrolling      317             —
interest
Net proceeds from exercise of stock options
and issuance of common stock under employee       3,201           3,183
stock purchase plan
Treasury stock minimum tax withholding            (19,908   )     (30,868    )
related to vesting of restricted stock
Excess tax benefit related to stock awards       330           888        
                                                                
Net cash used in financing activities            (174,552  )    (32,479    )
Effect of exchange rate changes on cash and      (80       )    (14,225    )
cash equivalents
                                                                
Net decrease in cash and cash equivalents         (187,222  )     (26,707    )
Cash and cash equivalents at beginning of        1,217,256     888,611    
period
                                                                
Cash and cash equivalents at end of period      $ 1,030,034    $ 861,904    
                                                                             

JABIL CIRCUIT, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES
(In thousands, except for per share data)
(Unaudited)
                                                 
                                                   Three months ended
                                                   November 30,  November 30,
                                                   2012          2011
                                                                  
Operating income (GAAP)                            $   170,281    $   170,842
Amortization of intangibles                            3,451          5,074
Stock-based compensation and related charges          18,803       18,665
Core operating income (Non-GAAP)                   $   192,535    $   194,581
                                                                  
Net income attributable to Jabil Circuit, Inc.     $   105,847    $   112,872
(GAAP)
Amortization of intangibles, net of tax                3,318          5,061
Stock-based compensation and related charges,         18,593       18,269
net of tax
Core earnings (Non-GAAP)                           $   127,758    $   136,202
                                                                  
Earnings per share: (GAAP)
Basic                                              $   0.52      $   0.55
Diluted                                            $   0.51      $   0.54
                                                                  
Core earnings per share: (Non-GAAP)
Basic                                              $   0.63      $   0.66
Diluted                                            $   0.61      $   0.65
                                                                  
Weighted average shares outstanding used in the
calculations of earnings per share (GAAP and
Non-GAAP):
Basic                                                 204,318      205,388
Diluted                                               207,816      209,937


                     JABIL CIRCUIT, INC. AND SUBSIDIARIES
                              SUPPLEMENTAL DATA
        RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES
                                (In thousands)
                                 (Unaudited)

                CALCULATION OF RETURN ON INVESTED CAPITAL AND
                       CORE RETURN ON INVESTED CAPITAL

The Company calculates (1) "Return on Invested Capital" by annualizing its
"after-tax GAAP operating income" for its most recently-ended quarter and
dividing that by a two quarter average of its "net invested capital asset
base" and (2) "Core Return on Invested Capital" by annualizing its "after-tax
non-GAAP core operating income" for its most recently-ended quarter and
dividing that by a two quarter average of its "net invested capital asset
base."

The Company calculates: (1) its "after-tax GAAP operating income" by
subtracting a certain tax effect (the calculation of which is explained below)
from its GAAP operating income and (2) its "after-tax non-GAAP core operating
income" by subtracting a certain tax effect (the calculation of which is
explained below) from its non-GAAP core operating income. See elsewhere in
this earnings release for a reconciliation of the Company's non-GAAP core
operating income to its GAAP operating income.

The Company calculates "net invested capital asset base" as the sum of the
averages (the calculation of which are explained below) of (1) its
stockholders’ equity, (2) the non-current portion of its notes payable and
long term debt and (3) the current portion of its notes payable and long term
debt, less the average (the calculation of which is explained below) of its
cash and cash equivalents.

The following table reconciles (1) "Return on Invested Capital," as calculated
using "after-tax GAAP operating income" to (2) "Core Return on Invested
Capital," as calculated using "after-tax non-GAAP core operating income":

                                               Three months    Three months
                                                ended            ended
                                                November 30,     November 30,
                                                2012             2011
Numerator:
Operating income (GAAP)                         $ 170,281        $ 170,842
Tax effect (1)                                   (34,292    )   (29,852   )
After-tax operating income                        135,989          140,990
                                                x4             X4          
Annualized after-tax operating income           $ 543,956      $ 563,960   
                                                                             
Core Operating Income (Non-GAAP)                $ 192,535        $ 194,581
Tax effect (2)                                   (34,602    )   (30,204   )
After-tax core operating income                   157,933          164,377
                                                x4             X4          
Annualized after-tax core operating income      $ 631,732      $ 657,508   
                                                                             
Denominator:
Average total Jabil Circuit, Inc.               $ 2,089,385      $ 1,882,810
stockholders’ equity (3)
Average notes payable and long-term debt,         1,657,192        1,112,560
less current installments (3)
Average current installments of notes payable     13,841           79,010
and long-term debt (3)
Average cash and cash equivalents (3)            (1,123,645 )   (875,258  )
Net invested capital asset base                 $ 2,636,773    $ 2,199,122 
                                                                             
Return on Invested Capital (GAAP)                 20.6       %     25.6      %
Adjustments noted above                           3.4        %     4.3       %
Core Return on Invested Capital (Non-GAAP)        24.0       %     29.9      %

          This amount is calculated by adding the amount of income taxes
  (1)  attributable to its operating income (GAAP) and its interest
          expense.
          This amount is calculated by adding the amount of income taxes
    (2)   attributable to its core operating income (Non-GAAP) and its
          interest expense.
          The average is based on the addition of the account balance at the
    (3)   end of the most recently-ended quarter to the account balance at the
          end of the prior quarter and dividing by two.

Contact:

Investor & Media Contact:
Jabil Circuit, Inc.
Beth Walters, 727-803-3511
Senior Vice President, Investor Relations & Communications
beth_walters@jabil.com