CORRECTING and REPLACING Jabil Posts Third Quarter Results

  CORRECTING and REPLACING Jabil Posts Third Quarter Results

                       Strong Cash Flow from Operations

CORRECTION...by Jabil Circuit, Inc.

Business Wire

ST. PETERSBURG, Fla. -- June 19, 2013

In the chart labeled "Fiscal Q4 2013 Guidance, including Nypro acquisition:"
Net revenue should read: $4.45 billion to $4.65 billion (sted $4.55 billion to
$4.65 billion).

The corrected release reads:

                      JABIL POSTS THIRD QUARTER RESULTS

Today Jabil Circuit, Inc. (NYSE: JBL), announced preliminary, unaudited
financial results for its third quarter of fiscal year 2013. For the quarter,
Jabil’s revenue increased 5.1 percent to $4.5 billion, over the third quarter
of fiscal year 2012.

Jabil’s three reporting segments delivered the following revenue results for
the company’s third fiscal quarter:

  *Diversified Manufacturing: $1.8 billion.
  *Enterprise& Infrastructure: $1.4 billion.
  *High Velocity: $1.3 billion.

“We are pleased with our progress on the diversification of our business and
the positive benefits it affords the company,” said Jabil’s Chief Executive
Officer, Mark T. Mondello. “We expect this diversification to continue during
our fourth fiscal quarter as we finalize our acquisition of Nypro, which is
expected to close on the 1^st of July,” he said.

Other highlights from the quarter included producing $504 million cash flow
from operations. “Thanks to the dedication of our global workforce, we have
generated $810 million cash flow from operations year to date and are on track
to deliver $1 billion for our full fiscal year,” said Mondello.

Generally accepted accounting principles (GAAP) operating income for the third
quarter of fiscal year 2013 was $103.7 million and GAAP diluted earnings per
share were 24 cents. The company said that $28 million in restructuring
activity and a $26 million non-cash charge related to a note receivable and
related charges impacted GAAP operating income.

Core operating income results excluding amortization of intangibles,
stock-based compensation, restructuring and related charges and impairment of
notes receivable and related charges was $176.9 million and core diluted
earnings per share was 56 cents.

(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 related charges, impairment of notes receivable and
related 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 related charges, impairment of notes receivable and
related 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 and basic
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.)

Quarterly Results                 Q3 2013           Q3 2012
Net revenue                         $4.5 billion         $4.3 billion
GAAP operating income               $103.7 million       $156.6 million
GAAP net income                     $49.6 million        $101.6 million
GAAP diluted earnings per share     $0.24                $0.48
GAAP return on invested capital     12.0%               19.1%
Core operating income               $176.9 million       $190.3 million
Core earnings                       $115.6 million       $134.4 million
Core diluted earnings per share     $0.56                $0.64
Core return on invested capital     21.8%               24.0%

Fiscal Q4 2013 Guidance, including Nypro acquisition:
Net revenue                $4.45 billion to $4.65 billion
Core operating income         $165 million to $185 million
Core earnings per share       $0.50 to $0.58 per diluted share
GAAP operating income         $63 million to $83 million
GAAP earnings per share       $0.04 to $0.12 per diluted share

Jabil indicated it expects to incur Nypro-related acquisition costs and
purchase accounting adjustments of $10 million during its fourth fiscal
quarter. This sum is excluded from the above core operating guidance.

(GAAP earnings per share for the fourth quarter of fiscal 2013 are currently
estimated to include $0.02 per share for amortization of intangibles, $0.08
per share for stock-based compensation, $0.32 per share for restructuring and
related charges and $.04 for acquisition related charges and adjustments.)

Year over Year Segment Revenue Guidance:

  *Diversified Manufacturing Services to remain consistent.
  *Enterprise& Infrastructure to remain consistent.
  *High Velocity to increase fifteen percent.

In addition to the segment guidance, Jabil announced its intention to realign
its global operations to more appropriately reflect current market conditions
and customer needs. The company indicated that they began consultation with
employees during the third fiscal quarter. Jabil management did not provide
specific locations under consideration out of respect for employees, their
families and their representatives, and statutory and consultation periods
required. The company currently estimates that the realignment could result in
approximately $188 million of charges, including the $28 million of charges
incurred during the company’s third quarter. It is currently estimated that
$60 to $70 million will be recorded in Jabil’s fourth fiscal quarter of 2013
and the balance during its fiscal years 2014 and 2015. Jabil estimates that
the majority of the $140 million cash associated with these actions will be
used in fiscal 2014.

FORWARD LOOKING STATEMENT:This news release contains forward-looking
statements, including those regarding our anticipated financial results for
our third quarter of fiscal year 2013; the anticipated closing date of the
Nypro acquisition; the continuation of diversification during the fourth
fiscal quarter as the Nypro acquisition is finalized; and our currently
expected fourth quarter of fiscal year 2013 net revenue (including that of our
segments), core operating income, GAAP 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
third fiscal quarter of fiscal year 2013 that our financial results and
conditions differ from our current preliminary unaudited numbers set forth
herein; the Nypro transaction failing to close or closing later than expected;
our ability to diversify our business during the fourth fiscal quarter;
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 Forms 10-Q and 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 related charges,
impairment of notes receivable and related 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 and basic
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 third 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 June 19, 2013 at approximately 7:30 p.m. ET through midnight
on June 26, 2013. 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:
91127885. 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 30 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)
                                                              
                                                 May 31,
                                                 2013            August 31,

                                                 (Unaudited)     2012
ASSETS
Current assets:
Cash and cash equivalents                        $ 1,351,726     $ 1,217,256
Accounts receivable, net                           1,008,106       1,125,015
Inventories                                        2,356,304       2,268,949
Prepaid expenses and other current assets          1,044,557       989,326
Income taxes receivable                            11,988          10,949
Deferred income taxes                             35,508        27,833    
                                                                 
Total current assets                               5,808,189       5,639,328
                                                                 
Property, plant and equipment, net                 1,939,848       1,779,155
Goodwill and intangible assets, net                214,382         214,071
Deferred income taxes                              95,734          73,411
Other assets                                      75,331        97,176    
                                                                 
Total assets                                     $ 8,133,484    $ 7,803,141 
                                                                 
LIABILITIES AND EQUITY
Current liabilities:
Current installments of notes payable and        $ 9,459         $ 18,031
long-term debt
Accounts payable                                   3,085,848       2,992,865
Accrued expenses                                   954,488         808,480
Income taxes payable                               33,178          35,665
Deferred income taxes                             6,600         3,955     
                                                                 
Total current liabilities                          4,089,573       3,858,996
                                                                 
Notes payable and long-term debt, less current     1,651,359       1,658,326
installments
Other liabilities                                  78,265          85,714
Income tax liabilities                             81,558          68,525
Deferred income taxes                             25,710        24,245    
                                                                 
Total liabilities                                 5,926,465     5,695,806 
                                                                 
Commitments and contingencies

Equity:
Jabil Circuit, Inc. stockholders’ equity:
Preferred stock                                    —               —
Common stock                                       237             232
Additional paid-in capital                         1,816,335       1,752,847
Retained earnings                                  961,160         766,934
Accumulated other comprehensive income             98,616          106,275
Treasury stock, at cost                           (670,761  )    (521,231  )
                                                                 
Total Jabil Circuit, Inc. stockholders’ equity    2,205,587     2,105,057 
                                                                 
Noncontrolling interests                          1,432         2,278     
                                                                 
Total equity                                      2,207,019     2,107,335 
                                                                 
Total liabilities and equity                     $ 8,133,484    $ 7,803,141 

JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
(Unaudited)
                                              
                   Three months ended            Nine months ended
                   May 31,        May 31,       May 31,         May 31,
                    2013          2012         2013          2012

Net revenue        $ 4,467,767     $ 4,250,918   $ 13,522,036     $ 12,813,861
Cost of revenue     4,135,272     3,921,595    12,514,419     11,822,364
                                                                  
Gross profit         332,495         329,323       1,007,617        991,497
                                                                  
Operating
expenses:
Selling, general
and                  164,813         162,748       498,773          481,382
administrative
Research and         6,475           6,518         21,393           19,053
development
Amortization of      3,472           3,454         10,394           13,399
intangibles
Restructuring
and related          28,392          —             28,392           —
charges
Impairment of
notes receivable    25,597        —            25,597         —
and related
charges
Operating income     103,746         156,603       423,068          477,663
                                                                  
Interest and        31,850        27,628       92,827         83,227
other, net
                                                                  
Income before        71,896          128,975       330,241          394,436
income tax
                                                                  
Income tax          22,268        27,377       86,940         80,812
expense
                                                                  
Net income           49,628          101,598       243,301          313,624
                                                                  
Net (loss)
income
attributable to
noncontrolling      (455      )    278          (1,162     )    1,734
interests, net
of income tax
expense
                                                                  
Net income
attributable to    $ 50,083       $ 101,320     $ 244,463       $ 311,890
Jabil Circuit,
Inc.
                                                                  
Earnings per
share
attributable to
the stockholders
of Jabil
Circuit, Inc.:
Basic              $ 0.25         $ 0.49        $ 1.20          $ 1.51
Diluted            $ 0.24         $ 0.48        $ 1.18          $ 1.47
                                                                  
Weighted average
shares
outstanding:
Basic               202,648       206,298      203,142        206,326
Diluted             207,569       211,541      207,540        211,749

JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)
                                            
                                               Nine months ended
                                               May 31,         May 31,
                                               2013             2012
Cash flows from operating activities:
Net income                                     $ 243,301        $ 313,624
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                    295,710          262,186
Recognition of stock-based compensation          52,201           59,857
expense
Deferred income taxes                            (28,635    )     (10,573    )
Impairment of notes receivable and related       25,597           —
charges
Other, net                                       6,708            17,532
Changes in operating assets and liabilities,
exclusive of net assets acquired:
Accounts receivable                              113,134          (22,634    )
Inventories                                      (85,855    )     (162,076   )
Prepaid expenses and other current assets        (59,259    )     (201,715   )
Other assets                                     (1,497     )     (3,302     )
Accounts payable and accrued expenses            239,209          (52,439    )
Income taxes payable                            9,067          (8,933     )
                                                                
Net cash provided by operating activities       809,681        191,527    
                                                                
Cash flows from investing activities:
Acquisition of property, plant and equipment     (452,993   )     (291,792   )
Proceeds from sale of property, plant and        11,274           12,555
equipment
Cash paid for business and intangible asset      (9,662     )     (125,098   )
acquisitions, net of cash acquired
Cost of receivables acquired, net of cash        —                517
collections
Investments in non-marketable equity            (2,942     )    —          
securities
                                                                
Net cash used in investing activities           (454,323   )    (403,818   )
                                                                
Cash flows from financing activities:
Borrowings under debt agreements                 3,169,401        7,033,854
Payments towards debt agreements                 (3,184,810 )     (6,783,726 )
Payments to acquire treasury stock               (129,262   )     (70,991    )
Dividends paid to stockholders                   (51,743    )     (48,716    )
Dividends paid to noncontrolling interest        —                (333       )
Net proceeds from exercise of stock options
and issuance of common stock under employee      10,899           18,576
stock purchase plan
Treasury stock minimum tax withholding           (20,268    )     (31,181    )
related to vesting of restricted stock
Debt issuance costs                              —                (5,014     )
Excess tax benefit related to stock awards       330              750
Capital contribution to noncontrolling           316              —
interest
Cash paid to purchase noncontrolling            —              (20,501    )
interest
                                                                
Net cash (used in) provided by financing        (205,137   )    92,718     
activities
                                                                
Effect of exchange rate changes on cash and     (15,751    )    (26,909    )
cash equivalents
                                                                
Net increase (decrease) in cash and cash         134,470          (146,482   )
equivalents
Cash and cash equivalents at beginning of       1,217,256      888,611    
period
                                                                
Cash and cash equivalents at end of period     $ 1,351,726     $ 742,129    

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      Nine months ended
                               May 31,    May 31,       May 31,    May 31,
                               2013        2012          2013        2012

Operating income (GAAP)        $ 103,746   $ 156,603     $ 423,068   $ 477,663
Amortization of intangibles      3,472       3,454         10,394      13,399
Distressed customer charge       —           10,149        —           10,149
Stock-based compensation and     15,688      20,123        52,201      59,857
related charges
Restructuring and related        28,392      —             28,392      —
charges
Impairment of notes
receivable and related          25,597     —            25,597     —
charges
Core operating income          $ 176,895   $ 190,329     $ 539,652   $ 561,068
(Non-GAAP)
                                                                     
Net income attributable to     $ 50,083    $ 101,320     $ 244,463   $ 311,890
Jabil Circuit, Inc. (GAAP)
Amortization of intangibles,     3,186       3,180         9,837       13,099
net of tax
Distressed customer charge       —           10,149        —           10,149
Stock-based compensation and     16,042      19,792        52,115      58,656
related charges, net of tax
Restructuring and related        26,574      —             26,574      —
charges, net of tax
Impairment of notes
receivable and related          19,747     —            19,747     —
charges, net of tax
Core earnings (Non-GAAP)       $ 115,632   $ 134,441     $ 352,736   $ 393,794
                                                                     
Earnings per share: (GAAP)
Basic                          $ 0.25      $ 0.49        $ 1.20      $ 1.51
Diluted                        $ 0.24      $ 0.48        $ 1.18      $ 1.47
                                                                     
Core earnings per share:
(Non-GAAP)
Basic                          $ 0.57      $ 0.65        $ 1.74      $ 1.91
Diluted                        $ 0.56      $ 0.64        $ 1.70      $ 1.86
                                                                     
Weighted average shares
outstanding used in the
calculations of earnings per
share (GAAP and Non-GAAP):
Basic                           202,648    206,298      203,142    206,326
Diluted                         207,569    211,541      207,540    211,749

         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) its "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) its "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 calculations 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 ended
                                                May 31,         May 31,
                                                 2013           2012      
Numerator:
Operating income (GAAP)                         $ 103,746        $ 156,603
Tax effect (1)                                   (22,620    )    (27,625   )
After-tax operating income                        81,126           128,978
                                                x4               x4
Annualized after-tax operating income           $ 324,504       $ 515,912   
                                                                 
Core operating income (Non-GAAP)                $ 176,895        $ 190,329
Tax effect (2)                                   (30,101    )    (28,183   )
After-tax core operating income                   146,794          162,146
                                                x4               x4
Annualized after-tax core operating income      $ 587,176       $ 648,584   
                                                                 
Denominator:
Average total Jabil Circuit, Inc.               $ 2,190,845      $ 2,007,199
stockholders’ equity (3)
Average notes payable and long-term debt,         1,652,534        1,126,315
less current installments (3)
Average current installments of notes payable     59,529           289,010
and long-term debt (3)
Average cash and cash equivalents (3)            (1,206,691 )    (724,740  )
Net invested capital asset base                 $ 2,696,217     $ 2,697,784 
                                                                 
Return on Invested Capital (GAAP)                 12.0       %     19.1      %
Adjustments noted above                           9.8        %     4.9       %
Core Return on Invested Capital (Non-GAAP)        21.8       %     24.0      %

(1) This amount is calculated by adding the amount of income taxes
attributable to its operating income (GAAP) and its interest expense.

(2) This amount is calculated by adding the amount of income taxes
attributable to its core operating income (Non-GAAP) and its interest expense.

(3) The average is based on the addition of the account balance at the end of
the most recently-ended quarter to the account balance at the end of the prior
quarter and dividing by two.

Contact:

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