Jabil Circuit, Inc. Enters Amended and Restated Senior Unsecured Five Year Credit Agreement
Jul 10 15
On July 6, 2015, Jabil Circuit Inc. entered into an amended and restated senior unsecured five year credit agreement. The Agreement provides for a revolving credit facility in the initial amount of $1.5 billion, which may, subject to the lenders' discretion, potentially be increased up to $2.0 billion (the Revolving Credit Facility) and a $500.0 million five year delayed draw term loan facility (the Term Loan Facility and, together with the Revolving Credit Facility, the Credit Facilities). The Agreement was entered into among the Company, the initial lenders named therein, Citibank, N.A., as administrative agent, JPMorgan Chase Bank, N.A. and Bank of America, N.A., as co-syndication agents, and BNP Paribas, Mizuho Bank Ltd. and The Bank of Nova Scotia, as documentation agents. Most of the lenders under the Credit Facilities and their affiliates have various other relationships with the Company and its subsidiaries involving the provision of financial services, including cash management, loans, letter of credit and bank guarantee facilities, investment banking and trust services. The Company and some of its subsidiaries have entered into foreign exchange contracts and other derivative arrangements with certain of the lenders and their affiliates. In addition, most of the agents and lenders under the Credit Facilities held positions as agent and/or lender under the Company's Existing Credit Agreement. Two delayed draw term loans are available to be drawn until September 30, 2015 under the Term Loan Facility, and both of the Credit Facilities expire approximately five years from the date of closing, but in the case of the Revolving Credit Facility, subject to two one-year extension options (subject to the lenders' discretion). Interest and fees on Revolving Credit Facility and Term Loan Facility advances are based on the Company's non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor's Rating Service, Moody's Investor Service and Fitch Ratings all as more fully described in the Agreement. Interest is charged at a rate equal to (a) for the Revolving Credit Facility, either 0.000% to 0.650% above the base rate or 1.000% to 1.650% above the Eurocurrency rate and (b) for the Term Loan Facility, either 0.125% to 1.000% above the base rate or 1.125% to 2.000% above the Eurocurrency rate, in each case where the base rate represents the great of Citibank, N.A.'s base rate, 0.50% above the federal funds rate, and 1.0% above one-month LIBOR, but not less than zero, and the Eurocurrency rate represents adjusted LIBOR or adjusted CDOR, as applicable, for the applicable interest period, but not less than zero, each as more fully described in the Agreement. Fees include a facility fee based on the revolving credit commitments of the lenders, a letter of credit fee based on the amount of outstanding letters of credit and a ticking fee based on the undrawn term loan commitments until the earlier of September 30, 2015 and the date of the second term loan draw. Based on the Company's current non-credit enhanced long-term senior unsecured debt rating as determined by Standard & Poor's Rating Service, Moody's Investor Service and Fitch Ratings the current rates of interest for the Revolving Credit Facility are 0.175% above the base rate and 1.175% above the Eurocurrency rate and for the Term Loan Facility would be 0.375% above the base rate and 1.375% above the Eurocurrency rate (if any draws had been made to date under the Term Loan Facility). The Credit Facilities include various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers. As of the date of the Agreement, draws in the approximate amount of $790.0 million in revolving credit advances have been made and are outstanding under the Revolving Credit Facility and no draws of advances have been made and are outstanding under the Term Loan Facility.
Jabil Circuit Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended May 31, 2015; Provides Earnings Guidance for the Fourth Quarter and Full Year of Fiscal 2015
Jun 17 15
Jabil Circuit Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended May 31, 2015. For the quarter, the company's net revenue was $4,358,641,000 against $3,785,875,000 a year ago. Operating income was $135,422,000 against loss of $1,613,000 a year ago. Income from continuing operations before tax was $104,381,000 against loss of $34,180,000 a year ago. Income from continuing operations, net of tax was $72,257,000 or $0.37 diluted per share against loss of $52,888,000 or $0.26 diluted per share a year ago. Net income was $72,424,000 against $188,308,000 a year ago. Net income attributable to Jabil Circuit Inc. was $72,203,000 or $0.37 diluted per share against $188,255,000 or $0.93 diluted per share a year ago. Non-U.S. GAAP core earnings were $96,484,000 or $0.49 diluted per share against loss of $11,326,000 or $0.06 diluted per share a year ago. Return on invested capital was 13.9% against negative return on invested capital 2.6% a year ago. Non-U.S. GAAP core return on invested capital was 17.1% against 2.6% a year ago. Core EBITDA for the quarter was approximately $290 million or 6.7% of revenue. Net capital expenditures during the quarter were $259 million. Operating cash flow generation during the quarter was $358 million.
For the nine months, the company's net revenue was $13,218,382,000 against $11,705,901,000 a year ago. Operating income was $405,028,000 against $157,431,000 a year ago. Income from continuing operations before tax was $310,358,000 against $57,723,000 a year ago. Income from continuing operations, net of tax was $203,172,000 or $1.03 diluted per share against $16,800,000 or $0.08 diluted per share a year ago. Net income was $197,073,000 against $267,857,000 a year ago. Net income attributable to Jabil Circuit Inc. was $196,317,000 or $1.00 diluted per share against $267,510,000 or $1.30 diluted per share a year ago. Non-U.S. GAAP core earnings were $302,952,000 or $1.55 diluted per share against $97,939,000 or $0.48 diluted per share a year ago. Year-to-date EBITDA is $875 million, representing 6.6% of revenue. Capital expenditure investment was $722 million. Cash flows from operations for the nine months were $883 million.
The company expects revenue in the fourth quarter to be in the range of $4.45 billion to $4.65 billion, where at its midpoint an increase of 12% on a year-over-year basis. Core operating income is estimated to be in the range of $135 million to $165 million and core operating margin in the range of 3% to 3.5%. Core earnings per share are estimated to be in the range of $0.40 to $0.50 per diluted share, and GAAP earnings per share are expected to be in the range of $0.27 to $0.38 per diluted share. This is based upon a diluted share count of 197 million shares. Based on current estimates of production, the tax rate on core operating income is expected to be 26% for the quarter.
For the fiscal year 2015, the company revenue will grow 13% to $17.8 billion. The earnings per share estimate for the full fiscal year remains at $2.