Jabil Increases Current Share Repurchase
Authorization to $2.5 billion
Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited
financial results for its fourth quarter and fiscal year ended
August 31, 2023.
“The team delivered yet another solid year and I’m pleased with
the progress we’ve made relative to our financial objectives,” said
CEO Kenny Wilson. “As we move into the new fiscal year, I feel
strongly that we have the right team, capabilities, and diversified
portfolio to support good momentum into FY24 and beyond. And none
of this would be possible, without our thriving and unified Jabil
culture, which is as strong today as it’s ever been,” he added.
Fourth Quarter of Fiscal Year 2023 Highlights:
- Net revenue: $8.5 billion
- Diversified Manufacturing Services (DMS) year-on-year revenue
remained consistent
- Electronics Manufacturing Services (EMS) year-on-year revenue
decline: 13 percent
- U.S. GAAP operating income: $441 million
- U.S. GAAP diluted earnings per share: $1.15
- Core operating income (Non-GAAP): $477 million
- Core diluted earnings per share (Non-GAAP): $2.45
Fiscal Year 2023 Highlights:
- Net revenue: $34.7 billion
- Diversified Manufacturing Services (DMS) year-on-year revenue
growth: 8 percent
- Electronics Manufacturing Services (EMS) year-on-year revenue
remained consistent
- U.S. GAAP operating income: $1.5 billion
- U.S. GAAP diluted earnings per share: $6.02
- Core operating income (Non-GAAP): $1.7 billion
- Core diluted earnings per share (Non-GAAP): $8.63
First Quarter of Fiscal Year 2024 Outlook:
• Net revenue
$8.4 billion to $9.0 billion
• U.S. GAAP operating income
$423 million to $483 million
• U.S. GAAP diluted earnings per share
$2.02 to $2.42 per diluted share
• Core operating income (Non-GAAP) (1)
$474 million to $534 million
• Core diluted earnings per share
(Non-GAAP) (1)
$2.40 to $2.80 per diluted share
________________
(1)
Core operating income and core diluted
earnings per share exclude anticipated adjustments of $5 million
for amortization of intangibles (or $0.04 per diluted share) and
$46 million for stock-based compensation expense and related
charges (or $0.34 per diluted share).
Capital Framework Update
The Board of Directors has amended and increased the current
share repurchase program, which has approximately $776 million
outstanding as of August 31, 2023, to allow repurchase of up to
$2.5 billion in common stock. The shares will be repurchased from
time-to-time using various methods, including in the open market at
the Company's discretion and subject to market conditions and other
factors.
(Definitions: “U.S. GAAP” means U.S. generally accepted
accounting principles. Jabil defines core operating income as U.S.
GAAP operating income less amortization of intangibles, stock-based
compensation expense and related charges, restructuring, severance
and related charges, distressed customer charges, acquisition and
integration charges, loss on disposal of subsidiaries, settlement
of receivables and related charges, impairment of notes receivable
and related charges, goodwill impairment charges and business
interruption and impairment charges, net plus other components of
net periodic benefit cost. Jabil defines core earnings as core
operating income, less loss on debt extinguishment, loss (gain) on
securities, other components of net periodic benefit cost, income
(loss) from discontinued operations, gain (loss) on sale of
discontinued operations and 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 as determined
under U.S. GAAP. Jabil defines adjusted free cash flow as net cash
provided by (used in) operating activities less net capital
expenditures (acquisition of property, plant and equipment less
proceeds and advances from sale of property, plant and equipment).
Jabil reports core operating income, core earnings, core diluted
earnings per share and adjusted free cash flow to provide investors
an additional method for assessing operating income, earnings,
diluted earnings per share and free cash flow from what it believes
are its core manufacturing operations. See the accompanying
reconciliation of Jabil’s core operating income to its U.S. GAAP
operating income, its calculation of core earnings and core diluted
earnings per share to its U.S. GAAP net income and U.S. GAAP
earnings per share and additional information in the supplemental
information.)
Forward Looking Statements: This release contains
forward-looking statements, including those regarding our
anticipated financial results for our fourth quarter and full
fiscal year 2023 and our guidance for future financial performance
in our first quarter of fiscal year 2024 (including, net revenue,
U.S. GAAP operating income, U.S. GAAP diluted earnings per share,
core operating income (Non-GAAP), core diluted earnings per share
(Non-GAAP) results and the components thereof, including but not
limited to amortization of intangibles and stock-based compensation
expense and related charges). The statements in this release are
based on current expectations, forecasts and assumptions involving
risks and uncertainties that could cause actual outcomes and
results to differ materially from our current expectations. Such
factors include, but are not limited to: our determination as we
finalize our financial results for our fourth quarter and full
fiscal year 2023 that our financial results and conditions differ
from our current preliminary unaudited numbers set forth herein;
scheduling production, managing growth and capital expenditures and
maximizing the efficiency of our manufacturing capacity
effectively; managing rapid declines or increases in customer
demand and other related customer challenges that may occur; the
scope and duration of the COVID-19 outbreak and its impact on our
operations, sites, customers and supply chain; our dependence on a
limited number of customers; our ability to purchase components
efficiently and reliance on a limited number of suppliers for
critical components; risks arising from relationships with emerging
companies; changes in technology and competition in our industry;
our ability to introduce new business models or programs requiring
implementation of new competencies; competition; transportation
issues; our ability to maintain our engineering, technological and
manufacturing expertise; retaining key personnel; risks associated
with international sales and operations, including geopolitical
uncertainties in Russia and Ukraine; energy price increases or
shortages; our ability to achieve expected profitability from
acquisitions; risk arising from our restructuring activities;
issues involving our information systems, including security
issues; regulatory risks (including the expense of complying, or
failing to comply, with applicable regulations; risk arising from
design or manufacturing defects; and intellectual property risk);
financial risks (including customers or suppliers who become
financially troubled; turmoil in financial markets; tax risks;
credit rating risks; risks of exposure to debt; currency
fluctuations; and asset impairment); changes in financial
accounting standards or policies; and risk of natural disaster,
climate change or other global events. Additional factors that
could cause such differences can be found in our Annual Report on
Form 10-K for the fiscal year ended August 31, 2022 and our other
filings with the Securities and Exchange Commission. We assume no
obligation to update these forward-looking statements.
Supplemental Information Regarding Non-GAAP Financial
Measures: Jabil provides supplemental, non-GAAP financial
measures in this release to facilitate evaluation of Jabil’s core
operating performance. These non-GAAP measures exclude certain
amounts that are included in the most directly comparable U.S. GAAP
measures, do not have standard meanings and may vary from the
non-GAAP financial measures used by other companies. Management
believes these “core” financial measures are useful measures that
facilitate evaluation of the past and future performance of Jabil’s
ongoing operations on a comparable basis.
Jabil reports core operating income, core earnings, core diluted
earnings per share and adjusted free cash flows to provide
investors an additional method for assessing operating income,
earnings, earnings per share and free cash flow from what it
believes are its core manufacturing operations. Among other uses,
management uses non-GAAP financial measures to make operating
decisions, assess business performance and as a factor in
determining certain employee performance when determining incentive
compensation.
For fiscal year 2023, the Company adopted an annual normalized
tax rate (“normalized core tax rate”) for the computation of the
non-GAAP (core) income tax provision to provide better consistency
across reporting periods. In estimating the normalized core tax
rate annually, the Company utilizes a full-year financial
projection of core earnings that considers the mix of earnings
across tax jurisdictions, existing tax positions, and other
significant tax matters. The Company may adjust the normalized core
tax rate during the year for material impacts from new tax
legislation or material changes to the Company’s operations.
Prior to fiscal year 2023, the Company determined the tax effect
of the items included and excluded from core earnings
quarterly.
Detailed definitions of certain of the core financial measures
are included above under “Definitions” and a reconciliation of the
disclosed core financial measures to the most directly comparable
U.S. GAAP financial measures is included under the heading
“Supplemental Data” at the end of this release.
Meeting and Replay Information: Jabil will hold a
conference call today at 8:30 a.m. ET to discuss its earnings for
the fourth quarter and full fiscal year ended August 31, 2023 and
to provide an investor briefing. To access the live audio webcast
and view the accompanying slide presentation, visit the Investor
Relations section of Jabil's website, located at
https://investors.jabil.com. An archived replay of the webcast will
also be available after completion of the call.
About Jabil: Jabil (NYSE: JBL) is a manufacturing
solutions provider with over 250,000 employees across 100 locations
in 30 countries. The world’s leading brands rely on Jabil’s
unmatched breadth and depth of end-market experience, technical and
design capabilities, manufacturing know-how, supply chain insights
and global product management expertise. Driven by a common
purpose, Jabil and its people are committed to making a positive
impact on their local community and the environment. Visit
www.jabil.com to learn more.
JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)
August 31, 2023
(unaudited)
August 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
1,804
$
1,478
Accounts receivable, net
3,647
3,995
Contract assets
1,035
1,196
Inventories, net
5,206
6,128
Prepaid expenses and other current
assets
1,109
1,111
Assets held for sale
1,929
—
Total current assets
14,730
13,908
Property, plant and equipment, net
3,137
3,954
Operating lease right-of-use asset
367
500
Goodwill and intangible assets, net
763
862
Deferred income taxes
159
199
Other assets
268
294
Total assets
$
19,424
$
19,717
LIABILITIES AND EQUITY
Current liabilities:
Current installments of notes payable and
long-term debt
$
—
$
300
Accounts payable
5,679
8,006
Accrued expenses
5,515
5,272
Current operating lease liabilities
104
119
Liabilities held for sale
1,397
—
Total current liabilities
12,695
13,697
Notes payable and long-term debt, less
current installments
2,875
2,575
Other liabilities
319
272
Non-current operating lease
liabilities
269
417
Income tax liabilities
131
182
Deferred income taxes
268
122
Total liabilities
16,557
17,265
Commitments and contingencies
Equity:
Jabil Inc. stockholders’ equity:
Preferred stock
—
—
Common stock
—
—
Additional paid-in capital
2,795
2,655
Retained earnings
4,412
3,638
Accumulated other comprehensive loss
(17
)
(42
)
Treasury stock, at cost
(4,324
)
(3,800
)
Total Jabil Inc. stockholders’ equity
2,866
2,451
Noncontrolling interests
1
1
Total equity
2,867
2,452
Total liabilities and equity
$
19,424
$
19,717
JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions,
except for per share data) (Unaudited)
Three Months Ended
Fiscal Year Ended
August 31, 2023
August 31, 2022
August 31, 2023
August 31, 2022
Net revenue
$
8,458
$
9,030
$
34,702
$
33,478
Cost of revenue
7,692
8,301
31,835
30,846
Gross profit
766
729
2,867
2,632
Operating expenses:
Selling, general and administrative
295
284
1,206
1,154
Research and development
9
8
34
33
Amortization of intangibles
9
10
33
34
Restructuring, severance and related
charges
12
18
57
18
Operating income
441
409
1,537
1,393
Loss on debt extinguishment
—
—
—
4
Interest and other, net
71
57
275
158
Income before income tax
370
352
1,262
1,231
Income tax expense
215
37
444
235
Net income
155
315
818
996
Net income attributable to noncontrolling
interests, net of tax
—
—
—
—
Net income attributable to Jabil Inc.
$
155
$
315
$
818
$
996
Earnings per share attributable to the
stockholders of Jabil Inc.:
Basic
$
1.18
$
2.30
$
6.15
$
7.06
Diluted
$
1.15
$
2.25
$
6.02
$
6.90
Weighted average shares outstanding:
Basic
131.2
137.0
133.0
141.2
Diluted
134.1
140.3
135.9
144.4
JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in
millions)
(Unaudited)
Fiscal Year Ended
August 31, 2023
August 31, 2022
Cash flows provided by operating
activities:
Net income
$
818
$
996
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
924
925
Restructuring and related charges
5
(1
)
Recognition of stock-based compensation
expense and related charges
95
81
Deferred income taxes
85
(13
)
Other, net
13
10
Change in operating assets and
liabilities, exclusive of net assets acquired:
Accounts receivable
267
(878
)
Contract assets
171
(214
)
Inventories
370
(1,725
)
Prepaid expenses and other current
assets
(214
)
(367
)
Other assets
53
(29
)
Accounts payable, accrued expenses and
other liabilities
(853
)
2,866
Net cash provided by operating
activities
1,734
1,651
Cash flows used in investing
activities:
Acquisition of property, plant and
equipment
(1,030
)
(1,385
)
Proceeds and advances from sale of
property, plant and equipment
322
544
Cash paid for business and intangible
asset acquisitions, net of cash
(29
)
(18
)
Proceeds from the divestiture of
businesses
50
—
Cash receipts on repurchased
receivables
—
4
Other, net
(36
)
(3
)
Net cash used in investing activities
(723
)
(858
)
Cash flows used in financing
activities:
Borrowings under debt agreements
4,047
3,767
Payments toward debt agreements
(4,204
)
(3,890
)
Payments to acquire treasury stock
(487
)
(696
)
Dividends paid to stockholders
(45
)
(48
)
Net proceeds from exercise of stock
options and issuance of common stock under employee stock purchase
plan
51
45
Treasury stock minimum tax withholding
related to vesting of restricted stock
(36
)
(44
)
Other, net
(6
)
(22
)
Net cash used in financing activities
(680
)
(888
)
Effect of exchange rate changes on cash
and cash equivalents
(5
)
6
Net increase (decrease) in cash and cash
equivalents
326
(89
)
Cash and cash equivalents at beginning of
period
1,478
1,567
Cash and cash equivalents at end of
period
$
1,804
$
1,478
JABIL INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO
NON-GAAP MEASURES (in millions, except for per share data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
August 31, 2023
August 31, 2022
August 31, 2023
August 31, 2022
Operating income (U.S. GAAP)
$
441
$
409
$
1,537
$
1,393
Amortization of intangibles
9
10
33
34
Stock-based compensation expense and
related charges
15
14
95
81
Restructuring, severance and related
charges
12
18
57
18
Net periodic benefit (credit) cost(1)
—
(4
)
11
17
Adjustments to operating income
36
38
196
150
Core operating income
(Non-GAAP)
$
477
$
447
$
1,733
$
1,543
Net income attributable to Jabil Inc.
(U.S. GAAP)
$
155
$
315
$
818
$
996
Adjustments to operating income
36
38
196
150
Loss on debt extinguishment
—
—
—
4
Net periodic benefit credit (cost)(1)
—
4
(11
)
(17
)
Adjustments for taxes(2)
137
(28
)
169
(28
)
Core earnings (Non-GAAP)
$
328
$
329
$
1,172
$
1,105
Diluted earnings per share (U.S. GAAP)
$
1.15
$
2.25
$
6.02
$
6.90
Diluted core earnings per share
(Non-GAAP)
$
2.45
$
2.34
$
8.63
$
7.65
Diluted weighted average shares
outstanding (U.S. GAAP and Non-GAAP)
134.1
140.3
135.9
144.4
________________
(1)
Pension service cost is recognized in cost
of revenue and all other components of net periodic benefit cost,
including return on plan assets, are presented in other expense. We
are reclassifying the pension components in other expense to core
operating income as we assess operating performance, inclusive of
all components of net periodic benefit cost, with the related
revenue. There is no impact to core earnings or diluted core
earnings per share for this adjustment.
(2)
The adjustments for taxes for the three
months and fiscal year ended August 31, 2023, primarily relate to a
change in the indefinite reinvestment assertion associated with
operations that have been classified as held for sale.
JABIL INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA ADJUSTED FREE CASH FLOW (in millions)
(Unaudited)
Fiscal Year Ended
August 31, 2023
August 31, 2022
Net cash provided by operating
activities (U.S. GAAP)
$
1,734
$
1,651
Acquisition of property, plant and
equipment (“PP&E”)(1)
(1,030
)
(1,385
)
Proceeds and advances from sale of
PP&E(1)
322
544
Adjusted free cash flow
(Non-GAAP)
$
1,026
$
810
________________
(1)
Certain customers co-invest in property,
plant and equipment (“PP&E”) with us. As we acquire PP&E,
we recognize the cash payments in acquisition of PP&E. When our
customers reimburse us and obtain control, we recognized the cash
receipts in proceeds and advances from the sale of PP&E.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230928640106/en/
Investor Contact Adam Berry Vice President, Investor
Relations (727) 577-9749 Adam_Berry@jabil.com
Jabil (NYSE:JBL)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Jabil (NYSE:JBL)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024