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Jabil Circuit, Inc.$29.44($.32)(1.08%)

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 Jabil Posts Fourth Quarter & Fiscal Year 2014 Results
   Wednesday, September 24, 2014 4:02:06 PM ET

Today Jabil Circuit, Inc. (JBL ), announced preliminary, unaudited financial results for its fourth quarter and full fiscal year, ended August 31, 2014.

"We saw strength from a variety of our end-markets in our fiscal fourth quarter and are pleased with the momentum of the business as we head into Fiscal 2015," said Jabil’s Chief Executive Officer, Mark Mondello.

The company reported fourth quarter revenue of $4.1 billion and fiscal year revenue of $15.8 billion.

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

-- Diversified Manufacturing Services: $1.8 billion.

-- Enterprise & Infrastructure: $1.4 billion.

-- High Velocity Systems: $0.9 billion.

Generally accepted accounting principles (GAAP) operating income for the fourth quarter of fiscal year 2014 was $46.6 million and GAAP net diluted loss per share was ($0.13) for the fourth quarter. The company indicated that $19.7 million in restructuring activity impacted the fourth quarter GAAP operating income.

GAAP operating income for the full fiscal year, ended August 31, 2014, was $204.1 million. GAAP net diluted earnings per share was $1.19 for the fiscal year. The company indicated that $85.4 million in restructuring costs during the year negatively impacted GAAP operating income and that $223.3 million in gain on sale of discontinued operations, net of tax positively impacted the fiscal year GAAP net income.

Core operating income (as defined below) for the full fiscal year was $345.4 million and core diluted earnings per share (as defined below) was $0.53.

(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, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges and goodwill impairment charges. Jabil defines core earnings as GAAP net (loss) income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, income (loss) from discontinued operations, gain 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 GAAP. Jabil calculates its 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 (loss) income and GAAP (loss) earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)

                                                                        
Quarterly Results:                                                                                        Q4 2014                                                                                             Q4 2013
Net revenue                                                                                               $4.1 billion                                                                                        $4.5 billion
GAAP operating income                                                                                     $46.6 million                                                                                       $72.6 million
GAAP net (loss) income                                                                                    ($26.2) million                                                                                     $127.0 million
GAAP net diluted (loss) earnings per share                                                                ($0.13)                                                                                             $0.61
GAAP return on invested capital                                                                           1.5%                                                                                                20.6%
Core operating income                                                                                     $79.5 million                                                                                       $159.2 million
Core earnings                                                                                             $10.2 million                                                                                       $95.2 million
Core diluted earnings per share                                                                           $0.05                                                                                               $0.46
Core return on invested capital                                                                           5.8%                                                                                                17.7%
                                                                                                                                                                                                               
Fiscal Year Results                                                                                       Fiscal 2014                                                                                         Fiscal 2013
Net revenue                                                                                               $15.8 billion                                                                                       $17.2 billion
GAAP operating income                                                                                     $204.1 million                                                                                      $452.4 million
GAAP net income                                                                                           $241.3 million                                                                                      $371.5 million
GAAP net diluted earnings per share                                                                       $1.19                                                                                               $1.79
GAAP return on invested capital                                                                           4.1%                                                                                                15.3%
Core operating income                                                                                     $345.4 million                                                                                      $642.1 million
Core earnings                                                                                             $108.1 million                                                                                      $397.8 million
Core diluted earnings per share                                                                           $0.53                                                                                               $1.91
Core return on invested capital                                                                           7.8%                                                                                                18.0%
                                                                                                                                                                                                               

Business Update

"Fiscal 2014 was a challenging year in which we made several tough, but thoughtful, decisions and investments. We believe these investments will support future growth opportunities for Jabil," said Mark Mondello, Chief Executive Officer. "We remain confident in our ability to deliver core earnings per share in the range of $1.65 to $1.95 in fiscal 2015," Mondello added.

Management maintains its fiscal year 2015 outlook of $1.65 to $1.95 core earnings per share. Jabil will be reporting its business in two segments: Electronics Manufacturing Services and Diversified Manufacturing Services. Electronics Manufacturing includes business formerly reported in High Velocity, Enterprise & Infrastructure and Industrial & Energy. Diversified Manufacturing will include Jabil’s Nypro businesses of healthcare & packaging, as well as its Green Point business, including mobility, consumer lifestyles and wearables.

Year over Year First Quarter Segment Revenue Guidance:

-- Diversified Manufacturing Services to increase 6 percent.

-- Electronics Manufacturing Services to decline 5 percent.

                                                 
Fiscal Q1 2015 Guidance:
Net revenue                                                                                                                                                                            $4.2 billion to $4.4 billion
GAAP operating income                                                                                                                                                                  $99 million to $139 million
GAAP net diluted earnings per share                                                                                                                                                    $0.24 to $0.40 per diluted share
Core operating income                                                                                                                                                                  $135 million to $165 million
Core earnings per share                                                                                                                                                                $0.41 to $0.53 per diluted share
                                                                                                                                                                                        

GAAP net diluted earnings per share for the first quarter of fiscal year 2015 are currently estimated to include $0.03 per share for amortization of intangibles, $0.07 per share for stock-based compensation expense and related charges and $0.03 to $0.07 per share for restructuring and related charges.

FORWARD LOOKING STATEMENT: This news release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter of fiscal year 2014 and full fiscal year 2014; the momentum of the business as we head into fiscal 2015; our belief that the investments we made in fiscal 2014 will support future growth opportunities for Jabil; our goal of delivering certain core earnings per share performance in fiscal 2015; and our currently expected first quarter of fiscal year 2015 net revenue (including that of our segments), core and 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 fourth quarter of fiscal year 2014 and our full fiscal year 2014 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; the occurrence of, success and expected financial results from, the expected multiple product ramps; 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 August 31, 2013, 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, distressed customer charges, acquisition costs and certain purchase accounting adjustments, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, income (loss) from discontinued operations, gain on sale of discontinued operations and 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 earnings for the fourth quarter and full fiscal year, ended August 31, 2014, 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 September 24, 2014 at approximately 7:30 p.m. ET through midnight on October 1, 2014. 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: 2929222. 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 and manufacturing product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 24 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)
                                                                                                                                                
                                                                                                                                August 31,
                                                                                                                                   2014                                                                       August 31,
                                                                                                                                (Unaudited)                                                                      2013
                                                                                                         ------------------------------------------------------                        ------------------------------------------------------
                                       ASSETS
Current assets:
    Cash and cash equivalents                                                                                               $      1,000,249                                                              $      1,011,373
    Accounts receivable, net                                                                                                       1,208,516                                                                     1,168,954
    Inventories                                                                                                                    2,008,077                                                                     2,118,716
    Prepaid expenses and other current assets                                                                                      1,035,162                                                                     1,141,919
    Income taxes receivable                                                                                                           22,400                                                                        12,269
    Deferred income taxes                                                                                                             64,944                                                                        45,650
 Assets of discontinued operations                                                                                 19,669                                 321,364  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
          Total current assets                                                                                                     5,359,017                                                                     5,820,245
Property, plant and equipment, net                                                                                                 2,271,705                                                                     2,309,320
Goodwill and intangible assets, net                                                                                                  627,700                                                                       609,445
Deferred income taxes                                                                                                                 92,702                                                                        91,383
Other assets                                                                                                                         128,622                                                                       100,801
Non-current assets of discontinued operations                                                              --                                 222,587  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
           Total assets                                                                                                     $      8,479,746                                           $      9,153,781  
                                                                                                         ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                        
                               LIABILITIES AND EQUITY
Current liabilities:
    Current installments of notes payable, long-term debt and capital                                                       $         12,960                                                              $        215,448
    lease obligations
    Accounts payable                                                                                                               3,060,814                                                                     3,191,328
    Accrued expenses                                                                                                               1,207,483                                                                     1,217,088
    Income taxes payable                                                                                                              27,623                                                                        38,323
    Deferred income taxes                                                                                                              5,094                                                                         6,004
 Liabilities of discontinued operations                                                                             7,123                                 196,243  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
          Total current liabilities                                                                                                4,321,097                                                                     4,864,434
Notes payable, long-term debt and capital lease obligations, less                                                                  1,669,585                                                                     1,690,418
current installments
Other liabilities                                                                                                                     79,471                                                                        77,145
Income tax liabilities                                                                                                                87,555                                                                        76,315
Deferred income taxes                                                                                                                 61,670                                                                        58,047
Non-current liabilities of discontinued operations                                                         --                                  31,855  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
          Total liabilities                                                                                     6,219,378                               6,798,214  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Commitments and contingencies
Equity:
 Jabil Circuit, Inc. stockholders’ equity:
      Preferred stock                                                                                                         --                                                                --
      Common stock                                                                                                                       244                                                                           238
      Additional paid-in capital                                                                                                   1,874,219                                                                     1,853,409
      Retained earnings                                                                                                            1,245,772                                                                     1,071,175
      Accumulated other comprehensive income                                                                                          86,962                                                                        81,248
      Treasury stock, at cost                                                                                    (965,369 )                                                 (670,783 )
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
          Total Jabil Circuit, Inc. stockholders’ equity                             2,241,828                               2,335,287  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Noncontrolling interests                                                                                           18,540                                  20,280  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
          Total equity                                                                                          2,260,368                               2,355,567  
                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------
          Total liabilities and equity                                                                                      $      8,479,746                                           $      9,153,781  
                                                                                                         ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                        
                                                                                                                                                                                                              
                                                                                                                                                                            JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                                                                                                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                          (in thousands, except for per share data)
                                                                                                                                                                                         (Unaudited)
                                                                                                                                                                                                                                                      
                                                                                                                                                   Three months ended                                                                                                                                          Twelve months ended
                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                August 31,                                                 August 31,                                                                    August 31,                                                 August 31,
                                                                                                                   2014                                                       2013                                                                          2014                                                       2013
                                                                                         ----------------------------------------------------------------------------- ---------------------------------------------------------                     ----------------------------------------------------------------------------- ---------------------------------------------------------
 
Net revenue                                                                                                 $      4,056,245                                                              $      4,513,694                                                              $     15,762,146                                                              $     17,249,493
Cost of revenue                                                                                 3,793,993            4,199,852                              14,736,543           16,037,303  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Gross profit                                                                                                         262,252                                                                       313,842                                                                     1,025,603                                                                     1,212,190
Operating expenses:
    Selling, general and administrative                                                                              177,934                                                                       172,513                                                                       675,730                                                                       614,295
    Research and development                                                                                           7,224                                                                         7,075                                                                        28,611                                                                        28,412
    Amortization of intangibles                                                                                        5,677                                                                         4,363                                                                        23,857                                                                        10,954
 Restructuring and related charges                                                                                    19,717                                                                        57,331                                                                        85,369                                                                        80,513
 Loss on disposal of subsidiaries                                                                                      5,057                                                                --                                                                         7,962                                                                --
 Impairment of notes receivable and related charges                                        --       --                          --               25,597  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Operating income                                                                                                      46,643                                                                        72,560                                                                       204,074                                                                       452,419
    Interest and other, net                                                                        32,243               32,558                                 131,951              125,305  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Income from continuing operations before tax                                                                          14,400                                                                        40,002                                                                        72,123                                                                       327,114
    Income tax expense (benefit)                                                                   32,788              (73,685 )                                                   73,711                7,631  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
(Loss) income from continuing operations, net of tax                                              (18,388 )                               113,687                                  (1,588 )                               319,483  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Discontinued operations:
 (Loss) income from discontinued operations, net of tax                                                                 (961 )                                                                      13,103                                                                        20,554                                                                        50,608
 (Loss) gain on sale of discontinued operations, net of tax                                        (6,243 )                        --                                 223,299       --  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Discontinued operations, net of tax                                                                (7,204 )                                13,103                                 243,853               50,608  
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net (loss) income                                                                                                    (25,592 )                                                                     126,790                                                                       242,265                                                                       370,091
Net income (loss) attributable to noncontrolling interests, net of                                    605                 (229 )                                                      952               (1,391 )
tax
                                                                                         -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net (loss) income attributable to Jabil Circuit, Inc.                                                       $        (26,197 )                                         $        127,019                                           $        241,313                        $        371,482  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                    
(Loss) earnings per share attributable to the stockholders of Jabil
Circuit, Inc.:
Basic:
  (Loss) income from continuing operations, net of tax                                                      $          (0.10 )                                         $           0.56                                           $          (0.01 )                                         $           1.58  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
  Discontinued operations, net of tax                                                                       $          (0.04 )                                         $           0.06                                           $           1.20                        $           0.25  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
  Net (loss) income                                                                                         $          (0.13 )                                         $           0.63                                           $           1.19                        $           1.83  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
Diluted:
  (Loss) income from continuing operations, net of tax                                                      $          (0.10 )                                         $           0.55                                           $          (0.01 )                                         $           1.54  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
  Discontinued operations, net of tax                                                                       $          (0.04 )                                         $           0.06                                           $           1.20                        $           0.24  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
  Net (loss) income                                                                                         $          (0.13 )                                         $           0.61                                           $           1.19                        $           1.79  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                    
Weighted average shares outstanding:
Basic                                                                                             198,053              202,959                                 202,497              203,096  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
Diluted                                                                                           198,053              208,502                                 202,497              207,815  
                                                                                         ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                        
                                                                            
                                                                                                 JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                            (In thousands)
                                                                                                              (Unaudited)
                                                                                                 
                                                                                                                                                          Twelve months ended
                                                                                                ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       August 31,                                                 August 31,
                                                                                                                          2014                                                                          2013
                                                                                                ------------------------------------------------------                        ------------------------------------------------------
Cash flows from operating activities:
    Net income                                                                                                     $        242,265                                                              $        370,091
    Adjustments to reconcile net income to net cash provided by
    operating activities:
       Depreciation and amortization                                                                                        487,278                                                                       418,117
       Gain on sale of discontinued operations                                                                             (230,878 )                                                              --
       Restructuring and related charges                                                                                     42,534                                                                         2,058
       Provision for allowance for doubtful accounts                                                                         16,268                                                                --
       Recognition of stock-based compensation expense and related charges                                                   10,624                                                                        68,383
       Deferred income taxes                                                                                                (38,971 )                                                                    (123,165 )
       Impairment of notes receivable and related charges                                                            --                                                                        25,597
       Excess tax benefits related to stock awards                                                                             (782 )                                                                     (14,605 )
       Loss on disposal of subsidiaries                                                                                       7,962                                                                --
       Other, net                                                                                                             6,916                                                                        10,558
    Changes in operating assets and liabilities, exclusive of net assets
    acquired:
       Accounts receivable                                                                                                 (116,458 )                                                                         750
       Inventories                                                                                                          160,790                                                                        50,229
       Prepaid expenses and other current assets                                                                             83,128                                                                       (82,756 )
       Other assets                                                                                                          (5,038 )                                                                      (5,025 )
       Accounts payable and accrued expenses                                                                               (177,586 )                                                                     485,972
       Income taxes                                                                                       10,805                                   7,685  
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
          Net cash provided by operating activities                                                      498,857                               1,213,889  
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
Cash flows from investing activities:
    Proceeds from sale of discontinued operations and subsidiaries, net                                                     531,189                                                                --
    of cash
    Acquisition of property, plant and equipment                                                                           (624,060 )                                                                    (736,858 )
    Cash paid for business and intangible asset acquisitions, net of                                                 --                                                                      (650,054 )
    cash acquired
    Proceeds from sale of property, plant and equipment                                                                     161,138                                                                        15,792
    Issuance of notes receivable                                                                                             (4,000 )                                                              --
    Investments in non-marketable equity securities                                                       (3,600 )                                                   (3,342 )
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
          Net cash provided by (used in) investing activities                                             60,667                              (1,374,462 )
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
Cash flows from financing activities:
    Borrowings under debt agreements                                                                                      6,175,953                                                                     5,764,400
    Payments towards debt agreements                                                                                     (6,400,089 )                                                                  (5,586,738 )
    Payments to acquire treasury stock                                                                                     (260,274 )                                                                    (129,262 )
    Dividends paid to stockholders                                                                                          (68,211 )                                                                     (67,181 )
    Net proceeds from exercise of stock options and issuance of common                                                       15,771                                                                        18,285
    stock under employee stock purchase plan
    Debt issuance costs                                                                                                      (2,936 )                                                              --
    Treasury stock minimum tax withholding related to vesting of                                                            (34,312 )                                                                     (20,290 )
    restricted stock
    Sale of noncontrolling interest, net of cash                                                                             (1,783 )                                                              --
    Cash paid to purchase noncontrolling interest                                                                            (1,720 )                                                                     (17,500 )
    Excess tax benefit related to stock awards                                                                                  782                                                                        14,605
    Capital contribution to noncontrolling interest                                                                  --                                                                           316
    Bank overdraft                                                                                --                                     372  
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
       Net cash used in financing activities                                                            (576,819 )                                                  (22,993 )
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
Effect of exchange rate changes on cash and cash equivalents                                               6,171                                 (22,317 )
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
Net decrease in cash and cash equivalents                                                                                   (11,124 )                                                                    (205,883 )
 Cash and cash equivalents at beginning of period                                                      1,011,373                               1,217,256  
                                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                               
Cash and cash equivalents at end of period                                                                         $      1,000,249                                           $      1,011,373  
                                                                                                ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                   
                                                                                                                             
                                                                                                                                                                           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                                                                                                                       Twelve months ended
                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               August 31,                                                 August 31,                                                                    August 31,                                                 August 31,
                                                                                                                  2014                                                       2013                                                                          2014                                                       2013
                                                                                        ----------------------------------------------------------------------------- ---------------------------------------------------------                     ----------------------------------------------------------------------------- ---------------------------------------------------------
 
Operating income (GAAP)                                                                                    $         46,643                                                              $         72,560                                                              $        204,074                                                              $        452,419
Amortization of intangibles                                                                                           5,677                                                                         4,363                                                                        23,857                                                                        10,954
Stock-based compensation expense and related charges                                                                  2,367                                                                        14,954                                                                         8,994                                                                        62,574
Restructuring and related charges                                                                                    19,717                                                                        57,331                                                                        85,369                                                                        80,513
Distressed customer charges                                                                                  --                                                                --                                                                        15,113                                                                --
Acquisition costs and certain purchase accounting adjustments                                                --                                                                        10,037                                                                --                                                                        10,037
Loss on disposal of subsidiaries                                                                                      5,057                                                                --                                                                         7,962                                                                --
Impairment of notes receivable and related charges                                                           --       --                          --               25,597  
                                                                                        ----------------------------------  -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Core operating income (Non-GAAP)                                                                           $         79,461                        $        159,245                                           $        345,369                        $        642,094  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                   
Net (loss) income attributable to Jabil Circuit, Inc. (GAAP)                                               $        (26,197 )                                                            $        127,019                                                              $        241,313                                                              $        371,482
Amortization of intangibles, net of tax                                                                               5,644                                                                       (19,634 )                                                                      20,728                                                                       (13,286 )
Stock-based compensation expense and related charges, net of tax                                                      2,019                                                                        15,151                                                                         7,903                                                                        62,737
Restructuring and related charges, net of tax                                                                        17,449                                                                        56,161                                                                        72,892                                                                        78,138
Distressed customer charges, net of tax                                                                                (991 )                                                              --                                                                        10,243                                                                --
Acquisition costs and certain purchase accounting adjustments, net                                           --                                                                       (70,358 )                                                                      (9,064 )                                                                     (70,358 )
of tax
Loss on disposal of subsidiaries, net of tax                                                                          5,057                                                                --                                                                         7,962                                                                --
Impairment of notes receivable and related charges, net of tax                                               --                                                                --                                                                --                                                                        19,742
Loss (income) from discontinued operations, net of tax                                                                  961                                                                       (13,103 )                                                                     (20,554 )                                                                     (50,608 )
Loss (gain) on sale of discontinued operations, net of tax                                         6,243       --                                (223,299 )                        --  
                                                                                        -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Core earnings (Non-GAAP)                                                                                   $         10,185                        $         95,236                                           $        108,124                        $        397,847  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                   
(Loss) earnings per share: (GAAP)
Basic                                                                                                      $          (0.13 )                                         $           0.63                                           $           1.19                        $           1.83  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
Diluted                                                                                                    $          (0.13 )                                         $           0.61                                           $           1.19                        $           1.79  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                   
Core earnings per share: (Non-GAAP)
Basic                                                                                                      $           0.05                        $           0.47                                           $           0.53                        $           1.96  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
Diluted                                                                                                    $           0.05                        $           0.46                                           $           0.53                        $           1.91  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                   
Weighted average shares outstanding used in the calculations of
earnings per share (GAAP):
Basic                                                                                            198,053              202,959                                 202,497              203,096  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
Diluted                                                                                          198,053              208,502                                 202,497              207,815  
                                                                                        ==================== ============== ==================== ==================== ==================== ============== ====================                      ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                   
Weighted average shares outstanding used in the calculations of                  
earnings per share (Non-GAAP):
Basic                                                           198,053 202,959                      202,497              203,096
                                                                ======= =======                      ======= ====================
Diluted                                                         199,967 208,502                      204,269              207,815
                                                                ======= =======                      ======= ====================
                                                                                                              

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 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" as its non-GAAP core operating income less a certain tax effect (the calculation of which is explained below). 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 its "average net invested capital asset base" as the sum of the averages (the calculations of which are explained below) of its stockholders’ equity, current and non-current portions of its notes payable, long-term debt and capital lease obligations 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                                                        Twelve months ended
                                                                                                           --------------------------------------------------                        --------------------------------------------------
                                                                                                                              August 31, 2014                                                           August 31, 2014
                                                                                                           -----------------------------------------------------                     -----------------------------------------------------
Numerator:
Operating income (GAAP)                                                                                                       $     46,643                                                              $    204,074
Tax effect (1)                                                                                                  (36,108 )                                              (77,693 )
                                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
After-tax operating income                                                                                                          10,535                                                                   126,381
                                                                                                                                        x4                                                     x1  
                                                                                                           ----------------------------------------------------                      ----------------------------------------------------
Annualized after-tax operating (loss) income                                                                                  $     42,140                                           $    126,381  
                                                                                                           ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                      
Core operating income (Non-GAAP)                                                                                              $     79,461                                                              $    345,369
Tax effect (2)                                                                                                  (37,553 )                                             (106,247 )
                                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
After-tax core operating income                                                                                                     41,908                                                                   239,122
                                                                                                                          x4                                                                   x1  
                                                                                                           ----------------------------------------------------                      ----------------------------------------------------
Annualized after-tax core operating income                                                                                    $    167,632                                           $    239,122  
                                                                                                           ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                      
Denominator:
Average total Jabil Circuit, Inc. stockholders’ equity (3)                                         $  2,325,519                                                              $  2,288,558
Average notes payable, long-term debt and capital lease obligations,                                                             1,671,053                                                                 1,680,002
less current installments (3)
Average current installments of notes payable, long-term debt and                                                                   41,423                                                                   114,204
capital lease obligations (3)
Average cash and cash equivalents (3)                                                                        (1,161,258 )                                           (1,005,811 )
                                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Net invested capital asset base                                                                                               $  2,876,737                                           $  3,076,953  
                                                                                                           ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                      
Return on Invested Capital (GAAP)                                                                                                      1.5 %                                                                     4.1 %
Adjustments noted above                                                                                                                4.3 %                                                                     3.7 %
Core Return on Invested Capital (Non-GAAP)                                                                                             5.8 %                                                                     7.8 %
                                                                                                                                                                                                                      

(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 for the three months ended August 31, 2014 and dividing by two. The average is based on the addition of the account balance at the end of the most recently-ended fiscal year to the account balance at the end of the prior fiscal year for the twelve months ended August 31, 2014 and dividing by two.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20140924006347r1&sid=cmtx6&distro=nx&lang=en

SOURCE: Jabil Circuit, Inc.

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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