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Jabil Circuit, Inc.$29.48($.60)(1.99%)

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 Jabil Delivers Solid Fourth Quarter & Fiscal Year 2015 Results
   Thursday, September 24, 2015 4:02:00 PM ET

Today Jabil Circuit, Inc. (JBL ), announced preliminary, unaudited financial results for its fourth quarter and full fiscal year, ended August 31, 2015. The company reported fourth quarter net revenue of $4.7 billion and fiscal year net revenue of $17.9 billion.

"I am extremely pleased with our fiscal 2015 results and in particular the financial strength demonstrated as we exited the year. We exceeded nearly every financial target provided at the outset of the year, culminating with core earnings per share of $2.07 and free cash flow of approximately $300 million," said Mark T. Mondello, Chief Executive Officer. "Our strong cash generation provided us the financial flexibility to complete a number of strategic acquisitions, aggressively re-invest in the business and return approximately $150 million to shareholders via dividend and share repurchases," he added.

Fiscal 2015 Financial Highlights

-- Total Company revenue of $17.9 billion, an increase of 14% year-over-year. -- Diversified Manufacturing Services revenue: $7.1 billion, an increase of 39% year-over-year.

-- Electronics Manufacturing Services revenue: $10.8 billion, an increase of 1% year-over-year.

-- Generated $1.24 billion in cash flow from operations.

-- Returned approximately $150 million to shareholders via dividend and share repurchases.

For the fourth quarter of fiscal year 2015, U.S. generally accepted accounting principles (U.S. GAAP) operating income was $150.4 million and U.S. GAAP net diluted earnings per share was $0.45. For fiscal year 2015, U.S. GAAP operating income was $555.4 million and U.S. GAAP net diluted earnings per share was $1.45.

For the fourth quarter of fiscal year 2015, core operating income (as defined below) was $162.9 million and core diluted earnings per share (as defined below) was $0.53. For fiscal year 2015, core operating income (as defined below) was $670.0 million and core diluted earnings per share (as defined below) was $2.07.

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

-- Diversified Manufacturing Services: $1.9 billion.

-- Electronics Manufacturing Services: $2.8 billion.

(Definitions used: "U.S. GAAP" means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. 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 U.S. GAAP net 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 (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 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 of its 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 U.S. GAAP operating income, its calculation of core earnings and core diluted earnings per share to its U.S. GAAP net income (loss) and U.S. GAAP earnings (loss) per share, its calculation of core return on invested capital and additional information in the supplemental information.)

Quarterly Results                                     Q4 2015              Q4 2014
Net revenue                                                                                                    $4.7 billion                                               $4.1 billion
U.S. GAAP operating income                                                                                     $150.4 million                                             $46.6 million
U.S. GAAP net income (loss)                                                                                    $87.7 million                                              $(26.2) million
U.S. GAAP net diluted earnings (loss) per share                                                                $0.45                                                      $(0.13)
U.S. GAAP return on invested capital                                                                           15.9%                                                      1.5%
Core operating income                                                                                          $162.9 million                                             $79.5 million
Core earnings                                                                                                  $103.2 million                                             $10.2 million
Core diluted earnings per share                                                                                $0.53                                                      $0.05
Core return on invested capital                                                                                17.6%                                                      5.8%
                                                                                                                                                                           
Fiscal Year Results                                                                                            Fiscal Year 2015                                           Fiscal Year 2014
Net revenue                                                                                                    $17.9 billion                                              $15.8 billion
U.S. GAAP operating income                                                                                     $555.4 million                                             $204.1 million
U.S. GAAP net income                                                                                           $284.0 million                                             $241.3 million
U.S. GAAP net diluted earnings per share                                                                       $1.45                                                      $1.19
U.S. GAAP return on invested capital                                                                           14.0%                                                      4.1%
Core operating income                                                                                          $670.0 million                                             $345.4 million
Core earnings                                                                                                  $406.2 million                                             $108.1 million
Core diluted earnings per share                                                                                $2.07                                                      $0.53
Core return on invested capital                                                                                17.8%                                                      7.8%

Business Outlook

"Our team is positioned for another solid year in fiscal 2016," said Mark T. Mondello, Chief Executive Officer. "Jabil’s strong first quarter guidance can be directly attributed to the commitment of our employees, the exceptional brands we serve and a focused pursuit of our growth strategy," he added. Management anticipates fiscal year 2016 revenue of approximately $20 billion and core diluted earnings per share of $2.60.

First Quarter of Fiscal Year 2016 Guidance

-- Net revenue                                      $5.1 billion to $5.3 billion
-- U.S. GAAP operating income                                                                                                   $188 million to $232 million
-- U.S. GAAP net diluted earnings per share                                                                                     $0.56 to $0.74 per diluted share
-- Core operating income                                                                                                        $220 million to $260 million
-- Core diluted earnings per share                                                                                              $0.72 to $0.88 per diluted share
-- Diversified Manufacturing Services                                                                                           Increase revenue 33% percent year-over-year
-- Electronics Manufacturing Services                                                                                           Consistent revenue year-over-year

(U.S. GAAP net diluted earnings per share for the first quarter of fiscal year 2016 are currently estimated to include $0.03 per share for amortization of intangibles, $0.10 per share for stock-based compensation expense and related charges and $0.03 to $0.01 per share for restructuring and related charges.)

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter of fiscal year 2015 and full fiscal year 2015; our positioning for future financial performance in fiscal 2016; our delivery of revenue growth and core earnings per share for fiscal 2016; our currently expected fiscal year 2016 net revenue (including that of our segments), core and U.S. GAAP operating income, core and U.S. GAAP diluted 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 2015 and our full fiscal year 2015 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, 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 engineering 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, 2014, 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 U.S. GAAP. In addition to the U.S. GAAP financial measures, Jabil provides supplemental, non-U.S. GAAP financial measures to facilitate evaluation of Jabil’s core operating performance. The non-U.S. GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable U.S. GAAP measures. The non-U.S. GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-U.S. 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 (loss) 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 U.S. 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, 2015, 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, 2015 at approximately 7:30 p.m. ET through midnight on October 1, 2015. 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: 16275444. 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, production and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 27 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,
                                                                                                                               2015                                                                   August 31,
                                                                                                                            (Unaudited)                                                                  2014
                                                                                                       -----------------------------------------------------                     ----------------------------------------------------
                                      ASSETS
Current assets:
    Cash and cash equivalents                                                                                             $    913,963                                                              $ 1,000,249
    Accounts receivable, net                                                                                                 1,467,247                                                                1,208,516
    Inventories                                                                                                              2,507,264                                                                2,008,077
    Prepaid expenses and other current assets                                                                                  898,790                                                                1,057,562
    Deferred income taxes                                                                                                       79,045                                                                   64,944
    Assets of discontinued operations                                                                            --                             19,669  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
            Total current assets                                                                                             5,866,309                                                                5,359,017
Property, plant and equipment, net                                                                                           2,804,333                                                                2,271,705
Goodwill and intangible assets, net                                                                                            745,918                                                                  627,700
Deferred income taxes                                                                                                           85,169                                                                   92,702
Other assets                                                                                                101,478                            128,622  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
            Total assets                                                                                                  $  9,603,207                                           $ 8,479,746  
                                                                                                       ==================== ========== ====================                      ==================== ========= ====================
                              LIABILITIES AND EQUITY
Current liabilities:
    Current installments of notes payable, long-term debt and capital                                                     $    323,833                                                              $    12,960
    lease obligations
    Accounts payable                                                                                                         3,663,264                                                                3,060,814
    Accrued expenses                                                                                                         1,685,589                                                                1,235,106
    Deferred income taxes                                                                                                        2,455                                                                    5,094
    Liabilities of discontinued operations                                                                       --                              7,123  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
            Total current liabilities                                                                                        5,675,141                                                                4,321,097
Notes payable, long-term debt and capital lease obligations, less                                                            1,346,558                                                                1,669,585
current installments
Other liabilities                                                                                                               67,951                                                                   79,471
Income tax liabilities                                                                                                          96,379                                                                   87,555
Deferred income taxes                                                                                        82,167                             61,670  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
        Total liabilities                                                                                 7,268,196                          6,219,378  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
Commitments and contingencies
Equity:
    Jabil Circuit, Inc. stockholders’ equity:
    Preferred stock                                                                                                                 --                                                                       --
    Common stock                                                                                                                   247                                                                      244
    Additional paid-in capital                                                                                               1,955,104                                                                1,874,219
    Retained earnings                                                                                                        1,468,910                                                                1,245,772
    Accumulated other comprehensive (loss) income                                                                              (50,854 )                                                                 86,962
    Treasury stock, at cost                                                                              (1,058,551 )                                            (965,369 )
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
        Total Jabil Circuit, Inc. stockholders’ equity                                            2,314,856                                                                2,241,828
    Noncontrolling interests                                                                                 20,155                             18,540  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
        Total equity                                                                                      2,335,011                          2,260,368  
                                                                                                       -------------------- ---------- --------------------                      -------------------- --------- --------------------
        Total liabilities and equity                                                                                      $  9,603,207                                           $ 8,479,746  
                                                                                                       ==================== ========== ====================                      ==================== ========= ====================
                                                                                                                                                                                                                 
 
                                                                                                                                                           JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                                                                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                         (in thousands, except for per share data)
                                                                                                                                                                        (Unaudited)
                                                                                                                     
                                                                                                                          Three months ended                                                                                                                              Fiscal year ended
                                                                ---------------------------------------------------------------------------------------------------------------------------------------  --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     August 31,                                                                    August 31,                                                 August 31,                                                                August 31,
                                                                             2015                                                       2014                                     2015                                                   2014                                  
                                                                ---------------------------------------------------                      -------------------------------------------------------------   ----------------------------------------------------   ------------------------------------------------------------------------------------------
Net revenue                                                                        $ 4,680,813                                                    $                      4,056,245                                           $ 17,899,196                                 $                                                 15,762,146
Cost of revenue                                                   4,304,239                                     3,793,993       16,395,978                                             14,736,543  
                                                                -------------------- ------------------------------                      -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Gross profit                                                                           376,574                                                                            262,252                                              1,503,218                                                                                    1,025,603
Operating expenses:
    Selling, general and administrative                                                209,465                                                                            177,934                                                862,647                                                                                      675,730
    Research and development                                                             8,142                                                                              7,224                                                 27,645                                                                                       28,611
    Amortization of intangibles                                                          7,352                                                                              5,677                                                 24,449                                                                                       23,857
    Restructuring and related charges                                                    1,232                                                                             19,717                                                 33,066                                                                                       85,369
    Loss on disposal of subsidiaries                                                          --                                      5,057                                    --                                                7,962  
                                                                -------------------- -------------------------------                     -------------------------------------------------------------   -------------------- --------------------------------  ------------------------------------------------------------------------------------------
Operating income                                                                       150,383                                                                             46,643                                                555,411                                                                                      204,074
Interest and other, net                                              29,095                                       32,243          123,765                                                131,951  
                                                                -------------------- ------------------------------                      -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Income from continuing operations before tax                                           121,288                                                                             14,400                                                431,646                                                                                       72,123
Income tax expense                                                   30,276                                       32,788          137,461                                                 73,711  
                                                                -------------------- ------------------------------                      -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Income (loss) from continuing operations, net of tax                 91,012                                      (18,388 )                           294,185                                                 (1,588 )
                                                                -------------------- ------------------------------                      -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Discontinued operations:
    (Loss) income from discontinued operations, net of tax                              (2,473 )                                                                             (961 )                                               (7,698 )                                                                                     20,554
    (Loss) gain on sale of discontinued operations, net of tax                                --                                     (6,243 )                              (875 )                                                                 223,299  
                                                                -------------------- -------------------------------                     -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Discontinued operations, net of tax                                  (2,473 )                                                        (7,204 )                            (8,573 )                                                                 243,853  
                                                                -------------------- ------------------------------                      -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Net income (loss)                                                                       88,539                                                                            (25,592 )                                              285,612                                                                                      242,265
Net income attributable to noncontrolling interests, net of tax         837                                          605            1,593                                                    952  
                                                                -------------------- ------------------------------                      -------------------------------------------------------------   -------------------- -------------------------------   ------------------------------------------------------------------------------------------
Net income (loss) attributable to Jabil Circuit, Inc.                              $    87,702                                 $    (26,197 )                                         $    284,019              $                                 241,313  
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
Earnings per share attributable to the stockholders of Jabil
    Circuit, Inc.:
      Basic:
        Income (loss) from continuing operations, net of tax                       $      0.47                                 $      (0.10 )                                         $       1.51              $                                   (0.01 )
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
        Discontinued operations, net of tax                                        $     (0.01 )                                                  $      (0.04 )                                         $      (0.04 )                               $                                    1.20  
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
        Net income (loss)                                                          $      0.45                                 $      (0.13 )                                         $       1.47              $                                    1.19  
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
      Diluted:
        Income (loss) from continuing operations, net of tax                       $      0.46                                 $      (0.10 )                                         $       1.49              $                                   (0.01 )
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
        Discontinued operations, net of tax                                        $     (0.01 )                                                  $      (0.04 )                                         $      (0.04 )                               $                                    1.20  
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
        Net income (loss)                                                          $      0.45                                 $      (0.13 )                                         $       1.45              $                                    1.19  
                                                                ==================== ==============================                      ========== ==================== =============================   ==================== ===============================   ========== ==================== ==========================================================
                                                                                                                                                                                                                                                                                                 
Weighted average shares outstanding:
    Basic                                                           193,904                                      198,053          193,689                                                202,497  
                                                                ==================== ==============================                      =============================================================   ==================== ===============================   ==========================================================================================
    Diluted                                                         196,351                                      198,053          196,005                                                202,497  
                                                                ==================== ==============================                      =============================================================   ==================== ===============================   ==========================================================================================
 
                                                                                                                                                           JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                                                                                      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                      (in thousands)
                                                                                                                                                                        (Unaudited)
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                          Fiscal year ended
                                                                                                                                                                                                         --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                               August 31,                                                                  August 31,
                                                                                                                                                                                                                                        2015                                                     2014               
                                                                                                                                                                                                         --------------------------------------------------------------------------------------       ----------------------------------------------------
Cash flows from operating activities:
    Net income                                                                                                                                                                                                              $                                      285,612                                               $    242,265
    Adjustments to reconcile net income to net cash provided by
    operating activities:
        Depreciation and amortization                                                                                                                                                                                                                              529,176                                                    487,278
        Gain on sale of discontinued operations                                                                                                                                                                                                                                              --                              (230,878 )
        Restructuring and related charges                                                                                                                                                                                                                            4,445                                                     42,534
        Provision for allowance for doubtful accounts                                                                                                                                                                                                                9,752                                                     16,268
        Recognition of stock-based compensation expense and related charges                                                                                                                                                                                         62,560                                                     10,624
        Deferred income taxes                                                                                                                                                                                                                                      (10,912 )                                                  (38,971 )
        Excess tax benefit related to stock awards                                                                                                                                                                                                                    (246 )                                                     (782 )
        Loss on disposal of subsidiaries                                                                                                                                                                                                                                                     --                                 7,962
        Loss (gain) on sale of property, plant and equipment                                                                                                                                                                                                        12,316                                                     (1,773 )
        Other, net                                                                                                                                                                                                                                                     659                                                      8,689
    Change in operating assets and liabilities, exclusive of net assets
    acquired:
        Accounts receivable                                                                                                                                                                                                                                       (292,706 )                                                 (116,458 )
        Inventories                                                                                                                                                                                                                                               (483,071 )                                                  160,790
        Prepaid expenses and other current assets                                                                                                                                                                                                                  113,012                                                     73,492
        Other assets                                                                                                                                                                                                                                                25,034                                                      6,552
        Accounts payable, accrued expenses and other liabilities                                                                                                                                                                                984,651             (168,735 )
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
    Net cash provided by operating activities                                                                                                                                                                                                 1,240,282              498,857  
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
Cash flows from investing activities:
    Cash paid for business and intangible asset acquisitions, net of cash                                                                                                                                                                                         (177,632 )                                                                            --
    Proceeds from sale of discontinued operations and subsidiaries, net                                                                                                                                                                                             10,191                                                    531,189
    of cash
    Acquisition of property, plant and equipment                                                                                                                                                                                                                  (963,145 )                                                 (624,060 )
    Proceeds from sale of property, plant and equipment                                                                                                                                                                                                             15,784                                                    161,138
    Investments in non-marketable equity securities                                                                                                                                                                                                                (11,939 )                                                   (3,600 )
    Other, net                                                                                                                                                                                                                                    5,294               (4,000 )
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
    Net cash (used in) provided by investing activities                                                                                                                                                                                      (1,121,447 )                                60,667  
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
Cash flows from financing activities:
    Borrowings under debt agreements                                                                                                                                                                                                                             5,966,937                                                  6,175,953
    Payments toward debt agreements                                                                                                                                                                                                                             (5,988,232 )                                               (6,400,089 )
    Payments to acquire treasury stock                                                                                                                                                                                                                             (85,576 )                                                 (260,274 )
    Dividends paid to stockholders                                                                                                                                                                                                                                 (63,138 )                                                  (68,211 )
    Net proceeds from exercise of stock options and issuance of common
    stock
      under employee stock purchase plan                                                                                                                                                                                                                            18,062                                                     15,771
    Treasury stock minimum tax withholding related to vesting of                                                                                                                                                                                                    (7,606 )                                                  (34,312 )
    restricted stock
    Cash paid to purchase noncontrolling interest                                                                                                                                                                                                                     (345 )                                                   (1,720 )
    Excess tax benefit related to stock awards                                                                                                                                                                                                                         246                                                        782
    Other, net                                                                                                                                                                                                                                   (2,897 )                                (4,719 )
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
    Net cash used in financing activities                                                                                                                                                                                                      (162,549 )                              (576,819 )
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                                                    (42,572 )                                 6,171  
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
Net decrease in cash and cash equivalents                                                                                                                                                                                                                          (86,286 )                                                  (11,124 )
Cash and cash equivalents at beginning of period                                                                                                                                                                                              1,000,249            1,011,373  
                                                                                                                                                                                                         -------------------- -----------------------------------------------------------------       -------------------- ---------- --------------------
Cash and cash equivalents at end of period                                                                                                                                                                                  $                                      913,963                            $  1,000,249  
                                                                                                                                                                                                         ==================== =================================================================       ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                            
 
                                                                                                                                                           JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                            SUPPLEMENTAL DATA
                                                                                                                                                                                                     RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-U.S. GAAP
                                                                                                                                                                                                                                MEASURES
                                                                                                                                                                                                                (in thousands, except for per share data)
                                                                                                                                                                                                                               (Unaudited)
                                                                                                                                                                                    
                                                                                                                                                                       Three months ended                                                                                                                                                                                             Fiscal year ended
                                                                  -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     August 31,                                                                                                                          August 31,                                                                               August 31,                                                                                 August 31,
                                                                                                              2015                                                                                                  2014                                                                             2015                                                    2014                          
                                                                  ----------------------------------------------------------------------------------------------------------------                      --------------------------------------------------------------------------------------                      ----------------------------------------------------------------------   --------------------------------------------------------------------------
Operating income (U.S. GAAP)                                                         $                                                                150,383                                                              $                                       46,643                                                              $                      555,411                                 $                                    204,074
Amortization of intangibles                                                                                                                             7,352                                                                                                       5,677                                                                                      24,449                                                                       23,857
Stock-based compensation expense and related charges                                                                                                    9,459                                                                                                       2,367                                                                                      62,563                                                                        8,994
Restructuring and related charges                                                                                                                       1,232                                                                                                      19,717                                                                                      33,066                                                                       85,369
Distressed customer charges                                                                                                                                                     --                                                                                                          --                                                                                          --                                                  15,113
Acquisition costs and certain purchase accounting adjustments                                                                                          (5,480 )                                                                                                                             --                                                                 (5,480 )                                                                                              --
Loss on disposal of subsidiaries                                                                                                                             --                                                               5,057                                                                         --                                7,962  
                                                                  -------------------- --------------------------------------------------------------------------------------------                     -------------------- -----------------------------------------------------------------                      -------------------- --------------------------------------------------  --------------------------------------------------------------------------
Core operating income (Non-U.S. GAAP)                                                $                                                                162,946                                           $                                       79,461                                           $                      670,009              $                 345,369  
                                                                  ==================== ===========================================================================================                      ==================== =================================================================                      ==================== =================================================   ========== ==================== ==========================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Net income (loss) attributable to Jabil Circuit, Inc. (U.S. GAAP)                    $                                                                 87,702                                                              $                                      (26,197 )                                                            $                      284,019                                 $                                    241,313
Amortization of intangibles, net of tax                                                                                                                 7,032                                                                                                       5,644                                                                                      23,925                                                                       20,728
Stock-based compensation expense and related
charges, net of tax                                                                                                                                    10,443                                                                                                       2,019                                                                                      62,914                                                                        7,903
Restructuring and related charges, net of tax                                                                                                           1,048                                                                                                      17,449                                                                                      32,219                                                                       72,892
Distressed customer charges, net of tax                                                                                                                                         --                                                                                   (991 )                                                                                                             --                                                  10,243
Acquisition costs and certain purchase accounting
adjustments, net of tax                                                                                                                                (5,480 )                                                                                                                             --                                                                 (5,480 )                                                                     (9,064 )
Loss on disposal of subsidiaries, net of tax                                                                                                                                    --                                                                                  5,057                                                                                                               --                                                   7,962
Loss (income) from discontinued operations, net of tax                                                                                                  2,473                                                                                                         961                                                                                       7,698                                                                      (20,554 )
Loss (gain) on sale of discontinued operations, net of tax                                                                                                   --                                                               6,243                                                   875                               (223,299 )
                                                                  -------------------- --------------------------------------------------------------------------------------------                     -------------------- -----------------------------------------------------------------                      -------------------- -------------------------------------------------   --------------------------------------------------------------------------
Core earnings (Non-U.S. GAAP)                                                        $                                                                103,218                                           $                                       10,185                                           $                      406,170              $                 108,124  
                                                                  ==================== ===========================================================================================                      ==================== =================================================================                      ==================== =================================================   ========== ==================== ==========================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Net earnings (loss) per share (U.S. GAAP):
Basic                                                                                $                                                                   0.45                                           $                                        (0.13 )                                                            $                         1.47              $                    1.19  
                                                                  ==================== ===========================================================================================                      ==================== =================================================================                      ==================== =================================================   ========== ==================== ==========================================
Diluted                                                                              $                                                                   0.45                                           $                                        (0.13 )                                                            $                         1.45              $                    1.19  
                                                                  ==================== ===========================================================================================                      ==================== =================================================================                      ==================== =================================================   ========== ==================== ==========================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Core earnings per share (Non-U.S. GAAP):
Basic                                                                                $                                                                   0.53                                           $                                         0.05                                           $                         2.10              $                    0.53  
                                                                  ==================== ===========================================================================================                      ==================== =================================================================                      ==================== =================================================   ========== ==================== ==========================================
Diluted                                                                              $                                                                   0.53                                           $                                         0.05                                           $                         2.07              $                    0.53  
                                                                  ==================== ===========================================================================================                      ==================== =================================================================                      ==================== =================================================   ========== ==================== ==========================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Weighted average shares outstanding used in the calculations
of earnings per share (U.S. GAAP):
Basic                                                                                                                                                 193,904                                                                                  198,053                                                                  193,689                                                   202,497  
                                                                                       ===========================================================================================                                           =================================================================                                           =================================================                                   ==========================================
Diluted                                                                                                                                               196,351                                                                                  198,053                                                                  196,005                                                   202,497  
                                                                                       ===========================================================================================                                           =================================================================                                           =================================================                                   ==========================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Weighted average shares outstanding used in the calculations
of earnings per share (Non-U.S. GAAP):
Basic                                                                                                                                                 193,904                                                                                  198,053                                                                  193,689                                                   202,497  
                                                                                       ===========================================================================================                                           =================================================================                                           =================================================                                   ==========================================
Diluted                                                                                                                                               196,351                                                                                  199,967                                                                  196,005                                                   204,269  
                                                                                       ===========================================================================================                                           =================================================================                                           =================================================                                   ==========================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
 
                                                                                                                                                                                                                  JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                            SUPPLEMENTAL DATA
                                                                                                                                                                                                     RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-U.S. 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 U.S. GAAP operating income" for its most
recently-ended quarter and dividing that by the average of its "net
invested capital asset base" and (2) its "Core Return on Invested
Capital" by annualizing its "after-tax non-U.S. GAAP core operating
income" for its most recently-ended quarter and dividing that by the
"average net invested capital asset base."
The Company calculates: (1) its "after-tax U.S. GAAP operating
income" by subtracting a certain tax effect (the calculation of
which is explained below) from its U.S. GAAP operating income and
(2) its "after-tax non-U.S. GAAP core operating income" as its
non-U.S. 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-U.S. GAAP
core operating income to its U.S. 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 U.S. GAAP operating income" to (2) "Core
Return on Invested Capital," as calculated using "after-tax non-U.S.
GAAP core operating income":
                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                        Three months                                                                                                                                                                                         Twelve months
                                                                                                                                                                            ended                                                                                                                                                          ended
                                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                         August 31,                                                                                                                                                                                                     August 31,
                                                                                                                                                                  2015                                                                                                                                                                             2015                               
                                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------                                                                                     -----------------------------------------------------------------------------------
Numerator:
Operating income (U.S. GAAP)                                                                                     $                                                                                                      150,383                                                                                                                             $                                   555,411
Tax effect(1)                                                                                                                                                                                        (29,498 )                                                                                                                                           (136,083 )
                                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------                                                                                     -------------------- --------------------------------------------------------------
After-tax operating income                                                                                                                                                                                              120,885                                                                                                                                                                 419,328
                                                                                                                                x4                                                                                                                                                                                                   x1
                                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------                                                                                    -------------------- ---------------------------------------------------------------
Annualized after-tax operating income                                                                            $                                                                                   483,540                                                                                                          $                                   419,328  
                                                                                                        ========== ==================== ============================================================================================================                                                                                     ==================== ==============================================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Core operating income (Non-U.S. GAAP)                                                                            $                                                                                                      162,946                                                                                                                             $                                   670,009
Tax effect(2)                                                                                                                                                                                        (29,103 )                                                                                                                                           (137,385 )
                                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------                                                                                     -------------------- --------------------------------------------------------------
After-tax core operating income                                                                                                                                                                                         133,843                                                                                                                                                                 532,624
                                                                                                                                x4                                                                                                                                                                                                   x1
                                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------                                                                                    -------------------- ---------------------------------------------------------------
Annualized after-tax core operating income                                                                       $                                                                                   535,372                                                                                                          $                                   532,624  
                                                                                                        ========== ==================== ============================================================================================================                                                                                     ==================== ==============================================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Denominator:
Average total Jabil Circuit, Inc. stockholders’ equity(3)                             $                                                                                                    2,313,258                                                                                                                             $                                 2,278,342
Average notes payable, long-term debt and capital lease obligations,
less
current installments(3)                                                                                                                                                                                               1,503,210                                                                                                                                                               1,508,072
Average current installments of notes payable, long-term debt and
capital
lease obligations(3)                                                                                                                                                                                                    167,599                                                                                                                                                                 168,396
Average cash and cash equivalents(3)                                                                                                                                                                (938,378 )                                                                                                                                           (957,106 )
                                                                                                        --------------------------------------------------------------------------------------------------------------------------------------------                                                                                     -------------------- --------------------------------------------------------------
Net invested capital asset base                                                                                  $                                                                                 3,045,689                                                                                                          $                                 2,997,704  
                                                                                                        ========== ==================== ============================================================================================================                                                                                     ==================== ==============================================================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Return on Invested Capital (U.S. GAAP)                                                                                                                                                                                     15.9 %                                                                                                                                               14.0 %                     
Adjustments noted above                                                                                                                                                                                                     1.7 %                                                                                                                                                3.8 %                     
Core Return on Invested Capital (Non-U.S. GAAP)                                                                                                                                                                            17.6 %                                                                                                                                               17.8 %                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                    

__________

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

(2) This amount is calculated by adding the amount of income taxes attributable to its core operating income (Non-U.S. 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, 2015 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, 2015 and dividing by two.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150924006373r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20150924006373/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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