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Jabil Circuit, Inc.$29.22$.12.41%

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 Jabil Posts Fourth Quarter & Fiscal Year 2016 Results
   Wednesday, September 21, 2016 4:02:00 PM ET

Today Jabil Circuit, Inc. (JBL ), reported preliminary, unaudited financial results for its fourth quarter and full fiscal year, ended August 31, 2016, including fourth quarter net revenue of $4.4 billion and record fiscal year net revenue of $18.4 billion.

For the fourth quarter of fiscal year 2016, U.S. GAAP (as defined below) operating income was $93.8 million and U.S. GAAP net diluted earnings per share was $0.20. For fiscal year 2016, U.S. GAAP operating income was $522.8 million and U.S. GAAP net diluted earnings per share was $1.32.

For the fourth quarter of fiscal year 2016, core operating income (as defined below) was $108.3 million and core diluted earnings per share (as defined below) was $0.28. For fiscal year 2016, core operating income was $630.3 million and core diluted earnings per share was $1.86.

"Our fiscal 2016 was characterized by a blend of exceptional performance, significant variability, excellent cost control and wonderful customer care," said CEO Mark Mondello. "I couldn’t be more pleased with our team in terms of effort and commitment, as they did a brilliant job of controlling what they could control during the year," he added.

First Quarter of Fiscal Year 2017 Guidance:
-- Net revenue                                 $4.8 billion to $5.0 billion
-- U.S. GAAP operating income                                     $82 million to $152 million
-- U.S. GAAP net diluted earnings per share                       $0.05 to $0.36 per diluted share
-- Core operating income                                          $175 million to $225 million
-- Core diluted earnings per share                                $0.54 to $0.74 per diluted share
-- Diversified Manufacturing Services                             Decrease net revenue 12 percent year-on-year
-- Electronics Manufacturing Services                             Consistent net revenue year-on-year
-- Total Company                                                  Decrease net revenue 6 percent year-on-year

"In fiscal 2017, we’ll continue to deliver upon our recently communicated capital return framework, ensure our global operations are efficiently managed to support our customers and continue to aggressively grow key areas of our business," added Mondello.

(U.S. GAAP net diluted earnings per share for the first quarter of fiscal year 2017 are currently estimated to include $0.04 per share for amortization of intangibles, $0.13 per share for stock-based compensation expense and related charges and $0.32 to $0.21 per share for restructuring and related charges.)

Restructuring Alignment Plan

In addition, Jabil announced its intention to realign the Company’s global capacity and administrative support infrastructure in order to optimize organizational effectiveness in a more moderate growth environment. The company estimates that the realignment shall result in approximately $195 million in total charges over a two year period. It is currently estimated that $120 million to $150 million will be recorded in fiscal year 2017 and the balance during fiscal year 2018. Jabil estimates that the cash component of these actions is $50 million of which $25 million will be incurred in fiscal year 2017.

Definitions: "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 quarterly 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 calculates its annual core return on invested capital by taking its after-tax core operating income for its most recently ended fiscal year and dividing that by a two year 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 and U.S. GAAP earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)

Forward looking statements: This news release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter of fiscal year 2016 and our full fiscal year 2016; and our positioning for future financial performance in our fiscal year 2017 (including, net revenue, segment net revenue, U.S. GAAP operating income, U.S. GAAP net diluted earnings per share, core operating income, net interest expense, core tax rate, and core diluted earnings per share results and the components thereof, in each case for our first quarter of fiscal year 2017). 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 from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our fourth quarter of fiscal year 2016 and our full fiscal year 2016 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; unexpected, adverse seasonal impacts on demand; performance in the markets in which we operate; changes in macroeconomic conditions; the occurrence of, success and expected financial results from, product ramps; our ability to maintain and improve costs, quality and delivery for our customers; whether our restructuring activities and the realignment of our capacity will adversely affect our cost structure, ability to service customers and labor relations; 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; and our dependence on a limited number of large customers. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2015, subsequent Reports on Forms 10-Q and 8-K and our other securities filings. We assume no obligation to update these forward-looking statements.

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. Among other uses, management uses non-U.S. GAAP financial measures to make operating decisions, assess business performance and as a factor in determining certain employee performance when determining incentive compensation. 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 its earnings for the fourth quarter and full fiscal year, ended August 31, 2016, 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 21, 2016 at approximately 7:30 p.m. ET through midnight on September 28, 2016. 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: 66720175. An archived webcast of the conference call will be available at http://www.jabil.com /investors/.

About Jabil

Jabil is a 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 28 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,
                                                                                                                                                                                                                                                                                       2016                                                                                                                         August 31,
                                                                                                                                                                                                                                                                                    (Unaudited)                                                                                                                        2015
                                                                                                                                                                                                                                       ----------------------------------------------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------
                                                                                                      ASSETS
Current assets:
     Cash and cash equivalents                                                                                                                                                                                                                  $                                                             912,059                                                     $                                                                         913,963
     Accounts receivable, net                                                                                                                                                                                                                                                                               1,359,610                                                                                                                             1,467,247
     Inventories                                                                                                                                                                                                                                                                                            2,456,612                                                                                                                             2,507,264
     Prepaid expenses and other current assets                                                                                                                                                                                                                                                              1,120,100                                                                                                                               898,790
     Deferred income taxes                                                                                                                                                                                                                                                                                                                                               79,045  
                                                                                                                                                                                                                                                                                                       --
                                                                                                                                                                                                                                       ------------------------------  -------------------- ------------------------------------------                           ------------------------------  -------------------- ----------------------------------    --------------------
    Total current assets                                                                                                                                                                                                                                              5,848,381                                                                                                                             5,866,309
Property, plant and equipment, net                                                                                                                                                                                                                                                                          3,331,879                                                                                                                             2,804,333
Goodwill and intangible assets, net                                                                                                                                                                                                                                                                           891,727                                                                                                                               745,918
Deferred income taxes                                                                                                                                                                                                                                                                                         148,859                                                                                                                                85,169
Other assets                                                                                                                                                                                                                                                            101,831                                                                       89,871  
                                                                                                                                                                                                                                       ------------------------------  -------------------- ----------------------    --------------------                       ------------------------------  -------------------- ----------------------------------    --------------------
                                          Total assets                                                                                                                                                                                          $                    10,322,677                                  $                                 9,591,600  
                                                                                                                                                                                                                                       ========== ==================== ==================== ==============================================                       ========== ==================== ==================== ==========================================================
                                                                                              LIABILITIES AND EQUITY
Current liabilities:
       Current installments of notes payable, long-term debt and capital                                                                                                                                                                        $                                                              45,810                                                     $                                                                         322,966
       lease obligations
       Accounts payable                                                                                                                                                                                                                                                                                     3,593,195                                                                                                                             3,663,264
       Accrued expenses                                                                                                                                                                                                                                                                                     1,929,051                                                                                                                             1,685,589
       Deferred income taxes                                                                                                                                                                                                                                     --                                                                                                       2,455  
                                                                                                                                                                                                                                       ---------------------------------------------------- -----------------------------------------------                      ---------------------------------------------------- ----------------------------------------------------------
                                          Total current liabilities                                                                                                                                                                                                                                         5,568,056                                                                                                                             5,674,274
Notes payable, long-term debt and capital lease obligations, less                                                                                                                                                                                                                                           2,074,012                                                                                                                             1,335,818
current installments
Other liabilities                                                                                                                                                                                                                                                                                              78,018                                                                                                                                67,951
Income tax liabilities                                                                                                                                                                                                                                                                                         90,804                                                                                                                                96,379
Deferred income taxes                                                                                                                                                                                                                                                    54,290                                                                       82,167  
                                                                                                                                                                                                                                       ---------------------------------------------------- ----------------------------------------------                       ---------------------------------------------------- ----------------------------------------------------------
                                          Total liabilities                                                                                                                                                                                                           7,865,180                                                                    7,256,589  
                                                                                                                                                                                                                                       ---------------------------------------------------- ----------------------------------------------                       ---------------------------------------------------- ----------------------------------------------------------
Commitments and contingencies
Equity:
  Jabil Circuit, Inc. stockholders’ equity:
     Preferred stock                                                                                                                                                                                                                                                                                   --                                                                                                                             --
     Common stock                                                                                                                                                                                                                                                                                                 250                                                                                                                                   247
     Additional paid-in capital                                                                                                                                                                                                                                                                             2,034,525                                                                                                                             1,955,104
     Retained earnings                                                                                                                                                                                                                                                                                      1,660,820                                                                                                                             1,468,910
     Accumulated other comprehensive loss                                                                                                                                                                                                                                                                     (39,877 )                                                                                                                             (50,854 )
     Treasury stock, at cost                                                                                                                                                                                                                                         (1,217,547 )                                                                                    (1,058,551 )
                                                                                                                                                                                                                                       ---------------------------------------------------- ----------------------------------------------                       ---------------------------------------------------- ----------------------------------------------------------
                                          Total Jabil Circuit, Inc. stockholders’ equity                                                                                                                                                                                         2,438,171                                                                                                                             2,314,856
     Noncontrolling interests                                                                                                                                                                                                                                            19,326                                                                       20,155  
                                                                                                                                                                                                                                       ---------------------------------------------------- ----------------------------------------------                       ---------------------------------------------------- ----------------------------------------------------------
                                          Total equity                                                                                                                                                                                                                2,457,497                                                                    2,335,011  
                                                                                                                                                                                                                                       ---------------------------------------------------- ----------------------------------------------                       ---------------------------------------------------- ----------------------------------------------------------
                                          Total liabilities and equity                                                                                                                                                                          $                    10,322,677                                  $                                 9,591,600  
                                                                                                                                                                                                                                       ========== ==================== ==================== ==============================================                       ========== ==================== ==================== ==========================================================
                                             
 
                                                                                                                                                                                                                      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,
                                                                                                                       2016                                                2015                                                                                                                2016                                                                                      2015                                             
                                                                                                          -------------------------------                     ---------------------------------------------------                                                                           ------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------
Net revenue                                                                                                                  $ 4,430,763                                         $ 4,680,813                                                                                                                   $                 18,353,086                               $                                                                      17,899,196
Cost of revenue                                                                                             4,107,114                        4,304,239                                                                                               16,825,382                                                                16,395,978  
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Gross profit                                                                                                                     323,649                                             376,574                                                                                                                                      1,527,704                                                                                                       1,503,218
Operating expenses:
    Selling, general and administrative                                                                                          208,334                                             209,465                                                                                                                                        924,427                                                                                                         862,647
    Research and development                                                                                                       7,521                                               8,142                                                                                                                                         31,954                                                                                                          27,645
    Amortization of intangibles                                                                                                   10,971                                               7,352                                                                                                                                         37,121                                                                                                          24,449
    Restructuring and related charges                                                                           3,020                            1,232                                                                                                   11,369                                                                    33,066  
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Operating income                                                                                                                  93,803                                             150,383                                                                                                                                        522,833                                                                                                         555,411
Interest and other, net                                                                                        33,586                           29,095                                                                                                  135,788                                                                   123,765  
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Income from continuing operations before tax                                                                                      60,217                                             121,288                                                                                                                                        387,045                                                                                                         431,646
Income tax expense                                                                                             21,510                           30,276                                                                                                  132,149                                                                   137,461  
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Income from continuing operations, net of tax                                                                  38,707                           91,012                                                                                                  254,896                                                                   294,185  
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Discontinued operations:
    Loss from discontinued operations, net of tax                                                                                     --                                              (2,473 )                                                                                                                                           --                                                                                                          (7,698 )
    Loss on sale of discontinued operations, net of tax                                                            --                                                    --                                                                                                     --                                                                      (875 )
                                                                                                          -------------------- ----------                     -------------------- -------------------------------                                                                          -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Discontinued operations, net of tax                                                                                --                           (2,473 )                                                                                                                        --                                                                    (8,573 )
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Net income                                                                                                                        38,707                                              88,539                                                                                                                                        254,896                                                                                                         285,612
Net income attributable to noncontrolling interests, net of tax                                                   642                              837                                                                                                      801                                                                     1,593  
                                                                                                          -------------------- ----------                     -------------------- ------------------------------                                                                           -------------------- ---------------------------                     ---------------------------------------------------- ----------------------------------------------------------
Net income attributable to Jabil Circuit, Inc.                                                                               $    38,065                                         $    87,702                                                                                                $                    254,095                               $                                   284,019  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
Earnings per share attributable to the stockholders of Jabil
    Circuit, Inc.:
      Basic:
         Income from continuing operations, net of tax                                                                       $      0.20                                         $      0.47                                                                                                $                       1.33                               $                                      1.51  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
         Discontinued operations, net of tax                                                                                 $      0.00                                         $     (0.01 )                                                                                                                 $                       0.00                               $                                     (0.04 )
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
         Net income                                                                                                          $      0.20                                         $      0.45                                                                                                $                       1.33                               $                                      1.47  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
      Diluted:
         Income from continuing operations, net of tax                                                                       $      0.20                                         $      0.46                                                                                                $                       1.32                               $                                      1.49  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
         Discontinued operations, net of tax                                                                                 $      0.00                                         $     (0.01 )                                                                                                                 $                       0.00                               $                                     (0.04 )
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
         Net income                                                                                                          $      0.20                                         $      0.45                                                                                                $                       1.32                               $                                      1.45  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ========== ==================== ==================== ==========================================================
                                                                                                                                                                                                                                                                                                                                                                                                                       
Weighted average shares outstanding:
      Basic                                                                                                   189,139                          193,904                                                                                                  190,413                                                                   193,689  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ==================================================== ==========================================================
      Diluted                                                                                                 191,602                          196,351                                                                                                  192,750                                                                   196,005  
                                                                                                          ==================== ==========                     ==================== ==============================                                                                           ==================== ===========================                     ==================================================== ==========================================================
 
                                                                                                                                                                                                                      JABIL CIRCUIT, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                                                                                 (in thousands)
                                                                                                                                                                                                                                   (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                            Fiscal year ended
                                                                                                                                                                                                                                                          -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                       August 31,                                                                                 August 31,
                                                                                                                                                                                                                                                                                                2016                                                                   2015        
                                                                                                                                                                                                                                                          ----------------------------------------------------------------------------------------------------                      -------------------------------------
Cash flows from operating activities:
      Net income                                                                                                                                                                                                              $                                            254,896                                          $    285,612
      Adjustments to reconcile net income to net cash provided by
      operating activities:
          Depreciation and amortization                                                                                                                                                                                                                                    696,752                                               529,176
          Restructuring and related charges                                                                                                                                                                                                                                  1,170                                                 4,445
          Provision for allowance for doubtful accounts                                                                                                                                                                                                                        919                                                 9,752
          Recognition of stock-based compensation expense and related charges                                                                                                                                                                                               58,997                                                62,560
          Deferred income taxes                                                                                                                                                                                                                                            (23,155 )                                             (10,912 )
          Loss on sale of property, plant and equipment                                                                                                                                                                                                                     12,921                                                12,316
          Other, net                                                                                                                                                                                                                                                         8,448                                                   659
      Change in operating assets and liabilities, exclusive of net assets
      acquired:
          Accounts receivable                                                                                                                                                                                                                                              122,115                                              (292,706 )
          Inventories                                                                                                                                                                                                                                                       67,966                                              (483,071 )
          Prepaid expenses and other current assets                                                                                                                                                                                                                       (194,337 )                                             113,012
          Other assets                                                                                                                                                                                                                                                      (4,425 )                                              25,034
          Accounts payable, accrued expenses and other liabilities                                                                                                                                                                                      (86,060 )                          984,651  
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
      Net cash provided by operating activities                                                                                                                                                                                                         916,207       1,240,528  
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
Cash flows from investing activities:
      Cash paid for business and intangible asset acquisitions, net of cash                                                                                                                                                                                               (242,143 )                                            (177,632 )
      Proceeds from sale of discontinued operations, net of cash                                                                                                                                                                                                                                     --                           10,191
      Acquisition of property, plant and equipment                                                                                                                                                                                                                        (924,239 )                                            (963,145 )
      Proceeds from sale of property, plant and equipment                                                                                                                                                                                                                   26,031                                                15,784
      Issuance of notes receivable                                                                                                                                                                                                                                         (29,380 )                                                                       --
      Investments in non-marketable equity securities                                                                                                                                                                                                                      (10,250 )                                             (11,939 )
      Other, net                                                                                                                                                                                                                                                                  --         5,294  
                                                                                                                                                                                                           -------------------- ------------------------------------------------------------------------ ------------------------------- --------------------
      Net cash used in investing activities                                                                                                                                                                                                          (1,179,981 )                       (1,121,447 )
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
Cash flows from financing activities:
      Borrowings under debt agreements                                                                                                                                                                                                                                   6,904,215                                             5,966,937
      Payments toward debt agreements                                                                                                                                                                                                                                   (6,445,922 )                                          (5,988,232 )
      Payments to acquire treasury stock                                                                                                                                                                                                                                  (148,340 )                                             (85,576 )
      Dividends paid to stockholders                                                                                                                                                                                                                                       (62,436 )                                             (63,138 )
      Net proceeds from exercise of stock options and issuance of common
      stock
        under employee stock purchase plan                                                                                                                                                                                                                                  20,910                                                18,062
      Treasury stock minimum tax withholding related to vesting of                                                                                                                                                                                                         (10,656 )                                              (7,606 )
      restricted stock
      Other, net                                                                                                                                                                                                                                         (4,259 )                           (3,242 )
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
      Net cash provided by (used in) financing activities                                                                                                                                                                                               253,512        (162,795 )
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                                                              8,358         (42,572 )
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
Net decrease in cash and cash equivalents                                                                                                                                                                                                                                   (1,904 )                                             (86,286 )
Cash and cash equivalents at beginning of period                                                                                                                                                                                                        913,963       1,000,249  
                                                                                                                                                                                                           -------------------- -----------------------------------------------------------------------  ------------------------------- --------------------
Cash and cash equivalents at end of period                                                                                                                                                                                    $                                            912,059                       $    913,963  
                                                                                                                                                                                                           ==================== =======================================================================  =============================== ====================
                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                       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,
                                                                                                         2016                                                                  2015                                                         2016                                                            2015
                                                                                   -------------------------------------------------                     -------------------------------------------------                      ----------------------------- ------------------------------------------------------------------------------------------------
Operating income (U.S. GAAP)                                                                          $                      93,803                                         $ 150,383                                                               $ 522,833                     $                                                                    555,411
Amortization of intangibles                                                                                                  10,971                                            7,352                                                                  37,121                                                                                           24,449
Stock-based compensation expense and related charges                                                                            492                                            9,459                                                                  58,997                                                                                           62,563
Restructuring and related charges                                                                                             3,020                                            1,232                                                                  11,369                                                                                           33,066
Acquisition costs and certain purchase accounting adjustments                                                 --                        (5,480 )                                                 --                                                                        (5,480 )
                                                                                   -------------------- ----------------------------                     -------------------- ---------------------------                       -------------------- -------- -------------------- -----------------------------------------------------------------------------------------------
Core operating income (Non-U.S. GAAP)                                                                 $                     108,286                                         $ 162,946                                            $ 630,320                     $                                                                    670,009  
                                                                                   ==================== ============================                     ==================== ===========================                       ==================== ======== ==================== ===============================================================================================
                                                                                                                                                                                                                                                                                    
Net income attributable to Jabil Circuit, Inc. (U.S. GAAP)                                            $                      38,065                                         $ 87,702                                                               $ 254,095                     $                                                                    284,019
Amortization of intangibles, net of tax                                                                                      11,551                                            7,032                                                                  35,617                                                                                           23,925
Stock-based compensation expense and related
   charges, net of tax                                                                                                          268                                           10,443                                                                  58,006                                                                                           62,914
Restructuring and related charges, net of tax                                                                                 3,025                                            1,048                                                                  11,381                                                                                           32,219
Acquisition costs and certain purchase accounting
   adjustments, net of tax                                                                                                       --                                           (5,480 )                                                                    --                                                                                           (5,480 )
Loss from discontinued operations, net of tax                                                                                    --                                            2,473                                                                      --                                                                                            7,698
Loss on sale of discontinued operations, net of tax                                                           --                                                 --                              --                                                                           875  
                                                                                   -------------------- ----------------------------                     -------------------- ----------------------------                      -------------------- -------- -------------------- -----------------------------------------------------------------------------------------------
Core earnings (Non-U.S. GAAP)                                                                         $                      52,909                                         $ 103,218                                            $ 359,099                     $                                                                    406,170  
                                                                                   ==================== ============================                     ==================== ===========================                       ==================== ======== ==================== ===============================================================================================
                                                                                                                                                                                                                                                                                    
Net earnings per share (U.S. GAAP):
Basic                                                                                                 $                        0.20                                         $   0.45                                            $    1.33                     $                                                                       1.47  
                                                                                   ==================== ============================                     ==================== ===========================                       ==================== ======== ==================== ===============================================================================================
Diluted                                                                                               $                        0.20                                         $   0.45                                            $    1.32                     $                                                                       1.45  
                                                                                   ==================== ============================                     ==================== ===========================                       ==================== ======== ==================== ===============================================================================================
                                                                                                                                                                                                                                                                                    
Core earnings per share (Non-U.S. GAAP):
Basic                                                                                                 $                        0.28                                         $   0.53                                            $    1.89                     $                                                                       2.10  
                                                                                   ==================== ============================                     ==================== ===========================                       ==================== ======== ==================== ===============================================================================================
Diluted                                                                                               $                        0.28                                         $   0.53                                            $    1.86                     $                                                                       2.07  
                                                                                   ==================== ============================                     ==================== ===========================                       ==================== ======== ==================== ===============================================================================================
                                                                                                                                                                                                                                                                                    
Weighted average shares outstanding used in the calculations
   of earnings per share (U.S. GAAP and Non-U.S. GAAP):
Basic                                                                                                                       189,139                                           193,904                                              190,413                                                                                          193,689  
                                                                                                        ============================                                          ===========================                                            ========                      ===============================================================================================
Diluted                                                                                                                     191,602                                           196,351                                              192,750                                                                                          196,005  
                                                                                                        ============================                                          ===========================                                            ========                      ===============================================================================================
 
                                                                                                                                                                       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,
                                                                                                              2016                                                                                            2016
                                                                                      ----------------------------------------------------                                            ----------------------------------------------------
Numerator:
Operating income (U.S. GAAP)                                                                             $    93,803                                                                                     $   522,833
Tax effect(1)                                                                             (21,352 )                                                                   (131,893 )
                                                                                      -------------------- ------------------------------                                             -------------------- ------------------------------
After-tax operating income                                                                                    72,451                                                                                         390,940
                                                                                                                    x4                                                                           x1
                                                                                      -------------------- -------------------------------                                            -------------------- -------------------------------
Annualized after-tax operating income                                                                    $   289,804                                                                  $   390,940  
                                                                                      ==================== ==============================                                             ==================== ==============================
                                                                                                                                                                                                                                           
Core operating income (Non-U.S. GAAP)                                                                    $   108,286                                                                                     $   630,320
Tax effect(2)                                                                             (21,024 )                                                                   (134,426 )
                                                                                      -------------------- ------------------------------                                             -------------------- ------------------------------
After-tax core operating income                                                                               87,262                                                                                         495,894
                                                                                                                    x4                                                                           x1
                                                                                      -------------------- -------------------------------                                            -------------------- -------------------------------
Annualized after-tax core operating income                                                               $   349,048                                                                  $   495,894  
                                                                                      ==================== ==============================                                             ==================== ==============================
                                                                                                                                                                                                                                           
Denominator:
Average total Jabil Circuit, Inc. stockholders’ equity(3)                     $ 2,465,311                                                                                     $ 2,376,513
Average notes payable, long-term debt and capital lease obligations,
less
   current installments(3)                                                                                 1,932,520                                                                                       1,704,915
Average current installments of notes payable, long-term debt and
capital
   lease obligations(3)                                                                                      202,847                                                                                         184,388
Average cash and cash equivalents(3)                                                     (899,525 )                                                                   (913,011 )
                                                                                      -------------------- ------------------------------                                             -------------------- ------------------------------
Net invested capital asset base                                                                          $ 3,701,153                                                                  $ 3,352,805  
                                                                                      ==================== ==============================                                             ==================== ==============================
                                                                                                                                                                                                                                           
Return on Invested Capital (U.S. GAAP)                                                                           7.8 %                                                                       11.7 %                     
Adjustments noted above                                                                                          1.6 %                                                                        3.1 %                     
Core Return on Invested Capital (Non-U.S. GAAP)                                                                  9.4 %                                                                       14.8 %                     

__________

(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, 2016 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, 2016 and dividing by two.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160921006493r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160921006493/en/

SOURCE: Jabil Circuit, Inc.

Jabil Circuit, Inc. 
Beth Walters, 727-803-3511 
Senior Vice President, Investor Relations & Communications 
beth_walters@jabil.com 
or 
Adam Berry, 727-803-5772 
Senior Director, Investor Relations 
adam_berry@jabil.com


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