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Jabil Circuit, Inc.$30.25($.11)(.36%)

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 Jabil Posts Fourth Quarter & Fiscal Year 2017 Results
   Wednesday, September 27, 2017 4:02:00 PM ET

Today Jabil Inc. (JBL ), reported preliminary, unaudited financial results for its fourth quarter and full fiscal year ended August 31, 2017, including fourth quarter net revenue of $5.0 billion and fiscal year net revenue of $19.1 billion.

For the fourth quarter of fiscal year 2017, U.S. GAAP (as defined below) operating income was $118.1 million and U.S. GAAP diluted earnings per share was $0.25. For fiscal year 2017, U.S. GAAP operating income was $410.2 million and U.S. GAAP diluted earnings per share was $0.69.

For the fourth quarter of fiscal year 2017, core operating income ((Non-U.S. GAAP) as defined below) was $191.5 million and core diluted earnings per share ((Non-U.S. GAAP) as defined below) was $0.64. For fiscal year 2017, core operating income was $667.0 million and core diluted earnings per share was $2.11.

"I’m very pleased with our team’s performance throughout the fiscal year," said CEO Mark Mondello. "As we described at the outset of the year, success would include solid revenue and core earnings growth coupled with strong cash flow generation. Clearly, we delivered on these strategic objectives," he added.

Fiscal Year 2017 Highlights:

-- Net revenue growth: 4 percent

-- Core diluted earnings per share (Non-U.S. GAAP) growth: 13 percent

-- Cash flow from operations: $1.26 Billion

"Looking ahead, we expect continued revenue and core EPS growth in both the first quarter and fiscal 2018. The success of our capabilities-driven strategy is allowing for continued share gains and enhanced diversification across the enterprise. As a result, our plan to deliver core EPS of $2.60 in 2018 and $3.00 in 2019 remains on track," added Mondello.

First Quarter of Fiscal Year 2018 Guidance:
 
-- Net revenue                                             $5.25 billion to $5.75 billion
-- U.S. GAAP operating income                                                                                       $111 million to $182 million
-- U.S. GAAP diluted earnings per share                                                                             $0.17 to $0.49 per diluted share
-- Core operating income (Non-U.S. GAAP)                                                                            $198 million to $258 million
-- Core diluted earnings per share (Non-U.S. GAAP )                                                                 $0.65 to $0.91 per diluted share
-- Diversified Manufacturing Services                                                                               Increase revenue 13 percent year-on-year
-- Electronics Manufacturing Services                                                                               Increase revenue 3 percent year-on-year
-- Total company                                                                                                    Increase revenue 8 percent year-on-year

(U.S. GAAP diluted earnings per share for the first quarter of fiscal year 2018 are currently estimated to include $0.05 per share for amortization of intangibles, $0.34 per share for stock-based compensation expense and related charges and $0.09 to $0.03 per share for restructuring and related charges.)

(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, impairment on securities, 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 2017 and full fiscal year 2017; our guidance for future financial performance in our first quarter of fiscal year 2018 (including, net revenue, total company and segment revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings (loss) per share, core operating income (Non-U.S. GAAP), and core diluted earnings per share (Non-U.S. GAAP) results and the components thereof, in each case for our first quarter of fiscal year 2018); and statements regarding our future earnings per share expectations. The statements in this press 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 2017 and our full fiscal year 2017 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, 2016 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements.

Supplemental Information Regarding Non-U.S. GAAP Financial Measures: Jabil provides supplemental, non-U.S. GAAP financial measures in this release to facilitate evaluation of Jabil’s core operating performance. These non-U.S. GAAP measures exclude certain amounts that are included in the most directly comparable U.S. GAAP measures, do not have standard meanings and may vary from the non-U.S. GAAP financial measures used by other companies. Management believes these "core" financial measures are useful measures that facilitate evaluation of the past and future performance of Jabil’s ongoing operations on a comparable basis.

Jabil reports core operating income, core return on invested capital, core earnings and core diluted and basic earnings per share to provide investors an additional method for assessing operating income, return on invested capital, 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. The Company determines the tax effect of the items excluded from core earnings and core basic and diluted earnings per share based upon evaluation of the statutory tax treatment and the applicable tax rate of the jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain jurisdictions where the Company does not expect to realize a tax benefit (due to a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets), a 0% tax rate is applied. Detailed definitions of certain of the core financial measures are included above under "Definitions" and a reconciliation of the disclosed core financial measures to the most directly comparable U.S. GAAP financial measures is included under the heading "Supplemental Data" at the end of this release.

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, 2017, 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 27, 2017 at approximately 7:30 p.m. ET through midnight on October 4, 2017. 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: 75879224. An archived webcast of the conference call will be available at http://www.jabil.com /investors/.

About Jabil: Jabil (JBL ) is a product solutions company providing comprehensive electronics design, production and product management services. Offering complete product supply chain management from facilities in 29 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Further information is available on Jabil’s website: jabil.com.

 
                                                                                                                       JABIL INC. AND SUBSIDIARIES
                                                                                                                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                             (in thousands)
 
                                                                                                                                      
                                                                                                                                         August 31,
                                                                                                                                            2017                                                                                        August 31,
                                                                                                                                         (Unaudited)                                                                                       2016
                                                                                                                    -----------------------------------------------------                                          -----------------------------------------------------
                                  ASSETS
Current assets:
   Cash and cash equivalents                                                                                                           $  1,189,919                                                                                   $    912,059
   Accounts receivable, net                                                                                                               1,397,424                                                                                      1,359,610
   Inventories                                                                                                                            2,942,083                                                                                      2,456,612
   Prepaid expenses and other current assets                                                                           1,097,257                                                1,120,100  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
       Total current assets                                                                                                               6,626,683                                                                                      5,848,381
Property, plant and equipment, net                                                                                                        3,228,678                                                                                      3,331,879
Goodwill and intangible assets, net                                                                                                         892,780                                                                                        891,727
Deferred income taxes                                                                                                                       205,722                                                                                        148,859
Other assets                                                                                                             142,132                                                  101,831  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
      Total assets                                                                                                                     $ 11,095,995                                                                $ 10,322,677  
                                                                                                                    ==================== ========== ====================                                           ==================== ========== ====================
                          LIABILITIES AND EQUITY
Current liabilities:
   Current installments of notes payable, long-term debt and capital                                                                   $    445,498                                                                                   $     45,810
   lease obligations
   Accounts payable                                                                                                                       4,257,623                                                                                      3,593,195
   Accrued expenses                                                                                                    2,167,472                                                1,929,051  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
      Total current liabilities                                                                                                           6,870,593                                                                                      5,568,056
Notes payable, long-term debt and capital lease obligations, less                                                                         1,632,592                                                                                      2,074,012
current installments
Other liabilities                                                                                                                            74,237                                                                                         78,018
Income tax liabilities                                                                                                                      100,902                                                                                         90,804
Deferred income taxes                                                                                                     49,327                                                   54,290  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
      Total liabilities                                                                                                8,727,651                                                7,865,180  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Commitments and contingencies
Equity:
   Jabil Inc. stockholders’ equity:
     Preferred stock                                                                                                                                                  --                                                                                             --
     Common stock                                                                                                                               253                                                                                            250
     Additional paid-in capital                                                                                                           2,104,203                                                                                      2,034,525
     Retained earnings                                                                                                                    1,730,893                                                                                      1,660,820
     Accumulated other comprehensive income (loss)                                                                                           54,620                                                                                        (39,877 )
     Treasury stock, at cost                                                                                          (1,536,455 )                                                                (1,217,547 )
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
         Total Jabil Inc. stockholders’ equity                                                                 2,353,514                                                                                      2,438,171
     Noncontrolling interests                                                                                             14,830                                                   19,326  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
         Total equity                                                                                                  2,368,344                                                2,457,497  
                                                                                                                    -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
         Total liabilities and equity                                                                                                  $ 11,095,995                                                                $ 10,322,677  
                                                                                                                    ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                         
 
                                                                                                                                                                                       JABIL 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,
                                                                                                                          2017                                                                     2016                                                                      2017                                                                             2016
                                                                                                             -------------------------------                                          -------------------------------                                          ----------------------------------------------------                                           ------------------------------------------
Net revenue                                                                                                                     $ 5,023,029                                                              $ 4,430,763                                                              $ 19,063,121                                                                                   $           18,353,086
Cost of revenue                                                                                                4,597,211                                             4,107,114                                             17,517,478                                                         16,825,382
                                                                                                             -------------------- ---------                                           -------------------- ---------                                           -------------------- ---------- --------------------                                           -------------------- --------------------
Gross profit                                                                                                                        425,818                                                                  323,649                                                                 1,545,643                                                                                                1,527,704
Operating expenses:
  Selling, general and administrative                                                                                               241,823                                                                  208,334                                                                   907,702                                                                                                  924,427
  Research and development                                                                                                            7,698                                                                    7,521                                                                    29,680                                                                                                   31,954
  Amortization of intangibles                                                                                                         9,262                                                                   10,971                                                                    35,524                                                                                                   37,121
  Restructuring and related charges                                                                                                  46,866                                                                    3,020                                                                   160,395                                                                                                   11,369
  Loss on disposal of subsidiaries                                                                                 2,112                                                    --                                                  2,112                                                                 --
                                                                                                             -------------------- ---------                                           -------------------- ---------                                           -------------------- ---------- --------------------                                           -------------------- --------------------
Operating income                                                                                                                    118,057                                                                   93,803                                                                   410,230                                                                                                  522,833
Interest and other, net                                                                                           36,445                                                33,586                                                153,997                                                            135,788
                                                                                                             -------------------- ---------                                           -------------------- ---------                                           -------------------- ---------- --------------------                                           -------------------- --------------------
Income before income tax                                                                                                             81,612                                                                   60,217                                                                   256,233                                                                                                  387,045
Income tax expense                                                                                                35,571                                                21,510                                                129,066                                                            132,149
                                                                                                             -------------------- ---------                                           -------------------- ---------                                           -------------------- ---------- --------------------                                           -------------------- --------------------
Net income                                                                                                                           46,041                                                                   38,707                                                                   127,167                                                                                                  254,896
Net income (loss) attributable to noncontrolling interests, net of                                                   362                                                   642                                                 (1,923 )                                                                                 801
tax
                                                                                                             -------------------- ---------                                           -------------------- ---------                                           -------------------- ---------- --------------------                                           -------------------- --------------------
Net income attributable to Jabil Inc.                                                                                           $    45,679                                                              $    38,065                                                              $    129,090                                                                $              254,095
                                                                                                             ==================== =========                                           ==================== =========                                           ==================== ========== ====================                                           ==================== ====================
Earnings per share attributable to the stockholders of Jabil Inc.:
  Basic                                                                                                                         $      0.26                                                              $      0.20                                                              $       0.71                                                                $                 1.33
                                                                                                             ==================== =========                                           ==================== =========                                           ==================== ========== ====================                                           ==================== ====================
  Diluted                                                                                                                       $      0.25                                                              $      0.20                                                              $       0.69                                                                $                 1.32
                                                                                                             ==================== =========                                           ==================== =========                                           ==================== ========== ====================                                           ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                    
Weighted average shares outstanding:
  Basic                                                                                                          178,697                                               189,139                                                181,902                                                            190,413
                                                                                                             ==================== =========                                           ==================== =========                                           ==================== ========== ====================                                           ==================== ====================
  Diluted                                                                                                        182,977                                               191,602                                                185,838                                                            192,750
                                                                                                             ==================== =========                                           ==================== =========                                           ==================== ========== ====================                                           ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                    
 
                                                                                                                      JABIL INC. AND SUBSIDIARIES
                                                                                                            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                            (in thousands)
                                                                                                                              (Unaudited)
                                                                                                                                     
                                                                                                                                                                                     Fiscal year ended
                                                                                                                   ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        August 31,                                                                                     August 31,
                                                                                                                                           2017                                                                                           2016
                                                                                                                   -----------------------------------------------------                                          -----------------------------------------------------
Cash flows from operating activities:
   Net income                                                                                                                         $    127,167                                                                                   $    254,896
   Adjustments to reconcile net income to net cash provided by
   operating activities:
     Depreciation and amortization                                                                                                         760,405                                                                                        696,752
     Restructuring and related charges                                                                                                      94,346                                                                                          1,170
     Provision for allowance for doubtful accounts                                                                                          10,112                                                                                            919
     Recognition of stock-based compensation expense and related charges                                                                    48,544                                                                                         58,997
     Deferred income taxes                                                                                                                 (63,001 )                                                                                      (23,155 )
     Loss on sale of property, plant and equipment                                                                                           1,989                                                                                         12,921
     Other, net                                                                                                                             20,120                                                                                          8,448
   Change in operating assets and liabilities, exclusive of net assets
   acquired:
     Accounts receivable                                                                                                                   (31,353 )                                                                                      122,115
     Inventories                                                                                                                          (445,089 )                                                                                       67,966
     Prepaid expenses and other current assets                                                                                              19,346                                                                                       (194,337 )
     Other assets                                                                                                                          (30,413 )                                                                                       (4,425 )
     Accounts payable, accrued expenses and other liabilities                                                           744,470                                                  (86,060 )
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
   Net cash provided by operating activities                                                                          1,256,643                                                  916,207  
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Cash flows from investing activities:
   Acquisition of property, plant and equipment                                                                                           (716,485 )                                                                                     (924,239 )
   Proceeds from sale of property, plant and equipment                                                                                     175,000                                                                                         26,031
   Cash paid for business and intangible asset acquisitions, net of cash                                                                   (36,620 )                                                                                     (242,143 )
   Issuance of notes receivable                                                                                                                                      --                                                                   (29,380 )
   Investments in non-marketable equity securities                                                                                          (2,033 )                                                                                      (10,250 )
   Other, net                                                                                                               673                                                                            --
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- --------------------------------
   Net cash used in investing activities                                                                               (579,465 )                                                                (1,179,981 )
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Cash flows from financing activities:
   Borrowings under debt agreements                                                                                                      7,434,107                                                                                      6,904,215
   Payments toward debt agreements                                                                                                      (7,479,150 )                                                                                   (6,445,922 )
   Payments to acquire treasury stock                                                                                                     (306,640 )                                                                                     (148,340 )
   Dividends paid to stockholders                                                                                                          (59,959 )                                                                                      (62,436 )
   Net proceeds from exercise of stock options and issuance of common
   stock
     under employee stock purchase plan                                                                                                     21,791                                                                                         20,910
   Treasury stock minimum tax withholding related to vesting of                                                                            (12,268 )                                                                                      (10,656 )
   restricted stock
   Other, net                                                                                                            (2,427 )                                                                    (4,259 )
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
   Net cash (used in) provided by financing activities                                                                 (404,546 )                                                                   253,512  
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Effect of exchange rate changes on cash and cash equivalents                                                              5,228                                                    8,358  
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Net increase (decrease) in cash and cash equivalents                                                                                       277,860                                                                                         (1,904 )
Cash and cash equivalents at beginning of period                                                                        912,059                                                  913,963  
                                                                                                                   -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Cash and cash equivalents at end of period                                                                                            $  1,189,919                                                                $    912,059  
                                                                                                                   ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                        
 
                                                                                                                                                                                                JABIL 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,
                                                                                                                              2017                                                                             2016                                                                              2017                                                                               2016               
                                                                                                       --------------------------------------------------                                          -----------------------------                                          --------------------------------------------------                                          ----------------------------------------------------
Operating income (U.S. GAAP)                                                                                              $ 118,057                                                                                   $  93,803                                                              $ 410,230                                                                                   $    522,833
Amortization of intangibles                                                                                                   9,262                                                                                      10,971                                                                 35,524                                                                                         37,121
Stock-based compensation expense and related charges                                                                         15,167                                                                                         492                                                                 48,544                                                                                         58,997
Restructuring and related charges                                                                                            46,866                                                                                       3,020                                                                160,395                                                                                         11,369
Distressed customer charges                                                                                                                           --                                                                     --                                                                 10,198                                                                                                                  --
Loss on disposal of subsidiaries                                                                           2,112                                                    --                                               2,112                                                                            --
                                                                                                       -------------------- ------- --------------------                                           -------------------- -------                                           -------------------- ------- --------------------                                           -------------------- --------------------------------
Core operating income (Non-U.S. GAAP)                                                                                     $ 191,464                                                                $ 108,286                                                              $ 667,003                                                                $    630,320  
                                                                                                       ==================== ======= ====================                                           ==================== =======                                           ==================== ======= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                            
Net income attributable to Jabil Inc. (U.S. GAAP)                                                                         $  45,679                                                                                   $  38,065                                                              $ 129,090                                                                                   $    254,095
Amortization of intangibles                                                                                                   9,262                                                                                      10,971                                                                 35,524                                                                                         37,121
Stock-based compensation expense and related charges                                                                         15,167                                                                                         492                                                                 48,544                                                                                         58,997
Restructuring and related charges                                                                                            46,866                                                                                       3,020                                                                160,395                                                                                         11,369
Distressed customer charges                                                                                                                           --                                                                     --                                                                 10,198                                                                                                                  --
Loss on disposal of subsidiaries                                                                                              2,112                                                                                          --                                                                  2,112                                                                                                                  --
Impairment on securities                                                                                                                              --                                                                     --                                                                 11,539                                                                                                                  --
Adjustments for taxes                                                                                     (1,933 )                                                                    361                                              (4,726 )                                                                    (2,483 )
                                                                                                       -------------------- ------- --------------------                                           -------------------- -------                                           -------------------- ------- --------------------                                           -------------------- ---------- --------------------
Core earnings (Non-U.S. GAAP)                                                                                             $ 117,153                                                                $  52,909                                                              $ 392,676                                                                $    359,099  
                                                                                                       ==================== ======= ====================                                           ==================== =======                                           ==================== ======= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                            
Earnings per share (U.S. GAAP):
Basic                                                                                                                     $    0.26                                                                $    0.20                                                              $    0.71                                                                $       1.33  
                                                                                                       ==================== ======= ====================                                           ==================== =======                                           ==================== ======= ====================                                           ==================== ========== ====================
Diluted                                                                                                                   $    0.25                                                                $    0.20                                                              $    0.69                                                                $       1.32  
                                                                                                       ==================== ======= ====================                                           ==================== =======                                           ==================== ======= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                            
Core earnings per share (Non-U.S. GAAP):
Basic                                                                                                                     $    0.66                                                                $    0.28                                                              $    2.16                                                                $       1.89  
                                                                                                       ==================== ======= ====================                                           ==================== =======                                           ==================== ======= ====================                                           ==================== ========== ====================
Diluted                                                                                                                   $    0.64                                                                $    0.28                                                              $    2.11                                                                $       1.86  
                                                                                                       ==================== ======= ====================                                           ==================== =======                                           ==================== ======= ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                            
Weighted average shares outstanding used in the calculations
of earnings per share (U.S. GAAP and Non-U.S. GAAP):
Basic                                                                                                                       178,697                                                                  189,139                                                                181,902                                                                     190,413  
                                                                                                                            ======= ====================                                                                =======                                                                ======= ====================                                                                ========== ====================
Diluted                                                                                                                     182,977                                                                  191,602                                                                185,838                                                                     192,750  
                                                                                                                            ======= ====================                                                                =======                                                                ======= ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                            
 
                                   JABIL 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,
                                                                                                                                              2017                                                                                                               2017
                                                                                                                      ----------------------------------------------------                                                               -----------------------------------------------------
Numerator:
Operating income (U.S. GAAP)                                                                                                             $   118,057                                                                                                        $    410,230
Tax effect(1)                                                                                                             (35,771 )                                                                                       (137,087 )
                                                                                                                      -------------------- --------- --------------------                                                                -------------------- ---------- --------------------
After-tax operating income                                                                                                                    82,286                                                                                                             273,143
                                                                                                                                                    x4                                                                                               x1
                                                                                                                      -------------------- -------------------------------                                                               -------------------- --------------------------------
Annualized after-tax operating income                                                                                                    $   329,144                                                                                     $    273,143  
                                                                                                                      ==================== ========= ====================                                                                ==================== ========== ====================
                                                                                                                                                                                                                                                                                               
Core operating income (Non-U.S. GAAP)                                                                                                    $   191,464                                                                                                        $    667,003
Tax effect(2)                                                                                                             (37,610 )                                                                                       (134,930 )
                                                                                                                      -------------------- --------- --------------------                                                                -------------------- ---------- --------------------
After-tax core operating income                                                                                                              153,854                                                                                                             532,073
                                                                                                                                                    x4                                                                                               x1
                                                                                                                      -------------------- -------------------------------                                                               -------------------- --------------------------------
Annualized after-tax core operating income                                                                                               $   615,416                                                                                     $    532,073  
                                                                                                                      ==================== ========= ====================                                                                ==================== ========== ====================
                                                                                                                                                                                                                                                                                               
Denominator:
Average total Jabil Inc. stockholders’ equity(3)                                                              $ 2,340,495                                                                                                        $  2,395,843
Average notes payable, long-term debt and capital lease obligations,
less
  current installments(3)                                                                                                                  1,638,591                                                                                                           1,853,302
Average current installments of notes payable, long-term debt and
capital
  lease obligations(3)                                                                                                                       492,241                                                                                                             245,654
Average cash and cash equivalents(3)                                                                                     (966,925 )                                                                                     (1,050,989 )
                                                                                                                      -------------------- --------- --------------------                                                                -------------------- ---------- --------------------
Net invested capital asset base                                                                                                          $ 3,504,402                                                                                     $  3,443,810  
                                                                                                                      ==================== ========= ====================                                                                ==================== ========== ====================
                                                                                                                                                                                                                                                                                               
Return on Invested Capital (U.S. GAAP)                                                                                                           9.4                      %                                                                                          7.9                      %
Adjustments noted above                                                                                                                          8.2                      %                                                                                          7.6                      %
Core Return on Invested Capital (Non-U.S. GAAP)                                                                                                 17.6                      %                                                                                         15.5                      %
                                                                                                                                                                                                                                                                                               
(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, 2017 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, 2017 and dividing by two.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170927006190r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170927006190/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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