<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
(Mark One)
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
- -----
Exchange Act of 1934
For the quarterly period ended February 28, 1999.
Transition report pursuant to Section 13 or 15(d) of the Securities
- -----
Exchange Act of 1934
For the transition period from _______________ to ______________.
Commission file number: 0-21308
JABIL CIRCUIT, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 38-1886260
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10800 Roosevelt Blvd.
St. Petersburg, FL 33716
(Address of principal executive offices, including zip code)
Registrant's Telephone No., including area code: (727) 577-9749
--------------------------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days:
Yes X No
----- -----
As of March 16, 1999, there were 81,914,058 shares of the Registrant's
-------------- ----------
Common Stock outstanding.
<PAGE> 2
JABIL CIRCUIT, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
- -----------------------------
Item 1. Financial Statements
<S> <C> <C>
Consolidated Balance Sheets at
August 31, 1998 and February 28, 1999....................................................... 3
Consolidated Statements of Earnings for the three months
and six months ended February 28, 1998 and 1999............................................. 4
Consolidated Statements of Cash Flows for the six months
ended February 28, 1998 and 1999............................................................ 5
Notes to Consolidated Financial Statements.................................................. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations............................................... 10
PART II. OTHER INFORMATION
- ---------------------------
Item 4. Submission of Matters to a Vote of Security Holders......................................... 14
Item 6. Exhibits and Reports on Form 8-K............................................................ 15
Signatures.................................................................................. 15
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
August 31, February 28,
1998 1999
---------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets
Cash $ 23,139 $ 18,088
Accounts receivable - Net 126,276 209,092
Inventories 123,097 156,546
Prepaid expenses and other current assets 1,772 6,077
Deferred income taxes 16,095 14,515
--------- ---------
Total current assets 290,379 404,318
Property, plant and equipment, net 224,680 283,823
Other assets 11,644 10,789
--------- ---------
$ 526,703 $ 698,930
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of long term debt $ 8,333 $ 8,333
Accounts payable 132,601 212,870
Accrued expenses 40,460 41,669
Income taxes payable 5,325 10,496
--------- ---------
Total current liabilities 186,719 273,368
Long term debt, less current installments 81,667 121,667
Deferred income taxes 7,724 8,488
Deferred grant revenue 2,227 2,208
--------- ---------
Total liabilities 278,337 405,731
--------- ---------
Stockholders' equity
Common stock 75 75
Additional paid-in capital 71,542 75,472
Retained earnings 176,749 217,652
--------- ---------
Total stockholders' equity 248,366 293,199
$ 526,703 $ 698,930
========= =========
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
3
<PAGE> 4
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Six months ended
February 28, February 28,
------------------------ ------------------------
1998 1999 1998 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net revenue $ 330,688 $ 493,363 $ 650,200 $ 941,304
Cost of revenue 286,628 437,850 564,795 835,216
--------- --------- --------- ---------
Gross profit 44,060 55,513 85,405 106,088
Operating expenses:
Selling, general and administrative 12,858 19,588 23,935 37,906
Research and development 879 989 1,791 2,055
--------- --------- --------- ---------
Operating income 30,323 34,936 59,679 66,127
Interest expense, net 1,134 1,670 1,847 3,190
--------- --------- --------- ---------
Income before income taxes 29,189 33,266 57,832 62,937
Income taxes 9,050 11,650 18,622 22,035
--------- --------- --------- ---------
Net income $ 20,139 $ 21,616 $ 39,210 $ 40,902
========= ========= ========= =========
Earnings per share:
Basic $ 0.27 $ 0.29 $ 0.53 $ 0.55
========= ========= ========= =========
Diluted $ 0.26 $ 0.28 $ 0.51 $ 0.52
========= ========= ========= =========
Common shares used in the calculations
of earnings per share:
Basic 74,160 74,848 74,100 74,707
========= ========= ========= =========
Diluted 77,128 78,379 77,240 78,016
========= ========= ========= =========
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
4
<PAGE> 5
JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Six months ended
February 28,
-----------------------
1998 1999
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 39,210 $ 40,903
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 15,303 28,051
Recognition of grant revenue (406) (415)
Deferred income taxes 706 2,344
Loss on sale of property 115 917
Changes in operating assets and liabilities:
Accounts receivable (2,558) (82,816)
Inventories 6,073 (33,449)
Prepaid expenses and other current assets (278) (4,305)
Other assets 9 198
Accounts payable and accrued expenses 11,539 87,306
-------- --------
Net cash provided by operating activities 69,713 38,734
-------- --------
Cash flows from investing activities:
Acquisition of property, plant and equipment (58,420) (87,646)
Proceeds from sale of property and equipment 63 193
-------- --------
Net cash used in investing activities (58,357) (87,453)
-------- --------
Cash flows from financing activities:
Increase in note payable to bank -- 40,000
Payments of long-term debt (2,475) --
Net proceeds from issuance of common stock 1,342 3,273
Proceeds from Scottish grant -- 395
-------- --------
Net cash provided (used) by financing activities (1,133) 43,668
-------- --------
Net increase (decrease) in cash 10,223 (5,051)
Cash at beginning of period 45,457 23,139
-------- --------
Cash at end of period $ 55,680 $ 18,088
======== ========
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
5
<PAGE> 6
JABIL CIRCUIT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying consolidated financial statements of Jabil
Circuit, Inc. and subsidiaries ("the Company") are unaudited and have
been prepared based upon prescribed guidance of the Securities and
Exchange Commission ("SEC"). As such, they do not include all
disclosures required by generally accepted accounting principles, and
should be read in conjunction with the annual audited consolidated
financial statements as of and for the year ended August 31, 1998
contained in the Company's 1998 annual report on Form 10-K. In the
opinion of management, the accompanying consolidated financial
statements include all adjustments, consisting of normal and recurring
adjustments necessary for a fair presentation of the financial
position, results of operations and cash flows for the periods
presented when read in conjunction with the annual audited
consolidated financial statements and related notes thereto. The
results of operations for the three and six-month periods ended
February 28, 1999 are not necessarily indicative of the results that
should be expected for a full fiscal year.
REVENUE RECOGNITION
The Company typically recognizes revenue at the time of
product shipment. Such revenue is recognized net of estimated product
returns and warranty costs. At February 28, 1999 such estimated
amounts for returns and warranties are not considered material.
In connection with the August 3, 1998 acquisition of the net
assets of Hewlett-Packard Company ("HP") laser printer operations, the
Company entered into an agreement with HP to produce laser printer
component products. During the first year of the agreement, the
Company receives compensation for available capacity, as well as
compensation for the raw material content of actual units produced.
The available capacity compensation is recorded on a units produced
basis.
6
<PAGE> 7
EARNINGS PER SHARE
<TABLE>
<CAPTION>
In thousands Three months ended Six months ended
February 28, February 28,
1998 1999 1998 1999
----------------------------------------------
<S> <C> <C> <C> <C>
Numerator:
Net income $20,139 $21,616 $39,210 $40,902
Denominator:
Denominator for basic
EPS-weighted-average shares 74,160 74,848 74,100 74,707
Effect of dilutive securities:
Employee stock options 2,968 3,531 3,140 3,309
----------------------------------------------
Denominator for diluted EPS-
adjusted weighted-average shares 77,128 78,379 77,240 78,016
==============================================
Basic EPS $ 0.27 $ 0.29 $ 0.53 $ 0.55
==============================================
Diluted EPS $ 0.26 $ 0.28 $ 0.51 $ 0.52
==============================================
</TABLE>
For the three-month and six-month periods ended February 28,
1999, options to purchase 0 and 144,000, respectively, shares of
common stock were outstanding during the period but were not included
in the computation of diluted earnings per share because the options'
exercise prices were greater than the average market price of the
common shares, and therefore, the effect would be anti-dilutive. For
the three-month and six-month periods ended February 28, 1998, 80,000
such options existed.
STOCK SPLIT
All share and per share information presented herein and in
the Company's Consolidated Financial Statements has been retroactively
restated to reflect a two-for-one stock split of the Company's Common
Stock, par value $.001 per share ("Common Stock"), on February 18,
1999, paid in the form of a stock dividend, to holders of record on
February 5, 1999.
COMMITMENTS AND CONTINGENCIES
On March 2, 1999, the Company received correspondence from
legal counsel for the Lemelson Medical, Education & Research
Foundation Limited Partnership ("Lemelson") advising that it had been
named as a defendant, along with 87 other
7
<PAGE> 8
companies engaged in the electronics and other industries, in a patent
infringement lawsuit filed by Lemelson in the U.S. District Court for
the District of Arizona on February 26, 1999. The defendants include
suppliers, customers, and competitors of ours. The complaint alleges
that the Company and the other defendants are each infringing as many
as 18 patents held by Lemelson relating to the defendants'
manufacturing processes and products. The Company is currently
reviewing the complaint and has not yet determined how it will
respond. The complaint seeks to enjoin the defendants from further
alleged acts of infringement, an unspecified amount of damages to
compensate Lemelson for alleged past infringement, together with
interest and costs, such damages to be trebled due to alleged willful
infringement, reasonable attorney's fees, and such other relief that
the court may award. The correspondence from Lemelson's legal counsel,
however, advised the Company that Lemelson is offering to license the
patents alleged to be infringed. Based on management's understanding
of the terms that Lemelson has made available to certain licensees,
the Company believes that obtaining a license from Lemelson under the
same or similar terms would not have a material adverse effect on
results of operations or financial condition. The Company has not yet
determined, however, whether to seek to obtain such a license, and
cannot be assured that it will be offered the same or similar terms or
that the ultimate resolution of this matter will not have a material
adverse effect on the Company's consolidated financial statements.
The Company is party to certain other lawsuits in the
ordinary course of business. Management does not believe that these
proceedings, individually or in aggregate, are material or that any
adverse outcomes of these lawsuits will have a material adverse effect
on the Company's consolidated financial statements.
SUBSEQUENT EVENT
On March 10, 1999, the Company completed an equity offering
of 12,075,000 shares of its Common Stock (including 1,575,000 shares
that were issued to cover the underwriters' over-allotments). The
Company sold 6,900,000 shares and certain Company stockholders sold
5,175,000 shares at $30 per share. Net proceeds to the Company were
approximately $199 million. The net proceeds of the offering of shares
sold by the Company will be used for repayment of debt under the
Company's credit facility, for capital expenditures and for general
corporate purposes, including working capital and possible
acquisitions.
NEW ACCOUNTING PRONOUNCEMENTS
Effective September 1, 1998, the Company adopted Statement of
Financial Accounting Standards No. 130, Reporting Comprehensive
Income. Statement 130 establishes standards for reporting
comprehensive income. The Statement defines comprehensive income as
the change in equity of an enterprise except those resulting
8
<PAGE> 9
from shareholder transactions. During the six months ended February
28, 1999, changes in stockholders' equity consisted of net income and
the exercise of stock options. Accordingly, comprehensive income as
defined by Statement 130 was equal to net income as shown in the
accompanying unaudited Consolidated Statement of Earnings.
In June 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 131, Disclosures About
Segments of an Enterprise and Related Information. Statement 131
establishes standards for related disclosures about the products and
services, geographic areas, and major customers of an enterprise. The
Company will be required to adopt this Statement in its 1999 annual
consolidated financial statements. As this Statement addresses
reporting and disclosure issues only, there will be no impact on
earnings from its adoption.
Statement 133 - Accounting for Derivative Instruments and
Hedging Activities. Statement 133 establishes methods of accounting
for derivative financial instruments and hedging activities related to
those instruments as well as other hedging activities. The Company is
currently evaluating this Statement and has yet to form an opinion on
whether its adoption will have any significant impact on the Company's
consolidated financial statements. The Company will be required to
implement Statement 133 for its fiscal year ending August 31, 2000.
Statement of Position 98-5 Reporting on the Costs of Start Up
Activities. SOP 98-5 establishes standards on the financial reporting
of start-up costs and organization costs. SOP 98-5 requires costs of
start-up activities and organization costs to be expensed as incurred.
The SOP is effective for financial statements for fiscal years
beginning after December 15, 1998. As the Company has historically
made a practice of expensing costs related to both the establishment
of greenfield manufacturing facilities and the set-up of production
lines as such costs are incurred, it does not anticipate that the
adoption of SOP 98-5 will have any material impact on its consolidated
financial statements.
NOTE 2. BALANCE SHEET DETAIL
The components of inventories consist of the following:
<TABLE>
<CAPTION>
In thousands August 31, February 28,
1998 1999
---- ----
(Unaudited)
<S> <C> <C>
Finished goods 5,823 6,582
Work-in-process 15,955 17,486
Raw materials 101,319 132,478
------- -------
123,097 156,546
======= =======
</TABLE>
9
<PAGE> 10
JABIL CIRCUIT, INC. AND SUBSIDIARIES
This Management's Discussion and Analysis of Financial Condition and
Results of Operations contains certain forward-looking statements within the
meaning of that term in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. Factors
that could cause actual events or results to differ materially from those
referenced in such forward-looking statements include those described in the
section herein entitled "Factors Affecting Future Results" and in the Company's
other filings with the Securities and Exchange Commission. The words "believe,"
"expect," "intend," "anticipate," "plan" and similar expressions and variations
thereof identify certain of such forward-looking statements, which speak only
as of the dates on which they are made. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual events and results may differ
materially from those indicated in the forward-looking statements as a result
of various factors. Readers are cautioned not to place undue reliance on any
forward-looking statements.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company's net revenue for the second quarter and first six months
of fiscal 1999 increased 49% and 45% to $494 million and $941 million,
respectively, from $331 million and $650 million in the second quarter and
first six months of fiscal 1998. These increases from the previous fiscal year
were primarily due to increased production of communications products as well as
incremental revenue due to the recent acquisition of certain manufacturing and
related assets comprising the "Formatter Manufacturing Organization" business
unit of Hewlett-Packard Company ("HP acquisition"). Foreign source revenue
represented 31% of net revenue for the second quarter and first six months of
fiscal 1999 compared to 31% and 33% for the same periods of fiscal 1998. The
decrease in foreign source revenue in the six-month period as compared to the
prior year was attributable to increased production at the Company's domestic
locations in addition to the incremental revenue due to the HP acquisition.
Gross margin decreased to 11.3% in the second quarter of fiscal 1999
from 13.3% for the same period of fiscal 1998 reflecting a higher content of
material-based revenue from the HP acquisition and underutilization of assets
in certain international factories. Gross margin decreased to 11.3% in the
first six months of fiscal 1999 from 13.1% for the same period of fiscal 1998
reflecting a higher content of material-based revenue from the HP acquisition
and underutilization of assets in certain international factories offset in
part by a one-time recovery of costs associated with defective materials from a
supplier.
Selling, general and administrative expenses in the second quarter of
fiscal 1999 increased to 4.0% of net revenue compared to 3.9% in the prior
fiscal year, while increasing in absolute dollars from $12.9 million in the
second quarter of fiscal 1998 to $19.6 million in the second quarter of fiscal
1999. Selling, general and administrative expenses in the first six months of
fiscal 1999 increased to 4.0% of net revenue compared to 3.7% in the prior
fiscal year, while increasing in absolute dollars from $23.9 million in fiscal
1998 to $37.9 million in fiscal 1999.
10
<PAGE> 11
The dollar increases were primarily due to increased staffing and related
departmental expenses at all the Company's locations, increased information
systems staff to support the expansion of the Company's business, and staffing
at the acquired HP sites.
Research and development expenses decreased to 0.2% of net revenue for
the second quarter and first six months of fiscal 1999 as compared to 0.3% for
the same periods of fiscal 1998. In absolute dollars, the expenses increased
approximately $0.1 and $0.3 million, respectively, versus the same periods of
fiscal 1998 due to the expansion of circuit design activities.
Interest expense increased approximately $0.5 and $1.3 million,
respectively, in the second quarter and first six months of fiscal 1999 to $1.7
and $3.2 million as a result of increased borrowings to support the HP
acquisition and increased working capital requirements.
The Company's effective tax rate increased to 35.0% in the second
quarter and first six months of fiscal 1999 from 31.0% and 32.2% in the second
quarter and first six months of fiscal 1998. The fiscal 1999 tax rate is higher
primarily due to increased levels of domestic income as compared to the same
period of fiscal 1998.
BUSINESS FACTORS
Due to the nature of turnkey manufacturing and the Company's
relatively small number of customers, the Company's quarterly operating results
are affected by the level and timing of orders, the level of capacity
utilization of its manufacturing facilities and associated fixed costs,
fluctuations in material costs, and by the mix of material costs versus
manufacturing costs. Similarly, operating results are affected by price
competition, level of experience in manufacturing a particular product, degree
of automation used in the assembly process, efficiencies achieved by the
Company in managing inventories and fixed assets, timing of expenditures in
anticipation of increased sales, customer product delivery requirements, and
shortages of components or labor. In the past, some of the Company's customers
have terminated their manufacturing arrangement with the Company, and other
customers have significantly reduced or delayed the volume of manufacturing
services ordered from the Company. Any such termination of a manufacturing
relationship or change, reduction or delay in orders could have an adverse
affect on the Company's results of operations.
LIQUIDITY AND CAPITAL RESOURCES
At February 28, 1999, the Company's principal sources of liquidity
consisted of cash and available borrowings under the Company's credit
facilities. The Company and its subsidiaries have committed line of credit
facilities in place with a syndicate of banks that provide up to $225 million
of working capital borrowing capacity. As of February 28, 1998, the Company was
utilizing $80 million of its revolving credit facility.
11
<PAGE> 12
The Company generated $38.7 million of cash in operating activities
for the six months ended February 28, 1999. The generation of cash was
primarily due to net income of $40.9 million, depreciation and amortization of
$28.1 million, an increase of $87.3 million in accounts payable and accrued
expenses, offset by an increase in accounts receivable of $82.8 million, an
increase in inventories of $33.4 million, and an increase in prepaid expenses
and other current assets of $4.3 million.
Net cash used in investing activities of $87.5 million for the six
months ended February 28, 1999 was a result of the Company's capital
expenditures for equipment worldwide in order to support increased activities
as well as building and land activity for the Boise, Guadalajara and St.
Petersburg facilities.
On March 10, 1999, the Company completed an equity offering of
12,075,000 shares of its Common Stock (including 1,575,000 shares that were
issued to cover the underwriters' over-allotments). The Company sold 6,900,000
shares and certain Company stockholders sold 5,175,000 shares at $30 per share.
Net proceeds to the Company were approximately $199 million. The net proceeds
of the offering of shares sold by the Company will be used for repayment of
debt under the Company's credit facility, for capital expenditures and for
general corporate purposes, including working capital and possible
acquisitions.
The Company believes that cash on-hand, funds provided by operations
and available borrowings under the credit facility will be sufficient to
satisfy its currently anticipated working capital and capital expenditure
requirements for the next twelve months.
"YEAR 2000" READINESS
The Company is aware of and is addressing the Year 2000 issue. The
Year 2000 issue creates risks for the Company from unforeseen problems in its
own computer systems and from third parties with whom the Company deals.
Failure of the Company's and/or third parties computer systems, manufacturing
equipment and control systems could have a material adverse effect on the
Company's results from operations.
The Company is actively taking steps to ensure that its global
information technology infrastructure and business system applications,
manufacturing equipment and systems will be Year 2000 compliant while seeking
adequate assurances from third parties with whom the Company conducts business,
that any such systems shall be Year 2000 compliant. A global team, overseen by
a corporate officer, has been formed and has implemented a proactive
multi-phase approach, which includes assessing the scope of work, prioritizing,
certifying compliance, and testing compliance.
As of the end of fiscal 1998 the Company was substantially complete
in its compliance certification process of its global information technology
infrastructure. Most of the Company's global business systems are currently
being replaced by a Year 2000 compliant application; for the majority of
factories this process is expected to be complete by January 1, 2000. As a
12
<PAGE> 13
contingency, however, legacy systems have been upgraded to be Year 2000
compliant and are in the process of being tested.
As of the end of fiscal 1998, manufacturing and test equipment and
local plant business systems had been identified and prioritized in terms of
Year 2000 compliance. As of February 28, 1999, 90% of all equipment and systems
had been certified as assessed for compliance. It is anticipated that the
remaining 10% will be assessed by the end of the first calendar quarter of
1999, at which time compliance testing and verification will commence.
The Company is also in the process of assessing its suppliers. The
initial phase of the assessment has been completed as of the end of calendar
1998. Early in calendar 1999, the Company anticipates validating its suppliers'
representations where deemed appropriate, and will develop sourcing contingency
plans in areas where the Company assesses that supplier readiness is
insufficient.
The Company estimates the total cost to complete its remediation to
be approximately $3.8 million. The Company is unable to fully determine the
effect of failure of its own systems or those of third parties with which it
does business, but any significant failures could have an material adverse
effect on the Company's financial position, results of operations and cash
flows.
13
<PAGE> 14
JABIL CIRCUIT, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
At the Company's Annual Meeting of Shareholders, held on January 28,
1999, the following proposals were voted upon by the shareholders as
indicated below:
1. To elect the board of directors
<TABLE>
<CAPTION>
Number of Shares
----------------
For Withheld
--- --------
<S> <C> <C>
William D. Morean 33,020,504 157,789
Thomas A. Sansone 33,019,104 159,189
Ronald J. Rapp 33,019,904 158,389
Lawrence J. Murphy 32,905,604 272,689
Mel S. Lavitt 33,061,794 116,499
Steven A. Raymund 33,066,124 112,169
Frank A. Newman 33,058,088 120,205
</TABLE>
2. To approve an amendment to the Jabil Circuit, Inc. 1992 Stock
Option Plan
<TABLE>
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C>
24,025,115 9,122,786 30,392
</TABLE>
3. To approve an amendment to the Company's Certificate of
Incorporation to increase the number of authorized shares of Common
Stock from 60,000,000 to 120,000,000
<TABLE>
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C>
31,872,125 1,278,657 27,511
</TABLE>
4. To ratify the selection of KPMG LLP as independent auditors for the
Company
<TABLE>
<CAPTION>
For Against Abstain
--- ------- -------
<S> <C> <C>
32,953,402 158,250 66,641
</TABLE>
14
<PAGE> 15
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule.
(b) Reports on Form 8-K
There were no reports on Form 8-K filed by the
Registrant during the quarter ended February 28,
1999.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Jabil Circuit, Inc.
Registrant
Date: April 14, 1999 By: /s/ Timothy L. Main
-------------- -------------------
Timothy L. Main
President
Date: April 14, 1999 By: /s/ Chris A. Lewis
-------------- ------------------
Chris A. Lewis
Chief Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF INCOME FILED AS
PART OF THE QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> FEB-28-1999
<CASH> 18,088
<SECURITIES> 0
<RECEIVABLES> 212,188
<ALLOWANCES> 3,096
<INVENTORY> 156,546
<CURRENT-ASSETS> 404,318
<PP&E> 401,882
<DEPRECIATION> 118,059
<TOTAL-ASSETS> 698,930
<CURRENT-LIABILITIES> 273,369
<BONDS> 0
0
0
<COMMON> 75
<OTHER-SE> 293,124
<TOTAL-LIABILITY-AND-EQUITY> 698,930
<SALES> 941,304
<TOTAL-REVENUES> 941,304
<CGS> 835,216
<TOTAL-COSTS> 875,177
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,190
<INCOME-PRETAX> 62,937
<INCOME-TAX> 22,035
<INCOME-CONTINUING> 40,902
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40,902
<EPS-PRIMARY> 0.55
<EPS-DILUTED> 0.52
</TABLE>
