<PAGE> 1
EXHIBIT 99.2
This release contains certain forward-looking statements, which are subject to a
number of risks and uncertainties. Some factors that could cause actual results
to differ materially include: business conditions and growth in the electronics
manufacturing industry and the general economy; variability of operating
results; dependence on a limited number of customers; limited availability of
components; dependence on certain industries; variability of customer
requirements; and other risk factors described in the company's most recently
filed SEC documents such as the Form 10-K, filed 11/12/99.
JABIL CIRCUIT REVENUE GROWS 66 PERCENT
RECORD EARNINGS INCREASE 50 PERCENT
St. Petersburg, FL - June 15, 2000....Electronics manufacturing services
provider Jabil Circuit, Inc. (NYSE: JBL) today reported record revenue for the
third fiscal quarter of 2000, ended May 31, 2000. Revenue for the quarter
increased 66 percent to $965.8 million compared to $ 582.2 million for the same
period of fiscal 1999.
Jabil's third quarter of fiscal 2000 net income increased 55 percent to $38.2
million compared with $24.6 million for the third quarter of fiscal 1999. Third
quarter earnings per share were $0.21 per diluted share, representing a 50
percent increase compared to fiscal 1999 earnings of $0.14 per diluted share.
This excludes the impact of a goodwill write-off of approximately $4 million, or
$0.02 recorded in the third quarter of fiscal 1999.
Gross profit for fiscal 2000 third quarter increased 48 percent to $94.5 million
or 9.8 percent of revenue compared to $63.8 million or 11.0 percent of revenue
for the corresponding quarter of fiscal 1999.
Operating income for the third fiscal quarter of 2000 increased 49 percent to $
58.4 million or 6.0 percent of revenue compared to $39.2 million or 6.7 percent
of revenue for the third fiscal quarter of 1999.
Revenues for the first nine months of fiscal year 2000 increased 52 percent to
$2.5 billion, compared to $1.6 billion for the same time period of fiscal 1999.
Net income for the first nine months of fiscal 2000 increased 54 percent to
$103.3 million, compared with $66.9 million last fiscal year. Diluted earnings
per share for the first nine months of fiscal 2000 increased 43.6 percent to
$0.56 compared to $0.39 for the same period of fiscal 1999. This excludes the
impact of a goodwill write-off of approximately $4 million, or $0.02 EPS
recorded in the third fiscal quarter of 1999 and an acquisition-related charge
of approximately $5 million, or $0.02 EPS recorded in the first quarter of
fiscal 2000.
INCOME STATEMENT -- SEQUENTIAL TREND HIGHLIGHTS
> Revenue in the third fiscal quarter increased by 15 percent from the
second quarter, reflecting solid production levels in most business
segments.
> Gross margin was 9.8 percent of revenue for the quarter, reflecting an
increase in production with a more materials-intensive mix.
(M O R E )
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Q3 00 Results Release -- Add One
> Operating income increased sequentially by 15 percent to $58.4 million,
or 6.0 percent of revenue. Operating results represent a cumulative
operating income growth of 49 percent in the first nine months of the
fiscal year - surpassing the company's annual goal of 30 percent.
Growth of absolute operating income is Jabil's key financial objective.
This excludes the impact of an acquisition-related charge of
approximately $4 million, or $0.02 EPS recorded in the third fiscal
quarter of 1999 and approximately $5 million, or $0.02 EPS recorded in
the first quarter of fiscal 2000.
> Net income after tax was $38.2 million or 4.0 percent of revenue, as
compared to 4.1 percent in the prior sequential quarter.
> Earnings per share for third fiscal quarter of 2000 were $0.21 on an
average 185 million shares during the period, fully diluted.
BALANCE SHEET -- SEQUENTIAL TREND HIGHLIGHTS
> Accounts receivable increased by $58 million to $437 million at the end
of the third quarter of fiscal 2000, as compared to $379 million at the
end of the second quarter. Calculated days sales outstanding were 40,
improved from 41 in the second quarter.
> Inventories increased by $57 million in the third quarter to $410
million as compared to $353 million as of the end of February.
Calculated inventory turns were 9, consistent with the prior quarter.
> Debt-to-capitalization ratio for the period was 24 percent.
> Average return on assets for the period was 11 percent.
> Average return on equity for the period was 23 percent.
BUSINESS OUTLOOK
(NOTE: THE FOLLOWING STATEMENTS ARE FORWARD LOOKING;
ACTUAL RESULTS MAY DIFFER MATERIALLY.)
Jabil President Tim Main said, " We are delighted with the continued strength of
our core organic growth engine and with the committed efforts our employees
worldwide. Growth at this pace is challenging and we thank our customers and
congratulate our employees and suppliers for accomplishing another record
quarter. We see continued growth on the horizon and will support this growth
through plant expansions and selective acquisitions."
Jabil Circuit, Inc. is an electronic manufacturing services provider for
international electronics companies in the communications, personal computer,
peripheral, consumer and automotive markets. Jabil offers circuit design, board
design from schematic, mechanical and production design, prototype assembly,
volume board assembly and system assembly services from eight countries, serving
markets in North and South America, Europe and Asia.
# #
Statement of earnings and balance sheet data for Q300 attached.
CONTACT: Beth Walters, (727) 577-9749 or [email protected]
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Nine months ended
------------------------- -----------------------------
May 31, May 31, May 31, May 31,
2000 1999 2000 1999
--------- --------- ----------- -----------
<S> <C> <C> <C> <C>
Net revenue $ 965,849 $ 582,238 $ 2,493,233 $ 1,636,056
Cost of revenue 871,307 518,417 2,241,221 1,457,438
--------- --------- ----------- -----------
Gross profit 94,542 63,821 252,012 178,618
Operating expenses:
Selling, general and administrative 34,327 22,902 92,990 66,179
Research and development 1,142 1,387 3,527 4,276
Amortization of intangibles 716 287 1,959 938
Acquisition-related charge -- -- 5,153 --
Goodwill write-off -- 3,578 -- 3,578
--------- --------- ----------- -----------
Operating income 58,357 35,667 148,383 103,647
Interest income (819) (1,507) (2,031) (2,229)
Interest expense 3,859 1,482 5,898 5,697
--------- --------- ----------- -----------
Income before income taxes 55,317 35,692 144,516 100,179
Income tax expense 17,144 13,310 45,919 35,528
--------- --------- ----------- -----------
Net income $ 38,173 $ 22,382 $ 98,597 $ 64,651
========= ========= =========== ===========
Earnings per share:
Basic $ 0.22 $ 0.13 $ 0.56 $ 0.39
========= ========= =========== ===========
Diluted $ 0.21 $ 0.12 $ 0.54 $ 0.38
========= ========= =========== ===========
Common shares used in the
calculations
of earnings per share:
Basic 176,674 173,130 175,736 164,152
========= ========= =========== ===========
Diluted 184,960 181,328 184,085 171,584
========= ========= =========== ===========
</TABLE>
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
MAY 31, AUGUST 31,
2000 1999
---------- ----------
ASSETS
Current assets
Cash and cash equivalents 38,999 125,949
Short-term investments -- 27,176
Accounts receivable - Net 437,333 261,078
Inventories 409,983 217,840
Prepaid expenses and other current assets 36,872 15,174
Deferred income taxes 13,638 13,896
---------- ----------
Total current assets 936,825 661,113
Property, plant and equipment, net 501,322 353,522
Other assets 41,048 20,786
---------- ----------
1,479,195 1,035,421
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of long term debt 8,333 10,989
Short-term debt -- 21,501
Accounts payable 462,731 300,093
Accrued expenses 75,669 59,186
Income taxes payable 8,905 20,511
---------- ----------
Total current liabilities 555,638 412,280
Long term debt, less current installments 205,000 33,333
Deferred income taxes 23,211 10,199
Deferred grant revenue 3,165 1,798
---------- ----------
Total liabilities 787,014 457,610
---------- ----------
Stockholders' equity
Common stock 177 175
Additional paid-in capital 312,784 296,688
Retained earnings 379,763 281,166
Currency translation (543) (218)
---------- ----------
Total stockholders' equity 692,181 577,811
---------- ----------
1,479,195 1,035,421
========== ==========
