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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 16, 2000
JABIL CIRCUIT, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 001-14063 38-1886260
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
10560 Ninth Street North, St. Petersburg, Florida 33716
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(Address of principal executive offices, including zip code)
Registrant's Telephone No., including area code: (727) 577-9749
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JABIL CIRCUIT, INC.
Item 5. Other Events.
On March 16, 2000, Jabil Circuit, Inc., a Delaware corporation, issued
the press release attached hereto as Exhibit 99 and incorporated by reference
herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 Press Release dated March 16, 2000.
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 hereunto duly authorized.
Jabil Circuit, Inc.
Registrant
Date: March 16, 2000 By: /s/ Chris A. Lewis
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Chris A. Lewis
Chief Financial Officer
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EXHIBIT 99
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 contract
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 12/7/99.
JABIL CIRCUIT POSTS RECORD REVENUE & EARNINGS
ANNOUNCES TWO-FOR-ONE STOCK SPLIT
St. Petersburg, FL - March 16, 2000....Jabil Circuit, Inc. (NYSE: JBL),
electronics manufacturer to the world market for circuit board assemblies and
services, today reported record revenue for the second fiscal quarter of 2000,
ended February 29, 2000. Revenue for the quarter increased 50 percent to $837.6
million compared to $ 558.7 million for the same period of fiscal 1999.
Jabil's second quarter of fiscal 2000 net income increased 52 percent to $33.9
million or $0.37 per diluted share compared with $22.3 million or $0.27 per
diluted share for the second quarter of fiscal 1999.
Gross profit for fiscal 2000 second quarter increased 40 percent to $84.1
million or 10 percent of revenue compared to $60.1 million or 10.8 percent of
revenue for the corresponding quarter of fiscal 1999.
Operating income for the second fiscal quarter of 2000 increased 41 percent to
$50.6 million or 6 percent of revenue compared to $35.9 million or 6.4 percent
of revenue for the second fiscal quarter of 1999.
Revenues for the first six months of fiscal year 2000 increased 45 percent to
$1.5 billion, compared to $1.1 billion for the same time period of fiscal 1999.
Net income for the first six months of fiscal 2000 increased 54 percent to $
65.1 million, compared with $42.3 million last fiscal year. Diluted earnings per
share for the first six months of fiscal 2000 increased 39 percent to $0.71
compared to $0.51 for the same period of fiscal 1999. This excludes the impact
of an acquisition-related charge of approximately $5 million, or $0.05 EPS
recorded in the first fiscal quarter of 2000.
The Company announced a stock split in the form of a 100 percent stock dividend.
The record date for the stock split will be March 23, 2000 with distribution of
the split shares on March 30, 2000. Jabil Circuit shares will begin trading on a
split basis at the opening of the market on March 31, 2000. The stock dividend
will increase the number of Common Stock shares outstanding from approximately
92.3 million shares to approximately 184.6 million shares.
(M O R E )
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Q2 00 Results Release -- Add One
INCOME STATEMENT -- SEQUENTIAL TREND HIGHLIGHTS
o Revenue in the second fiscal quarter increased by 21 percent from the first
quarter, reflecting solid production levels in most business segments.
o Gross margin was 10 percent of revenue for the quarter, reflecting an
increase in production with a more materials-intensive mix.
o Operating income increased sequentially by 14 percent to $50.6 million, or
6.0 percent of revenue. Operating results represent a cumulative operating
income growth of 29 percent in the first six months of the fiscal year -
nearly attaining the company's annual goal of 30 percent in just two
quarters. Growth of operating income is Jabil's key financial objective.
This excludes the impact of an acquisition-related charge of approximately
$5 million, or $0.05 EPS recorded in the first fiscal quarter of 2000.
o Net income after tax was $33.9 million or 4.1 percent of revenue, as
compared to 4.5 percent in the prior sequential quarter. This excludes the
impact of an acquisition-related charge of approximately $5 million, or
$0.05 EPS recorded in the first fiscal quarter of 2000.
o Earnings per share for second fiscal quarter of 2000 were $0.37 on an
average 92.3 million shares during the period, fully diluted.
BALANCE SHEET -- SEQUENTIAL TREND HIGHLIGHTS
o Accounts receivable increased by $60 million to $379 million in the second
quarter of fiscal 2000, as compared to $319 million in the first quarter.
Calculated days sales outstanding were 41, compared to 42 in the first
quarter.
o Inventories increased by $54 million in the second quarter to $353 million
as compared to $299 million as of the end of November. Calculated inventory
turns were 9, an improvement from 8 in the prior quarter.
o Debt-to-capitalization ratio for the period was 17 percent.
o Average return on assets for the period was 11.1 percent.
o Average return on equity for the period was 21.6 percent.
BUSINESS OUTLOOK
(NOTE: THE FOLLOWING STATEMENTS ARE FORWARD LOOKING; ACTUAL RESULTS MAY DIFFER
MATERIALLY.)
Jabil President Tim Main said, "We are very pleased with the continuing strength
of our core business and the performance and contributions of our employees in a
challenging growth environment. In support of this growth, we will continue to
invest in our core competencies to maintain and improve upon our performance and
fundamental manufacturing execution."
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 12 locations in North
and South America, Europe and Asia.
# #
Statement of earnings and balance sheet data for Q200 attached.
CONTACT: Beth Walters, (727) 577-9749 or beth_walters @ jabil.com
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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 Six months ended
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February 29, February 28, February 29, February 28,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Net revenue $ 837,562 $ 558,703 $ 1,527,384 $ 1,053,818
Cost of revenue 753,479 498,601 1,369,914 939,021
--------- --------- ----------- -----------
Gross profit 84,083 60,102 157,470 114,797
Operating expenses:
Selling, general and administrative 31,612 22,452 58,663 43,277
Research and development 1,203 1,432 2,385 2,889
Amortization of intangibles 644 294 1,243 651
Acquisition-related charge -- -- 5,153 --
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Operating income 50,624 35,924 90,026 67,980
Interest income (32) (419) (1,212) (748)
Interest expense 1,474 2,311 2,039 4,240
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Income before income taxes 49,182 34,032 89,199 64,488
Income tax expense 15,246 11,778 28,775 22,218
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Net income $ 33,936 $ 22,254 $ 60,424 $ 42,270
========= ========= =========== ===========
Earnings per share:
Basic $ 0.39 $ 0.28 $ 0.69 $ 0.53
========= ========= =========== ===========
Diluted $ 0.37 $ 0.27 $ 0.66 $ 0.51
========= ========= =========== ===========
Common shares used in the
calculations of earnings per share:
Basic 87,857 79,972 87,634 79,831
========= ========= =========== ===========
Diluted 92,257 83,503 91,823 83,140
========= ========= =========== ===========
</TABLE>
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JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
February 29, August 31,
2000 1999
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<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 56,612 $ 125,949
Short-term investments -- 27,176
Accounts receivable - Net 379,223 261,078
Inventories 353,326 217,840
Prepaid expenses and other current assets 24,129 14,794
Deferred income taxes 14,227 13,896
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Total current assets 827,517 660,733
Property, plant and equipment, net 439,879 353,522
Other assets 40,470 20,786
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$ 1,307,866 $ 1,035,041
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current installments of long term debt $ 8,333 $ 9,610
Short-term debt -- 21,501
Accounts payable 427,863 300,093
Accrued expenses 59,917 59,186
Income taxes payable 10,863 20,511
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Total current liabilities 506,976 410,901
Long term debt, less current installments 128,333 34,712
Deferred income taxes 21,232 10,199
Deferred grant revenue 3,443 1,798
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Total liabilities 659,984 457,610
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Stockholders' equity
Common stock 88 87
Additional paid in capital 306,746 296,396
Retained earnings 341,590 281,166
Cumulative translation adjustment (542) (218)
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Total stockholders' equity 647,882 577,431
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$ 1,307,866 $ 1,035,041
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</TABLE>
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