Jabil delivers another strong fiscal year
St. petersburg, fla.--(business wire)--today, jabil inc. (nyse: jbl), reported preliminary, unaudited financial results for its fourth quarter and fiscal year ended august 31, 2018. “i’m really pleased with our fiscal 2018 results and the positive momentum we’re seeing across the business,” said ceo mark mondello. “our team’s performance during the year culminated in double-digit revenue growth, 24 percent core eps expansion and core roic of 19 percent, an increase of approximately 400 basis points year-on-year. at the same time, we made strategically important investments in areas like additive manufacturing and factory automation, while the underlying business allowed for nearly $1 billion in cash flow generation and $500 million in shareholder returns. by many measures, 2018 was another great year as we position the company to continue to deliver on our stated goals,” he added. fiscal year 2018 highlights: net revenue: $22.1 billion diversified manufacturing services (dms) year-on-year revenue growth: 23 percent electronics manufacturing services (ems) year-on-year revenue growth: 11 percent u.s. gaap operating income: $542.2 million u.s. gaap diluted earnings per share: $0.49 core operating income (non-gaap): $768.1 million core diluted earnings per share (non-gaap): $2.62 “as we begin fiscal 2019, we’re steadfast in our commitment to deliver value for shareholders. we’ll continue to pursue strategic capabilities and technologies in select end-markets that should result in even more sustainable earnings and cash flows over the next three to four years.” added mondello. first quarter of fiscal year 2019 guidance: (1) core operating income and core diluted earnings per share exclude anticipated adjustments of $8 million for amortization of intangibles (or $0.05 per diluted share), $24 million for stock-based compensation expense and related charges (or $0.14 per diluted share), $7 million to $2 million for restructuring and related charges (or $0.04 to $0.01 per diluted share) and $18 million to $8 million for acquisition and integration charges (or $0.11 to $0.05 per diluted share). (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 and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges and business interruption and impairment charges, net. 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 and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, 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 reports core operating income, core earnings and core diluted and basic earnings per share to provide investors an additional method for assessing operating income, earnings and diluted earnings per share 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 and additional information in the supplemental information.) forward looking statements: this release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter and full fiscal year 2018 and our guidance for future financial performance in our first quarter of fiscal year 2019 (including, net revenue, total company and segment revenue, u.s. gaap operating income, u.s. gaap diluted earnings per share, core operating income (non-gaap), core diluted earnings per share (non-gaap) results and the components thereof, net interest expense, and core tax rate(non-gaap). the statements in this 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 and full fiscal year 2018 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; reliance on a limited number of suppliers for critical components; 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; our dependence on a limited number of large customers; and adverse changes in political conditions, in the u.s. and internationally, including, among others, adverse changes in tax laws and rates and our ability to estimate and manage their impact. 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, 2017 and our other filings with the securities and exchange commission. we assume no obligation to update these forward-looking statements. supplemental information regarding non-gaap financial measures: jabil provides supplemental, non-gaap financial measures in this release to facilitate evaluation of jabil’s core operating performance. these non-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-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 earnings, core roic and core diluted and basic earnings per share to provide investors an additional method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. among other uses, management uses non-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 existing tax incentives or a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets), a reduced or 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. meeting and replay information: jabil will hold a conference call today at 8:30 a.m. et to discuss its earnings for the fourth quarter and full fiscal year 2018 and to provide an investor briefing. to access the live audio webcast and view the accompanying slide presentations, visit the investor relations section of jabil’s website, located at https://investors.jabil.com. an archived replay of the webcast will also be available after completion of the call. about jabil: jabil (nyse: jbl) is a product solutions company providing comprehensive design, manufacturing, supply chain and product management services. operating from over 100 facilities in 29 countries, jabil delivers innovative, integrated and tailored solutions to customers across a broad range of industries. for more information, visit jabil.com. (2) this amount is calculated by adding the amount of income taxes attributable to its core operating income (non-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, 2018 and 2017, respectively, 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 fiscal years ended august 31, 2018 and 2017, respectively, and dividing by two.
