Jabil posts fourth quarter & fiscal year 2017 results
St. petersburg, fla.--(business wire)--today jabil inc. (nyse: 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: (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 (nyse: 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. (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.
