Jabil Posts Fourth Quarter and Fiscal Year 2024 Results
Company Announces New
“It’s evident that Jabil has undergone a substantial transformation this fiscal year: a year during which we sold our Mobility business, saw growth in the AI datacenter sector, and faced challenges in multiple end-markets,” said CEO
Fourth Quarter of Fiscal Year 2024 Highlights:
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Net revenue:
$7.0 billion -
U.S. GAAP operating income:$318 million -
U.S. GAAP diluted earnings per share:$1.18 -
Core operating income (Non-GAAP):
$401 million -
Core diluted earnings per share (Non-GAAP):
$2.30
Fiscal Year 2024 Highlights:
-
Net revenue:
$28.9 billion -
U.S. GAAP operating income:$2.0 billion -
U.S. GAAP diluted earnings per share:$11.17 -
Core operating income (Non-GAAP):
$1.6 billion -
Core diluted earnings per share (Non-GAAP):
$8.49
First Quarter of Fiscal Year 2025 Outlook: |
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(1) Core operating income and core diluted earnings per share exclude anticipated adjustments of |
Fiscal Year 2025 Outlook: |
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5.4% |
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Capital Return Update:
The Board of Directors has authorized a share repurchase program of up to
(Definitions: “U.S. GAAP” means
Forward Looking Statements: This release contains forward-looking statements, including those regarding our anticipated financial results for our fourth quarter and full fiscal year 2024 and our guidance for future financial performance in our first quarter of fiscal year 2025 (including, net revenue,
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
Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flows to provide investors an additional method for assessing operating income, earnings, earnings per share and free cash flow 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 an annual normalized tax rate (“normalized core tax rate”) for the computation of the non-GAAP (core) income tax provision to provide better consistency across reporting periods. In estimating the normalized core tax rate annually, the Company utilizes a full-year financial projection of core earnings that considers the mix of earnings across tax jurisdictions, existing tax positions, and other significant tax matters. The Company may adjust the normalized core tax rate during the year for material impacts from new tax legislation or material changes to the Company’s operations.
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
Meeting and Replay Information: Jabil will hold a conference call today at
About Jabil: At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world’s top brands, offering comprehensive engineering, manufacturing, and supply chain solutions. With over 50 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver both scalable and customized solutions. Our commitment extends beyond business success as we strive to build sustainable processes that minimize environmental impact and foster vibrant and diverse communities around the globe. Discover more at www.jabil.com.
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) |
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(unaudited) |
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ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,201 |
|
|
$ |
1,804 |
|
Accounts receivable, net |
|
3,533 |
|
|
|
3,647 |
|
Contract assets |
|
1,071 |
|
|
|
1,035 |
|
Inventories, net |
|
4,276 |
|
|
|
5,206 |
|
Prepaid expenses and other current assets |
|
1,710 |
|
|
|
1,109 |
|
Assets held for sale |
|
— |
|
|
|
1,929 |
|
Total current assets |
|
12,791 |
|
|
|
14,730 |
|
Property, plant and equipment, net |
|
3,024 |
|
|
|
3,137 |
|
Operating lease right-of-use assets |
|
360 |
|
|
|
367 |
|
|
|
804 |
|
|
|
763 |
|
Deferred income taxes |
|
96 |
|
|
|
159 |
|
Other assets |
|
276 |
|
|
|
268 |
|
Total assets |
$ |
17,351 |
|
|
$ |
19,424 |
|
LIABILITIES AND EQUITY |
|
|
|
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Current liabilities: |
|
|
|
||||
Current installments of notes payable and long-term debt |
$ |
— |
|
|
$ |
— |
|
Accounts payable |
|
6,190 |
|
|
|
5,679 |
|
Accrued expenses |
|
5,499 |
|
|
|
5,515 |
|
Current operating lease liabilities |
|
93 |
|
|
|
104 |
|
Liabilities held for sale |
|
— |
|
|
|
1,397 |
|
Total current liabilities |
|
11,782 |
|
|
|
12,695 |
|
Notes payable and long-term debt, less current installments |
|
2,880 |
|
|
|
2,875 |
|
Other liabilities |
|
416 |
|
|
|
319 |
|
Non-current operating lease liabilities |
|
284 |
|
|
|
269 |
|
Income tax liabilities |
|
109 |
|
|
|
131 |
|
Deferred income taxes |
|
143 |
|
|
|
268 |
|
Total liabilities |
|
15,614 |
|
|
|
16,557 |
|
Commitments and contingencies |
|
|
|
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Equity: |
|
|
|
||||
|
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
2,841 |
|
|
|
2,795 |
|
Retained earnings |
|
5,760 |
|
|
|
4,412 |
|
Accumulated other comprehensive loss |
|
(46 |
) |
|
|
(17 |
) |
|
|
(6,818 |
) |
|
|
(4,324 |
) |
|
|
1,737 |
|
|
|
2,866 |
|
Noncontrolling interests |
|
— |
|
|
|
1 |
|
Total equity |
|
1,737 |
|
|
|
2,867 |
|
Total liabilities and equity |
$ |
17,351 |
|
|
$ |
19,424 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except for per share data) (Unaudited) |
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Three Months Ended |
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Fiscal Year Ended |
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|
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Net revenue |
|
$ |
6,964 |
|
$ |
8,458 |
|
$ |
28,883 |
|
|
$ |
34,702 |
Cost of revenue |
|
|
6,301 |
|
|
7,692 |
|
|
26,207 |
|
|
|
31,835 |
Gross profit |
|
|
663 |
|
|
766 |
|
|
2,676 |
|
|
|
2,867 |
Operating expenses: |
|
|
|
|
|
|
|
|
|||||
Selling, general and administrative |
|
|
270 |
|
|
295 |
|
|
1,160 |
|
|
|
1,206 |
Research and development |
|
|
10 |
|
|
9 |
|
|
39 |
|
|
|
34 |
Amortization of intangibles |
|
|
13 |
|
|
9 |
|
|
40 |
|
|
|
33 |
Restructuring, severance and related charges |
|
|
44 |
|
|
12 |
|
|
296 |
|
|
|
57 |
Gain from the divestiture of businesses |
|
|
2 |
|
|
— |
|
|
(942 |
) |
|
|
— |
Acquisition and divestiture related charges |
|
|
6 |
|
|
— |
|
|
70 |
|
|
|
— |
Operating income |
|
|
318 |
|
|
441 |
|
|
2,013 |
|
|
|
1,537 |
Interest and other, net |
|
|
65 |
|
|
71 |
|
|
262 |
|
|
|
275 |
Income before income tax |
|
|
253 |
|
|
370 |
|
|
1,751 |
|
|
|
1,262 |
Income tax expense |
|
|
115 |
|
|
215 |
|
|
363 |
|
|
|
444 |
Net income |
|
|
138 |
|
|
155 |
|
|
1,388 |
|
|
|
818 |
Net income attributable to noncontrolling interests, net of tax |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
Net income attributable to |
|
$ |
138 |
|
$ |
155 |
|
$ |
1,388 |
|
|
$ |
818 |
Earnings per share attributable to the stockholders of |
|
|
|
|
|
|
|
|
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Basic |
|
$ |
1.20 |
|
$ |
1.18 |
|
$ |
11.34 |
|
|
$ |
6.15 |
Diluted |
|
$ |
1.18 |
|
$ |
1.15 |
|
$ |
11.17 |
|
|
$ |
6.02 |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
115.1 |
|
|
131.2 |
|
|
122.4 |
|
|
|
133.0 |
Diluted |
|
|
116.7 |
|
|
134.1 |
|
|
124.3 |
|
|
|
135.9 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) |
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Fiscal Year Ended |
||||||
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|
|
|
||||
Cash flows provided by operating activities: |
|
|
|
||||
Net income |
$ |
1,388 |
|
|
$ |
818 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
696 |
|
|
|
924 |
|
Restructuring and related charges |
|
95 |
|
|
|
5 |
|
Recognition of stock-based compensation expense and related charges |
|
89 |
|
|
|
95 |
|
Deferred income taxes |
|
(64 |
) |
|
|
85 |
|
Gain from the divestiture of businesses |
|
(942 |
) |
|
|
— |
|
Other, net |
|
(18 |
) |
|
|
13 |
|
Change in operating assets and liabilities, exclusive of net assets acquired: |
|
|
|
||||
Accounts receivable |
|
(200 |
) |
|
|
267 |
|
Contract assets |
|
(32 |
) |
|
|
171 |
|
Inventories |
|
1,179 |
|
|
|
370 |
|
Prepaid expenses and other current assets |
|
(587 |
) |
|
|
(214 |
) |
Other assets |
|
6 |
|
|
|
53 |
|
Accounts payable, accrued expenses and other liabilities |
|
106 |
|
|
|
(853 |
) |
Net cash provided by operating activities |
|
1,716 |
|
|
|
1,734 |
|
Cash flows provided by (used in) investing activities: |
|
|
|
||||
Acquisition of property, plant and equipment |
|
(784 |
) |
|
|
(1,030 |
) |
Proceeds and advances from sale of property, plant and equipment |
|
123 |
|
|
|
322 |
|
Cash paid for business and intangible asset acquisitions, net of cash |
|
(90 |
) |
|
|
(29 |
) |
Proceeds from the divestiture of businesses |
|
2,108 |
|
|
|
50 |
|
Other, net |
|
(6 |
) |
|
|
(36 |
) |
Net cash provided by (used in) investing activities |
|
1,351 |
|
|
|
(723 |
) |
Cash flows used in financing activities: |
|
|
|
||||
Borrowings under debt agreements |
|
1,992 |
|
|
|
4,047 |
|
Payments toward debt agreements |
|
(2,103 |
) |
|
|
(4,204 |
) |
Payments to acquire treasury stock |
|
(2,500 |
) |
|
|
(487 |
) |
Dividends paid to stockholders |
|
(42 |
) |
|
|
(45 |
) |
Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan |
|
58 |
|
|
|
51 |
|
|
|
(68 |
) |
|
|
(36 |
) |
Other, net |
|
(5 |
) |
|
|
(6 |
) |
Net cash used in financing activities |
|
(2,668 |
) |
|
|
(680 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(2 |
) |
|
|
(5 |
) |
Net increase in cash and cash equivalents |
|
397 |
|
|
|
326 |
|
Cash and cash equivalents at beginning of period |
|
1,804 |
|
|
|
1,478 |
|
Cash and cash equivalents at end of period |
$ |
2,201 |
|
|
$ |
1,804 |
|
SUPPLEMENTAL DATA
RECONCILIATION OF (in millions, except for per share data) (Unaudited) |
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|
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
Operating income ( |
|
$ |
318 |
|
|
$ |
441 |
|
$ |
2,013 |
|
|
$ |
1,537 |
|
Amortization of intangibles |
|
|
13 |
|
|
|
9 |
|
|
40 |
|
|
|
33 |
|
Stock-based compensation expense and related charges |
|
|
17 |
|
|
|
15 |
|
|
89 |
|
|
|
95 |
|
Restructuring, severance and related charges(1) |
|
|
44 |
|
|
|
12 |
|
|
296 |
|
|
|
57 |
|
Net periodic benefit (credit) cost |
|
|
(1 |
) |
|
|
— |
|
|
6 |
|
|
|
11 |
|
Business interruption and impairment charges, net(2) |
|
|
2 |
|
|
|
— |
|
|
16 |
|
|
|
— |
|
Gain from the divestiture of businesses(3) |
|
|
2 |
|
|
|
— |
|
|
(942 |
) |
|
|
— |
|
Acquisition and divestiture related charges(3) |
|
|
6 |
|
|
|
— |
|
|
70 |
|
|
|
— |
|
Adjustments to operating income |
|
|
83 |
|
|
|
36 |
|
|
(425 |
) |
|
|
196 |
|
Core operating income (Non-GAAP) |
|
$ |
401 |
|
|
$ |
477 |
|
$ |
1,588 |
|
|
$ |
1,733 |
|
Net income attributable to |
|
$ |
138 |
|
|
$ |
155 |
|
$ |
1,388 |
|
|
$ |
818 |
|
Adjustments to operating income |
|
|
83 |
|
|
|
36 |
|
|
(425 |
) |
|
|
196 |
|
Net periodic benefit credit (cost) |
|
|
1 |
|
|
|
— |
|
|
(6 |
) |
|
|
(11 |
) |
Adjustments for taxes |
|
|
48 |
|
|
|
137 |
|
|
99 |
|
|
|
169 |
|
Core earnings (Non-GAAP) |
|
$ |
270 |
|
|
$ |
328 |
|
$ |
1,056 |
|
|
$ |
1,172 |
|
Diluted earnings per share ( |
|
$ |
1.18 |
|
|
$ |
1.15 |
|
$ |
11.17 |
|
|
$ |
6.02 |
|
Diluted core earnings per share (Non-GAAP) |
|
$ |
2.30 |
|
|
$ |
2.45 |
|
$ |
8.49 |
|
|
$ |
8.63 |
|
Diluted weighted average shares outstanding ( |
|
|
116.7 |
|
|
|
134.1 |
|
|
124.3 |
|
|
|
135.9 |
|
(1) Charges recorded during the three months and fiscal year ended
(2) Charges recorded during the three months and fiscal year ended
(3) We completed the divestiture of our mobility business and recorded a pre-tax gain of |
SUPPLEMENTAL DATA ADJUSTED FREE CASH FLOW (in millions) (Unaudited) |
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Fiscal Year Ended |
|||||
|
|
|
||||
Net cash provided by operating activities ( |
$ |
1,716 |
|
$ |
1,734 |
|
Acquisition of property, plant and equipment (“PP&E”)(1) |
|
(784 |
) |
|
(1,030 |
) |
Proceeds and advances from sale of PP&E(1) |
|
123 |
|
|
322 |
|
Adjusted free cash flow (Non-GAAP) |
$ |
1,055 |
|
$ |
1,026 |
|
_______________ | ||||||
(1) Certain customers co-invest in PP&E with us. As we acquire PP&E, we recognize the cash payments in acquisition of PP&E. When our customers reimburse us and obtain control, we recognize the cash receipts in proceeds and advances from the sale of PP&E. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926547610/en/
Investor Contact
Senior Vice President, Investor Relations and Communications
Adam_Berry@jabil.com
Media Contact
Senior Director,
Timur_Aydin@jabil.com
Source: