Jabil : Fourth Quarter 2020 Financial Results and Investor Briefing
09/24/2020 | 09:40am EST
2020 FOURTH QUARTER EARNINGS & INVESTOR BRIEFING
September 24, 2020
FORWARD LOOKING STATEMENT
Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for the fourth quarter and fiscal year 2020; our guidance for future financial performance in our first quarter of fiscal year 2021 (including, net revenue, 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), net interest expense, and core tax rate and the components of each); our guidance for future financial performance in full fiscal year 2021 (including, net revenue, segment revenue, core operating margin, segment core margin, core earnings per share (Non-GAAP), adjusted free cash flow, free cash flow, net capital expenditures, core EBITDA, and the components and drivers of each); and our outlook for end market revenue and core operating margin. The statements in this presentation 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 the fourth quarter and fiscal year 2020 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; the scope and duration of the COVID-19 outbreak and its impact on our operations, sites, customers and supply chain; managing growth effectively; our dependence on a limited number of customers; competitive challenges affecting our customers; managing rapid declines or increases in customer demand and other related customer challenges that may occur; changes in technology; our ability to introduce new business models or programs requiring implementation of new competencies; competition; transportation issues; our ability to maintain our engineering, technological and manufacturing expertise; retaining key personnel; our ability to purchase components efficiently and reliance on a limited number of suppliers for critical components; risks associated with international sales and operations; our ability to achieve expected profitability from acquisitions; risk arising from our restructuring activities; issues involving our information systems, including security issues; regulatory risks; financial and market risks; 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, 2019 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements.
2
2020 FOURTH QUARTER EARNINGS
Mike Dastoor September 24, 2020
Fourth Quarter and Fiscal Year 2020
Income Highlights
THREE MONTHS ENDED
FISCAL YEAR ENDED
AUGUST 31,
AUGUST 31,
(In millions, except for per share data)
2020
2019
2020
2019
Net revenue
$7,300
$6,573
$27,266
$25,282
U.S. GAAP operating income
$197
$190
$500
$701
U.S. GAAP net income
$68
$53
$54
$287
U.S. GAAP diluted earnings per share
$0.44
$0.34
$0.35
$1.81
Core operating income (non-GAAP)1
$255
$246
$864
$877
Core earnings (non-GAAP)1
$151
$138
$450
$473
Core diluted earnings per share (non-GAAP)1
$0.98
$0.88
$2.90
$2.98
1 See U.S. GAAP to non-GAAP reconciliation in appendix.
4
Fourth Quarter
Segment Results
DIVERSIFIED MANUFACTURING SERVICES (DMS)
Net Revenue Increase of 17%
Core margin* (non-GAAP) of 3.5%
ELECTRONICS MANUFACTURING SERVICES (EMS)
Net Revenue Increase of 8%
Core margin* (non-GAAP) of 3.5%
TOTAL COMPANY
Net Revenue Increase of 11%
Core margin* (non-GAAP) of 3.5%
Core margin defined as core operating income divided by net revenue
DMS
$7.3B 39%
EMS REVENUE
61%
5
FY20
Segment Results
DIVERSIFIED MANUFACTURING SERVICES (DMS)
Net Revenue Increase of 8%
Core margin* (non-GAAP) of 3.9%
ELECTRONICS MANUFACTURING SERVICES (EMS)
Net Revenue Increase of 8%
Core margin* (non-GAAP) of 2.7%
TOTAL COMPANY
Net Revenue Increase of 8%
Core margin* (non-GAAP) of 3.2%
Core margin defined as core operating income divided by net revenue
DMS
$27.3B 39%
EMS REVENUE
61%
6
Cash Flow Highlights
FISCAL YEAR ENDED
AUGUST 31,
(In millions)
2020
Cash flow from operations
$1,257
Net capital expenditures1
$796
Adjusted Free cash flow (non-GAAP)1
$461
Core EBITDA (non-GAAP)1
$1,603
1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
7
Business Update
Mark Mondello September 24, 2020
THANK YOU for being your True Self
We all have a voice that is:
Honored
Empowered
Authentic
Respected
Deserving
9
Leadership ATTENTION
Our Approach
Our Portfolio
Our Outlook
10
Our Approach
Creating a more Diverse & Inclusive Jabil
ROOTED in Purpose
INTENTIONAL in Action
ACCOUNTABLE for Progress
• Aligned with our Core Values
• Employing Diverse Talent
• D&I Council
• Critical to Business Performance
• Advocate for Human Rights
• Dashboards & Benchmarking
11
Our Approach
Creating a more Sustainable Jabil
Employee Volunteers, Giving Back and Making a Difference
75,000 hours
Greenhouse gas emission reduction
25% Reduction by 2025
United Nations
Sustainable Development alignment
Additional ESG Focus Areas
Safety
Water Usage
Hazardous Waste
Supply Chain
12
Our Portfolio
End-Markets
DIVERSIFIED MANUFACTURING
$ in billions
FY201
FY21E
Healthcare & Packaging
$4.2
$4.8
Automotive & Transport
$1.7
$1.9
Connected Devices
$4.0
$3.7
Mobility
$3.3
$3.6
Total Revenue
$13.2
$14.0
Core Operating Margin
3.7%
4.5%
ELECTRONICS MANUFACTURING
$ in billions
FY201
FY21E
Digital Print & Retail
$2.3
$2.3
Industrial & Semi-Cap
$3.5
$3.5
5G, Wireless & Cloud
$5.5
$4.5 *
Networking & Storage
$2.8
$2.2
Total Revenue
$14.1
$12.5
Core Operating Margin
2.7%
3.5%
* Cloud transitioning to a consignment model
1 As of September 1, 2020, certain customers have been realigned within our reporting segments. See appendix for additional information.
As of September 1, 2020, certain customers have been realigned within our reporting segments. See appendix for additional information.
See U.S. GAAP to non-GAAP reconciliation on Form-8K filed on September 24, 2020.
Net interest expense = interest expense + loss on sale of AR - interest income
Core tax rate excludes the tax impacts related to amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges and acquisition and integration charges.
OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION
(In thousands, except for per share data)
(Unaudited)
Three months ended
Fiscal year ended
August 31, 2020
August 31, 2019
August 31, 2020
August 31, 2019
Operating income (U.S. GAAP)
$
197,053
$
189,745
$
499,846
$
701,356
Amortization of intangibles
12,649
8,890
55,544
31,923
Stock-based compensation expense and related charges
20,870
13,894
83,084
61,346
Restructuring, severance and related charges
12,581
9,732
156,586
25,914
Distressed customer charge
-
6,235
14,963
6,235
Net periodic benefit cost
8,680
-
16,078
-
Business interruption and impairment charges, net
1,211
-
5,785
(2,860)
Acquisition and integration charges
2,162
17,631
32,167
52,697
Adjustments to operating income
58,153
56,382
364,207
175,255
Core operating income (Non-GAAP)
$
255,206
$
246,127
$
864,053
$
876,611
Core operating income (Non-GAAP)
$
255,206
$
246,127
$
864,053
$
876,611
Depreciation expense
181,240
187,990
739,038
739,910
Core EBITDA (Non-GAAP)
$
436,446
$
434,117
$
1,603,091
$
1,616,521
Net income attributable to the Company (U.S. GAAP)
$
67,731
$
52,675
$
53,912
$
287,111
Adjustments to operating income
58,153
56,382
364,207
175,255
Loss on securities
36,420
29,632
48,625
29,632
Net periodic benefit cost
(8,680)
-
(16,078)
-
Adjustment for taxes
(2,259)
(796)
(1,093)
(18,633)
Core earnings (Non-GAAP)
$
151,365
$
137,893
$
449,573
$
473,365
Diluted earnings per share (U.S. GAAP)
$
0.44
$
0.34
$
0.35
$
1.81
Diluted core earnings per share (Non-GAAP)
$
0.98
$
0.88
$
2.90
$
2.98
Diluted weighted average shares outstanding (U.S. GAAP & Non-GAAP)
154,453
156,981
155,274
158,647
31
(1)
FY20 Revenue as Recast
Diversified Manufacturing
Electronics Manufacturing
Fiscal year
Fiscal year
$ in billions
Three months ended
ended
$ in billions
Three months ended
ended
November
February
May 31,
August 31,
August 31,
November
February
May 31,
August 31,
August 31,
30, 2019
29, 2020
2020
2020
2020
30, 2019
29, 2020
2020
2020
2020
Total Revenue
$3.7
$2.9
$3.0
$3.6
$13.2
Total Revenue
$3.8
$3.2
$3.4
$3.7
$14.1
Core Operatng
Core Operatng
Margin
5.0%
3.0%
2.5%
3.9%
3.7%
Margin
2.4%
2.3%
2.9%
3.1%
2.7%
As of September 1, 2020, certain customers have been realigned within our reporting segments. Beginning in fiscal year 2021, customers within the automotive and transportation and smart home and appliances industries will be presented and moved from the EMS segment to the DMS segment.
Jabil Inc. published this content on 23 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2020 13:39:08 UTC
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