ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its first quarter of fiscal year 2021.

“I’m thrilled with the strong start to the fiscal year,” said CEO Mark Mondello. “Our unique positioning as a critical and trusted supplier for so many of the world’s leading brands is allowing us to benefit from powerful end-market trends. As a result, our team delivered record quarterly results for revenue, core operating income and core EPS. Importantly, these impressive results show that our multi-year strategy to create a more optimized commercial portfolio is working,” he added.

First Quarter of Fiscal Year 2021 Highlights:

Net revenue: $7.8 billion
Diversified Manufacturing Services (DMS) year-on-year revenue growth: 13 percent
Electronics Manufacturing Services (EMS) year-on-year revenue decrease: 4 percent
U.S. GAAP operating income: $314.0 million
U.S. GAAP diluted earnings per share: $1.31
Core operating income (Non-GAAP): $364.9 million
Core diluted earnings per share (Non-GAAP): $1.60

Second Quarter of Fiscal Year 2021 Outlook:

Net revenue
U.S. GAAP operating income
U.S. GAAP diluted earnings per share
Core operating income (Non-GAAP) ⁽¹⁾
Core diluted earnings per share (Non-GAAP) ⁽¹⁾
Total company revenue

$6.2 billion to $6.8 billion

$173 million to $226 million

$0.60 to $0.82 per diluted share

$210 million to $260 million

$0.83 to $1.03 per diluted share

Increase 6 percent year-on-year

Fiscal Year 2021 Updated Outlook:

“Given our strong start to the year, combined with our improved forecast, we now expect FY21 revenue will be in the neighborhood of $27.5 billion, while core margin and core EPS will increase to 4.1% and $4.60, respectively,” added Mondello.

____________________
(1)	Core operating income and core diluted earnings per share exclude anticipated adjustments of $11.0 million for amortization of intangibles (or $0.07 per diluted share), $18.0 million for stock-based compensation expense and related charges (or $0.11 per diluted share), $6.0 million to $3.0 million for restructuring, severance and related charges (or $0.04 to $0.02 per diluted share) and $2.0 million for acquisition and integration charges (or $0.01 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 less amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance 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 plus other components of net periodic benefit cost. Jabil defines core earnings as U.S. GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance 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, loss 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 defines adjusted free cash flow as net cash provided by (used in) operating activities plus cash receipts on sold receivables less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from sale of property, plant and equipment). Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flow to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and free cash flow 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 the first quarter of fiscal year 2021 and our guidance for future financial performance in our second quarter of fiscal year 2021 (including, net revenue, total company 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, including but not limited to amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges and acquisition and integration charges) and in fiscal year 2021 (including revenue, core margin and core diluted earnings per share. 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 the first quarter of fiscal year 2021 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; risks arising from relationships with emerging companies; 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 (including the expense of complying, or failing to comply, with applicable regulations; risk arising from design or manufacturing defects; and intellectual property risk); financial risks (including customers or suppliers who become financially troubled; turmoil in financial markets; tax risks; credit rating risks; risks of exposure to debt; currency fluctuations; energy prices; and asset impairment); changes in financial accounting standards or policies; and risk of natural disaster, climate change or other global events. 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, 2020 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 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 the tax effect of the items excluded from core earnings and core 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 first quarter of fiscal year 2021. To access the live audio webcast and view the accompanying slide presentation, 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 manufacturing solutions provider with over 260,000 employees across 100 locations in 30 countries. The world’s leading brands rely on Jabil’s unmatched breadth and depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise. Driven by a common purpose, Jabil and its people are committed to making a positive impact on their local community and the environment. Visit www.jabil.com to learn more.


JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	November 30, 2020
	(unaudited)			August 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	1,107,573		$	1,393,557
Accounts receivable, net	3,651,869			2,847,743
Contract assets	1,088,059			1,104,700
Inventories, net	3,271,842			3,131,783
Prepaid expenses and other current assets	727,849			657,102
Total current assets	9,847,192			9,134,885
Property, plant and equipment, net	3,792,091			3,665,312
Operating lease right-of-use asset	391,004			362,847
Goodwill and intangible assets, net	905,426			906,723
Deferred income taxes	165,264			165,407
Other assets	168,501			162,242
Total assets	$	15,269,478		$	14,397,416
LIABILITIES AND EQUITY
Current liabilities:
Current installments of notes payable and long-term debt	$	50,195		$	50,194
Accounts payable	6,431,567			5,687,038
Accrued expenses	3,061,092			3,211,528
Current operating lease liabilities	119,150			110,723
Total current liabilities	9,662,004			9,059,483
Notes payable and long-term debt, less current installments	2,679,005			2,678,288
Other liabilities	331,093			268,925
Non-current operating lease liabilities	324,379			302,035
Income tax liabilities	163,459			148,629
Deferred income taxes	115,587			114,657
Total liabilities	13,275,527			12,572,017
Commitments and contingencies
Equity:
Jabil Inc. stockholders’ equity:
Preferred stock	—			—
Common stock	266			264
Additional paid-in capital	2,445,582			2,413,616
Retained earnings	2,228,729			2,040,922
Accumulated other comprehensive loss	(14,346		)	(34,168		)
Treasury stock, at cost	(2,680,860		)	(2,609,250		)
Total Jabil Inc. stockholders’ equity	1,979,371			1,811,384
Noncontrolling interests	14,580			14,015
Total equity	1,993,951			1,825,399
Total liabilities and equity	$	15,269,478		$	14,397,416


JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
(Unaudited)
	Three months ended
	November 30, 2020			November 30, 2019
Net revenue	$	7,832,529		$	7,505,698
Cost of revenue	7,197,969			6,951,859
Gross profit	634,560			553,839
Operating expenses:
Selling, general and administrative	302,752			328,899
Research and development	8,118			10,770
Amortization of intangibles	11,455			16,140
Restructuring, severance and related charges	(1,715		)	45,251
Operating income	313,950			152,779
Interest and other, net	28,543			50,139
Income before income tax	285,407			102,640
Income tax expense	84,400			61,926
Net income	201,007			40,714
Net income attributable to noncontrolling interests, net of tax	565			292
Net income attributable to Jabil Inc.	$	200,442		$	40,422
Earnings per share attributable to the stockholders of Jabil Inc.:
Basic	$	1.33		$	0.26
Diluted	$	1.31		$	0.26
Weighted average shares outstanding:
Basic	150,157			153,100
Diluted	152,918			156,462


JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)

	Three months ended
	November 30, 2020		November 30, 2019
Cash flows provided by operating activities:
Net income	$	201,007	$	40,714
Adjustments to reconcile net income to net cash provided by operating activities:

Jabil Posts Record First Quarter Results