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Jabil Annual Report, Year Ended Aug 31, 2001

Filing Date
Filed November 28, 2001
Period End
August 31, 2001
Security
JBL
In the record · 2016–202610-K1110-Q338-K104

JBL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 104 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Mar ’17Mar ’17
  2. FY2018 annual report10-K · Oct ’18Oct ’18
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed November 28, 2001. Cited figures are marked; the original filing is the authoritative source.

Jabil Circuit, Inc. reported net revenue of $4.33 billiona for the fiscal year ended August 31, 2001, up from $3.56 billion in fiscal 2000, with net income of $118.5 million versus $145.6 million a year earlier.

Diluted EPS was $0.59b compared with $0.78. Management attributed the revenue increase mainly to higher production of communications products, consumer products and peripherals, partly offset by a decrease in computer products production due to softening demand. Operating income fell to $163.8 million, which includes $27.4 million of restructuring and other charges and $6.6 million of acquisition-related charges tied to the Marconi acquisition.

The company states that excluding these charges operating income was $197.7 millionc and net income was $144.3 million. Gross margin declined to 9.1% from 10.1%, reflecting a higher mix of material-based revenue and lower capacity utilization. Customer concentration remains significant: Cisco Systems accounted for 23% and Dell Computer for 14% of net revenue, and four largest customers represented approximately 53%.

Balance sheet changes include total assets of $2.36 billiond and stockholders' equity of $1.41 billion at August 31, 2001, along with $345 million of 1.75% convertible subordinated notes issued in May 2001 and no borrowings outstanding under the company's revolving credit facilities. Operating cash flow was $182.8 million, and capital expenditures were $309.2 million. Looking ahead, the company expects fiscal 2002 capital expenditures to exceed $100 million and anticipates completing the German portion of the Marconi acquisition during fiscal 2002.

It also plans to early adopt FASB Statements 141 and 142 in the first quarter of fiscal 2002, and it has not finished assessing the impact on its financial statements. Subsequent events include an October 2001 purchase of Intel assets in Penang, Malaysia for approximately $37 million and the adoption of a stockholder rights plan.

02—Key points

Key Highlights

  1. Net revenue rose to $4.33 billion in fiscal 2001 from $3.56 billion in fiscal 2000.
  2. Net income fell to $118.5 million from $145.6 million; diluted EPS was $0.59 versus $0.78.
  3. Operating income was $163.8 million, including $27.4 million of restructuring and other charges; excluding these charges, operating income was $197.7 million per the filing.
  4. Gross margin declined to 9.1% from 10.1%, citing a higher share of material-based revenue and lower capacity utilization.
  5. Cisco Systems (23%) and Dell Computer (14%) were the largest customers, with four customers representing about 53% of net revenue.
  6. Issued $345 million of 1.75% convertible subordinated notes in May 2001; no borrowings were outstanding under revolving credit facilities at year-end.
  7. Operating cash flow was $182.8 million against capital expenditures of $309.2 million, with fiscal 2002 capex expected to exceed $100 million.

03—Questions

Frequently Asked Questions

  1. Why did net income decline despite higher revenue?

    Gross margin fell to 9.1% from 10.1% because of a higher share of material-based revenue and lower capacity utilization in the second half of the year. Operating income also absorbed $27.4 million of restructuring and other charges and $6.6 million of Marconi acquisition-related charges.

  2. How concentrated is Jabil's customer base?

    Highly concentrated. Cisco Systems and Dell Computer accounted for approximately 23% and 14% of fiscal 2001 net revenue, and 30 customers accounted for over 95%. The filing notes that customers have in the past terminated or reduced orders, which could materially affect results.

  3. What is the company's liquidity position?

    At August 31, 2001 the company had cash and cash equivalents of $430.7 million and total current assets of $1.45 billion. It had $750 million of committed credit facilities with no borrowings outstanding, and it issued $345 million of convertible notes in May 2001 with net proceeds of about $338 million.

  4. What acquisitions and events came after the fiscal year end?

    The company completed the U.S. portion of the Marconi acquisition on September 4, 2001, for total consideration of approximately $34 million, and expects to complete the German portion during fiscal 2002. On October 25, 2001 it closed an asset purchase from Intel for about $37 million of assets in Penang, Malaysia, and it adopted a stockholder rights plan in October 2001.

04—Continue

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