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Jabil Annual Report, Year Ended Aug 31, 2002

Filing Date
Filed November 25, 2002
Period End
August 31, 2002
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 25, 2002. Cited figures are marked; the original filing is the authoritative source.

Jabil Circuit, Inc. (now Jabil Inc.) reported fiscal 2002 (year ended August 31, 2002) results as a leading worldwide independent provider of electronic manufacturing services (EMS) to OEMs.

Net revenue was $3.55 billiona, down from $4.33 billion in fiscal 2001, and net income fell to $34.7 million from $118.5 million. Diluted earnings per share were $0.17, versus $0.59 a year earlier. The decline reflected softer demand in computing and storage, peripherals and networking, and the filing cites restructuring charges of $52.1 million, acquisition-related charges of $7.6 million, and amortization of intangibles of $15.1 million.

Operating income was $48.1 millionb, compared with $163.8 million in fiscal 2001. The balance sheet remained solid. Cash and cash equivalents were $640.7 million at August 31, 2002, against $363.4 million of notes payable, long-term debt and capital lease obligations, which include $345.0 million of 1.75% convertible subordinated notes due 2021.

The company had $600.0 millionc available under its credit facility and receivables securitization program. Net cash provided by operating activities was $554.1 million, largely from reduced receivables and inventory, while capital expenditures fell to $85.5 million. Stockholders' equity was $1.51 billion.

Management highlighted a customer base concentrated in a few large OEMs, with Cisco Systems at 24% and Marconi Communications at 13% of fiscal 2002 net revenue, and four largest customers at about 50%. The company announced several first-quarter fiscal 2003 acquisitions, including operations from Lucent in Shanghai, Seagate in Reynosa, and Philips sites, with total stated consideration of roughly $75.0 milliond, $26.0 million and $210.0 million, respectively. It also expected $60 million to $80 million in additional restructuring charges in fiscal 2003, tied to closing its Boise, Idaho plant.

02—Key points

Key Highlights

  1. Net revenue declined 18.1% to $3.5 billion (from $4.3 billion), driven by lower production in computing and storage, peripherals and networking.
  2. Net income fell to $34.7 million, or $0.17 diluted EPS, from $118.5 million, or $0.59 diluted EPS, in fiscal 2001.
  3. Restructuring and other charges of $52.1 million were recorded, covering roughly 2,800 employee eliminations and facility consolidations.
  4. Cash and cash equivalents of $640.7 million compared with $363.4 million of debt and capital lease obligations at August 31, 2002.
  5. Operating cash flow was $554.1 million, supported by lower accounts receivable and inventory levels.
  6. Customer concentration remains high: Cisco Systems accounted for 24% and Marconi Communications for 13% of fiscal 2002 net revenue.
  7. Acquisitions in early fiscal 2003 included Lucent's Shanghai operations (about $75.0 million), Seagate's Reynosa operations (about $26.0 million) and Philips sites (about $210.0 million).

03—Questions

Frequently Asked Questions

  1. How did Jabil's revenue and profitability change in fiscal 2002?

    Net revenue fell to $3,545.5 million from $4,330.7 million, and net income declined to $34.7 million from $118.5 million. Operating income dropped to $48.1 million from $163.8 million, reflecting lower volumes, $52.1 million of restructuring charges and higher selling, general and administrative expense.

  2. How strong is Jabil's balance sheet and liquidity?

    At August 31, 2002, the company had $640.7 million of cash and cash equivalents and $363.4 million of notes payable, long-term debt and capital lease obligations. It also had $600.0 million available under its credit facility and receivables securitization program, and it reported stockholders' equity of $1,507.0 million.

  3. How concentrated is Jabil's customer base?

    The filing states that 27 customers accounted for more than 95% of fiscal 2002 net revenue, and the four largest customers accounted for approximately 50%. Cisco Systems (24%) and Marconi Communications (13%) were the largest individually. The company says it expects to continue depending on a relatively small number of customers.

  4. What restructuring and cost actions did Jabil take, and what is expected next?

    In fiscal 2002, Jabil recorded $52.1 million of restructuring charges and eliminated about 2,800 employees. The company expects approximately $60 million to $80 million of additional restructuring charges in fiscal 2003, mainly related to closing its Boise, Idaho plant and other restructuring activities.

  5. What acquisitions did Jabil announce for early fiscal 2003?

    The company purchased Lucent's Shanghai operations for about $75.0 million in cash, Seagate's Reynosa, Mexico operations for about $26.0 million, and certain Philips Electronics operations in several countries for about $210.0 million. It also agreed to buy certain Quantum operations in Penang, Malaysia, with closing expected in the first half of fiscal 2003.

04—Continue

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