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Jabil Annual Report, Year Ended Aug 31, 2019

Filing Date
Filed October 22, 2019
Period End
August 31, 2019
Security
JBL
One revenue dollarkept$0.01
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 · Sep ’16Sep ’16
  2. Material agreement8-K · Aug ’18Aug ’18
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed October 22, 2019. Cited figures are marked; the original filing is the authoritative source.

Jabil Inc. (NYSE: JBL) reported fiscal 2019 (year ended August 31, 2019) net revenue of $25.28 billiona, up from $22.10 billion in fiscal 2018, with net income attributable to Jabil Inc. of $287.1 million versus $86.3 million a year earlier.

Operating income rose to $701.4 millionb from $542.2 million, and diluted EPS was $1.81 compared with $0.49. The Electronics Manufacturing Services (EMS) segment grew to $15.43 billion in revenue, while Diversified Manufacturing Services (DMS) was $9.85 billion, roughly flat year over year. Apple, Inc. accounted for 22% of net revenue in fiscal 2019, and the five largest customers accounted for approximately 42%.

Backlog was about $6.2 billionc at August 31, 2019, down from $6.8 billion. Cash flow from operations was $1.19 billion in fiscal 2019, compared with negative operating cash flow of $1.11 billion in fiscal 2018, a change the filing attributes in part to the adoption of ASU 2016-15 reclassifications and securitization timing. Cash and cash equivalents were $1.16 billion at year-end, and notes payable and long-term debt totaled $2.50 billion.

The Board authorized a $600.0 milliond share repurchase program in September 2019, of which $30.8 million had been used through October 14, 2019. On September 20, 2019, the Board approved a 2020 Restructuring Plan expected to cost about $85.0 million, primarily in fiscal 2020, with a focus on the mobility footprint in China. The filing also records a net accounting change from adopting ASU 2014-09 (Topic 606) on September 1, 2018, with a cumulative effect adjustment of $42.6 million net of tax.

Management reported that internal controls were effective as of August 31, 2019, excluding the acquired Johnson & Johnson Medical Devices (JJMD) operations, which represented 1.8% of total assets and 1.3% of net revenue. Ernst & Young LLP issued an unqualified opinion on the financial statements and internal control.

02—Key points

Key Highlights

  1. Net revenue rose to $25.28 billion in fiscal 2019 from $22.10 billion in fiscal 2018; EMS revenue was $15.43 billion and DMS revenue was $9.85 billion.
  2. Net income attributable to Jabil Inc. was $287.1 million ($1.81 diluted EPS), compared with $86.3 million ($0.49 diluted EPS) in fiscal 2018.
  3. Operating income was $701.4 million, up from $542.2 million; gross profit was $1.91 billion, or 7.6% of net revenue.
  4. Apple, Inc. represented 22% of fiscal 2019 net revenue; the five largest customers accounted for approximately 42%.
  5. Net cash provided by operating activities was $1.19 billion in fiscal 2019, versus negative $1.11 billion in fiscal 2018.
  6. The Board authorized a $600.0 million share repurchase program in September 2019, with $30.8 million used through October 14, 2019; a 2020 Restructuring Plan of approximately $85.0 million was approved on September 20, 2019.
  7. Acquisition of certain JJMD assets closed in three stages, with cash paid of approximately $153.2 million in fiscal 2019 and $117.1 million on September 30, 2019.

03—One dollar

Follow one dollar

Of each $1.00 of revenue in FY2019, Jabil kept $0.01.

  1. Revenue$25.28B100.0%
  2. Cost of revenue−$23.37B92.4%
  3. Gross profit$1.91B7.6%
  4. Operating costs−$1.21B4.8%
  5. Operating income$701.0M2.8%
  6. Interest, other & tax−$414.0M1.6%
  7. Net income$287.0M1.1%
Computed from 10-KFY2019filed October 22, 2019Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

Where FY2019 revenue went

$25.28B
  • Cost of revenue: $23.37B, 92% of revenue
  • Net income: $287.0M, 1.1% of revenue
  • R&D: $43.0M, 0.2% of revenue
  • SG&A: $1.11B, 4.4% of revenue
  • Interest, other & tax: $414.0M, 1.6% of revenue

Kept 1.1% as net incomeNet income $287.0M · 1.1%R&D $43.0M · 0.2%

Full revenue history →

04—Financials

Financial Highlights

Figures from 10-KFY2019filed October 22, 2019
Revenue$25.28B7.6% Gross MarginNet Income$287.00M1.1% Net MarginEPS (Diluted)$1.81Total Assets$12.97BCash & Equivalents$1.16BFree Cash Flow$188.00M

Financial Statements

FY2019 against FY2018

Line itemFY2019FY2018Change
Revenue$25.28B$22.10B+14.4%
Cost of Revenue$23.37B$20.39B+14.6%
Gross Profit$1.91B$1.71B+12.1%
R&D Expenses$43.00M$38.53M+11.6%
SG&A Expenses$1.11B$1.05B+5.7%
Operating Income$701.00M$542.15M+29.3%
Interest Expense$188.00M$149.00M+26.2%
Net Income$287.00M$86.33M+232.4%
EPS (Basic)$1.85$0.50+270.0%
EPS (Diluted)$1.81$0.49+269.4%
Shares Outstanding (Basic)155.60M172.24M−9.7%
Shares Outstanding (Diluted)158.60M175.04M−9.4%

05—Questions

Frequently Asked Questions

  1. How did Jabil's revenue and profitability change in fiscal 2019?

    Net revenue increased to $25.28 billion from $22.10 billion, and net income attributable to Jabil Inc. rose to $287.1 million from $86.3 million. Operating income increased to $701.4 million from $542.2 million. The filing attributes the revenue increase mainly to EMS segment growth of 26%, partly offset by weakness in computing and storage and capital equipment.

  2. How concentrated is Jabil's customer base?

    Apple, Inc. accounted for 22% of net revenue in fiscal 2019, down from 28% in fiscal 2018. The five largest customers accounted for approximately 42% of fiscal 2019 net revenue, and 85 customers accounted for approximately 90%. The filing states the company expects to continue depending on a relatively small number of customers.

  3. What is Jabil's liquidity and debt position?

    At August 31, 2019, cash and cash equivalents were $1.16 billion and notes payable and long-term debt totaled $2.50 billion, of which $375.2 million was current. The company had $2.6 billion of unused borrowing capacity under its revolving credit facilities and up to $1.5 billion of available liquidity under its trade accounts receivable sale programs. A $1.8 billion commercial paper program was established on August 15, 2019, with no commercial paper issued as of that date.

  4. What capital return and restructuring actions were announced?

    The Board authorized up to $600.0 million of share repurchases in September 2019, with 874,475 shares repurchased for $30.8 million through October 14, 2019. On September 20, 2019, the Board approved a 2020 Restructuring Plan expected to produce about $85.0 million in pre-tax charges, primarily in fiscal 2020, focused on the mobility footprint in China. Quarterly dividends of $0.08 per share were paid throughout fiscal 2019.

06—Continue

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