01—Abstract
Summary
Summary of the 10-K filed October 22, 2021. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. (JBL) reported fiscal year 2021 (ended August 31, 2021) net revenue of $29.3 billiona, up from $27.3 billion in fiscal 2020, with gross profit of $2.36 billion (8.1% of net revenue) and operating income of $1.06 billion, compared with $500 million a year earlier.
Net income attributable to Jabil Inc. was $696 millionb, or $4.58 per diluted share, versus $54 million ($0.35 per diluted share) in fiscal 2020. Management's non-GAAP core earnings were $853 million, or $5.61 per diluted share. The company operates two segments, Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS), with DMS representing 53% of net revenue in fiscal 2021.
Apple, Inc. accounted for 22% of net revenue, and the five largest customers accounted for approximately 47%. Cash flow and balance sheet metrics were solid. Net cash provided by operating activities was $1.43 billionc, and adjusted free cash flow was $640 million.
Cash and cash equivalents totaled $1.57 billiond at year end, and total notes payable and long-term debt was $2.88 billion. The company had $3.8 billion of unused revolving credit capacity and repurchased $428 million of stock during the year. A new $1.0 billion share repurchase authorization was approved in July 2021, with $958 million remaining at year end.
Quarterly dividends of $0.08 per share were declared throughout the fiscal year. The filing highlights ongoing COVID-19 effects, including $142 million in direct costs incurred in fiscal 2020 and supply-chain constraints that drove higher inventories, which rose to $4.41 billion from $3.13 billion.
The company also disclosed the termination of its foreign asset-backed securitization program in June 2021 and a 1.7% Senior Notes issuance of $500 million. Its effective income tax rate was 26.0%, down from 78.2% in fiscal 2020.
02—Key points
Key Highlights
- Net revenue of $29.3 billion for fiscal 2021, up from $27.3 billion in fiscal 2020.
- Net income attributable to Jabil Inc. of $696 million, or $4.58 per diluted share, versus $54 million in fiscal 2020.
- Core operating income (non-GAAP) of $1.24 billion and diluted core earnings per share of $5.61, compared with $2.90 in fiscal 2020.
- Gross profit of $2.36 billion, or 8.1% of net revenue, up from 7.1% in fiscal 2020.
- Net cash provided by operating activities of $1.43 billion; adjusted free cash flow of $640 million.
- Apple, Inc. represented 22% of net revenue, and five largest customers accounted for approximately 47%.
- Board approved a new $1.0 billion share repurchase program in July 2021; $958 million remained available at August 31, 2021.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Jabil kept $0.02.
- Revenue$29.29B100.0%
- Cost of revenue−$26.93B91.9%
- Gross profit$2.36B8.1%
- Operating costs−$1.30B4.5%
- Operating income$1.05B3.6%
- Interest, other & tax−$359.0M1.2%
- Net income$696.0M2.4%
Where FY2021 revenue went
$29.29B- Cost of revenue: $26.93B, 92% of revenue
- Net income: $696.0M, 2.4% of revenue
- R&D: $34.0M, 0.1% of revenue
- SG&A: $1.21B, 4.1% of revenue
- Interest, other & tax: $359.0M, 1.2% of revenue
Kept 2.4% as net incomeNet income $696.0M · 2.4%R&D $34.0M · 0.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed October 22, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $29.29B$27.27B | +7.4% |
| Cost of Revenue | $26.93B$25.34B | +6.3% |
| Gross Profit | $2.36B$1.93B | +22.2% |
| R&D Expenses | $34.00M$43.00M | −20.9% |
| SG&A Expenses | $1.21B$1.18B | +3.2% |
| Operating Income | $1.05B$500.00M | +111.0% |
| Interest Expense | $130.00M$174.00M | −25.3% |
| Net Income | $696.00M$54.00M | +1188.9% |
| EPS (Basic) | $4.69$0.36 | +1202.8% |
| EPS (Diluted) | $4.58$0.35 | +1208.6% |
| Shares Outstanding (Basic) | 148.50M151.60M | −2.0% |
| Shares Outstanding (Diluted) | 152.10M155.30M | −2.1% |
05—Questions
Frequently Asked Questions
How did Jabil perform financially in fiscal 2021?
Net revenue rose to $29.29 billion from $27.27 billion, and operating income increased to $1.06 billion from $500 million. Net income attributable to Jabil Inc. was $696 million, compared with $54 million in fiscal 2020, reflecting a lower restructuring charge and a decline in the effective tax rate to 26.0% from 78.2%.
How concentrated is Jabil's customer base?
The filing states that the five largest customers accounted for approximately 47% of fiscal 2021 net revenue, and 82 customers accounted for approximately 90%. Apple, Inc. alone represented 22% of net revenue, reported primarily in the DMS segment.
What is the company's liquidity and capital return position?
Jabil had about $1.57 billion in cash and cash equivalents and $3.8 billion of unused borrowing capacity under its revolving credit facilities at August 31, 2021. During fiscal 2021 it repurchased $428 million of common stock and paid $50 million in dividends, and it expects to continue quarterly dividends similar to past declarations.
What risks does the filing highlight?
The filing cites COVID-19 disruptions to operations, suppliers and customers; reliance on a small number of customers; component shortages and price increases; international and China-related operating risks; and tariffs and trade disputes. It also notes risks from acquisitions, restructurings, currency fluctuations, and the transition away from LIBOR.
What were the key changes in the company's receivables financing programs?
Jabil terminated its foreign asset-backed securitization program on June 28, 2021, paying approximately $167 million, including a $99 million repurchase of previously sold receivables. The global asset-backed securitization program's maximum net cash proceeds were increased from $390 million to $600 million, and its expiration was extended to November 25, 2024.
06—Continue