Jabil Circuit, Inc.
Jun 21, 2011
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Jabil Posts Solid Third Quarter Results

Performance Ahead of Long-Term Growth Goals

Slide Presentation

Statement of Income and Balance Sheet Data for Third Quarter 2011

Forward - Looking Statement

St. Petersburg, FL - June 21, 2011...Jabil Circuit, Inc. (NYSE: JBL), reported its preliminary, unaudited financial results for the third quarter of fiscal 2011, ended May 31, 2011. "Revenue growth was stronger than expected for our third quarter," said Timothy L. Main, President and CEO of Jabil. "We are pleased to demonstrate continued growth above our long-term targets. As a result, Jabil is poised to deliver record revenue and earnings in fiscal 2011."

(Definitions used: "GAAP" means U.S. generally accepted accounting principles. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges and loss on disposal of subsidiaries. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core earnings per share as core earnings divided by the weighted average number of outstanding shares determined under GAAP. Jabil calculates core return on invested capital by annualizing its after-tax core operating income for its most recently-ended quarter and dividing that by a two quarter average net invested capital base. Jabil reports core operating income, core earnings, core earnings per share and core return on invested capital to provide investors an additional method for assessing operating income, earnings, earnings per share and return on invested capital from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil's core operating income to its GAAP operating income, Jabil's core earnings and core earnings per share to its GAAP net income and GAAP earnings per share, its calculation of core return on invested capital and additional information in the supplemental information.)

Third Quarter 2011
Net revenue for the third quarter of fiscal 2011 was $4.2 billion compared to $3.5 billion for the same period of fiscal 2010.

GAAP results:
GAAP operating income for the third quarter of fiscal 2011 was $152.5 million compared to $96.5 million for the same period of fiscal 2010.

GAAP net income for the third quarter of fiscal 2011 was $104.7 million compared to $52.0 million for the same period of fiscal 2010.

GAAP diluted earnings per share for the third quarter of fiscal 2011 was $0.47 compared to $0.24 for the same period of fiscal 2010.

Core results:
Core operating income for the third quarter of fiscal 2011 was $177.8 million or 4.2 percent of net revenue compared to $131.9 million or 3.8 percent of net revenue for the same period of fiscal 2010.

Core earnings for the third quarter of fiscal 2011 were $129.1 million compared to $86.7 million for the same period of fiscal 2010.

Core diluted earnings per share for the third quarter of fiscal 2011 was $0.58 compared to $0.40 for the same period of fiscal 2010.

Third Quarter Fiscal 2011 - Balance Sheet and Cash Flow Highlights

Business Update
Jabil management indicated that it expects net revenue for its fourth quarter of fiscal 2011 to range from $4.1 billion to $4.3 billion.

Jabil estimated that its core operating income for its fourth quarter of fiscal 2011 will range from $165 million to $185 million or 4.0 to 4.3 percent of net revenue.

Jabil indicated that it expects its core earnings per share for its fourth quarter of fiscal 2011 to range from $0.52 to $0.60 per diluted share.

GAAP earnings per share are expected to be in a range from $0.41 to $0.49 per diluted share for its fourth quarter of fiscal 2011. (GAAP earnings per share for the fourth quarter of fiscal 2011 is currently estimated to include $0.02 per share for amortization of intangibles and $0.09 per share for stock-based compensation).

"We are gratified to see the new business opportunities in targeted segments continuing and are pleased with our operating performance, which remains ahead of our long-term goals for the company" said Main.

Supplemental Information
The financial results disclosed in this release include certain measures calculated and presented in accordance with GAAP. In addition to the GAAP financial measures, Jabil provides supplemental, non-GAAP financial measures to facilitate evaluation of Jabil's core operating performance. The non-GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable GAAP measures. The non-GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. Management believes core financial measures (which exclude the effects of the amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, settlement of receivables and related charges, loss on disposal of subsidiaries, certain other expenses, net of tax and certain deferred tax valuation allowance charges) are a useful measure that facilitates evaluating the past and future performance of Jabil's ongoing operations on a comparable basis. Jabil reports core operating income, core return on invested capital, core earnings and core earnings per share to provide investors an additional method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. Included in this release are Condensed Consolidated Statements of Operations as well as a reconciliation of the disclosed core financial measures to the most directly comparable GAAP financial measures.

Company Conference Call Information
Jabil will hold a conference call to discuss the third fiscal quarter 2011 earnings today at 4:30 p.m. ET live on the Internet at http://www.jabil.com. The earnings conference call will be recorded and archived for playback on the web at http://www.jabil.com. A taped replay of the conference call will also be available June 21, 2011 at approximately 7:30 p.m. ET through midnight on June 28, 2011. To access the replay, call (800) 642-1687 from within the United States, or (706) 645-9291 outside the United States. The pass code is: 74556689. An archived webcast of the conference call will be available at http://www.jabil.com/investors/.

About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 24 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL". Further information is available on Jabil's website: jabil.com.

Investor & Media Contact:
Beth Walters
Senior Vice President, Investor Relations & Communications
Jabil Circuit, Inc.
(727) 803-3511
beth_walters@jabil.com