Jabil Posts Third Quarter Results

Operational Excellence Drives Strong Results

ST. PETERSBURG, Fla. – June 18, 2019 – Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its third quarter of fiscal year 2019.

Third Quarter of Fiscal Year 2019 Highlights:

  • Net revenue: $6.1 billion
  • Diversified Manufacturing Services (DMS) year-on-year revenue decrease: 6 percent
  • Electronics Manufacturing Services (EMS) year-on-year revenue growth: 26 percent
  • U.S. GAAP operating income: $140.9 million
  • U.S. GAAP diluted earnings per share: $0.28
  • Core operating income (Non-GAAP): $185.8 million
  • Core diluted earnings per share (Non-GAAP): $0.57

“I’m extremely pleased with our third quarter performance, highlighted by solid operational excellence and strong financial results. The team delivered 20 basis points of core margin expansion on double-digit revenue growth, culminating in an impressive 24 percent core EPS growth, year-over-year,” said CEO Mark Mondello. “Our strong year-to-date results validate that our diversification strategy has firmly taken hold,” he added.

Healthcare Business Update:

During the third fiscal quarter, Jabil successfully transitioned additional sites from Johnson & Johnson Medical Devices Companies (JJMDC) as part of the previously announced strategic collaboration between the companies.

“Our overall healthcare business achieved another important step during the third quarter with the acquisition of three new sites, located in Brandywine, Elmira and Monument,” said Mondello. “I’d like to welcome our new employees at these outstanding healthcare facilities, which further expand our talent and capabilities in this area of our business,” he added.

General Business Update:

“In the fourth quarter, our outlook for revenue, core EPS and cash flow is solid as we see robust demand in 5G / wireless, cloud, industrial, healthcare and packaging,” said Mondello. “Over the longer-term, we remain relentless in our commitment to drive margin expansion and strong cash flows through a well-balanced, diverse stream of income,” he added.

 

Fourth Quarter of Fiscal Year 2019 Outlook:

 

Net revenue

$6.3 billion to $6.9 billion

U.S. GAAP operating income

$169 million to $235 million

•  U.S. GAAP diluted earnings per share

$0.47 to $0.71 per diluted share

•  Core operating income (Non-GAAP) (1)

$215 million to $275 million

•  Core diluted earnings per share (Non-GAAP) (1)

$0.76 to $0.96 per diluted share

•  Diversified Manufacturing Services revenue

Increase 4 percent year-on-year

•  Electronics Manufacturing Services revenue

Increase 22 percent year-on-year

Total company revenue

Increase 14 percent year-on-year

(1) Core operating income and core diluted earnings per share exclude anticipated adjustments of $8.0 million for amortization of intangibles (or $0.05 per diluted share), $16.0 million for stock-based compensation expense and related charges (or $0.10 per diluted share), $2.0 million for restructuring and related charges (or $0.01 per diluted share) and $20.0 million to $14.0 million for acquisition and integration charges (or $0.13 to $0.09 per diluted share).

(Definitions: “U.S. GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges and business interruption and impairment charges, net. Jabil defines core earnings as U.S. GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, impairment on securities, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP. Jabil calculates its core return on invested capital ("ROIC") 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. The Company calculates its after-tax core operating income as its core operating income less a certain tax effect (the amount is determined by applying the core effective tax rate to core operating income less interest expense). The Company calculates its average net invested capital base as the sum of the averages of its stockholders’ equity, current and non-current portions of its notes payable and long-term debt less the average of its cash and cash equivalents. The calculation of the averages discussed in the previous sentence is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter and dividing by two. Jabil defines adjusted free cash flow as net cash provided by (used in) operating activities plus cash receipts on sold receivables less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from sale of property, plant and equipment). Jabil reports core operating income, core earnings, core diluted earnings per share, core ROIC and adjusted free cash flow to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and free cash flow from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil’s core operating income to its U.S. GAAP operating income, its calculation of core earnings and core diluted earnings per share to its U.S. GAAP net income and U.S. GAAP earnings per share and additional information in the supplemental information.)

Forward Looking Statements: This release contains forward-looking statements, including those regarding our anticipated financial results for our third quarter of fiscal year 2019 and our guidance for future financial performance in our fourth quarter of fiscal year 2019 (including, net revenue, total company and segment revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core operating income (Non-GAAP), cash flow, core diluted earnings per share (Non-GAAP) results and the components thereof, including but not limited to amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges and acquisition and integration charges). The statements in this release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and

 

results to differ materially from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our third quarter of fiscal year 2019 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; unexpected, adverse seasonal impacts on demand; performance in the markets in which we operate; changes in macroeconomic conditions; the occurrence of, success and expected financial results from, product ramps; our ability to maintain and improve costs, quality and delivery for our customers; whether our restructuring activities and the realignment of our capacity will adversely affect our cost structure, ability to service customers and labor relations; reliance on a limited number of suppliers for critical components; changes in technology; competition; anticipated growth for us and our industry that may not occur; managing rapid growth; managing rapid declines in customer demand and other related customer challenges that may occur; our ability to successfully consummate acquisitions and divestitures; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of large customers; and adverse changes in political conditions, in the U.S. and internationally, including, among others, adverse changes in tax laws and rates and our ability to estimate and manage their impact. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2018 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements.

Supplemental Information Regarding Non-GAAP Financial Measures: Jabil provides supplemental, non-GAAP financial measures in this release to facilitate evaluation of Jabil’s core operating performance. These non-GAAP measures exclude certain amounts that are included in the most directly comparable U.S. GAAP measures, do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. Management believes these “core” financial measures are useful measures that facilitate evaluation of the past and future performance of Jabil’s ongoing operations on a comparable basis.

Jabil reports core operating income, core earnings, core diluted earnings per share, core ROIC and adjusted free cash flows to provide investors an additional method for assessing operating income, earnings, earnings per share and free cash flow from what it believes are its core manufacturing operations. Among other uses, management uses non-GAAP financial measures to make operating decisions, assess business performance and as a factor in determining certain employee performance when determining incentive compensation. The Company determines the tax effect of the items excluded from core earnings and core diluted earnings per share based upon evaluation of the statutory tax treatment and the applicable tax rate of the jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain jurisdictions where the Company does not expect to realize a tax benefit (due to existing tax incentives or a history of operating losses or other factors resulting in a valuation allowance related to deferred tax assets), a reduced or 0% tax rate is applied. Detailed definitions of certain of the core financial measures are included above under “Definitions” and a reconciliation of the disclosed core financial measures to the most directly comparable U.S. GAAP financial measures is included under the heading “Supplemental Data” at the end of this release.

Meeting and Replay Information: Jabil will hold a conference call to discuss its third quarter results today at 4:30 p.m. ET. To access the live audio webcast and view the accompanying slide presentation, visit the Investor Relations section of Jabil's website, located at https://investors.jabil.com. An archived replay of the webcast will also be available after completion of the call.

About Jabil: Jabil (NYSE: JBL) is a product solutions company providing comprehensive design, manufacturing, supply chain and product management services. Operating from over 100 facilities in 29 countries, Jabil delivers innovative, integrated and tailored solutions to customers across a broad range of industries. For more information, visit jabil.com.

Investor Contact

Media Contact

Adam Berry

Michelle Smith

Vice President, Investor Relations

Vice President, Corporate Communications

(727) 803-5772

 

(727) 803-3534

 

Adam_Berry@jabil.com

 

Michelle_Smith@jabil.com

 

 

 

 

 

         

 

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

 

 

May 31, 2019

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

August 31, 2018

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

694,086

$

1,257,949

 

Accounts receivable, net

 

 

 

2,696,599

 

 

 

1,693,268

 

Contract assets

 

899,482

 

 

 

 

Inventories, net

 

 

 

3,159,369

 

 

 

3,457,706

 

Prepaid expenses and other current assets

 

524,833

 

 

 

1,141,000

 

 

Total current assets

 

 

 

7,974,369

 

 

 

7,549,923

 

Property, plant and equipment, net

 

3,335,837

 

 

 

3,198,016

 

Goodwill and intangible assets, net

 

 

 

890,679

 

 

 

906,876

 

Deferred income taxes

 

202,556

 

 

 

218,252

 

Other assets

 

 

 

205,336

 

 

 

172,574

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

12,608,777

$

12,045,641

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current installments of notes payable and long-term debt

$

454,830

$

25,197

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

4,826,333

 

 

 

4,942,932

 

Accrued expenses

 

 

 

2,586,052

 

 

 

2,262,744

 

 

Total current liabilities

 

7,867,215

 

 

 

7,230,873

 

Notes payable and long-term debt, less current installments

 

2,476,842

 

 

 

2,493,502

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

145,750

 

 

 

94,617

 

Income tax liabilities

 

 

 

136,400

 

 

 

148,884

 

Deferred income taxes

 

115,370

 

 

 

114,385

 

 

Total liabilities

 

 

 

10,741,577

 

 

 

10,082,261

 

Commitments and contingencies

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

Jabil Inc. stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

Common stock

 

260

 

 

 

257

 

Additional paid-in capital

 

 

 

2,279,409

 

 

 

2,218,673

 

Retained earnings

 

1,996,901

 

 

 

1,760,097

 

Accumulated other comprehensive loss

 

 

 

(50,005)

 

 

 

(19,399)

 

Treasury stock, at cost

 

(2,371,592)

 

 

 

(2,009,371)

 

 

Total Jabil Inc. stockholders’ equity

 

 

 

1,854,973

 

 

 

1,950,257

 

Noncontrolling interests

 

12,227

 

 

 

13,123

 

 

Total equity

 

 

 

1,867,200

 

 

 

1,963,380

 

 

Total liabilities and equity

 

$

12,608,777

 

$

12,045,641

 

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share data)

(Unaudited)

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

 

 

May 31, 2019

 

 

May 31, 2018

 

 

May 31, 2019

 

 

 

May 31, 2018

 

 

Net revenue

$

6,135,602

$

5,436,952

$

18,708,867

 

$

16,323,585

 

 

Cost of revenue

 

5,691,803

 

 

5,038,725

 

 

17,290,544

 

 

 

15,058,940

 

 

Gross profit

 

443,799

 

 

398,227

 

 

1,418,323

 

 

 

1,264,645

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

274,482

 

 

252,487

 

 

834,750

 

 

 

789,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

11,449

 

 

10,082

 

 

32,747

 

 

 

27,535

 

 

 

Amortization of intangibles

 

7,610

 

 

10,040

 

 

23,033

 

 

 

29,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related charges

 

9,340

 

 

12,647

 

 

16,182

 

 

 

29,462

 

 

Operating income

 

140,918

 

 

112,971

 

 

511,611

 

 

 

388,257

 

 

Interest and other, net

 

57,840

 

 

41,818

 

 

162,820

 

 

 

123,403

 

 

Income before income tax

 

83,078

 

 

71,153

 

 

348,791

 

 

 

264,854

 

 

Income tax expense

 

39,046

 

 

28,451

 

 

113,078

 

 

 

120,705

 

 

Net income

 

44,032

 

 

42,702

 

 

235,713

 

 

 

144,149

 

 

Net income attributable to noncontrolling interests,

 

550

 

 

161

 

 

1,277

 

 

 

505

 

 

net of tax

 

 

 

 

 

 

 

 

 

 

Net income attributable to Jabil Inc.

$

43,482

$

42,541

$

234,436

 

$

143,644

 

 

Earnings per share attributable to the stockholders of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jabil Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.28

$

0.25

$

1.50

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

$

0.28

$

0.25

$

1.47

$

0.81

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

152,889

 

 

170,514

 

 

156,384

 

 

 

174,013

 

 

 

Diluted

 

155,678

 

 

173,279

 

 

159,036

 

 

 

176,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

 

Nine months ended

 

 

 

 

 

May 31, 2019

 

May 31, 2018

 

 

Cash flows provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

Net income

$

235,713

 

$

144,149

 

 

 

 

Adjustments to reconcile net income to net cash provided by (used in) operating

 

 

 

 

 

 

 

 

 

activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

574,922

 

 

583,646

 

 

 

 

Restructuring and related charges

 

(3,555)

 

 

14,838

 

 

 

 

Recognition of stock-based compensation expense and related charges

 

47,452

 

 

74,977

 

 

 

 

Deferred income taxes

 

14,008

 

 

(39,762)

 

 

 

 

Provision for allowance for doubtful accounts

 

10,734

 

 

20,577

 

 

 

 

Other, net

 

34,204

 

 

(4,059)

 

 

 

Change in operating assets and liabilities, exclusive of net assets acquired:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(528,597)

 

 

(1,692,208)

 

 

 

Contract assets

 

(865,408)

 

 

 

 

 

Inventories

 

349,252

 

 

(379,658)

 

 

 

 

Prepaid expenses and other current assets

 

6,910

 

 

(98,160)

 

 

 

Other assets

 

(16,700)

 

 

(21,542)

 

 

 

Accounts payable, accrued expenses and other liabilities

 

253,721

 

 

20,897

 

 

 

 

Net cash provided by (used in) operating activities

 

112,656

 

 

(1,376,305)

 

 

Cash flows (used in) provided by investing activities:

 

 

 

 

 

 

 

 

 

Acquisition of property, plant and equipment

 

(789,226)

 

 

(819,167)

 

 

 

 

Proceeds and advances from sale of property, plant and equipment

 

167,653

 

 

246,370

 

 

 

 

Cash paid for business and intangible asset acquisitions, net of cash

 

(153,239)

 

 

(109,664)

 

 

 

Cash receipts on sold receivables

 

96,846

 

 

1,571,156

 

 

 

 

Other, net

 

(26,129)

 

 

(2,360)

 

 

 

Net cash (used in) provided by investing activities

 

(704,095)

 

 

886,335

 

 

 

Cash flows provided by (used in) financing activities:

 

 

 

 

 

 

 

 

 

Borrowings under debt agreements

 

9,482,468

 

 

6,847,756

 

 

 

 

Payments toward debt agreements

 

(9,073,684)

 

 

(6,472,728)

 

 

 

Payments to acquire treasury stock

 

(350,323)

 

 

(316,394)

 

 

 

Dividends paid to stockholders

 

(39,736)

 

 

(44,274)

 

 

 

Net proceeds from exercise of stock options and issuance of common stock under

 

14,582

 

 

12,844

 

 

 

 

employee stock purchase plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury stock minimum tax withholding related to vesting of restricted stock

 

(11,898)

 

 

(22,526)

 

 

 

Other, net

 

(1,500)

 

 

(11,876)

 

 

 

Net cash provided by (used in) financing activities

 

19,909

 

 

(7,198)

 

 

Effect of exchange rate changes on cash and cash equivalents

 

7,667

 

 

(15,259)

 

 

Net decrease in cash and cash equivalents

 

(563,863)

 

 

(512,427)

 

 

Cash and cash equivalents at beginning of period

 

1,257,949

 

 

1,189,919

 

 

 

Cash and cash equivalents at end of period

$

694,086

 

$

677,492

 

 

 

 

 

 

 

 

 

 

 

 

 

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES

(in thousands, except for per share data)

(Unaudited)

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

May 31, 2019

 

 

May 31, 2018

 

 

May 31, 2019

 

 

May 31, 2018

 

 

Operating income (U.S. GAAP)

$

140,918

 

 

$

112,971

$

511,611

 

$

388,257

 

 

Amortization of intangibles

 

7,610

 

 

 

10,040

 

 

23,033

 

 

 

29,909

 

 

Stock-based compensation expense and related charges

 

14,506

 

 

 

15,038

 

 

47,452

 

 

 

82,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related charges

 

9,340

 

 

 

12,647

 

 

16,182

 

 

 

29,462

 

 

Distressed customer charge

 

 

 

 

 

 

 

 

14,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business interruption and impairment charges, net

 

 

(634)

 

 

(2,860)

 

 

10,722

 

 

Acquisition and integration charges

 

13,391

 

 

 

 

 

35,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to operating income

 

44,847

 

 

 

37,091

 

 

118,873

 

 

 

167,621

 

 

Core operating income (Non-GAAP)

$

185,765

 

 

$

150,062

$

630,484

 

$

555,878

 

 

Net income attributable to Jabil Inc. (U.S. GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

43,482

 

 

$

42,541

$

234,436

 

$

143,644

 

 

Adjustments to operating income

 

44,847

 

 

 

37,091

 

 

118,873

 

 

 

167,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for taxes(1)

 

125

 

 

 

(16)

 

 

(17,837)

 

 

29,037

 

 

Core earnings (Non-GAAP)

$

88,454

 

 

$

79,616

$

335,472

 

$

340,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (U.S. GAAP)

$

0.28

 

 

$

0.25

$

1.47

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted core earnings per share (Non-GAAP)

$

0.57

 

 

$

0.46

$

2.11

 

$

1.92

 

 

Diluted weighted average shares outstanding (U.S.

 

155,678

 

 

 

173,279

 

 

159,036

 

 

 

176,997

 

 

GAAP and Non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)    The nine months ended May 31, 2019 includes a $13.3 million income tax benefit for the effects of the Tax Act recorded during the three months ended November 30, 2018. The nine months ended May 31, 2018 includes $30.9 million, which is comprised of the provisional one-time transition tax as required by the Tax Act and the provisional impact of the Tax Act to the re-measurement of U.S. deferred tax attributes.

 

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

ROIC & Core ROIC

(in thousands)

(Unaudited)

 

 

 

Three months ended

 

 

 

 

May 31, 2019

 

 

May 31, 2018

 

 

Numerator:

 

 

 

 

 

 

 

Operating income (U.S. GAAP)

$

140,918

$

112,971

 

 

Tax effect (1)

 

(42,490)

 

 

(30,717)

 

 

After-tax operating income

 

98,428

 

 

82,254

 

 

 

 

x4

 

 

x4

 

 

Annualized after-tax operating income

$

393,712

$

329,016

 

 

 

 

 

 

 

 

 

 

Core operating income (Non-GAAP)

$

185,765

$

150,062

 

 

 

 

Tax effect (2)

 

(41,150)

 

 

(29,951)

 

 

After-tax core operating income

 

144,615

 

 

120,111

 

 

 

 

x4

 

 

x4

 

 

Annualized after-tax core operating income

$

578,460

$

480,444

 

 

Denominator:

 

 

 

 

 

 

 

Average total Jabil Inc. stockholders' equity (3)

$

1,851,074

$

2,227,618

 

 

Average notes payable and long-term debt, less current installments (3)

 

2,479,615

 

 

2,152,478

 

 

Average current installments of notes payable and long-term debt (3)

 

315,008

 

 

149,024

 

 

Average cash and cash equivalents (3)

 

(721,572)

 

 

(809,144)

 

 

Net invested capital base

$

3,924,125

$

3,719,976

 

 

 

 

 

 

 

 

 

 

Return on Invested Capital (U.S. GAAP)

 

10.0%

 

 

8.8%

 

 

Adjustments noted above

 

4.7%

 

 

4.1%

 

 

Core Return on Invested Capital (Non-GAAP)

 

14.7%

 

 

12.9%

 

(1)         The tax effect is calculated by applying the U.S. GAAP effective tax rate for the three months ended May 31, 2019 and 2018 to U.S. GAAP operating income less interest expense.

 

(2)         The tax effect is calculated by applying the core effective tax rate for the three months ended May 31, 2019 and 2018 to core operating income less interest expense.

 

(3)         The average is based on the addition of the account balance at the end of the most recently-ended quarter to the account balance at the end of the prior quarter and dividing by two.

 

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

ADJUSTED FREE CASH FLOW

(in thousands)

(Unaudited)

 

 

 

Nine months ended

 

 

 

May 31, 2019

 

 

 

May 31, 2018

Net cash provided by (used in) operating activities (U.S. GAAP)(1)

$

112,656

$

(1,376,305)

Cash receipts on sold receivables

 

96,846

 

 

 

1,571,156

Adjusted cash provided by operating activities (Non-GAAP)

$

209,502

$

194,851

Acquisition of property, plant and equipment

 

(789,226)

 

 

 

(819,167)

Proceeds and advances from sale of property, plant and equipment

 

167,653

 

 

 

246,370

Adjusted free cash flow (Non-GAAP)

 

$

(412,071)

 

$

(377,946)

In fiscal year 2019, the adoption of Accounting Standards Update ("ASU") 2016-15, "Classification of Certain Cash Receipts and Cash Payments" resulted in a reclassification of cash flows from operating activities to investing activities for cash receipts for the deferred purchase price receivable on asset-backed securitization transactions. The adoption of this standard does not reflect a change in the underlying business or activities. The effects of this change are applied retrospectively to all prior 

Jabil Posts Third Quarter Results