On June 21, electronics manufacturer Jabil Circuit
- Gosh, what happened to the profits? A $25 million restructuring charge didn't help any, and neither did $47 million higher selling, general, and administrative expenses. That's 50.4% higher SG&A costs funded by a 15.8% sales increase.
- But the stock is up more than 10% today, so this is a good report, right? Well, maybe if your expectations were diving for deep-sea pearls. Non-GAAP earnings of $0.23 per share fell at the low end of management's guidance, and that's after backing out such inconvenient items as stock-based compensation (who needs it?), restructuring (one time only, honest!), and amortization of intangibles (intangibles -- you can't even see them!). Just keep in mind that Jabil's gain came off a three-year low, and that the share price is still down 45% from 14 months ago.
- $926 million of the long-term debt is in current installments. Most of that is a bridge loan that management hopes to replace with a more permanent financing vehicle very soon.
(Figures in millions, except per-share data)
Income Statement Highlights
Q3 2007 |
Q3 2006 |
Change |
|
---|---|---|---|
Sales |
$3,002 |
$2,592 |
15.8% |
Net Profit |
$6.2 |
$64.2 |
(90.3%) |
EPS |
$0.03 |
$0.30 |
(90.0%) |
Diluted Shares |
205.8 |
215.8 |
(4.7%) |
Get back to basics with the income statement.
Margin Checkup
Q3 2007 |
Q3 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
7.3% |
7.2% |
0.1 |
Operating Margin |
1.1% |
3.0% |
(1.9) |
Net Margin |
0.2% |
2.5% |
(2.3) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$558 |
$855 |
(34.7%) |
Accounts Rec. |
$1,337 |
$1,139 |
17.3% |
Inventory |
$1,447 |
$1,230 |
17.6% |
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Accounts Payable |
$1,890 |
$1,791 |
5.5% |
Long-Term Debt* |
$1,324 |
$356 |
271.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend. Sorry, but our pal can't come out and play today.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.