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.
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Fourth Quarter of Fiscal Year 2019 Outlook: |
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Net revenue |
$6.3 billion to $6.9 billion |
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U.S. GAAP operating income |
$169 million to $235 million |
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U.S. GAAP diluted earnings per share |
$0.47 to $0.71 per diluted share |
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Core operating income (Non-GAAP) (1) |
$215 million to $275 million |
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Core diluted earnings per share (Non-GAAP) (1) |
$0.76 to $0.96 per diluted share |
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Diversified Manufacturing Services revenue |
Increase 4 percent year-on-year |
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Electronics Manufacturing Services revenue |
Increase 22 percent year-on-year |
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Total company revenue |
Increase 14 percent year-on-year |
(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.)(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).
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.
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Investor Contact |
Media Contact |
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Adam Berry |
Michelle Smith |
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Vice President, Investor Relations |
Vice President, Corporate Communications |
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(727) 803-5772 |
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(727) 803-3534 |
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JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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May 31, 2019 |
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(unaudited) |
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August 31, 2018 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
694,086 |
$ |
1,257,949 |
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Accounts receivable, net |
|
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2,696,599 |
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|
1,693,268 |
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Contract assets |
|
899,482 |
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— |
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Inventories, net |
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3,159,369 |
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3,457,706 |
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Prepaid expenses and other current assets |
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524,833 |
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1,141,000 |
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Total current assets |
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7,974,369 |
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7,549,923 |
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Property, plant and equipment, net |
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3,335,837 |
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3,198,016 |
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Goodwill and intangible assets, net |
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890,679 |
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906,876 |
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Deferred income taxes |
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202,556 |
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218,252 |
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Other assets |
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205,336 |
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172,574 |
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Total assets |
$ |
12,608,777 |
$ |
12,045,641 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Current installments of notes payable and long-term debt |
$ |
454,830 |
$ |
25,197 |
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Accounts payable |
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4,826,333 |
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4,942,932 |
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Accrued expenses |
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2,586,052 |
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2,262,744 |
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Total current liabilities |
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7,867,215 |
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7,230,873 |
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Notes payable and long-term debt, less current installments |
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2,476,842 |
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2,493,502 |
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Other liabilities |
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145,750 |
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94,617 |
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Income tax liabilities |
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136,400 |
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148,884 |
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Deferred income taxes |
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115,370 |
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114,385 |
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Total liabilities |
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10,741,577 |
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10,082,261 |
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Commitments and contingencies |
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Equity: |
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Jabil Inc. stockholders’ equity: |
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Preferred stock |
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— |
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— |
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Common stock |
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260 |
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|
257 |
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Additional paid-in capital |
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2,279,409 |
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2,218,673 |
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Retained earnings |
|
1,996,901 |
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1,760,097 |
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Accumulated other comprehensive loss |
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(50,005) |
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(19,399) |
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Treasury stock, at cost |
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(2,371,592) |
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(2,009,371) |
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Total Jabil Inc. stockholders’ equity |
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1,854,973 |
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1,950,257 |
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Noncontrolling interests |
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12,227 |
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13,123 |
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Total equity |
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1,867,200 |
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1,963,380 |
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Total liabilities and equity |
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$ |
12,608,777 |
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$ |
12,045,641 |
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JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
(Unaudited)
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Three months ended |
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Nine months ended |
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May 31, 2019 |
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May 31, 2018 |
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May 31, 2019 |
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May 31, 2018 |
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Net revenue |
$ |
6,135,602 |
$ |
5,436,952 |
$ |
18,708,867 |
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$ |
16,323,585 |
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Cost of revenue |
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5,691,803 |
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5,038,725 |
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17,290,544 |
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15,058,940 |
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Gross profit |
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443,799 |
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|
398,227 |
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1,418,323 |
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|
1,264,645 |
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Operating expenses: |
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Selling, general and administrative |
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274,482 |
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252,487 |
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834,750 |
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789,482 |
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Research and development |
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11,449 |
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10,082 |
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32,747 |
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|
27,535 |
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Amortization of intangibles |
|
7,610 |
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|
10,040 |
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|
23,033 |
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|
29,909 |
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Restructuring and related charges |
|
9,340 |
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|
12,647 |
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|
16,182 |
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|
29,462 |
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Operating income |
|
140,918 |
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|
112,971 |
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|
511,611 |
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|
388,257 |
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Interest and other, net |
|
57,840 |
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|
41,818 |
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|
162,820 |
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|
123,403 |
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Income before income tax |
|
83,078 |
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|
71,153 |
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|
348,791 |
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|
264,854 |
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Income tax expense |
|
39,046 |
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|
28,451 |
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|
113,078 |
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|
120,705 |
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Net income |
|
44,032 |
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|
42,702 |
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|
235,713 |
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|
|
144,149 |
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Net income attributable to noncontrolling interests, |
|
550 |
|
|
161 |
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|
1,277 |
|
|
|
505 |
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net of tax |
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Net income attributable to Jabil Inc. |
$ |
43,482 |
$ |
42,541 |
$ |
234,436 |
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$ |
143,644 |
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Earnings per share attributable to the stockholders of |
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Jabil Inc.: |
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Basic |
$ |
0.28 |
$ |
0.25 |
$ |
1.50 |
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$ |
0.83 |
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Diluted |
$ |
0.28 |
$ |
0.25 |
$ |
1.47 |
$ |
0.81 |
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Weighted average shares outstanding: |
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Basic |
|
152,889 |
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170,514 |
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156,384 |
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|
174,013 |
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Diluted |
|
155,678 |
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|
173,279 |
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|
159,036 |
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|
176,997 |
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JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
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Nine months ended |
|
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May 31, 2019 |
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May 31, 2018 |
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Cash flows provided by (used in) operating activities: |
|
|
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|
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|
|
|
|
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Net income |
$ |
235,713 |
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$ |
144,149 |
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Adjustments to reconcile net income to net cash provided by (used in) operating |
|
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activities: |
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Depreciation and amortization |
|
574,922 |
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|
583,646 |
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Restructuring and related charges |
|
(3,555) |
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|
14,838 |
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Recognition of stock-based compensation expense and related charges |
|
47,452 |
|
|
74,977 |
|
|
|
|
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Deferred income taxes |
|
14,008 |
|
|
(39,762) |
|
|
|
|
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Provision for allowance for doubtful accounts |
|
10,734 |
|
|
20,577 |
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|
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Other, net |
|
34,204 |
|
|
(4,059) |
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|
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Change in operating assets and liabilities, exclusive of net assets acquired: |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(528,597) |
|
|
(1,692,208) |
|
|
|
|
|
Contract assets |
|
(865,408) |
|
|
— |
|
|
|
|
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Inventories |
|
349,252 |
|
|
(379,658) |
|
|
|
|
|
Prepaid expenses and other current assets |
|
6,910 |
|
|
(98,160) |
|
|
|
|
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Other assets |
|
(16,700) |
|
|
(21,542) |
|
|
|
|
|
Accounts payable, accrued expenses and other liabilities |
|
253,721 |
|
|
20,897 |
|
|
|
|
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Net cash provided by (used in) operating activities |
|
112,656 |
|
|
(1,376,305) |
|
|
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Cash flows (used in) provided by investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment |
|
(789,226) |
|
|
(819,167) |
|
|
|
|
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Proceeds and advances from sale of property, plant and equipment |
|
167,653 |
|
|
246,370 |
|
|
|
|
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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 |
|
|
|
|
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Other, net |
|
(26,129) |
|
|
(2,360) |
|
|
|
|
|
Net cash (used in) provided by investing activities |
|
(704,095) |
|
|
886,335 |
|
|
|
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Cash flows provided by (used in) financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Borrowings under debt agreements |
|
9,482,468 |
|
|
6,847,756 |
|
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|
|
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Payments toward debt agreements |
|
(9,073,684) |
|
|
(6,472,728) |
|
|
|
|
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Payments to acquire treasury stock |
|
(350,323) |
|
|
(316,394) |
|
|
|
|
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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 |
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
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|
|
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