Fabrinet Announces Fourth Quarter and Fiscal Year 2019 Financial Results

  • Fiscal Year 2019 Revenue Increases 15% from Fiscal Year 2018
  • GAAP and Non-GAAP Net Income Grow 44% and 26%, Respectively
  • Cash Flow From Operations of $147.4 Million Up 7% From Prior Year

BANGKOK–(BUSINESS WIRE)–Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for its fourth quarter and fiscal year ended June 28, 2019.

Seamus Grady, Chief Executive Officer of Fabrinet, said, “We are pleased with our strong revenue and earnings performance in the fourth quarter, which represented quarterly records for the company. These results reflect the diversity of our customers and the markets that we serve.”

Grady continued, “These strong fourth quarter results also capped the best fiscal year in our history, as we generated record revenue, profitability and operating cash flows, on a full year basis. While we expect first quarter revenue and EPS to moderate from our record fourth quarter performance, we remain optimistic that our leadership as a trusted manufacturing partner positions us for continued success in fiscal 2020 and beyond.”

Fourth Quarter Fiscal Year 2019 Financial Highlights

GAAP Results

  • Revenue for the fourth quarter of fiscal year 2019 was $405.1 million, compared to revenue of $345.3 million for the comparable period in fiscal year 2018.
  • GAAP net income for the fourth quarter of fiscal year 2019 was $33.0 million, compared to GAAP net income of $22.8 million for the fourth quarter of fiscal year 2018. GAAP net income for the fourth quarter of fiscal year 2019 included a foreign exchange gain of $1.8 million, or $0.05 per diluted share, compared to a foreign exchange loss of ($0.9) million, or ($0.02) per diluted share, for the fourth quarter of fiscal year 2018.
  • GAAP net income per diluted share for the fourth quarter of fiscal year 2019 was $0.88, compared to GAAP net income per diluted share of $0.60 for the fourth quarter of fiscal year 2018.

Non-GAAP Results

  • Non-GAAP net income for the fourth quarter of fiscal year 2019 was $37.6 million, compared to non-GAAP net income of $30.7 million for the fourth quarter of fiscal year 2018. Non-GAAP net income for the fourth quarter of fiscal year 2019 included a foreign exchange gain of $1.8 million, or $0.05 per diluted share, compared to a foreign exchange loss of ($0.9) million, or ($0.02) per diluted share, for the fourth quarter of fiscal year 2018.
  • Non-GAAP net income per diluted share for the fourth quarter of fiscal year 2019 was $1.00, compared to non-GAAP net income per diluted share of $0.81 for the same period a year ago.

Fiscal Year 2019 Financial Highlights

GAAP Results

  • Revenue for fiscal year 2019 was $1,584.3 million, an increase of 15% compared to revenue of $1,371.9 million for fiscal year 2018.
  • GAAP net income for fiscal year 2019 was $121.0 million, an increase of 44% compared to GAAP net income of $84.2 million for fiscal year 2018. GAAP net income for fiscal year 2019 included a foreign exchange gain of $1.4 million, or $0.04 per diluted share, compared to a foreign exchange loss of ($6.6) million, or ($0.17) per diluted share, for fiscal year 2018.
  • GAAP net income per diluted share for fiscal year 2019 was $3.23, compared to GAAP net income per diluted share of $2.21 for fiscal year 2018.

Non-GAAP Results

  • Non-GAAP net income for fiscal year 2019 was $142.6 million, an increase of 26% compared to non-GAAP net income of $113.5 million for fiscal year 2018. Non-GAAP net income for fiscal year 2019 included a foreign exchange gain of $1.4 million, or $0.04 per diluted share, compared to a foreign exchange loss of ($6.6) million, or ($0.17) per diluted share, for fiscal year 2018.
  • Non-GAAP net income per diluted share for fiscal year 2019 was $3.81, compared to non-GAAP net income per diluted share of $2.98 for fiscal year 2018.

Business Outlook

Based on information available as of August 19, 2019, Fabrinet is issuing guidance for its first quarter of fiscal year 2020 ending September 27, 2019, as follows:

  • Fabrinet expects first quarter revenue to be in the range of $386 million to $394 million.
  • GAAP net income per diluted share is expected to be in the range of $0.64 to $0.68, based on approximately 37.4 million fully diluted shares outstanding.
  • Non-GAAP net income per diluted share is expected to be in the range of $0.80 to $0.84, based on approximately 37.4 million fully diluted shares outstanding.

Conference Call Information

What:

Fabrinet Fourth Quarter and Fiscal Year 2019 Financial Results Call

When:

Monday, August 19, 2019

Time:

5:00 p.m. ET

Live Call:

(888) 357-3694, domestic

 

(253) 237-1137, international

 

Passcode: 5568615

Replay:

(855) 859-2056, domestic

 

(404) 537-3406, international

 

Passcode: 5568615

Webcast:

http://investor.fabrinet.com/ (live and replay)

This press release and any other information related to the call will also be posted on Fabrinet’s website at http://investor.fabrinet.com. A recorded version of this webcast will be available approximately two hours after the call and will be archived on Fabrinet’s website for a period of one year.

About Fabrinet

Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and test. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People’s Republic of China and the United Kingdom. For more information visit: www.fabrinet.com.

Forward-Looking Statements

“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include: (1) statements regarding our expectation that revenue and EPS for the first quarter of fiscal year 2020 will moderate from our performance for the fourth quarter of fiscal year 2019, as well as our expectation that we will have success in fiscal year 2020 and beyond; and (2) all of the statements under the “Business Outlook” section regarding our expected revenue, GAAP and non-GAAP net income per share, and fully diluted shares outstanding for the first quarter of fiscal year 2020. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: less customer demand for our products and services than forecasted; less growth in the optical communications, industrial lasers and sensors markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased competition in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a small number of customers and suppliers; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including Thailand, the People’s Republic of China, the U.S. and the U.K.); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q, filed on May 7, 2019. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financials

We refer to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding our ongoing operational performance. Non-GAAP net income excludes: share-based compensation expenses; depreciation of fair value uplift; ASC 606 adoption impact on gross profit; severance payments; expenses related to our CFO/CEO search; amortization of intangibles; business combination expenses and consulting fee; amortization of debt issuance costs; and expenses related to reduction in workforce. We have excluded these items in order to enhance investors’ understanding of our underlying operations. The use of these non-GAAP financial measures has material limitations because they should not be used to evaluate our company without reference to their corresponding GAAP financial measures. As such, we compensate for these material limitations by using these non-GAAP financial measures in conjunction with GAAP financial measures.

These non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in making financial and operational decisions. In addition, these non-GAAP financial measures are used to measure company performance for the purposes of determining employee incentive plan compensation.

FABRINET

CONSOLIDATED BALANCE SHEETS

 

(in thousands of U.S. dollars, except share data and par value)

 

June 28,

2019

 

June 29,

2018

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

180,839

 

$

158,102

Restricted cash in connection with business acquisition

 

 

 

 

3,331

Short-term investments

 

 

256,493

 

 

174,269

Trade accounts receivable, net

 

 

260,602

 

 

246,912

Contract assets

 

 

12,447

 

 

Inventory, net

 

 

293,612

 

 

257,687

Prepaid expenses

 

 

8,827

 

 

8,061

Other current assets

 

 

11,015

 

 

5,948

Total current assets

 

 

1,023,835

 

 

854,310

Non-current assets

 

 

 

 

 

 

Long-term restricted cash

 

 

7,402

 

 

Property, plant and equipment, net

 

 

210,686

 

 

219,640

Intangibles, net

 

 

3,887

 

 

4,880

Goodwill

 

 

3,705

 

 

3,828

Deferred tax assets

 

 

5,679

 

 

5,280

Other non-current assets

 

 

124

 

 

80

Total non-current assets

 

 

231,483

 

 

233,708

Total Assets

 

$

1,255,318

 

$

1,088,018

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Bank borrowings

 

$

3,250

 

$

3,250

Trade accounts payable

 

 

257,617

 

 

220,159

Contract liabilities

 

 

2,239

 

 

Capital lease liability, current portion

 

 

398

 

 

451

Income tax payable

 

 

1,801

 

 

709

Deferred liability in connection with business acquisition

 

 

 

 

3,331

Accrued payroll, bonus and related expenses

 

 

16,510

 

 

13,476

Accrued expenses

 

 

8,997

 

 

9,013

Other payables

 

 

22,236

 

 

19,728

Total current liabilities

 

313,048

 

270,117

Non-current liabilities

 

 

 

 

Long-term loan from bank

 

57,688

 

60,938

Deferred tax liability

 

 

3,561

 

 

2,284

Capital lease liability, non-current portion

 

102

 

516

Severance liabilities

 

15,209

 

10,162

Other non-current liabilities

 

2,611

 

3,062

Total non-current liabilities

 

79,171

 

76,962

Total Liabilities

 

 

392,219

 

347,079

Commitments and contingencies

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 28, 2019 and June 29, 2018)

 

 

Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,230,753 shares and 37,723,733 shares issued as of June 28, 2019 and June 29, 2018, respectively; and 36,841,650 shares and 36,434,630 shares outstanding as of June 28, 2019 and June 29, 2018, respectively)

 

 

382

 

 

377

Additional paid-in capital

 

 

158,299

 

151,797

Less: Treasury shares (1,389,103 shares and 1,289,103 shares as of June 28, 2019 and June 29, 2018, respectively)

 

 

(47,779)

 

(42,401)

Accumulated other comprehensive loss

 

 

(2,386)

 

(1,257)

Retained earnings

 

 

754,583

 

632,423

Total Shareholders’ Equity

 

863,099

 

740,939

Total Liabilities and Shareholders’ Equity

 

$

1,255,318

 

$

1,088,018

 

FABRINET

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

 

 

Three Months Ended

 

Twelve Months Ended

(in thousands of U.S. dollars, except per share data)

June 28,

2019

 

June 29,

2018

 

June 28,

2019

 

June 29,

2018

 

 

 

 

 

 

 

 

 

Revenues

$

405,127

 

 

$

345,327

 

 

$

1,584,335

 

 

$

1,371,925

 

Cost of revenues

 

(358,501

)

 

 

(306,346

)

 

 

(1,405,111

)

 

 

(1,218,513

)

Gross profit

 

46,626

 

 

 

38,981

 

 

 

179,224

 

 

 

153,412

 

Selling, general and administrative expenses

 

(13,771

)

 

 

(16,559

)

 

 

(55,067

)

 

 

(57,812

)

Expenses related to reduction in workforce

 

(789

)

 

 

 

(1,516

)

 

 

(1,776

)

Operating income

 

32,066

 

 

 

22,422

 

 

 

122,641

 

 

 

93,824

 

Interest income

 

1,929

 

 

 

1,371

 

 

 

6,699

 

 

 

3,925

 

Interest expense

 

(1,708

)

 

 

(1,107

)

 

 

(5,381

)

 

 

(3,606

)

Foreign exchange gain (loss), net

 

1,814

 

 

 

(877

)

 

 

1,406

 

 

 

(6,587

)

Other income, net

 

70

 

 

 

35

 

 

 

868

 

 

 

473

 

Income before income taxes

 

34,171

 

 

 

21,844

 

 

 

126,233

 

 

 

88,029

 

Income tax expense

 

(1,214

)

 

 

924

 

 

 

(5,278

)

 

 

(3,862

)

Net income

 

32,957

 

 

 

22,768

 

 

 

120,955

 

 

 

84,167

 

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

Change in net unrealized gain (loss) on available-for-sale securities

644

29

2,043

(1,019

)

Change in net unrealized gain (loss) on derivative instruments

1

 

 

(1

)

 

 

(1

)

Change in retirement benefits plan – prior service cost

 

(2,537

)

 

 

 

(2,537

)

 

Change in foreign currency translation adjustment

 

(415

)

 

 

(1,247

)

 

 

(634

)

 

 

111

 

Total other comprehensive loss, net of tax

 

(2,307

)

 

 

(1,218

)

 

 

(1,129

)

 

 

(909

)

Net comprehensive income

 

30,650

 

 

 

21,550

 

 

$

119,826

 

 

$

83,258

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

 

$

0.89

 

 

$

0.62

 

 

$

3.29

 

 

$

2.26

 

Diluted

 

$

0.88

 

 

$

0.60

 

 

$

3.23

 

 

$

2.21

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares outstanding

(thousands of shares)

Basic

 

 

36,836

 

 

 

36,828

 

 

 

36,798

 

 

 

37,257

 

Diluted

 

 

37,511

 

 

 

37,766

 

 

 

37,415

 

 

 

38,035

 

FABRINET

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Years Ended

(in thousands of U. S. dollars)

 

June 28,

2019

 

June 29,

2018

 

 

 

 

Cash flows from operating activities

 

 

 

 

Net income

 

$

120,955

 

 

$

84,167

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

Depreciation and amortization

 

 

29,944

 

 

 

29,087

 

(Gain) loss on disposal and impairment of property, plant and equipment

 

 

(4

)

 

 

18

 

Loss on disposal of intangibles

 

 

149

 

 

 

447

 

Loss from sales and maturities of available-for-sale securities

 

 

135

 

 

 

364

 

Amortization of investment discount

 

 

(592

)

 

 

(506

)

Amortization of deferred debt issuance costs

 

 

 

994

 

Allowance for doubtful accounts (reversal)

 

 

36

 

 

 

(23

)

Unrealized (gain) loss on exchange rate and fair value of derivative

 

 

(6,980

)

 

 

4,222

 

Share-based compensation

 

 

17,157

 

 

 

22,581

 

Deferred income tax

 

 

879

 

 

 

(2,074

)

Severance liabilities

 

 

3,343

 

 

 

1,801

 

Other non-cash expenses

 

 

(450

)

 

 

332

 

(Reversal of) Inventory obsolescence

 

 

(563

)

 

 

(436

)

Changes in operating assets and liabilities

 

 

 

 

Trade accounts receivable

 

 

(13,494

)

 

 

17,852

 

Contract assets

 

 

(2,570

)

 

Inventory

 

 

(44,035

)

 

 

(19,432

)

Other current assets and non-current assets

 

 

(186

)

 

 

(4,464

)

Trade accounts payable

 

 

38,807

 

 

 

3,502

 

Contract liabilities

 

 

2,239

 

 

Income tax payable

 

 

1,092

 

 

 

(1,267

)

Other current liabilities and non-current liabilities

 

 

1,532

 

 

 

915

 

Net cash provided by operating activities

 

 

147,394

 

 

 

138,080

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of short-term investments

 

 

(233,080

)

 

 

(152,908

)

Proceeds from sales of short-term investments

 

 

99,142

 

 

 

61,795

 

Proceeds from maturities of short-term investments

 

 

54,215

 

 

 

67,417

 

Payments in connection with business acquisition, net of cash acquired

 

 

Purchase of property, plant and equipment

 

 

(18,661

)

 

 

(33,825

)

Proceeds from disposal of property, plant and equipment

 

 

599

 

 

 

449

 

Purchase of intangibles

 

 

(282

)

 

 

(1,577

)

Net cash used in investing activities

 

 

(98,067

)

 

 

(58,649

)

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds of short-term loan from bank

 

 

 

5,000

 

Repayment of short-term loan from bank

 

 

 

(1,003

)

Repayment of long-term loan from bank

 

 

(3,250

)

 

 

(11,212

)

Proceeds from issuance of ordinary shares under employee share option plan

 

 

 

1,436

 

Repayment of capital lease liability

 

 

(468

)

 

 

(417

)

Repurchase of ordinary shares

 

 

(5,378

)

 

 

(42,401

)

Release of restricted cash held in connection with business acquisition

 

 

(3,478

)

 

Withholding tax related to net share settlement of restricted share units

 

 

(10,649

)

 

 

(5,509

)

Net cash used in financing activities

 

 

(23,223

)

 

 

(54,106

)

Net increase in cash, cash equivalents and restricted cash

 

$

26,104

 

 

$

25,325

 

 

 

 

 

Movement in cash, cash equivalents and restricted cash

 

 

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

$

161,433

 

 

$

137,137

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

26,104

 

 

 

25,325

 

Effect of exchange rate on cash, cash equivalents and restricted cash

 

 

704

 

 

 

(1,029

)

Cash, cash equivalents and restricted cash at end of period

 

$

188,241

 

 

$

161,433

 

FABRINET

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of same amounts shown in the consolidated statements of cash flows:

(amount in thousands)

As of

June 28,

2019

As of

June 29,

2018

 

 

 

Cash and cash equivalents

$

180,839

$

158,102

Restricted cash

 

7,402

 

3,331

Cash, cash equivalents and restricted cash

$

188,241

$

161,433

 

 

 

FABRINET

RECONCILIATION OF ASC 605 TO ASC 606

 

 

Three Months Ended

June 28,2019

(in thousands of U.S. dollars, except per share data)

As reported

under

ASC 606

 

Adjustment

 

ASC 605

Revenues

$

405,127

 

$

(1,894)

 

$

403,233

Cost of revenues

 

(357,144)

 

 

1,404

 

 

(355,740)

Gross profit

 

47,983

 

 

(490)

 

 

47,493

Selling, general and administrative expenses

 

(11,267)

 

 

 

 

(11,267)

Operating income

 

36,716

 

 

(490)

 

 

36,226

Interest income

 

1,929

 

 

(10)

 

 

1,919

Interest expense

 

(1,708)

 

 

 

 

(1,708)

Foreign exchange gain, net

 

1,814

 

 

 

 

1,814

Other income, net

 

70

 

 

 

 

70

Income before income taxes

 

38,821

 

 

(500)

 

 

38,321

Income tax expense

 

(1,214)

 

 

 

 

(1,214)

Net income

 

37,607

 

 

(500)

 

 

37,107

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

Change in net unrealized gain on available-for-sale securities

644

644

Change in net unrealized gain on derivative instruments

1

1

Change in retirement benefits plan – prior service cost

 

(2,537)

 

 

 

 

(2,537)

Change in foreign currency translation adjustment

 

(415)

 

 

 

 

(415)

Total other comprehensive loss, net of tax

 

(2,307)

 

 

 

 

(2,307)

Net comprehensive income

$

35,300

 

$

(500)

 

$

34,800

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

$

1.02

 

$

(0.01)

 

$

1.01

Diluted

$

1.00

 

$

(0.01)

 

$

0.99

 

 

 

 

Weighted-average number of ordinary shares outstanding (thousands of shares)

 

 

 

Basic

 

36,836

 

 

 

 

36,836

Diluted

 

37,511

 

 

 

 

37,511

FABRINET

RECONCILIATION OF ASC 605 TO ASC 606

 

 

Twelve Months Ended

June 28,2019

(in thousands of U.S. dollars, except per share data)

As reported

under

ASC 606

 

Adjustment

 

 

ASC 605

Revenues

$

1,584,055

 

$

(2,560)

 

$

1,581,495

Cost of revenues

 

(1,398,866)

 

 

1,745

 

 

(1,397,121)

Gross profit

 

185,189

 

 

(815)

 

 

184,374

Selling, general and administrative expenses

 

(40,909)

 

 

 

 

(40,909)

Operating income

 

144,280

 

 

(815)

 

 

143,465

Interest income

 

6,699

 

 

(10)

 

 

6,689

Interest expense

 

(5,381)

 

 

 

 

(5,381)

Foreign exchange gain, net

 

1,406

 

 

 

 

1,406

Other income, net

 

868

 

 

 

 

868

Income before income taxes

 

147,872

 

 

(825)

 

 

147,047

Income tax expense

 

(5,278)

 

 

 

 

(5,278)

Net income

 

142,594

 

 

(825)

 

 

141,769

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

Change in net unrealized gain on available-for-sale securities

2,043

2,043

Change in net unrealized loss on derivative instruments

(1)

(1)

Change in retirement benefits plan – prior service cost

 

(2,537)

 

 

 

 

(2,537)

Change in foreign currency translation adjustment

 

(634)

 

 

 

 

(634)

Total other comprehensive loss, net of tax

 

(1,129)

 

 

 

 

(1,129)

Net comprehensive income

$

141,465

 

$

(825)

 

$

140,640

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

$

3.88

 

$

(0.03)

 

$

3.85

Diluted

$

3.81

 

$

(0.02)

 

$

3.79

 

 

 

 

Weighted-average number of ordinary shares outstanding (thousands of shares)

 

 

 

Basic

 

36,798

 

 

 

 

36,798

Diluted

37,415

37,415

FABRINET

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

Three Months Ended

 

Twelve Months Ended

 

June 28, 2019

 

June 29, 2018

 

June 28, 2019

 

June 29, 2018

(in thousands of U.S. dollars, except per share data)

Net

income

Diluted

EPS

 

Net

income

Diluted

EPS

 

Net

income

Diluted

EPS

 

Net

income

Diluted

EPS

 

 

 

 

 

 

 

 

 

 

 

 

GAAP measures

32,957

0.88

 

22,768

0.60

 

120,955

3.23

 

84,167

2.21

Items reconciling GAAP net income & EPS to non-GAAP net income & EPS:

 

 

 

 

 

 

 

 

 

 

 

Related to cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

1271

0.03

 

1,507

0.04

 

5,655

0.15

 

6,784

0.18

Depreciation of fair value uplift

86

0.00

 

89

0.00

 

341

0.01

 

330

0.01

ASC 606 adoption impact on gross profit

 

 

(31)

(0.00)

 

Total related to gross profit

1,357

0.04

 

1,596

0.04

 

5,965

0.16

 

7,114

0.19

 

 

 

 

 

 

 

 

 

 

 

 

Related to selling, general and administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expenses

2,513

0.07

 

3,370

0.09

 

11,502

0.31

 

15,797

0.42

Expenses related to CFO/CEO search

(567)

(0.02)

 

 

290

0.01

 

204

0.01

Amortization of intangibles

163

0.00

 

199

0.01

 

694

0.02

 

780

0.02

Business combination expenses and consulting fee

224

0.01

 

 

552

0.01

 

117

0.00

Severance payments

171

0.00

 

2,142

0.06

 

1,120

0.03

 

2,142

0.06

Total related to selling, general and administrative expenses

2,504

0.07

 

5,711

0.15

 

14,158

0.38

 

19,040

0.50

 

 

 

 

 

 

 

 

 

 

 

 

Related to other incomes and other expenses:

 

 

 

 

 

 

 

 

 

 

 

Expenses related to reduction in workforce

789

0.02

 

 

1,516

0.04

 

1,776

0.05

Amortization of debt issuance costs

 

634

0.02

 

 

1,412

0.04

 

 

 

 

 

 

 

 

 

 

 

 

Total related to other incomes and other expenses

789

0.02

 

634

0.02

 

1,516

0.04

 

3,188

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total related to net income & EPS

4,650

0.12

 

7,941

0.21

 

21,639

0.58

 

29,342

0.77

 

 

 

 

 

 

 

 

 

 

Non-GAAP measures

37,607

1.00

 

30,709

0.81

 

142,594

3.81

 

113,509

2.98

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing diluted net income per share

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted shares

 

37,511

 

 

37,766

 

 

37,415

 

 

38,035

Non-GAAP diluted shares

 

37,511

 

 

37,766

 

 

37,415

 

 

38,035

FABRINET

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

 

(amount in thousands)

Three Months Ended

Twelve Months Ended

 

June 28,

2019

June 29,

2018

June 28,

2019

June 29,

2018

 

 

 

 

 

Net cash provided by operating activities

$

41,890

 

$

48,286

 

$

147,394

 

$

138,080

 

Less: Purchase of property, plant and equipment

 

(5,450

)

 

(5,557

)

 

(18,661

)

 

(33,825

)

Non-GAAP free cash flow

$

36,440

 

$

42,729

 

$

128,733

 

$

104,255

 

FABRINET

GUIDANCE FOR QUARTER ENDING SEPTEMBER 27, 2019

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

 

 

Diluted

EPS

GAAP net income per diluted share:

$0.64 to $0.68

Related to cost of revenues:

 

Share-based compensation expenses

0.04

Total related to gross profit

0.04

 

 

Related to selling, general and administrative expenses:

 

Share-based compensation expenses

0.11

Business combination expenses

0.01

Total related to selling, general and administrative expenses

0.12

 

 

Total related to net income & EPS

0.16

Non-GAAP net income per diluted share

$0.80 to $0.84

Contacts

Investor Contact:

Garo Toomajanian

ir@fabrinet.com

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