Fabrinet Announces Fourth Quarter and Fiscal Year 2013 Financial Results

Fabrinet Announces Fourth Quarter and Fiscal Year 2013 Financial Results

BANGKOK--(BUSINESS WIRE)-- Fabrinet (NYS: 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 the fourth quarter and fiscal year ended June 28, 2013.

Fabrinet reported total revenue of $159.9 million for the fourth quarter of fiscal 2013, an increase of 12.0% compared to total revenue of $142.8 million for the comparable period in fiscal 2012. GAAP net income for the fourth quarter of fiscal 2013 was $15.1 million, or $0.43 per diluted share, compared to GAAP net income of $7.5 million, or $0.22 per diluted share, in the fourth quarter of fiscal 2012. Non-GAAP net income in the fourth quarter of fiscal 2013 was $12.4 million, or $0.35 per diluted share, an increase of 16.1% compared to non-GAAP net income of $10.7 million, or $0.31 per diluted share, in the same period a year ago.


For fiscal year 2013, Fabrinet reported total revenue of $641.5 million, an increase of 13.6% compared to total revenue of $564.7 million for fiscal year 2012. GAAP net income for fiscal 2013 was $69.0 million, or $1.98 per diluted share, compared to a GAAP net loss of $(56.5) million, or $(1.64) per diluted share, in fiscal 2012. Non-GAAP net income in fiscal 2013 was $50.5 million, or $1.44 per diluted share, an increase of 16.4% compared to non-GAAP net income of $43.4 million, or $1.25 per diluted share, in fiscal 2012.

Tom Mitchell, Chief Executive Officer of Fabrinet, said, "I am pleased to end the fiscal year on a positive note, with our fourth quarter results demonstrating sequential increases in revenue, margins and earnings per share. As we enter fiscal 2014, I am confident that our healthy pipeline of new business, strong customer relationships and intense focus on quality and total customer satisfaction, will deliver another year of profitable growth."

Business Outlook

Based on information available as of August 12, 2013, Fabrinet is issuing guidance for the first quarter of fiscal 2014 as follows:

Fabrinet expects first quarter revenue to be in the range of $158 million to $162 million. GAAP net income per share is expected to be in the range of $0.46 to $0.48 with expected non-GAAP net income per share of $0.31 to $0.33, based on approximately 35 million fully diluted shares outstanding.

Conference Call Information

 
What:Fabrinet Fourth Quarter and Fiscal Year 2013 Financial Results Conference Call
When:Monday, August 12, 2013
Time:5:00 p.m. ET
Live Call:(888) 357-3694, domestic
(253) 237-1137, international
Passcode:21827886
Replay:(855) 859-2056, domestic
(404) 537-3406, international
Passcode:21827886
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.

Investor Conferences

Management will be presenting at the Deutsche Bank dbAccess Technology Conference in Las Vegas on Tuesday, September 10, 2013.

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, 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 People's Republic of China and the United States. 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 all of the statements under the "Business Outlook" section relating to our forecasted operating results for the first quarter of fiscal 2014. 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 the U.S., Thailand and the People's Republic of China); 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 3, 2013. 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

The Company refers to the non-GAAP financial measures cited above in making operating decisions because they provide meaningful supplemental information regarding the Company's ongoing operational performance. Non-GAAP net income excludes share-based compensation expenses, follow-on offering expenses, expenses related to reduction in workforce and income (expense) related to flooding. We have excluded these items in order to enhance investors' understanding of our ongoing 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 financial and operational decision making. 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
As of June 28, 2013 and June 29, 2012      
(in thousands of U.S. dollars, except share data)June 28,

2013

June 29,

2012

Assets
Current assets
Cash and cash equivalents$149,716$115,507
Trade accounts receivable, net118,475128,253
Inventory, net88,962103,223
Deferred tax assets1,9374,088
Prepaid expenses1,9313,571
Other current assets3,5056,029
Total current assets364,526360,671
Non-current assets
Property, plant and equipment, net97,20697,923
Intangibles, net164380
Deferred tax assets2,9051,764
Deposits and other non-current assets107624
Total non-current assets100,382100,691
Total assets$464,908$461,362
Liabilities and Shareholders' Equity
Current liabilities
Long-term loans from bank, current portion$9,668$9,668
Trade accounts payable77,13986,000
Construction-related payable-2,222
Income tax payable1,825927
Deferred tax liability2,4811,405
Accrued payroll, bonus and related expenses6,2205,181
Accrued expenses3,1212,630
Other payables5,1636,601
Liabilities to third parties due to flood losses9,81261,198
Total current liabilities115,429175,832
Non-current liabilities
Long-term loans from bank, non-current portion19,24328,911
Severance liabilities4,3824,420
Other non-current liabilities5361,490
Total non-current liabilities24,16134,821
Total liabilities139,590210,653
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, 2013 and June 29, 2012)--
Ordinary shares (500,000,000 shares authorized, $0.01 par value;
34,634,967 shares and 34,470,829 shares issued and
outstanding as of June 28, 2013 and June 29, 2012, respectively)346345
Additional paid-in capital71,10165,462
Retained earnings253,871184,902
Total shareholders' equity325,318250,709
Total Liabilities and Shareholders' Equity$464,908$461,362

Fabrinet
Consolidated Statements of Operations
For the three and twelve months ended June 28, 2013 and June 29, 2012

   
Three Months EndedTwelve Months Ended
June 28,June 29,June 28,June 29,

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

2013201220132012
 
Revenues

$

159,934

$

142,757

$

641,542

$

564,732
Cost of revenues(142,863)(127,537)(572,124)(502,818)
Gross profit17,07115,22069,41861,914
Selling, general and administrative expenses(5,340)(4,923)(23,787)(23,466)
Income (expense) related to flooding6,147(1,398)27,211(97,286)
Expenses related to reduction in workforce(2,052)(1,978)(2,052)(1,978)
Operating income (loss)15,8266,92170,790(60,816)
Interest income3222161,083844
Interest expense(222)(221)(1,010)(427)
Foreign exchange (loss) gain, net(731)2553541,569
Other income180 182 692 395 
Income (loss) before income taxes15,3757,35371,909(58,435)
Income tax (expense) benefit(233)104 (2,940)1,968 
Net income (loss)

$

15,142 $7,457 $68,969 $(56,467)
 
Earnings (loss) per share
Basic$0.44$0.22$2.00$(1.64)
Diluted$0.43$0.22$1.98$(1.64)
 
Weighted average number of ordinary shares outstanding
(thousands of shares)

Basic

34,62934,46934,557

34,382*

Diluted

35,00034,62434,846

34,382*

* In accordance with the antidilutive provisions of ASC 260-10-45, basic and dilutive shares are the same for twelve months ended June 29, 2012

Fabrinet

Consolidated Statements of Cash Flows

For the twelve months ended June 28, 2013 and June 29, 2012

  
Twelve Months Ended
June 28, June 29,
(in thousands of U. S. dollars)20132012
 
Cash flows from operating activities
Net income (loss) for the year$68,969$(56,467)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation9,9949,339
Amortization of intangibles217374
(Gain) write-off on disposal of property, plant and equipment(24)17
Income related to flooding(29,465)-
Proceeds from insurers for business interruption losses related to flooding13,143-
Proceeds from insurers for inventory losses related to flooding11,419-
(Reversal of) allowance for doubtful accounts(94)124
Unrealized (gain) loss on exchange rate and fair value of derivative(1,043)(925)
Share-based compensation5,1004,649
Deferred income tax2,086(2,242)
Other non-cash expenses(89)93
(Reversal of) inventory obsolescence(584)499
Loss from written-off assets and liabilities to third parties due to flood losses2,25583,871
Changes in operating assets and liabilities
Trade accounts receivable4,739(10,672)
Inventory14,229(13,867)
Other current assets and non-current assets(1,207)(5,291)
Trade accounts payable(8,861)(6,563)
Income tax payable(5)(1,505)
Other current liabilities and non-current liabilities(35)817
Liabilities to third parties due to flood losses(41,994)-
Net cash provided by operating activities48,7502,251
Cash flows from investing activities
Purchase of property, plant and equipment(10,793)(35,535)
Purchase of intangibles(2)(147)
Purchase of assets for lease under direct financing leases-(2,940)
Proceeds from direct financing leases-1,217
Proceeds from disposal of property, plant and equipment2927
Proceeds from insurers in settlement of claims related to flood damage4,904-
Net cash used in investing activities(5,862)(37,378)
Cash flows from financing activities
Receipt of long-term loans from bank-28,000
Repayment of long-term loans from bank(9,668)(5,798)
Proceeds from issuance of ordinary shares under employee share option plans

 

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

More to Explore
Tue, Oct 17
Set Your Location
City, State, or Zip