Cayman Islands | 001-34775 | 98-1228572 | ||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
||||||||||||
Ordinary Shares, $0.01 par value | FN | New York Stock Exchange |
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
FABRINET | ||||||||
By: | /s/ CSABA SVERHA | |||||||
Csaba Sverha | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
Date: May 6, 2024 |
What: | Fabrinet Third Quarter Fiscal Year 2024 Financial Results Call |
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When: | May 6, 2024 |
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Time: | 5:00 p.m. ET | |||||||
Live Call and Replay: | https://investor.fabrinet.com/events-and-presentations/events |
(in thousands of U.S. dollars, except share data and par value) | March 29, 2024 |
June 30, 2023 |
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Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 385,111 | $ | 231,368 | |||||||
Short-term investments | 408,915 | 319,100 | |||||||||
Trade accounts receivable, net of allowance for expected credit losses of $2,838 and $965, respectively | 583,882 | 531,767 | |||||||||
Inventories | 454,134 | 519,576 | |||||||||
Prepaid expenses | 9,369 | 7,849 | |||||||||
Other current assets | 74,731 | 42,880 | |||||||||
Total current assets | 1,916,142 | 1,652,540 | |||||||||
Non-current assets | |||||||||||
Property, plant and equipment, net | 303,118 | 310,350 | |||||||||
Intangibles, net | 2,427 | 2,394 | |||||||||
Operating right-of-use assets | 3,742 | 1,634 | |||||||||
Deferred tax assets | 10,966 | 12,095 | |||||||||
Other non-current assets | 630 | 635 | |||||||||
Total non-current assets | 320,883 | 327,108 | |||||||||
Total Assets | $ | 2,237,025 | $ | 1,979,648 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Long-term borrowings, current portion, net | $ | 3,039 | $ | 12,156 | |||||||
Trade accounts payable | 429,021 | 381,129 | |||||||||
Fixed assets payable | 9,229 | 13,526 | |||||||||
Operating lease liabilities, current portion | 1,333 | 1,201 | |||||||||
Income tax payable | 4,828 | 6,024 | |||||||||
Accrued payroll, bonus and related expenses | 23,727 | 23,748 | |||||||||
Accrued expenses | 20,742 | 20,447 | |||||||||
Other payables | 52,348 | 23,654 | |||||||||
Total current liabilities | 544,267 | 481,885 | |||||||||
Non-current liabilities | |||||||||||
Deferred tax liability | 4,641 | 4,799 | |||||||||
Operating lease liability, non-current portion | 2,003 | 66 | |||||||||
Severance liabilities | 23,820 | 22,159 | |||||||||
Other non-current liabilities | 2,059 | 2,081 | |||||||||
Total non-current liabilities | 32,523 | 29,105 | |||||||||
Total Liabilities | 576,790 | 510,990 | |||||||||
Shareholders’ equity | |||||||||||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of March 29, 2024 and June 30, 2023) | — | — | |||||||||
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,450,434 shares and 39,284,176 shares issued as of March 29, 2024 and June 30, 2023, respectively; and 36,159,101 shares and 36,183,682 shares outstanding as of March 29, 2024 and June 30, 2023, respectively) |
395 | 393 | |||||||||
Additional paid-in capital | 215,570 | 206,624 | |||||||||
Less: Treasury shares (3,291,333 shares and 3,100,494 shares as of March 29, 2024 and June 30, 2023, respectively) | (230,776) | (194,833) | |||||||||
Accumulated other comprehensive income (loss) | (4,658) | (8,115) | |||||||||
Retained earnings | 1,679,704 | 1,464,589 | |||||||||
Total Shareholders’ Equity | 1,660,235 | 1,468,658 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 2,237,025 | $ | 1,979,648 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(in thousands of U.S. dollars, except per share data) | March 29, 2024 |
March 31, 2023 |
March 29, 2024 |
March 31, 2023 |
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Revenues | $ | 731,535 | $ | 665,281 | $ | 2,129,706 | $ | 1,989,366 | |||||||||||||||
Cost of revenues | (640,600) | (579,274) | (1,866,037) | (1,735,388) | |||||||||||||||||||
Gross profit | 90,935 | 86,007 | 263,669 | 253,978 | |||||||||||||||||||
Selling, general and administrative expenses | (19,628) | (18,309) | (59,373) | (57,804) | |||||||||||||||||||
Restructuring and other related costs | — | (5,872) | — | (5,872) | |||||||||||||||||||
Operating income | 71,307 | 61,826 | 204,296 | 190,302 | |||||||||||||||||||
Interest income | 8,509 | 3,317 | 22,155 | 7,210 | |||||||||||||||||||
Interest expense | (26) | (399) | (107) | (1,179) | |||||||||||||||||||
Foreign exchange gain (loss), net | 3,348 | (1,303) | (25) | (3,122) | |||||||||||||||||||
Other income (expense), net | 175 | 31 | 60 | (178) | |||||||||||||||||||
Income before income taxes | 83,313 | 63,472 | 226,379 | 193,033 | |||||||||||||||||||
Income tax expense | (2,397) | (4,117) | (11,264) | (5,906) | |||||||||||||||||||
Net income | 80,916 | 59,355 | 215,115 | 187,127 | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Change in net unrealized gain (loss) on available-for-sale securities | (1,739) | 2,046 | 2,155 | 1,768 | |||||||||||||||||||
Change in net unrealized gain (loss) on derivative instruments | (7,328) | (5,535) | 1,062 | 4,435 | |||||||||||||||||||
Change in net retirement benefits plan – prior service cost | 137 | 113 | 271 | 338 | |||||||||||||||||||
Change in foreign currency translation adjustment | 75 | (191) | (31) | (29) | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | (8,855) | (3,567) | 3,457 | 6,512 | |||||||||||||||||||
Net comprehensive income | $ | 72,061 | $ | 55,788 | $ | 218,572 | $ | 193,639 | |||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | $ | 2.23 | $ | 1.62 | $ | 5.93 | $ | 5.12 | |||||||||||||||
Diluted | $ | 2.21 | $ | 1.60 | $ | 5.88 | $ | 5.07 | |||||||||||||||
Weighted-average number of ordinary shares outstanding (thousands of shares) | |||||||||||||||||||||||
Basic | 36,250 | 36,608 | 36,278 | 36,575 | |||||||||||||||||||
Diluted | 36,603 | 36,989 | 36,574 | 36,895 |
Nine Months Ended | |||||||||||
(in thousands of U.S. dollars) | March 29, 2024 |
March 31, 2023 |
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Cash flows from operating activities | |||||||||||
Net income for the period | $ | 215,115 | $ | 187,127 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 36,602 | 32,504 | |||||||||
Non-cash restructuring charges and other related costs | — | 2,201 | |||||||||
(Gain) loss on disposal and impairment of property, plant and equipment and intangibles | (147) | (1,630) | |||||||||
(Gain) loss from sales and maturities of available-for-sale securities | (1) | 92 | |||||||||
Amortization of discount (premium) of short-term investments | (2,317) | 300 | |||||||||
(Reversal of) allowance for expected credit losses | 1,874 | (240) | |||||||||
Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts | (2,135) | 693 | |||||||||
Amortization of fair value at hedge inception of interest rate swaps | (198) | (478) | |||||||||
Share-based compensation | 21,440 | 21,217 | |||||||||
Deferred income tax | 1,125 | (276) | |||||||||
Other non-cash expenses | 194 | (127) | |||||||||
Changes in operating assets and liabilities | |||||||||||
Trade accounts receivable | (54,089) | (105,932) | |||||||||
Inventories | 65,442 | 2,720 | |||||||||
Other current assets and non-current assets | (33,548) | (11,704) | |||||||||
Trade accounts payable | 48,268 | (5,028) | |||||||||
Income tax payable | (1,068) | (262) | |||||||||
Severance liabilities | 2,249 | 1,917 | |||||||||
Other current liabilities and non-current liabilities | 31,278 | 19,128 | |||||||||
Net cash provided by operating activities | 330,084 | 142,222 | |||||||||
Cash flows from investing activities | |||||||||||
Purchase of short-term investments | (268,461) | (154,033) | |||||||||
Proceeds from sales of short-term investments | 10,000 | 30,179 | |||||||||
Proceeds from maturities of short-term investments | 173,120 | 97,408 | |||||||||
Purchase of property, plant and equipment | (34,825) | (43,422) | |||||||||
Purchase of intangibles | (768) | (698) | |||||||||
Proceeds from disposal of property, plant and equipment | 2,319 | 117 | |||||||||
Net cash used in investing activities | (118,615) | (70,449) | |||||||||
Cash flows from financing activities | |||||||||||
Repayment of long-term borrowings | (9,141) | (12,187) | |||||||||
Repayment of finance lease liability | — | (7) | |||||||||
Repurchase of ordinary shares | (35,943) | (9,217) | |||||||||
Withholding tax related to net share settlement of restricted share units | (12,716) | (17,740) | |||||||||
Net cash used in financing activities | (57,800) | (39,151) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 153,669 | $ | 32,622 | |||||||
Movement in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash at the beginning of period | $ | 231,368 | $ | 198,365 | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 153,669 | 32,622 | |||||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | 74 | (244) | |||||||||
Cash, cash equivalents and restricted cash at the end of period | $ | 385,111 | $ | 230,743 | |||||||
Non-cash investing and financing activities | |||||||||||
Construction, software and equipment-related payables | $ | 9,229 | $ | 20,116 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands of U.S. dollars, except share data) | March 29, 2024 |
March 31, 2023 |
March 29, 2024 |
March 31, 2023 |
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Revenues | $ | 731,535 | $ | 665,281 | $ | 2,129,706 | $ | 1,989,366 | |||||||||||||||||||||||||||||||||||||||
Gross profit (GAAP) | $ | 90,935 | 12.4 | % | $ | 86,007 | 12.9 | % | $ | 263,669 | 12.4 | % | $ | 253,978 | 12.8 | % | |||||||||||||||||||||||||||||||
Share-based compensation expenses | 1,561 | 1,453 | 5,427 | 5,028 | |||||||||||||||||||||||||||||||||||||||||||
Gross profit (Non-GAAP) | $ | 92,496 | 12.6 | % | $ | 87,460 | 13.1 | % | $ | 269,096 | 12.6 | % | $ | 259,006 | 13.0 | % | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands of U.S. dollars, except share data) | March 29, 2024 |
March 31, 2023 |
March 29, 2024 |
March 31, 2023 |
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Revenues | $ | 731,535 | $ | 665,281 | $ | 2,129,706 | $ | 1,989,366 | |||||||||||||||||||||||||||||||||||||||
Operating profit (GAAP) | $ | 71,307 | 9.7 | % | $ | 61,826 | 9.3 | % | $ | 204,296 | 9.6 | % | $ | 190,302 | 9.6 | % | |||||||||||||||||||||||||||||||
Share-based compensation expenses | 6,726 | 6,533 | 21,440 | 21,031 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and other related costs | — | 5,872 | — | 5,872 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | — | 70 | — | 224 | |||||||||||||||||||||||||||||||||||||||||||
Operating profit (Non-GAAP) | $ | 78,033 | 10.7 | % | $ | 74,301 | 11.2 | % | $ | 225,736 | 10.6 | % | $ | 217,429 | 10.9 | % | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
March 29, 2024 |
March 31, 2023 |
March 29, 2024 |
March 31, 2023 |
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(in thousands of U.S. dollars, except share data) | Net income | Diluted EPS | Net income | Diluted EPS | Net income | Diluted EPS | Net income | Diluted EPS | |||||||||||||||||||||||||||||||||||||||
GAAP measures | $ | 80,916 | $ | 2.21 | $ | 59,355 | $ | 1.60 | $ | 215,115 | $ | 5.88 | $ | 187,127 | $ | 5.07 | |||||||||||||||||||||||||||||||
Items reconciling GAAP net income & EPS to non-GAAP net income & EPS: | |||||||||||||||||||||||||||||||||||||||||||||||
Related to cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | 1,561 | 0.04 | 1,453 | 0.04 | 5,427 | 0.15 | 5,028 | 0.14 | |||||||||||||||||||||||||||||||||||||||
Total related to gross profit | 1,561 | 0.04 | 1,453 | 0.04 | 5,427 | 0.15 | 5,028 | 0.14 | |||||||||||||||||||||||||||||||||||||||
Related to selling, general and administrative expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | 5,165 | 0.14 | 5,080 | 0.14 | 16,013 | 0.44 | 16,003 | 0.43 | |||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | — | — | 70 | 0.00 | — | — | 224 | 0.01 | |||||||||||||||||||||||||||||||||||||||
Total related to selling, general and administrative expenses | 5,165 | 0.14 | 5,150 | 0.14 | 16,013 | 0.44 | 16,227 | 0.44 | |||||||||||||||||||||||||||||||||||||||
Related to other income and expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other related costs | — | — | 5,872 | 0.16 | — | — | 5,872 | 0.16 | |||||||||||||||||||||||||||||||||||||||
Amortization of deferred debt issuance costs | 8 | 0.00 | 8 | 0.00 | 24 | 0.00 | 24 | 0.00 | |||||||||||||||||||||||||||||||||||||||
Total related to other income and expense | 8 | 0.00 | 5,880 | 0.16 | 24 | 0.00 | 5,896 | 0.16 | |||||||||||||||||||||||||||||||||||||||
Total related to net income & EPS | 6,734 | 0.18 | 12,483 | 0.34 | 21,464 | 0.59 | 27,151 | 0.74 | |||||||||||||||||||||||||||||||||||||||
Non-GAAP measures | $ | 87,650 | $ | 2.39 | $ | 71,838 | $ | 1.94 | $ | 236,579 | $ | 6.47 | $ | 214,278 | $ | 5.81 | |||||||||||||||||||||||||||||||
Shares used in computing diluted net income per share | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP diluted shares | 36,603 | 36,989 | 36,574 | 36,895 | |||||||||||||||||||||||||||||||||||||||||||
Non-GAAP diluted shares | 36,603 | 36,989 | 36,574 | 36,895 |
(in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
March 29, 2024 |
March 31, 2023 |
March 29, 2024 |
March 31, 2023 |
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Net cash provided by operating activities | $ | 100,870 | $ | 37,122 | $ | 330,084 | $ | 142,222 | ||||||||||||||||||
Less: Purchase of property, plant and equipment | (13,589) | (19,779) | (34,825) | (43,422) | ||||||||||||||||||||||
Non-GAAP free cash flow | $ | 87,281 | $ | 17,343 | $ | 295,259 | $ | 98,800 |
Diluted
EPS
|
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GAAP net income per diluted share: | $2.01 to $2.08 |
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Related to cost of revenues: | |||||
Share-based compensation expenses | 0.05 | ||||
Total related to gross profit | 0.05 | ||||
Related to selling, general and administrative expenses: | |||||
Share-based compensation expenses | 0.14 | ||||
Total related to selling, general and administrative expenses | 0.14 | ||||
Total related to net income & EPS | 0.19 | ||||
Non-GAAP net income per diluted share | $2.20 to $2.27 |