FABRINET CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
(in thousands of U.S. dollars, except share data and par value) |
December 30,
|
June 24,
|
||||||
Assets |
|
|
||||||
Current assets |
|
|
||||||
Cash and cash equivalents |
$ |
250,829 |
|
$ |
197,996 |
|
||
Short-term restricted cash |
|
— |
|
|
220 |
|
||
Short-term investments |
|
276,778 |
|
|
280,157 |
|
||
Trade accounts receivable, net of allowance for doubtful accounts of $1,521 and $1,271, respectively |
|
520,024 |
|
|
439,330 |
|
||
Contract assets |
|
13,578 |
|
|
13,464 |
|
||
Inventories |
|
536,536 |
|
|
557,145 |
|
||
Prepaid expenses |
|
9,483 |
|
|
11,626 |
|
||
Other current assets |
|
40,543 |
|
|
25,233 |
|
||
Total current assets |
|
1,647,771 |
|
|
1,525,171 |
|
||
Non-current assets |
|
|
||||||
| Long-term restricted cash |
|
— |
|
|
149 |
|
||
| Property, plant and equipment, net |
|
302,282 |
|
|
292,277 |
|
||
| Intangibles, net |
|
3,319 |
|
|
3,508 |
|
||
| Operating right-of-use assets |
|
2,805 |
|
|
4,084 |
|
||
| Deferred tax assets |
|
11,212 |
|
|
9,800 |
|
||
| Other non-current assets |
|
635 |
|
|
652 |
|
||
| Total non-current assets |
|
320,253 |
|
|
310,470 |
|
||
| Total Assets |
$ |
1,968,024 |
|
$ |
1,835,641 |
|
||
| Liabilities and Shareholders’ Equity |
|
|
||||||
| Current liabilities |
|
|
||||||
| Long-term borrowings, current portion, net |
$ |
12,156 |
|
$ |
12,156 |
|
||
| Trade accounts payable |
|
438,475 |
|
|
439,684 |
|
||
| Fixed assets payable |
|
18,920 |
|
|
9,085 |
|
||
| Contract liabilities |
|
3,636 |
|
|
1,982 |
|
||
| Operating lease liabilities, current portion |
|
2,005 |
|
|
2,319 |
|
||
| Income tax payable |
|
2,470 |
|
|
2,898 |
|
||
| Accrued payroll, bonus and related expenses |
|
21,940 |
|
|
20,374 |
|
||
| Accrued expenses |
|
22,465 |
|
|
24,758 |
|
||
| Other payables |
|
27,528 |
|
|
25,231 |
|
||
| Total current liabilities |
|
549,595 |
|
|
538,487 |
|
||
| Non-current liabilities |
||||||||
| Long-term borrowings, non-current portion, net |
6,078 |
15,202 |
||||||
| Deferred tax liability |
|
5,934 |
|
|
6,001 |
|
||
| Operating lease liability, non-current portion |
|
476 |
|
|
1,476 |
|
||
| Severance liabilities |
|
20,335 |
|
|
18,384 |
|
||
| Other non-current liabilities |
|
1,475 |
|
|
2,409 |
|
||
| Total non-current liabilities |
|
34,298 |
|
|
43,472 |
|
||
| Total Liabilities |
|
583,893 |
|
|
581,959 |
|
||
| Shareholders’ equity |
|
|
||||||
| Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of December 30, 2022 and June 24, 2022) |
— |
— |
||||||
| Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,251,581 shares and 39,048,700 shares issued at December 30, 2022 and June 24, 2022, respectively; and 36,590,939 shares and 36,436,683 shares outstanding at December 30, 2022 and June 24, 2022, respectively) |
|
393 |
|
|
390 |
|
||
| Additional paid-in capital |
|
194,366 |
|
|
196,667 |
|
||
| Less: Treasury shares (2,660,642 shares and 2,612,017 shares as of December 30, 2022 and June 24, 2022, respectively) |
|
(152,362 |
) |
|
(147,258 |
) |
||
| Accumulated other comprehensive income (loss) |
|
(2,714 |
) |
|
(12,793 |
) |
||
| Retained earnings |
|
1,344,448 |
|
|
1,216,676 |
|
||
| Total Shareholders’ Equity |
|
1,384,131 |
|
|
1,253,682 |
|
||
| Total Liabilities and Shareholders’ Equity |
$ |
1,968,024 |
|
$ |
1,835,641 |
|
||
| FABRINET CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) |
||||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| (in thousands of U.S. dollars, except per share data) |
December 30,
|
December 24,
|
December 30,
|
December 24,
|
||||||||||||
| Revenues |
$ |
668,656 |
|
$ |
566,633 |
|
$ |
1,324,085 |
|
$ |
1,109,955 |
|
||||
| Cost of revenues |
|
(583,441 |
) |
|
(497,262 |
) |
|
(1,156,114 |
) |
|
(976,987 |
) |
||||
| Gross profit |
|
85,215 |
|
|
69,371 |
|
|
167,971 |
|
|
132,968 |
|
||||
| Selling, general and administrative expenses |
|
(18,930 |
) |
|
(17,791 |
) |
|
(39,495 |
) |
|
(38,378 |
) |
||||
| Expenses related to reduction in workforce |
|
— |
|
|
(135 |
) |
|
— |
|
|
(135 |
) |
||||
| Operating income |
|
66,285 |
|
|
51,445 |
|
|
128,476 |
|
|
94,455 |
|
||||
| Interest income |
|
2,334 |
|
|
295 |
|
|
3,893 |
|
|
1,056 |
|
||||
| Interest expense |
|
(389 |
) |
|
(238 |
) |
|
(780 |
) |
|
(274 |
) |
||||
| Foreign exchange gain (loss), net |
|
(3,904 |
) |
|
(364 |
) |
|
(1,819 |
) |
|
1,408 |
|
||||
| Other income (expense), net |
|
(68 |
) |
|
(1,055 |
) |
|
(209 |
) |
|
(1,315 |
) |
||||
| Income before income taxes |
|
64,258 |
|
|
50,083 |
|
|
129,561 |
|
|
95,330 |
|
||||
| Income tax expense |
|
(1,101 |
) |
|
(1,204 |
) |
|
(1,789 |
) |
|
(1,800 |
) |
||||
| Net income |
|
63,157 |
|
|
48,879 |
|
|
127,772 |
|
|
93,530 |
|
||||
| Other comprehensive income (loss), net of tax: |
|
|
|
|
||||||||||||
| Change in net unrealized gain (loss) on available-for-sale securities |
|
1,183 |
|
|
(947 |
) |
|
(278 |
) |
|
(1,160 |
) |
||||
| Change in net unrealized gain (loss) on derivative instruments |
|
11,188 |
|
|
3,294 |
|
|
9,970 |
|
|
2,077 |
|
||||
| Change in net retirement benefits plan – prior service cost |
|
57 |
|
|
126 |
|
|
225 |
|
|
324 |
|
||||
| Change in foreign currency translation adjustment |
|
(84 |
) |
|
— |
|
|
162 |
|
|
(164 |
) |
||||
| Total other comprehensive income (loss), net of tax |
|
12,344 |
|
|
2,473 |
|
|
10,079 |
|
|
1,077 |
|
||||
| Net comprehensive income |
$ |
75,501 |
|
$ |
51,352 |
|
$ |
137,851 |
|
$ |
94,607 |
|
||||
| Earnings per share |
|
|
|
|||||||||||||
| Basic |
$ |
1.73 |
|
$ |
1.32 |
|
$ |
3.50 |
|
$ |
2.53 |
|
||||
| Diluted |
$ |
1.71 |
|
$ |
1.30 |
|
$ |
3.47 |
|
$ |
2.50 |
|
||||
| Weighted-average number of ordinary shares outstanding (thousands of shares) |
|
|
|
|
||||||||||||
| Basic |
|
36,589 |
|
|
37,017 |
|
|
36,558 |
|
|
36,947 |
|
||||
| Diluted |
|
36,939 |
|
|
37,552 |
|
|
36,848 |
|
|
37,440 |
|
||||
| FABRINET CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
| Six Months Ended |
||||||||
| (in thousands of U.S. dollars) |
December 30,
|
December 24,
|
||||||
| Cash flows from operating activities |
|
|
||||||
| Net income for the period |
$ |
127,772 |
|
$ |
93,530 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities |
|
|
||||||
| Depreciation and amortization |
|
21,596 |
|
|
19,114 |
|
||
| (Gain) loss on disposal and impairment of property, plant and equipment |
|
(337 |
) |
|
(135 |
) |
||
| (Gain) loss from sales and maturities of available-for-sale securities |
|
92 |
|
|
(13 |
) |
||
| Amortization of discount (premium) of short-term investment |
|
565 |
|
|
2,079 |
|
||
| Amortization of deferred debt issuance costs |
|
16 |
|
|
16 |
|
||
| (Reversal of) allowance for doubtful accounts |
|
251 |
|
|
(30 |
) |
||
| Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts |
|
3,086 |
|
|
(673 |
) |
||
| Amortization of fair value at hedge inception of interest rate swaps |
|
(346 |
) |
|
(513 |
) |
||
| Share-based compensation |
|
14,498 |
|
|
15,978 |
|
||
| Deferred income tax |
|
(1,338 |
) |
|
(986 |
) |
||
| Other non-cash expenses |
|
(321 |
) |
|
268 |
|
||
| Changes in operating assets and liabilities |
|
|
||||||
| Trade accounts receivable |
|
(79,831 |
) |
|
(48,046 |
) |
||
| Contract assets |
|
(114 |
) |
|
(1,270 |
) |
||
| Inventories |
|
20,475 |
|
|
(62,740 |
) |
||
| Other current assets and non-current assets |
|
(11,946 |
) |
|
(5,568 |
) |
||
| Trade accounts payable |
|
(4,176 |
) |
|
44,078 |
|
||
| Contract liabilities |
|
1,654 |
|
|
214 |
|
||
| Income tax payable |
|
(577 |
) |
|
(1,323 |
) |
||
| Severance liabilities |
|
1,269 |
|
|
1,708 |
|
||
| Other current liabilities and non-current liabilities |
|
12,812 |
|
|
1,880 |
|
||
| Net cash provided by operating activities |
|
105,100 |
|
|
57,568 |
|
||
| Cash flows from investing activities |
|
|
||||||
| Purchase of short-term investments |
|
(74,482 |
) |
|
(78,786 |
) |
||
| Proceeds from sales of short-term investments |
|
30,000 |
|
|
19,463 |
|
||
| Proceeds from maturities of short-term investments |
|
46,925 |
|
|
57,721 |
|
||
| Purchase of property, plant and equipment |
|
(23,643 |
) |
|
(51,917 |
) |
||
| Purchase of intangibles |
|
(412 |
) |
|
(446 |
) |
||
| Proceeds from disposal of property, plant and equipment |
|
32 |
|
|
188 |
|
||
| Net cash used in investing activities |
|
(21,580 |
) |
|
(53,777 |
) |
||
| Cash flows from financing activities |
|
|
||||||
| Repayment of long-term borrowings |
|
(9,140 |
) |
|
(6,094 |
) |
||
| Repayment of finance lease liability |
|
(5 |
) |
|
— |
|
||
| Repurchase of ordinary shares |
|
(5,104 |
) |
|
(4,198 |
) |
||
| Withholding tax related to net share settlement of restricted share units |
|
(16,796 |
) |
|
(19,481 |
) |
||
| Net cash used in financing activities |
|
(31,045 |
) |
|
(29,773 |
) |
||
| Net increase (decrease) in cash, cash equivalents and restricted cash |
$ |
52,475 |
|
$ |
(25,982 |
) |
||
| Movement in cash, cash equivalents and restricted cash |
|
|
||||||
| Cash, cash equivalents and restricted cash at the beginning of period |
$ |
198,365 |
|
$ |
303,123 |
|
||
| Increase (decrease) in cash, cash equivalents and restricted cash |
|
52,475 |
|
|
(25,982 |
) |
||
| Effect of exchange rate on cash, cash equivalents and restricted cash |
|
(11 |
) |
|
(296 |
) |
||
| Cash, cash equivalents and restricted cash at the end of period |
$ |
250,829 |
|
$ |
276,845 |
|
||
| Non-cash investing and financing activities |
|
|
||||||
| Construction, software and equipment-related payables |
$ |
18,920 |
|
$ |
28,740 |
|
||
FABRINET
