(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 | ||||||||||||
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: February 1, 2021 |
What: | Fabrinet Second Quarter Fiscal Year 2021 Financial Results Call | |||||||
When: | Monday, February 1, 2021 | |||||||
Time: | 5:00 p.m. ET | |||||||
Live Call: | (888) 357-3694, domestic (253) 237-1137, international Passcode: 3296178 | |||||||
Replay: | (855) 859-2056, domestic (404) 537-3406, international Passcode: 3296178 | |||||||
Webcast: | http://investor.fabrinet.com/ (live and replay) |
(in thousands of U.S. dollars, except share data and par value) | December 25, 2020 | June 26, 2020 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 219,221 | $ | 225,430 | |||||||
Short-term restricted cash | 7,402 | 7,402 | |||||||||
Short-term investments | 261,817 | 262,693 | |||||||||
Trade accounts receivable, net of allowance for doubtful accounts of $123 and $336 respectively | 318,430 | 272,665 | |||||||||
Contract assets | 16,223 | 13,256 | |||||||||
Inventories | 371,996 | 309,786 | |||||||||
Other receivable | 24,310 | 24,310 | |||||||||
Prepaid expenses | 3,141 | 5,399 | |||||||||
Other current assets | 29,187 | 14,508 | |||||||||
Total current assets | 1,251,727 | 1,135,449 | |||||||||
Non-current assets | |||||||||||
Long-term restricted cash | 153 | — | |||||||||
Property, plant and equipment, net | 227,670 | 228,274 | |||||||||
Intangibles, net | 4,367 | 4,312 | |||||||||
Operating right-of-use assets | 7,271 | 8,068 | |||||||||
Deferred tax assets | 6,213 | 5,675 | |||||||||
Other non-current assets | 236 | 202 | |||||||||
Total non-current assets | 245,910 | 246,531 | |||||||||
Total Assets | 1,497,637 | 1,381,980 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Long-term borrowings, current portion, net | 12,156 | 12,156 | |||||||||
Trade accounts payable | 296,948 | 251,603 | |||||||||
Fixed assets payable | 7,748 | 15,127 | |||||||||
Contract liabilities | 1,804 | 1,556 | |||||||||
Operating lease liabilities, current portion | 2,277 | 1,979 | |||||||||
Income tax payable | 2,806 | 2,242 | |||||||||
Accrued payroll, bonus and related expenses | 17,633 | 19,265 | |||||||||
Accrued expenses | 14,504 | 8,979 | |||||||||
Other payables | 39,159 | 21,514 | |||||||||
Total current liabilities | 395,035 | 334,421 | |||||||||
Non-current liabilities | |||||||||||
Long-term borrowings, non-current portion, net | 33,436 | 39,514 | |||||||||
Deferred tax liability | 4,592 | 4,729 | |||||||||
Operating lease liability, non-current portion | 4,737 | 5,873 | |||||||||
Severance liabilities | 19,011 | 17,379 | |||||||||
Other non-current liabilities | 4,156 | 5,655 | |||||||||
Total non-current liabilities | 65,932 | 73,150 | |||||||||
Total Liabilities | 460,967 | 407,571 | |||||||||
Shareholders’ equity | |||||||||||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of December 25, 2020 and June 26, 2020) | — | — | |||||||||
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,698,068 shares and 38,471,967 shares issued at December 25, 2020 and June 26, 2020, respectively; and 36,852,416 shares and 36,727,864 shares outstanding at December 25, 2020 and June 26, 2020, respectively) | 387 | 385 | |||||||||
Additional paid-in capital | 177,125 | 175,610 | |||||||||
Less: Treasury shares (1,845,652 shares and 1,744,103 shares as of December 25, 2020 and June 26, 2020, respectively) | (75,575) | (68,501) | |||||||||
Accumulated other comprehensive income (loss) | (1,657) | (1,147) | |||||||||
Retained earnings | 936,390 | 868,062 | |||||||||
Total Shareholders’ Equity | 1,036,670 | 974,409 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,497,637 | $ | 1,381,980 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands of U.S. dollars, except per share data) | December 25, 2020 | December 27, 2019 | December 25, 2020 | December 27, 2019 | |||||||||||||||||||
Revenues | $ | 453,827 | $ | 426,217 | $ | 890,466 | $ | 825,513 | |||||||||||||||
Cost of revenues | (400,806) | (377,059) | (786,965) | (730,368) | |||||||||||||||||||
Gross profit | 53,021 | 49,158 | 103,501 | 95,145 | |||||||||||||||||||
Selling, general and administrative expenses | (17,156) | (17,078) | (34,019) | (33,078) | |||||||||||||||||||
Expenses related to reduction in workforce | — | (16) | — | (16) | |||||||||||||||||||
Operating income | 35,865 | 32,064 | 69,482 | 62,051 | |||||||||||||||||||
Interest income | 1,111 | 1,940 | 2,215 | 4,038 | |||||||||||||||||||
Interest expense | (265) | (181) | (516) | (2,574) | |||||||||||||||||||
Foreign exchange gain (loss), net | (533) | (988) | (405) | (2,941) | |||||||||||||||||||
Other income (expense), net | 158 | 397 | 279 | 774 | |||||||||||||||||||
Income before income taxes | 36,336 | 33,232 | 71,055 | 61,348 | |||||||||||||||||||
Income tax expense | (952) | (2,001) | (2,620) | (4,160) | |||||||||||||||||||
Net income | 35,384 | 31,231 | 68,435 | 57,188 | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Change in net unrealized gain (loss) on available-for-sale securities | (42) | (82) | (367) | (47) | |||||||||||||||||||
Change in net unrealized gain (loss) on derivative instruments | 2,385 | (189) | (823) | (150) | |||||||||||||||||||
Change in net retirement benefits plan – prior service cost | 50 | 101 | 223 | 184 | |||||||||||||||||||
Change in foreign currency translation adjustment | (146) | 616 | 457 | 247 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | 2,247 | 446 | (510) | 234 | |||||||||||||||||||
Net comprehensive income (loss) | $ | 37,631 | $ | 31,677 | $ | 67,925 | $ | 57,422 | |||||||||||||||
Earnings per share | |||||||||||||||||||||||
Basic | $ | 0.96 | $ | 0.84 | $ | 1.86 | $ | 1.55 | |||||||||||||||
Diluted | $ | 0.94 | $ | 0.83 | $ | 1.83 | $ | 1.52 | |||||||||||||||
Weighted-average number of ordinary shares outstanding (thousands of shares) | |||||||||||||||||||||||
Basic | 36,936 | 37,011 | 36,877 | 36,962 | |||||||||||||||||||
Diluted | 37,551 | 37,763 | 37,467 | 37,646 |
Six Months Ended | |||||||||||
(in thousands of U.S. dollars) | December 25, 2020 | December 27, 2019 | |||||||||
Cash flows from operating activities | |||||||||||
Net income for the period | $ | 68,435 | $ | 57,188 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 17,650 | 15,279 | |||||||||
(Gain) loss on disposal of property, plant and equipment | (24) | 242 | |||||||||
(Gain) loss from sales and maturities of available-for-sale securities | (86) | (79) | |||||||||
Amortization of investment discount | 1,003 | 117 | |||||||||
Amortization of deferred debt issuance costs | 16 | 10 | |||||||||
(Reversal of) allowance for doubtful accounts | (321) | 6 | |||||||||
Unrealized (gain) loss on exchange rate and fair value of foreign currency forward contracts | (290) | 1,205 | |||||||||
Unrealized loss (gain) on fair value of interest rate swaps | — | 1,672 | |||||||||
Amortization of fair value at hedge inception of interest rate swaps | (695) | (433) | |||||||||
Share-based compensation | 11,878 | 12,183 | |||||||||
Deferred income tax | (461) | 1,543 | |||||||||
Other non-cash expenses | (657) | (851) | |||||||||
Changes in operating assets and liabilities | |||||||||||
Trade accounts receivable | (45,410) | (24,970) | |||||||||
Contract assets | (2,967) | 1,333 | |||||||||
Inventories | (62,211) | (767) | |||||||||
Other current assets and non-current assets | (11,983) | 7,471 | |||||||||
Trade accounts payable | 45,179 | (22,816) | |||||||||
Contract liabilities | 248 | 121 | |||||||||
Income tax payable | 548 | 1,336 | |||||||||
Severance liabilities | 1,350 | 2,015 | |||||||||
Other current liabilities and non-current liabilities | 20,112 | 805 | |||||||||
Net cash provided by operating activities | 41,314 | 52,610 | |||||||||
Cash flows from investing activities | |||||||||||
Purchase of short-term investments | (126,701) | (101,727) | |||||||||
Proceeds from sales of short-term investments | 57,486 | 72,664 | |||||||||
Proceeds from maturities of short-term investments | 68,807 | 62,666 | |||||||||
Funds provided to customer to support transfer of manufacturing operations | — | (24,310) | |||||||||
Purchase of property, plant and equipment | (22,693) | (15,411) | |||||||||
Purchase of intangibles | (1,271) | (808) | |||||||||
Proceeds from disposal of property, plant and equipment | 26 | 1,195 | |||||||||
Net cash used in investing activities | (24,346) | (5,731) | |||||||||
Cash flows from financing activities | |||||||||||
Payment of debt issuance costs | — | (153) | |||||||||
Proceeds from long-term borrowings | — | 60,938 | |||||||||
Repayment of long-term borrowings | (6,094) | (63,985) | |||||||||
Repayment of finance lease liability | (100) | (189) | |||||||||
Repurchase of ordinary shares | (7,074) | — | |||||||||
Withholding tax related to net share settlement of restricted share units | (10,361) | (4,377) | |||||||||
Net cash used in financing activities | (23,629) | (7,766) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (6,661) | 39,113 | |||||||||
Movement in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash at the beginning of period | 232,832 | 188,241 | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (6,661) | 39,113 | |||||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | 605 | 351 | |||||||||
Cash, cash equivalents and restricted cash at the end of period | 226,776 | 227,705 | |||||||||
Non-cash investing and financing activities | |||||||||||
Construction, software and equipment-related payables | $ | 7,748 | $ | 14,307 |
As of | |||||||||||
(amount in thousands) | December 25, 2020 | December 27, 2019 | |||||||||
Cash and cash equivalents | $ | 219,221 | $ | 220,031 | |||||||
Restricted cash | 7,555 | 7,674 | |||||||||
Cash, cash equivalents and restricted cash | $ | 226,776 | $ | 227,705 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 25, 2020 | December 27, 2019 | December 25, 2020 | December 27, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 35,384 | $ | 0.94 | $ | 31,231 | $ | 0.83 | $ | 68,435 | $ | 1.83 | $ | 57,188 | $ | 1.52 | |||||||||||||||||||||||||||||||
Items reconciling GAAP net income & EPS to non-GAAP net income & EPS: | |||||||||||||||||||||||||||||||||||||||||||||||
Related to cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | 1,592 | 0.04 | 1,591 | 0.04 | 3,417 | 0.09 | 3,311 | 0.09 | |||||||||||||||||||||||||||||||||||||||
Depreciation of fair value uplift | 83 | — | 82 | — | 167 | — | 161 | — | |||||||||||||||||||||||||||||||||||||||
Total related to gross profit | 1,675 | 0.04 | 1,673 | 0.04 | 3,584 | 0.10 | 3,472 | 0.09 | |||||||||||||||||||||||||||||||||||||||
Related to selling, general and administrative expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | 4,259 | 0.11 | 4,597 | 0.12 | 8,461 | 0.23 | 8,872 | 0.24 | |||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 124 | — | 143 | — | 255 | 0.01 | 286 | 0.01 | |||||||||||||||||||||||||||||||||||||||
Total related to selling, general and administrative expenses | 4,383 | 0.12 | 4,740 | 0.13 | 8,716 | 0.23 | 9,158 | 0.24 | |||||||||||||||||||||||||||||||||||||||
Related to other incomes and other expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Other expenses in relation to reduction in workforce | — | — | 16 | — | — | — | 16 | — | |||||||||||||||||||||||||||||||||||||||
Amortization of deferred debt issuance costs | 8 | — | 8 | — | 16 | — | 10 | — | |||||||||||||||||||||||||||||||||||||||
Total related to other incomes and other expenses | 8 | — | 24 | — | 16 | — | 26 | — | |||||||||||||||||||||||||||||||||||||||
Total related to net income & EPS | 6,066 | 0.16 | 6,437 | 0.17 | 12,316 | 0.33 | 12,656 | 0.34 | |||||||||||||||||||||||||||||||||||||||
Non-GAAP measures | $ | 41,450 | $ | 1.10 | $ | 37,668 | $ | 1.00 | $ | 80,751 | $ | 2.16 | $ | 69,844 | $ | 1.86 | |||||||||||||||||||||||||||||||
Shares used in computing diluted net income per share | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP diluted shares | 37,551 | 37,763 | 37,467 | 37,646 | |||||||||||||||||||||||||||||||||||||||||||
Non-GAAP diluted shares | 37,551 | 37,763 | 37,467 | 37,646 | |||||||||||||||||||||||||||||||||||||||||||
(amount in thousands) | Three Months Ended | Six Months Ended | ||||||||||||||||||
December 25, 2020 | December 27, 2019 | December 25, 2020 | December 27, 2019 | |||||||||||||||||
Net cash provided by operating activities | $ | 6,808 | $ | 49,963 | $ | 41,314 | $ | 52,610 | ||||||||||||
Less: Purchase of property, plant and equipment | (10,121) | (9,068) | (22,693) | (15,411) | ||||||||||||||||
Non-GAAP free cash flow | $ | (3,313) | $ | 40,895 | $ | 18,621 | $ | 37,199 |
Diluted EPS | |||||
GAAP net income per diluted share: | $0.94 to $1.01 | ||||
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 | 0.12 | ||||
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 | $1.10 to $1.17 |
Cover |
Feb. 01, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 01, 2021 |
Entity Registrant Name | Fabrinet |
Entity Incorporation, State or Country Code | E9 |
Entity File Number | 001-34775 |
Entity Tax Identification Number | 98-1228572 |
Entity Address, Address Line One | c/o Intertrust Corporate Services (Cayman) Limited |
Entity Address, Address Line Two | 190 Elgin Avenue |
Entity Address, City or Town | George Town |
Entity Address, Region | Grand Cayman |
Entity Address, Postal Zip Code | KY1-9005 |
Entity Address, Country | KY |
City Area Code | 66 2 |
Local Phone Number | 524-9600 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Ordinary Shares, $0.01 par value |
Trading Symbol | FN |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001408710 |
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