Jabil Inc.

Greetings and welcome to the Jabil first quarter fiscal year 2020 earnings conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Adam Berry. Please go ahead, sir.

Good morning, and welcome to JABL's first quarter of fiscal 2020 earnings call. Joining me on today's call are Chief Executive Officer Mark Mondello and Chief Financial Officer Mike Dasdorff. Please note that today's call is being webcast live, and during our prepared remarks, we will be referencing slides. To follow along with the discussion and view the slides, you will need to be logged into our webcast on JABL.com. At the end of today's call, both the presentation and a replay of the call will be available on Jabil's Investor Relations website. During today's conference call, we will be making forward-looking statements, including, among other things, those regarding our outlook for business and expected second quarter and fiscal 20 net revenue and earnings. These statements are based on current expectations, forecasts, and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. An extensive list of these risks and uncertainties are identified in our annual report on Form 10-K for the fiscal year ended August 31st, 2019, and other filings. Shable disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With that, it's now my pleasure to hand the call over to Mark Mondella.

Thanks, Adam. Good morning. I appreciate everyone taking time to join our call today. I'll begin by thanking our folks here at Jabil for their continued hard work and commitment. I'd also like to extend my sincere gratitude to each and every Jabil employee for making safety their personal priority. And before getting into our results and the business at hand, I want to wish all of you a safe, and peaceful holiday season. Now, please turn to slide four, where we'll look at our first quarter results. Our team generated core operating income of $277 million on revenues of $7.5 billion, resulting in core earnings per share of $1.05 and a core operating margin of 3.7%. During the quarter, we delivered to our plan of record with one exception. This exception being our newly formed geocentric cloud services business, which came in well above our forecasted revenue. This revenue upside was helpful for the quarter, but for me, what's most valuable is how our cloud solution is being accepted and adopted in the marketplace. Overall, Q1 gave us a favorable start to the year. As is customary, Mike will provide more detail around our Q1 results and speak to our forward guidance during his prepared remarks. With the first quarter behind us, the team is dialed in. We're obsessed with providing first-rate solutions to our customers while also delivering for our shareholders. We understand that financial results matter and matter a lot, but how we go about producing these results is paramount to me. Said differently, I think often about our purpose and our conduct. And when I think about our purpose and conduct, I think about keeping our people safe and ensuring a fully inclusive work environment. I think about unmatched customer care and giving back to the communities around the globe. As CEO, I'm just so appreciative that our team is squarely hitting the mark in all of these areas. And if our conduct and behavior stands through the year, as I expect it will, we'll have a banner FY20. a year that'll make us all very proud. Moving on to slide six, you'll see a terrific picture, a picture which shows the composition of our commercial portfolio. This picture underscores the effort and effectiveness of our team. Over the past few years, I've repeatedly addressed the deliberate increase to our diversification and the positive impact it has on our business. Diversification is key to our performance. Furthermore, the makeup of our commercial portfolio is special. In fact, intentional and unique when considering the full enterprise. A bit of our foundational magic, which makes the portfolio so powerful, comes from our ability to efficiently and quickly share technologies across our various business sectors, and do so with little friction. With each passing year, our revenues become far less dependent on any single product or product family, improving the predictability of our earnings while enhancing our ability to execute. Our performance suggests that our diversification strategy continues to excel and gives us tremendous confidence as we move to the back half of fiscal year 20. And that brings us to our update for the year. Please turn to slide seven. Our company is well positioned. As we highlighted in September, we're intensely focused on three financial metrics, margins, earnings, and cash flows. We anticipate revenues will be up roughly $1.4 billion year on year when compared to fiscal 19. More importantly, we see the income coming through side by side with the increase to revenue. Therefore, cooperating income will now be in the neighborhood of $980 million for the year, confirming our core margin target of 3.7%. This improved income outlook for the year translates to $3.60 a share in core earnings, up 15 cents from the outlook we offered in September. Lastly, we remain committed to delivering free cash flow in excess of $500 million for the year. In closing, I smile when considering our total body of work. Progress has been explicit and steady. Strategy has been consistent and disciplined. And our path forward is clear. We're ushered ahead by our structure, our team, and our culture, where the whole is far greater than the simple sum of the parts. I truly believe Jabil's making the world just a little bit better, a little bit healthier, and a little bit safer each and every day. And we value our role as a responsible and reliable partner to many of the best brands on the planet. I want to once again offer a special thanks to our team and acknowledge their near perfect execution during this past quarter. I feel strongly that our execution will continue as the team is carrying good organizational momentum into the back half of the year. With that, I'd like to wish everyone on the call a safe and peaceful holiday. I'll now turn the call over to Mike. Thank you, Mark, and good morning, everyone.