fabrinet (FN) Key Developments
Fabrinet announced delayed annual 10-K filing
Sep 10 14
On 09/10/2014, Fabrinet announced that they will be unable to file their next 10-K by the deadline required by the SEC.
Fabrinet to Report Q4, 2014 Results on Aug 18, 2014
Jul 21 14
Fabrinet announced that they will report Q4, 2014 results at 5:00 PM, Eastern Standard Time on Aug 18, 2014
Fabrinet, Q4 2014 Earnings Call, Aug 18, 2014
Jul 21 14
Fabrinet, Q4 2014 Earnings Call, Aug 18, 2014
Fabrinet Enters into Credit Agreement
May 23 14
On May 22, 2014, Fabrinet entered into a credit agreement among Fabrinet, certain of its direct subsidiaries from time to time party thereto as guarantors, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent for the lenders. The credit agreement provides for a $200 million secured credit facility, which includes a $150 million revolving loan facility and a $50 million delayed draw term loan facility, each scheduled to mature on May 22, 2019 (the maturity date). Fabrinet will be permitted to borrow under the credit agreement upon satisfaction of certain terms and conditions, including, without limitation, entering into control agreements with the Administrative Agent for each of Fabrinet's deposit and securities accounts, subject to certain exceptions. In the event such conditions are not fulfilled within 120 days after the date of the credit agreement, the revolving loan and term loan commitments will expire and the credit agreement will terminate. The credit agreement contains an accordion feature permitting Fabrinet to request an increase in the revolving loan facility to provide up to an aggregate of $100 million in additional commitments, subject to customary terms and conditions, and provided that no default or event of default exists at the time of such request. Proceeds of the loans made under the Credit Agreement may be used for working capital and other general corporate purposes, including to finance a future manufacturing building in Thailand. Loans under the credit agreement will bear interest, at Fabrinet's option, at a rate per annum equal to a LIBOR rate plus a spread of 1.75% to 2.50%, or a base rate, determined in accordance with the credit agreement, plus a spread of 0.75% to 1.50%, in each case with such spread determined based on Fabrinet's consolidated total leverage ratio for the preceding four fiscal quarter period. Interest is due and payable quarterly in arrears for loans bearing interest at the base rate and at the end of an interest period (or at each three month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the LIBOR rate. In the event that Fabrinet does not fulfill the conditions to borrowing within 60 days after the date of the credit agreement, Fabrinet will be obligated to pay the Administrative Agent, for the account of each lender, a fee equal to 0.05% of the total commitments. Once Fabrinet is permitted to borrow under the Credit Agreement, Fabrinet will be obligated to pay other customary commitment fees, arrangement fees, and administration fees for a credit facility of this size and type. The applicable spreads and commitment fees will increase in the event that Fabrinet's Thailand subsidiary is unable to guarantee the obligations under the credit agreement within 180 days after the closing date. Fabrinet may prepay the loans made under the credit facility in whole or in part at any time without premium or penalty. Revolving loans that are repaid or prepaid may be reborrowed. The revolving loan facility shall terminate and all principal and accrued and unpaid interest thereunder shall be due and payable in full on the maturity date. Term loans made under the credit agreement shall be repaid in quarterly installments equal to $2,500,000, beginning on June 30, 2015, with the remaining outstanding principal and accrued and unpaid interest being due and payable on the maturity date. Term loans repaid or prepaid may not be reborrowed.
Fabrinet Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended March 28, 2014; Provides Earnings Guidance for the Fourth Quarter of 2014
May 5 14
Fabrinet reported unaudited consolidated earnings results for the third quarter and nine months ended March 28, 2014. For the quarter, the company reported total revenue of $167.7 million, an increase of 7.8% compared to total revenue of $155.6 million for the comparable period in fiscal 2013. GAAP net income was $47.7 million, or $1.33 per diluted share, compared to GAAP net income of $21.1 million, or $0.61 per diluted share, in the third quarter of fiscal 2013. Non-GAAP net income in the third quarter of fiscal 2014 was $12.3 million, or $0.34 per diluted share, an increase of 6.6% compared to non-GAAP net income of $11.5 million, or $0.33 per diluted share, in the same period a year ago. Operating income was $48.082 million against $20.873 million a year ago. Income before income taxes was $48.389 million against $22.053 million a year ago.
For the nine months, the company reported revenues of $517.770 million against $481.608 million a year ago. Operating income was $80.247 million against $54.964 million a year ago. Income before income taxes was $81.533 million against $56.534 million a year ago. Net income was $81.398 million or $2.29 per diluted share against $53.827 million or $1.55 per diluted share a year ago. Non-GAAP net income was $42.479 million, or $1.20 per diluted share compared to non-GAAP net income of $38.111 million, or $1.08 per diluted share, in the same period a year ago. Net cash provided by operating activities was $58.604 million against $51.257 million a year ago. Purchase of property, plant and equipment was $7.280 million against $8.634 million a year ago. Purchase of Intangibles was $0.1 million against $0.1 million a year ago.
The company expects fourth quarter of 2014 revenue to be in the range of $169 million to $173 million. GAAP net income per share is expected to be in the range of $0.29 to $0.31 with expected non-GAAP net income per share of $0.33 to $0.35, based on approximately 36 million fully diluted shares outstanding.